Document:

EXHIBIT 10.2

                             SUBSCRIPTION AGREEMENT

         THIS  SUBSCRIPTION  AGREEMENT (the "Agreement") is made as of this 19th
day of June,  2006, by and among  Alternative  Energy Sources,  Inc., a Delaware
corporation  (the  "Company"),  Beemer  Energy,  Inc.,  a  Delaware  corporation
("Beemer")  and the investor  identified on the signature page to this Agreement
(the "Investor").

                                    RECITALS:

         WHEREAS,  the Company and Beemer have agreed to enter into an Agreement
and Plan of Merger and  Reorganization,  pursuant  to which  Beemer  Acquisition
Corp., a Delaware corporation and a wholly-owned subsidiary of the Company, will
merge  with and into  Beemer,  with  Beemer  being the  surviving  entity  and a
wholly-owned  subsidiary of the Company (the "Merger"),  upon the effective date
of the Merger (the "Merger Effective Date");

         WHEREAS,  as a condition  to the  consummation  of the  Merger,  and to
provide the capital required by Beemer for working capital purposes, the Company
is offering in compliance with Rule 506 of Regulation D of the Securities Act of
1933, as amended (the  "Securities  Act"), to accredited  investors in a private
placement  transaction (the "Offering"),  a minimum (the "Minimum") of 5,000,000
units (the "Units") and a maximum (the "Maximum") of 10,000,000 Units, each Unit
consisting  of one share of the Company's  common  stock,  par value $0.0001 per
share ("Common  Stock") and a warrant (the "Investor  Warrants") to purchase one
share of Common Stock for five years at the exercise price of $2.00 per share of
Common Stock; par value $0.0001 per share;

         WHEREAS,  in the event the Offering is over  subscribed and the Maximum
amount is sold to  Investors  on the Closing  Date,  the Company  shall have the
right, in its discretion,  to sell an additional 2,000,000 Units at the Purchase
Price (as defined below) in the 30 day period following the Closing Date;

         WHEREAS,  the Investor  desires to subscribe for,  purchase and acquire
from the Company and the Company  desires to sell and issue to the  Investor the
number  of  Units,  set  forth  on the  signature  page of this  Agreement  (the
"Investor's  Units") upon the terms and conditions and subject to the provisions
hereinafter set forth;

         WHEREAS,  in connection with the purchase of the Investor's  Units, the
Company and the Investor will execute a Registration  Rights  Agreement dated as
of the same date as this  Agreement  pursuant to which the Company  will provide
certain   registration   rights  to  the  Investor  (the  "Registration   Rights
Agreement"); and

         WHEREAS, the Company,  Beemer and McGuireWoods LLP (the "Escrow Agent")
have entered into an Escrow  Agreement  (the "Escrow  Agreement") to provide for
the safekeeping of funds received and documents  executed in connection with the
Offering.

         NOW,  THEREFORE,  for  and  in  consideration  of the  mutual  premises
contained herein and for other good and valuable consideration,  the receipt and
sufficiency of which are hereby, the parties hereto agree as follows:

<PAGE>

      1.    Purchase and Sale of the Units.  Subject to the terms and conditions
of this Agreement and the satisfaction of the Closing  Conditions,  the Investor
subscribes  for and agrees to  purchase  and  acquire  from the  Company and the
Company  agrees to sell and issue to the  Investor the  Investor's  Units at the
purchase price of $1.00 per share (the "Purchase Price").

      2.    The Closing.  The Offering will terminate upon the earlier of i) the
receipt of acceptable  subscriptions totaling $10,000,000 or such greater amount
as the Company may determine, or ii) the election of the Company upon receipt of
subscriptions  totaling at least $5,000,000;  provided however, that the initial
closing of the Offering  shall be  concurrent  with the close of the Merger (the
"Closing  Date") at the offices of the Escrow Agent.  On the Closing  Date,  the
Escrow  Agent shall  deliver  the funds and  Transaction  Documents  (as defined
herein)  held in  escrow as of the  Closing  Date  pursuant  to the terms of the
Escrow  Agreement.  As soon as  practicable  after the Closing Date, the Company
shall issue and  deliver,  or shall cause the  issuance and delivery of, a stock
certificate,  registered in the name of the Investor and representing the shares
of  Common  Stock  underlying  the  Investor's  Units  and an  Investor  Warrant
registered  in the name of the Investor  representing  the  Investor's  right to
purchase the number of shares of Common Stock underlying the Investor's Warrant.

      3.    Subscription  Procedure.  To complete a subscription  for Units, the
Investor  must fully  comply with the  subscription  procedure  provided in this
Section on or before 5:00 p.m. eastern time on the Closing Date.

            (a)   Transaction Documents.  Prior to 5:00 p.m. eastern time on the
Closing Date,  the Investor shall review,  complete and execute this  Agreement,
the Investor  Questionnaire  attached hereto as Appendix A and the  Registration
Rights  Agreement,  and deliver such agreements and  questionnaire to the Escrow
Agent at the address provided below.  Executed agreements and questionnaires may
be  delivered  to the  Escrow  Agent by  facsimile  using the  facsimile  number
provided below if the Investor  immediately  thereafter confirms receipt of such
transmission  with the Escrow  Agent and  delivers  the  original  copies of the
agreements  and  questionnaire  to the  Escrow  Agent  as  soon  as  practicable
thereafter.

                  Escrow Agent - Mailing Address and Facsimile Number:

                  McGuireWoods LLP
                  50 North Laura Street, Suite 3300
                  Jacksonville, FL 32202-3661
                  Facsimile Number: (904) 798-3271
                  Attention: Jonathan Sacks
                  Telephone Number: (904) 798-2627

            (b)   Purchase  Price.  Simultaneously  with  the  delivery  of  the
Transaction  Documents to the Escrow Agent as provided herein,  and in any event
on or prior to 5:00 p.m.  eastern time on the Closing Date,  the Investor  shall
deliver to the Escrow Agent the full Purchase Price for the Investor's  Units by
wire  transfer  of  immediately   available  funds  pursuant  to  wire  transfer
instructions provided below:

                                       2
<PAGE>

                  Escrow Agent - Wire Transfer Instructions:

                  BANK OF AMERICA - Jacksonville, FL
                  ABA: 026009593 (Domestic Wires)
                  Swift Code: BOFAUS3N (International Wires)
                  Credit: McGuireWoods LLP IOLTA Account
                  Account Number: 2101206537
                  Reference: Louis Zehil -Alternative Energy Sources, Inc.
                             Escrow - 2048362-0001

                  McGuireWoods Accounting Contact: Julie Aaron (804) 775-1224
                  Bank Contact: Patrick Comia (888) 841-8159, Opt. 2, Ext. 2160

            (c)   Purchaser  Representative.  If the  Investor  has retained the
services of a purchaser  representative  to assist in evaluating  the merits and
risks  associated  with investing in the Units,  the Investor must deliver along
with the Transaction Documents a purchaser representative  certificate in a form
acceptable to the Company.

      4.    Representations  and Warranties of the Company and Beemer.  In order
to induce the  Investor  to enter  into this  Agreement,  the  Company  and,  as
applicable, Beemer represent and warrant to the Investor the following:

            (a)   Authority.  The  Company  and  Beemer  each is an entity  duly
organized, validly existing, and in good standing under the laws of the state in
which it was  incorporated  or otherwise  formed,  and has all requisite  right,
power, and authority to execute, deliver and perform this Agreement.

            (b)   Subsidiaries.   The   Company   has  no  direct  or   indirect
subsidiaries  (each a "Subsidiary" and collectively  the  "Subsidiaries")  other
than those set forth in the Exchange Act Documents (as defined in Section 3(f)),
or as are necessary or desirable to consummate  the Merger and the  transactions
contemplated  in the Merger  Agreement.  Except as disclosed in the Exchange Act
Documents, the Company owns, directly or indirectly, all of the capital stock of
each  Subsidiary  free and clear of any and all  liens,  and all the  issued and
outstanding  shares of capital stock of each  Subsidiary  are validly issued and
are fully paid, non-assessable and free of preemptive and similar rights.

            (c)   Enforceability.  The execution,  delivery,  and performance of
this  Agreement  by the  Company  have been  duly  authorized  by all  requisite
corporate action. This Agreement has been duly executed and delivered by each of
the  Company  and  Beemer,  and,  upon  its  execution  by the  Investor,  shall
constitute the legal,  valid, and binding  obligation of each of the Company and
Beemer,  enforceable in accordance with its terms, except to the extent that its
enforceability is limited by bankruptcy,  insolvency,  reorganization,  or other
laws relating to or affecting the enforcement of creditors' rights generally and
by general principles of equity.

            (d)   No Violations.  The execution,  delivery,  and  performance of
this  Agreement by the Company or by Beemer does not,  and will not,  violate or
conflict with any provision of the Company's or Beemer's respective  Certificate
of Incorporation or Bylaws,  or other charter  documents,  and does not and will
not, with or without the passage of time or the giving of notice,  result in the
breach of, or constitute a default,  cause the  acceleration of performance,  or
require  any consent  under,  or result in the  creation of any lien,  charge or
encumbrance  upon any property or assets of the  Company,  or as  applicable  of
Beemer,  pursuant to, any material instrument or agreement to which the Company,
or Beemer, is a party or by which the Company,  or Beemer, or its properties are
bound.

                                       3
<PAGE>

            (e)   Capitalization.  The  authorized  capital stock of the Company
consists of:  75,000,000 shares of Common Stock, of which 38,437,500 shares were
issued and  outstanding as of May 22, 2006. Upon issuance in accordance with the
terms of this Agreement  against  payment of the Purchase Price  therefore,  the
shares of Common Stock  underlying the Investor's Units will be duly and validly
issued, fully paid, and nonassessable and free and clear of all liens imposed by
or through the Company,  and, assuming the accuracy of the  representations  and
warranties  of the Investor and all other  purchasers  of Units in the Offering,
will be issued in accordance  with a valid  exemption from the  registration  or
qualification  provisions  of the  Securities  Act,  and  any  applicable  state
securities laws (the "State Acts").

            (f)   Exchange Act Filing. During the 12 calendar months immediately
preceding the date of this Agreement,  all reports and statements required to be
filed  by  the  Company  with  the  Securities  and  Exchange   Commission  (the
"Commission")  under  the  Securities  Exchange  Act of 1934,  as  amended  (the
"Exchange  Act"),  and the rules and  regulations  thereunder,  have been timely
filed.  Such  filings,  together with all  documents  incorporated  by reference
therein,  are  referred  to as  "Exchange  Act  Documents."  Each  Exchange  Act
Document, as amended,  conformed in all material respects to the requirements of
the Exchange Act and the rules and regulations  thereunder,  and no Exchange Act
Document,  as amended,  at the time each such  document was filed,  included any
untrue  statement  of a  material  fact or omitted  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.

            (g)   Company   Financial   Statements.    The   audited   financial
statements, together with the related notes of the Company at December 31, 2005,
included in the Company's Annual Report on Form 10-KSB for the fiscal year ended
December  31,  2005  as  filed  with  the  Commission  (the  "Company  Financial
Statements"),  fairly  present in all  material  respects,  on the basis  stated
therein and on the date thereof,  the  financial  position of the Company at the
respective dates therein  specified and its results of operations and cash flows
for the periods then ended. Such statements and related notes have been prepared
in accordance with generally accepted accounting principles in the United States
applied on a consistent basis except as expressly noted therein.

            (h)   No Material Liabilities. Except for liabilities or obligations
not  individually in excess of $100,000.00,  or as set forth in the Exchange Act
Documents,  since  December 31, 2005,  the Company has not incurred any material
liabilities or obligations,  direct or contingent, except in the ordinary course
of business  and except for  liabilities  or  obligations  reflected or reserved
against on the Company's  balance  sheet as of December 31, 2005,  and there has
not been any change,  or to the knowledge of the Company,  development or effect
(individually  or in the  aggregate)  that  is or is  reasonably  likely  to be,
materially  adverse  to  the  condition  (financial  or  otherwise),   business,
prospects,  or  results  of  operations  of the  Company  and  the  Subsidiaries
considered as a whole (a "Material Adverse Effect") or any change in the capital
or material  increase in the long-term debt of the Company,  nor has the Company
declared,  paid, or made any dividend or distribution of any kind on its capital
stock.

                                       4
<PAGE>

            (i)   No Disputes Against Company.  There is no material pending or,
to the knowledge of the Company, threatened (i) action, suit, claim, proceeding,
or investigation  against the Company,  at law or in equity, or before or by any
Federal, state, municipal, or other governmental department,  commission, board,
bureau,  agency  or  instrumentality,  domestic  or  foreign,  (ii)  arbitration
proceeding against the Company,  (iii) governmental  inquiry against the Company
or (iv) any action or suit by or on behalf of the Company  pending or threatened
against others.

            (j)   Approvals.  The execution,  delivery,  and  performance by the
Company of this Agreement and the offer and sale of the Units require no consent
of, action by or in respect of, or filing with, any person,  governmental  body,
agency,  or official  other than those consents that have been obtained prior to
the Closing and those filings required to be made pursuant to the Securities Act
and any State Acts which the Company  undertakes  to file within the  applicable
time period.

            (k)   Compliance.  Neither the  Company  nor  Beemer,  nor any their
respective  Subsidiaries,  (i) is in default  under or in  violation  of (and no
event has occurred  that has not been waived that,  with notice or lapse of time
or both,  would  result in a default by the Company nor Beemer,  or any of their
respective  Subsidiaries under), nor has the Company nor Beemer, or any of their
respective  Subsidiaries  received notice of a claim that it is in default under
or that it is in violation of, any indenture,  loan or credit agreement,  or any
other  agreement or  instrument  to which it is a party or by which it or any of
its  properties  is bound  (whether or not such  default or  violation  has been
waived),  (ii)  is in  violation  of any  order  of any  Court,  arbitrator,  or
governmental  body or (iii) is or has been in violation of any statute,  rule or
regulation of any  governmental  authority,  including  without  limitation  all
foreign,  federal,  state  and  local  laws  relating  to  taxes,  environmental
protection,  occupational  health and  safety,  product  quality  and safety and
employment and labor matters,  except in each case as could not, individually or
in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect.  The Company is in compliance  with the applicable  requirements  of the
Sarbanes-Oxley  Act  of  2002,  as  amended,   and  the  rules  and  regulations
thereunder,  except where such  noncompliance  could not have or  reasonably  be
expected to result in a Material Adverse Effect.

            (l)   Patents and  Trademarks.  The  Company  and Beemer,  or any of
their respective  Subsidiaries have, or have rights to use, all patents,  patent
applications,  trademarks,  trademark applications,  service marks, trade names,
copyrights,  licenses,  and other similar  rights that are necessary or material
for use in  connection  with their  respective  businesses  as  described in the
Exchange Act Documents and which the failure to so have could,  individually  or
in the aggregate, have or reasonably be expected to result in a Material Adverse
Effect (collectively,  the "Intellectual Property Rights").  Neither the Company
nor Beemer,  or any of their  respective  Subsidiaries,  has  received a written
notice that the Intellectual  Property Rights used by the Company or Beemer,  or
any of their respective  Subsidiaries,  violates or infringes upon the rights of
any person. Except as set forth in the Exchange Act Documents,  to the knowledge
of the Company, all such Intellectual  Property Rights are enforceable and there
is no  existing  infringement  by  another  person  of any  of the  Intellectual
Property Rights,  except where such infringement could not have or reasonably be
expected to result in a Material Adverse Effect.

                                       5
<PAGE>

            (m)   Transactions  With  Affiliates  and  Employees.  Except as set
forth in the  Exchange Act  Documents,  none of the officers or directors of the
Company  and, to the  knowledge  of the  Company,  none of the  employees of the
Company  is  presently  a party  to any  transaction  with  the  Company  or any
Subsidiary  (other than for services as  employees,  officers,  and  directors),
including  any  contract,  agreement,  or other  arrangement  providing  for the
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director,  or such employee or, to the  knowledge of the Company,  any entity in
which any officer,  director, or any such employee has a substantial interest or
is an officer, director, trustee, or partner.

            (n)   Internal Accounting Controls. The Company and the Subsidiaries
maintain  a  system  of  internal  accounting  controls  sufficient  to  provide
reasonable  assurance  that (i)  transactions  are executed in  accordance  with
management's general or specific authorizations,  (ii) transactions are recorded
as necessary to permit  preparation of financial  statements in conformity  with
generally accepted accounting  principles and to maintain asset  accountability,
(iii) access to assets is permitted only in accordance with management's general
or specific  authorization,  and (iv) the recorded  accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. The Company has established disclosure
controls  and  procedures  (as  defined  in  Exchange  Act rules  13a-15(e)  and
15d-15(e)) for the Company and designed such disclosure  controls and procedures
to ensure that material information relating to the Company and its Subsidiaries
is made  known to the  Company's  certifying  officers  by others  within  those
entities,  particularly  during the period in which the Company's Form 10-KSB or
10-QSB,  as the  case may be,  are  being  prepared.  The  Company's  certifying
officers  have  evaluated  the  effectiveness  of  the  Company's  controls  and
procedures as of the end of the reporting  period  covered by the Company's Form
10-KSB and each of the Company's  Forms 10-QSB filed with the  Commission  (each
such date,  the  "Evaluation  Date") and  presented  in each such  report  their
conclusions  about the  effectiveness of the Company's  disclosure  controls and
procedures  based on their  evaluations  as of the applicable  Evaluation  Date.
Since the  Evaluation  Date of the Company's  most recently filed Form 10-KSB or
Form 10-QSB,  there have been no significant changes in the Company's disclosure
controls and procedures, the Company's internal control over financial reporting
(as defined in Exchange Act Rules  13a-15(f) or 15d-15(f)  or, to the  Company's
knowledge,  in other  factors  that could  significantly  affect  the  Company's
internal controls over financial reporting.

            (o)   Solvency.  Based on the financial  condition of the Company as
of the Closing Date (and assuming that the Closing shall have occurred), (i) the
Company's  fair  saleable  value of its assets  exceeds  the amount that will be
required to be paid on or in respect of the Company's  existing  debts and other
liabilities  (including known contingent  liabilities) as they mature;  (ii) the
Company's  assets do not constitute  unreasonably  small capital to carry on its
business  for the  current  fiscal year as now  conducted  and as proposed to be
conducted including its capital needs taking into account the particular capital
requirements  of the business  conducted by the Company,  and projected  capital
requirements and capital  availability  thereof; and (iii) the current cash flow
of the Company, together with the proceeds the Company would receive, were it to
liquidate all of its assets,  after taking into account all anticipated  uses of
the cash,  would be  sufficient  to pay all amounts on or in respect of its debt
when such amounts are required to be paid.  The Company does not intend to incur
debts  beyond its ability to pay such debts as they mature  (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).

                                       6
<PAGE>

            (p)   Certain Fees.  Other than (i) the cash  commission  payable on
the  closing  and (ii) the  600,000  shares of Common  Stock to be issued on the
closing,  no brokerage or finder's fees or commissions are or will be payable by
the Company to any broker,  financial advisor or consultant,  finder,  placement
agent, investment banker, bank, or other person with respect to the transactions
contemplated  by this  Agreement.  The Investor  shall have no  obligation  with
respect to any claims (other than such fees or  commissions  owed by an Investor
pursuant  to  written  agreements   executed  by  the  Investor  which  fees  or
commissions  shall be the sole  responsibility  of such  Investor) made by or on
behalf of other persons for fees of a type contemplated in this Section that may
be due in connection with the transactions contemplated by this Agreement.

            (q)   Certain  Registration  Matters.  Assuming  the accuracy of the
Investor's  representations  and  warranties set forth in this Agreement and the
Transaction  Documents and the  representations and warranties made by all other
purchasers of Units in the Offering, no registration under the Securities Act is
required  for the offer and sale of the  Investor's  Units by the Company to the
Investor hereunder.

            (r)   Listing and Maintenance Requirements.  The Company is, and has
no reason to believe that it will not in the foreseeable  future continue to be,
in  compliance  with the  listing and  maintenance  requirements  for  continued
listing of the Common Stock on the NASD Over the Counter Bulletin Board.

            (s)   Investment  Company.  The Company and Beemer are not,  and are
not an  "affiliate"  of, an  "investment  company"  within  the  meaning  of the
Investment Company Act of 1940, as amended.

            (t)   No Additional  Agreements.  The Company and Beemer do not have
any  agreement or  understanding  with any other  purchasers of the Units in the
Offering  with respect to the  transactions  contemplated  by this  Agreement on
terms that differ substantially from those set forth in this Agreement.

            (u)   Disclosure.  The Company and Beemer  confirm that neither they
nor any person acting on their behalf has provided the  Investor,  or its agents
or  counsel,  with any  information  that the Company or Beemer  believes  would
constitute material,  non-public  information  following the announcement of the
Closing and the transactions  contemplated  thereby. The Company understands and
confirms  that the  Investor  will  rely on the  foregoing  representations  and
covenants in effecting transactions in securities of the Company. All disclosure
provided to the  Investor  regarding  the Company and Beemer,  their  respective
businesses and the transactions  contemplated hereby,  furnished by or on behalf
of the Company or, as applicable,  Beemer  (including the Company's and Beemer's
representations and warranties set forth in this Agreement) are true and correct
and do not contain any untrue  statement of a material fact or omit to state any
material fact necessary in order to make the statements  made therein,  in light
of the circumstances under which they were made, not misleading.

                                       7
<PAGE>

      5.    Representations  and Warranties of the Investor.  In order to induce
the Company to enter into this Agreement,  the Investor  represents and warrants
to the Company and Beemer the following:

            (a)   Authority. If a corporation, partnership, limited partnership,
limited  liability  company,  or other  form of  entity,  the  Investor  is duly
organized or formed, as the case may be, validly existing,  and in good standing
under the laws of its jurisdiction of organization or formation, as the case may
be. The  Investor has all  requisite  individual  or entity  right,  power,  and
authority to execute, deliver, and perform this Agreement.

            (b)   Enforceability.  The execution,  delivery,  and performance of
this  Agreement  by the  Investor  have been duly  authorized  by all  requisite
partnership,  corporate  or  other  entity  action,  as the  case  may be.  This
Agreement has been duly  executed and  delivered by the Investor,  and, upon its
execution  by the  Company,  shall  constitute  the legal,  valid,  and  binding
obligation of the Investor,  enforceable in accordance with its terms, except to
the  extent  that its  enforceability  is  limited  by  bankruptcy,  insolvency,
reorganization,   moratorium,  or  other  laws  relating  to  or  affecting  the
enforcement of creditors' rights generally and by general principles of equity.

            (c)   No Violations.  The execution,  delivery,  and  performance of
this  Agreement by the Investor do not and will not, with or without the passage
of time or the  giving of  notice,  result in the  breach  of, or  constitute  a
default, cause the acceleration of performance, or require any consent under, or
result in the creation of any lien,  charge or encumbrance  upon any property or
assets of the  Investor  pursuant to, any  material  instrument  or agreement to
which the Investor is a party or by which the Investor or its  properties may be
bound  or  affected,  and,  do not or will  not  violate  or  conflict  with any
provision of the articles of  incorporation  or bylaws,  partnership  agreement,
operating  agreement,  trust agreement,  or similar  organizational or governing
document of the Investor, as applicable.

            (d)   Knowledge  of  Investment  and its  Risks.  The  Investor  has
knowledge and  experience in financial and business  matters as to be capable of
evaluating  the  merits and risks of  Investor's  investment  in the Units.  The
Investor  understands that an investment in the Company represents a high degree
of risk and there is no assurance that the Company's business or operations will
be successful.  The Investor has considered  carefully the risks attendant to an
investment  in the  Company,  and that,  as a  consequence  of such  risks,  the
Investor could lose Investor's entire investment in the Company.

                                       8
<PAGE>

            (e)   Investment Intent. The Investor hereby represents and warrants
that  (i) the  Investor's  Units  are  being  acquired  for  investment  for the
Investor's own account, and not as a nominee or agent and not with a view to the
resale  or  distribution  of all or any part of the  Investor's  Units,  and the
Investor has no present intention of selling,  granting any participation in, or
otherwise  distributing  any of the  Investor's  Units within the meaning of the
Securities  Act, (ii) the  Investor's  Units are being  acquired in the ordinary
course of the  Investor's  business,  and (iii) the  Investor  does not have any
contracts, understandings,  agreements, or arrangements, directly or indirectly,
with  any  person  and/or  entity  to  distribute,   sell,  transfer,  or  grant
participations  to  such  person  and/or  entity  with  respect  to,  any of the
Investor's  Units.  The Investor is not  purchasing  the  Investor's  Units as a
result of any advertisement,  article,  notice or other communication  regarding
the Investor's  Units  published in any newspaper,  magazine or similar media or
broadcast  over  television  or radio or  presented  at any seminar or any other
general solicitation or general advertisement.

            (f)   Investor Status.  The Investor is an "accredited  investor" as
that  term  is  defined  by Rule  501 of  Regulation  D  promulgated  under  the
Securities  Act and the  information  provided by the  Investor in the  Investor
Questionnaire,  attached  hereto  as  Appendix  A, is  truthful,  accurate,  and
complete.  The Investor is not registered as a broker-dealer under Section 15 of
the Exchange Act or an affiliate of such broker-dealer.

            (g)   Disclosure. The Investor has reviewed the information provided
to the Investor by the Company in  connection  with the  Investor's  decision to
purchase the  Investor's  Units,  including  the  Company's  publicly  available
filings with the Commission and the information  contained therein.  The Company
has  provided  the  Investor  with all the  information  that the  Investor  has
requested in connection with the decision to purchase the Investor's  Units. The
Investor  further  represents  that the Investor has had an  opportunity  to ask
questions  and  receive  answers  from  the  Company   regarding  the  business,
properties,  prospects,  and  financial  condition  of  the  Company.  All  such
questions have been answered to the full  satisfaction of the Investor.  Neither
such  inquiries  nor any other  investigation  conducted  by or on behalf of the
Investor or its  representatives  or counsel shall modify,  amend, or affect the
Investor's  right  to rely  on the  truth,  accuracy,  and  completeness  of the
disclosure materials and the Company's  representations and warranties contained
herein.

            (h)   No Registration. The Investor understands that Investor may be
required to bear the economic risk of  Investor's  investment in the Company for
an indefinite period of time. The Investor further  understands that (i) neither
the offering nor the sale of the Investor's  Units has been registered under the
Securities Act or any applicable State Acts in reliance upon exemptions from the
registration  requirements of such laws, (ii) the Investor's  Units must be held
by the Investor indefinitely unless the sale or transfer thereof is subsequently
registered  under  the  Securities  Act and any  applicable  State  Acts,  or an
exemption from such registration requirements is available,  (iii) except as set
forth in the Registration Rights Agreement, dated as of the date hereof, between
the Company and the Investor, the Company is under no obligation to register any
of the shares of Common Stock  underlying the Investor's Units on the Investor's
behalf  or  to  assist  the  Investor  in  complying  with  any  exemption  from
registration,  and (iv) the  Company  will  rely  upon the  representations  and
warranties made by the Investor in this Agreement and the Transaction  Documents
in order to establish such exemptions from the registration  requirements of the
Securities Act and any applicable State Acts.

                                       9
<PAGE>

            (i)   Transfer  Restrictions.  The Investor will not transfer any of
the  Investor's  Units or the shares of Common Stock  underlying  the Investor's
Units or the Investor Warrants unless such transfer is registered or exempt from
registration  under the Securities Act and such State Acts, and, if requested by
the Company in the case of an exempt transaction,  the Investor has furnished an
opinion of counsel reasonably  satisfactory to the Company that such transfer is
so  exempt.  The  Investor  understands  and  agrees  that (i) the  certificates
evidencing the shares of Common Stock  underlying  the Investor's  Units and the
Investor's  Warrants  will bear  appropriate  legends  indicating  such transfer
restrictions  placed  upon the Units and  shares  of Common  Stock and  Investor
Warrants, (ii) the Company shall have no obligation to honor transfers of any of
the Investor's Units, Investor Warrants or shares of Common Stock underlying the
Investor's   Units  or  Investor   Warrants  in  violation   of  such   transfer
restrictions,  and (iii) the Company  shall be entitled to instruct any transfer
agent or agents  for the  securities  of the  Company  to  refuse to honor  such
transfers.

            (j)   No  Solicitation.  The  Investor (i) did not receive or review
any  advertisement,  article,  notice  or  other  communication  published  in a
newspaper or magazine or similar  media or broadcast  over  television or radio,
whether closed  circuit,  or generally  available,  with respect to the Units or
(ii) was not  solicited  by any  person,  other than by  representatives  of the
Company, with respect to a purchase of the Units.

            (k)   Principal Address. The Investor's  principal residence,  if an
individual,  or principal  executive  office,  if an entity, is set forth on the
signature page of this Subscription Agreement.

      6.    Independent  Nature  of  Investor's   Obligations  and  Rights.  The
obligations of the Investor under this Agreement and the  Transaction  Documents
are several and not joint with the  obligations of any other  purchaser of Units
in the Offering,  and the Investor  shall not be  responsible in any way for the
performance of the  obligations of any other  purchaser of Units in the Offering
under any  Transaction  Document.  The  decision of the Investor to purchase the
Investor's  Units  pursuant to the  Transaction  Documents  has been made by the
Investor independently of any other purchaser of Units in the Offering.  Nothing
contained  herein or in any  Transaction  Document,  and no action  taken by any
purchaser  of  Units  pursuant  thereto,  shall be  deemed  to  constitute  such
purchasers as a partnership,  an association, a joint venture, or any other kind
of entity,  or create a presumption  that the purchasers of Units are in any way
acting  in  concert  or as a  group  with  respect  to such  obligations  or the
transactions   contemplated   by  the   Transaction   Documents.   The  Investor
acknowledges  that no other  purchaser  of  Units  has  acted  as agent  for the
Investor in connection  with making its  investment  hereunder and that no other
purchaser  of Units will be acting as agent of the Investor in  connection  with
monitoring  its  investment  in the  Units or  enforcing  its  rights  under the
Transaction  Documents.  The Investor shall be entitled to independently protect
and enforce its rights,  including without  limitation the rights arising out of
this Agreement or out of the other  Transaction  Documents,  and it shall not be
necessary for any other  purchaser of Units to be joined as an additional  party
in any proceeding for such purpose.

                                       10
<PAGE>

      7.    Prospectus Delivery Requirement.  The Investor hereby covenants with
the Company not to make any sale of the Investor's Units without  complying with
the provisions  hereof and of the  Registration  Rights  Agreement,  and without
effectively causing the prospectus delivery requirement under the Securities Act
to be satisfied  (unless the Investor is selling in a transaction not subject to
the prospectus delivery requirement).

      8.    Shareholder  Approval.  The Company  represents  and warrants to the
Investor that a vote of the  stockholders of the Company will not be required to
approve the issuance of the Investor's Units.

      9.    Indemnification  of Investor.  In addition to the indemnity provided
in the Registration  Rights  Agreement,  the Company will indemnify and hold the
Investor and its directors, officers, shareholders, members, managers, partners,
employees  and agents  (each,  an "Investor  Party")  harmless  from any and all
losses,  liabilities,  obligations,  claims,  contingencies,  damages, costs and
expenses, including all judgments, amounts paid in settlements, court costs, and
reasonable attorneys' fees and costs of investigation  (collectively,  "Losses")
that any such  Investor  Party may suffer or incur as a result of or relating to
any  misrepresentation,  breach, or inaccuracy of any representation,  warranty,
covenant,  or  agreement  made by the Company in any  Transaction  Document.  In
addition to the indemnity  contained  herein,  the Company will  reimburse  each
Investor Party for its reasonable  legal and other expenses  (including the cost
of any investigation,  preparation, and travel in connection therewith) incurred
in connection therewith, as such expenses are incurred.

      10.   Non-Public  Information.  Subsequent  to the  Closing,  the  Company
covenants  and agrees that neither it nor any other person  acting on its behalf
will  provide  Investor or its agents or counsel with any  information  that the
Company  believes  constitutes  material  non-public  information,  unless prior
thereto  Investor  shall  have  executed  a  written  agreement   regarding  the
confidentiality and use of such information.

      11.   Further  Assurances.   The  parties  hereto  will,  upon  reasonable
request,  execute and deliver all such  further  assignments,  endorsements  and
other  documents  as may be  necessary  in order to perfect the  purchase by the
Investor of the Investor's  Units. In addition,  the Company agrees that it will
do all such acts necessary to ensure that Canadian residents holding shares will
be able to trade such  securities  without  resale  restrictions  under Canadian
securities  legislation  within  four  months  from the Merger  Effective  Date,
including, if necessary, all acts in order for the Company to become a reporting
issuer in a Canadian  province  or  territory,  which may include the filing and
receipting of a prospectus by Canadian securities regulatory authorities.

      12.   Entire Agreement; No Oral Modification. This Agreement and the other
Transaction Documents contain the entire agreement among the parties hereto with
respect to the subject  matter  hereof and supersede  all prior  agreements  and
understandings  with respect  thereto and this  Agreement  may not be amended or
modified except in a writing signed by both of the parties hereto.

      13.   Binding Effect;  Benefits. This Agreement shall inure to the benefit
of and be binding upon the parties hereto and their respective heirs, successors
and  assigns;  however,  nothing in this  Agreement,  expressed  or implied,  is
intended to confer on any other person other than the parties  hereto,  or their
respective heirs,  successors or assigns, any rights,  remedies,  obligations or
liabilities under or by reason of this Agreement.

                                       11
<PAGE>

      14.   Counterparts.  This  Agreement  may be  executed  in any  number  of
counterparts,  for 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.  In the event
that any signature is delivered by facsimile transmission,  such signature shall
create a valid and binding obligation of the party executing (or on whose behalf
such  signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof.

      15.   Governing  Law. This  Agreement  shall be governed by, and construed
and enforced in  accordance  with,  the laws of the United States of America and
the State of New York, both substantive and remedial, without regard to New York
conflicts of law principles.  Any judicial  proceeding brought against either of
the parties to this  agreement or any dispute  arising out of this  Agreement or
any  matter  related  hereto  shall be brought in the courts of the State of New
York, New York County,  or in the United States  District Court for the Southern
District of New York and, by its execution and delivery of this agreement,  each
party to this Agreement accepts the jurisdiction of such courts.

      16.   Prevailing  Parties.  In any action or proceeding brought to enforce
any  provision  of this  Agreement,  or where any  provision  hereof is  validly
asserted as a defense, the prevailing party shall be entitled to receive and the
nonprevailing party shall pay upon demand reasonable attorneys' fees in addition
to any other remedy.

      17.   Notices.  All communication  hereunder shall be in writing and shall
be mailed,  delivered,  telegraphed or sent by facsimile or electronic mail, and
such delivery shall be confirmed to the addresses as provided below:

         if to the Investor:

                  to the  address  set  forth  on the  signature  page  of  this
                  Agreement

         if to the Company:

                  Alternative Energy Sources, Inc.
                  88 West 44th Avenue
                  Vancouver, British Columbia, Canada V5Y 3V1
                  Attention: Stephen Jackson, President and Chief Executive
                             Officer
                  Facsimile: (604) 661-0759

         with copy to:

                  Gottbetter & Partners, LLP
                  488 Madison Avenue, 12th Floor
                  New York, New York 10022
                  Attention: Kenneth S. Goodwin, Esq.
                  Facsimile: (212) 400-6901

                                       12
<PAGE>

         if to Beemer, to:

                  Beemer Energy, Inc.
                  c/o McGuireWoods LLP
                  1345 Avenue of the Americas, 7th Floor
                  New York, New York  10105
                  Attention: Mark Beemer, President and Chief Executive Officer
                  Facsimile: (212) 548-2175

         with a copy to:

                  McGuireWoods LLP
                  1345 Avenue of the Americas, 7th Floor
                  New York, New York  10105
                  Attention: Louis W. Zehil
                  Facsimile: (212) 548-2175

      18.   Headings.  The section  headings herein are included for convenience
only and are not to be deemed a part of this Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                       13
<PAGE>

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

                                   ALTERNATIVE ENERGY SOURCES, INC.

                                   By:
                                        -------------------------------------
                                   Name: Stephen Jackson
                                   Its:  President and Chief Executive Officer

                 [SIGNATURE PAGES OF BEEMER AND INVESTOR FOLLOW]

                                       14
<PAGE>

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

                                   BEEMER ENERGY, INC.

                                   By:
                                       -----------------------------------------
                                   Name: Mark Beemer
                                   Its: President and Chief Executive Officer

                      [SIGNATURE PAGE OF INVESTOR FOLLOWS]

                                       15
<PAGE>

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

INVESTOR (individual)                      INVESTOR (entity)

--------------------------------------     ------------------------------------
Signature                                           Name of Entity

--------------------------------------     ------------------------------------
Print Name                                          Signature

Address of Principal Residence:
-------------------------------------      Print Name:
-------------------------------------                 -------------------------
-------------------------------------      Title:
                                                 ------------------------------
Social Security Number:                    Address of Executive Offices:
-------------------------------------
                                           ------------------------------------
Telephone Number:
-------------------------------------      ------------------------------------

Facsimile Number:                          IRS Tax Identification Number:

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

                                           Telephone Number:
                                           ------------------------------------

                                           Facsimile Number:
                                           ------------------------------------

                  X  $1.00                     =        $
-----------------    -----------------                   -----------------
Number of Units      Price per Unit                        Purchase Price

<PAGE>

                                   APPENDIX A

                             Investor Questionnaire

                                 (See Attached)

                                       17
<PAGE>EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

      This Registration Rights Agreement (this "AGREEMENT") is made and entered
into as of this 19th day of June 2006 (the "EFFECTIVE DATE") between Alternative
Energy Sources, Inc., a Delaware corporation (the "COMPANY"), and the parties
set forth on the signature page and Exhibit A hereto (each, a "PURCHASER" and
collectively, the "PURCHASERS").

                                    RECITALS:

      WHEREAS, the Company and Beemer Energy, Inc. ("BEEMER"), have agreed to
enter into an Agreement and Plan of Merger and Reorganization, pursuant to which
a newly organized, wholly-owned subsidiary of the Company will merge with and
into Beemer, with Beemer being the surviving entity and a wholly-owned
subsidiary of the Company (the "MERGER") (the date such Merger becomes effective
hereinafter referred to as the "MERGER EFFECTIVE DATE");

      WHEREAS, as a condition to the consummation of the Merger, and to provide
the capital required by Beemer for working capital purposes, the Company is
offering in compliance with Rule 506 of Regulation D of the Securities Act of
1933, as amended (the "SECURITIES ACT"), to accredited investors in a private
placement transaction (the "OFFERING"), a minimum of 5,000,000 units (the
"UNITS") and a maximum of 10,000,000 Units of the Company's securities, or such
greater amount as the Company may determine, each Unit consisting of one share
of the Company's common stock, par value $0.0001 per share ("COMMON STOCK") and
a warrant (the "Investor Warrants") to purchase one share of Common Stock for
five years at the exercise price of $2.00 per whole share of Common Stock, at
the purchase price of $1.00 per Unit;

      WHEREAS, The Offering will terminate upon the earlier of i) the receipt of
acceptable subscriptions totaling $10,000,000 or such greater amount as the
Company may determine, or ii) the election of the Company upon receipt of
subscriptions totaling at least $5,000,000; provided however, that the initial
closing of the Offering shall be concurrent with the close of the Merger (the
"CLOSING DATE"); and

      WHEREAS, the Purchasers, in connection with their intent to purchase Units
in the Offering, shall execute and deliver Subscription Agreements (the
"SUBSCRIPTION AGREEMENTS") and Investor Questionnaires (the "INVESTOR
QUESTIONNAIRES") memorializing the Purchasers' agreement to purchase and the
Company's agreement to sell the number of Units set forth therein at the
purchase price of $1.00 per Unit (the "PURCHASE PRICE") and this Agreement,
pursuant to which the Company will provide certain registration rights related
to the shares of Common Stock underlying the Units and the Investor Warrants on
the terms set forth herein (the Subscription Agreements, Investor Questionnaires
and the Registration Rights Agreements are collectively referred to as the
"TRANSACTION DOCUMENTS").

      NOW, THEREFORE, in consideration of the mutual promises, representations,
warranties, covenants, and conditions set forth herein, the parties mutually
agree as follows:

<PAGE>

1.    Certain Definitions. As used in this Agreement, the following terms shall
have the following respective meanings:

      "Approved Market" means the NASD Over-The-Counter Bulletin Board, the
Nasdaq National Market, the Nasdaq Capital Market, the New York Stock Exchange,
Inc. or the American Stock Exchange, Inc.

      "Blackout Period" means, with respect to a registration, a period, in each
case commencing on the day immediately after the Company notifies the Purchasers
that they are required, because of the occurrence of an event of the kind
described in Section 4(f) hereof, to suspend offers and sales of Registrable
Securities during which the Company, in the good faith judgment of its board of
directors, determines (because of the existence of, or in anticipation of, any
acquisition, financing activity, or other transaction involving the Company, or
the unavailability for reasons beyond the Company's control of any required
financial statements, disclosure of information which is in its best interest
not to publicly disclose, or any other event or condition of similar
significance to the Company) that the registration and distribution of the
Registrable Securities to be covered by such registration statement, if any,
would be seriously detrimental to the Company and its stockholders and ending on
the earlier of (1) the date upon which the material non-public information
commencing the Blackout Period is disclosed to the public or ceases to be
material and (2) such time as the Company notifies the selling Holders that the
Company will no longer delay such filing of the Registration Statement,
recommence taking steps to make such Registration Statement effective, or allow
sales pursuant to such Registration Statement to resume; provided, however, that
(a) the Company shall limit its use of Blackout Periods, in the aggregate, to 30
Trading Days in any 12-month period and (b) no Blackout Period may commence
sooner than 60 days after the end of a prior Blackout Period.

      "Business Day" means any day of the year, other than a Saturday, Sunday,
or other day on which the Commission is required or authorized to close.

      "Closing Date" means the date set forth in the Recitals of this Agreement.

      "Commission" means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

      "Common Stock" means the common stock, par value $0.0001 per share, of the
Company and any and all shares of capital stock or other equity securities of:
(i) the Company which are added to or exchanged or substituted for the Common
Stock by reason of the declaration of any stock dividend or stock split, the
issuance of any distribution or the reclassification, readjustment,
recapitalization or other such modification of the capital structure of the
Company; and (ii) any other corporation, now or hereafter organized under the
laws of any state or other governmental authority, with which the Company is
merged, which results from any consolidation or reorganization to which the
Company is a party, or to which is sold all or substantially all of the shares
or assets of the Company, if immediately after such merger, consolidation,
reorganization or sale, the Company or the stockholders of the Company own
equity securities having in the aggregate more than 50% of the total voting
power of such other corporation.

                                       2
<PAGE>

      "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission promulgated thereunder.

      "Family Member" means (a) with respect to any individual, such
individual's spouse, any descendants (whether natural or adopted), any trust all
of the beneficial interests of which are owned by any of such individuals or by
any of such individuals together with any organization described in Section
501(c)(3) of the Internal Revenue Code of 1986, as amended, the estate of any
such individual, and any corporation, association, partnership or limited
liability company all of the equity interests of which are owned by those above
described individuals, trusts or organizations and (b) with respect to any
trust, the owners of the beneficial interests of such trust.

      "Holder" means each Purchaser or any of such Purchaser's respective
successors and Permitted Assigns who acquire rights in accordance with this
Agreement with respect to the Registrable Securities directly or indirectly from
a Purchaser or from any Permitted Assignee.

      "Investor Warrants" mean the warrants issued in relation to the Purchasers
purchase of Units in the private placement offering.

      "Majority Holders" means at any time Holders representing a majority of
the Registrable Securities.

      "Permitted Assignee" means (a) with respect to a partnership, its partners
or former partners in accordance with their partnership interests, (b) with
respect to a corporation, its stockholders in accordance with their interest in
the corporation, (c) with respect to a limited liability company, its members or
former members in accordance with their interest in the limited liability
company, (d) with respect to an individual party, any Family Member of such
party, (e) an entity that is controlled by, controls, or is under common control
with a transferor or (f) a party to this Agreement.

      "Piggyback Registration" means, in any registration of Common Stock as set
forth in Section 3(b), the ability of holders of Common Stock to include
Registrable Securities in such registration.

      "Purchase Price" means the Purchase Price per Unit set forth in the
Subscription Agreement.

      The terms "register, " "registered, " and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

      "Registrable Securities" means the shares of Common Stock issued or
issuable to each Purchaser in connection with such Purchaser's purchase of Units
pursuant to the Subscription Agreements, including the shares of Common Stock
issuable on exercise of the Investor Warrants issued to the Purchasers in
connection with their purchase of Units but excluding (i) any Registrable
Securities that have been publicly sold or may be sold immediately without
registration under the Securities Act either pursuant to Rule 144 of the
Securities Act or otherwise; (ii) any Registrable Securities sold by a person in
a transaction pursuant to a registration statement filed under the Securities
Act or (iii) any Registrable Securities that are at the time subject to an
effective registration statement under the Securities Act.

                                       3
<PAGE>

      "Registration Default Date" means the date that is 120 days following the
Registration Filing Date.

      "Registration Default Period" means the period following the Registration
Default Date during which any Registration Event occurs and is continuing.

       "Registration Event" means the occurrence of any of the following events:

            (a)      the Company fails to file with the Commission the
Registration Statement on or before the Registration Filing Date (as defined in
Section 3(a));

            (b)      the Registration Statement is not declared effective by the
Commission on or before the Registration Default Date;

            (c)      after the SEC Effective Date, sales cannot be made pursuant
to the Registration Statement for any reason (including without limitation by
reason of a stop order, or the Company's failure to update the Registration
Statement) except as excused pursuant to Section 3(a); or

            (d)      the Common Stock generally or the Registrable Securities
specifically are not listed or included for quotation on an Approved Market, or
trading of the Common Stock is suspended or halted on the Approved Market, which
at the time constitutes the principal market for the Common Stock, for more than
two full, consecutive Trading Days; provided, however, a Registration Event
shall not be deemed to occur if all or substantially all trading in equity
securities (including the Common Stock) is suspended or halted on the Approved
Market for any length of time.

      "Registration Filing Date" means the date that is 120 days after the
closing of the Merger.

      "Registration Statement" means the registration statement that the Company
is required to file pursuant to this Agreement to register the Registrable
Securities.

      "Rule 144" means Rule 144 promulgated by the Commission under the
Securities Act.

      "Securities Act" means the Securities Act of 1933, as amended, or any
similar federal statute promulgated in replacement thereof, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

      "SEC Effective Date" means the date the Registration Statement is declared
effective by the Commission.

      "Subscription Agreement" means the Subscription Agreement dated as of the
date hereof between the Company and the Purchaser setting forth the terms and
conditions of the Company's offer of Units and the Purchaser's purchase of
Units.

                                       4
<PAGE>

      "Trading Day" means any day on which the national securities exchange, the
Nasdaq Stock Market, the NASD Over the Counter Bulletin Board or such other
securities market or quotation system, which at the time constitutes the
principal securities market for the Common Stock, is open for general trading of
securities.

      "Units" mean the units offered by the Company and purchased by the
Purchaser pursuant to the Subscription Agreement which consist of one share of
Common Stock and an Investor Warrant representing the right of the Purchaser to
purchase one share of Common Stock at the exercise price of $2.00 per share.

      2.    Term. This Agreement shall continue in full force and effect for a
period of two years from the Effective Date, unless terminated sooner hereunder.

      3.    Registration.

            (a)      Registration on Form SB-2. Not later than the Registration
Filing Date, the Company shall file with the Commission a registration statement
on Form SB-2, or other applicable form, relating to the resale by the Holders of
all of the Registrable Securities, and the Company shall use its commercially
reasonable best efforts to cause such registration statement to be declared
effective prior to the Registration Default Date; provided, however, that the
Company shall not be obligated to effect any such registration, qualification,
or compliance pursuant to this Section, or keep such registration effective
pursuant to the terms hereunder: (i) in any particular jurisdiction in which the
Company would be required to qualify to do business as a foreign corporation or
as a dealer in securities under the securities or blue sky laws of such
jurisdiction or to execute a general consent to service of process in effecting
such registration, qualification or compliance, in each case where it has not
already done so or (ii) during any Blackout Period, in which case the
Registration Filing Date shall be extended to the date immediately following the
last day of such Blackout Period.

            (b)      Piggyback Registration. If the Company shall determine to
register for sale for cash any of its Common Stock, for its own account or for
the account of others (other than the Holders), other than (i) a registration
relating solely to employee benefit plans or securities issued or issuable to
employees, consultants (to the extent the securities owned or to be owned by
such consultants could be registered on Form S-8) or any of their Family Members
(including a registration on Form S-8) or (ii) a registration relating solely to
a Commission Rule 145 transaction, a registration on Form S-4 in connection with
a merger, acquisition, divestiture, reorganization, or similar event, the
Company shall promptly give to the Holders written notice thereof (and in no
event shall such notice be given less than 20 calendar days prior to the filing
of such registration statement), and shall, subject to Section 3(c), include as
a Piggyback Registration all of the Registrable Securities specified in a
written request delivered by the Holder within 10 calendar days after receipt of
such written notice from the Company. However, the Company may, without the
consent of the Holders, withdraw such registration statement prior to its
becoming effective if the Company or such other stockholders have elected to
abandon the proposal to register the securities proposed to be registered
thereby.

                                       5
<PAGE>

            (c)      Underwriting. If a Piggyback Registration is for a
registered public offering involving an underwriting, the Company shall so
advise the Holders. In such event, the right of any Holder to Piggyback
Registration shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities in the
underwriting to the extent provided herein. All Holders proposing to include the
Registrable Securities they hold through such underwriting shall (together with
the Company and any other stockholders of the Company selling their securities
through such underwriting) enter into an underwriting agreement in customary
form with the underwriter selected for such underwriting by the Company or the
selling stockholders, as applicable. Notwithstanding any other provision of this
Section, if the underwriter or the Company determines that marketing factors
require a limitation of the number of shares of Common Stock or the amount of
other securities to be underwritten, the underwriter may exclude some or all
Registrable Securities from such registration and underwriting. The Company
shall so advise all Holders (except those Holders who failed to timely elect to
include their Registrable Securities through such underwriting or have indicated
to the Company their decision not to do so), and indicate to each such Holder
the number of shares of Registrable Securities that may be included in the
registration and underwriting, if any. The number of shares of Registrable
Securities to be included in such registration and underwriting shall be
allocated among such Holders as follows:

                  (i)      In the event of a Piggyback Registration that is
      initiated by the Company, the number of shares that may be included in the
      registration and underwriting shall be allocated first to the Company and
      then, subject to obligations and commitments existing as of the date
      hereof, to all selling stockholders, including the Holders, who have
      requested to sell in the registration on a pro rata basis according to the
      number of shares requested to be included; and

                  (ii)     In the event of a Piggyback Registration that is
      initiated by the exercise of demand registration rights by a stockholder
      or stockholders of the Company (other than the Holders), then the number
      of shares that may be included in the registration and underwriting shall
      be allocated first to such selling stockholders who exercised such demand
      and then, subject to obligations and commitments existing as of the date
      hereof, to all other selling stockholders, including the Holders, who have
      requested to sell in the registration, on a pro rata basis according to
      the number of shares requested to be included.

      No Registrable Securities excluded from the underwriting by reason of the
underwriter's marketing limitation shall be included in such registration. If
any Holder disapproves of the terms of any such underwriting, such Holder may
elect to withdraw their Registrable Securities therefrom by delivery of written
notice to the Company and the underwriter. The Registrable Securities so
withdrawn from such underwriting shall also be withdrawn from such registration;
provided, however, that, if by the withdrawal of such Registrable Securities a
greater number of Registrable Securities held by other Holders may be included
in such registration (up to the maximum of any limitation imposed by the
underwriters), then the Company shall offer to all Holders who have included
Registrable Securities in the registration the right to include additional
Registrable Securities pursuant to the terms and limitations set forth herein in
the same proportion used above in determining the underwriter limitation.

                                       6
<PAGE>

            (d)      Other Registrations. Prior to the SEC Effective Date, the
Company will not, without the prior written consent of the Majority Holders,
file or request the acceleration of any other registration statement filed with
the Commission, and during any time subsequent to the SEC Effective Date when
the Registration Statement for any reason is not available for use by any Holder
for the resale of any Registrable Securities, the Company shall not, without the
prior written consent of the Majority Holders, file any other registration
statement or any amendment thereto with the Commission under the Securities Act
or request the acceleration of the effectiveness of any other registration
statement previously filed with the Commission, other than (i) any registration
statement on Form S-8 or Form S-4 and (ii) any registration statement or
amendment which the Company is required to file or as to which the Company is
required to request acceleration pursuant to any obligation in effect on the
date of execution and delivery of this Agreement.

            (e)      Occurrence of Registration Event. If a Registration Event
occurs, then the Company will make payments to each Purchaser (a "QUALIFIED
PURCHASER"), as partial liquidated damages for the minimum amount of damages to
the Qualified Purchaser by reason thereof, and not as a penalty, at a rate equal
to 1% of the Purchase Price per share of Registrable Securities then held by a
Qualified Purchaser monthly, for each calendar month of the Registration Default
Period (pro rated for any period less than 30 days); provided, however, if a
Registration Event occurs (or is continuing) on a date more than one-year after
the Qualified Purchaser acquired the Registrable Securities (and thus the
one-year holding period under Rule 144(d) has elapsed), liquidated damages shall
be paid only with respect to that portion of the Qualified Purchaser's
Registrable Securities that cannot then be immediately resold in reliance on
Rule 144. Each such payment shall be due and payable within five days after the
end of each calendar month of the Registration Default Period until the
termination of the Registration Default Period and within five days after such
termination. Such payments shall constitute the Qualified Purchaser's exclusive
remedy for such events. The Registration Default Period shall terminate upon (i)
the filing of the Registration Statement in the case of clause (a) of the
definition of Registration Event, (ii) the SEC Effective Date in the case of
clause (b) of the definition of Registration Event, (iii) the ability of the
Qualified Purchaser to effect sales pursuant to the Registration Statement in
the case of clause (c) of the definition of Registration Event, (iv) the listing
or inclusion and/or trading of the Common Stock on an Approved Market, as the
case may be, in the case of clause (d) of the definition of Registration Event,
and (v) in the case of the events described in clauses (b) and (c) of the
definition of Registration Event, the earlier termination of the Registration
Default Period. The amounts payable as partial liquidated damages pursuant to
this paragraph shall be payable in lawful money of the United States. Amounts
payable as liquidated damages to each Qualified Purchaser hereunder with respect
to each share of Registrable Securities shall cease when the Qualified Purchaser
no longer holds such shares of Registrable Securities or such shares of
Registrable Securities can be immediately sold by the Qualified Purchaser in
reliance on Rule 144(k).

      4.    Registration Procedures. The Company will keep each Holder
reasonably advised as to the filing and effectiveness of the Registration
Statement. At its expense with respect to the Registration Statement, the
Company will:

            (a)      prepare and file with the Commission with respect to the
Registrable Securities, a registration statement on Form SB-2, or any other form
for which the Company then qualifies or which counsel for the Company shall deem
appropriate and which form shall be available for the sale of the Registrable
Securities in accordance with the intended methods of distribution thereof, and
use its commercially reasonable efforts to cause such registration statement to
become and remain effective at for a period of two years or for such shorter
period ending on the earlier to occur of (i) the sale of all Registrable
Securities and (ii) the availability under Rule 144(k) for the Holder to sell
the Registrable Securities (in either case, the "EFFECTIVENESS PERIOD");

                                       7
<PAGE>

            (b)      if a registration statement is subject to review by the
Commission, promptly respond to all comments and diligently pursue resolution of
any comments to the satisfaction of the Commission;

            (c)      prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective
during the Effectiveness Period;

            (d)      furnish, without charge, to each Holder of Registrable
Securities covered by such registration statement (i) a reasonable number of
copies of such registration statement (including any exhibits thereto other than
exhibits incorporated by reference), each amendment and supplement thereto as
such Holder may reasonably request, (ii) such number of copies of the prospectus
included in such registration statement (including each preliminary prospectus
and any other prospectus filed under Rule 424 under the Securities Act) as such
Holders may reasonably request, in conformity with the requirements of the
Securities Act, and (iii) such other documents as such Holder may require to
consummate the disposition of the Registrable Securities owned by such Holder,
but only during the Effectiveness Period;

            (e)      use its commercially reasonable best efforts to register or
qualify such registration under such other applicable securities or blue sky
laws of such jurisdictions as any Holder of Registrable Securities covered by
such registration statement reasonably requests and as may be necessary for the
marketability of the Registrable Securities (such request to be made by the time
the applicable registration statement is deemed effective by the Commission) and
do any and all other acts and things necessary to enable such Holder to
consummate the disposition in such jurisdictions of the Registrable Securities
owned by such Holder; provided, however, that the Company shall not be required
to (i) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph, (ii) subject itself to
taxation in any such jurisdiction, or (iii) consent to general service of
process in any such jurisdiction;

            (f)      as promptly as practicable after becoming aware of such
event, notify each Holder of Registrable Securities, the disposition of which
requires delivery of a prospectus relating thereto under the Securities Act, of
the happening of any event, which comes to the Company's attention, that will
after the occurrence of such event cause the prospectus included in such
registration statement, if not amended or supplemented, to contain an untrue
statement of a material fact or an omission to state a material fact required to
be stated therein or necessary to make the statements therein not misleading and
the Company shall promptly thereafter prepare and furnish to such Holder a
supplement or amendment to such prospectus (or prepare and file appropriate
reports under the Exchange Act) so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not contain an
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 not misleading,
unless suspension of the use of such prospectus otherwise is authorized herein
or in the event of a Blackout Period, in which case no supplement or amendment
need be furnished (or Exchange Act filing made) until the termination of such
suspension or Blackout Period;

                                       8
<PAGE>

            (g)      comply, and continue to comply during the Effectiveness
Period, in all material respects with the Securities Act and the Exchange Act
and with all applicable rules and regulations of the Commission with respect to
the disposition of all securities covered by such registration statement;

            (h)      as promptly as practicable after becoming aware of such
event, notify each Holder of Registrable Securities being offered or sold
pursuant to the Registration Statement of the issuance by the Commission of any
stop order or other suspension of effectiveness of the Registration Statement;

            (i)      use its best efforts to cause all the Registrable
Securities covered by the Registration Statement to be quoted on the NASD OTC
Bulletin Board or such other principal securities market on which securities of
the same class or series issued by the Company are then listed or traded;

            (j)      provide a transfer agent and registrar, which may be a
single entity, for the shares of Common Stock at all times;

            (k)      cooperate with the Holders of Registrable Securities being
offered pursuant to the Registration Statement to issue and deliver, or cause
its transfer agent to issue and deliver, certificates representing Registrable
Securities to be offered pursuant to the Registration Statement within a
reasonable time after the delivery of certificates representing the Registrable
Securities to the transfer agent or the Company, as applicable, and enable such
certificates to be in such denominations or amounts as the Holders may
reasonably request and registered in such names as the Holders may request;

            (l)      during the Effectiveness Period, refrain from bidding for
or purchasing any Common Stock or any right to purchase Common Stock or
attempting to induce any person to purchase any such security or right if such
bid, purchase or attempt would in any way limit the right of the Holders to sell
Registrable Securities by reason of the limitations set forth in Regulation M
under the Exchange Act; and

            (m)      take all other reasonable actions necessary to expedite and
facilitate the disposition by the Holders of the Registrable Securities pursuant
to the Registration Statement.

      5.    Suspension of Offers and Sales. Each Holder agrees that, upon
receipt of any notice from the Company of the happening of any event of the kind
described in Section 4(f) hereof or of the commencement of an Blackout Period,
such Holder shall discontinue the disposition of Registrable Securities included
in the Registration Statement until such Holder's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 4(f) hereof or notice
of the end of the Blackout Period, and, if so directed by the Company, such
Holder shall deliver to the Company (at the Company's expense) all copies
(including, without limitation, any and all drafts), other than permanent file
copies, then in such Holder's possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

                                       9
<PAGE>

      6.    Registration Expenses. The Company shall pay all expenses in
connection with any registration obligation provided herein, including, without
limitation, all registration, filing, stock exchange fees, printing expenses,
all fees and expenses of complying with securities or blue sky laws, and the
fees and disbursements of counsel for the Company and of its independent
accountants; provided that, in any underwritten registration, each party shall
pay for its own underwriting discounts and commissions and transfer taxes.
Except as provided in this Section and Section 9, the Company shall not be
responsible for the expenses of any attorney or other advisor employed by a
Holder.

      7.    Assignment of Rights. No Holder may assign its rights under this
Agreement to any party without the prior written consent of the Company;
provided, however, that a Holder may assign its rights under this Agreement
without such consent to a Permitted Assignee as long as (a) such transfer or
assignment is effected in accordance with applicable securities laws; (b) such
transferee or assignee agrees in writing to become subject to the terms of this
Agreement; and (c) the Company is given written notice by such Holder of such
transfer or assignment, stating the name and address of the transferee or
assignee and identifying the Registrable Securities with respect to which such
rights are being transferred or assigned.

      8.    Information by Holder. Holders included in any registration shall
furnish to the Company such information as the Company may reasonable request in
writing regarding such Holders and the distribution proposed by such Holders.

      9.    Indemnification.

            (a)      In the event of the offer and sale of Registrable
Securities under the Securities Act, the Company shall, and hereby does,
indemnify and hold harmless, to the fullest extent permitted by law, each
Holder, its directors, officers, partners, each other person who participates as
an underwriter in the offering or sale of such securities, and each other
person, if any, who controls or is under common control with such Holder or any
such underwriter within the meaning of Section 15 of the Securities Act, against
any losses, claims, damages or liabilities, joint or several, and expenses to
which the Holder or any such director, officer, partner or underwriter or
controlling person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages, liabilities or expenses (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon any untrue statement of any material fact contained in any
registration statement prepared and filed by the Company under which shares of
Registrable Securities were registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or any omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
in light of the circumstances in which they were made not misleading, and the
Company shall reimburse the Holder, and each such director, officer, partner,
underwriter andcontrolling person for any legal or any other expenses reasonably
incurred by them in connection with investigating, defending or settling any
such loss, claim, damage, liability, action or proceeding; provided that the
Company shall not be liable in any such case (i) to the extent that any such
loss, claim, damage, liability (or action or proceeding in respect thereof) or
expense arises out of or is based upon an untrue statement in or omission from
such registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company through an instrument duly
executed by or on behalf of such Holder specifically stating that it is for use
in the preparation thereof or (ii) if the person asserting any such loss, claim,
damage, liability (or action or proceeding in respect thereof) who purchased the
Registrable Securities that are the subject thereof did not receive a copy of an
amended preliminary prospectus or the final prospectus (or the final prospectus
as amended or supplemented) at or prior to the written confirmation of the sale
of such Registrable Securities to such person because of the failure of such
Holder or underwriter to so provide such amended preliminary or final prospectus
and the untrue statement or omission of a material fact made in such preliminary
prospectus was corrected in the amended preliminary or final prospectus (or the
final prospectus as amended or supplemented). Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Holders, or any such director, officer, partner, underwriter or controlling
person and shall survive the transfer of such shares by the Holder.

                                       10
<PAGE>

            (b)      As a condition to including Registrable Securities in any
registration statement filed pursuant to this Agreement, each Holder agrees to
be bound by the terms of this Section 9 and to indemnify and hold harmless, to
the fullest extent permitted by law, the Company, its directors and officers,
and each other person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which the Company or any such director or
officer or controlling person may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions or
proceedings, whether commenced or threatened, in respect thereof) that arises
out of or is based upon an untrue statement in or omission from such
registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Holder through an instrument duly
executed by or on behalf of the Company specifically stating that it is for use
in the preparation thereof, and such Holder shall reimburse the Company, and
each such director, officer, and controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating,
defending, or settling and such loss, claim, damage, liability, action, or
proceeding; provided, however, that such indemnity agreement found in this
Section 9 shall in no event exceed the gross proceeds from the offering received
by such Holder. Such indemnity shall remain in full force and effect, regardless
of any investigation made by or on behalf of the Company or any such director,
officer or controlling person and shall survive the transfer by any Holder of
such shares.

            (c)      Promptly after receipt by an indemnified party of notice of
the commencement of any action or proceeding involving a claim referred to in
this Section (including any governmental action), such indemnified party shall,
if a claim in respect thereof is to be made against an indemnifying party, give
written notice to the indemnifying party of the commencement of such action;
provided that the failure of any indemnified party to give notice as provided
herein shall not relieve the indemnifying party of its obligations under this
Section, except to the extent that the indemnifying party is actually prejudiced
by such failure to give notice. In case any such action is brought against an
indemnified party, unless in the reasonable judgment of counsel to such
indemnified party a conflict of interest between such indemnified and
indemnifying parties may exist or the indemnified party may have defenses not
available to the indemnifying party in respect of such claim, the indemnifying
party shall be entitled to participate in and to assume the defense thereof,
with counsel reasonably satisfactory to such indemnified party and, after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the defense thereof, unless in such indemnified
party's reasonable judgment a conflict of interest between such indemnified and
indemnifying parties arises in respect of such claim after the assumption of the
defenses thereof or the indemnifying party fails to defend such claim in a
diligent manner, other than reasonable costs of investigation. Neither an
indemnified nor an indemnifying party shall be liable for any settlement of any
action or proceeding effected without its consent. No indemnifying party shall,
without the consent of the indemnified party, consent to entry of any judgment
or enter into any settlement, which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect of such claim or litigation.
Notwithstanding anything to the contrary set forth herein, and without limiting
any of the rights set forth above, in any event any party shall have the right
to retain, at its own expense, counsel with respect to the defense of a claim.

                                       11
<PAGE>

            (d)      In the event that an indemnifying party does or is not
permitted to assume the defense of an action pursuant to Sections 9(c) or in the
case of the expense reimbursement obligation set forth in Sections 9(a) and (b),
the indemnification required by Sections 9(a) and (b) hereof shall be made by
periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills received or expenses, losses, damages, or
liabilities are incurred.

            (e)      If the indemnification provided for in this Section is held
by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage or expense referred to
herein, the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall (i) contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense
as is appropriate to reflect the proportionate relative fault of the
indemnifying party on the one hand and the indemnified party on the other
(determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission relates to information supplied
by the indemnifying party or the indemnified party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission), or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law or provides a lesser sum to the
indemnified party than the amount hereinafter calculated, not only the
proportionate relative fault of the indemnifying party and the indemnified
party, but also the relative benefits received by the indemnifying party on the
one hand and the indemnified party on the other, as well as any other relevant
equitable considerations. No indemnified party guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any indemnifying party who was not guilty
of such fraudulent misrepresentation.

            (f)      Other Indemnification. Indemnification similar to that
specified in this Section (with appropriate modifications) shall be given by the
Company and each Holder of Registrable Securities with respect to any required
registration or other qualification of securities under any federal or state law
or regulation or governmental authority other than the Securities Act.

                                       12
<PAGE>

      10.   Rule 144. For a period of at least 24 months following the Closing
Date, the Company will use its commercially reasonable best efforts to timely
file all reports required to be filed by the Company after the date hereof under
the Securities Act and the Exchange Act and the rules and regulations adopted by
the Commission thereunder, and if the Company is not required to file reports
pursuant to such sections, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as is
required for the Purchasers to sell shares of Common Stock under Rule 144.

      11.   Independent Nature of Each Purchaser's Obligations and Rights. The
obligations of each Purchaser under this Agreement are several and not joint
with the obligations of any other Purchaser, and each Purchaser shall not be
responsible in any way for the performance of the obligations of any other
Purchaser under this Agreement. Nothing contained herein and no action taken by
any Purchaser pursuant hereto, shall be deemed to constitute such Purchasers as
a partnership, an association, a joint venture, or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by
this Agreement. Each Purchaser shall be entitled to independently protect and
enforce its rights, including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined as
an additional party in any proceeding for such purpose.

      12.   Miscellaneous.

            (a)      Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York and the United
States of America, both substantive and remedial, without regard to New York
conflicts of law principles. Any judicial proceeding brought against either of
the parties to this agreement or any dispute arising out of this Agreement or
any matter related hereto shall be brought in the courts of the State of
New York, New York County, or in the United States District Court for the
Southern District of New York and, by its execution and delivery of this
agreement, each party to this Agreement accepts the jurisdiction of such courts.
The foregoing consent to jurisdiction shall not be deemed to confer rights on
any person other than the parties to this Agreement.

            (b)      Successors and Assigns. Except as otherwise provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, Permitted Assigns, executors and administrators of the
parties hereto. In the event the Company merges with, or is otherwise acquired
by, a direct or indirect subsidiary of a publicly traded company, the Company
shall condition the merger or acquisition on the assumption by such parent
company of the Company's obligations under this Agreement.

            (c)      Entire Agreement. This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the
subjects hereof.

                                       13
<PAGE>

            (d)      Notices, etc. All notices or other communications which are
required or permitted under this Agreement shall be in writing and sufficient if
delivered by hand, by facsimile transmission, by registered or certified mail,
postage pre-paid, by electronic mail, or by courier or overnight carrier, to the
persons at the addresses set forth below (or at such other address as may be
provided hereunder), and shall be deemed to have been delivered as of the date
so delivered:

      If to the Company before the Closing Date to:

            Alternative Energy Sources, Inc.
            88 West 44th Avenue
            Vancouver, British Columbia, Canada, V5Y 2V1
            Attention: Stephen Jackson, President and Chief Executive Officer
            Facsimile: (604) 661-0759

      If to the Company after the Closing Date to:

            Alternative Energy Sources, Inc.
            c/o McGuireWoods LLP
            1345 Avenue of the Americas, 7th Floor
            New York, New York  10105
            Attention: Mark Beemer, Chief Executive Officer
            Facsimile: (212) 548-2175

      If to the Purchasers:

            To each Purchaser at the address
            set forth on Exhibit A

or at such other address as any party shall have furnished to the other parties
in writing.

            (e)      Delays or Omissions. No delay or omission to exercise any
right, power or remedy accruing to any Holder, upon any breach or default of the
Company under this Agreement, shall impair any such right, power or remedy of
such Holder nor shall it be construed to be a waiver of any such breach or
default, or an acquiescence therein, or of or in any similar breach or default
thereunder occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on
the part of any Holder of any breach or default under this Agreement, or any
waiver on the part of any Holder of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement, or by law or otherwise afforded to any holder, shall be cumulative
and not alternative.

            (f)      Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
instrument. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile signature page were an original thereof.

                                       14
<PAGE>

            (g)      Severability. In the case any provision of this Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

            (h)      Amendments. The provisions of this Agreement may be amended
at any time and from time to time, and particular provisions of this Agreement
may be waived, with and only with an agreement or consent in writing signed by
the Company and the Majority Holders. The Purchasers acknowledge that by the
operation of this Section, the Majority Holders may have the right and power to
diminish or eliminate all rights of the Purchasers under this Agreement.

            (i)      Limitation on Subsequent Registration Rights. After the
date of this Agreement, the Company shall not, without the prior written consent
of the Majority Holders, enter into any agreement with any holder or prospective
holder of any securities of the Company that would grant such holder
registration rights senior to those granted to the Holders hereunder.

                            [SIGNATURE PAGES FOLLOW]

                                       15
<PAGE>

This Registration Rights Agreement is hereby executed as of the date first above
written.

                                    COMPANY:

                                    ALTERNATIVE ENERGY SOURCES, INC.

                                    By: _______________________________________
                                    Name: Stephen Jackson
                                    Its:  President and Chief Executive Officer

                      [SIGNATURE PAGE OF PURCHASER FOLLOWS]

                                       16
<PAGE>

      This Registration Rights Agreement is hereby executed as of the date first
above written.

                                          PURCHASER:

                                          ______________________________________

                                          ______________________________________
                                                      (PRINT NAME)

                                          BY:      _____________________________

                                          NAME:    _____________________________

                                          ITS:     _____________________________

                                       17
<PAGE>

                                    Exhibit A

                                   Purchasers

Purchaser Name                  Purchaser Address                Number of Units

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