Document:

Exhibit

    

Exhibit 10.59

Marathon Petroleum  
Annual Cash Bonus (“ACB”) Program

Effective January 1, 2018

        

Preamble

This program document explains the Annual Cash Bonus Program (the “Program”) of Marathon Petroleum Corporation.  

The Program is a sub-plan operating under the Amended and Restated Marathon Petroleum Corporation 2012 Incentive Compensation Plan (the “Plan”), and any successor shareholder-approved omnibus equity plan, which are hereby incorporated into this document by reference.  All Awards under the Program are granted pursuant to Section 7 of the Plan (or applicable provisions of any other Plan).  Capitalized terms not specifically defined herein have the meanings specified in the Plan.  In the event of any conflict between the Program and the Plan, the terms of the Plan shall control.  

Program Objectives

The purpose of the Program is to motivate and reward Eligible Employees for achieving short-term (annual) business objectives that drive overall shareholder value while encouraging responsible risk taking and accountability. 

Definitions

As used in the Program, the following terms shall have the meanings set forth below:

		
	a.
	“Affiliate” means, any person or entity controlling, controlled by, or under common control with such person.

		
	b.
	“Award” means a Stock Award, a Cash Award or an award of Incentive Stock Options, Non-qualified Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Unit Award, or Cash Award granted to a Participant pursuant to the provisions of the Plan, any of which the Committee or its delegate may structure to qualify in whole or in part as a Performance Award.

		
	c.
	“Board” means the Board of Directors of Marathon Petroleum Corporation.

		
	d.
	“Change in Control” means a transaction of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Corporation is then subject to such reporting requirement; provided that, without limitation, such a Change in Control shall be deemed to have occurred if: 

		
	(i)
	any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) (a “Person”) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation (not including the amount of the securities 

Page 1 of 14

beneficially owned by such person, any such securities acquired directly from the Corporation or its Affiliates) representing twenty percent (20%) or more of the combined voting power of the Corporation’s then outstanding voting securities; provided, however, that for purposes of this Plan the term “Person” shall not include (A) the Corporation or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its subsidiaries, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) a corporation owned, directly or indirectly, by the stockholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation; and provided, further, however, that for purposes of this paragraph (i), there shall be excluded any Person(s) who become(s) such a beneficial owner in connection with an Excluded Transaction (as defined in paragraph (iii) below); or 

		
	(ii)
	the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest including, but not limited to, a consent solicitation, relating to the election of directors of the Corporation) whose appointment or election by the Board or nomination for election by the Corporation’s stockholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or 

		
	(iii)
	there is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary thereof with any other corporation, other than a merger or consolidation (an “Excluded Transaction”) which would result in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving corporation or any parent thereof) at least 50% of the combined voting power of the voting securities of the entity surviving the merger or consolidation (or the parent of such surviving entity) immediately after such merger or consolidation, 

		
	(iv)
	or the shareholders of the Corporation approve a plan of complete liquidation of the Corporation; or there is consummated the sale or other disposition of all or substantially all of the Corporation’s assets; or 

		
	(v)
	A Change in Control shall not be deemed to occur if the Company undergoes a bankruptcy, liquidation, or reorganization under the United States Bankruptcy Code. 

Notwithstanding the preceding provisions, to the extent an Award provides for the payment of deferred compensation within the meaning of Section 409A of the Code, 

Page 2 of 14

the events constituting a Change in Control shall have the meaning and are intended to be events constituting a change in ownership or a change in effective control for purposes of Section 409A of the Code.

		
	e.
	“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rulings and regulations issued thereunder.

		
	f.
	“Committee” means the Committee delegated by the Board with the authority to administer the Plan.  To the extent the Committee has delegated authority to any person(s) or committee(s) pursuant to Section 6 (or other applicable section) of the Plan, a reference to the Committee herein may also include such person(s) or committee(s).  However, in no event shall the Committee delegate its authority with respect to the compensation of any Participant deemed to be an “executive officer” as defined in Rule 3b-7 promulgated under the Securities Exchange Act of 1934, as amended.  

		
	g.
	“Company” means 

		
	•
	Marathon Petroleum Company Canada, Ltd,

		
	•
	Marathon Petroleum Company LP,

		
	•
	Marathon Petroleum Corporation,

		
	•
	Marathon Petroleum Services LLC,

		
	•
	Marathon Petroleum Logistics Services LLC, 

		
	•
	Marathon Petroleum Service Company, 

		
	•
	Speedway LLC, and

		
	•
	any other subsidiaries or controlled company of the above, as applicable.

All of the above entities are collectively referred to as “Company” or “Marathon Petroleum” for purposes of this document.
 
		
	h.
	“Eligible Employees” means regular full-time and regular part-time Company employees who on the last day of the last pay period completed for the Performance Period are assigned to a salary grade within the Company salary structure. Employees who are eligible for other annual incentive compensation programs (e.g., a trader bonus program) are not eligible for the Annual Cash Bonus Program. However, eligibility for employees of Speedway LLC is limited to those classified as President during the Performance Period. Eligible Employees may also include employees of other companies selected by the Committee and select employees of an Affiliate as approved by the Committee. 

		
	i.
	“Eligible Wages” for non-Officer employees include: 

		
	(i)
	base wages paid for time worked and wages deferred during the Performance Period, and 

		
	(ii)
	overtime wages paid during the Performance Period.  

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Eligible Wages for non-Officer employees exclude non-cash compensation, equity-based compensation, allowances, reimbursements, premiums and any bonus or recognition payments made.  They also exclude wages paid or processed by a third party.  Eligible wages are the amounts specified above before (i) deductions for taxes or benefits, and (ii) deferrals of compensation pursuant to any Company or Affiliate-sponsored plan.

Eligible Wages for employees designated as Officers shall be equal to their annualized base salary in effect on the last day of the Performance Period.  However, Eligible Wages for Officers who retire, are hired or who die during the Performance Period shall be equal to their actual base wages paid plus any compensation deferred during the Performance Period.

In the event of a Change in Control, Eligible Wages shall be the actual wages paid during the Performance Period, as of the date of Change in Control, for all employees.

		
	j.
	“Performance Period” means any fiscal year or such other measurement period determined by the Committee or its delegate in their sole discretion.

 
		
	k.
	“Performance Criteria” shall mean any one or more of the following performance criteria that are in the Plan and were approved by shareholders (or other performance criteria approved by shareholders in the Plan), either individually, alternatively, or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary or Affiliate, either individually, alternatively or in any combination, and measured either quarterly, annually, or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group, in each case as specified by the Committee or its delegate: (i) revenue, (ii) income measures (which include revenue, gross margin, income from operations, net income, net sales, earnings per share, earnings before interest,  depreciation, taxes, and amortization (“EBIDTA”), earnings before interest, taxes and amortization (“EBITA”) and earnings before interest and taxes (“EBIT), and economic value added, (iii)  expense measures (which include costs of goods sold, selling, finding and development costs, general and administrative expenses, and overhead costs), (iv) operating measures (which include refinery throughput, mechanical availability, productivity, operating income, funds from operations, product quality, cash from operations, after-tax operating income, market share, margin, and sales volumes), (v) margins (which include crack-spread measures), (vi) refined product measures, (vii) cash management and cash flow measures (which include net cash flow from operating activities, working capital, receivables management and related customer terms), (vii) liquidity measures (which include earnings before or after the effect of certain items such as interest, taxes, depreciation and amortization, improvement in or attainment of working capital levels, and free cash flow (viii) leverage measures (which include debt-to-equity ratio, debt reduction and net debt), (ix) market measures (which include market share, 

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stock price, growth measure, total shareholders return, share price performance,  return on equity, return on invested capital and return on assets, and market capitalization measures), (x) return measures (which include return on equity, return on assets, and return on invested capital), (xi) corporate value and sustainability measures (which include compliance, safety, environmental, and personnel matters), (xii) project completion measures (which may include measures regarding whether interim milestones regarding budgets and deadlines are met, as well as whether projects are completed on time and on or under budget), and (xii) other measures such as those relating to acquisitions, dispositions, or customer satisfaction.

Participants and Target Funding

The Committee shall establish in writing (1) the Eligible Employees who will be Participants in the Program, (2) each Participant's target funding percentage for such Performance Period or the formula for determining each Participant's Award and (3) the applicable performance objective or objectives for such Performance Period which will be based on the Performance Criteria.  Each Participant’s funding range will have a threshold of 0% and a maximum of two times (2X) their target funding percentage.

Threshold funding for individual metrics is one-half (.5X) of target and the maximum that can be funded is two times (2X) target. Percentages may be rounded.  No metric will fund when results are below threshold performance.

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Funding ranges for Participants shall be based on grade:

	
			
	Participant Classification
	Target
	Award Range

	Exempt Grades

	Above  
Grade 19
	Per the Committee
	Per the
Committee

	Grade 19
	55%
	0% - 110%

	Grade 18
	50%
	0% - 100%

	Grade 17
	40%
	0% - 80%

	Grade 16
	35%
	0% - 70%

	Grade 15
	30%
	0% - 60%

	Grade 14
	25%
	0% - 50%

	Grade 13
	20%
	0% - 40%

	Grade 12
	15%
	0% - 30%

	Grade 11
	12%
	0% - 24%

	Grade 10
	12%
	0% - 24%

	Grade 9
	10%
	0% - 20%

	Grade 8
	10%
	0% - 20%

	Grade 7 or Below
	10%
	0% - 20%

	Non-Exempt Grades

	All
	7%
	0% - 14%

Performance Metrics

The Committee, or its delegate, will establish performance metrics with threshold, target and maximum performance criteria.  All performance criteria approved by the Committee are incorporated into the Program document by this reference for the applicable Performance Period.    

When any final performance metric result falls between threshold and target or between target and maximum performance levels, linear interpolation will be used to determine funding based on actual performance.  For example, if the final result of a metric is halfway between threshold and target performance levels, the funding for that metric would be halfway between the corresponding payout percentages.

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Individual Funding vs. Payout

The operation of this Program funds individual payments based on pre-established metrics and subjective metrics as approved by the Committee.  The final payout to each Participant is determined based on the assessment of their management considering each Participant’s relative performance to other employees.   However, no Participant can be awarded more than their maximum percent as specified in the funding ranges table in “Participants and Target Funding” above without approval of the Committee or its delegate.

Hires, Promotions and Transfers

In the case of a newly hired, promoted, or transferred Participant, the Committee may provide for a guaranteed bonus, or a bonus that would exceed the bonus that would otherwise be payable in the Program.

Participants who change from one eligible position to another during the Performance Period may experience a change to their Program target funding, individual objectives or the formula for determining each Participant’s Award. In this situation, funding shall be based on the associated target level and business unit for the position held by the Participant on the last day of the Performance Period, provided the position held is not temporary.  

If a Participant transfers to a position that is not eligible (e.g., a casual position) under the Program during the Performance Period, such Participant will be ineligible for any payout under this Program for such Performance Period; provided, however, that if a Participant transfers to a Speedway position that is not eligible under the Program during the Performance Period, such Participant will remain eligible for an Award based on their Eligible Wages paid while a Participant under the Program.

Temporary Assignments 

Eligibility and funding targets for employees who are on a temporary assignment on the last day of the last pay period completed for the Performance Period shall be determined based on their regular assignment.  

Exclusions and Adjustments

The Committee or its delegate may (A) adjust the actual performance or performance goals (either up or down) and the level of the Performance Award that a Participant may earn under the Program if it determines that the occurrence of external changes or other unanticipated business conditions have materially affected the fairness of the goals and/or have unduly influenced the Company’s ability to meet them, including, without 

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limitation, events such as material acquisitions, asset write-downs, litigation, claims, judgments or settlements, force majeure events, unlawful acts committed against the Company or its property (including terrorism), labor disputes, legal mandates, accruals for reorganization and restructuring programs and changes in the capital structure of the Company, the effect of changes in tax law or other such laws or provisions affecting reported results, accruals of any amounts for payment under the Program or any other compensation arrangement maintained by the Company, or other events not contemplated at the time the goals are set.  In addition, Performance Goals and Performance Awards shall be calculated without regard to any changes in accounting standards or codifications that may be required by the Financial Accounting Standards Board or other standards board or the effect of changes in tax law or other such laws or provisions affecting reported results after such Performance Goals are established.

Approval by Committee

Unless otherwise determined by the Committee, no payments shall be made hereunder in respect of any Performance Period unless the Committee shall approve following the end of the Performance Period that the performance objectives applicable to the Performance Period have been satisfied.

Termination of Employment

Unless otherwise determined by the Committee and except as may otherwise be provided in a Participant's written agreement with the Company or an Affiliate, if a Participant's employment terminates for any reason prior to payment, such Participant shall not be eligible for an Award under the Program, unless the Participant's employment terminates on account of death, Retirement or Severance.

Where a Participant’s employment terminates on account of Retirement or Severance, the  Committee will retain the discretion to determine the Award,  and payment of the Award will (i) only be made after the end of the Performance Period and as close as practicable to the same time as all other Award payments for such Performance Period, but in no event later than the last day of the calendar year beginning immediately after the Performance Period, and (ii) only be paid to the extent that the performance criteria were achieved. 

Any employee who terminates employment for any reason during a Performance Period, other than as a result of Retirement or Severance, and who is subsequently rehired after the Performance Period completes, will not be eligible for payment under the Program for such wages earned during the Performance Period.  

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Retirement

Any Participant whose employment terminates on account of Retirement on or after July 1 of a Performance Period shall remain eligible for an Award under the Program, based on his or her Eligible Wages paid during the Performance Period, at the discretion of the Committee.  A Participant is considered to have had a “Retirement” if the Participant, at the time of the Participant’s termination of employment: 

		
	a.
	is at least age 50 with 10 or more years of accredited service; and

		
	b.
	is deemed to be in good standing, as determined in the sole discretion of the Committee

Severance
 

“Severance” means the involuntary termination of a Participant’s employment during a Performance Period pursuant to which the Participant becomes eligible for a termination allowance under the Company’s Termination Allowance Plan.  However, any Participant who voluntarily requests termination under the Company’s Termination Allowance Plan is not considered to be an Eligible Employee under the Program.

In addition, Participants who would have otherwise been eligible for the Marathon Petroleum Termination Allowance Plan, but who accepted an offer of employment with: 

		
	a.
	the “buyer” of sold Company assets, or

		
	b.
	the “new operator” of a jointly-owned facility, or

		
	c.
	a company that has been contracted to perform services being outsourced. 

will remain eligible for consideration of an Award provided the termination date is after June 30th of the Performance Period. 

Death of Participant

If the death of a Participant occurs:

		
	a.
	during a Performance Period, the Participant’s eligibility for the Program will end and a payment will be made to the Participant’s estate as soon as practicable following death, but in all cases no later than the last day of the calendar year beginning immediately after the Performance Period.  The payment shall be based on target performance levels for all metrics and the Participant’s Eligible Wages paid during the Performance Period; or

		
	b.
	after a Performance Period, but before payment for that Performance Period has been made, the Award amount otherwise deemed payable under the Program will be paid to the Participant’s estate (at the time all other Award payments for such Performance Period are made).

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Payment of Awards

Following the Performance Period, each Participant's Award for the Performance Period will be determined in accordance with the terms of the Program and the Participant shall be eligible to receive payment of the Award.  The payment of the Award shall occur during the first calendar year beginning immediately after the end of the Performance Period.

The Committee shall determine whether payment of the Award will be in Cash, Common Stock, the right to receive Common Stock, Stock Options or other Awards provided for under the Plan; and whether any such payments will be subject to restrictions on transfer, vesting, forfeiture or deferral requirements; provided, however, that if an Award is subject to Section 409A of the Code, any such action shall only be taken if it complies with Section 409A of the Code. Any equity or equity-based Awards shall be granted under the terms and conditions of the Plan.

Change in Control

Unless otherwise determined by the Committee prior to a Change in Control, and except as otherwise may be provided in a Participant’s written agreement with the Company or Affiliate upon a Change in Control, the Program will automatically terminate and each Participant employed by the Company immediately prior to the Change in Control will be vested and entitled to a pro-rated lump sum payment equal to 100% of the Participant’s target bonus percentage multiplied by the Participant’s  Eligible Wages.  This payment will be made as soon as administratively practicable following the Change in Control, but in no event later than 45 days from the date of the Change in Control.  The timing of the payment within such 45-day period shall be determined solely by the Committee without regard to any tax implications to a Participant.

No Right to Awards

Except as may be provided for under the Change in Control section of the Program, no Participant or other person shall have any claim or right to be granted an Award under the Program.  Nothing contained in the Program document shall limit the ability of the Company to make payments or Awards to Participants under any other program, agreement or arrangement; provided, however, that no payment under any other program, agreement, or arrangement will be made because of a failure of a Participant to earn an Award hereunder, and no such payment outside of the Program will be in the nature of or in any way related to make-whole payments for what would have been earned or paid hereunder if the performance goals had been met.

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No Right to Employment

Neither the establishment of the Program, nor any action taken hereunder, shall be construed as giving any Participant any right to be retained in the employ of the Company, or participate hereunder in the current or succeeding Performance Periods.

Non-Transferability

The rights and benefits of a Participant hereunder are personal to the Participant and, except for any payments that may be made following a Participant's death, shall not be subject to any voluntary or involuntary alienation, assignment, pledge, transfer, encumbrance, attachment, garnishment or other disposition.

No Impact on Benefits 

Except as may be required by law or otherwise be specifically stated under any employee benefit plan, policy, or program, no amount payable in respect of any Award shall be treated as compensation for purposes of calculating a Participant's right under any such plan, policy, or program; nor shall any Award be treated as compensation for purposes of termination indemnities or other similar rights, except as may be required by law.

No Constraint on Corporate Actions 
    
Nothing in the Program document shall be construed (a) to limit, impair, or otherwise affect the Company's right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets, or (b) to limit the right or power of the Company or any of its Affiliates to take any action which such entity deems to be necessary or appropriate.

Program Administration

The program shall be administered by the Committee, which shall have full authority to:

		
	a.
	interpret the Program,

		
	b.
	establish, interpret, amend or revoke rules and regulations relating to the operation of the Program,

		
	c.
	interpret the Program, to correct any defect, supply any omission or reconcile any inconsistency in the Program,

		
	d.
	adopt such rules for the administration, interpretation and application of the Program, and

		
	e.
	make all determination and take all other actions necessary or appropriate for the proper administration of the Program.

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The Committee has complete, unilateral discretion with respect to all aspects of the operation, administration, design, features, benefits and Awards under the Program and can change, terminate, or modify Awards, or otherwise change any aspect of the Program in its discretion prospectively or retroactively, regardless of anything stated in this document.

The Committee may delegate any or all of their authorities hereunder, provided that the Committee shall, in no event, delegate its authority with respect to the compensation of any Participant deemed to be an “executive officer” as defined in Rule 3b-7 under the Securities Exchange Act of 1934.  No member of the Committee shall be eligible to participate in the Program.

Taxes

For U.S.-based Participants, any Award received under the Program is subject to all applicable employment withholding taxes in the year paid.  For Participants outside the United States, local country tax regulations will apply.

Deductions

There shall be deducted from all individual payouts any taxes required to be withheld by national, Federal, state provincial or local governments and paid over to such government for the accounts of such Participants.

Subject to compliance with Section 409A of the Code and applicable state withholding laws, the Company may also deduct from an individual Award, at its sole discretion, any and all amounts determined by Company management to be owed to the Company by the Participant.

Affiliate Requirements

Prior to the selection of employees of an Affiliate to participate in the Program, the Committee may require the Affiliate to consent to the participation of such employee or employees in the Program and to the charging of such Affiliate with the amount of any Award which may be made to such employee or employees.

Recoupment / Clawback

Officers are subject to recoupment provisions in the Program, in the case of certain forfeiture events. If the Company is required, pursuant to a determination made by the SEC or the Audit Committee of the Board, to prepare a material accounting restatement 

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due to the noncompliance of the Company with any financial reporting requirement under applicable securities laws as a result of misconduct, the Audit Committee of the Board may determine that a forfeiture event has occurred based on an assessment of whether an officer knowingly engaged in misconduct, was grossly negligent with respect to misconduct, knowingly failed or was grossly negligent in failing to prevent misconduct or engaged in fraud, embezzlement, or other similar misconduct materially detrimental to the Company.

Upon the Audit Committee’s determination that forfeiture event has occurred, the Company has the right to request and receive reimbursement of any portion of an officer’s bonus from the Program that would not have been earned or paid had the forfeiture event not have taken place. 

These recoupment provisions are in addition to the requirements in Section 304 of the Sarbanes-Oxley Act of 2002 which provide that the CEO and CFO shall reimburse the Company for any bonus or other incentive-based or equity-based compensation as well as any related profits received in the 12-month period prior to the filing of an accounting restatement due to non-compliance with financial reporting requirements as a result of Company misconduct.

Notwithstanding the foregoing or any other provision of this Program to the contrary, the Company may also require that the Participant repay to the Company any compensation paid to the Participant under this Program, as is required by the provisions of the Dodd-Frank Act and the regulations thereunder or any other “clawback” provisions as required by law or by the applicable listing standards of the exchange on which the Corporation’s common stock is listed for trading.  

Other Provisions

In all events, whether any Cash Award is paid to a Participant will depend on the decision of the Committee (or its delegate, as appropriate).  All Awards are subject to the sole discretion of the Committee or its delegate, and nothing in this document (except as may be provided for in the Change in Control provisions) or any other document describing or referring to the Program shall confer any right whatsoever on any person to be considered for any Award.

The program document does not purport to be complete and is subject to and governed by actions, rules and regulations of the Committee (or its delegate, as appropriate).

The Program document may be changed or discontinued at any time without notice or liability at the sole discretion of the Committee.  

Awards shall be subject to and governed by the specific terms and conditions of the Plan, and any applicable Award.
 

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Nothing contained herein shall require the Company to segregate any monies from its general fund or to create any trusts, or to make any special deposits for amounts payable to any Participant.

The Program is intended to provide compensation which is exempt from or which complies with Section 409A of the Code, and ambiguous provisions of the Program, if any, shall be construed in a manner that would cause Awards to be compliant with or exempt from the application of Section 409A of the Code, as appropriate. If any payment, or portion thereof, must be delayed to comply with Section 409A of the Code because a Participant is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code, the payment, or the portion so delayed, shall be made on the soonest date permissible without triggering the additional tax due under Section 409A of the Code. As used in the Program, “termination of Employment” and similar terms shall mean a “separation from service” within the meaning of Section 409A of the Code to the extent an Award provides for the payment of deferred compensation within the meaning of Section 409A of the Code.

No member of the Committee, or employee of the Company or the Corporation, shall be liable for any act done, or determination made in good faith, with respect to the administration of the Program.  The Company indemnifies and holds harmless to the fullest extent allowed by law such persons individually and collectively, from and against any and all losses resulting from liability to which the Committee, or the members of the Committee, or employees of the Company or the Corporation may be subjected by reason of any act or conduct (except willful misconduct, fraud or gross negligence) in their official capacities in the administration of the Program, including all expenses reasonably incurred in their defense, in case the Company fails to provide such defense.
 
Any provision of the Program prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remaining provisions.

The terms of the Program document supersede any written or verbal agreements, representations, proposals, or plans with respect to the subject matter hereof; provided, however, that the forgoing shall not act to supersede an existing written agreement between a Participant and the Company that has been approved by the Committee.  

	
	
	MARATHON PETROLEUM CORPORATION

	 

	/s/ Fiona C. Laird

	Fiona C. Laird

	Chief Human Resources Officer

	November 7, 2018

Page 14 of 14Exhibit

Exhibit 10.75
MARATHON PETROLEUM CORPORATION 
DEFERRED COMPENSATION PLAN 
FOR NON-EMPLOYEE DIRECTORS 
(Amended and Restated effective as of January 1, 2019) 
 
	
		
	1.
	Purpose 

The Marathon Petroleum Corporation Deferred Compensation Plan for Non-Employee Directors (the “Plan”) is intended to enable the Corporation to attract and retain non-employee Directors and to enhance the long-term mutuality of interest between such Directors and shareholders of the Corporation. 
This document contains the provisions of the Plan effective as the effective time of the spin-off of Marathon Petroleum Corporation from Marathon Oil Corporation and thereafter and shall apply to Deferred Cash Accounts and Deferred Stock Accounts, including 409A Benefits and Grandfathered Benefits (as such terms are defined below). In particular, the Plan document shall apply to those stock units and other similar equity awards granted to Participants under the Corporation’s 2011 Incentive Compensation Plan (as amended or amended and restated from time to time), the Corporation’s 2012 Incentive Compensation Plan (as amended or amended and restated from time to time), as well as successor or predecessor arrangements (in each case, with respect to the awards granted thereunder, the “Applicable Equity Plan”), and deferred under this Plan or its predecessor. 
With respect to the 409A Benefits, the Plan is intended to conform to the requirements of Code Section 409A and the regulations thereunder, and, in all respects, shall be administered and construed in accordance with such requirements. With respect to the Grandfathered Benefits, the Plan does not represent a material enhancement of the benefits or rights available under the Marathon Oil Corporation Deferred Compensation Plan for Non-Employee Directors on October 3, 2004, which have subsequently been assumed by this Plan in connection with the spin-off of Marathon Petroleum Corporation from Marathon Oil Corporation.
	
		
	2.
	Definitions 

The following definitions apply to this Plan and to the Deferral Election Forms: 
	
			
	 
	(a)
	409A Benefit means that portion of a Participant’s Deferred Cash Account and Deferred Stock Account that was deferred or became vested after December 31, 2004, with earnings and losses attributable thereto pursuant to Sections 5 and 6. 

	
			
	 
	(b)
	Beneficiary or Beneficiaries means a person or persons or other entity designated on a beneficiary designation form by a Participant as allowed in this Plan to receive Deferred Benefit payments. If there is no valid designation by the Participant, or if the designated Beneficiary or Beneficiaries fail to survive the Participant or otherwise fail to take the Deferred Benefit, the Participant’s Beneficiary is the Participant’s surviving spouse or, if there is no surviving spouse, the Participant’s estate. A Participant may use a beneficiary designation form (in the form and manner acceptable to the Committee) to designate one or more Beneficiaries for all of the Participant’s Deferred Benefit; such designations are revocable. 

	
			
	 
	(c)
	Board means the Board of Directors of the Corporation. 

	 
	(d)
	Code means the Internal Revenue Code of 1986 as amended, including regulations and other guidance of general applicability promulgated thereunder. 

	
			
	 
	(e)
	Code Section 409A means, collectively, Section 409A of the Code and any Treasury and Internal Revenue Service regulations and guidance issued thereunder. 

	
			
	 
	(f)
	Committee means the Corporate Governance and Nominating Committee of the Board or such other committee of the Board as the Board may designate to administer the Plan. In the event the Committee has delegated any authority or responsibility under the Plan in accordance with Section 12, the term “Committee” where used herein shall also refer to the applicable delegate. 

 
	
			
	 
	(g)
	Common Stock means the common stock of the Corporation. 

	
			
	 
	(h)
	Common Stock Unit means a book-entry unit equal in value to a share of Common Stock. A Participant shall be credited with one Common Stock Unit for each stock unit or hypothetical share of Common Stock granted pursuant to a Director Stock Award (or any successor stock incentive arrangement). 

 
	
			
	 
	(i)
	Corporation means Marathon Petroleum Corporation or any successor thereto. 

	
			
	 
	(j)
	Deferral Election Form means a document designated by the Committee for the purpose of allowing a Participant to elect deferrals under Section 3. 

 
	
			
	 
	(k)
	Deferral Year means the calendar year for which a Participant has elected to defer amounts under this Plan. 

 
	
			
	 
	(l)
	Deferred Benefit means a Participant’s Deferred Cash Account and Deferred Stock Account under the Plan. 

 
	
			
	 
	(m)
	Deferred Cash Account means that bookkeeping record established for each Participant to reflect the status of the Participant’s Deferred Cash Benefit under this Plan. A Deferred Cash Account: (i) is established only for purposes of measuring a Deferred Cash Benefit and not to segregate assets or to identify assets that may or must be used to satisfy a Deferred Cash Benefit; (ii) will be credited with that portion of the Participant’s Retainer Fee deferred as a Deferred Cash Benefit according to a Deferral Election Form; and (iii) will be credited periodically with earnings and losses as provided under Section 5. 

	
			
	 
	(n)
	Deferred Cash Benefit means the amount of Retainer Fees deferred by a Participant under Section 3. 

	
			
	 
	(o)
	Deferred Stock Account means that bookkeeping record established for each Participant to reflect the status of the Participant’s Deferred Stock Benefit under this Plan. A Deferred Stock Account is established only for purposes of measuring Common Stock Units and not to segregate assets or to identify assets that may or must be used to satisfy a Deferred Stock Benefit. A Deferred Stock Account will be credited with the Common Stock Units related to Deferred Stock Awards that are awarded to a Participant quarterly, annually or at such other times that awards are made and deferred. A Deferred Stock Account will be credited periodically with additional Common Stock Units that reflect the value of dividends paid on Common Stock pursuant to Section 6. 

	
			
	 
	(p)
	Deferred Stock Benefit means the number of Common Stock Units that are deferred pursuant to Section 3 or Section 6. In addition to the Common Stock Units credited with respect to any Director Stock Award, a Participant’s Deferred Stock Benefit shall also include any Common Stock Units granted in connection with the spin-off of Marathon Petroleum Corporation from Marathon Oil Corporation in substitution for common stock units of Marathon Oil Corporation. 

	
			
	 
	(q)
	Directors means those duly named members of the Board. 

	
			
	 
	(r)
	Director Stock Award means an award of Common Stock Units pursuant to Section 6 of this Plan, as amended from time to time, or, in the discretion of the Committee, any successor or similar stock incentive award. 

	
			
	 
	(s)
	Election Date means the date established by this Plan as the date before which a Participant must submit a valid Deferral Election Form to the Committee. For each Deferral Year, the Election Date is December 31 of the preceding calendar year; provided, however, that the Election Date for newly eligible Directors shall be as provided in Section 3(a). Notwithstanding the foregoing, the Committee may set an earlier date as the Election Date for any Deferral Year. All Election Dates shall be established in conformity with Code Section 409A. 

 
	
			
	 
	(t)
	This subsection is intentionally left blank.

	
			
	 
	(u)
	Grandfathered Benefit means that portion of a Participant’s Deferred Cash Account and Deferred Stock Account that is exempt from Code Section 409A because it was deferred and vested under the Marathon Oil Corporation Deferred Compensation Plan for Non-Employee Directors as of December 31, 2004, as adjusted to reflect any earnings or losses thereto pursuant to Sections 5 and 6, and in the case of Common Stock Units, to reflect the spin-off of Marathon Petroleum Corporation from Marathon Oil Corporation. 

	
			
	 
	(v)
	Participant means a Director who is not simultaneously an employee of the Corporation. 

	
			
	 
	(w)
	Plan means the Marathon Petroleum Corporation Deferred Compensation Plan for Non-Employee Directors. 

	
			
	 
	(x)
	Quarterly Director Award Date means the first business day of the calendar quarter.

	
			
	 
	(y)
	Quarterly Director Stock Award means a quarterly grant of Common Stock Units as provided in Section 6(a) of this Plan.

	
			
	 
	(z)
	Retainer Fee means that portion of a Participant’s compensation that is fixed and paid without regard to the Participant’s attendance at meetings. 

	
			
	 
	(aa)
	Separation from Service shall have the same meaning as set forth under Code Section 409A. 

	
			
	 
	(bb)
	Specified Employee shall have the same meaning as set forth under Code Section 409A and as determined by the Corporation in accordance with its established policy. 

	
		
	3.
	Deferral Election 

A deferral election is valid when a Deferral Election Form is completed, signed by the Participant, and received by the Committee. Deferral elections are governed by the provisions of this section. 

	
			
	 
	(a)
	No later than each Deferral Year’s Election Date, each Participant may submit a Deferral Election Form to defer until after Separation from Service the receipt of any portion up to 100 percent of the Participant’s Retainer Fee for the Deferral Year in the form of a Deferred Cash Benefit. In the event an individual becomes a Director and is first eligible to participate during a Deferral Year, such Director may submit a Deferral Election Form no later than thirty (30) days following the effective date of the individual’s position as a Director, provided that, to the extent required by Code Section 409A, the Retainer Fee subject to the election shall be prorated in accordance with Code Section 409A.

	
			
	 
	(b)
	Common Stock Units awarded pursuant to a Director Stock Award are automatically deferred and accounted for in a Deferred Stock Account and are not subject to any Deferral Election.

	
			
	 
	(c)
	If it does so before the last business day preceding the Deferral Year, the Committee may reject or modify any Deferral Election Form for such Deferral Year and the Committee is not required to state a reason for such action. However, the Committee’s rejection or modification of any Deferral Election Form must be based upon action taken without regard to any vote of the Participant whose Deferral Election Form is under consideration, and the Committee’s rejections or modifications must be made on a uniform basis with respect to similarly situated Participants. If the Committee rejects or modifies a Deferral Election Form, the Participant must be paid the Retainer Fee that the Participant is entitled to receive after taking into account the rejected or modified Deferral Election Form.

	
			
	 
	(d)
	A Participant may not revoke a Deferral Election Form after the Deferral Year begins. Any writing signed by a Participant expressing an intention to revoke the Participant’s Deferral Election Form before the close of business on the relevant Election Date is a revocation. In the event the Retainer Fee is paid in more than one payment during a Deferral Year, a Participant’s deferral may be taken from such Retainer Fee ratably during the applicable Deferral Year or in any other manner determined by the Committee; provided that such deferrals during the Plan year, in the aggregate, reflect the Participant’s deferral election in accordance with Code Section 409A.

	
		
	4.
	Effect of No Election 

For any Participant who does not submit a valid Deferral Election Form to the Committee by the Election Date for a Deferral Year, the Participant’s Deferral Election Form then in effect shall remain effective for the upcoming Deferral Year. Any Participant who does not submit a valid Deferral Election Form by the Election Date and does not have a deferral election then in effect may not defer any part of the Participant’s Retainer Fee for the Deferral Year. 
	
		
	5.
	Deferred Cash Benefits 

	
			
	 
	(a)
	The Deferred Cash Account for each Participant will be credited with deemed investment returns as provided in Section 5(b). Deferred Cash Benefits are credited to the applicable Participant’s Deferred Cash Account as of the day the Retainer Fees would have been paid but for the deferral.

	
			
	 
	(b)
	A Participant may select one or more investment options approved by the Committee for the Participant’s Deferred Cash Benefits, and earnings and loses from such investment options will be credited to the Participant’s Deferred Cash Account at periods determined by the Committee. A Participant may change the investment allocation of the Participant’s Deferred Cash Account at any time.

	
		
	6.
	Deferred Equity Benefits

	
			
	 
	(a)
	Grant of Common Stock Units

i.     Pursuant to paragraph 8 of the Amended and Restated Marathon Petroleum Corporation 2012 Incentive Compensation Plan (the “2012 Plan”), the Board is authorized to grant Director Stock Awards to the Participants (which constitute “Stock Awards” for purposes of the 2012 Plan).  The terms, conditions and limitations applicable to such Director Stock Awards are to be determined by the Board.  Pursuant to Section 12 of this Plan, the Board has delegated its authority to the Committee.
ii.     All Participants shall receive Quarterly Director Stock Awards under this Plan. 
iii.    A Participant who has attained or is expected to attain the applicable mandatory retirement age under the Corporation’s mandatory retirement policy, before the next regularly scheduled annual meeting of the Corporation’s stockholders shall receive a pro-rated Quarterly Director Stock Award for the quarter in which the next regularly scheduled annual meeting of the Corporation’s stockholders will be held.  If this Section 6(a)(iii) applies, the Quarterly Director Stock Award will be pro-rated based on the number of days in the quarter that the Participant shall serve as a Director, including the day on which the annual meeting is held.
iv.     Except as provided in Section 6(a)(iii), each Participant shall be granted a Quarterly Director Stock Award with respect to a number of unvested Common Stock Units, including fractional Common Stock Units, determined by dividing (i) $39,375 by (ii) the Fair Market Value (as defined in the Applicable Equity Plan) of a share of Common Stock on the date of grant.  These grants to all Participants shall automatically be made on the Quarterly Director Award Date under the Applicable Equity Plan under which awards can then be made.
v.     The Common Stock Units granted under this Section 6(a) shall vest in full upon the Participant’s departure from the Board.  Each Participant’s Deferred Stock Account will be credited with the number of Common Stock Units covered by a Quarterly Director Stock Award as of the applicable Quarterly Director Award Date.
	
			
	 
	(b)
	Each Common Stock Unit held in a Deferred Stock Account will increase or decrease in value by the same amount and with the same frequency as the fair market value of a share of Common Stock.

	 
	(c)
	Each Deferred Stock Account will be credited on or about each Common Stock dividend payment date with additional Common Stock Units, including fractional units, in a quantity equal to the quotient of the dividends payable on the quantity of shares equal to the number of Common Stock Units in such account divided by the value of a share of Common Stock on the date of that payment as determined in accordance with the manner established by the Committee from time to time.

	
			
	 
	(d)
	In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering or any other change in the corporate structure, the number and kind of Common Stock Units credited to each Participant’s Deferred Stock Account shall be adjusted accordingly.

	 
	(e)
	Participants who are eligible for a Director Stock Award under this Plan may also receive a portion of their equity compensation in the form of awards of deferred partnership units of MPLX LP under the MPLX LP 2018 Incentive Compensation Plan as determined by the Board of Directors of MPLX GP LLC and subject to the terms and conditions of such MPLX LP plan and any applicable MPLX LP award instruments or policies.

	
		
	 7.
	Distributions 

	
			
	 
	(a)
	A Deferred Cash Benefit must be distributed in cash. A Deferred Stock Benefit must be distributed in shares of Common Stock and such distribution will correspond to, and equal to the number of, the Common Stock Units credited to the Participant’s Deferred Stock Account; provided that cash must be paid in lieu of fractional shares of the Common Stock otherwise distributable.

	
			
	 
	(b)
	Except as otherwise provided in this Section 7, a Participant’s Deferred Benefit shall be paid in a lump sum on the first day of the calendar month following the expiration of 45 days after the Participant’s Separation from Service for any reason other than death.

	
			
	 
	(c)
	In the event of a Participant’s Separation from Service on account of death, the Participant’s Deferred Benefit shall be paid to the Participant’s Beneficiary (or Beneficiaries) in a lump sum in the February of the year following the Participant’s death or if earlier, on the first day of the calendar month following the expiration of 45 days after the Participant’s Separation from Service as described in Section 7(b) (or, in the event of a Separation from Service of a Specified Employee not on account of death, within the 45-day period described in Section 7(d)).

	
			
	 
	(d)
	Distribution of the Deferred Benefit of a Participant who the Committee determines is a Specified Employee (other than the Participant’s Grandfathered Benefit) shall commence within the 45-day period following the first of the month following 6 months after Separation from Service (other than a Separation from Service on account of the death of Participant). In the event of a Separation from Service of a Specified Employee on account of death, payment shall be made pursuant to Section 7(c). Payment of a Specified Employee’s Grandfathered Benefit shall be made pursuant to Section 7(b).

	
		
	 8.
	Corporation’s Obligation 

	
			
	 
	(a)
	The Plan is unfunded. A Deferred Benefit is at all times solely a contractual obligation of the Corporation. A Participant and the Participant’s Beneficiaries have no right, title or interest in the Participant’s Deferred Benefit or any claim against it. Except according to Section 8(b), the Corporation will not segregate any funds or assets for Deferred Benefits nor issue any notes or security for the payment of any Deferred Benefit.

	
			
	 
	(b)
	The Corporation may establish a grantor trust and transfer to that trust shares of the Common Stock or other assets. The governing trust agreement must require a separate account to be established for each electing Participant. The governing trust agreement must also require that all Corporation assets held in trust remain at all times subject to the Corporation’s creditors.

	
		
	9.
	Control by Participant 

A Participant has no control over the Participant’s Deferred Benefit except according to the Participant’s Deferral Election Form, Distribution Election Form, and Beneficiary Designation Form. 
	
		
	10.
	Claims Against Participant’s Deferred Benefit 

A Deferred Benefit relating to a Participant under this Plan is not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any attempt to do so is void. A Deferred Benefit is not subject to attachment or legal process for a Participant’s debts or other obligations. Nothing contained in this Plan gives any Participant any interest, lien or claim against any specific asset of the Corporation. A Participant or the Participant’s Beneficiary has no rights other than as a general creditor. The Plan shall not recognize or give effect to any domestic relations order attempting to alienate, transfer or assign any Deferred Benefits. 
	
		
	11.
	Amendment or Termination 

This Plan may be altered, amended, suspended, or terminated at any time by the Committee, provided that with respect to 409A Benefits such action shall conform to the requirements of Code Section 409A. No future amendment to the Plan shall apply to Grandfathered Benefits to the extent such provision or amendment would constitute a “material modification” within the meaning of Code Section 409A with respect to the Grandfathered Benefits unless such amendment expressly indicates otherwise. 
	
		
	12.
	Administration 

The Committee shall have the full and exclusive power and authority to administer this Plan and to take all actions that are specifically contemplated hereby or are necessary or appropriate in connection with the administration hereof. The Committee shall also have full and exclusive power to interpret this Plan, to adopt such rules, regulations and guidelines for carrying out this Plan as it may deem necessary or proper, and to delegate some or all of its authority or responsibilities under this Plan to any other person or entity. The Committee may correct any defect or supply an omission or reconcile any inconsistency in this Plan in the manner and to the extent the Committee deems necessary or desirable to further the Plan purposes. Any decision of the Committee in the interpretation and administration of this Plan shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned.  The provisions of this Section 12 are subject to the terms of the Applicable Equity Plan.  To the extent any provision of this Plan conflicts with the express terms of the Applicable Equity Plan, the terms of the Applicable Equity Plan shall control and, if necessary, the applicable provisions of this Plan shall be hereby deemed amended so as to carry out the purpose and intent of the Applicable Equity Plan.
	
		
	13.
	Notices 

Notices and elections under this Plan may be in writing or in electronic format. A notice or election is deemed delivered if it is delivered personally or if it is mailed by registered or certified mail or via electronic delivery to the person at the individual’s last known business address or electronic mail address. 

	
		
	14.
	Waiver 

The waiver of a breach of any provision in this Plan does not operate as and may not be construed as a waiver of any later breach. 
	
		
	15.
	Construction 

This Plan is created, adopted, maintained and governed according to the laws of the state of Delaware. Headings and captions are only for convenience; they do not have substantive meaning. If a provision of this Plan is not valid or not enforceable, the validity or enforceability of any other provision is not affected. Use of one gender includes all, and the singular and plural include each other. This Plan is intended to conform to the requirements of Code Section 409A and shall be interpreted accordingly. 
	
		
	16.
	Effective Date 

The original effective date of the Plan is the Distribution Date, as defined in the Separation and Distribution Agreement among Marathon Oil Corporation, Marathon Oil Company and Marathon Petroleum Corporation, dated as of May 25, 2011, as such agreement may be amended.  This Plan was amended and restated effective December 3, 2012 and has been further amended and restated effective January 1, 2019.

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