May 2012 1

U.S. BenefitsNew Hire Overview

January 2012

May 2012 2

CompensationBase SalaryVariable Cash Incentive Program (VCIP)Long-term Incentive (LTI)Special Recognition Award (SRA)

BenefitsHealth & WelfarePhillips 66 Savings PlanPhillips 66 Retirement PlanTime-off & others

Total Compensation and Benefits

May 2012 3

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 PlanHMO – in certain locations

If 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 Plans

May 2012 4

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 Dental Plan

Comprehensive Dental –through MetLife with projected 80 / 20 cost sharing between Phillips 66 & employees

Preventive Dental – through MetLife at a zero ($0) monthly cost to employees

Health – Medical & Dental Plans

May 2012 5

Medical Option Highlights (Network)

Network Coverage Consumer PPO

Monthly CostsIndividual/Family -After Wellness Incentive

$0 - $33 $65 - $272

Annualized CostsIndividual/Family

$0 - $396 $780 - $3,264

Health Savings Account Company Contribution

$500 / $750 $0

Deductible $1,400 (you only)$2,800 (you + more)

(includes all medical and prescription drug costs)

$600 (you only)$1,200 (you + more)

(does not include physician visit or prescription drug copays/coinsurance)

Out-of-pocket Costs Maximum(includes deductible)

$4,000 (you only)$8,000 (you + more) 100% coverage thereafter

(Out-of-pocket max. includes all participants medical and prescription drug costs)

$3,000 (you only)$6,000 (you + more)100% coverage thereafter

(does not include physician visit or prescription drug copays/coinsurance which are ongoing)

May 2012 6

Medical Option Highlights (Network)

Network Coverage Consumer PPO

Network Networks are the same.

Preventive Medical Care No deductible. Preventive Network services covered at 100%(annual wellness exam, mammogram, colonoscopy, etc.)

Physician Visits (non-preventive) 20% after deductible $25 copay (PCP); $50 copay (specialist)

Outpatient Surgery 20% after deductible

Inpatient Hospitalization 20% after deductible

May 2012 7

Prescription Drug Benefits

Network Coverage Consumer 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) ($1,200 / $2,400)

After deductible, you pay 20% coinsurance until you meet the out-of-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)

May 2012 8

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 – Life Insurance

May 2012 9

Short-Term Disability (STD) 52 weeks; Maximum benefit available with 10 years of service:

First 26 weeks at 100 percent payNext 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

Welfare – Disability

May 2012 10

The P66SP is one of the best and most convenient resources you have for accumulating wealth and securing a comfortable retirement

The P66SP 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 (P66SP)

May 2012 11

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 (P66SP)

May 2012 12

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 with a target pay out of 2%

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 (P66SP)

May 2012 13

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 Savings Plan (P66SP)

May 2012 14

Phillips 66 Cash Balance Account Access Vanguard through HR Express 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

Wealth Accumulation: Phillips 66 Retirement Plan (P66RP)

May 2012 15

Time Off Policies – Vacation

Years of ServiceEligible Days of

VacationMaximum Vacation

Limit

1 - 4 10 20

5 - 9 15 25

10 - 19 20 30

20 - 29 25 35

30 + 30 40

May 2012 16

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.

Additional Time Off Policies

May 2012 17

Flexible Spending Accounts (FSA) Health Care Account (maximum of $2,500) Dependent Care Account (maximum of $5,000)

Employee Assistance Plan (EAP) – ValueOptions 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

Other Benefits and Programs

May 2012 18

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/phillips66

Call Vanguard at 800-523-1188 or access through HR Express Visit Phillips 66 public HR website at http://hr.phillips66.com

Additional Support