November 2024

Business Development Allowance

The Business Development Allowance (BDA) program offers a simple and effective way to offset a variety of your business development expenditures by enabling you to earn dollars to spend toward growing your business by supporting the Phillips 66® Lubricants brands. For more information, visit Lubestream > Programs > Business Development Allowance.

HOW IT WORKS

  • As a Marketer, you will earn funds on every gallon of qualified Phillips 66, Kendall® and Red Line®-branded lubricants that you purchase between January 1, 2025 and December 31, 2025.
  • These BDA funds will be accrued monthly and posted to your BDA account one month in arrears.
  • Marketers carrying two or more Phillips 66 Lubricants brands will have BDA funds combined into a single account, allowing the flexibility to spend BDA funds to support any of the Phillips 66 Lubricants brands.
  • For more information, visit Lubestream > Programs > Business Development Allowance.

ACCRUAL RATES FOR THE 2025 BDA PROGRAM

BDA RATE TABLE
TierCategoryKendall RatePhillips 66 RateRed Line Rate
Tier 1Full Synthetic$0.13$0.13N/A
Tier 2Mainline$0.07$0.07N/A
Tier 3Hydraulic/
NGEO
$0.03$0.03N/A
AviationAviationN/A$0.35N/A
Red LineRed Line OilN/AN/A$0.35

ELIGIBILITY

  • Open to Phillips 66 Lubricants Marketers in the United States and Canada*
  • A Marketer must have a Marketing Plan in place.
  • A Marketer must purchase a minimum combined Phillips 66 Lubricants volume of 200,000 gallons in calendar year 2025 to be eligible for the BDA program.
  • If your 2024 year-end combined Phillips 66 Lubricants volume exceeds 200,000 gallons, you are prequalified to participate in the BDA program January 1, 2025.
  • If your 2025 year-end combined Phillips 66 Lubricants volume exceeds 200,000 gallons, you are prequalified to participate in the BDA program January 1, 2026.
  • You must be a Phillips 66 Lubricants Marketer in good standing.
  • Phillips 66 Lubricants reserves the right to determine overall eligibility in this program and BDA funds will be suspended if Marketer volume decreases 80% year over year.

QUALIFIED PRODUCTS

  • Any qualified Phillips 66, Kendall and Red Line-branded product (bulk or packaged) which you have purchased, excluding the ineligible products listed next.

INELIGIBLE PRODUCTS

  • Phillips 66 Coolants
  • Red Line Service Chemicals
  • Buyback Business purchases
  • Branded antifreeze and MileGuardTM Filters
  • Unbranded products, private label, Point® brand
  • Any product that is identified as ineligible by Phillips 66 Lubricants

PAYMENT OF CLAIMS

  • Marketers will receive payment via credit memo only.
  • Claims will be system-generated on a quarterly basis on the 25th of April, July, October 2025 and January 2026, limited by total BDA accrual.
  • Claims need to be approved by your Phillips 66 Account Manager before being paid via credit memo to the Marketer.
  • BDA payouts will be suspended or delayed should eligible volume decrease by 80%  year over year.

*Program details may be different for Marketers that operate with Phillips 66 Canada. Please contact your Account Manager if you have been doing business with Phillips 66 Canada.

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