Document:

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                                                                     Exhibit 4.3

                                TARANTELLA, INC.
                          EMPLOYEE STOCK PURCHASE PLAN
                           (As Amended November 2000)

The following constitute the provisions of the Employee Stock Purchase Plan of
Tarantella, Inc.

1.   Purpose.
     --------

     The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the
Company through accumulated payroll deductions. It is the intention of the
company to have the Plan qualify as an "Employee Stock Purchase Plan" under
Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of
the Plan, accordingly, shall be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of
the Code.

2.   Definitions.

     a)   "Board" shall mean the Board of Directors of the company.
           -----

     b)   "Code" shall mean the Internal Revenue Code of 1986, as amended.
           ----

     c)   "Common Stock" shall mean the Common Stock of the Company.
           ------------

     d)   "Company" shall mean Tarantella, Inc., a California corporation.
           -------

     e)   "Compensation" shall include all base pay, overtime pay, bonus and
           ------------
          commissions and shall exclude all other amounts.

     f)   "Designated Subsidiaries" shall mean the Subsidiaries which have been
           -----------------------
          designated by the Board from time to time in its sole discretion as
          eligible to participate in the Plan.

     g)   "Employee" shall mean any individual who is a regular employee of the
           --------
          Company for purposes of tax withholding under the Code whose customary
          employment with the Company or any Designated Subsidiary regardless of
          the number of hours worked. For purposes of the Plan, the employment
          relationship shall be treated as continuing intact while the
          individual is on sick leave or other leave of absence approved by the
          Company. Where the period of leave exceeds ninety (90) days and the
          individual's right to employment is not guaranteed either by statute
          or by contract, the employment relationship will be deemed to have
          terminated on the 91st day of such leave.

     h)   "Enrollment Date" shall mean the first day of each Offering Period.
           ---------------

     i)   "Exercise Date" shall mean the last day of each Offering Period.
           -------------

     j)   "Fair Market Value" shall mean, as of any date, the value of Common
           -----------------
          Stock determined as follows:

          i)   If the Common Stock is listed on any established stock exchange
               or a national market system, including without limitation the
               National Market System of the National Association of Securities
               Dealers, Inc. Automated Quotation ("NASDAQ") System, its Fair
               Market Value shall be the closing sale price for the Common Stock
               (or the mean of the closing bid and asked prices, if no sales
               were reported), as quoted on such exchange (or the exchange with
               the greatest volume of trading in Common Stock) or system on the
               date of such determination, as reported in The Wall Street
               Journal or such other source as the Board deems reliable, or;

          ii)  If the Common Stock is quoted on the NASDAQ system (but not on
               the National Market System thereof) or is regularly quoted by a
               recognized securities dealer but selling prices are not reported,
               its Fair Market Value shall be the mean of the closing bid and
               asked prices for the Common Stock on the date of such
               determination, as reported in The Wall Street Journal or such
               other source as the Board deems reliable, or;

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          iii) In the absence of an established market for the Common Stock, the
               Fair Market Value thereof shall be determined in good faith by
               the Board.

          iv)  For purposes of the Enrollment Date under the first Offering
               Period under the Plan, the Fair Market Value of the Common Stock
               shall be the Price to Public as set forth in the final prospectus
               filed with the Securities and Exchange commission pursuant to
               Rule 424 under the Securities Act of 1933, as amended.

     k)   "Offering Period" shall mean a period of approximately six (6) months,
           ---------------
          commencing on the first Trading Day on or after February 1 and
          terminating on the last Trading Day in the period ending the following
          July 31, or commencing on the first Trading Day on or after August 1
          and terminating on the last Trading Day in the period ending the
          following January 31, during which an option granted pursuant to the
          Plan may be exercised. The duration, commencement and termination of
          Offering Periods may be changed pursuant to Section 4 of this Plan.

     l)   "Purchase Price" shall mean an amount equal to 85% of the Fair Market
           --------------
          Value of a share of Common Stock on the Enrollment Date or on the
          Exercise Date, whichever is lower.

     m)   "Reserves" shall mean the number of shares of Common Stock covered by
           --------
          each option under the Plan which have not yet been exercised and the
          number of shares of Common Stock which have been authorized for
          issuance under the Plan but not yet placed under option.

     n)   "Subsidiary" shall mean a corporation, domestic or foreign, of which
           ----------
          not less than 50% of the voting shares are held by the Company or a
          Subsidiary, whether or not such corporation now exists or is hereafter
          organized or acquired by the Company or a Subsidiary.

     o)   "Trading Day" shall mean a day on which national stock exchanges and
           -----------
          the National Association of Securities Dealers Automated Quotation
          (NASDAQ) System are open for trading.

3.   Eligibility.
     -----------

     a)   Any Employee (as defined in Section 2(g)), who shall be employed by
          the Company on a given Enrollment Date shall be eligible to
          participate in the Plan.

     b)   Any provisions of the Plan to the contrary notwithstanding, no
          Employee shall be granted an option under the Plan

          i)   to the extent, immediately after the grant, such Employee (or any
               other person whose stock would be attributed to such Employee
               pursuant to Section 424(d) of the Code) would own capital stock
               of the Company and/or hold outstanding options to purchase such
               stock possessing five percent (5%) or more of the total combined
               voting power or value of all classes of the capital stock of the
               Company or of any Subsidiary, or

          ii)  to the extent his or her rights to purchase stock under all
               employee stock purchase plans of the Company and its subsidiaries
               to accrue at a rate which exceeds Twenty-Five Thousand Dollars
               ($25,000) worth of stock (determined at the fair market value of
               the shares at the time such option is granted) for each calendar
               year in which such option is outstanding at any time.

4.   Offering Periods.
     ----------------

     The Plan shall be implemented by consecutive Offering Periods with a new
     Offering Period commencing on the first Trading Day on or after February 1
     and August 1 each year, or on such other date as the Board shall determine,
     and continuing thereafter until terminated in accordance with Section 19
     hereof. The Board shall have the power to change the duration, commencement
     and termination of Offering Periods with respect to future offerings
     without shareholder approval if such change is announced at least five (5)
     days prior to the scheduled beginning of the first Offering Period to be
     affected thereafter.

5.   Participation.
     -------------

     a)   An eligible Employee may become a participant in the Plan by
          completing a subscription agreement authorizing payroll deductions in
          the form of Exhibit A to this Plan and filing it with the Company's
          payroll office at least ten business days

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          prior to the applicable Enrollment Date, however, a later date, prior
          to the applicable Enrollment Date may be established for all eligible
          Employees to enroll in a given Offering Period.

     b)   Payroll deductions for a participant shall commence on the first
          payroll following the enrollment Date and shall end on the last
          payroll in the Offering Period to which such authorization is
          applicable, unless sooner terminated by the participant as provided in
          Section 10 hereof.

6.   Payroll Deductions.
     ------------------

     a)   At the time a participant files his or her subscription agreement, he
          or she shall elect to have payroll deductions made on each pay day
          during the Offering Period in an amount of at least one percent (1%)
          and not exceeding ten percent (10%) of the Compensation which he or
          she receives on each pay day during the Offering Period, and the
          aggregate of such payroll deductions during the Offering Period shall
          not exceed ten percent (10%) of the participant's Compensation during
          said Offering Period.

     b)   All payroll deductions made for a participant shall be credited to his
          or her account under the Plan and will be withheld in whole
          percentages only. A participant may not make any additional payments
          into such account.

     c)   A participant may discontinue his or her participation in the Plan as
          provided in Section 10 hereof, or may increase or decrease the rate of
          his or her payroll deductions during the Offering Period by completing
          or filing with the Company a new subscription agreement authorizing a
          change in payroll deduction rate. The Board may, in its discretion,
          limit the number of participation rate changes during any Offering
          Period. The change in rate shall be effective with the first full
          payroll period following five (5) business days after the Company's
          receipt of the new subscription agreement unless the Company elects to
          process a given change in participation more quickly. A participant's
          subscription agreement shall remain in effect for successive Offering
          Periods unless terminated as provided in Section 10 hereof.

     d)   Notwithstanding the foregoing, to the extent necessary to comply with
          Section 423(b)(8) of the Code and Section 3(b) hereof, a participant's
          payroll deductions may be decreased to 0% at such time during any
          Offering Period which is scheduled to end during the current calendar
          year (the "Current Offering Period") that the aggregate of all payroll
          deductions which were previously used to purchase stock under the Plan
          in a prior Offering Period which ended during that calendar year plus
          all payroll deductions accumulated with respect to the Current
          Offering Period equal $21,250. Payroll deductions shall recommence at
          the rate provided in such participant' s subscription agreement at the
          beginning of the first Offering Period which is scheduled to end in
          the following calendar year, unless terminated by the participant as
          provided in Section 10 hereof.

     e)   At the time the option is exercised, in whole or in part, or at the
          time some or all of the Company's Common Stock issued under the Plan
          is disposed of, the participant must make adequate provision for the
          Company's federal, state, or other tax withholding obligations, if
          any, which arise upon the exercise of the option or the disposition of
          the Common Stock. At any time, the Company may, but will not be
          obligated to, withhold from the participant's compensation the amount
          necessary for the Company to meet applicable withholding obligations,
          including any withholding required to make available to the Company
          any tax deductions or benefits attributable to sale or early
          disposition of Common Stock by the Employee.

7.   Grant of Option.
     ---------------

     On the Enrollment Date of each Offering Period, each eligible Employee
     participating in such Offering Period shall be granted an option to
     purchase on the Exercise Date of such Offering Period (at the applicable
     Purchase Price) up to a number of shares of the Company's Common Stock
     determined by dividing such Employee's payroll deductions accumulated prior
     to such Exercise Date and retained in the Participant's account as of the
     Exercise Date by the applicable Purchase Price; provided that in no event
     shall an Employee be permitted to purchase during each Offering Period more
     than a number of Shares determined by dividing $12,500 by the Fair Market
     Value of a share of the Company's Common Stock on the Enrollment Date (the
     "Number"), except that for purposes of the first Offering period under the
     Plan, the Number shall be calculated by dividing $25,000 by the Fair Market
     Value of a share of the Company's Common Stock on the Enrollment Date, and
     provided further that all such purchases shall be subject to the
     limitations set forth in Sections 3(b) and 12 hereof. Exercise of the
     option shall occur as provided in Section 8 hereof, unless the participant
     has withdrawn pursuant to Section 10 hereof, and shall expire on the last
     day of the Offering Period.

8.   Exercise of Option.
     ------------------

     Unless a participant withdraws from the Plan as provided in Section 10
     hereof, his or her option for the purchase of shares will be exercised
     automatically on the Exercise Date, and the maximum number of full shares
     subject to option shall be purchased for

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     such participant at the applicable Purchase Price with the accumulated
     payroll deductions in his or her account. No fractional shares will be
     purchased; any payroll deductions accumulated in a participant's account
     which are not sufficient to purchase a full share shall be retained in the
     participant' s account for the subsequent Offering Period, subject to
     earlier withdrawal by the participant as provided in Section 10 hereof. Any
     other moneys left over in a participant's account after the Exercise Date
     shall be returned to the participant. During a participant's lifetime, a
     participant's option to purchase shares hereunder is exercisable only by
     him or her.

9.   Delivery.
     --------

     As promptly as practicable after each Exercise Date on which a purchase of
     shares occurs, the Company shall arrange the delivery to each participant,
     as appropriate, of a certificate representing the shares purchased upon
     exercise of his or her option.

10.  Withdrawal; Termination of Employment.
     -------------------------------------

     a)   A participant may withdraw all but not less than all the payroll
          deductions credited to his or her account and not yet used to exercise
          his or her option under the Plan at any time by giving written notice
          to the Company in the form of Exhibit B to this Plan. All of the
          participant's payroll deductions credited to his or her account will
          be paid to such participant promptly after receipt of notice of
          withdrawal and such participant's option for the Offering Period will
          be automatically terminated, and no further payroll deductions for the
          purchase of shares will be made during the Offering Period. If a
          participant withdraws from an Offering Period, payroll deductions will
          not resume at the beginning of the succeeding Offering Period unless
          the participant delivers to the Company a new subscription agreement.

     b)   Upon a participant's ceasing to be an Employee (as defined in Section
          2(g) hereof ), for any reason he or she will be deemed to have elected
          to withdraw from the Plan and the payroll deductions credited to such
          participant' s account during the Offering Period but not yet used to
          exercise the option will be returned to such participant or, in the
          case of his or her death, to the person or persons entitled thereto
          under Section 14 hereof, and such participant's option will be
          automatically terminated.

     c)   A participant's withdrawal from an Offering Period will not have any
          effect upon his or her eligibility to participate in any similar plan
          which may hereafter be adopted by the Company or in succeeding
          Offering Periods which commence after the termination of the Offering
          Period from which the participant withdraws.

11.  Interest.
     --------

     No interest shall accrue on the payroll deductions of a participant in the
     Plan.

12.  Stock.
     -----

     a)   The maximum number of shares of the Company's Common Stock which shall
          be made available for sale under the Plan shall be 5,000,000 shares,
          subject to adjustment upon changes in capitalization of the Company as
          provided in Section 18 hereof. If on a given Exercise Date the number
          of shares with respect to which options are to be exercised exceeds
          the number of shares then available under the Plan, the Company shall
          make a pro rata allocation of the shares remaining available for
          purchase in as uniform a manner as shall be practicable and as it
          shall determine to be equitable.

     b)   The participant will have no interest or voting right in shares
          covered by his option until such option has been exercised.

     c)   Shares to be delivered to a participant under the Plan will be
          registered in the name of the participant or in the name of the
          participant and his or her spouse.

13.  Administration.
     --------------

     a)   Administrative Body. The Plan shall be administered by the Board or a
          committee of members of the Board appointed by the Board. The Board or
          its committee shall have full and exclusive discretionary authority to
          construe, interpret and apply the terms of the Plan, to determine
          eligibility and to adjudicate all disputed claims filed under the
          Plan. Every finding, decision and determination made by the Board or
          its committee shall, to the full extent permitted by law, be final and
          binding upon all parties.

     b)   Members of the Board who are eligible Employees are permitted to
          participate in the Plan, provided that:

                                     Page 4

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          i)   Members of the Board who are eligible to participate in the Plan
               may not vote on any matter affecting the administration of the
               Plan or the grant of any option pursuant to the Plan.

          ii)  If a Committee is established to administer the Plan, no member
               of the Board who is eligible to participate in the Plan may be a
               member of the Committee.

     c)   Rule 16b-3 Limitations. Notwithstanding the provisions of Subsection
          (a) of this Section 13, in the event that Rule 16b-3 promulgated under
          the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
          or any successor provision ("Rule 16b-3") provides specific
          requirements for the administrators of plans of this type, the Plan
          shall be only administered by such a body and in such a manner as
          shall comply with the applicable requirements of Rule 16b-3. Unless
          permitted by Rule 16b-3, no discretion concerning decisions regarding
          the Plan shall be afforded to any committee or person that is not
          "disinterested" as that term is used in Rule 16b-3.

14.  Designation of Beneficiary.
     --------------------------

     a)   The beneficiary(ies) designated by the participant to take under the
          life insurance program of the Company, or a beneficiary chosen by a
          participant is written designation to the Company of a beneficiary
          shall receive any shares and cash, if any, from the participant's
          account under the Plan in the event of such participant's death
          subsequent to an Exercise Date on which the option is exercised but
          prior to delivery to such participant of such shares and cash. In
          addition, the same beneficiary(ies) shall receive any cash from the
          participant's account under the Plan in the event of such
          participant's death prior to exercise of the option.

     b)   Such designation of beneficiary may be changed by the participant at
          any time by written notice. In the event of the death of a participant
          and in the absence of a beneficiary validly designated under the Plan
          who is living at the time of such participant's death, the Company
          shall deliver such shares and/or cash to the executor or administrator
          of the estate of the participant, or if no such executor or
          administrator has been appointed (to the knowledge of the Company),
          the Company, in its discretion, may deliver such shares and/or cash to
          the spouse or to any one or more dependents or relatives of the
          participant, or if no spouse, dependent or relative is known to the
          Company, then to such other person as the Company may designate.

15.  Transferability.
     ---------------

     Neither payroll deductions credited to a participant's account nor any
     rights with regard to the exercise of an option or to receive shares under
     the Plan may be assigned, transferred, pledged or otherwise disposed of in
     any way (other than by will, the laws of descent and distribution or as
     provided in Section 14 hereof) by the participant. Any such attempt at
     assignment, transfer, pledge or other disposition shall be without effect,
     except that the Company may treat such act as an election to withdraw funds
     from an Offering Period in accordance with Section 10 hereof.

16.  Use of Funds.
     ------------

     All payroll deductions received or held by the Company under the Plan may
     be used by the Company for any corporate purpose, and the Company shall not
     be obligated to segregate such payroll deductions.

17.  Reports.
     -------

     Individual accounts will be maintained for each participant in the Plan.
     Statements of account will be given to participating Employees at least
     annually, which statements will set forth the amounts of payroll
     deductions, the Purchase Price, the number of shares purchased and the
     remaining cash balance, if any.

                                     Page 5

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18.  Adjustments Upon Changes in Capitalization.
     ------------------------------------------

     a)   Changes in Capitalization. Subject to any required action by the
          shareholders of the Company, the Reserves as well as the price per
          share of Common Stock covered by each option under the Plan which has
          not yet been exercised shall be proportionately adjusted for any
          increase or decrease in the number of issued shares of Common Stock
          resulting from a stock split, reverse stock split, stock dividend,
          combination or reclassification of the Common Stock, or any other
          increase or decrease in the number of shares of Common Stock effected
          without receipt of consideration by the Company; provided, however,
          that conversion of any convertible securities of the Company shall not
          be deemed to have been "effected without receipt of consideration".
          Such adjustment shall be made by the Board, whose determination in
          that respect shall be final, binding and conclusive. Except as
          expressly provided herein, no issuance by the Company of shares of
          stock of any class, or securities convertible into shares of stock of
          any class, shall affect, and no adjustment by reason thereof shall be
          made with respect to, the number or price of shares of Common Stock
          subject to an option.

     b)   Dissolution or Liquidation. In the event of the proposed dissolution
          or liquidation of the Company, the Offering Period will terminate
          immediately prior to the consummation of such proposed action, unless
          otherwise provided by the Board.

     c)   Merger or Asset Sale. In the event of a proposed sale of all or
          substantially all of the assets of the Company, or the merger of the
          Company with or into another corporation, each option under the Plan
          shall be assumed or an equivalent option shall be substituted by such
          successor corporation or a parent or subsidiary of such successor
          corporation, unless the Board determines, in the exercise of its sole
          discretion and in lieu of such assumption or substitution, to shorten
          the Offering Period then in progress by setting a new Exercise Date
          (the "New Exercise Date") or to cancel each outstanding right to
          purchase and refund all sums collected from participants during the
          Offering Period then in progress. If the Board shortens the Offering
          Period then in progress in lieu of assumption or substitution in the
          event of a merger or sale of assets, the Board shall notify each
          participant in writing, at least ten (10) business days prior to the
          New Exercise Date, that the Exercise Date for his option has been
          changed to the New Exercise Date and that his option will be exercised
          automatically on the New Exercise Date, unless prior to such date he
          has withdrawn from the Offering Period as provided in Section 10
          hereof. For purposes of this paragraph, an option granted under the
          Plan shall be deemed to be assumed if, following the sale of assets or
          merger, the option confers the right to purchase, for each share of
          option stock subject to the option immediately prior to the sale of
          assets or merger, the consideration (whether stock, cash or other
          securities or property) received in the sale of assets or merger by
          holders of Common Stock for each share of Common Stock held on the
          effective date of the transaction (and if such holders were offered a
          choice of consideration, the type of consideration chosen by the
          holders of a majority of the outstanding shares of Common Stock);
          provided, however, that if such consideration received in the sale of
          assets or merger was not solely common stock of the successor
          corporation or its parent (as defined in Section 424(e) of the Code),
          the Board may, with the consent of the successor corporation and the
          participant, provide for the consideration to be received upon
          exercise of the option to be solely common stock of the successor
          corporation or its parent equal in fair market value to the per share
          consideration received by holders of Common Stock and the sale of
          assets or merger.

     d)   The Board may, if it so determines in the exercise of its sole
          discretion, also make provision for adjusting the Reserves, as well as
          the price per share of Common Stock covered by each outstanding
          option, in the event the Company effects one or more reorganizations,
          recapitalization, rights offerings or other increases or reductions of
          shares of its outstanding Common Stock, and in the event of the
          Company being consolidated with or merged into any other corporation.

19.  Amendment or Termination.
     ------------------------

     a)   The Board of Directors of the Company may at any time and for any
          reason terminate or amend the Plan. Except as provided in Section 18
          hereof, no such termination can affect options previously granted,
          provided that an Offering Period may be terminated by the Board of
          Directors on any Exercise Date if the Board determines that the
          termination of the Plan is in the best interests of the Company and
          its shareholders. Except as provided in Section 18 hereof, no
          amendment may make any change in any option theretofore granted which
          adversely affects the rights of any participant. To the extent
          necessary to comply with Rule 16b-3 or under Section 423 of the Code
          (or any successor rule or provision or any other applicable law or
          regulation), the Company shall obtain shareholder approval in such a
          manner and to such a degree as required.

     b)   Without shareholder consent and without regard to whether any
          participant rights may be considered to have been "adversely
          affected," the Board (or its committee) shall be entitled to change
          the Offering Periods, limit the frequency and/or number of changes in
          the amount withheld during an Offering Period, establish the exchange
          ratio applicable to amounts withheld in a currency other than U.S.
          dollars, permit payroll withholding in excess of the amount designated
          by a

                                     Page 6

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          participant in order to adjust for delays or mistakes in the Company's
          processing of properly completed withholding elections, establish
          reasonable waiting and adjustment periods and/or accounting and
          crediting procedures to ensure that amounts applied toward the
          purchase of Common Stock for each participant properly correspond with
          amounts withheld from the participant's Compensation, and establish
          such other limitations or procedures as the Board (or its committee)
          determines in its sole discretion advisable which are consistent with
          the Plan.

20.  Notices.
     -------

     All notices or other communications by a participant to the Company under
     or in connection with the Plan shall be deemed to have been duly given when
     received in the form specified by the Company at the location, or by the
     person, designated by the Company for the receipt thereof.

21.  Conditions Upon Issuance of Shares.
     ----------------------------------

     Shares shall not be issued with respect to an option unless the exercise of
     such option and the issuance and delivery of such shares pursuant thereto
     shall comply with all applicable provisions of law, domestic or foreign,
     including, without limitation, the Securities Act of 1933, as amended, the
     Securities Exchange Act of 1934, as amended, the rules and regulations
     promulgated thereunder, and the requirements of any stock exchange upon
     which the shares may then be listed, and shall be further subject to the
     approval of counsel for the Company with respect to such compliance.

     As a condition to the exercise of an option, the Company may require the
     person exercising such option to represent and warrant at the time of any
     such exercise that the shares are being purchased only for investment and
     without any present intention to sell or distribute such shares if, in the
     opinion of counsel for the Company, such a representation is required by
     any of the aforementioned applicable provisions of law.

22.  Term of Plan.
     ------------

     The Plan shall become effective upon the earlier to occur of its adoption
     by the Board of Directors or its approval by the shareholders of the
     Company. It shall continue in effect for a term of ten (10) years unless
     sooner terminated under Section 19 hereof.

23.  Additional Restrictions of Rule 16b-3.
     -------------------------------------

     The terms and conditions of options granted hereunder to, and the purchase
     of shares by, persons subject to Section 16 of the Exchange Act shall
     comply with the applicable provisions of Rule 16b-3. This Plan shall be
     deemed to contain, and such options shall contain, and the shares issued
     upon exercise thereof shall be subject to, such additional conditions and
     restrictions as may be required by Rule 16b-3 to qualify for the maximum
     exemption from Section 16 of the exchange Act with respect to Plan
     transactions.

                                     Page 7Exhibit 10.27

                        ASSET PURCHASE AGREEMENT

     This Agreement is entered into this 30th day of August, 2001 by and
between Contra-Pak, Inc., a Texas corporation ("Seller"), James Hairston,
the sole shareholder of Seller ("Hairston"), and Host America Corporation,
a Colorado corporation ("Purchaser").

     WHEREAS, Seller owns and operates the business known as Contra-Pak,
Inc., and

     WHEREAS, Seller desires to sell and Purchaser desires to purchase
certain assets of the Business.

     NOW, THEREFORE, in consideration of the mutual promises contained
herein, and other good and valuable consideration, the receipt of which is
hereby acknowledged, it is agreed as follows:

     1.   SALE OF ASSETS.

          (a)  Seller shall convey to Purchaser at closing, certain assets
of the Seller, free and clear of any and all liens or encumbrances
whatsoever, including all packaging film, the vehicle, its customer lists,
and all of Seller's rights in and to the name "Contra-Pak", and any other
trade names or trademarks used in connection with the Seller's business.
EXHIBIT A, attached hereto, identifies all of said assets (the "Transferred
Assets").

          (b)  All uses of the names set forth in EXHIBIT A to this
Agreement, or any derivations thereof, are being transferred to the
Purchaser hereunder as part of the Transferred Assets.  The Seller and
Hairston agree that neither will take any action that reasonably could be
expected to affect adversely the Purchaser's right to such names or cause
confusion with respect to the Purchaser's, or its assignee's use of the
such names.  All goodwill with respect to the use of the names will inure
to the benefit of the Purchaser, and the Seller will not have any rights to
sue or recover against any person with respect to the use of such names.

          (c)  Purchaser acknowledges that the following assets are
excluded from sale:  Cash, cash equivalents, accounts receivable, personal
effects (desk in office), and personal vehicles.

     2.   PURCHASE PRICE AND TERMS.

          (a)  $285,870  Purchase Price, payable as follows:

          (b)  $145,870  Due at closing in the form of a cashier's check
made payable to Seller.

          (c)  $140,000  The balance of the purchase price shall be payable
in shares of Purchaser's restricted common stock valued at the average
closing market price of such stock over the five trading days immediately
prior to the Closing Date.  Seller acknowledges and agrees that the stock
issued pursuant to this Section 2(c) shall be restricted stock and shall
bear the legend set forth in Section 4(j)(iv) hereof.

<PAGE>
     3.   LIABILITIES NOT ASSUMED BY THE PURCHASER.  The Seller shall pay
and discharge in due course all of its liabilities, debts and obligations
relating to the Transferred Assets or the business of Seller, whether known
or unknown, now existing or hereafter arising, contingent or liquidated,
including, without limitation, any tax liabilities of Seller pertaining to
the Transferred Assets or the business of Seller, any debt obligations and
the liabilities and obligations set forth in clauses (a) through (d) below
(collectively, the "Retained Liabilities"), and the Purchaser shall not
assume, or in any way be liable or responsible for, any of such Retained
Liabilities.  Without limiting the generality of the foregoing, the
Retained Liabilities shall include the following:

          (a)  any liability or obligation of the Seller arising out of or
in connection with the negotiation and preparation of this agreement and
the consummation and performance of the transactions contemplated hereby,
whether or not such transactions are consummated, including but not limited
to any tax liability so arising;

          (b)  any liability or obligation for any and all taxes of the
Seller or the business of Seller or the Transferred Assets (including, but
not limited to, any and all taxes described in this Section 3(b) for which
liability is or may be sought to be imposed on the Purchaser under any
successor liability, transferee liability or similar provision of any
applicable federal, foreign, state or local law (including, without
limitation, Section 111.020 of the Texas Tax Code));

          (c)  any liability to which any of the parties may become subject
as a result of the fact that the transactions contemplated by this
agreement are being effected without compliance with the bulk sales
provisions of the Uniform Commercial Code as in effect in any state or any
similar statute as enacted in any jurisdiction; and

          (d)  all other liabilities and obligations arising prior to the
Closing and related to the conduct or operation of the Transferred Assets
or the business of the Seller on or prior to the Closing Date.

     4.   Representation and Warranties of the Seller and Hairston.  Except
as otherwise set forth in the Disclosure Schedule attached hereto as
EXHIBIT B, the Seller and Hairston jointly and severally represent and
warrant to the Purchaser as follows:

          (a)  CORPORATE MATTERS.

               (i)   The Seller is a corporation duly organized, validly
existing and in good standing under the laws of Texas.  The Seller has all
requisite power and authority under all applicable laws, ordinances and
order of public authorities to own, operate and lease its properties and
assets and to carry on its business in the manner currently conducted,
except where the failure to have such would not have a material adverse
effect on such business.  The Seller is qualified to transact business as
a foreign corporation and is in good standing in the jurisdictions, if any,
specified in Section 4(a)(i) of the Disclosure Schedule, and there is no
other jurisdiction in which the nature and extent of the Seller's business
or their character of its assets make such qualification necessary, except
where the failure to have such would not have

                                   -2-
<PAGE>
a material adverse effect on the Seller's business.  The Seller has all
requisite corporate power and authority to enter into this Agreement and to
perform its obligations under this Agreement.

               (ii)   The Seller has no subsidiaries.

               (iii) True, correct and complete copies of the
organizational documents of the Seller have been provided by the Seller to
the Purchaser, and such organizational documents are in full force and
effect.

               (iv)   Set forth in Section 4(a)(iv) of the Disclosure
Schedule is a list of assumed names under which the Seller operates its
business.

          (b)  VALIDITY OF AGREEMENT AND CONFLICT WITH OTHER INSTRUMENTS.

               (i)   This Agreement, and the transactions contemplated
hereby, have been duly authorized and approved by all necessary corporate
action on the part of the Seller, including the approval of the directors
and shareholders of the Seller.  This Agreement has been duly executed and
delivered by the Seller and is a legal, valid and binding obligation of the
Seller enforceable against the Seller in accordance with its terms, except
as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect that
affect creditors' rights generally and by legal and equitable limitations
on the availability of specific remedies.

               (ii)  The execution, delivery and performance of this
Agreement and the other agreements and documents to be delivered by the
Seller to the Purchaser, the consummation of the transactions contemplated
hereby or thereby, and the compliance with the provisions hereof or
thereof, by the Seller will not, with or without the passage of time or the
giving of notice or both:

                    (1)  conflict with, constitute a breach, violation or
                         termination of any provision of , or give rise to
                         any right of termination, cancellation or
                         acceleration, or loss of any right or benefit or
                         both, under any of the contracts and other
                         agreements relating to the Seller's business;

                    (2)  conflict with or violate the organizational
                         documents of the Seller;

                    (3)  result in the creation or imposition of any lien
                         or other encumbrance or third party right on any
                         of the Transferred Assets; or

                    (4)  violate any law, statute, ordinance, regulation,
                         judgment, writ, injunction, rule, decree, order
                         or any other restriction of any kind or character
                         applicable to the Transferred Assets or the
                         Seller.

                                   -3-
<PAGE>
               (iii)  Attached as Section 4(b)(iii) of the Disclosure
Schedule are true, correct and complete copies of the resolutions adopted
by the Seller and the shareholders of the Seller approving this Agreement
and the transactions contemplated hereby.  Such resolutions were adopted at
meetings duly called and convened at which quorums were present and acting
throughout or by unanimous written consents.  Such resolutions are in full
force and effect without amendment or modification.

          (c)  APPROVALS, LICENSES AND AUTHORIZATIONS.  Except as set forth
in Section 4(c) of the Disclosure Schedule, no order, license, consent,
waiver, authorization or approval of, or exemption by, or the giving of
notice to, or the registration with, or the taking of any other action in
respect of, any Person not a party to this Agreement, including any
governmental entity, and no filing, recording, publication or registration
in any public office or any other place is now, or under existing law in
the future will be, necessary on behalf of the Seller to authorize its
execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated hereby (including, but not limited to,
assignment of the Transferred Assets), or to effect the legality, validity,
binding effect or enforceability hereof.

          (d)  TITLE TO AND CONDITION OF PROPERTIES.  The Seller owns, and
has good and marketable title to the Transferred Assets, free and clear of
any liens.  The Seller owns or possesses all rights to the name "Contra-
Pak".  The Seller has not received any notice of infringement,
misappropriation or conflict from any other Person with respect to such
name and, to the Seller's knowledge, the conduct of the business under the
name Contra-Pak has not infringed, misappropriated or otherwise conflicted
with any proprietary rights of any person.

          (e)  CONTRACTS AND COMMITMENTS.

               (i)   None of the Transferred Assets is subject to:

                    (1)  any agreement, contract or commitment requiring
                         the expenditure or series of related expenditures
                         of funds;

                    (2)  any agreement, contract or commitment requiring
                         the payment for goods or services whether or not
                         such goods or services are actually provided or
                         the provision of goods or services at a price
                         less than the Seller's cost of producing such
                         goods or providing such services;

                    (3)  any loan or advance to, or investment in, any
                         Person or any agreement, contract, commitment or
                         understanding relating to the making of any such
                         loan, advance or investment;

                    (4)  any debt obligations;

                    (5)  any management service, employment, consulting or
                         other similar type contract or agreement;

                                   -4-
<PAGE>
                    (6)  any agreement, contract or commitment that would
                         limit the freedom of the Purchaser or any
                         affiliate of the Purchaser following the Closing
                         Date to engage in any line of business, own,
                         operate, sell, transfer, pledge or otherwise
                         dispose of or encumber any of the Transferred
                         Assets or to compete with any Person or to engage
                         in any business or activity in any geographic
                         area;

                    (7)  any agreement, lease, contract or commitment or
                         series of related agreements, leases or
                         commitments not entered into in the ordinary
                         course of business of the Seller, not cancelable
                         by the Seller without penalty to the Seller
                         within 30 calendar days;

                    (8)  any agreement or contract obligating the Seller
                         or that would obligate or require any subsequent
                         owner of the business or any of the Transferred
                         Assets to provide for indemnification or
                         contribution with respect to any matter;

                    (9)  any sales, distributorship or similar agreement
                         relating to the products sold or services
                         provided by the Seller;

                    (10) any license, royalty or similar agreement; or

                    (11) any other agreement, contract or commitment that
                         might reasonably be expected to have a material
                         adverse effect on the value of any Transferred
                         Asset.

               (ii)  Except as set forth in the Disclosure Schedule, the
transfer of the Transferred Assets do not require the receipt of a consent
or waiver of any Person or governmental entity prior to the sale,
assignment, transfer, conveyance or delivery thereof pursuant to this
Agreement.

          (f)  NO VIOLATIONS OR LITIGATION.

               (i)   The Seller has not violated and currently is not in
violation of, and the consummation of the transactions contemplated hereby
will not cause any violation of, any order of any governmental entity or
any law, ordinance, regulation, order, requirement, statute, rule, permit,
concession, grant, franchise, license or other governmental authorization
relating or applicable to the Seller, or to the Transferred Assets.

               (ii)  There is no action, suit, claim, investigation or
legal, administrative, arbitration or other proceeding, or governmental
investigation or examination pending or, to the Seller's knowledge,
threatened against or affecting the Transferred Assets, at law or in
equity, before or by any governmental entity.

          (g)  CONDITION OF ASSETS.  The Transferred Assets are in good
operating condition, repair and working order and free of any known
defects.

                                   -5-
<PAGE>
          (h)  FINDER'S FEES.  The Seller has not employed or retained any
investment banker, broker, agent, finder or other party, or incurred any
obligation for brokerage fees, finder's fees or commissions, with respect
to the sale by the Seller of any of the Transferred Assets or with respect
to the transactions contemplated by this agreement, or otherwise dealt with
anyone purporting to act in the capacity of a finder or broker with respect
thereto whereby any party hereto may be obligated to pay such a fee or
commission.

          (i)  Neither this Agreement nor any other document or written
statement furnished to Purchaser by or on behalf of Seller in connection
with the transaction contemplated by this Agreement contains or will
contain any untrue statement of a material fact, or omits or will omit to
state any material fact necessary in order to make the statements contained
herein and therein not misleading.  There is no fact known to Seller which
adversely affects or in the future may materially adversely affect
Transferred Assets.  In the event that Seller becomes aware of any material
adverse effect that occurs, Seller shall promptly notify Purchaser in
writing prior to the closing date.

          (j)  INVESTMENT INTENT; RESTRICTED SECURITIES.

               (i)   Seller is acquiring the restricted shares of the
common stock of Purchaser which constitute a portion of the Purchase Price
for his own account for investment and not with a view to, or for sale in
connection with, any distribution of any thereof and with no present
intention of disposing of any thereof .  Seller acknowledges that such
securities have not been registered under the Securities Act or qualified
under applicable state securities laws and confirms to the Purchaser that
it understands the restrictions on resale of such securities imposed by
such laws including Rule 144 promulgated under the Securities Act and that
such securities may only be sold in limited circumstances.

               (ii)  Notwithstanding the provisions of Section 4(j)(i), the
Seller may transfer such securities in compliance with the provisions of
the Securities Act (including Rule 144 promulgated thereunder) and any
applicable provision of state law.  Prior to any transfer of such
securities otherwise than in an offering registered under the Securities
Act, the Seller will notify the Purchaser of its intention to effect such
transfer, indicating the circumstances of the proposed transfer and if
reasonably requested by the Purchaser, furnish the Purchaser with an
opinion of its counsel, in form and substance reasonably satisfactory to
counsel for the Purchaser, to the effect that the proposed transfer may be
made without registration under the Securities Act or qualification under
any applicable state securities laws; provided that the Purchaser agrees
that no opinion will be required for transfers under Rule 144 except in
unusual circumstances.  The Purchaser will promptly notify the Seller if
the opinion of counsel furnished to the Purchaser is reasonably
satisfactory to counsel for the Purchaser.  Unless the Purchaser notifies
the Seller within fourteen (14) days after the Seller furnishes it with
such opinion that such opinion is not reasonably satisfactory to counsel
for the Purchaser, the Seller may proceed to effect the transfer.

               (iii)  Notwithstanding the foregoing provisions and the
legend contained in Section 4(j)(iii), no such registration statement or
opinion of counsel will be necessary for a transfer by a corporation or
other person controlling, controlled by, or under common control with such
Seller (for purposes of this subsection, control will mean ownership of
securities

                                   -6-
<PAGE>
having at least a majority of the votes attributable to all outstanding
equity securities of the controlled corporation), or a distribution to a
shareholder of the Seller, or the transfer by gift, will or intestate
succession of any shareholder to his spouse or to the siblings, lineal
descendants or ancestors of such shareholder or his spouse, if the
transferee agrees in writing to be subject to the terms hereof to the same
extent as if he or she were the Seller hereunder and, in particular, agrees
to be bound by this Section 4(j).

               (iv)  The Seller understands that the Purchaser will place
the following legend and any other legend required by law on the
certificates representing the shares of restricted common stock issued in
connection with this Agreement:

          UNTIL JULY 18, 2003, THE SHARES REPRESENTED BY THIS
          CERTIFICATE AND THIS CERTIFICATE SHALL NOT BE SOLD,
          ASSIGNED, PLEDGED, HYPOTHECATED, OR OTHERWISE
          TRANSFERRED WITHOUT THE PRIOR WRITTEN CONSENT OF HOST
          AMERICA CORPORATION.  FURTHER, AND IN ADDITION TO THE
          FOREGOING, THE SECURITIES EVIDENCED BY THIS CERTIFICATE
          HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933 OR ANY APPLICABLE STATE LAW, AND NO INTEREST
          THEREIN MAY BE SOLD OR OTHERWISE TRANSFERRED, PLEDGED
          OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION AND
          QUALIFICATION WITHOUT AN OPINION OF LEGAL COUNSEL
          ACCEPTABLE TO THE ISSUER THAT SUCH REGISTRATION AND
          QUALIFICATION ARE NOT REQUIRED.

Subsequent to July 18, 2003, or upon the written consent of the Purchaser,
the Purchaser shall, upon the request of the Seller or any subsequent
holder of a stock certificate bearing the foregoing legend and the
surrender of such certificate, issue a new stock certificate without the
foregoing legend if (1) the stock evidenced by such certificate has been
effectively registered under the Securities Act and sold by the holder
thereof in accordance with such registration, or (2) such holder shall have
delivered to the Purchaser a written legal opinion reasonably acceptable to
the Purchaser to the effect that the restrictions set forth herein are no
longer required or necessary under any federal or state law or regulation.

               (v)  The Seller and the shareholders of the Seller have such
knowledge and experience in financial and business matters that the Seller
is capable of evaluating the risks of its investment in securities of the
Purchaser and is able to bear the economic risks of such investment.

          (k)  CUSTOMER LIST.  In Seller's core business of food service
sales, income from the customers listed on EXHIBIT A, SCHEDULE 1, was in
excess of $800,000 for the period from September 1, 2000 to the effective
date of this Agreement.

          (l)  TAX RETURN.  The tax return of Seller for the year 2000
reported on Form 1120

                                   -7-
<PAGE>
(the "Tax Return"), which form was provided to Purchaser as part of
Purchaser's due diligence in connection with this transaction, accurately
reflects income generated by Seller's core business of food service sales.

     5.   REPRESENTATIONS AND WARRANTIES OF PURCHASER.  The Purchaser
represents and warrants to the Seller as follows:

          (a)  CORPORATE MATTERS.  The Purchaser is a corporation duly
incorporated, validly existing and in good standing under the laws of the
State of Colorado.  The Purchaser has all requisite corporate power and
authority to enter into this Agreement and to perform its obligations under
this Agreement.  This Agreement, and all transactions contemplated hereby,
have been duly authorized and approved by all necessary corporate action on
the part of the Purchaser.  No further corporate action is necessary on the
part of the Purchaser to execute and deliver this Agreement or to
consummate the transactions contemplated hereby.  This Agreement has been
duly executed and delivered by the Purchaser and is a legal, valid and
binding obligation of the Purchaser, enforceable against it in accordance
with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws from
time to time in effect that affect creditors' rights generally and by legal
and equitable limitations on the availability of specific remedies.

          (b)  APPROVALS AND AUTHORIZATIONS.  No order, license, consent,
waiver, authorization or approval of, or exemption by, or the giving of
notice to, or the registration with, or the taking of any other action in
respect of, any person not a party to this Agreement, including any
governmental entity, and no filing, recording, publication or registration
in any public office or any other place is now, or under existing law in
the future will be, necessary on behalf of the Purchaser to authorize its
execution, delivery and performance of this Agreement or any other
agreement contemplated hereby to be executed and delivered by the Purchaser
and the consummation of the transactions contemplated hereby or thereby, or
to effect the legality, validity, binding effect or enforceability thereof.

          (c)  FINDER'S FEES.  The Purchaser has not employed or retained
any investment banker, broker, agent, finder or other party, or incurred
any obligation for brokerage fees, finder's fees or commissions, with
respect to the sale of the Transferred Assets or with respect to he
transactions contemplated by this Agreement, or otherwise dealt with anyone
purporting to act in the capacity of a finder or broker with respect
thereto whereby any part hereto may be obligated to pay such a fee or a
commission.

     6.   TRANSFER TAXES; RECORDING FEES.

          (a)  The Purchaser and the Seller acknowledge and agree that the
Purchase Price includes and is inclusive of any and all sales, use,
transfer or other similar taxes imposed as a result of the consummation of
the transactions contemplated by this Agreement and the Seller hereby
agrees to indemnify the Purchaser against, and agrees to protect, save and
hold the Purchaser harmless from, any loss, liability, obligation or claim
(whether or not ultimately successful) for sales, use, transfer or other
similar taxes (and any interest, penalties, additions

                                   -8-
<PAGE>
to tax and fines thereon or related thereto) imposed as a result of the
consummation of the transactions contemplated by this Agreement.

          (b)  The Purchaser shall pay any and all recording, filing or
other fees relating to the conveyance or transfer of the Transferred Assets
from the Seller to the Purchaser.

     7.   PROFESSIONAL FEES.  Purchaser and Seller shall each be
responsible for paying their respective professional advisors, including
attorneys and accountants.

     8.   PURCHASER'S CONDITIONS.  The obligation of the Purchaser to
purchase the Transferred Assets as contemplated hereby is, at the option of
the Purchaser, subject to the satisfaction on or before the Closing Date of
the conditions set forth below, any of which may be waived by the Purchaser
in writing.

          (a)  REPRESENTATIONS, WARRANTIES AND COVENANTS.  The
representations and warranties of the Seller and Hairston contained in this
Agreement shall be true, correct and complete in all material respects on
and as of the Closing Date with the same force and effect as though such
representations and warranties had been made or given on and as of the
Closing Date, except for such matters due to changes in facts from the date
hereof required or permitted by this Agreement.  Each and all of the
agreements and covenants of the Seller to be performed or complied with by
the Seller on or before the Closing Date pursuant to this Agreement shall
have been performed or complied with in all material respects.  The Seller
shall have delivered to the Purchaser a certificate signed by duly
authorized officers dated the Closing Date regarding the matters set forth
in this Section 8(a).

          (b)  GOOD STANDING.  The Seller shall have delivered to the
Purchaser a certificate issued by the Secretary of State of Texas and other
appropriate governmental entities evidencing the good standing of the
Seller, as of a date not more than five calendar days prior to the Closing
Date in the states or commonwealths in which it was organized or qualified
to do business as a corporation.  To the extent provided for under
applicable law, the Seller shall also have delivered to the Purchaser
certificates or other writings issued by appropriate governmental entities
evidencing that all applicable state franchise Taxes have been paid.

          (c)  INSTRUMENTS OF TRANSFER.  The Seller shall have executed,
acknowledged and delivered to the Purchaser such bills of sale, assignments
and other instruments of transfer, assignment and conveyance, in form and
substance mutually agreeable, as shall be necessary to vest in the
Purchaser all the right, title and interest in and to the Transferred
Assets.

          (d)  DISSOLUTION OF SELLER.  The Seller shall have prepared,
obtained all necessary corporate authorization for, executed and delivered
to the Purchaser documents in form and substance satisfactory to counsel
for the Purchaser sufficient to (i) dissolve the Seller in accordance with
the laws of the Seller's state of incorporation; and (ii) withdraw or
cancel its authority to transact business as a foreign corporation in any
jurisdiction wherein it has obtained such authority.

          (e)  NO LITIGATION.  No preliminary or permanent injunction or
other order of any governmental entity shall be in effect nor shall there
be in effect any statute, rule, regulation or

                                   -9-
<PAGE>
executive order promulgated or enacted by any governmental entity that, in
any such case prevents the consummation of  the transactions contemplated
by this Agreement.  No suit, action, claim, proceeding or investigation
before any governmental entity shall have been commenced or threatened by
any Person seeking to prevent the sale of the Transferred Assets or
asserting that the sale of all or a portion of the Transferred Assets would
be unlawful.

          (f)  RESOLUTIONS.  The Purchaser shall have received copies of
resolutions of the directors and shareholders of the Seller approving this
Agreement and the transactions contemplated hereby, certified by the
Secretary or an Assistant Secretary of the Seller.

          (g)  OTHER LEGAL MATTERS.  All Exhibits, Schedules, certificates,
documents and legal matters in connection with this Agreement and the
transactions contemplated hereby shall be in the form required by this
Agreement.

          (h)  LEGAL OPINION.  The Purchaser shall have received an opinion
of W. David Holliday, Attorney, counsel to the Seller, in substantially the
form attached to this Agreement as EXHIBIT C.

          (i)  NON-COMPETITION, NON-SOLICITATION AND EMPLOYMENT AGREEMENT.
Hairston shall have agreed to enter into an employment agreement with
Lindley Food Service Corporation, the wholly owned subsidiary of Purchaser
("Lindley") in substantially the form attached to this Agreement as EXHIBIT
D (the "Employment Agreement").

     9.   SELLER'S CONDITIONS.  The obligation of the Seller to transfer
the Transferred Assets as contemplated hereby is, at the option of the
Seller, subject to the satisfaction on or before the Closing Date of the
conditions set forth below, any of which may be waived by the Seller in
writing.

          (a)  REPRESENTATIONS, WARRANTIES AND COVENANTS.  The
representations and warranties of the Purchaser contained in this Agreement
shall be true, correct and complete on and as of the Closing Date with the
same force and effect as though such representations and warranties had
been made or given on and as of the Closing Date.  Each and all of the
agreements and covenants of the Purchaser to be performed or complied with
by it on or before the Closing Date pursuant to this Agreement shall have
been performed or complied with in all material respects.  The Purchaser
shall have delivered to the Seller a certificate signed by one of its duly
authorized officers, dated the Closing Date, regarding the matters set
forth in this Section 9(a).

          (b)  NO LITIGATION.  No preliminary or permanent injunction or
other order of any governmental entity shall be in effect nor shall there
be in effect any statute, rule, regulation or executive order promulgated
or enacted by any governmental entity that, in any such case, prevents the
consummation of the transactions contemplated by this agreement.  No suit,
action, claim, proceeding or investigation before any governmental entity
shall have been commenced or threatened by any Person seeking to prevent
the sale of the Transferred Assets or asserting that the sale of all or a
portion of the Transferred Assets would be unlawful.

                                  -10-
<PAGE>
          (c)  RESOLUTIONS.  The Seller shall have received copies of
resolutions or minutes of meetings of the directors of the Purchaser
approving this Agreement and the transactions contemplated hereby,
certified by the appropriate officer of the Purchaser.

     10.  CLOSING.

          (a)  Closing Date.  Closing shall take place on or before August
27, 2001, via teleconference, facsimile transmission of signature pages and
overnight delivery of originals.  Time is of the essence with this
agreement and the Closing and any change in the closing date shall require
the prior written agreement of Seller and Purchaser.

          (b)  At the closing, Seller shall deliver to Purchaser the
following:

               (i)   Bill of sale transferring all right, title and
interest in and to the Transferred Assets;

               (ii)  The Employment Agreement executed by Hairston and
Lindley;

               (iii) Corporate resolutions of Seller's Board of Directors
and Shareholders, in form satisfactory to counsel for Purchaser,
authorizing the execution and performance of this Agreement and all actions
to be taken by Seller under this Agreement as described in Section 8(f);

               (iv)  Certificate(s) of Good Standing as described in
Section 8(b);

               (v)   Instruments of Corporate Dissolution and Compliance as
described in Section 8(d);

               (vi)  Opinion of Counsel to Seller as described in Section
8(i); and

               (vii) Such other executed documents as may be reasonably
requested by Purchaser to effectuate the transaction contemplated hereby.

          (c)  At the closing, Purchaser shall deliver to Seller the
following:

               (i)   Same day funds in the amount of $145,870.

               (ii)  A stock certificate representing the requisite number
of shares of the restricted common stock of Purchaser in accordance with
Section 2(c).

     11.  ACCESS TO INFORMATION.  Until the Closing, the Seller will
furnish the Purchaser and its employees, officers, accountants, attorneys,
agents, investment bankers and other authorized representatives with all
information concerning the Transferred Assets as the Purchaser reasonably
shall request from time to time and will afford the Purchaser the
opportunity to ask questions of, and receive answers from, representatives
of the Seller with respect to the Transferred Assets.  No investigations by
the Purchaser or its employees, representatives or agents shall reduce or
otherwise affect the obligation or liability of the Seller or the
Shareholders with respect to any representations, warranties, covenants or
agreements

                                  -11-
<PAGE>
made in this Agreement or in any Exhibit, Schedule or other certificate,
instrument, agreement or document, including the Disclosure Schedule,
executed and delivered in connection with this Agreement.  The Seller will
cooperate with the Purchaser and its employees, officers, accountants,
attorneys, agents and other authorized representatives in the preparation
of any documents or other materials that may be required by any
governmental entity.

     12.  FURTHER ASSURANCES.  The Seller shall execute, acknowledge and
deliver or cause to be executed, acknowledged and delivered to the
Purchaser such bills of sale, assignments (including, but not limited to,
assignments of leases) and other instruments of transfer, assignment and
conveyance, in form and substance satisfactory to counsel for the
Purchaser, as shall be necessary to vest in the Purchaser all the right,
title and interest in and to the Transferred Assets free and clear of all
Liens and shall use its best efforts to cause to be taken such other action
as the Purchaser reasonably may require to more effectively implement and
carry into effect the transactions contemplated by this Agreement.

     13.  COMPLIANCE.

          (a)  The Seller shall use its best efforts to

               (i)   cause all of the obligations imposed upon it in this
Agreement to be duly complied with, and all conditions precedent to such
obligations to be satisfied; and

               (ii)  obtain any and all consents, waivers, amendments,
modifications, approvals, authorizations, notations and licenses necessary
to the consummation of the transactions contemplated by this Agreement.

          (b)  The Seller shall cause all Liens on the Transferred Assets
to be released as of the Closing Date.

     14.  INDEMNIFICATION; RESCISSION.  Purchaser and Seller agree to
protect, indemnify, and hold the other harmless against, and with respect
to, any loss, damage, or expense occasioned by any breach or alleged
breach, falsity, or failure of any of the representations, covenants,
warranties, or agreements of any such party contained herein or contained
in any document transferred between Purchaser and Seller in connection with
this transaction.  In the event of Seller's material misrepresentation of
the matters set forth in Sections 4(k) and 4(l), Purchaser shall have, in
addition to all other remedies provided hereby or any other remedies at law
or in equity, the right to rescind this transaction and immediately (a)
recover from Seller the cash portion of the Purchase Price paid in
accordance with Section 2(b) hereof, and (b) cancel the stock issued in
accordance with Section 2(c) hereof.  In the event of rescission and upon
repayment of the cash Purchase Price and return of the stock certificates
by Seller, Purchaser shall convey the Transferred Assets to Seller by Bill
of Sale and Hairston shall be immediately released from any obligation or
responsibility under his employment/non-compete agreement of even date
herewith.

     15.  RISK OF LOSS.  Pending closing, Seller shall keep all presently
existing insurance covering the Transferred Assets in effect.  All risk of
loss, until Closing, shall remain with the Seller.  In the event any of the
Transferred Assets shall be damaged by fire or other casualty

                                  -12-
<PAGE>
prior to the Closing Date, in an amount of not more than ten (10%) percent
of the total purchase price, Seller shall be obligated to repair the same
before closing or as soon thereafter as possible.  In the event such damage
cannot be repaired within said time, or if such damage shall exceed such
sum, this Agreement may be canceled at the option of the Purchaser.

     16.  TERMINATION.

          (a)  EVENTS OF TERMINATION.  The obligation to close the
transactions contemplated by this Agreement may be terminated by:

               (i)   mutual agreement of the Purchaser and the Seller;

               (ii)  the Purchaser, if a material default shall be made by
the Seller in the observance or in the due and timely performance by the
Seller of any agreements and covenants of the Seller herein contained, or
if there shall have been a breach by the Seller or Hairston of any of the
warranties and representations of the Seller herein contained, and such
default or breach has not been cured or has not been waived within 30 days
of written notice thereof;

               (iii) the Seller, if a material default shall be made by the
Purchaser in the observance or in the due and timely performance by the
Purchaser of any agreements and covenants of the Purchaser herein
contained, or if there shall have been a breach by the Purchaser of any of
the warranties and representations of the Purchaser herein contained, and
such default or breach has not been cured or has not been waived within 30
days of written notice thereof; or

               (iv)  the Purchaser or the Seller, provided the terminating
party has not materially breached any of its agreements, covenants,
representations or warranties, if the Closing shall not have occurred on or
before September 30, 2001.

          (b)  LIABILITY UPON TERMINATION.  If the obligation to close the
transactions contemplated by this Agreement is terminated pursuant to any
provision of this Section 16 then this Agreement shall forthwith become
void and there shall not be any liability or obligation with respect to the
terminated provisions of this Agreement on the part of the Seller or the
Purchaser except and to the extent such termination results from the
willful breach by a party of any of its representations, warranties or
agreements.

          (c)  NOTICE OF TERMINATION.  The parties hereto may exercise
their respective rights of termination under this Section 16 only by
delivering written notice to that effect to the other party; PROVIDED,
HOWEVER, that such notice must be received on or before the Closing Date.

     17.  MERGER.  This Agreement shall not be merged or extinguished, but
shall survive Closing.

     18.  GOVERNING LAW.  This Agreement shall be governed by, and its
terms construed under, the laws of the State of Colorado without regard to
its conflict of laws principles.

                                  -13-
<PAGE>
     19.  ENTIRE AGREEMENT.  This document contains the entire
understanding of Purchaser and Seller, and there are no warranties,
representations, or agreements between the parties which are not set forth
herein.  Any amendment hereto must be in writing and executed by both
parties.

     20.  ASSIGNMENT.  This Agreement may not be assigned by either party
without the prior written consent of the other party, which consent shall
not be unreasonably withheld.  Notwithstanding the foregoing, this
Agreement shall inure to, and be binding upon, the parties hereto, their
respective heirs, personal representatives, successors, and permitted
assigns.

        [The remainder of this page is left intentionally blank]

                                  -14-
<PAGE>
     IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of the ___ day of August, 2001.

                                   SELLER:
                                   CONTRA-PAK, INC., a Texas corporation

                                   By:  /s/ James Hairston
                                      ----------------------------------
                                        James Hairston, President

                                   HAIRSTON:

                                        /s/ James Hairston
                                   -------------------------------------
                                   James Hairston

                                   PURCHASER:
                                   HOST AMERICA CORPORATION, a Colorado
                                   corporation

                                   By:  /s/ Geoffrey Ramsey
                                      ----------------------------------
                                        Geoffrey Ramsey, President

                                  -15-

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