Employee Engagement and

Commitment
No company, small or large, can win over the long run without energized employees who
believe in the firm's mission and understand how to achieve it. That's why you need to take the
measure of employee engagement at least once a year through anonymous surveys in which
people feel completely safe to speak their minds.
Jack and Suzy Welch

Employees who are engaged in their work and committed to their organizations give companies
crucial competitive advantages—including higher productivity and lower employee turnover.
Thus, it is not surprising that organizations of all sizes and types have invested substantially in
policies and practices that foster engagement and commitment in their workforces.

Indeed, in identifying the three best measures of a company’s health, business consultant and
former General Electric CEO “Jack Welch” recently cited employee engagement first, with
customer satisfaction and free cash flow coming in second and third, respectively.

Reaping Business Results at Caterpillar

Construction-equipment maker Caterpillar has garnered impressive results from its
employee engagement and commitment initiatives, including:
1. $8.8 million annual savings from decreased attrition, absenteeism and overtime
(European plant)
2. 70% increase in output in less than four months (Asia Pacific plant)
3. decrease in the break-even point by almost 50% in units/day, and a decrease in
grievances by 80% (unionized plant)
4. $2 million increase in profit and a 34% increase in highly satisfied customers (start-up
plant)

The Link Between Employer Practices and Employee Engagement

How does an engaged workforce generate valuable business results for an
organization?
The process starts with employer practices such as job and task design,
recruitment, selection, training, compensation, performance management and
career development. Such practices affect employees’ level of engagement as
well as job performance. Performance and engagement then interact to
produce business results. Figure 1 depicts these relationships
Whereas the Second Party is a company engaged in the work of corporate advising and more
specifically in the work of business development of various companies through its very
specialized and highly skilled activities and services.

The parties have discussed the matter of business development for the First party and have
agreed that the Second party shall take up the work of business development for the First party
and have agreed to enter into a agreement for mutual benefits on following terms:

1. That the Second party shall take up the job of business development at its level on behalf of
the First Party.

2. That the Second party shall use all the ways and means in this regard for the business
development of the First Party at its own cost.

3. That the Second party shall gather all the information related to the sales, feedback, market
search and quality enhancement of the products of the First party and shall take effective steps
for business development for the First party.

4. That the Second party shall also gather all the detailed information relating to tenders issued
by various departments, bodies, companies etc for the said product and shall forward the same to
the First party and shall provide all possible support in this regard to the First party to procure the
orders for its products. The Second party shall also provide all the relevant information in this
regard to the First party which can be used for the bidding in the said tenders by the First party.
The Second party will do all the activities relating to the successful bidding by the First party for
the said tenders as and when required.

5. That the Second party has at present forwarded one specific lead with details to the First party
regarding a tender floated by the
————————————————————————————-. The Second party is
providing all possible professional, advisory jobs in this regard with wide activities of field
survey, technical survey, market survey etc which shall be very useful and beneficiary to the
First party in determining the details of the said tender. The First party shall bid for the said
tender and shall quotes the rates as per its own business consideration.

6. That the Second party shall be entitled to professional charges of ——% of the total contract
value quoted by the First party in bid filed by it in the tender document. The Second party shall
claim the said amount only in the event the said tender is awarded to the First party by the
department.
Article 5
COMPENSATION FOR SERVICES
5.1 Company shall pay Consultant, as complete compensation for Services, only in
accordance with the terms of Appendix B, attached hereto and made a part of this
Agreement. Unless otherwise provided in Appendix B, Consultant bears all expenses of
its own staff and facilities required to perform the Services.
5.2 Consultant shall send Company a detailed invoice for all amounts payable (including
allowable travel and other expenses), on a current calendar-month basis, in the currency
set out in Appendix B. This invoice shall meet the requirements set out in Appendix B.
Company shall pay each invoice within thirty (30) days after receipt and approval.
However, if Company objects to any part of an invoice, Company shall pay Consultant
the undisputed amount within the thirty (30) day period, and the Parties shall then attempt
to resolve the disputed amounts as soon as reasonably possible.
5.3 Optional
If this Agreement terminates on a date other than the end of a pay period as described in
Appendix B, any fee payable to Consultant when the Agreement terminates shall be
prorated based upon the ratio of the number of days prior to such termination date to the
total number of days in the pay period.
5.4 Optional
Company shall make all payments to Consultant by bank wire transfer to the account of
Consultant at a designated financial institution in the country where Consultant has its
principal place of business or renders the Services or by check made payable to
Consultant for delivery to Consultant’s principal place of business. No payment to
2008 Consultant Agreement for Business Development in a Host Country
6
Consultant will be in cash or bearer instrument, nor will any payment be made to any
person or entity other than Consultant or any principal, officer, or employee of
Consultant. Further, no payment will be made in any location other than in the country
where Consultant has its principal place of business or renders the Services.
5.5 Optional
If Consultant is performing services for other companies and if Consultant incurs
allowable travel or other expenses while performing services for other companies and for
Company, Consultant shall bill Company only for its proportional part of such expenses.
5.6 Optional
Company may set off any amount Consultant owes Company against any amount payable
by Company to Consultant.

APPENDIX B
to
CONSULTING AGREEMENT
COMPENSATION - PRODUCTS AND SERVICES
COMPENSATION
Company shall pay Consultant compensation for Services as follows:
[If you wish to pay milestone payments conditioned on success, you may wish to use clauses
structured as follows:]
Milestone payment of [sum] within [number of days] days after the date on which:
Alternative 1
Company and [name of government, government company or other entities] execute a
definitive [name of agreement] allowing [description of project] to proceed.
Alternative 2
Company begins on-site construction of the [describe facility].
Alternative 3
Company begins production of [name of product] in commercial quantities from [description of
project].
[A clause similar to this can be structured around other milestones, such as financial closing,
production at a certain level, and so on.]
[If you have milestone payments conditioned on success, you may wish to consider the
usefulness of the following optional provisions.]
Optional
If Company’s participating interest in the Project is or becomes less than [P]%, then each
subsequent milestone payment shall be reduced to a number which is the product of the relevant
payment figure set out above multiplied by a fraction, the denominator of which is [P] and the
numerator of which is Company’s participating interest (e.g., if Company’s participating interest
is 10%, then the first milestone payment is calculated thusly: U.S. $[●] x 10/P; the first
milestone payment is therefore U.S. $[●] . For purposes of this Appendix B the Company’s
participating interest is the percentage in which Company is to participate in the net proceeds of
the Project.
[A clause similar to this can be structured around other variables, such as royalty rate, tax
rate, size of field or plant, etc.]
C-2
Optional
If Company fails to achieve any milestone, then Company is not liable to Consultant for the
compensation corresponding to such milestone.
Company shall reimburse Consultant for expenses, including entertainment or travel expenses, if
Consultant has obtained the written consent of the agreement monitor prior to incurring any such
expenditures and if such expenditures are supported by receipts satisfactory to Company.
Consultant shall strictly observe the applicable prohibitions under Company guidelines or under
applicable laws relating to the entertainment of Officials and employees and the prohibitions
against giving anything of value to such Officials and employees.
All payments to Consultant will be made in the following [state the currency] currency and will
be made by check or wire transfer to an account in the name of Consultant [in the country where
most of the services are performed or] in the country where Consultant normally conducts
business.
This Agreement sets forth all payments for providing Services to Company. Consultant shall
defend, indemnify, and hold harmless Company from and against any claims, liabilities, or
damages for any commission, finder’s fee, or other compensation claimed by any third party as a
consequence of Consultant’s actions, respecting any such Services and Consultant warrants that,
as of the date of this Agreement, Consultant has no understandings or agreements for such
Services with any third party. The foregoing shall not apply to payments to any third party with
whom Company has directly entered into an agreement on Consultant’s advice.
Prior to any payment hereunder, Consultant shall send its invoice to the agreement monitor. An
invoice shall contain the following statement, signed by Consultant:
“The undersigned hereby certifies that it has complied with all applicable laws,
regulations and administrative requirements in connection with the Services
performed for [insert name of Company];that the amount invoiced is true and
correct; that such amount has not already been paid and is not included in current
unpaid invoices; and that the amount shown is reasonable and necessary in
furtherance of Services under this Agreement.”
The invoice shall be accompanied by an activity report describing the Services performed in
consideration of the payment requested. Consultant shall attach to such invoice all receipts to
support travel and other expenses if such expenses are allowed under this Agreement.
Consultant shall pay any applicable taxes due any jurisdiction on payments made under this
Agreement and shall indemnify, and hold harmless Company arising from Consultant’s failure to
pay any taxes on payments made under this Agreement.
This Appendix specifies the entire compensation, including expenses incurred in the
performance of Services, required under this Agreement and is in full discharge of any and all
liabilities in contract or otherwise respecting all Services rendered by Consultant.