Document:

Exhibit 10.24

                               SECURITY AGREEMENT

         This Security  Agreement  ("Agreement")  is made and entered into as of
this 9th day of July,  2002,  by and between  Alpha  Virtual,  Inc. a California
corporation ("Borrower") and Global Alpha Corporation,  a British Virgin Islands
corporation ("Lender"). Borrower and Lender may each be referred to individually
as a "Party" or collectively as "Parties" to the this Agreement.  Terms used but
not  defined  herein  shall  have  the  meanings  ascribed  to them in the  Loan
Agreement (as defined below).

                                    RECITALS
         A.  Borrower  and Lender have  entered  into the Working  Capital  Loan
Agreement,  dated as of the date  hereof  (as from time to time  amended  and in
effect,  the "Loan Agreement") and the Multiple Advance  Convertible  Promissory
Note,  dated as of the same date, and executed by Borrower (as from time to time
amended and in effect, the "Note").

         B.  It is a condition  precedent to Lender extending  further credit to
Borrower under the Loan  Agreement  that Borrower  execute and deliver to Lender
this  Agreement  and such other  agreements  as Lender may request in connection
with the  implementation  of this Agreement,  including,  but not limited to the
Source Code Escrow Agreement of even date herewith, as from time to time amended
and in effect (the  "Escrow  Agreement").  The  Security  Agreement,  the Escrow
Agreement  and any  other  documents  requested  by  Lender  to be  executed  in
connection  therewith,  together are  sometimes  hereinafter  referred to as the
"Security Documents".

         C.  Borrower  wishes to grant security  interests in favor of Lender as
herein provided.

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

                                    AGREEMENT

         1.  Grant Of Security  Interest.  Borrower  hereby grants,  assigns and
conveys to Lender a first-priority,  security interest in and mortgage on all of
Borrower's  right,  title  and  interest  in and to all now  owned or  hereafter
acquired or created computer  software programs of the Borrower (the "Programs")
as more fully described on Schedule A attached hereto and incorporated herein by
this reference (the  "Collateral") to secure the payment and performance in full
of all present and future  obligations owing to Lender under the Loan Agreement,
the  Note,  the  Loan  Documents  and  the  Security  Documents  (together,  the
"Obligations").

         2.  Authorization  To  File  Financing   Statements.   Borrower  hereby
irrevocably  authorizes  Lender at any time and from time to time to file in any
Uniform  Commercial  Code  jurisdiction  any initial  financing  statements  and
amendments  thereto  that (a)  indicate  the  Collateral  (i) as all  assets  of

                                                                     S364987.3
                                    10.24-1
<PAGE>
Borrower or words of similar effect,  regardless of whether any particular asset
comprised  in  the  Collateral  falls  within  the  scope  of  Article  9 of the
California  Uniform  Commercial Code, as amended and  supplemented  from time to
time (the "Code") or any such jurisdiction,  or (ii) as being of equal or lesser
scope or with greater detail; and (b) contain any other information  required by
part 5 of Article 9 of the Code for the sufficiency or filing office  acceptance
of any  financing  statement  or  amendment,  including  whether  Borrower is an
organization,  the  type of  organization  and any  organization  identification
number issued to Borrower and, in the case of a financing  statement  filed as a
fixture filing or indicating  Collateral as extracted collateral or timber to be
cut, a  sufficient  description  of the real  property  to which the  Collateral
relates. Borrower agrees to furnish any such information to Lender promptly upon
request.

         3.  Source  Code  Escrow.  Borrower  agrees  to enter  into the  Escrow
Agreement,  to deposit  the Source  Materials  and other  items  required  to be
deposited pursuant to the Escrow Agreement, and to perform its obligations under
the Escrow Agreement, as set forth therein.

         4.  Representations,   Warranties   And  Covenants.   Borrower   hereby
represents,  warrants,  and covenants  that:

               (a)  Power and Authority; Valid and Binding Obligation.  Borrower
                    -------------------------------------------------
is a corporation  duly  incorporated  and in good standing under the laws of the
State of California and duly qualified to do business in each jurisdiction where
such  qualification is necessary.  The execution and delivery of this Agreement,
and  the  performance  by  Borrower  of its  obligations  hereunder  are  within
Borrower's  corporate  powers  and have been duly  authorized  by all  necessary
corporate  action.  This  Agreement  is  Borrower's  legal,  valid  and  binding
obligation, enforceable in accordance with its terms, the making and performance
of which do not and will not contravene or conflict with  Borrower's  charter or
by-laws or violate or constitute a default under any law, any presently existing
requirement or restriction  imposed by judicial,  arbitral or other governmental
instrumentality  or any agreement,  instrument or indenture by which Borrower or
its property is bound.

               (b)  Title.  Borrower  is the  sole  and  exclusive  owner of the
                    -----
entire  and  unencumbered  right,  title,  and  interest  in  and  to all of the
Collateral,  free and clear of any liens,  charges, and encumbrances,  including
pledges,  assignments,  licenses,  joint  ownership  rights,  shop  rights,  and
covenants by Borrower not to sue third persons.  No financing statement covering
any of the Collateral is on file in any public office.

               (c)  Perfection of Security Interest.  Except for the filing of a
                    -------------------------------
financing  statement  with the Secretary of State of  California  and the filing
with the U.S.  Copyright  Office  necessary  to perfect the  security  interests
created hereunder, no authorization, approval, or other action by, and no notice
to or filing with,  any  governmental  authority or regulatory  body is required
either for the grant by Borrower of the security  interest  hereunder or for the
execution,  delivery,  or  performance  of this Agreement by Borrower or for the
perfection  of or  the  exercise  by  Lender  of  its  rights  hereunder  to the
Collateral in the United States.

                                                                     S364987.3
                                     10.24-2
<PAGE>
               (d)  Commercial  Transaction.  The  transactions  contemplated by
                    -----------------------
this  Agreement and the Loan Agreement are  commercial  transactions  and do not
involve:  (a) goods used or bought for use  primarily  for  personal,  family or
household  purpose;  or (b) an  individual's  incurrence of the  obligation  for
personal, family or household purposes.

               (e)  No Liens.  Borrower will not create, incur, assume or permit
                    --------
to exist any  pledge,  security  interest,  hypothecation,  assignment,  deposit
arrangement, encumbrance, lien (statutory or other), or preference, priority, or
other security agreement or preferential arrangement,  charge, or encumbrance of
any kind or nature whatsoever upon the Collateral.

         5.  Affirmative Covenants

               (a)  Litigation  and  Proceedings.  Borrower  shall  commence and
                    ----------------------------
diligently prosecute in its own name, as the real party in interest, for its own
benefit, and its own expense, such suits,  administrative  proceedings, or other
action  for  infringement  or other  damages as are in its  reasonable  business
judgment  necessary to protect the Collateral.  Borrower shall provide to Lender
any information with respect thereto  requested by Lender.  Lender shall provide
at Borrower's  expense all  necessary  cooperation  in connection  with any such
suits,  proceedings,  or action,  including,  without  limitation,  joining as a
necessary party.

               (b)  Right to Inspect.  Borrower grants to Lender,  its employees
                    ----------------
and agents the right to visit Borrower's principal place of business, plants and
facilities which manufacture,  inspect,  or store products sold under any of the
Trademarks or incorporating any of the Patents and/or Copyrights, and to inspect
the products and quality control records  relating  thereto at reasonable  times
during regular business hours.

               (c)  Locations and Notices.  Borrower shall maintain and keep (a)
                    ---------------------
except as delivered to Lender from time to time, all chattel paper,  instruments
and documents,  and all records concerning the Collateral,  at the address shown
in the first  paragraph  hereof and not  duplicate  any  records  regarding  any
Collateral  at any other  address;  (b) the  location of its chief office at the
address shown in the first paragraph hereof;  and (c) the state of incorporation
and  immediately  given  written  notice to Lender of any change in the state of
incorporation.

               (d)  Insurance.   Borrower  shall  keep  all  Collateral  insured
                    ---------
against  loss,  damage,  theft and  other  risks,  with  amounts  and  insurance
companies,  and under  policies,  satisfactory  to Lender,  which policies shall
provide  that loss  thereunder  shall be payable to Lender as its  interest  may
appear  (and  Lender  may  apply any  proceeds  of such  insurance  which may be
received by it toward payment of Obligations,  whether or not due, in such order
of  application  as Lender may  determine),  and such  policies or  certificates
thereof shall,  if Lender so requests,  be deposited  with Lender.

                                                                     S364987.3
                                     10.24-3
<PAGE>
         6.  Events Of Default.  An Event of Default under this Agreement  shall
occur and be continuing if any of the following occurs:  (a) an Event of Default
under the Loan Agreement or any other Loan Document or Security Document occurs;
(b) any representation or warranty made by Borrower in this Agreement,  the Loan
Agreement or any other Loan Document or Security Document is incorrect when made
or when  affirmed;  or (c)  Borrower  fails to observe or perform any  covenant,
condition,  or  agreement  to be  observed  or  performed  pursuant to the terms
hereof.

         7.  Remedies.

               (a)  Generally.  If any Event of Default  shall have occurred and
                    ---------
be  continuing,  in addition to any other  rights  given to Lender by law,  this
Agreement,  the Loan Agreement or any other Loan Document or Security  Document,
Lender may exercise all rights and remedies of a secured  party on default under
the UCC  (whether or not the UCC  applies to the  affected  Collateral)  and may
also:

                      (i)   declare all Obligations under the Loan Agreement and
this Agreement immediately due and payable;

                      (ii)  notify  any  licensees  to  make royalty payments on
license agreements directly to Lender;

                      (iii) require  Borrower  to, and  Borrower  hereby  agrees
that  it  will,   at  its   expense  and  upon  request  of  Lender   forthwith,
assemble  all  or  part  of  the  Collateral  as  directed by Lender and make it
available  to  Lender at a place to be designated by  Lender which is reasonably
convenient to both parties;

                      (iv)  without  notice  or  demand  or legal process, enter
upon any premises of Borrower and take  possession of the Collateral; and

                      (v)    without notice except as specified below,  sell any
Collateral or any part thereof in one or more parcels at public or private sale,
at any of Lender's  offices or  elsewhere,  at such time or times,  for cash, on
credit or for future  delivery,  and at such price or prices and upon such other
terms as Lender may deed  commercially  reasonable.  Borrower  hereby  expressly
waives,  to the fullest extent permitted by applicable law, any and all notices,
advertisements,  hearings or process of law in  connection  with the exercise by
Lender of any of its rights  and  remedies  upon an event of Default  and agrees
that,  to the extent  notice of sale shall be required by law, at least five (5)
days'  notice to  Borrower  of the time and place of any public sale or the time
after  which  any  private  sale  is  to be  made  shall  constitute  reasonable
notification. At any sale of the Collateral, if permitted by law, Lender may bid
(which  bid may be,  in  whole  or in  part,  in the  form  of  cancellation  of
indebtedness)  for the purchase of the Collateral or any portion thereof for the
account  of  Lender.  Lender  shall  not be  obligated  to make  any sale of the
Collateral regardless of notice of sale having been given. Borrower shall remain
liable for any  deficiency.  Lender may adjourn any public or private  sale from
time to time by announcement at the time and place fixed therefor, and such sale
may,  without further  notice,  be made at the time and place to which it was so
adjourned.  Lender shall not be required to proceed  against any  Collateral but

                                                                     S364987.3
                                     10.24-4
<PAGE>
may proceed against Borrower directly.  To the extent permitted by law, Borrower
hereby  specifically  waives all rights of redemption,  stay or appraisal  which
Borrower has or may have under any law now existing or hereafter enacted.

               (b)  Appointment of  Attorney-in-Fact.  Effective upon and during
                    --------------------------------
the continuance of an Event of Default, Borrower hereby constitutes and appoints
Lender as Borrower's attorney-in-fact with full authority in the place and stead
of  Borrower  and in the  name of  Borrower,  from  time  to  time  in  Lender's
discretion to take any action and to execute any instrument that Lender may deem
necessary or advisable to accomplish the purposes of this Agreement, including:

                      (i)    to  ask,  demand,   collect,   sue  for,   recover,
compound,  receive and give acceptance and receipts for moneys due and to become
due under or in respect of any of the Collateral;

                      (ii)   to  adjust,  settle  or  compromise  the  amount or
payment of any  Account,  or release  wholly or partly any  customer  or obligor
thereunder or allow any credit or discount thereon;

                      (iii)  to  receive,  endorse,  and  collect  any drafts or
other  instruments,  documents and chattel paper,  in connection with clause (a)
above; and

                      (iv)   to file any claims or take any action or  institute
any  proceedings  that Lender may deem necessary or desirable for the collection
of any of the  Collateral  or  otherwise  to enforce  the rights of Lender  with
respect  to any of the  Collateral.  The  appointment  of Lender  as  Borrower's
attorney is coupled with an interest and is  irrevocable  until  payment in full
and complete performance of all of the Obligations.

               (c)  Limitation  on Duty of Lender  with  Respect to  Collateral.
                    -----------------------------------------------------------
Beyond the safe custody  thereof in  accordance  with the UCC,  Lender shall not
have any duty with respect to any  Collateral  in its  possession  or control or
with respect to any income thereon or the  preservation  of rights against prior
parties or any other rights pertaining  thereto.  Lender shall be deemed to have
exercised  reasonable care in the custody and  preservation of the Collateral in
its possession if the Collateral is accorded  treatment  substantially  equal to
that  which  it  accords  its  own  property.  Lender  shall  not be  liable  or
responsible  for  any  loss  or  damage  to any of the  Collateral,  or for  any
diminution  in the  value  thereof,  by  reason  of the act or  omission  of any
warehouseman, carrier, forwarding agency, consignee or bailee selected by Lender
in good faith.

               (d)  Proceeds of Collateral.  Any proceeds of any  disposition by
                    ----------------------
Lender of any of the  Collateral  may be  applied  by Lender to the  payment  of
expenses in connection with the Collateral, including reasonable attorneys' fees
and legal  expenses,  and any balance of such  proceeds may be applied by Lender
toward the payment the Obligations,  and in such order of application, as Lender
may from time to time elect.

                                                                     S364987.3
                                     10.24-5
<PAGE>
         8.  Choice Of Law And Venue; Jury Trial Waiver.

               (a)  Choice  of  Law.  The  validity  of  this   Agreement,   its
                    ---------------
construction,  interpretation,  and  enforcement,  and the rights of the parties
hereto with respect to all matters arising  hereunder or related hereto shall be
determined under,  governed by, and construed in accordance with the laws of the
California, without giving effect to its conflict of laws principles.

               (b)  Venue.  The parties  agree that all  actions or  proceedings
                    -----
arising in connection  with this agreement  shall be tried and litigated only in
the state and federal  courts  located in the County of Los Angeles,  California
or, at the sole  option of  Lender,  in any other  court in which  Lender  shall
initiate   legal  or  equitable   proceedings   and  which  has  subject  matter
jurisdiction  over the matter in controversy.  Borrower and Lender hereby waive,
to the extent  permitted under applicable law, any right each may have to assert
the  doctrine  of forum non  conveniens  or to object to venue to the extent any
proceeding is brought in accordance with this Section 8.

               (c)  Waiver of Jury Trial. BORROWER AND LENDER HEREBY WAIVE THEIR
                    --------------------
RESPECTIVE  RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING  OUT  OF  ANY  OF  THIS  AGREEMENT,  THE  LOAN  AGREEMENT  OR ANY OF THE
TRANSACTIONS  CONTEMPLATED  THEREIN,  INCLUDING  CONTRACT  CLAIMS,  TORT CLAIMS,
BREACH OF DUTY CLAIMS,  AND ALL OTHER COMMON LAW OR STATUTORY  CLAIMS.  BORROWER
AND LENDER  REPRESENT  THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND
VOLUNTARILY  WAIVES  ITS JURY TRIAL  RIGHTS  FOLLOWING  CONSULTATION  WITH LEGAL
COUNSEL. IN THE EVENT OF LITIGATION,  A COPY OF THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

         9.  Miscellaneous.

               (a)  Survival   of    Representations    and   Warranties.    The
                    ----------------------------------------------------
representations,  warranties,  covenants and agreements  contained  herein shall
survive the execution of this Agreement.

               (b)  No Waiver;  Cumulative Remedies.  No failure or delay on the
                    -------------------------------
party of either Party in exercising any right,  power or remedy  hereunder shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
such right,  power or remedy preclude any other or further  exercise thereof or,
the  exercise  of any other  right,  power or  remedy  hereunder.  The  remedies
provided  herein are  cumulative  and not exclusive of any remedies  provided by
law.

               (c)  No Amendments;  Entire Agreement.  This Agreement may not be
                    --------------------------------
modified,  amended,  waived or  superseded  except  in a writing  signed by both
Lender  and  Borrower.  This  Agreement,  the Loan  Agreement  and the  Security
Documents  embody the entire  agreement  and  understanding  of the  Parties and
supersede  all prior  agreements  and  understandings  relating  to the  subject
matter.

                                                                     S364987.3
                                     10.24-6
<PAGE>
               (d)  Notices.   Any  notice  required  or  permitted  under  this
                    -------
Agreement shall be given in writing and shall be deemed  effectively  given: (i)
upon  sending  the  notice by  facsimile  provided  receipt  is  confirmed  by a
machine-generated transmission report; or (ii) three (3) days after sending such
notice by  registered  or certified  mail,  postage  prepaid and return  receipt
requested;  or (iii) one (1) day after  depositing  such  notice  with a courier
service guaranteeing next day delivery,  return receipt requested, and addressed
as follows:

                  To Borrower:     Alpha Virtual, Inc.
                                   10345 Olympic Boulevard, Suite 300
                                   Los Angeles, CA 90064

                  To Lender:       Global Alpha Corporation
                                   (see address on signature page)

                  With a copy to:  Nixon Peabody LLP
                                   Two Embarcadero Center, 27th Floor
                                   San Francisco, CA 94111
                                   Attn: Laura Wheeler
                                   Facsimile: (866) 741-1491 or (415) 984-8300

               (e)  Binding Effect;  Assignment.  This Agreement is binding upon
                    ---------------------------
and  shall  inure to the  benefit  of each  Party's  respective  successors  and
assigns,  except  that  Borrower  shall  not have  the  right  to  delegate  its
Obligations  hereunder or to assign its rights  hereunder or any interest herein
without the prior written consent of Lender.

               (f)  Governing Law. This  Agreement and the Loan Agreement  shall
                    -------------
be governed by and construed in  accordance  with the internal laws of the State
of California without regard to its principles of conflict of laws.

               (g)  Attorneys' Fees.  Borrower agrees to pay to Lender all costs
                    ---------------
and  expenses  incurred  by Lender in any effort to  collect  the under the Loan
Agreement  and to enforce its rights under this  Agreement,  including,  without
limitation,  reasonable  attorneys'  fees,  incurred in enforcing its rights and
protecting  its interest  under this  Agreement  and the Loan  Agreement,  which
amounts  shall  include  fees  and  costs  incurred  in any  state,  federal  or
bankruptcy court whether or not in connection with any Chapter 11 proceeding, or
relief from automatic stay or disputes over Lender's claim, or disputes over any
plan of  reorganization,  or motions for sale of assets,  regardless  of whether
such attorneys'  fees,  costs and expenses are incurred before or after an Event
of Default.

               (h)  Headings.  Article,  section and subsection headings in this
                    --------
Agreement are included  herein for  convenience  of reference only and shall not
constitute a part of this Agreement for any other purpose.

                                                                     S364987.3
                                     10.24-7
<PAGE>
               (i)  Counterparts.  This  Agreement may be executed in any number
                    ------------
of  counterparts,  all of which taken together shall constitute one and the same
instrument,  and any of the parties hereto may execute this Agreement by signing
any such counterpart; provided that original signatures will be substituted upon
the request of either Party.

                            [SIGNATURE PAGE FOLLOWS]

                                                                     S364987.3
                                     10.24-8
<PAGE>
         IN WITNESS WHEREOF the undersigned,  being  authorized  signers for the
Parties,  have  executed  this  Security  Agreement as of the date first written
above.

ALPHA VIRTUAL, INC.

By:
     ------------------------------------------------
Name:
Its:

GLOBAL ALPHA CORPORATION

By:
     ------------------------------------------------
Name:
Its:
Address:

                                                                     S364987.3
                                     10.24-9
<PAGE>

                                   SCHEDULE A

                            Description of Collateral

                                                                     S364987.3
                                    10.24-10EXHIBIT 10.46

                       FOOD PREPARATION AGREEMENT
                                 BETWEEN
                        LIFESTREAM SERVICES, INC.
                                   AND
                   LINDLEY FOOD SERVICE CORPORATATION
         (A wholly owned subsidiary of HOST AMERICA CORPORATION)

THIS AGREEMENT, made this 1st day of July, 2002, by and between
LifeStream Services, Inc. 1701 Pilgrim Boulevard, P.O. Box 308, Yorktown,
Indiana  47396-0308 (hereinafter referred to as LIFESTREAM), and Lindley
Food Service Corporation, a wholly owned subsidiary of HOST AMERICA
CORPORATION, 201 Wallace Street, New Haven, Connecticut   06511
(hereinafter referred to as LINDLEY) for the provision of food service to
individuals in Blackford, Delaware, Grant, Henry, Jay, Madison, and
Randolph Counties in the State of Indiana.  Food service shall include
the preparation and packaging for distribution of home delivered meals
and congregate meals as outlined in this Contract and as indicated in
Exhibit 1.

                          W I T N E S S E T H:
                          --------------------

In consideration of the covenants herein and intending to be legally
bound hereby, the parties mutually agree as follows:

     1.   TERM:  This Agreement shall become effective on or about July
          1, 2002 and shall continue until the 30th day of June, 2004.
          Unless terminated in the manner hereinafter set forth, this
          Agreement shall automatically renew for successive one (1) year
          terms beginning July 1, 2004.

     2.   TERMINATION:  Either party may give notice of termination,
          without cause, by giving such notice in writing, by registered
          mail, directed to the other party at least ninety (90) days
          prior to the intended termination date.  LIFESTREAM may
          terminate this Agreement for any material breach by LINDLEY of
          its obligations hereunder by providing written notice of
          termination to LINDLEY.  If LINDLEY fails to cure the breach
          within thirty- (30) days from the date of such notification,
          this Agreement shall terminate upon the expiration of such
          thirty- (30) day period.

     3.   NOTICE:  Any notice required or permitted to be given shall be
          in writing and shall be mailed by registered mail or personal
          delivery, with notice being deemed to be given three (3) days
          after it is mailed or upon receipt if personally delivered.
          Any notice to be given hereunder shall, if to LINDLEY, be sent
          to Gil Rossomando, President, Lindley Food Service Corporation,
          201 Wallace Street, New Haven, CT  06511.  Any notice to be
          given hereunder shall, if to LIFESTREAM, be sent to William H.
          Boothe, President/CEO, LifeStream Services, Inc., P O Box 308,
          1701 Pilgrim Boulevard, Yorktown, IN  47396-0308.  If the name
          of the person to be

<PAGE>
          notified shall change, the notice of change of person shall be
          provided as set forth in this paragraph.

     4.   EXCLUSIVE RIGHTS:  LINDLEY shall have the exclusive rights and
          privileges to operate as an independent contractor in the
          provision of nutritious quality food services for the
          Congregate and Home Delivered Nutrition Program according to
          the requirements as described in the Bid Specifications (See
          Exhibit 1).

     5.   INCORPORATION OF BID SPECIFICATIONS:  Except as provided
          specifically elsewhere in this Agreement, LINDLEY agrees to
          comply with the terms of the "BID SPECIFICATIONS", which BID
          SPECIFICATIONS are attached hereto, made a part hereof, and
          marked "Exhibit 1."  If the terms of the BID SPECIFICATIONS and
          of this Agreement shall conflict, then the terms of this
          Agreement outside of the BID SPECIFICATIONS shall govern.

     6.   EQUIPMENT LOCATION:  LINDLEY's food preparation as required by
          the terms of this Agreement shall take place at the existing
          central kitchen located at 2100 North Granville Avenue, Muncie,
          Indiana.  LIFESTREAM has equipment located at the central
          kitchen, which equipment shall be available for usage by
          LINDLEY at no charge.  If other equipment is needed by LINDLEY
          to perform its responsibilities under the terms of this
          Agreement, LINDLEY shall provide the additional equipment at no
          charge to LIFESTREAM.

     7.   EQUIPMENT OWNERSHIP:  It is understood and agreed that any
          equipment purchased by LINDLEY in order to perform the services
          required under the terms of this Agreement shall remain
          LINDLEY's property at all times.  LIFESTREAM will take
          reasonable precautions to protect said machines and equipment
          from damage and will permit LINDLEY to remove them upon
          termination of this Agreement.  LIFESTREAM will furnish to
          LINDLEY, without charge, food preparation equipment, owned by
          LIFESTREAM, and to be used in connection with the food service.
          LINDLEY will arrange for installation and ongoing payment for
          all rent, utilities (including refrigeration, freezer space,
          heat, light, water, and electricity), and phone costs
          associated with operating the Central Kitchen.

     8.   MAINTENANCE, OPERATION, AND EQUIPMENT:  LINDLEY shall prepare
          meals for LIFESTREAM to distribute to the following locations:

               *    Serving Sites

               *    Homebound clients and/or dispersion sites

          The division of responsibility between LIFESTREAM and LINDLEY
          is hereafter provided:

<PAGE>
          LIFESTREAM will be responsible for:

          a)   Providing daily meal counts to LINDLEY for both Congregate
               and Homebound deliveries Monday through Friday, by 1:00
               p.m. of the previous day.
          b)   Furnishing maintenance services on all LIFESTREAM owned
               equipment.  When maintenance is insufficient to have the
               equipment in proper working condition, LIFESTREAM shall
               replace the equipment with comparable equipment which will
               be in working condition.  If LINDLEY employees cause
               damage to LIFESTREAM owned equipment through their own
               negligence, then LINDLEY shall be responsible for
               replacement of the damaged equipment.

          c)   Delivering all Congregate and Home Delivered meals to
               their destination.

          LINDLEY will be responsible for:

          a)   Preparation of meals, including:

               i)   Performing all buying and record keeping functions.

               ii)  Employing and training food service employees
                    including the employing of a registered dietician.

               iii) Furnishing sufficient supervisory personnel to
                    establish and maintain the operation at a high
                    standard.

               iv)  Instituting reliable food cost control methods.

          b)   Keeping the kitchen equipment, including all of the
               LIFESTREAM owned equipment as listed in Exhibit 1, in
               accordance with recognized standards for such equipment
               and in accordance with all laws, ordinances, regulations,
               and rules of Federal, State, and Local authorities.

          c)   Routine cleaning of the kitchen, storage areas, offices,
               and the loading dock in accordance with HACCP standards to
               assure sanitation conditions are met as stated in Exhibit
               1.

          d)   Posting all Congregate and Home Delivered menus, for
               distribution to LIFESTREAM and LIFESTREAM consumers, with
               said menus being nutritionally acceptable according to the
               standards set forth in Exhibit 1.  Menus will be prepared
               in a four (4) week cycle.  Menus will be reviewed and
               approved by LIFESTREAM's Nutrition Program staff.  All
               menus will be approved and signed by LINDLEY's dietician.

<PAGE>
          e)   Having the meal products, either in individual format,
               packed, and/or bulk prepared and ready for a Home Delivery
               Driver upon their arrival at the central kitchen, to pick
               up said products within a five (5) minute time frame.

          f)   Assisting Home Delivery Drivers with packing their
               vehicles to expedite the time-in-process for the meal
               products.

          g)   Assisting Home Delivery Drivers with closing out the day's
               work with that assistance including unloading from the
               Home Delivery vehicles all equipment and unused meal
               product, and preparing the vehicle for next day's
               delivery.

          h)   Assuring appropriate inventory controls for all products
               that leave the kitchen.

     9.   LICENSES AND PERMITS:  LINDLEY shall obtain, as a cost of
          operation prior to commencing operations at LINDLEY's premises
          at the central kitchen as described above, all necessary
          permits, licenses, and other approvals required by law, and as
          outlined in Exhibit 1, for its operation as identified in this
          Agreement.

     10.  RECORDS:  LINDLEY will at all times maintain an accurate record
          including a daily lunch count of all LIFESTREAM participants
          and include it in a monthly report to LIFESTREAM.  LINDLEY will
          also keep inventories of all merchandise and sales in
          connection with the operation of the food service.  LINDLEY
          shall keep all such records on file for at least a period of
          three (3) years, and LINDLEY shall give LIFESTREAM and its
          agents the privilege, at any time, of auditing its records.
          All sales, for the purpose of this Agreement, are defined as
          cash collections less applicable Federal, State, and Local
          taxes for which LINDLEY has the sole responsibility to collect,
          report, and pay to the taxing authorities.

     11.  INSURANCE:  During the term of this Agreement, LINDLEY will
          provide and maintain, with an insurance carrier licensed to do
          business in the State of Indiana, not less than two million
          dollars ($2,000,000.00) worth of general liability, automobile,
          and excess liability insurance.  LINDLEY will also provide a
          ten million dollar ($10,000,000.00) umbrella policy in excess
          of the two million dollar ($2,000,000.00) policy.
          Additionally, LINDLEY will provide LIFESTREAM performance and
          dishonesty insurance equal to one-quarter (1/4) of the value of
          this Contract as stated in the BID SPECIFICATIONS at the
          350,000 annually served meal amount.  Said insurance will be in
          lieu of a performance bond.  LIFESTREAM will be a named insured
          under each such policy as indicated in Exhibit 1.  Further,
          LIFESTREAM will receive not less than thirty- (30) days notice
          of any termination or modification of such policies directly
          from the provider.

<PAGE>
          LINDLEY will provide LIFESTREAM with documentation evidencing
          its compliance (and continued compliance with this Section)
          upon request by LIFESTREAM.  LINDLEY will indemnify and hold
          LIFESTREAM, its employees, guests, visitors, clients, and
          tenants, their employees, guests, visitors, customers, and
          clients harmless from any and all loss, damage, or liability
          arising directly or indirectly out of LINDLEY's operation under
          this Agreement.  This includes the operation of the equipment,
          and acts of omission or negligence of LINDLEY's employees,
          contractors, or agents when engaged in operations under this
          Agreement.

     12.  PERSONNEL POLICIES:  All food service employees will be on
          LINDLEY's payroll and shall be the employees of LINDLEY.  No
          employee of LINDLEY shall be deemed an employee of LIFESTREAM,
          and no employee of LIFFESTREAM shall be deemed an employee of
          LINDLEY.  All persons employed by LINDLEY at the central
          kitchen shall appear to be clean and shall, while on duty, be
          clothed in presentable uniforms that are also clean and
          sanitary.  LINDLEY employees shall comply with its rules and
          regulations at any time promulgated by LINDLEY for the safe,
          orderly, and efficient conduct of all activities being carried
          out while on its premises.  LINDLEY shall not retain at the
          premises, any employee deemed not acceptable for any reason.
          LINDLEY, in performing work by this Agreement, shall not
          discriminate against any employee or applicant for employment
          because of race, color, creed, national origin, age, sex, or
          disability.  LINDLEY's employment practices will meet the
          requirements of the Fair Labor Standards Act, as well as all
          other regulations required by the United States Department of
          Labor.  LINDLEY will identify itself as an equal opportunity
          employer and will be bound by all other business practices as
          stated in Exhibit 1.

     13.  EMPLOYEE OPPORTUNITY/ACCOMODATION:  It will be the practice of
          LINDLEY to give first-preference of employment to those
          individuals (of the seven county service area of LIFESTREAM)
          that were employed by the previous provider of the LIFESTREAM
          Nutrition Program.  Further, should LIFESTREAM choose to do so,
          LINDLEY agrees to permit LIFESTREAM to provide suitable office
          space for a Home Delivery Manager, to be employed by
          LIFESTREAM, out of the Central Kitchen at no cost to
          LIFESTREAM.

     14.  BILLING:  Billing by LINDLEY will be made to LIFESTREAM on a
          weekly cycle.  Billing will include the number and type of meal
          ordered, served, and billed per site, route, and total number
          of meals ordered, served, and billed for that week.  LIFESTREAM
          will render payment to LINDLEY within thirty (30) days after
          receipt of billing, provided contract funds have been received
          by LIFESTREAM from appropriate funding sources.

<PAGE>
          Decisions and adjustments concerning shortages and errors will
          be addressed by LIFESTREAM.  If all or part of a meal is
          delivered substandard for any reason, LIFESTREAM will not be
          invoiced for that meal.  If an entre item is omitted, and not
          replaced before serving time, the full cost of the meal will be
          deducted from the billing.  If the beverage, bread, butter, or
          other condiments or items are omitted, the actual cost of the
          item will be deducted.  In the event LINDLEY's product, in the
          opinion of LIFESTREAM, does not meet specifications as outlined
          in Exhibit 1 up to and including delivery to the meal consumer,
          LINDLEY will be responsible for all costs associated with the
          replacement meal or meal item.  LINDLEY will be notified of the
          shortage or replacement, and the replacement will be deducted
          from LINDLEY's invoice.

     15.  CHARGES AND COMMISSIONS:  LIFESTREAM agrees to compensate
          LINDLEY in accordance with the Financial Addendum A attached
          hereto, made a part hereof, and marked "Financial Addendum A."
          Reimbursement to LIFESTREAM in the form of commission for meals
          produced for customers other than those of LIFESTREAM, will be
          in the amount of seventeen cents ($.17) per meal. Said meal
          rates and commission rates are negotiable between LIFESTREAM
          and LINDLEY for the period of this Agreement through a mutual
          agreement between LIFESTREAM and LINDLEY of meal rates and
          commission rates other than those stated above.

          LINDLEY shall be responsible for all costs of operation of the
          food services described herein, and wages, salaries, and
          benefits of its employees engaged to provide such services.  In
          addition, LINDLEY shall charge any applicable sales tax to all
          that purchase food from LINDLEY, and LINDLEY shall be
          responsible for remittance of such taxes to the proper
          authorities.

     16.  BILLING ADJUSTMENTS:  LINDLEY shall not be permitted to adjust
          the per-meal cost or the commission amount for the first year
          of this Agreement as an assurance of performance abilities, and
          to assure that the LIFESTREAM nutrition program operates within
          benchmarked revenue and expense.  LINDLEY may be permitted to
          adjust the meal cost and commission rate after June 30, 2003 by
          written request, and by mutual agreement of LIFESTREAM and
          LINDLEY.  Effective July 1, 2003, adjustment of said rates
          and/or amounts shall be made in the event of material cost
          changes (whether taxes, labor, merchandise, or equipment).  It
          is understood that commensurate adjustments in selling prices
          or other financial arrangements between LIFESTREAM and LINDLEY
          shall be agreed upon and effected by appropriate officials of
          the parties.  Accompanying any request for changes in selling
          prices or financial arrangements, LINDLEY shall provide
          LIFESTREAM with written documentation of said material cost
          changes necessitating the change.  All obligations hereunder
          are subject

<PAGE>
          to Federal, State, and Local regulations.  In the event the
          building in which LINDLEY's machines are located, are partially
          or completely damaged by fire, the public enemy, or any such
          riots, labor troubles or disturbances, the same shall not be
          considered as a default under the provisions of the Agreement.

     17.  ALTERNATE VENDOR PROCEDURES:  In the event of a meal shortage
          where LINDLEY prepared a meal that was unwholesome, fails to
          meet specifications, or has been substituted without prior
          approval from LIFESTREAM, LIFESTREAM shall note all
          discrepancies on a mutually agreed upon form.  When
          discrepancies exist, and when the service still must be
          delivered, LIFESTREAM shall procure the necessary items from an
          alternate vendor.  LINDLEY will be responsible for establishing
          appropriate alternate vendors in the LIFESTREAM seven-county
          service area.  All meals or portions of meals procured from
          alternate vendors must meet the one-third (1/3) Recommended
          Dietary Allowance necessary for all meals delivered under this
          agreement, and as stated in Exhibit 1.

     18.  TAX EXEMPTION:  It is mutually understood and agreed upon that
          LIFESTREAM is a 501-C3, not-for-profit institution and shall
          provide certification of such tax exemption to LINDLEY.  The
          aforementioned exemption in no way absolves LINDLEY from the
          payment of Federal or State income taxes.

     19.  PROPRIETARY INFORMATION:  During the term of this Agreement,
          LIFESTREAM acknowledges that it may acquire or obtain access to
          proprietary information or materials (the "Proprietary Items")
          of LINDLEY and HOST AMERICA CORPORATION.  Proprietary Items are
          defined as confidential information or materials related to the
          business of LINDLEY which include, but are not limited to,
          trade secrets, signage, trademarks, logo, trade dress, symbols,
          slogan emblem, computer software, recipes, diet manuals,
          videotapes, technical and non-technical data related to the
          operations, methods, techniques, processes, finances, existing
          and future products, procedure and/or personnel manuals, and
          any information which has been disclosed to LINDLEY by a third
          party which LINDLEY is obligated to treat as confidential.

          All Proprietary Items are confidential to and are and will
          remain the sole and exclusive property of LINDLEY.  In the
          event LIFESTREAM receives, obtains access, or otherwise is
          exposed to any Proprietary Items, LIFESTREAM will cause its
          officers, employees, and agents to:

          a)   Hold the Proprietary Items in trust and in strictest
               confidence

          b)   Not produce, use, distribute, or otherwise disseminate the
               Proprietary Items except to the extent necessary to aid
               the performance of the services provided by LINDLEY under
               this Agreement, and

<PAGE>
          c)   Otherwise protect the Proprietary Items from disclosure.

          LIFESTREAM will not photocopy or otherwise duplicate any such
          materials without LINDLEY's written consent.  All confidential
          information will remain LINDLEY's exclusive property and will
          be returned to LINDLEY immediately upon termination of this
          Agreement.

          Likewise, LINDLEY will protect, in the same fashion as covered
          above, Proprietary information that belongs to LIFESTREAM, and
          also ensure that all LINDLEY's employees treat LIFESTREAM's
          service recipient's information as confidential.

     20.  ASSIGNMENT:  This Agreement shall be binding upon, and shall
          inure to the benefit of, the parties hereto and their
          respective successors and permitted assigns.  In the event that
          a third party acquires LINDLEY or LIFESTREAM, this Agreement
          may not be automatically assigned to the third party without
          the prior written consent of either party.

     21.  MARKETING:  LINDLEY will assist LIFESTREAM in marketing the
          Home Delivered and Congregate Meal products to the public as
          indicated in the Bid Proposal.  LINDLEY will provide to
          LIFESTREAM a check upon the signing of this contract for five
          thousand dollars ($5,000.00) to assist in transition and
          marketing of the LINDLEY product to the LIFESTREAM service
          area.

     22.  FURTHER OBLIGATIONS OF LINDLEY:  LINDLEY will provide
          box/picnic lunches, frozen meals, hot home delivered meals, hot
          congregate meals, freshly prepared meals and/or shelf stable
          meals as requested.  LINDLEY will assure that the food product
          reaches the customer as follows:

          a)   Hot foods will be at or above 140 degrees F

          b)   Freshly prepared foods will be at or below 45 degrees F

          c)   Frozen foods will be at or below 10 degrees F

          d)   Neutral foods will be at room temperature

          LINDLEY will provide the following:

               a)   Food serving utensils and equipment
               b)   Alcohol swabs (2 per day per serving site)
               c)   Aluminum trays
               d)   Bleach
               e)   Brown Bags

<PAGE>
               f)   Coffee (ground)
               g)   Coffee cups
               h)   Coffee packets (Regular)
               i)   Comet
               j)   Creamer packets (box)
               k)   Dish soap
               l)   Ice tea mix
               m)   Napkins
               n)   Non-stick coating
               o)   Oven cleaner
               p)   Paper towels
               q)   Pepper (box)
               r)   Pine Cleaner
               s)   Placemats
               t)   Plastic utensils
               u)   Salt (box)
               v)   Sandwich bags
               w)   Scratcher
               x)   Serving gloves
               y)   Serving trays
               z)   Solo cups (P550)
               aa)  Solo cup lids (PL5)
               bb)  SOS pads
               cc)  Soup bowls
               dd)  Squat cups (SD5)
               ee)  Squat cup lids (662)
               ff)  Straws
               gg)  Sugar (5# bag)
               hh)  Sweet-n-low packets
               ii)  Tea bags (box)
               jj)  Tea cups (large)
               kk)  Thank you bags
               ll)  Toilet Cleanser
               mm)  Toilet tissue
               nn)  Trash bags

          At each congregate site, LINDLEY will serve a holiday/special
          events menu on such days as determined by mutual agreement
          between LINDLEY and LIFESTREAM.

          LINDLEY will provide a birthday cake at least once a month for
          each congregate site on the date designated by LIFESTREAM.

<PAGE>
     23.  ACTIONS BETWEEN PARTIES:

          a)   Jurisdiction:  Any and all actions brought by either party
               in connection with or arising out of this Agreement shall
               be brought only in a court of appropriate jurisdiction in
               Delaware County, Indiana, or in the United States District
               Court for the Southern District of Indiana.  LINDLEY
               hereby submits itself to the jurisdiction of any and all
               such courts for the purposes of any litigation between the
               parties in connection with or arising out of this
               Agreement.

          b)   Service of Process:  Any and all service of process upon
               LINDLEY may be given by mailing the documents to be served
               by certified or registered mail, return receipt requested,
               with postage fully paid, to LINDLEY at the following
               address:
               Gil Rossomando, President, Lindley Food Service
               Corporation, 201 Wallace Street, New Haven, CT  06511.
               Service shall then be deemed to occur on the date of
               receipt of LINDLEY of said mailing.

          c)   Litigation Expense:  In the event legal action is
               necessary to enforce the terms of this Agreement, the
               party successful in that legal action shall be entitled to
               the recovery of its attorneys' fees and court costs from
               the party which is unsuccessful in that litigation.

     24.  GOVERNING LAW:  This Agreement shall be governed by,
          interpreted under, construed and enforced according to the laws
          of the State of Indiana.

     25.  HEADINGS AND CAPTIONS:  All headings and captions appearing in
          this Agreement are inserted for purposes of convenience and
          reference only, and shall not be used to construe or interpret
          any provision hereof.

     26.  SEVERABILITY:  If any term, covenant, or condition of this
          Agreement or the application thereof to any person or
          circumstance shall be invalid or unenforceable, the remainder
          of this Agreement and the application of any term or provision
          to persons or circumstances other than those as to which it is
          held invalid or unenforceable shall not be affected thereby,
          and all other terms shall be valid and enforceable to the
          fullest extent permitted by the law.

     27.  WAIVER OF CONTRACTUAL RIGHT:  The failure of either party to
          enforce any provision of this Agreement shall not be construed
          as a waiver or limitation of that party's right to subsequently
          enforce and compel strict compliance with every provision of
          this Agreement.

     28.  ENTIRE AGREEMENT; MODIFICATION:  It is mutually agreed that
          this Agreement sets forth the entire agreement of the parties
          with respect to the subject matter hereof, and supersedes all
          existing agreements between the parties concerning such subject
          matter.  It is further agreed that no alterations

<PAGE>
          or amendments shall be made to this Agreement unless they be in
          writing and approved by both parties.

     29.  AUTHORITY:  LIFESTREAM and LINDLEY each represent that the
          person executing this Agreement on their behalf has been duly
          and validly authorized to execute this Agreement on their
          behalf and that they have full power and authority under all
          applicable laws and their respective articles of incorporation,
          bylaws or governing instrument to enter into this Agreement and
          to perform their obligations hereunder.

LIFESTREAM SERVICES, INC.               LINDLEY FOOD SERVICE

By: /s/ WILLIAM H. BOOTHE               By: /s/ GIL ROSSOMANDO
   -----------------------------           -----------------------------
   William H. Boothe, M P H                Gil Rossomando

Title:    President/CEO                 Title:    President
      --------------------------              --------------------------
          Duly authorized                         Duly authorized

Date:                                   Date:
     ---------------------------             ---------------------------

Attest:                                 Attest:

By:                                     By:
   -----------------------------           -----------------------------

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