Changes to reseller arrangements with JumboTabcorp Holdings...

Changes to reseller arrangements with JumboTabcorp Holdings Limited (Tabcorp) is pleased to advise that it has signed a binding term sheet withJumbo Interactive Limited (ASX code: JIN)(Jumbo)(subject to conditions precedent) to amend and extend the existing commercial reseller agreements.

The key aspects for Tabcorp of the new binding terms are:
•Agreement with Jumbo for resale of Tabcorp lottery products (New South Wales, Australian Capital Territory, Victoria, Tasmania, South Australia, Northern Territory) for a 10 year term until on or about July 2030(approximately a seven-year extension from the current expiry).

•Fixed extension fee of $15 million payable by Jumbo to Tabcorp upon commencement.•Aservice fee payable by Jumbo to Tabcorp of4.65% of the ticket subscription price, phasing in at 1.50% in FY21, 2.50% in FY22, 3.50% in FY23 and 4.65% thereafter. For FY21to FY23, where the value of subscriptions is in excess of $400 million for each applicable financial year, Jumbo will pay a service fee of 4.65% on the value in excess of $400 million.•If long form agreements are not entered into within60 days from 28 June 2020 (the date the binding term sheet was executed), then the term of the reseller agreements reduces from 10 years to a term expiring on 1 May 2023, with a partial refund of $13.5millionof the upfront extension fee and a partially reduced service fee.

•The binding terms include customary termination rights for distribution agreementsof this type permitting Tabcorp to terminate each of the reseller arrangements on 30 days’ notice if (among other things) Jumbo fails to perform its obligations, enters into similar arrangement with third parties, or there is a change of control of Jumbo.