Address Line 1 Address Line 2 Address Line 3 Dear, We have pleasure in confirming our offer of employment with ABCDE (Insert relevant detail) (“the Company") on the terms and conditions set out hereunder. Please sign the enclosed duplicate copy of this letter indicating your acceptance and return this copy to the Company . 1. COMMENCEMENT DATE You will commence your employment with the company on the 6th December 2006. 2. POSITION Your job title will be that of Sales Consultant and your responsibilities, performance objectives and requirements will be as outlined in the attached Annexure B. 2.1 You will report directly to the Sales Manager. 3. PROBATION You are initially appointed on three (3) months probation. During the first four (4) weeks of this period, this contract of employment may be terminated by either party upon giving one (1) week’s written notice. For the remainder of the probationary period, a two-week notice period applies. 4. REMUNERATION 4.1 Please refer to Annexure A which sets out your remuneration package. The Company’s current policy is to review salaries annually during or about July, but the company is not obliged to do so every year, or in any particular year . 4.2 5. PLACE OF WORK You are required to perform your duties at Insert address, or any other place or places as may be required by the Company from time to time. Page 2 / Page 2 6. HOURS OF WORK 6.1 Company’s normal working hours are: Monday to Friday from 08:30 m to 17:00 pm with a one hour lunch break each day. 6.2 From time to time you may be expected to perform your duties outside the stipulated hours of work. You hereby agree to work overtime as and when required and will be compensated therefore according to the requirements of the Basic Conditions of Employment Act. (Insert relevant detail) 7. LEAVE 7.1 Annual Leave 7.1.1. You are entitled to fifteen (15) working days leave on full pay in respect of each period of 12 consecutive months of service. 7.1.2 Leave accrues at the rate of 1, 25 days for each completed month of completed service. 7.1.3 At the Company’s discretion you may be required to take up to ten (10) days annual leave over the Christmas holiday period. Not more than three (3) weeks continuous annual leave may be taken. You will not be entitled to take annual leave of more than four (4) times per annum; however, you may take up to five (5) days of your entitlement on a casual basis. Annual leave may only be accumulated in accordance with the following provision: the maximum accumulation of annual leave remaining not taken within a period of twelve months is thirty (30) days at any one time. Accrued leave may only be taken with the written consent of a director. 7.1.4 7.1.5 7.1.6 7.1.7 7.2 Sick Leave 7.2.1 You are entitled to thirty (30) days sick leave over a period of thirty-six (36) consecutive months. During the first six (6) months of employment you are entitled to one (1) day’s sick leave for every completed month of service. In the event of absence due to illness in excess of two (2) consecutive days or on two (2) occasions in any eight-week period, you will be required to produce a medical certificate issued by a registered medical practitioner . In the event of absence due to illness on a Friday or Monday, or on a day immediately before (or after) a public holiday, you will be required to produce a medical certificate issued by a registered medical practitioner. 7.2.2 7.2.3 7.3 Family Responsibility Leave After four (4) months of service you will be entitled to three (3) days family responsibility leave per annum, which may be used when your child is born (male employees), is sick, or in the event that your spouse, partner, sibling, child, adopted child, parent, adoptive parent, grandparent or grandchild dies. Page 3/ Page 3 7.4 Maternity Leave (female employees) You are entitled to four (4) months unpaid maternity leave. Maternity leave may commence up to four (4) weeks prior to the expected date of birth. You may only return to work six (6) weeks after the birth. 7.5 Public Holidays The Company regards all statutory Public Holidays as declared by the Public Holidays Act, No. 36 of 1994, (Insert relevant detail) as paid public holidays. 8 TERMINATION OF EMPLOYMENT 8.1 Your contract of employment with the Company may be terminated at your or the Company’s discretion upon giving written notice as follows: 8.1.1 by giving one (1) week’s notice by either party during the first six (6) months of employment; by giving two (2) week’s notice by either party for the remainder of the first year of employment. thereafter, four (4) week’s written notice by either party. 8.1.2 8.1.3 9 RETIREMENT FUND 9.1 At the end of your probationary period you will be obliged to become a member of the Group Retirement Fund. The employee contributes 7, 5% of gross salary to the Fund. The full rules of the Fund are available from the Payroll Administrator. The death and disability benefits available to members of the Retirement Fund may be restricted by the underwriters thereof in the event of you not providing adequate evidence of your satisfactory state of health. For these purposes, employees may be required to undergo such medical examinations as the underwriters may require in order to confirm the extent of these benefits. All medical information obtained during such examinations will be handled in the strictest of confidentiality. 9.2 9.3 9.4 9.5 10 MEDICAL AID 10.1 Membership of the Company’s medical aid scheme is compulsory. The company will either pay 100% of the monthly cost of providing a Hospital Plan, or will apply the same amount towards your monthly contribution to one of the Independent Health schemes available that you elect to join instead. This subsidy excludes any additional costs and late joiner penalties that the preferred medical scheme may impose on the employee when applying for membership and/or their adult dependants. All such costs and penalties will be borne in full by the employee. Details of membership will be made available on commencement of employment. 10.2 Page 4/ Page 4 11 SECRECY AND CONFIDENTIALITY 11.1 You will keep confidential all information relating to the Company and it’s business, acquired by you during the period of your employment, and not disclose any such information either directly or indirectly to any person during or after the termination of your employment. As a condition of your employment you may be required to sign a secrecy agreement or any further secrecy confidentiality or restraint undertakings as the Company may in the normal course of its business from time to time be required to impose on all or any of its employees. Such undertakings are usually consequent with personal career growth and promotion within the company. 11.2 12. DISCIPLINARY CODE, PROCEDURES AND COMPANY RULES 12.1 You agree to abide by the Company’s policies, procedures, rules and standards as amended from time to time, which are available from the payroll Administrator. The Company’s Disciplinary Code and Procedures also form part of your terms and conditions of employment. The onus is on you to acquaint yourself and keep yourself acquainted with all the policies and procedures pertaining to your employment with the Company. 12.2 13. GENERAL 13.1 During the period of your employment you will:13.1.1 Comply with all reasonable and/or legitimate instructions given by the Company or by any person duly authorised by the Company; Devote the whole of your time and attention during normal business hours to the business of the Company; Not undertake any other employment or appointment or be concerned in any other business without prior written consent of the Company; Have all outgoing correspondence countersigned by the person noted in para 2.1 above until such time as the Company elects to waive this requirement or vary it to include only certain types of correspondence; 13.1.2 13.1.3 13.1.4 13.2 You hereby consent to your person, belongings and/or vehicle being searched in terms of the Company’s security procedures as amended from time to time, in the sole discretion of the Company. Your signature to this contract serves as written authorisation by you to the Company in terms of Section 34 of the Basic Conditions of Employment Act, 1997, (Insert relevant detail) to make certain deductions from your salary. 13.3 Page 5/ Page 5 I would like to take this opportunity of welcoming you to the Company and trust our association will be long and mutually beneficial. Yours sincerely ABCD Sales Manager I hereby accept the position under the terms and conditions of employment as set out above. Signed: ____________________ ABCDE _______________ Date ___________________ WITNESS ________________ Date GROUP NAME (PTY) LTD ANNEXURE A REMUNERATION PACKAGE (GROSS) Per Month Basic salary Car Allowance Cell Phone Allowance Total Pensionable Salary Per Annum Furthermore, the company will introduce a commission scheme for sales in addition to the above mentioned remuneration package. The commission structure in this regard is based on 5% of invoice value, net of any Sales Taxes on all sales initiated and concluded by you. Sales commission is paid the month after the sale is invoiced. In addition to the above, the Company will cover the following: Vehicle insurance costs. Fuel and toll tees associated with business mileage by issuing you with a Company fuel card. Please note that due to the tax laws, amounts accrued in this regard are taxable. Should you demonstrate your worth, suitability and capability as a member of the Company’s Sales team, the Company will be prepared (at its discretion) to review your position within the Company. This will include the possibility of taking up the position of Regional Sales Manager, with the responsibility of managing the Regional Sales Team. This would result in the replacement of a direct sales commission with participation in a Management Profit incentive, based on the Company’s pre-tax profits (as determined by reference to the Company’s June 30 annual financial statements) after deducting interest on shareholders’ funds, at prime. Any such payments will become due & payable upon completion of the Company’s audit in or about August of each year. Should you become a member of the Management team, in the event of the termination of your employment with the Company, for any reason, you will not be entitled to claim any profit participation bonus, or any part thereof, at any time prior to such being determined, audited and becoming payable to management as abovenoted. ANNEXURE B RESPONSIBILITIES, PERFORMANCE OBJECTIVES AND REQUIREMENTS Responsibilities: Your responsibilities will include: Lead identification and qualification Prospecting Sales activity management Closing of sales Your territory will be the Republic of South Africa, excluding the provinces of the Western Cape and KZN. Performance Objectives: Your performance objectives include: Sell the Company’s products and services to new and/or existing customers in the territory to achieve or exceed assigned revenue quotas. During the first three (3) months you will build up to a minimum of R100 000 in turnover per month (25 units), during the following three (3) months build up to a minimum of R200 000 in turnover per month (50 units) and by year end of your first year of employment achieve a minimum of R300 000 turnover per month (75 units). Thereafter revenue quotas will be discussed between yourself and management and reviewed accordingly. Develop new clients. Within three (3) months of your employment demonstrate that you are able to select those opportunities that lead towards “getting the order”. You must be able to use information obtained from prospect/customer conversations in combination with product information to identify or generate new sales opportunities within your territory. You must identify and qualify your prospective customer opportunities against key variables such as budget, timing, decision making processes, competition etc. Learn and execute appropriate sales methodologies (where appropriate). Within one (1) month of your start date, demonstrate a detailed understanding of the products and service offerings you will be reselling. Validation of this skill will be accomplished through mock sales presentations to Management. Sales pipeline and sales activity management. Immediately begin participation of weekly activity status report meetings with the Sales Manager. During these meetings you will be expected to review your sales activities and your sales pipeline. You must be prepared to describe each opportunity in detail as well as identify any obstacles which may impede your ability to close the sale. You must also provide sales reports as and when required by Management. Maintain customer records. Immediately begin to maintain current and accurate records about your potential clients, opportunities and existing clients. Act as the principal communicator of all customer requirements to the appropriate internal divisions. You will be responsible for ensuring the delivery of a “clean order” to complete the “sales to order” process. Outstanding customer service and rapport. Show in the first four (4) weeks that you are committed to service excellence when dealing with customer requests and that you are able to deal with such requests in an appropriate and timely manner. The Company will issue you with a laptop, projector and cellular phone. It is expected that these items will be used for business purposes as well as for demonstrations to prospective clients as and when this is required. All costs of the insurance for these items will be covered by the Company. You shall ensure that they are kept in a safe place after working hours e.g. in your place of residence to satisfy insurance requirements. Loss/theft of any of these items due to negligence by yourself in the safe keeping of them may result in claims made by the Company to you if the insurance requirements are not met.