Document:

EMPLOYMENT AGREEMENT  

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of the 31st day of December 2001,
between eRoomSystem Technologies, Inc., a Nevada corporation (the "Company"), and David S. Harkness, an individual (the "Executive"). 

WITNESSETH:  

        WHEREAS, the Company and the Executive deem it to be in their respective best interests to enter into an agreement
providing for the Company's employment of Executive pursuant to the terms herein stated. 

        NOW, THEREFORE, in consideration of the mutual provisions herein contained, the parties agree as follows: 

        1.    Duties.    The Company hereby employs the Executive as the Chief Executive Officer and President of the Company,
with the powers and duties in that capacity to be those powers and duties customary to such positions in similar publicly held corporations, together with any other duties of a senior executive nature
as may be reasonably requested by the Board of Directors (the "Board") from time to time, which may include duties for one or more subsidiaries or affiliates of the Company. The Executive, in his
capacity as an employee and officer of the Company, shall be responsible to obey the reasonable and lawful directives of the Board. 

        2.    Term of Employment.    The term of employment pursuant to this Agreement shall be one year commencing on the
date of this Agreement and ending on December 31, 2002 (the "Term of Employment"), subject to earlier termination in accordance with Section 7 below. The Term of Employment and this
Agreement shall be automatically extended for successive one-year periods following the expiration of the Term of Employment, unless (i) terminated earlier in accordance with
Section 7, or (ii) either the Company or the Executive notifies the other in writing, at least thirty days prior to such expiration, that the Term of Employment and this Agreement
shall not be so extended. 

        3.    Compensation.    The Executive shall receive the following compensation for his services during the Term of
Employment hereunder: 

        (a)    Annual Base Salary.    The Executive's annual base salary shall be $150,000 per calendar year. Executive's base
salary shall be reviewed annually by the Compensation Committee. Such annual base salary shall be payable on a pro rata basis, in twenty-six (26) equal installments, in accordance
with the Company's normal payroll procedures. 

        (b)    Performance Bonus.    The Executive shall be eligible to receive a performance bonus at the end of the
Company's fiscal year. The amount of such performance bonus, if any, shall be determined by the Compensation Committee, in its sole and absolute discretion, based upon such factors as the Company's
overall financial performance, anticipated working capital requirements, cash reserves, anticipated liabilities or threatened litigation, successful implementation of the Company's business plan,
establishment of relationships with key hotel chains and customers, development of corporate projects and new products, and any other short- and long-term interests of the Company as it
deems appropriate. 

        (c)    Stock Options.    The Executive shall be eligible to participate in the Company's 2000 Stock Option Plan, as
amended from time to time (the "Plan"). Executive shall have an irrevocable right to exercise any and all options to purchase common stock of the Company issued to him under the Plan, assuming such
options are fully vested, through the final date on which such options are exercisable by Executive; provided, Executive shall not be bound by the terms of Section 6(f) of the Plan. 

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        (d)    Car Allowance.    The Executive shall be entitled to a monthly car allowance of $500. The monthly car allowance
shall cover Executive's car lease/purchase installments, mileage, gas, insurance, repair and maintenance expenses. 

        (e)    Other Benefits.    Executive shall be paid for ten (10) holidays annually as designated by the Company.
Additionally, Flexible Time Off (FTO) will accrue at the rate of 4.31 hours upon the completion of each pay period in which you are employed as Chief Executive Officer. 

        (f)    Health and Dental Insurance.    The Company shall provide health and dental insurance for Executive and his
dependents with an insurance carrier of Employer's choice. 

        (g)    Life Insurance.    The Company shall provide term life insurance coverage for Executive in the amount of three
times Executive's annual salary, or $450,000. The period of such coverage will coincide with Executive's term of employment. 

        4.    Expense Reimbursement.    The Company shall reimburse the Executive for all expenses incurred by him in the
performance of his duties hereunder as required by the Board, including, but not limited to, transportation expenses, accommodations, entertainment, and other expenses incurred in connection with the
business of the Company, in accordance with the Company's expense reimbursement policies, but specifically excluding automobile related expenses as outlined in Section 3(d) above. 

        5.    Indemnification.    The Company shall indemnify the Executive in his capacity as an officer and a director and
hold him harmless from any cost, expense or liability arising out of or relating to any acts or decisions made by him on behalf of or in the course of performing services for the Company to the
maximum extent provided by the Company's bylaws and applicable law. 

        6.    Scope of Employment.    The Executive agrees to devote in good faith his full time and best efforts (allowing
for usual vacations and sick leave), during reasonable business hours, to the duties that he is required to render to the Company hereunder, and agrees to travel to the extent he deems
necessary to perform such duties. Notwithstanding the foregoing, the Executive shall be permitted to engage in other charitable, community or business affairs that may, from time to time, require
minor portions of his time, but which shall not interfere or be inconsistent with his duties hereunder. 

        7.    Termination.    This Agreement and the employment of the Executive hereunder shall or may be terminated for any
of the following reasons: 

        (a)  The
Company may terminate this Agreement and the employment of the Executive hereunder without cause upon not less than thirty (30) days advance written notice;
provided, however, in such event the Company shall pay to Executive severance equal to three (3) months of his then existing salary as well as continuation of Executive's health and dental
benefits and car allowance for such period. Severance payments shall be made on a bi-weekly basis. The severance period shall commence upon the conclusion of the notice period, or the
first day following Executive's final day of employment. 

        (b)  By
the Company at any time immediately for cause by providing written notice to Executive. For purposes of this Agreement, "cause" shall include, without limitation,
(i) a breach of any provision of this Agreement or a violation of any other duty or obligation to the Company; (ii) a failure to follow a written directive of the Board;
(iii) fraud, misappropriation, dishonesty or embezzlement, or (iv) any willful or negligent misconduct, criminal conviction or similar conduct or activities. 

        (c)  Immediately
without notice upon the Executive's death or disability. For purposes of this Agreement, "disability" shall mean the inability of the Executive to perform
his duties under this Agreement for a consecutive period of three (3) months or a non-consecutive period of six (6) months within any twelve-month period. In the event of the
death or disability of the Executive, the Executive or the estate, beneficiary or legal representative of the Executive shall be 

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entitled to any applicable death or disability benefits (other than key-man life insurance) which may be available under any benefit plans maintained by the Company solely for the benefit
of the Executive at the time of the death or disability of the Executive, and for the allowable duration of those benefit plans as provided by their respective plan documents. 

Except
as otherwise provided in subsection (a) above, upon the termination of this Agreement and the employment of Executive hereunder, the Company shall have no further obligation or
liability whatsoever to Employee under this Agreement except with respect to any stock options granted under the Plan which have vested as of such date or salary earned by the Executive and not paid
by the Company prior to the date of termination. 

        8.    Assignment.    By reason of the special and unique nature of the services hereunder, it is agreed that neither
party hereto may assign any interest, rights or duties which it or he may have in this Agreement without the prior written consent of the other party, except that upon any merger, liquidation, or sale
of all or substantially all of the assets of the Company to another corporation, this Agreement shall inure to the benefit of and be binding upon the Executive and the purchasing, surviving, or
resulting company or corporation in the same manner and to the same extent as though such company or corporation were the Company. 

        9.    Confidentiality.    

        (a)  Recognizing
that the knowledge and information about, or relationships with, the business associates, partners, customers, clients, suppliers, personnel and agents of
the Company and its affiliated companies and the business, financing and marketing methods, systems, plans, policies, techniques and know-how of the Company and of its affiliated companies
(collectively, "Confidential Information") which the Executive has heretofore and shall hereafter receive, obtain or establish as an employee of the Company, or otherwise, is valuable and a unique
asset of the Company, the Executive agrees that, during the Term of Employment and for a period of three (3) years thereafter, he shall hold all Confidential Information in the strictest
confidence, and shall not (otherwise than pursuant to his duties hereunder), directly or indirectly, disclose without the express written consent of the Company, any Confidential Information
pertaining to any person, firm, corporation or other entity, for any reason or purpose whatsoever. The Executive acknowledges and agrees that Confidential Information shall be deemed to include,
without limitation, all knowledge, data or information stored on any electronic or other media. The Executive acknowledges and agrees that all memoranda, notes, records and other documents made or
compiled by the Executive or made available to the Executive concerning any Confidential Information shall be the Company's exclusive property and shall be delivered by the Executive to the Company
upon expiration or termination of this Agreement or at any other time upon the request of the Company. 

        (b)  The
Executive hereby acknowledges that the services to be rendered by him are of a special, unique and extraordinary character and, in connection with such services, he
will have access to Confidential Information. By reason of this, the Executive consents and agrees that if he violates any of the provisions of this Agreement with respect to confidentiality, the
Company would sustain irreparable harm and, therefore, in addition to any other remedies which the Company may have under this Agreement or otherwise, the Company will be entitled to an injunction to
be issued by any court of competent jurisdiction restraining the Executive from committing or continuing any such violation of this Agreement. 

        (c)  The
provisions of this Section 9 shall survive the expiration or termination (for any reason) of this Agreement or any part thereof, without regard to the reason
therefor. 

        10.    Covenant Not to Compete; Nonsolicitation.    

        (a)  The
parties acknowledge that the Executive's performance of all terms of this Agreement is necessary to protect the Company's legitimate business interests. The
Executive agrees, that, during the 

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Term of Employment and for a period of three (3) years thereafter, he will not, on behalf of himself, or on behalf of any person, company, corporation, partnership or other entity or
enterprise, directly or indirectly, as an employee, proprietor, owner, stockholder, partner, member, officer, director, manager, lender, advisor, consultant or otherwise engage in any business or
activity competitive with the business activities of the Company or any subsidiary of the Company as it is now or hereafter undertaken by the Company or any subsidiary. The Executive further agrees
that he will not, directly or indirectly, during the Term of Employment and for a period of two years thereafter, solicit the trade or patronage of any customers or prospective customers of the
Company, any subsidiary of the Company or of anyone who has heretofore traded or dealt with the Company or any subsidiary of the Company with respect to any technologies, services, products, trade
secrets or other matters in which the Company is active. 

        (b)  The
Executive hereby acknowledges that the services to be rendered by him under this Agreement are of a special, unique and extraordinary character and, in connection
with such services, he will have access to Confidential Information. By reason thereof, the Executive consents and agrees that if he violates any of the provisions of this Agreement with respect to
noncompetition or nonsolicitation, the Company would sustain irreparable harm and, therefore, in addition to any other remedies which the Company may have under this Agreement or otherwise, the
Company shall be entitled to an injunction to be issued by any court of competent jurisdiction restraining the Executive from committing or continuing any such violation of this Agreement. 

        (c)  The
provisions of this Section 10 shall survive the expiration or termination of this Agreement or any part thereof, without regard to the reason therefor. 

        11.    Arbitration.    Unless otherwise indicated, any dispute arising out of the terms and conditions of this
Agreement or the Executive's employment with the Company shall be settled by binding arbitration to be held in Las Vegas, Nevada, in accordance with the rules for employment disputes of the American
Arbitration Association then in effect. The prevailing party in such proceeding shall be entitled to recover the costs of arbitration from the other party, including, without limitation, reasonable
attorneys' fee. 

        12.    Governing Law.    This Agreement shall be subject to, and governed by, the laws of the State of Nevada without
reference to any principles of conflict of law. 

        13.    Notices.    All notices and other communications required or permitted under this Agreement shall be in writing
(including a writing delivered by facsimile transmission) and shall be deemed to have been duly given (a) when delivered, if sent by registered or certified mail (return receipt requested),
(b) when delivered, if delivered personally or by facsimile, or (c) on the second following business day, if sent by overnight mail or overnight courier, in each case to the parties at
the following addresses (or at such other addresses as shall be specified by like notice): 

	If to the Company:	 	eRoomSystem Technologies, Inc.

390 North 3050 East

St. George, Utah 84790

Attention: General Counsel
	
If to the Executive:	
 	
11521 North 6090 West

Highland, UT 84003

        14.    Severability.    If any provision hereof is unenforceable, illegal or invalid for any reason whatsoever, such
fact shall not affect the remaining provisions hereof. If any of the provisions hereof which impose restrictions on the Executive are, with respect to such restrictions, determined by a final judgment
of any court of competent jurisdiction to be unenforceable or invalid because of the geographic scope or time duration of such restrictions, such provisions hall be deemed retroactively modified to
provide for the maximum geographic scope and time duration which would make such 

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provisions enforceable and valid. However, no such retroactive modification shall affect any of the Company's rights hereunder arising out of the breach of any such restrictive provisions, including,
without limitation, the Company's rights to terminate this Agreement. 

        15.    Waiver.    No failure or delay on the part of the Company or the Executive in exercising any right, power or
remedy hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any
other right, power or remedy hereunder. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

        16.    Modification.    No amendment, modification, termination or waiver of any provision of this Agreement nor
consent to any departure by the Executive or the Company therefrom shall in any event be effective unless the same shall be in writing and signed by a duly authorized officer of the Company or by the
Executive, as the case may be. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

        17.    Taxes.    The Compensation payable is stated in gross amounts and shall be subject to such withholding taxes
and other taxes as may be required by law. 

        IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Executive has hereunto
set his signature as of the day and year first above written. 

	eRoomSystem Technologies, Inc.,
 a Nevada corporation	 	Executive
	

By:	
 	

/s/  GREGORY L. HRNCIR      
 Gregory L. Hrncir

General Counsel; Secretary	
 	

/s/  DAVID S. HARKNESS      
 David S. Harkness

5CONSULTING AGREEMENT  

        THIS CONSULTING AGREEMENT ("Agreement") is effective as of the 31st day of December, 2001 by and between
eRoomSystem Technologies, Inc., a Nevada corporation ("eRoomSystem" or the "Company"), and Ash Capital, LLC, a Utah limited liability company ("Consultant"). eRoomSystem and Consultant are
collectively referred to herein as the "Parties." 

RECITALS  

        WHEREAS, Consultant has expertise in financial, tax and marketing matters and has special skills, knowledge,
abilities and experiences in the dealings of eRoomSystem and in the various projects and business opportunities of eRoomSystem and its subsidiaries; 

        WHEREAS, Consultant has, without a written agreement in place, previously rendered consulting services to eRoomSystem in the form and of
the type described in Section I hereof and desires to be engaged pursuant to this written Agreement by eRoomSystem as an independent contractor to continue to render consulting services to
eRoomSystem upon the terms and conditions set forth herein; 

        NOW, THEREFORE, in consideration of the mutual covenants, promises and agreements contained herein, and intending to be legally bound
hereby, the parties hereto covenant and agree that the Recitals are true and correct and further agree as follows: 

Section I—Consulting Services  

        A.    ENGAGEMENT.    eRoomSystem hereby engages Consultant, and Consultant hereby accepts its
engagement by eRoomSystem, as an independent contractor, to render services in the capacity of a consultant, subject to the terms and conditions herein set forth. The term of this Agreement shall be
eighteen (18) months ("Term"). Upon the termination of this Agreement, Consultant shall, upon the request of the Company, immediately return to eRoomSystem all of its property, equipment,
documents, materials and Confidential Information (as defined below) in whatever tangible form, delete all Confidential Information to the extent that such Confidential Information is in electronic
form, including, without limitation, electronic mail, voice mail, spreadsheet files, presentation files, word processing files and other forms of electronic-related media, and certify to eRoomSystem
as to its compliance with the foregoing. 

        B.    SERVICES.    Without limiting the scope of services to be rendered by Consultant
hereunder, Consultant shall render the following services to eRoomSystem: Consultant is being retained to: (i) provide financial advice on changes in the capitalization of the Company, changes
in the corporate structure of the Company, (ii) provide strategic advice on federal and state tax issues and use of Company's net operating losses; and (iii) assist in the marketing of
its products, including strategic business development through corporate-owned hotel chains, property management companies, design, architecture and construction firms, further development and
refinement of marketing tools, programs, materials and promotions and assistance in the development of advertising and sponsorship programs with regional and national companies. 

        1.    Devotion of Time.    Consultant shall devote such time and attention to the consulting services set forth above
as may be reasonably necessary to diligently perform such services. 

        C.    COMMUNICATIONS.    In the performance of its services hereunder, Consultant shall, at
the Company's request, meet with Company management in-person, by telephone, or through email or voice mail, at least twice per month during the term of this Agreement to discuss
assignments. In addition, Consultant shall maintain regular direct communications with Company management, including confidential written reports on the status of its activities pursuant to this
Agreement at such times as may be requested by Company management. 

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        D.    INDEPENDENT CONTRACTOR.    Consultant is entering into this Agreement and in the
performance of its duties hereunder as an independent contractor. No term or condition under this Agreement nor any manner or method of payment hereunder shall create any relationship between
eRoomSystem and Consultant other than as expressed in this Section I. Consultant shall not in any way, at any time, or under any circumstances, be, or be construed to be, an employee, partner,
or joint venturer of eRoomSystem. 

Section II—Compensation  

        A.    COMPENSATION.    In consideration for the services previously rendered by Consultant as
set forth in the recitals above, eRoomSystem agrees to issue Consultant an option to purchase 250,000 shares of common stock in the form, and on the terms, attached hereto as Exhibit A. The
parties acknowledge that the services to be provided hereafter by Consultant shall provide additional consideration for the issuance of such option but that the prior services rendered constitute
sufficient consideration, without more, to support the concurrent issuance of such option. 

        B.    REIMBURSEMENTS.    eRoomSystem shall reimburse Consultant for any reasonable
out-of-pocket costs, such as travel, meals, lodging, communications (including cellular phone charges), and entertainment, directly incurred in connection with the performance
of the consulting services under this Agreement. Prior to any reimbursement, Consultant shall provide eRoomSystem with sufficient detailed receipts and/or invoices for such reasonable
out-of-pocket costs in accordance with the then applicable guidelines of the Internal Revenue Service. Consultant's monthly expenses shall not exceed $1,000 without the express
prior written consent of an officer of the Company. Consultant shall be solely responsible for all other fees, charges, costs and expenses incurred of any kind. 

        C.    TAXES.    Consultant shall be solely responsible for and shall pay when due all federal,
state and local income taxes and all other taxes due on its behalf for any compensation or benefit received under this Agreement, including, without limitation, all federal withholding taxes, FICA and
Social Security, and any worker's compensation premiums, as applicable. 

Section III—Confidentiality and Non-Competition  

        A.    ACKNOWLEDGEMENTS.    Consultant acknowledges that: (i) Consultant has read the
provisions set forth in this Section III, understands the intent and scope hereof, and has been advised by legal counsel regarding the legal effect hereof; (ii) the restrictions,
agreements and covenants set forth in this Section III are essential to this Agreement and without which eRoomSystem would not have entered into this Agreement; (iii) the restrictions,
agreements and covenants contained in this Section III are reasonable in scope and duration under the circumstances of this Agreement and are necessary to protect eRoomSystem and the goodwill
of eRoomSystem; and (iv) eRoomSystem will incur irreparable damages upon a breach of this Section III and, in the event of a breach or threatened breach of this Section III,
eRoomSystem will not have adequate remedy at law. 

        B.    CONFIDENTIALITY.    Consultant acknowledges in performing its obligations hereunder that
it will have access to confidential information which is proprietary to and a valuable trade secret of eRoomSystem, including but not limited to information concerning eRoomSystem's business,
customers, suppliers, manufacturing and marketing methods and files, credit and collection techniques and files, trade secrets and various unpublished techniques and "know-how" as well as
any materials prepared by Consultant using such information (collectively, "Confidential Information"), and that any disclosure or unauthorized use thereof will cause irreparable harm to eRoomSystem.
Consultant acknowledges that
Confidential Information includes, without limitation, any data or information stored on any electronic or other media. Accordingly, Consultant covenants and agrees that it shall hold all such
information in strictest confidence, and shall not at any time or in any manner, either directly or indirectly, reveal, divulge, copy or disclose any such Confidential Information to any person, firm,
corporation or any 

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other entity whatsoever, without eRoomSystem's express written consent, except as such revelation or disclosure may be required in connection with Consultant's performance of its duties hereunder or
as required by law or a court of competent jurisdiction. Consultant shall use its best efforts and utmost diligence to guard and protect the Confidential Information. Consultant shall return to
eRoomSystem all such Confidential Information in whatever tangible form and all copies and records thereof upon eRoomSystem's request therefor or at the termination of this Agreement. Consultant's
obligations under this Section III.B shall continue indefinitely. 

        C.    NON-COMPETITION.    As consideration for the compensation provided for in
Section II of this Agreement, commencing on the date of this Agreement and continuing until June 30, 2004, Consultant covenants and agrees that it will not, directly or indirectly, alone
or as a partner, joint venturer, officer, director, manager, member, employee, consultant, advisor, agent, owner, equity participant, independent contractor or stockholder of, or lender to, any
company or business, engage in any aspect of eRoomSystem's business anywhere in the United States or in any nation in which eRoomSystem has conducted any business; provided, however, that the
beneficial ownership of less than five percent (5%) of the shares of stock of any corporation having a class of equity securities listed on a national securities exchange shall not be deemed, in and
of itself, to violate the prohibitions of this section. 

        D.    ENFORCEMENT.    Consultant further acknowledges that eRoomSystem will suffer substantial
irreparable injury in the event of Consultant's breach of the provisions of this Section III. Consultant therefore agrees that, in the event of its actual or threatened breach of the provisions
of this Section III, eRoomSystem shall be entitled to seek and obtain such temporary restraining orders, preliminary injunctions or permanent injunctions as eRoomSystem deems appropriate,
restraining Consultant from violating the provisions of this Section III. Nothing contained in this Agreement shall prohibit eRoomSystem from pursuing any other remedies available for such
breach or threatened breach, including the recovery of damages from Consultant. If eRoomSystem commences legal proceedings to restrain Consultant from violating the provisions of this
Section III and obtains such restraints in such proceedings, Consultant agrees to reimburse eRoomSystem for all costs incurred in prosecuting such proceeding, including court costs and
reasonable attorneys' fees. If eRoomSystem commences legal proceedings to restrain Consultant from violating the provisions of this Section III and does not obtain such restraints in said
proceedings, eRoomSystem agrees to reimburse Consultant for all costs incurred in defending such proceedings, including court costs and reasonable attorneys' fees. If eRoomSystem or Consultant
commences legal proceedings against the other to enforce this Agreement, the prevailing party shall be entitled to an award of all attorneys' fees and costs reasonably incurred in prosecuting or
defending the action. 

        E.    BLUE PENCIL.    In the event that any party shall be in violation of the confidentiality
agreement or non-compete agreement set forth in this Section III, then the time limitation thereof shall be extended for a period of time equal to the period during which such
breach or breaches should occur; and in the event that eRoomSystem should be required to seek relief from such breach in any court, or other
tribunal, then the covenants contained in this Section III shall be extended for a period of time equal to the pendency of such proceedings, including all appeals. 

        F.    SURVIVAL.    The restrictions and obligations of this Section III shall survive
the expiration, cancellation or termination of this Agreement and shall continue to bind Consultant and eRoomSystem. 

Section IV—General Provisions  

        A.    ASSIGNMENTS.    The rights of Consultant under this Agreement may not be assigned or
transferred to any other firm or corporation without the prior express written consent of eRoomSystem. Any attempted assignment by Consultant is void. 

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        B.    ATTORNEYS' FEES.    The parties to this Agreement shall be responsible for their own
attorneys' fees with respect to the drafting and preparation of this Agreement. The prevailing party in any dispute arising from the terms or subject matter of this Agreement shall be entitled to
payment by the other party of the prevailing party's costs and expenses, including its attorneys' fees, incurred in connection with resolving such dispute. 

        C.    COOPERATION.    The parties to this Agreement agree to cooperate fully with each other
in order to achieve the purposes of this Agreement and to take all actions not specifically described that may be required to carry out the purposes and intent of this Agreement. 

        D.    COUNTERPARTS.    This Agreement may be executed in multiple counterparts, each of which
shall be deemed to be an original, but all of which taken together shall constitute one and the same Agreement. 

        E.    EFFECT OF PARTIAL INVALIDITY.    The invalidity of any portion of this Agreement will
not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions
shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. In the event that a provision is found in a judicial
proceeding to be unenforceable as written, but enforceable if modified, then the provision shall be deemed to be so modified to the extent necessary to cause it to be enforceable retroactive to the
original date of this Agreement. 

        F.    ENTIRE AGREEMENT.    This Agreement shall constitute the entire agreement between the
parties with respect to the matters described herein, and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to
the extent incorporated in this Agreement. 

        G.    GOVERNING LAW; VENUE.    This Agreement shall be governed by and construed in accordance
with the law of the State of Utah, disregarding any principles of conflicts of law that would otherwise provide for the application of the substantive law of another jurisdiction. All rights and
remedies of each party under this Agreement shall be cumulative and in addition to all other rights and remedies which may be available to the party from time to time, whether under this Agreement, at
law, in equity or otherwise. The parties each (i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted exclusively in Utah State
Court, or in the United States District Court for the District of Utah, (ii) waives any objection to the venue of any such suit, action or proceeding and the right to assert that such forum is
not a convenient forum, and (iii) irrevocably consents to the jurisdiction of the Utah State Court, County of Salt Lake, and the United States District Court for the District of Utah in any
such suit, action or proceeding. Each of the parties further agrees to accept and acknowledge service of any and all process that may be served in any such suit, action or proceeding in the Utah State
Court, County of Salt Lake, or in the United States District Court for the District of Utah and agrees that service of process upon it mailed by certified mail to its address shall be deemed in every
respect effective service of process upon it in any such suit, action or proceeding. 

        H.    MODIFICATION OF AGREEMENT.    Any modification of this Agreement or an additional
obligation assumed by either party in connection with this Agreement shall be binding only if evidenced in writing signed by each party or an authorized representative of each party. 

        I.    NEUTRAL INTERPRETATION.    This Agreement shall be construed in accordance with its
intent and without regard to any presumption or any other rule requiring construction against the party causing the same to be drafted. 

        J.    NOTICES.    Any notice provided for or concerning this Agreement shall be in writing and
be deemed sufficiently given when sent by certified mail, return receipt requested, express mail, Federal 

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Express, or similar conventional means of expedited delivery and proof of delivery, to the respective address of each party as set forth at the beginning of this Agreement. A copy of a notice to
eRoomSystem shall also be provided to eRoomSystem's General Counsel at the same address. Any change of address for notices shall be given to all parties by notice in writing the receipt of which is
duly acknowledged in writing or sent certified mail to the then proper address of each other party. 

        K.    SEVERABILITY.    If any term, provision, covenant or condition of this Agreement, or any
application thereof, should be held by a court of competent jurisdiction to be invalid, void or unenforceable, all terms, provisions, covenants and conditions of this Agreement, and all applications
thereof, not held invalid, void or unenforceable, shall continue in full force and effect and shall in no way be affected, impaired or invalidated thereby, provided that the invalidity, voidness or
enforceability of such term, provision, covenant or condition does not materially impair the ability of the parties to consummate the transactions contemplated hereby. 

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives and to be
effective as of the date first above written. 

	eRoomSystem Technologies, Inc.,
 a Nevada Corporation	 	 
	

By:	
 	

/s/  GREGORY L. HRNCIR      
	
 	

 
	Name:	 	Gregory L. Hrncir	 	 
	Its:	 	General Counsel and Secretary	 	 
	
 Ash Capital, LLC,
 a Utah Limited Liability Company	
 	

 
	

By:	
 	

/s/  JAMES C. SAVAS      
	
 	

 
	Name:	 	James C. Savas	 	 
	Its:	 	Manager of Providence Management, LLC, manager of Ash Capital, LLC	 	 

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   EXHIBIT A  

        NEITHER THIS OPTION NOR THE UNDERLYING SHARES OF COMMON STOCK HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER ANY STATE
SECURITIES LAWS. ANY OFFER TO SELL OR TRANSFER, OR THE SALE OR TRANSFER OF THESE SECURITIES IS UNLAWFUL UNLESS (A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT COVERING THE UNDERLYING SHARES OF
COMMON STOCK UNDER THE ACT AND APPLICABLE STATE SECURITIES LAW, (B) THE COMPANY RECEIVES AN OPINION OF COUNSEL IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY THAT
REGISTRATION IS NOT REQUIRED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAW, OR (C) THE TRANSFER IS MADE PURSUANT TO RULE 144 AS PROMULGATED UNDER THE ACT. 

 OPTION TO PURCHASE COMMON STOCK

OF

EROOMSYSTEM TECHNOLOGIES, INC.  

        THIS IS TO CERTIFY THAT, FOR VALUE RECEIVED, Ash Capital, LLC, a Utah limited liability company, or registered
assigns ("Holder"), is entitled to purchase, subject to the provisions of this Option to Purchase Common Stock ("Option"), from eRoomSystem Technologies, Inc., a Nevada corporation ("Company"),
Two Hundred Fifty Thousand (250,000) shares of common stock, $.001 par value ("Option Stock"), at a price of $0.26 per share ("Exercise Price"). The Option shall vest immediately upon issuance. The
Option has been issued to Maker in conjunction with the Consulting Agreement entered into with the Company on even date herewith. 

        1. Exercise of Option; Security Interest.    The Option is being exercised in whole on even date herewith through the surrender
of the Option for cancellation and presentment by Holder of a duly executed Notice of Exercise, in the form attached hereto as Exhibit A, and execution of the Promissory Note ("Note") attached
hereto as Exhibit B. Upon receipt by the Company of the foregoing, the Holder shall be deemed to be the holder of record of the number of shares of Option Stock set forth in the Notice of
Exercise. Certificates for the shares of Option Stock shall be delivered to the Holder within a reasonable time following the exercise of the Option in accordance with the foregoing; provided,
however, until the Note has been paid in full, the Option Stock (along with other assets of Holder as specified in Section 3 of the Promissory Note attached hereto) shall be subject to a
security interest, in favor of the Company, evidenced by the filing of a financing statement on Form UCC-1 with the Utah Secretary of State. 

        2. Reservation, Registration and Listing of Shares of Option Stock.    The Company hereby agrees that at all times there shall
be reserved for issuance and delivery upon exercise of the Option, such number of shares of Option Stock as shall be required for issuance and delivery upon exercise of the Option. The Company further
agrees that all shares of Option Stock issued upon exercise of this Option shall, upon issuance and payment of the Exercise Price, be validly issued, fully paid and non-assessable and free
from all taxes, liens and charges. No later than June 30, 2002, and continuing through the later of the exercise of the Option in its entirety or the termination of the Option pursuant to its
terms, the Company agrees that it shall cause all shares of Option Stock to be registered with the Securities and Exchange Commission and all applicable states securities regulatory agencies. The
Company shall also use its best efforts to at all times maintain a listing of its Common Stock on the Nasdaq SmallCap Exchange (or National Market Exchange), Over The Counter Bulletin Board or other
national securities exchange. 

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

6

 

        4. Rights of the Holder.    Prior to exercising or exchanging this Option, the Holder shall not be entitled to any rights of a
stockholder in the Company, either at law or in equity. The rights of the Holder are limited to those expressed in this Option and are not enforceable against the Company except as otherwise provided
herein. 

        5. Adjustments Upon Changes in Capitalization.    Upon occurrence of any of the following, the Exercise Price and the number of
shares of Option Stock issuable upon exercise of this Option shall be adjusted as follows: 

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

        If
at any time after the date hereof the number of shares of Common Stock outstanding is decreased by a merger, reorganization, reverse stock split or other form of business combination,
then, on the effective date of such merger, reorganization, reverse stock split or other form of business combination, the Exercise Price shall be appropriately increased and the number of shares of
Option Stock shall be appropriately decreased in proportion to such decrease of outstanding shares. 

        All
calculations under this Section 5 shall be made to the nearest cent or to the nearest whole share, as applicable. No fractional shares shall be issued upon exercise of this
Option. Any fractional shares that might otherwise be issued upon exercise of this Option shall be rounded to the nearest whole share. 

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

        A
calculation of any adjustment as provided by Section 5 above, evidenced by a certificate from the Company's independent certified public accountants shall be deemed a correct
calculation of the adjustment for purposes of this Option. The foregoing presumption shall constitute a rebuttable presumption, with the party disputing the calculation bearing the burden of proving
the incorrectness of the calculation. 

        During
the term of this Option, if the Company shall propose to take any action that would cause an adjustment to be made as provided in Section 5 above, the Company shall mail to
the Holder, by certified mail, prior to or no later than 15 days after the day on which the adjustment became effective, a notice setting forth in reasonable detail the terms of the adjustment. 

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

7

 

        8. Binding Effect.    The provisions of this Option shall be binding upon and inure to the benefit of (a) the parties
hereto, (b) the successors and assigns of the Company, (c) if the Holder is a Company, partnership, or other form of entity, the successors and assigns of the Holder, and (d) if
the Holder is a natural person, the assignees, heirs, and personal representative of the Holder. 

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

        10. Law Governing.    This Option shall be governed by and construed in accordance with the laws of the State of Nevada. 

        11. Titles and Captions.    All section titles or captions contained in this Option are for convenience only and shall
not be deemed part of the context and shall not affect the interpretation of this Option. 

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

        13. Presumption.    This Option shall not be construed against any party due to the fact that the Option, or any
section herein, was drafted by said party. 

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

        15. Parties in Interest.    Nothing herein shall be construed to be to the benefit of any third party, nor is it intended that
any provision shall be for the benefit of any third party. 

December 31,
2001 

	 	 	eROOMSYSTEM TECHNOLOGIES, INC.,

a Nevada Corporation
	

 	
 	

By:	
 	

Gregory L. Hrncir, General Counsel and Secretary

8

   EXHIBIT A

NOTICE OF EXERCISE  

eRoomSystem
Technologies, Inc.

390 North 3050 East

St. George, UT 84790 

Ladies
and Gentlemen: 

        Ash
Capital, LLC ("Holder"), pursuant to the terms of the attached Option to Purchase Common Stock ("Option"), hereby irrevocably exercises the Option and purchases 250,000 shares of
common stock (the "Option Stock") by providing payment for such shares of Option Stock through the execution of the Promissory Note, attached hereto as Exhibit B, in the original principal
amount of Sixty-Five Thousand Dollars ($65,000). 

        By
executing this Notice of Exercise, the Holder warrants and represents that the shares of Option Stock are being acquired as an investment and not with a view to, or for sale in
connection with, a distribution of the shares of Option Stock, as such term is defined. 

        In
the event this Notice of Exercise relates to less than all shares of Option Stock provided in the attached Option, then the Company shall issue a new Option for the number of shares
of Option Stock not purchased. The new Option should be issued in the name of and delivered to (a) the Holder or (b)
                         , whose address
is                        . 

Date:

	Signature Guaranteed	 	Signature:	 	 
	 	 	 	 	

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title (if applicable):	 	 
	 	 	 	 	

	 	 	Address:	 	 
	 	 	 	 	

	

 	
 	

	 	 	Social Security or Tax Identification No.:	 	 
	 	 	 	 	

	NOTE:	 	The signature to this Notice of Exercise must correspond in all respects with the name as written upon the face of the Option.
	

IMPORTANT:	
 	

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

9

   EXHIBIT B

PROMISSORY NOTE  

        FOR VALUE RECEIVED, and in consideration of the execution of this Promissory Note (the  "Note"), Ash Capital, LLC, a Utah limited liability company ("Maker"), hereby promises to pay the sum of
Sixty-Five Thousand Dollars ($65,000), together with interest as set forth hereinbelow, in lawful money of the United States of America or as otherwise provided hereinbelow, to the order
of eRoomSystem Technologies, Inc., a Nevada corporation, or any subsequent holders hereof (such parties collectively referred to hereinafter as the  "Holder"), at 390 North 3050 East, St. George,
Utah, 84790 or such other place as the Holder may designate in writing. Maker is providing Holder with
this Note for the express purpose of exercising that certain Option to Purchase Common Stock ("Option"), issued on even date herewith, in the amount of
Two Hundred Fifty Thousand (250,000) shares of common stock of Holder, with an exercise price of $0.26 per share. 

        1. Payment of Principal and Interest.    All principal and accrued interest shall be payable no later than December 31,
2005 ("Maturity Date"). Interest shall accrue, on a non-compounding basis, at the rate of five percent (5%) per annum from the date of the
Note. 

        2. Option Exercise.    The Note represents the exercise by Maker of the Option in full. Certificates representing the Option
Stock shall include a restrictive legend as required by the Securities Act of 1933, as amended, and will include a statement to the effect that no sale, assignment, pledge, hypothecation or otherwise
of any shares represented by such certificate(s) may be made until such time as the Note has been paid in full. 

        3. Security Interest; Terms of Recourse.    The outstanding principal and accrued interest on the Note shall at all times be
secured by the shares of common stock underlying the Option and 187,500 mature shares of common stock of Holder owned by Maker as specified below (the "Common Stock
Collateral"). Holder's security interest in the foregoing shall be evidenced by the filing of a financing statement on Form UCC-1 with the Utah Secretary of
State against the Common Stock Collateral. The value of the Common Stock Collateral is fixed as of the date hereof at $0.26 per share and shall not change throughout the term of the Note. The Note is
100% recourse to Maker; provided, however, Holder shall look to the following assets of Maker if, and when, payment is not made by Maker as required hereunder: (a) seventy-five
(75%) percent of the recourse shall consist of the 250,000 shares of common stock underlying the Option and 187,500 mature shares of common stock of Holder owned by Maker in addition thereto; and
(b) twenty-five (25%) percent of the recourse shall take the form of the assets of Maker. 

        4. Prepayments.    Maker may prepay the outstanding principal balance of this Note at any time, in whole or in part, without
premium or penalty; provided, however, interest may not be paid in advance. 

        5. Default.    Maker shall be in default under this Note if Maker defaults in the performance of any obligation contained
hereunder and such default is not cured within thirty (30) days of receipt of written demand from Holder. 

        6. Acceleration and Payment and Holder's Costs.    If Maker defaults under this Note, then Holder, at Holder's option, and upon
providing prior written notice to Maker, may declare the entire unpaid principal balance hereunder immediately due and payable, and Maker shall pay all costs and expenses reasonably incurred by Holder
(including, but not limited to, reasonable attorney's fees) to collect such past due amounts, whether such costs and expenses are incurred with or without suit or before or after judgment. 

        7. Assumption of Note.    The obligations and rights under this Note may not be delegated or assigned. 

10

 

        8. Waiver.    Maker hereby (a) waives presentment for payment, protest, demand and notice of dishonor and nonpayment of
this Note and all other requirements necessary to hold Maker liable hereunder and (b) consents to any and all extensions of time, renewals, waivers or modifications that may be granted by
Holder with respect to the payment or other provisions of this Note. 

        9. Governing Law.    The provisions of this Note shall be interpreted and governed by the laws of the State of Nevada. 

	Dated: December 31, 2001	 	Executed at                        , Utah
	
Ash Capital, LLC,

A Utah Limited Liability Company	
 	

 
	

By:	
 	

 	
 	

 
	 	 	
	 	 
	Name:	 	 	 	 
	 	 	
	 	 
	Title:	 	 	 	 
	 	 	
	 	 

11

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