Kenneth R. and Delia H. Dunn - Page 4

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          incorporated by this reference.  Petitioners resided in                     
          Inverness, Florida, at the time the petition was filed.                     
               On October 14, 1999, petitioners entered into a contract               
          with ATC, Inc. (ATC), a wholly owned subsidiary of Alpha Telcom,            
          Inc. (Alpha Telcom), entitled “Telephone Equipment Purchase                 
          Agreement” (ATC pay phone agreement).  Under the terms of the ATC           
          pay phone agreement, petitioners paid $10,000 to ATC, and ATC               
          provided petitioners with legal title to the “telephone                     
          equipment” that was purportedly described in an attachment to the           
          ATC pay phone agreement, entitled “Telephone Equipment List”.               
          The attachment, however, did not identify any pay phones subject            
          to the agreement.  Only identification numbers, the location of             
          the pay phones, and sale prices were provided.  The ATC pay phone           
          agreement also included the following provision:                            
               1.  Bill of Sale and Delivery                                          
                    a.  Delivery by Seller shall be considered complete               
               upon delivery of the Equipment to such place designated by             
               Owner.                                                                 
                    b.  Owner agrees to take delivery of installed                    
               Equipment and location on site.                                        
                    c.  Upon delivery, Owner shall acquire all rights,                
               title and interest in and to the Equipment purchased.                  
                    d.  Owner authorizes ATC to enter into such site                  
               agreement as may be deemed necessary to secure site.                   
                    e.  Phones have approved installation under The                   
               American with Disabilities Act.                                        







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