Document:

Pyramid Technologies Industrial, LLC Letter Agreement dated June 23, 2005

    
      Exhibit
        10.86

      
        	
                Pyramid
                  Technologies Industrial, LLC
PROPOSAL
                  TO

              
	
                HOST
                  AMERICA / RS SERVICES

              
	
                June
                  23, 2005 Revision
                  B

              

      

      	 	 
	
              A.

            	
              Based
                on
                our initial visit to RS Services on May 26, 2005, here are the
                priorities we agreed upon:

            
	
                     

            	
            
	
                     

            	
              1.

            	
              Create a
                potted SCR
                snubber.

            
	
                     

            	
                    

            	
            
	
                     

            	
              2.

            	
              Add time
                feature to
                the software of the LightMasterPlusÒ

            
	
                     

            	
                     

            	
            
	
                     

            	
              3.

            	
              Modularize
                all
                sizes—30A, 60A, 100A, 200A, and 400A.  Priority to 100A and 200A for
                the anticipated Wal-Mart project.

            
	
                     

            	
                     

            	
            
	
                     

            	
              4.

            	
              Reduce Harmonic
                Distortion.

            
	
                     

            	
                     

            
	
              B.

            	
              After
                our
                return and study of the program, we have looked at the priorities
                and have
                come to the following conclusions:

            
	
                     

            	
            
	
                     

            	
              1.

            	
              The implementation
                of the time feature as the LightMasterPlusÒ, as
                currently configured, is
                not an effective use of time.  To be valuable to the user, this
                feature must be combined with external communication to set time
                parameters.  Attempts to manually change timed events by improperly
                trained personnel could be hazardous.

            
	
                     

            	
                     

            	
            
	
                     

            	
              2.

            	
              Using the
                current
                PCBA design, we will take the time to modularize the 100A and 200A
                sizes.  The others, very small volume, should be made the way they
                are currently made until our proposed redesign is
                undertaken.

            
	
                     

            	
            
	
              C.

            	
              Our
                proposal for the LightMasterPlusÒis
                as
                follows:

            
	
                     

            	
            
	
                     

            	
              1.

            	
              Pyramid
                Industrial
                becomes the focal point for all engineering knowledge and George
                Bucci
                will be the go-to-guy for all questions RS Services can’t handle. 
                For any field work, we would charge work time and travel expenses
                at
                cost.

            
	
                     

            	
                     

            	
            
	
                     

            	
              2.

            	
              Complete
                the SCR
                snubber immediately.  Design is complete.  Prototype shipped to
                RS Services in early June.

            
	
                     

            	
                     

            	
            
	
                     

            	
              3.

            	
              Create modular
                designs (based on current PCBA design) for the 100A and 200A
                sizes.

            
	
                     

            	
                     

            	
            
	
                     

            	
              4.

            	
              Redesign
                the
                LightMasterPlusÒ with
                the following
                deliverables:

            

       

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        48
          Elm
          Street, Meriden, CT 06450-5798●Phone:
          203-238-0550●Fax:
          203-634-1696
www.PyramidTechnologies.com

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                Pyramid
                  Technologies Industrial,
                  LLC

              

      

      	
                     

            	
                     

            	
              a.

            	
              New, single
                PCBA.  Source code will include timing and external
                communications.  The new source code will use the basic algorithms
                that are used today; however, it will be new and
                unique.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              b.

            	
              External
                programming via windows.  Communications connection via modem, cable,
                etc.  Program auto-installs on any computer meeting minimum
                requirements.  Utilizes proven communication technology developed for
                PTI time recorders.  Allows authorized person to make remote changes
                to the savings settings and timing functions.  Please note
                that we consider this feature very important.  This will prevent
                potential competition by motor controller
                manufacturers.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              c.

            	
              New PCBA
                design
                delivers BOM savings of $75.00 per LightMasterPlusÒ unit
                compared to the current
                design.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              d.

            	
              Phase lock
                loop
                design means PCBA’s are impervious to EMI (conducted interference) on the
                power line.  This prevents controller induced SCR
                misfires.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              e.

            	
              Design will
                include
                reduction in harmonic distortion that is patentable.  We will
                apply.  Cost of patent application and filing is the responsibility
                of Host / RS Services and will be presented at cost.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              f.

            	
              Modular
                designs for
                the 30, 60, 100, 200 Amp sizes.  At this time, we believe that two
                200A units will be more cost effective than a single 400 Amp design. 
                Standard heatsink/PCBA/SCR/fuse assemblies allow the creation of
                cost
                effective special units for customers that want extra features. 
                Snubbed SCR’s will prevent SCR induced misfiring.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
            	
              i.

            	
              All standard
                designs will be UL/CUL approved and/or recognized.  Cost of UL/CUL
                application and listing is the responsibility of Host / RS Services
                and
                will be presented at cost.

            
	
                     

            	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
            	
              ii.

            	
              Heatsink
                sizes will
                be determined by thermal studies.  All heatsinks will be black
                anodized for corrosion protection and maximum
                radiation.

            
	
                     

            	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
            	
              iii.

            	
              Tooling
                costs are
                the responsibility Host / RS Services.  These will not exceed $20,000
                per size.

            
	
                     

            	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              g.

            	
              Pyramid
                would be
                responsible for the manufacturing of the modules and the standard
                finished
                LightMasterPlusÒ units
                and RS Services would be
                responsible for assembling any special units from modules supplied
                by
                Pyramid.  Pricing TBD and agreed upon by both parties.  Note:
                Promised material savings of $75.00 per LightMasterPlusÒ will be realized
                here.

            

       

      Page
        2 of
        5
48 Elm
        Street,
        Meriden, CT 06450-5798●Phone:
        203-238-0550●Fax:
        203-634-1696
www.PyramidTechnologies.com

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                Pyramid
                  Technologies Industrial,
                  LLC

              

      

      	
                     

            	
                     

            	
              h.

            	
              Modular
                construction carries forward to MotorMasterPlusÒ. 
                MotorMasterPlusÒ will
                be redesigned for cost-effective, modular construction as part of
                this
                proposal.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              i.

            	
              Schedule
                for
                LightMasterPlusÒ redesign:

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
                     

            	
              i.

            	
              Prototypes—5 months
                ARO

            
	
                     

            	
                     

            	
                     

            	
              ii.

            	
              Pilot Production—11
                months ARO

            
	
                     

            	
                     

            	
                     

            	
              iii.

            	
              UL/CUL approved*
                units available to customers—16 mos. ARO

            
	
                     

            	
                     

            	
                     

            	
                     

            	
              * UL approval
                time estimated based on past experience

            
	
                     

            	
            
	
              D.

            	
              Concurrently
                with the
                LightMasterPlusÒ,
                Pyramid will develop the
                HomeMasterPlusÔ
                home unit.

            
	
                     

            	
            
	
                     

            	
              1.

            	
              Both 100A
                and 200A
                designs.

            
	
                     

            	
                     

            	
            
	
                     

            	
              2.

            	
              Standard
                box for
                basement installation.  (A quick investigation shows the heat
                dissipation requirements preclude mounting behind the
                meter.)

            
	
                     

            	
                     

            	
            
	
                     

            	
              3.

            	
              Patentable
                brownout
                protection.  We will apply.  Cost of patent application and
                filing is the responsibility of Host / RS Services and will be presented
                at cost.

            
	
                     

            	
                     

            	
            
	
                     

            	
              4.

            	
              UL/CUL
                approved.  Cost of UL/CUL application and listing is the
                responsibility of Host / RS Services and will be presented at
                cost.

            
	
                     

            	
                     

            	
            
	
                     

            	
              5.

            	
              Schedule:

            
	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              a.

            	
              Prototypes—6 months
                ARO

            
	
                     

            	
                     

            	
              b.

            	
              Pilot Production—12
                months ARO

            
	
                     

            	
                     

            	
              c.

            	
              UL/CUL approved*
                unit delivery to customers—17 months ARO

            
	
                     

            	
                     

            	
                     

            	
              * UL approval
                time estimated based on past experience

            
	
                     

            	
                     

            	
                     

            	
            
	
              E.

            	
              Property
                at
                time of completion:

            
	
                     

            	
                     

            	
                     

            	
            
	
              Upon completion
                of
                the project, and payment in full by Host / RS Services, Pyramid recognizes
                that the following property developed by Pyramid belongs to Host
                / RS
                Services:

            
	
               

            
	
                     

            	
              1.

            	
              All hardware
                designs and all software including original source
                codes.

            
	
                     

            	
              2.

            	
              All tooling
                for
                which Pyramid has been reimbursed by Host / RS
                Services.

            
	
                     

            	
              3.

            	
              All patent
                rights
                for patents granted on the designs.

            
	
                     

            	
              4.

            	
              All UL/CUL
                listings
                for listings and recognitions granted on the designs.

            
	
                     

            	
                     

            	
            

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        3 of
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        48
          Elm
          Street, Meriden, CT 06450-5798●Phone:
          203-238-0550●Fax:
          203-634-1696
www.PyramidTechnologies.com

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                Pyramid
                  Technologies Industrial,
                  LLC

              

      

      	
              F.

            	
              Payment
                and
                terms:

            
	
                     

            	
                     

            	
            
	
                     

            	
              1.

            	
              In consideration
                of
                the work listed above, Host / RS Services will pay Pyramid Technologies
                Industrial, LLC the following payments:

            
	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              a.

            	
              $500,000
                upon
                acceptance of the proposal.  This is payable as
                follows:

            
	
                     

            	
                     

            	
            	
              i.  

            	
              $250,000
                on date of
                acceptance.

            
	
                     

            	
                     

            	
            	
              ii.  

            	
              $50,000
                each month
                for the next 5 months.

            
	
                     

            	
                     

            	
              b.

            	
              A $50 royalty
                fee
                will be paid to Pyramid for use of their time access proprietary
                software,
                and any other proprietary software used.  This fee will be paid on
                the first 20,000 PCB’s ordered from Pyramid utilizing this software. 
                If the total royalty payments in the first 3 years following the
                first
                shipment of a unit qualifying for the royalty are less than $500,000,
                Host
                shall pay Pyramid the balance of $700,000 minus royalties already
                paid and
                the royalty requirement ends.

            
	
                     

            	
                     

            	
              c.

            	
              $100,000
                upon
                delivery of the new LightMasterPlusÒ and
                HomeMasterPlusÔ prototypes and
                MotorMasterPlusÒ
                redesigned for modular construction.  Prototypes are defined as hand
                built samples of the final product design.

            
	
                     

            	
                     

            	
              d.

            	
              $100,000
                upon
                delivery of the new LightMasterPlusÒ and
                HomeMasterPlusÔ pilot units.  Pilot units are
                defined as the first run of production using actual production tooling
                and
                production techniques.

            
	
                     

            	
                     

            	
              e.

            	
              $100,000
                upon
                delivery of the new LightMasterPlusÒ, and
                HomeMasterPlusÔ units, UL/CUL approved
                and ready for
                delivery to customers.  Delivery of units is defined as when both of
                the two models are available for shipment to customers.

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
              2.

            	
              As an incentive
                for
                timely completion, and to couple Pyramid’s success with Host America’s,
                Host America will grant stock options of 175,000 shares to Pyramid
                Technologies Industrial, LLC immediately upon acceptance of the
                proposal.    These options to vest as
                follows:

            

      
        	
                Project
                  completed
                  11 months or less after ARO* (After Receipt of
                  Order):               

              	
                100%

              
	
                Project
                  completed
                  13 months or less after ARO*:

              	
                75%

              
	
                           
                  (25% never vest and revert to Host America)

              	
              
	
                Project
                  completed
                  15 months or less after ARO*:

              	
                50%

              
	
                           
                  (50% never vest and revert to Host America).

              	
              
	
                Project
                  completed
                  15 months or more after ARO*:

              	
                0%

              
	
                           
                  (100% never vest and revert to Host America).

              	
              
	
                 

              	
              
	
                       

              	
                *For determination
                  of Project Completion for vesting purposes, the Project
Completion date
                  will be the Pilot Production run as defined in section (F.1.d)
above.
                  The scheduled completion dates in sections (C.4.i.ii) and (D.5.b)
                  will
be extended by mutual agreement in the event of a change
                  in
                  product
specifications.

              	
              

      

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        4 of
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        48
          Elm
          Street, Meriden, CT 06450-5798●Phone:
          203-238-0550●Fax:
          203-634-1696
www.PyramidTechnologies.com

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                Pyramid
                  Technologies Industrial,
                  LLC

              

      

      	
                     

            	
              3.

            	
              Vested options
                must
                be exercised within 5 years of original issue date or any unexercised,
                vested options revert to Host America.  Pyramid agrees that from the
                date the options vest, Pyramid will sell no more than 100,000 shares
                in
                each subsequent 12 month period.

            
	
                     

            	
                     

            	
            
	
              G.

            	
              Cancellation:

            
	
                     

            	
                     

            	
            
	
                     

            	
              1.

            	
              Once begun,
                if this
                project is cancelled by Host America / RS Services for cause, Host
                / RS
                Services will owe all of the payments in Section (F.1.a) plus 100%
                of any
                additional payment due under Section (F.1. c., d., and e.)  which is
                earned to that point, plus 25% of the next payment due under Section
                (F.1).  No options vest.  No royalties will be paid unless
                earned.  All options revert to Host America.  Recognized causes
                are:

            
	
                     

            	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              a.

            	
              Bankruptcy
                of Host
                America and/or RS Services.

            
	
                     

            	
                     

            	
              b.

            	
              Cessation
                of the
                LightMasterPlusÒ portion
                of Host/RS Services’
                business.

            
	
                     

            	
                     

            	
              c.

            	
              A change
                in
                technology that renders LightMasterPlusÒ not
                commercially
                viable.

            
	
                     

            	
                     

            	
              d.

            	
              A change
                in the
                marketplace that renders LightMasterPlusÒ not
                commercially
                viable.

            
	
                     

            	
                     

            	
              e.

            	
              Pyramid
                Technologies not performing according to proposal

            
	
                     

            	
                     

            	
              f.

            	
              Pyramid
                Technologies not delivering a working model on a timely
                manner

            
	
                     

            	
                     

            	
            
	
                     

            	
                     

            	
              In the case
                of
                Pyramid Technologies not performing or not delivering as in e. and
                f.
                above, and/or described in this proposal, no additional payments
                will be
                due and F.I.A. payment would cease at that time.

            
	
                     

            	
                     

            	
            
	
                     

            	
              2.

            	
              Once begun,
                if this
                project is cancelled by Host America / RS Services for no cause,
                Host / RS
                Services will owe all of the payments in Section (F.1.a) plus 100%
                of any
                additional payment due under Section (F.1) plus 100% of the next
                payment
                due under Section (F.1).   All options vest as of the cancellation
                date.

            

      Proposed by,

      John W. Ekegren,
        President
Pyramid Technologies Industrial, LLC

      Accepted by,

      Geoffrey Ramsey,
        CEO
Host America, Inc.

      Dated: June __,
        2005
This date is the starting date for schedules in Sections (C) and
        (D).

      Page
        5 of
        5

      48
        Elm
        Street, Meriden, CT 06450-5798●Phone:
        203-238-0550●Fax:
        203-634-1696
www.PyramidTechnologies.comSale and Assignment Agreement between Burton M. Sack and Host America dated
      December 9, 2005

    
      Exhibit
        10.87

      SALE
        AND ASSIGNMENT AGREEMENT

       

                  This
        SALE AND ASSIGNMENT AGREEMENT (the “Agreement”) made this 9th
        day of December, 2005, by and between Burton M. Sack a resident of the State
        of
        Florida (“Assignor”)
        and Host
        America Corporation, a Colorado corporation with a place of business at 2
        Broadway, Hamden, Connecticut or its nominee
        (“Assignee”): 

       

                 
WHEREAS, pursuant
        to a certain Loan Agreement dated May 9, 2003 between the
        Assignor and K. W. M. Electronics Corporation, a Utah corporation
        (“KWM”) (the “Loan Agreement”), the Assignor
        made a loan (the “Loan”) to KWM which is evidenced by a
        Promissory Note executed on May 9, 2003, in the original principal amount
        of
        Five Hundred Fifty Thousand and 00/100 Dollars ($550,000.00) (the
“Note”).  The Loan is secured by a certain Security
        Agreement dated May 9, 2003, between KWM and the Assignor (the “Security
        Agreement”). The Loan Agreement, the Note and the Security Agreement,
        together with the other documents listed on Exhibit A hereto are
        collectively referred to herein as the “Loan
        Documents”;

       

                 
WHEREAS, Assignor
        has commenced the following actions (collectively, the
“Actions”) in connection with the Loans:

       

      	
                        

            	
              1.     

            	
              Action against
                KWM
                and each of Charlie Stevenson and Scott Feldhacker, filed in the
                Circuit
                Court of the Twelfth Judicial Circuit in and for Sarasota County,
                Civil
                Division, Case No. 2004 CA 9234NC; and

            
	
                        

            	
            	
            
	
                        

            	
              2.

            	
              Action against
                KWM,
                Assignor, R.S. Services, Inc. and GlobalNet Acquisitions Corporation,
                filed in the District Court of Stephens County, State of Oklahoma,
                Case
                No. CJ-05-204E;

            

       

                 
WHEREAS, the Assignee
        wishes to purchase from Assignor and the Assignor wishes
        to sell to Assignee all of the Assignor’s right, title and interest in and to
        the Loan Documents and all claims and other rights arising thereunder or
        inuring
        thereto, as provided herein, upon the terms and conditions set forth in this
        Agreement.

       

                 
(Reference is hereby
        made to the Appendix of Definitions for the meaning
        of certain capitalized terms).

       

                  NOW
        THEREFORE, in consideration of the premises herein contained and other good
        and
        valuable consideration, the receipt and sufficiency of which is hereby
        acknowledged, the parties hereby agree as follows:

       

                 
1.         Agreement to
        Sell and
        Purchase.   Effective upon the Closing Date and subject to the
        terms and conditions of this Agreement, the Assignor hereby agrees to sell,
        transfer and assign to the Assignee, and the Assignee hereby agrees to purchase
        and accept from the Assignor, all of the Assignor’s right, title and interest in
        and to the Loan Documents and all claims and other rights and proceeds arising
        thereunder or inuring

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      thereto (collectively,
        the “Purchased Rights”).  Said Purchased Rights shall
        include, without limitation:

       

                             
(a)        the Loan Documents
        and all rights
        to payment and other rights, title and interests of the Assignor in, to and
        under the Loan Documents and any and all other agreements, instruments and
        documents by, between or among KWM and the Guarantors and the Assignor or
        its
        predecessors in interest, evidencing or pertaining thereto;

       

                             
(b)        all rights, title,
        interests,
        powers, liens or security interests of the Assignor in, to or under each
        Loan
        Document, including without limitation, all liens and security interests
        in the
        Collateral as defined and/or set forth on the Loan Documents and all claims
        and
        rights to and interests in proceeds of hazard or casualty insurance covering
        any
“Collateral” (as defined in the Security Agreement) securing
        the Note;

       

                             
(c)        all amounts due
        or to become due
        under any Loan Document including, without limitation, accrued and unpaid
        principal, interest and applicable costs of collection then due and owing
        thereon, all of the Assignor's right to receive distributions of cash,
        securities, obligations or other property, if any, or otherwise in respect
        of
        the Loan Documents including;

       

                             
(d)        any judgment or
        execution based
        upon the Note or any other Loan Document, to the extent attributable thereto,
        and any lien arising from any such judgment or execution; and

       

                             
(e)        any and all; rights
        and/or
        interests in the Actions. 

       

                  The
        Purchased Rights, including the Loan Documents, shall be sold and assigned
        pursuant to the endorsement of the Note to the order of Assignee, a Bill
        of Sale
        and Assignment (“Bill of
        Sale”)
        attached hereto as Exhibit B, a form of UCC-3 Assignment in the form
        attached hereto as Exhibit C with respect to each UCC-1 Financing
        Statement filed or recorded in connection with the Loan (“UCC-3s”),
        and such
        other assignments and documents as Assignee may reasonably request to effect
        the
        sale and assignment. 

       

                 
2.         Date and Place
        of
        Closing.        The consummation of the
        sale and assignment transaction provided for herein is being held
        contemporaneously with the execution hereof on December 9, 2005 (the
“Closing Date”).

       

                  On the
        Closing Date, the Assignor and the Assignee shall execute and deliver a
        Contingent Assignment of Intellectual Property and Security Agreement (the
        “Assignment”), which Assignment shall grant to the Assignor a security interest
        in certain inventions and intellectual property of the Assignee as collateral
        to
        secure the repayment of the Promissory Note (defined herein). 

       

                  On the
        Closing Date, the Assignor shall execute in favor of and/or deliver to Assignee
        the following, if the same shall be in the possession of the
        Assignor:

       

      -2-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                             
(a)        Originals of the
        Loan Documents
        with the Note endorsed as payable to the order of the Assignee without
        recourse;

       

                             
(b)        The Bill of Sale;

       

                             
(c)        An Affidavit of
        Debt, in form,
        substance and content satisfactory to Assignee, dated as of the Closing Date
        and
        stating the then principal balance of and accrued interest of the Loan and
        all
        attorney’s fees and costs associated with the collection of the Loan (such fees
        and costs to be set forth on a detailed schedule to said Affidavit so as
        to
        permit the Assignee to recover the same as a portion of the Loan);

       

                             
(d)        Stock powers with
        signatures
        guaranteed respecting all shares of capital stock pledged to the Assignor
        as
        collateral for the Loan and the original certificates of such pledged capital
        stock;

       

                             
(e)        The parties shall
        execute and
        deliver any documents if, as to the Assignor, the same shall be in the
        possession of the Assignor, as are reasonably necessary for the purpose of
        carrying out the intent of this Agreement.

       

                 
3.         Purchase Price. 
In consideration
        for the Purchased Rights, the Assignee shall pay an amount
        equal to $771,230.07 (the “Purchase Price”) to the Assignor at
        the Closing.  The Purchase Price shall be allocated as
        follows:

       

                             
(a)        Cash Consideration. 
An amount
        equal to $400,000.00 in currently available funds by wire transfer
        and/or bank or certified check in accordance with instructions to be provided
        by
        the Assignor. 

       

                             
(b)        Promissory Note.  A
        Promissory Note in the amount of $371,230.07 made by the Assignee to the
        order
        of the Assignor, which Promissory Note shall be in the form as set forth
        in
Exhibit D and which Promissory Note will be subordinated to any
        indebtedness owing by Assignee any institutional lender providing working
        capital financing to Assignee in an arm’s length transaction (the
“PromissoryNote”).

       

                  The
        parties hereto accept, agree and acknowledge that evidence of termination
        of
        that certain Distributor Agreement dated May 9, 2003, between KWM and Strategic
        Energy Technology Group, in the form attached hereto as Exhibit E, shall
        be received by the Assignee contemporaneously with the closing of the
        transactions contemplated under this Agreement.

       

                 
4.         Representations
        -
        Assignor.      The Assignor hereby represents and
        warrants to the Assignee as follows:

       

                             
(a)        The Assignor is
        the sole owner of
        and has not sold, pledged, assigned, transferred, disposed of or terminated,
        in
        whole or in part, any of his right, title

       

      -3-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      and interest in
        and to
        the Purchased Rights.  The Assignor owns the Purchased Rights and all
        claims and rights arising thereunder, free and clear of any lien or encumbrance
        whatsoever.

       

                             
(b)        To the Assignor’s knowledge, the
        execution, delivery and performance of this Agreement and the transactions
        contemplated hereby do not and on the Closing Date will not conflict with
        or
        result in any breach or contravention of any provision of law, statute, rule
        or
        regulation to which the Assignor is subject.  In addition, the execution,
        delivery and performance of this Agreement and the transactions contemplated
        hereby do not and on the Closing Date will not conflict with or result in
        any
        breach or contravention of any agreement, judgment, order, writ, injunction,
        license or permit applicable to the Assignor.

       

                             
(c)        This Agreement and
        all documents
        executed by Assignor in connection herewith constitute the legal, valid and
        binding obligation of the Assignor enforceable against him in accordance
        with
        its terms.

       

                             
(d)        To the Assignor’s knowledge, the
        Loan is secured by a valid and binding first perfected security interest
        in the
        Collateral subject to no other liens, claims and/or encumbrances.  The
        UCC-1 Financing Statement attached hereto as Exhibit F has been properly
        filed in the filing office described in Exhibit F, which, to Assignor’s
        knowledge, is the only filing office necessary to perfect such security interest
        in the Collateral.  The Assignor has not assigned, hypothecated,
        transferred, pledged, sold or granted a security interest in the Collateral
        to
        any party except to Assignee. 

       

                             
(e)        Effective upon the
        Closing and the
        consummation of the sale and assignment transactions contemplated herein,
        the
        Assignor shall have no continuing ownership interest of any kind or nature
        whatsoever in the Purchased Rights, or any monies payable on account of or
        interest and principal due and payable in connection with the Collateral,
        or any
        claims or rights arising under or in connection with the Collateral, including
        without limitation, the Actions, or any restructuring or modification of
        the
        Purchased Rights.

       

                             
(f)         The aggregate amount
        of
        KWM’s and/or the Guarantors’ indebtedness with respect to the Loan as of
        December 9, 2005, (excluding any legal fees or other costs of collection
        incurred by Assignor) is Seven Hundred Seventy One Thousand Two Hundred Thirty
        and 07/100 Dollars ($771,230.07), which total is comprised of the respective
        amounts owing in respect of the Loan Documents as determined as of December
        9,
        2005, which are set forth on Exhibit A attached hereto.

       

                             
(g)        Neither KWM nor
        any other party
        has any right to a disbursement of additional loan proceeds or future advances
        with respect to the Loan.

       

                             
(h)        There are no escrow
        deposits or
        accounts relating to the Loan which are in the possession or under the control
        of Assignor.

       

      -4-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                             
(i)         Assignor has not:
        (1)
        modified the Note or other Loan Documents in any respect, (2) satisfied,
        canceled or subordinated any of the same in whole or in part, or (3) released
        all or any of the Collateral from the lien created under the Security Agreement,
        or (4) executed any instrument of release, cancellation or satisfaction of
        the
        same in whole or in part.

       

                             
(j)         The copies of the
        Loan
        Documents furnished to the Assignee by Assignor on or before the date hereof
        are
        true and correct copies of such documents and have not, in writing, been
        superseded, amended, modified, canceled or otherwise changed in any material
        respect.

       

                             
(k)        Excepting the Actions,
        Assignor is
        not a party to any other litigation with respect to the Purchased Rights,
        the
        Loan or the Loan Documents and is not aware of any litigation or threatened
        litigation with respect to the Purchased Rights.  A docket sheet from
        Courts for the respective counties where the Actions have been filed is attached
        hereto as Exhibit G.

       

                             
(l)         The Assignor has
        not nor has
        the Assignor caused any other party to, license, distribute and/or grant
        any
        right whatsoever in any Collateral. 

       

                 
5.         Representations
        -
        Assignee.      The Assignee hereby represents and
        warrants to the Assignor as follows:

       

                             
(a)        The Assignee has
        all requisite
        power and authority to execute and deliver, and to perform all of its
        obligations under, this Agreement and all instruments and other documents
        executed and delivered by the Assignee in connection herewith.  The
        transactions contemplated by this Agreement have been approved by the Board
        of
        Directors of the Assignee and by all appropriate internal committees of the
        Assignee as reflected in the minute books of the Assignee, and the officer
        of
        the Assignee whose name appears below has been duly authorized by the Assignee
        to act on its behalf in the execution of this Agreement and in the execution
        of
        all of the documents, agreements and instruments executed in connection
        herewith.  Assignee shall provide Assignor at the Closing with a
        Secretary's Certificate evidencing such approval.

       

                             
(b)        The execution, delivery
        and
        performance of this Agreement and the transactions contemplated hereby do
        not
        and on the Closing Date will not conflict with or result in any breach or
        contravention of any provision of law, statute, rule or regulation to which
        the
        Assignee is subject, or any judgment, order, writ, injunction, license or
        permit
        applicable to the Assignee.

       

                             
(c)        The Assignee is
        acquiring the Loan
        Documents without any view either to participate in, or to sell the Loan
        Documents in connection with any public distribution thereof, and the Assignee
        has no intention of making any distribution of the Loan Documents in a manner
        which would violate applicable securities laws; provided, however, that nothing
        in this Agreement shall restrict or limit in any way the Assignee's

       

      -5-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ability and right
        to
        dispose of all or part of the Loan Documents in accordance with such laws
        if at
        some future time the Assignee deems it advisable to do so.

       

                             
(d)        This Agreement constitutes
        a
        legal, valid and binding obligation of the Assignee enforceable against it
        in
        accordance with its terms.

       

                 
6.         Delivery of
        Documents;
        Other Actions.  Effective upon the Closing, each of the Assignor and
        the Assignee hereby covenants and agrees to execute and deliver all such
        documents and to take such further actions as the other may reasonably deem
        necessary, from time to time, to carry out the intent and purpose of this
        Agreement and to consummate the transactions contemplated hereby.  In
        furtherance of the foregoing, upon consummation of this Agreement and the
        transactions contemplated hereby, the Assignor shall not take any action
        with
        respect to the Actions except as may be authorized by Assignee.  In
        addition, at Assignor’s option, Assignor may act to avoid a default in the
        Actions.  Except as otherwise provided herein, the Assignor accepts, agrees
        and acknowledges that it shall take such actions and execute and deliver
        such
        documents, instruments or agreements as may be requested by Assignee in
        connection with the Actions to (a) preserve the Assignor’s rights thereunder
        and/or (b) transfer the Assignor’s rights thereunder to the Assignee.  The
        Assignor shall provide a copy of any pleading, notice and/or any and all
        information it receives in connection with the Actions promptly to Assignee
        in
        accordance with Section 17 hereof.

       

                 
7.         Mutual Representations
        and
        Warranties.  The Assignor and Assignee represent to the other that they
        have had no dealings, negotiations, or consultations with any broker,
        representative, employee, agent or other intermediary in connection with
        this
        Agreement or the sale of the Purchased Rights.  Assignor and Assignee agree
        that each will indemnify, defend and hold the other free and harmless from
        the
        claims of any broker(s), representative(s), employee(s), agent(s) or other
        intermediary(ies) claiming to have represented Assignor or Assignee,
        respectively, or otherwise to be entitled to compensation in connection with
        this Agreement or in connection with the sale of the Purchased
        Rights.

       

                 
8.         Survival of
        Representations and Warranties.  The representations and warranties of
        the Assignor and Assignee contained herein shall survive the Closing and
        the
        consummation of the transactions contemplated hereby.

       

                 
9.        
Severabililty      If any term,
        covenant,
        condition or provision hereof is unlawful, invalid or unenforceable for any
        reason whatsoever, and such illegality, invalidity or unenforceability does
        not
        affect the remaining parts of this Agreement, then all such remaining parts
        hereof shall be valid and enforceable and have full force and effect as if
        the
        invalid or unenforceable part had not been included.

       

                 
10.       Rights Cumulative;
        Waivers       The rights of each of the
        parties under this Agreement are cumulative and may be exercised as often
        as any
        party considers appropriate under the terms and conditions specifically set
        forth.  The rights of each of the parties hereunder shall not be capable of
        being waived or varied otherwise than by an

       

      -6-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      express waiver or
        variation in writing.  Any failure to exercise or any delay in exercising
        any of such rights shall not operate as a waiver or variation of that or
        any
        other such right.  Any defective or partial exercise of any of such rights
        shall not preclude any other or further exercise of that or any other such
        right.  No act or course of conduct or negotiation on the part of any party
        shall in any way preclude such party from exercising any such right or
        constitute a suspension or any variation of any such right.

       

                 
11.      
Headings.         The headings
        of
        the paragraphs contained in this Agreement are inserted for convenience only
        and
        shall not affect the meaning or interpretation of this Agreement or any
        provision hereof.

       

                 
12.       No Third-Party
        Beneficiaries.      Each of the provisions of this
        Agreement is for the sole and exclusive benefit of the parties hereto, and
        none
        of the provisions of this Agreement shall be deemed to be for the benefit
        of any
        other person or entity.

       

                 
13.       Governing
        Law.            This
        Agreement shall be governed by and construed in accordance with the laws
        of the
        State of Connecticut without reference to conflicts of law.  The parties
        hereto specifically consent to the jurisdiction of the State of Connecticut
        with
        respect to all matters and disputes arising under this Agreement and/or the
        transactions contemplated hereby and agreed to be bound by the judgments,
        decisions and decrees of any state or federal court sitting in the State
        of
        Connecticut.

       

                 
14.       Entire
        Agreement.    This Agreement, together with the other
        documents delivered in connection herewith, sets forth the entire agreement
        and
        understanding of the parties hereto and supersedes all prior agreements and
        understandings between the parties hereto with respect to the transactions
        contemplated hereby.  This Agreement shall be binding on and inure to the
        benefit of the parties hereto and their respective successors and
        assigns.

       

                 
15.       Counterparts.   This
        Agreement may be signed in counterparts, each of which shall be an original
        and
        both of which taken together shall constitute one agreement.

       

                 
16.       Changes to Agreement. This
        Agreement may not be changed, waived, discharged or terminated orally, but
        only
        by an instrument in writing signed by the party against which enforcement
        of
        such change, waiver, discharge or termination is sought.

       

                 
17.       Notices.  Any notice,
        demand, request or other communication made, given, required or permitted
        pursuant to this Agreement shall be (a) in writing, (b) delivered personally,
        transmitted by facsimile, delivered by a commercial overnight courier service
        or
        mailed by certified or registered United States first class mail, return
        receipt
        requested, postage prepaid, and (c) addressed to the party for whom intended,
        as
        follows:

       

      -7-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                 
(a)        If to Assignee addressed
        to:

       

                                         
David Murphy, Executive
        Vice
        President
                                   
Host America
        Corporation
                                   
2
        Broadway
                                   
Hamden, CT 06518

       

                                         
Copy to:

       

                                         
Steven A. Berman,
        Esq.
                                   
Rogin, Nassau, Caplan, Lassman & Hirtle,
        LLC
                                   
CityPlace I, 22nd
        Floor
                                   
185 Asylum
        Street
                                   
Hartford, CT 06103

       

                 
(b)        If to Assignor addressed
        to:

       

                                         
Mr. Burton M.
        Sack
                                   
59 The
        Heights
                                   
Mashpee, Massachusetts  02649

                                         
Mr. Burton M.
        Sack
                                   
415 L’Ambiance
        Drive
                                   
Longboat Key, FL 34228

       

                                         
Copy to:

       

                                         
David Silberstein,
        Esq.
                                   
Kirk Pinkerton,
        P.A.
                                   
720 South Orange
        Avenue
                                   
Sarasota, FL 34236

       

                 
18.       Confidentiality.  Each of
        the Assignor and the Assignee agrees with the other that it shall hold in
        confidence and shall not disclose to any third party the specific terms and
        conditions of this Agreement or the transactions contemplated hereby, except
        for
        disclosures required hereunder or by applicable law, court order or by
        governmental or regulatory authorities, and except for disclosures to the
        Assignor, the Assignee and their respective representatives and consultants
        for
        use solely as necessary in connection with this Agreement and the transactions
        contemplated hereby; provided that such representatives and consultants are
        advised of the confidentiality requirements contained herein and shall agree
        to
        be bound thereby; and further provided that the parties hereto shall be
        responsible for any breach of these confidentiality requirements by their
        respective representatives and consultants.  Should Assignee default under
        the terms of the Promissory Note, Assignor shall send written notice to
        Assignee, who will have twenty (20) days to cure the default.  If the
        default is not cured by Assignee within that

       

      -8-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      time, Assignor will
        no
        longer be required to hold this Agreement and related transactions in
        confidence.

       

                 
19.       Costs and Expenses.  At the
        Closing, the Assignee shall pay all filing and recording fees required to
        be
        paid by either the Assignor or the Assignee in connection with the transactions
        contemplated by this Agreement.  Each of the Assignor and the Assignee
        shall be solely responsible for all costs or expenses (including legal expenses)
        incurred by it with respect to the sale of the Purchased Rights.  Except as
        otherwise described herein, the Assignee (and not the Assignor) shall be
        solely
        liable for and shall pay when due all costs and expenses relating to or in
        connection with the Purchased Rights which are incurred after the Closing
        Date;
        provided, however, Assignee shall not be responsible for any such costs and
        expenses incurred prior to and through the Closing Date.

       

                 
20.       Further Assurances.  The
        parties agree to execute such other and further instruments and documents
        as
        shall be necessary to implement and carry out the terms
        of the within and
        foregoing Sale and Assignment Agreement at no further cost or expense to
        any
        other party.

       

      [signature
        pages follow]

      

 

      -9-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      [SIGNATURE
        PAGE TO SALE AND ASSIGNMENT
        AGREEMENT]

       

                  IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        date
        first above written.

       

                                                                             
HOST AMERICA CORPORATION

       

       

                                                                             
By:/s/ DAVID
        MURPHY        
                                                                       
Name:
                                                                       
Title:

       

       

                                                                             
/s/ BURTON M.
        SACK         
                                                                       
BURTON M. SACK

       

      STATE OF
        CONNECTICUT)
                                               )
        ss:  Hamden
COUNTY OF NEW HAVEN)

       

                  On
        this the 9th day of December, 2005, personally appeared ________________,
        who
        acknowledged himself to be the ________________________of Host America
        Corporation, signer and sealer of the foregoing instrument and acknowledged
        the
        same to be his free act and deed as such officer and the free act and deed
        of
        said corporation, before me.

       

                                                                             
______________________________
                                                                       
Name:
                                                                       
        Notary
        Public
                                                                       
My Commission Expires:

       

      STATE OF
        ______________)
                                               )-ss.
COUNTY
        OF ____________)

       

                  On
        this the 9th day of December, 2005, personally appeared Burton M. Sack, the
        signer and sealer of the foregoing instrument and acknowledged the same to
        be
        his free act and deed, before me.

       

                                                                             
______________________________
                                                                       
Name:
                                                                       
        Notary
        Public
                                                                       
My Commission Expires:

       

       

      -10-

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      APPENDIX
        OF DEFINITIONS

       

                 
        Actions: 
        the
        meaning set forth in paragraph 3 of page 1.

       

                 
        Agreement: 
        the
        meaning set forth in paragraph 1 of page 1.

       

                
        Assignee: 
        the
        meaning set forth in paragraph 1 of page 1.

       

                
        Assignor: 
        the
        meaning set forth in paragraph 1 of page 1.

       

                
Bill of
        Sale:  the meaning set forth in the last paragraph of
        Section 1.

       

                
        Closing:  the closing of the transactions contemplated by
        this Agreement

       

                
Closing
        Date:  the meaning set forth in Section 2.

       

                
        Collateral:  the meaning set forth in Section 1(b).

       

                
Guarantors: 
shall
        mean each of Charlie Stevenson and
        Scott Feldhacker,
        the
           
guarantors of the Loan.

       

                 KWM:
 
the
        meaning set forth in paragraph 2 of page 1.

       

                 Loan:  
the
        meaning set forth in paragraph 2 of page 1.

       

                 Loan
        Agreement: 
the meaning set forth in paragraph 2 of page 1.

       

                 Loan
        Documents: 
the meaning set forth in paragraph 2 of page 1.

       

                 Note: 
the
        meaning set forth in paragraph 2 of page 1.

       

                
Promissory
        Note: the meaning set forth in Section
        3(b).

       

                
Purchase
        Price:  the meaning set forth in Section
        3.

       

                 Purchased
        Rights:  the meaning set forth in Section 1.

       

                 Security
        Agreement:  the meaning set forth in paragraph 2 of page
        1.

                 UCC-3: 
the
        meaning set forth in the last paragraph of Section 1.

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