3rd August 2010

To: RESPIRATORY MARKETING EXECUTIVES

REVISED REWARD SCHEME Quarter 3 (2010)

Dear Colleagues,

Please find below the REVISED incentive scheme for Qtr 3 (July – September 2010).

Reward Highlights*

1. Monthly Incentive / Consistency Award

2. Graded reward scheme based on PCPM
3. Product incentive
a) New Launches
b) Current Products
4. Win back incentive
5. Effort excellence incentive
* supersedes earlier announced Qtr -3 incentive circular dated 27th July 2010.
1. Monthly Incentive
Consistency Award
Monthly target achievement award

PCPM Achieve any 1 month Achieve any 2 months Achieve all 3

Slabs target of the 3 months , target of the 3 months, months target,
Lacs Earn Rs Earn Rs Earn Rs
<2 Lacs 2500 5500 9000
2–3
3000 7000 11500
Lacs
3–4
4000 8500 14500
Lacs
4–5
4500 10000 17000
Lacs
5–6
5500 12000 20500
Lacs
6–7
6500 14000 23500
Lacs
7 Lacs + 7500 17000 28500
Minimum opportunity to earn Rs. 2500/month
Maximum opportunity per quarter Rs. 28500/-

Monthly Consistency Incentive Award Criteria

 1 Achievement for the month should be 100%
2 Subsequent month achievement should be minimum 90%
3 Should be in the service for entire month and in subsequent month
Doctor call average & Chemist call average should be min 11 doctors and 5 retailers ,
4
tracked as per the data reflected in 'Mprompt'

…...2.

:: 2 ::

2. Graded reward scheme based on PCPM

Quarter target achievement incentive
PCPM
Increment per % over 101% up to 110%
Slabs Qtrly Target ach -
(Rs Lacs incentive ( Rs ) Incr incentive ( Rs) Max Additional Earning
) per % Tgt Ach opportunity ( Rs)
<2 Lacs 3000 500 5000
2 – 3 Lacs 4000 500 5000
3 – 4 Lacs 5000 750 7500
4 – 5 Lacs 5500 750 7500
5 – 6 Lacs 7000 1000 10000
6 – 7 Lacs 8000 1000 10000
7 Lacs + 9500 1000 10000
Bonus Incentive on achieving all 3 months –
at minimum, achieve Rs. 3000/- plus Rs. 5000 on 110%
at maximum, achieve Rs. 9500/- plus Rs. 10000 on 110%

Quarterly Incentive : Qualifying Criteria

1 Subsequent month achievement at 90%
2 The scheme is applicable to MEs who are in the service of the company during
the entire period of the scheme including the subsequent months clause.
3 The scheme is applicable for all Trainees joining within 15 days of the start of
the Quarter
4 Until and unless specially approved by H.O., there will be no reduction in
target due to reduction in field strength.
5 Achievement during subsequent month of qtr must be at least 90% of
subsequent month of target
6 Any FRS issued on account of expiry/breakage during the Qtr will be deducted
1.5 times the value of FRS from the value achievement of the HQ for the same
period
7 Value of all credit notes of price difference and expiries will be deducted from
 sales for incentive calculations
8 Cheque Bounce and Sales Returns should not be greater than 1.5% of the total
primary sales achievement per month
9 Incentives are subject to deduction of Income Tax at source
10 Company reserves the right to withhold and/or deny incentive in case of non-
compliance by ME of the work-related disciplinary requirements
11 Company reserves the right to amend/revise the incentive scheme without
assigning any reason thereof. Company’s decision will be final and binding in
this regard.

....3.
 :: 3 ::

3. Product incentive
a) New Products

Brands You Earn (Rupees)

Carnivit 500 mg Rs 3.00 per strip
Zanocin OZ IV Rs 3.00 per bottle
Zanocin OZ suspension Rs 3.00 per bottle
Loxof liquid Rs 3.00 per bottle
Rs. 3.00 per bottle /
Acelast strip
Caflacort 6 mg Rs 3.00 per strip
Eligibility:
On achievement of min100 strips PCPM till a maximum of 500 strips / bottle PCPM only
Incentive applicable from first strip/ bottle above 100 strips PCPM

3. Product incentive
a) Current products

Above 100% Target achievement

of the following brand You Earn (Rupees)
Serlift Rs 2000
Romilast L Rs 2000
Suprimox Plus Rs 2000

Product Incentives qualifying criteria

Quarterly achievement for the brand should be 100%

Month subsequent to quarter should be minimum 90% achievement for the

brand

Should join within the first 15 days of quarter beginning and be there
remaining period of the scheme including subsequent month

Other qualifying criteria of 'Quarterly Incentive' are not applicable

 .....4.

:: 4 ::

3. Win Back Incentive

• Those ME who have missed their Qtr - 1 / Qtr -2 rupee value incentive and are not on H1 target

• Exceeds Qtr -3 Tgt ach and recovers the YTD deficit - i.e. achieves their YTD Qtr -3 targets

• Will earn their missed additional incentive of Rs. 7500/-

• Those who have missed July incentive can earn 75% of July months incentive (if
anyone has missed July target whose productivity is between 2 to 3 lacs, he/she
can earn 75% of Rs. 2500/-).

3. Effort Excellence Incentive

This can be earned, even if you are at 90% achievement of the quarterly budget.

Efforts Excellence Incentive qualifying criteria

1. Minimum 90% achievement of the quarterly budget

2. CIS doctors coverage Core >95%, Overall CIS

coverage >90%

3. 100% implementation of specific activities:

• Planned CME
• Romilast L OPD campaign

.....5.
 :: 5 ::

Terms and Conditions

1. The scheme is applicable to MEs who are in the service of the company during the entire period
of the scheme including the subsequent months clause and at the time of disbursement.
2. The scheme is applicable for all Trainees joining within 15 days of the start of the Quarter
3. Pending orders will not be considered for incentive calculation.
4. Cheque Bounce and Sales Returns should not be greater than 1.5% of the total primary sales
achievement per month.
5. Although all efforts would be made to ensure timely availability of sales stock, any loss of sales due
to non-availability will not be taken into account for incentive calculation.
6. Until and unless specially approved by H.O., there will be no reduction in target due to reduction
in field strength.
7. Incentives are subject to deduction of Income Tax at source.
8. mPrompt for day’s field work reporting on a daily basis.
9. Company reserves the right to withhold and/or deny incentive in case of non-compliance by ME of
the work-related disciplinary requirements.
10. Achievement during subsequent month of qtr must be at least 90% of subsequent month of target.
• Doctor call average of 11 per day and chemist call average of 5 per day, on a monthly basis, as per
FMS report only (as applicable to the division).
• Timely reporting as per the company requirements. *All calendar days will be considered as full
working day except leave, holidays, campaign / launch meetings, sales review meetings.
11. Company reserves the right to amend/revise the incentive scheme without assigning any reason
thereof. Company’s decision will be final and binding in relation to this complete program. (Viz.
design, calculation, awarding and payment of incentives).
12. Signed and Sealed S&S Statements of all stockists in your territory should reach H.O. latest by 12th
of following month e.g. July 2010 S&S statements of all stockists should reach before 12th Aug 2010.
13. Value of all credit notes of price difference and expiries will be deducted from sales for incentive
calculations.
14. Any FRS issued on account of expiry/breakage during the Qtr (July – Sep 2010) will be deducted
1.5 times the value of FRS from the value achievement of the HQ for the same period.

With Best Wishes,

Arvind Kumar Sharma

SBU Head – Ranbaxy Respiratory