Document:

<PAGE>

                                LIST OF EXHIBITS

EXHIBIT A     List of Revenue Sharing Contracts with attached Equipment List

EXHIBIT B     Form of Assignment of Revenue Sharing Contracts

EXHIBIT C     RSi BRE Articles of Incorporation

EXHIBIT D     Form of Indemnification Agreement

EXHIBIT E     Form of Equipment Purchase Promissory Note

EXHIBIT F     Payment Allocation Schedule

EXHIBIT G     Form of Security Agreement

EXHIBIT H     Form of RSi BRE Stock Pledge Agreement

EXHIBIT I     Form of RoomSystems Guaranty

EXHIBIT J     Form of Escrow Agreement

EXHIBIT K     Form of First Amendment to Investor Rights Agreement

EXHIBIT L     Form of Bill of Sale

                                      -26-
<PAGE>

                                       13

                                    EXHIBIT A

                        LIST OF REVENUE SHARING CONTRACTS

1.    CONTRACT:       Master  Revenue  Sharing  Agreement,  dated as of
                      September  10,  1997,  by and between  RoomSystems Finance
                      Corporation  and Resort  Key Largo  Enterprises,
                      Inc., d/b/a Marriott's Key Largo Bay Beach Resorts

      EQUIPMENT:      153 (quantity), Model No. RS-5000, 22 Selection
                      Refreshment Center

                      1 (quantity), Model No. 586/133, Computer System including
                      1 130 MG File Server with VGA Monitor and 3 work stations
                      with Monochrome Monitors

2.    CONTRACT:       Hotel  Revenue  Sharing  Lease  Agreement,  dated as of
                      April 30, 1998,  by and between  RoomSystems
                      International  Funding  Corporation  and H. Park Central,
                      d/b/a Park Center Hotel

      EQUIPMENT:      260 (quantity), Model No. RS-5000, 22 Selection
                      Refreshment Center

                      1 (quantity), Model No. 586-133, RoomManagement Computer
                      System including all hardware and software

3.    CONTRACT:       Hotel Revenue Sharing Lease Agreement,  dated as of May 1,
                      1998, by and between RoomSystems International Funding
                      Corporation  and Herald Hotel  Associates, d/b/a Holiday
                      Inn Broadway

      EQUIPMENT:      532 (quantity), Model No. RS2000G, 16 Selection
                      Refreshment Center with Glass Door Option

                      532 (quantity), Model No. RSS100LB, 6" LowBoy Safe

                      1 (quantity), Model No. 586-133, RoomManagement Computer
                      System and Software Package

                                       A-1
<PAGE>

                                    EXHIBIT A

                        LIST OF REVENUE SHARING CONTRACTS
                                   (continued)

4.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of June 1,
                      1998, by and between RoomSystems International Funding
                      Corporation and JFK Acquisition Group, d/b/a
                      Hilton JFK Airport

      EQUIPMENT:      330 (quantity), Model No. RS 3000G, 19 Selection
                      Thermoelectric Refreshment Center with Glass Door

                      330 (quantity), Model No. RSS 100-LB, LowBoy RoomSafe

                      1 (quantity), Model No. 586-133, RoomManagement Computer
                      System and Software Package

5.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of
                      June 10, 1998, by and between RoomSystems International
                      Funding Corporation and Marriott Hotel Services, Inc.,
                      d/b/a J.W. Marriott Hotel, as agent for Square 245 Limited
                      Partnership

      EQUIPMENT:      772 (quantity), Model No. RS-2000, 15 Selection
                      Refreshment Center

                      772 (quantity), Model No. RSS-100LB, 6" LowBoy RoomSafe

                      1 (quantity), Model No. 586-133, RoomManagement Computer
                      System and Software Package

                                       A-2
<PAGE>

                                    EXHIBIT A

                        LIST OF REVENUE SHARING CONTRACTS
                                   (continued)

6.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of
                      June 15, 1998, by and between RoomSystems International
                      Funding Corporation and Hilton Inn North Little Rock
                      Riverfront

      EQUIPMENT:      220 (quantity), Model No. RS 5000G, 22 Selection
                      Refreshment Center

                      220 (quantity), Model No. RSS-100HB, Upright RoomSafe

                      1 (quantity), Model No. 586-133, RoomManagement Computer
                      System and Software Package

                                       A-3

<PAGE>

                                       14

                                    EXHIBIT B

                 FORM OF ASSIGNMENT OF REVENUE SHARING CONTRACTS

                                  See Attached.

                     ASSIGNMENT OF REVENUE SHARING CONTRACTS

     THIS ASSIGNMENT OF REVENUE SHARING CONTRACTS ("Assignment") is made and
entered into as of this _____ day of September, 1999 (the "Effective Date"), by
and between RSG INVESTMENTS, LLC, an Idaho limited liability company
("Assignor") and RSi BRE, INC., a Nevada corporation ("Assignee").

                              W I T N E S S E T H:

          WHEREAS, Assignor, Assignee and certain corporate affiliates of
Assignee have entered into an Equipment Transfer Agreement of even date herewith
(the "Equipment Transfer Agreement"); and

          WHEREAS, pursuant to the Equipment Transfer Agreement, Assignor has
agreed to assign to Assignee, Assignor's rights under the Revenue Sharing
Contracts (as defined in the Equipment Transfer Agreement).

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

          1.   DEFINITIONS. Capitalized terms not specifically defined herein
shall have the meanings ascribed thereto in the Equipment Transfer Agreement.

          2.   ASSIGNMENT. Except as specifically provided otherwise in the
Equipment Transfer Agreement, Assignor hereby assigns to Assignee all of its
right, title and interest in, to and under the Revenue Sharing Contracts and the
related Equipment listed on Schedule 1 hereto, effective as of the Effective
Date. In connection with the assignment created hereby, Assignor agrees to
execute and deliver any and all documents and instruments which Assignee may
request from time to time in order to carry out the purposes of this Assignment.

          3.   LOCKBOX AGREEMENT. Notwithstanding the assignment of the Revenue
Sharing Contracts provided for herein, Assignee acknowledges and agrees that the
Lockbox Agreement dated April 30, 1999 between Assignor and Assignee's corporate
affiliates shall remain in full force and effect.

          4.   COVENANT. Assignee covenants to perform, or cause to be
performed, from and after the Effective Date all of its obligations and duties
under the Revenue Sharing Contracts and related Maintenance Agreements.

          5.   PAYMENT ALLOCATION. Assignee acknowledges and agrees that the
assignment of the Revenue Sharing Contracts provided for herein is specifically
subject to Assignor's right to receive an allocation of all Payments from such
Revenue Sharing Contracts,

                                       -1-
<PAGE>

as provided in the Payment Allocation Schedule attached as Exhibit F to the
Equipment Transfer Agreement.

          6.   NO MERGER. THIS ASSIGNMENT DOES NOT, NOR SHALL IT BE DEEMED TO,
SUPERSEDE, SUPPLANT, EXTINGUISH, EXPAND OR MERGE ANY OF THE REPRESENTATIONS,
WARRANTIES, INDEMNITIES OR LIMITATIONS CONTAINED IN THE EQUIPMENT TRANSFER
AGREEMENT.

          7.   FURTHER ASSURANCES. Each party hereby promises to deliver upon
request of the other party all such additional assignments, assumptions, and
other documents which may be reasonably necessary and convenient to accomplish
the intent of this Assignment.

          8.   GOVERNING LAW. This Assignment shall be governed by the laws of
the State of Idaho without reference to conflict of laws principles.

                                    * * * * *

          IN WITNESS WHEREOF, the parties have caused this Assignment of
Contracts to be duly executed and delivered as of the day and year first set
forth above.

                  ASSIGNOR:        RSG INVESTMENT, LLC

                                   By:_________________________________________

                                   Print Name:_________________________________

                                   Title:______________________________________

                  ASSIGNEE:        RSi BRE, INC.

                                   By:_________________________________________

                                   Print Name:_________________________________

                                   Title:______________________________________

                                       -2-
<PAGE>

                                   Schedule 1

                           To Assignment of Contracts

1.    CONTRACT:       Master Revenue Sharing Agreement, dated as of
                      September 10, 1997, by and between RoomSystems Finance
                      Corporation and Resort Key Largo Enterprises, Inc., d/b/a
                      Marriott's Key Largo Bay Beach Resorts

      EQUIPMENT:      153 (quantity), Model No. RS-5000, 22 Selection
                      Refreshment Center

                      1 (quantity), Model No. 586/133,
                      Computer System including 1 130 MG File Server with VGA
                      Monitor and 3 work stations with Monochrome Monitors

2.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of
                      April 30, 1998, by and between RoomSystems International
                      Funding Corporation ("RIFC") and H. Park Central, d/b/a
                      Park Center Hotel

      EQUIPMENT:      260 (quantity), Model No. RS-5000, 22 Selection
                      Refreshment Center

                      1 (quantity), Model No. 586-133,
                      RoomManagement Computer System including all hardware and
                      software

3.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of May 1,
                      1998, by and between RIFC and Herald Hotel Associates,
                      d/b/a Holiday Inn Broadway

      EQUIPMENT:      532 (quantity), Model No. RS2000G, 16 Selection
                      Refreshment Center with Glass Door Option

                      532 (quantity), Model No. RSS100LB, 6" LowBoy Safe

                      1 (quantity), Model No. 586-133, RoomManagement Computer
                      System and Software Package

4.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of June 1,
                      1998, by and between RIFC and JFK Acquisition Group, d/b/a
                      Hilton JFK Airport

      EQUIPMENT:      330 (quantity), Model No. RS
                      3000G, 19 Selection Thermoelectric Refreshment Center with
                      Glass Door

                      330 (quantity), Model No. RSS 100-LB, LowBoy
                      RoomSafe

                      1 (quantity), Model No. 586-133, RoomManagement
                      Computer System and Software Package

5.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of
                      June 10, 1998, by and between RIFC and Marriott Hotel
                      Services, Inc., d/b/a J.W. Marriott Hotel, as agent for
                      Square 245 Limited Partnership

                                       -3-
<PAGE>

      EQUIPMENT:      772 (quantity), Model No. RS-2000, 15 Selection
                      Refreshment Center

                      772 (quantity), Model No. RSS100LB,
                      6" LowBoy RoomSafe

                      1 (quantity), Model No. 586-133,
                      RoomManagement Computer System and Software Package

6.    CONTRACT:       Hotel Revenue Sharing Lease Agreement, dated as of
                      June 15, 1998, by and between RIFC and Hilton Inn North
                      Little Rock Riverfront

      EQUIPMENT:      220 (quantity), Model No. RS 5000G, 22 Selection
                      Refreshment Center

                      220 (quantity), Model No. RS-100HB,
                      Upright RoomSafe 1 (quantity), Model No. 586-133,
                      RoomManagement Computer System and Software Package

                                       -4-

<PAGE>

                                       15

                                    EXHIBIT C

                        RSi BRE ARTICLES OF INCORPORATION

                                  See Attached.

                            ARTICLES OF INCORPORATION

                                       OF

                                  RSi BRE, INC.

                  The undersigned, acting as incorporator under the Nevada
Private Corporations Act, adopts the following Articles of Incorporation:

                                    ARTICLE I
                             NAME OF THE CORPORATION

                  The name of the corporation is RSi BRE, Inc. (the
"Corporation").

                                   ARTICLE II
                           PURPOSES OF THE CORPORATION

                  The purpose for which the Corporation is organized is limited
solely to: (a) owning and servicing certain automated refreshment centers and
their related revenue sharing contracts; and (b) transacting any and all lawful
business for which a corporation may be organized under the Nevada Private
Corporations Act that is incident, necessary and appropriate to accomplish the
foregoing.

                                   ARTICLE III
                 PROHIBITIONS AND LIMITATIONS ON THE CORPORATION

                  A. The Corporation is prohibited from incurring indebtedness,
except (i) as it is liable for certain indebtedness, liabilities and obligations
to RSG Investments, LLC, an Idaho limited liability company ("RSG"), and (ii) as
it is liable for certain liabilities and obligations of RoomSystems, Inc., and
RoomSystems International Corporation (collectively "RoomSystems") to RSG solely
in connection with that certain Equipment Transfer Agreement to be entered into
between the Corporation, RSG and RoomSystems, and all related agreements and
transactions referenced in and contemplated by such Equipment Transfer
Agreement.

                  B. The Corporation is prohibited from engaging in any
dissolution, liquidation, consolidation, merger or sale of assets for so long as
any promissory note or other indebtedness or obligation to RSG remains
outstanding, notwithstanding any other provision of these Articles and any
provision of law which otherwise so empowers the Corporation.

<PAGE>

ARTICLES OF INCORPORATION - 1

                  C. The Corporation may enter into transactions with affiliates
only on an arms-length basis and on commercially reasonable terms.

                  D. The Corporation may not authorize or issue additional
shares of its capital stock, or any warrant or option therefor.

                                   ARTICLE IV
                             SEPARATENESS COVENANTS

                  The Corporation covenants as follows:

                    a.   to maintain books and records separate from any other
                  person or entity;

                    b.   to maintain bank accounts separate from any other
                  person or entity;

                    c.   not to commingle its assets with those of any other
                  person or entity and to hold all of its assets in its own
                  name;

                    d.   to conduct its own business in its own name;

                    e.   to maintain separate financial statements, showing its
                  assets and liabilities separate and apart from those of
                  any other person or entity and not to have its assets
                  listed on the financial statement of any other entity;

                    f.   to file its tax returns separate from those of any
                  other entity and not to file a consolidated federal
                  income tax return with any other corporation;

                    g.   to pay its own liabilities and expenses only out of its
                  own funds;

                    h.   as appropriate for the organizational structure of the
                  corporation, to observe all corporate and other organizational
                  formalities;

                    i.   to maintain an arms-length relationship with its
                  affiliates and to enter into transactions with affiliates
                  only on a commercially reasonable basis;

<PAGE>

ARTICLES OF INCORPORATION - 2

                    j.   to pay the salaries of its own employees from its own
                  funds;

                    k.   to maintain a sufficient number of employees in light
                  of its contemplated business operations;

                    l.   not to guarantee or become obligated for the debts of
                  any other entity or person;

                    m.   not to hold out its credit as being available to
                  satisfy the obligations of any other person or entity;

                    n.   not to acquire the obligations or securities of its
                  affiliates or owners, including partners, members or
                  shareholders, as appropriate;

                    o.   not to make loans to any other person or entity or to
                  buy or hold evidence of indebtedness issued by any other
                  person or entity (except for cash and investment grade
                  securities);

                    p.   to allocate fairly and reasonably any overhead expenses
                  that are shared with an affiliate, including paying for
                  office space and services performed by any employee of
                  an affiliate;

                    q.   to use separate stationery, invoices and checks bearing
                  its own name;

                    r.   not to pledge its assets for the benefit of any other
                  person or entity;

                    s.   to hold itself out as a separate entity;

                    t.   to correct any known misunderstanding regarding its
                  separate identity;

                    u.   not to identity itself as a division of any other
                  person or entity; and

                    v.   to maintain adequate capital in light of its
                  contemplated business operation.
<PAGE>

ARTICLES OF INCORPORATION - 3

                                    ARTICLE V
                             "INDEPENDENT DIRECTOR"

                  The Corporation shall have at least one "independent
director." "Independent" shall mean a director who is not, at the time of
initial appointment, and has not been at any time during the preceding five (5)
years: (a) a stockholder, director, officer, employee, partner, counsel, member,
or manager of the Corporation or any affiliate thereof; (b) a customer, supplier
or other person who derives more that 10% of its purchases or revenues from its
activities with the Corporation or any affiliate thereof; (c) a person or other
entity controlling or under common control with any such stockholder, partner,
customer, supplier, member, manager or other person. As used herein, the term
"control" means possession, directly or indirectly, of the power to direct or
cause the direction of management, policies or activities of a person or entity,
whether through ownership of voting securities, by contract or otherwise.

                                   ARTICLE VI
                                 DIRECTOR VOTING

                  The UNANIMOUS consent of all directors (including the consent
of the Independent Director) is required for the Corporation to:

                           a. File or consent to the filing of any bankruptcy,
                  insolvency or reorganization case or proceeding; institute any
                  proceedings under any applicable solvency law or otherwise
                  seek relief under any laws relating to the relief from debts
                  or the protection of debtors generally;

                           b. Seek or consent to the appointment of a receiver,
                  liquidator, assignee, trustee, sequestrator, custodian or any
                  similar official for the Corporation or for a substantial
                  portion of its assets or properties;

                           c. Make any assignment for the benefit of creditors
                  of the Corporation;

                           d. Amend these Articles of Incorporation;

                           e. Make any disbursements out of the Corporation's
                  escrow/operating account;

                           f. Forgive,  release or discharge any debt or
                  obligation owed to the Corporation;
<PAGE>

ARTICLES OF INCORPORATION - 4

                           g. Sell or substitute any mini-bar units owned by the
                  Corporation;

                           h. Cause the Corporation to become a surety,
                  guarantor or endorser (except checks and drafts for deposit to
                  the Corporation's account);

                           i. Approve and amend the Corporation's annual budget;

                           j. Appoint directors (in the event of resignation,
                  until the next shareholders meeting), or other officers and to
                  fix their remunerations;

                           k. Purchase or sell any noncurrent assets, if the
                  aggregate amount of such purchase or sale (or series of
                  related purchases and sales) in any fiscal year exceeds
                  $10,000.00, excluding the purchase or sale of any noncurrent
                  assets provided for in a previously approved annual budget;

                           l. Except for amounts spent to acquire current assets
                  employed in the ordinary course of the Corporation's business,
                  enter into any contract (including without limitation any
                  lease or other oral or written agreement) or expenditure of
                  money not provided for in a previously approved annual budget,
                  if the amount involved in the contract or expenditure of money
                  (or series of related contracts or expenditures of money) in
                  any fiscal year exceeds $10,000.00;

                           m. Make any capital investment in excess of
                  $10,000.00;

                           n. Make Any loan, advance, dividend, compensation,
                  reimbursement or other payment or distribution (in cash or
                  kind) to, or contract or transaction by the Corporation with,
                  any shareholder or any person or entity affiliated in any way
                  with any shareholder, except to the extent required under
                  applicable law, and except that reasonable out-of-pocket
                  expenses incurred on behalf of the Corporation in connection
                  with its business will be reimbursed by Corporation within
                  limits provided in the annual budget and as otherwise approved
                  or limited by the Board of Directors specifically or by
                  guideline;

<PAGE>

ARTICLES OF INCORPORATION - 5

                           o. Approve the transfer of any shares of capital
                  stock or other direct or indirect ownership interest in the
                  Corporation;

                           p. Initiate any claim or suit by the Corporation
                  against any person or entity;

                           q. Except the Equipment Purchase Promissory Note
                  issued to RSG and the Security Agreement related thereto,
                  issue any promissory note or other evidence of indebtedness or
                  the granting of any mortgage, deed or other security interest
                  with respect to any assets of the Corporation;

                           r. Select the Corporation's general counsel,
                  certified public accountant and auditor, and elect all
                  accounting and tax elections and methods;

                           s. Approve, or recommend to the shareholders, any
                  merger, consolidation or other business combination, or sale
                  of all or substantially all of the Corporation's assets;

                           t. Set policies and guidelines on employee
                  compensation, which policies and guidelines will be reviewed
                  by the Board at least annually;

                           u. Dissolve and/or liquidate the Corporation;

                           v. Approve any long-term contracts or agreements,
                  including any new revenue sharing contracts and/or maintenance
                  agreements with hotels;

                           w. Change the nature of the business or long-range
                  plans of the Corporation;

                           x. Approve a transaction or other matter involving a
                  material actual or potential conflict of interest with any
                  shareholder, the Corporation or an affiliate thereof;

                           y. Approval of any material transaction with any
                  shareholder or person or entity with whom any shareholder or
                  the Corporation does not deal at arm's length, unless such
                  transaction provides for the sale of goods or the provision of
                  services by such shareholder or person or entity for a
                  consideration that is not
<PAGE>

ARTICLES OF INCORPORATION - 6

                  greater than the consideration that would be paid by a bona
                  fide purchaser for similar goods or services in the open
                  market; or

                           z. take any action in furtherance of the foregoing.

                                   ARTICLE VII
                                     SHARES

                  The aggregate number of shares the Corporation is authorized
to issue shall be 100, all of which shall be common voting stock, no par value.

                                  ARTICLE VIII
                                PREEMPTIVE RIGHTS

                  No stockholder of this Corporation shall have any preemptive
rights with respect to (i) any shares of any class of stock of the Corporation,
whether now or hereafter authorized, (ii) any warrants, rights, or options to
purchase any such shares, or (iii) any obligations convertible into any such
shares or into warrants, rights or options to purchase any such shares;

                                   ARTICLE IX
                                     VOTING

                  Each outstanding share entitled to vote shall be entitled to
one (1) vote on each matter submitted to a vote at a meeting of shareholders.
Shareholders do not have the right to cumulate their votes for directors.

                                    ARTICLE X
                           REGISTERED OFFICE AND AGENT

                  The address of the registered office of the Corporation is
___________________, ____________, Nevada, ________, and the name of its initial
registered agent as such address is __________.

                                   ARTICLE XI
                               BOARD OF DIRECTORS

                  A. The number of directors constituting the initial board of
directors of the Corporation is three (3), and the names and address of such
person to serve as the initial directors are as follows:

           NAME                                          ADDRESS

           Derek K. Ellis                                390 North 3050 East

<PAGE>

ARTICLES OF INCORPORATION - 7

                                    St. George, Utah 84790

      Donnelly Prehn                412 E. ParkCenter Blvd., Suite 300
                                    Boise, Idaho 83706

      [Independent Director]
                                     -------------------------------------------

                                     -------------------------------------------

                  B. Notwithstanding anything in these Articles of
Incorporation, the Bylaws or applicable law to the contrary, the Board of
Directors of this Corporation shall at all times include Donnelly Prehn or his
designee.

                                   ARTICLE XII
                             LIMITATION OF LIABILITY

                  To the fullest extent provided by law, no director shall be
liable to the Corporation or its stockholders for monetary damages for breach of
fiduciary duty if such director acted in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the
Corporation and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful.

                                  ARTICLE XIII
                                 INDEMNIFICATION

                  The Corporation shall indemnify the directors and officers of
the Corporation to the fullest extent permitted by the Nevada Private
Corporations Act, as the same exists or may hereafter be amended (but, in the
case of any such amendment, only to the extent that such amendment permits the
Corporation to provide broader indemnification rights than the Nevada Private
Corporations Act permitted the Corporation to provide prior to such amendment).

                                   ARTICLE XIV
                                  INCORPORATOR

                  The name and address of the incorporator is:

                  NAME                            ADDRESS

                  Derek K. Ellis                  390 North 3050
                                                  St. George, Utah 84790

<PAGE>

ARTICLES OF INCORPORATION - 8

                  For the purpose of forming this Corporation under the laws of
the State of Nevada, the undersigned has executed these Articles of
Incorporation on ___________, 1999.

                                   --------------------------------------------
                                   Derek K. Ellis, Incorporator

<PAGE>

ARTICLES OF INCORPORATION - 9

                                       16

                                    EXHIBIT D

                        FORM OF INDEMNIFICATION AGREEMENT

                                  See Attached.

                            INDEMNIFICATION AGREEMENT

                  THIS INDEMNIFICATION AGREEMENT (this "AGREEMENT"), dated as of
September _______, 1999, is made between RoomSystems, Inc., a Nevada corporation
("ROOMSYSTEMS"), RSi BRE, INC., a Nevada corporation (the "COMPANY"), and
DONNELLY PREHN "INDEMNITEE").

                                R E C I T A L S:

                  A.       The Company is a wholly-owned subsidiary of
RoomSystems.

                  B. Indemnitee is a director of the Company and in such
capacity is performing valuable services for the Company.

                  C. The Company and Indemnitee further recognize the
substantial increase in litigation, subjecting directors and officers to
expensive litigation risks at the same time that such liability insurance has
been severely limited.

                  D. The Company's Articles of Incorporation ("ARTICLES") and
Bylaws ("BYLAWS") provide for indemnification of the officers, directors, agents
and employees of the Company to the full extent permitted by the Nevada Private
Corporation Acts (the "STATUTE").

                  E. The Articles and Bylaws and the Statute specifically
provide that they are not exclusive, and thereby contemplate that contracts may
be entered into between the Company and its directors and officers with respect
to indemnification of such directors and officers.

                               A G R E E M E N T:

                  In consideration of the Recitals above, the mutual covenants
and agreements herein contained, and Indemnitee's continued service as a
director of the Company after the date hereof, the parties to this Agreement
agree as follows:

                  1.       Indemnification of Indemnitee.

                           1.1      SCOPE.  RoomSystems and the Company, jointly
and severally, agree to hold harmless and indemnify Indemnitee to the full
extent provided under the provisions of the Company's Articles and Bylaws, and
to the full extent permitted by law, notwithstanding that the basis for such
indemnification is not specifically enumerated in this Agreement, the Company's
Articles, the Bylaws, any statute or otherwise. In the event of any change,
after the date of this Agreement, in any applicable law, statute or rule
regarding the right of a Nevada corporation to indemnify a member of its board
of directors or an officer, such change, to the extent that it would expand
Indemnitee's rights hereunder, shall be included within Indemnitee's rights and
RoomSystems' and the Company's obligations hereunder, and to the extent that it
would narrow Indemnitee's rights or RoomSystems' or the Company's obligations
hereunder,

                                       -1-

<PAGE>

shall not affect or limit the scope of this Agreement; PROVIDED, HOWEVER, that
in no event shall any part of this Agreement be construed so as to require
indemnification when such indemnification is not permitted by then applicable
law.

                           1.2      NONEXCLUSIVITY.  The indemnification
provided by this Agreement shall not be deemed exclusive of any rights to which
Indemnitee may be entitled under the Company's Articles, the Bylaws, any
agreement, any vote of shareholders or disinterested directors, the Statute, or
otherwise, whether as to action in Indemnitee's official capacity or otherwise.

                           1.3.     INCLUDED  COVERAGE.  If Indemnitee was or is
made a party, or is threatened to be made a party to, or is otherwise involved
(including, without limitation, as a witness) in any Proceeding (as defined
below), RoomSystems and the Company, jointly and severally, shall hold harmless
and indemnify Indemnitee from and against any and all losses, claims, damages
(compensatory, exemplary, punitive or otherwise), liabilities or expenses,
including, without limitation, attorneys' fees, costs, judgments, fines, ERISA
excise taxes or penalties, witness fees, amounts paid in settlement and other
expenses incurred in connection with the investigation, defense, settlement or
approval of such Proceeding (collectively, "DAMAGES").

                           1.4      DEFINITION OF PROCEEDING.  For purposes of
this Agreement, "PROCEEDING" shall mean any completed, actual, pending or
threatened action, suit, claim, hearing or proceeding, whether civil, criminal,
arbitrative, administrative, investigative or pursuant to any alternative
dispute resolution mechanism (including an action by or in the right of
RoomSystems or the Company) and whether formal or informal, in which Indemnitee
is, was or becomes involved by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company or that, being or having
been such a director, officer, employee or agent, Indemnitee is or was serving
at the request of Roomsystems or the Company as a director, officer, employee,
trustee or agent of another corporation or of a partnership, limited liability
company, joint venture, trust or other enterprise (collectively, a "RELATED
COMPANY"), including service with respect to an employee benefit plan, whether
the basis of such proceeding is alleged action (or inaction) by Indemnitee in an
official capacity as a director, officer, employee, trustee or agent or in any
other capacity while serving as a director, officer, employee, trustee or agent.

                           1.5      DETERMINATION OF ENTITLEMENT.   In the
event that a determination of Indemnitee's entitlement to indemnification is
required pursuant to the Statute or a successor statute or pursuant to other
applicable law, the appropriate decision-maker shall make such determination;
PROVIDED, HOWEVER, that Indemnitee shall initially be presumed in all cases to
be entitled to indemnification, that Indemnitee may establish a conclusive
presumption of any fact necessary to such a determination by delivering to
RoomSystems and the Company a declaration made under penalty of perjury that
such fact is true and that, unless the Company shall deliver to Indemnitee
written notice of a determination that Indemnitee is not entitled to
indemnification within twenty (20) calendar days after the Company's receipt of
Indemnitee's initial written request for indemnification, such determination
shall conclusively be deemed to have been made

                                       -2-
<PAGE>

in favor of RoomSystems' and the Company's provision of indemnification, and
that the RoomSystems and the Company hereby agree not to assert otherwise.

                           1.6      CONTRIBUTION.   If the indemnification
provided under Section 1.1 is unavailable by reason of a court decision, based
on grounds other than any of those set forth in paragraphs (b) through (d) of
SECTION 4.1, then, in respect of any Proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such Proceeding), RoomSystems
and/or the Company shall contribute to the amount of Damages (including
attorneys' fees) actually and reasonably incurred and paid or payable by
Indemnitee in such proportion as is appropriate to reflect (i) the relative
benefits received by the Company on the one hand and Indemnitee on the other
hand from the transaction from which such Proceeding arose, and (ii) the
relative fault of the Company on the one hand and of Indemnitee on the other
hand in connection with the events that resulted in such Damages, as well as any
other relevant equitable considerations. The relative fault of the Company on
the one hand and of Indemnitee on the other hand shall be determined by
reference to, among other things, the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent the circumstances
resulting in such Damages. RoomSystems and the Company agree that it would not
be just and equitable if contribution pursuant to this SECTION 1.6 were
determined by pro rata allocation or any other method of allocation that does
not take account of the foregoing equitable considerations.

                           1.7      SURVIVAL.  The indemnification and
contribution provided under this Agreement shall apply to any and all
Proceedings, notwithstanding that Indemnitee has ceased to serve the Company or
a Related Company and shall continue so long as Indemnitee shall be subject to
any possible Proceeding, whether civil, criminal or investigative, by reason of
the fact that Indemnitee was a director of the Company or serving in any other
capacity referred to in SECTION 1.4 of this Agreement.

                  2.       EXPENSE ADVANCES.

                           2.1      GENERALLY.  The right to indemnification of
Damages conferred by Section 1 shall include the right to have RoomSystems and
the Company pay Indemnitee's expenses in any Proceeding as such expenses are
incurred and in advance of such Proceeding's final disposition (such right, and
"EXPENSE ADVANCE").

                           2.2      CONDITIONS TO EXPENSE ADVANCE.  RoomSystems'
and the Company's obligation to provide an Expense Advance is subject to the
following conditions:

                                    (a) UNDERTAKING. If the Proceeding arose in
                  connection with Indemnitee's service as a director of the
                  Company (and not in any other capacity in which Indemnitee
                  rendered service, including service to any Related Company),
                  then Indemnitee or Indemnitee's representative shall have
                  executed and delivered to the Company an undertaking, which
                  need not be

                                       -3-

<PAGE>

                  secured and shall be accepted without reference to
                  Indemnitee's financial ability to make repayment, by or on
                  behalf of Indemnitee to repay all Expense Advances if it shall
                  ultimately be determined by a final, unappealable decision
                  rendered by a court having jurisdiction over the parties that
                  Indemnitee is not entitled to be indemnified under this
                  Agreement.

                                    (b) COOPERATION. Indemnitee shall give
                  RoomSystems and the Company such information and cooperation
                  as they may reasonably request and shall be within
                  Indemnitee's legal power to provide.

                                    (c) AFFIRMATION. Indemnitee shall furnish,
                  upon request by RoomSystems or the Company and if required
                  under applicable law, a written affirmation of Indemnitee's
                  good faith belief that any applicable standards of conduct
                  have been met by Indemnitee.

                  3.       PROCEDURES FOR ENFORCEMENT.

                           3.1      ENFORCEMENT.  In the event that any claim
for indemnification, whether an Expense Advance or otherwise, is made hereunder
and is not paid in full within thirty (30) calendar days after written notice of
such claim is delivered to RoomSystems and the Company, Indemnitee may, but need
not, at any time thereafter bring suit against RoomSystems and the Company to
recover the unpaid amount of the claim (an "ENFORCEMENT ACTION").

                           3.2      PRESUMPTIONS IN ENFORCEMENT ACTION. In any
Enforcement Action, the following presumptions (and limitations on presumptions)
shall apply:

                                    (a) RoomSystems and the Company expressly
                  affirm and agree that they have entered into this Agreement
                  and assumed the obligations imposed on them hereunder to
                  induce Indemnitee to continue as a director of the Company;
                  and

                                    (b) Neither (i) the failure of the Company
                  (including the Company's Board of Directors, independent or
                  special legal counsel or the company's shareholders) to have
                  made a determination prior to the commencement of the
                  Enforcement Action that indemnification of the Indemnitee is
                  proper in the circumstances, nor (ii) an actual determination
                  by the Company, its Board of Directors, independent or special
                  legal counsel or shareholders that Indemnitee is not entitled
                  to indemnification shall be a defense to the Enforcement
                  Action or create a presumption that Indemnitee is not entitled
                  to indemnification hereunder.

                                       -4-
<PAGE>

                           3.3      ATTORNEYS' FEES AND EXPENSES FOR ENFORCEMENT
ACTION. In the event Indemnitee is required to bring an Enforcement Action,
RoomSystems and/or the Company shall pay all of Indemnitee's fees and expenses
in bringing and pursuing the Enforcement Action (including attorneys' fees and
at any stage, including on appeal), PROVIDED, HOWEVER, that neither RoomSystems
nor the Company shall be required to provide such payment for such attorneys'
fees or expenses if a court of competent jurisdiction determines that each of
the material assertions made by Indemnitee in such Enforcement Action was not
made in good faith.

                  4.       LIMITATIONS ON INDEMNITY; MUTUAL ACKNOWLEDGMENT.

                           4.1      LIMITATIONS ON INDEMNITY. No indemnity
pursuant to this Agreement shall be provided by RoomSystems or the Company:

                                    (a) For Damages that have been paid directly
                  to Indemnitee by an insurance carrier under a policy of
                  insurance maintained by the Company or by RoomSystems on
                  behalf of the Company;

                                    (b) With respect to remuneration paid to
                  Indemnitee if it shall be determined by a final judgment or
                  other final adjudication that such remuneration was in
                  violation of law;

                                    (c) On account of Indemnitee's conduct which
                  is finally adjudged by a court having jurisdiction in the
                  matter to have been intentional misconduct, a knowing
                  violation of the Statute or any successor provisions of the
                  Statute, or other applicable law, or a transaction from which
                  Indemnitee derived an improper personal benefit; or

                                    (d) If a final decision by a court having
                  jurisdiction in the matter with no further right of appeal
                  shall determine that such indemnification is not lawful.

                           4.2      PARTIAL  INDEMNIFICATION.  If Indemnitee is
entitled under any provision of this Agreement to indemnification by RoomSystems
or the Company for some or a portion of any Damages in connection with
Proceeding, but not, however, for the total amount thereof, RoomSystems and the
Company shall nevertheless indemnify Indemnitee for the portion of such Damages
to which Indemnitee is entitled.

                           4.3      MUTUAL  ACKNOWLEDGMENT.  RoomSystems and the
Company and Indemnitee acknowledge that, in certain instances, federal law or
public policy may override applicable state law and prohibit RoomSystems and the
Company from indemnifying Indemnitee under this Agreement or otherwise. For
example, parties acknowledge that the SEC has taken the position that
indemnification is not permissible for liabilities arising under certain federal

                                       -5-

<PAGE>

securities laws, and federal legislation prohibits indemnification for certain
ERISA violations. Furthermore, Indemnitee understands and acknowledges that
RoomSystems may be required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for
determination of its right under public policy to indemnity Indemnitee.

                  5.       NOTIFICATION AND DEFENSE OF CLAIM.

                           5.1      NOTIFICATION.   Promptly after receipt by
Indemnitee of notice of the commencement of any Proceeding, Indemnitee shall, if
a claim in respect thereof is to be made against RoomSystems and the Company
under this Agreement, notify RoomSystems and the Company of the commencement
thereof; but the omission so to notify RoomSystems and/or the Company will not,
however, relieve RoomSystems and the Company from any liability which they may
have to Indemnitee under this Agreement unless and only to the extent that such
omission can be shown to have prejudiced Roomsystems' or the Company's ability
to defend the Proceeding.

                           5.2      INSURANCE.  If,  at the time of receipt of
notice of a claim pursuant to SECTION 5.1, RoomSystems or the Company has
director and officer liability insurance in effect, RoomSystems or the Company,
as applicable, shall give prompt notice of the commencement of such proceeding
to the insurers in accordance with the procedures set forth in the respective
policies. RoomSystems and the Company shall take all necessary or desirable
action to cause such insurers to pay, on behalf of the Indemnitee, all amounts
payable as a result of such Proceeding in accordance with the terms of such
policies.

                           5.3      DEFENSE OF CLAIM.  With respect to any such
Proceeding as to which Indemnitee notifies RoomSystems and the Company of the
commencement thereof:

                                    (a)     RoomSystems and the Company may
                  participate  therein at their own expense;

                                    (b) RoomSystems and/or the Company may
                  assume the defense thereof, with counsel satisfactory to
                  Indemnitee. After notice from RoomSystems or the Company to
                  Indemnitee of its/their election so to assume the defense
                  thereof, neither RoomSystems nor the Company shall be liable
                  to Indemnitee under this Agreement for any legal or other
                  expenses (other than reasonable costs of investigation)
                  subsequently incurred by Indemnitee in connection with the
                  defense thereof unless (i) the employment of counsel by
                  Indemnitee has been authorized by RoomSystems or the Company,
                  (ii) Indemnitee shall have reasonably concluded that there may
                  be a conflict of interest between RoomSystem and/or the
                  Company (or any other person or persons included in the joint
                  defense) and Indemnitee in the conduct of the defense of such
                  action, (iii) neither RoomSystems

                                       -6-

<PAGE>

                  nor the Company shall have, in fact, employed counsel to
                  assume the defense of such action, in each of which cases the
                  fees and expenses of counsel shall be at RoomSystems' and the
                  Company's expense, or (iv) either RoomSystems or the Company
                  is not financially or legally able to perform its
                  indemnification obligations. Neither RoomSystems nor the
                  Company shall be entitled to assume the defense of any
                  proceeding brought by or on behalf of RoomSystems and/or the
                  Company or as to which Indemnitee shall have reasonably made
                  the conclusion provided for in clause (ii) or (iv) above;

                                    (c) Neither RoomSystems nor the Company
                  shall be liable to indemnify Indemnitee under this Agreement
                  for any amounts paid in settlement of any Proceeding effected
                  without RoomSystems' and the Company's written consent;

                                    (d) Neither RoomSystems nor the Company
                  shall settle any action or claim in any manner that would
                  impose any penalty or limitation on Indemnitee without
                  Indemnitee's written consent; and

                                    (e) Neither RoomSystems, the Company nor
                  Indemnitee will unreasonably withhold its or his consent to
                  any proposed settlement.

                  6.       SEVERABILITY.

                           Nothing in this Agreement is intended to require or
shall be construed as requiring RoomSystems or the Company to do or to fail to
do any act in violation of applicable law. RoomSystems' and the Company's
inability, pursuant to court order, to perform their obligations under this
Agreement shall not constitute a breach of this Agreement. The provisions of
this Agreement shall be severable, as provided in this SECTION 6. If this
Agreement or any portion hereof shall be invalidated on any ground by any court
of competent jurisdiction, then RoomSystems and the Company shall nevertheless
indemnify or make contribution to Indemnitee to the full extent permitted by any
applicable portion of this Agreement that shall not have been invalidated, and
the balance of this Agreement not so invalidated shall be enforceable in
accordance with its terms.

                  7.       GOVERNING LAW; ATTORNEYS' FEES.

                           7.1      GOVERNING LAW AND VENUE.  This Agreement
shall be governed by, construed, interpreted and applied in accordance with the
laws of the State of Idaho, without giving effect to any conflict of laws rules
that would refer the matter to the laws of another jurisdiction. In the event
any action or dispute is initiated hereunder, each party hereto hereby

                                       -7-
<PAGE>

irrevocably submits to the exclusive jurisdiction of the courts of the State of
Idaho in Ada County, for the purposes of any action arising out of this
Agreement, or the subject matter hereof or thereof. To the extent permitted by
applicable law, each party hereby waives and agrees not to assert, by way of
motion, as a defense or otherwise in any such action, any claim (i) that it is
not subject to the jurisdiction of the above-named courts, (ii) that the action
is brought in an inconvenient forum, (iii) that it is immune from any legal
process with respect to itself or its property, (iv) that the venue of the suit,
action or proceeding is improper or (v) that this Agreement, or the subject
matter hereof, may not be enforced in or by such courts.

                           7.2      ATTORNEYS' FEES. The prevailing  party in
any action or proceeding relating to this Agreement shall be entitled to recover
from the non-prevailing parties, reasonable attorneys' fees and other costs
incurred with or without trial, in bankruptcy or on appeal, in addition to any
other relief to which such prevailing party may be entitled.

                  8.       BINDING EFFECT.

                           This Agreement shall be binding on Indemnitee and on
RoomSystems and the Company and its successors and assigns (including any
transferee or all or substantially all of their assets and any successor by
merger or otherwise by operation of law), and shall inure to the benefit of
Indemnitee and Indemnitee's heirs, personal representatives and assigns and to
the benefit of RoomSystems and the Company and their successors and assigns.
Neither RoomSystems nor the Company shall effect any merger, consolidation, sale
of all or substantially all of its assets or other reorganization in which it is
not the surviving entity, unless the surviving entity agrees in writing to
assure all of RoomSystems' and the Company's obligations under this Agreement.

                  9.       ENTIRE AGREEMENT.

                           This Agreement is the entire  agreement of the
parties  regarding its subject matter and supersedes all prior written or oral
communications or agreements.

                  10.      COUNTERPARTS.

                           This  Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                  11.      AMENDMENT AND TERMINATION.

                           No amendment, modification, termination or
cancellation of this Agreement shall be effective unless in writing signed by
all parties hereto.

                                       -8-
<PAGE>

                  12.      WAIVERS.

                           No waiver of any breach or default shall be
considered valid unless in writing, and no such waiver shall be deemed a waiver
of any subsequent breach or default.

                  13.      NOTICES.

                  Any notice or demand required or permitted to be given under
the terms of this Agreement shall be deemed to have been duly given or made if
given by any of the following methods:

                           (a)      Deposited in the United States mail, in a
sealed envelope, postage prepaid, by registered or certified mail, return
receipt requested, respectively addressed as follows:

                    TO ROOMSYSTEMS AND
                    THE COMPANY:            RoomSystems, Inc.
                                            ATTENTION: Derek K. Ellis,
                                            Chief Financial Officer
                                            390 North 3050 East
                                            St. George, Utah 84790
                                            Telephone: 435/688-3605
                                            Fax number: 435/628-8611

                    IF TO INDEMNITEE:       Donnelly Prehn
                                            412 E. ParkCenter Blvd., Suite 300
                                            Boise, Idaho 83706
                                            Telephone: 208/333-2072
                                            Fax number: 208/343-1145

                    WITH A COPY
                    TO:                     AMRESCO Leasing Corporation
                                            ATTENTION: William C. Cole, Esq.
                                            412 E. ParkCenter Blvd., Suite 300
                                            Boise, Idaho 83702
                                            Telephone: 208/333-2000
                                            Fax number: 208/333-2050

                           (b)      Hand-delivered or sent to the above address
via an established national overnight delivery service (such as Federal
Express), charges prepaid, or

                           (c)      Sent via any electronic communications
method provided the sender obtains written confirmation of receipt of the
communication by the electronic communication equipment at the office of the
address listed above.

                                       -9-

<PAGE>

                  Notices delivered by mail shall be deemed given five (5)
Business Days after being deposited in the United States mail, return receipt
requested. Notices delivered by hand, by facsimile, or by a nationally
recognized private carrier shall be deemed given on the first Business Day
following receipt; PROVIDED, HOWEVER, that a notice delivered by facsimile shall
only be effective if such notice is also delivered by hand, or deposited in the
United States mail, postage prepaid, registered or certified mail, on or before
two (2) Business Days after it is delivered by facsimile. Any party may
hereinafter designate other addresses to which notice may be sent, upon written
notice sent to the other parties at the address above designated, or
subsequently designated in accordance herewith.

                  14.      DIRECTORS' AND OFFICERS' INSURANCE.

                           14.1     COVENANT OF COMPANY.  The Company hereby
covenants and agrees that, subject to the provisions of SECTION 14.2 hereof, the
Company shall, from and after the date hereof, maintain directors' and officers'
insurance ("D&O Insurance") in full force and effect so long as Indemnitee
continues to serve as a director of the Company and thereafter so long as
Indemnitee shall be subject to any possible Proceeding.

                           14.2     COVERAGE.  In all D&O Insurance policies,
Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits, subject to the same limitations, as are
accorded to RoomSystems' or the Company's directors or officers most favorably
insured by such policy.

                  15.      SPECIFIC PERFORMANCE.

                           The parties agree herein that a monetary remedy for
breach of this Agreement, at some later date, will be inadequate, impracticable
and difficult of proof, and further agree that such breach would cause
Indemnitee irreparable harm. Accordingly, RoomSystems, the Company and
Indemnitee agree that Indemnitee shall be entitled to temporary and permanent
injunctive relief to enforce this Agreement without the necessity of proving
actual damages or irreparable harm. RoomSystems, the Company and Indemnitee
further agree that Indemnitee shall be entitled to such injunctive relief,
including temporary restraining orders, preliminary injunctions and permanent
injunctions, without the necessity of posting bond or other undertaking in
connection therewith. Any such requirement of bond or undertaking is hereby
waived by RoomSystems and the Company, and RoomSystems and the Company
acknowledge that in the absence of such a waiver, a bond or undertaking may be
required by the court.

                  16.      SUBROGATION.

                  In the event of payment under this Agreement, RoomSystems
and/or the Company shall be subrogated to the extent of such payment to all of
the rights of recovery of Indemnitee, who shall execute all documents required
and shall do all acts that may be necessary to secure such rights and to enable
RoomSystems and/or the Company effectively to bring suit to enforce such rights.

                                      -10-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indemnity Agreement to be duly executed as of the day and year first set forth
above.

                                                  COMPANY:

                               RSi BRE, INC.

                               By:_________________________________________
                               Its:________________________________________

                                ROOMSYSTEMS:

                                ROOMSYSTEMS, INC.

                                By:_________________________________________
                                Its:________________________________________

                                INDEMNITEE:

                                ____________________________________________
                                Donnelly Prehn

                                      -11-

<PAGE>

                                       17

                                    EXHIBIT E

                   FORM OF EQUIPMENT PURCHASE PROMISSORY NOTE

                                  See Attached.

                       EQUIPMENT PURCHASE PROMISSORY NOTE

$750, 000.00                                               September ____, 1999

         FOR VALLUE RECEIVED, RSi BRE, Inc. a Nevada corporation (hereafter
referred to as the "MAKER") promises to pay RSG Investments, LLC, an Idaho
limited liability company, at 412 ParkCenter Blvd., Suite 300, Boise, Idaho
83706, or assigns (hereafter referred to as the "PAYEE"), the principal amount
of Seven Hundred Fifty-Thousand and No/100 Dollars ($750,000.00), in lawful
money of the United States, plus accrued interest from August 1, 1999, at the
rate of ten percent (10%) per annum, payable as provided herein.

         1.       ISSUANCE.

         This Note is being issued pursuant to the terms of that certain
Equipment Transfer Agreement of even date herewith ("EQUIPMENT TRANSFER
AGREEMENT") between Maker, Payee, and RoomSystems, Inc., as Nevada corporation,
and the corporate parent of Maker ("RSi"), and RoomSystems International
Corporation, a Nevada corporation and a corporate affiliate of Maker ("RIC")
(RSi and RIC are collectively referred to as "ROOMSYSTEMS"). Capitalized terms
used in this Note but not defined herein shall have the meanings given such
terms in the Equipment Transfer Agreement.

         2.       PAYMENT.

                  (a) FIRST NOTE DUE DATE. This Note shall be initially due and
payable on May 1, 2000 (the "FIRST NOTE DUE DATE"). If all principal and accrued
interest under this Note have been paid in full by the First Note Due Date, then
Maker's obligations hereunder shall be extinguished, and all revenue-per-New BRE
Unit per day thereafter from all New BRE Revenue Sharing Contracts (as such
terms are defined in the Equipment Transfer Agreement) shall be allocated to
Maker.

                  (b) NO PAYMENT BY FIRST NOTE DUE DATE. If this Note has not
been paid in full on or before the First Note Due Date, then from such date
until the Final Note Due Date (as defined below), the revenue-per-New BRE Unit
per day from all New BRE Revenue Sharing Contracts shall be allocated as
follows:

                           -   The first $0.03 of revenue shall be paid to RSi
                  for use as a tax reserve;

                           -   The next $.08 of revenue shall be paid to RSi for
                  a service and maintenance reserve; and

                                       -1-
<PAGE>

                           -   The balance of the revenue shall be paid to
                  Payee and applied to Maker's obligations under this Note,
                  first to accrued interest, then to unpaid principal hereunder.

                  (c) FINAL NOTE DUE DATE. December 31, 2000 is the "FINAL NOTE
DUE DATE" under this Note. If the Note has been paid in full on or before the
Final Note Due Date, then all of Maker's obligations hereunder shall be
extinguished, and all revenue-per-New BRE Unit per day thereafter from all BRE
Revenue Sharing Contracts shall be allocated to RSi.

                  (d) FAILURE OF PAYMENT. If this Note has not been paid in full
on or before the Final Note Due Date, and no Event of Default has occurred or is
continuing, then such failure of payment shall operate to (1) extinguish Maker's
obligations under this Note, and (2) convert such obligations into Payee's
allocable portion of all payments under the New BRE Revenue Sharing Contracts,
as provided in the Payment Allocation Schedule attached as Exhibit F to the
Equipment Transfer Agreement.

                  (e) PAYMENT UPON IPO. Notwithstanding anything in this Note to
the contrary, Maker acknowledges and agrees that if RSi's initial firm
underwritten public offering of its common stock ("IPO") is declared effective
at any time prior to November 30, 2000, then this Note shall be due and payable
in full within thirty (30) days of such effective date, and Maker's failure to
make such payment in full to Payee within such 30-day period shall constitute an
Event of Default hereunder.

         3.       PREPAYMENTS.

         The principal balance hereof may be prepaid wholly or partially at any
time without premium or penalty.

         4.       EVENTS OF DEFAULT.

         It shall be an event of default ("EVENT OF DEFAULT") with respect to
this Note upon the occurrence and continuation uncured of any of the following
events:

                  (a) (i) Any representation, warranty, certification or other
statement made by RoomSystems or Maker in the Equipment Transfer Agreement or in
any Related Agreement or in any statement or certificate at any time given by
RoomSystems or Maker in writing pursuant thereto or in connection therewith, or
any of the representations and warranties of RoomSystems in the Master Agreement
reaffirmed and restated in the Equipment Transfer Agreement, shall be false in
any material respect on the date as of which made or reaffirmed; or (ii) any
failure on the part of RoomSystems or Maker duly to observe or perform in any
material respect any of the covenants or agreements on the part of RoomSystems
and Maker set forth in the Equipment Transfer Agreement or in any Related
Agreement that continues unremedied for a period of fifteen (15) days after the
date on which written notice of such failure, requiring the same to be remedied,
shall have been given to RoomSystems and/or Maker by Payee; or

                                       -2-
<PAGE>

                  (b) Maker shall not have manufactured, installed, and rendered
fully operational on or before the First Note Due Date at least 750 New BRE
Units (as defined in the Equipment Transfer Agreement); or in the event RSi's
IPO is declared effective by the Securities and Exchange Commission at any time
prior to November 30, 2000, Maker shall have failed to repay this Note in full
within thirty (30) days of the effective date of the IPO; or

                  (c) Any material default by RoomSystems or Maker under any of
their obligations under any Revenue Sharing Contract or New BRE Revenue Sharing
Contract or related Maintenance Agreement, including, without limitation, a
material failure or inability of RoomSystems or Maker to meet their service and
maintenance obligations under any outstanding Maintenance Agreement with any
Hotel; or

                  (d) RoomSystems or Maker shall be in default under, or an
event shall have occurred that, with notice or lapse of time or both, would
constitute a default by RoomSystems or Maker under any of their other
Contractual Obligations which would have a Material Adverse Effect; or

                  (e) (i) a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of RoomSystems or Maker in an
involuntary case under the Bankruptcy Code, or under any other applicable
bankruptcy, insolvency or similar law now or hereafter in effect, which decree
or order is not stayed; or other similar relief shall be granted under any
applicable Federal or state law; (ii) an involuntary case shall be commenced
against RoomSystems or Maker under the Bankruptcy code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect; or
a decree or order of a court having jurisdiction in the premises for the
appointment of a receiver; liquidator, sequestrator, trustee, custodian or other
officer having similar powers over RoomSystems or Maker, or over all or a
substantial part of their property, shall have been entered; or there shall have
occurred the involuntary appointment of an interim receiver, trustee or other
custodian of RoomSystems or Maker for all or a substantial part of their
property; or a warrant of attachment, execution or similar process shall have
been issued against any substantial part of the property of RoomSystems or
Maker, and any such event described in this CLAUSE (ii) shall continue for sixty
(60) days unless dismissed, bonded or discharged; or

                  (f) (i) RoomSystems or Maker shall have an order for relief
entered with respect to either of them or commence a voluntary case under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect, or shall consent to the entry of an order for
relief in an involuntary case, or to the conversion of an involuntary case to a
voluntary case, under any such law, or shall consent to the appointment of or
taking possession by a receiver, trustee or other custodian for all or a
substantial part of their property or either of RoomSystems or Maker shall make
a general assignment for the benefit of creditors or (ii) either RoomSystems or
Maker shall be unable or shall fail, or shall admit in writing its inability, to
generally pay its debts as such debts become due; or the Board of Directors of
either RoomSystems or Maker (or any committee thereof) shall adopt any
resolution or otherwise

                                       -3-
<PAGE>

authorize any action to approve any of the actions referred to in CLAUSE (i)
above or this CLAUSE (ii); or

                  (g) Any money judgment, writ or warrant of attachment or
similar process involving in the aggregate at any time an amount in excess of
$15,000 shall be entered or filed against RoomSystems or Maker or any of their
assets and shall remain undischarged, unbonded or unstayed for a period of
thirty (30) days (or in any event later than five (5) days prior to the date of
any proposed sale thereunder); or

                  (h) Any order, judgment or decree shall be entered against
RoomSystems or Maker decreeing the dissolution or split up of either RoomSystems
or Maker and such order shall remain undischarged or unstayed for a period in
excess of thirty (30) days; or

                  (i) A Material Adverse Effect shall have occurred with respect
to either RoomSystems or Maker.

         5.       REMEDIES.

                  If an Event of Default occurs, Payee may take (but is not
obligated to take) any or all of the following actions: (a) declare the entire
principal and accrued interest under this Note and any other amounts payable
hereunder, and the Secured Obligations (as defined in the Equipment Transfer
Agreement), to be, whereupon the same shall become, forthwith due and payable
without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by Maker, (b) proceed to enforce or cause to be enforced any
remedies under the Security Agreement, the Stock Pledge and Security Agreement
and/or any other Related Agreement, in each case of even date herewith, or (c)
exercise any other remedies at law or in equity. Maker agrees that upon the
occurrence of an Event of Default, Maker shall pay all costs and expenses
actually incurred by Payee (including, without limitation, reasonable attorneys'
fees and disbursements) incident to the enforcement, collection, protection or
preservation of any right or claim of Payee under the Equipment Transfer
Agreement or any Related Agreement.

         7.       DEFAULT RATE.

         Notwithstanding any other provision of this Note to the contrary, upon
the occurrence and during the continuation of an Event of Default, the Maker
shall pay interest on the outstanding principal balance of this Note at a rate
(the "DEFAULT RATE") per annum equal to eighteen percent (18%), payable upon
demand by Payee. All obligations hereunder which are not paid by Payee when due
and payable shall bear interest at the Default Rate.

         8.       SECURITY.

         This Note is entitled to the benefits of and is secured by the pledge,
liens, security title, rights and security interests granted under the Security
Agreement between the Maker and Payee, and under the Stock Pledge and Security
Agreement between RoomSystems and Payee and the

                                       -4-
<PAGE>

Equipment Transfer Agreement and other Related Agreements, as the same may be
amended, supplemented or renewed, from time to time.

         9.       UNDERSTANDINGS WITH RESPECT TO WAIVERS, AGREEMENTS AND
CONSENTS.

         MAKER HEREBY ACKNOWLEDGES THAT IT MAKES ALL OF THE WAIVERS, AGREEMENTS
AND CONSENTS ("WAIVERS") SET FORTH IN THIS NOTE KNOWINGLY, INTENTIANALLY,
VOLUNTARILY, WITHOUT DURESS AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE
RAMIFICATIONS OF SUCH WAIVERS WITH ITS ATTORNEY. THE MAKER FURTHER ACKNOWLEDGES
THAT SUCH WAIVERS ARE A MATERIAL INDUCEMENT TO PAYEE TO ACCEPT THIS NOTE IN
PARTIAL PAYMENT FOR THE EQUIPMENT AND REVENUE SHARING CONTRACTS, AND THAT PAYEE
WOULD NOT HAVE ACCEPTED THIS NOTE IN PARTIAL PAYMENT WITHOUT SUCH WAIVERS.

         10.      WAIVER OF TRIAL BY JURY.

         THE MAKER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, AND PAYEE BY
THE ACCEPTANCE OF THIS NOTE IRREVOCABLY AND UNCONDITIONALLY WAIVES, ANY AND ALL
RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING OR COUNTERCLAIM
ARISING IN CONNECTION WITH, OUT OF OR OTHERWISE RELATING TO THIS NOTE.

         11.      MISCELLANEOUS.

                  (a) AMENDMENT. Neither this Note nor any provision hereof may
be amended, altered, modified, changed, waived, discharged or terminated, except
by an instrument in writing signed by Payee and its assigns.

                  (b) ASSIGNMENT. Maker shall not assign its rights or
obligations under this Note without the prior written consent of Payee, which
such consent may be withheld in Payee's sole discretion. Payee may assign any or
all of its rights, title, interests or duties, in whole or in part, hereunder
without the prior written consent of Maker. Payee shall notify Maker of any such
assignment within thirty (30) days of such assignment taking effect.

                  (c) TIME OF THE ESSENCE. For all payments to be made and
obligations to be performed under this Note, time is of the essence.

                  (d) SEVERABILITY. Whenever possible this Note and each
provision hereof shall be interpreted in such a manner as to be effective, valid
and enforceable under applicable law. If and to the extent that any such
provision shall be held invalid and unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any
other provisions hereof, and any determination that the application of any
provision hereof to any person or under any circumstance is illegal and
unenforceable shall not affect the legality, validity

                                       -5-

<PAGE>

and enforceability of such provision as it may be applied to any other person or
in any other circumstance.

                  (e) NO WAIVER; REMEDIES CUMULATIVE. No failure to exercise and
no delay in exercising on the part of Payee of any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or privilege preclude any other or further
exercise thereof, or the exercise of any other right, power or privilege. All
rights and remedies provided in this Note or in the Equipment Transfer Agreement
or in any other Related Agreement or any law shall be available to Payee and
shall be cumulative.

                  (f) HEADINGS DESCRIPTIVE. The headings of the various sections
and paragraphs of this Note are for convenience of reference only, do not
constitute a part hereof and shall not affect the meaning or construction of any
provision hereof.

                  (g)      GOVERNING LAW. THIS NOTE, THE EQUIPMENT TRANSFER
AGREEMENT AND THE RELATED AGREEMENTS SHALL BE GOVERNED, CONSTRUED, INTERPRETED,
APPLIED AND ENFORCED BY AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF IDAHO,
WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

                  (h) VENUE. The parties agree that exclusive jurisdiction and
venue shall lie in either the United States District Court for Idaho at Boise,
or the Fourth District Court of the State of Idaho for Ada County, Idaho.

         IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
by its duly authorized officer as of the day and year first above written.

                 MAKER:                  RSi BRE, INC.

                                         By:__________________________________
                                         Print Name:
                                         Title:

                                       -6-

<PAGE>

                                       18

                                    EXHIBIT F

                           PAYMENT ALLOCATION SCHEDULE

This Payment Allocation Schedule is an Exhibit to, and is incorporated by
reference as if fully set forth in, that certain Equipment Transfer Agreement
dated September ____, 1999, by and among RoomSystems, Inc., RoomSystems
International Corporation, RSi BRE, Inc., and RSG Investments, LLC. Capitalized
terms used in this Schedule but not defined herein shall have the meanings given
to such terms in the Equipment Transfer Agreement.

The following sets forth the Payment allocation payable to RSG from the Revenue
Sharing Contracts (excluding the Arkansas Hilton) and the New BRE Revenue
Sharing Contracts. EXCEPT AS SPECIFICALLY SET FORTH THEREIN, THE ALLOCATION
PROVISIONS OF PARAGRAPHS 1 AND 2 BELOW ASSUME NO EVENT OF DEFAULT (AS DEFINED IN
THE EQUIPMENT TRANSFER AGREEMENT) HAS OCCURRED OR IS CONTINUING. UPON AN EVENT
OF DEFAULT, RSG SHALL HAVE ALL OF THE RIGHTS AND REMEDIES SET FORTH IN THE
EQUIPMENT TRANSFER AGREEMENT, THE SECURITY AGREEMENT, THE STOCK PLEDGE AGREEMENT
AND THE OTHER RELATED AGREEMENTS AND, IN ADDITION, THE ALLOCATION PROVISIONS OF
PARAGRAPH 3 BELOW SHALL APPLY TO ALL REVENUE SHARING CONTRACTS AND NEW BRE
REVENUE SHARING CONTRACTS.

1.       REVENUE SHARING CONTRACTS:

         During the initial term and any extension term or terms of the Revenue
Sharing Contracts, the proceeds of all Payments under such contracts will be
distributed as follows:

                  (a) If the Units related to any Revenue Sharing Contract
produce $0.68 PER DAY OR MORE, the revenue-per-Unit per day will be allocated as
follows:

                      -    The first $0.03 of revenue to RSi for use as a tax
                           reserve;

                      -    The next $.08 of revenue to RSi for service and
                           maintenance reserve;

                      -    The next $0.57 of revenue to RSG as its Payment
                           allocation; and

                      -    The balance of the revenue, if any, to RSi.

                  (b) If the Units related to any Revenue Sharing Contract
produce LESS THAN $0.68 PER DAY, the revenue-per-Unit per day will be allocated
as follows:

                      -    The first $0.03 of revenue to RSi for use as a tax
                           reserve;

                                       F-1
<PAGE>

                      -    The next $.08 of revenue to RSi for a service and
                           maintenance reserve; and

                      -    The balance of the revenue to RSG as its Payment
                           allocation.

         PROVIDED, HOWEVER, that the cost of any refurbishing of Units in
connection with the extension of any Revenue Sharing Contract upon the
expiration of an initial term or any extension term will be charged to, and paid
out of, RSG's Payment allocation allocation set forth above.

         (b) SALE OF UNITS. If, at the end of the initial term of a Revenue
Sharing Contract or any extension term thereafter, the Hotel determines to
purchase one or more of the Units covered by the Revenue Sharing Contract, all
proceeds from the sale of such Units will be allocated to RSG.

2.       NEW BRE REVENUE SHARING CONTRACTS:

         (a) INSTALLATION TO MAY 1, 2000. From the date of installation of any
New BRE Units until May 1, 2000, all Payments under any New BRE Revenue Sharing
Contracts will be allocated to RSi BRE.

         (b) PAYMENT OF NOTE BY MAY 1, 2000. If the Note has been paid in full
on or before May 1, 2000, then all revenue-per-New BRE Unit per day from all New
BRE Revenue Sharing Contracts will be allocated to RSi, and RSG shall have no
allocation rights with respect to such New BRE Units under this Payment
Allocation Schedule.

         (c) NO PAYMENT OF NOTE BY MAY 1, 2000. If the Note has not been paid in
full on or before May 1, 2000, from such date until the Final Note Due Date (as
defined below), the revenue-per-New BRE Unit per day from all New BRE Revenue
Sharing Contracts will be allocated as follows:

                      -    The first $0.03 of revenue to RSi for use as a tax
                           reserve;

                      -    The next $.08 of revenue to RSi for a service and
                           maintenance reserve; and

                      -    The balance of the revenue to RSG as its Payment
                           allocation. It is understood by the parties that all
                           amounts allocated to RSG under this paragraph 2(c)
                           shall be credited against RSi BRE's obligations under
                           the Note, first to accrued interest, then to unpaid
                           principal.

                                       F-2
<PAGE>

         (d) PAYMENT OF NOTE BY DECEMBER 31, 2000. If the Note has been paid in
full on or before December 31, 2000 (the "FINAL NOTE DUE DATE"), then all
revenue-per-New BRE Unit per day thereafter from all New BRE Revenue Sharing
Contracts will be allocated to RSi, and RSG shall have no allocation rights with
respect to such New BRE Units under this Payment Allocation Schedule.

         (e) PAYMENT UPON IPO. Notwithstanding anything in this Payment
Allocation Schedule to the contrary, the parties understand and agree that if
RSi's initial firm underwritten public offering ("IPO") is declared effective at
any time prior to November 30, 2000, then the Note shall be due and payable
within thirty (30) days of such effective date, and RSi BRE's failure to make
such payment in full within such 30-day period shall constitute an Event of
Default under the Note.

         (f) FAILURE OF PAYMENT. If the Note has not been paid on or before the
Final Note Due Date, and no event of Default has occurred or is continuing, the
(1) RSi BRE's obligations under the Note shall be considered extinguished, (2)
in lieu thereof, the allocation schedule set forth in Section 2(c) above shall
continue for the initial and extension term(s) of the New BRE Revenue Sharing
Contracts, and (3) if, at the end of the initial term of a New BRE Revenue
Sharing Contract or any extension term thereafter, the Hotel determines to
purchase one or more of the New BRE Units covered by the New BRE Revenue Sharing
Contract, all proceeds from the sale of such New BRE Units will be allocated to
RSG. PROVIDED, HOWEVER, that the cost of any refurbishing of New BRE Units in
connection with the extension of any New BRE Revenue Sharing Contract upon the
expiration of an initial term or any extension term will be charged to, and paid
out of, RSG's Payment allocation allocation set forth in Section 2(c) above.

3.       EVENT OF DEFAULT:

         Notwithstanding any other provision of this Payment Allocation
Schedule, upon the occurrence of an Event of Default, RSG will have all rights
and remedies set forth in the Equipment Transfer Agreement, the Security
Agreement and the other Related Agreements, and all Payments under the Revenue
Sharing Contracts and New BRE Revenue Sharing Contracts will be allocated to
RSG; provided, however, that in the event RoomSystems and/or RSi BRE continues
to provide maintenance and servicing under such contracts, the first $0.11 of
revenue-per-day from each Unit and New BRE Unit shall be allocated to
RoomSystems and/or RSi BRE as a maintenance, servicing and tax reserve.

                                       F-3

<PAGE>

4.       REVENUE SHARING CONTRACTS:

         The Revenue Sharing Contracts subject to RSG's Payment allocation as of
the date of the Equipment Transfer Agreement are listed below:

                                 FIRST FULL                       MONTHS LEFT
                                  MONTH OF                        IN CONTRACT
PROPERTY                         OPERATION                       AS OF 8/1/99
---------                       ------------                    ---------------
JFK Hilton                          3/99                              79

Key Largo                           2/99                              78

JW Marriott D.C.                    1/99                              77

Park Central                        7/99                              82

Broadway                            9/99                              84

                                       F-4

<PAGE>

                                    EXHIBIT G

                           FORM OF SECURITY AGREEMENT

                                  See Attached.

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT ("SECURITY AGREEMENT"), dated as of
September_____, 1999, is by RSi BRE, INC., a Nevada corporation (the "COMPANY"),
in favor of RSG INVESTMENTS, LLC, an Idaho limited liability company (together
with its successors and assigns, the "SECURED PARTY").

                                R E C I T A L S:

         A. Secured Party, the Company and RoomSystems, Inc., a Nevada
corporation, and the corporate parent of the Company ("RSi"), and RoomSystems
International Corporation, a Nevada corporation and a corporate affiliate of the
Company ("RIC") (RSi and RIC are collectively referred to as "ROOMSYSTEMS" have
heretofore entered into that certain Equipment Transfer Agreement of even date
herewith (the "TRANSFER AGREEMENT"), pursuant to which, inter alia, the Company
has agreed to acquire from Secured Party certain fully automated refreshment
centers (including related network computer systems and attached automated room
safes, if any (the "EQUIPMENT") and certain related Hotel Revenue Sharing
Contracts ("REVENUE SHARING CONTRACTS"), on the terms and conditions set forth
in the Transfer Agreement.

         B. A portion of the Purchase Price for the Equipment and Revenue
Sharing Contracts is being paid by the Company in the form of an Equipment
Purchase Promissory Note (the "NOTE").

         C. It is a condition to Secured Party's obligation to sell and transfer
the Equipment and Revenue Sharing Contracts to the Company that the Company
shall have executed and delivered this Security Agreement whereby the Company,
in order to provide security for the full performance and payment when due of
the Note and the other Secured Obligations (as defined in the Transfer
Agreement), shall pledge and grant to Secured Party a security interest in the
Collateral described herein.

                           A G R E E M E N T S:

         NOW, THEREFORE, in consideration of the foregoing and in order to
induce the Secured Party to sell and transfer the Equipment and Revenue Sharing
Contracts to the Company and for other good and valuable consideration, the
receipt and sufficiency of which the Company hereby acknowledges, the Company
and the Secured Party agree as follows:

                                    ARTICLE I
                           DEFINITIONS AND OTHER TERMS

         1.1      DEFINED TERMS.

         All capitalized terms used but not otherwise defined herein shall have
the meaning ascribed to such terms in the Transfer Agreement or in that certain
Equipment Purchase and Sale

                                       -1-
<PAGE>

Agreement, dated July 17, 1998 between RoomSystems and Secured Party (the
"MASTER AGREEMENT"). The following terms shall have the meanings herein
specified unless the context otherwise requires. All terms defined in the
singular will have the same meaning when used in the plural and vice versa.

                  "ACCOUNTS" has the meaning ascribed to such term in the UCC.

                  "AFFILIATE" means, with respect to any specified Person, any
other Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" when used with
respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or other wise, and the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "BANKRUPTCY CODE" means Title 11 of the Untied States Code
entitled "Bankruptcy," as now and hereafter in effect, or any successor statute.

                  "CHATTEL PAPER" has the meaning ascribed to such term under
the UCC.

                  "CODE" means the Internal Revenue Code of 1986, as amended
from time to time, or any successor statute.

                  "COLLATERAL" has the meaning ascribed to such term in
Section 2.1 of this Security Agreement.

                  "CONTRACTS" means the Revenue Sharing Contracts, the New BRE
Revenue Sharing Contracts (as defined in the Transfer Agreement), their related
Maintenance Agreement and all other contracts and agreements to which the
Company now is, or hereafter will be, bound, or a party, beneficiary or assignee
(other than rights evidenced by Chattel Paper, Documents or Instruments),
including, without limitation, any franchise agreements or license agreements
and all other agreements and documents executed and delivered with respect to
such contracts, and all revenues, rentals and other sums of money due and to
become due thereunder from any of the foregoing.

                  "COPYRIGHTS" means all Untied States or other registered and
unregistered copyrights, all licenses thereto, and all applications therefor,
and all reissues, divisions, continuations, renewals, extensions, modifications,
supplements thereto or to any part thereof, and the right to sue for past,
present and future infringements of the foregoing, and all rights corresponding
to the foregoing throughout the world.

                  "DEFAULT RATE" means eighteen percent (18%) per annum.

                  "DEPOSIT ACCOUNTS" has the meaning ascribed to such term in
the UCC.

                                       -2-
<PAGE>

                  "DOCUMENT" has the meaning ascribed to such term under
the UCC.

                  "EQUIPMENT" means the Equipment (as defined in RECITAL A
hereof), any and all New BRE Units (as defined in the Transfer Agreement) and
any "equipment", as such term is defined in the UCC, used or bought for use
primarily in connection with the Business, now or hereafter owned or leased by
the Company and, in any event, shall include, but shall not be limited to, all
machinery, tools, computer software, office equipment, furniture, appliances,
furnishings, fixtures, vehicles, motor vehicles, petroleum storage tanks and
pumps, and any manuals, instructions and similar items which relate to the
foregoing, and any and all additions, substitutions and replacements of any of
the foregoing, wherever located, together with all improvements thereon and all
attachments, components, parts, equipment and accessories installed thereon or
affixed thereto.

                  "ESCROW AGENT" and "ESCROW AGREEMENT" have the meanings
ascribed to such terms in the Transfer Agreement.

                  "EVENT OF  DEFAULT" has the meaning ascribed to such term in
SECTION  6.1 of this Security Agreement.

                  "FINANCING STATEMENTS" means the UCC financing statements,
prepared by Secured Party, and delivered to the Company and which the Company
must execute and deliver to Secured Party as a condition under the Transfer
Agreement.

                  "GAAP" means generally accepted accounting principles set
forth in opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession, in each case as the same are applicable to the
circumstances as of the date of determination.

                  "GENERAL INTANGIBLES" has the meaning ascribed to such term in
the Master Agreement, as applied to the Company.

                  "GOODS" has the meaning ascribed to such term in the UCC.

                  "GOVERNMENTAL AUTHORITY" means any nation or government,
foreign or domestic, and any territory, possession, protectorate, province,
state, county, parish, regional authority, metropolitan authority, city, town,
village, other locality, or other political subdivision or agency, regulatory
body, or other authority, court commission, tribunal, grand jury, representative
or official thereof, and any Person exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

                  "HOTEL" has the meaning ascribed to such term in the Master
Agreement.

                                       -3-
<PAGE>

                  "INDEBTEDNESS" means, with respect to the Company at any date,
all items of indebtedness which, in accordance with GAAP, would be included in
determining total liabilities as shown on the liabilities side of a balance
sheet of the Company at such date, and in addition shall include (a) all
indebtedness guaranteed or endorsed (other than for purposes of collection in
the ordinary courses of business), directly or indirectly, in any manner by the
Company, (b) contingent obligations of the Company in respect of, or to purchase
or otherwise acquire, indebtedness of others, (c) all lease obligations of the
Company required under GAAP to be capitalized and reflected as a liability on
the balance sheet of the Company, and (d) all indebtedness secured by any
mortgage, lien, pledge, charge or encumbrance upon property owned by the
Company, whether or not the indebtedness so secured has been assumed by the
Company, but shall not include lease obligations or guaranties of lease
obligations not required under GAAP to be capitalized.

                  "INSTRUMENT" has the meaning ascribed to such term in the UCC
(other than Instruments constituting Chattel Paper).

                  "INTELLECTUAL PROPERTY" has the meaning ascribed to such term
in the Master Agreement, as applied to the Company.

                  "LIEN" means any mortgage, deed of trust, trust, pledge, lien
(choate or inchoate), assessment, easement, covenant, restriction, defect in
title, encroachment or other burden, whether arising by contract or under law,
other than inchoate statutory liens for amounts not yet payable (including any
agreement to give any of the foregoing), any conditional sale or other title
retention agreement, any lease in the nature of any of the foregoing, any claim,
security interest, assignment or encumbrance of any kind, any negative lien and
the filing of or agreement to give any financing statement or similar notice of
security interest.

                  "MATERIAL ADVERSE EFFECT" has the meaning ascribed to such
term in the Master Agreement.

                  "PERSON" means any natural person, corporation, partnership,
joint venture, limited liability company, bank, trust or unincorporated
organization, joint stock company or other similar organization, Governmental
Authority or any other legal entity, whether acting in an individual, fiduciary
or other capacity.

                  "PLEDGE AGREEMENT" has the meaning ascribed to that term in
the Transfer Agreement.

                  "PROCEEDS" shall mean "proceeds" as such term is defined in
the UCC or under other relevant law and shall include, but shall not be limited
to, (a) any and all proceeds of any insurance (insuring the Collateral or
otherwise required to be maintained hereunder, including return of unearned
premium), indemnity, warranty or guaranty payable to the Secured Party or the
Company from time to time, and claims for insurance, indemnity, warranty or
guaranty effected or held for the benefit of the Company, with respect to any of
the Collateral, (b) any and

                                       -4-
<PAGE>

all payments (in any form whatsoever) made or due and payable to the Company
from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any
governmental authority (or any person acting under color of governmental
authority) and (c) any and all interest, income, dividends, distributions and
earnings on the Collateral or other monies, revenues or other amounts derived
from the Collateral.

                  "RELATED AGREEMENTS" has the meaning ascribed to such term in
the Transfer Agreement.

                  "REVENUE SHARING CONTRACTS" has the meaning ascribed to such
term in the Transfer Agreement.

                  "SECURED OBLIGATIONS" has the meaning ascribed to such term in
the Transfer Agreement.

                  "UCC" means the Uniform Commercial Code (or any comparable
law, in effect in any relevant jurisdiction the laws of which govern the
perfection of security interests hereunder).

         1.2      RULES OF CONSTRUCTION.

         When used in this Security Agreement: (a) "or" is not exclusive; (b) a
reference to a law includes any amendment or modification of such law; (c) a
reference to a Person includes its permitted successors and permitted assigns;
and (d) a reference to an agreement, instrument or document shall include such
agreement, instrument or document as the same may be amended, modified or
supplemented from time to time in accordance with its terms.

                                   ARTICLE II
                                SECURITY INTEREST

         2.1      PLEDGE AND GRANT OF SECURITY INTEREST.

         As collateral security for the prompt and complete payment and
performance when due of all of the Secured Obligations, the Company hereby
pledges and grants to the Secured Party, a continuing security interest in, and
Lien on, all of the Company's right, title and interest in and to the following
(collectively, the "COLLATERAL"): all Accounts, Goods, Documents, Chattel Paper,
Deposit Accounts, Equipment, General Intangibles, Intellectual Property,
Contracts, certificates of title, fixtures, credits, claims, demands, assets and
other personal property of the Company, whether now owned, existing, hereafter
acquired, held, used, or sold (including, but not limited to, all such items
used in connection with or related to the business of the Company), and any
other property, rights and interests of the Company which at any time relate to,
arise out of or in connection with the foregoing or which shall come into the
possession or custody or under the control of the Secured Party or any of its
agents, representatives, associates or correspondents, in connection with the
foregoing; any and all additions and accessions, replacements,

                                       -5-
<PAGE>

substitutions, and improvements, of or to all the foregoing and all products,
rents, profits, offspring, and Proceeds thereof. Without limiting the generality
of the foregoing, this Agreement also secures the payment of all amounts which
constitute part of the Secured Obligations and would be owed by the Company
and/or RoomSystems to the Secured Party but for the fact they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving RoomSystems and/or the Company.

         2.2      SECURITY INTEREST ABSOLUTE.

         All rights of the Secured Party and the security interests hereunder
shall be absolute and unconditional irrespective of:

                  (a) any change in the time, manner, amount or place of payment
         of, or in any other term of, all or any of the Secured Obligations, or
         any other amendment or waiver of or any consent to any departure from
         the Transfer Agreement or any Related Agreement;

                  (b) any exchange, release or nonperfection of all or any part
         of the Collateral or any other collateral, or any release from,
         amendment to, waiver of or consent to departure from any guaranty, for
         all or any of the Secured Obligations; or

                  (c) to the fullest extent permitted by law, any other
         circumstances which might otherwise constitute a defense available to,
         or a discharge of, the Company or a third party pledgor.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

         The representations, warranties and covenants of the Company contained
in the Transfer Agreement and Master Agreement shall be deemed, for all purposes
hereunder, to be representations, warranties and covenants of the Company in
this Security Agreement, and shall be incorporated herein by this reference.

                                   ARTICLE IV
              SPECIAL PROVISIONS CONCERNING EQUIPMENT AND PROCEEDS

         4.1      EQUIPMENT.

         The Company shall do nothing to impair the rights of the Secured Party
in the Equipment and shall cause the Equipment to at all times be, constitute
and remain personal property subject to the security interest granted to the
Secured Party. Notwithstanding the preceding sentence, provided neither the
Company nor RoomSystems is in default under any of their Secured Obligations
(and no event which with the passage of time would be an Event of Default has

                                       -6-
<PAGE>

occurred and is continuing), in the ordinary course of the Company's business,
in accordance with the provisions of the Company's Articles of Incorporation,
the Company may, from time to time, replace and substitute its Equipment, and
acquire new Equipment and accessions to its Equipment.

         4.2      PROCEEDS.

         The Company hereby directs any and all tranferors, distributors or
payors (including insurance companies with whom the Company maintains insurance)
to make payment of all Proceeds directly to the Secured Party and authorizes the
Secured Party, (i) to apply the same toward replacement and repair of the
Collateral or (ii) in the event the damage sustained exceeds fifty percent (50%)
of the Collateral to apply the same toward payment of the Secured Obligations,
whether or not due, or toward replacement of the Collateral in Secured Party's
reasonable discretion. The Company will use its best efforts and hereby assigns
the Proceeds toward replacement of the Collateral. All Proceeds, whether
received by the Secured Party or by the Company, or by any other Person will be
included in the Collateral subject to the security interest granted to the
Secured Party hereunder. Upon and during the continuation of an Event of
Default, the Company shall (i) indemnify, earmark, segregate and keep separate
all Proceeds received by it, (ii) upon the Secured Party's request, promptly
account to the Secured Party for all Proceeds, and (iii) hold all Proceeds
received by the Company in trust for the benefit of the Secured Party and shall
promptly (and in any event not later than the fifth day after receipt) deliver
(or cause to be delivered) the same to the Secured Party and into its possession
in the form received by the Company and at a time and in a manner satisfactory
to the Secured Party.

                                    ARTICLE V
                     SPECIAL PROVISION CONCERNING RIGHTS AND
                    DUTIES WHILE IN POSSESSION OF COLLATERAL

         5.1      THE COMPANY'S POSSESSION.

         Upon and during the continuance of an Event of Default, to the extent
the same shall, from time to time, be in the Company's possession and not held
by the Escrow Agent pursuant to the terms and provisions of the Escrow
Agreement, the Company will hold all Revenue Sharing Contracts and New BRE
Revenue Sharing Contracts and other writings evidencing or relating to the
Collateral in trust for the Secured Party and, upon request or as otherwise
provided herein, promptly deliver the same to the Secured Party in a form
received and at a time and in a manner satisfactory to the Secured Party. With
respect to the Collateral in the Company's possession, the Company shall at the
Secured Party's request take such action as the Secured Party in its discretion
deems necessary or desirable to create, perfect and protect the Secured Party's
security interest in any of the Collateral.

                                       -7-

<PAGE>

         5.2      SECURED PARTY'S POSSESSION.

         With respect to all of the Collateral delivered or transferred to, or
otherwise in the custody or control of (including any items in transit to or set
apart or held in escrow for) the Secured Party or any of its agents, associates
or correspondence in accordance with this Security Agreement, the Company agrees
that (i) such Collateral will be and be deemed to be in the sole possession of
the Secured Party; (ii) subject to Section 4.1, the Company has no right to
withdraw or substitute any such Collateral without the consent of the Secured
Party, which consent may be withheld or delayed in the Secured Party's sole
discretion; (iii) the Company shall not take or permit any action, or exercise
any voting and other rights, powers and privileges in respect of the Collateral
inconsistent with the Secured Party's sole possession thereof and (iv) the
Secured Party may in its sole discretion and without notice, without obligation
or liability except to account for property actually received by it, and without
affecting or discharging the Secured Obligations, (x) further transfer and
segregate the Collateral in its possession; (y) receive Proceeds and hold the
same as part of the Collateral and/or apply the same as hereinafter provided;
and (z) exchange any of the Collateral for other property upon reorganization,
recapitalization or other readjustment. Following the occurrence of an Event of
Default, the Secured Party is authorized (i) to exercise or cause its nominee to
exercise all or any rights, powers and privileges on or with respect to the
Collateral with the same force and effect as an absolute owner thereof; (ii)
whether any of the Secured Obligations be due, in its name or in the Company's
name or otherwise, to demand, sue for, collect or receive any money or property
at any time payable or receivable on account of or in exchange for, or make any
compromise or settlement the Secured Party deems desirable with respect to, any
of the Collateral; and (iii) to extend the time of payment, arrange for payment
in installments, or otherwise modify the terms of, or release, any of the
Collateral. Notwithstanding the rights accorded the Secured Party with respect
to the Collateral and except to the extent provided below or required by the UCC
or other applicable law (which requirement cannot be modified, waived or
excused), the Secured Party's sole duty with respect to the Collateral in its
possession (with respect to custody, preservation, safekeeping or otherwise)
will be to deal with it in the same manner that the Secured Party deals with
similar property owned and possessed by it. Without limiting the foregoing, the
Secured Party, and any of its officers, directors, partners, trustees, owners,
employees and agents, to the extent permitted by law (i) will have no duty with
respect to the Collateral or the rights granted hereunder; (ii) will not be
required to sell, invest, substitute, replace or otherwise dispose of the
Collateral; (iii) will not be required to take any steps necessary to preserve
any rights against prior parties to any of the Collateral; (iv) will not be
liable for (or deemed to have made an election of or exercised any right or
remedy on account of) any delay or failure to demand, collect or realize upon
any of the Collateral; and (v) will have no obligation or liability in
connection with the Collateral or arising under this Security Agreement. The
Company agrees that such standard of care is reasonable and appropriate under
the circumstances.

                                                        -8-
<PAGE>

                                   ARTICLE VI
                                EVENTS OF DEFAULT

         6.1      EVENTS OF DEFAULT.

         Whenever used herein, the Term "EVENT OF DEFAULT" means any one of the
following events:

                  (A) BREACH OF REPRESENTATIONS, WARRANTIES AND COVENANTS.
(i) Any representation, warranty, certification or other statement made by
RoomSystems or the Company in the Transfer Agreement or in any Related Agreement
or in any statement or certificate at any time given by RoomSystems or the
Company in writing pursuant thereto or in connection therewith, or any of the
representations and warranties of RoomSystems in the Master Agreement reaffirmed
and restated in the Transfer Agreement, shall be false in any material respect
on the date as of which made or reaffirmed; or (ii) any failure on the part of
RoomSystems or the Company duly to observe or perform in any material respect
any of the covenants or agreements on the part of RoomSystems and the Company
set forth in the Transfer Agreement or in any Related Agreement that continues
unremedied for a period of fifteen (15) days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to RoomSystems and/or the Company by Secured Party; or

                  (B) NEW BRE UNITS; NOTE PAYMENT FAILURE. The Company shall not
have manufactured, installed and rendered fully operational at least 750 New BRE
Units by May 1, 2000; or in the event RSi's initial firm underwritten public
offering of its common stock ("IPO") is declared effective by the Securities and
Exchange Commission at any time prior to November 30, 2000, the Company shall
have failed to repay the Note in full within thirty (30) days of the effective
date of the IPO; or

                  (C) DEFAULT IN REVENUE SHARING CONTRACTS/MAINTENANCE
AGREEMENTS. Any material default by RoomSystems or the Company under any of
their obligations under any Revenue Sharing Contract (including New BRE Revenue
Sharing Contracts) or related Maintenance Agreement, including, without
limitation, a material failure or inability of RoomSystems or the Company to
meet their service and maintenance obligations under any outstanding Maintenance
Agreement with any Hotel; or

                  (D) DEFAULT UNDER OTHER CONTRACTUAL OBLIGATIONS. RoomSystems
or the Company shall be in default under, or an event has occurred that, with
notice or lapse of time or both, would constitute a default by RoomSystems or
the Company under any of their other Contractual Obligations which would have a
Material Adverse Effect; or

                  (E) INVOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER. (i) a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of RoomSystems or the Company in an involuntary case under the
Bankruptcy Code, or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect, which decree or order is not

                                       -9-
<PAGE>

stayed; or other similar relief shall be granted under any applicable Federal or
state law; (ii) an involuntary case shall be commenced against RoomSystems or
the Company under the Bankruptcy Code or under any other applicable bankruptcy,
insolvency or similar law now or hereafter in effect; or a decree or order of a
court having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar
powers over RoomSystems or the Company, or over all or a substantial part of
their property, shall have been entered; or there shall have occurred the
involuntary appointment of an interim receiver, trustee or other custodian of
RoomSystems or the Company for all or a substantial part of its property; or a
warrant of attachment, execution or similar process shall have been issued
against any substantial part of the property of RoomSystems or the Company, and
any such event described in this CLAUSE (II) shall continue for sixty (60) days
unless dismissed, bonded or discharged; or

                  (F) VOLUNTARY BANKRUPTCY; APPOINTMENT OF RECEIVER; ETC. (i)
Either RoomSystems or the Company shall have an order for relief entered with
respect to it or commence a voluntary case under the Bankruptcy Code or under
any other applicable bankruptcy, insolvency or similar law now or hereafter in
effect, or shall consent to the entry of an order for relief in an involuntary
case, or to the conversion of an involuntary case to a voluntary case, under any
such law, or shall consent to the appointment of or taking possession by a
receiver, trustee or other custodian for all or a substantial part of its
property; or either of RoomSystems or the Company shall make a general
assignment for the benefit of creditors; or (ii) either of RoomSystems or the
Company shall be unable or shall fail, or shall admit in writing its inability,
to generally pay its debts as such debts become due; or the Board of Directors
of either RoomSystems or the Company (or any committee thereof) shall adopt any
resolution or otherwise authorize any action to approve any of the actions
referred to in clause (i) above or this clause (ii); or

                  (G) JUDGMENTS AND ATTACHMENTS. Any money judgment, writ or
warrant of attachment or similar process involving in the aggregate at any time
an amount in excess of $15,000 shall be entered or filed against RoomSystems or
the Company or any of its assets and shall remain undischarged, unbonded or
unstayed for a period of thirty (30) days (or in any event later than five (5)
days prior to the date of any proposed sale thereunder); or

                  (H) DISSOLUTION. Any order, judgment or decree shall be
entered against RoomSystems or the Company decreeing the dissolution or split up
of RoomSystems or the Company and such order shall remain undischarged or
unstayed for a period in excess of thirty (30) days; or

                  (I) MATERIAL ADVERSE EFFECT. A Material Adverse Effect shall
occur with respect to RoomSystems or the Company.

                                      -10-
<PAGE>

                                   ARTICLE VII
                  REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

         7.1      CUMULATIVE RIGHTS AND REMEDIES.

         Upon the occurrence of an Event of Default, and at any time thereafter
if any Event of Default shall then be continuing, the Secured Party shall have
the rights, powers and remedies (i) granted to secured parties under the UCC;
(ii) granted to the Secured Party under any other applicable statute, law, rule
or regulation; (iii) granted to the Secured Party under the Note; and (iv)
granted to the Secured Party under this Security Agreement, the Transfer
Agreement, the Pledge Agreement or any other Related Agreement or any other
agreement between the Company, RoomSystems and the Secured Party. In addition,
all such rights, powers and remedies shall be cumulative and not alternative.
Any single or partial exercise of, or forbearance, failure or delay in
exercising any right, power or remedy shall not be, nor shall any such single or
partial exercise of, or forbearance, failure or delay be deemed to be a
limitation, modification or waiver or any right, power or remedy and shall not
preclude the further exercise thereof; and every right power and remedy of the
Secured Party shall continue in full force and effect until such right, power
and remedy is specifically waived by an instrument in writing executed and
delivered with respect to each such waiver by the Secured Party.

         7.2      ACCELERATION OF SECURED OBLIGATIONS.

         Upon the occurrence of an Event of Default, and at any time thereafter
if any Event of Default shall then be continuing, the Secured Party may, form
time to time in its discretion, by written notice to the Company declare all of
the Secured Obligations (including principal and accrued interest under the
Note) to be immediately due and payable whereupon (and, automatically without
any notice, demand or other action by the Secured Party, upon the occurrence of
any Event of Default set forth in subsections (e) through (h) of SECTION 6.1)
such principal, interest and other Secured Obligations shall be immediately due
and payable, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Company to the maximum extent permitted by
law. In connection with the foregoing, the amount due and payable from all
unpaid future Payment allocations to RSG from the Revenue Sharing Contracts and
New BRE Revenue Sharing Contracts as set forth in the Payment Allocation
Schedule attached as Exhibit F to the Transfer Agreement shall be based on the
discounted present value of such unpaid allocations, assuming for the purpose of
such calculation: (i) each Unit produces revenue of $0.716 per day, (ii) a
discount rate of eight percent (8%) per annum, (iii) a term equal to the
remaining term of the Revenue Sharing Contract and New BRE Revenue Sharing
Contract related to each Unit, and (iv) a residual value for each Unit of
$300.00.

         7.3      ASSIGNMENT AND TRANSFER OF REVENUE SHARING CONTRACTS.

         All of the Company's right, title and interest in, to and under the
Revenue Sharing Contracts and New BRE Revenue Sharing Contracts shall be
automatically and irrevocably

                                      -11-
<PAGE>

assigned, transferred and delivered to Secured Party, without any action
required on the part of Secured Party, RoomSystems or the Company. Such
assignment and transfer shall not operate to terminate any of RoomSystems'
and/or the Company's servicing and maintenance obligations under the Maintenance
Agreements applicable to such Revenue Sharing Contracts and New BRE Revenue
Sharing Contracts, and such obligations shall survive the irrevocable assignment
and transfer of such contracts to Secured Party.

         7.4      ADDITIONAL REMEDIES.

         In addition to the remedies set forth in the foregoing SECTIONS 7.2 and
7.3, upon an Event of Default, Secured Party may, at its sole option, without
demand and upon such notice as may be required by law, and irrespective of
negative consequences to RoomSystems, the Company or any other party, do any one
or more of the following: (i) require RoomSystems and the Company to assemble
the Collateral and make it available to Secured Party at a place designated by
Secured Party; (ii) immediately take possession of the Collateral wherever it
may be found using all necessary and lawful actions to do so, and each of
RoomSystems and the Company waives all claims to damages due to or arising from
or connected with any such taking; (iii) proceed in the foreclosure set forth in
this Security Agreement and sell all the Collateral in any manner permitted by
law or provided for therein; (iv) sell the Collateral at public or private sale
with or without having said Collateral at the place of sale and upon terms and
in such manner as Secured Party may determine, with RoomSystems and the Company
agreeing that if notice of such a sale is required by law, a ten (10) day notice
period shall be commercially reasonable unless a shorter time period is
permitted by law; (v) take possession of RoomSystem's premises in order to (A)
continue servicing and maintaining the Equipment and New BRE Units covered by
any Revenue Sharing Contract or New BRE Revenue Sharing Contract pursuant to the
applicable Maintenance Agreement, (B) repair and recondition such Equipment and
New BRE Units, as necessary, using the facilities and other property of
RoomSystems, (C) store any of the Collateral subject to Secured Party's Security
Interest, and (D) conduct any sale as provided for in this Security Agreement,
all without compensation to RoomSystems or the Company and any sums expended
therefor by Secured Party, for which no consideration is received, shall be
repaid by RoomSystems and the Company as part of the Secured Obligations under
this Agreement; (vi) sell, in one or more sales, at public or private sale, for
such price as it may deem fair, any or all of the Collateral; (vii) be the
purchase of any of the Collateral so sold and hold the same thereafter in its
own right, absolutely free from any claims or rights of RoomSystems or the
Company; (viii) exercise any other right under the Security Documents.
Notwithstanding that the Secured Party, whether in its own behalf and/or on
behalf of another or others, may continue to hold the Collateral and regardless
of the value thereof, or any delay or failure to dispose thereof, unless and
then only to the extent that the Secured Party proposes to retain the Collateral
in satisfaction of the Secured Obligations by written notice in accordance with
the UCC, the Company shall be and remain liable for the payment in full of any
balance of the Secured Obligations and expenses at any time unpaid. Without
limiting the foregoing, upon an Event of Default and after receipt of Secured
Party's notice thereof, in addition to its other rights and remedies, the
Secured Party may (but is not required to), in its sole discretion and to the
extent it deems necessary, advisable or appropriate, take or cause to be taken
such actions or things to

                                      -12-
<PAGE>

be done (including the payment or advancement of funds, or requiring advancement
of funds to be held by the Secured Party to fund such obligations, including
taxes or insurance) as may be required hereby (or necessary or desirable in
connection herewith) to correct such failure (including causing the Collateral
to be maintained or insurance protection required hereby to be procured and
maintained) and any and all costs and expenses incurred (including attorney's
fees and disbursements) in connection therewith shall be included in the Secured
Obligations and shall be immediately due and payable and shall bear interest at
the rate of ten percent (10%) per annum.

         7.5      APPLICATION OF PROCEEDS.

         The Secured Party may apply the net proceeds, if any, of any
collection, receipt, recovery, appropriation, foreclosure or realization, or
from any use, operation, sale assignment, lease, pledge, transfer, delivery or
disposition of all or any of the Collateral, after deducting all reasonable
costs and expenses (including attorney's fees, court costs and legal expenses)
incurred in connection therewith or with respect to the care, safekeeping,
custody, maintenance, protection, administration or otherwise of any and all of
said Collateral or in any way relating to the rights of the Secured Party under
this Security Agreement, (i) first, to the satisfaction of the Secured
Obligations, in whole or in part, in such order as the Secured Party may, in its
discretion, elect; (ii) second, to the payment, satisfaction or discharge of any
of other Indebtedness or obligation as required by any law, rule or regulation;
and (iii) lastly, the surplus, if any, to the Company.

         7.6      REQUIRED NOTICE OF SALE.

         In exercising its rights, powers and remedies as secured party, the
Secured Party agrees to give the Company ten days notice of the time and place
of any public sale of Collateral or of the time after which any private sale of
Collateral may take place, unless the Collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market. The Company agrees that such period and notice is commercially
reasonable under the circumstances.

                                  ARTICLE VIII
                         POST-DEFAULT POWER OF ATTORNEY

         The Company hereby irrevocably constitutes and appoints, effective on
and after the occurrence of an Event of Default and at anytime thereafter if any
Event of Default shall then be continuing, the Secured Party acting through any
officer or agent thereof, with full power of substitution, as the Company's true
and lawful attorney-in-fact with full irrevocable power and authority in the
Company's place and stead and in the Company's name or in its own name, from
time to time in the Secured Party's discretion, to receive, open and dispose of
mail addressed to the Company, to take any and all action, to do all things, to
execute, endorse, deliver and file any and all writings, documents, instruments,
notices, statements (including financing statements, and writings to correct any
error or ambiguity in the Transfer Agreement or any Related Agreement),
applications and registrations (including registrations and licenses for
securities, Intellectual

                                      -13-
<PAGE>

Property and General Intangibles), checks, drafts, acceptances, money orders, or
other evidence of payment or Proceeds, which may be or become necessary or
desirable in the sole discretion of the Secured Party to accomplish the terms,
purposes and intent of this Security Agreement, the Transfer Agreement and the
other Related Agreements, including the right to appear in and defend any action
or proceeding brought with respect to the Collateral, and to bring any action or
proceeding, in the name and on behalf of the Company, which the Secured Party,
in its discretion, deems necessary or desirable to protect its interest in the
Collateral. Said attorney or designee shall not be liable for any acts of
commission or omission, nor for any error of judgment or mistake of fact or law,
unless and then only to the extent that the same constitutes its negligence or
willful misconduct. This power is coupled with an interest and is irrevocable.
THIS POWER DOES NOT AND SHALL NOT BE CONSTRUED TO AUTHORIZE ANY CONFESSION OF
JUDGMENT.

                                   ARTICLE IX
                                 INDEMNIFICATION

         9.1      INDEMNIFICATION BY THE COMPANY.

         The Company agrees to indemnify the Secured Party and hold the Secured
Party harmless from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever which may be imposed on, incurred by, or
asserted against the Secured Party in any way relating, in any way arising out
of or in connection with the Transfer Agreement, this Security Agreement, the
Related Agreements or the transactions contemplated hereby or thereby other than
those arising out of Secured Party's gross negligence or willful misconduct in
its obligations under the Transfer Agreement, this Security Agreement, the
Secured Obligations or any Related Agreement. Without limitation of the
foregoing, the Company will reimburse the Secured Party for all expenses
(including expenses for legal services of every kind) of, or incidental to, the
negotiation of, entering into and enforcement of any of the provisions hereof
and of any of the Secured Obligations, and any actual or attempted sale, lease
or other disposition of, and any exchange, enforcement, collection, compromise
or settlement of any of the Collateral and receipt of the Proceeds thereof, and
for the care of the Collateral and defending or asserting the rights and claims
of the Secured Party in respect thereof, and for the care of the Collateral and
defending or asserting the rights and claims of the Secured Party in respect
thereof, by litigation or otherwise, including expense of insurance, and all
such expenses shall be part of the Secured Obligations.

                                    ARTICLE X
                              OBLIGATIONS ABSOLUTE

         The Secured Obligations will be absolute, unconditional and irrevocable
and will be paid or satisfied strictly in accordance with their respective terms
under all circumstances whatsoever, including: (i) the invalidity or
unenforceability of all or any of, or any part of, the Transfer Agreement, this
Security Agreement, or any Related Agreement, or any consent, waiver,

                                      -14-
<PAGE>

amendment or modification thereof; (ii) the existence of any claim, setoff,
defense or other right which the Company may have at any time against the
Secured Party, or any other Person, whether in connection with the Transfer
Agreement, this Security Agreement, any Related Agreement, the transactions
contemplated hereby, thereby or otherwise all of which the Company hereby waives
to the maximum extent permitted by law; or (iii) the loss, theft, damage,
destruction or unavailability of the Collateral to the Company for any reason
whatsoever, it being understood and agreed that the Company retains all
liability and responsibility with respect to the Collateral.

                                   ARTICLE XI
                                FURTHER ASSURANCE

         The Company agrees at any time and from time to time, at the Company's
sole cost and expense, to promptly obtain, procure, execute and deliver, file
and affix such further agreements, bills of sale and assignments, instruments,
documents, warehouse receipts, bills of lading, vouchers, invoices, notices,
statements, writings (including financing statements, and writings to correct
any error or ambiguity in the Transfer Agreement or any Related Agreement),
powers (including stock and bond powers, and powers of attorney), tax stamps and
information, and to do or cause to be done all such further acts and things
(including the execution, delivery and filing of Financing Statements, payment
of filing fees and transfer, gains and recording taxes), as the Secured Party
may reasonably request, from time to time, in its discretion, including but not
limited to all such actions required to provide Secured Party with a perfected
security interest in the Collateral (including all Intellectual Property and
General Intangibles). Without limiting the foregoing, the Company authorizes the
Secured Party to the extent permitted under the UCC to execute and file, or file
without the Company's signature, any and all Financing Statements, amendments
thereto and continuations thereof as the Secured Party deems necessary or
appropriate and the Company shall pay and indemnify the Secured Party for and
hold the Secured Party harmless from any and all costs and expenses in
connection therewith. The Company agrees that it will promptly notify the
Secured Party of and agree to correct any defect, error or omission in the
contents of the Transfer Agreement or any of the Related Agreements or in the
execution, delivery or acknowledgement thereof.

                                   ARTICLE XII
                             TERM AND REINSTATEMENT

         12.1     TERM.

         This Security Agreement shall be immediately in full force and effect
upon the Company's execution below, whether or not it is signed by the Secured
Party. Upon indefeasible payment in full of the Obligations in accordance with
the terms thereof, this Security Agreement and the security interest granted
hereunder shall terminate and the Secured Party, at the Company's expense, will
execute and deliver to the Company the proper instruments (including UCC
termination statements) acknowledging the termination of such security interest,
and will duly assign, transfer and deliver (without recourse, representation or
warranty) such Collateral as may

                                      -15-
<PAGE>

be in the Secured Party's possession, and not to be retained, sold, or otherwise
applied or released pursuant to this Security Agreement, to the Company, except
that the Company's obligations under Articles IX, X, XII and XIII shall survive
indefinitely.

         12.2     REINSTATEMENT.

         This Security Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any amount received by the
Secured Party in respect of the Secured Obligations is rescinded or must
otherwise be restored or returned by the Secured Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of RoomSystems and/or the
Company or upon the appointment of any intervenor or conservator of, or trustee
or similar official for, RoomSystems and/or the Company or any substantial part
of RoomSystems' and/or the Company's assets, or otherwise, all as though such
payments had not been made.

                                  ARTICLE XIII
                               GENERAL PROVISIONS

         13.1     FINAL AGREEMENT; AMENDMENTS, CONSENTS, AUTHORIZATIONS.

         THIS SECURITY AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE
COMPANY AND THE SECURED PARTY AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE COMPANY AND THE SECURED
PARTY. THE COMPANY UNDERSTANDS AND AGREES THAT ORAL AGREEMENTS AND ORAL
COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT
OF A DEBT ARE NOT ENFORCEABLE. THE COMPANY ACKNOWLEDGES AND AGREES THERE ARE NO
ORAL AGREEMENTS BETWEEN THE COMPANY AND THE SECURED PARTY. The Transfer
Agreement, this Security Agreement and the Related Agreements represent the
entire understanding of the Secured Party and the Company with respect to the
transactions contemplated hereby and thereby. None of the terms or provisions of
the Transfer Agreement, this Security Agreement or any other Related Agreement
may be waived, altered, modified, or amended except in each instance by a
specific written instrument duly executed by the Secured Party. Without limiting
the foregoing, no action or omission to act shall be deemed to be a consent,
authorization, representation or agreement of the Secured Party, under the UCC
or otherwise, unless, in each instance, the same is in a specific writing signed
by the Secured Party.

         13.2     NOTICES.

         Any notice or demand required or permitted to be given under the terms
of this Security Agreement shall be in writing and shall be deemed to have been
duly given or made if given by any of the following methods: (a) deposited in
the United States mail, in a sealed envelope, postage prepaid, by registered or
certified mail, return receipt requested, (b) hand-delivered or sent via an
established national overnight deliver service (such as Federal Express),
charges

                                      -16-
<PAGE>

prepaid, or (c) sent via any electronic communications method provided the
sender obtains written confirmation of receipt of the communication by the
electronic communication equipment, in each case at the address set forth below:

         IF TO THE COMPANY:         RoomSystems, Inc.
                                    ATTENTION:  Derek K. Ellis
                                    390 North 3050 East
                                    St. George, Utah  84790
                                    Telephone:  435/688-3605
                                    Fax number:  435/628-8611

         IF TO SECURED
         PARTY:                     RSG Investments, LLC.
                                    ATTENTION:  Don Prehn
                                    412 E. ParkCenter Blvd., Suite 300
                                    Boise, Idaho  83706
                                    Telephone:  208/333-2072
                                    Fax number:  208/343-1145

         WITH A COPY TO:            AMRESCO Leasing Corporation
                                    ATTENTION:  William C. Cole, Esq.
                                    412 E. ParkCenter Blvd., Suite 300
                                    Boise Idaho  83702
                                    Telephone:  208/333-2000
                                    Fax number:  208/333-2050

         Notices delivered by mail shall be deemed given five (5) Business Days
after being deposited in the United States Mail, return receipt requested.
Notices delivered by hand, by facsimile, or by a nationally recognized private
carrier shall be deemed given on the first Business Day following receipt;
PROVIDED, HOWEVER, that a notice delivered by facsimile shall only be effective
if such notice is also delivered by hand, or deposited in the United States
mail, postage prepaid, registered or certified mail, on or before two (2)
Business Days after it is delivered by facsimile. Any party may hereinafter
designate other addresses to which notice may be sent, upon written notice sent
to the other parties at the address above designated, or subsequently designated
in accordance herewith.

         13.3     REASONABLENESS.

         If at any time the Company believes that the Secured Party has not
acted reasonably in granting or withholding any approval or consent under the
Transfer Agreement, this Security Agreement, or any other Related Agreement or
otherwise with respect to the Secured Obligations, as to which approval or
consent either the Secured Party has expressly agreed to act reasonably, or
absent such agreement, a court of law having jurisdiction over the subject
matter would require the Secured Party to act reasonably, then the Company's
sole remedy shall be to seek injunctive

                                      -17-
<PAGE>

relief or specific performance and no action for monetary damages or punitive
damages shall in any event or under any circumstance be maintained by the
Company against the Secured Party.

         13.4     RECOVERY OF SUMS REQUIRED TO BE PAID.

         The Secured Party shall have the right from time to time to take action
to recover any sum or sums which constitute a part of the Secured Obligations as
the same become due, without regard to whether or not the balance of the Secured
Obligations shall be due, and without prejudice to the right of the Secured
Party thereafter to bring an action of foreclosure, or any other action, for a
default or defaults by the Company existing at the time such earlier action was
commenced.

         13.5     WAIVERS.

         THE COMPANY HEREBY MAKES AND ACKNOWLEDGES THAT IT MAKES ALL OF THE
WAIVERS SET FORTH IN THIS SECURITY AGREEMENT, THE TRANSFER AGREEMENT AND THE
OTHER RELATED AGREEMENTS KNOWINGLY, INTENTIONALLY, VOLUNTARILY, WITHOUT DURESS,
AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF SUCH WAIVERS WITH
ITS ATTORNEY; AND THE COMPANY FURTHER ACKNOWLEDGES THAT SUCH WAIVERS ARE A
MATERIAL INDUCEMENT TO THE SECURED PARTY TO TRANSFER THE EQUIPMENT AND REVENUE
SHARING CONTRACTS TO THE COMPANY AND THAT THE SECURED PARTY WOULD NOT HAVE
TRANSFERRED THE EQUIPMENT AND REVENUE SHARING CONTRACTS WITHOUT SUCH WAIVERS.

         13.6     WAIVER OF TRIAL BY JURY.

         THE COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, AND THE
SECURED PARTY BY ITS ACCEPTANCE OF THIS SECURITY AGREEMENT, THE TRANSFER
AGREEMENT AND THE RELATED AGREEMENTS IRREVOCABLY AND UNCONDITIONALLY WAIVES, ANY
AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT OR COUNTERCLAIM ARISING IN
CONNECTION WITH, OUT OF OR OTHERWISE RELATING TO THE TRANSFER AGREEMENT, THIS
SECURITY AGREEMENT, OR ANY OTHER RELATED AGREEMENT OR THE SECURED OBLIGATIONS.

         13.7     RELATIONSHIP.

         The relationship of the Secured Party to the Company hereunder is
strictly and solely that of secured party on the one hand and repurchase obligor
on the other and nothing contained in the Transfer Agreement, this Security
Agreement or any other Related Agreement or otherwise in connection with the
obligations is intended to create, or shall in any event or under any
circumstance be construed as creating, lender/debtor relationship, a
partnership, joint venture, tenancy-in-common, joint tenancy or other
relationship of any nature whatsoever between the

                                      -18-
<PAGE>

Secured Party and the Company other than as secured party on the one hand and
repurchase obligor on the other.

         13.8     TIME IS OF THE ESSENCE.

         For all payments to be made and all obligations to be performed under
the Transfer Agreement and the Related Agreements, time is of the essence.

         13.9     GOVERNING LAW; BINDING EFFECT.

         THIS SECURITY AGREEMENT IS ENTERED INTO IN THE STATE OF IDAHO, SECURED
PARTY'S CHIEF EXECUTIVE OFFICE AND PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THE
STATE OF IDAHO, AND ALL NOTICES AND SUMS PAYABLE UNDER THE TRANSFER AGREEMENT
RELATING TO THIS SECURITY AGREEMENT WILL BE SENT TO THE SECURED PARTY IN THE
STATE OF IDAHO. THE COMPANY AND SECURED PARTY AGREE THAT THE VALIDITY,
ENFORCEABILITY, CONSTRUCTION AND INTERPRETATION OF THIS SECURITY AGREEMENT, AND
OF ALL TRANSACTIONS AND DOCUMENTS UNDER OR RELATING TO IT, WILL BE CONSTRUED,
APPLIED, ENFORCED AND GOVERNED UNDER THE LAWS OF THE STATE OF IDAHO (WITHOUT
GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW), PROVIDED HOWEVER, THAT WITH
RESPECT TO THE CREATION, ATTACHMENT, PERFECTION, PRIORITY AND ENFORCEMENT OF ANY
LIENS CREATED BY THIS SECURITY AGREEMENT, THE LAWS OF THE STATE WHERE THE
APPLICABLE COLLATERAL IS LOCATED SHALL APPLY. This Security Agreement shall be
binding upon the Company, and the heirs, devises, administrators, executives,
personal representatives, successors, receivers, trustees, and (without limiting
SECTION 13.10 hereof) assignees, including all successors in interest of the
Company in and to all or any part of the Collateral, and shall inure to the
benefit of the Secured Party, and the successors and assignees of the Secured
Party.

         13.10    ASSIGNMENT.

         The Company may not assign its rights or obligations under this
Agreement without the prior written consent of the Secured Party, which may be
withheld in the Secured Party's sole and absolute discretion. The Secured Party
may assign this Security Agreement so that the assignee shall be entitled to the
rights and remedies of the Secured Party hereunder and in the event of such
assignment, the Company will assert no claims or defenses it may have against
the assignee except those granted in this Security Agreement.

         13.11    SEVERABILITY.

         Whenever possible, this Security Agreement, the Transfer Agreement and
each Related Agreement and each provision hereof and thereof shall be
interpreted in such manner as to be effective, valid and enforceable under
applicable law. If and to the extent that any such provision

                                      -19-
<PAGE>

shall be held invalid and unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provisions
hereof or thereof, and any determination that the application of any provision
hereof or thereof to any person or under any circumstance is illegal and
unenforceable shall not affect the legality, validity and enforceability of such
provision as it may be applied to any other person or in any other circumstance.

         13.12    HEADINGS DESCRIPTIVE.

         The headings, titles and captions used herein are for convenience only
and shall not affect the construction of this Security Agreement or any term or
provision hereof.

         13.13    ATTORNEYS' FEES AND COSTS.

         The Company agrees that upon the occurrence of an Event of Default, the
Company shall pay all costs and expenses actually incurred by Secured Party
(including without limitation attorney's fees and disbursements) incident to the
enforcement, collection, protection or preservation of any right or claim of
Secured Party under the Transfer Agreement or any Related Agreement, including
any such fees or costs incurred in connection with any bankruptcy or insolvency
proceeding of the Company.

         13.14    COUNTERPARTS.

         This Security Agreement may be executed in a number of counterparts and
each of such counterparts shall for all purposes be deemed an original; and all
such counterparts shall together constitute but one and the same agreement.

                                      * * *

                                      -20-
<PAGE>

         IN WITNESS WHEREOF, the Company has executed and entered into this
Security Agreement and delivered it to the Secured Party, effective as of the
date first set forth above.

         THE COMPANY:                       RSi BRE, INC.

                                            By:________________________________
                                            Print Name:
                                            Title:

         AGREED AND ACCEPTED as of this ______ day of ________________, 1999.

                                            RSG INVESTMENTS, LLC

                                            By:________________________________
                                            Print Name:
                                            Title:

                                      -21-
<PAGE>

STATE OF UTAH                       )
                                    )  ss.
County of ______________            )

         On this ______ day of ______, 1998, before the undersigned, a Notary
Public in and for said State, personally appeared
_______________________________, known or identified to me to be the
___________________ of RSi BRE, Inc., the corporation that executed the within
instrument or the person who executed the instrument on behalf of said
corporation, and acknowledged to me that such company executed the same.

         IN  WITNESS  WHEREOF, I have hereunto set my hand and affixed my
official seal this ______ day of __________, 1999.

                                  ------------------------------------
                                  Notary Public
                                  My commission expires________________

                                      -22-
<PAGE>

                                    EXHIBIT H

                     FORM OF RSI BRE STOCK PLEDGE AGREEMENT

                                  See Attached.

                       STOCK PLEDGE AND SECURITY AGREEMENT

         THIS STOCK PLEDGE AND SECURITY AGREEMENT (this "PLEDGE AGREEMENT") is
made and entered into as of the _____ day of September, 1999, by and between
ROOMSYSTEMS, INC., a Nevada corporation ("PLEDGOR"), and RSi BRE, INC., a Nevada
corporation (the "COMPANY") and RSG INVESTMENTS, LLC, an Idaho limited liability
company (the "SELLER").

                                R E C I T A L S:

         A. The Pledgor and the Seller have entered into an Equipment Transfer
Agreement of even date herewith ("EQUIPMENT TRANSFER AGREEMENT"); capitalized
terms used but not defined herein shall have the meanings set forth in the
Equipment Transfer Agreement), relating to sale and transfer by Seller of
certain Equipment and Revenue Sharing Contracts to the Company, a wholly-owned
subsidiary of Pledgor.

         B. A portion of the Purchase Price for the Equipment and Revenue
Sharing Contracts payable to the Seller is evidenced by an Equipment Purchase
Promissory Note of even date herewith (the "NOTE"), issued by the Company to
Seller in the original principal amount of $750,000.00.

         C. To secure the Company's obligation to repay the Note and the
performance by Pledgor and the Company of their obligations under the Equipment
Transfer Agreement and the Related Agreements (as defined in the Equipment
Transfer Agreement), Pledgor has agreed to grant to the Seller a pledge of and
security interest in one hundred (100) shares of the common voting stock of the
Company, represented by certificate no 1 (the "PLEDGED SHARES"). The Pledged
Shares represent all of the issued and outstanding capital stock of the Company.

         D. Pledgor, as the sole shareholder of the Company, has determined that
valuable benefits will be derived by Pledgor as a result of the sale and
transfer of the Equipment and Revenue Sharing Contracts to the Company pursuant
to the Equipment Transfer Agreement.

         E. Hawley Troxell Ennis & Hawley LLP ("ESCROW AGENT") is to hold the
certificate representing the Pledged shares in escrow pursuant to that certain
Escrow Agreement of even date herewith ("ESCROW AGREEMENT"), a form of which is
attached as Exhibit J to the Equipment Transfer Agreement. The parties will
enter into the Escrow Agreement concurrently with the execution and deliver of
this Pledge Agreement.

                               A G R E E M E N T:

         NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged and confessed, Pledgor agrees with Seller as
follows:

         1.       PLEDGE.

         Upon the terms hereof, Pledgor hereby grants to Seller a security
interest in and to all of

                                       -1-
<PAGE>

the right, title and interest of Pledgor in the following: (all of the following
being sometimes referred to herein as the "COLLATERAL"): (a) all of the Pledged
Shares now owned by Pledgor; (b) any additional shares of capital stock of the
Company hereafter acquired by Pledgor; (c) any and all proceeds or other sums
arising from or by virtue of, and all dividends and distributions (cash or
otherwise) payable and/or distributable with respect to, all or any of the
shares described in clause (a) and (b) hereof; and (d) all cash, securities,
dividends, and other property at any time and from time to time receivable or
otherwise distributed in respect of or in exchange for any or all of the shares
described in clause (a) and (b) hereof and any other property substituted or
exchanged therefor.

         2.       SECURED OBLIGATIONS.

         The security interest herein granted (the "SECURITY INTEREST") shall
secure the prompt and complete payment and performance when due (whether at the
obligation date, by acceleration or otherwise) of all of Pledgor's and the
Company's obligations, as applicable, under the Note, the Equipment Transfer
Agreement and the Related Agreements (collectively, the "SECURED OBLIGATIONS").
Upon full payment and performance of the Secured Obligations, the Security
Interest shall, at the request and expense of Pledgor, be released by the
Seller. Pledgor represents, warrants, covenants and agrees to and with the
Seller that: (a) the Pledgor is the legal and beneficial owner of the Pledged
Shares issued by the Company, and at the time of creation or acquisition of any
additional shares, the Pledgor will be the legal and beneficial owner of such
additional shares; (b) the Pledged Shares currently issued by the Company are,
and the Pledged Shares hereafter created or acquired shall be at the time of
creation or acquisition of such additional shares, duly authorized and issued,
fully paid and non-assessable, and all documentary, stamp or other taxes of fees
owing in connection with the issuance, transfer and/or pledge thereof have been
paid; (c) no dispute, right of setoff, counterclaim or defense exists with
respect to all or any part of the Pledged Shares; (d) the Pledged Shares are
free and clear of all liens, mortgages, pledges, charges, security interests or
other encumbrances, options, warrants, puts, calls and other rights of third
persons, and restrictions, other than (i) the Security Interest, and (ii)
restrictions on transferability imposed by applicable state and federal
securities laws; (e) the Pledgor has full right and authority to pledge the
Pledged Shares for the purposes and upon the terms set out herein, and the
execution, delivery and performance of this Pledge Agreement are not in
contravention of any indenture, agreement or undertaking to which the Pledgor is
a party or by which it is bound; and (f) a certificate representing the Pledged
Shares issued by the Company has been delivered to the Escrow Agent, together
with a duly executed blank stock power, for the certificate. IN ADDITION TO THE
FOREGOING, PLEDGOR REPRESENTS AND WARRANTS TO THE SELLER THAT THE PLEDGED SHARES
REPRESENT 100% OF THE ISSUED AND OUTSTANDING VOTING CAPITAL STOCK OF THE
COMPANY.

         3.       COVENANTS.

                  (A) FURTHER ACTS, ASSURANCES. Pledgor covenants and agrees to,
from time to time, promptly execute and deliver to the Seller all such other
assignments, certificates, supplemental writings and financing statements as the
Seller requests in order to perfect or

                                       -2-
<PAGE>

evidence the Security Interest. Pledgor further agrees that if Pledgor shall at
any time acquire any additional shares of the capital stock of any class of any
of the Company, and whether such acquisition shall be by purchase, exchange,
reclassification, dividend or otherwise, Pledgor shall forthwith (and without
the necessity for any request or demand by the Seller) deliver the certificates
representing such shares to the Seller, in the same manner and with the same
effect as described in SECTIONS 1 through 3 hereof. Upon delivery, such shares
shall thereupon constitute Pledged Shares and shall be subject to the Security
Interest herein created, for the purposes and upon the terms and conditions set
forth in this Pledge Agreement, and the Equipment Transfer Agreement.

                  (B) NO TRANSFER OF HYPOTHECATION. Pledgor shall not, without
the prior written consent of the Seller, transfer, assign, dispose of its right,
title or interest in the Pledged Shares, or any part thereof, or create directly
or indirectly any other security interest or otherwise encumber any of the
Pledged Shares, or permit any of the Pledged Shares to ever be or become subject
to any warrant, put, option or other rights of third persons or any attachment,
execution, sequestration or other legal or equitable process, or any security
interest or encumbrance of any kind, except the Security Interest. Pledgor will
warrant and defend the Security Interest created hereby against the claims of
all third parties other than the Seller.

                  (C) ENFORCEMENT. Pledgor shall enforce or secure in the name
of the Seller the performance of each and every obligation, term, covenant,
condition and agreement relating to the Pledged Shares by any other party
thereunder to be performed, and Pledgor shall appear in and defend any action or
proceeding arising under, occurring out of or in any manner connected with the
Pledged Shares or the obligations, duties or liabilities of any other party with
respect thereto, and upon request by the Seller, Pledgor will do so in the name
and on behalf of the Seller, but at the expense of Pledgor, and Pledgor shall
pay all costs and expenses of the Seller, including, but not limited to,
attorneys' fees and disbursements, in any action or proceeding in which the
Seller my appear.

                  (D) INSPECTION. Pledgor shall allow the Seller and its
authorized representatives to inspect all records of Pledgor and the Company
relating to the Pledged Shares, and to make and take away copies of such records
during normal business hours.

                  (E) CHANGES. Pledgor shall promptly notify the Seller of any
material change in any fact or circumstance warranted or represented by Pledgor
in this Pledge Agreement, in the Equipment Transfer Agreement, in any Related
Agreement or in any other writing furnished by Pledgor to the Seller in
connection with the sale and transfer of the Equipment and Revenue Sharing
Contracts or the Pledged Shares.

                  (F) CLAIMS. Pledgor shall promptly notify the Seller of any
claim, action or proceeding affecting title to the Pledged Shares, or any part
thereof, or the Security Interest, and at the request of the Seller, shall
appear in and defend, at Pledgor's sole cost and expense, any such action or
proceeding.

                                       -3-
<PAGE>

                  (G) COSTS. Pledgor shall promptly pay to the Seller the amount
of all reasonable costs and expenses of the Seller, including, but not limited
to, attorneys' fees, incurred by the Seller in connection with this Pledge
Agreement and the enforcement of the rights of the Seller hereunder.

         4.       CONVERSIONS; ETC.

         Should the Pledged Shares, or any part thereof, ever be in any manner
converted by the Company into another property of the same or another type or
any money or other proceeds ever be paid or delivered to Pledgor as a result of
Pledgor's rights in the Pledged Shares, then in any such event (except as
otherwise provided herein), all such property, money and other proceeds shall be
and/or become part of the Pledged Shares, and Pledgor covenants forthwith to pay
or deliver to the Seller all of the same which is susceptible of delivery; and
at the same time, if the Seller deems it necessary and so requests, Pledgor will
properly endorse or assign the same to the Seller. Without limiting the
generality of the foregoing, Pledgor hereby agrees that the shares of capital
stock of the surviving corporation in any merger, consolidation or
reorganization involving the Company or any of the Pledged Shares shall be
deemed to constitute the same property as the Pledged Shares. With respect to
any such property of a kind requiring an additional security agreement,
financing statement or other writing to perfect a security interest therein in
favor of the Seller, Pledgor will forthwith execute and deliver to the Seller
whatever the Seller shall deem necessary or proper for such purpose.

         5.       PAYMENTS ON THE PLEDGED SHARES.

         With respect to any instruments or warrants that are or become part of
the Pledged Shares, the Seller, without notice to Pledgor, shall have the right
at any time and from time to time, after the occurrence and during the
continuance of an Event of Default (as defined in the Equipment Transfer
Agreement), to notify and direct the Company to thereafter make all payments on
such Pledged Shares directly to the Seller, regardless of whether Pledgor was
previously making collections thereon, and, with respect to such instruments or
warrants that are stock certificates, shares of capital or permanent reserve
fund stock or beneficial interest, or other securities, the Seller shall have
authority, after the occurrence and during the continuance of an Event of
Default, without further notice to Pledgor, either to have them registered in
the Seller's name, or in the name of the Seller's nominee(s), or, with or
without registration, to demand of the Company, and to receive a receipt for,
any and all distributions payable with respect thereto, regardless of the medium
in which paid and whether they be ordinary or extraordinary. The Company shall
be fully protected in relying on the written statement of the Seller that it
then holds the Security Interest which entitles it to receive such payment. The
receipt of the Seller for such payment shall be full acquittance therefor to the
Seller, and Pledgor agrees, at the request of the Seller to execute and deliver
a letter to the Seller acknowledging this right of the Seller; PROVIDED,
HOWEVER, that the failure of Pledgor to execute and deliver such letter shall
not affect or limit the Seller's rights set forth herein.

                                       -4-
<PAGE>

         6.       PRESERVATION OF PLEDGED SHARES.

         The Seller shall have no responsibility for or obligation or duty with
respect to all or any part of the Pledged Shares or any matter or proceeding
arising out of or relating thereto, including, without limitation, any
obligation or duty to collect any sums due in respect thereof or to protect or
preserve any rights against prior parties or any other rights pertaining
thereto, it being understood and agreed that Pledgor shall be responsible
generally for the preservation of all rights in the Pledged Shares.

         7. RIGHTS OF PARTIES BEFORE AND AFTER THE OCCURRENCE OF AN EVENT OF
DEFAULT.

                  (A) EXERCISING  SHAREHOLDER  RIGHTS PRIOR TO AN EVENT OF
DEFAULT.  Unless and until an Event of Default shall occur,

                           (i) Prior to an Event of Default, Pledgor shall be
         entitled to receive all cash dividends paid to Pledgor in respect of or
         attributable to the Pledged Shares and any and all other Distributions
         (hereinafter defined), except as provided in the following sentence.
         Notwithstanding the foregoing, the Seller shall be entitled to receive,
         whether or not an Event of Default has occurred, any and all
         Distributions of stock, whether as a result of a stock dividend, stock
         split or otherwise. As used herein, "DISTRIBUTIONS" shall mean the
         retirement, redemption, purchase or other acquisition for value of the
         Pledged Shares, the declaration or payment of any dividend or other
         distribution on or with respect to the Pledged Shares, and any other
         payment made with respect to the Pledged Shares. All such Distributions
         of stock and, after the occurrence of an Event of Default and at any
         time thereafter if any Event of Default shall then be continuing, any
         and all other Distributions, shall, if received by any entity other
         than the Seller, be held in trust for the benefit of the Seller and
         shall forthwith be delivered to the Seller (accompanied by proper
         instruments of assignment and/or stock and/or bond powers executed by
         Pledgor in accordance with the Seller's instructions) to be held
         subject to the terms of this Pledge Agreement and the Escrow Agreement.
         Any cash proceeds of the Pledged Shares which come into the possession
         of the Seller may, at the Seller's option, be applied in whole or in
         part to the Pledge Obligations (to the extent then due), be released in
         whole or in part to or on the written instructions of Pledgor, or be
         retained in whole or in part by the Seller as additional security for
         the Payment and performance of the Secured Obligations. The Seller
         shall never be obligated to make any investment of such proceeds and
         shall never have any liability to Pledgor for any loss which may result
         therefrom. All interest and other amounts earned from any investment of
         such proceeds may be dealt with by the Seller in the same manner as
         other cash proceeds.

                           (ii) Pledgor shall have the right to vote and give
         consents with respect to all of the Pledged Shares and to consent to,
         ratify, or waive notice of

                                       -5-
<PAGE>

         any and all meetings; PROVIDED, HOWEVER, that such right shall in no
         case be exercised for any purpose contrary to, or in violation of, any
         of the terms or the provisions of this Pledge Agreement, the Escrow
         Agreement, the Equipment Transfer Agreement or any Related Agreement.

                  (B) EXERCISING SHAREHOLDER RIGHTS AFTER THE OCCURRENCE OF AN
EVENT OF DEFAULT. Upon the occurrence and during the continuance of an Event of
Default, the Seller, without the consent of Pledgor, may:

                           (i) At any time vote or consent in respect of any of
         the Pledged Shares and authorize any Pledged Shares to be voted and
         such consents to be given, ratify and waive notice of any and all
         meetings, and take such other action as shall seem desirable to the
         Seller, in its discretion, to protect or further the interest of the
         Seller in respect of any of the Pledged Shares as though it were the
         outright owner thereof, and, the Pledgor hereby irrevocably constitutes
         and appoints the Seller its sole proxy and attorney-in-fact, with full
         power of substitution to vote and act with respect to any and all
         Pledged Shares standing in the name of Pledgor or with respect to which
         Pledgor is entitled to vote and act. The proxy and power of attorney
         herein granted are coupled with interest, are irrevocable, and shall
         continue throughout the term of this Pledge Agreement;

                           (ii) In respect of any Pledged Shares, join in and
         become a party to any plan of recapitalization, reorganization or
         readjustment (whether voluntary or involuntary) as shall seem desirable
         to the Seller in respect of any such Pledged Shares, and deposit any
         such Pledged Shares under any such plan; make any exchange,
         substitution, cancellation or surrender of such Pledged Shares required
         by any such plan and take such action with respect to any such Pledged
         Shares as may be required by any such plan or for the accomplishment
         thereof; and no such disposition, exchange, substitution, cancellation
         or surrender shall be deemed to constitute a release of Pledged Shares
         from the Security Interest of this Pledge Agreement;

                           (iii) Receive all payments of whatever kind made upon
         or with respect to any Pledged Shares; and

                           (iv) Transfer into its name, or into the name or
         names of its nominee or nominees, all or any of the Pledged Shares.

         (C) RIGHT OF SALE AFTER THE OCCURRENCE OF AN EVENT OF DEFAULT. Upon the
occurrence and during the continuance of an Event of Default, the Seller may
sell, without recourse to judicial proceedings, by way of one or more contracts,
with the right to bid for and buy, free from any right of redemption, the
Pledged Shares or any part thereof, upon ten (10) days' notice (which notice is
agreed to be reasonable notice for the purposes hereof) to Pledgor of the time
and place of sale, for cash, upon credit or for future delivery, at the Seller's
option

                                       -6-
<PAGE>

and in the Seller's complete discretion:

                           (i)  At public sale, including a sale at any broker's
         board or exchange; or

                           (ii) At private sale in any manner which will not
         require the Pledged Shares, or any part thereof, to be registered in
         accordance with the Securities Act of 1933, as amended (the "ACT"), or
         the rules and regulations promulgated thereunder, or any other law or
         regulation, at the best price reasonably obtainable by the Seller at
         any such private sale or other disposition in the manner mentioned
         above. The Seller is also hereby authorized, but not obligated, to take
         such actions, give such notices, obtain such consents, and do such
         other things the Seller may deem required or appropriate in the event
         of sale or disposition of any of the Pledged Shares. Pledgor
         understands that the Seller may in its discretion approach a restricted
         number of potential purchasers and that a sale under such circumstances
         may yield a lower price for the Pledged Shares, or any portion thereof,
         than would otherwise be obtainable if the same were registered and sold
         in the open market. Pledgor agrees (A) that in the event the Seller
         shall so sell the Pledged Shares, or any portion thereof, at such
         private sale or sales, the Seller shall have the right to rely upon the
         advice and opinion of any member firm of a national securities exchange
         as to the best price reasonably obtainable upon such a private sale
         thereof (any expense borne by the Seller in obtaining such advice to be
         paid by Pledgor as an expense related to the exercise by the Seller of
         its rights hereunder), and (B) that such reliance shall be conclusive
         evidence that the Seller handled such matter in a commercially
         reasonable manner. The Seller shall be under no obligation to take any
         steps to permit the Pledged Shares to be sold at a public sale or to
         delay a sale to permit the Seller to register the Pledged Shares for
         public sale under the Act or applicable state securities law.

                  (D) SALE ON CREDIT. In case of any sale by the Seller of the
Pledged Shares on credit or for future delivery, the Pledged Shares sold may be
retained by the Seller until the selling prices is paid by the purchaser, but
the Seller shall incur no liability in case of failure of the purchaser to take
up and pay for the Pledged Shares so sold. In case of any such failure, such
Pledged Shares so sold may be again similarly sold.

                  (E) INDEMNIFICATION. In connection with the sale of the
Pledged Shares, the Seller is authorized, but not obligated, to limit
prospective purchasers to the extent deemed necessary or desirable by the Seller
to render such sale exempt from the registration requirements of the Act, and
any applicable state securities laws, and no sale so made in good faith by the
Seller shall be deemed not to be "commercially reasonable" because so made. If
the Seller determines to exercise its right to sell all or any of the Pledged
Shares, and if in the opinion of Hawley, Troxell, Ennis & Hawley LLP, or such
other reputable law firm selected by the Seller, it is necessary or advisable to
have such securities registered under the provision of such Act, or

                                       -7-
<PAGE>

any similar law relating to the registration of securities, Pledgor agrees, at
its own expense, to (i) execute and deliver all such instruments and documents,
and to do or cause to be done such other acts and things as may be necessary or,
in the opinion of Hawley, Troxell, Ennis & Hawley LLP, or such other reputable
law firm selected by the Seller, advisable to register such securities under the
provisions of such Act or any applicable similar law relating to the
registration of securities, and Pledgor will cause the registration statement
relating thereto to become effective and to remain effective for such period as
the Seller shall request, and to make all amendments thereof and/or to the
related prospectus which, in the opinion of Hawley, Troxell, Ennis & Hawley LLP,
or such other reputable law firm selected by the Seller, are necessary or
desirable, all in conformity with the requirements of such Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto; (ii)
qualify such securities under state "blue sky" or securities laws and obtain the
necessary approval of any tribunal to the sale of such securities; and (iii)
indemnify and hold harmless, and, along with the Company, to jointly and
severally agree to indemnify and hold harmless, the Seller, any underwriters
(and any person or entity controlling any of the foregoing), and their
respective employees, officers, members, managers, agents, attorneys, and
accountants (collectively, the "INDEMNIFIED PARTIES") from and against any loss,
liability, claim, damage and reasonable expense (including without limitation,
fees of counsel incurred in connection therewith) under such Act or otherwise,
insofar as such loss, liability, claim, damage or expense arises out of or is
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 such Act or other securities laws, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereto,
or arise out of or is based upon any omission or any alleged omission to state
therein a material fact required to be stated or necessary to make the
statements therein not misleading, such indemnification to remain operative
regardless of any investigation made by or on behalf of any Indemnified Party.

                  (D) OTHER RIGHTS AFTER AN EVENT OF DEFAULT. Upon the
occurrence and during the continuance of an Event of Default, the Seller, at its
election, may exercise any and all rights available to a secured party under the
Uniform commercial code or other applicable jurisdiction, as amended, in
addition to any and all other rights afforded hereunder, under the Equipment
Transfer Agreement or any Related Agreement, at law, in equity or otherwise.

         8.       NOTICES.

         Whenever this Pledge Agreement requires or permits any consent,
approval, notice, request or demand from any one party to another, the consent,
approval, notice, request or demand shall be deemed given if given in accordance
with SECTION 9 of the Equipment Transfer Agreement.

         9.       RIGHT TO FILE A FINANCING STATEMENT.

         The Seller shall have the right at any time to execute and file this
Pledge Agreement as a financing statement, but the failure of the Seller to do
so shall not impair the validity or enforceability of this Pledge Agreement or
the Security Interest.

                                       -8-
<PAGE>

         10.      WAIVER OF CERTAIN RIGHTS.

                  (a) To the full extent that it may lawfully so agree, the
Pledgor agrees that it will not at any time plead, claim or take the benefit of
any appraisement, valuation, stay, extension, moratorium or redemption law now
or hereafter in force in order to prevent or delay the enforcement of this
Pledge Agreement, or the absolute sale of all or any part of the Pledged Shares
or the possession thereof by any purchaser at any sale hereunder, and the
Pledgor hereby waives the benefit of all such laws to the extent it lawfully
may. Each right, power and remedy of the Seller provided for in this Pledge
Agreement or now or hereafter existing at law or in equity or by statute or
otherwise shall be cumulative and concurrent and shall be in addition to every
other right, power or remedy provided for in this Pledge Agreement or now or
hereafter existing at law or in equity or by statute or otherwise, and the
exercise or beginning of the exercise by the Seller of any one or more of such
rights, powers or remedies shall not preclude the simultaneous or later exercise
by the Seller of any or all such other rights, power or remedies. No failure or
delay on the part of the Seller to exercise any such right, powers or remedy and
no notice or demand which may be given to or make upon Pledgor by the Seller
with respect to any such remedies shall operate as a waiver thereof, or limit or
impair the Seller's right to take any action or to exercise any power or remedy
hereunder, under the Equipment Transfer Agreement or any of the Related
Agreements, without notice or demand, or prejudice its rights as against Pledgor
in any respect.

                  (b) Except for any notices required under the Equipment
Transfer Agreement or any Related Agreement, Pledgor hereby waives diligence,
presentment, demand, protest and notice of any kind whatsoever in respect of the
Secured Obligations (including, without limitation, notice of intent to
accelerate and of acceleration), as well as any requirement that the Seller
exhaust any right or remedy or take any action in connection with the Secured
Obligations, the Equipment Transfer Agreement or any of the Related Agreements
before exercising any right or remedy under this Pledge Agreement. The
obligations of Pledgor hereunder shall not be affected or impaired by reason of
the happening from time to time of any of the following, although without notice
to or the consent of Pledgor:

                           (i) the renewal or extension of the maturity of or
         the acceptance of partial payments with respect to any and all amounts
         due and owing under the Equipment Transfer Agreement or any Related
         Agreement, or any part thereof;

                           (ii) the alteration in any manner of the terms of the
         Note, the Equipment Transfer Agreement or any Related Agreement or any
         part thereof;

                           (iii) the waiver by the Seller of the performance or
         observance by the Company or its affiliates or Pledgor of any of their
         agreements, covenants, terms or conditions contained in the Note, the
         Equipment Transfer Agreement or any Related Agreement;

                                       -9-
<PAGE>

                           (iv) the voluntary or involuntary liquidation,
         dissolution, sale of all or substantially all of the assets,
         marshalling of assets and liabilities, receivership, conservatorship,
         insolvency, bankruptcy, assignment for the benefit of creditors,
         reorganization, arrangement, winding up, or other similar proceedings
         affecting the Company or its affiliates or Pledgor;

                           (v) the release by operation of law or otherwise of
         any of the other obligors from the performance or observance of any of
         the agreements, covenants, terms or conditions contained in the Note,
         the Equipment Transfer Agreement or in any Related Agreement (except to
         the extent, if any, that the obligations of Pledgor hereunder are
         specifically affected pursuant to or in connection with any such
         release); or

                           (vi) the release of any security for the Secured
         Obligations, whether under this Pledge Agreement, the Note, the
         Equipment Transfer Agreement or any of the Related Agreements (except
         to the extent, if any, that the obligations of Pledgor hereunder are
         specifically affected pursuant to or in connection with any such
         releas).

         11.      AMENDMENTS.

         This Pledge Agreement may be amended only by an instrument in writing
executed by all the parties hereto and supplemented only by documents delivered
or to be delivered in accordance with the express terms hereof.

         12.      MULTIPLE COUNTERPARTS.

         This Pledge Agreement may be executed in a number of identical
counterparts, each of which shall be deemed an original for all purposes and all
of which shall constitute, collectively, one agreement; but, in making proof of
this agreement, it shall not be necessary to produce or account for more than
one such counterpart.

         13.      PARTIES BOUND; ASSIGNMENT.

         This Pledge Agreement shall be binding on Pledgor and the Company and
Pledgor's and the Company's successors and assigns and shall inure to the
benefit of the Seller and the Seller's successors and assigns.

         14.      INVALID PROVISIONS.

         If any provision of this Pledge Agreement is held to be illegal,
invalid or unenforceable under present or future laws effective during the term
hereof, such provision shall be fully severable, this Pledge Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part hereof, and the remaining provisions hereof

                                      -10-
<PAGE>

shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom. Furthermore, in
lieu of such illegal, invalid or unenforceable provision there shall be added
automatically as a part of this Pledge Agreement a provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.

         15.      NO CONTROL BY THE SELLER.

         Notwithstanding anything herein to the contrary, this Pledge Agreement,
the Note, the Equipment Transfer Agreement and the other Related Agreements, and
the transactions contemplated hereby and thereby, do not and will not
constitute, create or have the effect of constituting or creating, directly or
indirectly, the actual or practical ownership of the Company by the Seller, or
control, affirmative or negative, direct or indirect, by the Seller over the
management or any other aspect of the day-to-day operation of the Company, which
ownership and control remains exclusively and at all times in the Company.

         16.      PARAGRAPH HEADINGS.

         The paragraph headings used in this Pledge Agreement are for
convenience of reference only and are not to affect the construction hereof or
be taken into consideration in the interpretation hereof.

         17.      CONSENT TO JURISDICTION; WAIVER OF IMMUNITIES; ATTORNEYS'
FEES.

                  (a) Pledgor and the Company hereby irrevocably submit to the
jurisdiction of any Idaho State or Federal court setting in Ada County, Idaho,
over any action or proceeding arising out of or relating to this Pledge
Agreement, the Note, the Equipment Transfer Agreement or any Related Agreement,
and Pledgor and the Company hereby irrevocably agree that all claims in respect
of such action or proceeding may be heard and determined in such Idaho State or
Federal court. Pledgor and the Company also irrevocably consent to the service
of any and all process in any such action or proceeding by the mailing of copies
of such process to Pledgor and the Company at the address shown in SECTION 9 of
the Equipment Transfer Agreement. Pledgor and the Company agree that a final
judgment on any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

                  (b) Nothing in this SECTION 17 shall affect any right of the
Seller to serve legal process in any other manner permitted by law or affect the
right of the Seller to bring any action or proceeding against Pledgor and the
Company in the courts of any other jurisdictions.

                  (c) To the extent that Pledgor and/or the Company has or
hereafter may acquire any immunity from jurisdiction of any court or from any
legal process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to itself
or its property, Pledgor and/or the Company, as applicable,

                                      -11-
<PAGE>

hereby irrevocably waive such immunity in respect of their obligations under
this Pledge Agreement and under the Equipment Transfer Agreement and Related
Agreements.

                  (d) The prevailing party in any action or proceeding relating
to this Pledge Agreement shall be entitled to recover from the non-prevailing
parties, reasonable attorneys' fees and other costs incurred with or without
trial, in bankruptcy or on appeal, in addition to any other relief to which such
prevailing party may be entitled.

         20.      COMPLETE AGREEMENT.

         THIS PLEDGE AGREEMENT, THE NOTE, THE EQUIPMENT TRANSFER AGREEMENT AND
THE RELATED AGREEMENTS COLLECTIVELY REPRESENT THE FINAL AGREEMENT BY AND AMONG
THE COMPANY, PLEDGOR AND SELLER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF PLEDGOR, THE COMPANY
AND THE SELLER. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN PLEDGOR, THE
COMPANY AND THE SELLER.

         21.      WAIVER OF JURY TRIAL.

         EACH OF THE PLEDGOR AND THE COMPANY HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY, ANY OBJECTION BASED ON FORUM NON
CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION OR PROCEEDING INSTITUTED
HEREUNDER OR UNDER THE NOTE OR THE EQUIPMENT TRANSFER AGREEMENT AND OF ANY
COUNTERCLAIM HEREIN AND THEREIN AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

         22.      GOVERNING LAW.

         THIS PLEDGE AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF IDAHO (WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OF LAW).

                           (INTENTIONALLY LEFT BLANK)

                                      -12-
<PAGE>

         THIS STOCK PLEDGE AND SECURITY AGREEMENT is executed effective as of
the date first written above.

                  PLEDGOR:                  ROOMSYSTEMS, INC.

                                            By:_________________________________
                                               Print Name:
                                               Title:

                  COMPANY:                  RSi BRE, INC.

                                            By:_________________________________
                                               Print Name:
                                               Title:

                  ACCEPTED AND AGREED, as of the
______ day of _________________, 1999.

                  SELLER:                   RSG INVESTMENTS, LLC

                                            By:_________________________________
                                               Print Name:
                                               Title:

                                      -13-
<PAGE>

                                    EXHIBIT I

                          FORM OF ROOMSYSTEMS GUARANTY

                                  See Attached.

                      CONTINUING AND UNCONDITIONAL GUARANTY

         THIS CONTINUING AND UNCONDITIONAL GUARANTY, dated as of September ____,
1999 (the "GUARANTY"), is executed by ROOMSYSTEMS, INC., a Nevada corporation
("GUARANTOR"), in favor of RSG INVESTMENTS, LLC, an Idaho limited liability
company (together with its successors and assigns, "RSG").

                                R E C I T A L S:

         A. RSi BRE, Inc., a Nevada corporation ("BUYER") is a wholly-owned
subsidiary of Guarantor.

         B. Buyer, Guarantor and RSG are parties to an Equipment Transfer
Agreement of even date herewith (the "TRANSFER AGREEMENT"), pursuant to which
Buyer is purchasing from RSG certain automated refreshment centers (including
related network computer systems and attached automated room safes, if any) (the
"UNITS"), and is taking an assignment of certain related Hotel Revenue Sharing
Lease Agreements (the "REVENUE SHARING CONTRACTS").

         C. A portion of the purchase price for the Units and Revenue Sharing
Contracts is represented by that certain Equipment Purchase Promissory Note of
even date herewith, in the original principal amount of $750,000.00 (the
"NOTE").

         D. RSG's obligation to accept the Note as partial payment of the
aforesaid purchase price is subject, among other conditions, to receipt by RSG
of this Guaranty, duly executed by Guarantor. Guarantor acknowledges that in
consideration of the sale of the Units and Revenue Sharing Contracts to Buyer
and as a condition of such sale, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by Guarantor, Guarantor
has entered into this Guaranty.

         E. Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Transfer Agreement.

                               A G R E E M E N T:

         NOW, THEREFORE, consideration of the benefits to Guarantor from RSG's
entering into the Transfer Agreement, the receipt and sufficiency of which are
hereby acknowledged by Guarantor, and to induce RSG to sell the Units and
Revenue Sharing Contracts to Buyer, Guarantor agrees as follows:

         1.       GUARANTY.

         Guarantor unconditionally, absolutely and irrevocably guarantees and
promises to pay to RSG, or order, at RSG's office located at the address set
forth in SECTION 7 hereof, on demand, in lawful money of the United States, any
and all Secured Obligations (as defined in the Transfer

                                       -1-
<PAGE>

Agreement), and to perform on demand any and all Secured Obligations. The
liability of Guarantor hereunder is independent of the Secured Obligations, and
a separate action or actions may be brought and prosecuted against Guarantor
irrespective of whether action is brought against Buyer or any other guarantor
of the Secured Obligations or whether Buyer or any other guarantor of the
Secured Obligations is joined in any such action or actions. This Guaranty is a
guaranty of payment and performance and not of collection.

         2.       COVENANTS.

         Guarantor hereby agrees (a) to deliver to RSG (i) notice of any Default
or Event of Default (as defined in the Transfer Agreement) or of any other event
or condition which could have a Material Adverse Effect (as defined in the
Transfer Agreement), and (ii) such other information regarding the business,
operations or financial or other condition of Guarantor or the Company as
required by the Transfer Agreement or as RSG may reasonably request; and (b) to
the extent failure to do so could have a Material Adverse Effect, to pay all
taxes and other charges imposed by any state, federal or local government
authority or regulatory body ("GOVERNMENTAL AUTHORITY") upon Guarantor or its
property as and when they become due.

         3.       AUTHORIZED ACTIONS.

         Guarantor authorizes RSG, in its discretion, without notice to
Guarantor, irrespective of any change in the financial condition of Buyer,
Guarantor or any other guarantor of the Secured Obligations since the date
hereof, and without affecting or impairing in any way the liability of Guarantor
hereunder, from time to time to (a) create new Secured Obligations, and, either
before or after receipt of notice of revocation, renew, compromise, extend,
accelerate or otherwise change the time for payment or performance of, or
otherwise change, amend or waive the terms of the Secured Obligations or any
part thereof, including, without limitation, increase or decrease of the rate of
interest thereon; (b) take and hold security for the payment or performance of
the Secured Obligations or any part thereof, including, without limitation,
increase or decrease of the rate of interest thereon; (b) take and hold security
for the payment or performance of the Secured Obligations and exchange, enforce,
waive or release any such security; (c) apply such security and direct the order
or manner of sale thereof; (d) purchase such security at a public or private
sale; (e) otherwise exercise any right or remedy it may have against Buyer,
Guarantor, any other guarantor of the Secured Obligations or any security,
including, without limitation, the right to foreclose upon any such security by
judicial or nonjudicial sale; (f) settle, compromise with, release or substitute
any one or more makers, endorsers or guarantors of the Secured Obligations; and
(g) assign the Secured Obligations, this Guaranty, the Transfer Agreement or the
other Related Agreements in whole or in part. Guarantor hereby agrees that none
of the foregoing acts constitutes a material alteration of Guarantor's liability
hereunder and specifically waives any such defense to liability otherwise
arising by reason of any such act.

                                       -2-
<PAGE>

         4.       WAIVERS.

                  4.1 Guarantor waives (a) any right to require RSG to (i)
proceed against Buyer or any other guarantor of the Secured Obligations, (ii)
proceed against or exhaust any security received from Buyer or any other
guarantor of the Secured Obligations, or (iii) pursue any other remedy in RSG's
power whatsoever; (b) any defense arising by reason of the application by Buyer
of the proceeds of any borrowing; (c) any defense resulting from the absence,
impairment or loss of any right of reimbursement, subrogation, contribution or
other right or remedy of Guarantor against Buyer, any other guarantor of the
Secured Obligations or any security, whether resulting from an election by RSG
to foreclose upon security by nonjudicial sale, or otherwise; (d) any setoff or
counterclaim of Buyer or any defense which results from any disability or other
defense of Buyer or the cessation or stay of enforcement from any whatsoever of
the liability of Buyer (including, without limitation, the lack of validity or
enforceability of the Transfer Agreement or any Related Agreement); (e) any
right to exoneration of sureties which would otherwise be applicable; (f) any
right of subrogation or reimbursement and, if there are any other guarantors of
the Secured Obligations, any right of contribution, and right to enforce any
remedy which RSG now has or may hereafter have against Buyer, and any benefit
of, and any right to participate in, any security now or hereafter received by
RSG; (g) all presentments, diligence, demands for performance, notices of
nonperformance, notices delivered under the Transfer Agreement or any Related
Agreement, protests, notice of dishonor, and notices of acceptance of this
Guaranty and of the existence, creation or incurring of new or additional
Secured Obligations and notices of any public or private foreclosure sale; (h)
the benefit of any statue of limitations to the extent permitted by law; (i) any
appraisement, valuation, stay, extension, moratorium redemption or similar law
or similar rights for marshalling; (j) any right to be informed by RSG of the
financial condition of Buyer or any other guarantor of the Secured Obligations
or any change thereof or any other circumstances bearing upon the risk of
nonpayment or nonperformance of the Secured Obligations; (k) the benefit of all
principles or provisions of law, statutory or otherwise, which are or might be
in conflict with the terms of this Guaranty, and agrees that the obligations of
the Guarantor shall not be affected by any circumstances, whether or not
referred to in this Guaranty, which might otherwise constitute a legal or
equitable discharge of guarantors. Guarantor has the ability and assumes the
responsibility for keeping informed of the financial condition of Buyer and any
other guarantors of the Secured Obligations and of other circumstances affecting
such nonpayment and nonperformance risks. Without limiting the generality of any
of the foregoing, Guarantor hereby waives (i) any right to be reimbursed by
Buyer or any other guarantor of the Secured Obligations for any payment of the
Secured Obligations made directly or indirectly by Guarantor or from any
property of Guarantor, whether arising by way of any statutory, contractual or
other right of subrogation, contribution, indemnification or otherwise.

                  4.2 The obligations of the Guarantor hereunder shall not be
released, diminished, impaired, reduced, dependent upon or affected by any one
or more of the following: (i) the genuineness, validity, regularity or
enforceability of, or the existence of, or the existence of any default with
respect to, the Secured Obligations, any security therefor, or any related
instrument, documents, obligation, transaction or matter; (ii) the nature,
extent, condition, value or continued existence

                                       -3-
<PAGE>

of any security given in connection with the Secured Obligations; (iii) any
action or failure to take action by any holder of the Secured Obligations under
or with respect to this Guaranty or the Secured Obligations, any security
therefor, or any related documents, transaction or matter; (iv) any other
dealings between any holder of the Secured Obligations and RSG; (v) any other
dealings between any holder of the Secured Obligations and RSG; (v) any
exculpatory language or provisions limiting or restricting RSG's rights or
remedies against Buyer under the Transfer Agreement and the Related Agreements;
or (vi) any claim by or on behalf of Buyer of any credit or right to setoff with
respect to the Note or any of the Secured Obligations. This Guaranty is
irrevocable and the obligations of the Guarantor hereunder shall terminate and
cease only at the time RSG receives payment in full of all of the Secured
Obligations or the Guarantor pays the Secured Obligations to the full and
maximum extent of its liability hereunder.

                  4.3 The Guarantor agrees that this Guaranty shall continue to
be effective or be reinstated, as the case may be, if at any time, payment of
the Secured Obligations or any part thereof is rescinded or must otherwise be
restored by RSG upon or as a result of the bankruptcy or reorganization of Buyer
or otherwise. If after receipt of any payment of, or the proceeds of any
collateral for, all or any part of the Secured Obligations, RSG is compelled to
surrender or voluntarily surrenders such payment or proceeds to any person
because such payment or application of proceeds is or may be avoided,
invalidated, recaptured or set aside as a preference, fraudulent conveyance,
impermissible setoff, or by any other reason, whether or not such surrender is
the result of: (i) any judgment, decree or order of any court or administrative
body having jurisdiction over RSG; or (ii) any settlement or compromise by RSG
of any claim as to any of the foregoing, with any person (including Buyer), then
the Secured Obligations or affected part thereof shall be reinstated and
continue and this Guaranty shall be reinstated and continue in full force as to
such Secured Obligations or part thereof as if such payment or proceeds had not
been received, notwithstanding any previous cancellation of any instrument
delivered to evidence the satisfaction thereof. The provisions hereof shall
survive the termination of this Guaranty and any satisfaction and discharge by
the Buyer by virtue of any payment, court order, or any federal or state law.

         5.       SUBORDINATION.

         Guarantor hereby subordinates any indebtedness, liabilities and
obligations of Buyer to Guarantor to the Secured Obligations. Guarantor agrees
that RSG shall be entitled to receive payment of all Secured Obligations before
Guarantor receives payment of any indebtedness, liability or obligation of Buyer
to Guarantor. Any payments on such indebtedness, liability or obligation of
Buyer to Guarantor, if RSG so requests, shall be collected, enforced and
received by Guarantor as trustee for RSG and be paid over to RSG on account of
the Secured Obligations, but without reducing or affecting in any manner the
liability of Guarantor under the other provisions of this Guaranty. RSG is
authorized and empowered (but without any obligation to so do), in its
discretion, as attorney-in-fact (with such power being coupled with an interest)
for Guarantor or otherwise (a) in the name of Guarantor, to collect and enforce,
and to submit claims in respect of, any indebtedness, liability or obligation of
Buyer to Guarantor and to apply any amounts received thereon to the Secured
Obligations, and (b) to require Guarantor (i) to collect

                                       -4-
<PAGE>

and enforce, and to submit claims in respect of, any indebtedness, liability or
obligation of Buyer to Guarantor, and (ii) to pay any amounts received on such
indebtedness, liability or obligation to RSG for application to the Secured
Obligations. Guarantor hereby assigns to RSG all of Guarantor's rights to any
payments or distributions to which Guarantor would be entitled under this
Guaranty.

         6.       GENERAL PLEDGE; SETOFF; NONWAIVER.

                  6.1 In addition to all liens upon and rights of setoff against
the property of Guarantor given to RSG by law or separate agreement to secure
the liabilities of Guarantor hereunder, to the extent permitted by law,
Guarantor hereby grants to RSG a security interest in (i) all monies, deposit
accounts, securities and other property of Guarantor now or hereafter in the
possession of or on deposit with RSG, whether held in a general or special
account or deposit, or for safekeeping or otherwise and (ii) all payments
received from the Revenue Sharing Contracts and New BRE Revenue Sharing
Contracts. RSG shall have all rights and remedies of a secured party with
respect to such property.

                  6.2 In addition to any rights and remedies of RSG provided by
law, RSG shall have the right, without prior notice to Guarantor, any such
notice being expressly waived by Guarantor to the extent permitted by applicable
law, upon the occurrence and during the continuance of an Event of Default (as
defined in the Transfer Agreement), to set-off and apply against the Secured
Obligations, whether matured or unmatured, any amount owing from RSG to
Guarantor, including all deposits, accounts and moneys of Guarantor then or
thereafter maintained with RSG, at or at any time after, the happening of any of
the above mentioned events.

                  6.3 No security interest or right of setoff shall be deemed to
have been waived by any act or conduct on the part of RSG or by any failure to
exercise such right of setoff or to enforce such security interest, or by any
delay in so doing; and every right of setoff and security interest shall
continue in full force and effect until such right of setoff or security
interest is specifically waived or released by an instrument in writing executed
by RSG.

         7.       MISCELLANEOUS.

                  7.1 NOTICES. Any notice or demand required or permitted to be
given under the terms of this Agreement shall be deemed to have been duly given
or made if given by any of the following methods:

                           (a)      Deposited in the United States mail, in a
sealed envelope, postage prepaid, by registered or certified mail, return
receipt requested, respectively addressed as follows:

                                       -5-
<PAGE>

              TO GUARANTOR:              RoomSystems, Inc.
                                         ATTENTION:  Derek K. Ellis
                                         Chief Financial Officer
                                         390 North 3050 East
                                         St. George, Utah  84790
                                         Telephone:  435/688-3605
                                         Fax number:  435/628-8611

              IF TO RSG:                 RSG Investments, LLC
                                         ATTENTION:  Donnelly Prehn
                                         412 E. ParkCenter Blvd., Suite 300
                                         Boise, Idaho  83706
                                         Telephone:  208/333-2072
                                         Fax number:  208/343-1145

              WITH A COPY
              TO:                        AMRESCO Leasing Corporation
                                         ATTENTION:  William C. Cole, Esq.
                                         412 E. ParkCenter Blvd., Suite 300
                                         Boise, Idaho  83702
                                         Telephone:  208/333-2000
                                         Fax number:  208/333-2050

                           (b)      Hand-delivered or sent to the above address
via an established national overnight delivery service (such as Federal
Express), charges prepaid, or

                           (c)      Sent via any electronic communications
method provided the sender obtains written confirmation of receipt of the
communication by the electronic communication equipment at the office of the
address listed above.

         Notices delivered by mail shall be deemed given five (5) Business Days
after being deposited in the United States mail, return receipt requested.
Notices delivered by hand, by facsimile, or by a nationally recognized private
carrier shall be deemed given on the first Business Day following receipt;
PROVIDED, HOWEVER, that a notice delivered by facsimile shall only be effective
if such notice is also delivered by hand, or deposited in the United States
mail, postage prepaid, registered or certified mail, on or before two (2)
Business Days after it is delivered by facsimile. Any party may hereinafter
designate other addresses to which notice may be sent, upon written notice sent
to the other parties at the address above designated, or subsequently designated
in accordance herewith.

                  7.2 AMENDMENTS AND WAIVERS. This Guaranty may not be amended
or modified, nor may any of its terms be waived, except by written instruments
signed by Guarantor and RSG. No failure or delay on RSG's part in exercising any
right hereunder shall operate as a waiver thereof or of any other right nor
shall any single or partial exercise of any such right

                                       -6-
<PAGE>

preclude any other further exercise thereof or of any other right. Unless
otherwise specified in any such waiver or consent, each waiver or consent under
any provision hereof shall be effective only in the specific instance and for
the purpose for which given.

                  7.3 ASSIGNMENTS. This Guaranty shall be binding upon and inure
to the benefit of RSG, all future holders of the Note and their respective
successors and assigns. Guarantor may not sell, assign or delegate any of its
rights or obligations hereunder. This Guaranty is assignable by RSG with the
Secured Obligations which it guarantees and when so assigned, the Guarantor
shall be bound to the assignees without in any manner affecting Guarantor's
liability hereunder for any part of the Secured Obligations retained by RSG.

                  7.4 CUMULATIVE RIGHTS, ETC. The rights, powers and remedies of
RSG under this Guaranty shall be in addition to all rights, powers and remedies
given to RSG by virtue of any applicable law, rule or regulation of any
Governmental Authority, the Transfer Agreement or any Related Agreement or any
other agreement, all of which rights, powers, and remedies shall be cumulative
and may be exercised successively or concurrently without impairing RSG's rights
hereunder.

                  7.5 PAYMENTS FREE OF TAXES, ETC. All payments made by
Guarantor under this Guaranty shall be made by Guarantor free and clear of and
without deduction for any and all present and future taxes, levies, charges,
deductions and withholdings. In addition, Guarantor shall pay upon demand any
stamp or other taxes, levies or charges of any jurisdiction with respect to the
execution, delivery, registration, performance and enforcement of this Guaranty.
Upon request by RSG, Guarantor shall furnish evidence satisfactory to RSG that
all requisite authorizations and approvals by, and notices to and filings with,
Governmental Authorities have been obtained and made and that all requisite
taxes, levies and charges have been paid.

                  7.6 PARTIAL INVALIDITY. If at any time any provision of this
Guaranty is or becomes illegal, invalid or unenforceable in any respect under
the law of any jurisdiction, neither the legality, validity or enforceability of
the remaining provisions of this Guaranty nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall
in any way be affected or impaired thereby.

                  7.7 GOVERNING LAW AND VENUE. This Guaranty shall be governed
by, construed, interpreted and applied in accordance with the laws of the State
of Idaho, without giving effect to any conflict of laws rules that would refer
the matter to the laws of another jurisdiction. In the event any action or
dispute is initiated hereunder, each party hereto hereby irrevocably submits to
the exclusive jurisdiction of the courts of the State of Idaho in Ada County,
for the purposes of any action arising out of this Guaranty, or the subject
matter hereof or thereof. To the extent permitted by applicable law, each party
hereby waives and agrees not to assert, by way of motion, as a defense or
otherwise in any such action, any claim (i) that it is not subject to the
jurisdiction of the above-named courts, (ii) that the action is brought in an
inconvenient forum, (iii) that it is immune from any legal process with respect
to itself or its property, (iv) that the

                                       -7-
<PAGE>

venue of the suit, action or proceeding is improper or (v) that this Guaranty,
or the subject matter hereof, may not be enforced in or by such courts.

                  7.8 JURY TRIAL. EACH OF GUARANTOR AND RSG, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY AS TO ANY ISSUE RELATING HERETO IN ANY ACTION, PROCEEDING, OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY, THE TRANSFER AGREEMENT
OR ANY OTHER RELATED AGREEMENT.

                  7.9 COSTS. Guarantor shall pay all costs incurred by RSG in
connection herewith, including, but not limited to, reasonable attorneys' fees,
and all other costs and expenses associated with court and/or administrative
proceedings through the appellate level, incurred by reason of any action, suit,
proceeding, hearing, motion or application before any court or administrative
body in which RSG may be or become a party by reason of this Guaranty,
including, but not limited to, condemnation, bankruptcy and administrative
proceedings, as well as any other of the foregoing where a proof of claim is by
law required to be filed, or in which it becomes necessary to defend or uphold
the terms hereof (the "COSTS"), in the event that (a) there shall occur any
default under this Guaranty; (b) RSG is made party to any litigation merely
because of the existence of this Guaranty; (c) it becomes necessary, by reason
of acts or omissions of Guarantor for RSG to seek the advice of counsel with
respect to this Guaranty; or (d) it becomes necessary for RSG to seek the advice
of or retain counsel by reason of any request of Guarantor. Said Costs shall be
paid in addition to the amounts guaranteed in accordance with the provisions
hereof.

                  7.10 COUNTERPARTS. This Guaranty may be executed in any number
of counterparts, each of which shall be an original, but all of which together
shall constitute one and the same instrument. Any counterpart may be delivered
by facsimile; PROVIDED, HOWEVER, that attachment thereof shall constitute the
representation and warranty of the person delivering such signature that such
person has full power and authority to attach such signature and to deliver this
Guaranty. Any facsimile signature shall be replaced with an original signature
as promptly as practicable.

                            [SIGNATURE PAGE FOLLOWS]

                                       -8-
<PAGE>

         IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed
as of the day and year first above written.

                                         ROOMSYSTEMS, INC.

                                         By:_________________________________
                                         Name:_______________________________
                                         Title:______________________________

                                       -9-
<PAGE>

                                    EXHIBIT J

                            FORM OF ESCROW AGREEMENT

                                  See Attached.

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "ESCROW AGREEMENT") is effective as of the
______ day of September, 1999, by and between RoomSystems, Inc., a Nevada
corporation ("ROOMSYSTEMS"), RSi BRE, a Nevada corporation (the "Company"), RSG
INVESTMENTS, LLC, an Idaho limited liability company (RSG), and HAWLEY TROXELL
ENNIS & HAWLEY LLP, an Idaho limited liability partnership ("ESCROW AGENT").

                                R E C I T A L S:

         A. RoomSystems is the record and beneficial owner of one hundred (100)
shares of the voting common stock of the Company, which such shares represent
all of the issued and outstanding capital stock of the Company.

         B. The Company, RoomSystems, a corporate affiliate of RoomSystems, and
RSG have entered into an Equipment Transfer Agreement (the "TRANSFER AGREEMENT")
of even date herewith, pursuant to which the Company has purchased from RSG
certain fully automated refreshment centers (including related network computer
systems and attached automated room safes, if any (the "EQUIPMENT") and related
Revenue Sharing Contracts ("REVENUE SHARING CONTRACTS").

         C. Pursuant to the Transfer Agreement, a portion of the Purchase Price
for the Equipment and Revenue Sharing Contracts is represented by an Equipment
Purchase Promissory Note (the "NOTE"), in the original principal amount of
$750,000. As used herein, "SECURED OBLIGATIONS" means collectively all
obligations of RoomSystems and the Company, as applicable, under the Note, the
Transfer Agreement and the Related Agreements. Unless otherwise defined herein,
capitalized terms used herein shall have the meaning given to such terms in the
Transfer Agreement.

         D. In consideration for the agreement of RSG to sell and transfer the
Equipment and Revenue Sharing Contracts to the Company and in order to provide
additional collateral as security for the Secured Obligations, RSG has requested
that the Company and RoomSystems enter into (i) a Security Agreement of even
date herewith ("SECURITY AGREEMENT"), pursuant to which the Company and
RoomSystems have granted to RSG a first priority security interest and lien in
and to the assets and properties of the Company (including, without limitation,
the Revenue Sharing Contracts and New RSi BRE Revenue Sharing Contracts), and
(ii) a Stock Pledge and Security Agreement of even date herewith (the "PLEDGE
AGREEMENT"), pursuant to which RoomSystems has pledged the shares of common
voting stock of the Company referenced in Recital A above (the "PLEDGED SHARES")
to RSG.

         E. RoomSystems and the Company have deposited the originally executed
Revenue Sharing Contracts and a certificate representing the Pledged Shares with
the Escrow Agent in accordance with the terms hereof. In addition, RoomSystems
and the Company have agreed to

                                       -1-
<PAGE>

promptly deposit with the Escrow Agent any New RSi BRE Revenue Sharing Contracts
entered into by Rsi BRE or by RoomSystems, on behalf of RSi BRE. Such Revenue
Sharing Contracts, New RSi BRE Revenue Sharing Contracts, and the Pledged Shares
are sometimes referred to herein as the "COLLATERAL."

                               A G R E E M E N T:

         NOW, THEREFORE, for valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

         1.       ESCROW.

         The Escrow Agent hereby agrees to hold the Collateral subject to the
terms of this Escrow Agreement, the Pledge Agreement and the Security Agreement.
By its execution and delivery of this Escrow Agreement, the Escrow Agent
acknowledges receipt of the initial Revenue Sharing Contracts and the
certificate representing the Pledged Shares, and agrees to hold any new RSi BRE
Revenue Sharing Contracts pursuant to the terms and conditions of this
Agreement. So long as any of the Secured Obligations are due and payable and
remain outstanding, and so long as no Event of Default (as defined in the
Transfer Agreement) has occurred and is continuing, the Escrow Agent agrees to
hold the Collateral subject to the terms of the Pledge Agreement and Security
Agreement and of the terms hereof.

         2.       DISTRIBUTION OF COLLATERAL.

         The Collateral held by Escrow Agent shall be distributed as provided
below:

                  2.1 When and if any party to this Escrow Agreement makes
demand upon the Escrow Agent for the delivery, transfer or other disposition of
the Collateral, the Escrow Agent shall place all other parties to this Escrow
Agreement on notice of such demand as soon as is practicable, and before Escrow
Agent responds to any such demand for delivery, transfer or other disposition of
the Collateral.

                  2.2 Any party to this Escrow Agreement shall have at least ten
(10) days after receipt of such notice referenced in SECTION 2.1 above to object
in writing to the demand for any delivery, transfer or other disposition of the
Collateral. If after 10 days the Escrow Agent receives no written objection from
any party, it is entitled to honor the demand for transfer, delivery or other
disposition, as soon thereafter as is practicable, and without liability to any
party to this Escrow Agreement. If the Escrow Agent receives a timely objection
to any demand by another party relating to delivery, transfer or other
disposition of the Collateral, the Escrow Agent must place the party seeking
delivery, transfer or other disposition of the Collateral on notice of such
objection as soon as is practicable.

                  2.3 In the event that the dispute between the parties
regarding such delivery, transfer or other disposition is resolved between the
parties within a reasonable period of time,

                                       -2-
<PAGE>

and without the necessity of litigation, such parties shall present the Escrow
Agent with a certificate signed by them, setting forth their agreed upon
instructions to the Escrow Agent regarding the delivery, transfer or other
disposition of the Collateral. The Escrow Agent is entitled to honor any such
certificate for delivery, transfer or other disposition of the Collateral as
soon as practicable thereafter, and without liability to the parties therefor.

                  2.4 In the event that the dispute between the parties
regarding such delivery, transfer or other disposition cannot be resolved
between the parties within a reasonable period of time, the Escrow Agent in its
discretion may (i) deposit the Collateral into the registry of any court of
competent jurisdiction, and simultaneously file an interpleader action in such
court, naming the demanding and objecting parties, or (ii) deposit the
Collateral with another escrow agent or trustee selected by the Escrow Agent to
be held and disposed of in accordance with the terms of this Escrow Agreement.

         3.       COMMUNICATIONS.

         All communications between the parties to this Escrow Agreement and the
Escrow Agent shall be in writing. The Escrow Agent shall not be required to
respond to any oral communications, requests or demands.

         4.       RELIANCE.

                  4.1 The Escrow Agent is authorized, in its sole discretion, to
disregard any and all notices or instructions given by any of the parties hereto
or by any other person, firm, corporation or other entity, except only (a) such
notices or instructions as are herein provided for and (b) orders or processes
of any court entered or issued with or without jurisdiction. If any property
subject hereto is at any time attached, garnished or levied upon by court order,
or in case the payment, assignment, transfer, conveyance or delivery of any such
property shall be stayed or enjoined by any court order, or in case an order,
writ, judgment or decree shall be made or entered by any court affecting such
property, or any part thereof, then and in any of such events, Escrow Agent is
authorized, in its sole discretion, to rely upon and comply with any such order,
writ, judgment or decree, which Escrow Agent believes to be binding upon it, and
if Escrow Agent complies with any such order, writ, judgment or decree, it shall
not be liable to any of the parties hereto or to any other person, firm or
corporation by reason of such compliance, even though such order, writ, judgment
or decree may be subsequently reversed, modified, annulled, set aside or
vacated.

                  4.2 Escrow Agent and its members, associates and employees
shall not be responsible for the sufficiency or accuracy of the form, execution,
validity or genuineness of documents or instruments now or hereafter deposited
hereunder; nor shall Escrow Agent or any of the above persons be responsible or
liable in any respect on account of the identity, authority or rights of the
persons executing or purporting to execute or deliver any such document or
instrument under this Escrow Agreement.

                                       -3-
<PAGE>

                  4.3 Escrow Agent may rely, and shall be fully protected in
acting upon, any paper or other document which may be submitted to Escrow Agent
in connection with its duties hereunder and which is believed by Escrow Agent to
be genuine and to have been signed or presented by the proper party or parties,
and Escrow Agent shall have no liability or responsibility with respect to the
form, execution or validity thereof.

         5.       COSTS AND FEES.

         The costs and fees of the Escrow Agent incurred in taking any action
under the terms of this Escrow Agreement shall be paid and borne entirely by the
party which requests such action of the Escrow Agent.

         6.       TERMINATION.

         The Escrow Agent's obligations hereunder shall terminate at such a time
as the Collateral shall have been distributed by the Escrow Agent pursuant to
SECTION 2 hereof, or at such time as the Escrow Agent causes the Collateral to
be deposited with another escrow agent or trustee, or brings an action of
interpleader.

         7.       LIMITATION OF RESPONSIBILITIES.

         The Escrow Agent's responsibilities hereunder are limited to those
specified in this Escrow Agreement. The Escrow Agent is not responsible for any
act or omission performed in good faith and not resulting from gross negligence
or willful misconduct on its part. In addition, the Escrow Agent is not
responsible for any of the following:

                  (a) Correctness, completeness or legal sufficiency of this
         Escrow Agreement or any instructions pursuant hereto;

                  (b) Any loss which occurs due to forgery or misrepresentation.

         8.       INDEMNIFICATION.

                  8.1 RoomSystems, the Company and RSG, jointly and severally,
shall indemnify and hold the Escrow Agent, its partners, associates and
employees harmless in respect to any action or omission performed or omitted by
the Escrow Agent, as long as such action or omission is performed in good faith,
and in conformity with the provisions of this Escrow Agreement and is not the
result of gross negligence or willful misconduct on its part.

                  8.2 Escrow Agent shall not be required to institute or defend
any actions or legal process involving any matter referred to herein which in
any manner affects it or its duties or liabilities hereunder unless and until
Escrow Agent shall have received full indemnity in an amount, and of such
character, as Escrow Agent shall in its sole discretion require, against any and
all claims, liabilities, judgments, attorneys' fees and other costs and expenses
of any and

                                       -4-
<PAGE>

every kind and nature in relation thereto.

         9.       RESIGNATION AND REMOVAL.

         The Escrow Agent may resign and be discharged from its duties and
obligations hereunder by giving notice of such resignation in writing in the
manner specified herein, specifying a date (not less than thirty (30) days
following the date of such notice of resignation) when such resignation shall
take effect, subject to the receipt by it of an instrument of acceptance
executed by a successor escrow agent or trustee and upon delivery by Escrow
Agent to such successor of all of the certificates and instruments then held by
it hereunder. The Escrow Agent may be removed and a successor escrow agent may
be appointed at any time upon thirty (30) days' prior written notice signed by
RoomSystems, the Company and RSG and delivered to Escrow Agent and the successor
escrow agent.

         10.      NOTICES.

         All notices or other communications required or permitted hereunder
shall be in writing and shall be deemed effective if given in accordance with
the procedures, and to the addresses set forth in, the Transfer Agreement.

         11.      GENERAL PROVISIONS.

                  11.1 This Escrow Agreement shall inure to the benefit of and
shall be binding upon the parties and their respective heirs, successors and
assigns.

                  11.2 This Escrow Agreement shall be deemed to be made in, and
in all respects shall be interpreted, construed and governed by and in
accordance with, the laws of the State of Idaho, and the venue of any action or
proceeding with respect to this Escrow Agreement shall be in Ada County, Idaho.

                  11.3 This Escrow Agreement and the Pledge Agreement contain
the entire agreement between the parties with respect to the administration and
distribution of the Collateral. This Escrow Agreement may not be modified or
amended except in writing signed by the parties.

                  11.4 No delay or failure of any party hereto to exercise any
right, remedy, power or privilege hereunder shall impair the same or be
construed to be a waiver of the same. No single or partial exercise of any
right, remedy, power or privilege shall preclude other or further exercise
thereof.

                  11.5 At any time before or after execution hereof, the parties
hereto shall each perform such acts, execute and deliver such instruments and
documents, and do all other things as may be reasonably necessary to accomplish
the transactions contemplated in this Escrow Agreement or to otherwise carry out
the purposes of this Escrow Agreement which are not inconsistent with their
rights and obligations hereunder and under the Stock Pledge Agreement,

                                       -5-
<PAGE>

the Transfer Agreement and the other agreements, documents and instruments
executed in connection therewith.

                  11.6 The paragraph headings used in this Escrow Agreement are
for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.

                  11.7 This Escrow Agreement may be executed in counterparts,
each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

                  11.8 ROOMSYSTEMS AND THE COMPANY ACKNOWLEDGE THAT ESCROW AGENT
IS COUNSEL TO RSG AND THAT ESCROW AGENT'S ACCEPTANCE OR PERFORMANCE OF THE
DUTIES DESCRIBED IN THIS ESCROW AGREEMENT SHALL NOT PROHIBIT OR RESTRAIN ESCROW
AGENT FROM CONTINUING TO ACT AT ANY TIME AS COUNSEL TO RSG.

                            [SIGNATURE PAGE FOLLOWS]

                                       -6-
<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Stock Escrow
Agreement as of the day and year first above written.

         ROOMSYSTEMS:             ROOMSYSTEMS, INC.

                                  By:_______________________________________
                                  Print Name:
                                  Title:

         COMPANY:                 RSi BRE, INC.

                                  By:_______________________________________
                                  Print Name:
                                  Title:

         RSG:                     RSG INVESTMENTS, LLC

                                  By:_______________________________________
                                  Print Name:
                                  Title:

         ESCROW AGENT:            HAWLEY TROXELL ENNIS & HAWLEY LLP, an Idaho
                                  limited liability partnership

                                  By:_______________________________________
                                  Print Name:
                                  Title:

                                       -7-
<PAGE>

                                    EXHIBIT K

              FORM OF FIRST AMENDMENT TO INVESTOR RIGHTS AGREEMENT

                                  See Attached.

                  FIRST AMENDMENT TO INVESTOR RIGHTS AGREEMENT

         THIS FIRST AMENDMENT ("FIRST AMENDMENT") is entered into as of the
_____ day of September, 1999, by and among ROOMSYSTEMS, INC., a Nevada
corporation (the "COMPANY"), RSG INVESTMENTS, LLC, an Idaho limited liability
company ("RSG"), and those persons identified on the Signature Page of this
First Amendment (each individually a "HOLDER," and collectively, the "HOLDERS").

                                R E C I T A L S:

         A. Pursuant to an Equipment Purchase Agreement, dated as of July 15,
1998 (the "MASTER Agreement"), RSG agreed to purchase from the Company certain
Equipment (as defined in the Master Agreement).

         B. As part of the consideration for the purchase of such Equipment, the
Company granted to the Holders certain Warrants (as defined in the Master
Agreement), and the Company agreed to extend to the Holders certain registration
rights, information rights and other rights set forth in the Investor Rights
Agreement dated as of July 17, 1998 (the "INVESTOR RIGHTS AGREEMENT").

         C. The Company, RSG and RSi BRE, Inc., a Nevada corporation and a
wholly-owned subsidiary of the Company ("RSI BRE") have entered into an
Equipment Transfer Agreement of even date herewith (the "EQUIPMENT TRANSFER
AGREEMENT"), pursuant to which RSG has agreed to sell the equipment to RSi BRE.

         D. A portion of the purchase price of the Equipment is being paid in
the form of 166,667 shares of Series B Preferred Stock of the Company (the
"COMPANY SHARES"). In addition, under the Equipment Transfer Agreement, the
parties have agreed that the Warrants heretofore granted to the Holders shall be
cancelled and terminated.

         E. It is a condition of RSG's agreeing to sell the Equipment to RSi BRE
that the parties enter into this First Amendment.

                               A G R E E M E N T:

         NOW, THEREFORE, in consideration of the foregoing Recitals and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

         1.       DEFINITIONS.

         Except as otherwise provided herein, capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Investor
Rights Agreement.

                                       -1-
<PAGE>

         2.       REGISTRABLE SECURITIES.

         The term "REGISTRABLE SECURITIES" as used in the Investor Rights
Agreement shall mean (i) Common Stock of the Company issuable upon conversion of
the Company Shares and (ii) any Common Stock of the Company issued as (or
issuable upon the conversion or exercise of any warrant, right or other security
which is issued as) a dividend or other distribution with respect to, or in
exchange for or in the replacement of, the Company Shares. In addition, any
reference to "WARRANT SHARES" in the Investor Rights Agreement shall be deemed
to be a reference to the Company Shares and any shares of Common Stock issuable
upon conversion of the Company Shares. By virtue of the foregoing, all of the
registration rights, information rights and other rights applicable to the
Holders, as the owners of Registrable Securities, shall be applicable to, and
shall inure to the benefit of, RSG as the owner of the Company Shares.

         3.       TRANSFER OF COMPANY SHARES.

         The Company acknowledges and agrees that RSG shall have the right, from
time to time, to transfer any or all of the Company Shares to the Holders
without the prior consent of the Company. In the event of such transfer or
transfers, all of the registration rights, information rights and other rights
applicable to the Company Shares as Registrable Securities under the Investor
Rights Agreement may be exercised by, and shall inure to the benefit of, the
Holders.

         4.       REMAINDER OF INVESTOR RIGHTS AGREEMENT.

         The remainder of the Investor Rights Agreement, as hereby amended,
shall remain in full force and effect.

         5.       MISCELLANEOUS.

         The Miscellaneous provisions set forth in Article IV of the Investor
Rights Agreement are incorporated by reference into this First Amendment as if
fully set forth herein.

                            [SIGNATURE PAGE FOLLOWS]

                                       -2-
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this First Amendment to be
duly executed as of the day and year first written above.

         COMPANY:             ROOMSYSTEMS, INC.

                              By:
                                  ---------------------------------------------
                                  Print Name:
                                  Title:

         RSG:                 RSG INVESTMENTS, LLC
                              By:
                                  ---------------------------------------------
                                  Print Name:
                                  Title:

         HOLDERS:

                                  ---------------------------------------------
                                  Print Name of Holder

                                  ---------------------------------------------
                                  Signature

                                       -3-
<PAGE>

                                    EXHIBIT L

                              FORM OF BILL OF SALE

                                  See Attached.

                                  BILL OF SALE

         Reference is hereby made to that certain Equipment Transfer Agreement
dated ____________, 1999 (the "EQUIPMENT TRANSFER AGREEMENT"), by and among
ROOMSYSTEMS, INC., a Nevada corporation ("RSI"), ROOMSYSTEMS INTERNATIONAL
CORPORATION, a Nevada corporation and a wholly-owned subsidiary of RSi, DOING
BUSINESS AS, RoomSystems International Funding Corporation ("RIC"), and RSi BRE,
a Nevada corporation and a wholly-owned subsidiary of RSi ("BUYER"), ON THE ONE
HAND, and RSG Investments, LLC, an Idaho limited liability company ("SELLER"),
ON THE OTHER HAND. Capitalized terms, unless otherwise defined herein, shall
have the meanings assigned to them in the Equipment Transfer Agreement.

         In connection therewith, Seller, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, does hereby grant,
bargain, sell and deliver to Buyer the Equipment related to those certain
Revenue Sharing Contracts, as identified on SCHEDULE 1 hereto.

         TO HAVE AND TO HOLD the Equipment unto Buyer, its successors and
assigns, forever.

         THE EQUIPMENT IS SOLD "AS IS" AND "WITH ALL FAULTS," AND SELLER MAKES
NO WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR OTHER WARRANTIES THAT
MIGHT ARISE FROM COURSE OF DEALING OR CUSTOM OF TRADE.

         THIS BILL OF SALE DOES NOT, NOR SHALL IT BE DEEMED TO, SUPERSEDE,
SUPPLANT, EXTINGUISH, EXPAND OR MERGE ANY OF THE REPRESENTATIONS, WARRANTIES,
INDEMNITIES OR LIMITATIONS CONTAINED IN THE EQUIPMENT TRANSFER AGREEMENT. This
Bill of Sale shall be governed by the laws of the State of Idaho without regard
to conflict of law principles.

         DATED:  September ___, 1999

                                      RSG INVESTMENTS, LLC

                                      By:
                                          -------------------------------------
                                      Its:
                                          -------------------------------------

<TABLE>
<CAPTION>

                                                               SCHEDULE 1

                                                             TO BILL OF SALE
<S>        <C>                          <C>
1.         CONTRACT:                    Master  Revenue  Sharing  Agreement,  dated as of September  10, 1997, by and
                                        between  RoomSystems  Finance  Corporation and Resort Key Largo  Enterprises,
                                        Inc., d/b/a Marriott's Key Largo Bay Beach Resorts

           EQUIPMENT:                   153 (quantity), Model No. RS-5000, 22 Selection Refreshment Center
                                        1 (quantity),  Model No.  586/133,  Computer  System  including 1 130 MG File
                                        Server with VGA Monitor and 3 work stations with Monochrome Monitors

2.         CONTRACT:                    Hotel  Revenue  Sharing Lease  Agreement,  dated as of April 30, 1998, by and
                                        between RoomSystems  International  Funding Corporation  ("RIFC") and H. Park
                                        Central, d/b/a Park Center Hotel

           EQUIPMENT:                   260 (quantity), Model No. RS-5000, 22 Selection Refreshment Center
                                        1 (quantity),  Model No. 586-133,  RoomManagement  Computer System  including
                                        all hardware and software

3.         CONTRACT:                    Hotel  Revenue  Sharing  Lease  Agreement,  dated as of May 1,  1998,  by and
                                        between RIFC and Herald Hotel Associates, d/b/a Holiday Inn Broadway

           EQUIPMENT:                   532  (quantity),  Model No.  RS2000G,  16 Selection  Refreshment  Center with
                                        Glass Door Option
                                        532 (quantity), Model No. RSS100LB, 6" LowBoy Safe
                                        1 (quantity), Model No. 586-133,  RoomManagement Computer System and Software
                                        Package

4.         CONTRACT:                    Hotel  Revenue  Sharing  Lease  Agreement,  dated as of June 1, 1998,  by and
                                        between RIFC and JFK Acquisition Group, d/b/a Hilton JFK Airport

           EQUIPMENT:                   330 (quantity),  Model No. RS 3000G, 19 Selection Thermoelectric  Refreshment
                                        Center with Glass Door
                                        330 (quantity), Model No. RSS 100LB, LowBoy RoomSafe
                                        1 (quantity), Model No. 586-133,  RoomManagement Computer System and Software
                                        Package

5.         CONTRACT:                    Hotel  Revenue  Sharing  Lease  Agreement,  dated as of June 10, 1998, by and
                                        between RIFC and Marriott Hotel Services,  Inc.,  d/b/a J.W.  Marriott Hotel,
                                        as agent for Square 245 Limited Partnership

                                                               Schedule-2

           EQUIPMENT:                   772 (quantity), Model No. RS-2000, 15 Selection Refreshment Center
                                        772 (quantity), Model No. RSS-100LB, 6" LowBoy RoomSafe
                                        1 (quantity), Model No. 586-133,  RoomManagement Computer System and Software
                                        Package

6.         CONTRACT:                    Hotel  Revenue  Sharing  Lease  Agreement,  dated as of June 15, 1998, by and
                                        between RIFC and Hilton Inn North Little Rock Riverfront

           EQUIPMENT:                   220 (quantity), Model No. RS 5000G, 22 Selection Refreshment Center
                                        220 (quantity), Model No. RSS-100HB, Upright RoomSafe
                                        1 (quantity), Model No. 586-133,  RoomManagement Computer System and Software
                                        Package

                                                               Schedule-3
</TABLE><PAGE>

                                    EXHIBIT 1
                                 PROMISSORY NOTE

<PAGE>

THIS PROMISSORY NOTE (THE "SECURITIES") HAS BEEN ACQUIRED FOR INVESTMENT FOR THE
HOLDER'S OWN ACCOUNT AND NOT WITH A VIEW TO OR FOR SALE IN CONNECTION WITH ANY
DISTRIBUTION OF SECURITIES. THE SECURITIES HAVE NOT BEEN REGISTERED OR QUALIFIED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED ("SECURITIES ACT") OR UNDER ANY
STATE SECURITIES LAWS ("BLUE SKY LAWS"). AN OFFER TO SELL OR TRANSFER OR THE
SALE OR TRANSFER OF THE SECURITIES IS UNLAWFUL UNLESS MADE PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT OR PERMIT, AS APPLICABLE, UNDER THE SECURITIES
ACT OR APPLICABLE BLUE SKY LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION AND/OR
QUALIFICATION UNDER THE SECURITIES ACT AND APPLICABLE BLUE SKY LAWS IS AVAILABLE
OR AN OPINION OF COUNSEL, OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE
COMPANY, IS PROVIDED TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION OR
QUALIFICATION IS NOT REQUIRED UNDER THE SECURITIES ACT AND APPLICABLE BLUE SKY
LAWS.

                          ROOMSYSTEM TECHNOLOGIES, INC.

                                 PROMISSORY NOTE

                                                               February 15, 2000

     FOR VALUE RECEIVED, the undersigned, RoomSystem Technologies, Inc., a
Nevada corporation ("Maker"), promises to pay to the order of Ash Capital, LLC,
a Utah limited liability company ("Lender"), the principal sum of Five Hundred
Thousand Dollars ($500,000)("Loan Amount ") pursuant to the terms set forth
below.

     1.   TERM. The Note shall mature on May 31, 2000 (the "Maturity Date").

     2.   INTEREST; PRINCIPAL PAYMENTS. The Note shall bear simple interest at
the rate of ten percent (10%) per annum, payable on the Maturity Date. Interest
shall be calculated on the basis of a three hundred and sixty (360) day year,
based on the actual number of days elapsed. Interest not paid when due shall be
added to the unpaid principal balance and shall thereafter bear interest at the
same rate as principal. All payments (including prepayments) hereunder are to be
applied first to the payment of accrued interest and the remaining balance shall
be applied to the payment of principal.

     3.   VOLUNTARY PREPAYMENT. Maker may, at any time, prepay the unpaid Loan
Amount, including any accrued interest thereon, in whole or in part, without
penalty or premium, by paying to Lender, in cash or by wire transfer, the amount
of such prepayment. If any such prepayment is less than a full repayment, then
such prepayment shall be applied first to the payment of accrued interest and
the remaining balance shall be applied to the payment of principal.

     4.   DESIGNATED PLACES OF PAYMENT. Interest payments and the Loan Amount
are payable in lawful money of the United States of America, at the address of
Lender set forth in Section 4.1 no later than 5:00 P.M. Pacific Standard Time on
the date payment is due.

          4.1. James Savas
               c/o Ash Capital, LLC
               1400 South Foothill Blvd., Suite B-25
               Salt Lake City, UT 84108

<PAGE>

     5.   WAIVERS. Except as set forth elsewhere herein, Maker, for itself and
its legal representatives, successors, and assigns, expressly waives
presentment, protest, demand, notice of dishonor, notice of nonpayment, notice
of maturity, notice of protest, notice of intent to accelerate, notice of
acceleration, presentment for the purpose of accelerating maturity, and
diligence in collection.

     6.   DEFAULT. Occurrence of any of the following shall constitute an event
of default: (a) the nonpayment of any principal or interest by Maker on the Note
when the same becomes due and payable; (b) the entry of a decree or order by a
court having appropriate jurisdiction adjudging Maker a bankrupt or insolvent,
or approving as properly filed a petition seeking reorganization or liquidation
of Maker under the Federal Bankruptcy Act or any other applicable federal or
state law, or appointing a receiver, liquidator, assignee or trustee over any
substantial portion of the Maker's property or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order
unstayed and in effect for a period of sixty (60) consecutive days; (c) the
institution by Maker of proceedings to be adjudicated a bankrupt or insolvent,
or the consent by it to the institution of bankruptcy or insolvency proceedings
against it, or the filing by it of a petition or answer or consent seeking
reorganization or relief under the Federal Bankruptcy Act or any other
applicable federal or state law, or consent by it to the filing of any such
petition or to the appointment of a receiver, liquidator, assignee or trustee of
the Maker, or of any substantial part of its property, or the Collateral, as
defined in the Loan and Security Agreement, shall become subject to the
jurisdiction of a federal bankruptcy court or similar state court, or if Maker
shall make an assignment for the benefit of its creditors, or if there is an
attachment, receivership, execution or other judicial seizure, or the taking of
corporate action by Maker in furtherance of any such action; (d) Maker's failure
to comply with any material term, obligation, covenant, or condition contained
in this Note; or (e) any warranty, covenant, or representation made to Lender
under the Loan and Security Agreement, or any related agreement executed in
connection with the issuance of the Note and the Warrant proves to have been
false in any material respect when made or furnished; (f) any sale, transfer, or
disposition of any interest in the Collateral, other than in the ordinary course
of business, without the prior written consent of Secured Party; or (g) any
other default under the terms of the Note.

          6.1  CURE. Maker shall have five (5) days to cure a default. In the
event Maker fails to cure any default within such time period, including the
payment of all costs and expenses provided for in this Agreement and the Note,
Secured Party may immediately enforce any and all rights provided under the Loan
and Security Agreement and the Note.

     7.   LATE PAYMENT FEES. It is impractical to fix the amount of Lender's
expense in handling a delinquent payment. Therefore, Maker agrees to pay to
Lender a late payment charge equal to three percent (3%) of the amount due on
any payment required under this Note which is received by Lender more than ten
(10) days after the due date. Maker agrees that this charge is a reasonable
estimate of additional expenses the Lender may incur, and is not a penalty.

     8.   ACCELERATION; ATTORNEYS' FEES. At the option of the Lender, and
without demand or notice, all principal and any unpaid interest shall become
immediately due and payable upon an event of default as set forth in Section 6
above. Any reasonable attorneys' fees and other expenses incurred by the Lender
in enforcing any of its rights hereunder or from a bankruptcy filing relating to
the Maker, or any of the other events described in Section 6 above, shall be
deemed additional indebtedness of the Maker and added to the principal amount of
the Note, irrespective of whether Lender files suit against Maker.

<PAGE>

     9.   SECURITY INTERESTS. It is further understood that this Note is secured
by the security interests granted to Lender pursuant to the Loan and Security
Agreement between the Parties.

     10.  SECTION HEADINGS. Headings and numbers have been set forth for
convenience only. Unless the contrary is compelled by the context, the language
set forth in each paragraph applies equally to the entire Note.

     11.  AMENDMENTS IN WRITING. This Note may only be changed, modified or
amended in writing signed by the Parties.

     12.  CHOICE OF LAW. The Note and all transactions hereunder and evidenced
hereby shall be governed by, construed under, and enforced in accordance with
the laws of the State of Nevada.

     13.  WAIVER OF TRIAL BY JURY. For separate and legal consideration
received, Maker hereby waives, to the extent permitted under applicable law, any
right to trial by jury in any action or proceeding relating to the Note.

     14.  CUMULATIVE RIGHTS. No delay on the part of the holder of this Note in
the exercise of any power or right or single partial exercise of any such power
or right under this Note, or under any other instrument executed pursuant hereto
shall operate as a waiver thereof. Enforcement by the holder of this Note of any
security for the payment hereof shall not constitute any election by it of
remedies so as to preclude the exercise of any other remedy available to it.

Made and executed at St. George, Utah

RoomSystem Technologies, Inc.,
a Nevada Corporation

By:      /s/ STEVEN L. SUNYICH
         Steven L. Sunyich
         Chief Executive Officer
<PAGE>

                                    EXHIBIT 2

                        WARRANT TO PURCHASE COMMON STOCK

<PAGE>

                          ROOMSYSTEM TECHNOLOGIES, INC.

                        WARRANT TO PURCHASE COMMON STOCK

THIS WARRANT TO PURCHASE COMMON STOCK (THE "SECURITIES") HAS BEEN ACQUIRED FOR
INVESTMENT FOR THE HOLDER'S OWN ACCOUNT AND NOT WITH A VIEW TO OR FOR SALE IN
CONNECTION WITH ANY DISTRIBUTION OF SECURITIES. THE SECURITIES HAVE NOT BEEN
REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
("SECURITIES ACT") OR UNDER ANY STATE SECURITIES LAWS ("BLUE SKY LAWS"). AN
OFFER TO SELL OR TRANSFER OR THE SALE OR TRANSFER OF THE SECURITIES IS UNLAWFUL
UNLESS MADE PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PERMIT, AS
APPLICABLE, UNDER THE SECURITIES ACT OR APPLICABLE BLUE SKY LAWS OR UNLESS AN
EXEMPTION FROM REGISTRATION AND/OR QUALIFICATION UNDER THE SECURITIES ACT AND
APPLICABLE BLUE SKY LAWS IS AVAILABLE OR AN OPINION OF COUNSEL, OR OTHER
EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY, IS PROVIDED TO THE COMPANY TO
THE EFFECT THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED UNDER THE
SECURITIES ACT AND APPLICABLE BLUE SKY LAWS.

<PAGE>

                        WARRANT TO PURCHASE COMMON STOCK
                                       OF
                          ROOMSYSTEM TECHNOLOGIES, INC.

     FOR GOOD AND VALUABLE CONSIDERATION, Ash Capital, or registered assigns
("Warrant Holder"), are entitled to purchase, subject to the provisions of this
Warrant to Purchase Common Stock (the "Warrant"), from RoomSystem Technologies,
Inc., a Nevada corporation ("Corporation"), Twenty-Five Thousand (25,000) shares
of common stock of the Corporation (the "Warrant Shares"), at a price of $3.60
per Share ("Exercise Price").

     1.   EXERCISE OF WARRANT. Subject to the provisions hereof, this Warrant
may be exercised at any time from the date of issuance through the second
anniversary date of the Corporation's initial public offering ("Exercise
Period"), by presentation and surrender to the Corporation, a duly executed and
completed purchase form ("Notice of Exercise"), in the form attached hereto as
Exhibit "A" and incorporated herein by this reference in its entirety,
accompanied by payment of the Exercise Price for the number of Warrant Shares
specified on such form. In the event of a partial exercise of this Warrant, a
substitute Warrant, representing the number of Warrant Shares not exercised,
shall be issued to the Warrant Holder.

     2.   VALIDITY OF WARRANT SHARES. The Company warrants and represents that
all Warrant Shares issued upon exercise of this Warrant shall, upon issuance and
payment of the Exercise Price, be validly issued, fully paid and nonassessable
and free from all taxes, liens and charges. The Company further warrants and
represents that during the Exercise Period the Company shall at all times have
authorized and reserved a sufficient number of Warrant Shares to provide for the
exercise of this Warrant.

          A.   Fractional Shares. No fractional shares, or script representing
fractional shares, shall be issued upon the exercise of this Warrant.

          B.   Fractional Shares. No fractional shares, or script representing
fractional shares, shall be issued upon the exercise of this Option.

          C.   Assignment, Exchange, or Loss of Warrant. Subject to the
restrictions appearing on the face of this Warrant, upon presentation and
surrender of this Warrant to the Corporation, or its stock transfer agent,
together with a duly executed assignment, in the form attached hereto as Exhibit
"B", and funds sufficient to pay any transfer tax, the Corporation shall,
without charge, execute and deliver a new Warrant in the name of the assignee(s)
named in the assignment and this Warrant shall promptly be cancelled.

               1.   This Warrant is exchangeable without expense, at the option
of the Warrant Holder, upon presentation and surrender hereof to the
Corporation, or its stock transfer agent, for Warrants of different
denominations entitling the Warrant Holder to purchase, in the aggregate, the
same number of Shares purchasable hereunder.

               2.   Upon receipt by the Corporation of evidence satisfactory to
it of the loss, theft, destruction, or mutilation of this Warrant, and, in the
case of loss, theft, or destruction, of reasonably satisfactory indemnification,
and, in the case of mutilation, upon surrender and cancellation of this Warrant,
the Corporation will execute and deliver a new Warrant.

<PAGE>

     3.   RIGHTS OF THE WARRANT HOLDER. Prior to exercise of this Warrant, the
Warrant Holder shall not be entitled to any rights of a shareholder in the
Corporation, either at law or in equity. The rights of the Warrant Holder are
limited to those expressed in this Warrant and are not enforceable against the
Corporation except as otherwise provided herein.

     4.   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

          A.   Upon occurrence of any of the following, the Exercise Price and
the number of Warrant Shares issuable upon exercise of this Warrant shall be
adjusted as follows:

               1.   If at any time after the date hereof the number of shares of
the Corporation's Common Stock outstanding is increased by a stock dividend
payable in shares of Common Stock or by a subdivision or split-up of shares of
Common Stock, then, on the record date of such stock dividend, subdivision, or
split-up, the Exercise Price shall be appropriately decreased and the number of
shares of Warrant Stock issuable upon exercise of this Warrant shall be
appropriately increased in proportion to such increase of outstanding shares.

               2.   If at any time after the date hereof the number of shares of
Common Stock outstanding is decreased by a merger, reorganization, business
combination, or reverse stock split approved by the Board of Directors of the
Corporations and a majority of the Common Stockholders, then, on the effective
date of such event, the Exercise Price shall be appropriately increased and the
number of Warrant Shares shall be appropriately decreased in proportion to such
decrease of outstanding shares.

               3.   All calculations under this Section 4 shall be made to the
nearest cent or to the nearest whole share, if applicable. No fractional shares
shall be issued upon exercise of this Warrant. Any fractional shares that might
otherwise be issued upon exercise of this Warrant shall be rounded to the
nearest whole share.

     5.   OFFICER'S CERTIFICATE. Whenever the Exercise Price, or the number of
Warrant Shares are adjusted as provided in Section 4 above, the Corporation
shall forthwith file with its Secretary at its principal office, and with its
stock transfer agent, an officer's certificate (the "Certificate") showing the
adjusted number of Warrant Shares purchasable upon exercise of this Warrant and
the adjusted Exercise Price. The Certificate shall set forth in reasonable
detail all facts necessary to show the reason for and the manner of computing
such adjustments. Each Certificate shall be made available for inspection by the
Warrant Holder and the Corporation shall forward, by certified mail, a copy of
each Certificate to the Warrant Holder.

     A calculation of any adjustment as provided by Section 4, evidenced by a
certificate from the Company's independent certified public accountants, shall
be deemed a correct calculation of the adjustment for purposes of this Warrant.
The foregoing presumption shall constitute a rebuttable presumption, with the
party disputing the calculation bearing the burden of proving the incorrectness
of the calculation.

     During the term of this Warrant, if the Corporation shall propose to take
any action that would cause an adjustment to be made as provided in Section 4,
the Corporation shall mail to the Warrant Holder, by certified mail, prior to or
no later than 15 days after the day on which the

<PAGE>

adjustment became effective, a notice setting forth in reasonable detail the
terms of the adjustment

     6.   NOTICE. Any notice or other communication required or permitted to be
given hereunder shall be in writing and shall be mailed by certified mail,
return receipt requested, or delivered against receipt, if to the Warrant
Holder, to Warrant Holder's last known address, and if to the Corporation, at
its principal office. Any notice or other communication given by certified mail
shall be deemed given at the time of certification thereof, except for a notice
changing a party's address which shall be deemed given at the time of receipt
thereof.

     7.   BINDING EFFECT. The provisions of this Warrant shall be binding upon
and inure to the benefit of the parties hereto, the successors and assigns of
the Corporation, if the Warrant Holder is a corporation, partnership, or other
form of entity, the successors and assignee of the Warrant Holder, and if the
Warrant Holder is a natural person, the assignees, heirs, and personal
representative of the Warrant Holder.

     8.   PRONOUNS. Any masculine personal pronoun shall mean the corresponding
feminine or neuter personal pronoun, as the context requires.

     9.   LAW GOVERNING. This Warrant shall be governed by and construed in
accordance with the laws of the State of Nevada.

     10.  TITLES AND CAPTIONS. All section titles or captions contained in this
Warrant are for convenience only and shall not be deemed part of the context and
shall not affect the interpretation of this Warrant.

     11.  COMPUTATION OF TIME. In computing any period of time pursuant to this
Warrant, the day of the act, event or default from which the designated period
of time begins to run shall be included, unless it is a Saturday, Sunday, or a
legal holiday, in which event the period shall begin to run on the next day
which is not a Saturday, Sunday, or legal holiday.

     12.  PRESUMPTION. This Warrant shall not be construed against any party due
to the fact that the Warrant, or any section herein, was drafted by said party.

     13.  FURTHER ACTION. The parties hereto shall execute and deliver all
documents, provide all information and take or forbear from all such action as
may be necessary or appropriate to achieve the purposes of the Warrant.

     14.  PARTIES IN INTEREST. Nothing herein shall be construed to be to the
benefit of any third party, nor is it intended that any provision shall be for
the benefit of any third party.

Dated: February 15, 2000

RoomSystem Technologies, Inc.,
a Nevada corporation

By:       /s/ Steven L. Sunyich
             Steven L. Sunyich
          Chief Executive Officer

<PAGE>

                                    EXHIBIT A

                               NOTICE OF EXERCISE

<PAGE>

                               NOTICE OF EXERCISE

RoomSystem Technologies, Inc.
390 North 3050 East
St. George, UT 84790

Gentlemen:

     The undersigned ("Warrant Holder"), pursuant to the terms set forth in the
attached Warrant to Purchase Common Stock (the "Warrant "), hereby irrevocably
exercises the Warrant and purchases ________________________ shares of common
stock ("Warrant Shares") by:

(i)  providing payment in full for the Warrant Shares in the amount of
     $_____________; or

(ii) providing partial payment for the Warrant Shares in the amount of
     $_____________.

     By executing this Notice of Exercise, the Warrant Holder warrants and
represents that the Warrant Shares are being acquired as an investment and not
with a view to, or for sale in connection with, a distribution of the Warrant
Shares.

     In the event this Notice of Exercise relates to less than 100% of the
Warrant Shares, then the Company shall issue a new Warrant of like tenor, for
the number of Warrant Shares not purchased hereunder in the name of and
delivered to (a) the undersigned; or (b)_________________ at________________.
Dated:__________________________

Signature Guaranteed               Signature:__________________________________
                                   Print Name: ________________________________
                                   Title(if applicable):_______________________
                                   Address:____________________________________
                                   ____________________________________________

NOTICE:             The signature to this Notice of Exercise must correspond
                    with the name as written upon the face of the Warrant.

IMPORTANT:          Signature  guarantee must be made by a participant of STAMP
                    or other signature  guarantee program acceptable to the
                    Securities and Exchange Commission, the Securities Transfer
                    Association and the Transfer Agent of the Company.

<PAGE>

                                    EXHIBIT B

                              NOTICE OF ASSIGNMENT

<PAGE>

                              NOTICE OF ASSIGNMENT

RoomSystem Technologies, Inc.
390 North 3050 East
St. George, UT 84790

Gentlemen:

     FOR VALUE RECEIVED, the undersigned ("Warrant Holder") hereby sells,
transfers and assigns to the assignee(s) set forth below, all of the rights and
privileges of Warrant Holder as set forth below:

Name of Assignee(s)               Address            Number of Warrant Shares
                                                     Purchasable Upon Exercise

--------------------       ----------------------    ------------------------
--------------------       ----------------------    ------------------------
--------------------       ----------------------    ------------------------

Dated:__________________________

Signature Guaranteed                Signature:_________________________________
                                    Print Name: _______________________________
                                    Title(if applicable):______________________
                                    Address:___________________________________
                                    ___________________________________________

NOTICE:           The signature to this Notice of Exercise must correspond with
                  the name as written upon the face of the Warrant.

IMPORTANT:        Signature  guarantee must be made by a participant of STAMP or
                  other signature guarantee program acceptable to the Securities
                  and Exchange Commission, the Securities Transfer Association
                  and the Transfer Agent of the Company

<PAGE>

                                    EXHIBIT 3

                             SUBSCRIPTION AGREEMENT
                                       AND
                       CONFIDENTIAL INVESTOR QUESTIONNAIRE

                                       14

<PAGE>

                             SUBSCRIPTION DOCUMENTS

     Enclosed are the subscription documents (the "Subscription Documents")
relating to the purchase of the following securities of RoomSystem Technologies,
Inc., a Nevada corporation (the "Company"):

     (i)  a promissory note (the "Note") in the principal amount of $500,000,
maturing on May 31, 2000, bearing interest at the rate of ten percent (10%) per
annum, payable at maturity, and secured by certain assets of the Company; and
(ii) a warrant to purchase 25,000 shares of the Company's common stock,
exercisable at the rate of $3.60 per share through the second anniversary date
of the Company's initial public offering (the "Warrant").

     The Note and the Warrant are collectively referred to herein as the
"Securities."

     -    SECTION A CONTAINS THE SUBSCRIPTION AGREEMENT.

     -    SECTION B CONTAINS THE CONFIDENTIAL INVESTOR QUESTIONNAIRE.

THE INVESTOR SHOULD REVIEW THE LOAN AND SECURITY AGREEMENT, THE PROMISSORY NOTE,
THE WARRANT TO PURCHASE COMMON STOCK AND THE TERMS SHEET SUMMARIZING THE
INVESTMENT ("COLLECTIVELY, THE "DISCLOSURE MATERIALS") CAREFULLY BEFORE
COMPLETING THE SUBSCRIPTION DOCUMENTS.

THIS INVESTMENT INVOLVES SIGNIFICANT RISKS. THE INVESTOR SHOULD CONSULT ITS
ATTORNEY, ACCOUNTANT OR OTHER ADVISORS AS TO ANY LEGAL, TAX AND RELATED MATTERS
CONCERNING THIS INVESTMENT AND ITS SUITABILITY FOR THE INVESTOR.

PLEASE COMPLETE AND EXECUTE ALL DOCUMENTS IN ACCORDANCE WITH THE INSTRUCTIONS
SET FORTH BELOW. EXCEPT AS OTHERWISE SPECIFICALLY INDICATED, ALL QUESTIONS MUST
BE ANSWERED COMPLETELY. IF THE ANSWER TO ANY QUESTION IS "NO," "NONE" OR "NOT
APPLICABLE," PLEASE SO STATE. PLEASE TYPE OR PRINT ALL INFORMATION IN INK.

                                       15

<PAGE>

                                  VERIFICATION

PLEASE VERIFY THAT ALL APPLICABLE BLANKS, DATES AND SIGNATURES ARE PROPERLY
COMPLETED FOR EACH DOCUMENT TO ASSURE ITS LEGAL VALIDITY.

WHEN ALL OF THE ABOVE HAVE BEEN COMPLETED, SEND ALL DOCUMENTS AND APPROPRIATE
PAYMENTS TO THE FOLLOWING ADDRESS:

                                     Gregory L. Hrncir, Esq.
                                     RoomSystems Technologies, Inc.
                                     390 North 3050 East
                                     St. George, UT 84790

                                       16
<PAGE>

                                    SECTION A

                             SUBSCRIPTION AGREEMENT

<PAGE>

RoomSystem Technologies, Inc.
390 North 3050 East
St. George, UT 84790
Attention: Gregory L. Hrncir, Esq.

Gentlemen:

     1.   PURCHASE. Subject to the terms and conditions hereof, the undersigned
hereby irrevocably subscribes to purchase (i) the Note, in the principal amount
of $500,000, maturing on May 31, 2000, bearing interest at the rate of ten
percent (10%) per annum, payable at maturity, and secured by certain assets of
the Company; and (ii) the Warrant to purchase 25,000 shares of the Company's
common stock, exercisable at the rate of $3.60 per share through the second
anniversary date of the Company's initial public offering.

     The undersigned understands that the Securities will not be registered or
qualified under any federal or state securities laws in reliance upon exemptions
therefrom. The undersigned acknowledges and agrees that in order to ensure that
the offer and sale of the Securities are exempt from registration or
qualification, the Company will rely on the covenants, representations and
warranties which the undersigned has made in this Subscription Agreement (the
"Agreement"), the Confidential Investor Questionnaire attached as Section B to
these Subscription Documents, the Disclosure Materials (as defined below) and
related documentation. Accordingly, the undersigned makes the following
covenants, representations and warranties for the purpose of inducing the
Company to permit the undersigned to acquire the Securities for which the
undersigned hereby subscribes.

     The undersigned acknowledges that the Company reserves the right to accept
or reject any subscription in its sole discretion, in whole or in part.

     2.   REVIEW OF DISCLOSURE MATERIALS. By execution of this Agreement, the
undersigned acknowledges having read, understood and agreed to each and every
provision contained herein and in: (a) the Loan and Security Agreement, the
Promissory Note, Warrant to Purchase Common Stock, and the Terms Sheet
summarizing the investment; and (b) the definition of an "Accredited Investor"
as defined by the Securities Act of 1933, as amended (the "Act"), attached
hereto as Exhibit "1". The Disclosure Materials are incorporated herein in their
entirety by this reference.

     3.   REPRESENTATIONS, WARRANTIES AND COVENANTS. The undersigned hereby
makes the following representations and warranties to the Company:

          3.1  The undersigned hereby represents and warrants that he, she or it
is an "Accredited Investor" as defined in Regulation D promulgated under the
Act, and Exhibit "1" attached hereto. The specific category or categories of
Accredited Investor applicable to the undersigned are as follows:

(Please INITIAL APPLICABLE BLANKS)

A._____I am a natural person and have a net worth, either alone or with my
spouse, in excess of $1,000,000.

B._____I am a natural person and had individual income in excess of $200,000 (or
joint income in excess of $300,000 including income of my spouse) during each of
the previous two calendar years and expect to have individual income in excess
of such amount during the current calendar year.

                                       18
<PAGE>

C. DH  The undersigned is an authorized signatory for a partnership, trust,
corporation or other entity with a net worth of more than $5,000,000, or of
which all the equity owners are Accredited Investors.

D._____The Securities are being purchased through an employee benefit plan
within the meaning of the Employee Retirement Income Security Act of 1974
("ERISA") that either (i) has its investment decisions made by a plan fiduciary,
as defined in Section 3(21) of ERISA, which is a bank, savings and loan
association, insurance company or a registered investment advisor, (ii) has
total assets in excess of $5,000,000 or (iii) if a self-directed plan, with its
investment decisions made solely by Accredited Investors as described herein
(please check either A, B or C above with respect to Accredited Investors making
investment decisions for self-directed plans). The name and description of the
employee benefit plan are follows:

E._____The undersigned is a director and/or executive officer of the Company.

          3.2  Intentionally left blank.

          3.3  The undersigned has received all the Disclosure Materials and has
carefully reviewed each and every provision thereof.

          3.4  The undersigned has had a reasonable opportunity to ask questions
of and receive answers from the Company and all such questions have been
answered to the full satisfaction of the undersigned. No oral representations
have been made or oral information furnished to the undersigned, in connection
with the offering of the Securities which is in any way inconsistent with
information contained in the Disclosure Materials.

          3.5  The undersigned (i) has knowledge and experience in financial and
business matters which enables the undersigned to evaluate the merits and risks
of the investment represented by the Securities, and to protect his, her or its
own interests in connection with the investment and/or (ii) has a preexisting
personal or business relationship with the Company or its officers, directors
and/or principal stockholders of a nature and duration which would enable a
reasonably prudent purchaser to be aware of the character, business acumen and
general business and financial circumstances of the person with whom such
relationship exists. The undersigned recognizes that an investment in the
Securities involves special risks, and the undersigned hereby represents and
warrants that he, she or it is capable of evaluating such risks in making an
investment in the Securities.

          3.6  The undersigned is acquiring the Securities solely for the
undersigned's own account, or for one or more fiduciary accounts for which the
undersigned has sole investment discretion. The undersigned is acquiring such
Securities without a view to, and not for resale in connection with, a
distribution of the Securities within the meaning of the Act. The undersigned
hereby covenants and agrees that the undersigned shall not sell any of the
Securities in violation of the Act.

          3.7  The undersigned is not relying on the Company or the information
in the Disclosure Materials for advice with respect to tax considerations, the
suitability of his, her or its investment in the Company or legal or economic
considerations.

          3.8  The undersigned understands that the Securities have not been
registered under the Act or qualified under the securities laws of any states
and therefore cannot be transferred, resold, pledged, hypothecated, assigned or
otherwise disposed of unless such Securities are subsequently registered or
qualified under the Act and under applicable state securities laws, or an
exemption from

                                       19
<PAGE>

registration and/or qualification is available. The undersigned will not sell or
otherwise transfer the Securities without registration under the Act or pursuant
to an exemption therefrom.

          3.9  If the undersigned is a corporation, partnership, trust or other
entity, the undersigned represents and warrants that the signatory hereto is
authorized and qualified to become a security holder in the Company, and such
entity and the undersigned signatory hereto for such entity further represent
and warrant that such signatory has been duly authorized to execute this
Agreement.

          3.10 If the undersigned is an employee benefit plan (a "Plan"), the
person signing this Agreement on behalf of such Plan represents and warrants
that (i) he or she is a fiduciary of the Plan, (ii) he or she understands the
investment objectives, strategies and policies of the Company, (iii) he or she
acknowledges that he or she is aware of the provision of Section 404 of ERISA
relating to the requirements for investment and diversification of assets of
ERISA-governed Plans, (iv) he or she has given appropriate consideration to such
Plan's investment in the Company and has determined that such investment
furthers the purposes of such Plan and (v) he or she has determined that, taking
into account other investments in such Plan's portfolio, the Plan's investment
in the Company is consistent with the requirements of Section 404 and other
provisions of ERISA and is consistent with such Plan's cash flow requirements
and funding objectives.

          3.11 The undersigned understands that the Securities are restricted.
The undersigned understands that it is possible that no public market will ever
develop. As a consequence, the undersigned understands that he, she or it may
not be able to liquidate their investment in the Securities, even in the event
of an emergency. The undersigned also understands that, for the foregoing
reasons, the Securities may not be readily accepted as collateral for a loan.

          3.12 The undersigned further certifies and acknowledges as follows:

               (a)  The undersigned has adequate means of providing for the
undersigned's current needs and possible personal or other contingencies, and
the undersigned has no need for liquidity of the undersigned's investment in the
Securities;

               (b)  The undersigned has a net worth sufficient to bear the
economic risk of losing the undersigned's entire investment in the Securities;

               (c)  Each and every representation set forth herein is true and
correct; and

               (d)  The undersigned does not have an overall commitment to
non-readily marketable investments which is disproportionate to the
undersigned's net worth and the investment subscribed for herein will not cause
such overall commitment to become excessive.

          3.13 The address set forth below is the undersigned's true and correct
residence and/or principal place of business, and the undersigned has no present
intention of becoming a resident, or domiciled (if applicable), of any other
state or jurisdiction.

          3.14 The undersigned acknowledges and is aware that the Securities are
speculative investments which involve a high degree of risk of loss by the
undersigned of his, her or its entire investment in the Company.

          3.15 It has never been guaranteed or warranted to the undersigned by
the Company or by any other person, expressly or by implication, that:

                                       20
<PAGE>

               (a)  The undersigned will be required to remain an owner of
Securities any approximate or exact length of time;

               (b) The undersigned will receive any approximate or exact amount
of return or other type of consideration, profit or loss as a result of an
investment in the Securities; or

               (c)  The past performance or experience on the part of the
Company, any director, officer or any affiliate thereof, will in any way
indicate or predict future operating results of the Company or the overall
success of the Company.

          3.16 The undersigned understands that the Company is soliciting only
"Accredited Investors" as defined in Section 3.1 with respect to the sale of the
Securities. The undersigned has not and will not, except at the express written
request of the Company, permit any person, other than the undersigned's spouse,
attorney or accountant to review any documents which have been presented in
connection with the sale of Securities.

          3.17 If the undersigned is more than one person, the obligations of
the undersigned shall be joint and several, and the representations and
warranties herein contained shall be deemed to be made by and be binding upon
such person, and ownership of the Securities subscribed for by the undersigned
shall be as set forth on the signature page attached hereto.

          3.18 If there should be any adverse change in the representations and
information set forth herein prior to the Company's acceptance or rejection of
this subscription, the undersigned will immediately notify the Company of such
change in writing.

          3.19 The undersigned realizes that this Agreement does not constitute
an offer by the Company to sell Securities, but is merely a request for
information. The undersigned understands that the Company reserves the right to
reject subscriptions in whole or in part.

          3.20 At the request of the Company, the undersigned will promptly
execute such other instruments or documents as may be reasonably required in
connection with the purchase of the Securities. The undersigned hereby agrees
that the representations and warranties set forth in this Agreement shall be
binding upon the heirs, executors, administrators, successors and assigns of the
undersigned, but this subscription is not voluntarily transferable or assignable
by the undersigned. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Nevada.

          3.21 The undersigned acknowledges and agrees that all representations,
warranties and covenants made by the undersigned to the Company in this
Agreement shall survive the issuance of his, her or its Securities. The
undersigned agrees to protect, defend, indemnify and hold harmless the Company
from all losses, costs, expenses (including, without limitation, reasonable
attorney's fees and expenses) or liabilities for any breach of the undersigned's
representations, warranties or covenants.

          3.22 The undersigned acknowledges and agrees that the Securities to be
issued to the undersigned will bear a legend restricting transferability, in
substantially the form as follows, and agrees to comply in all respects with the
terms of such legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT
TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL

                                       21
<PAGE>

SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE 144 OF SUCH ACT.

          3.23 The undersigned agrees and acknowledges that the undersigned is
solely responsible for the undersigned's "due diligence" investigation of the
Company.

     4.   ACCEPTANCE. This subscription is subject to final acceptance by the
Company, to be evidenced by the signature of an officer of the Company to this
Agreement.

     5.   SUBSCRIPTION PROCEDURE. Each investor who wishes to purchase
Securities must complete, execute, acknowledge and deliver to the Company this
Agreement. The price for the Securities is payable upon acceptance of this
Agreement by the Company and is to be paid by check made payable to "ROOMSYSTEM
TECHNOLOGIES, INC." The agreement to subscribe evidenced by the execution of
this Agreement will not be revocable by the investor, and unless the
subscription is rejected by the Company, the investor will become a Note holder
and Warrant holder of the Company. The Company reserves the right to reject or
refuse any subscription for any reason whatsoever. As a condition to closing,
the undersigned further agrees to execute and deliver a Confidential Investor
Questionnaire.

<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed this Subscription
Agreement as of _________ , 2000.

SIGNATURE FOR INDIVIDUAL INVESTOR:

---------------------------        ---------------------------------------------
(Signature)                        (Signature of Spouse, If Applicable)

---------------------------        ---------------------------------------------
(Print name)                       (Print Name of Spouse, If Applicable)

---------------------------
(Street Address)

---------------------------
(City, State, Zip Code)

---------------------------
(Social Security Number)

If Joint Ownership, Check One:

                _____Husband and Wife, as Community Property
                _____Joint Tenants with Right of Survivorship
                _____Tenants-in-Common

                Note: The address given above must be the residence address of
                      the investor. Post office boxes and other addresses will
                      not be accepted.

                                       23

<PAGE>

SIGNATURE FOR PARTNERSHIP, TRUST, LLC, CORPORATION OR OTHER ENTITY:

Ash Capital, LLC
------------------------------------------------------
(Name of Security Holder)

/s/ DAVID HARKNESS
-------------------------------------------------------
(Signature)

David Harkness
-------------------------------------------------------
(Name of Signatory)

Managing Director
-------------------------------------------------------
 (Title of Signatory)

Limited Liability Company
-------------------------------------------------------
(Print Type of Entity and Jurisdiction)

-------------------------------------------------------
(U.S. Taxpayer Identification Number)

ACCEPTANCE:

         The subscription of the above-named investor is hereby accepted by the
Company as of February 15, 2000.

RoomSystem Technologies, Inc.,
a Nevada corporation

         /s/ STEVEN L. SUNYICH
-----------------------------------
         Steven L. Sunyich
         Chief Executive Officer

                                       24

<PAGE>

                                    EXHIBIT 1

                        DEFINITION OF ACCREDITED INVESTOR

         ACCREDITED INVESTOR. "Accredited Investor" shall mean any person who
comes within any of the following categories, or whom the issuer reasonably
believes comes within any of the following categories at the time of the sale of
the securities to that person:

         (1) Any bank as defined in section 3(a)(2) of the Act, or any savings
and loan association or other institution as defined in section 3(a)(5)(A) of
the Act whether acting in its individual or fiduciary capacity; any broker or
dealer registered pursuant to section 15 of the Securities Exchange Act of 1934;
any insurance company as defined in section 2(13) of the Act; any investment
company registered under the Investment Company Act of 1940 or a business
development company as defined in section 2(a)(48) of that Act; any Small
Business Investment Company licensed by the U.S. Small Business Administration
under section 301 (c) or (d) of the Small Business Investment Act of 1958; any
plan established and maintained by a state, its political subdivisions, or any
agency or instrumentality of a state or its political subdivisions, for the
benefit of its employees, if such plan has total assets in excess of $5,000,000;
employee benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974 if the investment decision is made by a plan fiduciary, as
defined in section 3(21) of such Act, which is either a bank, savings and loan
association, insurance company, or registered investment adviser, or if the
employee benefit plan has total assets in excess of $5,000,000 or, if a
self-directed plan, with investment decisions made solely by persons that are
accredited investors;
         (2) Any private business development company as defined in section
202(a)(22) of the Investment Advisers Act of 1940;
         (3) Any organization described in Section 501(c)(3) of the Internal
Revenue Code, corporation, Massachusetts or similar business trust, or
partnership, not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $5,000,000;
         (4) Any director, executive officer, or general partner of the issuer
of the securities being offered or sold, or any director, executive officer, or
general partner of a general partner of that issuer;
         (5) Any natural person whose individual net worth, or joint net worth
with that person's spouse, at the time of his purchase exceeds $1,000,000;
         (6) Any natural person who had an individual income in excess of
$200,000 in each of the two most recent years or joint income with that person's
spouse in excess of $300,000 in each of those years and has a reasonable
expectation of reaching the same income level in the current year;
         (7) Any trust, with total assets in excess of $5,000,000, not formed
for the specific purpose of acquiring the securities offered, whose purchase is
directed by a sophisticated person as described in 230.506(b)(2)(ii); and
         (8) Any entity in which all of the equity owners are accredited
investors.

                                       25

<PAGE>

                                    SECTION B

                       CONFIDENTIAL INVESTOR QUESTIONNAIRE

                                       26

<PAGE>

                       CONFIDENTIAL INVESTOR QUESTIONNAIRE

         The Undersigned hereby furnishes the following information to enable
the Company to determine whether the undersigned satisfies the investor
suitability requirements set forth in Exhibit 1 hereto.

         The undersigned acknowledges that (i) the Company will rely upon the
accuracy and completeness of the information contained herein to establish the
availability of an exemption from registration under applicable federal and
state securities laws, (ii) special documentation is required if the proposed
investor is a corporation, partnership, trust, joint owner other than a married
couple, agent or other entity and (iii) all pronouns and any variation thereof
used herein will be deemed to refer to the masculine, feminine, neuter, singular
or plural as the identity of the person or persons herein may require.

1.       PERSONAL - INDIVIDUAL

         A.  Name:_______________________________________________________
         B.  Age:________________________________________________________

         C.  Residence Street Address (No Post Office Boxes):____________
             ____________________________________________________________

         D.  Residence Telephone Number:_________________________________
         E.  Social Security Number:_____________________________________

         F.  Marital Status:_____________________________________________
         G.  Spouse's Full Name:_________________________________________
         H.  Spouse's Occupation:________________________________________

         I.  Number of Dependents1:______________________________________
         J.  Ages of Dependents:_________________________________________

         K.  State of Principal Residence:_______________________________

         L.  Do you now maintain a house or apartment in any other state?
             [ ] Yes  [ ] No

             If yes, in which state(s)?__________________________________

             In which states do you:

                       File state income tax returns?____________________

                       Hold a valid driver's license?____________________

                       Register to vote?_________________________________

________________________
1    The term "Dependents" shall have the same meaning as used for purposes of
     completing individual federal income tax returns.

                                       27
<PAGE>

QUESTIONS 2 THROUGH 4 ARE INTENDED TO DETERMINE WHETHER YOU, IF YOU ARE AN
INDIVIDUAL, QUALIFY TO INVEST IN THE SECURITIES AS AN ACCREDITED INVESTOR
PURSUANT TO RULE 501 OF REGULATION D UNDER THE 1933 ACT.

2.       FOR INDIVIDUALS ONLY

         Is your net worth $1,000,000 or more? (For purposes of this question,
         you may INCLUDE your spouse's net worth and may INCLUDE the value of
         your home, home furnishings and automobiles).

                                     [ ] Yes        [ ] No

3.       FOR INDIVIDUALS ONLY

         Was your INDIVIDUAL income2 (not joint with spouse) during the past two
         years at least $200,000 and do you anticipate that in the current year
         it will be at least $200,000?

                                     [ ] Yes        [ ] No

___________________________
2    Income may be calculated by starting with your Adjusted Gross Income and
     adding any deductions taken for long-term capital gains, depletion,
     partnership losses and tax exempt interest.

                                       28
<PAGE>

4.       FOR INDIVIDUALS ONLY

         Was your net income3 with your spouse during the past two years at
         least $300,000 and do you anticipate that in the current year it will
         be at least $300,000?

                                      [ ]Yes        [ ] No

5.       FOR INDIVIDUALS ONLY

         Is your net worth, either individually or jointly with your spouse, in
         excess of $250,000 and your personal income for 1995, 1996 and, based
         on reasonable expectation, for 1997, either individually or jointly
         with your spouse, in excess of $100,000?

                                     [ ] Yes        [ ] No

6.       FOR ENTITIES ONLY

         If the Investor is a partnership, corporation or trust, list the names
         of each partner, stockholder, trustee and beneficiary, and indicate
         date of organization.

         A.       Name of Entity:            ASH CAPITAL LLC
                                -----------------------------------------------
         B.       Form of Entity:            LIMITED LIABILITY COMPANY
                                -----------------------------------------------
         C.       Date of Organization:          APRIL 20, 1999
                                       ----------------------------------------
         D.       Address of Entity:  1400 S. FOOTHILL DRIVE, SUITE B-25,
                                      SALT LAKE CITY, UT  84108
                                   --------------------------------------------

         E.       Telephone Number of Entity:          (801) 581-9095
                                             ----------------------------------

         F.       Type of Business:      MANAGING VENTURE CAPITAL INVESTMENTS
                                   --------------------------------------------

         G.       U.S. Taxpayer Identification Number:
                                                     --------------------------

QUESTION 7 IS INTENDED TO DETERMINE WHETHER AN ENTITY QUALIFIES TO INVEST IN THE
SECURITIES AS AN ACCREDITED INVESTOR PURSUANT TO RULE 501 OF REGULATION D UNDER
THE 1933 ACT.

7.       FOR ENTITIES ONLY

         Is the entity any of the following?:

                    [ ]    A state or national bank or a savings and loan
                           association.
                    [ ]    A broker or dealer registered with the Securities and
                           Exchange Commission.
                    [ ]    An insurance company.
                    [ ]    A registered investment company.

___________________________

3    Income may be calculated by starting with your Adjusted Gross Income and
     adding any deductions taken for long-term capital gains, depletion,
     partnership losses and tax exempt interest.

                                       29
<PAGE>

                    [ ]    A business development company, as defined in
                           Section 2(a)(48) of the Investment Company Act of
                           1940.
                    [ ]    A licensed Small Business Investment Company (SBIC).
                    [ ]    A private business development company as defined
                           in Section 202(a)(22) of the Investment Advisors Act
                           of 1940.
                    [ ]    Any one of the following entities that has total
                           assets in excess of $5,000,000 and was not formed for
                           the specific purpose of acquiring the Securities: (i)
                           a corporation; (ii) a Massachusetts or similar
                           business trust; or (iii) a partnership.
                    [ ]    A trust, with total assets in excess of $5,000,000,
                           not formed for the specific purpose of acquiring the
                           Securities, whose purchase is directed by a
                           sophisticated person as described in Rule
                           506(b)(2)(ii) of Regulation D under the 1933 Act.
                    [ ]    An entity in which all of the equity owners are
                           accredited investors as defined above in Questions 2,
                           3, 4 and this Question 7.

8.       FOR ENTITIES ONLY

         Does the entity's net worth equal at least ten times the amount of its
         investment in the Securities?

                                     [ ] Yes        [X] No

9.       FOR ENTITIES ONLY

         Are you an employee benefit plan subject to ERISA, including, without
         limitation, an employer-sponsored individual retirement account,
         simplified employee pension account or Keogh plan account?

                                      [ ] Yes       [X] No

                                       30

<PAGE>

         If yes, please describe below the type of entity that you are and the
         nature of your business:

         ______________________________________________________________________
         ______________________________________________________________________

10.      EDUCATION - INDIVIDUALS ONLY

         SCHOOLS ATTENDED                            DEGREE RECEIVED/DATE
         ______________________________________________________________________
         ______________________________________________________________________
         ______________________________________________________________________

11.      PROFESSIONAL QUALIFICATIONS - INDIVIDUALS ONLY
         Please list all professional qualifications that you have held or
         currently hold, including professional admissions or certificates,
         accounting certificates and brokerage licenses:

         PROFESSIONAL                  YEAR                     STILL
         QUALIFICATIONS                RECEIVED                 EFFECTIVE?

         ______________________________________________________________________
         ______________________________________________________________________

12.      PRIOR INVESTMENT EXPERIENCE - ALL INVESTORS

         A.       Please indicate the frequency of your investment in publicly
                  traded securities:

                             [ ] Often                  [ ] Occasionally
                             [ ] Seldom                 [X] Never

         B.       Please indicate the frequency of your investment in
                  "restricted securities" (securities for which there is no
                  readily available market):

                             [ ] Often                  [ ] Occasionally
                             [ ] Seldom                 [X] Never

                                       31

<PAGE>

         C.       Please list your four largest investments during the last
                  three years. If none, so state.

                  NAME OF             TYPE OF          DOLLAR
                  INVESTMENT          INVESTMENT       AMOUNT           DATE

                  (1)
                     _________________________________________________________
                  (2)
                     _________________________________________________________
                  (3)
                     _________________________________________________________
                  (4)
                     _________________________________________________________

13.      Do you have sufficient knowledge and experience with investments,
         including financial, business and tax matters, to be capable of
         evaluating the merits and risks of an investment in the Company and
         making an informed investment decision with respect to that investment?

                             [ ] Yes          [ ] No

         If yes, please briefly explain:_______________________________________
         ______________________________________________________________________
         ______________________________________________________________________

14.      Please indicate in the space provided below any additional information
         which you think may assist the Company in determining that your
         knowledge and experience in financial and business matters are
         sufficient to enable you to evaluate the merits and risks of this
         investment.
         ______________________________________________________________________
         ______________________________________________________________________

                                       32

<PAGE>

     IN WITNESS WHEREOF, the undersigned has executed this Confidential Investor
Questionnaire as of , 2000.

SIGNATURE FOR INDIVIDUAL INVESTOR:

------------------------------------     ---------------------------------------
(Signature)                              (Signature of Spouse, If Applicable)

------------------------------------     ---------------------------------------
(Print name)                             (Print Name of Spouse, If Applicable)

------------------------------------
(Street Address)

------------------------------------
(City, State, Zip Code)

------------------------------------
(Social Security Number)

If Joint Ownership, Check One:

                 ____Husband and Wife, as Community Property

                 ____Joint Tenants with Right of Survivorship

                 ____Tenants-in-Common

          Note: The address given above must be the residence address of the
                investor. Post office boxes and other addresses will not be
                accepted.

          [SIGNATURE PAGE NO. 1 TO CONFIDENTIAL INVESTOR QUESTIONNAIRE]

                                       33
<PAGE>

SIGNATURE FOR PARTNERSHIP, TRUST, LLC, CORPORATION OR OTHER ENTITY:

Ash Capital, LLC
------------------------------------------------------
(Name of Security Holder)

/s/ DAVID HARKNESS
------------------------------------------------------
 (Signature)

David Harkness
-------------------------------------------------------
(Name of Signatory)

Managing Director
-------------------------------------------------------
(Title of Signatory)

Limited Liability Company - Utah
-------------------------------------------------------
(Print Type of Entity and Jurisdiction)

-------------------------------------------------------
(U.S. Taxpayer Identification Number)

          [SIGNATURE PAGE NO. 2 TO CONFIDENTIAL INVESTOR QUESTIONNAIRE]

                                       34

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