Total Potential Bonus

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1 SALES BONUS PROGRAM Starting April 1, 2019, BCLC s Sales Bnus Prgram will be cmprised f three cmpnents: SALES PERFORMANCE + EXECUTION EXCELLENCE + ID25 SUCCESS = TOTAL POTENTIAL BONUS Ttal Ptential Bnus *Apprximate value f cnditin f payment Sales Achievement fr Full Calendar Year Bnus % Ttal Ptential Bnus $ Over $1.5M 2.50% $37,500+ $1.25M t $1,499, % $30,625 t $36,750 $1.1M t $1,249, % $24,750 t $28,125 $975K t $1,099, % $19,988 t $22,550 $725K t $974, % $12,688 t $17,063 $600K t $724, % $9,000 t $10,875 $475K t $599, % $5,938 t $7,500 $375K t $474, % $3,500 t $4,750 $275K t $374, % $2,200 t $2,999 $200K t $274, % $1,300 t $1,787 $125K t $199, % $625 t $1,000 $0 t $124,999 0% Nt Eligible Achieve Sales Success, Executin Excellence AND ID25 Success - Receive yur maximum Bnus. TO RECEIVE A SALES BONUS REWARD, YOUR LOCATION MUST MEET THE FOLLOWING CRITERIA: A minimum f $125,000 net lttery sales ver the calendar year. Yur lttery business must be in gd standing with BCLC. Suspensins, payment defaults, pending letters f credit r trust depsits may disqualify retailers frm receiving a Sales Bnus incentive reward. Yu must maintain sufficient insurance as utlined in the Lttery Retailer Agreement (LRA).

2 EXECUTION EXCELLENCE Effective April 1, 2019 BCLC will be rewarding retailers wh prvide ur PLAYERS with exceptinal retail experience. An exceptinal retail experience is when; Pull Tab Vending Machines (PTVM) are full and t plangram, when current lttery pint-fsale (POS) marketing materials are n display, when equipment is wrking, and when the manager is aware f maintenance prtcls. HOW IT WILL WORK Executin Excellence will accunt fr 10% f yur ttal ptential bnus. Strng executin = mre earned pints! Over a calendar year, yur BCLC Territry Manager will perfrm Executin Excellence surveys during their regularly scheduled visits. Accunts will receive between 2 t 6 regularly scheduled visits and each visit will be wrth 5 pints. At the end f the year, BCLC will review the ttal f all Executin Excellence surveys t determine yur earned Executin Excellence bnus payut as per the belw infrmatin. 0-3 pint reductins = Earn 100% f Executin Excellence bnus payut 4-5 pint reductins = Earn 70% f Executin Excellence bnus payut 6-7 pint reductins = Earn 50% f Executin Excellence bnus payut 8 r mre pint reductins = 0% f Executin Excellence bnus payut IMPLEMENTATION TIMELINES fr EXECUTION EXCELLENCE AND ID25 SUCCESS April 1 December 31, 2019: Retailers will receive 100% ttal ptential bnus regardless f Executin Excellence survey results and ID25 Shp results. This timeframe prvides retailers the pprtunity t understand BCLC s Executin Excellence requirements, as well as, t build cnsistency with emplyees t execute ID25 checks. January 1 December 31, 2020: Ttal ptential bnus will be calculated using sales perfrmance + retailer results fr Executin Excellence surveys and ID25 Shps perfrmed.

3 MERCHANDISING & EXECUTION STANDARDS PULL TABS VENDING (PTVM) MACHINE PTVM t Plangram PTVM Full 1 pint if PTVMs are merchandized as per the plangram. 0 pint if PTVMs are nt merchandized as per the plangram. 1 pint if PTVMs clumns are mre than 50% full. 0 pint if PTVMs clumns are less than 50% full. POINT OF SALE MATERIALS POS Displayed 1 pint fr having CURRENT MARKETING POS (SST tpper and SST cling) AND GAMESENSE POS (12-part plexi insert, brchure in plexi and PTVM tpper) n display. 0 pint if sme r nne f the MARKETING and GAMESENSE POS n display. LOTTERY EQUIPMENT (includes: Altura Lttery Terminal, Player Display Unit, Check-A-Ticket, Ken & Pacific Hld Em Pker mnitrs, Pull Tabs Vending Machine and Self-Service Terminal) Wrking r Service Call Placed Preventative Maintenance 1 pint 0 pint 1 pint 0 pint Earn 5 pints per survey if all equipment is wrking r if any equipment nt wrking and retailer has called Lttery Supprt Htline. if any equipment nt wrking and retailer has nt called Lttery Supprt Htline. if SST/PTVM maintenance guides n site/available and Manager is aware f prtcls. if SST/PTVM maintenance guides are nt n site/available and manager is nt aware f prtcls.

4 ID25 SUCCESS It is illegal t sell lttery prducts t anyne under 19 years f age. BCLC s ID25 plicy increases the level f due diligence that retailers must perfrm t ensure lttery prducts are nt sld t minrs. Pass yur first BCLC Shp? CONGRATULATIONS! Yu achieved ID25 Success. Keep up the gd wrk! Fail yur BCLC Shp(s)? The framewrk belw describes the prcess and ptential financial impact t the Sales Bnus as it pertains t the BCLC ID25 Shp Prgram. Shp 1 ID25 Lttery Training Kit prvided Retailer Shpped Again (within 90 days) 15% Cnditin f Payment* Shp 2 ID25 Lttery Training Kit prvided Retailer Shpped Again (within 90 days) Additinal 15% Cnditin f Payment* Shp 3 7 Day Suspensin Retailer Shpped Again (within 90 days) Shp 4 14 Day Suspensin up t including terminatin *Cnditin f Payment means reductin f full bnus ptential. The schedule f remedies fr Failure t Age Verify (ID25) in the Lttery Retailer Agreement Service Standard Remedies will change t reflect the abve effective April 1, 2019, hwever, Cnditin f Payment fr 1 st and 2 nd vilatin will nt cme int effect until January 1, 2020.

5 SALES BONUS PROGRAM WHAT DOES THE MATH LOOK LIKE FOR 2019? Ttal net sales will be calculated fr the calendar year frm January 1 t December 31, (Net sales excludes Free Play ticket prizes paid upn redemptin.) Sales frm January 1 t March 31, 2019, will be multiplied by the PREVIOUS bnus percentage. Sales frm, will be multiplied by the NEW bnus percentage, as listed n page 1. The 2019 Sales Bnus will be issued after the clse f the 2019 calendar year. ENTERING RETAILERS Whether yu have purchased a business which is a current BCLC retailer, r started a brand new business and are partnering with BCLC, yu must generate the minimum sales perfrmance threshld ($125,000) in lttery sales within the calendar year (regardless f when yur business pens) t be eligible fr the Sales Bnus. INCENTIVE WITHDRAWAL NOTIFICATION This prgram is subject t review and may be withdrawn at any time. In the event that BCLC cancels r withdraws the prgram at any time fr any reasn during the year, payment f any ptential bnus will be at BCLC s sle discretin. BCLC reserves the right t disentitle any retailer frm participatin in this prgram fr any reasn at BCLC s sle discretin. EXITING RETAILERS Yu are eligible t receive Sales Bnus regardless f the date yur lcatin stps selling lttery prducts; hwever, yu must generate the minimum sales perfrmance threshld ($125,000) in lttery sales within the calendar year t be eligible. Payment t exiting retailers will ccur after all instant ticket and pull tabs ticket returns have been prcessed, (if applicable). Sales Bnus fr eligible exiting retailers is paid apprximately ne mnth after lttery sales cease, therefre, it is imprtant t ensure yur bank accunt is still active as the payment will be electrnically depsited int the bank accunt n file with BCLC. PAYMENT DETAILS All payments will be made by Electrnic Funds Transfer (EFT), t the banking institutin as specified n yur bank authrizatin frm. Please nte, all prizes awarded thrugh sales incentives shuld be treated as business incme and managed accrdingly.

6 SALES BONUS PROGRAM Questins & Answers PROGRAM OVERVIEW Q1: HOW DOES THE NEW SALES BONUS PROGRAM DIFFER FROM THE OLD ONE? Under the new Sales Bnus Prgram, BCLC increased bnus payut percentages acrss new revenue tiers and decreased the minimum threshld, frm $200,000 in annual lttery sales, t $125,000. In additin t this, BCLC created an pprtunity fr retailers t earn bnus dllars when they achieve successful levels n Executin Excellence and ID25 age-verificatin Shps. EXECUTION EXCELLENCE Q1: WHY IS EXECUTION EXCELLENCE BEING ADDED TO THE SALES BONUS? BCLC is putting the PLAYER at the center f everything we d. An increased fcus n merchandising standards will stimulate interests, encurage purchase and remve cnfusin in the market ultimately leading t increase sales and prfit fr the retailers. Q2: HOW IS EXECUTION EXCELLENCE BEING SURVEYED AT MY LOCATION? Yur BCLC Territry Manager will perfrm surveys during their regular scheduled visits. ID25 SUCCESS Q1: WHY IS AGE-VERIFICATION COMPLIANCE BEING ADDED TO THE BONUS PROGRAM? BCLC decided t further reward retailers that pass ID25 Shps. Q2: WHAT IF BCLC DOESN T PERFORM AN ID25 MYSTERY SHOP ON MY LOCATION IN THE CALENDAR YEAR? BCLC Security and Cmpliance perfrms randm age-verificatin mystery shps thrughut the Prvince. If yur lcatin was nt chsen in the calendar year yu will receive the cnditin f payment fr ID25 Shp. Q3: HOW ARE BCLC ID25 MYSTERY SHOPS PERFORMED? ID25 Age Verificatin is a BCLC Retailer Plicy. BCLC Security and Cmpliance perfrms Shps t check that the sale f lttery tickets is perfrmed with integrity. ID25 Shps are perfrmed by smene wh is between years f age, and wh appears t be under 25. They will attempt t purchase a lttery ticket psing as a regular custmer.