1. Telkom Substantive Negotiations 2011 PRINCIPLES Job security Pay for performance Current benefits not to be eroded

2. Duration of Agreement 2 Years Build in provision for inflation.

3. Job Security No retrenchments for the duration of the agreement.

4. Salary Increase 12 % of the total package of the individual actual increase Implementation date 1 April 2011

5. Medical Aid Increase of 2 % of total package applicable in January 2012. The remainder of the increase to be applied on 1 April of each year Employees should be allowed to add additional beneficiaries for the duration of the agreement and also receive the subsidy.

6. Telephone Rebate All Employees to qualify for closer 4 package Employees to receive rebate on 8-ta equal to current option 1 (Blackberry package)

7. Team Award Employees to receive 20% of total package on MET Assessment Employees who receive an exceed assessment should receive 10% additional of total package- Not to be linked to stretch targets

8. Standby Allowance to be increased to R800 per week Not more than 2 occasions per month. Call out will receive 1 additional hour plus actual time on duty.

9. Leave Benefits Allocation to remain as per policy Encashment of 7 days per annum

10. Long service Awards 5 10 15 20 and more with increments of 5 years 25% of Monthly package 50 % of Monthly package 75% of Monthly package 100 % of Monthly package

11. M6/S6 Benefits Special dispensation for all employees who utilise their vehicles mainly for business purposes. (Where more than 50% of traveled km per month is for business) Insurance benefit optional –If not insured via Telkom full AA fuel rates to be applied.