Asset Purchase Agreement dated April 17, 2007


    Exhibit
      10.1

    ASSETS
      PURCHASE AGREEMENT

    


    


    THIS
      IS AN AGREEMENT made as of the 17th day of April, 2007 by and among:


    


    


     

    HOST
      AMERICA CORPORATE DINING, INC.

    a
      Connecticut corporation

    with
      a place of business at

    147
      Ledge Drive

    Berlin,
      CT
      06037                                                                                           
("Buyer")
      

      

    and
      

    


    HOST
      AMERICA CORPORATION 

    a
      Colorado corporation

    with
      a place of business at

    2
      Broadway, Hamden, CT
      06518                                                                   
("Seller")

    


    and

    


    TIMOTHY
      HAYES

    of
      147 Lodge Drive

    Berlin,
      CT
      06037                                                                                              (“Hayes”)

    


    


    WHEREAS,
      the Seller owns and operates a business which specializes in the management
      of
      corporate dining rooms and cafeterias and such ancillary services as special
      event catering and office coffee service to various business and industry
      accounts (the "Business");
      and 

    


    WHEREAS,
      the Seller desires to sell certain of the personal property assets of the
      Business, tangible and intangible, including without limitation all rights
      to
      the name "Host America" (but excluding the Excluded Assets as hereinafter
      defined); and 

    


    WHEREAS,
      the Buyer is willing to purchase said assets on the terms and subject to the
      conditions hereinafter set forth; and 

    


    WHEREAS,
      neither the Seller nor the Buyer intends that the Buyer shall assume any
      Seller's liabilities or obligations of any kind, except as set forth herein.
      

    


    
      
        
        

      

      
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    NOW,
      THEREFORE, IN VIEW OF THE FOREGOING AND IN CONSIDERATION OF THE MUTUAL PROMISES
      HEREINAFTER SET FORTH, THE PARTIES HERETO DO HEREBY REPRESENT, WARRANT, COVENANT
      AND AGREE AS FOLLOWS:

    


    (reference
      being hereby made to Appendix
      I
      for the definition of certain capitalized terms.)

    


    1. Sale
      and Purchase of Certain Assets.
      

    


    On
      the terms and subject to the conditions contained herein, at the Closing, the
      Seller will sell, transfer, assign, convey and deliver to the Buyer, and the
      Buyer will purchase from the Seller, for the consideration hereinafter set
      forth, certain of the Seller’s assets relating to the Business, tangible and
      intangible, of every kind, nature and description, wherever located and whether
      or not recorded on the books of Seller, in connection with the operation of
      the
      Business, as described below: 

    


    (a) the
      Business as a going concern; 

    


    (b) all
      of Seller's inventory (including food and non-food inventory) relating to the
      Business as shall exist on the Closing Date (the “Inventory”);

    


    (c) all
      of Seller's machinery, equipment, furniture, vehicles, fixtures (excluding
      any
      fixtures located at 2 Broadway, Hamden, Connecticut), computer equipment
      (excluding any computer equipment located at 2 Broadway, Hamden, Connecticut
      and
      any computer equipment at locations that are leased by Seller), and other
      personal property which is related to the Business, all as described on
Schedule
      1(c) attached
      hereto (all such assets being hereinafter referred to as the "Other
      Tangible Assets");
      

    


    (d) Other
      than any accounts receivable or any Indebtedness owing to Seller, Seller's
      rights in respect of orders, contracts and agreements for the purchase or sale
      of goods, services, including, without limitation, any existing service
      agreements (including all agreements to provide refreshment vending through
      third party vendors which are in force at the Closing), customer accounts,
      and
      work in process, all of which specifically relate to the Business (all such
      assets being hereinafter referred to as the "Purchased
      Contracts");
      

     

    (e) all
      of Seller's good will, prospect sales lists, sales reports, costs sheets,
      processes, relations with customers, customer lists, relations with suppliers,
      supplier lists, know-how and copyrights, all of which are specifically related
      to the Business and the rights of Seller to the trademarks, service marks,
      copyrights, copyrightable materials and trade names relating to “Host America”
(all such assets being hereinafter referred to as the "Intangible
      Assets");
      and

    


    (f) the
      leases for capital equipment relating to the Business as set forth on
Schedule
      1(f)
      (the “Assumed
      Capital Leases”);
      and 

    


    
      
        
        

      

      
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    ((a)
      - (f) being hereinafter collectively referred to as the "Purchased
      Assets")
      

    


    (g) Anything
      to the contrary in this Section 1 notwithstanding, the Purchased Assets shall
      not include the following assets of the Seller (the "Excluded
      Assets"):
      (i) any cash or cash equivalents; (ii) any accounts receivable and any other
      Indebtedness owing to Host, allowances and/or credits other than amounts billed
      to customers of the Business for services not performed as of the Closing Date
      (“Prebillings”); (iii) deferred Taxes, and the right to receive any refunds of
      Taxes paid by Seller prior to the Closing; (iv) any and all net operating loss
      carryforwards; (v) any refunds of unearned insurance premiums; (vi) any and
      all
      employee pension, retirement, profit sharing, bonus, incentive, deferred
      compensation or other employee benefit plans, and any related trust or assets
      thereof; (vii) the rights of Seller under this Agreement and any agreement
      entered into pursuant hereto; (viii) all assets, rights and properties of Seller
      relating to its corporate governance and administration, including corporate
      minute books, corporate seals and stockholder records; (ix) Seller's Tax records
      and Tax returns; (x) any tangible assets located at 2 Broadway, Hamden,
      Connecticut; and (xi) any other item not specifically listed in (a) through
      (f)
      above. 

    


    (h) Seller
      will wire transfer to the Buyer the actual amounts collected after the Closing
      for Prebillings. Such transfer will take place after the receipt of such
      Prebilling amounts by Seller and upon the clearing of such amounts in the
      Seller’s bank account.

     

    2. Consideration.
      

    


    (a) Purchase
      Price.
      In consideration for the Purchased Assets to be sold to the Buyer hereunder,
      and
      the other covenants and provisions hereof to be performed by the Seller and
      subject to the adjustments and set-offs provided for hereunder, Buyer shall
      pay
      $1,200,000to the Seller (as the same may be adjusted as described herein,
      "Purchase
      Price")
      at the Closing upon fulfillment of all conditions as described herein.


    


    (b) Adjustments.
      

    


    (i)
      The Purchase Price has been agreed upon based on the Seller transferring the
      rights to operate dining and related services to twenty-four (24) locations
      as
      described on Schedule
      2(b)(i)
      attached hereto (“Purchased Contracts”). On the day that is two (2) business
      days prior to the Closing, the Seller shall deliver to Buyer a listing of the
      Closing Date Purchased Contracts. The Purchase
      Price to be paid by the Buyer on the Closing Date pursuant to Section 2(a)
      above
      shall be (a) increased by $0.05 for each $1.00 of annual revenue for new
      accounts that are listed on the Closing Date Purchased Contracts and are not
      listed on the Purchased Contracts and (b) decreased, for each account on the
      Purchased Contracts but not
      on the Closing Date Purchased Contracts (each a “Terminated Contract”), by the
      Purchase Price Adjustment amount for each Terminated Contract that is listed
      on
Schedule
      2(b)(i),
      but not below the Valuation determined pursuant to paragraph 2(c)
      below.

     

    
      
        
        

      

      
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    (ii)
      In the event the Closing Inventory exceeds the average Inventory, as measured
      on
      the same day of the month as the day of the month that is the Closing Date
      for
      the period prior to Closing commencing on January 1, 2007 and ending March
      31,
      2007, which the parties have agreed is in the amount of $205,801.00, the
      Purchase Price will be adjusted by $1.00 for every $1.00 of Inventory in excess
      ofsuch amount.

    


    (c) Valuation.
      Prior to the Closing, Seller will have an independent valuation of the Business
      conducted in order to determine the fairness of the Purchase Price. In the
      event
      such Valuation places a value on the Business in excess of the Purchase Price,
      then the Purchase Price shall be increased to such value.

    


    3. Closing.
      

    


    The
      Closing of the sale and purchase of the Purchased Assets hereunder shall be
      held
      at the offices of Rogin, Nassau, Caplan, Lassman & Hirtle, LLC, 195 Church
      Street, New Haven, Connecticut or at such other location as may be reasonably
      required by Buyer’s Lender at 10:00 a.m. on the last Friday in the month after
      the fulfillment of the condition precedent set forth in Section 9(e) below,
      or
      at such other place, time or date as the Buyer and the Seller may mutually
      agree
      (such closing herein called the "Closing"
      and such date on which the Closing actually takes place is herein called the
      "Closing
      Date"),
      time being of the essence of this Agreement. In any event, the Closing Date
      shall be as early as practicable. 

    


    (a) Deliveries
      by Buyer at the Closing:

    


    1. The
      Purchase Price in U.S. Dollars, wired to the Seller in accordance with the
      Seller’s instructions. 

     

    2. A
      Good Standing Certificate of the Buyer. 

    


    3. A
      Certificate of the Buyer, dated as of the Closing Date, certifying in such
      detail as Seller may reasonably request to the fulfillment of the conditions
      set
      forth in Section 9; 

     

    (b)
       Deliveries
      by Seller at the Closing:

    


    


    1. Good
      Standing Certificates of Seller in their respective states of
      incorporation. 

    


    2. A
      Certificate of Seller, dated as of the Closing Date, certifying in such detail
      as Buyer may reasonably request to the fulfillment of the conditions set forth
      in Section 8. 

    


    3. the
      Non-Compete Agreements. 

     

    
      
        
        

      

      
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    4. Warranty
      bills of sale and other good and sufficient instruments of transfer, assignment
      and conveyance as shall be effective to transfer to and vest in the Buyer good
      and marketable fee simple title to the Purchased Assets, free and clear of
      any
      and all liens, claims and encumbrances of any kind, nature and description,
      all
      in form satisfactory to counsel for the Buyer.

    


    5. Any
      and all records relating to any and all of the Purchased Assets and the
      Business, including without limitation any and all customer lists, supplier
      lists, purchase orders, employee records and such other records and documents
      as
      Buyer shall reasonably require. 

    


    6. If
      available, originally signed or copies of all the contracts or similar type
      items evidencing the Purchased Contracts. 

     

    (c) Buyer
      and Seller shall deliver to the other such other documents, including certified
      resolutions of their Board of Directors (and or shareholders) , as applicable,
      authorizing the transactions contemplated hereunder, and take such other action
      as may be provided for herein or contemplated hereby. 

    


    (d) Buyer
      and Seller shall execute and deliver to one another such other instruments
      and
      documents as shall be necessary and proper to carry out this Agreement,
      including, but no limited to, an assignment and assumption agreement(s) in
      form,
      substance and content reasonably satisfactory to the parties, fully executed
      by
      Buyer and Seller to which Buyer assumes and Seller assigns, as of the Closing
      Date, the future payment and performance of the Assumed Obligations and the
      Assumed Capital Leases. 

     

    (e) Personal
      property Taxes, deposits, prepayments and/or payments under Assumed Obligations
      (hereinafter defined), employee benefits and vacation pay, and all other
      continuing items relating to the operation of the Business being purchased
      as
      set forth herein shall be adjusted at the Closing as of the Closing Date in
      accordance with the local custom in New Haven County, Connecticut. All Taxes
      relating to the transfer of the Purchased Assets, including without limitation
      sales, use, conveyancing, and all other governmental or municipal fees or
      charges shall be paid by the Buyer.

    


    (f) On
      the day of the Closing Date, representatives of Seller and Buyer shall prepare
      a
      Schedule (Schedule
      3(f))
      to this Agreement which shall be executed by Seller and Buyer and which shall
      establish the final Purchase Price as adjusted as described herein. Such
Schedule
      3(f) shall
      be appended hereto, shall be a part hereof and shall represent the final
      determination of the Purchase Price for purposes of the Closing. 

    


    (g) In
      connection with the Closing, Seller shall take or cause to be taken all actions
      as may reasonably be required by Buyer to take actual possession and control
      of
      the Purchased Assets. Buyer shall be solely responsible for any costs it incurs
      which are associated with the physical removal and delivery of the Purchased
      Assets to Buyer and shall be responsible for any

     

    
      
        
        

      

      
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    costs
      or damages associated with such physical removal or delivery of the Purchased
      Assets which are incurred by Seller and which are not the result of Seller’s
      negligence. 

    


    (h) Buyer
      and Seller shall execute mutual releases of all obligations each has to the
      other except those arising on and after the Closing Date.

    


    4. Access.
      

    


    Between
      the date hereof and the Closing Date, Seller will (a) provide, to the officers
      and other authorized representatives of Buyer, full access, during normal
      business hours, to any and all premises, properties, files, books, records,
      documents, and other information of the Business and will cause its officers
      to
      furnish to Buyer and its authorized representatives any and all financial,
      technical and operating data and other information pertaining to the Business
      and properties of the Business and (b) make available for inspection and copying
      by Buyer true and complete copies of any documents relating to the
      foregoing.

    


    5. Liabilities.
      

    


    Except
      for the Assumed Capital Leases and the Assumed Obligations, Buyer does not
      assume any liabilities or obligations of Seller, including without limitation
      any liabilities relating to the Purchased Assets or relating to the Business
      operated with the Purchased Assets, whatsoever. Attached hereto as Schedule
      5
      is a listing of the Purchased Contracts and other items which Buyer shall assume
      (the "Assumed
      Obligations").
      The Assumed Obligations and the Assumed Capital Leases shall be the only
      liabilities or obligations of Seller which are assumed hereunder by Buyer.
      Any
      and all obligations of Seller, or related to the Assets, which are not Assumed
      Capital Leases or Assumed Obligations, shall remain the liabilities and
      obligations of the Seller, and Seller shall remain solely responsible for their
      payment and performance when due. The Buyer agrees to honor the Seller’s
      obligations under the Assumed Obligations and the Assumed Capital Leases in
      accordance with the terms of such items. 

    


    6. Assumed
      Obligations. 

    


    It
      is the intent of the parties hereto that Buyer and Hayes shall assume the
      responsibility to perform services with respect to the Assumed Obligations
      and
      the Assumed Capital Leases as of the Closing Date.

    


    (a) Buyer
      shall be entitled to all revenue generated from the rendering of services with
      respect to Assumed Obligations on and after the Closing Date and shall be
      responsible for all expenses related to the Assumed Obligations on and after
      the
      Closing Date. Any payments respecting such services received by Seller for
      any
      period after the Closing Date shall be promptly remitted in kind, by Seller
      to
      Buyer. Any expenses incurred in connection with the Assumed Obligations or
      the
      Assumed Capital Leases prior to the Closing Date shall be paid by
      Seller.

     

    
      
        
        

      

      
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    (b) Seller
      shall be entitled to all revenue generated from the rendering of services with
      respect to Assumed Obligations prior to the Closing Date and shall be
      responsible for all expenses related to the Assumed Obligations prior to the
      Closing Date. Any payments respecting such services received by Buyer for any
      period prior to the Closing Date shall be promptly remitted, in kind, by Buyer
      and/or Hayes to Seller. Any expenses incurred in connection with the Assumed
      Obligations or the Assumed Capital Leases on and after the Closing Date shall
      be
      paid by Buyer and/or Hayes.

    


    7. Seller’s
      Employees.

    


    It
      is anticipated that in connection with the consummation of the transactions
      contemplated by this Agreement, Buyer will employ all employees of Seller in
      connection with the Business. Buyer will be responsible for all obligations
      to
      such employees arising after the Closing Date.

    


    8. Conditions
      Precedent to Buyer's Obligations.
      

    


    Buyer's
      obligation to close the transactions described herein are expressly conditioned
      upon the fulfillment of each and all of the following: 

    


    (a) All
      obligations of Seller hereunder shall have been fully performed to the
      satisfaction of Buyer.

    


    (b) The
      Business being operated between the date hereof and the Closing Date in the
      ordinary course and there having occurred since February 1, 2006, it being
      acknowledged however that the shareholders of Buyer will continue to operate
      the
      Business as an employee of Seller until the Closing shall have been consummated.
      

    


    (c) All
      warranties and representations hereinafter of the Seller set forth being true
      when made and being true on the Closing Date as though made at and respecting
      each such time and all of Seller’s covenants having been fully performed on such
      date. 

    


    (d) Neither
      Seller, nor the Business nor any of the Purchased Assets being subject to any
      material litigation and no such litigation being in any way pending or
      threatened. 

    


    (e) All
      other parties to any of the Assumed Obligations having consented to Buyer's
      assuming the Assumed Obligations and agreeing to Buyer's performance thereunder
      from and after the Closing Date.

    


    (f) All
      actions to be taken by the Seller in connection with consummation of each of
      the
      transactions contemplated hereby and all documents, instruments or agreements
      required to effect the transactions contemplated hereby will be satisfactory
      in
      form and substance to the Buyer.

    


    
      
        
        

      

      
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    (g) Buyer
      shall have completed a due diligence review of the Purchased Assets and the
      Business, the results of which shall be reasonably satisfactory to Buyer.


    


    (h) Buyer
      shall have received a commitment for financing in the amount of at least
      $1,000,000 upon generally available market terms.

    


    (i) Buyer
      and Seller shall have received and approved SEC Form 8K prepared by Seller
      with
      respect to the transactions described herein.

    


    (j) In
      the event Buyer has not provided notice to Seller that any such condition has
      not been fulfilled within 45 days after the date hereof, all conditions
      described above shall be deemed to be fulfilled.

    


    9. Conditions
      Precedent to Seller’s Obligations.
      

    


    (a) All
      obligations of Buyer hereunder shall have been fully performed to the
      satisfaction of Seller.

    


    (b) All
      warranties and representations of the Buyer hereinafter set forth being true
      when made and being true on the Closing Date as though made at and respecting
      each such time and all of Seller’s covenants having been fully performed on such
      date. 

    


    (c) The
      Buyer not being subject to any material litigation and no such litigation being
      in any way pending or threatened. 

    


    (d) All
      actions to be taken by the Buyer in connection with consummation of each of
      the
      transactions contemplated hereby and all documents, instruments or agreements
      required to effect the transactions contemplated hereby will be satisfactory
      in
      form and substance to the Seller. 

     

    (e) Seller
      shall have received the authorization of its board of directors and shareholders
      and of the United States Securities and Exchange Commission and any other
      governmental authority having jurisdiction over Seller or Parent to consummate
      the transactions contemplated by this Agreement and amend its certificate of
      incorporation such that Seller shall change its corporate name. 

    


    (f) Buyer
      and Seller shall have received and approved SEC Form 8K prepared by Seller
      with
      respect to the transactions described herein.

    


    (g) In
      the event Seller has not provided notice to Buyer that any such condition has
      not been fulfilled within 45 days after the date hereof, all conditions
      described above shall be deemed to be fulfilled. This time limitation shall
      not
      apply to Section 9(e) above.

     

    
      
        
        

      

      
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    10. Representations
      and warranties of the Seller.
      

    


    Seller
      represents and warrants to and agrees with the Buyer as follows: 

    


    (a) Seller
      is a corporation duly organized and validly existing under the laws of the
      State
      of Colorado with full authority to conduct its business as presently conducted.
      Seller has all licenses and permits required by any governmental authority
      to
      own and operate its properties and to carry on the Business activities as
      presently conducted in all states in which it conducts business. 

    


    (b) The
      execution and delivery of this Agreement has been duly authorized by all
      necessary corporate action of Seller (including without limitation the consent
      of Seller's Board of Directors.) and does not, and the performance of the
      transactions contemplated hereby will not, materially breach or materially
      violate any of the provisions of Seller's Articles of Incorporation, By-Laws,
      code of ethics, or any material agreement, judgment or law respecting which
      Seller is a party or is bound or affected. 

    


    (c) 
      No Tax which is or may result in a lien on any of the Purchased Assets that
      is
      due at the time of Closing will be unpaid at the time of Closing. 

    


    (d) To
      Seller’s knowledge, there is no legal action, suit or governmental proceeding or
      investigation pending or threatened against or affecting the Purchased Assets
      and no Seller is subject to any order, writ, injunction or decree of any court
      or governmental authority with respect to the Purchased Assets. The Seller’s
      conduct of the Business is in compliance with all laws, ordinances, rules,
      regulations or orders that are applicable to it or them and that would affect
      the Business. Schedule
      10(d)
      lists all permits, consents, approvals, licenses and other like instruments
      issued under health, safety or environmental protection laws which are currently
      held by Seller relating to the Business. In extension of the foregoing, certain
      class action litigation currently pending against Seller will not in any way
      affect the transactions contemplated hereby nor constitute a lien on any of
      the
      Purchased Assets and Seller will indemnify and hold harmless Buyer against
      any
      claims arising out of any such actions.

    


    (e) No
      representation or warranty of Seller contained herein, or information with
      respect to Seller contained herein or in any Schedule hereto or in any
      statement, certificate or other document furnished or to be furnished to the
      Buyer by Seller pursuant hereto or in connection with the transactions
      contemplated hereby, contains or will contain any untrue statement of material
      fact or omits or will omit to state any material fact necessary to make the
      statements herein and the Schedules hereto not false or misleading.


    


    (f) The
      Seller has good and marketable title to all of the Purchased Assets free
and
      clear of all tile defects, liens, claims or other encumbrances. All the
      Purchased Assets are in good operating condition (reasonable wear and tear
      excepted) and are adequate for their use in the Business as presently conducted.
      Any Equipment (as defined in the Connecticut Uniform Commercial Code) which
      is
      part of the Purchased Assets is sold “As
      Is”,
      and where is, and without

     

    
      
        
        

      

      
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    representation
      of any kind, including without limitation warranties as to merchantability
      or
      fitness for a particular purpose. 

    


    (g) No
      other party has any right to or interest in any of the Purchased Assets or
      any
      right to acquire any interest in the Business or any of the Purchased Assets.
      

    


    (i) To
      Seller’s knowledge, there is no labor strike, grievance, procedure, arbitration
      proceeding or organizational drive pending or threatened against Seller.


    


    (j) Neither
      Seller nor the other parties to the Purchased Contracts are in default thereof
      and all such Purchased Contracts are valid and in effect.  No Seller has
      received notice of default under any Purchased Contracts, and knows of no event
      that has occurred or that is expected to occur which (after notice and lapse
      of
      time or both) would become a breach or default under any such Purchased
      Contract.  

    


    11. Representations
      and Warranties of the Buyer and Hayes.
      

    


    Buyer
      represents and warrants to and agrees with Seller as follows: 

    


    (a) Buyer
      has all requisite power and authority to own, lease and operate its properties,
      to carry on its business as now being conducted and to execute, deliver and
      perform this Agreement and all writings relating hereto. 

    


    (b) The
      execution and delivery of this Agreement has been duly authorized by all
      necessary action of Buyer and does not, and the performance of the transactions
      contemplated hereby will not, materially breach or materially violate any
      material agreement, judgment or law respecting which any Buyer is a party or
      is
      bound or affected. 

    


    (c) Buyer
      has been provided with adequate opportunities to review contracts, assess the
      Purchased Assets and otherwise satisfy itself with the value of the Purchased
      Assets. 

    


    (d) Buyer
      has all necessary licenses, permits and other approvals necessary to conduct
      its
      affairs and operate the Business post-Closing. 

    


    (e)
      To Buyer’s knowledge, there is no legal action, suit or governmental
proceeding or investigation pending or threatened against or affecting
      the Purchased Assets and Buyer is mot subject to any order, writ, injunction
      or
      decree of any court or governmental authority with respect to the Purchased
      Assets. 

    


    (f) Buyer
      acknowledges that it has operated the Business on a day-to-day basis as an
      employee of Seller. Buyer has no knowledge of any breach of the representations
      of Seller contained in Sections 10(d), (i) or (j) above.

    


    
      
        
        

      

      
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    12. Conduct
      of Business.
      

    


    (a) From
      the date hereof until the Closing Date, the Seller and Hayes will: (i) conduct
      the Business only in the ordinary course; (ii) maintain the general character
      of
      the Business; (iii) maintain the Purchased Assets in good repair and condition,
      ordinary wear and tear alone excepted; (iv) maintain in all material respects
      all necessary insurance coverage and all necessary licenses and permits,
      governmental or otherwise; (v) use its best efforts to preserve its good will
      and the good will of its suppliers, customers and others having business
      re1ationships with it; (vi) provide the Buyer with all such information
      concerning its business, affairs, products and the like, as the Buyer may
      reasonably request; and (vii) permit the Buyer and its representatives to
      examine its books, records and properties, and its auditor's work papers
      associated with and supporting its financial statements, at all reasonable
      times, provided reasonable notice shall have been given to the Seller.


    


    (b) From
      the date hereof until the Closing, the Seller will not: (i) mortgage, pledge
      or
      borrow or subject to lien or other encumbrance any of the Purchased Assets
      that
      will not be fully paid and discharged on the Closing Date; (ii) sell or
      otherwise dispose of any of the Purchased Assets, except Inventory in the
      ordinary course of business; and (iii) in connection with the Business, enter
      into any agreement, contract, or commitment other than in the ordinary course
      of
      business.

    


    13. Confidentiality.
      

    


    (a) Confidentiality
      Obligations of Seller 

    


    (1)   Seller
      acknowledges and agrees that it possesses confidential information related
      to
      the Buyer, the Business and the Purchased Assets, the improper disclosure or
      misuse of which would materially adversely affect the ability of Buyer to make
      use of the Purchased Assets.

    


    (2)
      Other than as may be required by any applicable law, rule or regulation, Seller,
      and any agent or representative of it, shall not, without prior written consent
      of the Buyer, disclose any proprietary information relating to the Buyer, the
      Business or the Purchased Assets (“Confidential
      Information").
      Confidential Information shall not include information that becomes publicly
      available through no act of the disclosing party, is received rightfully from
      a
      third party without duty of confidentiality, is disclosed under operation of
      law, or is disclosed with the prior written permission of the Buyer.


    


    (3) Other
      than in connection with the Business, Seller agrees that it will not at any
      time
      or in any manner, either directly or indirectly, use any Confidential
      Information for their own benefit, and that they will protect such information
      and treat it as strictly confidential. Buyer shall be entitled to an injunction
      to restrain Seller from disclosing, in whole or in part, any Confidential
      Information, or from providing any services to any party to whom such
      information has been disclosed or may be disclosed. Buyer shall not be
      prohibited by this provision from pursuing other remedies, including claims
      for
      losses or damages. 

    


    
      
        
        

      

      
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    (b) Confidentiality
      Obligations of Buyer and Hayes

    


    (1) Buyer
      will hold in confidence, and will not use to the detriment of Seller, any data
      and information obtained from Seller in connection with this Agreement. Upon
      termination of this Agreement for any reason, Buyer shall return promptly to
      Seller all printed information received by Buyer from Seller in connection
      with
      the proposed transaction and deliver to Seller or destroy all copies of such
      printed material which may have been made by Buyer or its representatives.
      

    


    (2) In
      the event Buyer does not purchase the Purchased Assets, Buyer shall not, unless
      required by any applicable law, rule or regulation, without prior permission
      of
      Seller, disclose any proprietary information relating to Seller, the Business
      or
      the Purchased Assets (collectively, "Seller's
      Confidential Information").
      Seller's Confidential Information shall not include any other information that
      becomes publicly available through no act of the disclosing party, is received
      rightfully from a third party without duty of confidentiality, is disclosed
      under operation of law, or is disclosed with the prior written permission of
      the
      Seller. 

    


    (3) Buyer
      agrees that it will not at any time or in any manner, either directly or
      indirectly, use any of Seller's Confidential Information for its own benefit,
      and that it will protect such information and treat it as strictly confidential.
      Seller shall be entitled to an injunction to restrain Buyer from disclosing,
      in
      whole or in part, Seller’s Confidential Information, or from providing any
      services to any party to whom such information has been disclosed or may be
      disclosed. Buyer shall not be prohibited by this provision from pursuing other
      remedies, including claims for losses or damages. 

    


    14. Disclosure.
      

    


    The
      parties mutually agree not to disclose the terms of this Agreement except only
      in a form mutually agreed to in writing, in advance by the parties, or as
      required by any applicable laws, regulations, rules, or in accordance with
      any
      the rules and regulations of any exchange on which any capital stock of Seller
      is listed, or except as required by court order. If disclosure is required,
      the
      disclosing party agrees to notify the other party in advance of the content
      of
      the information being disclosed and to whom the disclosure is being made.


    


    


             15. Termination.
      

    


    (a) At
      any time prior to the Closing, the Buyer may terminate this Agreement and all
      liability of the Buyer hereunder in the event: 

    


    (i) the
      Buyer, in its reasonable discretion shall determine that there has

     

    
      
        
        

      

      
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    been
      a material misrepresentation and/or breach of warranty on the part of Seller
      or
      the Parent and/or the nonfulfillment of any condition precedent or covenant
      required to be fulfilled by Seller or the Parent under this Agreement;


     

    (iii) the
      transaction contemplated herein is not closed by sixty (60) days after the
      date
      hereof unless full approval of the transaction by all governmental and
      regulatory authorities having jurisdiction over any activities of Parent shall
      not have been unconditionally obtained, in which event the Closing may be
      postponed until all such approvals have been obtained, or unless caused by
      the
      act or failure to act of Buyer. 

    


    (b) Seller
      may terminate this Agreement if:

     

    (i) the
      transaction contemplated herein is not closed by sixty (60) days after the
      date
      hereof unless full approval of the transaction by all governmental and
      regulatory authorities having jurisdiction over any activities of Parent shall
      not have been unconditionally obtained, in which event the Closing may be
      postponed until all such approvals have been obtained, or unless caused by
      the
      act or failure to act of Seller; 

    


    (ii) Seller,
      in its reasonable discretion, shall determine that there has been a material
      misrepresentation or breach of warranty on the part of the Buyer and/or the
      nonfulfillment of any condition precedent or covenant required to be fulfilled
      by the Buyer under this Agreement. 

     

    16. Brokerage
      and Other Expenses.
      

    


    The
      parties hereto represent to each other that neither of their representatives
      has
      incurred any liability for any broker's, finders or similar fee in connection
      with this Agreement and the transactions contemplated hereby. Each of the
      parties hereto shall pay such party's respective expenses, including, without
      limitation, attorney's fees, in connection with this Agreement and the
      transactions contemplated hereby, and neither of the parties hereto shall in
      anyway be liable for such expenses of the other. 

    


    17. Survival
      of Representations, Warranties and Covenants; Indemnification.
      

    


    (a) Survival
      Period.
      Except as described in this Section 17, the representations, warranties,
      covenants and agreements of the parties in this Agreement shall survive the
      execution and delivery of this Agreement and the Closing but only until the
      date
      one (1) year after the Closing Date (except for claims in respect thereof
      pending at such time, which shall survive until finally resolved or settled).
      Except as set forth in Section 17(e), no action may be commenced with respect
      to
      any representation, warranty, covenant or agreement in this Agreement, or in
      any
      writing delivered pursuant hereto, unless written notice, setting forth in
      reasonable detail the claimed breach thereof, shall be delivered pursuant to
      Section 21 to the party or parties against whom liability for the claimed breach
      is charged on or before the termination of the survival period specified in
      this
      Section 17 for such representation, warranty, covenant or agreement.


    


    
      
        
        

      

      
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    (b) Threshold
      and Cap.
      Notwithstanding anything to the contrary herein, in no event shall the Buyer
      be
      liable to Seller or any of its Affiliates nor shall Seller be liable to Buyer
      or
      any of its Affiliates, pursuant to this Section 17 or otherwise, nor shall
      Buyer, or any of its Affiliates be liable to Seller, nor Seller or any of its
      Affiliates be liable to Buyer, for any matter related in any way to this
      Agreement until the total amount of Damages to either of such parties exceeds
      $100,000 (the “Threshold
      Amount”),
      and then only to the extent such Damages exceed the Threshold Amount.
      Furthermore, in no event shall: (i) Seller be liable to Buyer, or any of its
      Affiliates pursuant to this Section 17 or otherwise, for any matter related
      in
      any way to this Agreement in an amount in excess of $1,000,000, or (ii) Buyer,
      or any of its Affiliates, be liable to Seller, pursuant to this Section 17
      or
      otherwise, for any matter related in any way to this Agreement in an amount
      in
      excess of $1,000,000. 

    


    (c) Mitigation.
      In computing any Damages under this Section 17, the amount of any insurance
      proceeds (including title insurance proceeds), Tax benefits, and any indemnity,
      contribution or other similar payment from any third party to which any party
      is
      entitled with respect to any matter shall be deducted from such Damages. Such
      party shall also be required to take all necessary and desirable steps to
      mitigate any Damages for which any claims under this Section 17 may be brought
      upon and after becoming aware of any event that could reasonably be expected
      it
      to give rise to any such Damages, including taking all commercially reasonable
      efforts to collect any amounts available under any applicable insurance coverage
      or from any third party. 

    


    (d) Limited
      Remedies.
      Notwithstanding anything to the contrary in this Agreement, the remedies
      described in this Section 17 shall be the sole and exclusive remedies available
      to any party for any Damages a party may incur. Furthermore, anything in this
      Agreement to the contrary notwithstanding, in no event shall any party have
      any
      liability for any consequential, incidental, lost profits, punitive or exemplary
      damages, howsoever caused, arising out of, or relating to this Agreement, even
      if such party has been advised to the possibility of any such damages or
      losses.

    


    (e) Exceptions
      to Survival Period.
      Nothing contained in this Section 17 shall be deemed to limit any party’s right
      to enforce any of the other parties’ covenants under Sections 5-6 (Liabilities
      and Assumed Obligations), 13 (Confidentiality), 14 (Disclosure), 20
      (Allocation), 22 (Arbitration) and 23 (Covenant of Further
      Assurances).

    


    18. Successors
      and Assigns.
      

    


    This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns and nominees, as applicable.


    


    19. Non-Compete
      Agreements.
      

    


    In
      furtherance of the sale to Buyer of the Purchased Assets, Seller and David
      Murphy will enter into agreements (the "Non-Compete
      Agreements")
      whereby each of Seller and David Murphy agrees that for a period of five (5)
      years after the Closing Date it shall not, and David Murphy shall

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    not:
      (a) compete, directly or indirectly, with the Business as conducted as of the
      Closing Date; (b) communicate with or contact any of the customers of Buyer
      for
      the purpose of soliciting such customers to purchase any goods, products or
      services of the type being manufactured, offered or sold by the Business as
      of
      the Closing Date; (c) use or disclose to others any trade secrets or other
      confidential information relating to the Purchased Assets or Business. The
      Non-Compete Agreements shall be in the forms attached hereto as Schedule
      19.
      

    


    20. Allocation.
      

    


     The
      Buyer and the Seller shall use reasonable commercial efforts to agree on a
      reasonable and fair allocation of the Purchase Price among the Purchased Assets,
      which shall value Inventory, the Other Tangible Assets, the Assumed Capital
      Leases and the Purchased Contracts at their estimated fair market values as
      of
      the Closing Date, and shall allocate the remainder of the Purchase Price to
      the
      Intangible Assets. The Buyer and the Seller agree that each party shall report
      the transactions contemplated by this Agreement for income Tax purposes in
      accordance with the agreed-upon allocation of the Purchase Price, pursuant
      to
      Section 1060 of the Federal Internal Revenue Code and the regulations
      thereunder, and agree not to take, in any filing with or accompanying any Tax
      return reporting any part of the transaction undertaken herein, a position
      inconsistent with such allocations; provided, however, that if the Buyer and
      the
      Seller are unable in good faith to reach an agreement with respect to the
      allocation of the Purchase Price consistent with the foregoing, each such party
      may allocate the Purchase Price among the Purchased Assets as it deems
      appropriate but generally consistent with the foregoing.

    


    21. 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:

    


    (a) If
      to Seller, addressed to:

    


    David
      Murphy, CEO

    Host
      America Corporation

    2
      Broadway

    Hamden,
      CT 06518

    


    Copy
      to:  

     

    Steven
      A. Berman, Esq.

    Rogin,
      Nassau, Caplan, Lassman & Hirtle, LLC

    185
      Asylum Street

    22nd
      Floor

    Hartford,
      CT 06103

    


    
      
        
        

      

      
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    (b) If
      to the Buyer, addressed to:

    


    Host
      America Corporate Dining, Inc.

    147
      Ledge Drive

    Berlin,
      CT 06037

    Attn:
      Timothy Hayes

    


    Copy
      to: 

    


    Richard
      Hartley, Esq.

    Kane
      Hartley & Kane 

    972
      New London Tpke

    Glastonbury,
      CT 06033

    


     

    Any
      party may change the address or telecopier number to which notices hereunder
      are
      to be sent to it by giving written notice of such change as herein provided.
      Any
      notice given hereunder shall be deemed given on the date of hand delivery,
      transmission by telecopier, deposit with the U.S. Postal Service or delivery
      to
      a courier service, as appropriate.

    


    22. Arbitration
      of Disputes.
      It is acknowledged by the parties that a quick and efficient resolution of
      all
      claims, disputes and other matters in question under this Agreement after the
      Closing ("Disputes")
      is critical to the implementation of the terms of this Agreement. In order
      to
      effectuate such intent, the parties do hereby establish this Dispute procedure
      for use during the term of this Agreement. All Disputes shall be subject to
      this
      Section 22, it being the intention of the parties that all such Disputes be
      subject hereto regardless of any specific reference or absence of such reference
      to arbitrability herein. Prior to submission of any Dispute for resolution
      in
      accordance with this Section 22, the parties will negotiate in good faith to
      resolve such Dispute. Only if such parties cannot reach agreement within ten
      (10) days of written notice by any party to the other party that a Dispute
      exists, the Dispute will be submitted for resolution in accordance with the
      American Arbitration Association in Hartford, Connecticut. Upon such Dispute
      being submitted to the American Arbitration Association for resolution, the
      arbitrators shall assume exclusive jurisdiction over the Dispute and the
      decisions of such arbitrators shall be binding upon the parties hereto and
      may
      be entered in any court of competent jurisdiction.

    


    23. Covenant
      of Further Assurances.
      The parties hereto shall execute such other and further instruments and/or
      documents as shall be necessary to implement and carry out the intents and
      purposes of this Agreement. Without limiting the foregoing, in the event of
      any
      modification to the terms hereof as shall be mutually agreed upon by such
      parties, the parties shall execute and deliver an amendment to this
      Agreement.

    


    
      
        
        

      

      
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    24. Complete
      Agreement.
      

    


    This
      Agreement contains the complete agreement between the parties hereto with
      respect to the sale and purchase of the Purchased Assets and other transactions
      contemplated hereby and supersedes all prior agreements and understandings
      between the parties with respect to such sale and purchase and such other
      transactions. 

    


    25. Governing
      Law.
      

    


    This
      Agreement is being executed and delivered and is being closed in the State
      of
      Connecticut. This Agreement shall be construed and enforced under the applicable
      procedural, statutory and common law of the State of Connecticut. The parties
      hereto hereby consent and submit themselves to the jurisdiction of the Courts
      of
      the State of Connecticut with respect to any controversy arising under or
      relating to this Agreement. Service of process may be effected on any party
      hereto which is not a resident of the State of Connecticut by certified or
      registered United States Mail, postage prepaid, addressed to such party at
      the
      address described in Section 21 hereof.

    


    26. Counterparts.
      

    


    This
      Agreement may be executed in two (2) or more counterparts, each of which shall
      be deemed an original but all of which shall constitute but one instrument.
      

     

    27. Headings.

    


    The
      various section and subsection headings and titles are for convenience only
      and
      shall be subject to no independent substantive interpretation or
      meaning.

    


    28. Calculation
      of Time.
      Whenever in this Agreement a period of time is stated as a number of days,
      it
      shall be construed to mean calendar days; provided, however, that when any
      period of time so stated would end upon a Saturday, Sunday or legal holiday,
      such period shall be deemed to end upon the next day following which is not
      a
      Saturday, Sunday or legal holiday. For the purposes of this Agreement, a "legal
      holiday" is any day on which banks are legally closed for business in the State
      of Connecticut.

    


    


    
      
        
        

      

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

    


    


    BUYER

    


    


    By:
      /s/ TIMOTHY HAYES

    Name:
      Timothy Hayes

    Title:   
      President

    


    


    SELLER

    


    


    HOST
      AMERICA CORPORATION    

    


    


    


    By:
      /s/ DAVID MURPHY

    Name:
      David Murphy

    Title:   
      CEO


    


    



    
      
        
        

      

      
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    APPENDIX
      OF DEFINITIONS

    


    Affiliate:
      with reference to any Person, any director, officer or employee of such Person,
      any corporation, association, firm or other entity in which such Person has
      a
      direct or indirect controlling interest or by which such Person is directly
      or
      indirectly controlled or is under direct or indirect common control with such
      Person.

    


    Assumed
      Capital Leases:
      the meaning set forth in Section 1(f). 

    


    Assumed
      Obligations:
      the meaning set forth in Section 5.

    


    Business:
      the meaning set forth in the Recitals. 

    


    Buyer:
      the meaning set forth on Page 1 of this Agreement. 

    


    Closing:
      the meaning set forth in Section 3. 

    


    Closing
      Date:
      the meaning set forth in Section 3. 

    


    Damages:
      any and all losses, claims, assessments, demands, damages, liabilities,
      obligations, costs and expenses, including without limitation, reasonable fees
      and disbursements of counsel, and other out-of-pocket costs and expenses
      incurred in connection with investigating, preparing or defending or preventing
      any action, suit or proceeding, commenced or threatened, or any claim
      whatsoever.

    


    GAAP:
      United States generally accepted accounting principles and practices
      consistently applied from accounting period to accounting period.

    


    Indebtedness:
      (a) all items which in accordance with generally accepted accounting principles
      and practices would be included in determining total liabilities as shown on
      the
      liability side of a balance sheet of such Person as at the date of which
      indebtedness is to be determined, (b) all indebtedness secured by any mortgage,
      pledge, lease, lien or conditional sale or other title retention agreement
      existing on any property or asset owned or held by such Person subject thereto,
      whether or not such indebtedness shall have been assumed, and (c) all
      indebtedness of others which such Person has directly or indirectly guaranteed,
      endorsed, discounted or agreed (contingently or otherwise) to purchase or
      repurchase or otherwise acquire, or in respect of which such Person has agreed
      to supply or advance funds (whether by way of loan, stock purchase, capital
      contribution or otherwise) or otherwise to become liable directly or indirectly
      with respect thereto.

    


    Intangible
      Assets:
      the meaning set forth in Section 1(e). 

    


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

    


    
      
        
        

      

      
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    Non-Compete
      Agreements:
      the meaning set forth in Section 19.

    


    Other
      Tangible Assets: the
      meaning set forth in Section 1(c). 

    


    Person:
      any natural person or legal entity.

    


    Purchase
      Price:
      the meaning set forth in Section 2(a). 

    


    Purchased
      Assets:
      the meaning specified in Section 1. 

    


    Purchased
      Contracts:
      the meaning set forth in Section 1(d). 

    


    Seller:
      the meaning set forth on Page 1.

    


    Taxes:
      federal, state, local, foreign and provincial income, capital gains, property
      transfer, payroll, withholding, excise, sales, use, use and occupancy,
      mercantile, real estate, personal property, value added, capital stock,
      franchise, controlling interest transfer or other taxes, easements or charges
      and estimated taxes relating thereto, and any and all interest, penalties and
      additions to tax on any of the foregoing.

    


    



    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF SCHEDULES

    


    


    Schedule
       

    Reference             
      Section  Description

    


    1(c)                
      1(c)           
      Other
      Tangible Assets 

    1(f)                 
      1(f)            
      Assumed
      Capital Leases 

    2(b)(i) 2(b)(i)  
      Purchased
      Contracts

    3(a)(2)            
      3(a)(2)      
      Form
      of Assumption Agreement 

    3(f)                 
      3(f)           
      Adjustment
      to Purchase Price 

    5                      5              
      Assumed
      Obligations 

    10(d)               10(d)        
      Permits
      

    19                   
      19            
      Form
      of Non-Compete Agreements 

    


     

     

     

     

     

    21