Document:

Exhibit 10.8

        
        PURCHASE AND SALE AGREEMENT

        

        
             This Purchase and Sale Agreement (the
        “Agreement“) is entered into and effective this 21st day of September 2006, by
        and between PROSPECTOR CAPITAL, INC. a Colorado corporation with its principal place of
        business located at 7750 North Union Blvd., Suite 201, Colorado Springs, Colorado 80920
        (herein referred to as the “Seller”) and BLUE STAR ENERGY, INC. a Colorado
        Corporation with its principal place of business located at 5525 Erindale Drive, Suite 201,
        Colorado Springs, CO 80918 (herein referred to as the “Purchaser”).

        

        
        RECITALS:

        

        
             WHEREAS, the Seller is the owner of certain oil and
        gas assets located in Logan County and Morgan County, Colorado and are more particularly
        described in Exhibit “A”, attached hereto and incorporated by reference herein;
        and

        

        
             WHEREAS, the Seller desires to sell, and Purchaser
        desires to purchase an eleven and seven-eighths percent (11.875%) Working Interest in the
        properties described in Exhibit “A”, and the parties desire to memorialize the
        terms and conditions of the purchase and the sale thereof.

         

        
        WHEREAS, the Seller is selling an eleven and seven-eighths percent (11.875%) Working
        Interest, associated equipment and mineral leases in certain properties as described in
        Exhibit “A”, and Purchaser desires to purchase an eleven and seven-eighths
        percent (11.875%) Working Interest in said properties described in Exhibit
        “A”.

        

        
             NOW THEREFORE, in consideration of mutual promises and
        conditions hereinafter set forth, and for other good and valuable consideration, receipt
        and sufficiency of which is hereby acknowledged, Seller and Purchaser hereby agree as
        follows:

        

        
        ARTICLE I

        
        Definitions

        

        
        1.01     “Seller” shall mean Prospector Capital, Inc.,
        a Colorado corporation.

         

        
        1.02     “Purchaser” shall mean Blue Star Energy,
        Inc., a Colorado corporation.

         

        
        1.03     “Assets” shall mean those items described in
        Exhibit "A".

        

        
        ARTICLE II

        
        Purchase and Sale

        

        
        2.01     Conveyance. Subject to the terms, conditions and
        consideration hereinafter set forth, Seller agrees to sell, and Purchaser agrees to
        purchase, the Assets on the Closing Date.

        

        
        2.02     Purchase Price.      The
        total Purchase Price to be paid to the Seller by the Purchaser for the Assets is two
        hundred fifty thousand dollars ($250,000.00) of which one hundred thousand dollars
        ($100,000.00) shall be paid in cash at closing, one hundred thousand dollars ($100,000.00)
        shall be in the form of a convertible note payable due on or before December 31, 2006 (See
        Exhibit “D”) and fifty thousand dollars ($50,000.00) shall be in the form of
        two hundred thousand shares (200,000) of Blue Star Energy, Inc’s. restricted common
        stock.

        

        
        2.03     Area of Mutual Interest. To facilitate the
        development of oil, gas and other minerals under and around the assets described in Exhibit
        “A”, Seller conveys and Purchaser hereby acquires the area of mutual interest
        (AMI) previously established, covering lands within the outline set forth as a 3 mile
        radius from each of the wells (Exhibit “B”.) The term of the AMI shall be in
        full force and effect and shall terminate only by mutual agreement of the working interest
        partners.

        
        

        

        

        
        ARTICLE III

        
        Representations and Warranties

        

        
        3.01     Representations of Seller. Seller represents and
        warrants to Purchaser as follows:

         

        
        A.     Authority. Seller has full and lawful authority to
        execute and deliver this Agreement. This Agreement has been duly and validly executed and
        delivered on behalf of the Seller and constitutes a valid obligation of the Seller,
        enforceable in accordance with its terms.

         

        
        B.     No Violation. Neither the execution nor delivery of
        this Agreement and the consummation of the transactions completed hereby will result in a
        violation of, or be in conflict with, or accelerate the performance required by any order,
        judgment, injunction, decree, statute, rule or regulation applicable to Seller.

         

        
        C.     Consents and Approvals. No consent, approval, or
        authorization of, or declaration, filing, registration with, any governmental or regulatory
        authority or other third party is required in connection with the execution, delivery and
        performance of this Agreement and the consummation of the transaction contemplated
        hereby.

         

        
        D.     Seller Action. All action required by Seller to
        authorize and approve the transactions contemplated hereby shall have been taken, including
        approval by the shareholders of the Seller if necessary.

         

        
        E.     Finders Fee. Seller will indemnify and hold harmless
        Purchaser against and in respect of any claim for finder’s fee or other commission
        relative to this agreement or to the transactions contemplated hereby, based in any way on
        agreements, arrangements or understandings made or claimed to have been made by Seller with
        any third party.

         

        
        F.     Title. At the time of closing, with the exception of
        all accrued balances owed pertaining to the installation and operations of the Assets
        described in Exhibit “A”, assignment of the Assets from Seller to Purchaser
        shall be clear of any encumbrances. The assignment of the Assets shall be made subject to
        all royalties and overriding royalty interests.

        

        
        3.02     Representations of Purchaser. Purchaser
        represents, warrants, and agrees as follows:

         

        
        A.     Authority. Purchaser has full and lawful authority
        to execute and deliver this Agreement. This Agreement has been duly and validly executed on
        behalf of the Purchaser and constitutes a valid obligation of the Purchaser, enforceable in
        accordance with its terms.

        

        
        ARTICLE IV

        
        Conditions Precedent

        

        
        4.01     Conditions Precedent to Obligations of Seller. The
        obligations of Seller to effect the transactions contemplated herein shall be subject to
        the following conditions:

         

        
        A.     The representations and warranties of Purchaser herein
        shall be true and accurate as of and on the Closing Date, with the same effect as though
        made at such time; and

         

        
        B.     Purchaser shall have performed all obligations and complied
        with all covenants required by this Agreement to be performed or complied with prior to the
        Closing Date.

        

        
                         
        4.02     Conditions Precedent to Obligations of Purchaser.
        The obligations of Purchaser to effect the transactions contemplated herein shall be
        subject to the following conditions:

        
         

        
                          A.     The
        representations and warranties herein made by Seller shall be true and accurate as of and
        on the Closing Date, with the same effect as though made at such time; Seller shall have
        performed all obligations and complied with all covenants required by this Agreement to be
        performed or complied with prior to or on Closing Date;

        
         

        
                          B.     No
        material change in the operation of the Assets shall have occurred since the effective date
        of this Agreement, other than changes in the ordinary course of business.

        
         

        
        

        

        
         

        

        ARTICLE
        V

        
        Environmental

        

        
        5.01     Environmental Conditions. The assets have been
        utilized by Seller for the purpose of exploration, development, processing, temporary
        storage, and transportation of oil, gas and/or condensate. To the best of Seller’s
        knowledge, there has not been any substantial quantity of crude oil and produced water
        spilled or disposed of on-site and the locations thereof including pit closures, burial,
        land farming, land spreading, and/or underground injection. In addition, to the best of
        Sellers knowledge, there is no known asbestos or naturally occurring radioactive material
        commonly known as “NORM”, present in any of the gas field production equipment
        or flow lines.

        

        ARTICLE
        VI

        
        Closing

        

        
        6.01     Closing Date. The closing of the transactions
        contemplated in this Agreement shall be held on September 21, 2006, 11:00 AM. (the
        “Closing” or “Closing Date”) at 5525 Erindale Drive, Suite 201,
        Colorado Springs, CO 80918, or at another date and location as mutually agreed by the
        parties in writing.

        

        
        6.02     Delivery of Documents. On the Closing Date, Seller
        shall deliver an executed Bill of Sale and/or assignments and other documents as may be
        necessary to transfer the Assets to Purchaser.

        

        ARTICLE
        VII

        
        Miscellaneous

        

        
                         
        7.01     Amendment. This Agreement contains the entire
        agreement between parties concerning the subject matter herein. This Agreement may not be
        altered or amended, nor any rights or conditions hereunder waived, except by mutual
        agreement of the parties in writing.

        

        
                          7.02     
        Further Assurances. The parties to this Agreement shall execute, acknowledge and
        deliver, or cause to be executed, acknowledged and delivered such documents and instruments
        and shall take other action as may be necessary or advisable to carry out their respective
        obligations under this Agreement.

        

        
        7.03     Assignment. No party may assign its rights or
        delegate its duties or obligations under this Agreement without prior written consent of
        the other party.

        

        
                          7.04     
        Headings. The headings of the articles and sections of the Agreement are for
        convenience of reference only and shall not limit, or otherwise affect any of the terms or
        provisions of this Agreement.

        

        
                         
        7.05     Governing Law. This Agreement shall be construed
        in accordance with, and governed by, the laws of the state of Colorado.

        

        
                          7.06     
        Survival. All of the covenants, agreements, representations and warranties set forth
        in this Agreement shall survive the Closing

        

        
                         
        7.07     Counterparts. This Agreement may be executed by
        the parties in counterparts, each of which shall be deemed an original instrument, all of
        which together shall constitute one and the same Agreement.

        

        
             

        
        

        

        

        
        7.08     Parties in Interest. This Agreement shall be
        binding upon, and shall inure to the benefit of, the parties hereto and their respective
        successors and permitted assigns. Nothing contained in this Agreement, express or implied,
        is intended to confer upon any other person or entity any benefits, rights or remedies
        whatsoever.

        

        
                         
        7.09     Waiver and Severability. No waiver by either party
        of any breach or default hereof by the other shall be deemed to be a waiver of any
        preceding or succeeding breach or default hereof, and no waiver shall be operative unless
        the same shall be in writing. Should any provision of this Agreement be declared invalid by
        a court of competent jurisdiction, the remaining provisions hereof shall remain in full
        force and effect regardless of such declaration.

        

        
        IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date
        first above written.

        

        	
                	
                
	
                	SELLER:

                

                PROSPECTOR CAPITAL, INC.

                

                

                BY:  /s/ John R. Overturf, Jr.

                

                TITLE:  President

                

                

                PURCHASER:

                

                BLUE STAR ENERGY, INC.

                

                

                BY: /s/ Rayond E. McElhaney

                

                TITLE:  President 

        

        
         

        
        

        

        

        
        Exhibit “A”

        Asset Description of Wells

        

        
             Whereas SELLER is owner of an eleven and seven-eighths
        percent (11.875%) Working Interest of certain oil and gas leases wells and equipment
        described as follows, (which shall be referred to hereinafter as the “Oil and Gas
        Leases”):

         

        

        	
                	
                
	Well
                Name

                1) Lutin #1

                                

                                 

                                 

                                 

                

                 2) Marostica #1

                                

                                 

                                 

                                 

                

                 3) Stroh #1

                                

                                 

                                 
                	
                         
                Lands covered

                         T9N,R51W,6th P.M.

                         Sec. 9: NW1/4

                         Sec. 8: SE1/4

                         Logan County, Colorado

                Containing 320 acres, more or less

                

                         T10N,R51W,6th P.M.

                         Sec. 15: W1/2SE1/4,

                         E1/2SW1/4, NW1/4SW1/4

                         Logan County, Colorado

                Containing 200 acres, more or less

                

                         T3N,R57W,6th P.M.

                         Sec. 35: SW1/4

                         Morgan County, Colorado

                Containing 160 acres, more or less 

        
        Equipment

        

        
         

        
        Marostica #1 and Gathering Station

         

        
               (1)     Natural Gas
        Compressor - Electric

               (1)     Natural Gas Stripping
        Plant

               (1)     New PCS Controller
        System

               1,300 feet of 2 inch Gathering System

               (1)     Meter Run

               (2)     210 Barrel Production
        and Water Tanks

               (1)     3 Phase 1,000#
        Separator

                5 1⁄4 Miles of 3 inch SDR-7 Poly Pipe

                2 1/8 Miles of 2 1⁄2 inch 0.1888 Wall
        Coated Steel Pipe

               (1)     18,000 Gallon High
        Pressure Tank

        

        
        Lutin #1

        

        
              (1) New PCS Controller System250 PSI High Pressure
        Separator

               2 inch Meter Run to Stripping Plant

              (1) 250 PSI High Pressure Separator

              (2) 300 Barrel Production Water Tanks

              (1) 3 Phase 250# Separator

              (3) Electronic Flow Meters

        

        
        Gas Contract – Kinder Morgan/Seminole Energy, Oil Sales to Suncor Energy, Liquids
        Sales to Donvan Resources.

        

        
        Committed Leasehold Interests:

        

        
        Each oil and gas lease owned, at the time of this agreement, by either party hereto
        covering lands within the above Contract Areas is committed insofar, and only insofar, as
        it covers lands within the applicable Contract Area. Should any lease be obtained by any
        party hereto after the date of this Agreement which covers any portion of the Contract
        Area, such lease shall be deemed to have been committed insofar as such lease covers lands
        within the Contract Area. Should any lease owned by either party hereto cover lands in
        addition to those set forth above, such additional lands are specifically excluded here
        from.

        
         

        
         

        
        

        

        
         

        
        Exhibit “B”

        Description of “Area of Mutual Interest”

         

        
        The “Area of Mutual Interest (“AMI”) is an area 3 miles in radius
        surrounding the wells and mineral leases described in Exhibit “A”. That shall
        constitute the parties area of mutual interest (“AMI”) within, which all
        operations shall be conducted for the benefit of the parties hereto. This area is shown on
        maps to be included under exhibit “C”.

         

        
         

        
         

        

        
        

        

        

        
        Exhibit “C”

        
        Maps

         

         

        
        

        

        
        

        

        

        
        Exhibit “D”

        Convertible Promissory Noten8consb2a1ex101_1042007.htm

    
      

      

    

    
 

    Exhibit
      10.1

    TRADEMARK
      LICENSE AGREEMENT

    

    

    THIS
      AGREEMENT
      (“Agreement”) is made effective as of the ___ day of
      __________, 20__ (the “Effective Date”), between JAMES
      H. WATSON, JR., an individual, with an address at
      1869 W. Littleton Boulevard, Littleton, Colorado 80227
      (“Licensor”); and N8 CONCEPTS,
      INC., a Colorado corporation, located at 1869 W.
      Littleton Boulevard, Littleton, Colorado 80227
      (“Licensee”).

    

    RECITALS

    

    A.           Licensor
      is the owner of the following trademark (the
“Mark”):

    

    “NEVER
      LAY UP” (U. S. Serial Number
      77/190980).

    

    B.           As
      of the Effective Date of this Agreement, Licensor is the controlling shareholder
      of Licensee.

    

    C.           Licensor
      and Licensee have had an oral agreement by which License has been able to use
      the Mark in connection with its business, and the parties now desire to enter
      into a written agreement to that effect.

    

    AGREEMENT

    

    1.           Licensor
      grants Licensee an exclusive license to use the Mark (the
“License”) on and in connection with clothing, golf balls, golf
      accessories, and such other goods and any services as may be desired by Licensee
      from time to time, subject to the advance written approval of Licensor, which
      approval will not be unreasonably withheld (collectively, the “Goods and
      Services,” or separately, the “Goods” or the
“Services”).

    

    2.           If
      Licensor creates one or more new trademarks or service marks appropriate for
      the
      business of Licensee, the new mark(s) can added to this Agreement, and
      references in this Agreement to the Mark will be deemed to include new mark(s),
      upon written notification from Licensor to Licensee specifying the new
      mark(s).

    

    3.           In
      consideration for this License, Licensee agrees to pay to Licensor an annual
      fee
      of $100.00.

    

    4.           Licensee
      agrees to use the Mark only in connection with the Goods and
      Services.  Licensee further agrees to offer only Goods and Services
      under the Mark that meet the minimum standards and specifications of quality
      and
      as otherwise established Licensor (the “Standards and
      Specifications”).  The Standards and Specifications are set
      forth or described in the attached Rider, and made a part of this
      Agreement.

    

    5.           Licensor
      has the right to determine whether the Goods and Services being offered by
      Licensee are consistent with the Standards and
      Specifications.  Licensor has the right to require from time to time
      that Licensee submit samples of the Goods to Licensor for
      inspection.  Licensee agrees to provide to Licensor or his
      representatives access to its business premises and the business premises of
      its
      sub-franchisees (as may be permitted below in this Agreement) to enable Licensor
      to inspect the Goods or to inspect the performance of the Services (if any
      are
      sold under the Mark).  Upon request from Licensor, Licensee agrees to
      submit to Licensor samples of advertising and promotional materials bearing
      the
      Mark that Licensee proposes to use, or is using.

    

    
      
        
           

        

        
          -
            1
            -

          
            

          

        

        
           

        

      

    

    

    6.           Licensee
      recognizes and acknowledges that the Mark, all rights in the Mark, and the
      goodwill pertaining to the Mark belong exclusively to Licensor, and that all
      rights resulting from its use of the Mark inure to the benefit of
      Licensor.

    

    7.           Licensee
      agrees that it may sublicense the Mark to other parties only with the advance
      written approval of Licensor, which approval will not be unreasonably withheld,
      and only under agreements (the “Sub-License Agreements”) that
      require: (a) that the sub-licensee acknowledges Licensor’s ownership and rights
      in the Mark, as required of Licensee in the preceding paragraph; and (b) that
      the sub-licensee supply the Goods and Services only in conformance with the
      Standards and Specifications.  Sub-licensees that have been approved
      by Licensor, and that have a valid Sub-License Agreement with Licensee, are
      referred to below in this Agreement as “Authorized
      Sub-Licensees”).

    

    8.           Licensee
      agrees to strictly enforce the terms of any Sub-License Agreements, unless
      otherwise agreed by Licensor.

    

    9.           Licensor
      warrants that it is the sole owner of all rights in the Mark and that this
      Agreement and the rights licensed by it do not violate any other party’s rights
      or interests.  Licensor agrees that Licensee will have no liability,
      and Licensor will indemnify, defend, and hold Licensee harmless against any
      and
      all damages, liabilities, attorneys’ fees or costs incurred by Licensee in
      defending against any third-party claims or threats of claims under trademark
      or
      unfair competition or deceptive trade practices acts arising from Licensee’s or
      any of its Authorized Sub-licensees’ use of the Mark in accordance with this
      Agreement.  Licensee may appear through counsel of its own choosing to
      defend itself or its sub-licensees against any such action.

    

    10.           Licensee
      agrees that Licensor shall have no liability, and Licensee will indemnify,
      defend, and hold Licensor harmless against any and all damages, liabilities,
      attorneys’ fees or costs incurred by Licensor in defending against any
      third-party claims or threats of claims arising from the business or products
      of
      Licensee or its Authorized Sub-Licensees, or Licensee’s or its Authorized
      Sub-Licensees’ use of the Mark other than in full compliance with this
      Agreement.  Licensor may, at its own expense, appear through counsel
      of its own choosing to defend itself in any such action.

    

    11.           The
      term of this Agreement and the License granted under it will be 10 years from
      the Effective Date.  Licensee may terminate this Agreement and the
      License at any time upon written notice to Licensor.  This Agreement
      and the License will be automatically renewed for additional 10-year terms,
      and
      may not be terminated by Licensor, unless any of the following events occur:
      (a)
      Licensee ceases to do business; (b) Licensee ceases to operate a business
      offering the Goods and Services under the Mark and ceases to have Authorized
      Sub-Licensees using the Mark; (c) Licensee fails to comply with any of the
      terms
      of this Agreement, provided that Licensee shall have 30 days after the receipt
      of written notice from Licensor of the breach in which to cure the breach;
      or
      (d) Licensor and Licensee agree to an earlier termination or non-renewal of
      this
      Agreement.

    

    12.           Licensor
      agrees that if this Agreement expires or terminates for any reason, it will
      continue to permit any Authorized Sub-Licensees that are not in default of
      their
      Sub-License agreements, to continue to use the Mark as permitted by their
      Sub-License agreements, if those agreements are in compliance with the terms
      of
      this Agreement; provided however, that Licensee agrees to, and does assign
      the
      effective Sub-License Agreements to Licensor or its successor or
      assigns.

    

    13.           Licensor
      may assign or otherwise transfer this Agreement to any party that acquires
      the
      ownership of the Mark.  Licensee may not assign or otherwise transfer
      this Agreement without the prior written consent of Licensor, which consent
      will
      not be unreasonably withheld.

    

    

    
      
        
           

        

        
          -
            2
            -

          
            

          

        

        
           

        

      

    

    

    14.           This
      Agreement contains the entire agreement between the parties relating to its
      subject matter, and all prior proposals, discussions or writings are
      superseded.  The terms of this Agreement will be binding upon and will
      inure to the benefit of the parties and their successors, heirs, and
      assigns.

    

    15.           This
      Agreement and the Licenses will be governed, construed, and enforced in
      accordance with the laws of the state of Colorado.  The exclusive
      forum for any disputes under this Agreement or otherwise concerning the License
      will be the State and Federal Courts located in Colorado.

    

    

    N8
      CONCEPTS,
      INC.

    

    

    ____________________________________    By:       __________________________________                                                         

    James
      H. Watson,
      Jr.                                                      James
      H. Watson, Jr.

    President

    

    

    

    
      
        
           

        

        
          -
            3
            -

          
            

          

        

        
           

        

      

    

    

    STANDARDS
      AND SPECIFICATIONS RIDER

    

    

    Licensor
      establishes the following initial standards and specifications for the Services
      and Goods offered and sold by Licensee under the foregoing License:

    

    [Set
      forth the basic standards and specifications for the
      Goods.]

    

    

    

    Licensor
      establishes the following initial standards and specifications for advertising
      and promotional materials using the Mark:

    

    [Set
      forth the basic standards and specifications for advertising and promotional
      materials.]

    

    

    

    
      
        
           

        

        
          -
            4
            -

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