Document:

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                                                                    Exhibit 10.3

         THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
         THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON
         STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED
         FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT AND ANY
         APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
         SATISFACTORY TO ABLE ENERGY, INC. THAT SUCH REGISTRATION IS NOT
         REQUIRED.

            Right to Purchase up to 160,000 Shares of Common Stock of
                               ABLE ENERGY, INC.
                               ------------------
                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. 160,000                                          Issue Date:  June 30, 2006

         Able Energy, Inc., a corporation organized under the laws of the State
of Delaware (the "Company"), hereby certifies that, for value received, LAURUS
MASTER FUND, LTD., or assigns (the "Holder"), is entitled, subject to the terms
set forth below, to purchase from the Company (as defined herein) from and after
the Issue Date of this Warrant and at any time or from time to time before 5:00
p.m., New York time, through the close of business June 30, 2011 (the
"Expiration Date"), up to 160,000 fully paid and nonassessable shares of Common
Stock (as hereinafter defined), $0.001 par value per share, at the applicable
Exercise Price per share (as defined below). The number and character of such
shares of Common Stock and the applicable Exercise Price per share are subject
to adjustment as provided herein.

         As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

                  (a) The term "Company" shall include Able Energy, Inc. and any
         person or entity which shall succeed, or assume the obligations of,
         Able Energy, Inc.hereunder.

                  (b) The term "Common Stock" includes (i) the Company's Common
         Stock, par value $0.001 per share; and (ii) any other securities into
         which or for which any of the securities described in the preceding
         clause (i) may be converted or exchanged pursuant to a plan of
         recapitalization, reorganization, merger, sale of assets or otherwise.

                  (c) The term "Other Securities" refers to any stock (other
         than Common Stock) and other securities of the Company or any other
         person (corporate or otherwise) which the holder of the Warrant at any
         time shall be entitled to receive, or shall have received, on the
         exercise of the Warrant, in lieu of or in addition to Common Stock, or
         which at any time shall be issuable or shall have been issued in
         exchange for or in replacement of Common Stock or Other Securities
         pursuant to Section 4 or otherwise.

<PAGE>

                  (d) The "Exercise Price" applicable under this Warrant shall
         be $5.57 for the shares acquired hereunder;

                  (e) EXERCISE OF WARRANT.

         1.1. NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after the date
hereof through and including the Expiration Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery of an
original or fax copy of an exercise notice in the form attached hereto as
Exhibit A (the "Exercise Notice"), shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4.

         1.2. FAIR MARKET VALUE. For purposes hereof, the "Fair Market Value" of
a share of Common Stock as of a particular date (the "Determination Date") shall
mean:

                  (a) If the Company's Common Stock is traded on the American
         Stock Exchange or another national exchange or is quoted on the
         National or Capital Market of The Nasdaq Stock Market, Inc.("Nasdaq"),
         then the closing or last sale price, respectively, reported for the
         last business day immediately preceding the Determination Date.

                  (b) If the Company's Common Stock is not traded on the
         American Stock Exchange or another national exchange or on the Nasdaq
         but is traded on the NASD Over the Counter Bulletin Board, then the
         mean of the average of the closing bid and asked prices reported for
         the last business day immediately preceding the Determination Date.

                  (c) Except as provided in clause (d) below, if the Company's
         Common Stock is not publicly traded, then as the Holder and the Company
         agree or in the absence of agreement by arbitration in accordance with
         the rules then in effect of the American Arbitration Association,
         before a single arbitrator to be chosen from a panel of persons
         qualified by education and training to pass on the matter to be
         decided.

                  (d) If the Determination Date is the date of a liquidation,
         dissolution or winding up, or any event deemed to be a liquidation,
         dissolution or winding up pursuant to the Company's charter, then all
         amounts to be payable per share to holders of the Common Stock pursuant
         to the charter in the event of such liquidation, dissolution or winding
         up, plus all other amounts to be payable per share in respect of the
         Common Stock in liquidation under the charter, assuming for the
         purposes of this clause (d) that all of the shares of Common Stock then
         issuable upon exercise of the Warrant are outstanding at the
         Determination Date.

         1.3. COMPANY ACKNOWLEDGMENT. The Company will, at the time of the
exercise of this Warrant, upon the request of the holder hereof acknowledge in
writing its continuing obligation to afford to such holder any rights to which
such holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the Company
to afford to such holder any such rights.

                                       2
<PAGE>

         1.4. TRUSTEE FOR WARRANT HOLDERS. In the event that a bank or trust
company shall have been appointed as trustee for the holders of this Warrant
pursuant to Subsection 3.2, such bank or trust company shall have all the powers
and duties of a warrant agent (as hereinafter described) and shall accept, in
its own name for the account of the Company or such successor person as may be
entitled thereto, all amounts otherwise payable to the Company or such
successor, as the case may be, on exercise of this Warrant pursuant to this
Section 1.

     2. PROCEDURE FOR EXERCISE.

         2.1. DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. The Company
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of business on the date on which this Warrant shall have been
surrendered and payment made for such shares in accordance herewith. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct in
compliance with applicable securities laws, a certificate or certificates for
the number of duly and validly issued, fully paid and nonassessable shares of
Common Stock (or Other Securities) to which such Holder shall be entitled on
such exercise, plus, in lieu of any fractional share to which such holder would
otherwise be entitled, cash equal to such fraction multiplied by the then Fair
Market Value of one full share, together with any other stock or other
securities and property (including cash, where applicable) to which such Holder
is entitled upon such exercise pursuant to Section 1 or otherwise.

         2.2. EXERCISE.

                  (a) Payment may be made either (i) in cash or by certified or
         official bank check payable to the order of the Company equal to the
         applicable aggregate Exercise Price, (ii) by delivery of this Warrant,
         or shares of Common Stock and/or Common Stock receivable upon exercise
         of this Warrant in accordance with the formula set forth in subsection
         (b) below, or (iii) by a combination of any of the foregoing methods,
         for the number of Common Shares specified in such Exercise Notice (as
         such exercise number shall be adjusted to reflect any adjustment in the
         total number of shares of Common Stock issuable to the Holder per the
         terms of this Warrant) and the Holder shall thereupon be entitled to
         receive the number of duly authorized, validly issued, fully-paid and
         non-assessable shares of Common Stock (or Other Securities) determined
         as provided herein.

                  (b) Notwithstanding any provisions herein to the contrary, if
         the Fair Market Value of one share of Common Stock is greater than the
         Exercise Price (at the date of calculation as set forth below), in lieu
         of exercising this Warrant for cash, the Holder may elect to receive
         shares equal to the value (as determined below) of this Warrant (or the
         portion thereof being exercised) by surrender of this Warrant at the
         principal office of the Company together with the properly endorsed
         Exercise Notice in which event the Company shall issue to the Holder a
         number of shares of Common Stock computed using the following formula:

                                       3
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        X=                  Y(A-B)
                            ------
                              A

        Where X =           the number of shares of Common Stock to be issued to
                            the Holder

        Y =                 the number of shares of Common Stock purchasable
                            under this Warrant or, if only a portion of this
                            Warrant is being exercised, the portion of this
                            Warrant being exercised (at the date of such
                            calculation)

        A =                 the Fair Market  Value of one share of the
                            Company's  Common Stock (at the date of such
                            calculation)

        B =                 the Exercise Price per share (as adjusted to the
                            date of such calculation)

     3. EFFECT OF REORGANIZATION, ETC.; ADJUSTMENT OF EXERCISE PRICE.

         3.1. REORGANIZATION, CONSOLIDATION, MERGER, ETC. In case at any time or
from time to time, the Company shall (a) effect a reorganization, (b)
consolidate with or merge into any other person, or (c) transfer all or
substantially all of its properties or assets to any other person under any plan
or arrangement contemplating the dissolution of the Company, then, in each such
case, as a condition to the consummation of such a transaction, proper and
adequate provision shall be made by the Company whereby the Holder, on the
exercise hereof as provided in Section 1 at any time after the consummation of
such reorganization, consolidation or merger or the effective date of such
dissolution, as the case may be, shall receive, in lieu of the Common Stock (or
Other Securities) issuable on such exercise prior to such consummation or such
effective date, the stock and other securities and property (including cash) to
which such Holder would have been entitled upon such consummation or in
connection with such dissolution, as the case may be, if such Holder had so
exercised this Warrant, immediately prior thereto, all subject to further
adjustment thereafter as provided in Section 4.

         3.2. DISSOLUTION. In the event of any dissolution of the Company
following the transfer of all or substantially all of its properties or assets,
the Company, concurrently with any distributions made to holders of its Common
Stock, shall at its expense deliver or cause to be delivered to the Holder the
stock and other securities and property (including cash, where applicable)
receivable by the Holder pursuant to Section 3.1, or, if the Holder shall so
instruct the Company, to a bank or trust company specified by the Holder and
having its principal office in New York, NY as trustee for the Holder (the
"Trustee").

         3.3. CONTINUATION OF TERMS. Upon any reorganization, consolidation,
merger or transfer (and any dissolution following any transfer) referred to in
this Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property receivable on the exercise of this Warrant after the consummation of
such reorganization, consolidation or merger or the effective date of
dissolution following any such transfer, as the case may be, and shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer, the person acquiring all or substantially all of the
properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4. In the

                                      4
<PAGE>

event this Warrant does not continue in full force and effect after the
consummation of the transactions described in this Section 3, then the Company's
securities and property (including cash, where applicable) receivable by the
Holder will be delivered to the Holder or the Trustee as contemplated by Section
3.2.

    4. EXTRAORDINARY EVENTS REGARDING COMMON STOCK. In the event that the
Company shall (a) issue additional shares of the Common Stock as a dividend or
other distribution on outstanding Common Stock or any preferred stock issued by
the Company (b) subdivide its outstanding shares of Common Stock, or (c) combine
its outstanding shares of the Common Stock into a smaller number of shares of
the Common Stock, then, in each such event, the Exercise Price shall,
simultaneously with the happening of such event, be adjusted by multiplying the
then Exercise Price by a fraction, the numerator of which shall be the number of
shares of Common Stock outstanding immediately prior to such event and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately after such event, and the product so obtained shall thereafter be
the Exercise Price then in effect. The Exercise Price, as so adjusted, shall be
readjusted in the same manner upon the happening of any successive event or
events described herein in this Section 4. The number of shares of Common Stock
that the Holder shall thereafter, on the exercise hereof as provided in Section
1, be entitled to receive shall be adjusted to a number determined by
multiplying the number of shares of Common Stock that would otherwise (but for
the provisions of this Section 4) be issuable on such exercise by a fraction of
which (a) the numerator is the Exercise Price that would otherwise (but for the
provisions of this Section 4) be in effect, and (b) the denominator is the
Exercise Price in effect on the date of such exercise (taking into account the
provisions of this Section 4). Notwithstanding the foregoing, in no event shall
the Exercise Price be less than the par value of the Common Stock.

    5. CERTIFICATE AS TO ADJUSTMENTS. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of this Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Exercise Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the Holder and any Warrant agent of the
Company (appointed pursuant to Section 11 hereof).

    6. RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE OF WARRANT. The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of this Warrant, shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of this Warrant.

                                       5
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    7. ASSIGNMENT; EXCHANGE OF WARRANT. Subject to compliance with
applicable securities laws, this Warrant, and the rights evidenced hereby, may
be transferred by any registered holder hereof (a "Transferor") in whole or in
part. On the surrender for exchange of this Warrant, with the Transferor's
endorsement in the form of Exhibit B attached hereto (the "Transferor
Endorsement Form") and together with evidence reasonably satisfactory to the
Company demonstrating compliance with applicable securities laws, which shall
include, without limitation, the provision of a legal opinion from the
Transferor's counsel (at the Company's expense) that such transfer is exempt
from the registration requirements of applicable securities laws, the Company at
its expense (but with payment by the Transferor of any applicable transfer
taxes) will issue and deliver to or on the order of the Transferor thereof a new
Warrant of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Transferor Endorsement Form (each a "Transferee"), calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face or faces of the Warrant so surrendered by the
Transferor.

    8. REPLACEMENT OF WARRANT. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

    9. REGISTRATION RIGHTS. The Holder has been granted certain
registration rights by the Company. These registration rights are set forth in a
Registration Rights Agreement entered into by the Company and Holder dated as of
the date hereof, as the same may be amended, modified and/or supplemented from
time to time.

    10. MAXIMUM EXERCISE. Notwithstanding anything herein to the contrary,
in no event shall the Holder be entitled to exercise any portion of this Warrant
in excess of that portion of this Warrant upon exercise of which the sum of (1)
the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates (other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unexercised portion of the Warrant or the
unexercised or unconverted portion of any other security of the Holder subject
to a limitation on conversion analogous to the limitations contained herein) and
(2) the number of shares of Common Stock issuable upon the exercise of the
portion of this Warrant with respect to which the determination of this proviso
is being made, would result in beneficial ownership by the Holder and its
Affiliates of any amount greater than 4.99% of the then outstanding shares of
Common Stock (whether or not, at the time of such exercise, the Holder and its
Affiliates beneficially own more than 4.99% of the then outstanding shares of
Common Stock). As used herein, the term "Affiliate" means any person or entity
that, directly or indirectly through one or more intermediaries, controls or is
controlled by or is under common control with a person or entity, as such terms
are used in and construed under Rule 144 under the Securities Act. For purposes
of the proviso to the second preceding sentence, beneficial ownership shall be
determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
in clause (1) of such proviso. The limitations set forth herein (x) may be
waived by the Holder upon provision of no less than sixty-one (61) days prior
notice to the Company and (y) shall automatically become

                                       6
<PAGE>

null and void following notice to the Company upon the occurrence and during the
continuance of an Event of Default (as defined in the Purchase Agreement dated
as of the date hereof among the Holder and the Company (as amended, modified,
restated and/or supplemented from time to time, the "Purchase Agreement")),
except that at no time shall the number of shares of Common Stock beneficially
owned by the Holder exceed 19.99% of the outstanding shares of Common Stock.
Notwithstanding anything contained herein to the contrary, the number of shares
of Common Stock issuable by the Company and acquirable by the Holder at a price
below $5.05 per share pursuant to the terms of this Warrant, the Purchase
Agreement, any Related Agreement (as defined in the Purchase Agreement) or
otherwise, shall not exceed an aggregate of 625,471 shares of Common Stock
(subject to appropriate adjustment for stock splits, stock dividends, or other
similar recapitalizations affecting the Common Stock) (the "Maximum Common Stock
Issuance"), unless the issuance of Common Shares hereunder in excess of the
Maximum Common Stock Issuance shall first be approved by the Company's
shareholders. If at any point in time and from time to time the number of shares
of Common Stock issued pursuant to the terms of this Warrant, the Purchase
Agreement, any Related Agreement (as defined in the Purchase Agreement) or
otherwise, together with the number of shares of Common Stock that would then be
issuable by the Company to the Holder in the event of a conversion pursuant to
the terms of this Warrant, the Purchase Agreement, any Related Agreement (as
defined in the Purchase Agreement) or otherwise, would exceed the Maximum Common
Stock Issuance but for this Section 10, the Company shall promptly call a
shareholders meeting to solicit shareholder approval for the issuance of the
shares of Common Stock hereunder in excess of the Maximum Common Stock Issuance.

    11. WARRANT AGENT. The Company may, by written notice to the each
Holder of the Warrant, appoint an agent for the purpose of issuing Common Stock
(or Other Securities) on the exercise of this Warrant pursuant to Section 1,
exchanging this Warrant pursuant to Section 7, and replacing this Warrant
pursuant to Section 8, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such agent.

    12. TRANSFER ON THE COMPANY'S BOOKS. Until this Warrant is transferred
on the books of the Company, the Company may treat the registered holder hereof
as the absolute owner hereof for all purposes, notwithstanding any notice to the
contrary.

    13. NOTICES, ETC. All notices and other communications from the Company
to the Holder shall be mailed by first class registered or certified mail,
postage prepaid, at such address as may have been furnished to the Company in
writing by such Holder or, until any such Holder furnishes to the Company an
address, then to, and at the address of, the last Holder who has so furnished an
address to the Company.

    14. MISCELLANEOUS. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS. ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS
WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS OF NEW YORK OR IN THE FEDERAL
COURTS LOCATED IN THE STATE

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OF NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS
PROVISION AND BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. The individuals
executing this Warrant on behalf of the Company agree to submit to the
jurisdiction of such courts and waive trial by jury. The prevailing party shall
be entitled to recover from the other party its reasonable attorneys' fees and
costs. In the event that any provision of this Warrant is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Warrant.
The headings in this Warrant are for purposes of reference only, and shall not
limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision hereof. The Company acknowledges that
legal counsel participated in the preparation of this Warrant and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved
against the drafting party shall not be applied in the interpretation of this
Warrant to favor any party against the other party.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;

                             SIGNATURE PAGE FOLLOWS]

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         IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

                                                  ABLE ENERGY, INC.

WITNESS:

                                                  By:    s/Gregory D. Frost
                                                         --------------------
                                                  Name:  Gregory D. Frost

s/Kenneth N. Miller                               Title: Chief Executive Officer
-------------------

                                       9
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                                    EXHIBIT A

                              FORM OF SUBSCRIPTION

                   (To Be Signed Only On Exercise Of Warrant)

TO:      [Newco]

         Attention:        Chief Financial Officer

         The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

_________           ________ shares of the Common Stock covered by such Warrant;
                    or

________            the maximum number of shares of Common Stock covered by such
                    Warrant pursuant to the cashless exercise procedure set
                    forth in Section 2.

         The undersigned herewith makes payment of the full Exercise Price for
such shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):

_________          $__________ in lawful money of the United States; and/or

_________           the cancellation of such portion of the attached Warrant as
                    is exercisable for a total of _______ shares of Common Stock
                    (using a Fair Market Value of $_______ per share for
                    purposes of this calculation); and/or

_________           the cancellation of such number of shares of Common Stock as
                    is necessary, in accordance with the formula set forth in
                    Section 2.2, to exercise this Warrant with respect to the
                    maximum number of shares of Common Stock purchasable
                    pursuant to the cashless exercise procedure set forth in
                    Section 2.

         The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to _________________ whose address is
______________________________________________________________________________.

         The undersigned represents and warrants that all offers and sales by
the undersigned of the securities issuable upon exercise of the within Warrant
shall be made pursuant to registration of the Common Stock under the Securities
Act of 1933, as amended (the "Securities Act") or pursuant to an exemption from
registration under the Securities Act.

Dated:
         ----------------------------        -----------------------------------
                                             (Signature must conform to name of
                                             holder as specified on the face
                                              of the Warrant)

                                             Address:________________________
                                                     ________________________

                                      A-1
<PAGE>
                                   EXHIBIT B

                         FORM OF TRANSFEROR ENDORSEMENT

                   (To Be Signed Only On Transfer Of Warrant)

         For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of Able Energy, Inc. into which the within Warrant
relates specified under the headings "Percentage Transferred" and "Number
Transferred," respectively, opposite the name(s) of such person(s) and appoints
each such person Attorney to transfer its respective right on the books of Able
Energy, Inc. with full power of substitution in the premises.

                                                   Percentage        Number
Transferees                Address                Transferred    Transferred
-----------                -------                -----------    -----------

-----------------------    -------------------    -----------    -------------

-----------------------    -------------------    -----------    -------------

-----------------------    -------------------    -----------    -------------

-----------------------    -------------------    -----------    -------------

Dated:
         -------------------                     -------------------------------
                                                 Signature must conform to name
                                                 of holder as specified
                                                 on the face of the Warrant)

                                                 Address:______________________
                                                         ______________________
                                                         ______________________

                                                  SIGNED IN THE PRESENCE OF:

                                                  ----------------------------
                                                             (Name)

ACCEPTED AND AGREED:
[TRANSFEREE]

----------------------------------
            (Name)

                                      B-1<PAGE>
                                                                    Exhibit 10.4

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of June 30, 2006, by and between Able Energy, Inc., a Delaware
corporation (the "Company"), and Laurus Master Fund, Ltd. (the "Purchaser").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof, by and between the Purchaser and the Company (as
amended, modified or supplemented from time to time, the "Securities Purchase
Agreement"), and pursuant to the Note and the Warrants referred to therein.

         The Company and the Purchaser hereby agree as follows:

         1. DEFINITIONS. Capitalized terms used and not otherwise defined herein
that are defined in the Securities Purchase Agreement shall have the meanings
given such terms in the Securities Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

                  "COMMISSION" means the Securities and Exchange Commission.

                  "COMMON STOCK" means shares of the Company's common stock, par
value $0.01 per share.

                  "EFFECTIVENESS DATE" means (i) with respect to the initial
Registration Statement required to be filed hereunder, a date no later than
one-hundred eighty (180) days following the date hereof and (ii) with respect to
each additional Registration Statement required to be filed hereunder, a date no
later than thirty (30) days following the applicable Filing Date.

                  "EFFECTIVENESS PERIOD" has the meaning set forth in Section
2(a).

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended, and any successor statute.

                  "FILING DATE" means, with respect to (i) the Registration
Statement required to be filed hereunder in respect of the shares of Common
Stock issuable upon conversion of the Note, a date no later than sixty (60) days
following the date hereof, (ii) the shares of Common Stock issuable upon
exercise of any Warrant, the date which is sixty (60) days after the date of the
issuance of such Warrant, and (iii) the shares of Common Stock issuable to the
Holder as a result of adjustments to the Fixed Conversion Price or Exercise
Price, as the case may be, made pursuant to the Note or the Warrant or
otherwise, thirty (30) days after the occurrence such event or the date of the
adjustment of the Fixed Conversion Price or Exercise Price, as the case may be.

                  "HOLDER" or "HOLDERS" means the Purchaser or any of its
affiliates or transferees to the extent any of them hold Registrable Securities,
other than those purchasing Registrable Securities in a market transaction.

                  "INDEMNIFIED PARTY" has the meaning set forth in Section 5(c).

<PAGE>

                  "INDEMNIFYING PARTY" has the meaning set forth in Section
5(c).

                  "NOTE" has the meaning set forth in the Securities Purchase
Agreement.

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

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

                  "REGISTRABLE SECURITIES" means the shares of Common Stock
issued upon the conversion of the Note and issuable upon exercise of the
Warrants.

                  "REGISTRATION STATEMENT" means each registration statement
required to be filed hereunder, including the Prospectus therein, amendments and
supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in such registration
statement.

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

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

                  "SECURITIES ACT" means the Securities Act of 1933, as amended,
and any successor statute.

                  "SECURITIES PURCHASE AGREEMENT" has the meaning given to such
term in the Preamble hereto.

                  "TRADING MARKET" means any of the NASD Over The Counter
Bulletin Board, NASDAQ Capital Market, the NASDAQ National Markets System, the
American Stock Exchange or the New York Stock Exchange.

                  "WARRANTS" means the Common Stock purchase warrants issued in
connection with the Securities Purchase Agreement, whether on the date hereof or
thereafter.

                                       2
<PAGE>

         2.       REGISTRATION.

                  (a) On or prior to the Filing Date the Company shall prepare
         and file with the Commission a Registration Statement covering the
         Registrable Securities for a selling stockholder resale offering to be
         made on a continuous basis pursuant to Rule 415. The Registration
         Statement shall be on Form [S-3] (except if the Company is not then
         eligible to register for resale the Registrable Securities on Form
         [S-3], in which case such registration shall be on another appropriate
         form in accordance herewith). The Company shall cause each Registration
         Statement to become effective and remain effective as provided herein.
         The Company shall use its best efforts to cause each Registration
         Statement to be declared effective under the Securities Act as promptly
         as possible after the filing thereof, but in any event no later than
         the Effectiveness Date. The Company shall use its reasonable commercial
         efforts to keep each Registration Statement continuously effective
         under the Securities Act until the date which is the earlier date of
         when (i) all Registrable Securities have been sold or (ii) all
         Registrable Securities covered by such Registration Statement may be
         sold immediately without registration under the Securities Act and
         without volume restrictions pursuant to Rule 144(k), as determined by
         the counsel to the Company pursuant to a written opinion letter to such
         effect, addressed and acceptable to the Company's transfer agent and
         the affected Holders (the "Effectiveness Period").

                  (b) Within three business days of the Effectiveness Date, the
         Company shall cause its counsel to issue a blanket opinion in the form
         attached hereto as Exhibit A, to the transfer agent stating that the
         shares are subject to an effective registration statement and can be
         reissued free of restrictive legend upon notice of a sale by the
         Purchaser and confirmation by the Purchaser that it has complied with
         the prospectus delivery requirements, provided that the Company has not
         advised the transfer agent orally or in writing that the opinion has
         been withdrawn. Copies of the blanket opinion required by this Section
         2(b) shall be delivered to the Purchaser within the time frame set
         forth above.

         3. REGISTRATION PROCEDURES. If and whenever the Company is required by
the provisions hereof to effect the registration of any Registrable Securities
under the Securities Act, the Company will, as expeditiously as possible:

                  (a) prepare and file with the Commission a Registration
         Statement with respect to such Registrable Securities, respond as
         promptly as possible to any comments received from the Commission, and
         use its best efforts to cause the Registration Statement to become and
         remain effective for the Effectiveness Period with respect thereto, and
         promptly provide to the Purchaser copies of all filings and Commission
         letters of comment relating thereto;

                  (b) prepare and file with the Commission such amendments and
         supplements to the Registration Statement and the Prospectus used in
         connection therewith as may be necessary to comply with the provisions
         of the Securities Act with respect to the disposition of all
         Registrable Securities covered by such Registration Statement and to
         keep such Registration Statement effective until the expiration of the
         Effectiveness Period applicable to such Registration Statement;

                                       3
<PAGE>

                  (c) furnish to the Purchaser such number of copies of the
         Registration Statement and the Prospectus included therein (including
         each preliminary Prospectus) as the Purchaser reasonably may request to
         facilitate the public sale or disposition of the Registrable Securities
         covered by the Registration Statement;

                  (d) use its best efforts to register or qualify the
         Purchaser's Registrable Securities covered by such Registration
         Statement under the securities or "blue sky" laws of such jurisdictions
         within the United States as the Purchaser may reasonably request,
         provided, however, that the Company shall not for any such purpose be
         required to qualify generally to transact business as a foreign
         corporation in any jurisdiction where it is not so qualified or to
         consent to general service of process in any such jurisdiction;

                  (e) list the Registrable Securities covered by such
         Registration Statement with any securities exchange on which the Common
         Stock of the Company is then listed;

                  (f) immediately notify the Purchaser at any time when a
         Prospectus relating thereto is required to be delivered under the
         Securities Act, of the happening of any event of which the Company has
         knowledge as a result of which the Prospectus contained in such
         Registration Statement, as then in effect, includes an untrue statement
         of a material fact or omits to state a material fact required to be
         stated therein or necessary to make the statements therein not
         misleading in light of the circumstances then existing; and

                  (g) make available for inspection by the Purchaser and any
         attorney, accountant or other agent retained by the Purchaser, all
         publicly available, non-confidential financial and other records,
         pertinent corporate documents and properties of the Company, and cause
         the Company's officers, directors and employees to supply all publicly
         available, non-confidential information reasonably requested by the
         attorney, accountant or agent of the Purchaser.

         4. REGISTRATION EXPENSES. All expenses relating to the Company's
compliance with Sections 2 and 3 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel and independent public accountants for the Company, fees and expenses
(including reasonable counsel fees) incurred in connection with complying with
state securities or "blue sky" laws, fees of the NASD, transfer taxes, fees of
transfer agents and registrars, fees of, and disbursements incurred by, one
counsel for the Holders, are called "Registration Expenses". All selling
commissions applicable to the sale of Registrable Securities, including any fees
and disbursements of any special counsel to the Holders beyond those included in
Registration Expenses, are called "Selling Expenses." The Company shall only be
responsible for all Registration Expenses.

         5.       INDEMNIFICATION.

                  (a) In the event of a registration of any Registrable
         Securities under the Securities Act pursuant to this Agreement, the
         Company will indemnify and hold harmless the Purchaser, and its
         officers, directors and each other person, if any, who controls the
         Purchaser within the meaning of the Securities Act, against any losses,
         claims, damages or liabilities, joint or several, to which the
         Purchaser, or such persons

                                       4
<PAGE>

         may become subject under the Securities Act or otherwise, insofar as
         such losses, claims, damages or liabilities (or actions in respect
         thereof) arise out of or are based upon any untrue statement or alleged
         untrue statement of any material fact contained in any Registration
         Statement under which such Registrable Securities were registered under
         the Securities Act pursuant to this Agreement, any preliminary
         Prospectus or final Prospectus contained therein, or any amendment or
         supplement thereof, or arise out of or are based upon the omission or
         alleged omission to state therein a material fact required to be stated
         therein or necessary to make the statements therein not misleading, and
         will reimburse the Purchaser, and each such person for any reasonable
         legal or other expenses incurred by them in connection with
         investigating or defending any such loss, claim, damage, liability or
         action; PROVIDED, HOWEVER, that the Company will not be liable in any
         such case if and to the extent that any such loss, claim, damage or
         liability arises out of or is based upon an untrue statement or alleged
         untrue statement or omission or alleged omission so made in conformity
         with information furnished by or on behalf of the Purchaser or any such
         person in writing specifically for use in any such document.

                  (b) In the event of a registration of the Registrable
         Securities under the Securities Act pursuant to this Agreement, the
         Purchaser will indemnify and hold harmless the Company, and its
         officers, directors and each other person, if any, who controls the
         Company within the meaning of the Securities Act, against all losses,
         claims, damages or liabilities, joint or several, to which the Company
         or such persons may become subject under the Securities Act or
         otherwise, insofar as such losses, claims, damages or liabilities (or
         actions in respect thereof) arise out of or are based upon any untrue
         statement or alleged untrue statement of any material fact which was
         furnished in writing by the Purchaser to the Company expressly for use
         in (and such information is contained in) the Registration Statement
         under which such Registrable Securities were registered under the
         Securities Act pursuant to this Agreement, any preliminary Prospectus
         or final Prospectus contained therein, or any amendment or supplement
         thereof, or arise out of or are based upon the omission or alleged
         omission to state therein a material fact required to be stated therein
         or necessary to make the statements therein not misleading, and will
         reimburse the Company and each such person for any reasonable legal or
         other expenses incurred by them in connection with investigating or
         defending any such loss, claim, damage, liability or action, PROVIDED,
         HOWEVER, that the Purchaser will be liable in any such case if and only
         to the extent that any such loss, claim, damage or liability arises out
         of or is based upon an untrue statement or alleged untrue statement or
         omission or alleged omission so made in conformity with information
         furnished in writing to the Company by or on behalf of the Purchaser
         specifically for use in any such document. Notwithstanding the
         provisions of this paragraph, the Purchaser shall not be required to
         indemnify any person or entity in excess of the amount of the aggregate
         net proceeds received by the Purchaser in respect of Registrable
         Securities in connection with any such registration under the
         Securities Act.

                  (c) Promptly after receipt by a party entitled to claim
         indemnification hereunder (an "Indemnified Party") of notice of the
         commencement of any action, such Indemnified Party shall, if a claim
         for indemnification in respect thereof is to be made against a party
         hereto obligated to indemnify such Indemnified Party (an "Indemnifying
         Party"), notify the Indemnifying Party in writing thereof, but the
         omission so to notify the

                                       5
<PAGE>

         Indemnifying Party shall not relieve it from any liability which it may
         have to such Indemnified Party other than under this Section 5(c) and
         shall only relieve it from any liability which it may have to such
         Indemnified Party under this Section 5(c) if and to the extent the
         Indemnifying Party is prejudiced by such omission. In case any such
         action shall be brought against any Indemnified Party and it shall
         notify the Indemnifying Party of the commencement thereof, the
         Indemnifying Party shall be entitled to participate in and, to the
         extent it shall wish, to assume and undertake the defense thereof with
         counsel satisfactory to such Indemnified Party, and, after notice from
         the Indemnifying Party to such Indemnified Party of its election so to
         assume and undertake the defense thereof, the Indemnifying Party shall
         not be liable to such Indemnified Party under this Section 5(c) for any
         legal expenses subsequently incurred by such Indemnified Party in
         connection with the defense thereof; if the Indemnified Party retains
         its own counsel, then the Indemnified Party shall pay all fees, costs
         and expenses of such counsel, PROVIDED, HOWEVER, that, if the
         defendants in any such action include both the Indemnified Party and
         the Indemnifying Party and the Indemnified Party shall have reasonably
         concluded that there may be reasonable defenses available to it which
         are different from or additional to those available to the Indemnifying
         Party or if the interests of the Indemnified Party reasonably may be
         deemed to conflict with the interests of the Indemnifying Party, the
         Indemnified Party shall have the right to select one separate counsel
         and to assume such legal defenses and otherwise to participate in the
         defense of such action, with the reasonable expenses and fees of such
         separate counsel and other expenses related to such participation to be
         reimbursed by the Indemnifying Party as incurred.

                  (d) In order to provide for just and equitable contribution in
         the event of joint liability under the Securities Act in any case in
         which either (i) the Purchaser, or any officer, director or controlling
         person of the Purchaser, makes a claim for indemnification pursuant to
         this Section 5 but it is judicially determined (by the entry of a final
         judgment or decree by a court of competent jurisdiction and the
         expiration of time to appeal or the denial of the last right of appeal)
         that such indemnification may not be enforced in such case
         notwithstanding the fact that this Section 5 provides for
         indemnification in such case, or (ii) contribution under the Securities
         Act may be required on the part of the Purchaser or such officer,
         director or controlling person of the Purchaser in circumstances for
         which indemnification is provided under this Section 5; then, and in
         each such case, the Company and the Purchaser will contribute to the
         aggregate losses, claims, damages or liabilities to which they may be
         subject (after contribution from others) in such proportion so that the
         Purchaser is responsible only for the portion represented by the
         percentage that the public offering price of its securities offered by
         the Registration Statement bears to the public offering price of all
         securities offered by such Registration Statement, PROVIDED, HOWEVER,
         that, in any such case, (A) the Purchaser will not be required to
         contribute any amount in excess of the public offering price of all
         such securities offered by it pursuant to such Registration Statement;
         and (B) no person or entity guilty of fraudulent misrepresentation
         (within the meaning of Section 10(f) of the Act) will be entitled to
         contribution from any person or entity who was not guilty of such
         fraudulent misrepresentation.

                                       6
<PAGE>

         6. REPRESENTATIONS AND WARRANTIES.

                  (a) The Common Stock is registered pursuant to Section 12(b)
         or 12(g) of the Exchange Act and, except with respect to certain
         matters which the Company has disclosed to the Purchaser on Schedule
         4.21 to the Securities Purchase Agreement, the Company has timely filed
         all proxy statements, reports, schedules, forms, statements and other
         documents required to be filed by it under the Exchange Act. The
         Company has filed (i) its Annual Report on Form 10-K for its fiscal
         year ended June 30, 2005and (ii) its Quarterly Reports on Form 10-Q for
         the fiscal quarters ended September 30, 2005, December 30, 2005 and
         March 31, 2006 (collectively, the "SEC Reports"). Each SEC Report was,
         at the time of its filing, in substantial compliance with the
         requirements of its respective form and none of the SEC Reports, nor
         the financial statements (and the notes thereto) included in the SEC
         Reports, as of their respective filing dates, contained any untrue
         statement of a material fact or omitted to state a material fact
         required to be stated therein or necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading. The financial statements of the Company included in the SEC
         Reports comply as to form in all material respects with applicable
         accounting requirements and the published rules and regulations of the
         Commission or other applicable rules and regulations with respect
         thereto. Such financial statements have been prepared in accordance
         with generally accepted accounting principles ("GAAP") applied on a
         consistent basis during the periods involved (except (i) as may be
         otherwise indicated in such financial statements or the notes thereto
         or (ii) in the case of unaudited interim statements, to the extent they
         may not include footnotes or may be condensed) and fairly present in
         all material respects the financial condition, the results of
         operations and the cash flows of the Company and its subsidiaries, on a
         consolidated basis, as of, and for, the periods presented in each such
         SEC Report.

                  (b) The Common Stock is listed for trading on the NASDAQ
         Capital Market and satisfies all requirements for the continuation of
         such listing, and the Company shall do all things necessary for the
         continuation of such listing. The Company has not received any notice
         that its Common Stock will be delisted from the NASDAQ Capital Market
         (except for prior notices which have been fully remedied) or that the
         Common Stock does not meet all requirements for the continuation of
         such listing.

                  (c) Neither the Company, nor any of its affiliates, nor any
         person acting on its or their behalf, has directly or indirectly made
         any offers or sales of any security or solicited any offers to buy any
         security under circumstances that would cause the offering of the
         Securities pursuant to the Securities Purchase Agreement to be
         integrated with prior offerings by the Company for purposes of the
         Securities Act which would prevent the Company from selling the Common
         Stock pursuant to Rule 506 under the Securities Act, or any applicable
         exchange-related stockholder approval provisions, nor will the Company
         or any of its affiliates or subsidiaries take any action or steps that
         would cause the offering of the Securities to be integrated with other
         offerings.

                  (d) The Warrants, the Note and the shares of Common Stock
         which the Purchaser may acquire pursuant to the Warrants and the Note
         are all restricted securities under the Securities Act as of the date
         of this Agreement. The Company will not issue

                                       7
<PAGE>

         any stop transfer order or other order impeding the sale and delivery
         of any of the Registrable Securities at such time as such Registrable
         Securities are registered for public sale or an exemption from
         registration is available, except as required by federal or state
         securities laws.

                  (e) The Company understands the nature of the Registrable
         Securities issuable upon the conversion of the Note and the exercise of
         the Warrant and recognizes that the issuance of such Registrable
         Securities may have a potential dilutive effect. The Company
         specifically acknowledges that its obligation to issue the Registrable
         Securities is binding upon the Company and enforceable regardless of
         the dilution such issuance may have on the ownership interests of other
         shareholders of the Company.

                  (f) Except for agreements made in the ordinary course of
         business, there is no agreement that has not been filed with the
         Commission as an exhibit to a registration statement or to a form
         required to be filed by the Company under the Exchange Act, the breach
         of which could reasonably be expected to have a material and adverse
         effect on the Company and its subsidiaries, or would prohibit or
         otherwise interfere with the ability of the Company to enter into and
         perform any of its obligations under this Agreement in any material
         respect.

                  (g) The Company will at all times have authorized and reserved
         a sufficient number of shares of Common Stock for the full conversion
         of the Note and exercise of the Warrants.

         7. MISCELLANEOUS.

                  (a) REMEDIES. In the event of a breach by the Company or by a
         Holder, of any of their respective obligations under this Agreement,
         each Holder or the Company, as the case may be, in addition to being
         entitled to exercise all rights granted by law and under this
         Agreement, including recovery of damages, will be entitled to specific
         performance of its rights under this Agreement.

                  (b) NO PIGGYBACK ON REGISTRATIONS. Except as and to the extent
         specified in Schedule 7(b) hereto or as otherwise expressly consented
         to by the Holder in writing which consent will not be unreasonably
         withheld, neither the Company nor any of its security holders (other
         than the Holders in such capacity pursuant hereto) may include
         securities of the Company in any Registration Statement other than the
         Registrable Securities, and the Company shall not after the date hereof
         enter into any agreement providing any such right for inclusion of
         shares in the Registration Statement to any of its security holders.
         Except as and to the extent specified in Schedule 7(b) hereto, the
         Company has not previously entered into any agreement granting any
         registration rights with respect to any of its securities to any person
         or entity that have not been fully satisfied.

                  (c) COMPLIANCE. Each Holder covenants and agrees that it will
         comply with the prospectus delivery requirements of the Securities Act
         as applicable to it in connection with sales of Registrable Securities
         pursuant to the Registration Statement.

                                       8
<PAGE>

                  (d) DISCONTINUED DISPOSITION. Each Holder agrees by its
         acquisition of such Registrable Securities that, upon receipt of a
         notice from the Company of the occurrence of a Discontinuation Event
         (as defined below), such Holder will forthwith discontinue disposition
         of such Registrable Securities under the applicable Registration
         Statement until such Holder's receipt of the copies of the supplemented
         Prospectus and/or amended Registration Statement or until it is advised
         in writing (the "Advice") by the Company that the use of the applicable
         Prospectus may be resumed, and, in either case, has received copies of
         any additional or supplemental filings that are incorporated or deemed
         to be incorporated by reference in such Prospectus or Registration
         Statement. The Company may provide appropriate stop orders to enforce
         the provisions of this paragraph. For purposes of this Agreement, a
         "Discontinuation Event" shall mean (i) when the Commission notifies the
         Company whether there will be a "review" of such Registration Statement
         and whenever the Commission comments in writing on such Registration
         Statement (the Company shall provide true and complete copies thereof
         and all written responses thereto to each of the Holders); (ii) any
         request by the Commission or any other Federal or state governmental
         authority for amendments or supplements to such Registration Statement
         or Prospectus or for additional information; (iii) the issuance by the
         Commission of any stop order suspending the effectiveness of such
         Registration Statement covering any or all of the Registrable
         Securities or the initiation of any Proceedings for that purpose; (iv)
         the receipt by the Company of any notification with respect to the
         suspension of the qualification or exemption from qualification of any
         of the Registrable Securities for sale in any jurisdiction, or the
         initiation or threatening of any Proceeding for such purpose; and/or
         (v) the occurrence of any event or passage of time that makes the
         financial statements included in such Registration Statement ineligible
         for inclusion therein or any statement made in such Registration
         Statement or Prospectus or any document incorporated or deemed to be
         incorporated therein by reference untrue in any material respect or
         that requires any revisions to such Registration Statement, Prospectus
         or other documents so that, in the case of such Registration Statement
         or Prospectus, as the case may be, it will not contain any untrue
         statement of a material fact or omit to state any material fact
         required to be stated therein or necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading.

                  (e) PIGGY-BACK REGISTRATIONS. If at any time after the date
         hereof there is not an effective Registration Statement covering all of
         the Registrable Securities required to be covered hereunder and the
         Company shall determine to prepare and file with the Commission a
         registration statement relating to an offering for its own account or
         the account of others under the Securities Act of any of its equity
         securities, other than on Form S-4 or Form S-8 (each as promulgated
         under the Securities Act) or their then equivalents relating to equity
         securities to be issued solely in connection with any acquisition of
         any entity or business or equity securities issuable in connection with
         stock option or other employee benefit plans, then the Company shall
         send to each Holder written notice of such determination and, if within
         fifteen (15) days after receipt of such notice, any such Holder shall
         so request in writing, the Company shall include in such registration
         statement all or any part of such Registrable Securities such Holder
         requests to be registered to the extent the Company may do so without
         violating registration rights of others which exist as of the date of
         this Agreement, subject to customary underwriter

                                       9
<PAGE>

         cutbacks applicable to all holders of registration rights and subject
         to obtaining any required consent of any selling stockholder(s) to such
         inclusion under such registration statement.

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

                  (g) NOTICES. Any notice or request hereunder may be given to
         the Company or the Purchaser at the respective addresses set forth
         below or as may hereafter be specified in a notice designated as a
         change of address under this Section 7(g). Any notice or request
         hereunder shall be given by registered or certified mail, return
         receipt requested, hand delivery, overnight mail, Federal Express or
         other national overnight next day carrier (collectively, "Courier") or
         telecopy (confirmed by mail). Notices and requests shall be, in the
         case of those by hand delivery, deemed to have been given when
         delivered to any party to whom it is addressed, in the case of those by
         mail or overnight mail, deemed to have been given three (3) business
         days after the date when deposited in the mail or with the overnight
         mail carrier, in the case of a Courier, the next business day following
         timely delivery of the package with the Courier, and, in the case of a
         telecopy, when confirmed. The address for such notices and
         communications shall be as follows:

                  IF TO THE COMPANY:        Able Energy, Inc.

                                            198 Green Pond Rd
                                            Rockaway, NJ 07866

                                            Attention: Chief Executive Officer,
                                            Gregory D. Frost
                                            Facsimile: (973) 586-9866

                                            WITH A COPY TO:

                                            Attention: Kenneth N. Miller

                                            1140 Avenue of the Americas
                                            Suite 1800
                                            New York, NY 10036
                                            Facsimile: (212) 687-9621

                                       10
<PAGE>

         or such other address as may be designated in writing hereafter in
         accordance with this Section 7(g) by such Person.

                  (h) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
         benefit of and be binding upon the successors and permitted assigns of
         each of the parties and shall inure to the benefit of each Holder. The
         Company may not assign its rights or obligations hereunder without the
         prior written consent of each Holder. Each Holder may assign their
         respective rights hereunder in the manner and to the persons and
         entities as permitted under the Note and the Securities Purchase
         Agreement.

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

                  (j) GOVERNING LAW, JURISDICTION AND WAIVER OF JURY TRIAL. THIS
         AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE
         WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
         PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
         LAW. The Company hereby consents and agrees that the state or federal
         courts located in the County of New York, State of New York shall have
         exclusion jurisdiction to hear and determine any Proceeding between the
         Company, on the one hand, and the Purchaser, on the other hand,
         pertaining to this Agreement or to any matter arising out of or related
         to this Agreement; PROVIDED, that the Purchaser and the Company
         acknowledge that any appeals from those courts may have to be heard by
         a court located outside of the County of New York, State of New York,
         and FURTHER PROVIDED, that nothing in this Agreement shall be deemed or
         operate to preclude the Purchaser from bringing a Proceeding in any
         other jurisdiction to collect the obligations, to realize on the
         Collateral or any other security for the obligations, or to enforce a
         judgment or other court order in favor of the Purchaser. The Company
         expressly submits and consents in advance to such jurisdiction in any
         Proceeding commenced in any such court, and the Company hereby waives
         any objection which it may have based upon lack of personal
         jurisdiction, improper venue or FORUM NON CONVENIENS. The Company
         hereby waives personal service of the summons, complaint and other
         process issued in any such Proceeding and agrees that service of such
         summons, complaint and other process may be made by registered or
         certified mail addressed to the Company at the address set forth in
         Section 7(g) and that service so made shall be deemed completed upon
         the earlier of the Company's actual receipt thereof or three (3) days
         after deposit in the U.S. mails, proper postage prepaid. The parties
         hereto desire that their disputes be resolved by a judge applying such
         applicable laws. Therefore, to achieve the best combination of the
         benefits of the judicial system and of arbitration, the parties hereto
         waive all rights to trial by jury in any Proceeding brought to

                                       11
<PAGE>

         resolve any dispute, whether arising in contract, tort, or otherwise
         between the Purchaser and/or the Company arising out of, connected
         with, related or incidental to the relationship established between
         then in connection with this Agreement. If either party hereto shall
         commence a Proceeding to enforce any provisions of this Agreement, the
         Securities Purchase Agreement or any other Related Agreement, then the
         prevailing party in such Proceeding shall be reimbursed by the other
         party for its reasonable attorneys' fees and other costs and expenses
         incurred with the investigation, preparation and prosecution of such
         Proceeding.

                  (k) CUMULATIVE REMEDIES. The remedies provided herein are
         cumulative and not exclusive of any remedies provided by law.

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

                  (m) HEADINGS. The headings in this Agreement are for
         convenience of reference only and shall not limit or otherwise affect
         the meaning hereof.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK;
                             SIGNATURE PAGE FOLLOWS]

                                       12
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

ABLE ENERGY, INC.                                 LAURUS MASTER FUND, LTD.

By:      s/Gregory D. Frost                       By: s/Eugene Grin
         ------------------                           --------------------
Name:    Gregory D. Frost                         Name:   Eugene Grin
Title:   Chief Executive Officer                  Title:  Fund Manager

                                                  ADDRESS FOR NOTICES:

                                                  825 Third Avenue, 14th Floor
                                                  New York, NY  10022
                                                  Attention:    David Grin
                                                  Facsimile:    212-541-4434

                                       13
<PAGE>

                                    EXHIBIT A

                                 [June 30, 2006]

Continental Stock Transfer
  & Trust Company
17 Battery Place
New York, NY  10004
Attn:  Roger Bernhammer

            Re:      ABLE ENERGY, INC.. REGISTRATION STATEMENT ON FORM [S-3]
                     -------------------------------------------------------

Ladies and Gentlemen:

         As counsel to Able Energy, Inc., a Delaware corporation (the
"Company"), we have been requested to render our opinion to you in connection
with the resale by the individuals or entitles listed on Schedule A attached
hereto (the "Selling Stockholders"), of an aggregate of __________ shares (the
"Shares") of the Company's Common Stock.

         A Registration Statement on Form [S-3] under the Securities Act of
1933, as amended (the "Act"), with respect to the resale of the Shares was
declared effective by the Securities and Exchange Commission on [date]. Enclosed
is the Prospectus dated [date]. We understand that the Shares are to be offered
and sold in the manner described in the Prospectus.

         Based upon the foregoing, upon request by the Selling Stockholders at
any time while the registration statement remains effective, it is our opinion
that the Shares have been registered for resale under the Act and new
certificates evidencing the Shares upon their transfer or re-registration by the
Selling Stockholders may be issued without restrictive legend. We will advise
you if the registration statement is not available or effective at any point in
the future.

                                                     Very truly yours,

                                                     [Company counsel]

<PAGE>

                             SCHEDULE A TO EXHIBIT A

                                                         Shares
         Selling Stockholder                         Being Offered
         -------------------                         -------------

<PAGE>

                                  SCHEDULE 7(B)

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