Document:

Exhibit 10.15

Prepared By and Return to:
Troy M. Lovell, Esq.
Foley & Lardner
P.O. Box 3391
Tampa, Florida  33601

                     FORBEARANCE AND MODIFICATION AGREEMENT

      THIS FORBEARANCE AND MODIFICATION AGREEMENT (the "Forbearance Agreement")
is made this 12th day of April, 2000, (the "Effective Date") by and between Bank
of America, N.A., d/b/a NationsBank, N.A., successor to NationsBank, N.A., f/k/a
NationsBank, N.A. (South), as successor in interest to NationsBank of Florida,
N.A. (the "Bank"); and Elcotel, Inc., a Delaware corporation ("Elcotel");
Elcotel Direct, Inc., a Delaware corporation; Technology Service Group, Inc.,
successor by merger with Elcotel Hospitality Services, Inc., a Delaware
corporation; and all subsidiaries of any of them (collectively, the "Borrower"),
jointly and severally.

                                    RECITALS

      WHEREAS, pursuant to a Restated Loan Agreement, the Borrower is indebted
to the Bank pursuant to a Consolidation Promissory Note (the "Consolidated
Note"), dated November 25, 1997, in the original principal amount of
$15,000,000.00, which Consolidated Note consolidated and renewed prior
indebtedness from the Borrower to the Bank;

      WHEREAS, the Consolidated Note was secured by certain personal property
more particularly described in that certain Restated Security Agreement of even
date therewith;

      WHEREAS, the Restated Loan Agreement was modified by that certain First
Amendment to Loan Agreement and Security Agreement dated March 29, 1999 (as
modified, the "Loan Agreement");

      WHEREAS, Borrower is indebted to the Bank pursuant to a First Replacement
Promissory Note ("Note 1") in the original principal amount of $10,000,000.00,
dated March 29, 1999, which renewed and replaced a portion of the Consolidated
Note;

      WHEREAS, Borrower is indebted to the Bank pursuant to a Promissory Note
("Note 2") in the original principal amount of $1,500,000.00, dated March 29,
1999;

                                      -1-
<PAGE>

      WHEREAS, Borrower is indebted to the Bank pursuant to a Second Replacement
Promissory Note ("Note 3") in the original principal amount of $4,000,000.00,
dated March 29, 1999, which renewed and replaced a portion of the Consolidated
Note;

      WHEREAS, Elcotel is indebted to the Bank pursuant to a Consolidated
Promissory Note ("Note 4") in the original principal amount of $1,920,000.00,
dated November 25, 1997;

      WHEREAS, Note 4 is secured by that certain Mortgage (as modified, the
"Mortgage") by Elcotel in favor of Carl G. Santangelo, as Trustee encumbering
certain real property located in Manatee County, Florida, as more particularly
described on Exhibit A (the "Mortgaged Property") recorded in Official Records
Book 1416, beginning at Page 5745, which was assigned to the Bank by an
assignment recorded in Official Records Book 1435, beginning at Page 4451, and
which was modified by instruments recorded in Official Records Book 1425,
beginning at Page 6814, Official Records Book 1435, beginning at Page 4456,
Official Records Book 1468, beginning at Page 2483, Official Records Book 1537,
beginning at Page 2935, all of the public records of Manatee County, Florida;

      WHEREAS, Borrower is indebted to the Bank pursuant to a Promissory Note
("Note 5") in the original principal amount of $2,000,000.00, dated June 29,
1999;

      WHEREAS, Note 5 is secured by a lien on certain personal property,
including all accounts and general intangibles, together with the following
specifically described property: all export accounts receivable, inventory, and
general intangibles, pursuant to that certain Commercial Security Agreement
dated June 25, 1999;

      WHEREAS, the Notes are in default by virtue of a breach of the covenants
contained in the Loan Agreement, more specifically, breach of the debt service
coverage ratio required by the Loan Agreement (the "Existing Default");

      WHEREAS, the outstanding principal balance on each of the Notes (Note 1,
Note 2, Note 3, Note 4, and Note 5 shall sometimes be collectively referred to
as the "Notes") as of April 1, 2000, is as follows:

                  Note 1 -       $6,095,400.00;
                  Note 2 -          280,656.92;
                  Note 3 -        3,322,296.94;
                  Note 4 -        1,761,610.69;
                  Note 5 -                0.00; and,

                                      -2-
<PAGE>

      WHEREAS, Borrower desires to modify the terms of the Notes and other Loan
Documents (the Notes, the Mortgage, the Consolidated Note, the Loan Agreement,
and all other documents executed in connection with the Notes and the loans
evidenced thereby are collectively referred to as the "Loan Documents") and to
have the Bank forbear enforcement of the Loan Documents and, notwithstanding the
existing default, the Bank is willing to forbear enforcement and modify the Loan
Documents, but only under the terms and conditions set forth herein.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:

      1.    Recitals. The foregoing recitals are true and correct and
            incorporated herein by reference.

      2.    Maturity Date. The Maturity Date of this Forbearance Agreement, Note
            1, Note 2, Note 3, Note 4, and Note 5, is July 31, 2000,
            notwithstanding anything to the contrary contained in the Loan
            Documents.

      3.    Forbearance. Provided that no event of default occurs under this
            Forbearance Agreement, the Bank shall forbear from enforcing its
            rights and remedies under the Loan Documents up to and including the
            Maturity Date. In the event of a default under this Forbearance
            Agreement, the Bank shall charge and Borrower shall pay interest at
            a default rate from the date of such default, but not prior to that
            date. The Existing Default shall not be considered a default under
            this Forbearance Agreement for the purposes of this paragraph.

      4.    Unfunded Commitments. Note 2 and Note 5 provide for future advance
            funding up to and including the total principal amount stated
            therein. Notwithstanding such language, Note 2 and Note 5 are hereby
            modified to terminate any obligation for future funding by the Bank
            under Note 2 or Note 5.

      5.    Borrowing Base. Notwithstanding anything to the contrary contained
            in Subparagraph 2D of the Loan Agreement or elsewhere in the Loan
            Documents, the Borrowing Base for Note 1 shall be based on a
            Borrowing Base formula such that the principal balance of Note 1
            shall not exceed the lesser of (a) $10,000,000.00 or (b) the SUM of
            (i) 80% of Eligible Domestic Accounts Receivable (as defined in

                                      -3-
<PAGE>

            the Loan Agreement), plus 75% of Foreign Accounts Receivable (as
            defined in the Loan Agreement) which as of the date of any such
            determination of the Borrowing Base have not been owing for more
            than ninety (90) days from the invoice date relating thereto, PLUS
            (ii) 40% of Eligible Inventory (as defined in the Loan
            Agreement)(which inventory portion of Note 1 shall be capped at
            $4,000,000), LESS (iii) the balance of Note 3, and LESS (iv) the
            aggregate face amount of all outstanding Letters of Credit (as
            defined in the Loan Agreement). All other terms of Subparagraph 2D
            of the Loan Agreement remain unchanged.

      6.    Borrowing Base Certificates. Beginning on April 17, and continuing
            on each Monday until the Maturity Date, Borrower shall provide the
            Bank with a current certificate, in a form satisfactory to the Bank,
            in its sole discretion, which shall calculate the Borrowing Base in
            accordance with the formula set forth above.

      7.    Overadvance. Borrower shall be permitted an overadvance in the
            amount of $2,800,000 beyond the amount permitted by the Borrowing
            Base formula set forth above, from the Effective Date of this
            Forbearance Agreement through June 30, 2000. Beginning July 1, 2000,
            and continuing until the Maturity Date, Borrower shall be permitted
            an overadvance in the amount of $1,500,000 beyond the amount
            permitted by the Borrowing Base formula.

      8.    Cure of Overadvance.

            a.    In the event that a Borrowing Base Certificate submitted by
                  Borrower in accordance with paragraph 6, above, shows an
                  overadvance by Borrower in excess of the amount permitted by
                  paragraph 7, above, Borrower shall, on the date such Borrowing
                  Base Certificate is due, make payment to the Bank sufficient
                  to bring the amount of Borrower's overadvance into compliance
                  with the terms of paragraph 7.

            b.    If, after Borrower makes one or more cure payments pursuant to
                  subparagraph (a), above, any subsequent Borrowing Base
                  Certificate shows an excess borrowing capacity under the terms
                  of paragraph 7, Borrower shall be permitted a re-advance of
                  such excess borrowing capacity, but only to the extent the
                  Bank has received cure payments in accordance with
                  subparagraph (a).

      9.    Financial Conditions. The Loan Agreement shall be amended as follows
            (definitions used herein shall have the same meaning as in the Loan
            Agreement).

                                      -4-
<PAGE>

            a.    Borrower shall maintain a consolidated ratio of Current Assets
                  to Current Liabilities of not less than 1.0 to 1.0 for each
                  calendar quarter, and 1.0 to 1.0 for fiscal year end measured
                  from Borrower's consolidated audited financial statements.

            b.    Borrower shall maintain a consolidated ratio of Total
                  Liabilities (as determined in accordance with GAAP) to
                  Tangible Net Worth of not more than 1.5 to 1.0 for each
                  calendar quarter and year end.

      10.   Interest Rate.

            a.    Note 1 and Note 2 shall accrue, and Borrower shall pay,
                  interest at a fluctuating rate equal to the "Prime Rate" of
                  the Bank plus 2.5% per annum from the Effective Date up to and
                  including payment in full or the occurrence of an event of
                  default other then the Existing Default. The "Prime Rate" is
                  the fluctuating rate of interest established by Bank from time
                  to time, at its discretion, whether or not such rate shall be
                  otherwise published. The Prime Rate is established by Bank as
                  an index and may or may not at any time be the best or lowest
                  rate charged by Bank on any loan.

            b.    Note 3 and Note 4 shall accrue, and Borrower shall pay,
                  interest at a fixed rate equal to the "Prime Rate" of the Bank
                  as of the Effective Date plus 2.5% per annum from the
                  Effective Date up to and including payment in full or the
                  occurrence of an event of default other than the Existing
                  Default.

            c.    If an event of default occurs under this Forbearance
                  Agreement, the Notes shall accrue, and Borrower and Guarantors
                  shall pay, interest at the maximum rate permitted by Florida
                  law.

      11.   Extension Fee. Concurrent with the execution of this Forbearance
            Agreement, Borrower shall pay to the Bank a commitment fee of
            $35,000.

      12.   Mortgage Modification. Concurrently with the execution of this
            Forbearance Agreement, Borrower and the Bank shall execute a
            Mortgage Modification Agreement, in form acceptable to the Bank and
            the Bank's counsel in their sole discretion, confirming the lien of
            the Mortgage and incorporating the terms of this Forbearance
            Agreement.

      13.   Second Mortgage. At Closing, Borrower shall execute and deliver to
            the bank a second-priority mortgage encumbering the Mortgaged
            Property as collateral for the Notes, up to a maximum of $1,000,000.

                                      -5-
<PAGE>

      14.   Accounts. Borrower shall deposit with the Bank and maintain there at
            all times an account containing all proceeds from Borrower's
            accounts receivable and any other monies collected from any other
            revenue source. Borrower agrees to transfer to an account with the
            Bank all sums currently maintained with any other financial
            institution.

      15.   Expenses. Borrower shall pay all costs and expenses incurred by the
            Bank in connection with the Existing Default, negotiating, drafting
            and closing this Forbearance Agreement and related documents,
            including, but not limited to, documentary stamp taxes, intangibles
            taxes, any other transactional taxes, recording fees, the Bank's
            attorneys fees, and title insurance premiums and search costs. All
            such expenses shall be due and payable at the time of the closing of
            this Forbearance Agreement, and shall be secured by the collateral
            of the Notes.

      16.   Inspection. The Bank shall be entitled to inspect all collateral for
            any of the Notes and all books and records of the Borrower upon
            written notice provided one business day prior to the date of
            inspection.

      17.   Cancellation of Arbitration. The parties agree that all arbitration
            provisions contained in any of the Loan Documents are hereby null
            and void.

      18.   Waiver and Release. To induce the Bank to enter into this
            Forbearance Agreement, Borrower, for themselves, and their agents,
            attorneys, successors and assigns, do hereby release the Bank and
            its predecessors, successors, assigns, officers, managers,
            directors, shareholders, employees, agents, attorneys,
            representatives, parent corporations, subsidiaries, and affiliates
            (collectively referred to as "Affiliates"), jointly and severally
            from any and all claims, counterclaims, demands, damages, debts,
            agreements, covenants, suits, contracts, obligations, liabilities,
            accounts, offsets, rights, actions and causes of action for
            contribution and indemnity, whether arising at law or in equity
            (including without limitation, claims of fraud, duress, mistake,
            tortious interference, usury, or control), whether presently
            possessed or possessed in the future, whether known or unknown,
            whether liability be direct or indirect, liquidated or unliquidated,
            whether presently accrued or to accrue hereafter, whether absolute
            or contingent, foreseen or unforeseen, and whether or not heretofore
            asserted, for or because of or as a result of any act, omission,
            communication, transaction, occurrence, representation, promise,
            damage, breach of contract, fraud, violation of any statute or law,
            commission or of any tort, or any other matter whatsoever or thing
            done, omitted or suffered to be done by Lender or any of its
            Affiliates,

                                      -6-
<PAGE>

            insofar as the same arise out of or relate to the Loans, the Loan
            Documents, the collateral securing the Loans, the debtor-creditor
            relationship between the parties, and all communications or contacts
            between the parties related to any of the foregoing, including this
            Forbearance Agreement, which has occurred in whole or in part, or
            was initiated at any time from the beginning of time up to and
            immediately preceding the moment of the execution of this Agreement.
            The rights and defenses being waived and released hereunder include
            without limitation any claim or defense based on the Bank having
            charged or collected interest at a rate greater than that allowed to
            be contracted for by applicable law as changed from time to time;
            provided, however, in no event shall such waiver and release be
            deemed to change or modify the terms of the Loan Documents or the
            Loans which provide that sums paid or received in excess of the
            maximum rate of interest allowed to be contracted for by applicable
            law, as changed from time to time, reduce the principal sum due,
            said provision to be in full force and effect.

      19.   Acknowledgement of Default. Borrower acknowledges that the Notes are
            currently in default because of the Existing Default. Nothing
            contained herein or in any document executed concurrently herewith
            shall constitute or be construed as a waiver of such default. Except
            to the extent specifically set forth herein, the Bank retains all of
            its rights and remedies with respect to the Notes and the Loan
            Documents.

      20.   WAIVER OF JURY TRIAL. THE PARTIES HERETO KNOWINGLY, IRREVOCABLY,
            VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A
            TRIAL BY JURY IN RESPECT OF ANY CLAIM, DEFENSE, DISPUTE OR
            LITIGATION BETWEEN OR AMONG ANY OF THE PARTIES HERETO. THIS
            PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO
            THIS DOCUMENT.

      21.   Modification of Loan Documents. The terms of the Loan Documents are
            hereby modified to incorporate and reflect the terms and conditions
            of this Forbearance Agreement. In the event of any conflict between
            this Forbearance Agreement and the Loan Documents, the terms of this
            Forbearance Agreement shall prevail.

      22.   Ratification of Loan Documents. Borrower hereby ratifies and
            confirms all of the terms, warranties, representations, covenants
            and conditions set forth in the Loan Documents and this Forbearance
            Agreement and hereby acknowledges the Loan Documents as modified
            constitute valid and binding obligations of Borrower. Without
            limiting the foregoing,

                                      -7-
<PAGE>

            Borrower hereby ratifies and confirms the grant and conveyance to
            the Bank of the collateral set forth in the Loan Documents as
            security for the repayment of the Notes and all mortgages, security
            agreements, and financing statements, wherever filed, or unfiled.
            Borrower further acknowledges and agrees the Loan Documents as
            modified are enforceable in accordance with their terms and free
            from claims of defense, setoff or recoupment against the Bank or any
            other party. Without in any way limiting the applicability of the
            foregoing, Borrower hereby agrees, confirms and ratifies that all
            collateral securing any of the Notes shall serve as collateral for
            each of the Notes, and to the extent necessary to do so, hereby
            re-assigns all collateral to the Bank as security for each of the
            Notes.

      23.   Events of Default and Remedies. The failure to pay any sum required
            hereunder when due, the breach of any representation or warranty
            contained herein or in any of the Loan Documents, and the breach of
            any of the Loan Documents, other than the Existing Default, shall
            constitute an event of default under this Forbearance Agreement, and
            the Bank shall be immediately entitled, without notice or demand, to
            enforce its rights and remedies under the Loan Documents, this
            Forbearance Agreement, and law. An event of default under this
            Forbearance Agreement shall constitute an event of default under
            each of the Notes; an event of default under any of the Notes shall
            constitute an event of default under the other Notes and under this
            Forbearance Agreement.

      24.   Indemnity. Borrower hereby agrees to indemnify and hold harmless
            (including payment of attorneys fees and costs) the Bank from and
            against any loss, cost or expense resulting from any claim by
            Florida taxing authorities regarding the Loans or this Forbearance
            Agreement. This obligation to indemnify the Bank shall survive
            payment of the Notes, and the satisfaction of any Loan Document,
            this Forbearance Agreement or other instrument securing the Loans.

      25.   Anti-Novation. It is the intent of the parties that this instrument
            shall not constitute a novation and shall in no way adversely affect
            the lien priority of the Loan Documents referred to above.

      26.   First Lien. Borrower warrants and represents that the liens granted
            in the Loan Documents are valid first liens on the property
            described therein, as modified hereby, except for the second
            mortgage granted herein and purchase money security interest in
            chattels, including leases. If at any time the Bank shall determine
            that the lien priority of these Loan Documents as stated therein is
            invalid or in jeopardy, or if at any time the Bank is unable to
            obtain title insurance insuring

                                      -8-
<PAGE>

            such liens as valid liens with the priority stated therein on the
            collateral described therein, then the Bank shall have the option of
            declaring the entire indebtedness secured by the Loan Documents,
            together with all accrued interest thereon, to be immediately due
            and payable in full.

      27.   Future Cooperation. Borrower agrees to cooperate with the Bank in
            giving effect to the purposes and terms of this Forbearance
            Agreement, including, but not limited to, the execution of
            additional documents deemed necessary or desirable by the Bank to
            document or perfect the Bank's rights under the Loan Documents and
            this Forbearance Agreement.

      28.   Representations. Borrower acknowledges, represents, warrants, and
            confirms the following:

            a.    Review of Agreement. Borrower has carefully read and
                  understands the effect of this Forbearance Agreement. Borrower
                  has had the assistance or the opportunity to seek the
                  assistance of separate legal counsel in carefully reviewing,
                  discussing and considering all terms of this Forbearance
                  Agreement;

            b.    Reliance Only on Representations Herein. The execution of this
                  Forbearance Agreement by Borrower is not based upon reliance
                  upon any representation, understanding or agreement not
                  expressly set forth herein. The Bank has not made any
                  representations to Borrower not expressly set forth herein;

            c.    Residency. Borrower is subject to the personal jurisdiction of
                  courts of the State of Florida;

            d.    Authority and Compliance. Borrower has full power and
                  authority to execute and deliver the Loan Documents and to
                  incur and perform the obligations provided for therein, all of
                  which have been duly authorized by all proper and necessary
                  action of the appropriate governing body of each. Each of
                  Borrower are corporations in good standing in the State of
                  Delaware and authorized to do business in Florida. Each of
                  Borrower shall provide a current incumbency certificate and
                  corporate resolution authorizing the entry into this
                  Forbearance Agreement. No additional consent or approval of
                  any court, public authority or other third party is required
                  as a condition to the validity of any Loan Document, and
                  Borrower is in compliance with all laws and regulatory
                  requirements to which each is subject;

                                      -9-
<PAGE>

            e.    Litigation. There is no proceeding against Borrower pending
                  or, to the knowledge of each, threatened before any court or
                  governmental authority, agency or arbitration authority,
                  except as disclosed to the Bank in writing and acknowledged by
                  the Bank prior to the date of this Forbearance Agreement;

            f.    Ownership of Assets. Borrower has good title to their
                  respective assets, and such assets are free and clear of
                  liens, except those granted to the Bank, except for purchase
                  money security interests in chattels, including leases, and as
                  disclosed to the Bank in writing prior to the date of this
                  Forbearance Agreement;

            g.    Taxes. All taxes and assessments due and payable by Borrower
                  have been paid or are being contested in good faith by
                  appropriate proceedings, and each has filed all tax returns
                  which it is required to file;

            h.    Voluntary Act. Borrower executes this Forbearance Agreement as
                  a free and voluntary act, without any duress, coercion or
                  undue influence exerted by or on behalf of the Bank or any
                  other party;

            i.    Representations True and Correct. All of the warranties and
                  representations made in this Forbearance Agreement and all
                  other Loan Documents, are materially true and correct as of
                  the date hereof and that Borrower is not in default of any of
                  the foregoing nor aware of any default with respect thereto;

            j.    Ownership of Claims. Borrower is the sole owner of the claims
                  or causes of action being released herein and has not conveyed
                  or assigned any interest in any such claims or causes of
                  action to any person or entity not a party hereto; and

            k.    Binding Agreement. This Forbearance Agreement does not violate
                  any law, rule, regulation, contract or agreement otherwise
                  enforceable by or against Borrower.

      29.   Miscellaneous.

            a.    Paragraph headings used herein are for convenience only and
                  shall not be construed as controlling the scope of any
                  provision hereof.

            b.    This Forbearance Agreement shall be governed by and construed
                  in accordance with the laws of the State of Florida

                                      -10-
<PAGE>

                  and of the United States of America and the rules and
                  regulations promulgated under the authority thereof. The
                  parties hereto acknowledge that this Forbearance Agreement
                  affects interstate commerce.

            c.    Time is of the essence of this Forbearance Agreement.

            d.    As used herein, the neuter gender shall include the masculine
                  and feminine genders, and vice versa, and the singular the
                  plural, and vice versa, as the context demands.

            e.    All costs incurred by the Bank in enforcing this Forbearance
                  Agreement and in collection of sums due the Bank from
                  Borrower, to include, without limitation, reasonable
                  attorney's fees through all mediation and arbitration
                  proceedings, trials, appeals and proceedings, to include,
                  without limitation, any proceedings pursuant to the bankruptcy
                  laws of the United States, shall be paid by Borrower.

            f.    This Forbearance Agreement shall inure to the benefit of and
                  be binding upon the parties hereto as well as their successors
                  and assigns, heirs and personal representatives.

      30.   Counterparts. This Forbearance Agreement may be executed in a number
            of multiple identical counterparts which, when taken together, shall
            constitute collectively one (1) agreement, but in making proof of
            this agreement it shall not be necessary to produce or account for
            more than one such counterpart executed by the party to be charged.
            Facsimile signatures may be deemed originals for all purposes.

      31.   Final Agreement. THIS FORBEARANCE AGREEMENT REPRESENTS THE ENTIRE
            AND FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
            BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT WRITTEN OR ORAL
            AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
            BETWEEN THE PARTIES. THIS FORBEARANCE AGREEMENT CONSTITUTES THE
            FINAL AND COMPLETE RELEASE OF THE BANK AND ITS AFFILIATES OF THOSE
            MATTERS SET FORTH HEREIN.

                                      -11-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Forbearance
Agreement to be executed the date first above written, effective as of the
Effective Date.

WITNESSES

                                          ELCOTEL, INC., a Delaware corporation

________________________________
Print Name:_____________________

                                          By:  /s/ William H. Thompson
                                               ---------------------------------
________________________________          Print Name: William H. Thompson
Print Name:_____________________          Title:  Senior Vice President

                                          ELCOTEL DIRECT, INC., a Delaware
________________________________          corporation
Print Name:_____________________

                                          By: /s/ William H. Thompson
                                               ---------------------------------
________________________________          Print Name: William H. Thompson
Print Name:_____________________          Title:  Vice President

                                          TECHNOLOGY SERVICE GROUP, INC.

                                          successor by merger with Elcotel
                                          Hospitality Services, Inc., a Delaware
________________________________          corporation
Print Name:______________________

                                          By:  /s/ William H. Thompson
                                               ---------------------------------
_________________________________          Print Name:  William H. Thompson
Print Name:_______________________         Title:  Vice President

                                      -12-
<PAGE>

                                          BANK OF AMERICA, N.A., d/b/a
                                          NationsBank, N.A.

________________________________
Print Name:_____________________

                                          By:___________________________________

________________________________          Print Name:___________________________
Print Name:_____________________          Title:________________________________

STATE OF _______________________
COUNTY OF ______________________

      The foregoing Forbearance Agreement was acknowledged before me, the
undersigned authority, this ___ day of April, 2000, by
_______________________________ as ______________________________ of Elcotel,
Inc., a Delaware corporation, ___ who is personally known to me or ___ who
produced ____________________ as identification.

                                          ______________________________________
                                          Notary Public, State of ______________
                                          Print Name:___________________________

                                          My Commission Expires:________________

                                          [SEAL]

STATE OF ____________________
COUNTY OF ___________________

      The foregoing Forbearance Agreement was acknowledged before me, the
undersigned authority, this ___ day of April, 2000, by
_______________________________ as ______________________________ of Elcotel
Direct, Inc., a Delaware corporation, ___ who is personally known to me or ___
who produced ____________________ as identification.

                                          ______________________________________
                                          Notary Public, State of ______________
                                          Print Name:___________________________

                                          My Commission Expires:________________

                                          [SEAL]

                                      -13-
<PAGE>

STATE OF ____________________
COUNTY OF ___________________

      The foregoing Forbearance Agreement was acknowledged before me, the
undersigned authority, this ___ day of April, 2000, by
_______________________________ as ______________________________ of Technology
Service Group, Inc., successor by merger with Elcotel Hospitality Services,
Inc., a Delaware corporation, ___ who is personally known to me or ___ who
produced ____________________ as identification.

                                          ______________________________________
                                          Notary Public, State of ______________
                                          Print Name:___________________________

                                          My Commission Expires:________________

                                          [SEAL]

STATE OF ____________________
COUNTY OF ___________________

         The foregoing Forbearance Agreement was acknowledged before me, the
undersigned authority, this ___ day of April, 2000, by ____________________ as
______________ of Bank of America, N.A. d/b/a NationsBank, N.A., ___ who is
personally known to me or ___ who produced ____________________ as
identification.

                                          ______________________________________
                                          Notary Public, State of ______________
                                          Print Name:___________________________

                                          My Commission Expires:________________

                                          [SEAL]

                                      -14-Exhibit 10.16

This Document Prepared By and
After Recording Return To:
Troy M. Lovell, Esq.
Foley & Lardner
100 N. Tampa Street, Suite 2700
Tampa, FL  33602
--------------------------------------------------------------------------------
Property I.D. Nos.:

      THE ENCUMBRANCE OF THIS INSTRUMENT IS
      LIMITED TO $1,000,000.00

                         MORTGAGE AND SECURITY AGREEMENT

      THIS MORTGAGE AND SECURITY AGREEMENT (the "Mortgage") is made this 12th
day of April, 2000, between Elcotel, Inc., a Delaware corporation ("Mortgagor"),
whose address is: 6428 Parkland Drive, Sarasota, Florida 34243, and Bank of
America, N.A. d/b/a NationsBank, N.A. (the "Mortgagee"), whose address is 100
North Tampa, Suite 1700, Tampa, Florida 33602.

                                    RECITALS:

      Mortgagor is indebted to Mortgagee pursuant to that certain Consolidated
Promissory Note dated November 25, 1997, in the principal amount of
$15,000.000.00, as revised by a First Replacement Promissory Note dated March
29, 1999, in the original principal amount of $10,000,000.00 ("Note 1"), a
Promissory Note dated March 29, 1999, in the original principal amount of
$1,500,000.00 ("Note 2"), a Second Replacement Promissory Note dated March 29,
1999, in the original principal amount of $4,000,000.00 ("Note 3"), a
Consolidated Promissory Note dated November 25, 1997, in the original principal
amount of $1,920,000.00 ("Note 4"), and a Promissory Note dated June 29, 1999 in
the original principal amount of $2,000,000.00 ("Note 5")(collectively, Note 1,
Note 2, Note 3, Note 4, and Note 5 shall be referred to as the "Notes").

      NOW, THEREFORE, to secure the performance by Mortgagor of all covenants
and conditions of the Notes, this Mortgage, and all other instruments securing
the Notes, and all existing or future notes, loans, guaranties, or other
indebtedness owed by Mortgagor to Mortgagee, including, without limitation, all
future advances, obligatory or otherwise, notwithstanding that such indebtedness
is secured by other mortgages, and including all expenses or obligations
incurred by Mortgagee pursuant to any existing or future mortgage, loan or
security agreement,

                                       1
<PAGE>

and in order to charge the properties, interests, and rights hereinafter
described with such payment and performance, and for and in consideration of the
sum of Ten and 00/100 Dollars ($10.00), Mortgagor does hereby mortgage to
Mortgagee and, where applicable, grant a security interest in:

                            I. THE MORTGAGED PROPERTY

      (A) All of the land in the County of Manatee, State of Florida, described
on Exhibit A attached hereto and made a part hereof, together with all
buildings, structures, and improvements located thereon, to have and to hold the
same, together with each and every tenement, hereditament, easement, right,
power, privilege, immunity, and appurtenance thereunto belonging or in anywise
appertaining, and the reversion and reversions, remainder and remainders, and
also the estate, right, title, interest, homestead, right of dower, separate
estate, property, possession, and claim whatsoever in law as well as in equity
of Mortgagor of, in, and to the same in every part and parcel thereof unto
Mortgagee in fee simple.

      (B) (i) All personal property and fixtures now or hereafter affixed to or
located on the property described in Paragraph A hereof which is deemed to be
fixtures and a part of the real property hereof which is deemed to be fixtures
and a part of the real property under applicable law; (ii) all articles of
personal property and all materials delivered to the property described in
Paragraph A hereof for use in any way thereof, and owned by Mortgagor; (iii) all
contract rights, general intangibles, actions, and rights in action, including,
without limitation, all rights to insurance policies and proceeds; (iv) all
equipment including, without limitation, parts, accessories, attachments,
special tools, additions, and accessions thereto; (v) all proceeds, products,
replacements, additions, substitutions, renewals, and accessions of any of the
foregoing items; and (vi) proceeds of conversion, whether voluntary or
involuntary, of the land described in paragraph (a), above, or any part thereof,
into cash or liquidated claims. This Mortgage is a self-operative security
agreement with respect to the above described property, but Mortgagor agrees to
execute and deliver on demand such other security agreements, financing
statements, and other instruments as Mortgagee may request in order to perfect
its security interest or to impose the lien hereof more specifically upon any of
such property. Mortgagee shall have all the rights and remedies, in addition to
those specified herein, of a secured party under the Florida Uniform Commercial
Code.

      (C) All rents, issues, profits, revenue, income, accounts, proceeds, and
other benefits flowing or derived from the property described in Paragraphs (A)
and (B) hereof, provided, however, that permission is hereby given to Mortgagor
so long as no default has occurred hereunder, to collect, receive, and use such
benefits from the property as they become due and payable, but not in advance
thereof.

                                       2
<PAGE>

      Everything referred to in Paragraphs (A), (B), and (C) hereof, and any
additional property hereafter acquired by Mortgagor and subject to the lien of
this Mortgage, or any part of these properties, is herein referred to as the
"Mortgaged Property."

      PROVIDED ALWAYS, that if Mortgagor shall pay to Mortgagee the Notes at the
time and in the manner stipulated therein, and in all other instruments securing
the Note, and faithfully perform all the covenants and agreements in this
Mortgage, and in all other instruments securing the Notes, to be kept,
performed, or observed by Mortgagor, then this Mortgage shall cease and be void,
but shall otherwise remain in full force and effect.

                           II. COVENANTS OF MORTGAGOR

      2.1. Compliance with Notes and Mortgage: Warranty of Title.

      Mortgagor shall comply with all provisions hereof, of the Notes, and of
every other instrument securing the Notes, and will promptly pay to Mortgagee
the principal with interest thereon, and all other sums required to be paid by
Mortgagor under the Notes, this Mortgage, and all other instruments securing the
Notes.

      2.2. Payment of Taxes and Liens.

      Mortgagor shall pay all taxes, assessments, liens, levies, liabilities,
obligations, and encumbrances of every nature and kind whether now or hereafter
imposed, levied, or assessed on the Mortgaged Property, this Mortgage, or the
indebtedness secured hereby. Without limiting the generality of the foregoing,
the Mortgagor shall pay all obligations secured by Mortgages having priority
hereto, and an event of default upon such prior encumbrances shall be a default
hereunder. All such payments shall be made when due and payable before they
become delinquent and before any interest attaches or any penalty is incurred;
provided, however, that the Mortgagor may withhold tax payments which are
contested in good faith by appropriate judicial or administrative proceedings
for so long as such tax delinquency does not adversely affect the mortgage or
lien hereunder. Insofar as any such lien or encumbrance is of record, the same
shall be promptly satisfied or released and evidence of such satisfaction or
release shall be given to Mortgagee.

      2.3. Insurance.

      Mortgagor shall keep the improvements now existing or hereafter erected on
the Mortgaged Property and all parts of the Mortgaged Property insured as may be
required from time to time by Mortgagee against loss by fire or other casualty
and contingency in such amounts and for such periods as may be required by
Mortgagee, and to pay promptly, when due, all premiums for such insurance. All
such insurance shall be carried with companies approved by Mortgagee and the

                                       3
<PAGE>

policy and renewals thereof shall be held by Mortgagee and have attached thereto
loss payable clauses in favor of and in form acceptable to Mortgagee. In the
event of loss, Mortgagor shall give immediate notice by mail to Mortgagee and
Mortgagee may make proof of loss if not made promptly by Mortgagor, and each
insurance company concerned is hereby authorized and directed to make payments
for such loss directly to Mortgagee instead of to Mortgagor, or to Mortgagor and
Mortgagee jointly, and the insurance proceeds or any part thereof may be applied
by Mortgagee, at its option, after deducting therefrom all of its expenses,
including, without limitation, attorney's fees and costs, either to reduction of
the indebtedness hereby secured or to the restoration or repair of the property
damaged. In the event of foreclosure of this Mortgage or other transfer of title
to the Mortgaged Property in extinguishment of the indebtedness secured hereby,
all right, title, and interest of Mortgagor in and to any insurance policies
then in force shall pass to the purchaser or grantee. Mortgagor shall deliver to
Mortgagee a certificate or certificates of insurance evidencing the foregoing
coverages in force and effect, naming Mortgagee an additional loss payee and
providing the insurer shall give Mortgagee not less than 30 days notice of
cancellation, termination, or non-renewal.

      2.4 Condemnation.

      If all or any material part of the Mortgaged Property shall be damaged or
taken through condemnation (which term when used herein shall include any damage
or taking by any governmental authority or any other authority authorized by the
laws of the State of Florida or the United States of America to so damage or
take, and any transfer by private sale in lieu thereof), either temporarily or
permanently, then the entire outstanding indebtedness and other sums secured
hereby shall, at the option of Mortgagee, become immediately due and payable.
Mortgagee is hereby authorized, at its option, to commence, appear in, and
prosecute, in its own or Mortgagor's name, any action, or proceeding relating to
any condemnation, and to settle or compromise any claim in connection therewith.
All such compensation awards, damages, claims, rights of action, and proceeds,
and any other payments or relief, and the rights thereto, are hereby assigned by
Mortgagor to Mortgagee, who, after deducting therefrom any amounts due upon
senior encumbrances, and all of its expenses, including attorney's fees and
costs, may release any monies so received by it for the benefit of Mortgagor,
without affecting the lien of this Mortgage or may apply the same, in such
manner as Mortgagee shall determine, to the reduction of the sums secured
hereby, this Mortgage, or any other instruments securing the Note. Any balance
of such monies then remaining shall be paid to Mortgagor. Mortgagor agrees to
execute such further assignments of any compensations, awards, damages, claims,
rights of action, and proceeds as Mortgagee may require.

                                       4
<PAGE>

      2.5 Care of Mortgaged Property.

      Mortgagor shall not remove or demolish any building or other property
forming a part of the Mortgaged Property without the prior written consent of
Mortgagee, nor permit, commit, or suffer any waste, impairment, or deterioration
of the Mortgaged Property or any part thereof, and shall keep the same and the
improvements thereof in good condition and repair. Mortgagor shall notify
Mortgagee in writing within five (5) days of any injury, damage, or impairment
of or occurring on the Mortgaged Property including, without limitation, serious
injury or loss by death or otherwise occurring on the Mortgaged Property.
Mortgagee may, at Mortgagee's discretion, have the Mortgaged Property inspected
at the time.

      2.6 Mortgagee's Right to Make Certain Payments.

      In the event Mortgagor fails to pay and/or discharge the taxes,
assessments, liens, levies, liabilities, obligations, and encumbrances, or fails
to keep the Mortgaged Property insured or to deliver the policies, premiums
paid, or fails to repair the Mortgaged Property as herein agreed, Mortgagee is
hereby authorized, at its election, to pay and/or discharge the taxes,
assessments, liens, levies, liabilities, obligations, and encumbrances, or any
part thereof, without being required to investigate the validity and/or
necessity thereof, and without Mortgagee waiving or affecting any option, lien,
equity, or right under or by virtue of this Mortgage. The full amount of each
and every such payment made by Mortgagee shall be immediately due and payable by
Mortgagor and shall bear interest from the date thereof until paid at the
Default Rate, as hereinafter defined, and together with such interest, shall be
secured by the lien of this Mortgage. Nothing herein contained shall be
construed as requiring Mortgagee to advance or expend monies for any of the
purposes mentioned in this Paragraph.

      2.7 Payment of Expenses.

      Mortgagor shall pay all of the costs, charges, and expenses, including,
without limitation, reasonable attorney's fees and costs, disbursements, and
costs of abstracts of title, incurred or paid at any time by Mortgagee because
and/or in the event of the failure on the part of Mortgagor promptly and fully
to perform, comply with, and abide by each and every stipulation, agreement,
condition, and covenant of the Notes, this Mortgage, and any other instrument
securing the Note. Such costs, charges, and expenses shall be immediately due
and payable, without notice, demand, attempt to collect, or suit pending. The
full amount of each and every payment shall bear interest from the date thereof
until paid at the Default Rate, as hereinafter defined. All such costs, charges
and expenses so incurred or paid, together with such interest, shall be secured
by the lien of this Mortgage.

      2.8. No Transfer.

      It is understood and agreed by Mortgagor that as part of the inducement to
Mortgagee to make the loan evidenced by the Notes, Mortgagee has

                                       5
<PAGE>

considered and relied on the credit worthiness and reliability of Mortgagor.
Mortgagor covenants and agrees not to sell, convey, transfer, lease, or further
encumber any interest in or any part of the Mortgaged Property without the prior
written consent of Mortgagee, and any such sale, conveyance, transfer, lease, or
encumbrance made without Mortgagee's prior written consent shall be null and
void. If any person should obtain an interest in all or any part of the
Mortgaged Property pursuant to the execution or enforcement of any lien,
security interest, or other right, directly or indirectly, whether superior,
equal or subordinate to this Mortgage or the lien hereof, such event shall be
deemed to be a transfer by Mortgagor and a default hereunder.

      2.9. After Acquired Property.

      The lien of this Mortgage will automatically attach, without further act,
to all after acquired property, whether real or personal, located in or on, or
attached to, or used or intended to be used in connection with or with the
operation of the Mortgaged Property.

      2.10. Additional Documents.

      At any time and from time to time, upon Mortgagee's request, Mortgagor
shall make, execute, and deliver or cause to be made, executed and delivered to
Mortgagee and, where appropriate, shall cause to be recorded or filed and from
time to time thereafter to be rerecorded or refiled at such time and in such
offices and places as shall be deemed desirable by Mortgagee any and all such
further mortgages, instruments of further assurance, certificates, and other
documents as Mortgagee may consider necessary or desirable in order to
effectuate, complete, enlarge, or perfect, or to continue and preserve the
obligations of Mortgagor under the Notes and this Mortgage, and the lien of this
Mortgage upon all of the Mortgaged Property, whether now owned or hereafter
acquired by Mortgagor. Upon failure by Mortgagor to do so, Mortgagee may make,
execute, record, file, rerecord, refile any and all such mortgages, instruments,
certificates, and documents for and in the name of Mortgagor, and Mortgagor
hereby irrevocably appoints Mortgagee as the agent and attorney-in-fact of
Mortgagor to do so.

                             III. EVENTS OF DEFAULT

      Any one of the following shall constitute an Event of Default:

      3.1. (a) Failure by Mortgagor to pay, as and when due and payable,
including cure periods, any installments of principal or interest due under the
Notes, or any deposits for taxes and assessments or insurance premiums due
hereunder, any and all other sums to be paid by Mortgagor hereunder, under the
Notes, or under any other instrument securing the Notes or any sums to be paid
by

                                       6
<PAGE>

the Mortgagor under any instrument secured by a mortgage senior in priority to
this Mortgage.

      (b) Failure by Mortgagor to duly keep, perform, and observe any covenant,
condition, or agreement in the Notes, this Mortgage, or any other instrument
securing the Notes for a period of thirty (30) days after Mortgagee gives
written notice specifying the failure.

      (c) If Mortgagor or any guarantor or endorser of the Notes (i) files a
voluntary petition in bankruptcy, or (ii) is adjudicated as bankrupt or
insolvent, or (iii) files any petition or answer seeking or acquiescing in any
reorganization, management, composition, readjustment, liquidation, dissolution,
or similar relief for itself under any law relating to bankruptcy, insolvency,
or other relief for debtors, or (iv) seeks, consents to, or acquiesces in the
appointment of any trustee, receiver, master, or liquidator of itself or of all
of any part of the Mortgaged Property, or (v) makes any general assignment for
the benefit of creditors, or (vi) makes any admission in writing of its
inability to pay its debts generally as they become due; or (vii) becomes
subject to any order, judgment, or decree which involves a court arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under any
present or future federal, state, or other statute, law, or regulation relating
to bankruptcy, insolvency, or other relief for the debtors, which order,
judgment, or decree remains unvacated and unstayed for an aggregate period of
sixty (60) days, whether or not consecutive, from the date of entry thereof; or
(viii) any trustee, receiver, or liquidator of Mortgagor or of any part of the
Mortgaged Property is appointed without the prior written consent of Mortgagee,
which appointment shall remain unvacated and unstayed for an aggregate of sixty
(60) days, whether or not consecutive.

      (d) Any breach of any warranty or material untruth of any representation
of Mortgagor contained in the Notes, this Mortgage, or any other instrument
securing the Note.

      (e) An event of default under any existing or future notes, loans,
advances, guarantee, or other indebtedness owed to the Mortgagee by the
Mortgagor, or any or either of them, or under any instrument securing such
indebtedness.

                            IV. REMEDIES OF MORTGAGEE

      4.1. Acceleration.

      If an Event of Default shall have occurred, Mortgagee may declare the
outstanding principal amount of the Notes, the interest accrued thereon, and all
other sums secured hereby, to be due and payable without demand, notice, or
presentment for payment.

                                       7
<PAGE>

      4.2. Other Remedies.

      If an Event of Default shall have occurred, Mortgagee may proceed by suit
or suits at law or in equity or by any other appropriate proceeding or remedy;
(a) to enforce payment of the Notes or the performance of any term hereof or any
other right; (b) to foreclose this Mortgage and to sell, as an entirety or in
separate lots or parcels, the Mortgaged Property under the judgment or decree of
a court or courts of competent jurisdiction; (c) to collect all rents, issues,
profits, revenues, income, accounts, proceeds, or other benefits from the
Mortgaged Property; (d) to seek appointment of a receiver to enter upon and take
possession of the Mortgaged Property and to collect all rents, issues, profits,
revenues, income, accounts or other benefits thereof and apply the same as the
court may direct, and such receiver shall have all rights and powers permitted
under law; and (e) to pursue any other remedy available to it, including taking
possession of the Mortgaged Property without notice or hearing to Mortgagor.
Mortgagee shall take action either by such proceedings or by the exercise of its
power with respect to entry or taking possession, or both, as Mortgagee may
determine.

      4.3. No Waiver.

      No delay or omission of Mortgagee or of any holder of the Notes and
Mortgage to exercise any right, power, or remedy accruing upon any Event of
Default shall exhaust or impair any such right, power, or remedy to be construed
as a waiver of any such Event of Default or constitute acquiescence therein.

      4.4. Non-Exclusive Remedies.

      No right, power, or remedy conferred upon or reserved to Mortgagee by the
Notes, the Mortgage, or any other instrument securing the Notes, is exclusive of
any other right, power or remedy of Mortgagee, but each and every such right,
power and remedy shall be cumulative and concurrent and shall be in addition to
any other right, power or remedy given hereunder, under the Note or any other
instrument securing the Notes, or now or hereafter existing at law, in equity,
or by statute.

                                V. MISCELLANEOUS

      5.1. Successors and Assigns Bond.

      Whenever one of the parties hereto is named or referred to herein, the
heirs, personal representatives, successors, and assigns of such party shall be
included, and all covenants and agreements contained in this Mortgage, by or on
behalf of Mortgagor or Mortgagee, shall bind and inure to the benefit of their
respective heirs, personal representatives, successors and assigns.

                                       8
<PAGE>

      5.2 Invalid or Unenforceable.

      In the event that any of the covenants, agreements, terms, or provisions
contained in the Notes, this Mortgage, or any other instrument securing the
Notes, shall be invalid, illegal, or unenforceable in any respect, the validity
of the remaining covenants, agreements, terms or provisions contained herein, in
the Note, and any other instrument securing the Note, shall not be in any way
affected, prejudiced, or disturbed thereby.

      5.3. Future Advances.

      This Mortgage is given to secure not only existing indebtedness, but also
such future advances, whether such advances are obligatory or are to be made at
the option of Mortgagee, or otherwise, as are made within twenty (20) years from
the date hereof, to the same extent as if such future advances are made on the
date of the execution of this Mortgage. The total amount of indebtedness that
may be so secured at one time shall not exceed twice the original face amount of
the Note, plus interest thereon, and any disbursements made for the payment of
taxes, levies, or insurance on the Mortgaged Property, with interest on such
disbursements at the Default Rate as hereinafter defined.

      5.4. Obligation of Mortgagor.

      Mortgagor shall pay the cost of releasing or satisfying this Mortgage of
record.

      5.5. Default Rate.

      "Default Rate" has the meaning given to it in the Note.

                                       9
<PAGE>

      IN WITNESS WHEREOF, Mortgagor has caused this Mortgage to be executed this
12th day of April, 2000.

WITNESSES

                                           ELCOTEL, INC., a Delaware corporation

______________________________
Signature

______________________________             By:  /s/ William H. Thompson
                                           -------------------------------------
Printed Name                                Print Name:  William H. Thompson

                                            Title: Senior Vice President

______________________________
Signature

______________________________
Printed Name

STATE OF FLORIDA
COUNTY OF _________

      The foregoing instrument was acknowledged before me this ___ day of April,
2000, by ________________________________, as ___________________________ of
Elcotel, Inc., a Delaware corporation, who is personally known to me or has
produced ______________ _______________________________ as identification.

                                            _______________________________
                                            Notary Public, State of Florida

                                            Print, Stamp or Type Name:

                                            _______________________________

                                       10

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