STORE INCENTIVE PLAN OCTOBER 2017

Current Incentive Policy at the Stores Commission Stores – Monthly Average Target 18 Lakhs & above Sales Staff – Monthly Commission & Quarterly TAB Cashier – Quarterly TAB Store Incharge/Manager – Quarterly TAB + 70% of categories to achieve a minimum 85% Target Achievement TAB Stores - Monthly Average Target 18 Lakhs & below Entire Store Staff including Store Incharge & Cashier - Quarterly TAB No linkage to number of pieces sold

Proposed Incentive Policy at the Stores Volume Growth - Extra incentives for % increase in number of pieces sold in a block compared to last year. Raise the threshold level for eligibility of commission at commission stores from 91% to 96% of Monthly Sales Achievement Raise the threshold level for TAB eligibility from 85% to 91% of Quarterly Sales Achievement New / Renovated stores - No Volume Target / Incentives to be considered for next 12 months

Proposed Incentive Policy at the Stores TAB STORE COMMISSION STORE - Monthly commission Quarterly Band based TAB Quarterly Band Based TAB (@ 30% band based variable) Incentive for Biannual Unit growth – Per person per month payable biannually Incentive for Biannual Unit growth – Per person per month payable biannually

Current Commission Structure Store Sales Incentive/ Commission Kitty Store Monthly Target Achievement Store Sales Incentive/ Commission Kitty % of Sales 91% - 95% 0.15% 96% - 99% 0.25% 100% 0.30% 101% 0.43% 102% 0.46% 103% 0.49% 104% 0.52% 105% 0.55% 106% 0.58% 107% And so on till 1% maximum at 120%

Proposed Commission Structure Monthly Target Achievement % Commission to Sales 91% - 95% 96% 0.25% 97% 98% 99% 100% 0.30% 101% 0.43% 102% 0.46% 103% 0.49% 104% 0.52% 105% 0.55% Monthly Target Achievement % Commission to Sales 106% 0.58% 107% 0.61% 108% 0.64% 109% 0.67% 110% 0.70% 111% 0.73% 112% 0.76% 113% 0.79% 114% 0.82% 115% 0.85% 116% 0.88% 117% 0.91% 118% 0.94% 119% 0.97% 120% 1.00%

Current and Proposed TAB Structure Quarterly Store Target Achievement Quarterly Bonus Below 85% No TAB 85% - 90% 50% 91% - 95% 75% 96 – 100% 100% 101 - 110% 2% extra for every 1 % 111 - 120% 4% extra for every 1 % Above 120% 6% extra for every 1% upto a maximum of 202% of TAB entitlement *202% of TAB is payable at 127% and above quarterly achievement Proposed Quarterly Store Target Achievement Quarterly Bonus (Band Based)  Below 90% No TAB  91% - 95% 50% 96 – 99% 75% 100% 101 - 110% 2% extra for every 1 % 111 - 120% 4% extra for every 1 % Above 120%  6% extra for every 1% upto a maximum of 202% of TAB entitlement *202% of TAB is payable at 127% and above quarterly achievement

Biannual Incentive for Biannual Unit growth Biannual Store Target Achievement Volume growth Biannual 1 – 3 % 3.1% and above 96 – 99% Rs. 300/- per person pm Rs. 600/- per person pm 100% Rs. 400/- per person pm Rs. 800 /- per person per month 101 - 110% Rs. 500 /- per person per month Rs. 1000/- per person per month 111 - 120% Rs. 700/- per person per month Rs. 1200/- per person per month Above 120% Rs. 1500/- per person per month Applicable for TAB and Commission Stores

Communication to Stores Benchmark of performance has been enhanced across the Company Since there has been a constant YOY decrease in number of pieces sold hence going forward volume growth is one of the key focus areas for the Company New / Renovated stores - No Volume Target to be considered for next 12 months Opportunity for the staff to earn more incentive by achieving growth in volume

THANK YOU