Document:

Exhibit 10.2

    
      

    

    EXHIBIT
      10.2 

    

    RESTRICTED
      STOCK RIGHTS AWARD AGREEMENT

    PNM
      RESOURCES, INC.

    OMNIBUS
      PERFORMANCE EQUITY PLAN

    

    

    PNM
      Resources, Inc., a New Mexico corporation, (“PNMR”
or
      the
      “Company”) hereby awards to «Name»
      (the
“Grantee”), a Participant in the PNM Resources, Inc. Omnibus Performance Equity
      Plan (the “Plan”), as it may be amended, a Restricted Stock Rights Award (the
“Award”) for the number of shares of Common Stock of the Company (“Stock”) noted
      below. The grant is made effective as of the 14th day of February,
      20056
      (the
“Grant Date”).

     

    Capitalized
      terms used in this Restricted Stock Rights Award Agreement (the “Agreement”) and
      not otherwise defined herein shall have the meanings given to such terms in
      the
      Plan.

     

    1.  Grant.
      Grantee
      is hereby granted a Restricted Stock Rights Award for «Restricted_Stock_Rights_»
      shares
      of Stock. This Award is granted pursuant to the Plan, the terms of which are
      hereby incorporated by reference.

     

    2.  Vesting.

     

    (a) Except
      as
      set forth below, these
      Restricted Stock Rights
      shall
      vest in the following manner: (i)
      on
      the
      first
      anniversary of the Grant Date, 33%; (ii)
      on
      the
      second anniversary of the Grant Date, 67%;
      and
      (ii)
      on
      the
      third
      anniversary of the Grant Date, 100%.

     

    (b) Upon
      the
      termination of the Grantee’s employment due to death, Disability, Retirement, or
      Impaction, the Grantee’s nonvested Restricted Stock Rights shall vest as
      described in Section 12.1(a)(ii) of the Plan.

     

    (c) Upon
      a
      Change in Control, the Grantee’s nonvested Restricted Stock Rights shall fully
      vest.

     

    (d) Upon
      the
      involuntary or voluntary termination of employment of Grantee for any reason
      other than those set forth in Subparagraphs (b) and (c) above, the Restricted
      Stock Rights, if not previously vested, shall be canceled and forfeited
      immediately.

     

    (e) Upon
      termination of employment with the Company for Cause, all nonvested Restricted
      Stock Rights shall be terminated and forfeited immediately.

     

    3.  Form
      and Timing of Delivery of Certificate.
      Within
      an administratively reasonable period of time following the lapse of
      restrictions and after satisfaction of all applicable withholding requirements,
      the Grantee shall receive a stock certificate evidencing Grantee’s ownership of
      the shares.

     

    4.  Adjustments.
      Neither
      the existence of the Plan nor this Award shall affect, in any way, the right
      or
      power of the Company to make or authorize: any or all adjustments,
      recapitalizations, reorganizations, or other changes in the Company’s capital
      structure or its 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    business;
      or any merger or consolidation of the Company; or the dissolution or liquidation
      of the Company; or any sale or transfer of all or any part of its assets or
      business; or any corporate act or proceeding, whether of a similar character
      or
      otherwise; all of which, and the resulting adjustments in, or impact on, the
      Award are more fully defined in Section 5.3 of the Plan.

     

    5.  Withholding
      and Deductions.
      In
      accordance with Sections 17.1 and 17.2 of the Plan, the Company may
      withhold, or require Grantee to remit to the Company, an amount sufficient
      to
      satisfy any federal, state or local withholding tax requirements.

     

    6.  Dividend
      Equivalents.
      During
      the Restricted Period, the Grantee will be entitled to receive a dividend
      equivalent for each nonvested Restricted Stock Right. The dividend equivalent
      will be paid in cash at the same time as cash dividends are paid to shareholders
      of record and will be subject to all applicable withholding requirements. The
      amount of the dividend equivalent for each nonvested Restricted Stock Right
      will
      equal the cash dividend paid on one share of Stock.

     

    7.  Compliance
      with Exchange Act.
      If the
      Grantee is subject to Section 16 of the Exchange Act, Restricted Stock Rights
      granted pursuant to this Award are intended to comply with all applicable
      conditions of Rule 16b-3 or its successors under the Exchange Act.

     

    8.  Non-Assignability.
      The
      Award and Grantee’s rights under this Agreement shall not be transferable other
      than by will or by the laws of descent and distribution. The Restricted Stock
      Rights are otherwise non-assignable. (See Section 13 of the Plan). The terms
      hereof shall be binding on the executors, administrators, heirs and successors
      of the Grantee.

     

    9.  Voting
      Rights.
      During
      the Restricted Period, the Grantee will have no voting rights with respect
      to
      nonvested Restricted Stock Rights. 

     

    10.  Grantee
      Representation.
      As a
      condition to the receipt of any shares of Stock hereunder, the Company may
      require a representation from the Grantee that the Stock is being acquired
      only
      for investment purposes and without any present intention to sell or distribute
      such shares.

     

    11.  Tax
      Issues.
      Pursuant to Section 83 of the Internal Revenue Code of 1986 (the “Code”)
      the value of the shares of Stock received by Grantee will be taxed as ordinary
      income as of the date the restrictions lapse (i.e.,
      as they
      vest). Grantee understands that Grantee may elect to be taxed as of the Grant
      Date, rather than as the Restricted Stock Rights vest, by filing an election
      under Section 83(b) of the Code with the Internal Revenue Service within 30
      days of the Grant Date. The Grantee acknowledges that Grantee should consult
      a
      tax advisor regarding the consequences of this Award and whether or not to
      file
      an election under Section 83(b) of the Code. The Grantee also acknowledges
      that
      the dividend equivalents represent taxable compensation income and are subject
      to applicable withholding and employment taxes.

     

    12.  Employment
      Agreement.
      Notwithstanding anything to the contrary contained in this Agreement, (a)
      neither the Plan nor this Agreement is intended to create an express or implied
      contract of employment for a specified term between the Grantee and the Company
      and 

     

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      unless otherwise expressed or provided, in writing, by an authorized officer,
      the employment relationship between the Grantee and the Company shall be defined
      as “employment at will” wherein either party, without prior notice, may
      terminate the relationship with or without cause.

     

    13.  Regulatory
      Approvals and Listing.
      The
      Company shall not be required to issue any certificate for shares of Stock
      upon
      the vesting of Restricted Stock Rights granted under this Agreement prior to
      satisfying any regulatory approval, registration, qualification or other
      requirements of the Securities and Exchange Commission, the Internal Revenue
      Service or any other governmental agency which the Committee, in its sole
      discretion, shall determine to be necessary or advisable. (See Section 19.1
      of
      the Plan). 

     

    14.  Administration.
      This
      Agreement shall at all times be subject to the terms and conditions of the
      Plan
      and the Plan shall in all respects be administered by the Committee in
      accordance with the terms of and as provided in the Plan. The Committee shall
      have the sole and complete discretion with respect to the interpretation of
      this
      Agreement and the Plan, and all matters reserved to it by the Plan. The
      decisions of the majority of the Committee with respect thereto and to this
      Agreement shall be final and binding upon Grantee and the Company. In the event
      of any conflict between the terms and conditions of this Agreement and the
      Plan,
      the provisions of the Plan shall control

     

    15.  Waiver
      and Modification.
      The
      provisions of this Agreement may not be waived or modified unless such waiver
      or
      modification is in writing signed by the Company. 

     

    16.  Validity
      and Construction.
      The
      validity and construction of this Award shall be governed by the laws of the
      State of New Mexico.

     

    MANY
      OF THE PROVISIONS OF THIS AWARD AGREEMENT
      ARE
      SUMMARIES OF SIMILAR PERTINENT PROVISIONS OF THE PLAN. TO THE EXTENT THIS
      AGREEMENT IS SILENT ON
      AN ISSUE OR THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN
      PROVISIONS SHALL CONTROL.

     

    IN
      WITNESS WHEREOF, the Company has caused this Restricted Stock Rights Award
      Agreement to be executed, effective as of February 14, 20056.

     

    PNM
      RESOURCES, INC. 

    

    

    By :  
      /s/ JEFFRY E. STERBA 

      JEFFRY
      E. STERBA

      Chairman,
      President
      and Chief Executive Officer

    

    

     

    Grantee

     

     

                    
                  
3Exhibit 10.1

    
      

    

    

    ASSET
      PURCHASE AGREEMENT

    

    This
      ASSET PURCHASE AGREEMENT (the “Agreement”)
      is
      made and entered into as of 12:01 a.m. on February 13, 2006 (the “Effective
      Time”),
      by
      and between Bluestar Health, Inc.,
      a
      Colorado corporation maintaining
      an address at 19901 Southwest Freeway, Sugar Land, TX 77479 (“Bluestar”)
      and
      Bluestar Acquisition, Inc., a Texas corporation and a subsidiary of Bluestar
      (the “Purchaser”),
      on
      the one hand, and Gold Leaf Homes, Inc., a Texas corporation maintaining
      business offices at 5802 FM 1488, Magnolia, TX 77354, (“Seller”)
      and
Tom
      Redmon
      (the
“Shareholder”)
      (hereinafter the Seller and the Shareholder are sometimes referred to,
      individually as a “Seller
      Party”
and
      collectively as the “Seller
      Parties”),
      on
      the other hand.

     

    BACKGROUND
      INFORMATION

     

    Seller
      is
      in the business of building custom homes (the “Business”),
      and
      the Shareholder is the owner of all of the capital stock in Seller. This
      Agreement sets forth the terms and conditions upon which Purchaser is acquiring
      from Seller, and Seller is selling and delivering to Purchaser, certain assets
      of the Business.

    

    OPERATIVE
      PROVISIONS

    

    In
      consideration of the mutual covenants and conditions hereinafter set forth,
      and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, Seller, the Shareholder and Purchaser hereby mutually
      agree
      as follows:

    

    1.    SALE
      AND TRANSFER OF ASSETS; CLOSING.

    

    1.1.    Assets.
      Upon
      the terms and subject to the conditions set forth in this Agreement, at the
      Closing (hereinafter defined), Seller shall sell, convey, assign, transfer
      and
      deliver to Purchaser, and Purchaser shall purchase and acquire from Seller,
      all
      of Sellers’ right, title, and interest in and to certain of Seller’s property
      and assets, real, personal or mixed, tangible and intangible, of every kind
      and
      description, wherever located as specifically set forth on Exhibit
      A
      (the
“Assets”),
      but
      excluding the Excluded Assets (hereinafter defined). Notwithstanding anything
      herein to the contrary, the transfer of the Assets pursuant to this Agreement
      will remain subject to the Security Interest presently held by each of the
      construction lenders listed in Exhibit
      B.
      

    

    1.2.    Excluded
      Assets.
      Notwithstanding anything to the contrary contained in Section 1.1 or elsewhere
      in this Agreement, the following assets of Seller (collectively, the
“Excluded
      Assets”)
      are
      not part of the sale and purchase contemplated hereunder, are excluded from
      the
      Assets and shall remain the property of Seller after the Effective
      Time.

    

    1.2.1    all
      minute books, stock records and corporate seals;

    

    1.2.2    any
      equity securities of Seller held in treasury;

    

    
      
        
          
          

        

        
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    1.2.3    all
      personnel records and other records that Seller is required by law to retain
      in
      its possession;

    

    1.2.4    all
      rights in connection with and assets of any employee benefit plans maintained
      by
      Seller;

    

    1.2.5    cash
      and
      bank deposits of Seller as of the Effective Time;

    

    1.2.6    all
      rights of Seller under this Agreement; and

    

    1.2.7    all
      assets, if any, specifically set forth on Schedule
      1.2.

    

    1.3.   Consideration.
      The
      consideration for the purchase of the Assets (the “Purchase
      Price”)
      will
      be Thirty
      Seven Million (37,000,000) shares of Purchaser’s common stock (the “Shares”).

    

    1.4.   Liabilities.
      At the
      Closing, Purchaser shall assume and agree to discharge only the obligations
      of
      Seller set forth in Exhibit
      B
      (the
“Assumed
      Liabilities”).
      Except for the Assumed Liabilities, Purchaser shall not assume any Liabilities
      of Seller or the Shareholder; and Seller shall pay, perform and discharge all
      of
      such Liabilities in accordance with their terms. For purposes of this Agreement,
      the term “Liabilities”
means
      any existing or future liability, obligation, debt, account payable, lease
      obligation, contract, agreement, duty or commitment of Seller or Shareholder
      of
      any kind, character or description, whether known or unknown, absolute or
      contingent, accrued or unaccrued, disputed or undisputed, liquidated or
      unliquidated, secured or unsecured, joint or several, due or to become due,
      vested or unvested, executory, determined, determinable or otherwise, and
      whether or not the same is required to be accrued on the financial statements
      of
      Seller or the Shareholder.

    

    1.5.   Closing.
      The
      closing (the “Closing”)
      of the
      transactions contemplated by this Agreement (the “Contemplated
      Transactions”)
      shall
      take place at the offices of the Purchaser on February 13, 2006, (the
“Closing
      Date”)
      or at
      such other time and place as the parties shall agree. At
      the
      Closing the parties shall deliver the following documents:

    

    1.5.1   Selling
      Parties’ Deliveries at the Closing.
      Seller
      and the Shareholder shall deliver to Purchaser at the Closing the following
      items:

    

    
      	 	
              (i)

            	
              a
                Bill of Sale from Seller to Purchaser in form and substance acceptable
                to
                Purchaser;

            

    

    

    
      	 	
              (ii)

            	
              a
                copy of the resolutions duly adopted by Seller’s Board of Directors and
                Shareholder authorizing the execution, delivery, and performance
                of this
                Agreement and the consummation of the Contemplated Transactions,
                certified
                by an officer of Seller;

            

    

    

    
      
        
          
          

        

        
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              (iii)

            	
              unaudited
                financial statements and management reports for each monthly financial
                period subsequent to December 31, 2005 and prior to the Effective
                Time;

            

    

    

    
      	 	
              (iv)

            	
              evidence
                that any and all security interests covering the Assets have been
                released
                by Seller’s lenders or transferred to Purchaser;
                

            

    

    

    
      	 	
              (v)

            	
              a
                signed copy of that certain Transitional Agreement dated February
                13, 2006
                (the “Transitional
                Agreement”),
                a copy of which is attached hereto as Exhibit
                C;
                and

            

    

    

    
      	 	
              (vi)

            	
              all
                other documents or instruments required by this Agreement or reasonably
                required by Purchaser’s counsel to consummate the Contemplated
                Transactions.

            

    

    

    1.5.2   Purchaser’s
      Deliveries at the Closing.
      At the
      Closing, or as otherwise set forth below, Purchaser shall deliver the
      following:

     

    
      1.5.2.1  Purchaser
        shall deliver to Seller:

      
         

        
          (i)  a
            copy of
            the resolutions duly adopted by the Board of Directors of Purchaser authorizing
            the execution, delivery, and performance of this Agreement and the consummation
            of  the  Contemplated Transactions, certified by an officer of
            Purchaser; and

           

        

        (ii)  all
          other
          documents or instruments required by this Agreement or reasonably required
          by
          Purchaser’s counsel to consummate the Contemplated
          Transactions.

      

    

     

    
      1.5.2.2  Purchaser
        shall deliver the Shares to The Lebrecht Group, APLC (the “Escrow
        Agent”a)
        to be
        distributed pursuant to that certain Escrow Agreement dated as of the Closing
        Date (the “Escrow
        Agreement”),
        a
        copy of which is attached hereto as Exhibit
        D.

       

    

    2.    REPRESENTATIONS
      AND WARRANTIES OF THE SELLER PARTIES.
      The
      Seller Parties, jointly and severally, represent and warrant to Purchaser as
      follows, which representations and warranties shall survive the consummation
      of
      the Contemplated Transactions:

    

    
      
        
          
          

        

        
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    2.1.    Organization;
      Power; Authority.
      Seller
      is
      a corporation duly organized, validly existing, and in good standing under
      the
      laws of the State of Texas, with full power and authority to carry
      on
      the Business as now being conducted and to own, operate and lease (as the case
      may be) the Assets
      and to
      perform all of its obligations. Seller
      has the corporate power and authority to sell, assign, transfer, convey and
      deliver to Purchaser the Assets as contemplated by this Agreement, and the
      execution, delivery and performance of this Agreement and the Contemplated
      Transactions have been properly and duly authorized by Seller. Shareholder
      has
      the authority to enter into this Agreement and consummate the Contemplated
      Transactions. This Agreement and all other agreements executed in connection
      with the Contemplated Transactions constitute, or will constitute upon
      execution, the legal, valid and binding obligations of Seller and Shareholder,
      enforceable in accordance with their respective terms.

    

    2.2.    No
      Conflict or Violation;
      Approvals.
      The
      execution, delivery and performance of this Agreement and the Contemplated
      Transactions will not (a) violate or conflict with Seller’s articles of
      incorporation or by-laws; (b) cause a breach of, or a default under, or create
      any right for any party to accelerate, terminate, modify or require notice
      under
      or cancel, any contract, permit, authorization or concession that Seller or
      the
      Shareholder is a party or by which any of the Assets are bound; (c) violate
      by
      Seller or Shareholder any law, rule, regulation, constitution, injunction,
      judgment, order, decree, ruling or other restriction of any government,
      government agency or court; or (d) impose any encumbrance, restriction or charge
      on the Business or on any of the Assets. No consent, approval or authorization
      of, or declaration, filing or registration with, any authority, or any other
      person or entity, is required to be made or obtained by Seller or Shareholder
      in
      connection with the execution, delivery and performance of the Agreement and
      the
      Contemplated Transactions, except
      as
      have been received by Seller or Shareholder prior to the Closing.

    

    2.3.    Capitalization.
      The
      Shareholder owns 100% of the outstanding capital stock of Seller free and clear
      of all encumbrances. No other person has a contract right, whether by issuance,
      sale, transfer, or otherwise to any capital stock of Seller. Seller has no
      subsidiaries.

    

    2.4.    Financial
      Statements.
      Seller
      has delivered to the Purchaser complete and correct copies of audited financial
      statements of Seller for the periods ended as of December 31, 2004 and December
      31, 2005 (the “Financial
      Statements”).
      The
      Financial Statements were prepared in accordance with GAAP consistently applied
      throughout the periods indicated; are consistent with the books and records
      of
      the Business; and present fairly the financial condition and results of
      operations of the Business as of the date thereof and the period then ended.
      There has not been any change in the assets, liabilities, financial condition
      or
      operations of Seller from that reflected in the Financial Statements for the
      period ending as of the Closing Date, except changes in the ordinary course
      of
      business that have not been, individually or in the aggregate, materially
      adverse. Except to the extent reflected or reserved against or noted in the
      Financial Statements, Seller had, as of the date thereof, no material
      liabilities or obligations of any nature, whether accrued, absolute, contingent
      or otherwise, including without limitation tax liabilities, whether incurred
      in
      respect to or measured by Seller’s income for any period prior to the date of
      such Financial Statements, or arising out of transactions entered into, or
      any
      set of facts existing prior thereto. There exists no basis for the assertion
      against Seller or the Business as of the date hereof or as of the date of the
      Financial Statements, of any material liability of any nature or in any amount
      not fully reflected or reserved against or noted in the Financial
      Statements.

    

    
      
        
          
          

        

        
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    2.5.    Title.
      Seller
      has good and marketable title to all of the Assets, free and clear of all liens,
      assignments, security interests, claims, mortgages, encumbrances or charges
      of
      any kind or nature (“Liens”).
      As of
      the Closing Date, Purchaser shall acquire good and marketable title to all
      of
      the Assets free and clear of all Liens, except those set forth in Exhibit
      B.
      The
      Assets constitute all of the assets (tangible and intangible, and including,
      but
      not limited to, all intellectual property assets) necessary to operate the
      Business in the manner presently operated by Sellers and
      each of
      the Assets is in good operating condition and repair, normal wear and tear
      excepted. Without
      limitation the Assets include all of Seller’s right, title, and interest in and
      to the following (in each case except for the Excluded Assets), wherever
      located:

     

    2.5.1    All
      of
Seller’s
      office equipment and furniture (collectively,
      the “Equipment”),
      including, without limitation, the Equipment disclosed in Exhibit
      A.

    

    2.5.2    All
      inventories of Seller and all goods and supplies, in each case to the extent
      used directly or indirectly in or otherwise relating primarily to the Business
      (the “Inventory”).
      All
      items included in the Inventory consist of a quality and quantity usable and,
      with respect to finished goods, saleable, in the ordinary course of business
      of
      Seller except for obsolete items and items of below-standard quality, all of
      which have been written off or written down to net realizable value in the
      Financial Statements, as the case may be.

    

    2.6   Material
      Contracts.
      Other
      than as set forth in Schedule
      2.6,
      Seller
      is not a party to any contract under which Seller paid (a)
      $10,000 or more during the 12 month period ending December 31, 2005, (b)
      received $10,000 or more during the 12 month period ending December 31, 2005,
      or
      (c) would, absent this Agreement and the Contemplated Transactions, reasonably
      expect to pay or receive $10,000 or more for the 12 month period immediately
      following the Closing Date.
      Neither
      the Seller nor the Shareholder is subject to any contract: (i) that contains
      covenants limiting the freedom of Seller or the Shareholder to compete in any
      line of business in any geographic area; (ii) that requires Seller to share
      any
      profits, or requires any payments or other distributions based on profits,
      revenues or cash flows; (iii) pursuant to which third parties have been provided
      with products that can be returned to Seller in the event they are not sold
      and
      which could involve products valued at $10,000 or more (invoice price) in the
      aggregate; or (iv) that has had or, assuming that Purchaser complies with its
      obligations thereunder, may in the future have a material adverse effect upon
      the business, earnings, financial condition, or prospects of
      Purchaser.

    

    2.7   Litigation.
      There
      are no claims, actions, suits, proceedings or investigations pending or, to
      the
      knowledge of the Seller Parties, threatened against or affecting the Assets
      or
      the operation of the Business before any foreign, federal, state, local or
      other
      governmental authority or agency, or involving any private parties.

    

    
      
        
          
          

        

        
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    2.8    
Compliance
      with Laws.
      The
      operation of the Business and the Assets conform to the requirements of all
      applicable laws, rules, orders, ordinances, decrees and regulations of all
      governmental agencies, whether national, state or local, having jurisdiction
      there-over, and no material claim alleging nonconformity or noncompliance with
      respect to such matters has been made or threatened against Seller and/or the
      Assets or, to the Sellers’ Parties knowledge, may in the foreseeable future be
      made by any such agency.

    

    2.9    
Employee
      Benefit Plans.
      Seller
      has no formal or informal health, dental, vision, life, retirement, profit
      sharing, deferred compensation, pension, stock options, sick leave or sick
      time
      employee benefit plans in effect.

    

    2.10   Employee
      Matters.

    

     
      2.10.1   List
      of Personnel.
      Schedule
      2.10.1
      contains
      a true and complete list of the names and current compensation levels of all
      active employees involved in the Business as of the date hereof. Since December
      31, 2005, there has been no increase in the compensation of the employees of
      Seller.

    

     
      2.10.2   Employee
      Relations.
      There
      is no labor strike, dispute, slowdown, stoppage, similar activity pending or,
      to
      the knowledge of the Seller Parties, threatened against Seller pertaining to
      the
      Business or the employees involved in the Business. There are no charges,
      investigations, administrative proceedings, or formal complaints of
      discrimination (including discrimination based upon sex, age, marital status,
      race, national origin, sexual preference, handicap or veteran status) pending
      or, to the knowledge of the Seller Parties, threatened before the Equal
      Employment Opportunity Commission or any federal, state, or local agency or
      court against Seller or the Shareholder pertaining to the Business or the
      employees of the Business, and, to the knowledge of the Seller Parties, no
      basis
      for any such charge, investigation, administrative proceeding, or complaint
      exists.

    

     
      2.10.3   No
      Liabilities or Obligations.
      Except
      as reflected on the Financial Statements Seller has no liabilities or
      obligations to any beneficiaries, governmental authorities, or any other parties
      arising out of or relating to any employee claims.

    

     
      2.10.4   Worker’s
      Compensation Insurance Coverage and Claims.. Seller
      has in full force and effect worker’s compensation coverage in each jurisdiction
      in which Seller is required to maintain such coverage by applicable state law.
      Seller has paid or accrued all workers’ compensation premiums required to be
      paid in each jurisdiction in which Seller is required to maintain such coverage
      by applicable state law.

     

    
      
        2.11        
          Taxes.
          The
          Seller Parties have filed all required tax returns in connection with the
          Assets
          and the operation of the Business. All tax returns filed by Seller or the
          Shareholder in connection with the Assets and the operation of the Business
          are
          true, correct, and complete. The Seller Parties have paid, or made provision
          for
          the payment of, all taxes that have or may have become due pursuant to
          tax
          returns that are or were required to be filed by Seller or the
          Shareholder in connection with the Assets and the operation of the Business,
          or
          pursuant to any assessment received by Seller or the Shareholder. There
          exists
          no proposed tax assessment against Seller or any shareholder of the Seller
          in
          connection with the Assets and the operation of the Business. All taxes
          that
          Seller or the Shareholder is required to withhold or collect in connection
          with
          the operation of the Assets and the Business have been duly withheld or
          collected and, to the extent required, have been paid to the proper governmental
          body or other person.

      

    

     

    
      
        
          
          

        

        
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      2.12        
        Environmental
        Matters.
        Seller
        has duly complied with, and the Business and all Assets are in compliance
        in all
        Environmental Laws (hereinafter defined); there have been no citations, notices
        or orders of noncompliance issued to Seller under any such Environmental
        Laws.
        For the purposes of this Agreement, “Environmental
        Law”
means
        any applicable law, order, regulation, decree, permit, license, ordinance
        or
        other federal. State, county, provincial, local or foreign governmental
        requirements in effect as of the Closing Date relating to pollution, the
        protection of human health and the environment, or the spill of any hazardous
        substance in the environment. Environmental laws include, but are not limited
        to, the following statutes (and their implementing regulations);Comprehensive
        Environmental Response, compensation and Liability Act (42 U.S.C. 9601, et
        seq.), the Resource Conservation and Recovery Act (42 U.S.C. 6901, et seq.),
        the
        Federal Water Pollution Control Act (33 U.S.C. 1251, et seq.), the clean
        Air Act
        (42 U.S.C. 7401, et seq.), the Toxic Substance Control Act (15 U.S.C. 2601,
        et
        seq.), the Emergency Planning Community Right to Know Act (42 U.S.C. 11001,
        et
        seq.), and the Occupational Safety and Health Act of 1970. “Hazardous
        Substance”
means
        any petroleum, petroleum by-products, polychlorinated biphenyl and any other
        chemicals, materials, substances or wastes which are currently defined or
        regulated as "hazardous substances, "hazardous materials," "hazardous wastes,"
        "extremely hazardous wastes," "restricted hazardous wasted," "toxic substances,"
        "toxic pollutants," "toxic air pollutants," "hazardous air pollutants,"
        "pollutants," or "contaminants" under any Environmental Law.

      

      2.13         
        Broker’s
        or Finder’s Fees.
        Neither
        of the Seller
        Parties has incurred, nor will either of them incur, directly or indirectly,
        any
        liability for brokerage or finders’ fees or any similar charges in connection
        with this Agreement or the Contemplated Transactions.

      

      2.14   Material
        Misstatements or Omissions.
        No
        representations or warranties by the Seller Parties in this Agreement, nor
        any
        document, exhibit, statement, certificate or schedule furnished to Purchaser
        pursuant hereto, contains, or with respect to other documents to be delivered
        by
        the Seller Parties at Closing, will contain any untrue statement of a material
        fact, or omits to state any material fact necessary to make the statements
        or
        facts contained therein not misleading.

      

      2.15   Information;
        Suitability.
        The
        Seller Parties, along with their advisors have such knowledge and experience
        in
        financial and business matters that the Seller Parties are capable of evaluating
        the merits and risks of the Purchase Price consideration and the Contemplated
        Transactions. The Seller Parties are aware that The Lebrecht Group has
        represented only the interests of Purchaser in connection with this Agreement
        and the Contemplated Transactions and the Seller Parties have sought such
        accounting, legal and tax advice as the Seller Parties have considered necessary
        to make an informed decision with respect to the Contemplated Transactions
        and
        have determined that the Purchase Price Consideration and other terms and
        conditions of the Contemplated Transaction are fair and reasonable to the
        Seller
        Parties.

       

    

    
      
        
          
          

        

        
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      2.16   Intention.
        The
        Seller Parties have not entered into this Agreement or agreed to complete
        the
        Contemplated Transactions with the actual intent to hinder, delay, or defraud
        any creditor of the Seller Parties.

      

      2.17   Value
        of Assets.
        The
        Seller Parties have received reasonably equivalent value in exchange for
        the
        obligations to be undertaken pursuant to the Contemplated Transactions. Giving
        effect to the Contemplated Transactions, the fair market value of the Seller’s
        assets exceeds the Sellers’ total liabilities, whether accrued, absolute,
        contingent or otherwise. The Seller’s assets do not and, immediately following
        the Contemplated Transactions, will not, constitute unreasonably small capital
        to carry out the Seller’s business as conducted or as proposed to be
        conducted.

      

      2.18   No
        Bankruptcy.
        No
        petition in bankruptcy has been filed against either the Seller or the
        Shareholder or any affiliate of either of them during the last seven years,
        and
        neither the Seller, the Shareholder nor any affiliate of either of them in
        the
        last seven years has ever made an assignment for the benefit of creditors
        or
        taken advantage of any insolvency act for the benefit of debtors. Neither
        the
        Seller Parties nor any affiliate of the Seller Parties is contemplating the
        filing of a petition under any state or federal bankruptcy or insolvency
        laws.
        None of the Seller Parties has any knowledge of any person contemplating
        the
        filing of any such petition against it or an affiliate of the Seller
        Parties.

      

      2.19   Restricted
        Shares.
        Seller
        acknowledges that the Shares are restricted securities under Rule 144 of
        the
        Securities Act of 1933, and, therefore, when issued by the Purchaser will
        contain a restrictive legend substantially similar to the
        following:

       

    

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER
      THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
      REGISTRATION IS NOT REQUIRED.

    

    
      
        
          
          

        

        
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    3.    REPRESENTATIONS
      AND WARRANTIES OF PURCHASER.
      Purchaser represents and warrants to the Seller Parties as follows:

    

    3.1  
Organization
      and Power.
      Purchaser is a duly organized and validly existing Colorado corporation.
      Purchaser has the power and authority to carry on its business as now being
      conducted and to own, operate and lease its properties in the places where
      such
      business is now conducted and where such properties are now owned, leased or
      operated.

     

    
      3.2    Authorization.
        The
        execution, delivery and performance of this Agreement by Purchaser and the
        consummation of the Contemplated Transactions by the Purchaser have been
        duly
        authorized by the Purchaser. This Agreement constitutes the legal, valid
        and
        binding obligation of Purchaser, enforceable in accordance with its
        terms.

      

      3.3    Broker’s
        or Finder’s Fees.
        Purchaser
        has not incurred, nor will it incur, directly or indirectly, any liability
        for
        brokerage or finders’ fees or any similar charges in connection with this
        Agreement or the Contemplated Transactions.

       

    

    4.    COVENANTS.

     

    
      4.1    Funds
        Received After Closing.
        Any and
        all funds received by Seller after the Closing in respect of the Business,
        other
        than amounts received in respect of the Excluded Assets, shall be remitted
        to
        the Purchaser immediately upon receipt. Any and all funds received by the
        Purchaser after Closing in respect of the Excluded Assets shall be remitted
        to
        the Sellers immediately upon receipt.

      

      4.2    Liabilities.
        All
        liabilities with respect to the operation of the Business not otherwise provided
        for herein which are paid or become payable after the Closing (hereinafter
        defined) shall be allocated between Purchaser and Seller according to the
        accounting period to which they relate. Items relating to a time prior to
        the
        Closing Date shall be paid by Seller and those relating to a time thereafter
        shall be paid by Purchaser. Obligations for taxes, rent, utilities, telephone
        service and other items which relate to a period prior to and after the Closing
        Date, will be prorated as of the Closing Date between Purchaser and Seller
        and
        adjusted between the parties as soon as possible after the invoices therefore
        are received.

      

      4.3    Certain
        Employment Related Matters.
        Prior
        to the Closing, Seller will terminate all of its employees and Purchaser
        shall
        have the right, but not the obligation, to hire any or all of such employees.
        Each such Employee that Purchaser elects to employ shall be employed by the
        Purchaser on an “at-will” basis and may be terminated at any time with or
        without cause.

    

     

    
      
        
          
          

        

        
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      4.4    Tax
        Matters.

       

    

    4.4.1   The
      Seller Parties
      shall pay all taxes of whatsoever kind or nature imposed by the United States
      or
      by any state, municipality, subdivision or instrumentality of the United States
      or by any other tax authority (including all applicable penalties and interest,
      "Taxes") arising from or relating to the Contemplated Transactions if any,
      due
      as a result of the purchase, sale or transfer of the Assets in accordance
      herewith whether imposed by law on the Seller Parties or the Purchaser, and
      the
      Seller Parties shall indemnify, reimburse and hold harmless the Purchaser in
      respect of the liability for payment of or failure to pay any such Taxes or
      the
      filing of or failure to file any reports required in connection
      therewith.

    

    4.4.2   The
      Seller Parties
      on the one hand, and Purchaser, on the other hand, agree to furnish or cause
      to
      be furnished to each other, upon request, such information and assistance
      (including access to books and records) relating to Seller and the Purchaser
      as
      is reasonably necessary for the preparation of any return, claim for refund
      or
      audit, and the prosecution or defense of any claim, suit or proceeding relating
      to any proposed adjustment. 

    

    5.    INDEMNIFICATION.

     

    
      5.1   Survival
        of Representations. Each representation, warranty, covenant and agreement
        made
        by any party within this Agreement or pursuant hereto shall survive the Closing
        forever. All statements contained herein and in any certificate, schedule,
        list
        and other document described pursuant hereto or in connection with the
        transactions contemplated hereby shall be deemed representations and warranties
        within the meaning of this Section.

      

      5.2   Indemnification
        Of Purchaser.
        Seller
        and the Shareholder, jointly and severally, shall indemnify and hold harmless
        Purchaser against and in respect of all demands, claims, actions, liabilities,
        damages, losses, judgments, assessments, costs and expenses (including without
        limitation interest, penalties and attorney fees) (individually a “Claim”
and
        collectively the “Claims”)
        asserted against, resulting to, imposed upon or incurred by Purchaser, directly
        or indirectly, and arising out of or resulting from (a) a breach of any
        representation, warranty, covenant or agreement made or to be performed by
        Seller or the Shareholder under this Agreement, (b) any requirement that
        Purchaser satisfy or perform any Liability of Seller or the Shareholder that
        is
        not an Assumed Liability, (c) any fraud or willful misconduct by the Seller
        or
        the Shareholder in connection with this Agreement or the Contemplated
        Transactions or (d) the conduct of the Business prior to the Closing
        Date.

    

    

    
      
        
          
          

        

        
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    5.3   Notification
      Purchaser if seeking indemnification hereunder shall hereinafter be referred
      to
      as the “Indemnified
      Party”
and
      Seller and the Shareholder shall hereinafter be referred to as the “Indemnifying
      Parties.”
The
      Indemnified Party shall, upon becoming aware or being put on notice of the
      existence of a Claim with respect to which the Indemnified Parties may be
      entitled to indemnification pursuant to this Section 5, promptly notify the
      Indemnifying Parties in writing of such matter. The failure of the Indemnified
      Party to notify the Indemnifying Parties of any Claim with respect to which
      the
      Indemnified Party may be entitled to indemnification hereunder will not relieve
      the Indemnifying Parties of any liability that it may have to the Indemnified
      Party except to the extent the Indemnifying Parties are materially prejudiced
      thereby; provided, that the Indemnified Party shall be deemed to have notified
      the Indemnifying Party by giving written notice of any such Claim to the Seller
      or the Shareholder.

    

    5.4   Settlement
      and Defense of Claims.
      Except
      as hereinafter provided, upon receiving notice thereof in accordance with the
      provisions of Section 5.3 hereof, the Indemnifying Parties shall have the right
      to settle at its own cost and expense all Claims which are susceptible of being
      settled or defended, and to defend, through counsel of its own choosing and
      at
      its own cost and expense, any third party action which may be brought in
      connection therewith; provided, that the Indemnifying Parties shall be required
      to keep the Indemnified Party fully and currently informed of all settlement
      negotiations and of the progress of any litigation; and provided further that
      the Indemnified Party shall have the right to fully participate in the defense
      or settlement of any Claim at its own expense, except for its reasonable
      attorneys fees which shall be paid by the Indemnifying Parties, if a third
      legal
      counsel chosen by the legal counsel of the Sellers and the Indemnified Party
      determines that: (a) there are or may be legal defenses available to such
      Indemnified Party that are different from or additional to those available
      to
      Indemnifying Parties and which could not be adequately advanced by counsel
      chosen by the Indemnified Party, or (b) a conflict or potential conflict
      exists between Indemnifying Parties and such Indemnified Party that would make
      such separate representation advisable. The Indemnifying Parties shall not,
      without the prior written consent of the Indemnified Party, which consent shall
      not unreasonably be withheld, settle or compromise or consent to the entry
      of
      any judgment in any pending or the threatened claim, action or proceeding to
      which such Indemnified Party is a party.

    

    5.5   Cooperation
      of Indemnified Party.
      The
      Indemnified Party shall cooperate with the Indemnifying Parties in connection
      with the settlement or defense of any Claim. In addition, except as hereinafter
      provided, the Indemnified Party shall not pay or voluntarily permit the
      determination of any Claim while the Indemnifying Party is negotiating the
      settlement thereof or litigating the Claim, except with the prior written
      consent of the Indemnifying Party.

    

    5.6   Assumption
      by Indemnified Party.
      Notwithstanding anything contained herein to the contrary, the Indemnified
      Party
      may, by releasing the Indemnifying Party from liability to him or it with
      respect to such Claim, take over and assume the settlement and defense of any
      Claim.

    

    5.7   Purchaser
      Indemnification.
      In no
      event shall the Purchaser have any liability whatsoever to the Seller Parties
      in
      connection with Section 5 of this Agreement or otherwise.

    

    
      
        
          
          

        

        
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    6.     General
      Provisions.

    

      6.1   Expenses.
        Each
        party shall pay its own legal, accounting and other expenses.

      

      6.2   Headings.
        Headings are for convenience and are not admissible as to
        construction.

      

      6.3   Notices.
        All
        notices or other communications required or permitted to be given pursuant
        to
        this Agreement shall be in writing and shall be considered as properly given
        or
        made if hand delivered or sent by overnight courier or delivery service or
        facsimile transmission to the applicable address appearing in the preamble
        to
        this Agreement, or to such other address as either party may have designated
        by
        like notice forwarded to the other party hereto. All notices, except notices
        of
        change of address, shall be deemed given one business day if they have been
        mailed by overnight courier or delivery service, or immediately if they have
        been hand delivered or faxed, and notices of change of address shall be deemed
        given when received. Notice shall be sent to the following addresses, unless
        otherwise changed as set forth herein:

    

     

    
      
        	 	
                If
                  to
                  Seller:

              	 	
                Gold
                  Leaf Homes, Inc.

              
	 	 	 	
                5802
                  FM 1488

              
	 	 	 	
                Magnolia,
                  TX 77354

              
	 	 	 	
                Attn:
                  Tom Redmon

              
	 	 	 	
                Facsimile:
                  (936) 321-6744

              
	 	 	 	 
	 	
                If
                  to
                  Shareholder:

              	 	
                Tom
                  Redmon

              
	 	 	 	 
	 	 	 	 
	 	 	 	
                Facsimile:
                  

              	 	 	 
	 	 	 	 
	 	
                If
                  to
                  Bluestar:

              	 	
                Bluestar
                  Health, Inc.

              
	 	 	 	
                19901
                  Southwest Freeway

              
	 	 	 	
                Sugar
                  Land, TX 77479

              
	 	 	 	
                Attn:
                  Alfred Oglesby

              
	 	 	 	
                Facsimile:
                  (281) 207- 5486

              
	 	 	 	 
	 	
                If
                  to
                  Purchaser:

              	 	
                Bluestar
                  Health, Inc.

              
	 	 	 	
                19901
                  Southwest Freeway

              
	 	 	 	
                Sugar
                  Land, TX 77479

              
	 	 	 	
                Attn:
                  Alfred Oglesby

              
	 	 	 	
                Facsimile:
                  (281) 207- 5486

              

      

    

    

    
      
        
          
          

        

        
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                with
                  a copy to:

              	 	 
	 	 	 	 	
              	
              
	 	 	 	
                The
                  Lebrecht Group, APLC

              
	 	 	 	
                9900
                  Research Drive

              
	 	 	 	
                Irvine,
                  CA 92618

              
	 	 	 	
                Attn:
                  Brian A. Lebrecht, Esq.

              
	 	 	 	
                Facsimile
                  (949) 635-1244

              

      

    

    

    6.4   Severability.
      Every
      provision of this Agreement is intended to be severable. If any term or
      provision hereof is illegal or invalid for any reason whatsoever, such
      illegality or invalidity shall not affect the validity of the remainder of
      this
      Agreement.

    

    6.5   Application
      of Law; Venue.
      This
      Agreement, and the application or interpretation thereof, shall be governed
      exclusively by its terms and by the laws of the State of Texas. Venue for any
      cause of action brought relating to this Agreement or the Contemplated
      Transactions shall be Harris County, Texas.

    

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

    

    6.7   No
      Third-Party Beneficiaries.
      Nothing
      expressed or referred to in this Agreement will be construed to give any person
      or entity other than the parties to this Agreement any legal or equitable right,
      remedy or claim under or with respect to this Agreement or any provision of
      this
      Agreement.

    

    6.8   Legal
      Fees and Costs.
      If a
      legal action is initiated by any party to this Agreement against another,
      arising out of or relating to the alleged performance or non-performance of
      any
      right or obligation established hereunder, or any dispute concerning the same,
      the prevailing party shall be reimbursed by the non-prevailing party for all
      reasonable expenses incurred in resolving such disputes, including reasonable
      attorneys’ fees.

    

    6.9   Binding
      Agreements; Non Assignability.
      Each of
      the provisions and agreements herein contained shall be binding upon and inure
      to the benefit of the personal representatives, heirs, devisees and successors
      of the respective parties hereto; but none of the rights or obligations
      attaching to either party hereunder shall be assignable, unless specifically
      noted.

    

    
      
        
          
          

        

        
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    6.10        
      Entire
      Agreement; Waiver.
      This
      Agreement of the parties hereto with respect to the subject matter hereof,
      along
      with the exhibits and schedules hereto, constitutes the entire agreement between
      the parties, and no amendment, waiver, modification or alteration of the terms
      hereof shall be binding unless the same be in writing, dated subsequent to
      the
      date hereof and duly approved and executed by each party. No failure or delay
      by
      any party in exercising any right, power or privilege hereunder shall operate
      as
      a waiver thereof, nor shall any single or partial exercise thereof preclude
      any
      other or further exercise thereof of the exercise of any other right, power
      or
      privilege. The rights and remedies herein shall be cumulative and not exclusive
      of any right or remedies provided by law.

    

    

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    IN
      WITNESS WHEREOF,
      the
      parties have executed this Agreement effective as of the day and year first
      above written.

     

    
      	 	
              “BLUESTAR”

            
	 	
              BLUESTAR
                HEALTH, INC.

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              /s/
                Alfred Oglesby

            
	 	 	
              Alfred
                Oglesby, President

            
	 	 	 
	 	 	 
	 	
              “PURCHASER”

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              /s/
                Alfred Oglesby

            
	 	 	
              Alfred
                Oglesby, President

            
	 	 	 
	 	 	 
	 	
              “SELLER”

            
	 	
              GOLD
                LEAF HOMES, INC.

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              /s/
                Tom Redmon

            
	 	 	
              Tom
                Redmon, President

            
	 	 	 
	 	 	 
	 	
              “SHAREHOLDER”

            
	 	 	 
	 	 	 
	 	 	
              /s/
                Tom Redmon

            
	 	Tom
              Redmon

    

     

    
      
        
          
          

        

        
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    LIST
      OF SCHEDULES AND EXHIBITS

     

    
      	
              Schedule
                1.2

            	 	
              Excluded
                Assets

            
	 	 	 
	
              Schedule
                2.6

            	 	
              Material
                Contracts

            
	 	 	 
	
              Schedule
                2.10.1

            	 	
              Personnel

            
	 	 	 
	 	 	 
	
              Exhibit
                A

            	 	
              Assets

            
	 	 	 
	
              Exhibit
                B

            	 	
              Assumed
                Liabilities

            
	 	 	 
	
              Exhibit
                C

            	 	
              Transitional
                Agreement 

            
	 	 	 
	
              Exhibit
                D

            	 	
              Escrow
                Agreement

            

    

     

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