Document:

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                                    EXHIBIT 1
            BASIC TERMS OF INNCO PREFERRED SUPPLIER NETWORK AGREEMENT

EXECUTION DATE: April 16, 1998

RSI: RoomSystems International Corporation.

RSI's NOTICE ADDRESS: 390 North 3050 East, St. George, UT 85790

COMMENCEMENT DATE: April 6, 1998

TERMINATION DATE: April 6, 2003

AGREEMENT CAN BE TERMINATED BY EITHER PARTY WITHOUT CAUSE ON 90 DAYS PRIOR
WRITTEN NOTICE (Section 3.2)

PARTICIPATING PROPERTIES: The Participating Properties shall include the
         properties that satisfy the following definitions as of the Execution
         Date and any other properties which satisfy such definitions during the
         term of this Agreement after the Execution Date, but shall cease to
         include any Participating Property as of the date any such property
         ceases to satisfy the following definitions:

                           Tradename Hotels
                           Managed Hotels
                           Franchised Hotels
                           Portfolio Hotels
                           Specific List of Hotels in the Doubletree System
                           Specific List of Hotels in the PHI System

                                   EXHIBIT 1A

TRADENAMES (Section 2.9):

Club Hotel by Doubletree
Doubletree
Doubletree Club Hotel
Doubletree Guest Suites
Doubletree Inns
Doubletree Suites
Embassy Suites
Embassy Vacation Resort
Guest Hotels
Guest Inns
Guest Quarters Suite Hotels
Guest Suites Hotels
Hampton Inn
Hampton Inn & Suites
Hampton Vacation Resort
Homewood Suites
Red Lion Hotel
Red Lion Hotels & Inns
Red Lion Inn
Red Lion Motor Inn
Other: __________

REPORTING FREQUENCY (Section 6.1):
                Quarterly

                                    EXHIBIT 2
                           PRODUCT AND SPECIFICATIONS
                             (SECTIONS 2.7 AND 4.2)

Product to be Placed with Participating Properties Pursuant to the Provisions of
this Agreement*:

EQUIPMENT:         RS-5000 - Twenty-two  (22)  Selection and RS-3000 (20)
                   Selection  Computerized  RoomServ Refreshment Center,
                   to include:

                   2.3 or 1.7 cu. Ft. Automatic Defrost Refrigerator
                      Motorola HC11 Intelligent Processor
                      2x16 VCD Visual Confirmation Display
                      MultiVend Tamper Proof Design
                      In-Room Inventory Control System
                      Remote Programmability  MATV Deluxe Communication System

                   RS-100LB - 6" LowBoy RoomSafe, to include:
                       RoomServ Remote Communication Package

                   RS-200SS - Side-by-Side RoomSafe, to include:
                       RoomServ Remote Communication package

                   RS-586 RoomManagement Computer System to include:
                       Dual RS-586 DX-200 PC Towers SVGA Color Monitor
                       1GB Hard Drives UPS Battery Backups, Modems, etc.

                   RoomManagement System Software Package, to include:
                       Remote locking and unlocking Automatic Posting of
                       Guest Charges to PMS Report Package that
                       includes:
                            Restock (Full & Minimum),
                            Monthly Sales Analysis,
                            Inventory Control,
                            Audit Trail and Service Log

*RSI reserves the right to substitute equivalent or higher type products for the
above.

                                    EXHIBIT 3
                                   PRICE LIST
                                  (SECTION 4.4)

The prices for the Products shall initially be as set forth on this Exhibit 3*.
RSI shall have the right to change such prices on thirty (30) days prior written
notice. The prices charged for the Products to each Participating Property shall
be subject to the discounts provided on this Exhibit 3.

                              PRICE LIST - PURCHASE

                 RS-5000                  $                     1,095.00
                                             ----------------------------

                 RS-3000                  $                     1,045.00
                                             ----------------------------

                 RS-100LB                 $                       225.00
                                             ----------------------------

                 RS-200SS                                         295.00
                                             ----------------------------

                               PRICE LIST - LEASE

                 RS-5000                  $                     1,095.00
                                             ----------------------------

                 RS-3000                  $                     1,045.00
                                             ----------------------------

                 RS-100LB                 $                       225.00
                                             ----------------------------

                 RS200SS                                          295.00
                                             ----------------------------

Prices can be adjusted for sales and leases with thirty (30) days notice.
Revenue sharing is fixed unless mutually agreed to between INNCO and RSI.

*  Revenue Sharing terms are set forth in Exhibit 9.

                                    EXHIBIT 4
                                VOLUME PROJECTION
                                  (SECTION 4.5)

PRODUCT:   RS-5000 & RS-3000 RoomServ Refreshment Centers
              RS-100LB & RS-200SS LowBoy RoomSafe

<TABLE>
<CAPTION>

                                      PROJECTED VOLUME OF PURCHASES
              TIME PERIOD                  DURING TIME PERIOD
<S>                                   <C>
                  1998                            6,000
                  1999                           25,000
                  2000                           40,000
</TABLE>

                                    EXHIBIT 5
                        MARKETING AND PROMOTIONAL SUPORT
                                  (SECTION 4.6)

The following marketing and promotional support shall be provided during the
term of this Agreement:

MARKETING MATERIALS:

         Participating Property:    Shall provide  in-room tent cards and menus
                                    approved by RSI and INNCO

ADVERTISING PROGRAM:

         Anticipating joint advertising program with On Command Video. Details
and profit sharing among INNCO, RSI, the Participating Properties and On Command
Corporation to be defined at a later time.

OTHER PROMOTIONAL ACTIVITIES:

         To be determined.

                                    EXHIBIT 6
                            INTENTIONALLY LEFT BLANK

                                    EXHIBIT 7
                       PROGRAM ADMINISTRATION COMPENSATION
                                  (SECTION 4.8)

                  RSI shall make the following payments to INNCO as compensation
for program administration:

1. REVENUE SHARING AND OTHER FINANCING. RSI shall provide the Products to
Participating Properties on several bases, which shall include but not be
limited to the following:

              (1)          traditional sale;
              (2)          conventional operating lease;
              (3)          and revenue sharing plan.

The revenue sharing plan will be a no minimum plan wherein RSI will provide the
Product at no cost to the Participating Properties and share in the revenue with
the Participating Property as set forth in Exhibit 9. Each Participating
Property will be required to pay an initial $5,000 deposit, which will apply to
the initial revenue sharing payment.

2. OUTLINE OF RSI REVENUE SHARING PLAN. Gross sales is the total sales generated
from sales of merchandise from the Products, usage from the RoomSafe and any
other fee services supporting the Products. Net sales are the gross sales minus
sales tax. RSI shall establish the threshold (the "THRESHOLD") amount that shall
be used to determine how the net revenue shall be shared between RSI and any of
the Participating Properties. The Threshold amount is a variable that is
calculated by multiplying the equipment price by a factor of .0007. Daily sales
revenue shall be determined by dividing net sales by the number of days in the
month, by the total number of rooms installed in each property.

Revenue to RSI will be 90% up to the Threshold amount and 15% of everything over
the Threshold amount. Revenue to any of the Participating Properties will be 10%
up to the Threshold amount and 85% over the Threshold amount.

3.       COMMISSIONS. In consideration for this Agreement, RSI agrees to pay the
         following fees and commissions as set forth below:

Management fee compensation to INNCO will be a one-time payment of $5.00 per
installed unit upon completion of installation, and then during the term of this
Agreement, 1/3 of each 15% payment received by RSI over the Threshold amount.
Commission will be paid 90 days after installation, provided there have been no
cancellations by the Participating Properties.

                                    EXHIBIT 8
                            INTENTIONALLY LEFT BLANK

                                    EXHIBIT 9
                      HOTEL REVENUE SHARING LEASE AGREEMENT
                                  (SECTION 5.3)

For each of the Participating Properties that elects placement of the Products
pursuant to a revenue sharing arrangement, the terms and conditions of the
"Hotel Revenue Sharing Lease Agreement" which compromise this Exhibit to the
Agreement shall govern.

Each of the Participating Properties shall execute the "Hotel Revenue Sharing
Lease Agreement" in the form attached hereto, and shall execute and complete all
documents referenced therein.

                                    EXHIBIT 9

                      HOTEL REVENUE SHARING LEASE AGREEMENT

         THIS HOTEL REVENUE SHARING LEASE AGREEMENT (this "AGREEMENT" or "HOTEL
REVENUE SHARING LEASE AGREEMENT") is dated *3 and entered into by and between
ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION, ("ROOMSYSTEMS") a Nevada
corporation, having its principal office and place of business at 3770 Howard
Hughes Parkway, Suite 175, Las Vegas, Nevada, 89109 and *1 ("HOTEL"), a *9
corporation, having its office and place of business at *2.

        IN CONSIDERATION of the mutual agreements set forth hereinafter,
the parties agree as follows:

         1.     LEASED EQUIPMENT. This Agreement and each Equipment Schedule (as
defined below) entered into under this Agreement shall describe the equipment
leased under this Agreement and shall be subject to all terms and conditions of
this Agreement as such Agreement may from time-to-time be amended. Each
Equipment Schedule to be entered into between RoomSystems and Hotel pursuant to
this Agreement shall be in the form annexed hereto as Attachment I (the
"EQUIPMENT SCHEDULE"). Each Equipment Schedule shall be enforceable according to
the terms and conditions contained therein and such terms and conditions are
incorporated into this Agreement. Capitalized terms not otherwise defined in
this Agreement shall have the meanings ascribed to such terms in each Equipment
Schedule. In the event of a conflict between the terms of this Agreement and any
Equipment, the terms of the Equipment Schedule shall prevail with respect to
that Equipment Schedule.

         RoomSystems agrees to place with Hotel, and Hotel agrees to accept and
lease from RoomSystems, in accordance with the terms and conditions herein, the
equipment and features together with all replacements, parts, repairs,
additions, attachments and accessories related thereto (collectively called the
"EQUIPMENT" and individually called a "PLACED ITEM") described in each executed
Equipment Schedule. Hotel shall have no right, title or interest in the
Equipment, except as expressly set forth in this Agreement. RoomSystems and
Hotel shall have no obligation hereunder until the execution and delivery of an
Equipment Schedule by RoomSystems and Hotel.

         2. TERM PAYMENTS AND TERMINATION. The term (the "TERM") of this
Agreement shall commence on the date set forth above and shall continue
thereafter so long as any Equipment Schedule entered into pursuant to this
Agreement remains in effect.

         The lease term and lease payment for the Equipment shall be as stated
herein and in the respective Equipment Schedule(s). At the end of such lease
term provided no Event of Default has occurred and is continuing, Hotel shall
have the option exercisable on no less than 135 days prior written notice to
RoomSystems to (A) purchase the Equipment for its then Fair Market Value (as
hereinafter defined), or (B) renew the Equipment Schedule under mutually
acceptable terms, or (C) permit the Equipment Schedule to terminate according to
its terms. Upon payment in full of the amount required to exercise Hotel's
option to purchase the Equipment, RoomSystems shall transfer its right, title
and interest in the Equipment to Hotel "AS-IS WHERE IS," without any express or
implied representations or warranties whatsoever concerning the condition of the
Equipment. If, upon the termination of the applicable Equipment Schedule as to
any Placed Item, Hotel fails or refuses to return and deliver possession of such
Placed Item to RoomSystems pursuant to Section 15 hereof within ten (10)
business days after the expiration of the term of the Equipment Schedule, in
addition to all other rights and remedies available to RoomSystems, Hotel shall
be liable to RoomSystems for the Fair Market Value of such Placed Items until
returned to RoomSystems as well as all other damages incurred by RoomSystems.

         All Payments (hereinafter defined) shall, unless otherwise directed by
RoomSystems in writing, be made to RoomSystems on the Payment Date (hereinafter
defined) by electronic transfer of funds, and Hotel shall execute all
authorizations necessary for such electronic transfers. If the Payment Date is
not a business day, Payments for such period shall be due on the next business
day. Any Payment not made by the related Payment Date shall be subject to a late
payment fee of ten percent (10%) of the outstanding Payment amount.

         3. ACCEPTANCE, WARRANTIES AND LIMITATION OF LIABILITY. Hotel shall
execute and deliver to RoomSystems a certificate of acceptance (the
"CERTIFICATE") in the form of Exhibit A to the Equipment Schedule with respect
to each Placed Item installed at the Hotel, acknowledging its acceptance of each
such Placed Item. Hotel represents and agrees that, as of the date each Placed
Item is accepted pursuant to a Certificate ("ACCEPTANCE DATE"), such Certificate
shall be conclusive evidence that each Placed Item is of a size, design,
capacity and manufacture selected by Hotel and that Hotel has inspected such
Placed Item, found it to be in good order, and unconditionally accepts such
Placed Item(s), subject to any right or remedy Hotel may have against the
manufacturer or supplier thereof. Notwithstanding any relationship between
RoomSystems and any manufacturer, supplier or Servicer of the Equipment,
RoomSystems shall have no liability to Hotel for any claim, loss or damage
caused or alleged to be caused directly, indirectly, incidentally or
consequentially by the Equipment, by any inadequacy or deficiency thereof or,
defect therein, by any incident whatsoever in connection therewith, or in any
way related to or arising out of this Agreement whether arising

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                                    EXHIBIT 9

in contract, strict liability, negligence or otherwise. Hotel shall not assert
any claims, counterclaims, or defenses against RoomSystems for consequential,
special or indirect damages, or for loss of use or loss of profits. RoomSystems
makes no express or implied warranties of any kind, including those of
merchantability, durability, or fitness for a particular purpose or use with
respect to the Equipment and expressly disclaims the same. Hotel understands and
agrees that: (A) RoomSystems, Inc. is the supplier of the Equipment; (B) Article
2A of the UNIFORM COMMERCIAL CODE (or any state law equivalent) entitles Hotel
to enforce against the supplier or manufacturer of the Equipment warranties made
about the Equipment to RoomSystems, and (C) That Hotel may communicate with the
supplier or manufacturer and receive a copy of the promises, warranties, or
disclaimers made. Hotel will be entitled to the benefit of any applicable
manufacturer's warranties, and to the extent assignable, such warranties are
hereby assigned by RoomSystems for the benefit of Hotel, and Hotel shall take
all reasonable action to enforce such warranties where available to Hotel.

         4. ASSIGNMENT, OBLIGATION TO MAKE PAYMENTS UNCONDITIONAL. RoomSystems
may assign or sell all or a portion of its right, title and interest in and to
the Equipment, any Placed Item, this Agreement, and/or any Equipment Schedule,
and/or grant a security interest in the Equipment, any Placed Item, this
Agreement, and/or any Equipment Schedule, to any other party (any such party is
referred to herein as "ASSIGNEE"); provided, however, any such assignment or
sale shall not relieve RoomSystems of any of its obligations hereunder. Hotel
hereby: (A) Consents to such sales, assignments and/or grants; (B) Agrees to
execute promptly and deliver such further acknowledgments, agreements and other
instruments as may be reasonably requested by RoomSystems or any Assignee to
effect such assignments and/or grants; and (C) Agrees to comply fully with the
terms of any such assignments and/or grants, provided Assignee does not change,
amend or alter any right or expand any duty or obligation of Hotel without
Hotel's prior written consent. In the event of an assignment, Assignee shall
have all rights and benefits of RoomSystems under this Agreement, but Assignee
shall not be obligated to perform the obligations of RoomSystems hereunder
unless Assignee expressly agrees to do so in writing. Hotel agrees that its
obligation to pay all Payments, except Disputed Revenue (defined hereinunder),
from sales from the Equipment, and other sums payable hereunder as well as the
rights of RoomSystems and Assignee in and to such Payments, are absolute and
unconditional and are not subject to any abatement, reduction, set off, defense,
counterclaim or recoupment due or alleged to be due, to or by reason of, any
past, present or future claims which Hotel may have against RoomSystems,
Assignee, any manufacturer, supplier, seller or Servicer, defined hereinafter,
of the Equipment, or against any person for any reason whatsoever. Hotel shall
have no right to assign this Agreement, any Equipment Schedule, or the
Maintenance Agreement, or to sublease the Equipment without the express prior
written consent of RoomSystems, which consent shall not be unreasonably
withheld.

         5. INSTALLATION, MAINTENANCE AND REPAIR. Hotel, at its expense, shall
be responsible for the delivery, installation, de-installation, redelivery,
maintenance and repair of the Equipment, all of which shall be effected by the
Servicer (defined in this paragraph), the manufacturer or its authorized
representative, or such other party acceptable to RoomSystems. Hotel agrees, at
all times during the Term of this Agreement, at its sole expense, to keep the
Equipment in good repair, condition and working order, and to furnish all parts,
mechanisms or devices which may be required in the course of so doing. Hotel
will at all times during the Term of this Agreement, maintain in force a Hotel
Installation, Maintenance and License Agreement (the "MAINTENANCE AGREEMENT"),
covering the Equipment with the manufacturer or supplier of the Equipment, or
such other party as may be acceptable to RoomSystems (such party the
"SERVICER"). RoomSystems or Assignee will have the right, but not the
obligation, to inspect the Equipment during reasonable business hours. Hotel
shall provide Servicer access to the Equipment to install at no charge to Hotel
engineering changes which RoomSystems or Servicer deems necessary to keep the
Equipment at current engineering levels. RoomSystems agrees that by: Hotel's
performing all of its repair, maintenance, deactivation and upgrade obligations
under this Agreement; Hotel's entering into RoomSystems' recommended Hotel
Installation, Maintenance and License Agreement with RSi; and Hotel's permitting
RSi to perform its obligations under the Maintenance Agreement, Hotel will be
deemed to have performed all of Hotel's installation, repair, maintenance,
de-activation, upgrade and related obligations under this Agreement. As a
material inducement for RoomSystems to enter into this Agreement with Hotel on a
"revenue sharing basis" Hotel shall:

                (A) Purchase and maintain an inventory level of Merchandise that
Hotel reasonably believes will maximize the revenue generating capability of the
Equipment;
                (B) Review the "restocking report" and inspect each Placed Item
which has been used within one (1) day after a guest has checked out of the
Hotel premises and prior to allowing the room to be occupied by a new guest, but
not less than once every month;
                (C) Determine during each such inspection whether: (i) such
Placed Item requires refilling of Merchandise to reach full capacity; (ii) such
Placed Item is ready for the next guest as outlined in the operation and
procedures manual provided by Servicer (the "MANUAL"); and/or (iii) any
Merchandise is missing from a Placed Item

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                                    EXHIBIT 9

and not reported as a sale, and shall then record missing Merchandise as a sale
to any guest's folio as outlined in the Manual;

                (D) Fully stock each Placed Item with Merchandise prior to
allowing the room to be occupied by a new guest;

                (E) Provide all point-of-sale and printed menus as reasonably
requested by Servicer to maximize sales volumes;

                (F) Provide and maintain the necessary dedicated telephone lines
and internet access, if available, at Hotel's sole expense, and to provide a
MATV and/or telephone system that meets the specifications of Servicer
permitting communication of data between the Equipment, the required computer to
operate the Equipment (the "SYSTEM") and Servicer's (or its affiliates) central
office;

                (G) Provide grounded outlets within six feet (6'), and a MATV
connector or RJ-11 direct-connect socket within twelve feet (12') of the
location of each Placed Item in each guest room on the Hotel premises (the
"PREMISES");

                (H) Be responsible for the unloading of the Equipment upon
delivery and promptly placing the Equipment into the guest rooms upon arrival;

                (I) Take all actions and pay all costs necessary to cause the
System to interface with Hotel's computer system;

                (J) During the Term of this Agreement, permit the employees
and/or representatives of RoomSystems or Servicer to stay as a guest in the
Hotel, in a standard double occupancy room, free of charge for room and
reasonable board, for a total of three (3) days per Contract Year (as
hereinafter defined) when visiting the Hotel for the purpose of inspecting the
Equipment. In addition to the above, during the term of this Agreement, Hotel
shall permit employees and/or representatives of RoomSystems when visiting the
Hotel for purposes of inspecting the Equipment, to stay as a guest of the Hotel
in a standard double occupancy room for a total of five (5) days per Contract
Year free of charge, subject to availability. If the Hotel is at least ninety
percent (90%) occupied, then the Hotel shall provide these rooms at a rate equal
to fifty percent (50%) of the corporate discount room rate upon at least one
days' prior notice to Hotel; provided, however, such room and board in either
case shall not include long distance phone calls, use of personal laundry,
valet, in-room movies, gift shop purchases, alcoholic beverages, or any other
charges other than room and reasonable board; and

                (K) Remove all vending machines from the floors that might
compete with the Equipment, if such removal does not violate any existing
contracts, which contracts have been provided to RoomSystems for review prior to
the execution of this Agreement.

         6. REPRESENTATIONS AND WARRANTIES. Hotel represents and warrants for
the benefit of RoomSystems and any Assignee (as defined hereinafter) and if
requested by RoomSystems will provide an opinion of counsel and other supporting
documents reasonably requested by RoomSystems to the effect that, at the time of
execution of this Agreement and of each Equipment Schedule:

                (A) Hotel is a legal entity, duly organized, validly existing
and in good standing under the law of the jurisdiction where the Equipment will
be located and has adequate power to enter into and perform this Agreement and
each Equipment Schedule and Maintenance Agreement executed hereinafter;

                (B) This Agreement and each Equipment Schedule and Maintenance
Agreement executed hereinafter has been duly authorized, executed and delivered
by Hotel and together constitute a valid, legal and binding agreement of Hotel,
each enforceable in accordance with its terms;

                (C) The entering into and performance of this Agreement and each
Equipment Schedule and Maintenance Agreement executed hereinafter will not
violate any provision of Hotel's articles of incorporation or bylaws, and to the
best of Hotel's knowledge, will not violate any judgment, order, or result in
any breach of, or constitute a default under, or result in the creation of any
lien, charge, security interest or other encumbrance upon any assets of Hotel or
on the Equipment of this Agreement pursuant to any instrument to which Hotel is
a party or by which it or its assets may be bound pursuant to any law or
regulation applicable to Hotel;

                (D) To the best of Hotel's knowledge there are no actions, suits
or proceedings pending or, threatened, before any court, administrative agency,
arbitrator or government body which will, if determined adversely to Hotel,
materially adversely affect its ability to perform its obligations under this
Agreement, any Equipment Schedule or the Maintenance Agreement, executed
hereinafter or any related agreement to which Hotel is a party;

                (E) To the best of Hotel's knowledge, Hotel is not in any
material default under any loan or lease agreement; and

                (F) That all financial information and other information
furnished to RoomSystems or any other party in connection with this Agreement
was, at the time of delivery, true and correct in all respects; and that there
has been no

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                                    EXHIBIT 9

material adverse change with respect to such financial information from the date
of delivery by the Hotel to the date of this Agreement.

         7.     RISK OF LOSS AND DAMAGE.

                (A) Hotel agrees to bear the entire risk of loss with respect to
any damage, destruction, loss, or theft of the Equipment and any Placed Item,
whether insured or not, whether such loss is partial or complete and from any
cause at all, whether or not through any default or neglect of Hotel (except if
such damage, destruction, loss or theft arises from the negligence, act, or
omission of RoomSystems' employees or agents including Servicer) which shall
occur after the Acceptance Date but prior to the earlier of the date such Placed
Item of RoomSystems is removed from the Hotel by RoomSystems or thirty (30) days
after such Placed Item is returned pursuant to Section 15 hereof. Except as
provided in this Section 7, no such event shall relieve Hotel of its obligation
to make Payments hereunder.

                (B) If any Placed Item is damaged and capable of repair, Hotel
must promptly notify RoomSystems, and within sixty (60) days of such damage
shall, at Hotel's expense, cause such repairs to be made as are necessary to
return such Placed Item to its condition prior to such damage.

                (C) In the event any Placed Item is destroyed, damaged beyond
repair, lost or stolen, (an "EVENT OF LOSS"), Hotel must promptly notify
RoomSystems and Assignee and pay to RoomSystems or Assignee, as the case may be,
no later than sixty (60) days following the Event of Loss, an amount equal to
the "Liquidated Damage Value" (as defined in the relevant Equipment Schedule)
and all Payments accrued on any such Placed Item prior to the date the hotel
makes such payment. Upon payment of such amounts in full, Hotel's obligation to
pay any further Payments will cease with respect to such Placed Item(s) (but not
with respect to any of the remaining Equipment) and Hotel will be entitled to
receive any insurance proceeds or other recovery received by RoomSystems or
Assignee in connection with such Event of Loss.

         8. INSURANCE. Hotel, at its sole expense, shall insure the Equipment
against all risks and in such amounts as RoomSystems reasonably requests, but
not less than the greater of Face Market Value or Liquidated Damaged Value, as
defined in the relevant Schedules attached to this Agreement, of all Placed
Items set forth in the Equipment Schedule(s) attached hereto, with carriers
reasonably acceptable to RoomSystems. Such insurance policies shall insure
against, among other exposures, bodily and personal injury, property damage
liabilities, and other risks customarily insured against by Hotel on equipment
owned by Hotel. All such insurance policies must name RoomSystems, Hotel and
Assignee as additional insureds and loss payees, and must provide that such
policies may not be canceled or altered without at least thirty (30) days prior
written notice to RoomSystems and Assignee. If Hotel does not provide
RoomSystems or its Assignee a certificate of insurance reasonably acceptable to
RoomSystems or its Assignees or a certified copy of the insurance policy,
RoomSystems has the right, but not the obligation, to obtain insurance covering
the Equipment from an insurer of RoomSystems' choice. RoomSystems may add the
costs of acquiring and maintaining such insurance and all fees for RoomSystems'
services in place and maintaining such insurance (collectively, "INSURANCE
CHARGE") to the Payments due from Hotel under this Agreement. Hotel will pay the
Insurance Charge in equal installments allocated to the remaining Payments (plus
interest on such allocation at 1.5% per month or, if less, the maximum rate
allowed by law). If RoomSystems purchases insurance as permitted above, Hotel
will cooperate with RoomSystems' insurance agent with respect to the placement
of insurance and the processing of claims. Nothing in this Agreement will create
an insurance relationship of any type between RoomSystems or its Assignee and
any other person. Hotel acknowledges that RoomSystems and its Assignee are not
required to secure or maintain any insurance, and RoomSystems and its Assignee
will not be liable to Hotel if RoomSystems or its Assignee terminate any
insurance coverage that RoomSystems or its Assignee arrange. If RoomSystems or
its Assignee replace or renew any insurance coverage, RoomSystems or its
Assignee are not obligated to provide replacement or renewal coverage under the
same terms, cost, limits or conditions of the previous coverage.

         9.     INDEMNITY.

                (A) Hotel agrees to indemnify, hold harmless and defend,
RoomSystems and Assignee and any of their officers, directors or employees and
their successors and assigns (all such parties the "INDEMNIFIED PARTIES") from
and against any and all claims, demands, actions, suits, proceedings, costs,
expenses, damages and liabilities, at law or in equity, whether based on a
theory of contract, negligence, strict liability or otherwise, including
reasonable attorneys' fees related thereto, arising out of, connected with, or
resulting from, this Agreement, any Equipment Schedule executed hereunder or the
Equipment, including without limitation, the manufacture, selection, purchase,
delivery, possession, condition, use, lease, operation or return thereof, or any
defects in the Equipment, except to the extent a claim has arisen from such
Indemnified Party's, or Servicer's when acting as RoomSystems' agent, own
negligence, act or omission. Hotel's obligations hereunder will survive the
expiration of this Agreement with respect to acts or events occurring or alleged
to have occurred prior to the return of the Equipment to RoomSystems at the end
of the Term.

                                        4
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                                    EXHIBIT 9

                (B) RoomSystems agrees to indemnify, hold harmless and defend
Hotel, the company managing the Hotel, and any of their officers, directors,
partners, employees and agents, and each of their successors and assigns (all
such parties the "HOTEL INDEMNIFIED PARITIES") from and against any and all
claims, demands, actions, suits, proceedings, costs, expenses, damages and
liabilities, at law or in equity, including court costs and reasonable
attorneys' fees related thereto, arising out of, connected with, or resulting
from, any injury to persons (including death) or damage to property (including
the Equipment) directly or indirectly due to the negligence, act or omission of
RoomSystems, its employees or agents, except to the extent a claim has arisen
from such Hotel Indemnified Parties' own negligence. RoomSystems' obligations
hereunder will survive the expiration of this Agreement with respect to acts or
events occurring or alleged to have occurred prior to the removal of the
Equipment by RoomSystems or its agent at the end of the Term.

         10. LIENS AND TAXES. RoomSystems owns and holds title to the Equipment.
Hotel will, at its sole expense, keep the Equipment free and clear of all
levies, liens and encumbrances. Hotel will declare and pay to the appropriate
governmental authorities when due all license fees, registration fees,
assessments, charges and taxes, whether municipal, state or federal (foreign and
domestic), including but not limited to, sales and excise taxes, and penalties
and interest with respect thereto, excluding, however, any use or property taxes
or any taxes measured solely by RoomSystems' net income. Hotel shall provide
evidence of any payment hereunder upon request of RoomSystems. Hotel's
obligations hereunder will survive the expiration of this Agreement with respect
to liens or taxes accruing or attaching or alleged to have occurred or attached
prior to the return of the Equipment to RoomSystems at the end of the term of
the applicable Equipment Schedule(s).

         11. HOTEL'S FAILURE TO PERFORM. After the occurrence of an Event of
Default (as described hereinafter), RoomSystems has the right, but not the
obligation, and without releasing Hotel from any obligation hereunder, to make
or do the same, to pay, purchase, contest or compromise any encumbrance, charge
or lien which, in the reasonable judgment of RoomSystems, appears to affect the
Equipment or this Agreement and, in exercising any such rights, incur any
liability and expend whatever amount in RoomSystems' reasonable discretion
RoomSystems may deem necessary therefor. All sums so incurred or expended by
RoomSystems shall be, without demand, immediately due and payable by Hotel,
shall be considered Payments hereunder, and will bear interest at the lessor of
1.50% per month or the highest interest rate legally permissible.

         12. EQUIPMENT IS PERSONAL PROPERTY; LOCATION OF EQUIPMENT. Hotel
covenants and agrees that the Equipment is, and will at all times be and remain,
personal property of RoomSystems or Assignee. If requested by RoomSystems, Hotel
will obtain, prior to delivery of any Placed Item, a certificate in a form
satisfactory to RoomSystems from all parties with an interest in the Premises
wherein the Equipment may be located, waiving any claim with respect to the
Equipment and other items reasonably requested by RoomSystems or Assignee. Hotel
will neither move any Placed Item nor permit any Placed Item to be moved from
the address set forth in the applicable Equipment Schedule without RoomSystems'
advance written consent.

         13. DESIGNATION OF EQUIPMENT OWNERSHIP. If at any time during the term
hereof, Hotel is supplied with labels, plates or other markings stating that the
Equipment is owned by RoomSystems or is subject to any interest of Assignee,
Hotel agrees to affix and keep the same displayed on the Equipment, provided
however, that such placement shall not be obtrusive to users of the Equipment
while installed at the Hotel. Hotel agrees that this Agreement is a true finance
lease. However, as a precaution in the event (and only to the extent) the
transactions underlying this Agreement are deemed to be a lease intended for
security, Hotel hereby grants RoomSystems and Assignees a first priority
purchase money security interest in the Equipment. Hotel agrees to execute and
file Uniform Commercial Code financing statements and any and all other
instruments necessary to perfect (in RoomSystems' reasonable opinion)
RoomSystems' or Assignee's interest in this Agreement, any Equipment
Schedule(s), the Equipment or the payments due hereunder. RoomSystems may file a
copy of this Agreement and appropriate Equipment Schedule(s) as a financing
statement.

         14. USE. Hotel shall use the Equipment in a careful and proper manner
in conformance with manufacturer's specifications and shall comply with, and
conform to, all federal, state, municipal and other laws, ordinances and
regulations in any way relating to the possession, use or maintenance of the
Equipment.

         15. SURRENDER OF EQUIPMENT. Upon the expiration or earlier termination
of each Equipment Schedule with respect to any Placed Item, Hotel shall: (A)
make all Payments due to RoomSystems through and including such termination or
expiration date; and (B) unless Hotel has paid RoomSystems in cash the Fair
Market Value of the Equipment, return the same to RoomSystems in good repair,
condition and working order, ordinary wear and tear resulting from proper use
thereof alone excepted. Such return shall be effected promptly by transporting
the Equipment to RoomSystems or such other party designated by RoomSystems. Upon
return, all components of the Equipment shall be clean, and shall include all
instruction manuals and operating software. All costs of replacing missing
components

                                        5
<PAGE>

                                    EXHIBIT 9

and repairing non-working components shall be borne by Hotel. At Hotel's option,
RoomSystems shall clean the returned equipment (or cause it to be cleaned), the
reasonable costs of which shall be paid by Hotel.

         The deinstallation of the Equipment shall be done in a manner resulting
in no harm or damage to the Equipment. RoomSystems shall have the sole right to
make all the arrangements for (A) the transportation of each Placed Item to and
the deinstallation of each Placed Item at the equipment location stated in the
applicable Equipment Schedule, and (B) the discontinuance, disassembly, packing
and transportation of each Placed Item from the equipment location to a location
of RoomSystems' choice within the United States upon the termination of the
applicable Equipment Schedule (by expiration or otherwise) as to such Placed
Item. Hotel shall pay all costs of deinstallation, disassembly, packing and
transportation of the Equipment.

         16. DEFAULT. The occurrence of any of the following events shall
constitute an event of default ("EVENT OF DEFAULT"): (A) The failure of
RoomSystems to receive any Payment on the date on which it is due which failure
is not cured within five (5) business days after notice thereof from RoomSystems
or Assignee; (B) The failure by Hotel to perform or observe any other term,
covenant or condition of this Agreement or any Equipment Schedule or any
Maintenance Agreement, which is not cured within thirty (30) days after notice
thereof from RoomSystems or Assignee; (C) Any affirmative act of insolvency by
Hotel, or the filing by Hotel of any petition or action under any bankruptcy,
reorganization, insolvency arrangement, liquidation dissolution or moratorium
law, or any other law or laws for the relief of, or relating to debtors; (D) The
filing of any involuntary petition against Hotel under any bankruptcy,
reorganization, insolvency arrangement, liquidation, dissolution or moratorium
law for the relief of or relating to debtors which is not dismissed within sixty
(60) days thereafter, or the appointment of any receiver, liquidator or trustee
to take possession of any substantial portion of the properties of Hotel, unless
the appointment is set aside or ceases to be in effect within sixty (60) days
from the date of said filing or appointment; (E) The subjection of a substantial
part of Hotel's property or any Placed Item to any levy, seizure, assignment or
sale for or by any creditor or governmental agency; (F) Any representation or
warranty made by Hotel in this Agreement or in any Equipment Schedule or in any
document furnished by Hotel to RoomSystems or Assignee in connection with this
Agreement or any Equipment Schedule or with respect to the acquisition or use of
the Equipment shall be untrue in any material respect at any time; (G) The
default by Hotel under any other lease or loan agreement which materially
affects Hotel's ability to perform its obligations under this Agreement; or (H)
if any Placed Item is sold or has a lien or encumbrance placed upon it by
someone other than RoomSystems or Assignee.

         17. REMEDIES. Upon the happening of any Event of Default, RoomSystems
or Assignee may do one or more of the following:

                (A) Require Hotel, and Hotel shall, upon demand of RoomSystems,
on the next Payment Date following such demand, pay RoomSystems or Assignee, as
liquidated damages and not as a penalty, an amount equal to the Liquidated
Damage Value multiplied by 1.2, together with any Payments then due and owing by
Hotel hereunder, as well as all costs and expenses owed under this Agreement,
including commissions, legal fees and disbursements and other expenses incurred
by RoomSystems as a result of the Event of Default and the exercise of
RoomSystems' remedies with respect thereto (all such amounts collectively the
"DEFAULT VALUE"), plus interest from such next Payment Date until paid, on the
Default Value at ten percent (10%) (or such lesser amount allowed by law); and
upon such default and such payment, Hotel shall own the Equipment;

                (B) RoomSystems (or its representative) may, without notice to
or demand upon Hotel, take possession of the Equipment and lease and/or sell the
same, or any portion thereof, in such manner or amount, and to such entity as
RoomSystems, in RoomSystems' discretion shall elect. If RoomSystems elects to
sell or lease the Equipment, RoomSystems may do so at a public or private sale
or lease and upon notice to Hotel, which notice will be deemed to be
commercially reasonable if the time and place of any public sale, lease or other
intended disposition or the time after which any private sale, lease or other
intended disposition is to be made shall be sent by first class, certified or
registered mail to Hotel no later than ten (10) days prior to such proposed
sale, lease or other disposition. The proceeds of such sale or lease will be
applied by RoomSystems (i) first, to pay RoomSystems an amount equal to the
Default Value; and (ii) second, to reimburse Hotel for the Default Value to the
extent previously paid by Hotel. Any surplus remaining thereafter will be
retained by RoomSystems. Hotel shall remain responsible for any outstanding
balance of the Default Value after application of any proceeds received from
such sale or lease of the Equipment;

                (C) Take possession of the Equipment and hold and keep idle the
same or any portion thereof;

                (D) Disable the Equipment;

                (E) Cancel or terminate this Agreement or any and all other
agreements between Hotel and RoomSystems (or its affiliates).

                The exercise of any of the foregoing remedies by RoomSystems
will not constitute a termination of this Agreement or any Equipment Schedule
unless RoomSystems so notifies Hotel in writing. No remedy referred to in

                                        6
<PAGE>

                                    EXHIBIT 9

this Section 17 is intended to be exclusive, but each shall be cumulative and in
addition to any other remedy provided herein available to RoomSystems at law or
in equity.

         18.    MISCELLANEOUS.

                (A) EFFECT OF WAIVER. No delay or omission to exercise any right
or remedy accruing to RoomSystems or any Assignee upon any breach or default of
Hotel will impair any such right or remedy or be construed to be a waiver of any
such breach or default; nor will a waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval on the part of RoomSystems or
any Assignee of any breach or default under this Agreement, any Equipment
Schedule or of any provision or condition hereof or thereof, must be in writing
specifically set forth.

                (B) NOTICES. Any notice required or permitted to be given by the
provisions hereof must be in writing and will be conclusively deemed to have
been received by a party hereto on the day it is delivered to such party at the
address indicated below (or at such other address as such party specifies to the
other party in writing) or, if sent by registered or certified U.S. mail, on the
fifth business day after the day on which mailed, addressed to such party at
such address:

   If to RoomSystems:    RoomSystems International Funding Corporation,
                         3770 Howard Hughes Parkway, Suite 175, Las Vegas, NV
                         89109; Facsimile 702-792-2403
   If to Hotel:          As set forth in the applicable Equipment Schedule

                (C) ATTORNEYS' FEES AND COSTS. In the event of any action at law
or suit in equity in relation to this Agreement, or any Equipment Schedule, the
prevailing party will be entitled to recover from the non-prevailing party
attorneys' fees and costs.

                (D) APPLICABLE LAW, JURISDICTION AND VENUE. This Agreement and
Equipment Schedule(s) shall be governed by, and construed in accordance with,
the laws of the state of Nevada, without regard to principles of conflicts of
law. RoomSystems and Hotel hereby consent to jurisdiction and venue in any state
or federal court in the state of Nevada and hereby waive any objections that
jurisdiction or venue in any such court is not proper.

                (E) SECURITY INTEREST. No security interest in this Agreement or
any Equipment Schedule may be granted by Hotel without RoomSystems' consent.

                (F) FINANCIAL STATEMENTS. Hotel agrees to furnish promptly, or
cause to be furnished, to RoomSystems and Assignee within one hundred twenty
(120) days of the end of each fiscal year, financial statements of Hotel
prepared in accordance with generally accepted accounting principles, together
with such other financial and related information respecting the Hotel or the
Equipment as RoomSystems or Assignee may from time to time reasonably request.

                (G) ENTIRE AGREEMENT. RoomSystems and Hotel acknowledge that
there are no agreements or understandings, written or oral, between RoomSystems
and Hotel with respect to the Equipment, other than as set forth herein and in
each Equipment Schedule and that this Agreement and each Equipment Schedule
contain the entire agreement between RoomSystems and Hotel with respect thereto.
Neither this Agreement, nor any Equipment Schedule may be altered, modified,
terminated or discharged except by a writing signed by the party against whom
such alteration, modification or discharge is sought.

                (H) SEVERABILITY. Any provision of this Agreement or any
Equipment Schedule prohibited by, or unlawful or unenforceable under, any
applicable law in any jurisdiction shall be ineffective as to such jurisdiction
without invalidating the remaining provisions of this Agreement; provided,
however, that to the extent that the provisions of any such applicable law can
be waived, they are hereby waived by Hotel and RoomSystems.

                (I) NON-SPECIFIED FEATURES. If the Equipment delivered pursuant
to any Equipment Schedule contains any features not specified therein, Hotel
grants RoomSystems, at RoomSystems' option and RoomSystems' expense, the right
to remove or deactivate any such features. Such removal or deactivation shall be
performed by the RoomSystems or another party reasonably acceptable to
RoomSystems, at a time convenient to Hotel, provided that Hotel shall not
unreasonably delay the removal or deactivation of such features.

                (J) QUIET ENJOYMENT. Provided that no Event of Default has
occurred or is continuing hereunder RoomSystems, Assignee or their agents or
assigns shall not interfere with Hotel's right of quiet enjoyment and use of the
Equipment.
                (K) ALTERATIONS. Hotel shall be permitted with RoomSystems'
prior written consent and at Hotel's own expense to make alterations or
improvements to the Equipment which are readily removable without causing
material damage to the Equipment and do not adversely affect any manufacturer's
warranties with respect to such Equipment. In the event such alterations are not
removed at the end of the Term, such alterations shall become the property of
RoomSystems.
                (L) HEADINGS. Section headings are for convenience only and
shall not be construed as part of this Agreement.

                                        7
<PAGE>

                                    EXHIBIT 9

                (M) SUCCESSORS. This Agreement shall inure to and bind the
permitted successors and assigns of the respective parties.

                (N) USAGE. In this Agreement the singular includes the plural
and the plural the singular. References to agreements and other contractual
instruments shall be deemed to include all subsequent amendments and other
modifications and supplements thereto, but only to the extent such amendments
and other modifications and supplements are not prohibited by the terms of this
Agreements. References to any entities include their respective permitted
successors and assigns.

                (O) FINANCE LEASE STATUS. Hotel and RoomSystems agree that this
Agreement is intended to be a "financial lease" as defined in Article 2A of the
UNIFORM COMMERCIAL CODE (or any equivalent state law). HOTEL WAIVES ANY AND ALL
RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY ARTICLE 2A.

                (P) COUNTERPARTS. This Agreement may be signed in several
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

         19.    ADDITIONAL DEFINITIONS. The following terms shall have the
                meanings set forth below:

                (A) "CONTRACT YEAR" means each successive twelve-(12) calendar
month period following the Payment Commencement Date.

                (B) "DISPUTED REVENUE" shall mean denial by a Hotel guest that a
sale of Merchandise occurred, which is agreed to by the Hotel. Hotel shall
document each such Disputed Revenue occurrence and, upon request, provide such
documentation to RoomSystems and/or Assignee.

                (C) "FAIR MARKET VALUE" shall mean the in-place value of the
Equipment to the user which would be obtained in an arms-length transaction
between an informed and willing buyer-user under no compulsion to buy and an
informed and willing seller under no compulsion to sell, where the costs of
installation, removal and advertising from the places the Equipment is or will
be located pursuant to this Equipment Schedule during the Term shall not be a
deduction from such value. In no event will the Fair Market Value of the
Equipment be less than the Liquidated Damage Value.

                (D) "INTERIM PAYMENT" means all Lease Payments (as defined in
the Equipment Schedule) from and including the date any Equipment is activated
and operational to but excluding the Payment Commencement Date.

                (E) "LEASE PAYMENT" has the meaning accorded to such term in the
Equipment Schedule.

                (F) "MERCHANDISE" means all goods sold and services provided in
connection with the Equipment.

                (G) "PAYMENTS" means the Interim Payment, the Lease Payments, as
applicable, and all other amounts owed to RoomSystems under this Agreement.

                (H) "PAYMENT COMMENCEMENT DATE" means the first day of the
calendar month immediately following the Acceptance Date.

                (I) "PAYMENT DATE" means the first day of each calendar month
following the Payment Commencement Date.

                (J) "REVENUE" means all sums received by Hotel or RoomSystems
(excluding sales tax actually collected), arising from or in connection with the
sale of Merchandise or usage of the Equipment.

                (K) "SALES REPORTS" means the reports of sales activity of the
Equipment generated by the System's computerized sales tracking functions and
transmitted to Servicer as RoomSystems' agent, by modem from Hotel.

                (L) "SOFTWARE" means the computer software and the related
firmware used for the operation of the System provided by Servicer in connection
with the Equipment.

                (M) "SYSTEM" means the Equipment and all related Software.

         BY SIGNING THIS AGREEMENT: (I) HOTEL ACKNOWLEDGES THAT IT HAS READ AND
UNDERSTANDS ALL TERMS AND CONDITIONS IN THIS AGREEMENT AND ALL ATTACHMENTS AND
EXHIBITS TO THIS AGREEMENT, (II) HOTEL HAS AN UNCONDITIONAL OBLIGATION TO MAKE
ALL PAYMENTS DUE UNDER THIS AGREEMENT, AND THAT HOTEL CANNOT WITHHOLD, SET-OFF
OR REDUCE SUCH PAYMENTS FOR ANY REASON, AND (III) HOTEL IS LEASING THE EQUIPMENT
SOLELY FOR BUSINESS PURPOSES.

         IN WITNESS WHEREOF, RoomSystems and Hotel have caused this Agreement to
be duly executed as of the date first above written.

                                        8
<PAGE>

                                    EXHIBIT 9

ROOMSYSTEMS:                                                    HOTEL:

ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION                   *1
a Nevada corporation                                            a *9 corporation

By:                                      By:
     ------------------------                ------------------------
     Steven L. Sunyich
Its: Chief Executive Officer             Its:
                                             ------------------------

                            EQUIPMENT SCHEDULE NO. I

                                  ATTACHMENT I

                                       to

  HOTEL REVENUE SHARING LEASE AGREEMENT (The "HOTEL AGREEMENT") dated as of *3
            between ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION and
                                       *1.

ROOMSYSTEMS:                                        HOTEL:

RoomSystems International Funding Corporation       *1
3770 Howard Hughes Parkway, Suite 175               *2
Las Vegas, NV 89109

Attention:  General Counsel                         Attention:  General Manager

Equipment Schedule Date: *3
Initial Term:  84 months from Payment Commencement Date.
Expected Delivery Date:  120 days from receipt of documentation
Location of Equipment:  *2
Address for Notices: Same as above
Description of Equipment:

<TABLE>
<CAPTION>
                                                                                                   MANUFACTURER'S
QUANTITY            MANUFACTURER   MODEL/FEATURE                     DESCRIPTION                     LIST PRICE
<S>             <C>                    <C>                 <C>                                     <C>
*4              RoomSystems, Inc.      *5                  *6 Selection Refreshment Center                        $*7
*4              RoomSystems, Inc.      *5                  *6 RoomSafe                                            $*7
1               RoomSystems, Inc.      586-133             RoomManagement Computer System and
                                                           Software Package                                $10,000.00
                                                                                                       ---------------
                                                           TOTAL MANUFACTURER'S PRICE                             $*7
</TABLE>

         1. LEASE PAYMENT: REVENUE SHARING. Hotel shall pay RoomSystems (or its
Assignees) as a monthly lease payment a portion of the Revenue (as defined in
section 19 (J) of the Hotel Agreement) determined in accordance with the revenue
sharing formula contained herein and all other amounts due hereunder or pursuant
to the Hotel Agreement (each such payment a "LEASE PAYMENT"). Revenue collected
from sales from the Equipment will be shared between RoomSystems and Hotel as
follows: (i) the first $0.*8 of Revenue collected (the "THRESHOLD AMOUNT") each
day, shall be divided 90% to RoomSystems and 10% to Hotel; and (ii) all Revenue
in excess of the Threshold Amount collected each day, shall be divided 15% to
RoomSystems and 85% to Hotel. Revenue sharing shall be determined by RoomSystems
pursuant to those certain Sales Reports provided by RoomSystems or Servicer for
each month during the term of this Equipment Schedule on an annualized basis
adjusted quarterly. RoomSystems shall or shall cause Servicer to provide a copy
of the Sales Reports to Hotel monthly.

                                        9
<PAGE>

                                    EXHIBIT 9

         2. HOTEL'S PURCHASE OPTION. Provided no Event of Default has occurred
and is continuing, Hotel shall have the option, exercisable no later than ninety
(90) days after the Acceptance Date, and upon not less than fifteen (15) days
prior written notice to RoomSystems, to purchase all (but not less than all) of
the Equipment from RoomSystems for a price equal to the Fair Market Value (as
defined in section 19 (B) of the Hotel Agreement) of such Equipment or the
Liquidated Damage Value, as defined in Attachment II to the Hotel Agreement,
whichever is greater, and upon such other terms mutually acceptable to
RoomSystems and Hotel.

         3. ROOMSYSTEMS' TERMINATION OPTION. At any time during the term of this
Agreement, RoomSystems shall have the option, exercisable upon three months
written notice to Hotel, to terminate this Agreement if the following conditions
occur:
                (A) If the Equipment in the Hotel does not (i) generate from
sales of merchandise at least $1.00 per room per day for a period of 60 days, or
(ii) negative adjustments made by the Hotel exceed 5% of the total sales.

         4.     SPECIAL TERMS.

                (A) RESTOCKING. Hotel agrees to restock each Placed Item daily
and to ensure that all Placed Items are kept above the minimum restock level
required by Servicer. In the event any Placed Item falls below the minimum
restock level and it is not restocked within twenty-four (24) hours to bring the
Placed Item(s) above the minimum restock level, such Placed Item(s) will be
considered a down room for the guest(s) and the Hotel shall pay RoomSystems a
down room fee ("DOWN ROOM FEE") of $0.*8 per room per day for each day the
Placed Item in the room remains below the minimum restock level.

                (B) DOWN ROOM FEE. The Down Room Fee will also accrue to any
Placed Item for which the Hotel fails to follow the terms and conditions of
Section 5 of the Hotel Agreement.

         5. HOTEL AGREEMENT. This Equipment Schedule No. I is executed pursuant
to the Hotel Agreement. All of the terms and conditions of the Hotel Agreement
are hereby incorporated herein and made a part hereof as if such terms and
conditions were set forth herein. By the execution and delivery of this
Equipment Schedule, the parties hereby reaffirm all of the terms and conditions
of the Hotel Agreement, except to the extent, if any, modified hereby.

         IN WITNESS WHEREOF, the parties hereto have executed this Equipment
Schedule No. I as of the day and year first set forth above.

ROOMSYSTEMS:                                                    HOTEL:

ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION                   *1
a Nevada corporation                                            a *9 corporation

By:                                     By:
     ------------------------                ------------------------
     Steven L. Sunyich
Its: Chief Executive Officer            Its: ------------------------

                                       10
<PAGE>

                                    EXHIBIT 9

                                    EXHIBIT A
                            CERTIFICATE OF ACCEPTANCE
                                       to
       EQUIPMENT SCHEDULE NO. I dated as of *3 (the "EQUIPMENT SCHEDULE")
                                      under
    HOTEL REVENUE SHARING LEASE AGREEMENT ("HOTEL AGREEMENT") dated as of *3
  between ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION a Nevada corporation,
                      ("ROOMSYSTEMS"), and *1, ("HOTEL").

         1. ITEMS OF EQUIPMENT: Hotel hereby certifies that the items of
Equipment referred to below have been delivered to the location referred to
below, inspected by Hotel, found to be in good order and unconditionally
accepted as Placed Items under the Equipment Schedule and the Hotel Agreement,
all on the Acceptance Date referred to below.

         2.     LOCATION OF PLACED ITEMS:  *2

         3.     ACCEPTANCE DATE:

         4. REPRESENTATIONS BY HOTEL: Hotel hereby represents and warrants to
RoomSystems (and all Assignees thereof) that on the Acceptance Date:

            (A) The representations and warranties of Hotel contained in the
Hotel Agreement and the Equipment Schedule are true and correct in all material
respects as though made on and as of the Acceptance Date.

            (B) Hotel has satisfied or complied with all requirements set
forth in the Hotel Agreement and the Equipment Schedule on or prior to the
Acceptance Date.

            (C) No Event of Default under the Hotel Agreement, or the
Equipment Schedule, has occurred and is continuing on the Acceptance Date.

         5. DESCRIPTION OF EQUIPMENT AND MANUFACTURER'S LIST PRICE: As described
in Equipment Schedule No. I.

         IN WITNESS WHEREOF, the parties hereto have executed this "Certificate
of Acceptance" as of the day of ___________________, 1998.

ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION                   *1
a Nevada corporation                                            a *9 corporation

By:                                     By:
     ------------------------                ------------------------
     Steven L. Sunyich
Its: Chief Executive Officer            Its: ------------------------

                                       11
<PAGE>

                                    EXHIBIT 9

                             LIQUIDATED DAMAGE VELUE

                                  ATTACHMENT II

                                       to

          HOTEL REVENUE SHARING LEASE AGREEMENT dated as of *3 between
               ROOMSYSTEMS INTERNATIONAL FUNDING CORPORATION and
                                       *1.

The liquidated damage value ("LIQUIDATED DAMAGE VALUE") of each Placed Item
shall equal the Manufacturer's List Price (as defined in the relevant Equipment
Schedule) multiplied by the Liquidated Damage Value Percentage set forth below
for the contract year in which the Event of Default or other event of
determination occurs:

<TABLE>
<CAPTION>

              CONTRACT                       LIQUIDATED DAMAGE
                YEAR                         VALUE PERCENTAGE
<S>                                          <C>
               1 - 2                              105.00%

                 3                                97.50%

                 4                                81.00%

                 5                                64.00%

                 6                                55.00%

                 7                                37.50%
</TABLE>

                                                        12
<PAGE>

                                   EXHIBIT 10
              HOTEL INSTALLATION MAINTENANCE AND LICENSE AGREEMENT

For each of the Participating Properties that elects placement of the Products
pursuant to a revenue sharing arrangement, lease or sale, the terms and
conditions of the "Hotel Installation Maintenance and License Agreement" which
comprise this Exhibit to the Agreement shall govern.

Each of the Participating Properties shall execute a Hotel Installation
Maintenance and License Agreement in the form attached hereto, and shall execute
and complete all documents referenced therein.

                                   EXHIBIT 10
              HOTEL INSTALLATION, MAINTENANCE AND LICENSE AGREEMENT

                                       to

              HOTEL REVENUE SHARING LEASE AGREEMENT dated as of *3
                          Between ROOMSYSTEMS, INC. and
                                       *1.

         THIS HOTEL INSTALLATION, MAINTENANCE AND LICENSE AGREEMENT (this
"MAINTENANCE AGREEMENT") is entered into as of *3, by and between ROOMSYSTEMS,
INC., a Nevada corporation, whose address is 390 North 3050 East, St. George, UT
84790 hereinafter referred to as ("RSI"), and *1, a *9 corporation hereinafter
referred to as ("HOTEL") whose address is *2.

         WHEREAS, Hotel has entered into a Hotel Revenue Sharing Lease Agreement
dated as of *3 ("HOTEL Agreement") with RoomSystems International Funding
Corporation, a Nevada corporation ("ROOMSYSTEMS") which, among other things,
provides financing of certain equipment to store valuables and for the
refrigeration and dispensing of beverage and snack food items within the guest
room of Hotel ("EQUIPMENT" as used in this Maintenance Agreement also includes
"Software") and which Equipment automatically records the sales and usage of
Merchandise in the Hotel; and

         WHEREAS, the Hotel Agreement, Equipment Schedule No. I dated as of *3
between RoomSystems and Hotel and all other Equipment Schedules issued from
time-to-time pursuant to the Hotel Agreement (collectively the "DOCUMENTS")
require Hotel to install the Equipment and enter into a maintenance agreement;
and

         WHEREAS, Hotel is satisfying its installation and maintenance
obligations under the Documents by entering into this Maintenance Agreement with
RSi;

         NOW, THEREFORE, in consideration of the premises and the terms,
covenants, and conditions hereinafter contained, the parties hereto agree as
follows:

         1.     DELIVERY AND INSTALLATION.

                (A) The Equipment (such term and all capitalized terms not
otherwise defined in this Maintenance Agreement shall have the meanings ascribed
to such terms in the Documents) shall be programmed by RSi, placed in the guest
rooms by Hotel and installed in the Premises by RSi.

                (B) In connection with the delivery and installation of the
Equipment, Hotel shall: (i) provide access to representatives of RSi to all
areas of the Premises necessary or appropriate in connection with the
installation of the Equipment; (ii) permit representatives of RSi to install
such wires, and similar items throughout the Premises as RSi deems necessary for
the installation; (iii) provide room and board on the Premises to employees or
representatives of RSi during the installation period of up to seven (7) days
for each one-hundred (100) Placed Items installed, such room and board (in
Hotel's employee cafeteria, if available) not to include long distance phone
calls, use of personal laundry, valet, in-room movies, gift shop purchases,
alcoholic beverages, or any other charges other than room or board; (iv)
promptly, upon delivery of the Equipment to the Premises, unload all such items
and place them in a storage area. In addition, Hotel shall supply adequate staff
to stock and place the Equipment in the guest rooms under the direction of RSi's
employees. If Hotel desires RSi to provide the services, RSi will hire, at
Hotel's expense, temporary labor, and (v) pay for an "interface" between the
Equipment and Hotel's property management system located on the Premises.

                (C) If Hotel desires any Placed Item to be installed in any room
in a location where there are no grounded outlets within six feet (6'), and a
MATV connection or RJ-11 direct-connect socket within twelve feet (12') of the
location of any Placed Item, such Placed Item shall be relocated to a location
that meets the foregoing requirements, or Hotel shall remedy the problem by
providing adequate cords or installating new outlets, connections or sockets as
applicable, at Hotel's own expense. Such work shall be performed in accordance
with the applicable industry standards.

                (D) Prior to RSi's obligation to install the System, Hotel shall
provide all necessary requirements for the installation of the System, including
but not limited to the following: (i) an adequate site for the Placed Items in a
dust free location in an air conditioned environment; (ii) two (2) telephone
extensions and a telephone set, at the sole expense of Hotel, adjacent to the
modem supplied by RSi hereunder for the sole use of RSi to monitor the
Equipment; (iii) if available, internet access through hotels provider of
choice; (iv) adequate ventilation for each Placed Item; and (v) a fixed grounded
electrical outlet to be used for each Placed Item in each room.

                                        1
<PAGE>

                                   EXHIBIT 10

         2.     ACCEPTANCE.

                (A) The installation of the Equipment (or any stage thereof),
shall be deemed to be complete when the Equipment (or any portion thereof
designated to be installed in any stage) is operational. Upon completion of the
installation, RSi will provide written notice of such completion ("NOTICE OF
COMPLETION") to Hotel. Immediately upon receipt of the Notice of Completion,
Hotel shall inspect the Equipment and, if the Equipment is in good working
order, Hotel shall execute and deliver to RoomSystems the certificate of
acceptance in the form of Exhibit A to the Equipment Schedule (the
"CERTIFICATE"), dated as of the date of such inspection, or Hotel shall provide
written notice to RSi specifying and describing in detail each item with respect
to which it is claiming that the installation is not complete. If the Hotel
fails to give such written notice or to execute the Certificate within five (5)
days following the Notice of Completion, it will be conclusively presumed that
the Equipment is in good working order and that the Equipment has been
irrevocably accepted by the Hotel as if the Hotel had executed the Certificate,
and the Hotel hereby agrees to be bound by the terms of the Certificate.

                (B) If Hotel fails to promptly comply with any of its
obligations in sections 1 and 2 hereof, Hotel shall pay to RSi all costs and
expenses incurred by RSi with respect to the delay occasioned by such failure,
including, without limitation, storage, shipping costs, and per diem charges
(including lodging, meals and travel) for RSi's representatives.

                (C) If RSi shall be unable to install the Equipment and make the
Equipment operational after reasonable efforts to do so other than as a result
of Hotel's failure to comply with its obligations under this Maintenance
Agreement and the Hotel Agreement, RSi shall so notify Hotel and shall remove
all of the Equipment from the Premises and this Maintenance Agreement "and all
right and obligations of the parties hereunder" shall terminate. Hotel and the
owner of the Premises shall provide to RSi and its agents and representatives
access to the Premises and facilities of the Hotel for such purposes for a
reasonable time and at any reasonable time to enable RSi to remove the Equipment
from the Premises.

         3. TRAINING. RSi shall provide basic training on site at the time of
installation in the operation of the Equipment for Hotel's personnel involved in
operation and maintenance of the Equipment. The training will be conducted at
the Premises. RSi will provide up to three (3) days of training without cost to
Hotel. Hotel will provide room and at no cost to RSi personnel. If additional
training is required, RSi will provide it at no charge provided it is at the
time of a scheduled visit as set forth in section 4 below. If additional
training is required by Hotel at a time other than during a scheduled visit, RSi
will perform the training at RSi's then customary charge for such service.

         4. SERVICE. RSi and Hotel, as applicable, will each at their own
expense assist in co-maintaining the Equipment as follows:

                (A) RSi will at its cost provide twenty-four (24) hour telephone
service and maintenance to help maintain and keep the Equipment in normal
working order during the term of this Maintenance Agreement. RSi shall provide
all necessary parts to service the Equipment for the term of this Maintenance
Agreement.

                (B) Hotel shall provide maintenance personnel capable of
removing and replacing defective parts to the Equipment in a timely manner and
provide such service and maintenance that are necessitated by normal usage. RSi
may, at its option, elect to replace rather than repair any of the Equipment it
is obligated to maintain hereunder.

                (C) The Hotel shall be responsible for purchasing and providing
for use with the Equipment all consumable items, including printed menus,
printer paper, diskettes and printer ribbons.

                (D) The Hotel shall provide at no expense to RSi on an as needed
basis (generally semi-annually) room and board (as described in Section 1) for
the training, service, and maintenance crew that will make follow up visits to
the Premises.

                (E) RSi will monitor the operations of the Placed Items, and
will make semi-annual visits to Hotel, to provide Hotel retraining,
merchandising recommendations, operational recommendations and software support.

         5.     WARRANTIES, DISCLAIMER AND LIMITATION OF REMEDIES.

                (A) RSi warrants that the Equipment will be installed in a
workmanlike manner and that the Equipment will be free from defects in
workmanship and materials for a period of three months from the Acceptance Date.

                (B) Except as expressly provided herein, RSi expressly disclaims
all other warranties with respect to the Equipment, express and implied.

                (C) This limited express warranty provided herein is for the
benefit of Hotel only and is not for the benefit of any other person.

                (D) The limited express warranty provided herein is conditioned
upon proper use of the Equipment and Software (as defined in section19 (K) of
the Hotel Agreement). No warranty shall apply to any item of Equipment or the
Software, (i) which has been modified in any respect without the express written
consent of RSi, (ii) which has been installed, serviced or repaired by or on
behalf of Hotel by any person other than the manufacturer, the manufacturer's
authorized representative or an authorized agent of RSi, (iii) which has been
removed from the Premises, (iv) which has

                                        2
<PAGE>

                                   EXHIBIT 10

been subject to unusual physical or electrical stress, or (v) which has been
damaged by reason of accident, neglect or misuse.

                (E) In the event that any item of Equipment or the Software
shall be defective in workmanship of material within the term of this
Maintenance Agreement, RSi shall replace the item of Equipment with a new or
reconditioned component or components thereof, or make such modifications to the
Software in order to return it to good working order, subject to the following
terms and conditions: (i) Hotel shall give notice to RSi of the defect within
the term of this Maintenance Agreement; (ii) Hotel shall ship any defective part
or component to such location as RSi shall designate at Hotel's expense; (iii)
RSi may, at its sole discretion, provide a comparable substitute part or
component for any defective or failed part or component, which shall fully
discharge RSi's obligation to repair or replace such defective items; (iv) Hotel
is responsible for installing components on the Equipment and sending and
receiving the parts as necessary to and from RSi.

         6.     SOFTWARE LICENSE AGREEMENT.

                (A) Subject to and on the terms and conditions hereof and for
the term of this Maintenance Agreement, RSi grants to Hotel a non-transferable
and non-exclusive license (the "LICENSE") to use the Software as installed by
RSi on the Equipment. The Software may be used solely by Hotel for the purpose
and subject to the limitations provided herein and Hotel shall not be entitled
to, (i) give, deliver, provide access to or authorize the use of the Software by
any person other than authorized employees of Hotel or (ii) give, sell, assign
or grant any rights with respect to the Software to any person. Hotel may assign
the License, subject to the prior written consent or RSi which shall not
unreasonably be withheld, to a person, firm, company, partnership or corporation
which shall succeed to the business of Hotel by means of merger, consolidation
or acquisition of substantially all of the property and assets of Hotel.

                (B) RSi retains exclusive title to, and ownership in, the
Software, as installed on the Equipment or otherwise, and all copies thereof
regardless of the form or media in or on which the original or any copies may
exist. All rights with respect to the Software not expressly granted to Hotel
hereunder are reserved to RSi. The License does not and shall not be construed
to give Hotel any right, claim, title to or ownership in, the Software, any
trade secrets, patent, copyright, trade name, trademark or other proprietary
right owned, applied for or subsequently acquired by RSi.

                (C) Hotel agrees that the Software will be used by Hotel solely
at the Premises and solely for the operation of the Equipment. Hotel shall not
modify, adapt, translate, reverse engineer, decompile or disassemble the
Software or create works based on the Software without the express prior written
consent of RSi. Any modification, enhancement, change in or addition to the
Software whether made by RSi, Hotel or otherwise shall be and remain the sole
and exclusive property of RSi.

                (D) Hotel agrees that the Software and related materials
provided by RSi contain proprietary information and trade secrets of RSi. Hotel
agrees that it will authorize and permit the use by its employees of the
Software and the confidential information therein solely for the purpose and in
accordance with the provisions hereof and will not disclose, or authorize or
permit disclosure by its employees of any confidential information to any person
other than authorized employees of Hotel.

                (E) The License granted herein shall be perpetual for the
version at installation if either the Equipment is purchased or leased. If the
Equipment is leased and not purchased at the end of the lease the License is
canceled. All new versions and support will be subject to the current purchase
price or fee at the time of installation and terminating on the date of
termination of this Maintenance Agreement.

                (F) RSi represents and warrants that it has full legal right and
authority to grant the license to use the Software granted hereunder. In the
event any party makes any claim that the lease, use and/or purchase of the
Equipment or Software in accordance with the terms of this Maintenance Agreement
or the Hotel Agreement violates any patent, copyright, trademark, trade secret,
or other intellectual property right ("INTELLECTUAL PROPERTY RIGHT") of such
person, RSi will immediately (1) acquire the right for Hotel to continue to use
such Software and Equipment without violating any Intellectual Property Right,
or (2) modify the Software and/or Equipment in such a manner that it does not
violate any Intellectual Property Right and continues to perform in at least an
equivalent manner. RSi agrees to indemnify, hold harmless and defend the Hotel
Indemnified Parties from and against any and all claims, demands, actions,
suits, proceedings, costs, expenses, damages and liabilities, at law or in
equity, including court costs and reasonable attorneys' fees, related to or
arising from any claim or assertion that the Equipment or Software violates any
Intellectual Property Rights.

         7. SERVICE AND LICENSE FEES. Hotel shall pay to RSi a fee for the
services, License and materials provided by RSi pursuant to this Maintenance
Agreement in the amount of $0.08 per day per Placed Item. These payments may be
increased annually by a cost of living adjustment "COLA," as established by the
Consumer Price Index, U.S. City Average, "All Items." These payments will be
made quarterly in advance. The total quarterly

                                        3
<PAGE>

                                   EXHIBIT 10

payment will be calculated by multiplying the number of Placed Items times $0.08
times 91.25. Hotel shall not have to make this payment so long as any Equipment
is subject to the revenue sharing arrangement of the Hotel Agreement and so long
as no Event of Default exists and is continuing under the Hotel Agreement.

         8. TERM OF MAINTENANCE AGREEMENT. This Maintenance Agreement shall
become effective on the date of execution and shall remain in force and effect
until the term of all of the Documents has expired.

         9. LIABILITY FOR DAMAGE TO THE PRODUCT. Hotel shall be responsible for
any damage to the Equipment which is caused by intentional conduct of Hotel, its
employees, agents, or representatives or Hotel guests while the Equipment is in
Hotel's possession. Hotel shall not be responsible for any damages which are due
to ordinary wear and tear, which Hotel could not reasonably prevent, or damage
caused by the intentional or negligent acts of RSi.

         10. EXCLUSIVE DEALING. Except for warranty work performed by
manufacturer or its authorized representatives, during the term of this
Maintenance Agreement, RSi shall have the exclusive right to install and service
the Equipment in Hotel's guest rooms. Hotel shall not install any other products
similar to the Equipment in Hotel's guest rooms during this period without the
prior written consent of RSi.

         11.    INDEMNITY.

                (A) Hotel agrees to indemnify, hold harmless and defend, RSi and
Servicer and any of their officers, directors or employees and their successors
and assigns (all such parties the "INDEMNIFIED PARTIES") from and against any
and all claims, demands, actions, suits, proceedings, costs, expenses, damages
and liabilities, at law or in equity, whether based on a theory of contract,
negligence, strict liability or otherwise, including reasonable attorneys' fees
related thereto, arising out of, connected with, or resulting from, this
Maintenance Agreement, including without limitation, selection, purchase,
delivery, possession, condition, use, lease, operation or return of the
Equipment. Hotel's obligations hereunder will survive the expiration of this
Agreement with respect to acts or events occurring or alleged to have occurred
prior to the return of the Equipment to RoomSystems at the end of the Term
described in the Hotel Agreement.

                (B) RSi agrees to indemnify, hold harmless and defend Hotel, the
company managing the Hotel and any of their officers, directors, partners,
employees and agents, and each of their successors and assignees (all such
parties the "HOTEL INDEMNIFIED PARTIES") from and against any and all claims,
demands, actions, suits, proceedings, costs, expenses, damages and liabilities,
at law or in equity, including court costs and reasonable attorneys' fees
related thereto, arising out of, connected with, or resulting from, any injury
to persons (including death) or damage to property (including the Equipment)
directly or indirectly due to the negligence, act or omission of RSi, its
employees or agents, except to the extent a claim has arisen from such Hotel
Indemnified Party's own negligence, act or omission. RSi's obligations hereunder
will survive the expiration of this Agreement with respect to acts or events
occurring or alleged to have occurred prior to the removal of the Equipment by
RSi or its agent at the end of the term of the Hotel Agreement.

         12. NOTICE. All notice or other communications required or permitted to
be given hereunder shall be in writing and shall be (i) delivered personally,
(ii) mailed, postage prepaid, or (iii) faxed and a copy mailed to the parties as
follows:

    If to RSi:      RoomSystems, Inc. 390 North 3050 East, St. George, UT 84790
                    Facsimile 435-628-8611
    If to Hotel:    As set forth in the applicable Equipment Schedule.
    With a copy to: RoomSystems International Funding Corporation,
                    3770 Howard Hughes Parkway, Suite 175, Las Vegas, NV 89109

         13. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions
are an integral part of this Maintenance Agreement:

                (A) BINDING OBLIGATION. This Maintenance Agreement shall inure
to the benefit of and constitute a binding obligation upon the contracting
parties, their respective heirs, legal representatives and permitted assigns.

                (B) MODIFICATIONS. This Maintenance Agreement may not be
modified except by an instrument in writing signed by the parties hereto.

                (C) HEADINGS. The headings used in this Maintenance Agreement
are for reference purposes only and shall not be deemed to limit or affect in
any way, the meaning or interpretation of any of the terms or provisions of this
Maintenance Agreement.

                (D) SEVERABILITY. The provisions of this Maintenance Agreement
are severable, and should any provision hereof be void, voidable, unenforceable,
or invalid, such a void, voidable, unenforceable or invalid provision shall not
affect any other portion or provision of this Maintenance Agreement.

                (E) WAIVER. Any waiver by any party hereto of any breach of this
Maintenance Agreement of any kind or character whatsoever by the other party,
whether such waiver is direct or implied, shall not be construed as a continuing
waiver or consent to any subsequent breach of this Maintenance Agreement on the
part of the other party.

                                        4
<PAGE>

                                   EXHIBIT 10

                (F) APPLICABLE LAW, JURISDICTION AND VENUE. This Agreement shall
be governed by, and construed in accordance with, the laws of the state of
Nevada, without regard to principles of conflicts of law. RSi and Hotel hereby
consent to jurisdiction and venue in any state or federal court in the state of
Nevada and hereby waive any objections that jurisdiction or venue in any such
court is not proper.

                (G) ATTORNEYS' FEES. In the event any action or proceedings is
brought by any party under this Maintenance Agreement, the prevailing party
shall be entitled to recover reasonable attorneys' fees and costs of court from
the non-prevailing party.

                (H) COUNTERPARTS. This Maintenance Agreement may be executed
simultaneously in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

                (I) TERMS. Any term included in this Maintenance Agreement that
is defined in the Hotel Agreement shall have the meaning set forth in the Hotel
Agreement and; any term defined in this Maintenance Agreement included in the
Hotel Agreement shall have the meaning set forth in this Maintenance Agreement.

                (J) CONFIDENTIALITY. The terms of this Maintenance Agreement
shall be confidential, and neither party shall reveal to any person, hotel, or
other entity the terms hereof and no copies shall be made of this Maintenance
Agreement except for the parties' confidential records and except as necessary
to enforce its terms, without the prior written consent of the other party.

                (K) SECURITY INTEREST. No security interest in this Agreement or
any Equipment Schedule may be granted by Hotel without RSi's consent.

                (L) QUIET ENJOYMENT. Provided that no Event of Default has
occurred or is continuing hereunder RSi, Assignee or their agents or assigns
shall not interfere with Hotel's right of quiet enjoyment and use of the
Equipment.

         IN WITNESS THEREOF, the parties hereto have executed this Maintenance
Agreement the day and the year first named above.

RSI:                             HOTEL:

ROOMSYSTEMS, INC.                *1
a Nevada corporation             a *9 corporation

By:                              By:
      ------------------------        ------------------------
      Steven L. Sunyich
Its:  Chief Executive Officer    Its: ------------------------

                                        5<PAGE>

                                    EXHIBIT A

                             SUBSCRIPTION AGREEMENT

Ladies and Gentlemen:

           1. PURCHASE. Subject to the terms and conditions hereof, the
undersigned hereby irrevocably subscribes to purchase 333,334 (333,334) shares
of 6% Series B Convertible Preferred Stock (the "Shares" of "Securities") of
RoomSystems, Inc., a Nevada corporation (the "Company") at a price of $3.00 per
Share, for an aggregate purchase price of One Million dollars ($1,000,000). All
dividends on the Shares are payable in the form of common stock ("Common
Stock"). The Shares are automatically convertible into Common Stock of the
Company upon the closing of the Company's initial public offering at the lesser
of (i) $3.00 per share or (ii) 50% of the initial public offering price per
share; provided, however, in the event the Company does not close its initial
public offering by June 30, 2000, each Share shall automatically convert into
1.5 Shares of Common Stock on July 1, 2000.

         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 C to
these Subscription Documents, the Offering 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 OFFERING MATERIALS. By execution of this Agreement, the
undersigned acknowledges having read, understood and agreed to each and every
provision contained herein and in (i) the Confidential Private Placement
Memorandum (the "Memorandum"); (ii) the Risk Factors section included in the
Memorandum; and (iii) the definition of an "Accredited Investor" under the Act,
attached hereto as Exhibit "1" (all collectively referred to herein as the
"Offering Materials"). All Offering Materials and exhibits thereto are hereby
incorporated in full in this Agreement 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 they
are an "Accredited Investor" as defined in Regulation D promulgated under the
Act and set forth on Exhibit "1" hereto. The specific category or categories of
Accredited Investor applicable to the undersigned are as follows:

                                       A-1
<PAGE>

(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.

C. _________ 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 as 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 Offering Materials
and has carefully reviewed each and every provision of the Offering Materials.

                  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 was in any way
inconsistent with any information contained in the Offering Materials.

                  3.5 The undersigned recognizes that an investment in the
Securities involves special risks, including those in the "Risk Factors" set
forth in the Memorandum and incorporated herein by this reference.

                  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.

                                      A-2
<PAGE>

                  3.7 The undersigned is not relying on the Company or the
information in the Offering A-2

Materials for advice with respect to tax considerations, the suitability of
their 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 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, and the
undersigned understands and agrees that the Company is not obligated to register
or qualify the Shares or to assist the undersigned in complying with any
exemption from such registration or qualification.

                  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 Share Holder in the Company; and such
entity and the undersigned signatory hereto for such Share Holder further
represents and warrants that such signatory has been duly authorized by the
prospective Share Holder to execute this Agreement.

                  3.10 If the prospective Share Holder 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 the Company is closely held
and that there is no public market for resale of the Shares. The undersigned
understands that it is possible that no market will ever develop. As a
consequence, the undersigned understands that the undersigned may not be able to
liquidate the undersigned's 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.

                                      A-3
<PAGE>

                  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 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:

                         (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" 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.

                                      A-4
<PAGE>

                  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 their 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 Shares
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. THEY 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 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 as set forth on Signature Page No. 2 to this Agreement.

                                      A-5
<PAGE>

           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 to be paid by check made payable to
"RoomSystems, Inc. Escrow 152032." Any checks received that are not made payable
as described above shall be returned to the appropriate Investor. 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 an equity 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.

           6. PAYMENT OF DIVIDENDS. All investors in the Offering who desire to
have his, her or its cash dividend payment (if applicable) forwarded to an
account of his, her or its choice, shall provide the specifics of such account
below:

                  A.   Name of Investment or Commercial Bank ___________________
                  B.   Address _________________________________________________
                  C.   Name of Account _________________________________________
                  D.   Account Number___________________________________________
                  E.   Custodian or Broker Overseeing Account___________________
                  F.   Phone Number of Custodian or Broker______________________

         7. REGISTERED NAME FOR THE SHARES. The certificate(s) representing the
Shares should be registered in the following name(s) and denomination(s):

                           NAME                         NUMBER OF SHARES

         ASH Capital, LLC                                    333,334
--------------------------------------------------------------------------------

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

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

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

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                       A-6
<PAGE>

SIGNATURE FOR INDIVIDUAL INVESTOR:

IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement as
of this ______ day of ________________, 1999.

-------------------------------------------------------------
(Signature)

-------------------------------------------------------------
(Print Name)

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

Address:
         ----------------------------------------------------

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

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

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

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

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

Address:
         ----------------------------------------------------

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

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

IF JOINT OWNERSHIP, CHECK ONE:

                       _________        Husband and Wife, as Community Property

                       _________        Joint Tenants with Right of Survivorship

                       _________        Tenants-in-Common

Share:   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 SUBSCRIPTION AGREEMENT]

                                       A-7
<PAGE>

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

IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement as
of this 19th day of August, 1999.

Ash Capital, LLC
--------------------------------------------------------------------------
(Print Name of Share Holder)/

/s/ James C. Savas
--------------------------------------------------------------------------
(Signature)

James C. Savas
--------------------------------------------------------------------------
(Print Name of Person Signing)

Manager
--------------------------------------------------------------------------
(Title)

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 this 19th day of August, 1999.

RoomSystems, Inc.,
a Nevada corporation

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

                [SIGNATURE PAGE NO. 2 TO SUBSCRIPTION AGREEMENT]

                                       A-8
<PAGE>

                                    EXHIBIT B

                           CERTIFICATE OF DESIGNATION
                     PREFERENCES, RIGHTS AND LIMITATIONS OF
                           SERIES B PREFERRED STOCK OF
                                ROOMSYSTEMS, INC.

         RoomSystems, Inc. (the "CORPORATION"), a corporation organized and
existing under the laws of the State of Nevada, does hereby certify that:

         Pursuant to authority vested in the Board of Directors (the "BOARD") by
Article IV of the Corporation's Certificate of Incorporation, as amended, the
Board has duly adopted the following recitals and resolutions:

         WHEREAS, this corporation is authorized by its Certificate of
Incorporation, as amended, to issue 5,000,000 shares of Preferred Stock,
issuable from time to time in one or more series; and

         WHEREAS, this Board is authorized to determine the rights, preferences,
privileges, and restrictions granted to or imposed upon any such series, to fix
the number of shares constituting such series, and to determine the designation
thereof, or any of them; and

         WHEREAS, the Board desires, pursuant to its authority as aforesaid, to
issue and to determine and fix the rights, preferences, privileges and
restrictions relating to the second series of said Preferred Stock, and the
number of shares constituting and the designation of said series;

         NOW, THEREFORE, BE IT RESOLVED, that the Board hereby fixes and
determines the designation of, the number of shares constituting, and the
rights, preferences, privileges and restrictions relating to the second series
of Preferred Stock, as follows:

         1. DESIGNATION. The series of Preferred Stock provided for by
this resolution shall be designated "6% Series B Convertible Preferred Stock"
(hereafter referred to as "SERIES B STOCK").

         2. AUTHORIZATION. The number of authorized shares constituting the
Series B Stock shall be 3,000,000 shares.

         3. RANK. The Series B Stock shall, with respect to dividend
rights, rights on redemption, rights on conversion and rights on liquidation,
winding up and dissolution, rank senior to all common stock, warrants and
options to purchase Common Stock established by the Board or the Stockholders
(all of such equity securities of the Corporation to which the Series B Stock
ranks senior are collectively referred to herein as "JUNIOR Stock"). Series B
Stock shall rank with Series A Preferred Stock on a pari passu basis.

         4. DIVIDENDS. The holders of Series B Stock are entitled to an
annual cumulative dividend of six percent (6%), payable in the form of Common
Stock based upon the Conversion Price, defined hereinafter, and subject to the
Corporation's ability to pay such dividends as limited by Nevada law.

         5. LIQUIDATION PREFERENCE. In the event of a voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, the
holders of Series B Stock shall be entitled to receive,

                                       1
<PAGE>

out of the assets of the Corporation, whether those assets are capital or
surplus of any nature, an amount equal to $10.00 per share of Series B Stock,
plus all accrued and unpaid dividends on the date of that distribution, and no
more, before any payment shall be made or any assets distributed to the holders
of Junior Stock, and the remaining assets shall be distributed ratably to the
holders of Junior Stock. If upon liquidation, dissolution, or winding up of the
Corporation the assets thus distributed among the holders of Series B Stock
shall be insufficient to permit the payment to those stockholders of the full
preferential amounts, then the entire assets of the Corporation to be
distributed shall be distributed ratably among the holders of Series B Stock.

         A consolidation or merger of the Corporation with or into any other
corporation or corporations, or a sale of all or substantially all of the assets
of the Corporation, shall not be deemed to be a liquidation, dissolution or
winding up, within the meaning of this paragraph.

         6. VOTING RIGHTS. Only shares of the Corporation's common stock shall
entitle the holder thereof to vote on matters requiring approval of the
stockholders of the Corporation. Series B Stock shall not, except as otherwise
may be provided by law or except as such matters affecting the rights of the
Series B Stock holders, be entitled to vote on the election of directors or any
other matter. Notwithstanding the foregoing, if the Corporation has not
completed an Initial Public Offering ("IPO") on or before September 28, 2000
(the "EFFECTIVE VOTING DATE"), holders of the Series B Stock shall be accorded
voting rights. Each share of Series B Stock shall be entitled to one (1) vote
after the Effective Voting Date.

         7. CONVERSION RIGHTS.

                  (a) Each holder of Series B Stock shall automatically,
following the earlier of (i) the effective date of the Corporation's IPO, if the
same is completed on or before September 28, 2000, upon surrender of the
certificates therefor, convert all of such holder's Series B Stock into fully
paid and non-assessable shares of Common Stock (the "COMMON STOCK") of the
Corporation, at the rate of the lesser of $3.00 per share or fifty percent (50%)
of the IPO price per share (the "CONVERSION PRICE"); or in other words, the
Series B Stock shall be converted into Common Stock on a 1:1 basis, provided
that the IPO price (the "IPO PRICE") is $6 per share. If the IPO Price is less
than $6 per share, the conversion rate shall be $6 divided by the IPO Price.
However, if the Corporation has filed a registration for an IPO by March 31,
2000, but the same is not completed by June 30, 2000, because of conditions or
circumstances outside the control of the Corporation, then the Corporation shall
have an additional ninety (90) days to complete its IPO. If the IPO is not
completed by September 28, 2000, each holder of Series B Stock shall have the
option to convert such shares to

Common Stock or remain a Series B Stock holder. At any time after September 28,
2000, if the Corporation has not completed its IPO, the conversion of each share
of Series B Stock shall be converted into one and one half (1.5) shares of the
Corporation's Common Stock, irrespective of the time such post September 28,
2000 conversion.

         The conversion of Series B Stock described herein, whether it is
automatic or elective shall be exercised by surrendering for such purpose to the
Corporation, at any place where the Corporation shall maintain a transfer agent
for its Common Stock or Series B Stock, certificates representing the shares to
be converted, duly endorsed in blank or accompanied by proper instruments of
transfer, and at the time of such surrender, the person exercising such option
to convert shall be deemed to be the holder of record of Common Stock issuable
on such conversion, notwithstanding that the share register of the Corporation
shall then be closed.

                                       2
<PAGE>

                  (b) The number of shares of Common Stock into which Series B
         Stock may be converted shall be subject to adjustment from time to time
         in certain cases as follows:

                         (i) The Corporation shall be entitled to make such
further adjustments as it considers advisable in order that any event treated
for federal income tax purposes as a dividend or other distribution of stock or
stock rights will not be taxable, so far as practicable, to the recipient of
such dividends or distributions.

                  (c) Whenever the amount of Common Stock deliverable upon the
conversion of Series B Stock shall be adjusted pursuant to the provisions
hereof, the Corporation shall forthwith file, at its principal executive office
and with any transfer agent or agents for Series B Stock and for its Common
Stock, a statement stating the adjusted amount of its Common Stock or other
securities deliverable per Series B Stock and setting forth in reasonable detail
the method of calculation and the facts requiring such adjustment and upon which
such calculation is based. Each adjustment shall remain in effect until a
subsequent adjustment hereunder is required.

                  (d) The Corporation shall at all times reserve and keep
available, out of its authorized but unissued shares of Common Stock, the full
number of shares of Common Stock deliverable upon the conversion of all the then
outstanding shares of Series B Stock and shall take all such action and obtain
all such permits or orders as may be necessary to enable the Corporation
lawfully to issue such shares of Common Stock upon the conversion of shares of
Series B Stock.

         (e) No fractional shares of Common Stock shall be issued upon
         conversion of Series B Stock. In lieu of any fractional shares to which
         the holder would otherwise be entitled, the Corporation shall pay cash
         equal to the product of such fraction multiplied by the fair market
         value of one share of the Corporation's Common Stock on the date of
         conversion, as determined in good faith by the Board.

         8. EXCLUSION OF OTHER RIGHTS. Except as herein provided or as may
otherwise be required by law, the shares of Series B Stock shall not have any
preferences or relative, participating, optional or other special rights other
than those specifically set forth in this resolution and in the Certificate of
Incorporation, as amended from time to time, of the Corporation.

         IN WITNESS WHEREOF, RoomSystems, Inc. has caused this Certificate of
Designation to be signed by its President and Secretary this 24th day of August,
1999.

                                 ROOMSYSTEM, INC.

                                 /s/ Steven L. Sunyich
                                 ------------------------------
                                 STEVEN L. SUNYICH
                                 CHIEF EXECUTIVE OFFICER, PRESIDENT

                                       3
<PAGE>

                                    EXHIBIT C

                            INDEMNIFICATION AGREEMENT

               See Exhibit 10.07 to Form SB-2 filed April 14, 2000

<PAGE>

                                    EXHIBIT D

               ROOMSYSTEMS, INC. SHAREHOLDERS' AGREEMENT AND PROXY

               See Exhibit 10.08 to Form SB-2 filed April 14, 2000

<PAGE>

                                   EXHIBIT E-1

                                ROOMSYSTEMS, INC.

                         OPTION TO PURCHASE COMMON STOCK

NEITHER THIS OPTION NOR THE UNDERLYING COMMON SHARES HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933. THE CORPORATION WILL NOT TRANSFER THIS OPTION OR THE
UNDERLYING COMMON SHARES UNLESS (i) THERE IS AN EFFECTIVE REGISTRATION COVERING
SUCH OPTION OR SUCH SHARES, AS THE CASE MAY BE, UNDER THE SECURITIES ACT OF 1933
AND APPLICABLE STATES SECURITIES LAWS, (ii) IT FIRST RECEIVES A LETTER FROM AN
ATTORNEY, ACCEPTABLE TO THE BOARD OF DIRECTORS OR ITS AGENTS, STATING THAT IN
THE OPINION OF THE ATTORNEY THE PROPOSED TRANSFER IS EXEMPT FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933 AND UNDER ALL APPLICABLE STATE SECURITIES LAWS,
OR (iii) THE TRANSFER IS MADE PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF
1933.

<PAGE>

                        OPTION TO PURCHASE COMMON SHARES

                                       OF

                                ROOMSYSTEMS, INC.

         THIS IS TO CERTIFY THAT, FOR VALUE RECEIVED, Ash Capital, LLC or its
assigns ("OPTIONEE") are together entitled to purchase, subject to the
provisions of this Option, from RoomSystems, Inc., a Nevada corporation
("CORPORATION"), at a price per Share described more particularly on Exhibit
"A," attached hereto and incorporated herein by reference, up to Ninety-three
Thousand Seven Hundred Fifty (93,750) common shares of the Corporation (the
"SHARES") at any time during the period commencing October 1, 1999 and
terminating at 5:00 p.m., St. George, Utah, two (2) years subsequent to the
declaration of effectiveness of the Corporation's registration statement for an
"Initial Public Offering" ("IPO"). The Shares deliverable upon the exercise of
this Option are hereinafter sometimes referred to as the "UNDERLYING SHARES" and
the exercise price of this Option to purchase one Share is hereinafter sometimes
referred to as the "EXERCISE PRICE." The Shares deliverable upon the exercise of
the Options are hereinafter sometimes referred to as the "OPTION SHARES."

         1. EXERCISE OF OPTION. Subject to the provisions hereof, this Option
may be exercised as described herein, during the period commencing October 1,
1999 and terminating at 5:00 p.m., St. George, Utah, two (2) years subsequent to
the declaration of effectiveness of the Corporation's registration statement for
an IPO, by presentation and surrender hereof to the Corporation at its principal
office, or at the office of its stock transfer agent, if any, with the purchase
form annexed hereto as Exhibit B, duly executed and accompanied by payment of
the Exercise Price for the number of shares specified in such form. Upon receipt
by the Corporation of this Option at its principal office, or by the stock
transfer agent of the Corporation, if any, at its office, in proper form for
exercise, the Optionee shall be deemed to be the holder of record of the Option
Shares issuable upon such exercise, notwithstanding that the shares transfer
books of the Corporation shall then be closed or that certificates representing
such Option Shares shall not then be actually delivered to the Optionee.

         2. RESERVATION AND STATUS OF SHARES. The Corporation hereby agrees that
at all times there shall be reserved for issuance and delivery upon exercise of
this Option such number of its common shares as shall be required for issuance
and delivery upon exercise of this Option, and that such shares, when issued in
accordance with the terms of this Option, shall be validly issued, fully paid,
and non-assessable.

               (a) FRACTIONAL SHARES. Fractional Shares or script representing
fractional Shares may be issued upon the exercise of this Option.

               (b) ASSIGNMENT, EXCHANGE, OR LOSS OF OPTION.

         Subject to the restrictions appearing at the start of this Option, upon
presentation and surrender of this Option to the Corporation at its principal
office or at the office of its stock

                                       2
<PAGE>

transfer agent, if any, with an assignment duly executed and funds sufficient to
pay, any transfer tax, the Corporation shall, without charge, execute and
deliver a new Option in the name of the assignee named in such instrument of
assignment and this Option shall promptly be canceled.

         This Option is exchangeable, without expense, at the option of the
Optionee, upon presentation and surrender hereof to the Corporation at its
principal office, or at the office of its stock transfer agent, if any, for
other Options of different denominations entitling the Optionee to purchase, in
the aggregate, the same number of Shares purchasable hereunder.

         Upon receipt by the Corporation of evidence satisfactory to it of the
loss, theft, destruction, or mutilation of this Option, 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 Option, the
Corporation will execute and deliver a new Option, which shall constitute an
additional contractual obligation on the part of the Corporation, whether or not
this Option so lost, stolen, destroyed, or mutilated shall be at any time
enforceable by anyone.

           3. RIGHTS OF THE OPTIONEE. Except as provided in the last sentence of
Section 1, the Optionee shall not, by virtue hereof, be entitled to any rights
of a shareholder in the Corporation, either at law or equity. The rights of the
Optionee are limited to those expressed in this Option and are not enforceable
against the Corporation except to the extent set forth herein.

           4. OFFICER'S CERTIFICATE. Whenever the number or kind of securities
purchasable upon the exercise of this Option or the Exercise Price shall be
adjusted as required by the provisions of this option agreement, the Corporation
shall forthwith file with its Secretary or Assistant Secretary at its principal
office and with its stock transfer agent, if any, an officer's certificate
showing the adjusted number of kind of securities purchasable upon exercise of
this Option and the adjusted Exercise Price determined as herein provided and
setting forth in reasonable detail such facts as shall be necessary to show the
reason for and the manner of computing such adjustments. Each such officer's
certificate shall be made available at all reasonable times for inspection by
the Optionee and the Corporation shall, forthwith after each such adjustment,
mail by certified mail a copy of such certificate to the Optionee.

           5. ADJUSTMENT TO NUMBER OF SHARES OF COMMON STOCK:

           (a) In the event that a share dividend shall be declared upon the
common stock of the Corporation, the number of shares of Common Stock then
subject to this Option shall be adjusted by adding to each such share the number
of shares which would be distributable in respect thereof if such Common Stock
had been outstanding on the date fixed for determining the shareholders of the
Corporation entitled to receive such share dividend.

           (b) In the event that the outstanding shares of the Corporation shall
be changed into or exchanged for a different number or kind of shares or other
securities of the Corporation or of another corporation, whether through
reorganization, recapitalization, split-up, combination of shares, merger,
consolidation, or otherwise, then there shall be substituted for each share of
Common Stock subject to this Option the number and kind of shares or other
securities into which each outstanding share of the Corporation shall have been
so changed or for which each such share shall have been exchanged. Under no
circumstances shall any such reorganization,

                                       3
<PAGE>

recapitalization, split-up, combination of shares, merger, consolidation, or
other exchange be accomplished without a comparable share option being
substituted pursuant to the foregoing.

         (c) In the event there shall be any change, other than as specified
elsewhere in this paragraph, in the number of kind of outstanding shares or of
any shares or other securities into which such shares shall have been changed or
for which they shall have been exchanged, then the board of directors of the
Corporation shall, in its sole discretion, determine whether such change
equitable requires an adjustment in the number or kind of Common Stock to be
issued on the exercise of this Option. Such adjustment shall be made by the
Corporation's board of directors and shall be binding and effective for all
purposes of this Option.

         (d) In the case of any such substitution or adjustment as provided for
in this paragraph, the option price set forth in this Option for each share of
Common Stock covered hereby prior to such substitution or adjustment shall be
the option price for all shares or other securities which shall have been
substituted for such Common Stock or to which such Common Stock shall have been
adjusted pursuant to this paragraph. No adjustment or substitution provided for
in this paragraph shall require the Corporation to sell a fractional share of
Common Stock, and the substitution or adjustment with respect to this Option
shall be limited accordingly; PROVIDED, HOWEVER, that the aggregate option price
paid shall be appropriately reduced on account of any fractional share of Common
Stock not issued. Upon any adjustment made pursuant to this paragraph, the
Corporation shall, upon request, deliver to the Optionee a certificate of the
Corporation's treasurer setting forth the option price thereafter in effect and
the number and kind of shares or other securities thereafter purchasable on the
exercise of this Option.

         (e)      If at any time:

               (i)  The Corporation proposes to pay any dividend or make any
                    distribution, including cash or property dividend payable
                    out of earnings, earned surplus, or assets of the
                    Corporations; or

               (ii) The Corporation proposes to effectuate any plan of
                    reorganization or reclassification of the Common Stock; or

               (iii) The Corporation proposes to merge, consolidate or encumber
                    or sell all or substantially all of its assets other than in
                    the ordinary course of business;

then, and in any one of such events, the Corporation shall cause a notice to be
mailed to the registered holder(s) of this Option at the address of such
holder(s) set forth in the registration records of the Corporation. Such notice
shall be solely for the convenience of such registered holders and shall not be
a condition precedent to nor shall any defect therein or failure in connection
therewith affect the validity of, the action proposed to be taken by the
Corporation. Such notice shall be mailed at least twenty (20) days prior to the
date on which the books of the Corporation shall close or a record date shall be
taken for such dividend, share split, reclassification, consolidation, merger or
sale of properties and assets, as the case may be. Such notice shall specify the
record date for closing of the Corporation's shareholder records.

           6. NOTICES TO OPTION OPTIONEE. So long as this Option shall be
outstanding, if the Corporation shall propose to take any action that would
cause an adjustment to be made pursuant

                                       4
<PAGE>

to this option agreement, the Corporation shall mail by certified mail to the
Optionee, before, or no later than 15 days after, the day on which such
adjustment would become effective, a notice setting forth in reasonable detail
the action so taken.

           7. 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 Optionee, to
Optionee's last known address, and if to the Corporation, at its principal
office, or such other addresses as a party shall so notify the other party in
writing. 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.

           8. BINDING EFFECT. The provisions of this Option shall be binding
upon and inure to the benefit of (a) the parties hereto, (b) the successors and
assigns of the Corporation, (c) if the Optionee is a corporation, partnership,
or other business entity, the successors and assignee of the Optionee, and (d)
if the Optionee is a natural person, the assignees, heirs, and personal
representative of the Optionee.

           9. PRONOUNS. Any masculine personal pronoun shall be considered to
mean the corresponding feminine or neuter personal pronoun, as the context
requires.

          10. LAW GOVERNING. This Agreement shall be governed by and construed
in accordance with the laws of the State of Nevada, United States of America.

          11. TITLES AND CAPTIONS. All section titles or captions contained in
this Agreement are for convenience only and shall not be deemed part of the
context nor effect the interpretation of this Agreement.

          12. COMPUTATION OF TIME. In computing any period of time pursuant to
this Agreement, 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, in which event the period
shall run until the end of the next day thereafter which is not a Saturday,
Sunday, or legal holiday.

          13. PRESUMPTION. This Agreement or any section thereof shall not be
construed against any party due to the fact that said Agreement or any section
thereof was drafted by said party.

          14. 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 Agreement.

          15. 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.

                                        5
<PAGE>

                  Dated:  October 1, 1999

                                          ROOMSYSTEMS, INC.,
                                           A NEVADA CORPORATION

                                          BY:       /s/ Steven L. Sunyich
                                              ------------------------------
                                          STEVEN L. SUNYICH
                                          PRESIDENT

                                        6
<PAGE>

                                   EXHIBIT "A"

THE OPTION PRICE IS AS FOLLOWS:

         The purchase price of the option granted under that certain "Option to
Purchase Common Shares" is $3.60 per share.

                                        7
<PAGE>

                                   EXHIBIT "B"

                                ROOMSYSTEMS, INC.

                       NOTICE OF EXERCISE OF SHARE OPTION

         I, ___________________, hereby exercise my Share Option granted by Room
Systems, Inc. (the "Corporation") and seek to purchase _____ of common shares of
the Corporation pursuant to said Option. I understand that this exercise is
subject to all the terms and provisions of my Stock Option Agreement referred to
therein.

Check and complete as appropriate:

    ______  Enclosed is my check in the sum of $__________ in payment for
            such shares.

    ______  Enclosed are _______ common shares of the Corporation owned by
            me which I hereby transfer to the ______ Corporation in payment for
            such shares.

I hereby represent that the _________ shares of common shares to be delivered to
me pursuant to the above-mentioned exercise of said Option are being acquired by
me as an investment and not with a view to, or for sale in connection with, the
distribution of any thereof.

Dated:

---------------------------------------------------
Optionee's Signature

Receipt is hereby acknowledged of the delivery to me by RoomSystems, Inc. of
certificates for _______ common shares of the Corporation purchased by me
pursuant to the terms and conditions of the Stock Option Agreement referred to
above.

Dated:

---------------------------------------------------
Optionee's Signature

                                        8
<PAGE>

                                   EXHIBIT E-2

                                ROOMSYSTEMS, INC.

                         OPTION TO PURCHASE COMMON STOCK

         NEITHER THIS OPTION NOR THE UNDERLYING COMMON SHARES HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. THE CORPORATION WILL NOT TRANSFER
THIS OPTION OR THE UNDERLYING COMMON SHARES UNLESS (i) THERE IS AN EFFECTIVE
REGISTRATION COVERING SUCH OPTION OR SUCH SHARES, AS THE CASE MAY BE, UNDER THE
SECURITIES ACT OF 1933 AND APPLICABLE STATES SECURITIES LAWS, (ii) IT FIRST
RECEIVES A LETTER FROM AN ATTORNEY, ACCEPTABLE TO THE BOARD OF DIRECTORS OR ITS
AGENTS, STATING THAT IN THE OPINION OF THE ATTORNEY THE PROPOSED TRANSFER IS
EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND UNDER ALL
APPLICABLE STATE SECURITIES LAWS, OR (iii) THE TRANSFER IS MADE PURSUANT TO RULE
144 UNDER THE SECURITIES ACT OF 1933.

<PAGE>

                        OPTION TO PURCHASE COMMON SHARES

                                       OF

                                ROOMSYSTEMS, INC.

         THIS IS TO CERTIFY THAT, FOR VALUE RECEIVED, Ash Capital, LLC or its
assigns ("OPTIONEE") are together entitled to purchase, subject to the
provisions of this Option, from RoomSystems, Inc., a Nevada corporation
("CORPORATION"), at a price per Share described more particularly on Exhibit
"A," attached hereto and incorporated herein by reference, up to Seventy-five
Thousand (75,000) common shares of the Corporation (the "SHARES") at any time
during the period commencing October 1, 1999 and terminating at 5:00 p.m., St.
George, Utah, two (2) years subsequent to the declaration of effectiveness of
the Corporation's registration statement for an "Initial Public Offering"
("IPO"). The Shares deliverable upon the exercise of this Option are hereinafter
sometimes referred to as the "UNDERLYING SHARES" and the exercise price of this
Option to purchase one Share is hereinafter sometimes referred to as the
"EXERCISE PRICE." The Shares deliverable upon the exercise of the Options are
hereinafter sometimes referred to as the "OPTION SHARES."

           1. EXERCISE OF OPTION. Subject to the provisions hereof, this Option
may be exercised as described herein, during the period commencing October 1,
1999 and terminating at 5:00 p.m., St. George, Utah, two (2) years subsequent to
the declaration of effectiveness of the Corporation's registration statement for
an IPO, by presentation and surrender hereof to the Corporation at its principal
office, or at the office of its stock transfer agent, if any, with the purchase
form annexed hereto as Exhibit "B," duly executed and accompanied by payment of
the Exercise Price for the number of shares specified in such form, so long as
Alan C. Ashton, or his duly appointed designee, serves a second term of one (1)
year on the Corporation's board of directors. Upon receipt by the Corporation of
this Option at its principal office, or by the stock transfer agent of the
Corporation, if any, at its office, in proper form for exercise, the Optionee
shall be deemed to be the holder of record of the Option Shares issuable upon
such exercise, notwithstanding that the shares transfer books of the Corporation
shall then be closed or that certificates representing such Option Shares shall
not then be actually delivered to the Optionee.

           2. RESERVATION AND STATUS OF SHARES. The Corporation hereby agrees
that at all times there shall be reserved for issuance and delivery upon
exercise of this Option such number of its common shares as shall be required
for issuance and delivery upon exercise of this Option, and that such shares,
when issued in accordance with the terms of this Option, shall be validly
issued, fully paid, and non-assessable.

               (a) FRACTIONAL SHARES. Fractional Shares or script representing
fractional Shares may be issued upon the exercise of this Option.

               (b) ASSIGNMENT, EXCHANGE, OR LOSS OF OPTION.

         Subject to the restrictions appearing at the start of this Option, upon
presentation and surrender of this Option to the Corporation at its principal
office or at the office of its stock transfer agent, if any, with an assignment
duly executed and funds sufficient to pay, any transfer

                                       2
<PAGE>

tax, the Corporation shall, without charge, execute and deliver a new Option in
the name of the assignee named in such instrument of assignment and this Option
shall promptly be canceled.

         This Option is exchangeable, without expense, at the option of the
Optionee, upon presentation and surrender hereof to the Corporation at its
principal office, or at the office of its stock transfer agent, if any, for
other Options of different denominations entitling the Optionee to purchase, in
the aggregate, the same number of Shares purchasable hereunder.

         Upon receipt by the Corporation of evidence satisfactory to it of the
loss, theft, destruction, or mutilation of this Option, 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 Option, the
Corporation will execute and deliver a new Option, which shall constitute an
additional contractual obligation on the part of the Corporation, whether or not
this Option so lost, stolen, destroyed, or mutilated shall be at any time
enforceable by anyone.

           3. RIGHTS OF THE OPTIONEE. Except as provided in the last sentence of
Section 1, the Optionee shall not, by virtue hereof, be entitled to any rights
of a shareholder in the Corporation, either at law or equity. The rights of the
Optionee are limited to those expressed in this Option and are not enforceable
against the Corporation except to the extent set forth herein.

           4. OFFICER'S CERTIFICATE. Whenever the number or kind of securities
purchasable upon the exercise of this Option or the Exercise Price shall be
adjusted as required by the provisions of this option agreement, the Corporation
shall forthwith file with its Secretary or Assistant Secretary at its principal
office and with its stock transfer agent, if any, an officer's certificate
showing the adjusted number of kind of securities purchasable upon exercise of
this Option and the adjusted Exercise Price determined as herein provided and
setting forth in reasonable detail such facts as shall be necessary to show the
reason for and the manner of computing such adjustments. Each such officer's
certificate shall be made available at all reasonable times for inspection by
the Optionee and the Corporation shall, forthwith after each such adjustment,
mail by certified mail a copy of such certificate to the Optionee.

           5.     ADJUSTMENT TO NUMBER OF SHARES OF COMMON STOCK:

         (a) In the event that a share dividend shall be declared upon the
common stock of the Corporation, the number of shares of Common Stock then
subject to this Option shall be adjusted by adding to each such share the number
of shares which would be distributable in respect thereof if such Common Stock
had been outstanding on the date fixed for determining the shareholders of the
Corporation entitled to receive such share dividend.

         (b) In the event that the outstanding shares of the Corporation shall
be changed into or exchanged for a different number or kind of shares or other
securities of the Corporation or of another corporation, whether through
reorganization, recapitalization, split-up, combination of shares, merger,
consolidation, or otherwise, then there shall be substituted for each share of
Common Stock subject to this Option the number and kind of shares or other
securities into which each outstanding share of the Corporation shall have been
so changed or for which each such share shall have been exchanged. Under no
circumstances shall any such reorganization, recapitalization, split-up,
combination of shares, merger, consolidation, or other exchange be accomplished
without a comparable share option being substituted pursuant to the foregoing.

                                       3
<PAGE>

         (c) In the event there shall be any change, other than as specified
elsewhere in this paragraph, in the number of kind of outstanding shares or of
any shares or other securities into which such shares shall have been changed or
for which they shall have been exchanged, then the board of directors of the
Corporation shall, in its sole discretion, determine whether such change
equitable requires an adjustment in the number or kind of Common Stock to be
issued on the exercise of this Option. Such adjustment shall be made by the
Corporation's board of directors and shall be binding and effective for all
purposes of this Option.

         (d) In the case of any such substitution or adjustment as provided for
in this paragraph, the option price set forth in this Option for each share of
Common Stock covered hereby prior to such substitution or adjustment shall be
the option price for all shares or other securities which shall have been
substituted for such Common Stock or to which such Common Stock shall have been
adjusted pursuant to this paragraph. No adjustment or substitution provided for
in this paragraph shall require the Corporation to sell a fractional share of
Common Stock, and the substitution or adjustment with respect to this Option
shall be limited accordingly; PROVIDED, HOWEVER, that the aggregate option price
paid shall be appropriately reduced on account of any fractional share of Common
Stock not issued. Upon any adjustment made pursuant to this paragraph, the
Corporation shall, upon request, deliver to the Optionee a certificate of the
Corporation's treasurer setting forth the option price thereafter in effect and
the number and kind of shares or other securities thereafter purchasable on the
exercise of this Option.

         (e)      If at any time:

                  (i)      The Corporation proposes to pay any dividend or make
                           any distribution, including cash or property dividend
                           payable out of earnings, earned surplus, or assets of
                           the Corporations; or

                  (ii)     The Corporation  proposes to effectuate any plan of
                           reorganization  or  reclassification of the Common
                           Stock; or

                  (iii)    The Corporation proposes to merge, consolidate or
                           encumber or sell all or substantially all of its
                           assets other than in the ordinary course of business;

then, and in any one of such events, the Corporation shall cause a notice to be
mailed to the registered holder(s) of this Option at the address of such
holder(s) set forth in the registration records of the Corporation. Such notice
shall be solely for the convenience of such registered holders and shall not be
a condition precedent to nor shall any defect therein or failure in connection
therewith affect the validity of, the action proposed to be taken by the
Corporation. Such notice shall be mailed at least twenty (20) days prior to the
date on which the books of the Corporation shall close or a record date shall be
taken for such dividend, share split, reclassification, consolidation, merger or
sale of properties and assets, as the case may be. Such notice shall specify the
record date for closing of the Corporation's shareholder records.

           6. NOTICES TO OPTION OPTIONEE. So long as this Option shall be
outstanding, if the Corporation shall propose to take any action that would
cause an adjustment to be made pursuant to this option agreement, the
Corporation shall mail by certified mail to the Optionee, before, or

                                       4
<PAGE>

no later than 15 days after, the day on which such adjustment would become
effective, a notice setting forth in reasonable detail the action so taken.

           7. 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 Optionee, to
Optionee's last known address, and if to the Corporation, at its principal
office, or such other addresses as a party shall so notify the other party in
writing. 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.

           8. BINDING EFFECT. The provisions of this Option shall be binding
upon and inure to the benefit of (a) the parties hereto, (b) the successors and
assigns of the Corporation, (c) if the Optionee is a corporation, partnership,
or other business entity, the successors and assignee of the Optionee, and (d)
if the Optionee is a natural person, the assignees, heirs, and personal
representative of the Optionee.

           9. PRONOUNS. Any masculine personal pronoun shall be considered to
mean the corresponding feminine or neuter personal pronoun, as the context
requires.

          10. LAW GOVERNING. This Agreement shall be governed by and construed
in accordance with the laws of the State of Nevada, United States of America.

          11. TITLES AND CAPTIONS. All section titles or captions contained in
this Agreement are for convenience only and shall not be deemed part of the
context nor effect the interpretation of this Agreement.

          12. COMPUTATION OF TIME. In computing any period of time pursuant to
this Agreement, 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, in which event the period
shall run until the end of the next day thereafter which is not a Saturday,
Sunday, or legal holiday.

          13. PRESUMPTION. This Agreement or any section thereof shall not be
construed against any party due to the fact that said Agreement or any section
thereof was drafted by said party.

          14. 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 Agreement.

          15. 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.

                                        5
<PAGE>

                  Dated:  October 1, 1999

                                          ROOMSYSTEMS, INC.,
                                           A NEVADA CORPORATION

                                          BY:       /s/ Steven L. Sunyich
                                              ----------------------------------
                                          STEVEN L. SUNYICH
                                          PRESIDENT

                                        6
<PAGE>

                                   EXHIBIT "A"

THE OPTION PRICE IS AS FOLLOWS:

         The purchase price of the option granted under that certain "Option to
Purchase Common Shares" is $6.60 per share.

                                        7
<PAGE>

                                   EXHIBIT "B"

                                ROOMSYSTEMS, INC.

                       NOTICE OF EXERCISE OF SHARE OPTION

         I, ___________________, hereby exercise my Share Option granted by
RoomSystems, Inc. (the "Corporation") and seek to purchase _____ of common
shares of the Corporation pursuant to said Option. I understand that this
exercise is subject to all the terms and provisions of my Stock Option Agreement
referred to therein.

Check and complete as appropriate:

    ______ Enclosed is my check in the sum of $__________ in payment for
           such shares.

    ______ Enclosed are _______ common shares of the Corporation owned by
           me which I hereby transfer to the ______ Corporation in payment for
           such shares.

         I hereby represent that the _________ shares of common shares to be
delivered to me pursuant to the above-mentioned exercise of said Option are
being acquired by me as an investment and not with a view to, or for sale in
connection with, the distribution of any thereof.

Dated:

---------------------------------------------------
Optionee's Signature

Receipt is hereby acknowledged of the delivery to me by RoomSystems, Inc. of
certificates for _______ common shares of the Corporation purchased by me
pursuant to the terms and conditions of the Stock Option Agreement referred to
above.

Date:

---------------------------------------------------
Optionee's Signature

                                        8
<PAGE>

                               [THIS PAGE OMITTED]

<PAGE>

                               [THIS PAGE OMITTED]

<PAGE>

                                    EXHIBIT G

                              CONSULTING AGREEMENT

                   THIS CONSULTING AGREEMENT (this "AGREEMENT") is entered into
this 24th day of August, 1999 by and between RoomSystems, Inc. ("RSI"), a Nevada
corporation (hereinafter referred to as "RSI") and Providence Management, LLC
(hereinafter referred to as "CONSULTANT").

                           ARTICLE 1. WORK ASSIGNMENTS

                         ACCEPTANCE OF WORK ASSIGNMENTS

                   SECTION 1.01. Consultant will consult with RSi on a
consulting basis as required by RSi commencing on September 30, 1999 and
terminating as set forth herein.

                               TERMS OF AGREEMENT

                   SECTION 1.02. The Agreement period will begin on September
30, 1999 and terminate at such time as Consultant has completed its duties as
described herein.

                         ARTICLE 2. DUTIES OF CONSULTANT

                       PERFORMANCE DESCRIPTION AND DUTIES

                   SECTION 2.01. Consultant is hereby contracted to assist RSi
in the marketing of its products; in increasing business development; in
developing marketing tools, programs, marketing materials and marketing
promotions; to assist in developing advertising and sponsorship programs with
large, national companies; to provide strategic financial planning; and to
provide assistance in any other area reasonably requested by RSi.

                               TIME AND ATTENTION

                   SECTION 2.02. Consultant agrees to devote such time as
reasonably requested by RSi, but in no wise shall Consultants' duties hereunder
interfere with its principals' other employment.

                             ARTICLE 3. COMPENSATION

                                BASE COMPENSATION

                   SECTION 3.01. (A) As compensation for the services previously
rendered by Consultant, RSi shall pay and deliver upon execution of this
Agreement the following: Cash payment in the amount of fifty-one thousand eight
hundred and seventy-five dollars ($51,875); and an option to purchase nineteen
thousand nine hundred and forty-eight (19,948) shares of

<PAGE>

RSi's common stock in the form of the option agreement, attached hereto as
Exhibit "A" and incorporated herein by reference.

                  (B) Should Consultant hereafter provide services to RSi
hereunder, Consultant shall account for its time and the time of its employees,
agents, consultants or independent contractors and shall submit billings to RSi
at the rate of $75 per hour, which shall be paid within fifteen (15) days of
receipt of such billing.

                             ADDITIONAL COMPENSATION

                   SECTION 3.02. As additional compensation, Consultant shall be
entitled to accrue and vest in additional options to purchase shares of RSi's
common stock (the "ADDITIONAL OPTIONS") based upon achieving certain benchmarks,
to be determined by Consultant and RSi, and included hereinafter to this
Agreement as Exhibit B. The Additional Options shall bear an exercise price of
one hundred and twenty percent (120%) of the selling price of RSi's shares of
common stock at the time of issue.

                  ARTICLE 4. CONSULTANT'S RECORDS/TRADE SECRETS

                        OWNERSHIP OF CONSULTANT'S RECORDS

                   SECTION 4.01.(A) All records of the accounts, customer lists,
sales and marketing plans, product design and specifications of RSi, of any
nature, whether existing at the time of Consultant's engagement, procured
through the efforts of Consultant, or obtained by Consultant from any other
source, and whether prepared by Consultant or otherwise, shall be the exclusive
property of RSi regardless of who actually purchased the original book, record,
or magnetic storage unit on which such information is recorded; or who developed
the program, marketing material, advertising program or material, or any other
matter relating to or arising out of RSi's business.

                  (B) All such books and records shall be immediately returned
to RSi by Consultant on any termination of engagement, whether or not any
dispute exists between RSi and Consultant, regarding any matter contained herein
and/or following the termination of this Agreement.

                RESTRICTIONS ON USE OF TRADE SECRETS AND RECORDS

                   SECTION 4.02.(A) During the term of this Agreement, and any
prior dealings with RSi, Consultant has had access to and become acquainted with
various trade secrets, consisting of formulas, programs, patterns, records and
specifications, business plans and other materials, all of which are owned by
RSi and regularly used in the operation of RSi's business.

                  (B) All files, records, documents, drawings, specifications,
programs, equipment and similar items relating to the business of RSi, whether
they are prepared by RSi or

                                       1
<PAGE>

by Consultant, or have come into Consultant's possession in any other way and
whether or not they contain or constitute trade secrets owned by RSi, are and
shall remain the exclusive property of RSi and shall not be removed from the
premises or RSi under any circumstances whatsoever without the prior written
consent of RSi.

                  (C) Consultant promises and agrees that Consultant shall not
misuse, misappropriate, give, sell, furnish, nor disclose, whether for
consideration or for no consideration, and whether or not during or following
its work under this Agreement with RSi, or at any other time thereafter, any
trade secrets described herein, directly or indirectly, or use them in any way
or manner, for its own benefit or the benefit of others, except as required in
the course and scope of Consultant's engagement with RSi. Consultant agrees and
promises not to make known to any other person, firm, or corporation the names,
addresses or any other information or any of RSi's customers or vendors, or call
on, solicit, or take away any of the customers of RSi on whom Consultant called
on or with whom Consultant became acquainted with during this Agreement herein.

                  (D) Consultant agrees that the use or dissemination of any
trade secrets as described above, whether by Consultant or by any other person
or entity constitutes unfair trade practices. Consultant agrees to not employ
unfair trade practices whether during the time of this employ or at any time
thereafter.

                        ARTICLE 5. CONSULTANT NON-COMPETE

                       NON-COMPETE DURING AGREEMENT PERIOD

                   SECTION 5.01. During the term of this Agreement, Consultant
shall not, directly or indirectly, engage in any business, commercial or
professional activity, which directly competes with the business of RSi.
Consultant further agrees not to provide any services of any other entity on a
formal or informal basis which may compete, directly or indirectly, with any of
the services or products which RSi currently provides or may provide during the
term of this Agreement or which may result directly or indirectly, in the
diversion of customers from RSi.

         Further, Consultant agrees that during this Agreement it shall not hire
away or assist in other company's (ies') hiring away current employees or
consultants of RSi.

                          NON-COMPETE AFTER TERMINATION

                   SECTION 5.02. Consultant agrees that for a period of two
years (24 months) after termination with RSi, neither it nor any of its
employees, agents, consultants, partners, managers, and/or officers will engage
in competitive activities or deal with any products similar to and in
competition with RSi and/or its products.

                                       2
<PAGE>

                          ARTICLE 6. GENERAL PROVISIONS

                                     NOTICES

                   SECTION 6.01. Any notices to be given by either party to the
other may be effected either by personal delivery in writing or by mail,
registered and certified, postage prepaid with return receipt requested. Mailed
notices shall be addressed to the parties at their last known addresses as
appearing on the books of RSi.

                                ENTIRE AGREEMENT

                   SECTION 6.02. This Agreement supersedes any an all other
agreements, either oral or written between the parties with respect to the
engagement of Consultant by RSi for the purposes set forth in Article 2.1, and
contains all of the covenants and agreements between the parties with respect to
such consulting work whatsoever. Each party to this Agreement acknowledges that
no representations, acting on behalf of any party, which are not embodied
herein, and that no other agreement, statement, or promise not contained in this
Agreement shall be valid or binding. Any modification of this Agreement will be
effective only if it is in writing signed by the party to be changed.

                               PARTIAL INVALIDITY

                   SECTION 6.03. If any provision in this Agreement is held by a
court of competent jurisdiction to be invalid, void, or unenforceable, the
remaining provisions shall nevertheless continue in full force and effect
without being impaired or invalidated in any manner.

                             LAW GOVERNING AGREEMENT

                   SECTION 6.04. This Agreement shall be governed by and
construed in accordance with the laws of the State of Utah.

                            ATTORNEY'S FEES AND COSTS

                   SECTION 6.06. If any legal action is necessary or brought in
any court or arbitration proceeding, to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorney's fees,
costs, and necessary expenses, in addition to any other relief to which such
party may be entitled. This provision shall be construed as applicable to the
entire Agreement.

                                       3
<PAGE>

                                   ASSIGNMENT

        SECTION 6.07. Neither party may assign any right or duty hereunder
without the express written consent of the other party.

         This Agreement is entered into on this 24th day of August, 1999.

                                                    ROOMSYSTEMS, INC.

                                   BY:       /S/ STEVEN L. SUNYICH
                                             -----------------------------------
                                             ITS:  CHIEF EXECUTIVE OFFICER

                                   CONSULTANT:  PROVIDENCE MANAGEMENT, LLC

                                   BY:       /S/ JAMES C. SAVAS
                                             -----------------------------------
                                             ITS:  MANAGER

                                        4
<PAGE>

                                    EXHIBIT A

                             TO CONSULTING AGREEMENT

                         Attached hereto as Exhibit E-1
                         Option to Purchase Common Stock
                                  97,750 Shares

<PAGE>

                                    EXHIBIT A

                             TO CONSULTING AGREEMENT

                         Attached hereto as Exhibit E-2
                         Option to Purchase Common Stock
                                  75,000 Shares

<PAGE>

                                    EXHIBIT H

                                ESCROW AGREEMENT

         This Escrow Agreement (the "Agreement") is made and entered into this
17th day of August, 1999, by and between RoomSystems, Inc., a Nevada corporation
("RSi" or the "Company"), Ash Capital, LLC, a Utah limited liability company
("Ash"), and U.S. Bank National Association (the "Escrow Agent").

                                    PREMISES

         A. RSi and Ash have entered into an Agreement of Understanding,
including exhibits, dated of even date herewith, the delivery of which is
required by various parties herein, which Agreement of Understanding and its
exhibits (some of which also constitute agreements between the parties) shall be
collectively referred to as the "Acquisition Agreements." The Acquisition
Agreements provide for the acquisition by Ash of Series B Preferred Stock issued
by RSi ("Preferred Stock") and provide for various other rights and
responsibilities among the parties.

         B. RSi has delivered to the Escrow Agent certificates representing
Preferred Stock in such amounts as has been agreed between the Company and Ash
at a price of $3.00 per share. Ash has delivered to the Escrow Agent funds equal
to $3.00 per share for the Preferred Stock issued by the Company.

         C. The parties desire to retain the Escrow Agent to hold with the
Acquisition Agreements, stock certificates, and funds pursuant to the
instructions contained in this Escrow Agreement, and the Escrow Agent has agreed
to serve as Escrow Agent and perform the duties and responsibilities identified
herein in exchange for the consideration identified herein.

<PAGE>

                                    AGREEMENT

         NOW, THEREFORE, upon the foregoing premises, which are incorporated
herein by this reference, and for and in consideration of the mutual promises
and covenants hereinafter set forth, and other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, it is hereby agreed
as follows:

         1. DELIVERIES. The parties shall make the following deliveries to the
Escrow Agent:

               1.1 DELIVERIES OF ASH: Ash has delivered to the Escrow Agent the
          following:

                    a. Executed Acquisition Agreements, including executed
               exhibits thereto (2 originals);

                    b. A check in the amount of $1,000,000 payable to U.S. Bank
               National Association, Escrow Agent for RoomSystems, Inc., which
               shall be placed in the escrow account by and with Escrow Agent
               and invested in the First American Prime Obligations Fund
               pursuant to the written direction of Ash.

          1.2 DELIVERIES BY RSI: RSi has delivered to the Escrow Agent the
     following:

               a. Executed Acquisition Agreements, including executed exhibits
          thereto (2 originals);

               b. A stock certificate representing 333,334 shares of Preferred
          Stock issued by RSi to Ash.

         2. INSTRUCTIONS TO ESCROW AGENT. Escrow Agent shall hold all documents,
funds, and stock certificates delivered to it pursuant to paragraph 1 in escrow
until the earlier of: (i) September 30, 1999 or (ii) the satisfaction of the
conditions set forth in paragraph 3 of this Escrow Agreement.

         In the event that all of the conditions set forth in paragraph 3 have
not been satisfied on or before September 30, 1999, the Escrow Agent shall
return to each of the parties set forth in

                                       1
<PAGE>

paragraph 1 the documents, funds, and stock certificates that were delivered to
Escrow Agent by such party pursuant to paragraph 1; provided, however, that the
funds returned to Ash shall include all interest accrued on such funds during
the pendency of the escrow. Upon completion of such deliveries, this Escrow
Agreement shall terminate.

         In the event that the conditions set forth in paragraph 3 have been
satisfied on or prior to September 30, 1999, the Escrow Agent shall take the
following actions:

                  2.1 DELIVERIES TO ASH: Escrow Agent shall deliver to Ash one
original of each of the originally executed documents identified in paragraphs
1.1a and 1.2a, together with the stock certificate identified in paragraph 1.2b
that has been issued in the name of Ash.

                  2.2 DELIVERIES TO RSI: Escrow Agent shall deliver to RSi one
original of each of the originally executed documents identified in paragraphs
1.1a and 1.2a. Escrow Agent shall also deliver to RSi the funds, including all
interest accrued on such funds during the pendency of the escrow, delivered by
Ash pursuant to paragraph 1.1b.

         3. CONDITIONS. The following conditions must all be satisfied to the
satisfaction of Ash, which satisfaction shall be evidenced by a certificate from
Ash to the Escrow Agent that such conditions have been satisfied. In the event
the Company has made efforts to satisfy such conditions, such consent shall not
be arbitrarily withheld but Ash may exercise reasonable discretion in whether to
give or withhold the consent on the basis of a reasonable good faith belief that
one or more of the conditions has not been satisfied. The certificate from Ash
to the Escrow Agent shall certify that the following conditions have been met or
waived to its satisfaction.

                  a. Ash shall have received a letter from AMRESCO Leasing
         Corporation to the effect that all of the AMRESCO conditions precedent,
         and other requirements have

                                       2
<PAGE>

         been met by RSi and that AMRESCO is willing to comply with its funding
         obligations under the Amended and Restated Program Agreement with RSi
         dated March 10, 1999 for the funding of units.

                  b. Ash shall have received a letter from RSG Investments, LLC
         to the effect that its Equipment, Purchase, and Sale Agreement with
         RSi has been modified and settled according to the following terms:
         $300,000 has been completely forgiven or repaid through a revenue
         sharing arrangement relative to a fixed number (not to exceed 2,000)
         of refreshment centers, $500,000 has been converted to Preferred
         Stock, $250,000 has been paid, and the balance of $750,000 will be
         repaid at the time of the initial public offering of RSi or within
         eight months of settlement. c. Ash shall have received a certificate
         from the president of RSi to the effect that:

               -    the Company believes that the letter identified in paragraph
                    3a above is true and correct and that all of the AMRESCO
                    conditions precedent, underwriting requirements and other
                    requirements have been met by RSi and that AMRESCO is
                    willing to comply with its funding obligations under the
                    Amended and Restated Program Agreement with RSi dated March
                    10, 1999 for the funding of units.

               -    the Company believes that the letter identified in paragraph
                    3b above is true and correct and that the Equipment,
                    Purchase, and Sale Agreement with RSi has been modified and
                    settled according to the terms set forth in paragraph 3b
                    above.

               -    the Company has effectuated a reverse stock split of the
                    common stock (but not the Preferred Stock) of the Company
                    and that the percentage of ownership represented by the
                    stock certificate set forth in

                                       3
<PAGE>

                    paragraph 1.2 hereof, on a fully diluted basis, is as
                    represented and warranted in the Acquisition Agreements.

               -    the representations and warranties set forth in the
                    Acquisition Agreements are true and correct as of a date
                    immediately preceding the distribution of escrowed
                    documents, funds, and stock certificate.

Ash will only issue such certificate to the Escrow Agent in the event that:

               -    Ash has no reasonable basis to believe that such certificate
                    of the president of RSi (see paragraph 3c) is inaccurate in
                    any material respect.

               -    Ash's financial and business due diligence as to RSi has
                    been completed to its satisfaction.

               -    All of the conditions of this paragraph 3 have been met or
                    waived to its satisfaction.

         4. DUTIES OF ESCROW AGENT. This Agreement states the entire agreement
between the parties hereto and merges all prior negotiations, agreements and
understandings, if any, and states in full the representations and warranties
which have induced the Agreement, there being no representations or warranties,
other than those herein stated, with respect to the escrow property. Escrow
Agent's rights, duties and obligations are strictly limited to those expressly
set forth in the Escrow Agreement and Escrow Agent shall be under no implied
obligation or subject to any implied liability hereunder. Escrow Agent shall not
be required to take notice of any default or any other matter, nor be bound nor
required to give notice or demand, nor required to take any action whatever
except as herein expressly provided. Escrow Agent shall not be liable for any
loss or damage unless caused by its own gross negligence or willful misconduct.
The duties and liabilities of the Escrow Agent shall be determined solely by
this Agreement and not be reference to any other agreement among the parties.

                                       4
<PAGE>

         5. AUTHORIZATION TO OPEN THE ACCOUNT. This Agreement is to be executed
by the parties hereto in sufficient numbers so that an Agreement bearing each
party's original signature can be held by the Escrow Agent. The parties hereto
hereby authorize Escrow Agent to establish and administer the account upon
receipt of a fully executed facsimile, telex or telecopy of the Agreement.

         6. METHODS OF COMMUNICATION. Escrow Agent may act in reliance upon any
instrument or signature believed to be genuine and may assume that any person
purporting to give any notice or make any statement in connection with the
provisions hereof has been duly authorized to do so. Escrow Agent is requested
and authorized, but not obligated, to rely upon and act in accordance with any
communication which may be given by telephone, facsimile, telex or other
electronic transmission. Escrow Agent shall be entitled, but not bound, to treat
such communication as fully authorized by and binding, and shall be entitled to
take such steps in connection with or in reliance on such communication.

         7. INVESTMENT INSTRUCTIONS. Escrow Agent shall have no duty or right to
invest funds on deposit in the escrow unless investment direction is provided.
Interest earned on the escrow account will be distributed to the party receiving
the funds as set forth in paragraph 2. All entities entitled to receive
interest from the escrow account will provide Escrow Agent with a W-9 or W-8 IRS
tax form prior to the disbursement of interest. A statement of citizenship will
be provided if requested by Escrow Agent.

         8. DISBURSEMENT BY WIRE TRANSFER. Parties hereto may elect to request
transfer of funds by Fedwire from time to time, subject to the conditions stated
herein. Parties hereto agree that the wire transfer security procedures
identified on the attached Schedule A to this

                                       5
<PAGE>

Agreement are commercially reasonable. Parties hereto further agree that Escrow
Agent should use these procedures to detect unauthorized wire transfer payment
requests prior to executing such requests and further agree that any request
acted upon by the Escrow Agent in compliance with these security procedures,
whether or not authorized, shall be treated as an authorized request. Parties
hereto agree that the Escrow Agent has the right to change the wire transfer
security procedures from time to time and that use of any changed procedures
evidences the acceptance of the commercially reasonability of such change by the
parties hereto.

         9. RIGHT TO INTERPLEAD. If any controversy arises between the parties
hereto or with any third person, Escrow Agent shall not be required to resolve
the same or to take any action to do so but may, at its discretion, institute
such interpleader or other proceedings as it deems proper. Escrow agent may rely
on any joint written instructions as to the disposition of funds, assets,
documents, or other held in escrow.

         10. FEES. Escrow Agent shall be paid for services hereunder in
accordance with the attached fee schedule and shall be reimbursed for its out of
pocket expenses for fees of counsel in setting up the escrow. Payments of all
fees shall be the responsibility of RSi and may, to the extent of unpaid fees
and expenses, be deducted from any property placed within the escrow with Escrow
Agent. In the event that Escrow Agent is made a party to litigation with respect
to the property held hereunder, or brings an action in interpleader or in the
event that the conditions of this escrow are not promptly fulfilled, or Escrow
Agent is required to render any service not provided for in this Agreement and
fee schedule, or there is any assignment of the interest of this escrow or any
modification hereof, Escrow Agent shall be entitled to reasonable compensation
for such extraordinary services and reimbursement for all fees, costs, liability
and expenses, including attorney fees. The Escrow Agent may amend its fee
schedule from time to time on 60 days' prior written notice to the parties.

                                       6
<PAGE>

         11. RESIGNATION AND TERMINATION. Escrow Agent may, upon providing
fifteen (15) days' written notice, resign its position and terminate its
liabilities and obligations hereunder. In the event Escrow Agent is not notified
within fifteen days of the Successor Escrow Agent, Escrow Agent shall be
entitled to transfer all funds and assets to a court of competent jurisdiction
with a request to have a successor appointed. Upon filing such action and
delivering such assets, Escrow Agent's obligations and responsibilities shall
cease. Similarly, RSi and Ash may also jointly terminate Escrow Agent and
appoint a Successor Escrow Agent by providing fifteen (15) days' written notice
to Escrow Agent.

         12. INDEMNIFICATION. The parties hereto jointly and severally indemnify
and hold harmless the Escrow Agent from loss, damage, or any claims made against
the Escrow Agent arising out of or relating to the escrow Agreement, such
indemnification to include all costs and expense incurred by the Escrow Agent,
including, but not limited to, reasonable attorney fees; provided, that this
indemnity and hold harmless shall not apply to the acts of gross negligence or
willful misconduct of the Escrow Agent. This indemnity shall survive the
termination of this Agreement for any reason, or the resignation or removal of
Escrow Agent.

         13. NOTICES. Notices, requests, demands and other communications
required under this Agreement shall be in writing considered validly served when
delivered by first-class mail, facsimile, telex or telecopy to address/telephone
number specified below:

                  RoomSystems, Inc.
                  390 North 3050 East
                  St. George, Utah  84790
                  Tel.435-688-3605
                  Fax.435-628-8611
                  Attn:    Steven L. Sunyich

                                       7
<PAGE>

                  Ash Capital, LLC
                  1400 S. Foothill Drive, Suite B25
                  Salt Lake City, Utah  84108
                  Tel.801-368-2305
                  Fax.801-377-8011
                  Attn:    Jim Savas

                  U.S. Bank National Association
                  180 East Fifth Street
                  St. Paul, MN  55101
                  Attn:    Chad Myers

And any party may alter their address by giving written notice of such change.

         14. AMENDMENTS. This Agreement may be amended, and observance of any
term of the Agreement may be waived, with (and only with) the written consent of
the parties hereto. This Agreement may be terminated at any time by a written
document signed to all parties to the original.

         15. DISCLOSURE. The parties hereto hereby agree not to use the name of
U.S. BANK NATIONAL ASSOCIATION to imply an association with the transaction
other than that of a legal escrow agent.

         16. BINDING AGREEMENT AND ASSIGNMENT. The foregoing provisions shall be
binding upon the assigns, successors, personal representatives and heirs of the
parties hereto, and shall be effective as of the day accepted by the Escrow
Agent. Any corporation into which the Escrow Agent may merge, sell, or transfer
its escrow business and assets, shall automatically be and become successor
Escrow Agent hereunder and vested with all powers as was its predecessor,
without the execution or filing of any instruments, or any further act, deed or
conveyance on the part of the parties hereto.

                                       8
<PAGE>

                                ROOMSYSTEMS, INC.

                                BY:  /s/ STEVEN L. SUNYICH
                                     ----------------------
                                ITS: CEO

                                ASH CAPITAL, LLC

                                BY:  /S/ JAMES C. SAVAS
                                     ----------------------
                                ITS: MANAGER

         The above Escrow Agreement received and accepted this 24th day of
August, 1999.

                                U.S. BANK NATIONAL ASSOCIATION

                                BY: /S/
                                    --------------------------
                                ITS:      VICE PRESIDENT

                                       9
<PAGE>

                                    EXHIBIT I

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement"), dated the 30th
day of September, 1999, is entered into by and between ROOMSYSTEMS, INC., a
Nevada corporation (the "Company"), ASH CAPITAL, LLC, a Utah limited liability
company ("Ash"), SKM INVESTMENTS, LLC, a Utah limited liability company, C&W/RSI
PARTNERS, LLC, a Utah limited liability company, THUNDER MOUNTAIN PROPERTIES,
LC, a Utah limited liability company, and such other persons and entities that
are introduced to the Company by Ash and who purchase shares of Preferred Stock
(as defined) and become parties to this Agreement (each, a "Holder" or together
the "Holders"), on the following:

                                    PREMISES

         WHEREAS, concurrently with the execution of this Registration Rights
Agreement, the Company and the Holders have entered into a Subscription
Agreement and other related agreements, all of which shall be together referred
to as the "Purchase Agreement" pursuant to the terms of which the Company has
agreed to issue certain share of its Series B Preferred Stock ("Preferred
Stock"), to the Holders, all on the terms and conditions and in the amounts set
forth in the Purchase Agreement (the "Acquisition").

         WHEREAS, the Holders and the Company are entering into this Agreement
and agree that this Agreement shall govern the rights of the parties respecting
the ownership, transferability, and registration of the resale of the
Registrable Securities (as defined below) issuable to Holders and acknowledge
and understand that other Holders may enter into this Agreement by executing the
Joinder to Registration Rights Agreement (the "Joinder") attached hereto as
Exhibit "A." This Agreement is the registration rights agreement contemplated by
Paragraph 8 of the Agreement of Understanding between the Company and Ash and
pursuant to which the other Holders are third party beneficiaries thereof.

         WHEREAS, as a condition to the effectiveness of the obligations of the
Company and the Holder pursuant to the Purchase Agreement, the Company is
required to enter into this Registration Rights Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises, which are
incorporated herein, the parties hereto agree as follows:

                                    AGREEMENT

          1.    DEFINITIONS.  For purposes of this Agreement:

                (a)      "AGREEMENT" shall mean this Agreement.

                (b) "COMMON STOCK" shall mean the common stock of the Company,
         into which the Preferred Stock is convertible.

<PAGE>

                (c) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                (d) "HOLDER" means a holder of Registrable Securities or any
         permitted assignee of any of the foregoing, if the transfer to such
         assignee has been recorded in the corporate books and records of the
         Company, in accordance with the provisions of this Agreement.

                (e) "HOLDERS" shall mean the parties to this Agreement as
         identified above and such other persons or entities that become a party
         to this Agreement by executing the Joinder attached hereto as Exhibit
         "A."

                (f) "INITIATING HOLDERS" shall mean the Holders of not less than
         50% of the Registrable Securities.

                (g) "PREFERRED STOCK" shall mean the Company's 6% Series B
         Convertible Preferred Stock.

                (h) "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
         registration effected by preparing and filing a registration statement
         or similar document in compliance with the Securities Act and the
         declaration or ordering of effectiveness of such registration statement
         or document.

                (i) "REGISTRABLE SECURITIES" means all shares of Common Stock
         issued or issuable by the Company in the Acquisition, including any
         Common Stock issued or issuable on the exercise of options or warrants
         issued or issuable by the Company, upon conversion of the Preferred
         Stock sold to the Holders in accordance with the Agreement of
         Understanding or the Purchase Agreement and any Common Stock otherwise
         issued or issuable with respect to such shares of Preferred Stock or
         Common Stock, PROVIDED, HOWEVER, that shares of Common Stock or other
         securities shall only be treated as Registrable Securities if and so
         long as they have not been (x) sold to or through a broker or dealer or
         underwriter in a public distribution or a public securities
         transaction; or (y) sold in a transaction exempt from the registration
         and prospectus delivery requirements of the Securities Act under
         Section 4(1) thereof so that all transfer restrictions and restrictive
         legends with respect thereto are removed upon the consummation of such
         sale; or (z) have been held, either separately or in the aggregate, to
         the extent tacking of holding periods is permitted under the Securities
         Act, for the period specified in paragraph (k) of Rule 144 (or any
         similar provision then in force), so as to permit the sale of such
         shares without restrictions on transfer under the Securities Act.

                (j) "REGISTRATION EXPENSES" shall mean all expenses incurred by
         the Company in complying with Section 5, 6 and 7 hereof, including all
         registration, qualification and filing fees, printing expenses, escrow
         fees, fees and disbursements of counsel for the Company, fees and
         disbursements of one counsel for the Holders, fees and expenses
         incurred in qualifying the subject securities for resale in applicable
         states, and the expense of any special audits incident to or required
         by any such registration (but

                                       1
<PAGE>

          excluding the compensation of regular employees of the Company which
          shall be paid in any event by the Company).

                (k) "RESTRICTED SECURITIES" shall mean the securities of the
         Company required to bear the legend as set forth in this Agreement.

                (l) "SECURITIES ACT" means the Securities Act of 1933, as
         amended or any similar or successor federal statute and the rules and
         regulations of the SEC thereunder, all as the same shall be in effect
         at the time.

                (m) "SEC" means the United States Securities and Exchange
Commission.

                (n) "SELLING EXPENSES" shall mean all underwriting discounts,
         selling commissions and stock transfer taxes applicable to the
         securities registered by the Holders and all fees and disbursements of
         counsel for the Holders.

          2. RESTRICTIONS ON TRANSFERABILITY. The Registrable Securities shall
not be sold, assigned, transferred or pledged except upon the conditions
specified in this Agreement, which conditions are intended to ensure compliance
with the provisions of the Securities Act and to preserve and protect the best
business interests of all stockholders of the Company. Each Holder will cause
any proposed purchaser, assignee, transferee or pledgee of the Registrable
Securities to agree to take and hold such securities subject to the provisions
and upon the conditions specified in this Agreement.

          3. RESTRICTIVE LEGEND. The face of each certificate representing any
of the Registrable Securities shall (unless otherwise permitted by the
provisions to this Agreement set forth below) bear a conspicuous legend in
substantially the following form (in addition to any legend required under
applicable state securities laws):

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED (THE
                  "SECURITIES ACT") AND ARE "RESTRICTED SECURITIES" WITHIN THE
                  MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES ACT, THE
                  SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
                  SOLD OR TRANSFERRED WITHOUT COMPLYING WITH RULE 144 IN THE
                  ABSENCE OF AN EFFECTIVE REGISTRATION OR OTHER COMPLIANCE UNDER
                  THE SECURITIES ACT.

Each Holder consents to the Company making a notation on its records and giving
instructions to any transfer agent of the Restricted Securities in order to
implement the restrictions on transfer established in this Section.

                                    2
<PAGE>

          4. NOTICE OF PROPOSED TRANSFERS. Each Holder of each certificate
represented Restricted Securities, by acceptance thereof, agrees to comply in
all respects with the provisions of this Section. Prior to any proposed sale,
assignment, pledge, or other transfer for value of any Restricted Securities,
unless there is in effect a registration statement under the Securities Act
covering the proposed transfer, each Holder shall give written notice to the
Company of such Holders' intention to effect such transfer, sale, assignment or
pledge. Each such notice shall describe the manner and circumstances of the
proposed sale, assignment, pledge, or other transfer for value in reasonable
detail, which shall be accompanied, at such Holder's expense, by either (a) an
unqualified written opinion of legal counsel, whose legal opinion shall be
reasonably satisfactory to the Company, addressed to the Company, based on the
specific terms of the proposed transaction, to the effect that the proposed
transfer of the Restricted Securities may be effected without registration under
the Securities Act; or (b) a "no action" letter from the SEC to the effect that
the transfer of such securities without registration will not result in a
recommendation by the staff of the SEC that enforcement action be taken with
respect thereto; (c) an interpretive response from the SEC concluding, based on
the specific terms of the proposed transaction, that such transaction may be
effected without registration under the Securities Act; or (d) any other
evidence reasonably satisfactory to counsel to the Company, whereupon each
Holder of such Restricted Securities shall be entitled to transfer such
Restricted Securities in accordance with the terms of the notice delivered by
such Holder to the Company. The Company will not require such a legal opinion or
"no action" or interpretive letter (x) in any transaction in compliance with
Rule 144, (y) in any transaction in which a Holder that is a corporation
transfers Restricted Securities solely to its majority owned subsidiaries or
affiliates for no consideration, or (z) in any transaction in which a Holder
that is a partnership transfers Restricted Securities solely to partners thereof
for no consideration; PROVIDED that in each case each transferee agrees in
writing to be subject to the terms of this Section. Each certificate evidencing
the Restricted Securities transferred as above provided shall bear, except is
such transfer is made pursuant to Rule 144, the appropriate restrictive legend
set forth above, except that such certificate shall not bear such restrictive
legend if, in the opinion of counsel for such Holder and the Company, such
legend is not required in order to establish compliance with any provision of
the Securities Act.

          5.    DEMAND REGISTRATION.

                (a) REQUEST FOR REGISTRATION. In case the Company shall receive
from Initiating Holders a written request that the Company effect any
registration, qualification or compliance with respect to the Registrable
Securities, the Company will:

                         (i) promptly give written notice of the proposed
         registration, qualification or compliance to all other Holders; and

                         (ii) as soon as practicable, use its best efforts to
         effect such registration, qualification or compliance (including the
         execution of an undertaking to file post-effective amendments,
         appropriate qualification under applicable state securities laws and
         appropriate compliance with applicable regulations issued under the
         Securities Act and any other governmental requirements or regulations)
         as may be so requested and as

                                        3
<PAGE>

          would permit or facilitate the sale and distribution of all or such
          portion of such Registrable Securities of any Holder or Holders
          joining in such request as are specified in a written request received
          by the Company within twenty (20) days after receipt of the written
          notice from the Company; PROVIDED, HOWEVER, that the Company shall not
          be obligated to take any action to effect any such registration,
          qualification or compliance pursuant to this subsection:

                            (A)     That is not permitted by the SEC;

                            (B) In any particular jurisdiction in which the
                  Company would be required to execute a general consent to
                  service of process in effecting such registration,
                  qualification or compliance unless the Company is already
                  subject to service in such jurisdiction and except as may be
                  required by the Securities Act;

                            (C) Prior to the earlier of the date that is (1)
                  nine months following the last closing of the Company's
                  initial public offering, or (2) March 31, 2001; or

                            (D) After the Company has effected two (2) such
                  registrations pursuant to this subparagraph 5, each such
                  registration has been declared or ordered effective, and each
                  such registration statement remained effective for at least 90
                  days, excluding any period during which securities could not
                  be sold thereunder as described in Sections 9(f) and 10(b).

                (b) UNDERWRITING. In the event that a registration pursuant to
Section 5 is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as part of the notice given pursuant to this
Section. The right of any Holder to registration pursuant to this Section shall
be conditioned upon such Holder's participation in the underwriting arrangements
required by this Section and the inclusion of such Holder's Registrable
Securities in the underwriting, to the extent requested and provided herein.

         The Company shall (together with all Holders proposing to distribute
their securities through such underwriting) enter into an underwriting agreement
in customary form with the managing underwriter selected for such underwriting
by a majority in interest of the Initiating Holders (which managing underwriter
shall be reasonably acceptable to the Company). Notwithstanding any other
provision of this Section, if the managing underwriter advises the Company in
writing that marketing factors require a limitation of the number of shares to
be underwritten, then the Company shall so advise all Holders of Registrable
Securities and the number of shares of Registrable Securities that may be
included in the registration and underwriting shall be allocated among all
Holders thereof in proportion, as nearly as practicable, to the respective
amounts of Registrable Securities held by such Holders at the time of filing the
registration statement. No Registrable Securities excluded from the underwriting
by reason of the

                                        4
<PAGE>

underwriter's marketing limitation shall be included in such registration. To
facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any
Holder to the nearest 100 shares.

         If any Holder of Registrable Securities disapproves of the terms of the
underwriting, such person may elect to withdraw therefrom by written notice to
the Company, the managing underwriter, and the Initiating Holders. The
Registrable Securities or other securities so withdrawn shall also be withdrawn
from registration, and such Registrable Securities shall not be transferred in a
public distribution prior to 90 days after the date of the final prospectus used
in such public offering.

          6.    PARTICIPATORY REGISTRATION.

                (a) NOTICE OF REGISTRATION. If at any time or from time to time,
the Company shall determine to register any of its securities, either for its
own account or the account of a security holder other than (i) a registration
relating solely to employee benefit plans, or (ii) a registration relating
solely to a transaction of the type referred to in SEC Rule 145(a), the Company
will:

                         (i) promptly give to each Holder written notice
         thereof; and

                         (ii) include in such registration (and any related
         qualification under state securities laws or other compliance), and in
         any underwriting involved therein, all the Registrable Securities
         specified in a written request or requests made within twenty (20) days
         after such written notice from the Company, but only to the extent that
         such inclusion is permitted by the SEC and will not diminish the number
         of securities included by the Company or by stockholders who have
         demanded such registration.

                (b) UNDERWRITING. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written notice given
pursuant to this Section. In such event, the right of any Holder to registration
pursuant to this Section shall be conditioned upon such Holder's participation
in such underwriting and the inclusion of such Holder's Registrable Securities
in the underwriting, to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company and the other stockholders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
managing underwriter selected for such underwriting by the Company (or by the
stockholders who have demanded such registration, as the case may be).
Notwithstanding any other provision of this Section, if the managing underwriter
determines that marketing factors require a limitation of the number of shares
to be underwritten, the managing underwriter may limit the number of Registrable
Securities to be included in the registration and underwriting, on a PRO RATA
basis based on the total number of securities (including Registrable Securities)
entitled to registration pursuant to registration rights granted by the Company;
PROVIDED, HOWEVER, that no such reduction may reduce the number of securities
being sold by the Company for its own account. To facilitate the allocation of
shares in accordance with the above provisions, the

                                    5
<PAGE>

Company or the underwriters may round the number of shares allocated to any
Holder or other stockholder to the nearest 100 shares.

         If any Holder or other stockholder disapproves of the terms of any such
underwriting, he or she may elect to withdraw therefrom by written notice to the
Company and the managing underwriter. Any securities excluded or withdrawn from
such underwriting shall be withdrawn from such registration, and shall not be
transferred in a public distribution prior to ninety (90) days after the date of
the final prospectus in the registration statement relating thereto.

                                                        -5-

                (c) RIGHT TO TERMINATE REGISTRATION. The Company shall have the
right to terminate or withdraw any registration initiated by it under this
Section prior to the effectiveness of such registration, whether or not any
Holder has elected to include securities in such registration.

          7. REGISTRATION ON FORM S-3.

                (a) If any Holder or Holders of Registrable Securities requests
         that the Company file a registration statement on Form S-3 (or any
         successor form to Form S-3) for a public Offering of shares of
         Registrable Securities, the reasonably anticipated aggregate price to
         the public of which, net of underwriting discounts and commissions,
         would exceed $500,000, and the Company is a registrant entitled to use
         Form S-3 to register the Registrable Securities for such an offering,
         the Company shall use its best efforts, to cause such Registrable
         Securities to be registered for the offering on such form; PROVIDED,
         HOWEVER, that the Company shall not be required to effect more than one
         registration pursuant to this Section in any consecutive twelve (12)
         months. The Company will (i) promptly give written notice of the
         proposed registration to all other Holders, and (ii) as soon as
         practicable, use its best efforts to effect such registration
         (including the execution of an undertaking to file post-effective
         amendments, appropriate qualification under applicable blue sky or
         other state securities laws and appropriate compliance with applicable
         regulations issued under the Securities Act and any other governmental
         requirements or regulations) as may be so requested and as would permit
         or facilitate the sale and distribution of all or such portion of the
         Registrable Securities as are specified in such request, together with
         all or such portion of the Registrable Securities of any Holder or
         Holders joining in such request as are specified in a written request
         received by the Company within twenty (20) days after receipt of
         written notice from the Company. The substantive provisions of Section
         5(b) shall be applicable to each registration initiated under this
         Section.

                (b) Notwithstanding the foregoing, the Company shall not be
         obligated to take any action pursuant to this Section (i) not permitted
         by the SEC; (ii) in any particular jurisdiction in which the Company
         would be required to execute a general consent to service of process in
         effecting such registration, qualification or compliance unless the
         Company is already subject to service in such jurisdiction and except
         as may be required by the Securities Act; (iii) during the period
         starting with the date sixty (60) days prior to

                                       6
<PAGE>

          the filing of, and ending on the earlier of (x) one year after the
          date of filing of, or (y) a date six (6) months following the
          effective date of, a registration statement (other than with respect
          to a registration statement relating to a Rule 145 transaction, an
          offering solely to employees or any other registration which is not
          appropriate for the registration of Registrable Securities), PROVIDED
          that the Company is actively employing in good faith all reasonable
          efforts to cause such registration statement to become effective; or
          (iv) if the Company shall furnish to such Holder a certificate signed
          by the President of the Company stating that, in the good faith
          judgment of the Board of Directors, it would be seriously detrimental
          to the Company or its shareholders for registration statements to be
          filed in the near future, then the Company's obligation to use its
          best efforts to file a registration statement shall be deferred for a
          period not to exceed one hundred twenty (120) days after the receipt
          of the request to file such registration by such Holder or Holders,
          PROVIDED, HOWEVER, that the Company shall be permitted to defer a
          registration pursuant to this paragraph (B)(iv) only once in any
          twelve month period.

          8. LIMITATIONS ON SUBSEQUENT PARTICIPATORY REGISTRATION RIGHTS. The
Company has not and from and after the date hereof, the Company shall not,
without the consent of each Holder of at least 50% of the Registrable
Securities, enter into any agreement granting any holder or prospective holder
of any securities of the Company registration rights with respect to such
securities unless (a) such new registration rights, including market standoff
obligations, are on a PARI PASSU basis with those rights of the Holders
hereunder or (b) such new registration rights, including market standoff
obligations, are subordinate to the registration rights granted Holders in
Section 6 hereof.

                                                        -6-

          9. OBLIGATIONS OF THE COMPANY. Whenever required under this Agreement
to effect the registration of any Registrable Securities, the Company shall
proceed diligently and in good faith to:

                   (a) Prepare and file with the SEC a registration statement
         with respect to the resale of such Registrable Securities by the
         Holders and use commercially reasonable best efforts to cause such
         registration statement to become effective and keep such registration
         statement effective until the earliest of the passage of two years,
         until all Registrable Securities included therein have been sold by the
         selling Holder(s), or until the Company has received an opinion from
         its legal counsel that the sale of such securities is no longer
         required to be registered by reason of Rule 144(k) adopted under the
         Securities Act;

                   (b) Use commercially reasonable best efforts to prepare and
         file with the SEC such amendments and supplements to such registration
         statement and the prospectus used in connection with such registration
         statement as may be necessary to comply with the provisions of the
         Securities Act with respect to the disposition of all securities
         covered by such registration statement for a period of at least one
         year, excluding any period during which securities cannot be sold
         thereunder as described in subparagraph (f) of this Section and Section
         10(b);

                                       7
<PAGE>

                   (c) Furnish to the Holders of the Registrable Securities
         included in such registration statement such numbers of copies of a
         prospectus, including a preliminary prospectus, in conformity with the
         requirements of the Securities Act, and such other documents as they
         may reasonably request in order to facilitate the disposition of
         Registrable Securities owned by them;

                   (d) If the offer and sale of the Registrable Securities is
         not preempted from the jurisdiction of state securities laws, use
         commercially reasonable best efforts to register and qualify the
         securities covered by such registration statement under such other
         securities or blue sky laws of such jurisdictions as shall be
         reasonably requested by the Holders; PROVIDED THAT, the Company is not
         required in connection therewith or as a condition thereto to qualify
         to do business or to file a general consent to service of process in
         any such states or jurisdictions;

                   (e) In the event of any underwritten public Offering of
         Registrable Securities, enter into and perform its obligations under an
         underwriting agreement, in usual and customary form, with the managing
         underwriter of such Offering;

                   (f) Notify each Holder of Registrable Securities covered by
         such registration statement, at any time when a prospectus relating
         thereto is required to be delivered under the Securities Act, of the
         happening of any event that limits the Holder's ability to rely on such
         registration statement, including any event that results in the
         prospectus included in such registration statement, as then in effect,
         containing an untrue statement of a material fact or omitting to state
         a material fact required to be stated therein or necessary to make the
         statements therein not misleading in the light of the circumstances
         then existing; any stop order issued by the SEC or any state securities
         agency; or the suspension or limitation of any state exemption on which
         the Company and the Holders are relying, in which case the Company
         shall use commercially reasonable best efforts to file an amendment to
         update the registration statement to the extent necessary or to take
         other remedial action;

                   (g) Cause all such Registrable Securities registered pursuant
         hereunder to be listed on each securities exchange on which similar
         securities issued by the Company are then listed;

                   (h) Provide a transfer agent and registrar for all
         Registrable Securities registered pursuant hereunder and a CUSIP number
         for all such Registrable Securities, in each case not later than the
         effective date of such registration; and

                   (i) In the event of an underwritten public offering of
         Registrable Securities, use commercially reasonable best efforts to
         furnish, if required under the terms of the underwriting agreement, on
         the date that such Registrable Securities are to be delivered to the
         underwriters for sale in connection with a registration: (1) an
         opinion, dated such date, of the counsel representing the Company for
         the purposes of such registration, in

                                       8
<PAGE>

         form and substance as is customarily given to underwriters in an
         underwritten public offering, addressed to the underwriters, if any,
         and to the Holders requesting registration of Registrable Securities
         and (2) a letter dated such date, from the independent certified
         public accountants of the Company, in form and substance as is
         customarily given by independent certified public accountants of the
         Company, in form and substance as is customarily given in independent
         certified public accountants to underwriters in an underwritten public
         offering, addressed to the underwriters, if any, and to the Holders
         requesting registration of Registrable Securities.

         10. COOPERATION BY THE HOLDERS.

                (a) Each Holder shall furnish to the Company in writing such
         information and affidavits as the Company may reasonably require from
         each Holder in connection with any registration, qualification, or
         compliance with respect to such Registrable Securities. It shall be a
         condition precedent to the obligations of the Company to take any
         action pursuant to this Agreement with respect to the Registrable
         Securities of any selling Holder that such Holder shall furnish to the
         Company such information regarding the Holder, the Registrable
         Securities and other securities in the Company held, and the intended
         method of disposition of such securities as shall be required to effect
         the registration of such Holder's Registrable Securities.

                (b) Each Holder, upon receipt of any notice from the Company of
         the happening of any event of the kind described in paragraph (f) of
         Section 9, will forthwith discontinue disposition of the Registrable
         Securities until such Holder's receipt of the copies of the
         supplemented or amended prospectus contemplated by paragraph (f) of
         Section 9 or until it is advised in writing by the Company that the use
         of such prospectus may be resumed and has received copies of any
         additional or supplemental filings that are incorporated by reference
         in such prospectus, and if so directed by the Company, each Holder
         will, or will request the managing underwriter or underwriters, if any,
         to deliver to the Company all copies, other than permanent file copies
         then in such Holder's possession, of the prospectus covering such
         Registrable Securities current at the time of receipt of such notice.

                (c) At the end of any periods during which the Company is
         obligated to keep any registration statement current and effective as
         provided herein, such Holder shall discontinue sales of securities
         pursuant to such registration statement upon receipt of notice from the
         Company of its intention to remove from registration the securities
         covered by such registration statement which remain unsold, and such
         Holder shall notify the Company of the number of securities registered
         which remain unsold promptly after receipt of such notice from the
         Company.

                (d) Each Holder acknowledges that the registration of the sale
         of the Registrable Securities or the availability of an exemption from
         registration in certain states may impose certain limitations and
         conditions on the manner and nature of such sales. The Company shall
         advise each Holder in writing of such registration or exemption and the

                                       9
<PAGE>

         related limitations and conditions from time to time. Each Holder shall
         be solely responsible for such Holder's own compliance with such
         limitations and conditions.

         11. EXPENSES OF REGISTRATION. All Registration Expenses incurred in
connection with any registration pursuant to Sections 5, 6 and 7 shall be borne
by the Company. All Selling Expenses in any such registration shall be borne by
the Holders of Registrable Securities PRO RATA on the basis of the number of
shares to be registered.

         12. DELAY OF REGISTRATION. No Holder shall have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Agreement.

         13. INDEMNIFICATION. In the event any Registrable Securities are
included in a registration statement:

                (a) To the extent permitted by law, the Company will indemnify
         and hold harmless each Holder whose Registrable Securities are included
         in a registration statement, any underwriter (as defined in the
         Securities Act) for such Holder, and each person, if any, who controls
         such Holder or underwriter within the meaning of the Securities Act or
         the Exchange Act, against any losses, claims, damages, or liabilities
         to which they may become subject under the Securities Act, insofar as
         such losses, claims, damages, or liabilities arise out of or are based
         upon any of the following statements, omissions or violations
         (collectively, a "Violation"): (i) any untrue statement or alleged
         untrue statement of a material fact contained in such registration
         statement, including any preliminary prospectus or final prospectus
         contained therein or any amendments or supplements thereto, (ii) the
         omission or alleged omission to state therein a material fact required
         to be stated therein, or necessary to make the statements therein not
         misleading, or (iii) any violation or alleged violation by the Company
         of the Securities Act or any rule or regulation promulgated under the
         Securities Act; and the Company will pay to each such Holder,
         underwriter or controlling person, any legal or other expenses
         reasonably incurred by them in connection with investigating or
         defending any such loss, claim, damage, liability, or action; PROVIDED,
         HOWEVER, that the indemnity agreement shall not apply to amounts paid
         in settlement of any such loss, claim, damage, liability, or action if
         such settlement is effected without the consent of the Company (which
         consent shall not be unreasonably withheld), nor shall the Company be
         liable in any such case for any such loss, claim, damage, liability, or
         action to the extent that it arises out of or is based upon a Violation
         which occurs in reliance upon and in conformity with written
         information furnished expressly for use in connection with such
         registration by any such Holder, underwriter, or controlling person.

                (b) To the extent permitted by law, each selling Holder whose
         Registrable Securities are included in a registration statement will
         indemnify and hold harmless the Company, each of its directors, each of
         its officers who has signed the registration statement, each person, if
         any, who controls the Company within the meaning of the

                                       10
<PAGE>

         Securities Act, any underwriter, any other Holder selling securities
         in such registration statement and any controlling person of any such
         underwriter or other Holder, against any losses, claims, damages, or
         liabilities to which any of the foregoing persons may become subject
         under the Securities Act or the Exchange Act, insofar as such losses,
         claims, damages, or liabilities (or actions in respect thereto) arise
         out of or are based upon any Violation, in each case to the extent
         (and only to the extent) that such Violation occurs in reliance upon
         and in conformity with written information furnished by such Holder
         expressly for use in connection with such registration; and each such
         Holder will pay any legal or other expenses reasonably incurred by any
         person intended to be indemnified in connection with investigating or
         defending any such loss, claim, damage, liability, or action;
         PROVIDED, HOWEVER, that the indemnity agreement shall not apply to
         amounts paid in settlement of any such loss, claim, damage, liability,
         or action if such settlement is effected without the consent of each
         Holder, which consent shall not be unreasonably withheld.
         Notwithstanding the foregoing provision, each Holder's indemnification
         obligation under this subparagraph shall not exceed the amount
         received by such Holder on the sale of securities pursuant to the
         registration statement.

                (c) Promptly after receipt by an indemnified party of notice of
         the commencement of any action (including any governmental action),
         such indemnified party will, if a claim in respect thereof is to be
         made against any indemnifying party under this paragraph, deliver to
         the indemnifying party a written notice of the commencement thereof,
         and the indemnifying party shall have the right to participate in, and
         to the extent the indemnifying party so desires, jointly with any
         other indemnifying party similarly noticed, to assume the defense
         thereof with counsel mutually satisfactory to the parties; PROVIDED,
         HOWEVER, that an indemnified party (together with all other indemnified
         parties which may be represented without conflict by one counsel) shall
         have the right to retain one separate counsel, with the fees and
         expenses to be paid by the indemnifying party, if representation of
         such indemnified party by the counsel retained by the indemnifying
         party would be inappropriate due to actual or potential differing
         interests between such indemnified party and any other party
         represented by such counsel in such proceeding. The failure to deliver
         written notice to the indemnifying party within a reasonable time of
         the commencement of any such action, if prejudicial to its ability to
         defend such action, shall relieve such indemnifying party of any
         liability to the indemnified party under this paragraph, but the
         omission so to deliver written notice to the indemnifying party will
         not relieve it of any liability that it may have to any indemnified
         party otherwise than under this paragraph.

                (d) If the indemnification provided for in this Section is held
         by a court of competent jurisdiction to be unavailable to an
         indemnified party with respect to any loss, liability, claim, damage,
         or expense referred to therein, then the indemnifying party, in lieu to
         indemnifying such indemnified party hereunder, shall contribute to the
         amount paid or payable by such indemnified party as a result of such
         loss, liability, claim, damage, or expense in such proportion as is
         appropriate to reflect the relative fault of the

                                       11
<PAGE>

         indemnifying party on the one hand and of the indemnified party on the
         other in connection with the statements or omissions that resulted in
         such loss, liability, claim, damage, or expense as well as any other
         relevant equitable considerations. The relative fault of the
         indemnifying party and of the indemnified party shall be determined by
         reference to, among other things, whether the untrue or alleged untrue
         statement of a material fact or the omission to state a material fact
         relates to information supplied by the indemnifying party or by the
         indemnified party and the parties' relating intent, knowledge, access
         to information, and opportunity to correct or prevent such statement
         or omission. Notwithstanding the foregoing provision, the contribution
         obligation of each Holder shall not exceed the amount received by that
         Holder from the sale of securities pursuant to the registration
         statement.

                (e) Notwithstanding the foregoing, to the extent that the
         provisions on indemnification and contribution contained in the
         underwriting agreement entered into in connection with an underwritten
         public officer are in conflict with the foregoing provisions, the
         provisions in the underwriting agreement shall control.

                (f) The obligations of the Company and Holders under this
         paragraph shall survive the completion of any offering of Registrable
         Securities pursuant to a registration statement.

         14. CURRENT PUBLIC INFORMATION. With a view to making available the
benefits of certain rules and regulations of the SEC which may at any time
permit the sale of the Restricted Securities to the public without registration,
after such time as the Shares have been held, either separately or in the
aggregate, to the extent tacking of holding period is permitted under the
Securities Act, to satisfy the requirements of paragraph (d) or Rule 144 through
the date after which the Restricted Securities can be resold without restriction
and without complying with Rule 144 pursuant to the provisions of paragraph (k)
of Rule 144 or any successor rule, the Company agrees to use its best efforts
to:

                (a) Make and keep public information available, as those terms
         are understood and defined in Rule 144 under the Securities Act, at all
         times after the effective date that the Company becomes subject to the
         reporting requirements of Section 13 or 15(d) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act");

                (b) File with the SEC in a timely manner all reports and other
         documents required of the Company under the Exchange Act (at any time
         after it has become subject to such reporting requirements); and

                (c) Furnish to the Holders forthwith upon request a written
         statement by the Company as to its compliance with the reporting
         requirements of said Rule 144 (at any time after 90 days after the
         effective date of the first registration statement filed by the Company
         for an offering of its securities to the general public) and of the
         Exchange Act (at any time after it has become subject to such reporting
         requirements), a copy of the

                                       12
<PAGE>

         most recent annual or quarterly report of the Company, and such other
         reports and documents of the Company as an Investor may reasonably
         request in availing itself of any rule or regulation of the SEC
         allowing an Investor to sell any such securities without registration.

         15. TRANSFER OF REGISTRATION RIGHTS. The rights and all related
obligations under this Agreement shall automatically be transferred to and
binding on any transferee or assignee of the Registrable Securities; PROVIDED
THAT: (a) the Company is, within a reasonable time after such transfer,
furnished with written notice of the name and address of such transferee or
assignee and the securities with respect to which such registration rights are
being assigned; (b) such transferee or assignee agrees in writing to be bound by
and subject to the terms and conditions of this Agreement; (c) the transfer or
assignment is in compliance with the Securities Act and applicable state
securities laws or an exemption from the registration requirements of the
Securities Act and applicable state securities laws; and (d) such assignment
shall be effective only if immediately following such transfer the further
disposition of such securities by the transferee or assignee is restricted under
the Securities Act.

         16. "MARKET STAND-OFF" AGREEMENT. In order to facilitate the
possibility of future public offerings of Common Stock, the Holder and any
subsequent Holder agree that the shares of Common Stock included in the
Registrable Securities will not be resold during a period commencing fifteen
(15) days preceding the effective date of a registration statement under the
Securities Act for a public offering for cash by the Company of its Common Stock
or securities convertible into or exercisable or exchangeable for its Common
Stock and continuing until the earlier of abandonment of the proposed public
offering or ninety (90) days following the date of the last closing in the
public offering period. Holders of such securities shall cooperate with the
Company in providing reasonable written assurances respecting the foregoing to
the underwriter of any such public offering. During the above restricted period,
Holders shall not directly or indirectly sell, offer to sell, contract to sell
(including any short sale), grant any option to purchase or otherwise transfer
or dispose of (other than to donees who agree to be similarly bound) shares of
Common Stock included in the Registrable Securities at any time during such
period except securities included in such registration. In order to enforce the
foregoing covenant, the Company may impose stop-transfer instructions with
respect to such shares of Common Stock held by each Holder, which shall be
binding on any assignee or successor of such Holder (and the shares or
securities of every other person subject to the foregoing restriction), until
the end of such restricted period.

         17.    MISCELLANEOUS.

                (a) Other Holders of Preferred Stock or Registrable Securities
         may become parties to this Agreement by the execution of the Joinder
         attached hereto as Exhibit A and the delivery thereof by such Holder to
         the Company and other Holders. From and after such execution and
         delivery, any person becoming a party hereto shall be deemed to be a
         "Holder." To the extent that any shares of Preferred Stock or
         Registrable Securities are issued to a person or entity that subscribes
         to purchase Preferred Stock on terms substantially identical to those
         set forth in the Agreement, the Holders consent to the admission of any
         such new Holder.

                                       13
<PAGE>

                (b) Except as otherwise provided herein, the terms and
         conditions of this Agreement shall inure to the benefit of and be
         binding upon the respective successors and assigns of the parties
         (including permitted transferees of any shares of Registrable
         Securities). Nothing in this Agreement, express or implied, is intended
         to confer upon any party other than the parties hereto or
         their respective successors and assigns any rights, remedies,
         obligations, or liabilities under or by reason of this Agreement,
         except as expressly provided in this Agreement.

                (c) This Agreement shall be governed by and construed under the
         laws of the State of Utah.

                (d) 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.

                (f) The titles and subtitles used in this Agreement are used for
         convenience only and are not to be considered in construing or
         interpreting this Agreement.

                (g) This Agreement may be executed in one or more counterparts
         of like tenor, each of which shall be deemed an original, and all of
         which taken together shall be considered a single instrument.

                (h) Unless otherwise provided, any notice required or permitted
         under this Agreement shall be given in writing and shall be deemed
         effectively given if delivered personally or by facsimile transmission
         (if receipt is confirmed by the facsimile operator of the recipient),
         or delivered by overnight courier service or mailed by registered or
         certified mail (return receipt requested), postage prepaid, to the
         parties at the address indicated for such party on the signature page
         hereof. For the purposes of any notice required to be given to Holders,
         the Company can rely on the address for the registered holder of the
         securities in question as reflected on its stock transfer records, and
         such notice shall be deemed adequate notice to the original or any
         subsequent Holder. Any notice hereunder delivered in person or by
         facsimile (if receipt is confirmed by the facsimile operator of the
         recipient) shall be deemed given on the date hereof; any notice by
         registered or certified mail shall be deemed given three days after the
         date of mailing; and any notice by overnight courier shall be deemed
         given two days after shipment or the date of receipt, whichever is
         earlier, PROVIDED that notices of a change of address shall be
         effectively only upon receipt thereof.

                (i) If any action at law or in equity is necessary to enforce or
         interpret the terms of this Agreement, the prevailing party shall be
         entitled to reasonable attorneys' fees, costs and necessary
         disbursements in addition to any other relief to which such party may
         be entitled.

                                       14
<PAGE>

                (j) The parties hereby specifically acknowledge that monetary
         damages for breach of this Agreement may be difficult to determine
         and/or inadequate to compensate the parties for such breach and hereby
         agree that, in the event of any breach, the parties, in addition to any
         other remedies they may have under the terms of this Agreement or at
         law, shall have the right to bring an action in equity for an
         injunction against the breach or threatened breach or seeking specific
         performance of the obligations of the other party under the terms of
         this Agreement.

                (k) Any term of this Agreement may be amended and the observance
         of any term of this Agreement may be waived (either generally or in a
         particular instance and either retroactively or prospectively), only
         with the written consent of the Company and the Holders of at least
         two-thirds of the Registrable Securities then outstanding. Any
         amendment or waiver effected in accordance with this paragraph shall be
         binding upon each Holder of any Registrable Securities then
         outstanding, each future holder of all such Registrable Securities, and
         the Company.

                (l) If one or more provisions of this Agreement are held to be
         unenforceable under applicable law, such provision shall be excluded
         from this Agreement, and the balance of the Agreement shall be
         interpreted as if such provision were so excluded and shall be
         enforceable in accordance with its terms.

                (m) All shares of Registrable Securities held or acquired by
         affiliated entities or persons shall be aggregated together for the
         purpose of determining the availability of any rights under this
         Agreement.

                (n) This Agreement constitutes the full and entire understanding
         and agreement between the parties with regard to the subject matter
         hereof.

         IN WITNESS WHEREOF, the parties have executed this Agreement this 30th
day of September, 1999.

                                               ROOMSYSTEMS, INC.

                                     By:       /s/ Steven L. Sunyich, CEO
                                               ---------------------------
                                               Duly authorized officer

                                       15
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT
                           COUNTERPART SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned Holder has caused this Registration
Rights Agreement to be executed to be effective as of the date of the Agreement.

                                ASH CAPITAL, LLC
                          By PROVIDENCE MANAGEMENT, LLC

                                     By:   /s/ James C. Savas
                                           -----------------------
                                     Manager

                                     Printed Name: James C. Savas
                                                   ---------------------------

                                                   1400 South Foothill Drive,
                                     Address:      Suite B25
                                                   ---------------------------
                                                   Salt Lake City, Utah 84108
                                                   ---------------------------

                                       16
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT
                           COUNTERPART SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned Holder has caused this Registration
Rights Agreement to be executed to be effective as of the date of the Agreement.

                              SKM INVESTMENTS, LLC
                          By PROVIDENCE MANAGEMENT, LLC

                                     By: /s/ James C. Savas
                                         ----------------------------
                                     Manager

                                     Printed Name: James C. Savas
                                                   -----------------------------

                                                   1400 South Foothill Drive,
                                     Address:      Suite B25
                                                   -----------------------------
                                                   Salt Lake City, Utah 84108
                                                   -----------------------------

                                       17
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT
                           COUNTERPART SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned Holder has caused this Registration
Rights Agreement to be executed to be effective as of the date of the Agreement.

                              C&W/RSI PARTNERS, LLC

                                     By: /s/ Gregg T. Christensen
                                         ---------------------------------------
                                     Manager

                                     Printed Name:  Gregg T. Christensen
                                                   -----------------------------

                                                    1245 E. Brickyard Road,
                                     Address:       No. 350
                                              ----------------------------------
                                                    Salt Lake City, Utah 84106
                                              ----------------------------------

                                       18
<PAGE>

                          REGISTRATION RIGHTS AGREEMENT
                           COUNTERPART SIGNATURE PAGE

         IN WITNESS WHEREOF, the undersigned Holder has caused this Registration
Rights Agreement to be executed to be effective as of the date of the Agreement.

                                   THUNDER MOUNTAIN PROPERTIES, LC

                                   By:  /s/ McKay S. Matthews
                                       ----------------------------------------
                                       Manager

                                       Printed Name:  McKay S. Matthews
                                                      -------------------------

                                                891 E. 280 N.,
                                     Address:   Orem, Utah 84097
                                                -------------------------------

                                       19
<PAGE>

                                   JOINDER IN
                          REGISTRATION RIGHTS AGREEMENT

         THIS JOINDER IN REGISTRATION RIGHTS AGREEMENT (this "Joinder") is made
and entered into effective _____________, ____, among ROOMSYSTEMS, INC., a
Nevada corporation (the "Company"), the Holders (as defined in the Registration
Rights Agreement), and _____________ ("New Holder") who has purchased shares of
Preferred Stock.

                                    PREMISES:

          A. New Holder has, contemporaneously with the execution of this
Joinder, acquired, of record and beneficially, ______ shares (the "Shares") of
6% Series B Convertible Preferred Stock ("Preferred Stock") of the Company.

          B. The Company and certain Holders of the Preferred Stock are parties
to a Registration Rights Agreement (herein so called) dated August ___, 1999,
under which the Company has granted to Holders certain registration rights with
respect to the resale of their Registrable Securities (as defined in the
Registration Rights Agreement).

          C. New Holder desires to become a party to the Registration Rights
Agreement.

                                   AGREEMENT:

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other valuable consideration, receipt of which is
hereby acknowledged, it is hereby agreed among the parties hereto as follows:

         1. Pursuant to Section 17(a) of the Registration Rights Agreement, New
Holder hereby subjects the Shares to the Registration Rights Agreement and
consents and agrees to be bound by the Registration Rights Agreement as a Holder
under the Registration Rights Agreement for all purposes.

         2. New Holder hereby joins in and agrees to be bound by all of terms
and conditions of the Registration Rights Agreement as if an original signature
thereto.

         3. New Holder hereby specifies the address set forth beneath New
Holder's signature below as the address at which any notice is to be given to
such New Holder pursuant to Section 17(h) of the Registration Rights Agreement
(subject to the right of New Holder to specify a different address).

                                       20
<PAGE>

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

                                   NEW HOLDER:

                                  Address:     --------------------------------
                                               --------------------------------

                                  ROOMSYSTEMS, INC.

                                  By:
                                     ------------------------------------------
                                                                    , President

                                       21

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