Document:

Unassociated Document

    EXHIBIT
      10.3

    CHINA
      SHOE HOLDINGS, INC.

    PLACEMENT
      AGENT AGREEMENT

     

    Dated
      as
      of: March 20, 2008

    

    GLB
      Trading Inc.

    3333
      Michelson Suite 620

    Irvine,
      CA 92612

    

    

    Ladies
      and Gentlemen:

    

    The
      undersigned, China Shoe Holdings, Inc., a Nevada corporation (the “Company”),
      hereby agrees with GLB Trading Inc. (the “Placement
      Agent”)
      as
      follows:

     

    1. 
      Offering.
       The Company hereby engages the Placement Agent to act as its exclusive
      placement agent in connection with the Equity Line Agreement dated the date
      hereof between the Company and Magellan Global Fund, L.P. (the “Investor”)
      (the
“Equity
      Line Agreement”),
      pursuant to which the Company shall issue and sell to the Investor, from time
      to
      time, and the Investor shall purchase from the Company (the “Offering”)
      up to
      Two Million Dollars ($2,000,000) (the “Commitment
      Amount”)
      of the
      Company’s common stock, par value $0.001 per share (the “Common
      Stock”),
      at
      price per share equal to the Purchase Price, as that term is defined in the
      Equity Line Agreement.  The Placement Agent services shall consist of
      reviewing the terms of the Equity Line Agreement and advising the Company with
      respect to those terms.

     

    All
      capitalized terms used herein and not otherwise defined herein shall have the
      same meaning ascribed to them as in the Equity Line Agreement.  The
      Investor will be granted certain registration rights with respect to the Common
      Stock as more fully set forth in the Registration Rights Agreement between
      the
      Company and the Investor dated the date hereof (the “Registration
      Rights Agreement”).
       The documents to be executed and delivered in connection with the
      Offering, including, but not limited, to the Company’s latest Quarterly Report
      on Form 10-Q as filed with the United States Securities and Exchange Commission,
      this Agreement, the Equity Line Agreement, and the Registration Rights Agreement
      are referred to sometimes hereinafter collectively as the “Offering
      Materials.”
       The Company’s Common Stock purchased by the Investor under the Equity Line
      Agreement sometimes referred to hereinafter as the “Securities.”
       The Placement Agent shall not be obligated to sell any
      Securities.

     

    2. 
      Compensation.

     

                A. 
Upon
      the
      execution of this Agreement, the Company shall issue to the Placement Agent
      or
      its designee $10,000 worth of shares of the Company’s Common Stock (the
“Placement
      Agent’s Shares”).
       The Placement Agent shall be entitled to “piggy-back” registration rights
      with respect to the Placement Agent’s Shares, which shall be triggered upon
      registration of any shares of Common Stock by the Company pursuant to the
      Registration Rights Agreement dated the date hereof. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3. 
      Representations,
      Warranties and Covenants of the Placement Agent.

     

                A. 
The
      Placement Agent represents, warrants and covenants as follows:

     

                        (i) 
      The
      Placement Agent has the necessary power to enter into this Agreement and to
      consummate the transactions contemplated hereby.

     

                        (ii) 
      The
      execution and delivery by the Placement Agent of this Agreement and the
      consummation of the transactions contemplated herein will not result in any
      violation of, or be in conflict with, or constitute a default under, any
      agreement or instrument to which the Placement Agent is a party or by which
      the
      Placement Agent or its properties are bound, or any judgment, decree, order
      or,
      to the Placement Agent’s knowledge, any statute, rule or regulation applicable
      to the Placement Agent.  This Agreement when executed and delivered by the
      Placement Agent, will constitute the legal, valid and binding obligations of
      the
      Placement Agent, enforceable in accordance with their respective terms, except
      to the extent that (a) the enforceability hereof or thereof may be limited
      by
      bankruptcy, insolvency, reorganization, moratorium or similar laws from time
      to
      time in effect and affecting the rights of creditors generally, (b) the
      enforceability hereof or thereof is subject to general principles of equity,
      or
      (c) the indemnification provisions hereof or thereof may be held to be in
      violation of public policy.

     

                        (iii) 
      Upon
      receipt and execution of this Agreement, the Placement Agent will promptly
      forward copies of this Agreement to the Company or its counsel and the Investor
      or its counsel.

     

                        (iv) 
      The
      Placement Agent will not intentionally take any action that it reasonably
      believes would cause the Offering to violate the provisions of the Securities
      Act of 1933, as amended (the “1933
      Act”),
      the
      Securities Exchange Act of 1934 (the “1934
      Act”),
      the
      respective rules and regulations promulgated thereunder (the “Rules
      and Regulations”)
      or
      applicable “Blue Sky” laws of any state or jurisdiction.

     

                        (v) 
      The
      Placement Agent is a member of the National Association of Securities Dealers,
      Inc., and is a broker-dealer registered as such under the 1934 Act and under
      the
      securities laws of the states in which the Securities will be offered or sold
      by
      the Placement Agent unless an exemption for such state registration is available
      to the Placement Agent.  The Placement Agent is in material compliance with
      the rules and regulations applicable to the Placement Agent generally and
      applicable to the Placement Agent’s participation in the Offering.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4. 
      Representations
      and Warranties of the Company.

     

                A. 
The
      Company represents and warrants as follows:

     

                        (i) 
      The
      execution, delivery and performance of each of this Agreement, the Equity Line
      Agreement, and the Registration Rights Agreement has been or will be duly and
      validly authorized by the Company and is, or with respect to this Agreement,
      the
      Equity Line Agreement, and the Registration Rights Agreement will be, a valid
      and binding agreement of the Company, enforceable in accordance with its
      respective terms, except to the extent that (a) the enforceability hereof or
      thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
      or
      similar laws from time to time in effect and affecting the rights of creditors
      generally, (b) the enforceability hereof or thereof is subject to general
      principles of equity or (c) the indemnification provisions hereof or
      thereof may be held to be in violation of public policy.  The Securities to
      be issued pursuant to the transactions contemplated by this Agreement and the
      Equity Line Agreement have been duly authorized and, when issued and paid for
      in
      accordance with this Agreement and the Equity Line Agreement will be valid
      and
      binding obligations of the Company, enforceable in accordance with their
      respective terms, except to the extent that (1) the enforceability thereof
      may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
      laws from time to time in effect and affecting the rights of creditors
      generally, and (2) the enforceability thereof is subject to general principles
      of equity.  All corporate action required to be taken for the
      authorization, issuance and sale of the Securities has been duly and validly
      taken by the Company.

     

                        (ii) 
      The
      Company has a duly authorized, issued and outstanding capitalization as set
      forth herein and in the Equity Line Agreement.  The Company is not a party
      to or bound by any instrument, agreement or other arrangement providing for
      it
      to issue any capital stock, rights, warrants, options or other securities,
      except for this Agreement, the agreements described herein and as described
      in
      the Equity Line Agreement and the agreements described therein.  All issued
      and outstanding securities of the Company, have been duly authorized and validly
      issued and are fully paid and non-assessable; the holders thereof have no rights
      of rescission or preemptive rights with respect thereto and are not subject
      to
      personal liability solely by reason of being security holders; and none of
      such
      securities were issued in violation of the preemptive rights of any holders
      of
      any security of the Company.  

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                        (iii) 
      The
      Common Stock to be issued in accordance with this Agreement and the Equity
      Line
      Agreement have been duly authorized and, when issued and paid for in accordance
      with this Agreement, the Equity Line Agreement and the certificates/instruments
      representing such Common Stock will be validly issued, fully-paid and
      non-assessable; the holders thereof will not be subject to personal liability
      solely by reason of being such holders; such Securities are not and will not
      be
      subject to the preemptive rights of any holder of any security of the
      Company.

     

                        (iv) 
      The
      Company has good and marketable title to, or valid and enforceable leasehold
      estates in, all items of real and personal property necessary to conduct its
      business (including, without limitation, any real or personal property stated
      in
      the Offering Materials to be owned or leased by the Company), free and clear
      of
      all liens, encumbrances, claims, security interests and defects of any material
      nature whatsoever, other than those set forth in the Offering Materials and
      liens for taxes not yet due and payable. 

     

                        (v) 
      There
      is
      no litigation or governmental proceeding pending or, to the best of the
      Company’s knowledge, threatened against, or involving the properties or business
      of the Company, except as set forth in the Offering Materials. 

     

                        (vi) 
      The
      Company is duly organized and validly exists as a corporation in good standing
      under the laws of the State of Nevada.  Except as set forth in the Offering
      Materials, the Company does not own or control, directly or indirectly, an
      interest in any other corporation, partnership, trust, joint venture or other
      business entity.  The Company is duly qualified or licensed and in good
      standing as a foreign corporation in each jurisdiction in which the character
      of
      its operations requires such qualification or licensing and where failure to
      so
      qualify would have a material adverse effect on the Company.  The Company
      has all requisite corporate power and authority, and all material and necessary
      authorizations, approvals, orders, licenses, certificates and permits of and
      from all governmental regulatory officials and bodies (domestic and foreign)
      to
      conduct its businesses (and proposed business) as described in the Offering
      Materials. Any disclosures in the Offering Materials concerning the effects
      of
      foreign, federal, state and local regulation on the Company’s businesses as
      currently conducted and as contemplated are correct in all material respects
      and
      do not omit to state a material fact.  The Company has all corporate power
      and authority to enter into this Agreement, the Equity Line Agreement, the
      Registration Rights Agreement, and to carry out the provisions and conditions
      hereof and thereof, and all consents, authorizations, approvals and orders
      required in connection herewith and therewith have been obtained.  No
      consent, authorization or order of, and no filing with, any court, government
      agency or other body is required by the Company for the issuance of the
      Securities or execution and delivery of the Offering Materials except for
      applicable federal and state securities laws.  The Company, since its
      inception, has not incurred any liability arising under or as a result of the
      application of any of the provisions of the 1933 Act, the 1934 Act or the Rules
      and Regulations.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                        (vii) 
      There
      has
      been no material adverse change in the condition or prospects of the Company,
      financial or otherwise, from the latest dates as of which such condition or
      prospects, respectively, are set forth in the Offering Materials, and the
      outstanding debt, the property and the business of the Company conform in all
      material respects to the descriptions thereof contained in the Offering
      Materials.

     

                        (viii) 
      Except
      as
      set forth in the Offering Materials, the Company is not in breach of, or in
      default under, any term or provision of any material indenture, mortgage, deed
      of trust, lease, note, loan or any other material agreement or instrument
      evidencing an obligation for borrowed money, or any other material agreement
      or
      instrument to which it is a party or by which it or any of its properties may
      be
      bound or affected.  The Company is not in violation of any provision of its
      charter or by-laws or in violation of any franchise, license, permit, judgment,
      decree or order, or in violation of any material statute, rule or regulation.
       Neither the execution and delivery of the Offering Materials nor the
      issuance and sale or delivery of the Securities, nor the consummation of any
      of
      the transactions contemplated in the Offering Materials nor the compliance
      by
      the Company with the terms and provisions hereof or thereof, has conflicted
      with
      or will conflict with, or has resulted in or will result in a breach of, any
      of
      the terms and provisions of, or has constituted or will constitute a default
      under, or has resulted in or will result in the creation or imposition of any
      lien, charge or encumbrance upon any property or assets of the Company or
      pursuant to the terms of any indenture, mortgage, deed of trust, note, loan
      or
      any other agreement or instrument evidencing an obligation for borrowed money,
      or any other agreement or instrument to which the Company may be bound or to
      which any of the property or assets of the Company is subject except (a) where
      such default, lien, charge or encumbrance would not have a material adverse
      effect on the Company and (b) as described in the Offering Materials; nor will
      such action result in any violation of the provisions of the charter or the
      by-laws of the Company or, assuming the due performance by the Placement Agent
      of its obligations hereunder, any material statute or any material order, rule
      or regulation applicable to the Company of any court or of any foreign, federal,
      state or other regulatory authority or other government body having jurisdiction
      over the Company.

     

                        (ix) 
      Subsequent
      to the dates as of which information is given in the Offering Materials, and
      except as may otherwise be indicated or contemplated herein or therein the
      Company has not (a) issued any securities or incurred any liability or
      obligation, direct or contingent, for borrowed money, or (b) entered into any
      transaction other than in the ordinary course of business, or (c) declared
      or
      paid any dividend or made any other distribution on or in respect of its capital
      stock.  Except as described in the Offering Materials, the Company has no
      outstanding obligations to any officer or director of the Company other than
      normal payable in connection with services provided recently.

     

                        (x) 
      There
      are
      no claims for services in the nature of a finder’s or origination fee with
      respect to the sale of the Common Stock or any other arrangements, agreements
      or
      understandings that may affect the Placement Agent's compensation, as determined
      by the National Association of Securities Dealers, Inc.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                        (xi) 
      The
      Company owns or possesses, free and clear of all liens or encumbrances and
      rights thereto or therein by third parties, the requisite licenses or other
      rights to use all trademarks, service marks, copyrights, service names, trade
      names, patents, patent applications and licenses necessary to conduct its
      business (including, without limitation, any such licenses or rights described
      in the Offering Materials as being owned or possessed by the Company) and,
      except as set forth in the Offering Materials, there is no claim or action
      by
      any person pertaining to, or proceeding, pending or threatened, which challenges
      the exclusive rights of the Company with respect to any trademarks, service
      marks, copyrights, service names, trade names, patents, patent applications
      and
      licenses used in the conduct of the Company’s businesses (including, without
      limitation, any such licenses or rights described in the Offering Materials
      as
      being owned or possessed by the Company) except any claim or action that would
      not have a material adverse effect on the Company; the Company’s current
      products, services or processes do not infringe or will not infringe on the
      patents currently held by any third party.

     

                        (xii) 
      Subject
      to the performance by the Placement Agent of its obligations hereunder the
      offer
      and sale of the Securities complies, and will continue to comply, in all
      material respects with the requirements of Rule 506 of Regulation D promulgated
      by the SEC pursuant to the 1933 Act and any other applicable federal and state
      laws, rules, regulations and executive orders.  Neither the Offering
      Materials nor any amendment or supplement thereto nor any documents prepared
      by
      the Company in connection with the Offering will 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.  All statements of material facts in
      the Offering Materials are true and correct as of the date of the Offering
      Materials.

     

                        (xiii) 
      All
      material taxes which are due and payable from the Company have been paid in
      full
      or adequate provision has been made for such taxes on the books of the Company,
      except for those taxes disputed in good faith by the Company  

     

                        (xiv) 
      None
      of
      the Company nor any of its officers, directors, employees or agents, nor any
      other person acting on behalf of the Company, has, directly or indirectly,
      given
      or agreed to give any money, gift or similar benefit (other than legal price
      concessions to customers in the ordinary course of business) to any customer,
      supplier, employee or agent of a customer or supplier, or official or employee
      of any governmental agency or instrumentality of any government (domestic or
      foreign) or any political party or candidate for office (domestic or foreign)
      or
      other person who is or may be in a position to help or hinder the business
      of
      the Company (or assist it in connection with any actual or proposed transaction)
      which (A) might subject the Company to any damage or penalty in any civil,
      criminal or governmental litigation or proceeding, or (B) if not given in the
      past, might have had a materially adverse effect on the assets, business or
      operations of the Company as reflected in any of the financial statements
      contained in the Offering Materials, or (C) if not continued in the future,
      might adversely affect the assets, business, operations or prospects of the
      Company in the future.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5. 
      Certain
      Covenants and Agreements of the Company.

     

    The
      Company covenants and agrees at its expense and without any expense to the
      Placement Agent as follows:

     

                A. 
To
      advise
      the Placement Agent of any material adverse change in the Company’s financial
      condition, prospects or business or of any development materially affecting
      the
      Company or rendering untrue or misleading any material statement in the Offering
      Materials occurring at any time as soon as the Company is either informed or
      becomes aware thereof.

     

                B. 
To
      use
      its commercially reasonable efforts to cause the Common Stock issuable in
      connection with the Equity Line Agreement to be qualified or registered for
      sale
      on terms consistent with those stated in the Registration Rights Agreement
      and
      under the securities laws of such jurisdictions as the Placement Agent shall
      reasonably request.  Qualification, registration and exemption charges and
      fees shall be at the sole cost and expense of the Company.

     

                C. 
Upon
      written request, to provide and continue to provide the Placement Agent copies
      of all quarterly financial statements and audited annual financial statements
      prepared by or on behalf of the Company, other reports prepared by or on behalf
      of the Company for public disclosure and all documents delivered to the
      Company’s stockholders.

     

                D. 
To
      comply
      with the terms of the Offering Materials.

     

                E. 
To
      ensure
      that any transactions between or among the Company, or any of its officers,
      directors and affiliates be on terms and conditions that are no less favorable
      to the Company, than the terms and conditions that would be available in an
      “arm’s length” transaction with an independent third party.

     

                F. 
Upon
      the
      effectiveness of a registration statement covering the Securities, the Company
      shall promptly provide the Placement Agent with an opinion of Counsel to the
      Company pursuant to the terms of Section 3(k) of the Registration Rights
      Agreement.

     

                G. 
At
      or
      prior to the Closing, the Company shall have been furnished such documents,
      certificates and opinions as it may reasonably require for the purpose of
      enabling the Placement Agent to review or pass upon the matters referred to
      in
      this Agreement and the Offering Materials, or in order to evidence the accuracy,
      completeness or satisfaction of any of the representations, warranties or
      conditions herein contained.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    6. 
      Indemnification
      and Limitation of Liability.

     

                A. 
The
      Company hereby agrees that it will indemnify and hold the Placement Agent and
      each officer, director, shareholder, employee or representative of the Placement
      Agent and each person controlling, controlled by or under common control with
      the Placement Agent within the meaning of Section 15 of the 1933 Act or Section
      20 of the 1934 Act or the SEC’s Rules and Regulations promulgated thereunder
      (the “Rules
      and Regulations”),
      harmless from and against any and all loss, claim, damage, liability, cost
      or
      expense whatsoever (including, but not limited to, any and all reasonable legal
      fees and other expenses and disbursements incurred in connection with
      investigating, preparing to defend or defending any action, suit or proceeding,
      including any inquiry or investigation, commenced or threatened, or any claim
      whatsoever or in appearing or preparing for appearance as a witness in any
      action, suit or proceeding, including any inquiry, investigation or pretrial
      proceeding such as a deposition) to which the Placement Agent or such
      indemnified person of the Placement Agent may become subject under the 1933
      Act,
      the 1934 Act, the Rules and Regulations, or any other federal or state law
      or
      regulation, common law or otherwise, arising out of or based upon (i) any untrue
      statement or alleged untrue statement of a material fact contained in (a)
      Section 4 of this Agreement, (b) the Offering Materials (except those written
      statements relating to the Placement Agent given by the Placement Agent for
      inclusion therein), (c) any application or other document or written
      communication executed by the Company or based upon written information
      furnished by the Company filed in any jurisdiction in order to qualify the
      Common Stock under the securities laws thereof, or any state securities
      commission or agency; (ii) the omission or alleged omission from documents
      described in clauses (a), (b) or (c) above of a material fact required to be
      stated therein or necessary to make the statements therein not misleading;
      or
      (iii) the breach of any representation, warranty, covenant or agreement made
      by
      the Company in this Agreement.  The Company further agrees that upon demand
      by an indemnified person, at any time or from time to time, it will promptly
      reimburse such indemnified person for any loss, claim, damage, liability, cost
      or expense actually and reasonably paid by the indemnified person as to which
      the Company has indemnified such person pursuant hereto.  Notwithstanding
      the foregoing provisions of this Paragraph 7(A), any such payment or
      reimbursement by the Company of fees, expenses or disbursements incurred by
      an
      indemnified person in any proceeding in which a final judgment by a court of
      competent jurisdiction (after all appeals or the expiration of time to appeal)
      is entered against the Placement Agent or such indemnified person based upon
      specific finding of fact that the Placement Agent or such indemnified person’s
      gross negligence or willful misfeasance will be promptly repaid to the
      Company.

     

                B. 
The
      Placement Agent hereby agrees that it will indemnify and hold the Company and
      each officer, director, shareholder, employee or representative of the Company,
      and each person controlling, controlled by or under common control with the
      Company within the meaning of Section 15 of the 1933 Act or Section 20 of the
      1934 Act or the Rules and Regulations, harmless from and against any and all
      loss, claim, damage, liability, cost or expense whatsoever (including, but
      not
      limited to, any and all reasonable legal fees and other expenses and
      disbursements incurred in connection with investigating, preparing to defend
      or
      defending any action, suit or proceeding, including any inquiry or
      investigation, commenced or threatened, or any claim whatsoever or in appearing
      or preparing for appearance as a witness in any action, suit or proceeding,
      including any inquiry, investigation or pretrial proceeding such as a
      deposition) to which the Company or such indemnified person of the Company
      may
      become subject under the 1933 Act, the 1934 Act, the Rules and Regulations,
      or
      any other federal or state law or regulation, common law or otherwise, arising
      out of or based upon (i) the material breach of any representation, warranty,
      covenant or agreement made by the Placement Agent in this Agreement, or (ii)
      any
      false or misleading information provided to the Company in writing by one of
      the
      Placement Agent’s indemnified persons specifically for inclusion in the Offering
      Materials.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                C. 
Promptly
      after receipt by an indemnified party of notice of commencement of any action
      covered by Section 7(A) or (B), the party to be indemnified shall, within five
      (5) business days, notify the indemnifying party of the commencement thereof;
      the omission by one (1) indemnified party to so notify the indemnifying
      party shall not relieve the indemnifying party of its obligation to indemnify
      any other indemnified party that has given such notice and shall not relieve
      the
      indemnifying party of any liability outside of this indemnification if not
      materially prejudiced thereby.  In the event that any action is brought
      against the indemnified party, the indemnifying party will be entitled to
      participate therein and, to the extent it may desire, to assume and control
      the
      defense thereof with counsel chosen by it which is reasonably acceptable to
      the
      indemnified party.  After notice from the indemnifying party to such
      indemnified party of its election to so assume the defense thereof, the
      indemnifying party will not be liable to such indemnified party under such
      Section 7(A) or (B), for any legal or other expenses subsequently incurred
      by
      such indemnified party in connection with the defense thereof, but the
      indemnified party may, at its own expense, participate in such defense by
      counsel chosen by it, without, however, impairing the indemnifying party’s
      control of the defense.  Subject to the proviso of this sentence and
      notwithstanding any other statement to the contrary contained herein, the
      indemnified party or parties shall have the right to choose its or their own
      counsel and control the defense of any action, all at the expense of the
      indemnifying party if (i) the employment of such counsel shall have been
      authorized in writing by the indemnifying party in connection with the defense
      of such action at the expense of the indemnifying party, or (ii) the
      indemnifying party shall not have employed counsel reasonably satisfactory
      to
      such indemnified party to have charge of the defense of such action within
      a
      reasonable time after notice of commencement of the action, or (iii) such
      indemnified party or parties shall have reasonably concluded that there may
      be
      defenses available to it or them which are different from or additional to
      those
      available to one or all of the indemnifying parties (in which case the
      indemnifying parties shall not have the right to direct the defense of such
      action on behalf of the indemnified party or parties), in any of which events
      such fees and expenses of one additional counsel shall be borne by the
      indemnifying party; provided, however, that the indemnifying party shall not,
      in
      connection with any one action or separate but substantially similar or related
      actions in the same jurisdiction arising out of the same general allegations
      or
      circumstance, be liable for the reasonable fees and expenses of more than one
      separate firm of attorneys at any time for all such indemnified parties.
 No settlement of any action or proceeding against an indemnified party
      shall be made without the consent of the indemnifying party.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                D. 
In
      order
      to provide for just and equitable contribution in circumstances in which the
      indemnification provided for in Section 7(A) or 7(B) is due in accordance with
      its terms but is for any reason held by a court to be unavailable on grounds
      of
      policy or otherwise, the Company and the Placement Agent shall contribute to
      the
      aggregate losses, claims, damages and liabilities (including legal or other
      expenses reasonably incurred in connection with the investigation or defense
      of
      same) which the other may incur in such proportion so that the Placement Agent
      shall be responsible for such percent of the aggregate of such losses, claims,
      damages and liabilities as shall equal the percentage of the gross proceeds
      paid
      to the Placement Agent and the Company shall be responsible for the balance;
      provided, however, that no person guilty of fraudulent misrepresentation within
      the meaning of Section 11(f) of the 1933 Act shall be entitled to contribution
      from any person who was not guilty of such fraudulent misrepresentation.
 For purposes of this Section 7(D), any person controlling, controlled by
      or under common control with the Placement Agent, or any partner, director,
      officer, employee, representative or any agent of any thereof, shall have the
      same rights to contribution as the Placement Agent and each person controlling,
      controlled by or under common control with the Company within the meaning of
      Section 15 of the 1933 Act or Section 20 of the 1934 Act and each officer of
      the
      Company and each director of the Company shall have the same rights to
      contribution as the Company.  Any party entitled to contribution will,
      promptly after receipt of notice of commencement of any action, suit or
      proceeding against such party in respect of which a claim for contribution
      may
      be made against the other party under this Section 7(D), notify such party
      from
      whom contribution may be sought, but the omission to so notify such party shall
      not relieve the party from whom contribution may be sought from any obligation
      they may have hereunder or otherwise if the party from whom contribution may
      be
      sought is not materially prejudiced thereby.  

     

                E. 
The
      indemnity and contribution agreements contained in this Section 7 shall remain
      operative and in full force and effect regardless of any investigation made
      by
      or on behalf of any indemnified person or any termination of this
      Agreement.

     

                F. 
The
      Company hereby waives, to the fullest extent permitted by law, any right to
      or
      claim of any punitive, exemplary, incidental, indirect, special, consequential
      or other damages (including, without limitation, loss of profits) against the
      Placement Agent and each officer, director, shareholder, employee or
      representative of the placement agent and each person controlling, controlled
      by
      or under common control with the Placement Agent within the meaning of Section
      15 of the 1933 Act or Section 20 of the 1934 Act or the Rules and Regulations
      arising out of any cause whatsoever (whether such cause be based in contract,
      negligence, strict liability, other tort or otherwise).  Notwithstanding
      anything to the contrary contained herein, the aggregate liability of the
      Placement Agent and each officer, director, shareholder, employee or
      representative of the Placement Agent and each person controlling, controlled
      by or under common control with the Placement Agent within the meaning of
      Section 15 of the 1933 Act or Section 20 of the 1934 Act or the Rules and
      Regulations shall not exceed the compensation received by the Placement Agent
      pursuant to Section 2 hereof.  This limitation of liability shall apply
      regardless of the cause of action, whether contract, tort (including, without
      limitation, negligence) or breach of statute or any other legal or equitable
      obligation.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7. 
      Payment
      of Expenses.

     

    The
      Company hereby agrees to bear all of the expenses in connection with the
      Offering, including, but not limited to the following: filing fees, printing
      and
      duplicating costs, advertisements, postage and mailing expenses with respect
      to
      the transmission of Offering Materials, registrar and transfer agent fees,
      escrow agent fees and expenses, fees of the Company’s counsel and accountants,
      issue and transfer taxes, if any. 

     

    8. 
      Termination.

     

    This
      Agreement shall be co-terminus with, and terminate upon the same terms and
      conditions as those set forth in the Equity Line Agreement.  

     

    9. 
      Miscellaneous.

     

                A. 
This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, but all which shall be deemed to be one and the same
      instrument.

     

                B. 
Any
      notice required or permitted to be given hereunder shall be given in writing and
      shall be deemed effective when deposited in the United States mail, postage
      prepaid, or when received if personally delivered or faxed (upon confirmation
      of
      receipt received by the sending party), addressed as follows to such other
      address of which written notice is given to the others):

     

    
      	
              If
                to Placement Agent, to:

            	
              GLB
                Trading Inc.

            
	
               

            	
              3333
                Michelson Suite 620

            
	
               

            	
              Irvine,
                CA 92612

            
	
               

            	
              Attention:
                Ben Centeno

            
	
               

            	
              Telephone:
                (949) 955-1966

            
	
               

            	
              Facsimile:
                (949) 955-1909

            
	
               

            	
               

            
	
              If
                to the Company, to:

            	
              China
                Shoe Holdings, Inc. 

            
	
               

            	
              Attention:
                

            
	
               

            	
               

            
	 	
               

            
	
              With
                a copy to:

            	
              Name
                and Address of Attorney

               

              Telephone

              Facsimile:
                  

            
	
               

            	
               

            
	
               

            	
               

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

                C. 
This
      Agreement shall be governed by and construed in all respects under the laws
      of
      the State of California, without reference to its conflict of laws rules or
      principles.  Any suit, action, proceeding or litigation arising out of or
      relating to this Agreement shall be brought and prosecuted in such federal
      or
      state court or courts located within the State of California as provided by
      law.
 The parties hereby irrevocably and unconditionally consent to the
      jurisdiction of each such court or courts located within the State of California
      and to service of process by registered or certified mail, return receipt
      requested, or by any other manner provided by applicable law, and hereby
      irrevocably and unconditionally waive any right to claim that any suit, action,
      proceeding or litigation so commenced has been commenced in an inconvenient
      forum.

     

                D. 
This
      Agreement and the other agreements referenced herein contain the entire
      understanding between the parties hereto and may not be modified or amended
      except by a writing duly signed by the party against whom enforcement of the
      modification or amendment is sought.

     

                E. 
If
      any
      provision of this Agreement shall be held to be invalid or unenforceable, such
      invalidity or unenforceability shall not affect any other provision of this
      Agreement.

     

    [REMAINDER
      OF PAGE INTENTIALLY LEFT BLANK]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

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

     

     

    
      	 	 	 
	 	
              China
                Shoe Holdings, Inc..

            
	 
 	 
 	 
 
	 	By:  	/s/
              Gu
              Xianzhong
	 	
              

              Name:
                Gu Xianzhong

            
	 	
              Title:
                President and Chief Executive
                Officer

            

    

     

    
      	 	 	 
	 	
              GLB
                Trading Inc.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	
              Title:
                PrincipalExhibit
      10.14

    INDEMNIFICATION
      AGREEMENT

    

    This
      Indemnification Agreement, dated as of May 10, 2007, is made by and between
      Alternative Energy Sources, Inc., a Delaware corporation (the “Corporation”)
      and
      Mark A. Beemer (the “Indemnitee”).

     

    RECITALS

     

    A. The
      Corporation recognizes that competent and experienced persons are increasingly
      reluctant to serve or to continue to serve as directors or officers of
      corporations unless they are protected by comprehensive liability insurance
      or
      indemnification, or both, due to increased exposure to litigation costs and
      risks resulting from their service to such corporations, and due to the fact
      that the exposure frequently bears no reasonable relationship to the
      compensation of such directors and officers;

     

    B. The
      statutes and judicial decisions regarding the duties of directors and officers
      are often difficult to apply, ambiguous, or conflicting, and therefore fail
      to
      provide such directors and officers with adequate, reliable knowledge of legal
      risks to which they are exposed or information regarding the proper course
      of
      action to take;

     

    C. The
      Corporation and Indemnitee recognize that plaintiffs often seek damages in
      such
      large amounts and the costs of litigation may be so enormous (whether or not
      the
      case is meritorious), that the defense and/or settlement of such litigation
      is
      often beyond the personal resources of directors and officers;

     

    D. The
      Corporation believes that it is unfair for its directors and officers to assume
      the risk of huge judgments and other expenses which may occur in cases in which
      the director or officer received no personal profit and in cases where the
      director or officer was not culpable;

     

    E. The
      Corporation, after reasonable investigation, has determined that the liability
      insurance coverage presently available to the Corporation may be inadequate
      in
      certain circumstances to cover all possible exposure for which Indemnitee should
      be protected. The Corporation believes that the interests of the Corporation
      and
      its stockholders would best be served by a combination of such insurance and
      the
      indemnification by the Corporation of the directors and officers of the
      Corporation;

     

    F. The
      Corporation’s Bylaws require the Corporation to indemnify its directors and
      officers to the fullest extent permitted by the Delaware General Corporation
      Law
      (the “DGCL”);

     

    G. Section
      145 of the DGCL (“Section 145”),
      under
      which the Corporation is organized, empowers the Corporation to indemnify its
      officers, directors, employees and agents by agreement and to indemnify persons
      who serve, at the request of the Corporation, as the directors, officers,
      employees or agents of other corporations or enterprises, and expressly provides
      that the indemnification provided by Section 145 is not
      exclusive;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    H. The
      Board
      of Directors has determined that contractual indemnification as set forth herein
      is not only reasonable and prudent but also promotes the best interests of
      the
      Corporation and its stockholders;

     

    I. The
      Corporation desires and has requested Indemnitee to serve or continue to serve
      as a director or officer of the Corporation and/or one or more subsidiaries
      or
      affiliates of the Corporation free from undue concern for unwarranted claims
      for
      damages arising out of or related to such services to the Corporation and/or
      one
      or more subsidiaries or affiliates of the Corporation; and

     

    J. Indemnitee
      is willing to serve, continue to serve or to provide additional service for
      or
      on behalf of the Corporation on the condition that he or she is furnished the
      indemnity provided for herein.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements set forth
      below, and other good and valuable consideration, the receipt and adequacy
      of
      which are hereby acknowledged, the parties hereto, intending to be legally
      bound, hereby agree as follows:

     

    Section
      1. Generally.
      To the
      fullest extent permitted by the laws of the State of Delaware:

    

    (a) The
      Corporation shall indemnify Indemnitee if Indemnitee was or is a party or is
      threatened to be made a party to any threatened, pending or completed action,
      suit or proceeding, whether civil, criminal, administrative or investigative,
      by
      reason of the fact that Indemnitee is or was or has agreed to serve at the
      request of the Corporation as a director, officer, employee or agent of the
      Corporation, or while serving as a director or officer of the Corporation,
      is or
      was serving or has agreed to serve at the request of the Corporation as a
      director, officer, employee or agent (which, for purposes hereof, shall include
      a trustee, partner or manager or similar capacity) of another corporation,
      partnership, joint venture, trust, employee benefit plan or other enterprise,
      or
      by reason of any action alleged to have been taken or omitted in such
      capacity.

     

    (b) The
      indemnification provided by this Section 1 shall be from and against expenses
      (including attorneys’ fees), judgments, fines and amounts paid in settlement
      actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
      connection with such action, suit or proceeding and any appeal therefrom, but
      shall only be provided if Indemnitee acted in good faith and in a manner
      Indemnitee reasonably believed to be in or not opposed to the best interests
      of
      the Corporation, and, with respect to any criminal action, suit or proceeding,
      had no reasonable cause to believe Indemnitee’s conduct was
      unlawful.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (c) Notwithstanding
      the foregoing provisions of this Section 1, in the case of any threatened,
      pending or completed action or suit by or in the right of the Corporation to
      procure a judgment in its favor by reason of the fact that Indemnitee is or
      was
      a director, officer, employee or agent of the Corporation, or while serving
      as a
      director or officer of the Corporation, is or was serving or has agreed to
      serve
      at the request of the Corporation as a director, officer, employee or agent
      of
      another corporation, partnership, joint venture, trust, employee benefit plan
      or
      other enterprise, no indemnification shall be made in respect of any claim,
      issue or matter as to which Indemnitee shall have been adjudged to be liable
      to
      the Corporation unless, and only to the extent that, the Delaware Court of
      Chancery or the court in which such action or suit was brought shall determine
      upon application that, despite the adjudication of liability but in view of
      all
      the circumstances of the case, Indemnitee is fairly and reasonably entitled
      to
      indemnity for such expenses which the Delaware Court of Chancery or such other
      court shall deem proper.

     

    (d) The
      termination of any action, suit or proceeding by judgment, order, settlement,
      conviction, or upon a plea of nolo contendere or its equivalent, shall not,
      of
      itself, create a presumption that Indemnitee did not act in good faith and
      in a
      manner which Indemnitee reasonably believed to be in or not opposed to the
      best
      interests of the Corporation, and, with respect to any criminal action or
      proceeding, had reasonable cause to believe that Indemnitee’s conduct was
      unlawful. 

     

    Section
      2. Successful
      Defense; Partial Indemnification.
      To the
      extent that Indemnitee has been successful on the merits or otherwise in defense
      of any action, suit or proceeding referred to in Section 1 hereof or in defense
      of any claim, issue or matter therein, Indemnitee shall be indemnified against
      expenses (including attorneys’ fees) actually and reasonably incurred in
      connection therewith. For purposes of this Agreement and without
      limiting the foregoing, if any action, suit or proceeding is disposed of, on
      the
      merits or otherwise (including a disposition without prejudice), without (i)
      the
      disposition being adverse to Indemnitee, (ii) an adjudication that Indemnitee
      was liable to the Corporation, (iii) a plea of guilty or nolo contendere by
      Indemnitee, (iv) an adjudication that Indemnitee did not act in good faith
      and
      in a manner Indemnitee reasonably believed to be in or not opposed to the best
      interests of the Corporation, and (v) with respect to any criminal proceeding,
      an adjudication that Indemnitee had reasonable cause to believe Indemnitee’s
      conduct was unlawful, Indemnitee shall be considered for the purposes hereof
      to
      have been wholly successful with respect thereto.

     

    If
      Indemnitee is entitled under any provision of this Agreement to indemnification
      by the Corporation for some or a portion of the expenses (including attorneys’
fees), judgments, fines or amounts paid in settlement actually and reasonably
      incurred by Indemnitee or on Indemnitee’s behalf in connection with any action,
      suit, proceeding or investigation, or in defense of any claim, issue or matter
      therein, and any appeal therefrom but not, however, for the total amount
      thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion
      of such expenses (including attorneys’ fees), judgments, fines or amounts paid
      in settlement to which Indemnitee is entitled.

     

    Section
      3. Determination
      That Indemnification Is Proper.
      Any
      indemnification hereunder shall (unless otherwise ordered by a court) be made
      by
      the Corporation unless a determination is made that indemnification of such
      person is not proper in the circumstances because he or she has not met the
      applicable standard of conduct set forth in Section 1(b) hereof. Any such
      determination shall be made (i) by a majority vote of the directors who are
      not
      parties to the action, suit or proceeding in question (“disinterested
      directors”), even if less than a quorum, (ii) by a
      majority vote of a committee of disinterested directors designated by majority
      vote of disinterested directors, even if less than a quorum, (iii) by a majority
      vote of a quorum of the outstanding shares of stock of all classes entitled
      to
      vote on the matter, voting as a single class, which quorum shall consist of
      stockholders who are not at that time parties to the action, suit or proceeding
      in question, (iv) by independent legal counsel, or (v) by a court of competent
      jurisdiction.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Section
      4. Advance
      Payment of Expenses; Notification and Defense of Claim.
      

     

    (a) Expenses
      (including attorneys’ fees) incurred by Indemnitee in defending a threatened or
      pending civil, criminal, administrative or investigative action, suit or
      proceeding, or in connection with an enforcement action pursuant to
      Section 5(b), shall be paid by the Corporation in advance of the final
      disposition of such action, suit or proceeding within thirty (30) days after
      receipt by the Corporation of (i) a statement or statements from Indemnitee
      requesting such advance or advances from time to time, and (ii) an undertaking
      by or on behalf of Indemnitee to repay such amount or amounts, only if, and
      to
      the extent that, it shall ultimately be determined that Indemnitee is not
      entitled to be indemnified by the Corporation as authorized by this Agreement
      or
      otherwise. Such undertaking shall be accepted without reference to the financial
      ability of Indemnitee to make such repayment. Advances shall be unsecured and
      interest-free.

     

    (b) Promptly
      after receipt by Indemnitee of notice of the commencement of any action, suit
      or
      proceeding, Indemnitee shall, if a claim thereof is to be made against the
      Corporation hereunder, notify the Corporation of the commencement thereof.
      The
      failure to promptly notify the Corporation of the commencement of the action,
      suit or proceeding, or Indemnitee’s request for indemnification, will not
      relieve the Corporation from any liability that it may have to Indemnitee
      hereunder, except to the extent the Corporation is prejudiced in its defense
      of
      such action, suit or proceeding as a result of such failure.

     

    (c) In
      the
      event the Corporation shall be obligated to pay the expenses of Indemnitee
      with
      respect to an action, suit or proceeding, as provided in this Agreement, the
      Corporation, if appropriate, shall be entitled to assume the defense of such
      action, suit or proceeding, with counsel reasonably acceptable to Indemnitee,
      upon the delivery to Indemnitee of written notice of its election to do so.
      After delivery of such notice, approval of such counsel by Indemnitee and the
      retention of such counsel by the Corporation, the Corporation will not be liable
      to Indemnitee under this Agreement for any fees of counsel subsequently incurred
      by Indemnitee with respect to the same action, suit or proceeding, provided
      that
      (1) Indemnitee shall have the right to employ Indemnitee’s own counsel in such
      action, suit or proceeding at Indemnitee’s expense and (2) if (i) the employment
      of counsel by Indemnitee has been previously authorized in writing by the
      Corporation, (ii) counsel to the Corporation shall have reasonably concluded
      that there may be a conflict of interest or position, or reasonably believes
      that a conflict is likely to arise, on any significant issue between the
      Corporation and Indemnitee in the conduct of any such defense or (iii) the
      Corporation shall not, in fact, have employed counsel to assume the defense
      of
      such action, suit or proceeding, then the fees and expenses of Indemnitee’s
      counsel shall be at the expense of the Corporation, except as otherwise
      expressly provided by this Agreement. The Corporation shall not be entitled,
      without the consent of Indemnitee, to assume the defense of any claim brought
      by
      or in the right of the Corporation or as to which counsel for the Corporation
      shall have reasonably made the conclusion provided for in clause (ii)
      above.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d) Notwithstanding
      any other provision of this Agreement to the contrary, to the extent that
      Indemnitee is, by reason of Indemnitee’s corporate status with respect to the
      Corporation or any corporation, partnership, joint venture, trust, employee
      benefit plan or other enterprise which Indemnitee is or was serving or has
      agreed to serve at the request of the Corporation, a witness or otherwise
      participates in any action, suit or proceeding at a time when Indemnitee is
      not
      a party in the action, suit or proceeding, the Corporation shall indemnify
      Indemnitee against all expenses (including attorneys’ fees) actually and
      reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
      therewith.

     

    Section
      5. Procedure
      for Indemnification

     

    (a) To
      obtain
      indemnification, Indemnitee shall promptly submit to the Corporation a written
      request, including therein or therewith such documentation and information
      as is
      reasonably available to Indemnitee and is reasonably necessary to determine
      whether and to what extent Indemnitee is entitled to indemnification. The
      Corporation shall, promptly upon receipt of such a request for indemnification,
      advise the Board of Directors in writing that Indemnitee has requested
      indemnification.

     

    (b) The
      Corporation’s determination whether to grant Indemnitee’s indemnification
      request shall be made promptly, and in any event within 60 days following
      receipt of a request for indemnification pursuant to Section 5(a). The right
      to
      indemnification as granted by Section 1 of this Agreement shall be enforceable
      by Indemnitee in any court of competent jurisdiction if the Corporation denies
      such request, in whole or in part, or fails to respond within such 60-day
      period. It shall be a defense to any such action (other than an action brought
      to enforce a claim for the advance of costs, charges and expenses under Section
      4 hereof where the required undertaking, if any, has been received by the
      Corporation) that Indemnitee has not met the standard of conduct set forth
      in
      Section 1 hereof, but the burden of proving such defense by clear and convincing
      evidence shall be on the Corporation. Neither the failure of the Corporation
      (including its Board of Directors or one of its committees, its independent
      legal counsel, and its stockholders) to have made a determination prior to
      the
      commencement of such action that indemnification of Indemnitee is proper in
      the
      circumstances because Indemnitee has met the applicable standard of conduct
      set
      forth in Section 1 hereof, nor the fact that there has been an actual
      determination by the Corporation (including its Board of Directors or one of
      its
      committees, its independent legal counsel, and its stockholders) that Indemnitee
      has not met such applicable standard of conduct, shall be a defense to the
      action or create a presumption that Indemnitee has or has not met the applicable
      standard of conduct. The Indemnitee’s expenses (including attorneys’ fees)
      incurred in connection with successfully establishing Indemnitee’s right to
      indemnification, in whole or in part, in any such proceeding or otherwise shall
      also be indemnified by the Corporation.

     

    (c) The
      Indemnitee shall be presumed to be entitled to indemnification under this
      Agreement upon submission of a request for indemnification pursuant to this
      Section 5, and the Corporation shall have the burden of proof in overcoming
      that
      presumption in reaching a determination contrary to that presumption. Such
      presumption shall be used as a basis for a determination of entitlement to
      indemnification unless the Corporation overcomes such presumption by clear
      and
      convincing evidence.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Section
      6. Insurance
      and Subrogation.

     

    (a) The
      Corporation may purchase and maintain insurance on behalf of Indemnitee who
      is
      or was or has agreed to serve at the request of the Corporation as a director
      or
      officer of the Corporation, or is or was serving at the request of the
      Corporation as a director, officer, employee or agent of another corporation,
      partnership, joint venture, trust, employee benefit plan or other enterprise
      against any liability asserted against, and incurred by, Indemnitee or on
      Indemnitee’s behalf in any such capacity, or arising out of Indemnitee’s status
      as such, whether or not the Corporation would have the power to indemnify
      Indemnitee against such liability under the provisions of this Agreement. If
      the
      Corporation has such insurance in effect at the time the Corporation receives
      from Indemnitee any notice of the commencement of a proceeding, the Corporation
      shall give prompt notice of the commencement of such proceeding to the insurers
      in accordance with the procedures set forth in the policy. The Corporation
      shall
      thereafter take all necessary or desirable action to cause such insurers to
      pay,
      on behalf of the Indemnitee, all amounts payable as a result of such proceeding
      in accordance with the terms of such policy.

     

    (b) In
      the
      event of any payment by the Corporation under this Agreement, the Corporation
      shall be subrogated to the extent of such payment to all of the rights of
      recovery of Indemnitee with respect to any insurance policy, who shall execute
      all papers required and take all action necessary to secure such rights,
      including execution of such documents as are necessary to enable the Corporation
      to bring suit to enforce such rights in accordance with the terms of such
      insurance policy. The Corporation shall pay or reimburse all expenses actually
      and reasonably incurred by Indemnitee in connection with such
      subrogation.

     

    (c) The
      Corporation shall not be liable under this Agreement to make any payment of
      amounts otherwise indemnifiable hereunder (including, but not limited to,
      judgments, fines, ERISA excise taxes or penalties, and amounts paid in
      settlement) if and to the extent that Indemnitee has otherwise actually received
      such payment under this Agreement or any insurance policy, contract, agreement
      or otherwise.

     

    Section
      7. Certain
      Definitions.
      For
      purposes of this Agreement, the following definitions shall apply:

     

    (a) The
      term
“action, suit or proceeding” shall be broadly construed and shall include,
      without limitation, the investigation, preparation, prosecution, defense,
      settlement, arbitration and appeal of, and the giving of testimony in, any
      threatened, pending or completed claim, action, suit or proceeding, whether
      civil, criminal, administrative or investigative.

     

    (b) The
      term
“by reason of the fact that Indemnitee is or was a director, officer, employee
      or agent of the Corporation, or while serving as a director or officer of the
      Corporation, is or was serving or has agreed to serve at the request of the
      Corporation as a director, officer, employee or agent of another corporation,
      partnership, joint venture, trust, employee benefit plan or other enterprise”
shall be broadly construed and shall include, without limitation, any actual
      or
      alleged act or omission to act.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c) The
      term
“expenses” shall be broadly and reasonably construed and shall include, without
      limitation, all direct and indirect costs of any type or nature whatsoever
      (including, without limitation, all attorneys’ fees and related disbursements,
      appeal bonds, other out-of-pocket costs and reasonable compensation for time
      spent by Indemnitee for which Indemnitee is not otherwise compensated by the
      Corporation or any third party, provided that the rate of compensation and
      estimated time involved is approved by the Board, which approval shall not
      be
      unreasonably withheld), actually and reasonably incurred by Indemnitee in
      connection with either the investigation, defense or appeal of a proceeding
      or
      establishing or enforcing a right to indemnification under this Agreement,
      Section 145 of the General Corporation Law of the State of Delaware or
      otherwise.

     

    (d) The
      term
“judgments, fines and amounts paid in settlement” shall be broadly construed and
      shall include, without limitation, all direct and indirect payments of any
      type
      or nature whatsoever including, without limitation, all penalties and amounts
      required to be forfeited or reimbursed to the Corporation, as well as any
      penalties or excise taxes assessed on a person with respect to an employee
      benefit plan).

     

    (e) The
      term
“Corporation” shall include, without limitation and in addition to the resulting
      corporation, any constituent corporation (including any constituent of a
      constituent) absorbed in a consolidation or merger which, if its separate
      existence had continued, would have had power and authority to indemnify its
      directors, officers, and employees or agents, so that any person who is or
      was a
      director, officer, employee or agent of such constituent corporation, or is
      or
      was serving at the request of such constituent corporation as a director,
      officer, employee or agent of another corporation, partnership, joint venture,
      trust, employee benefit plan or other enterprise, shall stand in the same
      position under the provisions of this Agreement with respect to the resulting
      or
      surviving corporation as he or she would have with respect to such constituent
      corporation if its separate existence had continued.

     

    (f) The
      term
“other enterprises” shall include, without limitation, employee benefit
      plans.

     

    (g) The
      term
“serving at the request of the Corporation” shall include, without limitation,
      any service as a director, officer, employee or agent of the Corporation which
      imposes duties on, or involves services by, such director, officer, employee
      or
      agent with respect to an employee benefit plan, its participants or
      beneficiaries.

     

    (h) A
      person
      who acted in good faith and in a manner such person reasonably believed to
      be in
      the interest of the participants and beneficiaries of an employee benefit plan
      shall be deemed to have acted in a manner “not opposed to the best interests of
      the Corporation” as referred to in this Agreement.

     

    Section
      8. Limitation
      on Indemnification.
      Notwithstanding any other provision herein to the contrary, the Corporation
      shall not be obligated pursuant to this Agreement:

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (a) Claims
      Initiated by Indemnitee.
      To
      indemnify or advance expenses to Indemnitee with respect to an action, suit
      or
      proceeding (or part thereof) initiated by Indemnitee, except with respect to
      an
      action, suit or proceeding brought to establish or enforce a right to
      indemnification (which shall be governed by the provisions of Section 8(b)
      of
      this Agreement), unless such action, suit or proceeding (or part thereof) was
      authorized or consented to by the Board of Directors of the
      Corporation.

     

    (b) Action
      for Indemnification.
      To
      indemnify Indemnitee for any expenses incurred by Indemnitee with respect to
      any
      action, suit or proceeding instituted by Indemnitee to enforce or interpret
      this
      Agreement, unless Indemnitee is successful in establishing Indemnitee’s right to
      indemnification in such action, suit or proceeding, in whole or in part, or
      unless and to the extent that the court in such action, suit or proceeding
      shall
      determine that, despite Indemnitee’s failure to establish their right to
      indemnification, Indemnitee is entitled to indemnity for such expenses;
      provided, however, that nothing in this Section 8(b) is intended to limit the
      Corporation’s obligation with respect to the advancement of expenses to
      Indemnitee in connection with any such action, suit or proceeding instituted
      by
      Indemnitee to enforce or interpret this Agreement, as provided in Section 4
      hereof.

     

    (c) Section
      16 Violations.
      To
      indemnify Indemnitee on account of any proceeding with respect to which final
      judgment is rendered against Indemnitee for payment or an accounting of profits
      arising from the purchase or sale by Indemnitee of securities in violation
      of
      Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar
      successor statute.

     

    (d) Noncompete
      and Nondisclosure.
      To
      indemnify Indemnitee in connection with proceedings or claims involving the
      enforcement of noncompete and/or nondisclosure agreements or the noncompete
      and/or nondisclosure provisions of employment, consulting or similar agreements
      the Indemnitee may be a party to with the Corporation, or any subsidiary of
      the
      Corporation or any other applicable foreign or domestic corporation,
      partnership, joint venture, trust or other enterprise, if any.

     

    Section
      9. Certain
      Settlement Provisions.
      The
      Corporation shall have no obligation to indemnify Indemnitee under this
      Agreement for amounts paid in settlement of any action, suit or proceeding
      without the Corporation’s prior written consent, which shall not be unreasonably
      withheld. The Corporation shall not settle any action, suit or proceeding in
      any
      manner that would impose any fine or other obligation on Indemnitee without
      Indemnitee’s prior written consent, which shall not be unreasonably
      withheld.

     

    Section
      10. Savings
      Clause.
      If any
      provision or provisions of this Agreement shall be invalidated on any ground
      by
      any court of competent jurisdiction, then the Corporation shall nevertheless
      indemnify Indemnitee as to costs, charges and expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement with respect to any
      action, suit or proceeding, whether civil, criminal, administrative or
      investigative, including an action by or in the right of the Corporation, to
      the
      full extent permitted by any applicable portion of this Agreement that shall
      not
      have been invalidated and to the full extent permitted by applicable law.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Section
      11. Contribution.
      In
      order to provide for just and equitable contribution in circumstances in which
      the indemnification provided for herein is held by a court of competent
      jurisdiction to be unavailable to Indemnitee in whole or in part, it is agreed
      that, in such event, the Corporation shall, to the fullest extent permitted
      by
      law, contribute to the payment of Indemnitee’s costs, charges and expenses
      (including attorneys’ fees), judgments, fines and amounts paid in settlement
      with respect to any action, suit or proceeding, whether civil, criminal,
      administrative or investigative, in an amount that is just and equitable in
      the
      circumstances, taking into account, among other things, contributions by other
      directors and officers of the Corporation or others pursuant to indemnification
      agreements or otherwise; provided, that, without limiting the generality of
      the
      foregoing, such contribution shall not be required where such holding by the
      court is due to (i) the failure of Indemnitee to meet the standard of conduct
      set forth in Section 1 hereof, or (ii) any limitation on indemnification set
      forth in Section 6(c), 8 or 9 hereof.

     

    Section
      12. Form
      and Delivery of Communications.
      Any
      notice, request or other communication required or permitted to be given to
      the
      parties under this Agreement shall be in writing and either delivered in person
      or sent by telecopy, telex, telegram, overnight mail or courier service, or
      certified or registered mail, return receipt requested, postage prepaid, to
      the
      parties at the following addresses (or at such other addresses for a party
      as
      shall be specified by like notice):

     

    If
      to the
      Corporation:

    

    Alternative
      Energy Sources, Inc.

    1911
      Central

    Kansas
      City, Missouri 64108

    Attn: John
      J.
      Holland

    Facsimile:
      (816) 842-3836

    

    If
      to
      Indemnitee:

    
       

      Mark
        A.
        Beemer

      12720
        Connell Drive

      Overland
        Park, KS 

    

    

    Section
      13. Subsequent
      Legislation.
      If the
      General Corporation Law of Delaware is amended after adoption of this Agreement
      to expand further the indemnification permitted to directors or officers, then
      the Corporation shall indemnify Indemnitee to the fullest extent permitted
      by
      the General Corporation Law of Delaware, as so amended.

     

    Section
      14. Nonexclusivity.
      The
      provisions for indemnification and advancement of expenses set forth in this
      Agreement shall not be deemed exclusive of any other rights which Indemnitee
      may
      have under any provision of law, the Corporation’s Certificate of Incorporation
      or Bylaws, in any court in which a proceeding is brought, the vote of the
      Corporation’s stockholders or disinterested directors, other agreements or
      otherwise, and Indemnitee’s rights hereunder shall continue after Indemnitee has
      ceased acting as an agent of the Corporation and shall inure to the benefit
      of
      the heirs, executors and administrators of Indemnitee. However, no amendment
      or
      alteration of the Corporation’s Certificate of Incorporation or Bylaws or any
      other agreement shall adversely affect the rights provided to Indemnitee under
      this Agreement.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Section
      15. Enforcement.
      The
      Corporation shall be precluded from asserting in any judicial proceeding that
      the procedures and presumptions of this Agreement are not valid, binding and
      enforceable. The Corporation agrees that its execution of this Agreement shall
      constitute a stipulation by which it shall be irrevocably bound in any court
      of
      competent jurisdiction in which a proceeding by Indemnitee for enforcement
      of
      his rights hereunder shall have been commenced, continued or appealed, that
      its
      obligations set forth in this Agreement are unique and special, and that failure
      of the Corporation to comply with the provisions of this Agreement will cause
      irreparable and irremediable injury to Indemnitee, for which a remedy at law
      will be inadequate. As a result, in addition to any other right or remedy
      Indemnitee may have at law or in equity with respect to breach of this
      Agreement, Indemnitee shall be entitled to injunctive or mandatory relief
      directing specific performance by the Corporation of its obligations under
      this
      Agreement.

     

    Section
      16. Interpretation
      of Agreement.
      It is
      understood that the parties hereto intend this Agreement to be interpreted
      and
      enforced so as to provide indemnification to Indemnitee to the fullest extent
      now or hereafter permitted by law.

     

    Section
      17. Entire
      Agreement.
      This
      Agreement and the documents expressly referred to herein constitute the entire
      agreement between the parties hereto with respect to the matters covered hereby,
      and any other prior or contemporaneous oral or written understandings or
      agreements with respect to the matters covered hereby are expressly superceded
      by this Agreement.

     

    Section
      18. Modification
      and Waiver.
      No
      supplement, modification or amendment of this Agreement shall be binding unless
      executed in writing by both of the parties hereto. No waiver of any of the
      provisions of this Agreement shall be deemed or shall constitute a waiver of
      any
      other provision hereof (whether or not similar) nor shall such waiver constitute
      a continuing waiver.

     

    Section
      19. Successor
      and Assigns.
      All of
      the terms and provisions of this Agreement shall be binding upon, shall inure
      to
      the benefit of and shall be enforceable by the parties hereto and their
      respective successors, assigns, heirs, executors, administrators and legal
      representatives. The Corporation shall require and cause any direct or indirect
      successor (whether by purchase, merger, consolidation or otherwise) to all
      or
      substantially all of the business or assets of the Corporation, by written
      agreement in form and substance reasonably satisfactory to Indemnitee, expressly
      to assume and agree to perform this Agreement in the same manner and to the
      same
      extent that the Corporation would be required to perform if no such succession
      had taken place.

     

    Section
      20. Service
      of Process and Venue.
      For
      purposes of any claims or proceedings to enforce this agreement, the Corporation
      consents to the jurisdiction and venue of any federal or state court of
      competent jurisdiction in the states of Delaware and Georgia, and waives and
      agrees not to raise any defense that any such court is an inconvenient forum
      or
      any similar claim.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Section
      21. Supercedes
      Prior Agreement.
      This
      Agreement supercedes any prior indemnification agreement between Indemnitee
      and
      the Corporation or its predecessors.

     

    Section
      22. Governing
      Law.
      This
      Agreement shall be governed exclusively by and construed according to the laws
      of the State of Delaware, as applied to contracts between Delaware residents
      entered into and to be performed entirely within Delaware. If a court of
      competent jurisdiction shall make a final determination that the provisions
      of
      the law of any state other than Delaware govern indemnification by the
      Corporation of its officers and directors, then the indemnification provided
      under this Agreement shall in all instances be enforceable to the fullest extent
      permitted under such law, notwithstanding any provision of this Agreement to
      the
      contrary.

     

    Section
      23. Employment
      Rights.
      Nothing
      in this Agreement is intended to create in Indemnitee any right to employment
      or
      continued employment.

     

    Section
      24. Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed to be an original and all of which together shall be deemed to be one
      and
      the same instrument, notwithstanding that both parties are not signatories
      to
      the original or same counterpart.

     

    Section
      25. Headings.
      The
      section and subsection headings contained in this Agreement are for reference
      purposes only and shall not affect in any way the meaning or interpretation
      of
      this Agreement.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Agreement has been duly executed and delivered to be
      effective as of the date first above written.

    

    
      	
              Alternative
                Energy Sources, Inc.

            
	 
	
              By
                

            	 
	
              Name:
                

            	
              Mark
                Beemer

            
	
              Title:

            	
              Chief
                Executive Officer

            
	 
	
              INDEMNITEE:

            
	 
	
              By
                

            	 
	
              Name:  

            	 

    

    
      
        
        

      

      
        12

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