**Value      Added Reseller Agreement**
**AGREEMENT**

**AEC**

**ASTRIS**

| 1.   | ASTRIS                is a world leader in the development and practice of Alkaline Fuel                Cell                (AFC) technology with more than twenty years of progressive experience,                and produces a power generator (the “**ASTRIS** **AFC                Power Generator**”)                and related products, and |
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| 2.   | AEC                has a hydrogen production technology (the “**AEC                Hydrogen Generator**”),                and |
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| 3.   | AEC                intends to act as a Value Added Reseller for ASTRIS AFC Power Generator                products, and |
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| 4.   | AEC                and ASTRIS intend to build complete units that integrate both AEC                and                ASTRIS technologies in a single form factor after ASTRIS can deliver                production of its ASTRIS AFC Power Generators in reasonable                quantities. |
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| 1.   | Cooperation.                AEC and ASTRIS (the “**Parties**”)                intend to cooperate in creating a single integrated unit based on                technologies of both AEC and ASTRIS. Such cooperation shall include,                but                not be limited to: |
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| a.   | During                the term of this agreement, AEC                will: |
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| i.   | Act                as a Value Added Reseller for ASTRIS AFC Power Generators,                and |
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| ii.   | Ensure                that all products that include any part of ASTRIS technology are                appropriately identified with ASTRIS logo and/or ASTRIS trademarks                in                accordance with the prior written approval of ASTRIS,                and |
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| iii.   | Agree                to submit to ASTRIS, in advance of any proposed use, samples of its                use of                the ASTRIS logo and/or ASTRIS trademarks for review in accordance                with                Section 7 below. |
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| iv.   | Attend                necessary training at ASTRIS                facility. |
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| b.   | During                the term of this agreement, ASTRIS                will: |
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| i.   | Provide                current specification sheet(s) and publicity material of relevant                ASTRIS                technology to AEC, and |
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| ii.   | Sell                to AEC at current market prices and current delivery times ASTRIS                AFC                Power Generator(s), and |
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| iii.   | Provide                training to AEC representatives onsite at ASTRIS head office,                and |
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| iv.   | As                required by AEC, provide onsite and/or remote                support. |
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| 2.   | Compensation/Costs.                The Parties agree as follows regarding the compensation and costs                related                to this agreement: |
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| a.   | AEC                will be responsible for: |
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| i.   | Costs                related to purchase of ASTRIS AFC Power Generator units,                and |
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| ii.   | Costs                related to shipping of ASTRIS AFC Power Generator units from the                Mississauga, Ontario head office of ASTRIS,                and |
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| iii.   | Direct                costs of training or support provided by ASTRIS,                and |
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| iv.   | Indirect                costs of training or support incurred by ASTRIS at cost, including                but not                limited to travel, lodging, meals and sundry,                and |
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| v.   | All                costs related to integration of AEC and ASTRIS technologies;                and |
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| vi.   | All                taxes payable on all such amounts. |
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| b.   | Terms                of payment will be consistent with ASTRIS’ current market terms at the                time of order of any products or services, which are subject to change                in                ASTRIS’ sole discretion at any time, and presently                require: |
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| i.   | 40%                deposit at time of order, and |
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| ii.   | Complete                payment at time of delivery. |
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| c.   | Terms                of delivery will be consistent with ASTRIS’ current market terms at the                time of order of any products or services and presently require a                delivery                time of 6 months from time of order accompanied by                deposit. |
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| 3.   | Intellectual                Property.                It                is the intention of the Parties that no intellectual property shall                be                created as a result of this agreement. In the event the Parties engage                in                activities that create any intellectual property, unless otherwise                set out                in writing between the Parties, the Parties agree as                follows: |
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| a.   | all                intellectual property created or established as a result of this                agreement                that relates primarily to the ASTRIS AFC Power Generators shall be                owned                by, and be the exclusive property of, ASTRIS                alone; |
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| b.   | all                intellectual property created or established as a result of this                agreement                that relates primarily to the AEC Hydrogen Generators shall be owned                by,                and be the exclusive property of, AEC alone;                and |
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| c.   | all                other intellectual property created or established as a result of                this                agreement shall be owned by the creator (ASTRIS or AEC) of said                intellectual property; |
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| 4.   | Terms/Conditions.                The Parties agree as follows regarding the term of this agreement                and                conditions associated with this                agreement: |
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| a.   | The                term of this agreement is one year from its effective                date. |
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| b.   | This                agreement shall be extended for an additional one year term unless                otherwise terminated by either Party in accordance with Section                11. |
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| 5.   | Confidentiality                and Restricted Use of Confidential Information- AEC.                For the purposes of this agreement, “**Confidential                Information**”includes,                without limitation, information concerning the customers and accounts                of                the Parties, the purchase and sale prices or lists, methods, techniques,                processes and trade secrets of the Parties, discoveries, concepts                and                ideas including, without limitation, the nature and results of research                and development activities, formulas, inventions, technology, “know-how”,                designs, drawings and specifications, and the marketing and selling                strategies of the Parties, in any medium whatsoever. AEC                shall treat all Confidential Information furnished, or to be furnished,                to                AEC in any medium whatsoever in accordance with the provisions of                this                agreement, and to take, or abstain from taking, the other actions                as set                forth in this paragraph. The Confidential Information shall be used                by AEC                solely for the purpose of performing AEC’s obligations under this                agreement and absolutely for no other purpose whatsoever, and will                be kept                strictly                confidential                by                AEC and its officers, directors, employees, representatives, agents                and                advisors; provided                that                (i) any of such Confidential Information may be disclosed to the                AEC’s                officers, directors, employees, representatives, agents and advisors                who                need to know such Confidential Information for the purpose of performing                AEC’s obligations under this agreement, (ii) such Confidential Information                may be otherwise disclosed to the extent that ASTRIS may expressly                consent                in writing prior to such disclosure, and (iii) such Confidential                Information may be disclosed to the extent required by law. Upon                any                termination of this agreement in accordance with its terms, AEC and                its                officers, directors, employees, representatives, agents and advisors                shall                immediately return to ASTRIS all                material containing or reflecting the Confidential Information disclosed                by ASTRIS in all mediums and immediately cease any use of such                Confidential Information, ASTRIS logo and/or ASTRIS trademarks. The                obligations set out in this paragraph shall survive                indefinitely. |
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| 6.   | Confidentiality                and Restricted Use of Confidential Information- ASTRIS. ASTRIS                shall treat all Confidential Information furnished, or to be furnished,                to                ASTRIS in any medium whatsoever in accordance with the provisions                of this                agreement, and to take, or abstain from taking, the other actions                as set                forth in this paragraph. The Confidential Information shall be used                by                ASTRIS solely for the purpose of performing ASTRIS’s obligations under                this agreement and absolutely for no other purpose whatsoever, and                will be                kept strictly                confidential                by                ASTRIS and its officers, directors, employees, representatives, agents                and                advisors; provided                that                (i) any of such Confidential Information may be disclosed to ASTRIS’s                officers, directors, employees, representatives, agents and advisors                who                need to know such Confidential Information for the purpose of performing                ASTRIS’s obligations under this agreement, (ii) such Confidential                Information may be otherwise disclosed to the extent that AEC may                expressly consent in writing prior to such disclosure, and (iii)                such                Confidential Information may be disclosed to the extent required                by law.                Upon any termination of this agreement in accordance with its terms,                ASTRIS and its officers, directors, employees, representatives, agents                and                advisors shall immediately return to AEC all                material containing or reflecting the Confidential Information disclosed                by AEC in all mediums and immediately cease any use of such Confidential                Information, AEC logo and/or AEC trademarks.. The obligations set                out in                this paragraph shall survive                indefinitely. |
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| 7.   | Trademarks.  |
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|   | a. | Ownership.** **All                trademarks, service marks, trade names, logos or other words or symbols                identifying the products or ASTRIS’s business (the “Marks”) are and will                remain the exclusive property of ASTRIS. AEC will not take any action                that                jeopardizes ASTRIS’s proprietary rights or acquire any right in the Marks,                except the limited use rights specified in paragraph 1a. above.                AEC                will not register, directly or indirectly, any trademark, service                mark,                trade name, copyright, company name or other proprietary or commercial                right which is identical or confusingly similar to the Marks or which                constitute translations thereof. |
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|   | b. | Use.** **AEC                will use the Marks exclusively in accordance with paragraph 1a.                above. All advertisements and promotional materials will (i) clearly                identify ASTRIS as the owner of the Marks, (ii) conform to                ASTRIS's                then-current trademark and logo guidelines and (iii) otherwise                comply                with any local notice or marking requirement contemplated under the                laws                of the territory in which any products are sold. Before publishing                or                disseminating any advertisement or promotional materials bearing                a Mark,                AEC will deliver a sample of the advertisement or promotional materials                to                ASTRIS for prior approval. If ASTRIS notifies AEC that the use of                the Mark                is inappropriate, in ASTRIS’s sole discretion, AEC will not publish or                otherwise disseminate the advertisement or promotional material until                they                have been modified to ASTRIS's satisfaction in                writing. |
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| 8.   | Remedies.                The Parties hereby agree that in the event of a breach of the foregoing                Sections 5 through 7 inclusive, the non-breaching Party shall have                the                right to seek a court order to prevent any further breach, including                the                ability to obtain injunctive relief without the necessity of posting                a                bond. Each Party shall indemnify and hold harmless the other from                and                against any and all loss, liability, cost, attorneys’ fees or expense                based upon, arising out of or otherwise in respect of any breach                or                violation of this agreement. |
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| 9.   | Warranty                and Disclaimer. ASTRIS gives no warranty with respect to the workmanship,                merchantability or fitness for a particular purpose of the ASTRIS                power                generators where same have been incorporated into any product produced                by                AEC. ALL WARRANTIES, CONDITIONS, REPRESENTATIONS, INDEMNITIES AND                GUARANTEES WITH RESPECT TO THE PRODUCTS, WHETHER EXPRESS OR IMPLIED,                ARISING BY LAW, CUSTOM, PRIOR ORAL OR WRITTEN STATEMENTS BY ASTRIS                OR                OTHERWISE (INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF                NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE)                ARE                HEREBY OVERRIDDEN, EXCLUDED AND DISCLAIMED.                Except for payment obligations, a Party will not be liable for any                failure                or delay in performing an obligation that is due to causes beyond                its                reasonable control, so long as the party gives prompt notice to the                other                party and makes all reasonable efforts to perform. IN NO EVENT WILL                A                PARTY BE LIABLE FOR ANY SPECIAL, PUNITIVE, MORAL, INCIDENTAL OR                CONSEQUENTIAL DAMAGES, WHETHER OR NOT FORESEEABLE, INCLUDING, BUT                NOT                LIMITED TO, LOST PROFIT. |
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| 10.   | Public                Announcements.                The parties hereto agree that neither they nor any of their respective                subsidiaries, officers, directors, employees or agents shall disclose                to                any third party or publicly announce the proposed Agreement until                such                time as the parties hereto agree in writing to make such disclosure                or                announcement or unless otherwise required by law or regulation. Any                public                announcement concerning the proposed Agreement shall be approved                in                advance by appropriate officers of the parties                hereto. |
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| 11.   | Termination. This                agreement may be terminated at any time upon delivery of not less                than                30-day written notification of either of the parties hereto. Sections                3,                5, 6, 7, 8 and 9 shall survive any termination of this agreement.                Upon any                termination of this agreement, AEC shall immediately pay ASTRIS all                due                and outstanding amounts, and AEC will, at ASTRIS's option, destroy                or                deliver to ASTRIS or its designee all items within AEC's possession                or                control that contain any Confidential Information or bear a Mark                and shall                cease using all Marks. |
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| 12.   | U.S.                Export Restrictions.** **AEC                acknowledges that the products supplied by ASTRIS hereunder and all                related technical information, documents and materials may be subject                to                export controls under the U.S. Export Administration Regulations.                Where                such products are subject to such controls, AEC will (i) comply                strictly with all legal requirements established under these controls,                and                (ii) cooperate fully with ASTRIS in any official or unofficial                audit                or inspection that relates to these controls, and (iii) not                export or                re-export any such products without the appropriate United States                and                foreign governmental licenses or approval. |
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| 13.   | Status                of Parties.                The Parties acknowledge that they are independent contracting parties,                and                this agreement shall not constitute any such party as an agent,                representative, partner, co-venturer, employee, employer or franchisee                of                the other party, except as expressly provided for herein. Neither                party                shall assume or create any obligation or responsibility whatsoever                on                behalf of, or in the name of, the other party except as otherwise                provided                for herein. |
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| 14.   | Assignment                and Binding Effect.                This agreement shall be binding upon and enure to the benefit of                the                Parties and their respective successors and permitted assigns, if                any, as                the case may be. This agreement may not be assigned by either Party                without the prior written consent of all other                parties. |
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| 15.   | Applicable                Law.                This agreement shall be governed by and interpreted in accordance                with the                laws of the Province of Ontario and the laws of Canada applicable                therein.                The Parties do hereby irrevocably attorn to the jurisdiction of the                courts                of the Province of Ontario. |
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| 16.   | Notice.                Any notice or other communication required or permitted to be given                hereunder shall be in writing and, if mailed by prepaid first-class                mail                at any time other than during a general discontinuance of postal                service                due to strike, lockout or otherwise, shall be sent to the other Party                at                the last known address of the other Party and be deemed to have been                received five (5) business days after the post-marked date thereof,                or if                telecopied, emailed or delivered by another form of recorded                communication, shall be deemed to have been received on the next                business                day following dispatch and acknowledgement of receipt by the recipient’s                telecopier machine or other form of recorded communication, or if                delivered by hand shall be deemed to have been received at the time                it is                delivered. If either Party changes its address during the term of                this                agreement, it shall immediately notify the other Party of such change                of                address in the foregoing manner. |
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| ASTRIS              ENERGI INCORPORATED                                                 |   |   | ALTERNATE              ENERGY CORPORATION                                                    |
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| per:                                                                                    |   |   | per:                                                                                         |
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| Jiri                K. Nor – President and CEO*Astris                Energi Inc.* |   |   | Blaine                Froats – Chairman and CEO*Alternate Energy                Corp.* |

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