Document:

MANUFACTURING SERVICES AGREEMENT

THIS AGREEMENT (the "Agreement") is effective as of April 1, 2002 (the
"Commencement Date"), by and between LIFESTREAM TECHNOLOGIES, INC. a(n) Nevada
corporation having a principal place of business at 510 Clearwater Loop, Ste
101, Post Falls, ID 83814 ("LIFESTREAM") and SCI HOLDINGS, INC., A DIVISION OF
SANMINA-SCI CORPORATION, a United Kingdom corporation having its principal place
of business at 1 Crompton Way, North Newmoor Industrial Estate, Irvine,
Ayrshire, KA11 4 HU Scotland ("SANMINA-SCI").

1. TERM

         The initial term of this Agreement shall commence on the Commencement
Date and shall continue through the first anniversary of the Commencement Date
unless sooner terminated by mutual agreement or in accordance with this
Agreement. Upon the expiry of the initial term, this Agreement shall continue
from year to year until one party terminates the Agreement by giving at least
ninety (90) days' prior written notice to the other party. Notwithstanding the
foregoing, the term of this Agreement shall automatically extend to include the
term of any purchase order ("Order") issued hereunder.

2. PRICING

         2.1 Pricing. During the term, LIFESTREAM shall have the right to
purchase from SANMINA-SCI the products specified in Exhibit A hereto, as such
Exhibit may be amended from time to time (the "Products") at the prices set
forth in Exhibit A (the "Prices"). Prices (a) are in U.S. Dollars, (b) include
SANMINA-SCI designed packaging (unless otherwise specified in the bid
documents), (c) exclude the items set forth in Section 2.2, and (d) are based on
(i) the configuration set forth in the specifications attached hereto as Exhibit
C (the "Specifications") and (ii) the projected volumes, minimum run rates and
other assumptions set forth in SANMINA-SCI's bid letter (if any) and Exhibit A.
The Prices shall remain fixed for the term of the Agreement, subject to
SANMINA-SCI's right to revise Prices (y) to account for any material variations
on the market prices of components, parts and raw material (collectively
"Components"), including any such variations resulting from shortages or (z) the
price adjustments set forth in Section 2.3.

         2.2 Exclusions from Price. Prices do not include (a) export licensing
of the Product or payment of broker's fees, duties, tariffs or other similar
charges; (b) taxes or charges (other than those based on net income of
SANMINA-SCI) imposed by any taxing authority upon the manufacture, sale,
shipment, storage, "value add" or use of the Product which SANMINA-SCI is
obligated to pay or collect; and (c) setup, tooling, or non-recurring
engineering activities (collectively "NRE Charges"). Any charges for these items
shall be separately invoiced.

         2.3 Other Price Adjustments:
             -----------------------

                  (a) LIFESTREAM acknowledges that the Prices set forth in
Exhibit A are based on the forecasted volumes provided by LIFESTREAM to
SANMINA-SCI. In the event LIFESTREAM fails to purchase Product in sufficient
volumes consistent with the quoted prices, SANMINA-SCI reserves the right to
bill-back LIFESTREAM for the difference between the prices paid and the prices
associated with such lower volumes.

                  (b) LIFESTREAM acknowledges that the Prices are based on the
Specifications and the assumptions set forth in SANMINA-SCI's bid letter and in
Exhibit A. In the event SANMINA-SCI experiences an increase in cost as a result
of changes in the pricing assumptions or the Specifications, SANMINA-SCI shall
be entitled to the Price adjustment set forth in Section 6.1.

                  (c) LIFESTREAM acknowledges that some components are purchased
in currencies other than US Dollars are thus subject to currency fluctuation.
The Parties shall agree at the beginning of each calendar quarter on the
exchange rate to be applied for various currencies in relation to the US dollar
during the next calendar period. SCI shall be allowed to nominate the currencies
to be covered based on suppliers' currency mix and the proposed exchange rate
for each nominated currency, which shall reasonably reflect the current exchange

<PAGE>

rate valid for the next calendar period, both parties recognizing that neither
party controls financial market future variances from this rate. In agreeing to
the nominated exchange rate for each currency, the Parties shall apply a plus
1.5 per cent (+1.5%) and a minus 1.5 percent (-1.5%) dead zone in which the
actual exchange rate may vary during the period without either party seeking
adjustment from the other during the calendar quarter, but in all cases will be
reconciled at the end of each calendar quarter. To the extent the actual
exchange rate varies outside this dead zone during the course of the calendar
quarter, either party have the right, but not the obligation, to request a
reconciliation during the calendar period so as to achieve an equitable net
currency exchange adjustment back to the agreed exchange rates. Any such
adjustments under this Exhibit shall be made in good faith, expeditiously by
both parties, and always with the goal that the payment received for Products
should not be affected by exchange rate fluctuations, which are agreed to be
beyond the control of either party. At the end of each calendar quarter (or
earlier as the case may be) the actual SCI cost of non-US dollar currencies
utilized to purchase components and services will be reconcilied back to the
agreed US dollar exhange value, and the difference in cost will be either
invoiced by SANMINA-SCI or credited to LIFESTREAM, on a net basis.

         2.4 Product Ordering. Product ordering shall be in accordance with the
schedule or method of releases by Orders set forth in Article 4.

3. PAYMENT TERMS

         Payment terms are (*) after date of invoice. On any invoice not paid by
maturity date, LIFESTREAM shall pay interest from maturity to date of payment at
the rate of 1.5% per month. Payment shall be made in U.S. Dollars. Offsets and
setoffs by either party are not allowed. In the event LIFESTREAM has any
outstanding invoice for (*), SANMINA-SCI shall have the right to stop shipments
of Product to LIFESTREAM until LIFESTREAM makes a sufficient payment to bring
its account within the credit limit provided.

4. PURCHASE ORDERS/FORECAST/RESCHEDULE

         4.1 Purchase Orders.
             ----------------

                  (a) LIFESTREAM will issue to SANMINA-SCI specific Orders for
Product covered by this Agreement. Each Order shall be in the form of a written
or electronic communication and shall contain the following information: (i) a
description of the Product by model number; (ii) the quantity of the Product;
(iii) the delivery date or shipping schedule; (iv) the location to which the
Product is to be shipped; and (v) transportation instructions. Each Order shall
provide an order number for billing purposes, and may include other instructions
as may be appropriate under the circumstances.

                  (b) All Orders shall be confirmed by SANMINA-SCI within five
(5) business days of receipt. If SANMINA-SCI does not accept or reject the Order
within the five day period, the Order shall be deemed rejected by SANMINA-SCI
unless SANMINA-SCI has commenced performance, in which case the Order shall be
deemed accepted to the extent of such performance. In the event SANMINA-SCI is
unable to meet the delivery schedule set forth in a proposed Order, or finds the
schedule to be unacceptable for some other reason, the parties shall negotiate
in good faith to resolve the disputed matter(s).

         4.2 Forecast; Minimum Buys; Excess and Obsolete Inventory.
             -----------------------------------------------------

                  (a) Initial Forecast. Upon the execution of this Agreement,
LIFESTREAM shall provide SANMINA-SCI with (i) an initial ninety (90) day firm
Order and (ii) a forecast for Product requirements (in monthly buckets) for an
additional nine (9) months ("Forecast"). The Order - and all subsequent Orders -
shall be binding and may be rescheduled only in accordance with Section 4.2(d)
or cancelled in accordance with Section 4.2(g). SANMINA-SCI shall make purchase
commitments (including purchase commitments for Long Lead-time Components) to
its Component suppliers ("Vendors") based upon the Order and Forecast, and
LIFESTREAM shall be responsible for all such Components purchased in support of
LIFESTREAM's then-current Forecast. For all other purposes, however, the
Forecast shall be non-binding.

(*) Confidential treatment requested.

<PAGE>

                  (b) Subsequent Forecasts. On the first business day of each
calendar month after the initial Order and Forecast, the first Forecast month
shall automatically become part of the Order, a new Forecast month shall be
added, and a new firm Order issued, so that a rolling Order of ninety (90) days
is always maintained.

                  (c) MRP Process.
                      ------------

                           (1) SANMINA-SCI shall take the Order and Forecast and
generate a Master Production Schedule ("MPS") for a twelve-month period in
accordance with the process described in this Section. The MPS shall define the
master plan on which SANMINA-SCI shall base its procurement, internal capacity
projections and commitments. SANMINA-SCI shall use LIFESTREAM's Order to
generate the first three (3) months of the MPS and shall use LIFESTREAM's
Forecast to generate the subsequent nine (9) months of the MPS.

                           (2) SANMINA-SCI shall process the MPS through
industry-standard software (the "MRP Software") that will break down
LIFESTREAM's Product requirements into Component requirements. When no Product
testing (in-circuit or functional testing) is required by LIFESTREAM,
SANMINA-SCI will use commercially reasonable efforts to schedule delivery of all
Components to SANMINA-SCI eleven working days before the Products are scheduled
to ship to LIFESTREAM; in the event Product testing is required, SANMINA-SCI
will use commercially reasonable efforts to schedule delivery of all Components
to SANMINA-SCI sixteen working days before the Products are scheduled to ship to
LIFESTREAM.

                           (3) SANMINA-SCI will release (launch) purchase orders
to Vendors prior to the anticipated date that the Components are needed at
SANMINA-SCI. The date on which these orders are launched will depend on the lead
time determined between the Vendor and SANMINA-SCI and SANMINA-SCI's
manufacturing or materials planning systems.

                           (4) A list of all Components with lead times greater
than ninety days ("Long Lead-time Components") is set forth in Exhibit B to this
Agreement which will be amended from time to time by agreement of the Parties.
SANMINA-SCI shall use reasonable efforts to update the list of Long Lead-time
Components every quarter and present an updated list of Long Lead-time
Components to LIFESTREAM at the time SANMINA-SCI presents LIFESTREAM with the
E&O List described in section 4.2(e). Each revised Long Lead-time Item list
shall be deemed an amendment to Exhibit B. In the event SANMINA-SCI fails to
present an updated list of Long Lead-time Components, (i) the parties shall
continue to rely on the preceding list (as updated in writing by the parties)
and (ii) LIFESTREAM will accept responsibility for Long Leadtime Components
ordered outside the leadtimes set forth in the list provided that SANMINA-SCI
can demonstrate to LIFESTREAM'S reasonable satisfaction that such Components
were ordered in accordance with the then-current Vendor leadtimes. (LIFESTREAM
acknowledges that leadtimes constantly change and that SANMINA-SCI might not
always be able to present LIFESTREAM with a current Long Leadtime Component
List).

                           (5) LIFESTREAM acknowledges that SANMINA-SCI will
order Components in quantities sufficient to support up to six months of
LIFESTREAM's Forecast. In determining the quantity of Components to order,
SANMINA-SCI divides the Components into three classes, "Class A" "Class B" and
"Class C". Class A Components are comprised of the approximately three percent
(3%) of Components constituting approximately eighty percent (80%) of the
Product's total Component cost Class C Components are comprised of the
approximately eighty percent (80%) of Components constituting approximately
three percent (3%) of the Product's total Component cost. Class B Components are
comprised of the remaining seventeen percent (17%) of Components constituting
approximately seventeen percent (17%) of the Product's total Component cost.
SANMINA-SCI will place orders with its vendors for approximately one (1-2)
weeks' worth of Class A Components, two (2-4) weeks worth of Class B Components
and three (3) months' worth of Class C Components. A summary of SANMINA-SCI's
purchase commitments is set forth in the table below.

<PAGE>

<TABLE>
<CAPTION>

---------------------------- -------------------------- -------------------------- --------------------------
Part Class                   Expected Percentage of     Expected Percentage  of    Periods Worth of Supply
                             Total Parts                Total Value (of  Gross     to be Bought with Each
                                                        Requirements)              Order
---------------------------- -------------------------- -------------------------- --------------------------
<S>                          <C>                        <C>                        <C>
A                            3%                         80%                        1-2 Weeks
---------------------------- -------------------------- -------------------------- --------------------------
B                            17%                        17%                        2-4 Weeks
---------------------------- -------------------------- -------------------------- --------------------------
C                            80%                        3%                         3 Months
---------------------------- -------------------------- -------------------------- --------------------------
</TABLE>

                           (6) LIFESTREAM acknowledges that SANMINA-SCI will be
required to order Components in accordance with the various minimum buy
quantities, tape and reel quantities, and multiples of packaging quantities
required by the Vendor. In addition, LIFESTREAM acknowledges that there is a lag
time between any Lifestream cancellation and the cancellation of the Components
required to support production.

                  (d) Reschedule. LIFESTREAM may reschedule all or part of a
scheduled delivery (per purchase order or forecast) one (1) time per quarter
(for a maximum of two quarters) for a period not to exceed forty-five (45) days
in accordance with the table below. At the end of this forty-five day period,
LIFESTREAM shall either accept delivery of rescheduled finished units and/or pay
SANMINA-SCI's Delivered Component Cost (as defined in Section 4.2(e)) associated
with rescheduled units not yet built.

         [As an example, assume that LIFESTREAM's purchase order requested
         delivery of 100 units on July 31, 100 units on August 31, 100 units on
         September 30 and 100 units on October 31. On July 15, LIFESTREAM asks
         SANMINA-SCI to reschedule all deliveries to the maximum extent
         permitted under this Agreement. Because the Agreement does not permit
         reschedules within thirty days of the delivery date, none of the units
         scheduled for delivery on July 31 would be affected. SANMINA-SCI would,
         however, reschedule the delivery of fifteen units scheduled to be
         delivered on August 31 to October 15 (within 60 days, LIFESTREAM can
         reschedule 15% of any scheduled delivery for a maximum of 45 days),
         reschedule the delivery of thirty units scheduled to be delivered on
         September 30 to November 15 (within 90 days, LIFESTREAM can reschedule
         30% of any scheduled delivery for a maximum of 45 days), and reschedule
         the delivery of 100 units scheduled to be delivered on October 31 to
         December 15 (after 90 days, LIFESTREAM can reschedule 100% of any
         scheduled delivery for a maximum of 45 days .]

<TABLE>
<CAPTION>

------------------------------------------------ ---------------------------------------------------------
DAYS BEFORE P.O. DELIVERY DATE                   PERCENTAGE RESCHEDULE ALLOWANCE
------------------------------------------------ ---------------------------------------------------------
<S>                                              <C>
0 - 30                                           No Change
------------------------------------------------ ---------------------------------------------------------
31 - 60                                          15%
------------------------------------------------ ---------------------------------------------------------
61-90                                            30%
------------------------------------------------ ---------------------------------------------------------
> 90                                             100%
------------------------------------------------ ---------------------------------------------------------
</TABLE>

         SANMINA-SCI shall use reasonable commercial efforts to accommodate any
upside schedule changes beyond the firm order periods.

                  (e) Excess and Obsolete Inventory. Within a reasonable time
after the end of each calendar quarter, SANMINA-SCI shall advise LIFESTREAM in
writing of any excess or obsolete Components in its inventory and the Delivered
Cost of such Components (the "E&O List"). For the purpose of this Agreement,
"Delivered Cost" shall mean SANMINA-SCI's quoted cost of Components as stated on
the bill of materials plus a materials margin equal to fifteen percent (15%).
Within five (5) business days of receiving SANMINA-SCI's E&O List, LIFESTREAM
shall advise SANMINA-SCI of any Component on the E&O List that it believes is
not excess or obsolete. Within ten business days after receiving SANMINA-SCI's
E&O List, SANMINA-SCI and LIFESTREAM shall finalize the E&O List, and LIFESTREAM
shall issue to SANMINA-SCI an Order for all Components on the E&O List.
LIFESTREAM shall pay SANMINA-SCI its Delivered Cost for Components on the E&O
List within fifteen (15) days of the date of invoice. In the event the parties
cannot agree as to the Components on the E&O List, LIFESTREAM shall pay
SANMINA-SCI for all non-disputed Components in accordance with this Section, and
shall pay SANMINA-SCI for all other Components on SANMINA-SCI's E&O List (in the
event they remain excess or obsolete) forty-five days thereafter. For the

<PAGE>

purpose of this Section, the phrase "obsolete Component" shall mean any
Component which is not currently used to manufacture LIFESTREAM's Product
(whether as a result of an ECO or otherwise), and the term "excess Component"
shall mean any Component which is not required to meet LIFESTREAM's Order or
LIFESTREAM's Forecast to which such Component was initially ordered. LIFESTREAM
shall not have the right to delay payment for excess Components by increasing or
pushing out its Forecast.

                  (g) LIFESTREAM Component Liability. LIFESTREAM acknowledges
that it shall be financially liable for all Components ordered in accordance
with this Article. Specifically, LIFESTREAM's Component Liability shall be equal
to SANMINA-SCI's Delivered Cost of all Components ordered in support of any
Order or Forecast, including any excess Components resulting from any minimum
buy quantities, tape and reel quantities, and multiples of packaging quantities
required by the Vendor less the actual cost (per the bill of materials) of those
Components which are returnable to Vendor (less any cancellation or restocking
charges). At LIFESTREAM'S request, SANMINA-SCI shall use commercially reasonable
efforts to minimize LIFESTREAM'S Component Liability by attempting to return
Components to the Vendor; provided, however, that SANMINA-SCI shall not be (*).

5. DELIVERY AND ACCEPTANCE

         5.1 Delivery. All Product shipments shall be EX WORKS SANMINA-SCI's
facility of manufacture (INCOTERMS 2000) and freight collect. Title to and risk
of loss or damage to the Product shall pass to LIFESTREAM upon SANMINA-SCI's
tender of the Product to LIFESTREAM's carrier. SANMINA-SCI shall mark, pack,
package, crate, transport, ship and store Product to ensure (a) delivery of the
Product to its ultimate destination in safe condition, (b) compliance with all
requirements of the carrier and destination authorities, and (c) compliance with
any special instructions of LIFESTREAM. SANMINA-SCI shall use reasonable efforts
to deliver the Products on the agreed-upon delivery dates and shall use
reasonable efforts to notify LIFESTREAM of any anticipated delays; provided,
however that SANMINA-SCI shall not be liable for any failure to meet LIFESTREAM
delivery dates and/or any failure to give notice of anticipated delays.

         5.2 Acceptance. Acceptance of the Product shall occur no later than
fifteen (15) days after the arrival of the shipment of Product and shall be
based solely on whether the Product passes a mutually agreeable Acceptance Test
Procedure or Inspection designed to demonstrate compliance with the
Specifications, to include, mutually agreed to 3rd party audit of the finished
goods as part of the quality plan Exhibit G. Product cannot be rejected based on
criteria that were unknown to SANMINA-SCI or based on test procedures that
SANMINA-SCI does not conduct. Product shall be deemed accepted if not rejected
within this fifteen-day period. Once a Product is accepted, all Product returns
shall be handled in accordance with Article 7 (Warranty). Prior to returning any
rejected Product, LIFESTREAM shall obtain an Authorized Return Material ("ARM")
number from SANMINA-SCI, and shall return such Product in accordance with
SANMINA-SCI's instructions; LIFESTREAM shall specify the reason for such
rejection in all ARM's. In the event a Product is rejected, SANMINA-SCI shall
have a reasonable opportunity to cure any defect which led to such rejection.

6. CHANGES

         6.1 General. LIFESTREAM may upon sufficient notice make changes within
the general scope of this Agreement. Such changes may include, but are not
limited to changes in (1) drawings, plans, designs, procedures, Specifications,
test specifications or BOM, (2) methods of packaging and shipment, (3)
quantities of Product to be furnished, (4) delivery schedule, or (5)
Customer-Furnished Items. All changes other than changes in quantity of Products
to be furnished shall be requested pursuant to an Engineering Change Notice
("ECN") and, if accepted by LIFESTREAM, finalized in an Engineering Change Order
("ECO"). If any such change causes either an increase or decrease in
SANMINA-SCI's cost or the time required for performance of any part of the work
under this Agreement (whether changed or not changed by any ECO) the Prices
and/or delivery schedules shall be adjusted in a manner which would adequately
compensate the parties for such change.

(*) Confidential treatment requested
<PAGE>

         6.2 ECN's. SANMINA-SCI will respond to one ECN request per month
without a non-recurring administrative fee; responses to additional ECN's will
incur an administrative fee of $1,000.00 each. Within five (5) business days
after an ECN is received, SANMINA-SCI shall advise LIFESTREAM in writing (a) of
any change in Prices or delivery schedules resulting from the ECN and (b) the
Delivered Cost of any Finished Product, Work-in-Process or Component rendered
excess or obsolete as a result of the ECN (collectively the "ECN Charge").
Unless otherwise stated, ECN Charges are valid from thirty (30) days from the
date of the ECN Charge.

         6.3 ECO's. In the event LIFESTREAM desires to proceed with the change
after receiving the ECN Charge pursuant to Section 6.2, LIFESTREAM shall advise
SANMINA-SCI in writing and shall immediately pay the portion of the ECN Charge
set forth in Section 6.2(b). In the event LIFESTREAM does not desire to proceed
with the Change after receiving the ECN change, it shall so notify SANMINA-SCI.
In the event SANMINA-SCI does not receive written confirmation of LIFESTREAM's
desire to proceed with the change within thirty days after SANMINA-SCI provides
LIFESTREAM with the ECN Charge, the ECN shall be deemed cancelled.

7. WARRANTY

         7.1 SANMINA-SCI Warranty. SANMINA-SCI's warranty period is for one year
from date of manufacture and is limited to correction of defects in SANMINA-SCI
workmanship. For the purpose of this Section, "workmanship" shall mean
manufacture in accordance with the most current version of IPC-A-600 or
IPC-A-610, or LIFESTREAM's workmanship standards set forth in the
Specifications. SANMINA-SCI shall, at its option and at its expense, repair,
replace or issue a credit for Product found defective during the warranty
period. In addition, SANMINA-SCI will pass on to LIFESTREAM all manufacturer's
Component warranties to the extent that they are transferable, but will not
independently warrant any Components.

         7.2 ARM Procedure. SANMINA-SCI shall concur in advance on all Product
to be returned for repair or rework. LIFESTREAM shall obtain an Authorized
Returned Material (ARM) number from SANMINA-SCI prior to return shipment. All
returns shall state the specific reason for such return, and will be processed
in accordance with SANMINA-SCI's Authorized Returned Material Procedure, a copy
of which is available from SANMINA-SCI upon request SANMINA-SCI shall pay all
transportation costs for valid returns of the Products to SANMINA-SCI and for
the shipment of the repaired or replacement Products to LIFESTREAM, and shall
bear all risk of loss or damage to such Products while in transit; LIFESTREAM
shall pay these charges, plus a handling charge, for invalid or "no defect
found" returns. Any repaired or replaced Product shall be warranted as set forth
in this Article for a period equal to the greater of (i) the balance of the
applicable warranty period relating to such Product or (ii) sixty (60) days
after it is received by LIFESTREAM.

         7.3 Exclusions From Warranty. This warranty does not include Products
that have defects or failures resulting from (a) LIFESTREAM's design of Products
including, but not limited to, design functionality failures, specification
inadequacies, failures relating to the functioning of Products in the manner for
the intended purpose or in the specific LIFESTREAM's environment; (b) accident,
disaster, neglect, abuse, misuse, improper handling, testing, storage or
installation including improper handling in accordance with static sensitive
electronic device handling requirements; (c) alterations, modifications or
repairs by LIFESTREAM or third parties or (d) defective Customer-provided test
equipment or test software. LIFESTREAM bears all design responsibility for the
Product.

         7.4 Remedy. THE SOLE REMEDY UNDER THIS WARRANTY SHALL BE THE REPAIR,
REPLACEMENT OR CREDIT FOR DEFECTIVE PARTS AS STATED ABOVE. THIS WARRANTY IS IN
LIEU OF ANY OTHER WARRANTIES EITHER EXPRESS OR IMPLIED, INCLUDING
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

8. LIFESTREAM FURNISHED EQUIPMENT AND COMPONENTS

         8.1 Customer-Furnished Items. LIFESTREAM shall provide SANMINA-SCI with
the equipment, tooling, Components or documentation set forth in EXHIBIT D
(collectively the "Customer-Furnished Items"). The Customer-Furnished Items
shall be fit for their intended purposes and shall be delivered to SANMINA-SCI
in a timely manner. Documentation (including BOM's, drawings and artwork) shall
be current and complete. LIFESTREAM shall be responsible for schedule delay,
reasonable inventory carrying charges and allocated equipment down time charges
associated with the incompleteness, late delivery or non-delivery of the
Customer-Furnished Items.

<PAGE>

         8.2 Care of Customer-Furnished Items. All Customer-Furnished Items
shall remain the property of LIFESTREAM. SANMINA-SCI shall clearly identify all
Customer-Furnished Items by an appropriate tag and shall utilize such
Customer-Furnished Items solely in connection with the manufacture of
LIFESTREAM's Product. SANMINA-SCI shall not make or allow modifications to be
made to the Customer-Furnished Items without LIFESTREAM's prior written consent.
SANMINA-SCI shall be responsible for reasonable diligence and care in the use
and protection of any Customer-Furnished Items and routine maintenance and
repairs of any Customer-Furnished Equipment, but shall not be responsible for
major repairs or replacements (including service warranties and calibration to
the equipment) or repair or replacement of failed Customer-Furnished Item unless
such failure was caused by SANMINA-SCI's negligence or willful misconduct. All
Customer-Furnished Items shall be returned to LIFESTREAM at LIFESTREAM's expense
upon request and SAMINA-SCI's production and warranty obligations which require
the utilization of the returned Customer-Furnished Items will cease upon
SANMINA-SCI's fulfillment of LIFESTREAM's request.

         8.3 Customer-Furnished Components. Customer-furnished Components shall
be handled in accordance with SANMINA-SCI's procedures regarding
Customer-Furnished Material, incorporated by reference herein, copies of which
are available upon request.

9. INDEMNIFICATION AND LIMITATION OF LIABILITY

         9.1 SANMINA-SCI's Indemnification. SANMINA-SCI shall indemnify, defend,
and hold LIFESTREAM and LIFESTREAM's affiliates, shareholders, directors,
officers, employees, contractors, agents and other representatives (the
"Customer-Indemnified Parties") harmless from all demands, claims, actions,
causes of action, proceedings, suits, assessments, losses, damages, liabilities,
settlements, judgments, fines, penalties, interest, costs and expenses
(including fees and disbursements of counsel) of every kind (each a "Claim,"
and, collectively "Claims") (i) based upon personal injury or death or injury to
property to the extent any of the foregoing is proximately caused either by the
negligent or willful acts or omissions of SANMINA-SCI or its officers,
employees, subcontractors or agents and/or (ii) arising from or relating to any
actual or alleged infringement or misappropriation of any patent, trademark,
mask work, copyright, trade secret or any actual or alleged violation of any
other intellectual property rights arising from or in connection with
SANMINA-SCI's manufacturing processes.

         9.2 LIFESTREAM's Indemnification. LIFESTREAM is responsible for the
design of the Products. LIFESTREAM shall indemnify, defend, and hold SANMINA-SCI
and SANMINA-SCI's affiliates, shareholders, directors, officers, employees,
contractors, agents and other representatives (the "SANMINA-SCI-Indemnified
Parties") harmless from all Claims (i) based upon personal injury or death or
injury to property to the extent any of the foregoing is proximately caused
either by a defective Product, by the negligent or willful acts or omissions of
LIFESTREAM or its officers, employees, subcontractors or agents, and/or (ii)
arising from or relating to any allegation that the Product has a design
defect(s), and/or (iii) arising from or relating to any actual or alleged
infringement or misappropriation of any patent, trademark, mask work, copyright,
trade secret or any actual or alleged violation of any other intellectual
property rights arising from or in connection with the Products, except to the
extent that such infringement exists as a result of use by LIFESTREAM of
SANMINA-SCI's manufacturing processes.

         9.3 Procedure. A party entitled to indemnification pursuant to this
Article (the "Indemnitee") shall promptly notify the other party (the
"Indemnitor") in writing of any Claims covered by this indemnity. Promptly after
receipt of such notice, the Indemnitor shall assume the defense of such Claim
with counsel reasonably satisfactory to the Indemnitee. If the Indemnitor fails,
within a reasonable time after receipt of such notice, to assume the defense
with counsel reasonably satisfactory to the Indemnitee or, if in the reasonable
judgment of the Indemnitee, a direct or indirect conflict of interest exists
between the parties with respect to the Claim, the Indemnitee shall have the
right to undertake the defense, compromise and settlement of such Claim for the

<PAGE>

account and at the expense of the Indemnitor. Notwithstanding the foregoing, if
the Indemnitee in its sole judgment so elects, the Indemnitee may also
participate in the defense of such action by employing counsel at its expense,
without waiving the Indemnitor's obligation to indemnify and defend. The
Indemnitor shall not compromise any Claim or consent to the entry of any
judgment without an unconditional release of all liability of the Indemnitee to
each claimant or plaintiff.

         9.4 Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE
TO THE OTHER FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTIAL, PUNITIVE OR SPECIAL
DAMAGES, OR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE, DATA OR PROFITS,
EVEN IF SUCH OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES;
provided, however, that this Section shall not prevent a party from incurring
the liabilities set forth in Section 9 (Indemnification) or 10 (Termination). IN
NO EVENT SHALL SANMINA-SCI'S LIABILITY UNDER THIS AGREEMENT (WHETHER ASSERTED AS
A TORT CLAIM OR CONTRACT CLAIM) EXCEED THE AMOUNTS PAID TO SANMINA-SCI
HEREUNDER. IN NO EVENT WILL SANMINA-SCI BE LIABLE FOR COSTS OF PROCUREMENT OF
SUBSTITUTE GOODS BY LIFESTREAM. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING
ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

10. TERMINATION

         10.1 Termination for Cause. Either party may terminate this Agreement
or an Order hereunder for default if the other party materially breaches this
Agreement; provided, however, no right of default shall accrue until (*) after
the defaulting party is notified in writing of the material breach and has
failed to cure or give adequate assurances of performance within (*) period
after notice of material breach. Notwithstanding the foregoing, there shall be
no cure period for payment-related defaults.

         10.2 Termination For Convenience. Either party may terminate this
Agreement hereunder for any reason (*) prior written notice. In addition,
LIFESTREAM may terminate an Order hereunder for any reason upon ninety days'
(before scheduled shipment) prior written notice.

         10.3 Termination by Operation of Law. This Agreement shall immediately
terminate should either party (a) become insolvent; (b) enter into or file a
petition, arraignment or proceeding seeking on order for relief under the
bankruptcy laws of its respective jurisdiction; (c) enter into a receivership of
any of its assets or (d) enter into a dissolution or liquidation of its assets
or an assignment for the benefit of its creditors.

         10.4 Consequences of Termination.
              ---------------------------

                  a. Termination for Reasons other than SANMINA-SCI's Breach. In
the event this Agreement or an Order hereunder is terminated for any reason
other than a breach by SANMINA-SCI (including but not limited to a force majeure
or termination for convenience), LIFESTREAM shall pay SANMINA-SCI, termination
charges equal to (1) the contract price for all finished Product existing at the
time of termination; (2) SANMINA-SCI's cost (including labor, Components and a
fifteen percent mark-up on Components and labor) for all work in process; and
(3) LIFESTREAM'S Component Liability pursuant to Section 4.2(f).

                  b. Termination Resulting From SANMINA-SCI'S Breach. In the
event LIFESTREAM terminates this Agreement or any Order hereunder as a result of
a breach by SANMINA-SCI, LIFESTREAM shall pay SANMINA-SCI, termination charges
equal to (1) the contract price for all finished Product existing at the time of
termination; (2) SANMINA-SCI's cost (including labor, Components) for all work
in process; and (3) LIFESTREAM'S Component Liability pursuant to Section 4.2(f);
provided, however, that for the purposes of this subsection only, LIFESTREAM's
Component Liability shall be calculated using "actual cost" rather than
"Delivered Cost."

11. QUALITY

         11.1 Specifications. Product shall be manufactured by SANMINA-SCI in
accordance with the Specifications set forth in Exhibit C, as modified via
written ECO's in accordance with this Agreement. Neither party shall make any
change to the Specifications, to any Components described therein, or to the
Products (including, without limitation, changes in form, fit, function, design,

(*) Confidential treatment requested.

<PAGE>

appearance or place of manufacture of the Products or changes which would affect
the reliability of any of the Products) unless such change is made in accordance
with Section 6.1 and SANMINA-SCI's ECO procedure. Notwithstanding the foregoing,
SANMINA-SCI shall be permitted to make changes in its manufacturing process at
any time, so long as such changes do not affect the form, fit or function of the
Products.

         11.2 Content of Specifications. The Specifications shall include, but
shall not be limited to (i) detailed electrical, mechanical, performance and
appearance specifications for each model of Product, (ii) the BOM; (iii) tooling
specifications, along with a detailed description of the operation thereof, (iv)
art work drawings, (v) Component specifications, (vi) supplier cross references.

         11.3 Quality of Components. SANMINA-SCI shall use in its production of
Products such Components of a type, quality, and grade specified by LIFESTREAM
to the extent LIFESTREAM chooses to so specify, and shall purchase Components
only from Vendors appearing on LIFESTREAM's approved vendor list ("AVL");
provided, however, that in the event SANMINA-SCI cannot purchase a Component
from a Vendor on LIFESTREAM'S AVL for any reason, SANMINA-SCI shall be able to
purchase such Component from an alternate Vendor, subject to LIFESTREAM's prior
written approval, which approval shall not be unreasonably withheld or delayed.

         11.4 Quality Specifications. SANMINA-SCI shall comply with the quality
specifications set forth in its Quality Manual, incorporated by reference
herein, a copy of which is available from SANMINA-SCI upon request.

         11.5 Inspection of Facility. Upon reasonable advance written notice,
LIFESTREAM may inspect the Products and Components held by SANMINA-SCI for
LIFESTREAM at SANMINA-SCI's facilities during SANMINA-SCI's regular business
hours, provided that such inspection does not unduly affect SANMINA-SCI'S
operations. LIFESTREAM and its representatives shall observe all security and
handling measures of SANMINA-SCI while on SANMINA-SCI's premises. LIFESTREAM and
its representatives acknowledge that their presence on SANMINA-SCI's property is
at their sole risk.

12. FORCE MAJEURE

         12.1 Force Majeure Event. For purposes of this Agreement, a "Force
Majeure Event" shall mean (i) the occurrence of unforeseen circumstances beyond
a party's control and without such party's negligence or intentional misconduct,
including, but not limited to, any act by any governmental authority, act of
war, natural disaster, strike, boycott, embargo, shortage, riot, lockout, labor
dispute, civil commotion and (ii) the failure of a Vendor to timely deliver a
Component to SANMINA-SCI.

<PAGE>

         12.2 Notice of Force Majeure Event. Neither party shall be responsible
for any failure to perform due to a Force Majeure Event provided that such party
gives notice to the other party of the Force Majeure Event as soon as reasonably
practicable, but not later than five (5) days after the date on which such Party
knew or should reasonably have known of the commencement of the Force Majeure
Event, specifying the nature and particulars thereof and the expected duration
thereof; provided, however, that the failure of a party to give notice of a
Force Majeure Event shall not prevent such party from relying on this Section
except to the extent that the other party has been prejudiced thereby

         12.3 Termination of Force Majeure Event. The party claiming a Force
Majeure Event shall use reasonable efforts to mitigate the effect of any such
Force Majeure Event and to cooperate to develop and implement a plan of remedial
and reasonable alternative measure to remove the Force Majeure Event; provided,
however, that neither party shall be required under this provision to settle any
strike or other labor dispute on terms it considers to be unfavorable to it.
Upon the cessation of the Force Majeure Event, the party affected thereby shall
immediately notify the other party of such fact, and use its best efforts to
resume normal performance of its obligations under the Agreement as soon as
possible.

         12.4 Limitations. Notwithstanding that a Force Majeure Event otherwise
exists, the provisions of this Article shall not excuse (i) any obligation of
either party, including the obligation to pay money in a timely manner for
Product actually delivered other liabilities actually incurred, that arose
before the occurrence of the Force Majeure Event causing the suspension of
performance; or (ii) any late delivery of Product, equipment, materials,
supplies, tools, or other items caused solely by negligent acts or omissions on
the part of such party.

         12.5 Termination for Convenience. In the event a party fails to perform
any of its obligations for reasons defined above for a cumulative period of
ninety (90) days or more from the date of such party's notification to the other
party then the other party at its option may extend the corresponding delivery
period for the length of the delay, or terminate this Agreement for Convenience
in accordance with Paragraph 10.2.

13. CONFIDENTIALITY

         13.1 Definitions. For the purpose of this Agreement,

                  (a) "Confidential Information" means information (in any form
or media) regarding a party's customers, prospective customers (including lists
of customers and prospective customers), methods of operation, engineering
methods and processes (include any information which may be obtained by a party
by reverse engineering, decompiling or examining any software or hardware
provided by the other party under this Agreement), programs and databases,
patents and designs, billing rates, billing procedures, vendors and suppliers,
business methods, finances, management, or any other business information
relating to such party (whether constituting a trade secret or proprietary or
otherwise) which has value to such party and is treated by such party as being
confidential. Confidential Information in documentary or other tangible form
will be clearly and conspicuously marked as `Confidential' or some similar
marking. Verbal disclosures must be identified as confidential at the time of
disclosure and must be confirmed in writing as confidential within thirty (30)
days of the initial disclosure.

                  Confidential Information does not include information that (i)
is known to the other party prior to receipt from the disclosing party
hereunder, which knowledge shall be evidenced by written records, (ii) is
independently developed as evidenced by written records, (iii) is or becomes in
the public domain through no breach of this Agreement, or (iv) is received from
a third party without breach of any obligation of confidentiality; and provided
further, that Confidential Information does not include any information provided
by LIFESTREAM to SANMINA-SCI regarding the manufacturing process.

                  (b) "Person" shall mean and include any individual,
partnership, association, corporation, trust, unincorporated organization,
limited liability company or any other business entity or enterprise.

                  (c) "Representative" shall mean a party's employees, agents,
or representatives, including, without limitation, financial advisors, lawyers,
accountants, experts, and consultants.

<PAGE>

13.2 Nondisclosure Covenants.
     -----------------------

                  (a) In connection with this Agreement, each party (the
"Disclosing Party") may furnish to the other party (the "Receiving Party") or
its Representatives certain Confidential Information. For a period of three (3)
years from the date of this Agreement, the Receiving Party (a) shall maintain as
confidential all Confidential Information heretofore or hereafter disclosed to
it by the Disclosing Party, (b) shall not, directly or indirectly, disclose any
such Confidential Information to any Person other than those Representatives of
the Receiving Party whose duties justify the need to know such Confidential
Information and then only after each Representative has agreed to be bound by
this Confidentiality Agreement and clearly understands his or her obligation to
protect the confidentiality of such Confidential Information and to restrict the
use of such Confidential Information and (c) shall treat such Confidential
Information with the same degree of care as it treats its own Confidential
Information (but in no case with less than a reasonable degree of care).

                  (b) The disclosure of any Confidential Information is solely
for the purpose of enabling each party to perform under this Agreement, and the
Receiving Party shall not use any Confidential Information disclosed by the
Disclosing Party for any other purpose.

                  (c) Except as otherwise set forth in this Agreement, all
Confidential Information supplied by the Disclosing Party shall remain the
property of the Disclosing Party, and will be promptly returned by the Receiving
Party upon receipt of written request therefor.

                  (d) If the Receiving Party or its Representative is requested
or become legally compelled to disclose any of the Confidential Information, it
will provide the Disclosing Party with prompt written notice. If a protective
order or other remedy is not obtained, then only that part of the Confidential
Information that is legally required to be furnished will be furnished, and
reasonable efforts will be made to obtain reliable assurances of
confidentiality.

         13.3 Injunctive Relief Authorized. Any material breach of this Section
by a party or its Representatives may cause irreparable injury and the
non-breaching party may be entitled to equitable relief, including injunctive
relief and specific performance, in the event of a breach. The above will not be
construed to limit the remedies available to a party. In addition, the
prevailing party will be entitled to be reimbursed for all of its reasonable
attorneys' fees and expenses at all levels of proceedings and for
investigations, from the non-prevailing party.

14. INSURANCE

         SANMINA-SCI agrees to maintain during the term of this Agreement (a)
workers' compensation insurance as prescribed by the law of the state in which
SANMINA-SCI's services are performed; (*) SANMINA-SCI shall furnish to
LIFESTREAM certificates or evidence of the foregoing insurance indicating the
amount and nature of such coverage and the expiration date of each policy. Each
party agrees that it, its insurer(s) and anyone claiming by, through, under or
in its behalf shall have no claim, right of action or right of subrogation
against the other party and the other party's affiliates, directors, officers,
employees and customers based on any loss or liability insured against under the
insurance required by this Agreement.

15. MISCELLANEOUS

         15.1 Integration Clause. This Agreement (including the Exhibits and
Schedules to this Agreement) constitutes the entire agreement of the parties,
superseding all previous Agreements covering the subject matter. This Agreement
shall not be changed or modified except by written Agreement, specifically
amending, modifying and changing this Agreement, signed by SANMINA-SCI and an
authorized representative of LIFESTREAM.

         15.2 Order of Precedence. All quotations, Orders, acknowledgments and
invoices issued pursuant to this Agreement are issued for convenience of the
Parties only and shall be subject to the provisions of this Agreement and the

<PAGE>

Exhibits hereto. When interpreting this Agreement, precedence shall be given to
the respective parts in the following descending order: (a) this Agreement; (b)
Schedules and Exhibits to this Agreement; and (c) if Orders are used to release
product, those portions of the Order that are not pre-printed and which are
accepted by SANMINA-SCI. The Parties acknowledge that the preprinted provisions
on the reverse side of any such quotation, Purchase Order, acknowledgment or
invoice and all terms other than the specific terms of LIFESTREAM's Purchase
Order set forth in Section 4.1(a)(i)-(v) shall be deemed deleted and of no
effect whatsoever. No modification to this Agreement, the Exhibits or any Order
shall be valid without the prior written consent of the Purchase Agreement
Coordinators of SANMINA-SCI and LIFESTREAM.

         15.3 Assignment. Neither this Agreement nor any rights or obligations
hereunder shall be transferred or assigned by either party without the written
consent of the other party, which consent shall not be unreasonably withheld or
delayed.

         15.4 Notices. Wherever one party is required or permitted or required
to give written notice to the other under this Agreement, such notice will be
given by hand, by certified U.S. mail, return receipt requested, by overnight
courier, or by fax and addressed as follows:
<TABLE>

<S>                                                           <C>
         If to Buyer:                                         with a copy to:

         Lifestream Technologies, Inc.                        Elsaesser Jarzabek Anderson Marks & Elloitt
         510 Clearwater Loop #101                             123 S. Third St.
         Post Falls, ID  83854                                P. O. Box 1049
         Att'n:  Edward R. Siemens COO                        Sandpoint, ID  83864
         Phone:  208-457-9409                                 Att'n:  Ford Elsaesser
         Fax:  208-457-9509                                   Phone:  208-263-0759
                                                              Fax:  208-263-0759

         If to Seller:                                        with a copy to:

         SANMINA-SCI Corporation                              SANMINA-SCI Corporation
         2700 N. First Street                                 2101 West Clinton Avenue
         San Jose, California  95134                          Huntsville, Alabama  35805
         Att'n:  President                                    Att'n:  Mgr. Of Contract Management
                 ---------                                            ---------------------------
         Phone:  (408) 964-3600                               Phone:  (256) 882-4637
         Fax: (408) 964-3636                                  Fax: (256) 882-4924
</TABLE>

All such notices shall be effective upon receipt. Either party may designate a
different notice address from time to time upon giving ten (10) days' prior
written notice thereof to the other party.

         15.5 Disputes/Choice of Law. The parties shall attempt to resolve any
disputes between them arising out of this Agreement through good faith
negotiations. In the event the parties cannot resolve a dispute, the parties
acknowledge and agree that the state courts of Santa Clara County, California
and the federal courts located in the Northern District of the State of
California shall have exclusive jurisdiction and venue to adjudicate any and all
disputes arising out of or in connection with this Agreement. The parties
consent to the exercise by such courts of personal jurisdiction over them and
each party waives any objection it might otherwise have to venue, personal
jurisdiction, inconvenience of forum, and any similar or related doctrine. This
Agreement shall be construed in accordance with the substantive laws of the
State of California (excluding its conflicts of laws principles).

         15.6 Import/Export. Unless otherwise agreed, LIFESTREAM shall be (i)
the exporter of record for any Products and/or Product documentation exported
from the country of manufacture, and shall comply with all applicable country of
manufacture export control statutes and regulations, and (ii) the importer of
record for all Products exported from the country of manufacture and later
imported and returned to LIFESTREAM or to SANMINA-SCI. SANMINA-SCI will
cooperate with LIFESTREAM in obtaining any export or import licenses for the
Products.

<PAGE>

                  LIFESTREAM hereby certifies that it will not knowingly export,
directly or indirectly, any U.S. origin technical data or software acquired from
SANMINA-SCI or any direct product of that technical data or software, to any
country for which the United States Government requires an export license or
other approval, without obtaining such approval from the United States
Government.

         15.7 Electronic Data Interchange. The parties agree that transmission
of data by electronic data interchange ("EDI") will not occur until a separate
agreement governing such transmissions is executed. Upon execution, such EDI
agreement will become an attachment to this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
effective as of the date on page one, by their officers, duly authorized.

SANMINA-SCI CORPORATION                     LIFESTREAM TECHNOLOGIES, INC.

By: /s/ Jim Ferguson                                By: /s/ Edward R. Siemens
    --------------------------------                --------------------------
            Signature                                     Signature

    Jim Ferguson                                      Edward R. Siemens
------------------------------------                ---------------------
            Typed Name                                    Typed Name

    SVP for Southern Europe                           Chief Operating Officer
------------------------------------                ---------------------------
            Title                                         Title

    4-9-02                                            6-18-02
------------------------------------                ----------------------------
            Date                                          Date

<PAGE>

INDEX

1.  TERM
2.  PRICING
3.  PAYMENT TERMS
4.  PURCHASE ORDERS/FORECAST/RESCHEDULE
5.  DELIVERY AND ACCEPTANCE
6.  CHANGES
7.  WARRANTY
8.  LIFESTREAM FURNISHED EQUIPMENT AND COMPONENTS
9.  INDEMNIFICATION AND LIMITATION OF LIABILITY
10. TERMINATION
11. QUALITY
12. FORCE MAJEURE
13. CONFIDENTIALITY AND NON-SOLICITATION OF EMPLOYEES
14. INSURANCE
15. MISCELLANEOUS

EXHIBITS

A.   PRICES
B.   LONG LEAD-TIME COMPONENTS
C.   SPECIFICATIONS
D.   LIFESTREAM FURNISHED EQUIPMENT, COMPONENTS AND DOCUMENTATION
E.   SHIPPING LABELING
F.   THE PRODUCT DESCRIPTIONS
G.   THE QUALITY PLAN

<PAGE>

                                    EXHIBIT A
                                     PRICING

Lifestream Technologies and Sanmina-SCI agree that the attached BOM and quote
dated March 28, 2002 represents the initial cost basis for this contract. Both
parties agree that continuous cost reduction will be carried out under the terms
of this agreement.

Non-recurring Engineering Charges:

(*)

Continuing cost reductions:
o        Test automation
o        Romkey connector
o        Battery Contacts
o        Postage Stamp assembly

(*)

Electronic components to be identified See Exhibit B Long Lead items

(*) Confidential treatment requested.

<PAGE>

                                    EXHIBIT B
                            LONG LEAD-TIME COMPONENTS

This listing is intended to identify components expected to be or become long
lead items.

(*)

(*) Confidential treatment requested.

<PAGE>

                                    EXHIBIT C

                                 SPECIFICATIONS

The specifications for this product are as follows:

(*)

(*) Confidential treatment requested.

<PAGE>

                                    EXHIBIT D

                CUSTOMER FURNISHED EQUIPMENT/CONSIGNED COMPONENTS

Lifestream will consign the following to Sanmina-SCI. The Companies agree that
these items may be replaced as may be agreed to by the parties by Sanmina-SCI
developed systems or items:

o (*)

(*) Confidential treatment requested.

<PAGE>

                                    EXHIBIT E
                                SHIPPING LABELING

Each shipment of finished goods for the SKU LSP-4000 shall have the following
shipper / Bill of Lading information and contents:

SHIPPING ADDRESS:

Lifestream Technologies, Inc
Bldg. 1000
570 Clearwater Loop Suite D
Post Falls, Idaho, USA 83854

(*)

ON THE SHIPPING CONTAINER AND ON THE BILL OF LADING:

(*)

EACH SHIPMENT TO CONTAIN:

Declaration of Conformity

CD-ROM containing Device History file

(*) Confidential treatment requested.

<PAGE>

                                    EXHIBIT F
                                  THE PRODUCTS

Sanmina-SCI will provide services to: design, qualify, build, test, package,
inspect, record data and ship, box build Stock-Keeping-Unit (SKU) medical
devices to Lifestream Technologies. Sanmina-SCI will perform these activities
for the product known as:

The Lifestream BASIC Cholesterol Monitor SKU Number: LSP-4000 (*)
o        Other products as specifications are developed and quotes provided.
o        (*)

Sanmina-SCI will provide sub-assemblies:

o        (*)

o        Other sub assemblies as may be required, from time to time for
         development or production activities, to include but not be limited to:
         plastic enclosure parts, PCB assemblies, point of Sale boxes or trays

Sanmina-SCI will provide components:

o        (*)

o        Other components as may be needed from time to time for development or
         production activities.

(*) Confidential treatment requested.

<PAGE>

                                    EXHIBIT G
                                THE QUALITY PLAN

The Quality Plan for Sanmina-SCI's facilities, processes, finished device,
subassemblies and components must conform to the following International and USA
regulatory standards that apply to In-vitro diagnostic devices:

o        ISO-9001 (Standards for design and manufacturing processes)

o        US FDA QSR, GDP/GMP (Including, Device Master Record, Device History
         Record)

o        US FDA Class II Registered Medical Device Manufacturing Facility

The finished Product will be manufactured according to mutually agreed upon
acceptance criteria for:

o        Packaging, Plastics, labeling cosmetics, fit and finish. o Dimensional
         control

o        Inspection and testing of the postage stamp optic sub-assembly o The
         retention of a 3rd party product auditor.

o        Contents of quality records, the "Device History Record" to include as
         a minimum for each device:

         1.       Device Serial number
         2.       Device calibration values
         3.       Date of Manufacturer
         4.       Manufacturing site

Device Calibration and Testing

The device must perform according to the Lifestream labeling claims for accuracy
and precision vs. the US national cholesterol reference method. Lifestream
retains sole responsibility for this quality standard

The responsibility of Sanmina-SCI will be to produce devices that meet the total
remission tolerance of +-.9% at approx 50% remission using Lifestream consigned
test hard and software, colored remission masters and Lifestream / Sanmina-SCI
approved calibration procedures(*)

Sanmina-SCI will conduct mutually agreed upon "Out of box Audit" and other
tests, such as control solution evaluations and / or audits as may be required
to insure assembly and performance standards are met.

A mutually agreed upon inspection and acceptance AQL standard will be developed.

Test software developed under the Lifestream (*)

(*) Confidential treatment requested.LOAN AND SECURITY AGREEMENT
                           ---------------------------

LIFESTREAM DIAGNOSTICS, INC.
510 CLEARWATER LOOP, SUITE 101
POST FALLS, IDAHO 83854

The undersigned debtor (hereinafter referred to as "Borrower"), for good and
valuable consideration, and to induce Capital South Financial Services, Inc.,
d/b/a Capital South, (a Georgia corporation) (hereinafter referred to as
"Lender") to accept this Agreement and to make the loans and advances described
herein, hereby agrees with Lender as follows:

         1. Request for Loan. From time to time Borrower may request, and
Lender, may loan to Borrower (hereinafter referred to as the "Loan") up to
seventy five percent (75%) ("the Secured Percentage") of the amount of" Approved
Receivables" (as hereinafter defined) submitted by Borrower to Lender (exclusive
of Interest, fees, and other charges); together with 65% of the actual costs of
non-obsolete inventory, plus $1,000,000.00 fixed for the agreed upon evaluation
of U.S. patents and U.S. patent applications, U.S. trademarks and U.S.
copyrights, furniture, fixtures, and equipment; provided, however, that the
total principal amount of such loans and advances to Borrower shall not exceed
Borrower's maximum line of credit extended from time to time by Lender and
determined in Lender's sole discretion (hereinafter referred to as the "Maximum
Loan Amount"). No more than 20% of the outstanding Loan balance will be against
the receivables of anyone customer, in the discretion of the lender. All loans
and advances made by Lender hereunder shall be evidenced by a Secured Promissory
Note (the "Note") executed by Borrower and shall contain such terms as Lender
shall require. Interest and service charges on such loans shall be charged by
Lender and paid by Borrower at such rates and at such times as may be agreed
upon by the parties. " Approved Receivables," as used herein, shall mean only
such accounts, contract rights, chattel paper, instruments or general
intangibles as from time to time shall be acceptable to Lender; "approved
accounts" shall exclude accounts more than 90 days from invoice date, contras,
intra- company accounts, employee accounts, related accounts, foreign accounts
and other potential off- sets, in its sole judgment and discretion, in terms of
quality and current status. No more than 20% of the outstanding loan balance can
ever be against the receivables of any one customer . Notwithstanding anything
contained herein to the contrary, in the event that the amount owed by Borrower
to Lender under the Loan exceeds at any time the Maximum Loan Amount, then
Borrower shall immediately pay to Lender such excess.

         2. Security Interest. To secure the performance by Borrower of all of
its obligations hereunder, as well as all of the rights of Lender hereunder, and
to secure all amounts due under the Guaranty, including any renewal,
substitution, consolidation, or extension thereof, as well as payment of any and
all indebtedness which may now or hereafter in the future be owing by Borrower
to Lender, its successors and assigns, however and whenever incurred, arising or
evidenced, whether alone or together with another or others, whether direct,
indirect, or by way of assignment, whether joint or several, absolute or
contingent, due or to become due, and whether as principal maker, endorser,
surety, Borrower, mortgagee or otherwise, or which Lender may now or hereafter
have, own or hold (all of said debts, obligations and liabilities are herein
collectively called the "Liabilities") and whether such Liabilities are from
time to time reduced and thereafter increased or entirely extinguished and
thereafter re-incurred, Borrower hereby grants to Lender a present and
continuing lien upon, security title to and a security interest in; (a) all of

                                      -1-
<PAGE>

Borrower's accounts, contract rights, chattel paper, instruments, drafts and
general intangibles, whether now existing or hereafter arising or acquired
(herein referred to as the "Receivables"), together with any returned,
repossessed, or unshipped goods relating to the Receivables, and all dividends
and distributions on or rights in connection with any such property and all
rights of Borrower earned or to be earned under contracts to sell goods or
render services; (b) any balances, credits, accounts, items and monies of,
Borrower now or hereafter with Lender; (c) all inventory of debtor including
without limitation all raw materials, finished goods, work in process, and all
returns, where ever located; (d) interests in lease holds documents, documents
of title, tax refunds, causes of action against any person or entity; (e)
machinery, equipment, furniture, fixtures, attachments; (f) all books, records,
customer lists, trade secrets, formulae and other recorded information, whether
in the form of a writing, photograph, microfilm, microfiche, electronic medium,
or otherwise, together with all the Debtor's right title and interest in and to
all computer software in object code and source code, used to create, maintain,
or process any such records or data; (g) all U.S. Patents and U.S. Patent
Applications; U.S. Copyrights and U.S. Trademarks (h) any other property of any
nature whatsoever of Borrower now or hereafter in the possession of, assigned to
or hypothecated to the Lender for any purpose, including but not limited to
inventory, and In addition; (i) All of such property and Receivables are
hereafter collectively referred to as the "Collateral" and shall also include
all direct and remote proceeds thereof.

         3. Account Collection. Unless Lender shall otherwise consent in
writing, Borrower will forthwith upon receipt, transfer and deliver to Lender in
the form received all cash, checks, chattel paper, drafts, items or other
instruments for the payment of money (properly endorsed where required, so that
such items may be collected by Lender) which may be received by Borrower at any
time in full or partial payment or otherwise as proceeds of any Collateral.
Unless Lender shall otherwise consent in writing, any such items which may be
received by Borrower shall not be commingled with any other of Borrower's funds
or property, but will be held separate and apart from its own funds or property
and upon express trust for the Lender until delivery is made to Lender. Borrower
has agreed to stamp all existing and future invoices to notify all customers
that payment is to be made directly to Lender. Lender will within two working
days after receipt of funds wire transfer or Fed Ex 90% of all collected funds
to Borrower. The 10% retained shall be retained by Lender until the retained
amount aggregates 10% of the entire outstanding loan balance, to be turned over
to Borrower when the loan is paid in full. Lender shall open and maintain while
this Agreement is in effect an account with Bank of America in Borrower's name
but controlled solely by Lender (hereinafter referred to as the "Collection
Account"). Lender shall, at its sole option, do one of the following: (a) remit
to Borrower, along with a statement of account, 90% of the amount collected in
the Collection Account with respect to all of the Receivables or any particular
Receivable less any and all interest, fees, and other charges due and payable to
Lender with respect to such Receivables or Receivable or the Loan, or (b) remit
to Borrower, along with a statement of account, 90% of the amount collected in
the Collection Account with respect to all Receivables or any particular
Receivable, along with an invoice to Borrower for all interest, fees, and other
charges accrued to the date of such invoice, and Borrower shall pay such invoice
within 10 days from the date of such invoice, Borrower will send copies of all
invoices together with all backup material (purchase order and bill of lading)
to Lender.

           In the event that Lender makes any particular advance hereunder based
upon certain Receivables of Borrower, then payment shall not be deemed received
by Lender with respect to any one of such Receivables until Lender has received
payment with respect to all of such Receivables. Lender shall deliver to
Borrower a statement of account and such statement shall be binding and
conclusive upon Borrower unless Borrower notifies Lender to the contrary within
ten (10) days after the date each statement is rendered. If requested by Lender,
Borrower will turn over, and Lender will handle, the cash collection of the
Receivables; however, Borrower will, at its own expense, endeavor to collect all
amounts due under the Receivables, including the taking of such action with
respect to such collection including, but not limited to, litigation, as the
Lender may reasonably request or, in the absence of such request, as Borrower
may deem necessary or advisable. Borrower may in the ordinary course of
business, grant to any party obligated on the Receivables any rebate or
adjustment to which such party may be lawfully entitled, and, may accept, in
connection therewith, the return of goods, the sale or lease of which have given
rise to such Receivables. Borrower shall promptly notify Lender of and shall
settle all customer disputes; however, If Lender elects, it shall have the right
at all times to settle, compromise, adjust or litigate all customer disputes

                                      -2-
<PAGE>

directly with the customer or other complainant upon such terms and conditions
as Lender deems advisable including but not limited to the right to surrender,
release or exchange all or any part of any Receivable owed by a customer to
Borrower, and to compromise, extend, or renew for any period any such
Receivable, all without incurring liability to Borrower for its performance of
any such acts, and Lender hereby shall have the right to stop goods in transit
or to replevy or to reclaim such goods. All returned, replevied and reclaimed
goods (unless released by Lender) coming into Borrower's possession shall be
held by Borrower in trust for Lender. Borrower shall notify Lender promptly of
all such returned goods and shall promptly pay to Lender the gross amount of the
unpaid Receivables with respect thereto.

         If any Receivable is not paid within ninety (90) days from the date of
         the invoice, bill, or other writing giving rise to or evidencing such
         Receivable, or if any customer raises any claim of non-conformity of
         goods, total or partial failure of delivery, setoff, counterclaim, or
         breach of warranty or any other claim inconsistent with Borrower'
         warranties as made below, Borrower will, upon demand, pay to Lender the
         Secured Percentage of the gross amount of the Receivable so affected or
         unpaid, together with and damages or loss sustained by Lender and any
         accrued but unpaid Interest, fees, or other charges due Lender;
         provided, however, such payment may not be deemed a reassignment
         thereof and title thereto and to the goods represented thereby shall
         remain in Lender until and unless Lender executes a reassignment.
         Lender may, at any time and from time to time, notify any parties
         obligated on any of the Receivables to make payment to Lender of any
         amount due or to become due thereunder, and enforce collection of any
         of the Receivables by suit or otherwise, as hereinbefore provided. At
         any time, upon the request of Lender, Borrower will, at its own
         expense, notify any parties obligated on any of the Receivables to make
         payment to Lender of any amounts due or to become due thereunder.
         Borrower hereby appoints and constitutes Lender as its lawful
         attorney-in-fact to receive, open, and dispose of all mail addressed to
         Borrower pertaining to any of the Collateral; to notify the postal
         authorities to change the address and delivery of mail addressed to
         Borrower to such address as Lender may designate; to endorse Borrower's
         name upon any notes, acceptances, checks, drafts, money orders and
         other evidences of payment that may come into Lender's possession and
         to deposit or otherwise collect the same; to sign Borrower's name on
         any bill of lading relating to any collateral, on drafts against
         customers, listings of Receivables, and notices to customers; to
         prepare and mail invoices to Borrower's customers; to send verification
         of accounts to customers; to execute in Borrower's name any affidavits
         and notices with regard to any and all lien rights, and to do all other
         acts and things necessary to carry out this Agreement or to deal with
         the Collateral or proceeds thereof in its own name or in the name of
         the Borrower. All acts of said attorney-In-fact are hereby ratified.
         This power, being coupled with an interest, is irrevocable while
         Borrower is indebted to Lender.

         4. Warranties of Borrower. Borrower hereby represents, warrants, and
covenants to and with Lender that the Collateral is and will be free and clear
of any and all liens, security interests and encumbrances; that Borrower has and
will have the right to convey the Collateral as security for the Liabilities,
free and clear of any and all liens, security interests and encumbrances; that
Borrower will keep the Collateral free from any liens, encumbrances or security
interests whatsoever, other than the security interest created hereunder; that
Borrower will promptly pay or discharge all taxes assessed against the
Collateral and all liens which may attach thereto; that any and all information
set forth in any writing heretofore or hereafter delivered to Lender by Borrower
pertaining to the Collateral or Liabilities is and will be true and correct as
of the date thereof; that the Receivables will be, at the time of their
creation, bona fide and existing obligations of Borrower's customers arising out

                                      -3-
<PAGE>

of the sale of goods and/or rendition of services by Borrower and are owned by
and owed to Borrower without defense, offset, or counterclaim; that Borrower is
solvent; that with regard to each Receivable as it arises, Borrower will have
made delivery of the goods or will have rendered the services ordered, the
customer will have accepted the goods and/or services, and no customer dispute
will exist in any respect, including without limitation, disputes as to price,
terms, warranties, quality or quantity; that each Receivable shall also be free
of any claims of setoff, release from liability or defense based upon any act of
God or a public enemy or war or because of the requirements of law or of rules,
orders or regulations having the force of law; that Borrower will have preserved
and will continue to preserve any liens and any rights to liens available by
virtue of sales; that Borrower's inventory is not subject to any security
Interest, lien or encumbrance (except as may have been disclosed to Lender in
writing); If a corporation, that Borrower is duly organized and existing under
the laws of the State of its incorporation, and is duly qualified and in good
standing in every other State in which it is doing business as a corporation;
that the execution, delivery and performance hereof are within Borrower's
corporate powers, have been duly authorized, are not in contravention of law or
the terms of Borrower's charter, bylaws or other incorporation papers, or of any
indenture, agreement or undertaking to which Borrower is a party or by which it
is bound; that without prior written notice to Lender, Borrower will not obtain
any loans, advances or other financial accommodations or arrangements from any
party other than Lender which would encumber any of its assets; that without
prior written consent of Lender, Borrower will not reorganize, merge or
consolidate, or issue or sell or redeem any of its common stock, or permit the
transfer by the present shareholders of Borrower to any other person or entity
of any or all of the common stock of Borrower outstanding or in treasury as of
the date hereof; that, in the event of any transfer of any of its stock or
assets by operation of law, Borrower shall immediately notify Lender; that there
is no pending order, notice, claim, litigation, proceeding or investigation
against or affecting Borrower, whether or not covered by insurance, that would
materially and adversely affect Borrower's operations, financial condition,
property or business; that Borrower will not sell, transfer, lease or otherwise
dispose of all or (except in the ordinary course of business) any material part
of its assets; that no account arises out of a contract with, or order from, an
account debtor that, by its terms, forbids or makes the assignment of that
account to Lender void or unenforceable; that the representations and warranties
made hereunder by Borrower are true on the date hereof and will be true on the
date of each loan advance by Lender hereunder; that Borrower's address as shown
above is the location of Borrower's principal place of business and chief
executive office, that such place of business is Borrower's only place of
business, and that Borrower has not maintained any other place of business or
principal place of business or corporate or tradename during the four (4) years
immediately preceding the date of the execution of this Agreement, unless having
notified Lender in writing of all previous addresses and names. Borrower
maintains the corporate office at 510 Clearwater Loop, Suite 101, Post Falls,
Idaho 83854 and maintains the production/shipping facility at 570 West
Clearwater Loop, Bldg. 1000, Suite D, Post Falls, Idaho 83854.

         5. Duties and Further Assurance of Borrower. Borrower covenants and
agrees that, so long as any of the liabilities remain outstanding and unpaid,
Borrower shall:

(1)      Financing Statements. Execute upon request of Lender such financing
         statements and other security documents and pay the cost of filing or
         recording the same, and do such other acts and things as the Lender may
         from time to time request to establish and maintain a valid security
         Interest of Lender in the Collateral;

(b)      Inspection and Information. Permit Lender, its agents and employees,
         from time to time, to inspect, audit and make copies of, and extract
         from, all records and other papers in the possession of Borrower,
         including but not limited to those pertaining to the Collateral and
         Borrower's debtors, including copies of customer invoices and evidence
         of shipment and such other documents and proof of delivery/rendition as

                                      -4-
<PAGE>

         Lender may at any time require; periodic inventory audits and relations
         with vendors and suppliers, and furnish such further information and
         documents concerning Borrower, the Collateral and Borrower's debtors as
         Lender may from time to time request;

(c)      Financial Statements. Furnish to Lender on or before the 20th day after
         the end of each month, financial statements in form and substance
         satisfactory to Lender and certified by an appropriate officer of
         Borrower, and furnish to Lender annually on or before the 90th day
         after the end of Borrower's fiscal year a financial statement in form
         and substance satisfactory to Lender and prepared by a certified public
         accountant acceptable to Lender; notwithstanding the level of CPA
         certification checked in the preceding clause or anything else to the
         contrary contained herein, Borrower shall, if requested by Lender,
         provide to Lender a financial statement of Borrower or any Borrower of
         Borrower, in form and substance satisfactory to Lender, and prepared by
         a certified public accountant acceptable to Lender;

(d)      Records Retention. Keep at its address shown herein its records
         concerning the Collateral, which records shall be of such character as
         will enable Lender to determine at any time the status of the
         Collateral;

(e)      Insurance and Taxes. Borrower shall keep any tangible Collateral fully
         insured against fire, theft, and other casualty with loss payable
         clause in favor of Lender, and shall pay all premiums promptly when the
         same become due and shall pay all taxes and other charges against the
         Collateral promptly when the same become due; should Borrower fail to
         pay any of said premiums or taxes or other charges, or should the
         Collateral become encumbered, Lender may pay the sums and add the
         amount of such payment to the Liabilities hereby secured; Lender is
         authorized to receive the proceeds of any insurance loss, and at the
         option of Lender, shall apply such proceeds toward either the repair or
         replacement of the Collateral or the payment of the Liabilities.
         Borrower shall furnish Lender evidence of being an additional named
         insured on a fire and hazard policy against loss of inventory,
         furniture, fixtures, and equipment, as well as business interruption.

(f)      Costs. Borrower will pay all costs of closing the Loan and will
         reimburse Lender during the period of financing for all out-of-pocket
         or advanced expenses including but not limited to filing fees, long
         distance phone calls, travel expenses, legal fees, audit expenses pf
         $1,000.00 per audit, with a minimum of 4 audits per year , and wire
         transfer and returned-check charges.

         6. ACTS OF DEFAULT. If Borrower fails to pay when due any amount
payable under any of the liabilities; or if Borrower or any Borrower of
Borrower's obligations hereunder fails to perform or breaches any agreement or
undertaking herein or is in default under any writing relating to any of the
Liabilities, the Collateral or any other agreement between Lender and Borrower;
or if any Borrower of the Liabilities terminates or attempts to terminate such
guaranty, or if the Collateral declines in value or for any reason becomes
insufficient in Lender's sole and exclusive judgment to secure the liabilities
and Borrower, after demand, fails or refuses to substitute and/or make additions
to the Collateral satisfactory to Lender; or if any statement, representation or
warranty made or furnished to Lender by or in behalf of Borrower with respect to
the Liabilities; or the Collateral shall be untrue or incomplete in any material
respect as of the date made or if Borrower becomes insolvent or makes an
assignment for the benefit of creditors; or if any proceeding be instituted by

                                      -5-
<PAGE>

or against Borrower alleging that it is insolvent or unable to pay its debts as
they mature; or if any receiver be appointed for Borrower; or if any litigation
is instituted against Borrower that might materially and adversely affect its
operations, financial condition, property or business; or if a creditor of
Borrower shall obtain or attempt to obtain possession of the Collateral by any
means; or If any other circumstance or event occurs which shall cause Lender to
deem itself insecure, then Borrower shall be in default hereunder.

         7. Rights of Lender on Default. In the event of a default hereunder, at
the option of Lender, this Agreement shall terminate without prejudice to
Lender's rights hereunder, and without notice to Borrower of any kind, and any
or all of the liabilities may, at the option of Lender and without demand or
notice of any kind, be declared by tender, and the same shall become,
immediately due and payable, and Lender shall have, in addition to all other
rights and remedies which Lender may have under law, the following rights and
remedies all of which may be exercised with or without further notice to
Borrower: to foreclose the liens and security interests created under this
Agreement or under any other agreements relating to the Collateral by any
available judicial or non-judicial procedure; to enter any premises where any
Collateral may be located for the purpose of taking possession of or removing
the same; to sell, assign, lease or otherwise dispose of the Collateral, or any
part thereof, either at public or private sale or at any broker's board, in lots
or in bulk for cash, on credit, or otherwise, with or without representations or
warranties, and upon such terms as shall be acceptable to Lender, all at
Lender's sole option and as Lender in its sole discretion may deem advisable,
and Lender may bid upon or become purchaser at any such sale if public, free
from any right of redemption, which is hereby expressly waived by Borrower, and
Lender shall have the right at its option to apply or be credited with the
amount of all or any part of the Liabilities owing to Lender against the
purchase price bid by Lender at any such sale. Borrower and Lender expressly
acknowledge and agree that five (5) days' prior written notice from Lender to
Borrower of any such sale of Collateral shall satisfy the notice requirements of
O.C.G.A. Section 11-9-504. The net cash proceeds resulting from the collection,
liquidation, sale, lease or other disposition of the Collateral shall be applied
first to the expenses (including all attorney's fees) of retaking, holding,
storing, processing and preparing for sale, selling, collecting, liquidating and
the like, and then to the satisfaction of all Liabilities, with application as
to particular Liabilities or against principal or interest to be in Lender's
sole and absolute discretion. Borrower shall be liable to Lender and shall pay
to Lender on demand any deficiency which may remain after such sale,
disposition, collection or liquidation of the Collateral, and Lender in turn
agrees to remit to Borrower any surplus remaining after all Liabilities have
been paid in full. If any of the Collateral shall require repairing,
maintenance, preparation, or the like, or is in process or other unfinished
state, Lender shall have the right, but shall not be obligated, to do such
repairing, maintenance, preparation, processing or completion of manufacturing
for the purpose of putting the same in such saleable form as Lender shall deem
appropriate, but Lender shall have the right to sell or dispose of such
Collateral without such processing. Borrower will, at Lender's request, assemble
all the Collateral and make it available to Lender at places which Lender may
select, whether at Borrower's premises or elsewhere, and will make available to
Lender all premises and facilities of Borrower for the purpose of Lender's
taking possession of the Collateral or of removing or putting the Collateral in
saleable form. To facilitate the exercise by Lender of the rights and remedies
set forth in this paragraph, Borrower hereby constitutes Lender, or its agents,
or any other person whom Lender may designate, as attorney-in-fact for Borrower,
at Borrower's own cost and expense, to exercise all or any of the following
powers, which, being coupled with an interest, shall be irrevocable and shall
continue until all Liabilities have been paid in full and shall be in addition
to any other rights and remedies that the Lender may have: (i) to remove from
any premises where the same may be located any and all documents, instruments,
files, and records, and any receptacles and cabinets containing the same,
relating to the Collateral, and Lender may, at Borrower's cost and expense, as
much of the personnel, supplies and space of Borrower at its place of business

                                      -6-

<PAGE>

as may be necessary to properly administer and control the Collateral or the
handling of collections and realizations thereon; and (ii) to take or bring in
Lender's name or in the name of Borrower steps, actions, suits or proceedings
deemed by Lender necessary or desirable to effect collection of or to realize
upon the Collateral. No delay or failure on the part of Lender in the exercise
of any right or remedy shall operate as a waiver thereof, and no single or
partial exercise by Lender of any right or remedy shall preclude other or
further exercise thereof, or the exercise of any other right or remedy. The
Lender shall be under no duty to exercise any or all of the rights and remedies
given by this Agreement and no party to this Agreement shall be discharged from
his or its obligations or undertakings hereunder (a) should the Lender release
or agree not to sue any person against whom the party has, to the knowledge of
the Lender, a right of recourse, or (b) should Lender agree to suspend the right
to enforce the Note or Lender's interest In the Collateral against such person
or otherwise discharge such persons.

         8. Business Use. Borrower represents and warrants that the Loan will be
used for business, non-consumer purposes and not for personal, family or
household purposes, and that the loan proceeds shall be used to pay accrued
royalties, reduce payables, and continue marketing.

         9. Applicable Law. The laws of the State of Georgia shall govern the
construction of this Agreement and the rights and remedies of the parties
hereto, and any litigation regarding this transaction shall be conducted in the
U.S. District Court for the Northern District of Georgia. Venue and Jurisdiction
are stipulated and expressly agreed. Borrower expressly waives the right to
Trial by Jury.

               (a) Binding Effect, Assignment and Entire Agreement. This
Agreement shall inure to the benefit of, and shall be binding upon, the parties
hereto and their respective heirs, legal representatives, successors and
permitted assigns. Borrower has no right to assign any of its rights or
obligations hereunder without the prior written consent of Lender. This
Agreement, and the documents executed and delivered pursuant hereto, constitute
the entire agreement between the parties, and may be amended only by a writing
signed on behalf of the party sought to be charged.

               (b) Severability. If any provision of this Agreement shall be
held invalid under any applicable law, such invalidity shall not affect any
other provision of this Agreement that can be given effect without the invalid
provision, and to that end, the provisions hereof are severable.

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

               (d) Seal.  This Agreement is intended to take effect as an
instrument under seal.

The effective date of this Agreement shall be June 18, 2002.

BORROWER:                                     LENDER:
Lifestream Diagnostics, Inc.,                 Capital South Financial Services,
a Nevada Corporation                          a Georgia Corporation

By:      /s/ Brett R. Sweezy                  By:  /s/ R. DeVille
Name:    Brett R. Sweezy                      Name:  R. DeVille
Title:   CFO                                  Title:  General Counsel

Attest:  /s/ Gerri Vance
Name:   Gerri Vance
Title   Administrative Services Manager

                                      -7-

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