BROKER AGREEMENT

 

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                                                                 EXHIBIT 10.20.4

 

 

 

                                BROKER AGREEMENT

 

     THIS AGREEMENT is effective as of the 1st day of August, 2005 by and

between EPIXTAR INTERNATIONAL CONTACT CENTER GROUP, INC. ("EPIXTAR") a

corporation duly organized and existing under the laws of the State of Delaware

with offices located at 11900 Biscayne Blvd., Suite 700, Miami, FL 33181, and

DDM CONSULTING, INC., a corporation organized and existing under the laws of the

State of Virginia with offices located at 3612 Oval Drive, Alexandria, VA 22305

(hereinafter referred to as "Broker").

 

         WHEREAS, EPIXTAR is providing data and trade secrets on a confidential

basis to Broker for the purpose of development and/or sale of contact center

and/or BPO services ("Services") to its customers;

 

         WHEREAS, Broker is engaged in the referral of various Services programs

for businesses which are users (hereafter "Customers") of said services and,

 

         WHEREAS, Customer(s) is/are defined to be and is/are limited to only

those business relationships/divisions initially introduced to EPIXTAR by the

Broker. This definition does not include any other business

relationship/division within the customer's company that has had or will have a

relationship with either EPIXTAR or another Broker.

 

         WHEREAS, there is a potential that Broker will act as a Broker to the

Business for EPIXTAR and, pursuant thereto, will enjoy a position of trust

wherein Broker is made privy to special knowledge concerning the Business; and

 

         WHEREAS, EPIXTAR and Broker agree that it is in their mutual best

interests, since Broker will be occupying a position of trust with EPIXTAR, for

Broker to execute an agreement wherein Broker covenants not to utilize or

otherwise disclose any trade secrets, product sources, or other confidential

information related to the Business and wish to protect their rights with

respect to any such information disclosed.

 

         THEREFORE, in consideration of the mutual covenants herein, the Parties

agree as follows:

 

Fee Service

 

1.    Broker has the obligation to assist in submitting various Services

     proposals from prospective Customers to EPIXTAR and also has the obligation

     to assist in submitting EPIXTAR marketing materials and proposals to

     prospective Customers. Broker's obligation is to extend EPIXTAR a right of

     first refusal on any new business it obtains, or any new business from

     existing clients. EPIXTAR has the right, but not the obligation, to accept

     or reject any such assisted proposals, which are submitted to it by Broker.

     For the purposes of this Agreement, the term "Customer" excludes

     independent business entities of a prospective client's organization.

     Nothing in this Agreement shall prohibit EPIXTAR from marketing its

     Services to other Customer entities which have not been introduced by

     Broker.

 

2.    On award of business to EPIXTAR by a Customer introduced to EPIXTAR by

     Broker and accepted by EPIXTAR, Broker and EPIXTAR will execute an "award

     of business" form detailing the Customer name, program and EPIXTAR's

     acceptance of such program subject to the terms and conditions stated

     herein. Broker will assist in implementation, using information provided by

     Customers, various BPO services and/or teleservices programs to achieve

     Customers' and EPIXTAR's objectives. Broker will act as a sales

     representative and will use its best efforts to expand Customers' account

     usage of EPIXTAR services once business is established, and will be paid

     fees as stated hereafter.

 

3.    Prior to entering into any formal contract or agreement with a Customer,

     all aspects of EPIXTAR's contract approval policy must have been adhered

     to. The Broker is not authorized to sign any document which contractually

     commits EPIXTAR to performance criteria or other Service Level Agreements

     (SLA's). Contract pricing and SLA's submitted to Customers by Broker

      without appropriate approvals are a violation of EPIXTAR policy. This may

     cause the contract to be terminated and/or the immediate termination of any

     right to payment under this Agreement.

 

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4.     Where a services contract is terminated or varied for any reason, EPIXTAR

     may be required to issue a credit against that contract. In those

     circumstances where a credit is issued, Broker will be debited the pro rata

     portion of his commission that is due back to the Customer, up to the

     entire contract if necessary.

 

5.    It is expressly understood that Broker represents that it has relationships

     with other companies in similar business as EPIXTAR, and that EPIXTAR may,

     at its option, now and hereafter retain the services of individuals or

     companies providing services similar to Broker, and that this Agreement

     between EPIXTAR and Broker is mutually non-exclusive.

 

Compensation

 

6.    Both EPIXTAR and Broker will individually agree upon each business

     opportunity. For each submission of a business proposal, the Parties agree

     to notify the other party in writing of any conflict or prior relationship

     with, or knowledge of, or claim to, that particular proposed Customer. On

     award of business from Customers presented by BROKER and accepted by

     EPIXTAR, EPIXTAR shall pay the following commission fees on collected

     revenue:

 

 

o     Philippine & Offshore*

 

<TABLE>

<CAPTION>

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      AVERAGE MONTHLY REVENUE PER HOUR                              COMMISSION PERCENTAGE

------------------------------------------------------- -----------------------------------------------------

<S>             <C>                                                          <C>  

                   < $7.99                                                  0.00%

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                $8.00 - $8.99                                               1.00%

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                $9.00 - $9.99                                               2.00%

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               $10.00 - $10.99                                              3.00%

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               $11.00 - $11.99                                              4.00%

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               $12.00 - $12.99                                              4.00%

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               $13.00 - $13.99                                              5.00%

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               $14.00 - $14.99                                              5.00%

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                  > $15.00                                                  5.00%

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</TABLE>

 

 

o     US*

 

<TABLE>

<CAPTION>

------------------------------------------------------- -----------------------------------------------------

      AVERAGE MONTHLY REVENUE PER HOUR                              COMMISSION PERCENTAGE

------------------------------------------------------- -----------------------------------------------------

<S>             <C>                                                          <C>  

                  < $18.99                                                   0.00%

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               $19.00 - $19.00                                              1.00%

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               $20.00 - $20.99                                              2.00%

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               $21.00 - $21.99                                              2.50%

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               $22.00 - $22.99                                               3.00%

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               $23.00 - $24.99                                              3.00%

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                  > $25.00                                                  3.00%

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</TABLE>

 

     *Tables above do not apply to non-voice BOP, for which commissions shall be

negotiated under separate agreement.

 

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     Broker shall receive a fee in the amount of One Hundred Percent (100%) of

     the commission percentage above on all collected revenues generated by BPO

     and/or telemarketing production for the first twenty-four (24) months of

     the program; for the months twenty-five (25) through thirty-six (36),

     BROKER will receive a fee in the amount of Fifty Percent (50%) of the

     commission percentage above on all collected revenues generated the

     Services. The term "collected revenues" specifically excludes all expenses

     billed to a customer on a pass-through basis (including without limitation

     telecommunications charges and subcontracted technology) and commissions

     payable to third parties. In order for BROKER to qualify for and receive

     any compensation on collected revenues, an agreement between EPIXTAR and

     Customer must be executed during the term of this Agreement. No commissions

     will be paid to Broker on any program that fails to generate a minimum of

     Nineteen Dollars ($19.00) of revenue per hour for US based programs, or

     Eight Dollars ($8.00) for Philippine and offshore based programs, for the

     monthly average revenue per hour for that program. For purposes of this

     Agreement, "average monthly revenue per hour" shall mean total collected

     revenue divided by total production hours for that particular month.

 

 

 

Payment Terms

 

7.    EPIXTAR will directly pay to Broker all fees due