Document:

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                                                                    Exhibit 10.5

                FORM OF WARRANT ISSUED TO PREFERRED STOCKHOLDERS

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NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.

                           METRETEK TECHNOLOGIES, INC.

                                     WARRANT

Warrant No.: C-__                               Original Issue Date: May 3, 2004
Number of Shares:__________

      METRETEK TECHNOLOGIES, INC., a Delaware corporation (the "COMPANY"),
hereby certifies that, for value received, ________________or its registered
assigns (the "HOLDER"), is entitled to purchase from the Company up to a total
of ________shares of Common Stock (each such share, a "WARRANT SHARE" and all
such shares, the "WARRANT SHARES"), at any time and from time to time from and
after the Original Issue Date and through and including June 9, 2005 (the
"EXPIRATION DATE"), and subject to the following terms and conditions:

      1.    Definitions. As used in this Warrant, the following terms shall have
the respective definitions set forth in this Section 1. Capitalized terms that
are used and not defined in this Warrant that are defined in the Purchase
Agreement (as defined below) shall have the respective definitions set forth in
the Purchase Agreement.

      "BUSINESS DAY" means any day except Saturday, Sunday and any day that is a
federal legal holiday in the United States or a day on which banking
institutions in the State of New York are authorized or required by law or other
government action to close.

      "CALL CONDITION PERIOD" has the meaning set forth in Section 4.

      "CALL DATE" has the meaning set forth in Section 4.

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      "CALL NOTICE" has the meaning set forth in Section 4.

      "COMMON STOCK" means the common stock of the Company, par value $.01 per
share, and any securities into which such common stock may hereafter be
reclassified.

      "EXERCISE PRICE" means $3.0571, subject to adjustment in accordance with
Section 9.

      "ORIGINAL ISSUE DATE" means the Original Issue Date first set forth on the
first page of this Warrant.

      "NEW YORK COURTS" means the state and federal courts sitting in the City
of New York, Borough of Manhattan.

      "PURCHASE AGREEMENT" means the Securities Purchase Agreement, dated April
29, 2004, to which the Company and certain investors are parties.

      "TRADING DAY" means (i) a day on which the Common Stock is traded on a
Trading Market (other than the OTC Bulletin Board), or (ii) if the Common Stock
is not listed on a Trading Market (other than the OTC Bulletin Board), a day on
which the Common Stock is traded in the over-the-counter market, as reported by
the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any
Trading Market, a day on which the Common Stock is quoted in the
over-the-counter market as reported by the National Quotation Bureau
Incorporated (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not
listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day
shall mean a Business Day.

      "VWAP" means on any particular Trading Day or for any particular period,
the volume weighted average trading price per share of Common Stock on such date
or for such period as reported by the Bloomberg L.P., by any successor
performing similar functions.

      2.    Registration of Warrant. The Company shall register this Warrant
upon records to be maintained by the Company for that purpose (the "WARRANT
REGISTER"), in the name of the record Holder hereof from time to time. The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the contrary.

      3.    Registration of Transfers. The Company shall register the transfer
(subject to Section 3(a) above) of any portion of this Warrant in the Warrant
Register, upon surrender of this Warrant, with the Form of Assignment attached
hereto duly completed and signed, to the Company at its address specified
herein. Upon any such registration or transfer, a new Warrant to purchase Common
Stock, in substantially the form of this Warrant (any such new Warrant, a "NEW
WARRANT"), evidencing the portion of this Warrant so transferred shall be issued
to the transferee and a New Warrant evidencing the remaining portion of this
Warrant not so transferred, if any, shall be issued to the transferring Holder.
The acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance by such transferee of all of the rights and obligations of a holder
of a Warrant.

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      4.    Exercise and Duration of Warrants.

            (a)   This Warrant shall be exercisable by the registered Holder at
any time and from time to time on or after the Original Issue Date through and
including the Expiration Date. At 6:30 p.m., New York City time on the
Expiration Date, the portion of this Warrant not exercised prior thereto shall
be and become void and of no value. The Company may not call or redeem any
portion of this Warrant without the prior written consent of the affected
Holder.

            (b)   Subject to the provisions of this Section 4(b), if at any time
following the one year anniversary of the Original Issue Date: (i) the VWAP of
the Common Stock for each of 30 consecutive Trading Days following the one year
anniversary of the Original Issue Date is greater than 200% of the Exercise
Price, provided, that the average volume of the Common Stock traded over the
period shall be at least 100,000 shares (subject to adjustment pursuant to
Section 9), (ii) the Warrant Shares are either registered for resale pursuant to
an effective registration statement naming the Holder as a selling stockholder
thereunder (and the prospectus thereunder is available for use by the Holder as
to all Warrant Shares) or freely transferable without volume restrictions
pursuant to Rule 144(k) promulgated under the Securities Act, as determined by
counsel to the Company pursuant to a written opinion letter addressed and in
form and substance reasonably acceptable to the Holder and the transfer agent
for the Common Stock, during the entire 30 Trading Day period referenced in (i)
above through the expiration of the Call Date as set forth in the Company's
notice pursuant to this Section (the "CALL CONDITION PERIOD"), and (iii) the
Company shall have complied in all material respects with its obligations under
this Warrant and the Transaction Documents and the Common Stock shall at all
times be listed or quoted on a Trading Market, then, subject to the conditions
set forth in this Section, the Company may, in its sole discretion, elect to
require the exercise of all (but not less than all) of the then unexercised
portion of this Warrant, on the date that is the 30th day after written notice
thereof (a "CALL NOTICE") is received by the Holder (the "CALL DATE") at the
address last shown on the records of the Company for the Holder or given by the
Holder to the Company for the purpose of notice; provided, that the conditions
to giving such notice must be in effect at all times during the Call Condition
Period or any such Call Notice shall be null and void. The Company and the
Holder agree that, if and to the extent Section 11 of this Warrant would
restrict the ability of the Holder to exercise this Warrant in the event of a
delivery of a Call Notice, then notwithstanding anything to the contrary set
forth in the Call Notice, the Call Notice shall be deemed automatically amended
to apply only to such portion of this Warrant as may be exercised by the Holder
by the Call Date in accordance with such Sections as are then in effect. The
Holder will promptly (and, in any event, prior to the Call Date) notify the
Company in writing following receipt of a Call Notice if Section 11 would
restrict its exercise of the Warrant, specifying therein the number of Warrant
Shares so restricted. The Company covenants and agrees that it will honor all
Exercise Notices tendered through 6:30 p.m. (New York City time) on the Call
Date. If the Holder fails to timely exercise this Warrant as set forth in and
required pursuant to this Section 4(b), the Company shall have the right to
repurchase in cash that portion of this Warrant subject to the Call Notice at a
price equal to $0.01 multiplied by the number of Warrant Shares subject to the
Call Notice.

      5.    Delivery of Warrant Shares.

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            (a)   To effect exercises hereunder, the Holder shall not be
required to physically surrender this Warrant unless the aggregate Warrant
Shares represented by this Warrant is being exercised. Upon delivery of the
Exercise Notice (in the form attached hereto) to the Company (with the attached
Warrant Shares Exercise Log) at its address for notice set forth herein and upon
payment of the Exercise Price multiplied by the number of Warrant Shares that
the Holder intends to purchase hereunder, the Company shall promptly (but in no
event later than three Trading Days after the Date of Exercise (as defined
herein)) issue and deliver to the Holder, a certificate for the Warrant Shares
issuable upon such exercise, which shall be free of restrictive legends. The
Company shall, upon request of the Holder and subsequent to the date on which a
registration statement covering the resale of the Warrant Shares has been
declared effective by the Securities and Exchange Commission, use its reasonable
best efforts to deliver Warrant Shares hereunder electronically through the
Depository Trust Corporation or another established clearing corporation
performing similar functions, if available, provided, that, the Company may, but
will not be required to change its transfer agent if its current transfer agent
cannot deliver Warrant Shares electronically through the Depository Trust
Corporation. A "DATE OF EXERCISE" means the date on which the Holder shall have
delivered to the Company: (i) the Exercise Notice (with the Warrant Exercise Log
attached to it), appropriately completed and duly signed and (ii) if such Holder
is not utilizing the cashless exercise provisions set forth in this Warrant,
payment of the Exercise Price for the number of Warrant Shares so indicated by
the Holder to be purchased.

            (b)   If by the third Trading Day after a Date of Exercise the
Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), then the Holder will have the right to
rescind such exercise.

            (c)   If by the third Trading Day after a Date of Exercise the
Company fails to deliver the required number of Warrant Shares in the manner
required pursuant to Section 5(a), and if after such third Trading Day and prior
to the receipt of such Warrant Shares, the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a "BUY-IN"), then the Company shall (1) pay in cash to the
Holder the amount by which (x) the Holder's total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased
exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with the
exercise at issue by (B) the closing bid price of the Common Stock at the time
of the obligation giving rise to such purchase obligation and (2) at the option
of the Holder, either reinstate the portion of the Warrant and equivalent number
of Warrant Shares for which such exercise was not honored or deliver to the
Holder the number of shares of Common Stock that would have been issued had the
Company timely complied with its exercise and delivery obligations hereunder.
The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In.

            (d)   The Company's obligations to issue and deliver Warrant Shares
in accordance with the terms hereof are absolute and unconditional, irrespective
of any action or inaction by the Holder to enforce the same, any waiver or
consent with respect to any provision hereof, the recovery of any judgment
against any Person or any action to enforce the same, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach

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by the Holder or any other Person of any obligation to the Company or any
violation or alleged violation of law by the Holder or any other Person, and
irrespective of any other circumstance which might otherwise limit such
obligation of the Company to the Holder in connection with the issuance of
Warrant Shares. Nothing herein shall limit a Holder's right to pursue any other
remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with
respect to the Company's failure to timely deliver certificates representing
Warrant Shares upon exercise of the Warrant as required pursuant to the terms
hereof.

      6.    Charges, Taxes and Expenses. Issuance and delivery of Warrant Shares
upon exercise of this Warrant shall be made without charge to the Holder for any
issue or transfer tax, withholding tax, transfer agent fee or other incidental
tax or expense in respect of the issuance of such certificates, all of which
taxes and expenses shall be paid by the Company; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the registration of any certificates for Warrant Shares
or Warrants in a name other than that of the Holder. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or
transferring this Warrant or receiving Warrant Shares upon exercise hereof.

      7.    Replacement of Warrant. If this Warrant is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and
substitution for and upon cancellation hereof, or in lieu of and substitution
for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and
reasonable indemnity (which shall not include a surety bond), if requested.
Applicants for a New Warrant under such circumstances shall also comply with
such other reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as
a result of a mutilation of this Warrant, then the Holder shall deliver such
mutilated Warrant to the Company as a condition precedent to the Company's
obligation to issue the New Warrant.

      8.    Reservation of Warrant Shares. The Company covenants that it will at
all times reserve and keep available out of the aggregate of its authorized but
unissued and otherwise unreserved Common Stock, solely for the purpose of
enabling it to issue Warrant Shares upon exercise of this Warrant as herein
provided, the number of Warrant Shares which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any
other contingent purchase rights of Persons other than the Holder (taking into
account the adjustments and restrictions of Section 9). The Company covenants
that all Warrant Shares so issuable and deliverable shall, upon issuance and the
payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and nonassessable.

      9.    Certain Adjustments. The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to
time as set forth in this Section 9.

            (a)   Stock Dividends and Splits. If the Company, at any time while
this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or
otherwise makes a

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distribution on any class of capital stock that is payable in shares of Common
Stock, (ii) subdivides outstanding shares of Common Stock into a larger number
of shares, or (iii) combines outstanding shares of Common Stock into a smaller
number of shares, then in each such case the Exercise Price shall be multiplied
by a fraction of which the numerator shall be the number of shares of Common
Stock outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such
event. Any adjustment made pursuant to clause (i) of this paragraph shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution, and any
adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
effective immediately after the effective date of such subdivision or
combination.

            (b)   Fundamental Transactions. If, at any time while this Warrant
is outstanding, (1) the Company effects any merger or consolidation of the
Company with or into another Person, (2) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions, (3)
any tender offer or exchange offer (whether by the Company or another Person) is
completed pursuant to which holders of Common Stock are permitted to tender or
exchange their shares for other securities, cash or property, or (4) the Company
effects any reclassification of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such case, a
"FUNDAMENTAL TRANSACTION"), then the Holder shall have the right thereafter to
receive, upon exercise of this Warrant, the same amount and kind of securities,
cash or property as it would have been entitled to receive upon the occurrence
of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then
issuable upon exercise in full of this Warrant (the "ALTERNATE CONSIDERATION").
For purposes of any such exercise, the determination of the Exercise Price shall
be appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction. At the Holder's option and request, any successor to the Company or
surviving entity in such Fundamental Transaction shall, either (1) issue to the
Holder a new warrant substantially in the form of this Warrant and consistent
with the foregoing provisions and evidencing the Holder's right to purchase the
Alternate Consideration for the aggregate Exercise Price upon exercise thereof,
or (2) purchase the Warrant from the Holder for a purchase price, payable in
cash within five Trading Days after such request (or, if later, on the effective
date of the Fundamental Transaction), equal to the Black Scholes value of the
remaining unexercised portion of this Warrant on the date of such request. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this paragraph (c) and insuring that the Warrant (or any
such replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction.

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            (c)   Number of Warrant Shares. Simultaneously with any adjustment
to the Exercise Price pursuant to this Section 9, the number of Warrant Shares
that may be purchased upon exercise of this Warrant shall be increased or
decreased proportionately, so that after such adjustment the aggregate Exercise
Price payable hereunder for the adjusted number of Warrant Shares shall be the
same as the aggregate Exercise Price in effect immediately prior to such
adjustment.

            (d)   Calculations. All calculations under this Section 9 shall be
made to the nearest cent or the nearest 1/100th of a share, as applicable. The
number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company, and the disposition
of any such shares shall be considered an issue or sale of Common Stock.

            (e)   Notice of Adjustments. Upon the occurrence of each adjustment
pursuant to this Section 9, the Company at its expense will promptly compute
such adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and adjusted number or type of Warrant Shares or other securities
issuable upon exercise of this Warrant (as applicable), describing the
transactions giving rise to such adjustments and showing in detail the facts
upon which such adjustment is based. Upon written request, the Company will
promptly deliver a copy of each such certificate to the Holder and to the
Company's Transfer Agent.

            (f)   Notice of Corporate Events. If the Company (i) declares a
dividend or any other distribution of cash, securities or other property in
respect of its Common Stock, including without limitation any granting of rights
or warrants to subscribe for or purchase any capital stock of the Company or any
Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating
or solicits stockholder approval for any Fundamental Transaction or (iii)
authorizes the voluntary dissolution, liquidation or winding up of the affairs
of the Company, then the Company shall deliver to the Holder a notice describing
the material terms and conditions of such transaction (but only to the extent
such disclosure would not result in the dissemination of material, non-public
information to the Holder) at least 10 calendar days prior to the applicable
record or effective date on which a Person would need to hold Common Stock in
order to participate in or vote with respect to such transaction, and the
Company will take all steps reasonably necessary in order to insure that the
Holder is given the practical opportunity to exercise this Warrant prior to such
time so as to participate in or vote with respect to such transaction; provided,
however, that the failure to deliver such notice or any defect therein shall not
affect the validity of the corporate action required to be described in such
notice.

      10.   Payment of Exercise Price. The Holder may pay the Exercise Price in
one of the following manners:

            (a)   Cash Exercise. The Holder may deliver immediately available
funds; or

            (b)   Cashless Exercise. If an Exercise Notice is delivered at a
time when a registration statement permitting the Holder to resell the Warrant
Shares is not then effective or the prospectus forming a part thereof is not
then available to the Holder for the resale of the Warrant Shares, then the
Holder may notify the Company in an Exercise Notice of its election to

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utilize cashless exercise, in which event the Company shall issue to the Holder
the number of Warrant Shares determined as follows:

                        X = Y [(A-B)/A]

                  where:

                        X = the number of Warrant Shares to be issued to the
                        Holder.

                        Y = the number of Warrant Shares with respect to which
                        this Warrant is being exercised.

                        A = the average of the closing prices for the five
                        Trading Days immediately prior to (but not including)
                        the Exercise Date.

                        B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Warrant Shares shall be deemed to have commenced, on
the date this Warrant was originally issued.

      11.   No Fractional Shares. No fractional shares of Warrant Shares will be
issued in connection with any exercise of this Warrant. In lieu of any
fractional shares which would, otherwise be issuable, the Company shall pay cash
equal to the product of such fraction multiplied by the closing price of one
Warrant Share as reported by the applicable Trading Market on the date of
exercise.

      12.   Notices. Any and all notices or other communications or deliveries
hereunder (including, without limitation, any Exercise Notice) shall be in
writing and shall be deemed given and effective on the earliest of (i) the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile number specified in this Section prior to 6:30 p.m. (New York City
time) on a Trading Day, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or
later than 6:30 p.m. (New York City time) on any Trading Day, (iii) the Trading
Day following the date of mailing, if sent by nationally recognized overnight
courier service, or (iv) upon actual receipt by the party to whom such notice is
required to be given. The addresses for such communications shall be: (i) if to
the Company, to Metretek Technologies, Inc., Attn: President, or to Facsimile
No.: (303) 785-8085 (or such other address as the Company shall indicate in
writing in accordance with this Section), or (ii) if to the Holder, to the
address or facsimile number appearing on the Warrant Register or such other
address or facsimile number as the Holder may provide to the Company in
accordance with this Section.

      13.   Warrant Agent. The Company shall serve as warrant agent under this
Warrant. Upon 10 days' notice to the Holder, the Company may appoint a new
warrant agent. Any corporation into which the Company or any new warrant agent
may be merged or any corporation resulting from any consolidation to which the
Company or any new warrant agent

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shall be a party or any corporation to which the Company or any new warrant
agent transfers substantially all of its corporate trust or shareholders
services business shall be a successor warrant agent under this Warrant without
any further act. Any such successor warrant agent shall promptly cause notice of
its succession as warrant agent to be mailed (by first class mail, postage
prepaid) to the Holder at the Holder's last address as shown on the Warrant
Register.

      14.   Miscellaneous.

            (a)   This Warrant shall be binding on and inure to the benefit of
the parties hereto and their respective successors and assigns. Subject to the
preceding sentence, nothing in this Warrant shall be construed to give to any
Person other than the Company and the Holder any legal or equitable right,
remedy or cause of action under this Warrant. This Warrant may be amended only
in writing signed by the Company and the Holder and their successors and
assigns.

            (b)   All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York (except for matters governed by corporate law in the State of Delaware),
without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and
defense of this Warrant and the transactions herein contemplated ("PROCEEDINGS")
(whether brought against a party hereto or its respective Affiliates, employees
or agents) shall be commenced exclusively in the New York Courts. Each party
hereto hereby irrevocably submits to the exclusive jurisdiction of the New York
Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby
irrevocably waives, and agrees not to assert in any Proceeding, any claim that
it is not personally subject to the jurisdiction of any New York Court, or that
such Proceeding has been commenced in an improper or inconvenient forum. Each
party hereto hereby irrevocably waives personal service of process and consents
to process being served in any such Proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Warrant and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way
any right to serve process in any manner permitted by law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law,
any and all right to trial by jury in any legal proceeding arising out of or
relating to this Warrant or the transactions contemplated hereby. If either
party shall commence a Proceeding to enforce any provisions of this Warrant,
then the prevailing party in such Proceeding shall be reimbursed by the other
party for its attorney's fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

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

            (d)   In case any one or more of the provisions of this Warrant
shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a

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commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

            (e)   Prior to exercise of this Warrant, the Holder hereof shall
not, by reason of by being a Holder, be entitled to any rights of a stockholder
with respect to the Warrant Shares.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
                             SIGNATURE PAGE FOLLOWS]

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      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its authorized officer as of the date first indicated above.

                               METRETEK TECHNOLOGIES, INC.

                               By:____________________________________________
                                  A. Bradley Gabbard, Executive Vice President

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                                 EXERCISE NOTICE
                           METRETEK TECHNOLOGIES, INC.
                            WARRANT DATED May 3, 2004

The undersigned Holder hereby irrevocably elects to purchase _____________
shares of Common Stock pursuant to the above referenced Warrant. Capitalized
terms used herein and not otherwise defined have the respective meanings set
forth in the Warrant.

(1)   The undersigned Holder hereby exercises its right to purchase ___________
Warrant Shares pursuant to the Warrant.

(2)   The Holder intends that payment of the Exercise Price shall be made as
(check one):

                              ____   "Cash Exercise" under Section 10

                              ____   "Cashless Exercise" under Section 10

(3)   If the holder has elected a Cash Exercise, the holder shall pay the sum of
$____________ to the Company in accordance with the terms of the Warrant.

(4)   Pursuant to this Exercise Notice, the Company shall deliver to the holder
_______________ Warrant Shares in accordance with the terms of the Warrant.

(5)   By its delivery of this Exercise Notice, the undersigned represents and
warrants to the Company that in giving effect to the exercise evidenced hereby
the Holder will not beneficially own in excess of the number of shares of Common
Stock (determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934) permitted to be owned under Section 11 of this Warrant to which
this notice relates.

Dated:____________,____             Name of Holder:

                                    (Print)________________________________

                                    By:____________________________________
                                    Name:__________________________________
                                    Title:_________________________________

                                    (Signature must conform in all respects to
                                    name of holder as specified on the face of
                                    the Warrant)

<PAGE>

<TABLE>
<CAPTION>
                                                                          Number of
               Number of Warrant                                       Warrant Shares
            Shares Available to be      Number of Warrant Shares        Remaining to
Date              Exercised                    Exercised                be Exercised
----              ---------                    ---------                ------------
<S>         <C>                         <C>                            <C>
</TABLE>

<PAGE>

                           METRETEK TECHNOLOGIES, INC.
                      WARRANT ORIGINALLY ISSUED MAY 3, 2004
                               WARRANT NO. C-____

                               FORM OF ASSIGNMENT

      [To be completed and signed only upon transfer of Warrant]

      FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________________ the right represented by the
above-captioned Warrant to purchase ____________ shares of Common Stock to which
such Warrant relates and appoints ________________ attorney to transfer said
right on the books of the Company with full power of substitution in the
premises.

Dated:____________, ____

                            ________________________________________________
                            (Signature  must  conform in all respects to name of
                            holder as specified on the face of the Warrant)

                            ________________________________________________
                            Address of Transferee

                            ________________________________________________

                            ________________________________________________

In the presence of:

___________________<PAGE>

                                                                    Exhibit 10.6

                                 AMENDMENT NO. 1

                                       TO

                      AMENDED AND RESTATED RIGHTS AGREEMENT

<PAGE>

                                 AMENDMENT NO. 1
                                       TO
                      AMENDED AND RESTATED RIGHTS AGREEMENT

      This AMENDMENT NO. 1 TO AMENDED AND RESTATED RIGHTS AGREEMENT (this
"Amendment"), dated as of April 22, 2004, is made and entered into by and
between Metretek Technologies, Inc., a Delaware corporation (the "Company"), and
Computershare Investor Services, LLC (the "Rights Agent").

                                   WITNESSETH

      WHEREAS, the Company and the Rights Agent have previously entered into
that certain Rights Agreement, originally dated as of December 2, 1991 and
amended and restated as of November 30, 2001 (as amended and restated, the
"Rights Agreement"); and

      WHEREAS, the Board of Directors of the Company has authorized and approved
a Securities Purchase Agreement (the "Purchase Agreement") by and among the
Company and certain investors ("2004 Private Placement Investors"), providing
for, among other things, the offering, sale and issuance by the Company (the
"2004 Private Placement") to the 2004 Private Placement Investors of shares of
the Company's Common Stock, par value $.01 per share ("Common Shares") to the
2004 Private Placement Investors, and warrants to purchase Common Shares to the
2004 Private Placement Investors and to the placement agent for the 2004 Private
Placement; and

      WHEREAS, the Company has authorized and approved agreements (the
"Preferred Share Agreement") by and among the Company and certain holders (the
"Series B Preferred Shareholders") of its Series B Preferred Stock, par value
$.01 per share ("Series B Preferred Shares"), providing for, among other things,
the Company to issue warrants to purchase Common Shares to such holders of
Series B Preferred Share;

      WHEREAS, the Board of Directors of the Company has determined that the
Purchase Agreement and the Preferred Share Agreement, and the transactions
contemplated thereby, are advisable and in the best interests of the Company and
its stockholders; and

      WHEREAS, the willingness of the 2004 Private Placement Investors to enter
into the Purchase Agreement and the willingness of the Series B Preferred
Shareholders to enter into the Preferred Share Agreements is conditioned upon,
among other things, the amendment of the Rights Agreement on the terms set forth
herein; and

      WHEREAS, no "Distribution Date", "Shares Acquisition Date", "Redemption
Date" or "Final Expiration Date" (as such terms are defined in the Rights
Agreement) has occurred; and

      WHEREAS, Section 27 of the Rights Agreement provides that, among other
things, subject to the restrictions set forth in such Section, the Company may,
by resolution adopted by its Board of Directors, supplement or amend any
provisions of the Rights Agreement without the approval of any holders of
certificates representing rights under the Rights Agreement and, in the event of
such amendment, the Company shall, and the Rights Agent shall, if the Company so
directs, sign a writing evidencing any such supplement or amendment; and

<PAGE>

      WHEREAS, the Board of Directors of the Company has adopted a resolution
determining that the amendment of the Rights Agreement on the terms set forth
herein is advisable and in the best interests of the Company and its
stockholders;

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
set forth in the Rights Agreement and in this Amendment, the parties hereto
agree as follows:

      1.    Amendments to Section 1.

            1.1   Section 1(a) of the Rights Agreement is hereby amended by
adding to the end thereof the following:

            "In addition, notwithstanding anything to the contrary contained
            herein, (i) neither a 2004 Private Placement Investor nor any of its
            Affiliates or Associates shall be, become or be deemed to be an
            "Acquiring Person" (and no Shares Acquisition Date shall occur)
            solely as a result of the execution and delivery of the 2004 Private
            Placement Documents (or any amendment thereto in accordance with the
            terms thereof), or any actions taken by any of the 2004 Investors
            pursuant to the terms of any of the 2004 Private Placement
            Documents, or the consummation of the transactions contemplated by
            the 2004 Private Placement Documents, or the announcement or
            commencement thereof, including, without limitation, the acquisition
            by any of the 2004 Private Placement Investors now or at any time in
            the future of any Common Shares, 2004 Private Placement Warrants,
            and Common Shares issued or issuable upon exercise of 2004 Private
            Placement Warrants, or any other acquisition of any of such
            securities, in each case pursuant to the 2004 Private Placement
            Documents, and (ii) neither a Series B Preferred Shareholder nor any
            of its Affiliates or Associates shall be, become or be deemed to be
            an "Acquiring Person" (and no Shares Acquisition Date shall occur)
            solely as a result of the execution and delivery of the Series B
            Preferred Share Documents (or any amendment thereto in accordance
            with the terms thereof), or any actions taken by any of the Series B
            Preferred Shareholders pursuant to the terms of any of the Series B
            Preferred Share Documents, or the consummation of the transactions
            contemplated by the Series B Preferred Share Documents, or the
            announcement or commencement thereof, including, without limitation,
            the acquisition by any of the Series Preferred Shareholders now or
            at any time in the future of any Series B Preferred Share Warrants
            or any Common Shares issued or issuable upon exercise of Series B
            Preferred Share Warrants, or any other acquisition of any of such
            securities, in each case pursuant to the Series B Preferred Share
            Documents."

            1.2   Section 1(jj) of the Rights Agreement is hereby amended by
adding the following to the end thereof:

            "In addition, notwithstanding anything to the contrary contained
            herein, no Shares Acquisition Date shall occur solely as a result of
            the execution and delivery of the 2004 Private Placement Documents
            or the Series B Preferred Share Documents (or any amendments thereto
            in accordance with the terms thereof), or any actions taken by any
            of the 2004 Private Placement Investors

                                       2
<PAGE>

            or any of the Series B Preferred Shareholders pursuant to the terms
            of any of the 2004 Private Placement Documents or the Series B
            Preferred Share Documents, or the consummation of the transactions
            contemplated by the 2004 Private Placement Documents or the Series B
            Preferred Share Documents, or the announcement or commencement
            thereof, including, without limitation, the acquisition by any of
            the 2004 Private Placement Investors or any of the Series B
            Preferred Shareholders now or at any time in the future of any
            Common Shares, 2004 Private Placement Warrants, Series B Preferred
            Share Warrants, Common Shares issued or issuable upon exercise of
            any 2004 Private Placement Warrants or Series B Preferred Share
            Warrants, or any other acquisition of any of such securities, in
            each case pursuant to the 2004 Private Placement Documents or the
            Series B Preferred Share Documents."

            1.3   Section 1 of the Rights Agreement is hereby further amended by
addition to the end thereof the following definitions:

            "(tt) `2004 Private Placement Documents' shall mean (i) the
            Securities Purchase Agreement (the "2004 Purchase Agreement") by
            and among the Company and the 2004 Private Placement Investors,
            (ii) the 2004 Private Placement Warrants issued or to be issued to
            the 2004 Private Placement Investors pursuant to the Securities
            Purchase Agreement, and (iii) any other agreement or instrument
            executed by the Company and the 2004 Private Placement Investors in
            connection with the foregoing, as each of the foregoing may be
            amended from time to time in accordance with the respective terms
            thereof."

            (uu)  `2004 Private Placement Investors' shall mean (i) each Person
            that is or becomes a party to the 2004 Purchase Agreement as a
            purchaser of securities from the Company, and (ii) the placement
            agent in connection therewith."

            (vv)  `2004 Private Placement Warrants' shall mean the warrants to
            purchase Common Shares issued or issuable to the 2004 Private
            Placement Investors pursuant to the 2004 Private Placement
            Documents.

            (ww)  `Series B Preferred Share Documents' shall mean (i) the
            agreements (the "Series B Preferred Share Agreements"), by and among
            the Company and certain Series B Preferred Shareholders, (ii) the
            Series B Preferred Share Warrants issued or to be issued to Series B
            Preferred Shareholders pursuant to the Series B Preferred Share
            Agreements, and (iii) any other agreement or instrument executed by
            the Company and the Series B Preferred Shareholders in connection
            with the foregoing, as each of the foregoing may be amended from
            time to time in accordance with the respective terms thereof."

            (uu)  `Series B Preferred Shareholder' shall mean each holder of
            Series B Preferred Shares that is or becomes a party to the Series B
            Preferred Share Agreements."

                                       3
<PAGE>

            (vv)  `Series B Preferred Share Warrants' shall mean the warrants to
            purchase Common Shares issued or issuable to the Series B Preferred
            Shareholders pursuant to the Series B Preferred Share Documents."

      2.    Amendment to Section 3(a). Section 3(a) of the Rights Agreement is
hereby amended by adding to the end thereof the following:

            "In addition, notwithstanding anything to the contrary contained
            herein, no Distribution Date shall be deemed to have occurred solely
            as a result of the 2004 Private Placement Documents or the Series B
            Preferred Share Documents (or any amendments thereto in accordance
            with the terms thereof), or any actions taken by any of the 2004
            Investors or any of the Series B Preferred Shareholders pursuant to
            the terms of any of the 2004 Private Placement Documents or the
            Series B Preferred Share Documents, or the consummation of the
            transactions contemplated by the 2004 Private Placement Documents or
            the Series B Preferred Share Documents, or the announcement or
            commencement thereof, including, without limitation, the acquisition
            by any of the 2004 Private Placement Investors or any of the Series
            B Preferred Shareholders now or at any time in the future of any
            Common Shares, 2004 Private Placement Warrants, Series B Preferred
            Share Warrants, Common Shares issued or issuable upon exercise of
            any 2004 Private Placement Warrants or Series B Preferred Share
            Warrants, or any other acquisition of any of such securities, in
            each case pursuant to the 2004 Private Placement Documents or the
            Series B Preferred Share Documents."

      3.    Amendment to Section 11. Section 11 of the Rights Agreement is
hereby amended by adding to the end thereof the following:

            "(r)  Notwithstanding anything to the contrary contained herein, the
            provisions of this Section 11 shall not apply to or be triggered by
            the execution and delivery of the of the 2004 Private Placement
            Documents or the Series B Preferred Share Documents (or any
            amendments thereto in accordance with the terms thereof), or any
            actions taken by any of the 2004 Private Placement Investors or any
            of the Series B Preferred Shareholders pursuant to the terms of any
            of the 2004 Private Placement Documents or the Series B Preferred
            Share Documents, or the consummation of the transactions
            contemplated by the 2004 Private Placement Documents or the Series B
            Preferred Share Documents, or the announcement or commencement
            thereof, including, without limitation, the acquisition by any of
            the 2004 Private Placement Investors or any of the Series B
            Preferred Shareholders now or at any time in the future of any
            Common Shares, 2004 Private Placement Warrants, Series B Preferred
            Share Warrants, Common Shares issued or issuable upon exercise of
            any 2004 Private Placement Warrants or Series B Preferred Share
            Warrants, or any other acquisition of any of such securities, in
            each case pursuant to the 2004 Private Placement Documents or the
            Series B Preferred Share Documents."

      4.    Amendment to Section 13. Section 13 of the Rights Agreement is
hereby amended by adding to the end thereof the following:

                                       4
<PAGE>

            "(g)  Notwithstanding anything to the contrary contained herein, the
            provisions of this Section 13 shall not apply to or be triggered by
            the execution or delivery of the of the 2004 Private Placement
            Documents or the Series B Preferred Share Documents (or any
            amendments thereto in accordance with the terms thereof), or any
            actions taken by any of the 2004 Private Placement Investors or any
            of the Series B Preferred Shareholders pursuant to the terms of any
            of the 2004 Private Placement Documents or the Series B Preferred
            Share Documents, or the consummation of the transactions
            contemplated by the 2004 Private Placement Documents or the Series B
            Preferred Share Documents, or the announcement or commencement
            thereof, including, without limitation, the acquisition by any of
            the 2004 Private Placement Investors or any of the Series B
            Preferred Shareholders now or at any time in the future of any
            Common Shares, 2004 Private Placement Warrants, Series B Preferred
            Share Warrants, Common Shares issued or issuable upon exercise of
            any 2004 Private Placement Warrants or Series B Preferred Share
            Warrants, or any other acquisition of any of such securities, in
            each case pursuant to the 2004 Private Placement Documents or the
            Series B Preferred Share Documents."

      5.    Rights Agent Not Liable. The Rights Agent shall not be liable for or
by reason of any of the statements of fact or recitals contained in this
Amendment.

      6.    Effectiveness of Amendment. This Amendment shall be effective as of
the date first above written. All references to the Rights Agreement, including
the terms "Agreement," "hereof," "herein" and the like set forth in the Rights
Agreement shall, as of and after the date first above written, be deemed to be
references to the Rights Agreement, as amended prior to the date hereof, as
modified and amended by the terms of this Amendment. Except as and to the extent
specifically modified and amended by the terms of this Amendment, all terms and
conditions of the Rights Agreement, as previously amended shall remain in full
force and effect from and after the date first above written.

      7.    Governing Law. This Amendment shall in all respects be governed by
and construed in accordance with the laws of the State of Delaware.

      8.    Captions. Captions of the sections and subsections of this Amendment
are used herein solely for convenience of reference and shall not control or
affect the meaning or construction of any of the provisions of this Amendment.

      9.    Counterparts. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute one and the
same instrument.

                                  * * * * * * *

                                       5
<PAGE>

      IN WITNESS WHEREOF, this Amendment No. 1 to Amended and Restated Rights
Agreement has been duly executed and delivered on behalf of the parties hereto
by their respective duly authorized officers, effective as of the date first
above written.

                                           METRETEK TECHNOLOGIES, INC.

                                           By: /s/ A. Bradley Gabbard
                                               -----------------------
                                               A. Bradley Gabbard,
                                               Executive Vice President
ATTEST:

By: /s/ Gary J. Zuiderveen
   -----------------------------
   Gary J. Zuiderveen, Secretary

                                           COMPUTERSHARE INVESTOR SERVICES, LLC

                                           By:_______________________________

                                           Its:______________________________

ATTEST:

By:____________________________

Its:___________________________

                                       6

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