1. 2019 Business Programs overview

2. 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 with any questions.

3. 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.

4. 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.

5. 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.

6. 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,
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

7. MVP incentive program Rate Schedule New Program Details
Marketer Salesperson is paid:
Rates vary from $ $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.

8. 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.

9. 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.

10. 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

11. 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

12. 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

13. 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

14. 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

15. Thank you