2014 New Hire Benefits Overview December 2013

2014 New Hire Benefits Overview December, 2013

Total Compensation and Benefits • Compensation – – Base Salary Variable Cash Incentive Program (VCIP) Long-term Incentive (LTI) Special Recognition Award (SRA) • Benefits – – Health & Welfare Phillips 66 Savings Plan Phillips 66 Retirement Plan Time-off & others

Health – Medical, Dental & Vision Plans • Medical Plan – Coverage options assist with health care needs from prevention to catastrophic events – Options include: • Consumer Plan with or without a Health Savings Account (HSA) • PPO Plan • HMO – in certain locations – If you enrolled in the Consumer Plan with HSA, Phillips 66 will contribute $500 (you only) or $750 (all other coverage levels) to your Chase HSA – Prescription drug coverage through Express Scripts (Medco) includes retail and home delivery options (for Consumer and PPO plans) – Estimated 80 / 20 premium cost sharing between Phillips 66 & employees (Phillips 66 contribution to HMOs capped at PPO contribution)

Health – Medical, Dental & Vision Plans • Medical Plan – Coordinated health improvement programs (Health Coaching, 24 hour Nurseline) to enhance medical outcomes – Modeling tools available to help employees decide which options are right for their personal situation – Coverage through either Aetna or BCBS depending on location • Dental Plan – Through Met. Life with projected 80 / 20 cost sharing between Phillips 66 and employees • Vision Plan – 2 plans • Basic Plan – company paid • Comprehensive Plan – employee paid – Through VSP

Medical Plan Highlights (Network) Plan Highlights Consumer Plan PPO Annual Deductible $1, 400 EE / $2, 800 Other $600 EE / $1, 200 Other Annual Out-of-Pocket Maximum $4, 000 EE / $8, 000 Other Company HSA Contribution $500 EE / $750 Other Not applicable Total HSA Contribution Limit $3, 300 EE / $6, 550 Other Not applicable $2, 500 Office Visit, Primary Care / Specialist 20% after deductible $25 copay / $50 copay Inpatient Hospitalization 20% after deductible Outpatient Surgery 20% after deductible Network Preventive Care Coverage 100% Non-Network Coinsurance 50% Monthly Costs Health Care FSA Contribution Limit

Prescription Drug Highlights Plan Highlights Consumer Plan PPO Preventive Prescription Drugs No deductible No cost up to $1, 500 / person / year; thereafter 20% coinsurance up to the annual out-of-pocket maximum No special benefits for preventive prescription drugs. Non-Preventive Prescription Drugs • Pay the negotiated / discounted full cost until you meet the deductible (combined with medical expenses) ($1, 400 / $2, 800) • After deductible, you pay 20% coinsurance until you meet the outof-pocket costs maximum (combined with medical expenses) ($4, 000/$8, 000) • Thereafter, 100% paid by Company for prescription drugs and medical services Network Retail – up to 30 day supply: • Generic: $10 copay • Brand Preferred: 40% coinsurance ($30 minimum and $125 maximum) • Brand Non-Preferred: 50% coinsurance ($60 minimum and $250 maximum) Home Delivery (Medco Pharmacy) – up to a 90 day supply: • Generic: $20 copay • Brand Preferred: 40% coinsurance ($60 minimum and $250 maximum) • Brand Non-Preferred: 50% coinsurance ($120 minimum and $500 maximum)

Dental Highlights Plan Highlights Network Annual Maximum Deductible Preventive Non-Network $2, 000 $50 individual / $150 family 100% covered 20% after deductible Basic Services 20% after deductible 50% after deductible Major Services 50% after deductible Orthodontia 50% before deductible; $2, 000 lifetime limit person 65% of U. S. dentists

Vision Highlights Plan Highlights Basic Plan Comprehensive Plan (optional) Covered in full Covered under Basic Plan Frames or Contact Lenses Discount available $150 allowance; every 12 months Contact Lens Fitting Discount available Covered in full Lenses – Single Vision, Bifocal, Trifocal, Lenticular, Polycarbonate (under 19) Discount available Covered in full; every 12 months Lens Options – Progressive, Anit. Reflective Discount available VSP preferred pricing Company paid Employee paid Exam Monthly Premiums

Wellness Incentive Program 2015 Wellness Incentive Credit Up to $75 monthly premium credit • Depending on points earned in 2014 • 0 – 100 points: $0 • 101 – 200 points: $25 • 201 – 300 points: $50 • 301+: $75 • Complete the health assessment and biometric screening in 2014 • Enroll in the Consumer Plan or PPO Plan for 2015 Instant Rewards $25 gift cards at 100 point milestones • $100 maximum in gift cards • Available for employees eligible for the medical plan Points earned January 1 through November 30, 2014

Wellness Incentive Program Activity Points Biometric outcomes: healthy range or 5% improvement 50 each (200 max) Tobacco free or tobacco coaching 50 Description • • BMI: less than 30, or 5% improvement in weight Cholesterol: 200 or less, or 5% improvement Glucose: 100 or less, or 5% improvement Blood pressure: less than 140/90, or 5% improvement Tobacco free reported on the Health Assessment or Web. MD reports completion of the tobacco cessation program Fitness Challenges 25 each (50 max) Two challenges annually through Web. MD (e. g. a walking challenge) Company initiatives 10 each (50 max) Participation in events such as health fairs, blood drives, cooking classes, etc. Preventive care 20 each (60 max) Dental and vision checkups; preventive medical (e. g. , annual physical, mammogram, flu shot) Online activities and fitness 5 each (60 max) Use the Digital Health Assistant (DHA) to: • Input activity into an exercise tracker • Complete a goal • Create a weekly plan

What Phillips 66 is doing… • Web. MD manages the wellness incentive program • Web. MD is there to help on your journey by providing: – – – – Coaching Tobacco cessation program Condition monitoring tools Virtual health advisor Symptom checker Articles Research Available to employees, spouses/partners and dependent children over 18.

Fitness Reimbursement Program: • 50% of annual membership cost • Up to $300 in reimbursement person per year • Employees eligible for medical • Dependents enrolled in medical • Fitness memberships only • Managed by Wage. Works We are always on the lookout for Wellness Ambassadors

Welfare – Life Insurance • Life Insurance – Basic - One times annual pay; Company paid – Supplemental - Up to eight times annual pay; employee paid – Dependent – Spouse: $40, 000 / $75, 000; Child: $15, 000 / $25, 000; employee paid • Occupational Accidental Death (OAD) – Benefit of $500, 000; company paid • Accidental Death and Dismemberment (AD&D) – Coverage of $20, 000 to $1 million; employee paid – Family coverage available; employee paid

Welfare – Disability • Short-Term Disability (STD) – 52 weeks; Maximum benefit available with 10 years of service: • First 26 weeks at 100 percent pay • Next 26 weeks at 60 percent pay – Company paid • Long-Term Disability (LTD) – Basic benefit – 50 percent of pay; nontaxable – Enhanced benefit – 60 percent of pay; nontaxable – Employee paid

Wealth Accumulation: Phillips 66 Savings Plan (P 66 SP) • The P 66 SP is one of the best and most convenient resources you have for accumulating wealth and securing a comfortable retirement • The P 66 SP consists of two parts: – Thrift Feature • • • – Success Share Generally, you are immediately eligible if you are an employee on the direct U. S. dollar payroll of a Phillips 66 company that has adopted the plan Eligible to participate immediately upon employment 100% vested immediately, including Company contributions Loans and withdrawals available Vanguard is the record keeper You are immediately vested in all amounts contributed to your account.

Wealth Accumulation: Phillips 66 Savings Plan (P 66 SP) Thrift Feature • Employee may contribute up to 75% of eligible pay – – Eligible pay includes base salary and overtime Before-tax, after-tax, Roth 401(k) or a combination “Catch-Up” before-tax contributions allowed if age 50 or older Withdrawals, exchanges and loans allowed • Company matches $1 for $1 up to 5. 0% of eligible pay • You have a choice of funds to choose from for investing your contributions – Company matching contributions follow the employee’s contribution investment election • New hires are automatically enrolled with a 3% before-tax contribution • Annual increase in your election of 1% until your contribution reaches 5% • You can increase, decrease or stop your deferral, annual increase election or investments at any time

Wealth Accumulation: Phillips 66 Savings Plan (P 66 SP) Success Share • As the name implies, it reflects your potential to share in the Company’s success • Discretionary profit sharing contribution of 0% to 6% of eligible pay • Semi-annual cast contributions invested according to your Thrift contribution investment elections • You must have participated in the Thrift Feature for all or part of the measurement period in order to receive a Success Share contribution • The contribution will be based only on your eligible pay for the time period in which you actually made contributions to Thrift

Wealth Accumulation: Phillips 66 Savings Plan (P 66 SP) Contact Vanguard to enroll or make changes • www. vanguard. com (Plan # 099066) • Call Vanguard at 800 -523 -1188 • Access Vanguard through HR Express

Wealth Accumulation: Phillips 66 Retirement Plan (P 66 RP) Phillips 66 Cash Balance Account • Pay credits recognize both age and service (one “point” per year of service plus age equals total points) – Under 44 points: 6% – 44 through 65 points: 7% – 66 or more points: 9% • Bonus (VCIP) is part of eligible compensation used to calculate cash balance pay credit • Interest credits based on 30 year Treasury rate • Cash Balance Account vests in 3 years • Company paid • Eligible month following hire date

Variable Cash Incentive Program (VCIP) VCIP • The Variable Cash Incentive Program (VCIP) is a worldwide program covering most of the company’s workforce in hourly-paid jobs and in all salary grades. If the various business units and the company as a whole perform as expected or better, employees could receive cash payouts generally in February. • VICP award determinations and payments are performance-based and subject to executive approval. This applies to total company, business unit, sub-unit and individual performance. The company may change or discontinue the program at any time. • For complete details visit Connect 66 http: //hr. phillips 66. net/EN/comp/vcip_info/pages/index. aspx

Time Off Policies – Vacation Years of Service Eligible Days of Vacation Maximum Vacation Limit 1 -4 10 20 5 -9 15 25 10 - 19 20 30 20 - 29 25 35 30 + 30 40

Additional Time Off Policies • • • Holidays Serious Illness in Family Death in Family Personal Leave/Sabbaticals Flexible core working hours 19/30 work schedule Part-time regular work schedules Family and Medical Leave (FMLA) Disability Leave Military Leave Community Service Leave Excused Leave with Pay and Hardship Assistance NOTE: Some policies may not be applicable to sites under a collective bargaining unit Agreement (CBA). Such sites should consult their HRBP or CBA.

Other Benefits and Programs • Flexible Spending Accounts (FSA) – Health Care Account (maximum of $2, 500) – Dependent Care Account (maximum of $5, 000) • Employee Assistance Plan (EAP) – Value. Options – 5 face-to-face visits per family member / problem / year -- Company paid • Matching Gift Program for contributions to charitable organizations or schools – Employees are matched $1 for $1 up to $15, 000 annually – Eligible recipients include 501(c)(3) charitable organizations • Educational Assistance / Tuition Refund – Assists in furthering higher education in fields of mutual interest to the employee and Company – Pays 90% of tuition and mandatory enrollment fees up to annual maximums of $8, 500 for advanced degrees and $4, 000 for all other formal education (subject to applicable approvals) • Phillips 66 Severance Pay Plan – Up to 60 weeks of pay based on years of service, if eligible – Education reimbursement up to $2, 000

Additional Support For questions about plans, policies and programs: • Call Phillips 66 Benefits Center – 800 -965 -4421 or 646 -254 -3467 (international callers) – 8 a. m. - 6 p. m. Central time, Monday through Friday • Visit Your Benefits Resources (YBR) website through HR Express or at: http: //resources. hewitt. com/phillips 66 • Call Vanguard at 800 -523 -1188 or access through HR Express • Visit Phillips 66 public HR website at http: //hr. phillips 66. com • HR Connections – 855 -480 -6634 or 918 -977 -7905 – 8 a. m. - 6 p. m. Central time, Monday through Friday

HR Express – Accessing Benefits Enrollment

HR Express – Accessing Payroll

HR Express – Checklist Reminders

Policy Information • Phillips 66 intranet, Connect 66, has various benefit information you will need to know about as a new employee. Please take time to familiarize yourself with all the policies and benefits that are available to you. If you need additional explanation or assistance, please contact your Supervisor or HR Representative. • You will find the path to the following required reading in this New Hire Presentation that was provided to you in your folder during orientation. These policies are to be read within the first 10 days of hire by all employees. Additional Employment Policies will be automatically sent to you via Learning Express within your first 30 days of hire. • GLOBAL POLICIES – – Firearms-Weapons HSE-Policies, Standards & Procedures (Read HSE Policy only) Violence in the Workplace http: //hr. phillips 66. net/en/global_policies/Pages/index. aspx • US POLICIES – – Search Property & Belongings Contraband & Inspection Smoke-Free Workplace http: //hr. phillips 66. net/EN/us/time_off/pages/employ_policies. aspx

Required New Hire Training

HR Express – Access Required Training To Access Required Training Log Onto HR Express

Learning Express – Search Courses

Learning Express – Search Courses You would choose employee or Supv depending on your status • Once chosen you may “Enroll” which will cause the module to be added to your current list located in the “What to Do” tab • Or you may “Enroll and Launch”