As added assurance of an eventual payout, the TNCI/Alliance Equity Plan also calls for TNCI to enter into a contract for the sale of the company, rather than only its assets.

Twomey said TNCI, as a reseller and facilities-based VoIP provider, expects to achieve EBITDA at near 15 percent. Conservatively, he expects an EBITDA valuation of 10X, or a multiple of 18X monthly revenue, at the time of a sale.

The revenue goal over the next two and a half years as a result of the program are north of $11 million, Power said. Combining that with the company’s existing revenue means the valuation at the time of the sale likely will be nearly $300 million dollars, Twomey said.

Agent Participation and Payout

Agents can earn an equity share equal to as much as 7.5X to 9X of their monthly billing base at the time of a transaction, TNCI said. This equates to four to five years of commission.

To participate agents must meet a minimum threshold of $50,000 in billed monthly revenue by the end of 2010. “That’s 30 months to get them there,” Power said.