2019 Business Programs overview

2019 marketer programs overview The following pages provide an overview of the 2019 programs, with any revisions from 2018 noted in red. Please contact Christine Bailey at Christine.Bailey@p66.com with any questions.

Business development allowance (bda) 2020 pre-qualifying threshold increased from 150M to 175M gallons. Minimum volume to turn on BDA in calendar year 2019 changed from 115M to 150M. 2019 Rate Table Tier Category Kendall Rate Phillips 66 Rate Red Line Rate Tier 1 PCMO Full Synthetic $0.45 $0.07 N/A Tier 2 PCMO Synthetic Blend & HDEO Full Synthetic $0.26 Tier 3 Everything Else Aviation n/a $0.35 Red Line Note: Open to US and Canadian Marketers.

Business development allowance export (bda-x) 2020 pre-qualifying threshold to remain 150M gallons (no change). Minimum volume to turn on BDA-X in calendar year 2019 changed from 115M to 150M. 2019 Rate Table Tier Category Kendall Rate Phillips 66 Rate Red Line Rate Tier 1 PCMO Full Synthetic $0.45 N/A Tier 2 PCMO Synthetic Blend, HDEO Full Synthetic & HDEO Synthetic Blend $0.26 Tier 3 Everything Else $0.07 Aviation n/a $0.35 Red Line Note: Open to Marketers outside of the US and Canada.

Bda & bda-x approved expenditure list Media costs for branded digital, radio, television, newspaper, print and billboards Production costs for branded Marketer-created digital, television, radio, print, Yellow Pages advertising, outdoor signage/billboards (must conform to copy and art requirements/logo guidelines) Branded Marketer/customer advertising Specialty branded items (hats, pens, shirts, etc.) from approved vendors Oil analysis sample kits Branded “on-hold” network Branded truck decal identification Branded lubrication recommendation guides Registration fees and the cost of training manuals for Phillips 66 Lubricants-sponsored training programs, travel expenses, including hotel accommodations Imprinted/customized branded static cling stickers Branded sales promotions Branded flyers/circulars Branded direct mail program Used oil collection Trade shows (featuring only Phillips 66 Lubricants products) Branded lubrication recommendation guides Equipment purchase and repair costs Race, sports tickets and customer hospitality Pre-approval no longer required on equipment purchase or repair costs.

Business development allowance GROWTH 2019 Rate Table Program Details 2018 Growth Gallons Growth BDA Rates 3% to 9.99% $0.15/gallon 10% to 19.99% $0.20/gallon 20% + $0.25/gallon No changes to BDA growth rates. Rewards 2019 incremental volume once your purchases exceed 103% of your established base volume. You will be rewarded on all growth gallons. Your base volume is the greater of your net qualified gallons rom the previous two years. Newly signed Marketers with partial prior year purchases will have their previous year base volume annualized.* Funds earned will be credited to your 2020 BDA account by March 1, 2020. NOTE: Payment is retroactive to gallon one of growth only when the qualifying threshold has been met or exceeded. *First year Marketers are not eligible to participate in the BDA Growth Program

MVP incentive program Rate Schedule New Program Details Marketer Salesperson is paid: Rates vary from $0.05 - $1.00 on qualified products sold. See Lubestream for the most up to date rate table. Marketer’s Sales Manager is paid: $0.05/gal for every qualified product sold. Non-Paid Marketer Principal: Approve claims but do not get paid for volume. Monthly payouts paid via VISA cash card Once the Sales Representative’s total combined volume for all accounts reaches 750 gallons in a month, they will be eligible for payment. Payment will be issued via cash card approximately 30 days after the end of each month. Approved sales volume that is below the monthly minimum will roll forward to the next month. Claims expire one year from date of entry.

MVP incentive program How it works: $20K maximum payment per year. Sales Representative and Sales Manager enroll through Lubestream. Sales Manager approves new accounts & claims. Phillips 66 TM approves new accounts & claims. Sales Representative enters new account sales into Lubestream. No copies of invoices needed when submitting claim, however, for audit purposes the Sales Representative must retain documentation of MVP claims for three years from the date of delivery. Payment will be issued to Sales Representative and Sales Manager, who meet the 750 gallon threshold, by cash card approximately 30 days after the end of each month.

Mvp sales council Must be enrolled in the MVP Incentive Program. All eligibility requirements, rules and guidelines of MVP apply. Qualification period runs from April 1 – September 30, 2019. MVP claims will be tracked by Lubestream to determine qualification points. The top 25 qualification point finishers will serve a 1-year term on the MVP Sales Council, beginning January 1, 2020. The initial meeting location will be announced in 2018 and includes airfare, transportation to/from resort, lodging, meals and activities paid for by Phillips 66 for you and a guest.

NEW ACCOUNT CONVERSION ALLOWANCE 2019 Rate Tables PCMO Products Kendall Rate Phillips 66 Rate Package Size Conventional & Synthetic Blend $1.00/gallon $0.50/gallon All Full Synthetic $2.00/gallon Drum or Bulk $5.00/case $2.50/case 12/1 Case Quarts No Changes to program in 2019 HDEO Products Kendall Rate Phillips 66 Rate Package Full Synthetic and Synthetic Blend $1.00 All

TWO CHANGE CHALLENGE Onset of Test Drain One Drain Two Get approval from either the Phillips 66 or Kendall Brand Director depending upon the opportunity. Send in your oil purchase and oil analysis invoices to be paid. Onset of Test Drain One Drain Two Drain original oil Take used oil sample Refill with Kendall or Phillips 66 full synthetic or synthetic blend heavy-duty diesel engine oils Drain oil Take Kendall or Phillips 66 used one sample #1 Take Kendall or Phillips 66 used one sample #2

Volume Incentive Rebate Phillips 66 & Kendall Mainline Products Schedule (including ATF, gear oil*, grease*, conventional and synthetic blend motor oil) Kendall Rate Phillips 66 Rate 3,000 – 5,999 gallons $0.05/gallon $0.03/gallon 6,000 – 8,999 gallons $0.10/gallon $0.06/gallon 9,000 – 11,999 gallons $0.15/gallon $0.09/gallon 12,000 or more gallons $0.20/gallon $0.12/gallon Phillips 66 & Kendall High Mileage Products Schedule 1 – 84 gallons 85 – 169 gallons $0.25/gallon 170 – 254 gallons $0.40/gallon 255 or more gallons $0.60/gallon $0.35/gallon Phillips 66 & Kendall Full Synthetic Products Schedule $0.50/gallon $0.30/gallon $0.75/gallon $0.45/gallon $1.00/gallon Volume Incentive Rebate Program Details No changes made to program for 2019. *Gear Oil and Grease = 8 pounds per gallon

How to Maximize Programs PCMO Value New Account Conversion Allowance (min. 110 gallons, initial order only) Up to $1,000 Volume Incentive Rebate (min. 3,000 gallons annually) Up to $20,000 MVP Incentive Program* Consumer Loyalty Programs (Super Charged Business Builders) Listing on FindKendall.com FREE Service Bay Kit HDEO Value New Account Conversion Allowance (min. 110 gallons, initial order only) Up to $1,000 MVP Incentive Program* Up to $20,000 FREE KLAS® Oil Analysis (Kendall only) No limit AVIATION VALUE MVP Incentive Program* Up to $20,000 Listing on Aviation Retailer Website INDUSTRIAL Value MVP Incentive Program* Up to $20,000 *MVP Incentive Program is $20,000 max payout across all industries combined

EXECUTIVE SUMMARY BDA BDA-X BDA Growth MVP & MVP Sales Council 2020 pre-qualifying threshold increased from 150M to 175M gallons. Minimum volume to turn on BDA in calendar year 2019 changed from 115M to 150M. BDA-X 2020 pre-qualifying threshold to remain 150M gallons (no change). Minimum volume to turn on BDA-X in calendar year 2019 changed from 115M to 150M. BDA Growth No changes MVP & MVP Sales Council No changes PCMO & HDEO NACA TWO CHANGE CHALLENGE Volume Incentive Rebate

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