Document:

REGISTRATION RIGHTS AGREEMENT

     REGISTRATION  RIGHTS  AGREEMENT  (this  "Agreement"),  dated  as  of
September  26,  2000,  between  Creative  Host  Services,  Inc.,  a  California
corporation  (the  "Company"),  and  GCA  Strategic Investment Fund Limited (the
"Fund").

     1.     INTRODUCTION.

     1.1     SECURITIES  PURCHASE AGREEMENT.  The Company and the Fund has today
executed  that  certain  Securities Purchase Agreement (the "Securities Purchase
Agreement"),  pursuant  to  which the Company has agreed, among other things, to
issue  up  to  an  aggregate  of  Two  Million  Five  Hundred  Thousand  Dollars
($2,500,000.00)  (U.S.)  principal  amount  of  7% Convertible Debentures of the
Company (the "Debentures") to the Fund or its successors, assigns or transferees
(collectively,  the  "Holders").  The  Debentures  are  convertible  into  an
indeterminable  number  of  shares  (the  "Debenture  Conversion Shares") of the
Company's  common stock, no par value per share (the "Common Stock") pursuant to
the  terms  of  the  Debentures.  In  addition,  pursuant  to  the  terms of the
Securities  Purchase  Agreement  and  the transactions contemplated thereby, the
Company  has  agreed  to  issue  to  the  Fund  Common  Stock  Purchase Warrants
exercisable  for  up  to  an aggregate of 125,000 shares of the Company's Common
Stock  (the  "Warrant  Shares").  The  number of Debenture Conversion Shares and
Warrant  Shares  is  subject  to adjustment upon the occurrence of stock splits,
recapitalizations  and  similar  events  occurring  after  the  date  hereof.

     1.2     DEFINITION  OF SECURITIES.  The Debenture Conversion Shares and the
Warrant  Shares  are  herein  referred  to  as  the  "Securities".

     1.3     NATIONAL  MARKET  REPRESENTATION.  The  Company  represents  and
warrants  that  the  Company's Common Stock is currently eligible for trading on
Nasdaq Small Cap Market under the symbol "CHST."  Certain capitalized terms used
in  this Agreement are defined in Section 3 hereof; references to sections shall
be  to  sections  of  this  Agreement.

     2.     REGISTRATION  UNDER  SECURITIES  ACT,  ETC.

     2.1     MANDATORY  REGISTRATION.

     (A)     REGISTRATION  OF  REGISTRABLE SECURITIES. The Company shall prepare
and  file  on  or  before sixty (60) days following the date hereof (the "Filing
Date"),  a  registration  statement  (the "Registration Statement") covering the
resale of the Registrable Securities.  The Company shall use its best efforts to
cause  the  Registration Statement to be declared effective by the Commission on
the  earlier  of  (i)  45  days  following  the  Filing Date, (ii) ten (10) days
following  the receipt of a "No Review" or similar letter from the Commission or
(iii) the first day following the day the Commission determines the Registration
Statement eligible to be declared effective (the "Required Effectiveness Date").
Nothing  contained  herein  shall  be  deemed to limit the number of Registrable
Securities  to  be registered by the Company hereunder.  As a result, should the
Registration  Statement  not  relate  to  the  maximum  number  of  Registrable
Securities  acquired  by (or potentially acquirable by) the holders thereof upon
conversion  of the Debentures, or exercise of the Common Stock Purchase Warrants
described  in  Section 1 above, the Company shall be required to promptly file a
separate  registration  statement  (utilizing  Rule  462  promulgated  under the
Exchange  Act,  where  applicable) relating to such Registrable Securities which
then  remain unregistered.  The provisions of this Agreement shall relate to any
such  Registration  Statement and any such separate registration statement as if
it  were  an  amendment  to  the  Registration  Statement.

     (B)     REGISTRATION  STATEMENT FORM.  Registrations under this Section 2.1
shall  be  on  Form  S-3  or  such  other  appropriate  registration form of the
Commission  as  shall  permit  the disposition of such Registrable Securities in
accordance  with  the intended method or methods of disposition specified by the
Fund;  provided,  however, such intended method of disposition shall not include
an  underwritten  offering  of  the  Registrable  Securities.

     (C)     EXPENSES.  The  Company  will  pay  all  Registration  Expenses  in
connection  with  any  registration  required  by  this  Section  2.1.

     (D)     EFFECTIVE  REGISTRATION  STATEMENT.  A  registration  requested
pursuant  to  this  Section  2.1  shall  not be deemed to have been effected (i)
unless a registration statement with respect thereto has become effective within
the  time  period  specified herein, provided that a registration which does not
become  effective  after the Company filed a registration statement with respect
thereto  solely by reason of the refusal to proceed of any holder of Registrable
Securities  (other than a refusal to proceed based upon the advice of counsel in
the form of a letter signed by such counsel and provided to the Company relating
to  a  disclosure  matter unrelated to such holder) shall be deemed to have been
effected  by  the Company unless the holders of the Registrable Securities shall
have  elected  to  pay  all  Registration  Expenses  in  connection  with  such
registration,  (ii) if, after it has become effective, such registration becomes
subject  to  any  stop  order,  injunction  or  other  order  or  extraordinary
requirement  of  the  Commission  or  other governmental agency or court for any
reason  or  (iii) if, after it has become effective, such registration ceases to
be  effective  for  more  than  an  aggregate  of  twenty  (20)  days.

     (E)     PLAN  OF  DISTRIBUTION.  The  Company  hereby  agrees  that  the
Registration  Statement  shall include a plan of distribution section reasonably
acceptable  to  the Fund and substantially in the form annexed hereto; provided,
however,  such  plan of distribution section shall be modified by the Company so
as to not provide for the disposition of the Registrable Securities on the basis
of  an  underwritten  offering.

     2.2     INCIDENTAL  REGISTRATION.

      (A)     RIGHT TO INCLUDE REGISTRABLE SECURITIES.  If at any time after the
date  hereof  but  before  the third anniversary of the date hereof, the Company
proposes  to register any of its securities under the Securities Act (other than
by  a registration in connection with an acquisition in a manner which would not
permit  registration  of  Registrable Securities for sale to the public, on Form
S-8,  or  any successor form thereto, on Form S-4, or any successor form thereto
and  other  than  pursuant  to  Section  2.1),  on an underwritten basis (either
best-efforts  or  firm-commitment),  then,  the Company will each such time give
prompt  written  notice  to  all  Holders  of its intention to do so and of such
Holders  rights  under  this  Section 2.2.  Upon the written request of any such
Holder  made within twenty (20) days after the receipt of any such notice (which
request  shall  specify the Registrable Securities intended to be disposed of by
such  Holder  an  and  the  intended method of disposition thereof), the Company
will,  subject  to  the terms of this Agreement, use its commercially reasonable
best  efforts  to  effect  the  registration  under  the  Securities  Act of the
Registrable  Securities,  to  the extent requisite to permit the disposition (in
accordance  with  the intended methods thereof as aforesaid) of such Registrable
Securities  so  to be registered, by inclusion of such Registrable Securities in
the  registration  statement  which  covers  the  securities  which  the Company
proposes  to register, provided that if, at any time after written notice of its
intention  to  register  any  securities  and prior to the effective date of the
registration  statement  filed in connection with such registration, the Company
shall  determine  for any reason either not to register or to delay registration
of  such  securities,  the  Company may, at its election, give written notice of
such  determination  to  each  Holder  and,  thereupon,  (i)  in  the  case of a
determination  not to register, shall be relieved of this obligation to register
any  Registrable  Securities  in connection with such registration (but not from
its  obligation  to  pay  the  Registration  Expenses  in connection therewith),
without  prejudice,  however,  to  the  rights  of  any  holder  or  holders  of
Registrable  Securities  entitled  to do so to request that such registration be
effected  as  a  registration  under  Section  2.1,  and  (ii)  in the case of a
determination  to delay registering, shall be permitted to delay registering any
Registrable  Securities,  for  the  same period as the delay in registering such
other securities.  No registration effected under this Section 2.2 shall relieve
the  Company  of  its  obligation  to effect any registration upon request under
Section  2.1,  nor  shall any such registration hereunder be deemed to have been
effected  pursuant  to  Section  2.1.  The  Company  will  pay  all Registration
Expenses  in  connection  with  each  registration  of  Registrable  Securities
requested  pursuant  to this Section 2.2.  The right provided the Holders of the
Registrable  Securities  pursuant  to this Section shall be exercisable at their
sole discretion and will in no way limit any of the Company's obligations to pay
the  Securities  according  to  their  terms.

     (B)     PRIORITY  IN INCIDENTAL REGISTRATIONS.  If the managing underwriter
of  the  underwritten offering contemplated by this Section 2.2 shall inform the
Company  and  holders of the Registrable Securities requesting such registration
by  letter  of its belief that the number of securities requested to be included
in such registration exceeds the number which can be sold in such offering, then
the Company will include in such registration, to the extent of the number which
the  Company  is  so  advised can be sold in such offering, (i) first securities
proposed  by  the  Company  to  be  sold  for  its own account, and (iii) second
Registrable  Securities  and  securities  of  other  selling  security  holders
requested  to  be  included  in  such  registration pro rata on the basis of the
number  of  shares of such securities so proposed to be sold and so requested to
be included; provided, however, the holders of Registrable Securities shall have
priority  to  all  shares sought to be included by officers and directors of the
Company  as well as holders of ten percent (10%) or more of the Company's Common
Stock.

     2.3     REGISTRATION  PROCEDURES.  If  and whenever the Company is required
to  effect  the  registration of any Registrable Securities under the Securities
Act  as  provided  in Section 2.1 and, as applicable, 2.2, the Company shall, as
expeditiously  as  possible:

     (i)     prepare  and file with the Commission the Registration Statement or
amendments  thereto,  to  effect  such  registration  (including  such  audited
financial  statements  as may be required by the Securities Act or the rules and
regulations  promulgated  thereunder)  and  thereafter  use  its  commercially
reasonable  best  efforts  to  cause  such registration statement to be declared
effective  by  the Commission, as soon as practicable, but in any event no later
than the Required Effectiveness Date (with respect to a registration pursuant to
Section  2.1); provided, however, that before filing such registration statement
or  any  amendments thereto, the Company will furnish to the counsel selected by
the  holders  of  Registrable  Securities  which  are  to  be  included  in such
registration,  copies  of  all  such  documents  proposed  to  be  filed;

     (ii)     with  respect  to  any  registration statement pursuant to Section
2.1,  prepare  and  file  with the Commission such amendments and supplements to
such  registration  statement and the prospectus used in connection therewith as
may  be  necessary  to  keep such registration statement effective and to comply
with the provisions of the Securities Act with respect to the disposition of all
Registrable  Securities covered by such registration statement until the earlier
to occur of five (5) years after the date of this Agreement(subject to the right
of  the  Company  to  suspend  the  effectiveness  thereof  for not more than 10
consecutive  days  or  an aggregate of 30 days in such five (5) years period) or
such  time  as  all of the securities which are the subject of such registration
statement  cease  to  be  Registrable Securities (such period, in each case, the
"Registration  Maintenance  Period");

     (iii)     furnish  to each seller of Registrable Securities covered by such
registration  statement  such  number  of  conformed copies of such registration
statement  and  of  each  such  amendment  and  supplement thereto (in each case
including  all  exhibits),  such number of copies of the prospectus contained in
such  registration  statement  (including  each  preliminary  prospectus and any
summary  prospectus)  and  any  other  prospectus filed under Rule 424 under the
Securities  Act,  in conformity with the requirements of the Securities Act, and
such  other  documents,  as  such seller and underwriter, if any, may reasonably
request  in  order  to  facilitate  the  public sale or other disposition of the
Registrable  Securities  owned  by  such  seller;

     (iv)     use  its  commercially  reasonable  best  efforts  to  register or
qualify  all  Registrable  Securities  and  other  securities  covered  by  such
registration  statement under such other securities laws or blue sky laws as any
seller  thereof  shall  reasonably  request,  to  keep  such  registrations  or
qualifications  in  effect for so long as such registration statement remains in
effect,  and  take  any other action which may be reasonably necessary to enable
such  seller  to  consummate  the  disposition  in  such  jurisdictions  of  the
securities  owned by such seller, except that the Company shall not for any such
purpose be required to qualify generally to do business as a foreign corporation
in  any  jurisdiction  wherein  it  would  not  but for the requirements of this
subdivision  (iv)  be  obligated  to  be  so  qualified or to consent to general
service  of  process  in  any  such  jurisdiction;

(v)     use  its  commercially  reasonable best efforts to cause all Registrable
Securities  covered  by  such  registration  statement  to be registered with or
approved  by such other governmental agencies or authorities as may be necessary
to  enable  the  seller or sellers thereof to consummate the disposition of such
Registrable  Securities;

     (vi)     furnish  to  each  seller  of  Registrable  Securities  a  signed
counterpart,  addressed  to  such  seller,  and  the  underwriters,  if any, of:

     (A)     an  opinion  of counsel for the Company required by the Commission,
dated  the  effective  date  of  such  registration  statement  (or,  if  such
registration includes an underwritten public offering, an opinion dated the date
of  the  closing  under  the  underwriting  agreement),  and

     (B)     a  "comfort"  letter  (or, in the case of any Person which does not
satisfy  the conditions for receipt of a "comfort" letter specified in Statement
on  Auditing  Standards  No.  72, an "agreed upon procedures" letter), dated the
effective  date  of  such  registration  statement  (and,  if  such registration
includes  an  underwritten public offering, a letter of like kind dated the date
of  the  closing  under  the  underwriting agreement), signed by the independent
public accountants who have certified the Company's financial statement included
in  such  registration  statement,  covering substantially the same matters with
respect  to  such  registration  statement (and the prospectus included therein)
and,  in  the case of the accountants' letter, with respect to events subsequent
to the date of such financial statements, as are customarily covered in opinions
of issuer's counsel and in accountants' letters delivered to the underwriters in
underwritten  public  offerings  of  securities (with, in the case of an "agreed
upon  procedures"  letter,  such  modifications  or deletions as may be required
under  Statement  on  Auditing  Standards  No.  35)  and,  in  the  case  of the
accountants' letter, such other financial matters, and, in the case of the legal
opinion,  such other legal matters, as such seller (or the underwriters, if any)
may  reasonably  request;

     (vii)     notify  the  Sellers' Representative and its counsel promptly and
confirm such advice in writing promptly after the Company has knowledge thereof:

     (A)     when  the  Registration Statement, the prospectus or any prospectus
supplement  related  thereto  or  post-effective  amendment  to the Registration
Statement has been filed, and, with respect to the Registration Statement or any
post-effective  amendment  thereto,  when  the  same  has  become  effective;

     (B)     of  any  request by the Commission for amendments or supplements to
the  Registration  Statement  or  the  prospectus or for additional information;

     (C)     of  the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
by  any  Person  for  that  purpose;  and

     (D)     of  the  receipt by the Company of any notification with respect to
the suspension of the qualification of any Registrable Securities for sale under
the  securities or blue sky laws of any jurisdiction or the initiation or threat
of  any  proceeding  for  such  purpose;

     (viii)     notify  each  seller  of  Registrable Securities covered by such
registration  statement,  at  any  time  when  a  prospectus relating thereto is
required  to be delivered under the Securities Act, upon discovery that, or upon
the happening of any event as a result of which, the prospectus included in such
registration  statement,  as  then  in effect, includes an untrue statement of a
material fact or omits to state any material facts required to be stated therein
or  necessary  to make the statements therein not misleading in the light of the
circumstances  then  existing,  and  at  the request of any such seller promptly
prepare and furnish to such seller a reasonable number of copies of a supplement
to or an amendment of such prospectus as may be necessary so that, as thereafter
delivered  to  the  purchasers  of  such  securities,  such prospectus shall not
include  an untrue statement of a material fact or omit to state a material fact
required  to  be  stated therein or necessary to make the statements therein not
misleading  in  the  light  of  the  circumstances  then  existing;

     (ix)     use  its  best  efforts  to  obtain  the  withdrawal  of any order
suspending  the  effectiveness  of  the  Registration  Statement at the earliest
possible  moment;

     (x)     otherwise  use  its  commercially reasonable best efforts to comply
with  all applicable rules and regulations of the Commission, and make available
to  its  security  holders,  as  soon  as  reasonably  practicable,  an earnings
statement  covering  the  period  of  at  least twelve months, but not more than
eighteen  months,  beginning  with  the  first  full  calendar  month  after the
effective  date  of  such registration statement, which earnings statement shall
satisfy  the  provisions  of  Section  11(a)  of the Securities Act and Rule 158
thereunder;  and

     (xi)     use  its  commercially  reasonable  best  efforts  to  list  all
Registrable  Securities covered by such registration statement on any securities
exchange  on  which  any  of  the  Registrable  Securities  are  then  listed.

     The  Company  may require each seller of Registrable Securities as to which
any  registration  is  being  effected  to  furnish the Company such information
regarding such seller and the distribution of such securities as the Company may
from  time  to  time  reasonably  request  in  writing.

     The  Company  will  not file any registration statement pursuant to Section
2.1, or amendment thereto or any prospectus or any supplement thereto (including
such  documents  incorporated  by  reference  and proposed to be filed after the
initial  filing  of  the  Registration  Statement  to  which  the  Sellers'
Representative  shall reasonably object, provided that the Company may file such
documents  in  a  form  required  by  law  or  upon  the  advice of its counsel.

     The  Company  represents  and  warrants  to  each  holder  of  Registrable
Securities  that  it  has  obtained  all  necessary  waivers,  consents  and
authorizations  necessary  to  execute  this  Agreement  and  consummate  the
transactions  contemplated  hereby  other  than  such  waivers,  consents and/or
authorizations  specifically  contemplated by the Securities Purchase Agreement.

     The  Fund  agrees  that, upon receipt of any notice from the Company of the
occurrence  of  any  event  of  the kind described in subdivision (viii) of this
Section  2.3,  the  Fund  will  forthwith  discontinue the Fund's disposition of
Registrable  Securities  pursuant to the Registration Statement relating to such
Registrable  Securities  until  the  Fund's  receipt  of  the  copies  of  the
supplemented  or  amended  prospectus contemplated by subdivision (viii) of this
Section  2.3 and, if so directed by the Company, will deliver to the Company (at
the Company's expense) all copies, other than permanent file copies, then in the
Fund's  possession  of  the  prospectus  relating to such Registrable Securities
current  at  the  time  of  receipt  of  such  notice.

     2.4     UNDERWRITTEN  OFFERINGS.

     (A)     INCIDENTAL  UNDERWRITTEN  OFFERINGS.  If  the  Company  at any time
proposes  to  register  any  of  its  securities  under  the  Securities  Act as
contemplated  by  Section  2.2  and  such securities are to be distributed by or
through  one  or more underwriters, the Company will, if requested by any holder
of  Registrable  Securities  as  provided  in  Section  2.2  and  subject to the
provisions  of  Section  2.2(a), use its commercially reasonable best efforts to
arrange  for  such  underwriters to include all the Registrable Securities to be
offered  and  sold by such holder among the securities to be distributed by such
underwriters.

     (B)     HOLDBACK AGREEMENTS.  Subject to such other reasonable requirements
as  may  be imposed by the underwriter as a condition of inclusion of the Fund's
Registrable  Securities  in  the  registration  statement,  the  Fund  agrees by
acquisition  of  Registrable  Securities,  if  so  required  by  the  managing
underwriter, not to sell, make any short sale of, loan, grant any option for the
purchase  of, effect any public sale or distribution of or otherwise dispose of,
except  as  part of such underwritten registration, any equity securities of the
Company,  during  such  reasonable  period of time requested by the underwriter;
provided  however, such period shall not exceed the 120 day period commencing 30
days  prior to the commencement of such underwritten offering and ending 90 days
following  the  completion  of  such  underwritten  offering.

     (C)     PARTICIPATION  IN UNDERWRITTEN OFFERINGS.  No holder of Registrable
Securities may participate in any underwritten offering under Section 2.2 unless
such  holder  of  Registrable  Securities  (i)  agrees  to  sell  such  Person's
securities  on  the  basis  provided  in any underwriting arrangements approved,
subject  to  the  terms  and  conditions hereof, by the holders of a majority of
Registrable  Securities  to  be  included in such underwritten offering and (ii)
completes  and executes all questionnaires, indemnities, underwriting agreements
and  other documents (other than powers of attorney) required under the terms of
such  underwriting arrangements.  Notwithstanding the foregoing, no underwriting
agreement  (or  other  agreement in connection with such offering) shall require
any holder of Registrable Securities to make an representations or warranties to
or  agreements  with  the Company or the underwriters other than representations
and warranties contained in a writing furnished by such holder expressly for use
in  the  related  registration  statement  or  representations,  warranties  or
agreements  regarding such holder, such holder's Registrable Securities and such
holder's  intended  method of distribution and any other representation required
by  law.

     2.5     PREPARATION;  REASONABLE  INVESTIGATION.  In  connection  with  the
preparation  and  filing of each registration statement under the Securities Act
pursuant  to  this  Agreement,  the Company will give the holders of Registrable
Securities  registered  under  such registration statement, and their respective
counsel  and  accountants,  the opportunity to participate in the preparation of
such  registration statement, each prospectus included therein or filed with the
Commission, and each amendment thereof or supplement thereto, and will give each
of  them  such access to its books and records and such opportunities to discuss
the  business  of  the  Company  with  its  officers  and the independent public
accountants  who  have certified its financial statements as shall be necessary,
in  the  reasonable  opinion  of such holders' and such underwriters' respective
counsel,  to  conduct  a  reasonable  investigation  within  the  meaning of the
Securities  Act.

     2.6     REGISTRATION  DEFAULT  FEE.  If  the  Registration  Statement
contemplated  in  Section  2.1  is  (x)  not  declared effective by the Required
Effectiveness  Date  or  (y)  such  effectiveness  is  not  maintained  for  the
Registration  Maintenance  Period,  then  the  Company shall pay to the Fund the
Default  Fee  specified  in  Section  10.4 of the Securities Purchase Agreement.

     2.7     INDEMNIFICATION.

     (A)     INDEMNIFICATION  BY  THE COMPANY.  In the event of any registration
of any securities of the Company under the Securities Act, the Company will, and
hereby  does  agree to indemnify and hold harmless the holder of any Registrable
Securities  covered  by such registration statement, its directors and officers,
each  other Person who participates as an underwriter in the offering or sale of
such  securities  and each other Person, if any, who controls such holder or any
such  underwriter  within  the meaning of the Securities Act against any losses,
claims,  damages  or  liabilities, joint or several, to which such holder or any
such director or officer or underwriter or controlling person may become subject
under  the  Securities Act or otherwise, insofar as such losses, claims, damages
or  liabilities  (or actions or proceedings, whether commenced or threatened, in
respect  thereof) arise out of or are based upon any untrue statement or alleged
untrue  statement  of  any material fact contained in any registration statement
under  which  such  securities  were  registered  under  the Securities Act, any
preliminary  prospectus,  final  prospectus  or  summary  prospectus  contained
therein,  or  any  amendment  or  supplement thereto, or any omission or alleged
omission  to  state  therein  a  material  fact required to be stated therein or
necessary  to  make  the statements therein not misleading, and the Company will
reimburse  such  holder  and  each  such  director,  officer,  underwriter  and
controlling  person  for  any legal or any other expenses reasonably incurred by
them  in  connection  with  investigating  or  defending  any  such loss, claim,
liability,  action  or proceeding, provided that the Company shall not be liable
in any such case to the extent that any such loss, claim, damage, liability, (or
action  or  proceeding  in respect thereof) or expense arises out of or is based
upon  an  untrue  statement  or  alleged untrue statement or omission or alleged
omission  made  in such registration statement, any such preliminary prospectus,
final  prospectus,  summary prospectus, amendment or supplement in reliance upon
and  in  conformity  with  written  information furnished to the Company by such
holder or underwriter stating that it is for use in the preparation thereof and,
provided  further  that  the  Company  shall  not  be  liable  to any Person who
participates as an underwriter in the offering or sale of Registrable Securities
or to any other Person, if any, who controls such underwriter within the meaning
of the Securities Act, in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense arises
out  of such Person's failure to send or give a copy of the final prospectus, as
the  same  may  be then supplemented or amended, within the time required by the
Securities  Act  to the Person asserting the existence of an untrue statement or
alleged  untrue  statement  or  omission  or alleged omission at or prior to the
written  confirmation  of  the  sale of Registrable Securities to such Person if
such  statement  or  omission  was  corrected  in  such  final  prospectus or an
amendment  or supplement thereto.  Such indemnity shall remain in full force and
effect  regardless  of  any investigation made by or on behalf of such holder or
any  such director, officer, underwriter or controlling person and shall survive
the  transfer  of  such  securities  by  such  holder.

     (B)     INDEMNIFICATION  BY  THE  SELLERS.  The  Company  may require, as a
condition  to including any Registrable Securities in any registration statement
filed  pursuant  to  this  Agreement,  that  the  Company shall have received an
undertaking  satisfactory  to it from the prospective seller of such Registrable
Securities,  to  indemnify and hold harmless (in the same manner and to the same
extent  as  set  forth in subdivision (a) of this Section 2.7) the Company, each
director  of  the Company, each officer of the Company and each other Person, if
any,  who  controls  the  Company within the meaning of the Securities Act, with
respect to any statement or alleged statement in or omission or alleged omission
from  such  registration statement, any preliminary prospectus, final prospectus
or summary prospectus contained therein, or any amendment or supplement thereto,
if  such statement or alleged statement or omission or alleged omission was made
in  reliance  upon  and  in conformity with written information furnished to the
Company  through an instrument duly executed by such seller specifically stating
that  it  is  for  use  in  the  preparation  of  such  registration  statement,
preliminary  prospectus,  final  prospectus,  summary  prospectus,  amendment or
supplement.  Any  such  indemnity  shall  remain  in  full  force  and  effect,
regardless  of any investigation made by or on behalf of the Company or any such
director,  officer  or controlling person and shall survive the transfer of such
securities  by  such  seller.

     (C)     NOTICES  OF  CLAIMS, ETC.  Promptly after receipt by an indemnified
party  of  notice  of  the  commencement of any action or proceeding involving a
claim  referred  to  in  the  preceding  subdivisions  of this Section 2.7, such
indemnified  party  will, if a claim in respect thereof is to be made against an
indemnifying  party,  give  written  notice to the latter of the commencement of
such  action,  provided that the failure of any indemnified party to give notice
as  provided  herein shall not relieve the indemnifying party of its obligations
under  the preceding subdivisions of this Section 2.7, except to the extent that
the  indemnifying  party  is actually prejudiced by such failure to give notice.
In  case any such action is brought against an indemnified party, unless in such
indemnified  party's  reasonable  judgment  a  conflict of interest between such
indemnified  and  indemnifying  parties  may exist in respect of such claim, the
indemnifying party shall be entitled to participate in and to assume the defense
thereof,  jointly  with  any other indemnifying party similarly notified, to the
extent  that  the  indemnifying  party  may  wish,  with  counsel  reasonably
satisfactory  to  such indemnified party, and after notice from the indemnifying
party  to  such  indemnified  party  of  its  election  so to assume the defense
thereof,  the  indemnifying  party shall not be liable to such indemnified party
for  any  legal  or  other  expenses  subsequently  incurred  by  the  latter in
connection  with  the  defense  thereof  other  than  reasonable  costs  of
investigation.  No  indemnifying  party  shall,  without  the  consent  of  the
indemnified party, consent to entry of any judgment or enter into any settlement
of  any  such action which does not include as an unconditional term thereof the
giving  by the claimant or plaintiff to such indemnified party of a release from
all liability, or a covenant not to sue, in respect to such claim or litigation.
No  indemnified  party  shall consent to entry of any judgment or enter into any
settlement  of  any  such  action  the  defense  of which has been assumed by an
indemnifying  party  without  the  consent  of  such  indemnifying  party.

     (D)     OTHER  INDEMNIFICATION.  Indemnification  similar to that specified
in  the  preceding  subdivisions  of  this  Section  2.7  (with  appropriate
modifications)  shall  be  given  by  the Company and each seller of Registrable
Securities  (but  only  if  and  to the extent required pursuant to the terms of
Section 2.7(b)) with respect to any required registration or other qualification
of  securities  under any Federal or state law or regulation of any governmental
authority,  other  than  the  Securities  Act.

     (E)     INDEMNIFICATION  PAYMENTS.  The  indemnification  required  by this
Section  2.7 shall be made by periodic payments of the amount thereof during the
course  of  the  investigation  or  defense,  as  and when bills are received or
expense,  loss,  damage  or  liability  is  incurred.

     (F)     CONTRIBUTION.  If the indemnification provided for in the preceding
subdivision  of  this  Section  2.7  is  unavailable  to an indemnified party in
respect  of  any  expense, loss, claim, damage or liability referred to therein,
then  each  indemnifying  party, in lieu of indemnifying such indemnified party,
shall  contribute  to  the amount paid or payable by such indemnified party as a
result  of such expense, loss, claim, damage or liability (i) in such proportion
as  is  appropriate  to reflect the relative benefits received by the Company on
the  one  hand  and  the holder or underwriter, as the case may be, on the other
from  the  distribution  of the Registrable Securities or (ii) if the allocation
provided  by  clause  (i)  above  is  not  permitted  by applicable law, in such
proportion  as is appropriate to reflect not only the relative benefits referred
to  in  clause  (i)  above but also the relative fault of the Company on the one
hand  and  of  the  holder  or  underwriter, as the case may be, on the other in
connection  with  the  statements  or  omissions which resulted in such expense,
loss,  damage  or  liability,  as  well  as  any  other  relevant  equitable
considerations.  The  relative  benefits received by the Company on the one hand
and  the  holder  or underwriter, as the case may be, on the other in connection
with the distribution of the Registrable Securities shall be deemed to be in the
same  proportion  as  the  total  net  proceeds received by the Company from the
initial sale of the Registrable Securities by the Company to the purchasers bear
to  the  gain,  if  any,  realized  by all selling holders participating in such
offering  or  the  underwriting  discounts  and  commissions  received  by  the
underwriter,  as  the case may be.  The relative fault of the Company on the one
hand and of the holder or underwriter, as the case may be, on the other shall be
determined  by  reference  to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission to state a material fact relates
to  information supplied by the Company, by the holder or by the underwriter and
the  parties'  relative intent, knowledge, access to information supplied by the
Company,  by  the holder or by the underwriter and the parties' relative intent,
knowledge,  access  to  information  and  opportunity to correct or prevent such
statement  or omission, provided that the foregoing contribution agreement shall
not  inure  to  the benefit of any indemnified party if indemnification would be
unavailable  to  such indemnified party by reason of the provisions contained in
the first sentence of subdivision (a) of this Section 2.7, and in no event shall
the  obligation  of  any indemnifying party to contribute under this subdivision
(f)  exceed the amount that such indemnifying party would have been obligated to
pay  by  way  of  indemnification  if  the  indemnification  provided  for under
subdivisions (b) of this Section 2.7 had been available under the circumstances.

     The  Company  and the holders of Registrable Securities agree that it would
not  be just and equitable if contribution pursuant to this subdivision (f) were
determined by pro rata allocation (even if the holders and any underwriters were
treated  as  one  entity  for such purpose) or by any other method of allocation
that  does  not  take account of the equitable considerations referred to in the
immediately  preceding  paragraph.  The amount paid or payable by an indemnified
party  as a result of the losses, claims, damages and liabilities referred to in
the  immediately  preceding paragraph shall be deemed to include, subject to the
limitations  set  forth  in  the  preceding sentence and subdivision (c) of this
Section 2.7, any legal or other expenses reasonably incurred by such indemnified
party  in  connection  with investigating or defending any such action or claim.

     Notwithstanding  the  provisions  of  this  subdivision  (f),  no holder of
Registrable Securities or underwriter shall be required to contribute any amount
in  excess  of  the  amount by which (i) in the case of any such holder, the net
proceeds received by such holder from the sale of Registrable Securities or (ii)
in  the  case  of  an  underwriter,  the  total  price  at which the Registrable
Securities  purchased  by  it  and distributed to the public were offered to the
public  exceeds, in any such case, the amount of any damages that such holder or
underwriter  has  otherwise  been  required  to  pay by reason of such untrue or
allege  untrue  statement  or  omission.  No  Person  guilty  of  fraudulent
misrepresentation  (within  the  meaning of Section 11(f) of the Securities Act)
shall  be  entitled  to  contribution from any person who was not guilty of such
fraudulent  misrepresentation.

     3.     DEFINITIONS.  As used herein, unless the context otherwise requires,
the  following  terms  have  the  following  respective  meanings:

     "Agreement":  As  defined  in  Section  1.

     "Commission":  The  Securities and Exchange Commission or any other Federal
agency  at  the  time  administering  the  Securities  Act.

     "Common  Stock":  As  defined  in  Section  1.

     "Company":  As  defined  in  the  introductory paragraph of this Agreement.

     "Conversion  Shares":  As  defined  in  Section  1.

     "Debentures":  As defined in Section 1, such term to include any securities
issued  in  substitution  of  or  in  addition  to  such  Debentures.

     "Exchange  Act":  The  Securities Exchange Act of 1934, as amended, and the
rules  and  regulations  of  the  Commission  thereunder.

     "Person":  A corporation, association, partnership, organization, business,
individual,  governmental  or  political  subdivision  thereof or a governmental
agency.

     "Registrable  Securities":  The  Securities  and  any  securities issued or
issuable with respect to such Securities by way of stock dividend or stock split
or  in  connection  with  a  combination  of  shares,  recapitalization, merger,
consolidation or other reorganization or otherwise.  Once issued such securities
shall  cease to be Registrable Securities when (a) a registration statement with
respect  to  the  sale  of such securities shall have become effective under the
Securities  Act  and  such  securities shall have been disposed of in accordance
with  such  registration  statement, (b) they shall have been distributed to the
public  pursuant  to  Rule 144 (or any successor provision) under the Securities
Act,  (c)  they shall have been otherwise transferred, new certificates for them
not  bearing  a legend restricting further transfer shall have been delivered by
the Company and subsequent disposition of them shall not require registration or
qualification  of them under the Securities Act or any similar state law then in
force,  (d)  they  shall have ceased to be outstanding, (e) on the expiration of
the  applicable  Registration  Maintenance  Period  or  (f)  any and all legends
restricting transfer thereof have been removed in accordance with the provisions
of  Rule  144(k)  (or  any  successor  provision)  under  the  Securities  Act.

     "Registration  Expenses":  All  expenses  incident  to  the  Company's
performance of or compliance with this Agreement, including, without limitation,
all  registration,  filing  and  NASD  fees, all stock exchange and OTC Bulletin
Board  or  other  NASD  or stock exchange listing fees, all fees and expenses of
complying with securities or blue sky laws, all word processing, duplicating and
printing  expenses,  messenger and delivery expenses, the fees and disbursements
of  counsel for the Company and of its independent public accountants, including
the  expenses  of  any  special  audits or "cold comfort" letters required by or
incident  to  such  performance  and  compliance,  the  reasonable  fees  and
disbursements  of not more than one law firm (not to exceed $20,000) retained by
the  holder  or holders of more than 50% of the Registrable Securities, premiums
and  other  costs  of  policies  of insurance of the Company against liabilities
arising  out  of  the  public  offering  of  the  Registrable  Securities  being
registered  and  any  fees and disbursements of underwriters customarily paid by
issuers  or  sellers  of  securities,  but  excluding underwriting discounts and
commissions  and  transfer  taxes,  if  any,  provided  that,  in any case where
Registration  Expenses  are  not to be borne by the Company, such expenses shall
not  include  salaries  of Company personnel or general overhead expenses of the
Company,  auditing  fees,  premiums  or  other  expenses  relating  to liability
insurance  required  by  underwriters  of  the Company or other expenses for the
preparation  of  financial  statements  or  other  data normally prepared by the
Company  in  the ordinary course of its business or which the Company would have
incurred  in  any  event.

     "Registration  Maintenance  Period":  As  defined  in  Section  2.3.

     "Required  Effectiveness  Date":  As  defined  in  Section  2.1.

     "Securities  Act":  The  Securities  Act of 1933, as amended, and the rules
and  regulations  of  the  Commission  thereunder.

     "Securities  Purchase  Agreement":  As  defined  in  Section  1.

     "Sellers  Representative":  Global  Capital  Advisors  Ltd.  or such Person
designated  by Global Capital Advisors Ltd. as of the time of disposition of the
last  of the Debentures held by the Fund (or subsequent Sellers Representative).

     "Warrant  Shares":  As  defined  in  Section  1.

     4.     RULE  144.  The Company shall timely file the reports required to be
filed  by  it  under  the Securities Act and the Exchange Act (including but not
limited  to the reports under Sections 13 and 15(d) of the Exchange Act referred
to  in  subparagraph  (c)  of  Rule  144  adopted  by  the  Commission under the
Securities  Act)  and  the  rules  and  regulations  adopted  by  the Commission
thereunder  (or, if the Company is not required to file such reports, will, upon
the  request  of  any  holder of Registrable Securities, make publicly available
other  information)  and  will  take  such  further  action  as  any  holder  of
Registrable  Securities  may reasonably request, all to the extent required from
time  to  time  to  enable  such  holder  to sell Registrable Securities without
registration  under  the  Securities Act within the limitation of the exemptions
provided  by  (a) Rule 144 under the Securities Act, as such Rule may be amended
from  time  to  time, or (b) any similar rule or regulation hereafter adopted by
the  Commission.  Upon  the request of any holder of Registrable Securities, the
Company  will  deliver  to  such holder a written statement as to whether it has
complied  with  the  requirements  of  this  Section  4.

     5.     AMENDMENTS  AND  WAIVERS.  This  Agreement  may  be  amended and the
Company may take any action herein prohibited, or omit to perform any act herein
required  to  be  performed  by  it, only if the Company shall have obtained the
written  consent  to such amendment, action or omission to act, of the holder or
holders  of  the  sum  of  the  51%  or  more  of  the shares of (i) Registrable
Securities  issued  at such time, plus (ii) Registrable Securities issuable upon
exercise or conversion of the Securities then constituting derivative securities
(if such Securities were not fully exchanged or converted in full as of the date
such  consent if sought).  Each holder of any Registrable Securities at the time
or  thereafter  outstanding  shall  be  bound  by any consent authorized by this
Section  5, whether or not such Registrable Securities shall have been marked to
indicate  such  consent.

     6.     NOMINEES  FOR  BENEFICIAL OWNERS.  In the event that any Registrable
Securities  are  held  by  a  nominee  for  the  beneficial  owner  thereof, the
beneficial  owner thereof may, at its election, be treated as the holder of such
Registrable Securities for purposes of any request or other action by any holder
or  holders  of  Registrable  Securities  pursuant  to  this  Agreement  or  any
determination  of  any  number of percentage of shares of Registrable Securities
held  by  an  holder  or  holders of Registrable Securities contemplated by this
Agreement.  If the beneficial owner of any Registrable Securities so elects, the
Company  may  require  assurances  reasonably satisfactory to it of such owner's
beneficial  ownership  or  such  Registrable  Securities.

     7.     NOTICES.  Except  as  otherwise  provided  in  this  Agreement,  all
notices,  requests and other communications to any Person provided for hereunder
shall be in writing and shall be given to such Person (a) in the case of a party
hereto  other  than the Company, addressed to such party in the manner set forth
in  the  Securities  Purchase  Agreement  or at such other address as such party
shall  have furnished to the Company in writing, or (b) in the case of any other
holder  of  Registrable  Securities,  at the address that such holder shall have
furnished  to  the  Company  in  writing,  or,  until  any  such other holder so
furnishes  to  the  Company  an  address, then to and at the address of the last
holder  of  such  Registrable  Securities  who  has  furnished an address to the
Company,  or  (c)  in  the  case of the Company, at the address set forth on the
signature  page  hereto,  to  the  attention  of its President, or at such other
address,  or  to  the attention of such other officer, as the Company shall have
furnished  to  each  holder  of  Registrable Securities at the time outstanding.
Each such notice, request or other communication shall be effective (i) if given
by  mail, 72 hours after such communication is deposited in the mails with first
class  postage  prepaid,  addressed  as  aforesaid or (ii) if given by any other
means  (including, without limitation, by fax or air courier), when delivered at
the  address  specified  above,  provided  that  any  such  notice,  request  or
communication  shall  not  be  effective  until  received.

     8.     ASSIGNMENT.  This  Agreement  shall be binding upon and inure to the
benefit  of  and be enforceable by the parties hereto.  In addition, and whether
or  not  any  express  assignment  shall  have been made, the provisions of this
Agreement which are for the benefit of the parties hereto other than the Company
shall also be for the benefit of and enforceable by any subsequent holder of any
Registrable  Securities.  Each  of  the  Holders  of  the Registrable Securities
agrees,  by  accepting  any portion of the Registrable Securities after the date
hereof,  to  the  provisions  of  this  Agreement including, without limitation,
appointment  of  the  Sellers  Representative  to  act  on behalf of such Holder
pursuant  to the terms hereof which such actions shall be made in the good faith
discretion  of  the Sellers Representative and be binding on all persons for all
purposes.

     9.     DESCRIPTIVE  HEADINGS.  The  descriptive  headings  of  the  several
sections  and  paragraphs  of this Agreement are inserted for reference only and
shall  not  limit  or  otherwise  affect  the  meaning  hereof.

     10.     GOVERNING  LAW.  THIS  AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF
THE  STATE  OF  CALIFORNIA  WITHOUT  REFERENCE TO THE PRINCIPLES OF CONFLICTS OF
LAWS.

     11.     COUNTERPARTS.  This  Agreement may be executed by facsimile and may
be  signed  simultaneously in any number of counterparts, each of which shall be
deemed  an original, but all such counterparts shall together constitute one and
the  same  instrument.

     12.     ENTIRE AGREEMENT.  This Agreement embodies the entire agreement and
understanding  between  the  Company and each other party hereto relating to the
subject  matter  hereof  and  supersedes all prior agreements and understandings
relating  to  such  subject  matter.

     13.     SEVERABILITY.  If  any  provision  of  this  Agreement,  or  the
application  of  such  provisions  to  any Person or circumstance, shall be held
invalid,  the  remainder of this Agreement, or the application of such provision
to  Persons or circumstances other than those to which it is held invalid, shall
not  be  affected  thereby.

<PAGE>

     IN  WITNESS  WHEREOF, the parties have caused this Agreement to be executed
and  delivered  by their respective officers thereunto duly authorized as of the
date  first  above  written.

     CREATIVE  HOST  SERVICES,  INC.

     By: /s/
     Name:     ___________________________
     Title:    ___________________________

Address:
     ________________________________

Fax:
Tel.:

     GCA  STRATEGIC  INVESTMENT  FUND  LIMITED

     By: /s/
     Name:     Lewis  N.  Lester
     Title:    Director

     Address:  c/o  Prime  Management  Limited
               Mechanics Building
               12  Church  Street
               Hamilton  HM  II,  Bermuda
               Fax:     441-295-3926
               Tel.:     441-295-0329ESCROW  AGREEMENT

     THIS  AGREEMENT is made as of September 26, 2000 by and among Creative Host
Services,  Inc.,  with  its principal office at 6335 Ferris Square, Suite G, San
Diego,  CA  92126  (hereinafter  the  "Company"),  GCA Strategic Investment Fund
Limited,  with  its  principal  office  at  Mechanics  Building,  12 Church St.,
Hamilton,  Bermuda  (hereinafter the "Purchaser"), and The Law Offices of Kim T.
Stephens, 220 College Ave., Suite 319, Athens , Georgia (hereinafter the "Escrow
Agent").

     W  I  T  N  E  S  S  E  T  H:

     WHEREAS,  the  Purchaser  will  be  purchasing  Warrants  and  Convertible
Debentures  (the  "Securities")  from the Company at a purchase price ("Purchase
Price")  as  set  forth  in  the  Securities Purchase Agreement (the "Securities
Purchase  Agreement")  signed  by  the  Company  and  the  Purchaser;  and

     WHEREAS,  it  is intended that the purchase of Securities be consummated in
accordance  with  the  requirements set forth by Regulation D, promulgated under
the  Securities  Act  of  1933,  as  amended;

     WHEREAS,  the Company has requested that the Escrow Agent hold the funds of
the  Purchaser  representing the Purchase Price in escrow until the Escrow Agent
has  received the Securities or had the opportunity to speak with the Company to
confirm their issuance.  The Escrow Agent will then immediately wire transfer or
otherwise  deliver at the Company's direction immediately available funds to the
Company  or  the Company's account and arrange for delivery of the Securities to
the  Purchaser  per  the  Purchaser's  written  instructions;  and

     WHEREAS,  the  Company has requested the Escrow Agent to hold in escrow the
Security  Agreement  (as  defined  in  the  Securities Purchase Agreement) for a
period  of 30 days following the Closing Date and release the Security Agreement
to  Purchaser  following  such  thirty-day  period.

     NOW,  THEREFORE,  in  consideration  of  the  covenants and mutual promises
contained  herein  and  other  good  and valuable consideration, the receipt and
legal  sufficiency of which are hereby acknowledged, and intending to be legally
bound  hereby,  the  parties  agree  as  follows:

                                    ARTICLE1.
                                    ---------

                               TERMS OF THE ESCROW
                               -------------------

     1.1.     The  parties  hereby agree to establish an escrow account with the
Escrow  Agent  whereby the Escrow Agent shall hold the funds for the purchase of
the  Securities.

     1.2.     Upon the Escrow Agent's receipt of funds into his attorney trustee
account,  he  shall  notify the Company, or the Company's designated attorney or
agent,  of  the  amount  of  funds  he  has  received  into  his  account.

     1.3.     The  Company,  upon  receipt  of said notice and acceptance of the
Purchaser's  Securities  Purchase  Agreement,  as  evidenced  by  the  Company's
execution  thereof,  shall  deliver  to  the  Escrow  Agent the Securities being
purchased  and  the  Transaction  Agreements,  including the Security Agreement.

     1.4.     Once the Escrow Agent confirms the validity of the issuance of the
Securities,  he  shall  immediately  wire  to  the  Company that amount of funds
necessary  to  purchase  the  Securities,  per  the  written instructions of the
Company. Contemporaneously therewith, the Escrow Agent shall arrange to have the
Securities  delivered  as  per  instructions  from  the  Purchaser.

     1.5.     If,  for  any  reason,  these  transactions  contemplated  by  the
Securities  Purchase  Agreement  are not consummated within five (5) days of the
date hereof, the Escrow Agent will promptly return any funds received by it from
the Purchaser to the Purchaser, without any further instructions from either the
Company  or  Purchaser.

     1.6.     This  Agreement may be altered or amended only with the consent of
all  of the parties hereto.  Should the Company attempt to change this Agreement
in  a  manner which, in the Escrow Agent's discretion, shall be undesirable, the
Escrow  Agent  may  resign  as  Escrow  Agent  by  notifying the Company and the
Purchasers in writing.  In the case of the Escrow Agent's resignation or removal
pursuant  to  the  foregoing,  his  only  duty, until receipt of notice from the
Company  and  the Purchasers or their agents that a successor escrow agent shall
have  been appointed, shall be to hold and preserve the Securities and/or funds.
Upon  receipt  by  the  Escrow  Agent  of  said  notice from the Company and the
Purchasers  of  the  appointment  of  a  successor  escrow  agent, the name of a
successor  escrow  account  and  a  direction  to transfer the Securities and/or
funds, the Escrow Agent shall promptly thereafter transfer all of the Securities
and/or  funds  held in escrow to said successor escrow agent.  Immediately after
said  transfer of Securities, the Escrow Agent shall furnish the Company and the
Purchasers  with  proof  of  such  transfer.  The  Escrow Agent is authorized to
disregard  any notices, request, instructions or demands received by it from the
Company or the Purchasers after notice of resignation or removal shall have been
given,  unless  the same shall be the aforementioned notice from the Company and
the  Purchasers to transfer the Securities and funds to a successor escrow agent
or  to  return  same  to  the  respective  parties.

     1.7.     The  Company  shall  pay  the  Escrow Agent a fee of $1,500.00 and
shall  reimburse  the  Escrow  Agent  for  any  reasonable  expenses incurred in
connection  with  his  performance  hereunder, including in the event there is a
conflict  between  the  parties  and the Escrow Agent shall deem it necessary to
retain  counsel.

     1.8.     The  Company  shall  deliver  to  the  Escrow  Agent  the Security
Agreement  which  shall  become effective 30 days following the Closing Date and
Escrow  Agent  shall  deliver  the  Security  Agreement  to  Purchaser  upon the
expiration  of  such  30-day  period without further instruction by the Company.

     The  Company  warrants  to  and  agrees  with  the  Escrow  Agent  that:

(I)     except the security interest evidenced by the Security Agreement of even
date  herewith  between Purchaser and the Company, there is no security interest
in  the  Securities  or  any  part  thereof;

(II)     except for the financing statement to be filed pursuant to the Security
Agreement  referenced  in Section 1.8(i) above, no financing statement under the
Uniform  Commercial  Code  is  on  file  in any jurisdiction claiming a security
interest  or in describing (whether specifically or generally) the Securities or
any  part  thereof;  and

(III)     the Escrow Agent shall have no responsibility at any time to ascertain
whether  or  not  any  security  interest  exists  in the Securities or any part
thereof  or  to  file  any financing statement under the Uniform Commercial Code
with  respect  to  the  Securities  or  any  part  thereof.

     1.9.     The  Escrow Agent has no liability hereunder to either party other
than  to  hold  the Securities, the Transaction Agreements and the funds, and to
deliver them in accordance with the terms hereof.  The Escrow Agent shall not be
liable  for  any  action  taken or omitted by him in good faith; and in no event
shall  the  Escrow  Agent be liable or responsible except for the Escrow Agent's
own  gross  negligence  or  willful  misconduct.

     1.10.     Each  party  hereto  agrees  to  indemnify  and hold harmless the
Escrow  Agent  from  and  with  respect  to  any and all suits, claims, damages,
demands,  actions,  liabilities  or  losses  arising  in  any  way  out  of this
transaction including the obligation to defend any legal action brought which in
any  way  arises  out  of  or  is  related  to  this  Agreement.

     1.11.     Escrow Agent shall not be responsible for: (i) the sufficiency or
correctness as to the form, execution or the validity of this Agreement; or (ii)
the  identity, authority or right of any person executing any notice or document
given  to  Escrow  Agent.

                                    ARTICLE2.
                                    ---------

                                  MISCELLANEOUS
                                  -------------

     2.1.     No  waiver  or  any  breach  of  any  covenant or provision herein
contained  shall  be  deemed  a  waiver  of  any  preceding or succeeding breach
thereof,  or  of any other covenant or provision herein contained.  No extension
of  time  for performance of any obligation or act shall be deemed any extension
of  the  time  for  performance  of  any  other  obligation  or  act.

     2.2.     The  Securities shall be delivered to the Purchaser at the address
set  forth  below.  All  notices  or  other communications required or permitted
hereunder  shall  be  in  writing,  and shall be sent by fax, overnight courier,
registered  or  certified  mail,  postage prepaid, return receipt requested, and
shall  be  deemed  received  upon  receipt  thereof,  as  follows:

(I)     To  the  Company:
         Creative  Host  Services,  Inc.
         6335  Ferris  Square
         Suite  G
         San  Diego,  CA  92126
         Attn:  Sayed  Ali
         Telephone:
         Facsimile:

(II)     To  the  Purchaser:
          GCA  Strategic  Investment  Fund  Limited
          c/o  Prime  Management  Limited
          Mechanics  Building
          12  Church  Street
          Hamilton,  Bermuda,  HM11
          Attn:  Joe  Kelly
          Telephone:  (441)  295-0329
          Facsimile  :  (441)  295-3296

(III)    To  the  Escrow  Agent:
          The  Law  Offices  of  Kim  T.  Stephens
          220  College  Ave.,  Suite  319
          Athens,  Georgia  30601
          Attention:  Kim  T.  Stephens,  Esq.
          Telephone:  (706)  548-3933
          Facsimile:  (706)  548-6229

     2.3.     This  Agreement  shall  be  binding  upon  and  shall inure to the
benefit  of  the  permitted  successors  and  assigns  of  the  parties  hereto.

     2.4.     This Agreement is the final expression of, and contains the entire
Agreement  between,  the  parties  with respect to the subject matter hereof and
supersedes  all  prior  understandings with respect thereto.  This Agreement may
not  be  modified,  changed, supplemented or terminated, nor may any obligations
hereunder  be  waived,  except by written instrument signed by the parties to be
charged  or  by  its  agent duly authorized in writing or as otherwise expressly
permitted  herein.

     2.5.     Whenever  required  by the context of this Agreement, the singular
shall  include  the  plural  and  masculine  shall  include  the feminine.  This
Agreement  shall  not  be  construed  as  if  it had been prepared by one of the
parties,  but rather as if both parties had prepared the same.  Unless otherwise
indicated,  all  references  to  Articles  are  to  this  Agreement.

     2.6.     The  parties  hereto  expressly agree that this Agreement shall be
governed by, interpreted under and construed and enforced in accordance with the
laws  of  the  State  of
Georgia.  Any action to enforce, existing out of, or relating in any way to, any
provisions  of  this Agreement shall be brought through the American Arbitration
Association  at  the  designated  locale  of  Atlanta,  Georgia.

     IN  WITNESS  WHEREOF, the parties hereto have executed this Agreement as of
September___,  2000.

     CREATIVE  HOST  SERVICES,  INC.

     By: /s/
     Name:
     Title:

     GCA  STRATEGIC  INVESTMENT  FUND  LIMITED.

     By: /s/
     Name:  Lewis  N.  Lester,  Director

     THE  LAW  OFFICES  OF  KIM  T.  STEPHENS

     By: /s/
     Name:  Kim  T.  Stephens,  Esq.

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