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$58.34 for the month, petitioner would receive 100 percent of the
revenue. Notwithstanding this formula, Alpha Telcom made it a
practice to pay $58.34 per telephone, regardless of the income
actually produced.
Additionally, Alpha Telcom agreed to be bound by the “Buy
Back Election” to the Alpha Telcom service agreement. The “Buy
Back Election” stated:
1.0. Buy Back Election: Owner shall have the right to sell
to Alpha Telcom, Inc. each payphone upon the following terms
and conditions: in the first six months between the
equipment delivery date and the exercise date for the buy
back election, the sale 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.
Under the Alpha Telcom service agreement, Alpha Telcom
negotiated the site agreement with the owner or leaseholder of
the premises where the pay telephones were to be installed.3
Alpha Telcom installed the telephones, paid the insurance
premiums on them, collected and accounted for the revenues
generated by the telephones, paid vendor commissions and fees,
3 At some point, ATC sent petitioner an undated letter,
informing him that one of the telephones assigned to him and
located at a business called Art’s Cafe had been replaced with
one located at a Black Angus restaurant. Petitioner had no
affiliation with either Art’s Café or Black Angus. Petitioner
did not initiate this change, and it was made without his prior
knowledge or assent.
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Last modified: November 10, 2007