Document:

EX-10.10

 Exhibit 10.10 
 OPERATIONAL SERVICES AGREEMENT 
 by and among 

PHILLIPS 66 CARRIER LLC, 
 PHILLIPS 66 PARTNERS HOLDINGS LLC 
 and 

PHILLIPS 66 PIPELINE LLC 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 Article I. Defined Terms
	  	 	1	  
	 Article II. Responsibilities of Operator
	  	 	5	  
	 Article III. Financial Accounting and Billing Practices
	  	 	7	  
	 Article IV. Safety
	  	 	9	  
	 Article V. Relationship of the Parties
	  	 	9	  
	 Article VI. Liability Standard and Indemnification
	  	 	9	  
	 Article VII. Insurance
	  	 	11	  
	 Article VIII. Term and Termination
	  	 	12	  
	 Article IX. Alcohol and Controlled Substances
	  	 	13	  
	 Article X. Force Majeure
	  	 	13	  
	 Article XI. Notices
	  	 	14	  
	 Article XII. Applicable Law
	  	 	15	  
	 Article XIII. Confidentiality
	  	 	15	  
	 Article XIV. Disputes Between the Parties
	  	 	15	  
	 Article XV. Assignability
	  	 	16	  
	 Article XVI. Compliance with Laws
	  	 	16	  
	 Article XVII. Severability
	  	 	16	  
	 Article XVIII. Non-Waiver
	  	 	16	  
	 Article XIX. Entire Agreement; Amendments
	  	 	16	  
	 Article XX. Survival
	  	 	17	  
	 Article XXI. Counterparts; Multiple Originals
	  	 	17	  
	 Article XXII. Construction
	  	 	17	  
	 Article XXIII. Article Headings; Exhibits
	  	 	17	  

  
 i 

			
	 Exhibits
	  	 
		
	A	  	Description of Pipelines and Terminals
	B	  	Maintenance Services
	C	  	Operating Services
	D	  	Administrative Services
	E	  	Construction Services
	F	  	Accounting Procedures
	G	  	Dispute Resolution Procedures

  
 ii 

 OPERATIONAL SERVICES AGREEMENT 

This OPERATIONAL SERVICES AGREEMENT is made and entered into this      day of
        , 2013, by and between PHILLIPS 66 CARRIER LLC, a Delaware limited liability company (“Carrier”), PHILLIPS 66 PARTNERS HOLDINGS LLC, a Delaware limited liability company
(“Holdings”) and PHILLIPS 66 PIPELINE LLC, a Delaware limited liability company (“Operator”). Carrier and Holdings are collectively referred to herein as “Company”. 

WITNESSETH: 
 WHEREAS, Company owns various crude oil and refined products pipelines and terminal assets; and 
 WHEREAS, Operator has experience and expertise in the maintenance and operation of pipelines and terminals and can provide or make available to Company the personnel, technology, and other
resources necessary to maintain and operate such crude oil and refined products pipelines and terminal assets; and 

WHEREAS, Company and Operator desire that Operator maintain and operate such crude oil and refined products pipelines and terminal
assets for Company; 
 NOW, THEREFORE, for and in consideration of the foregoing, the mutual covenants and
promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Company and Operator, Company and Operator agree as follows: 

Article I. Defined Terms 
 1.01
Defined Terms. The following definitions shall for all purposes, unless clearly indicated to the contrary, apply to the capitalized terms used in this Operational Services Agreement: 

 

	(a)	“Accounting Procedures” has the meaning set forth in Section 3.01 hereof and Exhibit F hereto. 

 

	(b)	“Administrative Services” has the meaning set forth in Section 2.01(c) hereof. 

 

	(c)	“Affiliate” means with respect to any Person: (i) any other Person which beneficially owns, directly or indirectly, fifty percent
(50%) or more of such Person’s stock or fifty percent (50%) or more of the ownership interest entitled to vote in such Person, or (ii) any other Person as to which fifty percent (50%) or more of the voting stock or fifty
percent (50%) or more of the ownership interest entitled to vote therein, is beneficially owned, directly or indirectly, either by such Person or by an affiliate of such Person as defined in (i) above. For the purposes of this Agreement,
Company and Operator are not considered Affiliates. 

	(d)	“Agreement” means this Operational Services Agreement, together with all exhibits attached hereto, as the same may be amended, supplemented or
restated from time to time in accordance with the provisions hereof. 

  

	(e)	“Bankruptcy” means, with respect to any Person, that: (i) such Person (A) makes a general assignment for the benefit of creditors;
(B) files a voluntary bankruptcy petition; (C) becomes the subject of an order for relief or is declared insolvent in any federal or state bankruptcy or insolvency proceedings; (D) files a petition or answer seeking for such Person, a
reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any Law; (E) files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such
Person in a proceeding of the type described in subclauses (A) through (D) of this clause (i); or (F) seeks, consents to, or acquiesces in the appointment of a trustee, receiver, or liquidator of such Person or of all or any
substantial part of such Person’s properties; or (ii) against such Person, a proceeding seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any Law has been commenced, and
120 Days have expired without dismissal thereof or with respect to which, without such Person’s consent or acquiescence, a trustee, receiver, or liquidator of such Person or all or any substantial part of such Person’s properties has
been appointed and 90 Days have expired after the date of expiration of a stay, if the appointment has not previously been vacated. 

  

	(f)	“Business Day” means any Day except for Saturday, Sunday or a legal holiday in the State of Texas. 

 

	(g)	“Carrier” has the meaning set forth in the introductory paragraph hereof. 

 

	(h)	“Category of Expenditure” means each of the types of capital and expense expenditures, or combinations thereof, for the Services set forth in
Section 2.01 hereof and in accordance with the Accounting Procedures set forth in Exhibit F. 

  

	(i)	“Partnership Change of Control” means Phillips 66 Company ceases to Control the general partner of Phillips 66 Partners LP.

  

	(j)	“Claim” means any and all judgments, claims, causes of action, demands, lawsuits, suits, proceedings, governmental investigations or audits,
losses, assessments, fines, penalties, administrative orders, obligations, costs, expenses, liabilities and damages (whether actual or consequential), including interest, penalties, reasonable attorneys’ fees, disbursements and costs of
investigations, deficiencies, levies, duties and imposts. 

  

	(k)	“Claim Notice” has the meaning set forth in Section 6.05 hereof. 

 

	(l)	“Company” has the meaning set forth in the introductory paragraph hereof. 

 

	(m)	“Construction Services” has the meaning set forth in Section 2.01(d) hereof. 

  
 2 

	(n)	“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities, by contract, or otherwise. 

  

	(o)	“Day” means the period of time commencing at 0000 hours on one calendar day and running until, but not including, 0000 hours on the next
calendar day, according to Houston, Texas, local time. 

  

	(p)	“Dispute Resolution Procedures” has the meaning set forth in Section 14.01 hereof. 

 

	(q)	“DOT” means the United States Department of Transportation. 

 

	(r)	“Effective Date” means the date of the closing of the initial public offering of common units representing limited partner interests in Phillips
66 Partners LP. 

  

	(s)	“FERC” means the Federal Energy Regulatory Commission. 

 

	(t)	“Force Majeure” has the meaning set forth in Section 10.02 hereof. 

 

	(u)	“GAAP” means United States generally accepted accounting principles. 

 

	(v)	“Holdings” has the meaning set forth in the introductory paragraph hereof. 

 

	(w)	“Indemnified Parties” has the meaning set forth in Section 6.03 hereof. 

 

	(x)	“Law” means any applicable constitutional provision, statute, act, code, law, regulation ordinance, rule, ordinance, order, decree, ruling,
proclamation, resolution, judgment, decision or declaration. 

  

	(y)	“Liability Claim” means any Claim against Operator or Company, except Claims made by employees under any workers compensation Law or those fully
covered by insurance. 

  

	(z)	“Maintenance Services” has the meaning set forth in Section 2.01(a) hereof. 

 

	(aa)	“Material Default” means: (i) the failure of a Party to pay the other Party any material amount of money payable by that Party, except a
failure related to a bona fide business dispute about the amount of such payment or the liability for such payment, not accompanied by a general failure by that Party to pay the amounts it owes under this Agreement, (ii) the general, continuing
failure of a Party to perform its material obligations under this Agreement, except when excused by Force Majeure or by some other provision of this Agreement, and except a failure related to a bona fide dispute about any obligation, or
(iii) with respect to Company, its failure to approve any budgetary expense or capital project involving any pipeline integrity, compliance or regulatory issue that Operator, in its reasonable judgment, deems necessary or required by any Law.

  
 3 

	(bb)	“Month” or “Monthly” means a calendar month commencing at 0000 hours on the first Day thereof and running until, but not
including, 0000 hours on the first Day of the following calendar month, according to Houston, Texas, local time. 

  

	(cc)	“Normal Business Hours” means the period of time commencing at 0800 hours on one Day and running until 1700 hours on the same Day,
according to Houston, Texas, local time. 

  

	(dd)	“Notice” means any notice, request, instruction, correspondence or other communication permitted or required to be given under this Agreement in
accordance with Article XI hereof, or received from a Person who is not a Party. 

  

	(ee)	“Omnibus Agreement” shall mean the Omnibus Agreement by and among Phillips 66 Company, Phillips 66 Pipeline LLC, Phillips 66 Partners LP and
Phillips 66 Partners GP LLC. 

  

	(ff)	“Operating Services” has the meaning set forth in Section 2.01(b) hereof. 

 

	(gg)	“Operator” has the meaning set forth in the introductory paragraph hereof. 

 

	(hh)	“Overrun” has the meaning set forth in Section 3.03(b) hereof. 

 

	(ii)	“Parties” means Carrier, Holdings and Operator, collectively. 

 

	(jj)	“Party” means Carrier, Holdings or Operator, individually. 

 

	(kk)	“Person” means, without limitation, an individual, corporation (including a non-profit corporation), general or limited partnership, limited
liability company, joint venture, estate, trust, association, organization, labor union, or other entity or governmental body, and shall include any successor (by merger or otherwise) of such entity. 

 

	(ll)	“Pipelines” means the crude oil pipelines and refined petroleum products pipelines and related facilities identified in Exhibit A hereto,
and any other crude oil pipelines, natural gas pipelines, natural gas liquid pipelines, liquefied petroleum gas pipelines and refined petroleum products pipelines and related facilities that Operator agrees to operate on behalf of Company upon
reasonable request by Company. 

  

	(mm)	 “Recovery Claim” means any liability or claim which Company has against one or more Persons. 

 

	(nn)	“Services” means the Maintenance Services, Operating Services, Administrative Services, Construction Services, and the other services included
in Section 2.01 hereof, collectively. 

  

	(oo)	“Terminals” means the terminals and related facilities identified in Exhibit A hereto, and any other terminals and related facilities that
Operator agrees to operate on behalf of Company upon reasonable request by Company. 

  
 4 

	(pp)	“Year” means a period of three hundred sixty five (365) consecutive Days, commencing on the date hereof, and it shall also include each
successive three hundred sixty five (365) Day period; provided, however, that any Year which contains a date of February 29 shall consist of three hundred sixty six (366) Days. 

1.02 Terms Generally. The definitions in Section 1.01 shall apply equally to both singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The word “include,” “includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” All references herein to Articles, Sections and exhibits shall be deemed references to Articles and Sections of, and exhibits to, this Agreement unless the context shall otherwise require. Unless the context shall
otherwise require, any reference to any federal, state or local statute, act, code or law shall be deemed also to refer to all rules, regulations and directives promulgated thereunder (and to any successor provision). 

Article II. Responsibilities of Operator 
 2.01 Services to be Provided by Operator. During the term of this Agreement, and subject to the terms and conditions hereof, Operator shall be obligated to perform and provide, or cause to
be performed and provided, the following Services: 
  

	(a)	Such services as may be required by Company for the day-to-day routine and emergency maintenance and repair of the Pipelines and Terminals. Operator’s
obligation to maintain and repair the Pipelines and Terminals shall include the obligation to perform and provide such maintenance, repair and related services and activities as are described in Exhibit B (the “Maintenance
Services”). 

  

	(b)	Such services as may be required by Company for the day-to-day operation of the Pipelines and Terminals. Operator’s obligation to operate the Pipelines and
Terminals shall include the obligation to perform and provide such operating services and activities as are described in Exhibit C (the “Operating Services”). 

 

	(c)	Such administrative services as may be required by Company in order for it to own the Pipelines and Terminals and conduct its business and affairs from time to
time. Operator’s obligation to provide administrative services shall include the obligation to perform and provide such administrative services as are described in Exhibit D (the “Administrative Services”).

  

	(d)	Such construction and related services as may be required by Company from time to time in connection with the Pipelines and Terminals, consisting of the services
described in Exhibit E (the “Construction Services”). 

  

	(e)	Such other services related to the Pipelines and Terminals as the Parties may agree upon in writing from time to time. 

2.02 Manner of Performing/Providing Services. The Services to be performed and provided by Operator hereunder shall be performed and
provided in an efficient and prudent manner with the same degree of diligence and care that Operator would exercise if operating its 

  
 5 

 
own property and in all respects in accordance with all applicable Laws relating to Operator, Company and the Pipelines and Terminals, and Company’s ownership and operation thereof. Operator
shall operate the Pipelines and Terminals in a safe, professional and economical manner and, in a timely fashion, shall advise Company of all matters of significance that could affect the safety or economics relating to their operation so that
Company can make appropriate decisions with respect thereto. Operator shall provide such Services in accordance with and subject to the terms of the budget that is submitted by it to and approved by Company pursuant to Section 3.03 hereof.

 2.03 Personnel. Operator shall utilize and have supervision, subject to the ultimate direction and control of Company, over such
Persons (including consultants and professionals, service or other organizations) as Operator deems necessary or appropriate in order to permit Operator to perform its duties and responsibilities hereunder in an efficient and prudent manner. Subject
to Operator’s right to be reimbursed for such expenses in accordance with the Accounting Procedures (as defined in Section 3.01), Operator shall pay all expenses incurred by it in connection with the retention of such Persons, including,
but not limited to, compensation, salaries, wages and overhead and administrative expenses, charges to or incurred by Operator, and, if applicable, social security taxes, workers compensation insurance, retirement and insurance benefits and other
such expenses. Any such Persons retained by Operator may be union or non-union employees, and Operator shall have the sole right to negotiate the terms and provisions of any labor or other agreements with the unions to which such employees belong.
Operator shall provide, or cause to be provided, all workers who will perform Services. With respect to Company operations in Texas, Operator shall obtain workers’ compensation coverage as defined by Texas Labor Code Section 401.011(44) on
behalf of both Operator and Company, and Company shall be considered an employer solely for the purposes of Texas Labor Code Section 401.011(18) and Section 408.001. With respect to Company operations performed in any jurisdiction other
than Texas, to the extent that such jurisdiction would regard Company as a joint or dual employer of any such employee, Operator shall obtain workers’ compensation coverage as defined and required by Law on behalf of both Operator and Company,
provided that Company shall be considered an employer solely for the purposes of its status as a joint or dual employer under the relevant workers’ compensation regime. 
 2.04 Use of Affiliates. In its performance of the Services hereunder, Operator may, but shall not be obligated to, use the services of Operator’s or its Affiliates’ accounting,
construction, purchasing, engineering, legal, planning, budgeting, operating, regulatory, and other departments. 
 2.05 Contracts.
Operator is authorized to execute, in its name and for the benefit of Company, such contracts as may be necessary for Operator to carry out its responsibilities under this Agreement; provided, however, that Operator shall not execute any
contract in excess of Five Million Dollars ($5,000,000.00), or that covers a period longer than the term of this Agreement, unless Operator obtains Company’s prior written approval. 

  
 6 

 2.06 Claims. 
  

	(a)	Any Liability Claim or Recovery Claim, to the extent relating to the operation or maintenance of the Pipelines and Terminals, shall be defended, prosecuted or
settled by Operator, subject to the ultimate direction and control of Company. 

  

	(b)	The costs of handling a Liability Claim or a Recovery Claim, including reasonable costs of legal counsel, together with the amount of any settlement of or
judgment rendered on a Liability Claim, including court costs, shall be paid by Operator and shall be reimbursed by Company. Any amounts received by Operator in settlement of a Recovery Claim or in payment of a judgment on a Recovery Claim shall be
paid over to Company. 

  

	(c)	Operator shall promptly notify Company whenever Operator receives actual Notice of any claim against Company or Operator (in its capacity as Operator).

  

	(d)	Before making any settlement of any Liability Claim and before filing any lawsuit or making any settlement with respect to any Recovery Claim, Operator shall
give to Company written Notice of the fact that it desires to file such suit or make such settlement (as the case may be), which Notice shall set forth the nature of the claim and the amount for which Operator proposes to sue or settle, and Operator
shall not file any such suit nor make any such settlement without the approval of Company. 

 2.07 Company Property.
All property, equipment and material acquired solely on behalf of Company by Operator hereunder shall be deemed to be owned by Company. 

Article III. Financial Accounting and Billing Practices 
 3.01 Accounting. Operator shall keep a full and complete account of all costs and expenses incurred by it in connection with the performance and provision of the Services hereunder in the
manner set forth in the Accounting Procedures. 
 3.02 Compensation. Operator shall be fully reimbursed by Company for all
necessary and reasonable costs, expenses and expenditures incurred by Operator on behalf of Company in connection with the provision of the Services at the rates and in the manner set forth in the Accounting Procedures. 

3.03 Budgets. 
  

	(a)	 By
November 1st of each year, Operator shall prepare and
submit to Company for approval a detailed maintenance, operating, and capital budget setting out the amounts Operator proposes to expend for such purposes during the next calendar Year, which budget shall, to the extent practicable, provide for a
breakdown of expenses and expenditures on a Monthly basis, by Category of Expenditure and by asset as defined by Operator. Upon Company approval of such budget, Operator shall have the authority to award and execute contracts within the expenditure
limits set forth in such budget. When expense and capital appropriation requests are not required (such as with annual maintenance contracts), Operator shall have the authority to award and execute such contracts without additional Company approval,
subject to Section 2.05 of this Agreement. 

  
 7 

	(b)	If it appears at any time after Operator receives a budget approved by Company that the total actual expenditures for any calendar Year will exceed the total
annual budgeted amount for such calendar Year, Operator shall notify Company of such expected excess expenditure as part of the normal Monthly billing process. If it subsequently appears that the total actual expenditures for any calendar Year will
exceed ten percent (10%) of the total annual budgeted amount (“Overrun”), Operator shall submit to Company for approval an amendment to the then-applicable budget, together with an explanation of the reason(s) for the
anticipated budget Overrun. As soon as practicable following the last Day of each Month, Operator shall submit to Company a Monthly report comparing actual expenditures for such Month to budgeted operating expenses and capital projects for such
Month. 

  

	(c)	Company shall notify Operator in writing of the approval or disapproval of any proposed budget or amendment thereto in writing within fifteen (15) Days
after receipt thereof. In the event Company does not so notify Operator within such time period, or if Company notifies Operator that such budget or amendment has been disapproved, then until Operator receives approval of a proposed budget or
amendment: (i) the current approved budget shall remain in effect, and (ii) Operator shall continue to have the authority to make expenditures with regard to items previously approved by Company. If any such proposed budget or amendment is
disapproved, Operator shall submit a revised proposed budget or amendment to Company for approval as soon as is reasonably practicable. 

  

	(d)	Operator shall meet with Company a minimum of four (4) times during each calendar Year, or more if Company requests, in order to review the budget and
permit Company to monitor the accuracy of the budget for current Year operations. 

  

	(e)	The Parties agree that the maintenance, operating and capital budget for 2013 shall be as presented by Company to Operator no later than the Effective Date.

  

	(f)	Except as Company may otherwise direct in writing, the approval by Company of a budget or an amendment to a budget shall constitute Company’s authorization
of Operator to incur the expenses contained in such budget or amendment. 

 3.04 Safety, Environmental and Emergency
Expenditures. Notwithstanding any other provision in this Agreement, Operator may incur (and be reimbursed for) any expenditures or take any other actions as Operator in its reasonable judgment deems to be immediately necessary: (i) to
protect the environment from immediate and present harm; (ii) to protect the health and safety of Persons from immediate and present harm; (iii) to safeguard lives or property in connection with the initial response to any emergencies
affecting the Pipelines and Terminals; and (iv) proceed with maintenance or repair work necessary to keep the Pipelines and Terminals operating, or to restore the Pipelines and Terminals to operating conditions; however, it is also understood
that every reasonable effort will be made by Operator to notify Company at the earliest possible convenience of such emergencies and expenditures involving same. 
 3.05 Billing Practices. Company shall pay and Operator shall receive as full and complete compensation for the performance of the Services hereunder, the sum of the amounts becoming due as
described in the Accounting Procedures. For Services provided by Operator in any 

  
 8 

 
Month, payment by Company shall be made no later than the
21st Day of the immediately following Month, provided that
if such Day is not a Business Day, then Company shall pay such amount without interest on the next Business Day. As long as Operator is an Affiliate of Company, the Operator and Company may settle Company’s financial obligations to Operator
through Operator’s normal interaffiliate settlement processes. 
 3.06 Records and Audit Rights. Operator shall maintain a
true and correct set of records pertaining to all activities relating to its performance hereunder and all transactions related thereto. Operator further agrees to retain all such records for a period of time not less than two (2) Years
following the end of the calendar Year in which the applicable Services were performed. Company, or its authorized representative or representatives, shall have the right during Operator’s Normal Business Hours to audit, copy and inspect, at
Company’s sole cost and expense, any and all records of Operator relating to its performance of its obligations hereunder (but not any other books and records of Operator). Audits shall not be commenced more than once by Company during each
calendar Year and shall be completed within a reasonable time frame not to exceed thirty (30) Days. Company may request information from Operator’s books and records relating to Operator’s obligations hereunder from time to time and
such requests shall not constitute an audit for that calendar Year. Company shall have two (2) Years after the end of a calendar Year during which to conduct an audit of Operator’s books and records for such calendar Year, and any Claim
arising out of or based in whole or in part on the information produced or obtained by the performance of any such audit must be made, if at all, within such two (2) Year period. 
 Article IV. Safety 
 4.01 Safety Requirements. Company agrees that
Operator will abide by, at a minimum, the safety requirements promulgated by Operator from time to time with respect to the Pipelines and Terminals and in compliance with applicable Laws. 
 Article V. Relationship of the Parties 
 5.01 General Principles Regarding
Relationship of the Parties. The Parties agree that Operator shall provide the Services to Company as an independent contractor and not as an agent or representative of Company. This Agreement is not intended to and shall not create or
otherwise form a partnership or joint venture between Operator and Company. 
 5.02 Standard of Operational Control. The Parties
agree that the Services shall be performed under the absolute direction and control of Company. Company shall have the right to monitor, consult with and give operational instructions to Operator. Operator shall not unreasonably refuse service
requests or operational instructions of Company. 
 Article VI. Liability Standard and Indemnification 

6.01 Liability Standard. Notwithstanding anything herein to the contrary, and in recognition of the fact that the Services to be
performed and provided by Operator hereunder are to be furnished, performed and provided in exchange for the reimbursement provided for in the Accounting Procedures, Operator shall only be liable to Company for gross negligence or willful or wanton
misconduct in the performance of its obligations hereunder, AND NEITHER 

  
 9 

 
OPERATOR NOR SUCH OF ITS AFFILIATES OR AGENTS AS IT SHALL APPOINT TO PERFORM DUTIES HEREUNDER OR THEIR RESPECTIVE DIRECTORS, STOCKHOLDERS, OFFICERS, MEMBERS, PARTNERS, EMPLOYEES, AGENTS,
CONSULTANTS, REPRESENTATIVES, SUCCESSORS, TRANSFERREES AND ASSIGNEES SHALL BE LIABLE TO COMPANY OR PERSONS WHO HAVE ACQUIRED INTERESTS IN COMPANY, WHETHER AS PARTNERS, ASSIGNEES OR OTHERWISE, FOR ERRORS IN JUDGMENT OR FOR ANY ACTS OR OMISSIONS THAT
DO NOT CONSTITUTE GROSS NEGLIGENCE OR WILLFUL OR WANTON MISCONDUCT, IT BEING THE INTENTION OF THE PARTIES THAT NEITHER OPERATOR NOR SUCH OF ITS AFFILIATES OR AGENTS AS IT SHALL APPOINT TO PERFORM DUTIES HEREUNDER OR THEIR RESPECTIVE DIRECTORS,
STOCKHOLDERS, OFFICERS, MEMBERS, PARTNERS, EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES, SUCCESSORS, TRANSFEREES AND ASSIGNEES SHALL BE LIABLE FOR THEIR OWN NEGLIGENCE (SOLE, PARTIAL OR CONCURRENT). 

6.02 Responsibility for Affiliates and Agents. Operator may exercise any of the powers granted to it by this Agreement and perform any of
the duties imposed upon it hereunder either directly or by or through its Affiliates or agents, and Operator shall not be responsible for any misconduct or negligence on the part of any such Affiliate or agent appointed by Operator with due care.

 6.03 Indemnification. FROM AND AFTER THE DATE OF THIS AGREEMENT, COMPANY SHALL INDEMNIFY AND HOLD HARMLESS OPERATOR AND EVERY
AFFILIATE OF OPERATOR AS IT SHALL APPOINT TO PERFORM SERVICES HEREUNDER AND ITS AND THEIR RESPECTIVE DIRECTORS, STOCKHOLDERS, OFFICERS, MEMBERS, PARTNERS, EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES, SUCCESSORS, TRANSFEREES AND ASSIGNEES
(COLLECTIVELY THE “INDEMNIFIED PARTIES”) FROM, AGAINST AND IN RESPECT OF ANY AND ALL LIABILITY CLAIMS ASSERTED BY OR ON BEHALF OF ANY PERSON OTHER THAN COMPANY ARISING FROM, RELATING TO, OR ASSOCIATED WITH THE PERFORMANCE OR PROVISION OR
FAILURE TO PERFORM OR PROVIDE BY OPERATOR ANY OF THE SERVICES OR THE FAILURE BY COMPANY TO PERFORM ANY OF ITS OBLIGATIONS UNDER THIS AGREEMENT, IN EACH CASE REGARDLESS OF WHETHER ANY SUCH CLAIM RESULTS FROM THE NEGLIGENCE (SOLE, PARTIAL OR
CONCURRENT) OF OPERATOR OR ANY OF THE INDEMNIFIED PARTIES; PROVIDED, HOWEVER, THAT SUCH INDEMNIFICATION SHALL NOT EXTEND TO ANY AMOUNT OF DAMAGES THAT ARE DETERMINED TO BE ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL OR WANTON MISCONDUCT OF THE
INDEMNIFIED PARTY. 
 6.04 Consequential Damages. Notwithstanding anything herein to the contrary, neither Party shall be
liable to the other Party for special, indirect or consequential damages resulting from or arising out of this Agreement, including, without limitation, loss of profits or business interruptions, however they may be caused. 

  
 10 

 6.05 Notice of Claims. Promptly after any Indemnified Party becomes aware of facts giving rise
to a Claim by it for indemnification pursuant to this Article, such Indemnified Party shall provide Notice to Company (a “Claim Notice”) outlining such Claim and a copy of all papers served with respect thereto (if any). For
purposes of this Section, receipt by an Indemnified Party of Notice of any Claim by or from any Person other than a Party to this Agreement which gives rise to a Claim on behalf of such Indemnified Party shall require prompt Notice from the
Indemnified Party to Company of the receipt of such Notice as provided in the first sentence of this Section 6.05; provided, however, that the failure of any Indemnified Party to give timely Notice shall not affect its rights to
indemnification hereunder except to the extent that Company is materially prejudiced thereby. Each Claim Notice shall set forth all information regarding the Claim as the Indemnified Party shall then have and shall contain a statement to the extent
that the Indemnified Party giving the Notice is making a Claim pursuant to a formal demand for indemnification under this Article VI. 

Article VII. Insurance 
 7.01
Insurance. 
  

	(a)	Operator shall at all times during the term of this Agreement procure and maintain workers’ compensation insurance or similar insurance, including all such
insurance as may be required by all applicable state and federal workers’ compensation Laws and such other Laws as may be applicable to the Services performed under this Agreement. Operator shall cause its workers’ compensation and
employers liability insurers to waive their rights of subrogation against Company. 

  

	(b)	Operator may elect to self-insure all or any part of the insurance requirements set forth in Section 7.01(a) above to the extent allowed by applicable
Law. If Operator elects to self-insure, then Operator shall respond to any insurance claim, with regard to waiving rights of subrogation against Company, in the same manner as a commercial market insurance policy that waived subrogation rights
against Company would have responded to such insurance claim. 

 7.02 Cost Reimbursement. Insurance as required in
Section 7.01 hereof shall be a reimbursable cost pursuant to the Accounting Procedures. 
 7.03 Required Contractor Coverage.
Operator shall require all contractors and subcontractors employed by Operator in performing and/or providing Services hereunder to procure and maintain the following insurance: (i) workers’ compensation insurance or similar insurance,
including all such insurance as may be required by all applicable state and federal workers’ compensation Laws and such other Laws as may be applicable to the Services provided by such contractors and subcontractors; (ii) employers’
liability insurance with amounts required by Law or One Million Dollars ($1,000,000.00) per occurrence, whichever is greater; (iii) commercial general liability insurance on an occurrence form covering liabilities for death and personal injury
and liabilities for loss or damage to property with a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence, which insurance must cover all Services conducted by such contractors and subcontractors related to this
Agreement; and (iv) business vehicle insurance covering liabilities for death of or injury to any one Person and 

  
 11 

 
liabilities for loss of or damage to property resulting from any one (1) accident with a combined single limit of not less than One Million Dollars ($1,000,000.00) per occurrence. Further,
Operator shall require such contractors and subcontractors to cause their workers’ compensation and employers’ liability insurance insurers to waive their rights of subrogation against Company, and to name Company as an additional insured
under any commercial general liability and business vehicle liability insurance policies carried by such contractors and subcontractors. 

Article VIII. Term and Termination 

8.01 Term. Unless terminated in accordance with Section 8.02, Section 8.03 or Section 8.04 below, this Agreement shall have a
five (5) Year primary term, commencing on the date hereof, and this Agreement shall continue in full force and effect thereafter unless it is terminated by either Party at the end of the primary term or at any time thereafter by giving not less
than six (6) Months prior Notice of such termination to the other Party. 
 8.02 Termination by Company. Company shall have
the right to terminate this Agreement immediately upon the occurrence of any of the following events: (i) upon the Bankruptcy of Operator; or (ii) upon a finding by Company that Operator (A) has been grossly negligent or engaged in
willful or wanton misconduct in the performance of its obligations hereunder and that such gross negligence or willful or wanton misconduct has had a material adverse effect on the Pipelines and Terminals or Company’s business as it relates to
the Pipelines and Terminals, or (B) has engaged in a continued or regular pattern or gross negligence or willful or wanton misconduct that Company reasonably determines to pose a risk of resulting in a material adverse effect on the Pipelines
and Terminals or Company’s business as it relates to the Pipelines and Terminals; provided that Company shall deliver to Operator Notice of any such affirmative finding, which shall include a reasonably detailed description of the basis
therefor. 
 8.03 Termination by Operator. Operator shall have the right to terminate this Agreement or any Services provided
hereunder: (i) immediately upon the Bankruptcy of Company or (ii) on six (6) Months prior Notice upon the occurrence of a Partnership Change of Control. Notwithstanding the foregoing, if Phillips 66 Partners LP ceases to Control,
directly or indirectly, either Carrier or Holdings, as the case may be, then Operator shall have the right to terminate this Agreement with respect to any Services provided to Carrier or Holdings, as applicable. 

8.04 Right of Termination by Either Party. Any Party may terminate this Agreement at any time upon sixty (60) Days prior Notice to the
other Party if: 
  

	(a)	the other Party is in Material Default of any of its obligations under this Agreement; and 

 

	(b)	the non-defaulting Party gives Notice of such Material Default to the defaulting Party, which Notice shall set forth in reasonable detail the facts and
circumstances of such Material Default; and 

  

	(c)	the defaulting Party fails to cure the Material Default within thirty (30) Days, or, for a Material Default not reasonably susceptible to cure within that
period, to undertake to cure such Material Default and thereafter to diligently continue such efforts until the Material Default is cured. 

  
 12 

 8.05 Effect of Termination. The termination of this Agreement shall not relieve either Party
of its obligations to pay amounts of money due hereunder which accrued prior to such termination. Upon termination, Operator shall promptly make available to Company its books and records relating to the Pipelines and Terminals. 

Article IX. Alcohol and Controlled Substances 
 9.01 Substance Abuse. Operator shall prohibit the use, possession, distribution, sale or storage of illegal or controlled substances, and substance-related paraphernalia, by its personnel
while performing Services hereunder or while located on Company premises. Operator shall perform or cause to be performed all actions necessary for compliance with any applicable Laws pertaining to illegal or controlled substances, specifically
including, but not limited to, the Drug-Free Workplace Act of 1988 (41 U.S.C. §§ 701-707) and DOT regulations applicable to operators of pipeline facilities subject to applicable 49 C.F.R. Part 199. Unless prohibited by Law,
Operator shall require all personnel who enter Company premises to consent to searches, whether performed by Company or appropriate law enforcement officials, of the vehicles and other personal effects of such personnel for monitoring the presence
of any illegal or controlled substances or substance-related paraphernalia. Company reserves the right, exercisable in Company’s sole discretion, to bar any of Operator’s personnel from performing Services hereunder, so long as such
discretion is not exercised in violation of any governing Law. Such discretion shall apply with respect to, but not be limited to, any personnel whom Company reasonably suspects to be involved with illegal or controlled substances, and such
discretion shall not be unreasonably exercised. 
 Article X. Force Majeure 
 10.01 Force Majeure. If, because of an event of Force Majeure, either Party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, other than the
obligation to make money payments when due, and if such Party gives Notice and reasonably full particulars of such Force Majeure in writing to the other Party within a reasonable time after the occurrence of the cause relied upon, the Party giving
such Notice, so far and to the extent that it is affected by such Force Majeure, shall not be liable in damages due to such Party’s failure to carry out its obligations under this Agreement; provided, however, that the cause of the event
of Force Majure shall be remedied with all reasonable dispatch. 
 10.02 Meaning of “Force Majeure”. As used herein, the
term “Force Majeure” shall mean acts of God; strikes, lockouts or other industrial disturbances; acts of a public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, crevasses,
subsidences, floods, washouts; arrests and restraints of the government, necessity for compliance with any court order, Law promulgated by any governmental authority having jurisdiction, either federal or state, civil or military; civil
disturbances; shutdowns for purposes of necessary repairs; relocation or construction of facilities; breakage or accident to machinery or lines of pipe; the necessity for testing (as required by governmental authority or as deemed necessary by the
testing Party for the safe operation thereof), the necessity of making repairs or alterations to machinery or lines of pipe; failure of surface equipment or pipelines; accidents, breakdowns, inability of either Party to obtain necessary material,
supplies, permits or labor to perform or comply with any obligation or condition under this Agreement, or rights of way; and any other causes, whether of the kind herein enumerated or otherwise, which are not reasonably in the control of the Party
claiming suspension. 

  
 13 

 10.03 Strikes or Lockouts. It is understood and agreed that the settlement of strikes or
lockouts shall be entirely within the discretion of the Party having the difficulty and that the requirement in Section 10.01 that any event of Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of
strikes or lockouts by acceding to the demands of an opposing party when such course is inadvisable in the discretion of the Party having the difficulty. 
 10.04 Performance by Company or Third Parties. If, because of an event of Force Majeure, Operator is unable to perform the Services required of it hereunder, Company may perform such
Services itself or arrange for such Services to be performed by a third party, but only for the duration of such event of Force Majeure. 

Article XI. Notices 
 11.01
Notices. Unless otherwise specifically provided herein, all Notices between the Parties given under or in relation to this Agreement shall be made in writing and shall be deemed to have been properly given if: (i) personally
delivered; (ii) delivered and confirmed by telecopier or like transmission service; (iii) delivered by a reputable overnight courier delivery service; or (iv) sent by certified United States mail (postage prepaid, return receipt
requested), addressed as follows: 
  

					
		  	If to Carrier:	  	Phillips 66 Carrier LLC
		  		  	3010 Briarpark Drive
		  		  	Houston, TX 77042
		  		  	Attn:
                                
			
		  	 If to Holdings:
	  	Phillips 66 Partners Holdings LLC
		  		  	3010 Briarpark Drive
		  		  	Houston, TX 77042
		  		  	Attn:
                                 
			
		  	 If to Operator:
	  	Phillips 66 Pipeline LLC
		  		  	3010 Briarpark Drive
		  		  	Houston, TX 77042
		  		  	Attn:
                                 

 11.02 Effective Date. Any Notice given in the manner set forth in Section 11.01 shall be effective upon
actual receipt if received during the recipient’s Normal Business Hours or at the beginning of the recipient’s next Business Day if not received during the recipient’s Normal Business Hours. 

11.03 Change of Address Notice. Either Party may change its Notice address by giving notice to the other Party in the manner set forth in
Section 11.01; provided, however, that no change of address Notice shall be effective until actually received by the other Party. 

  
 14 

 Article XII. Applicable Law 
 12.01 Applicable Law. REGARDLESS OF THE PLACE OF CONTRACTING, PLACE(S) OF PERFORMANCE, OR OTHERWISE, THE PROVISIONS OF THIS AGREEMENT AND ALL AMENDMENTS, MODIFICATIONS, ALTERATIONS OR
SUPPLEMENTS HERETO SHALL BE GOVERNED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OR ANY OTHER PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR INTERPRETATION OF THIS AGREEMENT
TO THE LAW OF ANOTHER JURISDICTION. 
 Article XIII. Confidentiality 
 13.01 Confidentiality. During the performance of this Agreement, each Party acknowledges that it will receive confidential business and technical information from or regarding the other
Party. All information disclosed between the Parties will be deemed confidential, unless expressly designated otherwise at the time of disclosure. The receiving Party agrees not to disclose to any third Person, except as permitted herein, any
confidential information it receives from the disclosing Party. The receiving Party agrees that it will not use the confidential information for any purpose other than the performance of this Agreement. The receiving Party may disclose confidential
information: (i) when compelled by Law (but the receiving Party must notify the disclosing Party promptly of any request for such information before disclosing it, if practicable); and (ii) only to those employees, advisers, consultants,
or representatives of the receiving Party who have a need to know (provided that such Persons are obligated to the receiving Party in a manner consistent with the terms of this Section). This Section will be inoperative as to particular portion of
the confidential information if such information (i) is or lawfully becomes available to the public through no fault of the receiving Party; (ii) was available to the receiving Party on a non-confidential bas is prior to its disclosure to
the receiving Party by the disclosing Party; (iii) becomes available to the receiving Party on a non-confidential basis from a source other than the disclosing Party when such source is entitled, to the best of the receiving Party’s
knowledge, to make the disclosure to the receiving Party; or (iv) independently developed by or for the receiving Party by Persons who have not had access to the disclosing Party’s confidential information. 

Article XIV. Disputes Between the Parties 
 14.01 Dispute Resolution. Any dispute between the Parties in connection with this Agreement shall be resolved by arbitration in accordance with the procedures set forth in Exhibit G;
provided, however, that either Party may seek a restraining order, temporary injunction, or other provisional relief in any court with jurisdiction over the subject matter of the dispute and sitting in Houston, Texas, if such Party in its
sole judgment believes that such action is necessary to avoid irreparable injury or to preserve the status quo ante. 
  

  
 15 

 Article XV. Assignability 
 15.01 Assignability. This Agreement shall inure to the benefit of and shall be binding upon the Parties and their respective successors and assigns; provided, however, that neither
this Agreement nor any of the rights, benefits or obligations hereunder shall be assigned, by operation of Law or otherwise, by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld.
Except as provided for herein, nothing in this Agreement is intended to confer any rights, benefits or obligations upon any Person other than the Parties and their respective successors and assigns. 

Article XVI. Compliance with Laws 

16.01 Compliance with Laws. This Agreement is in all respects subject to all Laws. The Parties shall at all times comply with all of these
Laws as are applicable to their performance of this Agreement. If applicable, the Parties shall comply with the provisions of Executive Order 11246 (Equal Employment Opportunity), as amended, together with all rules, regulations and relevant orders
of the United States Department of Labor. Notwithstanding the provisions of any other Section of this Agreement, Company shall have no liability hereunder for any fines, penalties, or other assessments by regulatory agencies if and to the extent
such fines, penalties, or other assessments result from Operator’s sole negligence in performing its obligations hereunder. 

Article XVII. Severability 

17.01 Severability. If any provision of this Agreement or the application thereof shall be found by any arbitral panel or court of competent
jurisdiction to be invalid, illegal or unenforceable, to any extent and for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the Parties. In any event, the remainder of this Agreement and the
application of such remainder shall not be affected thereby and shall be enforced to the greatest extent permitted by Law. 

Article XVIII. Non-Waiver 
 18.01
Non-Waiver. The failure of either Party to enforce any provision, condition, covenant or requirement of this Agreement at any time shall not be construed to be a waiver of such provision, condition, covenant or requirement unless so
notified by such Party in writing. No waiver by either Party of any default by the other Party in the performance of any provision, condition, covenant or requirement contained in this Agreement shall be deemed to be a waiver of, or in any manner
release such other Party from performance of any other provision, condition, covenant or requirement herein contained, nor be deemed to be a waiver of the same provision, condition, covenant or requirement. 

Article XIX. Entire Agreement; Amendments 
 19.01 Entire Agreement. This Agreement, together with all exhibits attached hereto, constitutes the entire Agreement between the Parties relating to the subject matter hereof and it
supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, between the Parties relating to the subject matter hereof, and there are no warranties, representations or other agreements
between the Parties in connection with the subject matter hereof except as specifically set forth in, or contemplated by, this Agreement. 

  
 16 

 19.02 Amendments. This Agreement shall not be modified or amended, in whole or in part, except
by a written amendment signed by the Parties. 
 Article XX. Survival 
 20.01 Survival. Any indemnification granted hereunder by one Party to another Party shall survive the termination of all or any part of this Agreement. 

Article XXI. Counterparts; Multiple Originals 
 21.01 Counterparts; Multiple Originals. This Agreement may be executed in any number of counterparts, all of which together shall constitute one agreement binding on the Parties. Each of the
Parties may sign any number of copies of this Agreement. Each signed copy shall be deemed to be an original, but all of them together shall represent one and the same agreement. 
 Article XXII. Construction 
 22.01 Construction. The Parties have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of
proof shall arise favoring or disfavoring a Party by virtue of the authorship of any of the provisions of this Agreement. 

Article XXIII. Article Headings; Exhibits 
 23.01 Article Headings. The Article Headings used in this Agreement have been inserted only for convenience to facilitate reference and they shall not be determinative in construing the
meaning, interpretation or application of any Article or provision hereof 
 23.02 Exhibits. The exhibits referred to herein are
attached hereto and by this reference are incorporated herein and made a part hereof. In the event there is any conflict between this Agreement and an exhibit, the provisions of this Agreement shall be deemed controlling. 

  
 17 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly
authorized officers as of the date first set forth above. 
  

			
	 PHILLIPS 66 PIPELINE LLC
 (“Operator”)

		
	 By
	 	  

	 Name:
	 	  

	 Title
	 	  

	 Date:
	 	  

	
	 PHILLIPS 66 CARRIER LLC

	 (“Carrier”)

		
	 By
	 	  

	 Name:
	 	  

	 Title
	 	  

	 Date:
	 	  

	
	 PHILLIPS 66 PARTNERS HOLDINGS LLC

	 (“Holdings”)

		
	 By
	 	  

	 Name:
	 	  

	 Title
	 	  

	 Date:
	 	  

  
 18 

 Exhibit A 
 Description of Pipelines and Terminals 
 Attached to and made a part of that certain
Operational Services Agreement (the “Agreement”), dated             , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and Phillips 66 Pipeline LLC

 Crude Oil Pipelines 
 Clifton
Ridge to Lake Charles refinery – a 20” crude oil pipeline extending from the Clifton Ridge marine terminal to the Lake Charles Refinery, in Calcasieu Parish, Louisiana. 
 Pecan Grove to Clifton Ridge – a 12” crude oil pipeline extending from the Pecan Grove marine terminal to the Clifton Ridge marine terminal, in Calcasieu Parish, Louisiana. 

Shell to Clifton Ridge – a 20” crude oil pipeline extending from Shell’s Houma to Houston pipeline to the Clifton Ridge marine terminal,
in Calcasieu Parish Louisiana. 
 Refined Product Pipelines 
 Sweeny to Pasadena – a 12” refined products pipeline extending from the Sweeny Refinery, in Brazoria County, Texas to the Pasadena terminal, in Harris County, Texas. 

Sweeny to Pasadena – a 18” refined products pipeline extending from the Sweeny Refinery, in Brazoria County, Texas to the Pasadena terminal, in
Harris County, Texas. 
 Wood River to Hartford – a 12” refined products pipeline extending from the Wood River Refinery, in Madison
County, Illinois to the Hartford terminal, in Madison County, Illinois. 
 Hartford to Explorer – a 24” refined products pipeline
extending from the Hartford terminal, in Madison County, Illinois to the Explorer Pipeline system in Madison County, Illinois. 
 Terminals

 Hartford Terminal. Hartford Terminal is located at or near Hartford, Illinois. The facility consists of a two-bay truck rack with
17,000 barrels of active terminaling capacity, 13 above-ground storage tanks with approximately 1.1 million barrels of total storage capacity. The Hartford barge dock consists of a single-berth barge loading facility, approximately 0.8 miles of
8-inch pipeline and approximately 0.8 miles of 14-inch pipeline from the Hartford terminal to the Hartford barge dock for delivery. 

Pasadena Terminal. Pasadena Terminal is located at or near Pasadena, Texas and consists of a five-bay truck rack and tankage with 65,000 barrels
per day of active terminaling capacity, 22 above ground storage tanks with approximately 3.2 million barrels of total storage capacity and a vapor combustion unit. 

  
 1 

 Clifton Ridge Terminal. Clifton Ridge Terminal is located at or near Sulphur, Louisiana and consists
of a single-berth ship dock, 12 above-ground storage tanks with approximately 3.4 million barrels of total storage capacity and a truck offloading facility. 
 Pecan Grove Terminal. Pecan Grove terminal is adjacent to the Clifton Ridge Terminal. The facility consists of a single-berth barge dock and three above-ground storage tanks with 142,000 barrels of
total storage capacity. 

  
 2 

 Exhibit B 
 Maintenance Services 
 Attached to and made a part of that certain Operational Services
Agreement (the “Agreement”), dated                     , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and
Phillips 66 Pipeline LLC 
  

	(a)	Day-to-day routine and emergency supervision, administrative liaison and related services required in connection with the maintenance and repair of the Pipelines and
Terminals. 

  

	(b)	Provision of communications, inspection, surveillance, flow control, corrosion control, and monitoring. 

 

	(c)	Maintenance and repair of the Pipelines and Terminals within such maintenance/repair parameters and specifications as may be in accordance with sound engineering and
maintenance practices and applicable Laws. 

  

	(d)	Implementation of a preventative maintenance program for the Pipelines and Terminals, including, without limitation, periodic testing, adjustment and maintenance of the
Pipelines and Terminals, in each case in accordance with prudent maintenance practices and applicable Laws. 

  

	(e)	Implementation of a tank maintenance and integrity program for the Pipelines and Terminals, including, without limitation, periodic testing, maintenance, repair and/or
replacement in each case in accordance with prudent maintenance practices and applicable Laws. 

  

	(f)	Implementation of a marine facility maintenance and integrity program for the Terminals, including, without limitation, dredging, maintenance, repair, and/or
replacement in each case in accordance with prudent maintenance practices and applicable Laws. 

  

	(g)	Preparation and retention of appropriate records and logs as required by applicable Laws and that a prudent provider of maintenance services would maintain regarding
the Pipelines and Terminals, which records and logs shall be made available to Company upon request. 

  

	(h)	Reconstruction, reconditioning, overhaul or replacement of the Pipelines and Terminals. 

 

	(i)	Establishment of safety, health, environmental, training, emergency response, spill response and other programs in connection with the maintenance and repair of the
Pipelines and Terminals, in each case as may be required by prudent maintenance practices or under applicable Laws. 

  

	(j)	Providing technical services for purposes of trouble-shooting problems, improving Pipeline and Terminal performance, upgrading the Pipelines and Terminals, repairing
the Pipelines and Terminals or meeting regulatory or safety requirements. 

  
 3 

	(k)	Maintaining compliance with all applicable federal, state and local environmental, health and safety Laws; in addition, conducting all environmental investigation and
remediation activities, as required by federal, state and local environmental Laws and/or prudent business practices. 

  

	(l)	Facilitate the acquisition of all materials (including spare parts inventories), equipment, services, supplies and labor necessary for the maintenance and repair of the
Pipelines and Terminals. 

  

	(m)	Perform all planning, design and engineering functions related to the maintenance and repair of the Pipelines and Terminals; selecting contractors and material
suppliers for such activities. 

  

	(n)	Advise Company of major plans or significant changes in the maintenance or repair of the Pipelines and Terminals. 

 

	(o)	Close Pipeline valves in connection with a response to any emergency affecting the Pipelines. The Pipelines shall remain down until such time that it is determined safe
by Company (in consultation with Operator) to resume operation. For normal scheduled maintenance, Operator will provide Company with sufficient advance Notice for Company’s planning purposes. 

 

	(p)	Prepare excavation plans for Pipeline right-of-way work, and advise Company of any right-of-way work which could threaten the integrity of the Pipelines.

  

	(q)	Such other Pipeline and Terminal maintenance, repair and related services as Company may request from time to time. 

 

	(r)	The Maintenance Services to be performed by Operator hereunder shall include, but shall not be limited to, Pipeline repairs, Terminal repairs, aerial pipeline patrols,
population density counts, right-of-way maintenance, gas leakage surveys, pipeline pigging operations, cathodic protection work as required by all governmental regulatory agencies, tank cleaning, tank repair and truck rack maintenance. Operator will
maintain suitable meter station, valve inspection and meter proving maintenance programs. Any operating or maintenance deficiencies so discovered in the Pipelines or Terminals, or any appurtenances thereto, will be corrected by Operator. Operator
will provide inspectors for monitoring work performed by others in the vicinity of the Pipelines and Terminals. 

  

	(s)	Right-of-Way maintenance shall include, but not be limited to, filling of washes, mowing weeds and brush, and repair fences. In all cases where Company’s Pipelines
are exposed above the ground, fences, barricades or other suitable protection shall be erected to protect the Pipelines and associated equipment from damage due to mowers, trucks or other vehicles. In the event that any known excavation is to be
performed in the vicinity of Company’s Pipelines by Operator or third parties, Operator shall locate, flag and identify the pertinent lines. Operator shall also provide a qualified inspector on-site during periods of construction activity. If a
Company Pipeline should be damaged, a prompt report shall be forwarded to Company describing the incident, extent of damage, and recommended course of action. 

  
 4 

 Exhibit C 
 Operating Services 
 Attached to and made a part of that certain Operational Services
Agreement (the “Agreement”), dated                     , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and
Phillips 66 Pipeline LLC 
  

	(a)	Day-to-day routine and emergency supervision of the operation of the Pipelines and Terminals. 

 

	(b)	Operation of the Pipelines and Terminals’ pump stations and other facilities within such operating parameters and specifications as may be in accordance with sound
engineering and operating practices and applicable Laws. 

  

	(c)	Preparation and retention of appropriate records and logs as required by applicable Laws and that a prudent provider of operating services would maintain regarding the
Pipelines and Terminals, which records and logs shall be made available to Company upon request. 

  

	(d)	Operator shall perform monitoring and control services (SCADA) for the Pipelines. Operator shall be responsible for the maintenance of the Pipeline meter station
equipment required for performance of monitoring and control services, product analysis, and custody transfer measurements in accordance with Company requirements and/or generally accepted industry practices. 

 

	(e)	Operator shall conduct the actual operations and maintenance of the Pipelines and Terminals in accordance with the directions for product and feedstock movements given
by Company, and shall employ such of its own or outside personnel as may be necessary to perform this operation and maintenance. 

  

	(f)	Determine net volume received and delivered by utilizing measurement facilities comprised of components of standard make, installed, operated and maintained in
accordance with the latest edition of the American Petroleum Institute Manual of Petroleum Measurement Standards and standard industry practices, and reconcile book inventory with actual inventory. 

 

	(g)	Payment of damages in accordance with Section 2.06 of the Agreement occurring as a result of, or settlement of, claims made in connection with the Pipelines and
Terminals and Operator’s operation, maintenance and repair activities. 

  

	(h)	Operator shall include the operation of the Pipeline meter stations including calibration of measurement and product analysis equipment, operation of booster pumps,
providing custody measurement as required by Company and the coordination of product and feedstock movements as directed by Company. Operator will provide sufficient on-the-job and outside training to its employees and contractors operating and
maintaining the Pipelines and Terminals for the operation thereof in a safe and efficient manner in accordance with applicable Operator and governmental rules and regulations and Laws. Operator shall prepare, file and renew, as applicable, all
operating licenses and/or permits as directed by Company. Operator shall also be responsible for arranging for payment of any fees in regard to operation of the Pipelines and Terminals. 

  
 1 

	(i)	Operator will close Pipeline valves in connection with a response to any emergency involving the Pipelines. The Pipelines shall remain down until such time as it is
deemed safe by Company (in consultation with Operator) to resume operation. 

  

	(j)	Such other operating services as Company may request from time to time. 

  
 2 

 Exhibit D 
 Administrative Services 
 Attached to and made a part of that certain Operational Services
Agreement (the “Agreement”), dated                     , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and
Phillips 66 Pipeline LLC 
  

	(a)	As directed by Company, preparation, filing and renewal, as applicable, of tariffs with FERC and/or state agencies. 

 

	(b)	As directed by Company, preparation and filing of permits, permit updates, and other documents required by any regulatory body or government agency, federal, state or
local, if any, having jurisdiction over Operator, Company or their respective businesses. 

  

	(c)	Maintain fixed asset records of the Pipelines, Terminals and/or other regulated pipeline systems or terminals that Operator may operate upon request by Company and
acceptance by Operator. 

  

	(d)	Product quality and assurance. 

  

	(e)	Such other administrative services as Company may request from time to time. 

  
 1 

 Exhibit E 
 Construction Services 
 Attached to and made a part of that certain Operational Services
Agreement (the “Agreement”), dated                     , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and
Phillips 66 Pipeline LLC 
  

	(a)	Construction, reconstruction, reconditioning, overhaul and replacement of Pipelines and Terminals and their related facilities. 

 

	(b)	Provide such oversight and management services as may be necessary in connection with the activities described in item (a) above. 

 

	(c)	Perform all planning, design and engineering functions related to the activities described in item (a) above as may be necessary. 

 

	(d)	Facilitate the acquisition of all materials, equipment, services, supplies and labor necessary for and related to the activities described in item (a) above.

  

	(e)	Prepare and/or assist in the preparation of capital project (AFE) documents for approval by Company. 

  
 1 

 Exhibit F 
 Accounting Procedures 
 Attached to and made a part of that certain Operational Services
Agreement (the “Agreement”), dated                     , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and
Phillips 66 Pipeline LLC 
 This Exhibit shall govern the Accounting Procedures with regard to the billing and/or reimbursement
of costs incurred by Operator in connection with the performance by Operator of the Services pursuant to the Agreement. These Accounting Procedures shall be effective from the date hereof until replaced or modified by mutual agreement of the
Parties. 
 1. General Provisions 
  

	(a)	Statements and Billings. Operator shall record Company’s financial transactions resulting from this Agreement in Operator’s financial system and
allow Company to access its records in that system. 

  

	(b)	Payments by Company. Company shall pay all charges from Operator in accordance with Section 3.05 of the Agreement. 

 

	(c)	Adjustments. Except as otherwise provided in the Agreement, the actual payment of any such bills shall not prejudice the right of Company to protest or
question the correctness or appropriateness thereof; provided, however, that all bills and statements rendered to Company during any calendar Year shall conclusively be presumed to be true and correct after twenty-four (24) Months
following the end of any such calendar Year, unless prior to the end of said twenty-four (24) Month period Company takes written exception thereto and makes a claim against Operator for adjustment. 

 

	(d)	Financial Records. Operator shall maintain accurate books and records in accordance with GAAP (as may be modified by FERC requirements) and in accordance
with the prescribed accounting requirements or system of accounts mandated by any regulatory body or government agency, both federal and state, if any, having jurisdiction over Operator, Company, or their respective businesses.

 2. Determination of Costs, Expenses and Expenditures. Subject to the limitations and determinations hereinafter
prescribed and the provisions of the Agreement, Operator shall be reimbursed for all costs, expenses, expenditures and fees by or on behalf of Operator in connection with the provision of the Services. Such reimbursement shall include any necessary
Direct Costs (as defined in Paragraph 3 below) and the applicable portion of the Management Fee (as defined in the Omnibus Agreement). 
  

	(a)	 It is the intent of the Parties that Services provided by employees of Operator shall be budgeted and billed by Operator on a Direct Cost basis
pursuant to Section 3.03(a) to the extent that is feasible to measure and account for the Services directly provided by such employees to Operator by means of time sheets or other methods approved by Company. Direct Costs billed to Company
shall normally include field operation and maintenance personnel, administrative personnel supporting Company on a full time or near full time 

  
 1 

	 	
basis, and Home Office personnel (such as engineering and drafting personnel) typically assigned directly to Company-related projects whose time is accounted for by time sheets or other methods
approved by Company. 

  

	(b)	It is the intent of the Parties that routine, ongoing Services (Home Office Overhead, General and Administrative Costs (hereinafter “G&A Costs”))
benefiting Company that are not feasible to measure and account for on a Direct Cost basis shall be billed by Operator as part of the Operational and Administrative Services Fee under the Omnibus Agreement. 

 

	(c)	It is the intent of the Parties that any G&A Cost associated with Company capital projects be billed as a Direct Cost and submitted as a line item on capital
appropriations submitted by Operator to Company for approval. Such G&A Costs shall not be included in the Operational and Administrative Services Fee under the Omnibus Agreement. 

 

	(d)	Operator reserves the right to submit for Company review and approval unusual G&A Costs that do not fit normal business billing patterns. Such costs might be for
items that in Operator’s judgment are outside the scope of the Administrative Fee work such as engineering and drafting. (An example of this might be Operator’s attorney devoting several weeks exclusively to Company to handle a Company
related issue.) 

 3. Direct Costs. Reimbursement of Operator shall include, but shall not be limited to, the right to
reimbursement for the following Direct Costs: 
  

	(a)	Labor and Benefits. 

  

	 	(i)	Salaries and wages of Operator’s employees (or employees of Operator’s Affiliate) directly assigned to the operation, maintenance, project work, or other work
relating to Company’s Pipelines and Terminals, including that portion of such employees’ time related to ancillary activities such as training required by Operator, and in any other activities required of Operator pursuant to the
Agreement. 

  

	 	(ii)	Operator’s costs of all payroll taxes, and benefits and allowances and any other payment paid or contributed by Operator which is measured by Operator’s
employees’ compensation; the above to include without limitation F.I.C.A., Operator’s costs of holiday, vacation, sickness and disability and other customary allowances, Operator’s current costs of established plans for
employees’ group life insurance, hospitalization, retirement, stock purchase, and other benefit plans of a like nature. Such costs will be charged on a percentage assessment rate on the amount of salaries and wages chargeable to Company under
Paragraph 3(a)(i) above. The percentage assessment rate shall be based on Operator’s actual cost experience. Company payment to Operator for Operator’s workers’ compensation insurance premium is provided for in Paragraph 3(h)
below and not in this Paragraph 3(a)(ii). 

  
 2 

	(b)	Plant, Property and Equipment. The cost of plant, property and equipment purchased, leased or rented from suppliers and vendors expressly for the purpose
of providing Services to Company under the Agreement. 

  

	(c)	Materials, Supplies, Tools and Miscellaneous Equipment. Any materials, supplies, tools and miscellaneous equipment purchased or furnished by Operator for
the benefit of Company shall be priced at cost. Equipment provided by Company warehouse shall be priced at replacement value. For equipment or materials that are transported to a location by Operator for the benefit of Company, any costs or expenses
incurred by Operator in connection therewith shall be reimbursed at cost. Operator shall make reasonable efforts to ensure costs for such materials, supplies, tools and miscellaneous equipment are compatible with industry norms.

  

	(d)	Reimbursable Expenses of Employees. Operator shall bill Company for reasonable personal expenses of its (or its Affiliates’) employees whose
salaries, wages and labor costs are chargeable under Paragraph 3(a)(i) above. Such reasonable personal expense shall include out-of-pocket expenditures incurred by employees in the performance of their duties on behalf of Company and which were
reimbursed under the terms of Operator’s official policy governing reimbursable employee expenses. 

  

	(e)	Autos, Trucks and Heavy Mobile Work Equipment. All automotive, truck and other mobile equipment shall be charged on a direct charge basis that is
consistent with Operators practices in charging such costs to its own facilities. When a driver or operator is furnished with any such equipment, the rental rate of such equipment shall not include wages and expenses of the driver or operator if
they will be charged separately. 

  

	(f)	Permits, Licenses and Bond. Cost of permits, licenses and bond premiums necessary to perform and provide Services for the Pipelines and Terminals.

  

	(g)	Outside Services. The cost of outside services and expertise, including but not limited to engineering, fees from consultants on regulatory matters,
provided that the outside services rendered were for the benefit of Company under the Agreement, including the cost of contract services required or necessary in the opinion of Operator in connection with the provision of the Services. Operator
shall make reasonable efforts to ensure costs for such services are competitive with industry norms. 

  

	(h)	Insurance. Workers’ compensation insurance premiums paid or allocated as respects Operator’s employees performing Services under this Agreement,
not to exceed state manual rates for such insurance on a guaranteed cost basis and charged as an amount per $100 of payroll. 

  

	(i)	Utilities, Communication and Power. All costs incurred by Operator on behalf of Company for utility, communication and power services, plus fuel costs.

  

	(j)	Maintenance and Repair. All costs incurred to maintain the Pipelines and Terminals and related facilities, periodically inspect the Pipelines and
Terminals for damages or other conditions that could affect the safe, efficient and economical operation of the Pipelines and Terminals, and perform such repairs to the Pipelines and Terminals as may be required. 

  
 3 

	(k)	Legal Expenses and Claims. (i) All costs and expenses, net of insurance proceeds, of handling, investigating and settling litigation or Claims
arising by reason of the provision of the Services, or necessary to protect or recover any of Company’s property, including, but not limited to, attorneys fees, court costs, cost of investigation or procuring evidence and any judgments paid or
amounts paid in settlement or satisfaction of any such litigation or claims. (Note: a “baseload” level of in-house legal assistance for Company is provided and is included by Operator in the Operational and Administrative Services Fee
under the Omnibus Agreement.) 

  

	(l)	Damages and Losses to Pipelines and Terminals. To the extent not covered by insurance, all costs or expenses necessary for the repair or replacement of
the Pipelines and Terminals made necessary because of damages or losses incurred by fire, floods, earthquake, storm, theft, chemicals spills, accident, or other cause, except those costs or expenses which Operator is liable for pursuant to
Article VI of the Agreement to which this Exhibit is attached. Operator shall furnish Company Notice of damages or losses incurred as soon as practicable after a report thereof has been received. 

 

	(m)	Right-of-Way Costs. The costs of rights-of-way and land purchases, damages and appraisals, and legal, regulatory and permit fees specifically related
thereto. 

  

	(n)	Taxes. All Taxes of every kind and nature assessed or levied upon or incurred in connection with the Pipelines and Terminals that have been paid by
Operator for the benefit of Company, including any charges or penalties for late payment thereof, provided such late charge or fee did not arise from Operator’s gross negligence of willful misconduct in the filing and payment of the appropriate
Tax. 

  

	(o)	Regulatory Costs. The cost of complying with mandated regulatory programs, including, but not limited to, DOT operator qualification training.

  

	(p)	Other Expenditures. Any other expenditure not covered or dealt with in the foregoing provisions of Paragraphs 3(a) through (o), and that is incurred by
Operator in the necessary and proper conduct of the Services, and that may be captured and billed to Company on a Direct Cost basis. 

  
 4 

 Exhibit G 
 Arbitration Procedure 
 Attached to and made a part of that certain Operational Services
Agreement (the “Agreement”), dated                     , by and among Phillips 66 Carrier LLC, Phillips 66 Partners Holdings LLC and
Phillips 66 Pipeline LLC 
 Either Party may initiate dispute resolution procedures by sending a Notice to the other Party specifically
stating the complaining Party’s Claim and by initiating binding arbitration in accordance with the Center for Public Resources Rules for Non-Administered Arbitration of Business Disputes, by three arbitrators who shall be neutral, independent,
and generally knowledgeable about the type of transaction which gave rise to the dispute. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. §§ 1-16, provided that the arbitrators shall
include in their report/award a list of findings, with supporting evidentiary references, upon which they have relied in making their decision. Judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction
thereof. The place of arbitration shall be Houston, Texas. 
 Notwithstanding anything herein and regardless of any procedures or rules
of the Center for Public Resources, it is expressly agreed that the following shall apply and control over any other provision in this Agreement: 
  

	(a)	All offers, conduct, views, opinions and statements made in the course of negotiation or mediation by any of the Parties, their employees, agents, experts, attorneys
and representatives, and by any mediator, are confidential, made for compromise and settlement, protected from disclosure under Federal and State Rules of Evidence and Procedure, and inadmissible and not discoverable for any purpose, including
impeachment, in litigation or legal proceedings between the Parties, and shall not be disclosed to any Person who is not an agent, employee, expert or representative of the Parties, provided that evidence otherwise discoverable or admissible
is not excluded from discovery or admission as a result of presentation or use in mediation. 

  

	(b)	Except to the extent that the Parties may agree upon selection of one or more arbitrators, the Center for Public Resources shall select arbitrators from a panel
reviewed by the Parties. The Parties shall be entitled to exercise peremptory strikes against one-third of the panel and may challenge other candidates for lack of neutrality or lack of qualifications. Challenges shall be resolved in accordance with
Center for Public Resource rules. 

  

	(c)	The Parties shall have at least 20 Days following the close of hearing within which to submit a brief (not to exceed 18 pages in length) and ten Days from date of
receipt of the opponent’s brief within which to respond thereto. 

  

	(d)	The Parties expressly agree that the arbitrators shall not award punitive damages, consequential damages, or attorneys’ fees (except attorneys’ fees
specifically authorized by the Agreement). 

  
 5 

	(e)	The fees and expenses of any mediator or arbitrator shall be shared equally by the Parties. 

 

	(f)	The Parties may, by written agreement (signed by both Parties), alter any time deadline or location(s) for meetings. 

Time is of the essence for purposes of the provisions of this Exhibit. 

  
 6EX-10.11

 Exhibit 10.11 

 
  
 TAX SHARING AGREEMENT 
 by and among 

PHILLIPS 66 
 and 
 PHILLIPS 66 PARTNERS LP 

, 2013 
  

 

 TAX SHARING AGREEMENT 

BY AND AMONG 

PHILLIPS 66 AND 
 PHILLIPS 66 PARTNERS LP 
 Tax Sharing Agreement (the
“Agreement”), dated this [            ] day of [            ], 2013, by and among PHILLIPS 66, a Delaware corporation
(“Phillips 66”), and PHILLIPS 66 PARTNERS LP, a Delaware limited partnership (the “Partnership”). 

RECITALS 

WHEREAS, Phillips 66 is the common parent of an affiliated group of corporations within the meaning of Section 1504(a) of the Code
(as defined below), which currently files a consolidated federal income tax return; 
 WHEREAS, the Partnership Group (as
defined below) includes various entities that may be required to join with Phillips 66 in the filing of a consolidated, combined or unitary state tax return; 
 WHEREAS, the Parties wish to set forth the general principles under which they will allocate and share various Taxes (as defined below) and related liabilities; 

WHEREAS, Phillips 66, on behalf of itself and its present and future subsidiaries other than the Partnership Group (“Phillips 66
Group”), and the Partnership, on behalf of itself and its present and future subsidiaries (the “Partnership Group”), are entering into this Agreement to provide for the allocation among the Phillips 66 Group and the Partnership Group
of all responsibilities, liabilities and benefits relating to any Tax for which a Combined Return (as defined herein) is filed for a taxable period including or beginning on or after the Effective Date (as defined herein) and to provide for certain
other matters; 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions, and covenants contained in this
Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 

Section 1.01 Definitions. The following terms shall have the following meanings (such meanings to be equally applicable to both
the singular and the plural forms of the terms defined): 
 “Accounting Referee” is defined in
Section 6.11 herein. 
 “Code” means the Internal Revenue Code of 1986, as amended, or any
successor thereto, as in effect for the taxable period in question. 

 “Combined Group” means a group of corporations or other entities that files
a Combined Return. 
 “Combined Return” means any Tax Return (other than a Tax Return for Federal income taxes)
filed on a consolidated, combined (including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination), or unitary basis that includes activities of any member of the Phillips 66
Group and any member of the Partnership Group. 
 “Effective Date” means the date of the closing of the initial
public offering of common units representing limited partner interests of the Partnership. 
 “Final
Determination” means the final resolution of any Tax (or other matter) for a taxable period, including related interest or penalties, that, under applicable law, is not subject to further appeal, review or modification through proceedings
or otherwise, including (i) by the expiration of a statute of limitations or a period for the filing of claims for refunds, amending Tax Returns, appealing from adverse determinations, or recovering any refund (including by offset),
(ii) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable, (iii) by a closing agreement, an accepted offer in compromise, or a comparable agreement under laws of the
particular Tax Authority, (iv) by execution of a form under the laws of a Tax Authority that is comparable to an Internal Revenue Service Form 870 or 870-AD (or any successor forms thereto) (excluding, however, with respect to a particular Tax
Item for a particular taxable period any such form that reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund and/or the right of the Tax Authority to assert a further deficiency with respect to
such Tax Item for such period) or (v) by any allowance of a refund or credit, but only after the expiration of all periods during which such refund may be adjusted. 
 “Notice” is defined in Section 6.01 herein. 

“Partnership Group” is defined in the Recitals to this Agreement. 

“Partnership Group Combined Tax Liability” means, with respect to any Tax, the Partnership Group’s liability for
such Tax owed with respect to a Combined Return for a taxable period, as determined under Section 3.02 of this Agreement. 
 “Partnership Group Deposit” is defined in Section 3.04 herein. 
 “Partnership Group Members” means those entities included in the Partnership Group. 
 “Partnership Group Pro Forma Combined Return” means a pro forma Combined Return or other schedule prepared pursuant to Section 3.02 of this Agreement. 

“Party” means each of Phillips 66 and the Partnership, and solely for purposes of this definition, “Phillips
66” includes the Phillips 66 Group and the “Partnership” includes the Partnership Group. Each of Phillips 66 and the Partnership shall cause the Phillips 66 Group and the Partnership Group, respectively, to comply with this Agreement.

 “Phillips 66 Group” is defined in the Recitals to this Agreement.

 “Tax” or “Taxes” means all forms of taxation, whenever created or imposed, and whether
imposed by a domestic, local, municipal, governmental, state, federation or other body, but excluding taxes imposed by the United States, and without limiting the generality of the foregoing, shall include net income, alternative or add-on minimum,
gross income, sales, use, ad valorem, gross receipts, value added, franchise, profits, license, transfer, recording, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profit, custom duty, or other
tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any related interest, penalties, or other additions to tax, or additional amounts imposed by any such Tax Authority. 

“Tax Attribute” means a Tax Item of a member of the Partnership Group reflected on a Combined Return that is comparable
to one or more of the following attributes with respect to a Federal income tax consolidated tax return: a net operating loss, a net capital loss, an unused investment credit, an unused foreign tax credit, an excess charitable contribution, a U.S.
federal minimum tax credit or a U.S. federal general business credit (but not tax basis or earnings and profits). 

“Tax Authority” means a domestic governmental authority (other than the United States) or any subdivision, agency,
commission or authority thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (excluding the U.S. Internal Revenue Service). 

“Tax Controversy” means any audit, examination, dispute, suit, action, litigation or other judicial or administrative
proceeding initiated by Phillips 66 or the Partnership or any Tax Authority. 
 “Tax Item” means any item of
income, gain, loss, deduction or credit, or other item reflected on a Tax Return or any Tax Attribute. 
 “Tax
Return” means any return, report, certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, amended Tax Return, claim for refund or
declaration of estimated tax) required to be supplied to, or filed with, a Tax Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating
to any Tax. 
 Any term used but not capitalized herein that is defined in the Code or in the Treasury Regulations thereunder
or, where relevant, in applicable state or local statutes or regulations shall, to the extent required by the context of the provision at issue, have the meaning assigned to it in the Code, Treasury Regulations or such state or local statute or
regulation. 

 ARTICLE II 
 PREPARATION AND FILING OF TAX RETURNS 
 Section 2.01 Manner of
Filing. 
 (a) For periods that include the Effective Date and periods after the Effective Date, Phillips 66 shall have the
sole and exclusive responsibility for the preparation and filing of, and shall prepare and file, all Combined Returns or cause to be prepared and filed all Combined Returns. Phillips 66 shall be authorized to take any and all action necessary or
incidental to the preparation and filing of a Combined Return, including, without limitation, (i) making elections and adopting accounting methods, (ii) filing all extensions of time, including extensions of time for payment of tax,
(iii) filing claims for refund or credit or (iv) giving waivers or bonds. 
 (b) For periods that include the
Effective Date and periods after the Effective Date, the Partnership Group shall have the sole and exclusive responsibility for the preparation and filing of, and shall prepare and file or cause to be prepared and filed, all Tax Returns of the
Partnership Group Members that are not Combined Returns. 
 (c) Phillips 66 shall have sole discretion to include, or cause to
be included, in a Combined Return for any Tax any member of the Partnership Group for which inclusion in such Combined Return is elective; provided, however, that the Partnership Group Combined Tax Liability for any period shall not exceed the
aggregate of (x) each such elective Partnership Group Member’s liability for such Tax for such period, computed as if such Partnership Group Member were not included in such Combined Return and (y) the Partnership Group Combined Tax
Liability calculated for the Partnership Group Members for which inclusion is not elective. Phillips 66 shall provide pro forma Tax Returns pursuant to Section 3.03 of this Agreement to support the calculation of the amount of any
decrease in the Partnership Group Combined Tax Liability pursuant to this Section 2.01(c). 
 Section 2.02
Franchise Tax Taxable Period. References to “taxable period” for any franchise or other doing business Tax shall mean the taxable period during which the income, operations, assets or capital comprising the base of such Tax is
measured, regardless of whether the right to do business for another taxable period is obtained by the payment of such franchise Tax. 
 ARTICLE III 
 ALLOCATION OF TAXES 

Section 3.01 Liability of the Partnership Group for Combined Taxes. For each Tax for each taxable period that includes or begins
on or after the Effective Date and for which a Combined Return is filed, the Partnership Group Members included in such Combined Return shall be liable to Phillips 66 for an amount equal to the Partnership Group Combined Tax Liability in respect of
such Tax. 

 Section 3.02 Partnership Group Combined Tax Liability. With respect to each Tax for
each taxable period that includes or begins on or after the Effective Date and for which a member of the Partnership Group is included in a Combined Return, the Partnership Group Combined Tax Liability for such Tax for such taxable period shall be
the Tax for such taxable period as determined on a Partnership Group Pro Forma Combined Return prepared: 
 (a) by including only
the Tax Items of the members of the Partnership Group that are included in the Combined Return and computing the liability of the Partnership Group Members for such Tax as if such Partnership Group Members were included in a separate consolidated or
unitary group; 
 (b) except as provided in Section 3.02(e) hereof, using all elections, accounting methods and
conventions appropriate for the includable Partnership Group Members as a stand-alone taxpayer for such period; 
 (c) applying
the Tax rate in effect for the Combined Return of the Combined Group for such taxable period; 
 (d) assuming that the
Partnership Group elects not to carry back any net operating losses; and 
 (e) assuming that the Partnership Group’s
utilization of any Tax Attribute carryforward or carryback is limited to the Tax Attributes of the Partnership Group that would be available if the Partnership Group Combined Tax Liability for each taxable period ending after the Effective Date were
determined in accordance with this Section 3.02. 
 Section 3.03 Preparation and Delivery of Pro Forma Tax
Returns. Not later than 90 days following the date on which a Combined Return is filed with the appropriate Tax Authority, Phillips 66 shall prepare and deliver to the Partnership the related Partnership Group Pro Forma Combined Return
calculating the Partnership Group Combined Tax Liability attributable to the period covered by such filed Combined Return. 

Section 3.04 Payment of Tax. Phillips 66 shall timely pay (or shall cause to be timely paid) any Tax reflected on a Combined
Return and hold harmless the Partnership for all liability for such Tax. In the event Phillips 66 is required to make an estimated payment or deposit of any Tax of any Combined Group which includes any member of the Partnership Group, Phillips 66
shall calculate the portion, if any, of such estimated payment or deposit attributable to the Partnership Group using a methodology similar to that described in Section 3.02 (the “Partnership Group Deposit”) and shall present
such calculation to the Partnership. Within 5 days thereafter, the Partnership shall pay the Partnership Group Deposit to Phillips 66. Within 30 days after delivery by Phillips 66 of a Partnership Group Pro Forma Combined Return to the Partnership
calculating the Partnership Group Combined Tax Liability with respect to a Combined Return, the Partnership shall pay to Phillips 66 such Partnership Group Combined Tax Liability less the amount of any Partnership Group Deposit relating to the same
Combined Return. 
 Section 3.05 Subsequent Changes in Treatment of Tax Items. With respect to any Combined Return for
any taxable period beginning on or after the Effective Date, in the event of a change in the treatment of any Tax Item of any member of a Combined Group as a result of a Final Determination, within 30 days following such Final Determination
(i) Phillips 66 shall 

 
calculate the change, if any, to the Partnership Group Combined Tax Liability resulting from such change, (ii) Phillips 66 shall pay any decrease in the Partnership Group Combined Tax
Liability to the Partnership and (iii) the Partnership shall pay any increase in the Partnership Group Combined Tax Liability to Phillips 66. 
 ARTICLE IV 
 CONTROL OF TAX PROCEEDINGS; COOPERATION AND EXCHANGE OF
INFORMATION 
 Section 4.01 Control of Proceedings. Except as provided in this Article IV, Phillips 66
shall have full responsibility and discretion in handling, settling or contesting any Tax Controversy involving a Tax Return for which it has filing responsibility under this Agreement as well as any Tax Controversy attributable to a Tax Return for
any taxable period ending before the Effective Date. The Partnership shall have full responsibility and discretion in handling, settling or contesting any Tax Controversy involving a Tax Return for which it has filing responsibility under this
Agreement. Except as otherwise provided in this Article IV, any costs incurred in handling, settling or contesting any Tax Controversy shall be borne by the Party having full responsibility and discretion thereof. 

Section 4.02 Cooperation and Exchange of Information. 
 (a) Each Party shall cooperate fully at such time and to the extent reasonably requested by any other Party in connection with the preparation and filing of any Tax Return or claim for refund, or the
conduct of any audit, dispute, proceeding, suit or action concerning any issues or other matters considered in this Agreement. Such cooperation shall include, without limitation, the following: (i) the retention and provision on demand of Tax
Returns, books, records (including those concerning ownership and Tax basis of property which a Party may possess), documentation or other information relating to the Tax Returns, including accompanying schedules, related workpapers, and documents
relating to rulings or other determinations by Taxing Authorities, until the expiration of the applicable statute of limitations (giving effect to any extension, waiver or mitigation thereof); (ii) the provision of additional information,
including an explanation of material provided under clause (i) of this Section 4.02(a), to the extent such information is necessary or reasonably helpful in connection with the foregoing; (iii) the execution of any document
that may be necessary or reasonably helpful in connection with the filing of a Tax Return by Phillips 66, the Partnership or of their respective subsidiaries, or in connection with any audit, dispute, proceeding, suit or action and (iv) such
Party’s commercially reasonable efforts to obtain any documentation from a governmental authority or a third party that may be necessary or reasonably helpful in connection with any of the foregoing. 

(b) Each Party shall make its employees and facilities available on a reasonable and mutually convenient basis in connection with any of
the foregoing matters. 
 (c) If any Party fails to provide any information requested pursuant to Section 4.02 hereof
within a reasonable period, as determined in good faith by the Party requesting the information, then the requesting Party shall have the right to engage a public accounting firm to 

 
gather such information, provided that 30 days’ prior written notice is given to the unresponsive Party. If the unresponsive Party fails to provide the requested information within 30 days
of receipt of such notice, then such unresponsive Party shall permit the requesting Party’s public accounting firm full access to all appropriate records or other information as reasonably necessary to comply with this Section 4.02
and shall reimburse the requesting Party or pay directly all costs connected with the requesting Party’s engagement of the public accounting firm. 
 ARTICLE V 
 WARRANTIES AND REPRESENTATIONS; PAYMENT OBLIGATIONS

 Section 5.01 Warranties and Representations Relating to Actions of Phillips 66 and the Partnership. Each of
Phillips 66 and the Partnership warrants and represents to the other that: 
 (a) in the case of Phillips 66, it is a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power to carry out the transactions contemplated by this Agreement; 

(b) in the case of the Partnership, it is a limited partnership duly organized, validly existing and in good standing under the laws of
the State of Delaware and has all requisite power to carry out the transactions contemplated by this Agreement; 
 (c) it has
duly and validly taken all action necessary to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby; 
 (d) this Agreement has been duly executed and delivered by it and constitutes its legal, valid and binding obligation enforceable in accordance with its terms subject, as to the enforcement of remedies,
to (i) applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’ rights generally from time to time in effect and (ii) to general principles of equity, whether
enforcement is sought in a proceeding at law or in equity and 
 (e) the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby, or the compliance with any of the provisions of this Agreement will not (i) conflict with or result in a breach of any provision of its certificate of incorporation, by-laws, certificate of
limited partnership, limited partnership agreement or other organizational or governing documents, (ii) breach, violate or result in a default under any of the terms of any agreement or other instrument or obligation to which it is a party or
by which it or any of its properties or assets may be bound, or (iii) violate any order, writ, injunction, decree, statute, rule or regulation applicable to it or affecting any of its properties or assets. 

Section 5.02 Calculation of Payment Obligations. Except as otherwise provided under this Agreement, to the extent that the payor
Party has a payment obligation to the payee Party pursuant to this Agreement, the payee Party shall provide the payor Party with its calculation of the amount of such obligation. The documentation of such calculation shall provide sufficient detail
to permit the payor Party to reasonably understand the calculation. All payment 

 
obligations shall be made to the payee Party or to the appropriate Tax Authority as specified by the payee Party within 30 days after delivery by the payee Party to the payor Party of written
notice of a payment obligation. Any disputes with respect to payment obligations shall be resolved in accordance with Section 6.11 below. 
 Section 5.03 Prompt Performance. All actions required to be taken by any Party under this Agreement shall be performed within the time prescribed for performance in this Agreement, or if no period
is prescribed, such actions shall be performed promptly. 
 Section 5.04 Interest. Payments pursuant to this Agreement
that are not made within the period prescribed therefor in this Agreement shall bear interest (compounded daily) from and including the date immediately following the last date of such period through and including the date of payment at a rate equal
to the Federal short-term rate or rates established pursuant to Section 6621 of the Code for the period during which such payment is due but unpaid. 
 Section 5.05 Tax Records. The Parties to this Agreement hereby agree to retain and provide on proper demand by any Tax Authority (subject to any applicable privileges) the books, records,
documentation and other information relating to any Tax Return until the later of (a) the expiration of the applicable statute of limitations (giving effect to any extension, waiver or mitigation thereof), (b) the date specified in an
applicable records retention agreement entered into with a Tax Authority, (c) a Final Determination made with respect to such Tax Return and (d) the final resolution of any claim made under this Agreement for which such information is
relevant. 
 Section 5.06 Continuing Covenants. Each Party agrees (1) not to take any action reasonably expected to
result in a new or changed Tax Item that is detrimental to any other Party and (2) to take any action reasonably requested by any other Party that would reasonably be expected to result in a new or changed Tax Item that produces a benefit or
avoids a detriment to such other Party; provided that such action does not result in any additional cost not fully compensated for by the requesting Party. The Parties hereby acknowledge that the preceding sentence is not intended to limit, and
therefore shall not apply to, the rights of the Parties with respect to matters otherwise covered by this Agreement. 

ARTICLE VI 

MISCELLANEOUS PROVISIONS 
 Section 6.01 Notice. Any notice, demand, claim, or other communication required or permitted to be given under this Agreement (a “Notice”) shall be in writing and may be personally served
provided a receipt is obtained therefor, or may be sent by certified mail return receipt requested postage prepaid, to the Parties at the following addresses (or at such other address as one Party may specify by notice to any other Party):

 Phillips 66 at: Phillips 66 

    3010 Briarpark Dr. 

    Houston, Texas 77042 

    Attention: General Counsel 

Partnership at: Phillips 66 Partners LP 

    c/o Phillips 66 Partners GP LLC 

    3010 Briarpark Dr. 

    Houston, Texas 77042 

    Attention: President 
 A Notice which is delivered personally shall be deemed given as of the date specified on the written receipt therefor. A Notice mailed as provided herein shall be deemed given on the third business day
following the date so mailed. Notification of a change of address may be given by any Party to another in the manner provided in this Section 6.01 for providing a Notice. 

Section 6.02 Required Payments. Unless otherwise provided in this Agreement, any payment of Tax required shall be due within 30
days of a Final Determination of the amount of such Tax. 
 Section 6.03 Injunctions. The Parties acknowledge that
irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The Parties hereto shall be entitled to an injunction or injunctions to
prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or
in equity. 
 Section 6.04 Further Assurances. Subject to the provisions hereof, the Parties hereto shall make, execute,
acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the transactions contemplated hereby. Subject to the
provisions hereof, each of the Parties shall, in connection with entering into this Agreement, perform its obligations hereunder and take any and all actions relating hereto, comply with all applicable laws, regulations, orders, and decrees, obtain
all required consents and approvals and make all required filings with any governmental agency, other regulatory or administrative agency, commission or similar authority and promptly provide the other Parties with all such information as such
Parties may reasonably request in order to be able to comply with the provisions of this sentence. 
 Section 6.05 Parties in
Interest. Except as herein otherwise specifically provided, nothing in this Agreement expressed or implied is intended to confer any right or benefit upon any person, firm or corporation other than the Parties and their respective successors and
permitted assigns. 
 Section 6.06 Setoff. Except as provided by Section 2.01(c) of this Agreement, all
payments to be made under this Agreement shall be made without setoff, counterclaim or withholding, all of which are expressly waived. 

 Section 6.07 Change of Law. If, due to any change in applicable law or regulations or
the interpretation thereof by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction contemplated hereby shall become impracticable or
impossible, the Parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision. 

Section 6.08 Termination and Survival. Notwithstanding anything in this Agreement to the contrary, this Agreement shall remain in
effect and its provisions shall survive for the full period of all applicable statutes of limitation (giving effect to any extension, waiver or mitigation thereof) or until otherwise agreed to in writing by Phillips 66 and the Partnership, or their
respective successors and permitted assigns. 
 Section 6.09 Amendments; No Waivers. 

(a) Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the
case of an amendment, by Phillips 66 and the Partnership, or in the case of a waiver, by the Party against whom the waiver is to be effective. 
 (b) No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. 
 Section 6.10 Governing Law and
Interpretation. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware applicable to agreements made and to be performed in the State of Delaware. 

Section 6.11 Resolution of Certain Disputes. Any disagreement between the Parties with respect to any matter that is the subject
of this Agreement, including, without limitation, any disagreement with respect to any calculation or other determinations by Phillips 66 hereunder, which is not resolved by mutual agreement of the Parties, shall be resolved by a nationally
recognized independent accounting firm chosen by and mutually acceptable to the Parties hereto (an “Accounting Referee”). Such Accounting Referee shall be chosen by the Parties within 15 business days from the date on which one Party
serves written notice on another Party requesting the appointment of an Accounting Referee, provided that such notice specifically describes the calculations to be considered and resolved by the Accounting Referee. In the event the Parties cannot
agree on the selection of an Accounting Referee, then the Accounting Referee shall be any office or branch of the public accounting firm of [            ]. The Accounting Referee shall
resolve any such disagreements as specified in the notice within 30 days of appointment; provided, however, that no Party shall be required to deliver any document or take any other action pursuant to this Section 6.11 if it determines
that such action would result in the waiver of any legal privilege or any detriment to its business. Any resolution of an issue submitted to the Accounting Referee shall be final and binding on the Parties hereto without further recourse. The
Parties shall share the costs and fees of the Accounting Referee equally. 

 Section 6.12 Confidentiality. Except to the extent required to protect a Party’s
interests in a Tax Controversy, each Party shall hold and shall cause its consultants and advisors to hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by other
requirements of law, all information (other than any such information relating solely to the business or affairs of such Party) concerning another Party or its representatives pursuant to this Agreement (except to the extent that such information
can be shown to have been (i) previously known by the Party to which it was furnished, (ii) in the public domain through no fault of such Party or (iii) later lawfully acquired from other sources by the Party to which it was
furnished), and each Party shall not release or disclose such information to any other person, except its auditors, attorneys, financial advisors, bankers and other consultants and advisors who shall be advised of the provisions of this Agreement.
Each Party shall be deemed to have satisfied its obligation to hold confidential information concerning or supplied by another Party if it exercises the same care as it takes to preserve confidentiality for its own similar information. 

Section 6.13 Costs, Expenses and Attorneys’ Fees. Except as expressly set forth in this Agreement, each Party shall bear its
own costs and expenses incurred pursuant to this Agreement. In the event a Party to this Agreement brings an action or proceeding for the breach or enforcement of this Agreement, the prevailing party in such action, proceeding, or appeal, whether or
not such action, proceeding or appeal proceeds to final judgment, shall be entitled to recover as an element of its costs, and not as damages, such reasonable attorneys’ fees as may be awarded in the action, proceeding or appeal in addition to
whatever other relief the prevailing party may be entitled. For purposes of this Section 6.13, the “prevailing party” shall be the Party who is entitled to recover its costs; a Party not entitled to recover its costs shall not
recover attorneys’ fees. No sum for attorneys’ fees shall be counted in calculating the amount of the judgment for purposes of determining whether a Party is entitled to recover its costs or attorneys’ fees. 

Section 6.14 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one and the same instrument. 
 Section 6.15 Severability. The
Parties hereby agree that, if any provision of this Agreement should be adjudicated to be invalid or unenforceable, such provision shall be deemed deleted herefrom with respect, and only with respect, to the operation of such provision in the
particular jurisdiction in which such adjudication was made, and only to the extent of the invalidity, and any such invalidity or unenforceability in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction. All other remaining provisions of this Agreement shall remain in full force and effect for the particular jurisdiction and all other jurisdictions. 
 Section 6.16 Entire Agreement. 
 (a) This Agreement contains the entire
agreement between the Parties with respect to the subject matter hereof and supersedes all other agreements, whether or not written, in respect of any Tax between the Phillips 66 Group and the Partnership Group. 

 (b) In the event of any conflict or inconsistency between the provisions of this Agreement
and the provisions of any other agreement between the Phillips 66 Group and the Partnership Group the provisions of this Agreement shall take precedence and to such extent shall be deemed to supersede such conflicting provisions under the other
agreement. 
 Section 6.17 Assignment. This Agreement is being entered into by Phillips 66 and the Partnership on behalf
of themselves and each member of the Phillips 66 Group and the Partnership Group. This Agreement shall constitute a direct obligation of each such member and shall be deemed to have been readopted and affirmed on behalf of any entity that becomes a
member of the Phillips 66 Group or the Partnership Group in the future. Each of Phillips 66 and the Partnership hereby guarantee the performance of all actions, agreements and obligations provided for under this Agreement of each member of the
Phillips 66 Group and the Partnership Group, respectively. Each of Phillips 66 and the Partnership shall, upon the written request of the other, cause any of their respective group members to formally execute this Agreement. This Agreement shall be
binding upon, and shall inure to the benefit of, the successors, assigns and persons controlling any of the entities bound hereby for so long as such successors, assigns or controlling persons are members of the Phillips 66 Group or the Partnership
Group or their successors and assigns. 
 Section 6.18 Fair Meaning. This Agreement shall be construed in accordance with
its fair meaning and shall not be construed strictly against the drafter. 
 Section 6.19 Titles and Headings. Titles and
headings to sections herein are inserted for the convenience of reference only and are not intended to be a part or to affect the meaning or interpretation of this Agreement. 
 Section 6.20 Construction. In this Agreement, unless the context otherwise requires the terms “herein,” “hereof,” and “hereunder” refer to this Agreement. 

 IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement as of the
day and year first above written. 
  

			
	PHILLIPS 66
		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	
	
	PHILLIPS 66 PARTNERS LP
	
	 By: Phillips 66 Partners GP LLC, its general partner

		
	 By:
	 	 
	 Name:
	 	
	 Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]