EX-10.3



 Exhibit 10.3 
 MARATHON PETROLEUM CORPORATION 
 PERFORMANCE UNIT AWARD AGREEMENT

 2012-2014 PERFORMANCE CYCLE 
 Pursuant to this Award Agreement and the Marathon Petroleum Corporation Second Amended and Restated 2011 Incentive Compensation Plan (the “Plan”), MARATHON PETROLEUM CORPORATION (the
“Corporation”) hereby grants to [NAME] (the “Participant”), an employee of the Corporation or a Subsidiary, on July 1, 2011, [NUMBER] performance units (“Performance Units”), conditioned upon the
Corporation’s TSR Percentile Ranking for the Performance Cycle. The Performance Units are subject to the following terms and conditions: 
 1. Relationship to the Plan. 
 This grant of Performance Units is subject
to all of the terms, conditions and provisions of the Plan and administrative interpretations thereunder, if any, that have been adopted by the Committee. Except as defined herein (including in Paragraph 14 of this Award Agreement), capitalized
terms shall have the same meanings ascribed to them under the Plan. To the extent that any provision of this Award Agreement conflicts with the express terms of the Plan, the terms of the Plan shall control and, if necessary, the applicable
provisions of this Award Agreement shall be hereby deemed amended so as to carry out the purpose and intent of the Plan. References to the Participant also include the heirs or other legal representatives of the Participant. 

2. Determination of Payout Percentage. As soon as practical following the close of the Performance Cycle, the Committee shall
determine the TSR Performance Percentile. The final Payout Percentage will be the simple average of the Payout Percentage of the four performance periods, which are defined as: 

 

	 	(i)	January 1, 2012 through December 31, 2012 

  

	 	(ii)	January 1, 2013 through December 31, 2013 

  

	 	(iii)	January 1, 2014 through December 31, 2014 

  

	 	(iv)	January 1, 2012 through December 31, 2014 

 The Committee shall determine the Payout Percentage for each performance period as follows: 
 (a) If the TSR Performance Percentile is below the 25th percentile, the Payout Percentage for that period shall be zero. 
 (b) If the TSR Performance Percentile is at or above the 25th percentile, the Payout Percentage shall be equal to the TSR Performance Percentile multiplied by 2. 

  
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 (c) Notwithstanding anything herein to the contrary, if the TSR calculated for the
Performance Period is negative, then the Payout Percentage for that performance period shall not exceed 100% regardless of the TSR Performance Percentile for the performance period. 

(d) Notwithstanding anything herein to the contrary, the Committee has sole and absolute authority and discretion to reduce the Payout
Percentage as it may deem appropriate. 
 3. Vesting of Performance Units. Unless the
Participant’s right to the Performance Units is previously forfeited or vested in accordance with Paragraphs 4, 5, 6, or 7, following the Committee’s determinations pursuant to Paragraph 2, the Participant shall vest in and be entitled to
receive a payment equal to the Payout Value. The Payout Value shall be distributed 75% in cash and 25% in common stock. The number of shares of common stock distributed shall be calculated by dividing 25% of the Payout Value by the closing price as
defined in the Plan, rounding the shares down to the nearest whole share. The remainder shall be paid in cash. The payment shall be made as soon as administratively practical following the Committee’s determination under Paragraph 2 and, in any
event, on or before March 15th following the end of
the Performance Cycle. If, in accordance with the Committee’s determination under Paragraph 2, the Payout Value is zero, the Participant shall immediately forfeit any and all rights to the Performance Units. Upon the vesting and/or forfeiture
of the Performance Units pursuant to this Paragraph 3 and the making of the related cash payment, if any, the rights of the Participant and the obligations of the Corporation under this Award Agreement shall be satisfied in full. 

4. Termination of Employment. If Participant’s Employment is terminated prior to the close of the Performance Cycle for any
reason other than death or Retirement, the Participant’s right to the Performance Units shall be forfeited in its entirety as of such termination, and the rights of the Participant and the obligations of the Corporation under this Award
Agreement shall be terminated. 
 5. Termination of Employment due to Death. If Participant’s Employment is
terminated by reason of death prior to the close of the Performance Cycle, the Participant’s right to receive the Performance Units shall vest in full as of the date of death and the Payout Percentage shall be 100%. The payment equal to the
vested value of the Performance Units shall be made in accordance with Paragraph 3 on the first day of the third month following the death of the Participant. Such vesting shall satisfy the rights of the Participant and the obligations of the
Corporation under this Award Agreement in full. 
 6. Termination of Employment due to Retirement. In the event of the
Retirement of the Participant after 50% of the Performance Cycle has elapsed, the Participant’s Performance Units shall be considered vested on a pro-rata basis and paid-out based on the performance for that period following the close of the
Performance Cycle as described below. Subject to the negative discretion of the Committee, the Participant will be entitled to receive a payment equal to the product of (i) the pro-rata vesting percentage equal to the days of Participant’s
Employment during the Performance Cycle divided by the total days in the Performance Cycle and (ii) the Payout Value. Such payment shall be made as soon as administratively practical following the Committee’s determination under Paragraph
2 and, in any event, during the calendar year following the close of the Performance Cycle. If, in accordance with the Committee’s determination under Paragraph 2, the Payout Value is zero, the Participant shall immediately forfeit any and all
rights to the 

  
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Performance Units. Upon the vesting and/or forfeiture of the Performance Units pursuant to this Paragraph 6 and the making of the related cash payment, if any, the rights of the Participant and
the obligations of the Corporation under this Award Agreement shall be satisfied in full. The death of the Participant following Retirement but prior to the close of the Performance Cycle shall have no effect on this Paragraph 6. 

7. Vesting Upon a Change of Control. Notwithstanding anything herein to the contrary, upon the occurrence of a Change in Control
prior to the end of the Performance Cycle, the Participant’s right to receive the Performance Units, unless previously forfeited pursuant to Paragraph 4, shall vest in full and the Payout Percentage shall be 100%. A payment equal to the vested
value of the Performance Units shall be made in accordance with Paragraph 3 on the first day of the third month following the Change in Control. Such vesting shall satisfy the rights of the Participant and the obligations of the Corporation under
this Award Agreement in full. 
 8. Repayment or Forfeiture Resulting from Forfeiture Event. 

(a) If there is a Forfeiture Event either while the Participant is employed or within three years after termination of the
Participant’s Employment, then the Committee may, but is not obligated to, cause some or all of the Participant’s outstanding Performance Units to be forfeited by the Participant. 

(b) If there is a Forfeiture Event either while the Participant is employed or within three years after termination of the
Participant’s Employment and a payment has previously been made in settlement of Performance Units granted under this Award Agreement, the Committee may, but is not obligated to, require that the Participant pay to the Corporation an amount in
cash (the “Forfeiture Amount”) up to (but not in excess of) the amount paid in settlement of the Performance Units. 

(c) This Paragraph 8 shall apply notwithstanding any provision of this Award Agreement to the contrary and is meant to provide the
Corporation with rights in addition to any other remedy which may exist in law or in equity. This Paragraph 8 shall not apply to the Participant following the effective time of a Change in Control. 

(d) Notwithstanding the any other provision of this Agreement to the contrary, the Participant agrees that the Corporation may also
require that the participant repay to the Corporation any compensation paid to the Participant under this Agreement, as is required by the provisions of the Dodd-Frank Act and the regulations thereunder or any other “clawback” provisions
as required by law or by the applicable listing standards of the exchange on which the Corporation’s common stock is listed for trading. 
 9. Taxes. Pursuant to Section 11 of the Plan, the Corporation or its designated representative shall have the right to withhold applicable taxes from the cash otherwise payable to the
Participant, or from other compensation payable to the Participant, at the time of the vesting and delivery of such cash payment. 
 10. No Shareholder Rights. The Participant shall in no way be entitled to any of the rights of a shareholder as a result of this Award Agreement. 

11. Nonassignability. Upon the Participant’s death, the Performance Units may be


  
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transferred by will or by the laws governing the descent and distribution of the Participant’s estate. Otherwise, the Participant may not sell, transfer, assign, pledge or otherwise encumber
any portion of the Performance Units, and any attempt to sell, transfer, assign, pledge, or encumber any portion of the Performance Units shall have no effect. 
 12. No Employment Guaranteed. Nothing in this Award Agreement shall give the Participant any rights to (or impose any obligations for) continued Employment by the Corporation or any Affiliate
thereof or successor thereto, nor shall it give such entities any rights (or impose any obligations) with respect to continued performance of duties by the Participant. 
 13. Modification of Agreement. Any modification of this Award Agreement shall be binding only if evidenced in writing and signed by an authorized representative of the Corporation, provided that no
modification may, without the consent of the Participant, adversely affect the rights of the Participant hereunder. 
 14.
Officer Holding Requirement. Participant agrees that any shares received by the Participant in settlement of this Award shall be subject an additional holding period of one year from the date on which the award is settled, during which holding
period such shares (net of shares used to satisfy the applicable tax withholding requirements) may not be sold or transferred by the Participant. This holding requirement shall cease to apply upon the death of the Participant during the holding
period. 
 15. Definitions. For purposes of this Award Agreement: 

“Performance Cycle” means the period from January 1, 2012 to December 31, 2014. 

“Beginning Stock Price” means the closing price of common stock for the 20 trading days immediately prior
to the commencement of the Performance Cycle, historically adjusted, if necessary, for any stock split, stock dividend, recapitalizations, or similar corporate events that occur during the measurement period. 

“Change in Control,” unless otherwise defined by the Committee, means a change in control of a nature
that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended, whether or not the Corporation is then subject to such reporting requirement;
provided, that, without limitation, such a change in control shall be deemed to have occurred if: 
 (i) any
person (as defined in Sections 13(d) and 14(d) of the Exchange Act) (a “Person”) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation
(not including in the amount of the securities beneficially owned by such person any such securities acquired directly from the Corporation or its affiliates) representing twenty percent (20%) or more of the combined voting power of the
Corporation’s then outstanding voting securities; provided, however, that for purposes of this Plan the term “Person” shall not include (A) the Corporation or any of its subsidiaries, (B) a trustee or other fiduciary holding
securities under an employee benefit plan of the Corporation or any of its subsidiaries, (C) an underwriter temporarily holding securities 

  
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pursuant to an offering of such securities, or (D) a corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their
ownership of stock of the Corporation; and provided, further, however, that for purposes of this paragraph (i), there shall be excluded any Person who becomes such a beneficial owner in connection with an Excluded Transaction (as defined in
paragraph (iii) below); 
 (ii) the following individuals cease for any reason to constitute a majority of
the number of Directors then serving: individuals who, on the date hereof, constitute the Board and any new Director (other than a Director whose initial assumption of office is in connection with an actual or threatened election contest including
but not limited to a consent solicitation, relating to the election of Directors of the Corporation) whose appointment or election by the Board or nomination for election by the Corporation’s stockholders was approved or recommended by a vote
of at least two-thirds (2/3) of the directors then still in office who either were Directors on the date hereof or whose appointment, election or nomination for election was previously so approved; or 

(iii) there is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary thereof with
any other corporation, other than a merger or consolidation (an “Excluded Transaction”) which would result in the holders of the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving corporation or any parent thereof) at least 50% of the combined voting power of the voting securities of the entity surviving the merger or consolidation (or the
parent of such surviving entity) immediately after such merger or consolidation, or the stockholders of the Corporation approve a plan of complete liquidation of the Corporation, or there is consummated the sale or other disposition of all or
substantially all of the Corporation’s assets. 
 Notwithstanding any other provision to the contrary, in no
event shall the transfer of ownership interests in the Corporation in and of itself constitute a Change in Control under this Award Agreement. 
 “Employment” means employment with the Corporation or any of its Subsidiaries. For purposes of this Award Agreement, Employment shall also include any period of time during which the
Participant is on Disability status. 
 “End Stock Price” means the average of the daily closing
price of common stock for the 20 trading days prior to the end of the Performance Cycle. 
 “Forfeiture
Event” means the occurrence of at least one of the following (a) the Corporation is required, pursuant to a determination made by the Securities and Exchange Commission or by the Audit Committee of the Board, to prepare a material
accounting restatement due to the noncompliance of the Corporation with any financial reporting requirement under applicable securities laws as a result of misconduct, and the Committee determines that (1) the Participant knowingly engaged in
the misconduct, (2) the Participant was grossly negligent with respect to such misconduct or (3) the Participant knowingly or grossly negligently failed to prevent the misconduct or (b) the Committee concludes that the Participant
engaged in fraud, embezzlement or other similar misconduct materially detrimental to the 

  
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Corporation. 
 “Payout Percentage” means
the percentage (between 0% and 200%) determined by the Committee in accordance with the procedures set forth in Paragraph 2, which shall be used to determine the value of each Performance Unit. 

“Payout Value” means the product of the Payout Percentage and the number of Performance Units.

 “Peer Group” means the group of companies that are pre-established by the Committee which
principally represent a group of integrated and downstream oil peers, or such other group of companies as selected and pre-established by the Committee. 
 “Retirement” means (i) for an Employee participating in the Retirement Plans, termination on or after the time at which the Employee is eligible for retirement under the Retirement
Plans, or (ii) for an Employee not participating in the Retirement Plans, (a) for an Employee with ten or more years of Employment, termination on or after the Employee’s 50th birthday or (b) termination on or after the
Employee’s 65th birthday. 
 “Retirement Plans” means the Retirement Plan of Marathon
Petroleum Company, the Marathon Petroleum Retirement Plan, or a successor plan to either of such plans, or any other such plans sponsored by the Corporation of any of its subsidiaries, as applicable. 

“Total Shareholder Return” or “TSR” means the number derived using the following formula:

 (End Stock Price – Beginning Stock Price) + Cumulative Dividends 

Beginning Stock Price. 
 “TSR Performance Percentile” means the relative ranking of the Corporation’s Total Shareholder Return for the Performance Cycle as compared to the Total Shareholder Return of the
Peer Group companies during the Performance Cycle. 
  

			
	Marathon Petroleum Corporation
		
	By	 	 
		 	Authorized Officer



  
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