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w PO Box 7075, Lakeland, Florida 33807-7075 Phone (863) 682-5200 Fax: (863) 6824800 Pay Telephone Location Lease This Pay Telephone Lease Agreement (the "Agreement") is made this 11th day of March 2004, Between. Indian River County hereinafter referred to as "Lessor") and ATS PayPhones, Inc , (hereinafter referred to as "Lessee"). Whereas Lessee is in the business of installing, maintaining and servicing pay telephones; Whereas Lessee desires to install and maintain one or more pay telephones on the premises of Lessor; and Whereas Lessor desires to permit it such installation subject to the terms and conditions contained herein, it is mutually agreed by and between the parties as follows: 1 . Lease of Space Lessor hereby grants to Lessee the exclusive right to install and maintain one or more pay telephones upon the premises of Lessor described hereinafter and, in furtherance of such right, lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the location or locations (hereinafter referred to as the "Leased Space") more specifically described in the site survey attached hereto and made a part hereof. 2. Notices Any and all notices to be given hereunder shall be properly deemed given when written and hand delivered or sent by registered or certified mail, postage prepaid, return receipt requested, to the respective addresses set forth below or at such other address as specified by written notice delivered in accordance herewith. Lessor: Indian River County Attn: General Services Lessee: ATS PayPhones Inc. 1840 25' Street PO Box 7075 Vero Beach, FI 32960 Lakeland, Florida 33807-7075 Phone: (772) 226-1223 Phone: (863) 682-5200 Fax: (772) 770-5095 Fax: (863) 682-8800 3. Rent/Fees/Commissions Lessor Agrees to pay to Lessee a first month fee of $89.50 per phone and on a monthly basis, a service fee of $49.50 per month, per phone. The monthly fee is subject to change if ATS receives any dial tone / line charge increases imposed on ATS by the local LEC or any other unseen operational cost imposed on us If this event were to arise Lessee would notify Lessor sixty days in advance in writing. Additionally, phones that have coin revenue exceeding $89.50 per month gross can qualify for free service. We will install and charge our normal rates until we establish revenue data from new locations and adjust accordingly. Phones that we charge for can receive commissions. We will take the monthly coin totals form all phones being paid for and if the total exceeds $30.00 of coin revenue per phone, we will then either issue, a credit towards next months invoice, or send commission check to Lessor, at the rate of 201/6. 4. Term and Renewal The tern of this agreement shall commence upon the date on which Lessee first installs one or more pay telephones in the Leased Space, which shall be on or about March 31 , 2004, and shall continue for one hundred twenty ( 120) months thereafter. The location Owner/Operator may have the pay telephone removed prior to the termination of this agreement by giving the Lessee a written notice sixty- (60) day notice at any time prior to the termination of this agreement. After such termination, neither party shall have any further claim against the other. Additionally, upon expiration of this contract the service can continue on a month-to-month basis. 5. Responsibilities of Lessor Lessor hereby agrees that: A. During the term of this agreement or any renewal thereof lessor shall not grant the right to install pay telephones upon the premises on which the Leased Space is looted to any company or person other than Lessee. B. Lessor shall promptly notify Lessee of any malfunction of any pay telephone installed in the Leased Space or any material interruption of service to any such pay telephone. C. Lessor shall allow lessee reasonable access to the pay telephone so installed during normal business hours for the purpose of repair, maintenance, replacement or the collection of all income derived therefrom. D. Lessor shall exercise reasonable care in preventing damage to or destruction of pay telephones installed by lessee pursuant to this agreement but shall not be liable for any loss, damage or destruction unless caused by the willful misconduct or negligence of Lessor, its employees or agents. www . atspayphones . com