Document:

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                                                                   Exhibit 10.12

                            INDEMNIFICATION AGREEMENT

      THIS INDEMNIFICATION AGREEMENT (this "Agreement"), dated as of September
28,1999, is made between RoomSystems, Inc., a Nevada corporation
("RoomSystems"), RSi BRE, Inc., a Nevada corporation (the "Company"), and
DONNELLY PREHN ("Indemnitee")

                                R E C I T A L S :

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

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

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

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

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

                               A G R E E M E N T:

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

1.    Indemnification of Indemnitee

            1.1 Scope. RoomSystems and the Company, jointly and severally, agree
to hold harmless and indemnify Indemnitee to the full extent provided under the
provisions of the Company's Articles and Bylaws, and to the full extent
permitted by law, notwithstanding that the basis for such indemnification is not
specifically enumerated in this Agreement, the Company's Articles, the Bylaws,
any statute or otherwise. In the event of any change, after the date of this
Agreement, in any applicable law, statute or rule regarding the right of a
Nevada corporation to indemnify a member of its board of directors or an
officer, such change, to the extent that it would expand Indemnitee's rights
hereunder, shall be included within Indemnitee's rights and RoomSystems' and the
Company's obligations hereunder, and, to the extent that it would narrow
Indemnitee's rights or RoomSystems' or the Company's obligations hereunder,
shall not affect or limit the scope of this Agreement; provided, however, that
in no event shall any part of this Agreement be construed so as to require
indemnification when such indemnification is not permitted by then applicable
law.

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

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

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

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

            1.6 Contribution. If the indemnification provided under Section 1.1
is unavailable by reason of a court decision, based on grounds other than any of
those set forth in unavailable by reason of a court decision, based on grounds
other than any of those set forth in paragraphs (b) through (d) of Section 4.1,
then, in respect of any Proceeding in which the Company is jointly liable with
Indemnitee (or would be if joined in such Proceeding), RoomSystems and/or the
Company shall contribute to the amount of Damages (including

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attorneys' fees) actually and reasonably incurred and paid or payable by
Indemnitee in such proportion as is appropriate to reflect (i) the relative
benefits received by the Company on the one hand and Indemnitee on the other
hand from the transaction from which such Proceeding arose, and (ii) the
relative fault of the Company on the one hand and of Indemnitee on the other
hand in connection with the events that resulted in such Damages, as well as any
other relevant equitable considerations. The relative fault of the Company on
the one hand and of Indemnitee on the other hand shall be determined by
reference to, among other things, the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent the circumstances
resulting in such Damages. RoomSystems and the Company agree that it would not
be just and equitable if contribution pursuant to this Section 1.6 were
determined by pro rata allocation or any other method of allocation that does
not take account of the foregoing equitable considerations.

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

      2.    Expense Advances.

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

            2.2 Conditions to Expense Advance. RoomSystems' and the Company's
obligation to provide an Expense Advance is subject to the following conditions:

                  (a) Undertaking. If the Proceeding arose in connection with
            Indemnitee's service as a director of the Company (and not in any
            other capacity in which Indemnitee rendered service, including
            service to any Related Company), then Indemnitee or Indemnitee's
            representative shall have executed and delivered to the Company an
            undertaking, which need not be secured and shall be accepted without
            reference to Indemnitee's financial ability to make repayment, by or
            on behalf of Indemnitee to repay all Expense Advances if it shall
            ultimately be determined by a final, unappealable decision rendered
            by a court having jurisdiction over the parties that Indemnitee is
            not entitled to be indemnified under this Agreement.

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

                  (c) Affirmation. Indemnitee shall furnish, upon request by
            RoomSystems or the Company and if required under applicable law, a
            written

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            affirmation of Indemnitee's good faith belief that any applicable
            standards of conduct have been met by Indemnitee.

      3.    Procedures for Enforcement.

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

            3.2 Presumptions in Enforcement Action. In any Enforcement Action,
the following presumptions (and limitations on presumptions) shall apply:

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

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

            3.3 Attorneys' Fees and Expenses for Enforcement Action. In the
event Indemnitee is required to bring an Enforcement Action, RoomSystems and/or
the Company shall pay all of Indemnitee's fees and expenses in bringing and
pursuing the Enforcement Action (including attorneys' fees at any stage,
including on appeal); provided, however, that neither RoomSystems nor the
Company shall be required to provided such payment for such attorneys' fees or
expenses if a court of competent jurisdiction determines that each of the
material assertions made by Indemnitee in such Enforcement Action was not made
in good faith.

      4.    Limitations on Indemnity; Mutual Acknowledgment.

            4.1 Limitation on Indemnity. No indemnity pursuant to this Agreement
shall be provided by RoomSystems or the Company:

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

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

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

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

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

            4.3 Mutual Acknowledgment. RoomSystems and the Company and
Indemnitee acknowledge that, in certain instances, federal law or public policy
may override applicable state law and prohibit RoomSystems and the Company from
indemnifying Indemnitee under this Agreement or otherwise. For example, parties
acknowledge that the SEC has taken the position that indemnification is not
permissible for liabilities arising under certain federal securities laws, and
federal legislation prohibits indemnification for certain ERISA violations.
Furthermore, Indemnitee understands and acknowledges that RoomSystems may be
required in the future to undertake with the SEC to submit the question of
indemnification to a court in certain circumstances for a determination of its
right under public policy to indemnify Indemnitee.

      5.    Notification and Defense of Claim.

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

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

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

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

                  (b) RoomSystems and/or the Company may assume the defense
            thereof, with counsel satisfactory to Indemnitee. After notice from
            RoomSystems or the Company to Indemnitee of its/their election so to
            assume the defense thereof, neither RoomSystems nor the Company
            shall be liable to Indemnitee under this Agreement for any legal or
            other expenses (other than reasonable costs of investigation)
            subsequently incurred by Indemnitee in connection with the defense
            thereof unless (i) the employment of counsel by Indemnitee has been
            authorized by RoomSystems or the Company, (ii) Indemnitee shall have
            reasonably concluded that there may be a conflict of interest
            between RoomSystems and/or the Company (or any other person or
            persons included in the joint defense) and Indemnitee in the conduct
            of the defense of such action, (iii) neither RoomSystems nor the
            Company shall have, in fact, employed counsel to assume the defense
            of such action, in each of which cases the fees and expenses of
            counsel shall be at RoomSystems' and the Company's expense, or (iv)
            either RoomSystems or the Company is not financially or legally able
            to perform its indemnification obligations. Neither RoomSystems nor
            the Company shall be entitled to assume the defense of any
            proceeding brought by or on behalf of RoomSystems and/or the Company
            or as to which Indemnitee shall have reasonably made the conclusion
            provided for in clause (ii) or (iv) above;

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

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

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

      6.    Severability.

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

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      7.    Governing Law; Attorneys' Fees.

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

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

      8.    Binding Effect.

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

      9.    Entire Agreement.

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

      10.   Counterparts.

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

      11.   Amendment and Termination.

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

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      12.   Waivers.

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

13.   Notices.

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

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

                  To RoomSystems and

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

                  If to Indemnitee:           Donnelly Prehn
                                              412 E. ParkCenter Blvd., Suite 300
                                              Boise, Idaho 837006
                                              Telephone: 208/333-2072
                                              Fax Number: 108/343-1145

                  With a copy to:             AMRESCO Leasing Corporation
                                              Attention:  William C. Cole, Esq.
                                              412 E. Park Center Blvd.,
                                              Suite 300
                                              Boise, Idaho  83702
                                              Telephone:  208/333-2000
                                              Fax number:  208/333-2050

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

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

      Notices delivered by mail shall be deemed given five (5) Business Days
after being deposited in the United States mail, return receipt requested.
Notices delivered by hand, by facsimile, or by a nationally recognized private
carrier shall be deemed given on the first

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Business Day following receipt; provided, however, that a notice delivered by
facsimile shall only be effective if such notice is also delivered by hand, or
deposited in the United States mail, postage prepaid, registered or certified
mail, on or before two (2) Business Days after it is delivered by facsimile. Any
party may hereinafter designate other addresses to which notice may be sent,
upon written notice sent to the other parties at the address above designated,
or subsequently designated in accordance herewith.

14.   Directors' and Officers' Insurance.

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

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

      15.   Specific Performance.

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

      16.   Subrogation.

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

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

                                 COMPANY:

                                 RSi BRE, Inc.

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                                 By:      /s/ Steven L. Sunyich
                                          --------------------------------------
                                 Its:     CEO
                                          --------------------------------------

                                 ROOMSYSTEMS:

                                 ROOMSYSTEMS, INC.

                                 By:      /s/ Steven L. Sunyich
                                          --------------------------------------
                                 Its:     CEO
                                          --------------------------------------

                                 INDEMNITEE:

                                          /s/ Donnelly Prehn

                                 -----------------------------------------------
                                 Donnelly Prehn<PAGE>

                                                                   Exhibit 10.13

                          EQUIPMENT TRANSFER AGREEMENT

      THIS EQUIPMENT TRANSFER AGREEMENT ("Agreement") is entered into effective
as of the 28th day of September, 1999, by and among ROOMSYSTEMS, INC., a Nevada
corporation ("RSi"), ROOMSYSTEMS INTERNATIONAL CORPORATION, a Nevada
corporation, and a wholly-owned subsidiary of RSi, d/b/a RoomSystems
International Funding Corporation ("RIC"), and Rsi BRE, Inc., a Nevada
corporation and a wholly-owned subsidiary of Rsi ("RSi BRE") (RSi and RIC are
collectively referred to as "RoomSystems"), on the one hand; and RSG
INVESTMENTS, LLC, an Idaho limited liability company ("RSG"), on the other hand.

                                R E C I T A L S:

      A. RSG and RoomSystems have entered into that certain Equipment Purchase
and Sale Agreement, dated as of July 17, 1998 ("Master Agreement"), as
supplemented and amended by (i) those certain letter agreements dated as of
February 18, 1999, and May 19, 1999 (the "Letter Agreements"). Capitalized terms
used but not defined herein shall have the meanings ascribed to such terms in
the Master Agreement and Letter Agreements, as applicable.

      B. Pursuant to the Master Agreement, RSG purchased certain automated
refreshment centers (including related network computer systems and attached
automated room safes, if any) (the "Units"), and took an assignment of certain
related Hotel Revenue Sharing Lease Agreements (the "Revenue Sharing
Contracts").

      C. RoomSystems has formed RSi BRE as a bankruptcy-remote entity for the
specific and sole purpose of purchasing the Units and taking an assignment of
the Revenue Sharing Contracts from RSG, all on the terms and conditions set
forth in this Agreement.

                               A G R E E M E N T:

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

1.    SALE OF EQUIPMENT; ASSIGNMENT OF REVENUE SHARING CONTRACTS.

      1.1   Sale and Transfer of Equipment.

      At Closing (as defined in Section 4.1 hereof), RSG agrees to sell,
transfer and convey to RSi BRE, and RSi BRE agrees to purchase and acquire from
RSG, those Units identified in the Equipment Schedules attached to the Revenue
Sharing Contracts identified in EXHIBIT A hereto, together with all
replacements, parts, repairs, additions, attachments and accessories related
thereto (the "Equipment"). THE EQUIPMENT IS BEING SOLD "AS IS" AND "WITH ALL
FAULTS," AND RSG MAKES NO WARRANTIES WITH RESPECT TO THE EQUIPMENT, EXPRESSED OR
IMPLIED, INCLUDING, BUT NOT LIMITED TO, MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, OR OTHER WARRANTIES THAT MIGHT ARISE FROM COURSE OF DEALING
OR CUSTOM OF TRADE.

                                      -1-
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      1.2   Assignment of Revenue Sharing Contracts.

      At Closing, RSG shall assign to RSi BRE all of its right, title and
interest in, to and under the Revenue Sharing Contracts, together with all
Attachments thereto. RSG shall assign its rights and benefits in and to the
Revenue Sharing Contracts pursuant to an Assignment of Revenue Sharing Contracts
("Assignment"), a form of which is attached as EXHIBIT B hereto. RoomSystems
acknowledges that it has true and complete copies of all the Revenue Sharing
Contracts. THE REVENUE SHARING CONTRACTS ARE BEING TRANSFERRED AND ASSIGNED TO
RSi BRE "AS IS," AND RSG MAKES NO WARRANTIES WITH RESPECT TO THE REVENUE SHARING
CONTRACTS, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ENFORCEABILITY
OR WHETHER ANY PARTY IS IN DEFAULT THEREUNDER.

      1.3   Substitution and Termination of Repurchase Obligation.

      The sale and transfer of the Equipment and the Revenue Sharing Contracts
provided for in this Agreement, is in full substitution of, and shall operate to
automatically terminate as of the Closing Date, the Repurchase Obligation of
RoomSystems set forth in the Master Agreement.

      1.4   Transfer and Termination of Pledge of RSi Stock.

      In addition to termination of the Repurchase Obligation provided above,
the sale and transfer of the Equipment and the Revenue Sharing Contracts
provided for in this Agreement, shall operate to (i) transfer to the
shareholders of RSi all of RSG's ownership interest in the 51% of RSi's voting
common stock ("RSi Stock"), and (ii) terminate as of the Closing Date RSG's
pledge and security interest in the RSi Stock under that certain Stock Pledge
Agreement dated July 17, 1999. At Closing, RSG shall deliver, or cause to be
delivered, to RoomSystems, on behalf of the shareholders of RSi (other than
Royal Minson, who shall receive his certificate(s) directly from RSG), the stock
certificates representing such shares of RSi Stock, along with stock powers duly
endorsed for transfer, and a written acknowledgment of the termination of the
related pledge and security interest.

      1.5   Related Agreements.

      At Closing, the applicable parties shall execute and deliver in accordance
with Section 4.2, in each case as described and defined in this Agreement, the
Assignment, the Indemnification Agreement, the Note, the Security Agreement, the
Guaranty, the Financing Statements, the Escrow Agreement and the First Amendment
to Investor Rights Agreement (collectively, the "Related Agreements").

2.    FORMATION AND OPERATION OF RSi BRE.

      2.1   Articles of Incorporation.

      RSi BRE has been formed under the laws of the State of Nevada, with the
filing of Articles of Incorporation ("Articles") with the Nevada Secretary of
State. A file-stamped copy of the Articles of Incorporation of RSi BRE is
attached as EXHIBIT C hereto. It is the intent of the parties that RSi BRE be a
"bankruptcy remote" entity, separate and apart from the liabilities

                                      -2-
<PAGE>

and obligations of RoomSystems (except as specifically provided in the
Articles), and RoomSystems covenants and agrees to operate RSi BRE consistent
with such intent, in accordance with the restrictions and limitations set forth
in the Articles and in this Agreement.

      2.2   Issuance of Shares.

      The capitalization of RSi BRE consists of 100 shares of common voting
stock, no par value per share, of which 100 shares are issued and outstanding,
and held of record and beneficially by RSi as the sole shareholder of RSi BRE.
At Closing, RSi BRE shall have issued stock certificate no. 1 to RSi,
representing the aforementioned 100 shares of RSi BRE common voting stock (the
"RSi BRE Shares"), which such certificate shall be delivered to the Stock and
Contract Escrow Agent as defined in and pursuant to Section 3.4(d) of this
Agreement.

      2.3   Capital Contributions.

            (a) Cash Contributions. At Closing, or as soon thereafter as
possible, but in all events within the Initial Condition Subsequent Period (as
defined in Section 4.1(b) hereof), RSi, as the sole shareholder of RSi BRE,
shall cause the cash capital contributions described in this Section 2.3 to be
transferred from its current escrow account with US Bank National Association
(the "Escrow Agent"), specifically identified as Escrow Account Nos. 97236790,
97236791 and 97236792 (the "RSi Escrow") to the RSi BRE escrow (the "RSi BRE
Escrow"), which shall be identified in writing to RSG (and for purposes of this
Agreement shall be controlled by the Board of Directors of RSi BRE), as follows:

                  (i) RSi will direct the Escrow Agent, in writing, to make a
      cash contribution to RSi BRE in the amount of $371,951 in immediately
      available funds into the RSi BRE Escrow, to enable RSi BRE to satisfy its
      obligations under Section 3.1(a) of this Agreement; and

                  (ii) RSi will direct the Escrow Agent, in writing, to make an
      additional cash contribution to RSi BRE in immediately available funds
      into the RSi BRE Escrow of the lesser of (i) $750,000, or (ii) $750,000
      less a credit for prior assets purchased by or on behalf of RSi BRE, to be
      agreed upon unanimously by the RSi BRE Board of Directors.

            (b) Stock Contribution. At Closing, or as soon thereafter as
possible, but in all events within the Second Condition Subsequent Period (as
defined in Section 4.1(b) hereof), RSi will contribute to the capital of RSi BRE
the amount of 166,667 shares of RSi's Series B Preferred Stock (the "RSI
Shares"), to enable RSi BRE to satisfy its obligations under Section 3.1(b) of
this Agreement.

      2.4   Use of Proceeds.

      RSi BRE covenants and agrees to use the capital contributions from
RoomSystems described in Section 2.3 as follows: (i) to pay the Cash Portion of
the Purchase Price as described in Section 3.1(a); (ii) to pay the Stock Portion
of the Purchase Price as provided in Section 3.1(b); and (iii) the balance of
the cash contributions, as determined and approved by the unanimous vote of the
Board of Directors of RSi BRE; provided, however, it is acknowledged

                                      -3-
<PAGE>

and agreed that the primary purpose of such funds is to manufacture, install and
render fully operational by May 1, 2000, at least 750 new Units in hotels to be
covered under future revenue sharing contracts ("New BRE Units"). RoomSystems
acknowledges and agrees that the New BRE Units, and their related revenue
sharing contracts ("New BRE Revenue Sharing Contracts"), shall be the sole and
exclusive property of RSi BRE. In the event a new revenue sharing contract is
entered into by RoomSystems on behalf of RSi BRE, RoomSystems promptly will
assign to RSi BRE all of its ownership rights in such contract. All
disbursements out of the RSi BRE Escrow will be determined by the unanimous
consent of the Board of Directors of RSi BRE.

      2.5   Board of Directors.

      The parties acknowledge that the Board of Directors of RSi BRE shall
consist of three persons: Derek Ellis, Donnelly Prehn, and an independent
director to be named by RoomSystems. In connection with the formation of RSi
BRE, (i) RSi BRE covenants and agrees to obtain directors' and officers'
insurance insuring the Board of Directors of RSi BRE on and after the Closing
Date, and (ii) at Closing, RoomSystems and RSi BRE will enter into that certain
Indemnification Agreement with Donnelly Prehn ("Indemnification Agreement"), in
the form attached as EXHIBIT D hereto. The insurance provided for in this
Section 2.5 may consist of an umbrella D&O policy maintained by RoomSystems, and
covering RSi BRE directors and officers.

      2.6   Forbearance of RoomSystems.

      In consideration of the transactions contemplated by this Agreement,
RoomSystems an RSi BRE hereby irrevocably covenant to refrain from, directly or
indirectly, asserting any claim or demand, or commencing, instituting or causing
to be commenced any lawsuit or proceeding of any kind against any Donnelly
Prehn, based upon any action or inaction of Donnelly Prehn as a director of RSi
BRE; provided, that any such action or inaction does not involve actual fraud or
an illegal criminal act on the part of Donnelly Prehn.

      2.7   Operation of RSi BRE.

      RoomSystems covenants, acknowledges and agrees that the following
operational limits, procedures, policies and limitations shall apply to RSi BRE,
and the ownership and operation of the New BRE Units and New BRE Revenue Sharing
Contracts:

            (a) Substitution of Units. RoomSystems shall have the right to
substitute other mini-bar units owned by RoomSystems for the New BRE Units
consistent with RoomSystem's past practice relating to periodic "seasoning" of
its mini-bar units; provided, however, that any mini-bar units so substituted
shall have equivalent economic value to the New BRE Units, and such substitution
shall require the unanimous approval of the Board of Directors of RSi BRE.

            (b) Treatment of Equipment and New BRE Units. In the event a Hotel
determines to deliver back to RSi BRE any Equipment or New BRE Units at the end
of the contract term for the related Revenue Sharing Contract or New BRE Revenue
Sharing Contract,

                                      -4-
<PAGE>

as the case may be, such Equipment and New BRE Units shall be refurbished and
redeployed in a manner consistent with past practice and RoomSystem's treatment
of its other mini-bar units.

      2.8 Back-up Servicer Data. Within ninety (90) days of the Closing Date,
RoomSystems shall cause all computer data necessary for the servicing and
maintenance of the Equipment and the New BRE Units to be installed in the RSG
computer system at its Boise, Idaho office, such that RSG can operate, if
necessary, as the servicer of the Equipment and New BRE Units.

      2.9 Voting Agreement. By execution and delivery of this Agreement, RSi, as
the sole shareholder of RSi BRE, covenants and agrees as follows:

            (a) Voting for Directors. At each election of directors, RSi shall
vote all of its 100 shares of RSi BRE common stock (the "RSi BRE Shares") for
the election as a member of RSi BRE's Board of Directors: Donnelly Prehn, or his
designee.

            (b) Rights of Shareholder. Except as provided by this Section 2.9
and the Articles of Incorporation of RSi BRE, RSi shall exercise the full rights
of a shareholder with respect to the RSi BRE Shares.

3.    CONSIDERATION AND SECURITY.

      3.1   Purchase Price.

      The consideration to be paid to RSG for the sale and transfer of the
Equipment and the Revenue Sharing Contracts to RSi BRE shall be One Million Six
Hundred Twenty-One Thousand Nine Hundred Fifty-One and no/100 Dollars
($1,621,951.00) (the "Purchase Price"), plus certain cash amounts described in
Section 3.2 below. The Purchase Price shall be paid as follows:

            (a) Cash Portion of the Purchase Price. RSi BRE shall pay the sum of
Three Hundred Seventy-One Thousand Nine Hundred and Fifty-One and no/Dollars
($371,951) in immediately available funds (the "Cash Portion of the Purchase
Price").

            (b) Stock Portion of the Purchase Price. RSi BRE shall irrevocably
transfer and deliver to RSG the 166,667 RSi Shares referenced in Section 2.3
above (the "Stock Portion of the Purchase Price"), free and clear of any liens,
claims, encumbrances or restrictions whatsoever (other than restrictions imposed
by Federal and state securities laws). The parties acknowledge that the
agreed-upon value of the Stock Portion of the Purchase Price is $500,000, or
approximately $3.00 per share.

            (c) Promissory Note. The balance of the Purchase Price ($750,000)
will be represented by an Equipment Purchase Promissory Note (the "Note"), in
the form attached as EXHIBIT E hereto. ----

      3.2   Additional Consideration.

                                      -5-
<PAGE>

            (a) Additional Consideration to RSG. As additional consideration for
the sale and transfer of the Equipment and the Revenue Sharing Contracts, RSG
shall receive the following:

                  (i) Payment Allocation Schedule. From and after the Closing
      Date, RSG shall be entitled to receive an allocation of all Payments from
      the Revenue Sharing Contracts and the New BRE Revenue Sharing Contracts in
      accordance with the terms and conditions set forth on EXHIBIT F hereto
      (the "Payment Allocation Schedule"). The parties acknowledge and agree
      that the Payment Allocation Schedule shall operate as and be deemed an
      amendment to the Lockbox Agreement, which shall remain in full force and
      effect and, from and after the Closing Date, all monies received into the
      Lockbox Account shall be distributed in accordance with the Payment
      Allocation Schedule.

                  (ii) Reimbursement of Legal Expenses. At Closing, RoomSystems
      shall reimburse RSG for its legal costs, fees and expenses incurred in
      connection with the amendments to the Master Agreement, and the
      preparation of this Agreement and the Related Agreements, during the
      period from January 1, 1999 through the Closing Date. RSG shall provide
      RoomSystems with invoice(s) from its outside counsel detailing the amount
      of such costs, fees and expenses.

                  (iii) Sale of Equipment and New BRE Units. At the end of the
      contract term of each of the existing Revenue Sharing Contracts and of any
      New BRE Revenue Sharing Contracts, in the event the applicable Hotel
      determines to purchase the Equipment or New BRE Units, as provided in the
      related Revenue Sharing Contract or New BRE Revenue Sharing Contract, as
      applicable, all of the revenue from such sale(s) shall be remitted
      promptly to RSG.

      (b) Additional Consideration to RoomSystems and RSi BRE. As additional
consideration for the transactions contemplated herein, RoomSystems and RSi BRE
shall receive the following:

                  (i) Lockbox Account. RSi shall retain all cash amounts as of
      the Closing Date retained in the LockBox Account established pursuant to
      the Lockbox Agreement between RoomSystems and RSG, dated as of April
      30,1999, including the 11(cent) per Unit per day allocated to RoomSystems'
      operating account for a tax and service and maintenance reserve for each
      day a Unit is operational, as provided in the Lockbox Agreement. The
      parties agree that the Lockbox Agreement (A) shall remain in full force
      and effect, as modified by the Payment Allocation Schedule provided for in
      Section 3.2(a)(i) above, and (B) shall apply to all revenues received from
      the Equipment and New BRE Units and their related Revenue Sharing
      Contracts and New BRE Revenue Sharing Contracts, as applicable.

                  (ii) Termination of Rights. The substitution and termination
      of RoomSystems' Repurchase Obligation and the termination of all of RSG's
      interest and right in the RSi Stock provided for in Section 1.3 and 1.4,

                                      -6-
<PAGE>

      respectively, shall be deemed by the parties to be consideration for the
      transactions contemplated by this Agreement.

                  (iii) Cancellation of Warrants. As further consideration for
      the transactions represented by this Agreement, all Warrants heretofore
      granted to the principals of RSG shall be cancelled and terminated at
      Closing, and shall thereafter be null and void and be of no further force
      and effect. RSG shall cause the principals of RSG to execute and deliver
      at Closing such acknowledgements of cancellation as RoomSystems shall
      reasonably request.

      3.4   Security.

            (a) Grant of Pledge and Security Interest. As security for the
timely performance of all of RoomSystems' and/or RSi BRE's obligation under this
Agreement, the Note, and the Related Agreements (the "Secured Obligations"),
effective at Closing, RSi BRE and RoomSystems, as applicable, will grant to RSG,
until all of the Secured Obligations have been paid in full, the following:

                  (i) a first priority lien and security interest in the
      Equipment, the Revenue Sharing Contracts and any New BRE Revenue Sharing
      Contracts, and all other property and assets of RSi BRE (the
      "Collateral"), pursuant to the terms and conditions of a Security
      Agreement ("Security Agreement"), a form of which is attached as EXHIBIT G
      to this Agreement; and

                  (ii) a pledge of all of the RSi BRE Shares owned by RSi,
      pursuant to the terms of a Stock Pledge and Security Agreement ("Stock
      Pledge Agreement"), a form of which is attached as EXHIBIT H to this
      Agreement.

            (b) RoomSystems Guaranty. At Closing, RoomSystems will enter into
that certain Continuing and Unconditional Guaranty ("Guaranty"), in the form of
EXHIBIT I hereto, pursuant to which RoomSystems will guarantee the payment and
performance of the Secured Obligations applicable to RSi BRE.

            (c) UCC Financing Statements. At Closing, RSi BRE shall join with
RSG in executing appropriate UCC-1 financing statements for public filing,
representing RSG's security interest in the Collateral in Nevada and Idaho.
Simultaneously, RoomSystems will execute and deliver UCC-3 termination
statements, terminating its current security interest in the Equipment and
Revenue Sharing Contracts. Such UCC-1 and UCC-3 financing statements are
referred to herein collectively as the "Financing Statements." RoomSystems shall
pay all fees and other costs incurred in connection with the filing of the
Financing Statements.

            (d) Delivery of Possession. At Closing, RSi BRE and RoomSystems, as
applicable, will deliver physical possession of the originally executed Revenue
Sharing Contracts and the certificate representing the RSi BRE Shares to Hawley
Troxell Ennis & Hawley LLP (the "Stock and Contract Escrow Agent"), pursuant to
the terms and conditions of that certain Escrow Agreement ("Escrow Agreement"),
in the form of EXHIBIT J hereto, to be entered into by the parties at Closing.
Originals of any New BRE Revenue Sharing Contracts entered into by

                                      -7-
<PAGE>

RSi BRE, or by RoomSystems on behalf of RSi BRE, shall be promptly delivered to
the Stock and Contract Escrow Agent to be held as security under the terms of
the Escrow Agreement.

      3.5   Investor Rights Agreement.

      By execution and delivery of this Agreement, RoomSystems covenants,
acknowledges and agrees that, notwithstanding anything contained in this
Agreement or the cancellation of the Warrants provided above, the Investor
Rights Agreement, dated as of July 17, 1998, by and among RSi and the principals
of RSG shall remain in full force and effect and, at Closing, the parties shall
execute and deliver an amendment to such agreement (the "First Amendment to
Investor Rights Agreement"), in the form attached as EXHIBIT K hereto, providing
that all of the registration and other rights contained in such Agreement shall
apply to the Stock Portion of the Purchase Price to be received by RSG under
this Agreement.

      3.6   Taxes and Fees.

      Any sales, use or transfer taxes payable upon or with respect to the sale
of the Equipment shall be paid when due by RoomSystems and/or RSi BRE.

4.    CLOSING.

      4.1   Closing.

            (a) Closing and Closing Date. Except as provided in Section 4.1(b)
below, the closing of the transactions contemplated by this Agreement (the
"Closing"), including payment of the Purchase Price and the transfer of title to
the Equipment and Revenue Sharing Contracts as provided herein, shall take place
concurrently with the execution and delivery of this Agreement (the "Closing
Date"). The Closing shall be consummated by delivery of appropriate closing
documents agreed to by RoomSystems and RSG by overnight courier to the legal
counsel of the other party, at the addresses identified in writing by the
parties hereto. Such counsel shall hold all documents, instruments and
consideration delivered by the other party in escrow until the conditions
precedent to the Closing contained herein have been satisfied or waived by
appropriate written action of the affected party. The parties agree that time is
of the essence.

            (b) Conditions Subsequent. It is acknowledged and agreed that all of
the transactions contemplated by this Agreement will occur simultaneously at the
Closing; provided, however, that (i) RoomSystems and RSi BRE will have
seventy-two (72) hours from the Closing Date (the "Initial Condition Subsequent
Period") to (A) make and receive, as applicable, the cash capital contributions
to RSi BRE as required by Section 2.3, and (B) to pay to RSG the Cash Portion of
the Purchase Price as provided in Section 3.1(a); and (ii) RoomSystems and RSi
BRE will have ten (10) days from the Closing Date (the "Second Condition
Subsequent Period") to deliver to RSG the certificates representing the Stock
Portion of the Purchase Price as provided in Section 3.1(b).

                                      -8-
<PAGE>

            (c) Failure of Condition Subsequent. If RoomSystems and RSi BRE fail
to make the capital contributions and payment of the Cash Portion of the
Purchase Price by the end of the Initial Condition Subsequent Period, or deliver
the stock certificates representing the Stock Portion of the Purchase Price
within the Second Condition Subsequent Period, then this Agreement shall be null
and void ab initio and the Closing shall be deemed not to have occurred. In such
event, RoomSystems shall be in default under the Master Agreement and Letter
Agreements, and RSG shall have all of the rights and remedies under such
agreements and any security agreements related thereto.

      4.2   Deliveries at Closing.

            (a) Deliveries by RSG. Except as specifically provided otherwise in
this Agreement, at Closing, RSG shall deliver or cause to be delivered to
RoomSystems and RSi BRE, and such delivery shall be a condition to the
obligation of RoomSystems and RSi BRE to close hereunder:

                  (i) at such time as the initial and second conditions
      precedent identified in Section 4.1(b) above have been satisfied, a duly
      executed Bill of Sale ("Bill of Sale"), a form of which is attached as
      EXHIBIT L hereto and a duly executed Assignment;

                  (ii) a duly executed copy of each of the Related Agreements to
      which RSG is a party;

                  (iii) at such time as the initial and second conditions
      precedent identified in Section 4.1(b) have been satisfied, tock
      certificates representing the shares of RSi Stock which are being
      transferred to the shareholders of RSi (such delivery to be made to
      RoomSystems, on behalf of such shareholders, and RoomSystems hereby
      covenants and agrees to promptly deliver such certificates to the RSi
      shareholders; provided, however, that the stock certificate(s)
      representing shares of RSi Stock owned by Royal Minson and his affiliates
      shall be delivered directly by RSG to Mr. Minson); and

                  (iv) such other documents, agreements and instruments as
      RoomSystems and RSi BRE shall reasonably request.

      (b) Deliveries by RoomSystems and RSi BRE. At Closing (except as otherwise
provided), RoomSystems and Rsi BRE shall deliver or cause to be delivered to
RSG, as applicable, and such delivery is a condition to the obligation of RSG to
close hereunder:

                  (i) within the Initial Condition Subsequent Period, the Cash
      Portion of the Purchase Price in immediately available funds, by certified
      or cashiers' check or by wire transfer, as mutually agreed by the parties;

                  (ii) within the Second Condition Subsequent Period, stock
      certificate(s) representing the Stock Portion of the Purchase Price;

                  (iii) the duly executed Note;

                  (iv) a certificate representing the 100 RSi BRE Shares to be
      pledged under the Stock Pledge Agreement, duly endorsed in blank, together
      with

                                      -9-
<PAGE>

      a stock power duly endorsed in blank, which such certificate and stock
      power shall be held by the Stock and Contract Escrow Agent;

                  (v) executed originals of the Revenue Sharing Contracts, to be
      held by the Stock and Contract Escrow Agent;

                  (vi) evidence to RSG's reasonable satisfaction that
      RoomSystems has raised at least $4 million in cash equity contributions
      pursuant to its recent Series B Preferred Stock private placement;

                  (vii) duly executed copies of each Related Agreement to which
      either RoomSystems or RSi BRE is a party, including the Financing
      Statements referenced in Section 3.4(c) above;

                  (viii) a certificate, executed by the President and Chief
      Financial Officer of RoomSystems, to the effect that all of the
      representations and warranties of RoomSystems contained in the Master
      Agreement and in this Agreement are true and correct as of the Closing
      Date; and

                  (ix) such other documents, agreements and instruments as RSG
      shall reasonably request.

5.    ROOMSYSTEMS AND RSi BRE'S REPRESENTATIONS AND WARRANTIES.

      RSi, RIC and RSi BRE, jointly and severally, represent and warrant to RSG
as of the date of this Agreement, and they shall be deemed to restate as of the
Closing Date, each of the following representations and warranties:

      5.1   Organization and Powers.

      RSi BRE is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada. RSi BRE has all requisite
corporate power and authority to own and operate its properties, to carry on its
business as now conducted and as proposed to be conducted, to enter into this
Agreement, and to carry out the transactions contemplated hereby.

      5.2   Authority.

      Each of RoomSystems and RSi BRE has the full power and authority to
execute and deliver this Agreement and each Related Agreement to which it is a
party, and to enter into and to consummate all transactions contemplated hereby
and thereby. Each of RoomSystems and RSi BRE has duly authorized, or will duly
authorize when necessary, the execution, delivery and performance of this
Agreement and the Related Agreements to which it is a party and has duly
executed and delivered, or will duly execute and deliver, this Agreement and the
Related Agreements to which it is a party. This Agreement and the applicable
Related Agreements, assuming due authorization, execution and delivery by RSG,
constitute the legal, valid and binding obligations of RoomSystems and RSi BRE,
as applicable, enforceable against them in accordance with their terms, except
as enforceability may be limited by bankruptcy, insolvency, reorganization or
other similar laws affecting the enforcement of creditors' rights in general and

                                      -10-
<PAGE>

by general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law.

      5.3   Effect of Agreements; Consents.

            (a) Effect of Agreement. Neither the execution or delivery of this
Agreement or the Related Agreements to which they are a party, nor the
consummation of the transactions contemplated hereby and thereby:

                  (i) Violates or will violate (1) any order, writ, injunction,
      judgment, decree, or award of any governmental or regulatory authority or
      (2) violates or will violate any laws, rules, ordinances, or regulations
      to which RoomSystems or RSi BRE or any of their properties or assets are
      subject, or (3) requires any filing or registration with, or consent,
      authorization, approval or permit of, any governmental or regulatory
      authority on the part of RoomSystems or RSi BRE;

                  (ii) Violates or will violate, or conflicts with or will
      conflict with, any provision of, or constitutes a default under, the
      articles of incorporation or bylaws of RoomSystems or RSi BRE; or

                  (iii) (A) violates or breaches or constitutes a default (or an
      event which, with notice or lapse of time or both, would constitute a
      default) under, or gives rise to a right to terminate, any mortgage,
      contract, agreement, deed of trust, license, lease, or other instrument,
      arrangement, commitment, obligation, understanding, or restriction of any
      kind to which either RoomSystems or RSi BRE is a party or by which their
      assets or properties may be bound, or (B) will cause, or give any person
      or entity grounds to cause, to be accelerated (with notice or lapse of
      time or both) the maturity of, or will increase, any liability or
      obligation of RoomSystems or RSi BRE.

            (b) Consents. No consent, approval or authorization of, or filing
with, third parties (including any governmental or regulatory authority), is
required in connection with RoomSystems' and RSi BRE's valid execution, delivery
and performance of this Agreement or the other Related Agreements to which
either of them is a party, and the consummation of the transactions contemplated
hereby and thereby.

      5.4   Description of Equipment.

      The list of Equipment set forth as part of EXHIBIT A hereto is a true,
complete and accurate list and description of all Equipment related to the
Revenue Sharing Contracts as of the Closing Date.

      5.5   Master Agreement Representations and Warranties.

      RoomSystems hereby affirms, acknowledges and restates as true, accurate
and complete each of its representations and warranties contained in the Master
Agreement, as if such representations and warranties were made as of the Closing
Date.

                                      -11-
<PAGE>

6.    RSG'S REPRESENTATIONS AND WARRANTIES.

      RSG represents and warrants to RoomSystems and RSi BRE as of the date of
this Agreement, and shall be deemed to restate as of the Closing Date, as
follows:

      6.1   Organization and Powers.

      RSG is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Idaho. RSG has all requisite
limited liability company power and authority to own and operate its properties,
to carry on its business as now conducted and as proposed to be conducted, to
enter into this Agreement, and to carry out the transactions contemplated
hereby.

      6.2   Authority.

      RSG has the full power and authority to execute and deliver this Agreement
and each Related Agreement to which it is a party, and to enter into and to
consummate all transactions contemplated hereby and thereby. RSG has duly
authorized, or will duly authorize when necessary, the execution, delivery and
performance of this Agreement and the Related Agreements to which it is a party
and has duly executed and delivered, or will duly execute and deliver, this
Agreement and the Related Agreements to which it is a party. This Agreement and
the Related Agreements to which it is a party, assuming due authorization,
execution and delivery by RoomSystems and RSi BRE, constitute the legal, valid
and binding obligations of RSG, enforceable against it in accordance with their
terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors'
rights in general and by general principles of equity, regardless of whether
such enforcement is considered in a proceeding in equity or at law.

      6.3   Effect of Agreements; Consents.

            (a) Effect of Agreement. Neither the execution or deliver of this
Agreement or the Related Agreements to which it is a party, nor the consummation
of the transactions contemplated hereby and thereby:

                  (i) Violates or will violate (1) any order, writ, injunction,
      judgment, decree, or award of any governmental or regulatory authority or
      (2) violates or will violate any laws, rules, ordinances, or regulations
      to which RSG or any of its properties or assets are subject, or (3)
      requires any filing or registration with, or consent, authorization,
      approval or permit of, any governmental or regulatory authority on the
      part of RSG;

                  (ii) Violates or will violate, or conflicts with or will
      conflict with, any provision of, or constitutes a default under, the
      articles or organization or operating agreement of RSG; or

                  (iii) (A) violates or breaches or constitutes a default (or an
      event which, with notice or lapse of time or both, would constitute a
      default) under, or gives rise to a right to terminate, any mortgage,
      contract, agreement, deed of trust,

                                      -12-
<PAGE>

      license, lease, or other instrument, arrangement, commitment, obligation,
      understanding, or restriction of any kind to which RSG is a party or by
      which its assets or properties may be bound, or (B) will cause, or give
      any person or entity grounds to cause, to be accelerated (with notice or
      lapse of time or both) the maturity of, or will increase, any liability or
      obligation of RSG.

            (b) Consents. No consent, approval or authorization of, or filing
with, third parties (including any governmental or regulatory authority), is
required in connection with RSG's valid execution, delivery and performance of
this Agreement or the other Related Agreements to which it is a party, and the
consummation of the transactions contemplated hereby and thereby.

      6.4   No Other Representations and Warranties.

      EXCEPT AS SPECIFICALLY SET FORTH IN THIS SECTION 6, RSG MAKES NO OTHER
REPRESENATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE SUBJECT
MATTER OF, AND THE TRANSACTIONS CONTEMPLATED BY, THIS AGREEMENT.

7.    OTHER COVENANTS AND AGREEMENTS OF THE PARTIES.

      7.1   Affirmative Covenants.

      RoomSystems and RSi BRE, jointly and severally, covenant and agree that,
so long as the Secured Obligations remain outstanding, RoomSystems and RSi BRE
shall perform and observe the covenants contained in this Section 7.1, in
addition to their other covenants and agreements set forth in this Agreement.

            (a) Equipment and Contractual Obligations. RoomSystems and Rsi BRE
shall perform in all material respects all of their obligations under the
Revenue Sharing Contracts and New BRE Revenue Sharing Contracts and related
Maintenance Agreements relating to the Equipment and NEW BRE Units or to any
other Units covered by a Revenue Sharing Contract and/or Maintenance Agreement,
notwithstanding the failure of the Hotel to make any Payments or any other Hotel
default thereunder. Such obligations on the part of RoomSystems and RSi BRE (i)
shall survive the termination of any such Revenue Sharing Contract or New BRE
Revenue Sharing Contract or related Maintenance Agreement in accordance with its
terms, and (ii) shall include the maintenance of Equipment and NEW BRE Units at
the same level of performance demonstrated at the time a certificate of
acceptance is issued.

            (b) Events of Default, etc. Promptly upon RoomSystems or RSi BRE
obtaining knowledge of (i) any condition or event that constitutes an Event of
Default hereunder, (ii) any condition or event that constitutes an event of
default under any Revenue Sharing Contract or New BRE Revenue Sharing Contract
and/or its related Maintenance Agreement, or (iii) the occurrence of any event
or change that has caused or evidences or could reasonably be expected to cause,
either in any individual case or in the aggregate, a Material Adverse Effect (as
defined in the Master Agreement), RoomSystems shall provide RSG with an
officer's certificate specifying the nature of such claimed Event of Default,
event or condition, and what action RoomSystems and/or RSi BRE has taken, is
taking and proposes to take with respect thereto.

                                      -13-
<PAGE>

            (c) Corporate Existence, etc. Except as permitted under Section
7.2(a) hereof, each of RSi, RIC and RSi BRE will at all times preserve and keep
in full force and effect its corporate existence and all rights and franchises
material to the business of RoomSystems, taken as a whole.

            (d) Payment of Taxes and Claims; Tax Consolidation. RoomSystems will
pay all taxes, assessments and other governmental charges imposed upon it or any
of its properties or assets or in respect of any of its income, businesses,
franchises or subsidiaries before any penalty accrues thereon, and all claims
(including, without limitation, claims for labor, services, materials and
supplies) for such that have become due and payable and that by law have or may
become a lien upon any of its properties or assets prior to the time when any
penalty or fine shall be incurred with respect thereto; provided, that no such
charge or claim need be paid if being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted and if such reserve or
other appropriate provision, if any, as shall be required in conformity with
generally accepted accounting principles shall have been made therefor.

            (e) Maintenance of Properties; Insurance. RoomSystems will maintain
or cause to be maintained in good repair, working order and condition, ordinary
wear and tear excepted, all material properties used or useful in its business
and the business of its subsidiaries (including, without limitation, its
Intellectual Property and General Intangibles, as defined in the Master
Agreement) and from time to time will make or cause to be made all appropriate
repairs, renewals and replacements thereof. RoomSystems will maintain or cause
to be maintained, with financially sound and reputable insurers, insurance with
respect to its properties and business against loss or damage of the kinds
customarily carried or maintained under similar circumstances by corporations of
established reputation engaged in similar businesses, including, without
limitation, the insurance policies required under each Revenue Sharing Contract
and New BRE Revenue Sharing Contract with respect to the Equipment and New BRE
Unit, as applicable.

            (f) Inspection. RoomSystems shall permit, in coordination with the
applicable Hotel, any authorized representatives designated by RSG to visit and
inspect any Equipment or New BRE Unit subject to a Revenue Sharing Contract or
New BRE Revenue Sharing Contract or any of the properties of RoomSystems or RSi
BRE, including its financial and accounting records, and to make copies and take
extracts therefrom, and to discuss its affairs, finances, accounts and
operations with its officers, all upon reasonable notice and at such reasonable
times during normal business hours and as often as may be reasonably requested.

            (g) Compliance with Laws, etc. RoomSystems and RSi BRE shall comply
with the requirements of all applicable laws, rules and regulations of any
governmental or regulatory authority, noncompliance with which in any individual
case or in the aggregate would have, or would reasonably be expected to cause, a
Material Adverse Effect.

            (h) Further Assurances. At any time or from time to time, upon the
request of RSG, RoomSystems and RSi BRE shall execute and deliver such further
documents and do such other acts and things as RSG may reasonably request in
order to effect fully the purposes of this Agreement.

                                      -14-
<PAGE>

      7.2   Negative Covenants.

      RoomSystems and RSi BRE, jointly and severally, covenant and agree that,
so long as the Secured Obligations remain outstanding, RoomSystems and RSi BRE
shall perform and observe the covenants contained in this Section 7.2, in
addition to their other covenants and agreement set forth in this Agreement.

            (a) Restriction on Fundamental Changes; Asset Sales. Neither
RoomSystems nor RSi BRE shall, without RSG's prior written consent, directly or
indirectly:

                  (i)   be a part to any merger or consolidation; or

                  (ii) sell, transfer, convey, lease or otherwise dispose of all
      or a substantial part of the assets taken as a whole of RoomSystems and/or
      RSi BRE, or sell, transfer, convey, lease or otherwise dispose of any
      stock, ownership interest or other equity interest, in a single
      transaction or a series of transactions, representing more than 51% of the
      outstanding capital stock of RoomSystems and/or RSi BRE.

      Notwithstanding the foregoing:

                  (x) any wholly-owned subsidiary of RoomSystems may merge into
      RSi or RIC, or into or with any other wholly-owned subsidiary of RSi or
      RIC, or RoomSystems may undertake a corporate reorganization such that RIC
      is the corporate parent of RSi;

                  (y) any wholly-owned subsidiary of RoomSystems may consolidate
      with any other wholly-owned subsidiary of RSi or RIC so long as
      immediately thereafter, 100% of the voting stock or other ownership
      interest of the resulting person or entity is owned by RoomSystems or
      another wholly-owned subsidiary of RoomSystems; and

                  (z) RoomSystems or any wholly-owned subsidiary of RoomSystems
      may sell, transfer, convey, lease or assign all or a substantial part of
      its assets to another wholly-owned subsidiary of RSi or RIC; provided,
      however, in each of the cases described in preceding clauses (x), (y) and
      (z), that immediately thereafter and after giving effect thereto, no Event
      of Default shall have occurred and be continuing; provided, further, in
      each of such cases, the transactions provided for in such clauses (x), (y)
      and (z) shall not apply or be applicable to RSi BRE until all obligations
      under the Note have been paid in full and; provided, further, the terms
      and conditions of this Agreement and the Related Agreements shall apply to
      and be enforceable against and binding upon such transferee or successor
      entity.

      (b) Transactions with Shareholders and Affiliates. Neither RoomSystems nor
RSi BRE shall, without RSG's prior written consent, directly or indirectly,
enter into or permit to exist any transaction (including, without limitation,
the purchase, sale, lease or exchange of any property or the rendering of any
service) with any holder of 10% or more of any class of equity

                                      -15-
<PAGE>

securities of RoomSystems or with any affiliate of RoomSystems or of any such
holder, on terms that are less favorable to RoomSystems than those that might be
obtained at the time from persons or entities who are not such a holder or
affiliate; provided, that the foregoing restriction shall not apply to any
transaction between RoomSystems and any of its wholly-owned subsidiaries or
between any of its wholly-owned subsidiaries.

8.    EVENTS OF DEFAULT.

      8.1   Events of Default.

      Whenever used herein, the term "Event of Default" means any one of the
following events:

            (a) Breach of Representations, Warranties and Covenants. (i) Any
representation, warranty, certification or other statement made by RoomSystems
or RSi BRE in this agreement or in any Related Agreement or in any statement or
certificate at any time given by RoomSystems or RSi BRE in writing pursuant
hereto or in connection herewith, or any of the representations and warranties
of RoomSystems in the Master Agreement herein reaffirmed and restated, shall be
false in any material respect on the date as of which made or reaffirmed; or
(ii) any failure on the part of RoomSystems or RSi BRE duly to observe or
perform in any material respect any of the covenants or agreements on the part
of RoomSystems and RSi BRE set forth in this Agreement or in any Related
Agreement that continues unremedied for a period of fifteen (15) days after the
date on which written notice of such failure, requiring the same to be remedied,
shall have been given to RoomSystems and/or RSi BRE by RSG; or

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

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

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

            (e) Involuntary Bankruptcy; Appointment of Receiver. (i) a court
having jurisdiction in the premises shall enter a decree or order for relief in
respect of RoomSystems or RSi BRE in an involuntary case under the Bankruptcy
Code, or under any other applicable bankruptcy, insolvency or similar law now or
hereafter in effect, which decree or order is not

                                      -16-
<PAGE>

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

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

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

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

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

      8.2   Remedies.

      If an Event of Default shall have occurred and be continuing, RSG shall
have the following remedies:

            (a) Obligations. RSG may declare all of the Secured Obligations
immediately due and payable. In respect of the foregoing, the amount due and
payable from all

                                      -17-
<PAGE>

unpaid future Payment allocations to RSG from the Revenue Sharing Contracts and
new BRE Revenue Sharing Contracts as set forth in the Payment Allocation
schedule shall be based on the discounted present value of such unpaid
allocations, assuming for the purpose of such calculation: (i) each Unit
produces revenue of $0.716 per day, (ii) a discount rate of eight percent (8%)
per annum, (iii) a term equal to the remaining term of the Revenue Sharing
Contract and New BRE Revenue Sharing Contract related to each Unit, and (iv) a
residual value for each Unit of $300.00.

            (b) Assignment and Transfer of Revenue Sharing Contracts. All of RSi
BRE's right, title and interest in, to and under the Revenue Sharing Contracts
and New BRE Revenue Sharing Contracts shall be automatically and irrevocably
assigned, transferred and delivered to RSG, without any action required on the
part of RSG, RoomSystems or RSi BRE. Such assignment and transfer shall not
operate to terminate any of RoomSystems' and/or RSi BRE's servicing and
maintenance obligations under the Maintenance Agreements applicable to such
Revenue Sharing Contracts and New BRE Revenue Sharing Contracts, and such
obligations shall survive the irrevocable assignment and transfer of such
contracts to RSG.

            (c) Additional Remedies. In addition to the remedies set forth in
the foregoing Sections 8.2(a) and 8.2(b), upon an Event of Default, RSG may, at
its sole option, without demand and upon such notice as may be required by law,
and irrespective of negative consequences to RoomSystems, RSi BRE or any other
party, do any one or more of the following: (i) require RoomSystems and RSi BRE
to assemble the Collateral and make it available to RSG at a place designated by
RSG; (ii) immediately take possession of the Collateral wherever it may be found
using all necessary and lawful actions to do so, and each of RoomSystems and RSi
BRE waives all claims to damages due to or arising from or connected with any
such taking; (iii) proceed in the foreclosure set forth in the Security
Agreement and sell all the Collateral in any manner permitted by law or provided
for therein; (iv) sell the Collateral at public or private sale with or without
having said Collateral at the place of sale and upon terms and in such manner as
RSG may determine, with RoomSystems and RSi BRE agreeing that if notice of such
a sale is required by law, a ten (10) day notice period shall be commercially
reasonable unless a shorter time period is permitted by law; (v) take possession
of RoomSystem's premises in order to (A) continue servicing and maintaining the
Equipment and New BRE Units covered by any Revenue Sharing Contract or New BRE
Revenue Sharing Contract pursuant to the applicable Maintenance Agreement, (B)
repair and recondition such Equipment and New BRE Units, as necessary, using the
facilities and other property of RoomSystems, (C) store any of the Collateral
subject to RSG's security interest, and (D) conduct any sale as provided for in
the Security Agreement, all without compensation to RoomSystems or RSi BRE and
any sums expended therefor by RSG, for which no consideration is received, shall
be repaid by RoomSystems and RSi BRE as part of the Secured Obligations under
this Agreement; (vi) sell, in one or more sales, at public or private sale, for
such price as it may deem fair, any or all of the Collateral; (vii) be the
purchaser of any of the Collateral so sold and hold the same thereafter in its
own right, absolutely free from any claims or rights of RoomSystems or RSi BRE;
(viii) exercise any other right under the Related Agreements.

            (d) Application of Proceeds; etc. The net proceeds of any sale as
hereinbefore described shall be applied against the amount owed on the Secured
Obligations in such order as RSG may elect. RoomSystems and RSi BRE shall
promptly pay to RSG any

                                      -18-
<PAGE>

deficiency upon demand. Demand of performance, advertisement and presence of
property at sale, and all other demands and presentments of any kind or nature
are expressly waived by RoomSystems and RSi BRE. In addition, each of
RoomSystems and RSi BRE hereby (i) waives any right to require RSG to proceed
against any Collateral, (ii) waives the right to require RSG to pursue any other
remedy for the benefit of RoomSystems or RSi BRE and (iii) agrees that RSG may
proceeds against RoomSystems and/or RSi BRE for the amount of the obligations
owed by RoomSystems and RSi BRE to RSG hereunder without taking any action
against any other party and without selling or otherwise proceeding against or
applying any Collateral.

            (e) Cumulative Remedies. All rights and remedies of RSG hereunder
and under the Security Documents are cumulative and may be exercised singly or
concurrently and the exercise of any one or more of them shall not constitute a
waiver of any other right or remedy. No act, delay, omission or course of
dealing between RoomSystems/Rsi BRE and RSG will constitute a waiver of any of
RSG's rights or remedies under this Agreement or otherwise. No waiver by RSG of
any right, remedy or event of default with respect to any of the obligations of
RoomSystems or RSi BRE hereunder shall operate as a waiver of any other right,
remedy, or event of default on a future occasion. No waiver, change,
modification or discharge of any of RSG's rights, or the duties of RoomSystems
or RSi BRE as so specified or allowed, will be effective unless contained in a
written instrument signed by RSG.

9.    NOTICES.

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

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

                  To RoomSystems and

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

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

                                      -19-
<PAGE>

                  With a copy                   AMRESCO Leasing Corporation
                  to:                           Attention: William C. Cole, Esq.
                                                412 E. ParkCenter Blvd.,
                                                Suite 300
                                                Boise, Idaho  83702
                                                Telephone: 208/333-2000
                                                Fax number: 208/333-2050

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

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

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

10.   GENERAL PROVISIONS.

      10.1  Entire Agreement; Amendment.

      This Agreement (including the Exhibits hereto) and the other documents
delivered pursuant hereto and referenced herein constitute the full and entire
understanding and agreement between the parties with respect to the subject
matter hereof and supersede, merge, and replace, all prior negotiations, offers,
promises, representations, warranties, agreements and writing with respect to
such subject matter, both written and oral. Except as expressly provided herein,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated, except by a written instrument signed by the parties hereto.

      10.2  Assignments.

      Neither RoomSystems nor RSi BRE shall assign its rights or obligations
under this Agreement without the prior written consent of RSG. RSG may assign
any or all of its rights, title, interests or duties, in whole or in part,
hereunder without the prior written consent of RoomSystems or RSi BRE. RSG shall
notify RoomSystems of any such assignment within thirty (30) days of such
assignment taking effect. RoomSystems and RSi BRE shall provide any consents
necessary to effect any assignment of this Agreement.

                                      -20-
<PAGE>

      10.3  Indemnity.

      RSi, RIC and RSi BRE, jointly and severally, agree to defend, indemnify,
pay and hold harmless RSG and the officers, members, managers, employees,
counsel, agents and affiliates of RSG (collectively, the "Indemnitees") from and
against any and all losses, claims, damages, obligations, payments, costs or
expenses (including, without limitation the costs and expenses of any Action (as
defined in the Master Agreement), any demand, assessment, judgment, settlement
or compromise related thereto and reasonable attorneys' fees, disbursements and
other charges in connection therewith) (collectively, "Losses"), whether based
on any federal, state or foreign laws, statutes, rules or regulation, on common
law or equitable cause or on contract or otherwise, that may be imposed on,
incurred by or asserted against any such Indemnitee, in any manner relating to,
arising out of or resulting from this Agreement, the Related Agreements, the
Secured Obligations or the transactions contemplated hereby and thereby
(collectively, the "Indemnified Liabilities"); provided, however, that
RoomSystems and RSi BRE shall not have any obligation to any Indemnitee
hereunder with respect to any Indemnified Liabilities to the extent such
Indemnified Liabilities arise from the gross negligence or willful misconduct of
that Indemnitee as determined by a final judgment of a court of competent
jurisdiction. To the extent that the undertaking to defend, indemnify, pay and
hold harmless set forth in the preceding sentence may be unenforceable because
it is violative of any law or public policy, RoomSystems and RSi BRE shall
contribute the maximum that they are permitted to pay and satisfy under
applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by the Indemnitees or any of them.

      10.4  Waiver.

      Any party may waive the performance of any obligation owed to it by any
other party or parties hereunder or for the satisfaction of any condition
precedent to the waiving party's duty to perform any of its covenants, including
its obligations to close. Any such waiver shall be valid only if contained in a
writing signed by the party to be charged.

      10.5  Independent Covenants.

      All covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or would otherwise be within
the limitations of, another covenant shall not avoid the occurrence of an Event
of Default if such action is taken or condition exists.

      10.6  Counterparts.

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

                                      -21-
<PAGE>

      10.7  Severability.

      If any term or condition of this Agreement shall be held invalid in any
respect, such invalidity shall not affect the validity of any other term or
condition hereof. The parties hereto acknowledge that they would have executed
this Agreement with any such invalid term or condition excluded.

      10.8  Governing Law; Attorneys' Fees.

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

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

      10.9  Independent Contractor.

      In connection with any actions that RoomSystems or RSi BRE may take under
this Agreement in connection with any Equipment or New BRE Units, and their
related Revenue Sharing Contracts, New BRE Revenue Sharing Contracts and
Maintenance Agreements, as applicable, RoomSystems and RSi BRE are, and shall
act as, independent contractors and shall not have any authority to make any
commitments, statements or representations, or incur any obligations, on behalf
of RSG, or to bind or commit RSG in any manner, to make, alter, or execute any
document or agreement on behalf of RSG. Neither RoomSystems nor RSi BRE shall
use any name or mark of RSG or any affiliate of RSG in any way unless it has
RSG's prior written approval. Neither RoomSystems nor RSi BRE shall accept
service of any legal process in any action that may be brought against RSG, or
employ attorneys to defend without RSG's prior written approval.

      10.10 Parties in Interest.

      Nothing in this Agreement, whether expressed or implied, is intended to
confer any rights or remedies under or by reason of this Agreement or any
persons other than the parties to it and their respective heirs, executors,
administrators, personal representatives, successors and permitted assigns, nor
is anything in this Agreement intended to relieve or discharge the

                                      -22-
<PAGE>

obligations or liability of any third persons to any party to this Agreement,
nor shall any provision give any third persons any right of subrogation or
action over or against any party to this Agreement.

      10.11 Time of Essence.

      Time is of the essence of each and every provision of this Agreement.

      IN WITNESS WHEREOF, the parties have executed this Equipment Transfer
Agreement by their duly authorized officers as of the day and year first above
written.

           ROOMSYSTEMS:                  ROOMSYSTEMS, INC.

                                         By: /s/ Steven L. Sunyich
                                             ----------------------------------
                                         Print Name: Steven L. Sunyich
                                         Title: CEO

                                         ROOMSYSTEMS INTERNATIONAL CORPORATION

                                         By: /s/ Steven L. Sunyich
                                             ----------------------------------
                                         Print Name: Steven L. Sunyich
                                         Title: CEO

           RSi BRE:                      RSI, BRE, INC.

                                         By: /s/ Steven L. Sunyich
                                             ----------------------------------
                                         Print Name: Steven L. Sunyich
                                         Title: CEO

           RSG:                          RSG INVESTMENTS, LLC

                                         By: /s/ Donnelly L. Prehn
                                             ----------------------------------
                                         Print Name: Donnelly L. Prehn
                                         Title: Authorized Agent

                                      -23-

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