1. May 20121 U.S. Benefits New Hire Overview January 2012

2. May 20122   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 Total Compensation and Benefits

3. May 20123   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 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

4. May 20124   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

5. May 20125 Medical Option Highlights (Network) Network CoverageConsumerPPO Monthly Costs Individual/Family - After Wellness Incentive $0 - $33$65 - $272 Annualized Costs Individual/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)

6. May 20126 Medical Option Highlights (Network) Network CoverageConsumerPPO NetworkNetworks are the same. Preventive Medical CareNo 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 Surgery20% after deductible Inpatient Hospitalization20% after deductible

7. May 20127 Prescription Drug Benefits Network CoverageConsumerPPO Preventive Prescription DrugsNo 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)

8. May 20128   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

9. May 20129   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 Welfare – Disability

10. May 201210   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)

11. May 201211 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)

12. May 201212 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)

13. May 201213 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)

14. May 201214 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)

15. May 201215 Time Off Policies – Vacation Years of Service Eligible Days of Vacation Maximum Vacation Limit 1 - 41020 5 - 91525 10 - 192030 20 - 292535 30 +3040

16. May 201216   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

17. May 201217   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

18. May 201218 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.comhttp://hr.phillips66.com Additional Support