Kenneth R. and Delia H. Dunn - Page 5

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          The “Buy Back Election” to the Alpha Telcom Telephone Services              
          Agreement (Alpha Telcom service agreement) stated:                          
               1.0.  Buy Back Election:  Owner shall have the right to                
               sell to Alpha Telcom, Inc. each payphone upon the                      
          for the buy back election, the sale[s] price shall be the Owner’s           
          original purchase price less $625; in months 7 through 12, it               
          shall be the purchase price less $375; in months 13 through 24,             
          it shall be the purchase price less $250[;] in months 25 through            
          36, it shall be the purchase price less $125; and after 36                  
          months, it shall be the full purchase price.                                
               An exhibit to the ATC pay phone agreement includes a list of           
          service providers available to maintain the pay phones should               
          petitioners not want to service the pay phones themselves.                  
          Petitioners also had the option to enter into a service agreement           
          with Alpha Telcom (ATC, Inc. service selection form) if they did            
          not want to be involved in the day-to-day maintenance of the pay            
          phones.                                                                     
               Under the terms of the Alpha Telcom service agreement, Alpha           
          Telcom agreed to service and maintain the pay phones for an                 
          initial term of 3 years in exchange for 70 percent of the pay               
          phones’ monthly adjusted gross revenue.  In the event that a pay            
          phone’s adjusted gross revenue was less than $58.34 for the                 
          month, Alpha Telcom would waive or reduce the 70-percent fee and            
          pay petitioners at least $58.34, so long as the equipment                   
          generated at least that amount.  In the event that a pay phone’s            
          adjusted gross revenue was less than $58.34 for the month,                  







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Last modified: May 25, 2011