Document:

ex4_2.htm

    ROSS
MILLER

    Secretary
of State

    206
North Carson Street

    Carson
City, Nevada 89701-4299

    (775)
684 5708

    Website:
secretaryofstate.biz

    

     

    Certificate
of Designation

     

     (PURSUANT
TO NRS 78.1955)

     

    
      	
              USE
      BLACK INK ONLY-DO NOT HIGHLIGHT

            
	
              Certificate of
      Designation

            
	
              For Nevada Profit
      Corporations

            
	
              (Pursuant
      to NRS 78.1955)

            
	 
      
	
              1.

            	
              Name
      of corporation:

            
	 
      	RM
      Health International, Inc.
	 
      	 
      
	
              2.

            	
              By
      resolution of the board of directors pursuant to a provision in the
      articles of incorporation, this certificate establishes the following
      regarding the voting powers, designations, preferences, limitations,
      restrictions and relative rights of the following class or series of
      stock.

            
	 
      	
              

                 

                RESOLVED:  that
      pursuant to the authority granted to and vested in the Board in accordance
      with the provisions of the Corporation’s Articles of Incorporation, a
      series of preferred stock of the Corporation is hereby created and
      designated with the following relative rights, preferences, privileges,
      qualifications, limitations, and restrictions:

                 

                1. Designation and
      Number.  There shall be a series of preferred stock, par
      value $0.001 per shares, designated as “Series B Preferred Stock,” and the
      number of shares constituting such series shall be Eighty Thousand Five
      Hundred (80,500).

                 

                See additional
      page.

              

               

            
	 
      	 
      
	
              3.

            	
              Effective
      date of filing (optional):

            
	 
      	 
      
	
              4.

            	
              Officer
      Signature (Required): 

            
	 
      	 
      
	 
      	
              X
      /s/ Randy Weston

            
	 
      	
              Signature

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    RM
HEALTH INTERNATIONAL, INC.

    

    CERTIFICATE
OF DESIGNATION OF

    SERIES
B PREFERRED STOCK

    

    The
Undersigned, on behalf of RM Health International, Inc., a Nevada corporation
(the “Corporation”), hereby certifies that the following resolutions were
adopted by the Corporation’s board of directors effective as of May 16, 2008,
pursuant to the authority conferred upon the Board by the Corporation’s Articles
of Incorporation and in accordance with the Nevada Revised
Statutes:

     

    RESOLVED:  that
pursuant to the authority granted to and vested in the Board in accordance with
the provisions of the Corporation’s Articles of Incorporation, a series of
preferred stock of the Corporation is hereby created and designated with the
following relative rights, preferences, privileges, qualifications, limitations,
and restrictions:

    

    1. Designation and
Number.  There shall be a series of preferred stock, par value
$0.001 per shares, designated as “Series B Preferred Stock,” and the number of
shares constituting such series shall be Eighty Thousand Five Hundred
(80,500).

    

     

    2. Voting
Rights.  The holders of shares of Series B Preferred Stock
shall have the following voting rights:

    

    a.           Subject
to the provision for adjustment hereinafter set forth, each share of Series B
Preferred Stock shall entitle the holder thereof to one (1) vote on all matters
submitted to a vote of the common stockholders of the corporation.

    

    b.           Except
as otherwise provided herein or by law, the holders of shares of Series B
Preferred Stock and the holders of shares of Common Stock shall vote together as
one class on all matters submitted to a vote of the stockholders of the
corporation.

    

    c.           Except
as set forth herein, holders of Series B Preferred Stock shall have no special
voting rights and their consent shall not be required (except to the extent they
are entitled to vote with holders of Common Stock as set forth herein) for the
taking of any corporate action.

    

    3. Dividends. The
holders of shares of Series B Preferred Stock, in preference to the holders of
Common Stock, shall be entitled to receive when, as and if declared by the Board
of Directors out of funds legally available for the purpose, cumulative
dividends as provided in this Section 3.

    

    a. The
holders of the Series B Preferred Stock shall be entitled to receive cumulative
dividends, out of the funds legally available therefore, which shall accrue on
each share of Series B Preferred Stock (adjusted for any subdivisions,
combinations, consolidations or stock distributions or stock dividends with
respect to such shares).  A cumulative dividend of $1.00 per share is
payable quarterly.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    b. To the
extent the Corporation has funds legally available for the payment of dividends,
as determined in good faith by the Board of Directors, the Corporation shall,
within thirty (30) days following each calendar quarter, so long as shares of
Series B Preferred Stock are issued and outstanding, pay each holder of Series B
Preferred Stock the Dividend Rate.  Should the Company fail to pay
each holder the Dividend Rate within thirty (30) days of the end of each
quarter, the Dividend Rate shall increase to $1.30 per share until paid in
full.

    

    c. In the
event any dividend is not paid by January 30 of the year following the year for
which the dividend has accrued, the dividend will be payable in Common Stock
valued at the average closing price for the preceding twenty trading
days.  Except as otherwise provided herein, if at any time the
Corporation pays less than the total amount of dividends then accrued with
respect to the Series B Preferred Stock, such payment shall be distributed
ratably among the holders of the Series B Preferred Stock based upon the
aggregate accrued but unpaid dividends on the Series B Preferred Stock held by
each holder.

    

    d. No
dividends shall be declared or paid on the Common Stock until all dividends
accrued or declared but unpaid on the Series B Preferred Stock shall have been
paid in full.

    

    4. Liquidation Preference on
Dissolution, Sale of the Corporation or Reorganization.

    

    a. In the
event of any liquidation, dissolution or winding up of the affairs of the
Corporation, either voluntarily or involuntarily (a “Dissolution”), each holder
of Series B Preferred Stock shall be entitled, after provision for the payment
of the Corporation’s debts and other liabilities, to be paid in cash in full,
before any distribution is made on any Common Stock, an amount of $10.00 per
share, in cash (the “Series B Liquidation Amount”).  The Corporation
shall, not later than 20 days prior to the earlier of the record date for the
taking of a vote of stockholders with respect to any Dissolution or the date set
for the consummation of a Dissolution, provide to the holders of the Series B
Preferred Stock such information concerning the terms of the Dissolution and the
value of the assets of the Corporation as may be reasonably requested by the
holders of shares of Series B Preferred Stock.  If, upon a
Dissolution, the net assets of the Corporation distributable among the holders
of all outstanding Series B Preferred Stock shall be insufficient to permit the
payment of the Series B Liquidation Amount in full, then the entire net assets
of the Corporation remaining after the provision for the payment of the
Corporation’s debts and other liabilities shall be distributed among the holders
of the Series B Preferred Stock ratably in proportion to the full preferential
amounts to which they would otherwise be respectively entitled on account of
their Series B Preferred Stock.  Upon any such Dissolution, after the
holders of Series B Preferred Stock shall have been paid in full the Series B
Liquidation Amount, the remaining net assets of the Corporation shall be
distributed to the other stockholders of the Corporation as their respective
interests may appear.

     

    b. Neither a
consolidation or merger of the Corporation with or into any other corporation,
nor a merger of any other corporation with or into the Corporation, nor a sale
or transfer of all or any part of the Corporation’s assets for cash or
securities or other property shall be considered a liquidation, dissolution or
winding-up of the Corporation’s within the meaning of this Section
4.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    c. Any
Reorganization of the Corporation required by any court or administrative body
in order to comply with any provision of law shall be deemed to be an
involuntary liquidation, dissolution or winding up of the Corporation unless the
preferences, qualifications, limitations, restrictions and special or relative
rights granted to or imposed upon the holders of Series B Preferred Stock are
not adversely affected by such Reorganization.

    

    5. Conversion
Rights.

    

    a. Conversion
Procedure.

    

    i. Option of
Holder.  Holders of shares of Series B Preferred Stock shall have the
right to demand conversion of the Series B Preferred Stock by written notice to
the Corporation and tender of the shares to be converted, given at any time
after 180 days from original issuance of the Series B Preferred
Stock.

    

    ii. Call by
Corporation.  The Corporation shall have the right, at its option, to
call all or any portion of the shares of Series B Preferred Stock then issued
and outstanding (including any fraction of a share thereof) upon thirty (30)
days written notice, during which time the holder may convert into common
shares. Upon conversion, each share of Series B Preferred Stock shall, subject
to adjustment, be converted into eighteen (18) shares of common stock each
holder will in addition receive six (6) warrants for each share of Series B
Preferred Stock converted, exercisable into common shares at the price of $1.33
per share, until December 31, 2010. The warrants are callable by the company
upon thirty (30) days’ notice in the event the Common shares trade for ten days
preceding such notice at or above $2.00 per share Holders may exercise their
warrants during the notice period.  Upon call of the warrants by the
Corporation, in the event any holder thereof does not tender the exercise price,
the warrant will expire and be of no further force or effect.

    

    iii. For the
purposes of this subsection 5(a)(1), notices shall be sent, if by or on behalf
of the corporation, to holders of the Series B Preferred Stock at the respective
addresses as shall then appear on the records of the corporation.

    

    b. Subdivision
or Combination of Common Stock.  If the Corporation at any time
subdivides (by any stock split, stock dividend, recapitalization or otherwise)
its outstanding shares of Common Stock into a greater number of shares, the
Series B Conversion Price in effect immediately prior to such subdivision shall
be proportionately reduced, and conversely, in the event the outstanding shares
of Common Stock shall be combined (by reverse stock split or otherwise) into a
smaller number of shares, the Series B Conversion Price in effect immediately
prior to such combination shall be proportionately increased.

    

    c. Adjustment
for Certain Dividends and Distributions.  In the event the Corporation
at any time or from time to time after the Series B Original Issue Date shall
make or issue, or fix a record date for the determination of holders of Common
Stock entitled to receive, a dividend or other distribution payable on the
Common Stock in additional shares of Common Stock, then and in each such event
the Series B Conversion Price in effect immediately before such event shall be
decreased as of the time of such issuance or, in the event such a record date
shall have been fixed, as of the close of business on such record date, by
multiplying the Series B Conversion Price then in effect by a
fraction:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    i. the
numerator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date, and

    

                          ii.                                           the
denominator of which shall be the total number of shares of Common Stock issued
and outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution;

    

    provided,
however, that if such record date shall have been fixed and such dividend is not
fully paid or if such distribution is not fully made on the date fixed
therefore, the Series B Conversion Price shall be recomputed accordingly as of
the close of business on such record date and thereafter the Series B Conversion
Price shall be adjusted pursuant to this subsection as of the time of actual
payment of such dividends or distributions; and provided further, however, that
no such adjustment shall be made if the holders of Series B Preferred Stock
simultaneously receive a dividend or other distribution of shares of Common
Stock in a number equal to the number of shares of Common Stock as they would
have received if all outstanding shares of Series B Preferred Stock had been
converted into Common Stock on the date of such event.

    

    d. Adjustments
for Other Dividends and Distributions. In the event the Corporation at any time
or from time to time after the Series B Original Issue Date shall make or issue,
or fix a record date for the determination of holders of Common Stock of the
Corporation entitled to receive, a dividend or other distribution payable in
securities of the Corporation (other than a distribution of shares of Common
Stock in respect of outstanding shares of Common Stock) or in other property,
then and in each such event the holders of Series B Preferred Stock shall
receive, simultaneously with the distribution to the holders of such Common
Stock, a dividend or other distribution of such securities or other property in
an amount equal to the amount of such securities or other property as they would
have received if all outstanding shares of Series B Preferred Stock had been
converted into Common Stock on the date of such event.

    

    e. Adjustment
for Merger or Reorganization, etc.  If there shall occur any
reorganization, recapitalization, consolidation or merger involving the
Corporation in which the Common Stock (but not the Series B Preferred Stock) is
converted into or exchanged for securities, cash or other property, then, as a
part of and a condition to such reorganization, recapitalization, consolidation
or merger, provision shall be made so that thereafter each share of Series B
Preferred Stock shall be convertible into the same kind and amount of
securities, cash or other property of the Corporation, or of the successor
corporation resulting from such reorganization, recapitalization, consolidation
or merger, which a holder of the number of shares of Common Stock of the
Corporation issuable upon conversion of one share of Series B Preferred Stock
immediately prior to such reorganization, recapitalization, consolidation or
merger would have been entitled to receive pursuant to such
transaction.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    f. Notices.

    

    i. Immediately
upon any adjustment of the Series B Conversion Price, the Corporation shall give
written notice thereof to all holders of such Series B Preferred Stock, setting
forth in reasonable detail and certifying the calculation of such adjustment and
the facts upon which such adjustment is based.

    

    ii. The
Corporation shall give written notice to all holders of Series B Preferred Stock
at least twenty (20) days prior to the date on which the Corporation closes its
books or takes a record (a) with respect to any dividend or distribution upon
Common Stock, (b) with respect to any pro rata subscription offer to holders of
Common Stock, (c) with respect to any dissolution or liquidation or any merger,
consolidation, reorganization, recapitalization or similar event, or (d) with
respect to any other right afforded to any holder of Common Stock.

    

    6. Corporate
Redemption.

    

    a. Redemption.   The
shares of Series B Preferred Stock are redeemable at the option of the
Corporation in cash at $10.00 per share or in shares of Common Stock in the
ratio of, subject to adjustment, eighteen (18) shares of Common Stock for each
share of Series B Preferred Stock redeemed at the choice of the Corporation (the
“Redemption Price”). No redemption of Series B Preferred Stock shall be made in
shares of Common Stock unless the Common Stock is trading at an average of $2.00
per share for a period of least twenty (20) consecutive days prior to the
Redemption Notice. The Corporation shall notify each holder of Series B
Preferred Stock in writing (a “Redemption Notice”) of the Corporation’s intent
to exercise the rights afforded by this Section 6(a), specifying the number of
shares of Series B Preferred Stock to be redeemed, the date not less than thirty
(30) nor more than sixty (60) days from the date of such notice on which such
Series B Preferred Stock shall be redeemed (the “Redemption Date”), and the
place or places at which the shares called for redemption shall, upon
presentation and surrender of such certificates representing such shares, be
redeemed.  Subject to Section 6(b), the Corporation shall redeem a pro
rata amount from each holder of Series B Preferred Stock (based on the total
number of shares of Series B Preferred Stock outstanding); provided however, if
a holder of Series B Preferred Stock desires more or less than such holder’s pro
rata amount to be redeemed, such holder shall notify the Corporation in writing
at least ten (10) days prior to the Redemption Date and the Corporation shall
make efforts to allocate the redemption in a manner consistent with the notices
received from the holder’s of the Series B Preferred Stock but subject to the
full redemption of the amount the Corporation has provided notice to redeem
(such allocation shall be made by the Board of Directors). The Corporation shall
redeem on the Redemption Date each share of Series B Preferred Stock being
redeemed in cash by wire transfer of immediately available funds at a redemption
price equal to the Series B Preference Amount (the “Redemption
Price”).

    

    b. Conversion
Rights.  Notwithstanding Section 6(a), upon receipt of the Redemption
Notice, each holder of Series B Preferred Stock may, in lieu of having such
holder’s applicable shares of Series B Preferred Stock being redeemed pursuant
to Section 6(a), convert all or any portion of the shares of Series B Preferred
Stock subject to Redemption by notifying the Corporation in writing at least ten
(10) days prior to the Redemption Date of its intent to convert such shares,
which conversion shall be subject to the provisions of Section 5 (and the
Conversion Date of such shares shall be the Redemption Date).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    c. Notices.  The
notices provided for in this Section 6 shall be sent, if by or on behalf of the
Corporation, to the holders of the Series B Preferred Stock at their respective
addresses as shall then appear on the records of the Corporation, or if by any
holder of Series B Preferred Stock to the Corporation, by certified first class
mail, postage prepaid.

    

    d. Surrender
of Certificates; Payment. On or before the applicable Redemption Date, each
holder of shares of Series B Preferred Stock to be redeemed on such Redemption
Date, unless such holder has exercised his, her, or its right to convert such
shares as provided in Section 5 hereof, shall surrender the certificate or
certificates representing such shares to the Corporation (or, if such registered
holder alleges that such certificate has been lost, stolen or destroyed, a lost
certificate affidavit and agreement of such holder--in form reasonably
acceptable to the Corporation--to indemnify the Corporation against any claim
that may be made against the Corporation on account of the alleged loss, theft
or destruction of such certificate), at the place designated in the Redemption
Notice, and on the Redemption Date the Redemption Price for such shares shall be
paid to the order of the person whose name appears on such certificate or
certificates as the owner thereof, and each surrendered certificate shall be
canceled and retired. In the event less than all of the shares of Series B
Preferred Stock represented by a certificate are redeemed, a new certificate
representing the unredeemed shares of Series B Preferred Stock shall promptly be
issued to such holder.  In the event a holder fails to surrender such
holder’s certificate (and/or a lost certificate affidavit and agreement to
indemnify) for the redeemed Series B Preferred Stock on or before the applicable
Redemption Date, such stock shall be redeemed as of the Redemption Date
regardless, and the Redemption Price shall be paid to such holder upon surrender
of the applicable certificate (and/or lost certificate affidavit and agreement
to indemnify).

    

    e. Status of
Reacquired Shares.  Any shares of Series B Preferred Stock redeemed
pursuant to this Section 6 or otherwise acquired by the Corporation in any
manner whatsoever shall be canceled and shall not under any circumstances be
reissued; and the Corporation may from time to time take such appropriate
corporate action as may be necessary to reduce accordingly the number of
authorized shares of Series B Preferred Stock.

    

    7. Exclusion of Other Rights.  Except
as may otherwise be required by law, the shares of Series B Preferred Stock
shall not have any preferences or relative, participating, optional or other
special rights, other than those specifically set forth in this Certificate of
Designation.

    

    8. Rank.  The
Series B Preferred Stock shall rank senior in right as to dividends and upon
liquidation, dissolution or winding up to all Common Stock whenever
issued.

    

    9. Identical Rights.  Each
share of Series B Preferred Stock shall have the same relative rights and
preferences as, and shall be identical in all respects with, all other shares of
the Series B Preferred Stock.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    10. Certificates.  So
long as any shares of the Series B Preferred Stock are outstanding, there shall
be set forth on the face or back of each stock certificate issued by the
Corporation a statement that the Corporation shall furnish without charge to
each stockholder who so requests, a full statement of the designation and
relative rights, preferences and limitations of each class of stock or series
thereof that the Corporation is authorized to issue and of the authority of the
Board of Directors to designate and fix the relative rights, preferences and
limitations of each series.

    

    11. Defeasance.  Any
of the rights, powers or preferences of the holders of Series B Preferred Stock
set forth herein may be waived or defeased by the affirmative consent or vote of
the Series B Majority Holders.

    

    12. Definitions.

     

    “Articles
of Incorporation” shall mean the Articles of Incorporation of the Corporation,
as amended from time to time.

     

    “Common
Stock” shall have the meaning set forth in the Articles of Incorporation of the
Corporation.

     

     “Conversion
Date” shall have the meaning set forth in Section 6(a)(ii) hereof.

     

    “Corporation”
shall have the meaning set forth in the preamble hereof.

     

     “Dissolution”
shall have the meaning set forth in Section 4(a) hereof.

     

    “Dividend
Date” shall have the meaning set forth in Section 3(b) hereof.

     

     “Person”
shall mean an individual, partnership, corporation, limited liability company,
association, trust, joint venture, unincorporated organization and any
government, governmental department or agency or political subdivision
thereof.

     

    “Preferred
Stock” shall have the meaning set forth in the Articles of Incorporation of the
Corporation.

     

    “Redemption”
shall have the meaning set forth in Section 7(a).

     

    “Redemption
Date” shall have the meaning set forth in Section 7(a).

     

    “Redemption
Notice” shall have the meaning set forth in Section 7(a).

     

    “Redemption
Price” shall have the meaning set forth in Section 7(a).

     

    “Sale of
the Corporation” shall mean a single transaction or a series of transactions
pursuant to which an unaffiliated Person or Persons acquire (i) Capital Stock of
the Corporation possessing the voting power to elect a majority of the
Corporation’s board of directors or more than fifty percent (50%) of the voting
power of the Corporation (whether by merger, consolidation or sale or transfer
of the Corporation’s Capital Stock), provided, however, (a) that an initial
public offering that results in an acquisition of voting power shall not be a
Sale of the Corporation and (b) a merger shall not be a Sale of the Corporation
as long as the stockholders of the Corporation own a majority of the Common
Stock of the surviving entity immediately following the merger); or (ii) all or
a substantial portion of the Corporation’s assets determined on a consolidated
basis.

     

     “Series
B Liquidation Amount” shall have the meaning set forth in Section 4(a)
hereof.

     

     “Series
B Preferred Stock” shall have the meaning set forth in Section 1
hereof.ex10_1.htm

    ASSET PURCHASE
AGREEMENT

     

    This
Agreement (“Agreement") is made and entered into as of this 14th day of
February, 2008, by and between BLUE EARTH SOLUTIONS, INC., a Delaware
corporation ("Buyer”), 8306 Tibet Butler Drive, Windermere, Florida 34786 and
PARLIAMENT CONSULTING LLC, a Florida Limited Liability Company, 1885 SW 4th
Ave., Delray Beach, FL 33444, and CLAUDIA and NICHOLAS IOVINO, 6364 Amberwoods
Drive, Boca Raton, Florida 33433 (collectively "SELLER") (the parties to this
Agreement are hereinafter referred to as the "PARTIES")

     

    RECITALS

     

    
      	
              A.

            	
              Seller
      is engaged in the business (the "Business") of recycling styrofoam waste,
      owns and markets a flat tire prevention compound, and owns technology
      relating to a silver, bronze, chrome, copper, and brass plating compounds
      and other technologies (the "Technologies")
and

            

    

     

    
      	
              B.

            	
              Seller
      desires to sell substantially all of the assets relating to the Business
      (the "Assets") To Buyer, including but not limited to all intellectual
      rights to the Technologies whether covered by patents, patent
      applications, trade secrets, trademarks, trade names, service marks,
      proprietary data or otherwise, and Buyer desires to purchase the Assets on
      the terms and subject to the conditions hereinafter set
    forth;

            

    

     

    NOW,
THEREFORE, in consideration of the premises and the respective warranties,
representations, covenants and agreements hereinafter set forth, Seller and
Buyer hereby mutually agree as follows:

     

    
      	
              1.

            	
              Assets. Seller agrees to sell,
      assign, transfer and deliver to Buyer, and Buyer agrees to purchase from -
      Seller, on the Closing Date (as defined in section 4 hereunder), all of
      the right, title and interest of Seller in and to all of the Assets as
      listed on Schedule A hereto free and clear of all security interests,
      liens, claims and other encumbrances not established by this
      Agreement.

            

    

     

    The
Assets shall not include, and Seller shall retain, all of its cash, certificates
of deposit and marketable securities.

     

    
      	
              2.

            	
              Liabilities
      Not Assumed by Buyer. Buyer and Seller understand that Buyer shall
      not assume, nor shall Buyer in any way be responsible for, any liability,
      obligation, claim or commitment, contingent, actual or otherwise, known or
      unknown, of Seller except for accrued payables not to exceed $150,000, it
      being expressly understood that Seller shall continue to be responsible
      for any and all other liabilities, obligations, claims or commitments of
      Seller or the Business entered into on or prior to the Closing Date. The
      accrued payables in question shall be listed on Schedule "B" hereto by payee and
      amount and Buyer shall, at closing, deliver to Seller the required
      cash.

            

    

     

    
      	
              3.

            	
              Purchase
      Price and Payment. The purchase price (the "Purchase Price") for
      the Assets shall be equal to the sum of Seven Million Dollars
      ($7,000,000). The Purchase Price shall be payable as
    follows:

            

    

     

    (a)           $200,000
in cash (the "Cash") at the Funding as hereinafter defined.

     

    (b)           $200,000
in the form of a promissory note in the usual form (the "Note") payable six
months from the Funding.

     

    (c)           $6,600,000
in the form of convertible Series A Preferred Stock of the Buyer. The stock
shall have the characteristics and legal consequences described in Schedule "B"
hereto. The preferred stock is non- dilutive until $1.5 million of capital net
of Seller's payment of $150,000 for accrued payables, $400,000 payments directly
to Seller and, if required, up to 10% commission and 3% unaccountable expenses
of a licensed investment banker is infused into the company. Seller has the
right preserve its percentage of ownership through the purchase of 20% of any
future capital placements until the first dividend is paid.

     

    (d)           A
royalty of one-half of one percent of the gross sales price of all products
related to patents or proprietary formulations purchased in this agreement, sold
by Buyer for a period of twenty years from the date of execution of this
agreement. Such royalty shall be paid on an annual basis with payment due on

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    March 15
of each year for the previous fiscal year. Royalties shall be accounted for by
Buyer in full with each payment. Furthermore, sales figures shall be subject to
review and analysis by Seller at any reasonable time personally or through
professionals employed for such purpose. In the event of a shortfall of ten
(10%) percent or more, Buyer shall be responsible for the cost of any
professional so employed.

     

    4.           Closing
Date.

     

    a.           The
Closing shall take place as soon as practicable and may occur simultaneously
with the execution hereof by all parties. All deliveries by Seller (see
subparagraph (b)) shall be in escrow to be delivered by the escrow agent when
and only when Buyer shall have completed its proposed private placement and
thereby raised and funded the Buyer with not less than $1,500,000.00 net of
payment to the Seller of $150,000 for accrued payables, $400,000 payments
directly to Seller and, if required, up to 10% commission and 3% unaccountable
expenses of a licensed investment banker, in available funds, free and clear of
any claim, charge, reduction, diminution, offset or allowance for fees, costs or
commissions of any kind incurred by Buyer, except those described above. The
receipt of these funds shall be termed the "Funding" and shall occur no later
than March 20, 2008, failing which, the escrow agent is instructed and required
to return all transfers, assignments, powers of attorney, bills of sale and any
other documents delivered to him to the Seller and this agreement shall be
terminated.

     

    b.           At
the Closing, Seller shall deliver to Buyer the following:

     

    (i)           such
bill of sale or other good and sufficient instruments of assignment, transfer
and conveyance as Buyer shall reasonably request, to convey and to transfer to
Buyer all right, title and interest of Seller in the Assets to Buyer, free and
clear of all security interests, liens, claims and encumbrances. The physical
transfer of the patents will begin immediately upon issuance of the Class A
Preferred Stock and funding of the public entity. It typically is a 90 day
process to do the physical transfer;

     

    (ii)           All
appropriate instruments granting to Buyer the right to the use of any trade
names and trademarks owned or used by Seller in connection with the
Business;

     

    (iii)           such
other instrument or instruments of transfer, if any, as shall be necessary or
appropriate to vest in Buyer good and marketable title to the
Assets;

     

    (iv)           Delivery
of Required Consents (as defined in section 7(b); and

     

    (v)           Delivery
of all UCC-3 termination statements and all other documents and instruments
necessary to release and discharge all liens, claims, security interests and
other encumbrances on the Assets, if any.

     

    (vi)           Deliver
powers of attorney on all patents in the name of the Company.

     

    c.           At
the Closing, Buyer shall deliver to Seller the following: 3

     

    (i)           The
cash for payables.

     

    (ii)           The
Note; and

     

    (iii)           An
irrevocable commitment for the preferred stock or the shares themselves if the
public company shall by then have been acquired; or, if not, shares representing
a twenty (20%) interest in Buyer.

     

    
      	
              5.

            	
              Representations,
      Warranties and Covenants of Seller. Seller hereby represents and
      warrants, and from and after this date, covenants to Buyer as
      follows:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Organization and
      Authority. Seller is a corporation, duly organized, validly
      existing, and in good standing under the laws of the State of Delaware and
      has all requisite corporate power and authority to carry on its business
      as it is presently being conducted, to enter into this Agreement, and to
      carry out and perform the transactions contemplated hereby. The execution,
      delivery and performance of this Agreement by Seller has been duly
      authorized and approved by its sole shareholder and its Board of
      Directors, and will not violate its Articles of Incorporation, By-Laws, or
      any agreement to which it is a party or by which it is bound or any law,
      rule, regulation or court order. This Agreement, and all other
      instruments, documents and agreements to be delivered by Seller in
      connection therewith, are the legal, valid and binding obligation of
      Seller enforceable in accordance with its, and their,
    terms.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Title.
      Seller has good and marketable title to all of the Purchased Assets, free
      and clear of any liabilities, obligations, claims, security interest,
      liens or encumbrances.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Assets.
      The Assets comprise all of the assets which are necessary to conduct the
      Business in the manner that it has been previously
    conducted.

            

    

     

    
      	
              6.

            	
              Representations,
      Warranties and Covenants of Buyer. Buyer hereby represents and
      warrants covenants to Seller as
follows:

            

    

     

    Organization and
Authority. Buyer is a corporation, duly organized, validly existing, and
in good standing under the laws of the State of Delaware and has all requisite
corporate power and authority to carry on its business as it is presently being
conducted, to enter into this Agreement, and to carry out and perform the
transactions contemplated hereby. The execution, delivery and performance of
this Agreement by Buyer has been duly authorized and approved by its
shareholders and its Board of Directors, and will not violate its Articles of
Incorporation, By-Laws, or any agreement to which it is a party or by which it
is bound or any law, rule, regulation or court order. This Agreement, and all
other instruments, documents and agreements to be delivered by Buyer in
connection therewith, are the legal, valid and binding obligation of Buyer
enforceable in accordance with its, and their, terms.

     

    
      	
              7.

            	
              Actions
      Prior to the Closing Date. The Parties covenant to take the
      following actions between the date hereof and the Closing
      Date:

            

    

     

    (a)           Investigation of Seller by
Buyer. Seller shall afford to the officers, employees and authorized
representatives (including, without limitation, independent public accountants
and attorneys) of the Buyer a full and complete opportunity to conduct and
complete its acquisition review and analysis of the Purchased Assets and Assumed
Liabilities (the "Acquisition Review"), including a review of Seller's books and
records, financial information, contracts and agreements (including all
non-competition and non-solicitation covenants binding on Seller or its
employees), inspection and review of the physical operations of the Seller's
business, and the right to contact and communicate with Seller's vendors,
creditors, customers, employees, independent contractors and others having a
business relationship with Seller. Buyer agrees that it will keep and maintain
any and all information obtained by it, its agents, and counsel, confidential,
and will not make use of any such information other than for its evaluation of
the proposed transaction.

     

    (b)           Consents and
Approvals. Seller shall use its best efforts promptly to obtain all
consents and amendments from parties to patents, licenses and other agreements
which require consent, together with estoppel letters, from parties to material
agreement, if any (the "Required Consents").

     

    (c)           Exclusive Dealing.
Seller and its affiliates shall deal exclusively with Buyer with respect to the
sale of the Assets. Seller shall not solicit, encourage or entertain offers or
inquiries (nor shall Seller or any of its affiliates authorize or permit any
director, officer, employee, attorney, accountant or other representative or
agent to solicit, encourage or entertain offers or inquiries) from other
possible acquiring companies, persons or entities, provide information to or
participate in any discussions or negotiations with any companies, persons or
entities with a view to an acquisition of all or substantially all of Seller's
assets or any interest therein.

     

    (d)           Seller's Employees.
Prior to Closing, Buyer may, at its sole discretion, interview and discuss
employment opportunities with Seller's employees and, Buyer may offer employment
to any of Seller's employees on terms and conditions unilaterally determined by
Buyer, effective on the Closing Date, with 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    the
exception of Harvey Katz who will receive an employment contract for a period of
3 years for $80,000 in the first year with and increase to $120,000 in year two
and a further increase to $150,000 in year three based on the Company reaching
$10,000,000 in year one and $40,000,000 in year two. It shall be the obligation
of the Buyer to facilitate the ability of the company to achieve gross receipts
in the amounts contemplated by reinvesting profits in the relevant years except
those amounts the buyer is contractually obligated in and by this agreement and
finishing at least 1.5 million dollars in working capital net of payment to the
Seller of $150,000 for accrued payables, $400,000 payments directly to Seller
and, if required, up to 10% commission and 3% unaccountable expenses of a
licensed investment banker no later than March 20, 2008. Claudia Iovino will
receive an employment contract for a period of 3 years for $48,000 per year with
an increase to $60,000 in the second year on the same terms as Harvey Katz,
Richard Iantosca will be offered a 3 year employment contract at a rate of
$36,000 per year, and Hisson Abdool will be offered a 3 year employment contract
at a rate of $36,000 per year. Each named party shall have a written employment
agreement, as per the attached copies of these agreements.

     

    (e)           Non-Compete/Non-Solicitation.
Seller, and its affiliates, shall not, individually or as a consultant,
shareholder, partner, venturer, director, officer, agent or otherwise, engage in
any of the following actions:

     

    (i)           for
a five (5) year period following the Closing, solicit, call on or contact any
past (within the past 12 months) or present customers, suppliers or employees of
Seller with respect to the Business; or without the written consent or in
conjunction with work for the Company.

     

    (ii)           for
a five (5) year period following the Closing, engage in any activity competitive
with the Business as now conducted in the United States and
Internationally.

     

    In
addition, Seller shall keep and maintain all confidential and proprietary
information of Seller, including without limitation, financial statements,
customer and supplier lists, pricing information, sales and purchases margins
and practices, methods of telephone solicitation and similar information
regarding the business and affairs of Seller, confidential and shall not
disclose such information to any third person or exploit such information
personally except as required under law, or if such information is in the public
domain.

     

    Seller
understands and agrees that this section is critical to this Agreement, and in
the event that Seller commits a breach of this section, Buyer shall have the
non-exclusive right and remedy to have this section specifically enforced to the
extent permitted by any court of competent jurisdiction, it being acknowledged
and agreed that any breach or threatened breach will cause immediate irreparable
injury to Buyer and that monetary damages will not provide an adequate remedy at
law. If any of the provisions contained herein are construed to be invalid or
unenforceable in any jurisdiction, the same shall not affect the remainder of
the provisions or the enforceability thereof, which shall be given full force
and effect and the court making such determination shall have the power to
reform the duration and/or scope of such section.

     

    (f) Board Seat. right to
appoint a board seat

     

    
      	
              8.

            	
              Conditions
      Precedent to Obligations of Seller. The obligations of the Seller
      under this Agreement shall be subject to the satisfaction, on or prior to
      the Closing Date, of the conditions set forth
  below.

            

    

     

    (a)           No Misrepresentation or
Breach of Representations, Warranties and Covenants. There shall have
been no breach by Buyer in the performance of any of its covenants and
agreements herein; each of the representations and warranties of Buyer contained
or referred to herein shall be true and correct in all material respects on the
Closing Date as though made on the Closing Date, except for changes therein
specifically permitted by this Agreement or resulting from any transaction
expressly consented to in writing by the Seller; and there shall have been
delivered to the Seller a certificate or certificates to that effect, dated the
Closing Date, signed by Buyer, by its President.

     

    (b)           Corporate
Action.  Buyer shall have taken all corporate action necessary
to approve the transactions contemplated by this Agreement, and Buyer shall have
furnished the Seller with certified copies of the resolutions adopted by the
Board of Directors and the Sole Shareholder of Buyer, in form and substance
reasonably satisfactory to counsel for the Seller, in connection with such
transactions.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c)           No Restraint or
Litigation. No action, suit, investigation or proceeding shall have been
instituted or threatened by any third party, governmental or regulatory agency
to restrain, prohibit or otherwise challenge the legality or validity of the
transactions contemplated hereby.

     

    (d)           Other Documentation.
Seller shall have received all of the documents and showings required to be
delivered by the Buyer at the Closing pursuant to section 4(C).

     

    
      	
              9.

            	
              Conditions
      Precedent to Obligations of Buyer. The obligations of the Buyer
      under this Agreement shall be subject to the satisfaction, on or prior to
      the Closing Date, of the conditions set forth
  below.

            

    

     

    (a)           No Misrepresentation or
Breach of Representations, Warranties and Covenants. There shall have
been no breach by Seller in the performance of any of its covenants and
agreements herein; each of the representations and warranties of Seller
contained or referred to herein shall be true and correct in all material
respects on the Closing Date as though made on the Closing Date, except for
changes therein specifically permitted by this Agreement or resulting from any
transaction expressly consented to in writing by Buyer; and there shall have
been delivered to the Buyer a certificate or certificates to that effect, dated
the Closing Date, signed by Seller, by its President.

     

    (b)           Corporate Action.
Seller shall have taken all corporate action necessary to approve the
transactions contemplated by this Agreement, and Seller shall have finished
Buyer with certified copies of the resolutions adopted by the Board of Directors
and the Sole Shareholder of Seller, in form and substance reasonably
satisfactory to counsel for the Buyer, in connection with such
transactions.

     

    (c)           No Restraint or
Litigation. No action, suit, investigation or proceeding shall have been
instituted or threatened by any third party, governmental or regulatory agency
to restrain, prohibit or otherwise challenge the legality or validity of the
transactions contemplated hereby.

     

    (d)           Acquisition Review.
Buyer shall have been satisfied, in its own discretion, with its Acquisition
Review.

     

    (e)           Other Documentation.
Buyer shall have received all of the documents and showings required to be
delivered by the Seller at the Closing pursuant to section 4(B).

     

    
      	
              10.

            	
              Mutual
      Indemnification.

            

    

     

    a.           Seller
will indemnify and hold the Buyer, and its shareholders, directors, officers,
employees and agents, harmless from and against any and all claims, suits,
actions, judgments, liability, losses, damages, fines, penalties, costs and
expenses, including without limitation, reasonable attorneys' fees and costs
arising out of or relating to any event, condition, contract, obligation, act,
omission, non-fulfillment, liability, breach, inaccuracy or non-fulfillment of
any representation, warranty, covenant or agreement with respect to any of the
terms of this Agreement..Seller acknowledge that Buyer may withhold from and
offset any payments due under the Note by the amount due Buyer under this
section.

     

    b.           Buyer
will indemnify and hold harmless the Seller, and its and agents, from and
against any and all claims, suits, actions, judgments, liability, losses,
damages, fines, penalties, costs and expenses, including without limitation,
reasonable attorneys' fees and costs arising out of or relating to any event,
condition, contract, obligation, act, omission, non-fulfillment, liability,
breach or misrepresentation of warranty, representation, covenant or agreement
with respect to any of the terms of this Agreement.

     

    11.           Other
Provisions.

     

    a.           All
notices for which provision is made in this Agreement shall be given in writing
either by actual delivery of the notice into the hands of the party entitled to
the notice or by mailing the notice by registered or certified mail, return
receipt requested, in which case the notice shall be deemed to be given on the
date of its mailing, addressed to the addresses as set forth in the
preamble

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    b           The
terms and provisions hereof shall inure to the benefit of and be binding upon
the undersigned and each of them and their respective successors and
assigns

     

    c.           The
invalidity or unenforceability of any of the provisions hereof shall not affect
the validity or enforceability of the remainder hereof.

     

    d.           This
Agreement together with all of the Exhibits, Schedules and other documents
referred to herein constitutes the entire Agreement between the Parties with
reference to the subject matter hereof and supersedes all prior agreements and
understandings, whether written or oral, regarding the subject matter hereof,
and may only be changed or modified in writing.

     

    e.           All
of the representations, warranties, covenants, agreements, terms and provisions
of this Agreement shall survive the Closing Date. This Agreement is intended to
be performed in the State of Florida and shall be governed by and construed and
enforced in accordance with the internal laws of Florida without regard to
conflicts of laws principals. This Agreement is intended for the benefit of the
Parties and is not intended to benefit any third party.

     

    IN
WITNESS WHEREOF, the Parties have executed this Agreement, as of the date and
year first above written.

     

    
      	BUYER:	 
	BLUE EARTH
      SOLUTIONS, INC.
	 	 
	By:	/s/
      Paul Slusarczyk
	 	 
	SELLER:	 
	 	 
	/s/
      Claudia Iovino
	CLAUDIA
    IOVINO
	 	 
	/s/
      Nicholas Iovino
	NICHOLAS
      IOVINO
	 	 
	PARLIAMENT
      CONSULTING, LLC
	 	 
	By:	/s/
      Harvey Katz
	 	 
	Its	Managing
      Member

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      SCHEDULE
"A"

       

      Patents, Organizations and
Certifications:

       

      Patents
Method of Recycling Polystyrene Foams which are subject to vapors using terpines
and or isopronals

       

       

       

      
        	 	#5,223,543         6-13-93
	 	 
	
                Methods
      of Reducing Polystyrene Foams Using Dibasic Esters

              	
                #
      6,743,828 B1   6-01-04

              
	 	 
	      
      Continuation of Above Patent (additional applications)	#
      7,241,858.B2   7-10-07
	 	 
	      
      Method and Compositions of the treatment of Viral Infections	#20005044834   
      7-25-07
	 	 
	Methods
      of Reducing Polystyrene Foams Using Dibasic Esters with
      Extruders    	#7,321,003         
      1-22-08
	 	 
	Patent
      Pending Methods of Reducing Polystyrene Using Low Vapor Dibasic
      Esters	 
	 	 
	      
      Tire Treatment Composition and Delivery System	 

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    Addendum
to the Asset Purchase Agreement

     

    This
Addendum to the Asset Purchase Agreement of February 14th, 2008
between BLUE EARTH SOLUTIONS, INC. and PARLIAMENT CONSULTING, LLC AND CLAUDIA
AND NICHOLAS IOVINO (“Addendum”) is made and entered into as of the 25TH day of
February, 2008, by and between BLUE EARTH SOLUTIONS, INC., a
Delaware corporation (“Buyer”), 8306 Tibet Butler Drive, Windermere, Florida
34786 and TRANS GLOBAL
CHEMICAL, LLC, a Florida Limited Liability Company, 1885 SW 4th Ave.
Delray Beach, Fl 33444, INTERNATIONAL FOAM SOLUTIONS,
INC. (NV) 1885 SW 4th Ave.
Delray Beach, Fl 33444, PARLIAMENT HOLDINGS,
LLC  1885 SW 4th Ave.
Delray Beach, Fl 33444, HARVEY
KATZ, 1885 SW 4th Ave.
Delray Beach, Fl 33444 and CLAUDIA IOVINO, 6364
Amberwoods Drive, Boca Raton, Florida 33433 (collectively “SELLER”) (the parties to this
Addendum are hereinafter referred to as the “PARTIES”).

     

    In
consideration of the mutual promises and covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged and agreed, the Parties covenant and agree as
follows:

     

    
      	
              A.  

            	
              Seller
      owns all right, title and interest in, and markets for sale, (i) a
      trademarked flat tire repair compound, known as Tire Muscle®, (ii)
      technology relating to a silver, bronze, chrome, copper, and brass plating
      and polishing compounds known as NuSilver, NuBronze, NuChrome, NuCopper
      and NuBrass, (iii) an odor removal compound known as Dumpster EaseTM and Diaper
      EaseTM, and (iv) other technologies (collectively, the
      “Technologies”);

            

    

     

    
      	
              B.  

            	
              The
      Parties meant to include the Technologies on Schedule A to the Asset
      Purchase Agreement of February 14th,
      2008 between BLUE EARTH SOLUTIONS, INC. and PARLIAMENT CONSULTING, LLC AND
      CLAUDIA AND NICHOLAS IOVINO (the “Asset Purchase Agreement”) as assets to
      be transferred to Buyer from Seller, but inadvertently failed to do
      so;

            

    

     

    
      	
              C.  

            	
              The
      Parties meant to include as Sellers pursuant to the Asset Purchase
      Agreement, each of Trans Global Chemical, LLC, International Foam
      Solutions, Inc., Parliament Holdings, LLC, and Harvey Katz, but
      inadvertently failed to do so; and

            

    

     

    
      	
              D.  

            	
              The
      Parties now mean to correct such errors by reason of this Addendum and
      hereby amend the Asset Purchase Agreement to include each of the
      undersigned as parties thereto and further to include, as assets
      transferred by Seller to Buyer thereby and effective as of February 14,
      2008, all right, title and interest in the Technologies, including but not
      limited to all intellectual rights to the Technologies whether covered by
      patents, patent applications, trade secrets, trademarks, trade names,
      service marks, proprietary data or otherwise, and Buyer desires to
      purchase the Technologies on the terms and subject to the conditions as
      set forth in the Asset Purchase
Agreement.

            

    

     

     

    [signature
page to follow]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
      	
              BUYER

              
                Blue
      Earth Solutions, Inc.

                 

              

              Authorized
      Signature

              /s/ Patricia
      Cohen

            	 
      
	
              SELLER

              
                Parliament
      Consulting LLC

                 

                 

              

              Authorized
      Signature
/s/ Harvey
      Katz

            	
              SELLER

              
                Parliament
      Holdings LLC

                 

                 

              

              Authorized
      Signature

              /s/ Harvey
      Katz

            
	
              SELLER

              
                Trans
      Global Chemical, LLC

                 

                 

              

              Authorized
      Signature

              /s/ Harvey
      Katz

            	
              SELLER

              
                International
      Foam Solutions, Inc.

                 

                 

              

              Authorized
      Signature

              /s/ Harvey
      Katz

            
	
              SELLER

              
                 

                 

              

              Harvey
      Katz
/s/ Harvey
      Katz

            	
              SELLER

              
                 

                 

              

              Claudia
      Iovino
/s/ Claudia
      Iovino

            
	
              SELLER

              
                 

                 

                Nicolas
      Iovino

                /s/ Nicholas
      Iovino

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]