Ref. No.

: ASK/FSC/TGT-MR/2009-2010 (SPADE) April 3, 2009

SPADE

Mr. ___________________

HQ.: ___________________

TARGET LETTER

FOR

2009-2010
(April ’09 to March ’10)
Dear Colleagues,

We reproduce herewith your target letter for the sales year 2009-2010 (April ‘09-March ’10),
giving therein your rupeewise target and the incentive applicable on its fulfillment. The
various conditions required to be attained for eligibility of rupeewise incentive are mentioned
in the target letter.

You should minutely read the letter and return the lower portion in acknowledgment and
acceptance of the various targets, incentives, terms and conditions of the target letter. You
are advised to comply promptly with the above requisites, to enable us to release the
incentives as and when the same fall due.
-------------------------------------------------------------------------------- (Tear here & return)

From :
Mr. _______________________________

H.Q. _______________________________ SPADE

Date _______________________________

This is to acknowledge the receipt of target Ref.No. ASK/FSC/TGT-MR/2009-2010

(SPADE) dated April 3, 2009. The below given rupeewise target set for me for the
sales year 2009-2010 (April ‘09-March ’10) as also the terms and conditions
governing the payment of incentive, is accepted by me.

 Target set for me is ... ... Rs.____________________________

 Prize money shown under (X) ... ... Rs.____________________________

S I G N A T U R E: ___________________________
To,
Mr.____________________________________

Sub.: Your Sales Target/Incentive for the marketing year 2009-10.

We are pleased to specify hereunder your rupeewise target and the applicable parameters for
eligibility of the incentive.

Kindly make note of your rupeewise target reproduced hereunder :

A) SPADE TARGET
Your sales target for the area assigned to you as a whole is Rs. (will be informed
separately).

B) Based on the accomplishment of your monthly targets, you will be eligible for the prize
money as shown herebelow :

Prize Prize
% %
money money
Month Monthly Month Monthly
amount as amount as
tgt. tgt.
% of `X’ % of `X’
April 9% 9% October 8% 8%
May 8% 8% November 8% 8%
June 9% 9% December 9% 9%
st rd
1 3
26% 25%
Quarter Quarter
July 8% 8% January 8% 8%
August 9% 9% February 8% 8%
September 9% 9% March 7% 7%
2nd 4th
26% 23%
Quarter Quarter

‘X’ Amount = Rs. (will be informed separately)

NOTE : 1. Excess sale from one month can be utilised for completion of the
subsequent month target.
2. The release of your monthly incentive will also depend on your
subsequent month achievement, which should be atleast 85% of your
monthly target.
Contd...2/-
 : 2 :

C) For achievement of all 3 monthly targets of the quarter, you stand to earn all
3 months incentive. However, there is a possibility that you might miss one
of the monthly targets but still land up achieving the quarter target. In such
a case, you will be paid the difference i.e. the balance prize money amount
for the quarterly achievement. As such, you will receive the full quarterly
prize money.

D) Special incentive for 1st Quarter achievement.

In the 1st Quarter, we expect a sale more or less equivalent to the sale recorded during
the corresponding period of last year. If you are able to show growth, it would be
beneficial for you as we have special incentive for higher performance. We are pleased
to inform you that if you record the performance as listed herebelow, you will stand
entitled for additional commission as mentioned thereagainst over & above the
incentive eligibility on monthly performance.

Commission payable over & above the

1st Quarter achievement of
26% of the annual target
OR
27% of the annual target
OR
28% of the annual target
incentive eligibility on monthly
performance
1.25% additional commission on sales
achieved in the 1st quarter.
i.e. 26% of `X’ + 1.25% of sales.
1.50% additional commission on sales
achieved in the 1st quarter.
i.e. 26% of `X’ + 1.50% of sales.
2.00% additional commission on sales
achieved in the 1st quarter.
i.e. 26% of `X’ + 2% of sales.

There is a possibility that you might not achieve 26% of the annual target but land up
with below given performances. Good news is that you still stand to earn incentive over
& above the incentive eligibility on monthly performance.

Commission payable over & above the

1st Quarter achievement of
25% of the annual target
OR
24.50% of the annual target
incentive eligibility on monthly
performance (not quarterly incentive)
1.00% commission on sales achieved in
the 1st quarter.
0.75% commission on sales achieved in
the 1st quarter.

..3/-
 : 3 :

E) Half yearly special prize money amount as detailed herebelow will be paid to you for
the performance as applicable and stipulated thereagainst.

Additional prize money amount

Eligibility Criteria
Having achieved a sale of 54% of
Annual target upto September ’09.
payable (in addition to monthly and
quarterly earnings)
8% of `X’

F) We are also pleased to inform you that for a consistent performance, a special
incentive is being announced. The consistent performance will be gauged on the basis
of monthly targets achieved. More the no. of monthly targets achieved with 100%
performance, more will be the incentive amount. The below given chart shows the
details of incentive entitlement as per the no. of monthly targets achieved.

For the fulfillment of target of Special prize money

payable
100% with all 12 monthly targets achieved 20% of `X’
independently
OR
100% with all 12 monthly targets achieved 18% of `X’
but not independently
OR
100% with 11 monthly targets achieved 16% of `X’
OR
100% with 10 monthly targets achieved 14% of `X’
OR
100% with 9 monthly targets achieved 12% of `X’
OR
100% with 8 monthly targets achieved 10% of `X’
OR
100% with 7 monthly targets achieved 8% of `X’

G) Incentive will be paid to you as mentioned herebelow for a performance over & above
the stipulated target.

Incentive commission payable on

For a performance of
1) Above 100% but below 104%
2) Above 104% but less than 110%
3) 110% & above
excess sales i.e. over & above
the target.
1.5% commission on excess sale
2.0% commission on excess sale
2.5% commission on excess sale
..4/-
 : 4 :

H) We are also pleased to inform you that if you achieve the targets of both the halfs of
the sales year 2009-2010 on independent basis, you will then stand entitled for a
special prize money equivalent to 10% of your `X’ amount. Please, therefore, work in
the direction of achieving both the halfs target, which will entitle you for additional
incentive.

I) PRODUCTWISE INCENTIVES
Incentive period : April ’09 to Sept ‘09

ATM RANGE (Solid + Liquid)

% growth on PHY for July’08 –
Assorted PHY Mar‘09 Incentive (Rs./Unit)

2001 & above 20% 1.10

1501 – 2000 25% 1.00
1001 – 1500 30% 0.90
500 – 1000 35% 0.75

METHYCAL
PHY % growth on PHY for July’08 – Incentive (Rs./Unit)
Mar‘09

351 & above 20% 2.50

251 – 350 25% 2.25
150 – 250 30% 2.00

ALOHA - XT RANGE (Solid + Liquid)

Assorted PHY % growth on PHY for July’08 –
Mar‘09 Incentive (Rs./Unit)

251 & above 40% 2.25

150 – 250 50% 2.00

GMT–SR
% growth on PHY for Incentive (Rs.)
Assorted PHY
July’08 – Mar‘09 % of sales value
501 & above 20 %
301 – 500 25 % 10 %
100 – 300 35 %
 ….5/-
:5:
PEPCHEK
PHY % growth on PHY for July’08 – Incentive (Rs./Unit)
Mar‘09

351 & above 3.00

251 – 350 25% 2.50
150 – 250 2.00

DUOCHEK TABLETS *
PHY % growth on PHY for Sept ’08 Incentive (Rs./Unit)
– Mar‘09

351 & above 4.00

251 – 350 25% 3.50
150 – 250 3.00

∗ Growth is applicable only to those areas, where product was available in the last year.

∗ For North & East zones, this incentive shall be applicable on a pro-rate basis from the
month of launch of Duochek to Sept ’09.

Please note :-
1. Productwise incentives are independent of rupeewise achievement.
2. Productwise incentives will be released on quarterly basis i.e. 1st quarter incentive will
be released by the end of the 2nd quarter and so on.

J) Monthly/quarterly targets as and when achieved, would be released after confirming

the realization of the payments. However, only 50% of the monthly/quarterly prize
money amount will be released. The balance 50% incentive will be paid at the end of
the sales year after taking into account your annual performance.

K) M.D's SPECIAL PRIZE

In addition to the prize money amount as stated above, we will as always be selecting
from amongst you one individual from each Division for the M.Ds special prize, which
will be on annual performance. Based on the good performance of the
Division/individual, we may also select an additional representative for the M.Ds
consolation prize. The prize winners will be selected on the basis of :

1. Monthly & quarterly completion of the targets.

2. Secondary sales vis-a-vis target.
3. Productwise performance.
4. Development of new products.
5. Scientific approach.
6. General proficiency and conduct.
7. Development of territory with effective utilisation of the green chart.
8. Doctor coverage.
 6/-
:6:

L) By the words target and sales, it is implied as the net sales after deducting applicable
st
discount on the applicable rates as on 1 April, 2009 and after deducting credit notes.

M) If you do not continue in the service upto March 2011, you will not be eligible for any
incentive commission, etc. for the sales year 2009-2010. However, if any amount is
already paid to you during the interim period, the same shall be liable for recovery and
the Company shall have a claim on such amount. The above incentives are valid only
for the current sales year and the Management holds the rights to amend them or
scrap the same altogether even during the currency.

N) If in the opinion of the Management, any hospital / institution business is obtained

without your special effort, the same shall not be credited to your sales.

O) With the new credit policy now being implemented in to-to, our bills are being retired
on time. However, if any bill raised on your stockist / institution remains unpaid
beyond a period of 35 days from the date of LR, the sales credited to you in respect
thereof will be deducted from the applicable sale of your area as here under :-

i) 25% of the applicable invoice amount will be debited to your sales. By “sales”,
we refer to the period in which the applicable invoice was actually raised, if the
invoice is cleared within 35-50 days.

ii) 40% of the invoice amount will be debited to your sales. By "sales", we refer to
the period in which the applicable invoice was actually raised, if the same is
released within 50 to 59 days.

iii) 100% of the invoice amount will be deducted from your sales. By "sales", we
refer to the period in which the applicable invoice was actually raised, if the
invoice is not retired within the 60th day.

P) At the time of disbursement of incentive, if payments from stockists of

invoices towards which you have received the sales credit is not received, the
incentive will be liable for cancellation. No further claim shall be entertained
even if the payments are realized at a later date.

Q) 100% achievement of annual target is a must, to stand entitled for the

complete share of rupeewise incentive. However, if you land up with a
performance of 95% of your annual target, the incentives paid to you in
between the year will not be recovered.

S) Value of goods genuinely broken / expired / lost in transit, for which any credit note is
passed in favour of the stockist, will be deducted from sales at 100% as done hitherto.
If any saleable goods are returned by the stockists due to non-movement etc., the
deduction from sales will be made at 300% of the returned value. Please note that the
deduction will be done in the month you have received the sales credit. For any date
expired goods on which the Company is liable for heavy losses, the deduction from
sales will be made for additional 100% if the % to sales exceeds 1%. If the % to sales
exceeds 2% then the deduction will be done @ 200% additional.
…7/-
 :7:

We sincerely believe that the above incentive schemes will definitely motivate you further
into ensuring a very stable and consistent performance towards minimum 100% fulfillment of
the stipulated target.

Wishing you success,

For SPADE
A Division of INDOCO REMEDIES LIMITED

RAKESH MALIK
VICE PRESIDENT – SALES & MARKETING