Document:

exv10w28

 

Exhibit 10.28

MARATHON OIL COMPANY

DEFERRED COMPENSATION PLAN

Effective

January 1, 2006

 

 

Table of Contents

	 	 	 	 	 
	Article I. Definitions
	 	 	1	 
	Article II. Eligibility
	 	 	2	 
	Article III. Deferral of Compensation
	 	 	2	 
	Article IV. Other Contributions
	 	 	2	 
	Article V. Accounting
	 	 	3	 
	Article VI. Vesting
	 	 	3	 
	Article VII. Distribution of Benefits
	 	 	3	 
	Article VIII. Funding
	 	 	4	 
	Article IX. Plan Administration
	 	 	5	 
	Article X. Modification and Discontinuance
	 	 	7	 
	Article XI. General Provisions
	 	 	8	 

 

 

MARATHON OIL COMPANY

DEFERRED COMPENSATION PLAN

This document serves both as the plan instrument and the summary plan description (SPD) that
the Company is required to provide Plan participants. It contains the provisions of the Marathon
Oil Company Deferred Compensation Plan (MOC-DCP) as of January 1, 2006.

Article I. Definitions

	1.1	 	“Account” means an unfunded liability of the Employer in the name of each Participant.
	 
	1.2	 	“Affiliated Company” means any company required to be aggregated with Marathon Oil Company
under IRC Section 414(b), (c), (m) or (o).
	 
	1.3	 	“Beneficiary” means any person(s) designated in writing by a Participant to receive payment
under this MOC-DCP in the event of the Participant’s death. In the event the Participant is
married and has designated no other beneficiary (or if the designated beneficiary has
predeceased the Participant), Beneficiary shall mean the Participant’s spouse. In the event
the Participant is not married at death and has designated no beneficiary (or if the
designated beneficiary has predeceased the Participant), Beneficiary shall mean the
Participant’s estate.
	 
	1.4	 	“Board” means the Board of Directors of the Marathon Oil Company.
	 
	1.5	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	1.6	 	“Company” means Marathon Oil Company, Marathon Service Company and other related entities
that adopt the Plan with the Board’s consent.
	 
	1.7	 	“Compensation” means gross pay as defined in the qualified Marathon Oil Company Thrift Plan
without regard to any IRS limitations.
	 
	1.8	 	“Eligible Employee” means (i) Marathon Oil Corporation Officers in Grade 19 and above and
(ii) employees who were making contributions to the MOC-DCP on August 27, 2003, and have made
contributions on a continual basis since that date , in each instance whose Compensation is
equal to or greater than the amount that is provided in Code section 414(q)(1)(B), as adjusted
annually pursuant to the last paragraph of Code section 414(q)(1).
	 
	1.9	 	“Employee” means any individual employed by the Company.
	 
	1.10	 	“Employer” means Marathon Oil Company, Marathon Service Company and other related entities
that adopt the Plan with the Board’s consent.
	 
	1.11	 	“ERISA” means the Employees Retirement Income Security Act of 1974 as amended.

			
	 	 	 
	MOC Deferred Compensation Plan
	 	1

 

 

	1.12	 	“Nonqualified Plan” or “MOC-DCP” means The Marathon Oil Company Deferred Compensation Plan.
	 
	1.13	 	“Participant” means an Eligible Employee who elects to participate and/or receives
contributions under the MOC-DCP pursuant to Article III or IV of this MOC-DCP.
	 
	1.14	 	“Plan Administrator” means Eileen M. Campbell and any successor as designated by the Company
to administer the Plan.
	 
	1.15	 	“Plan Year” means the 12-consecutive month period beginning each January 1 and ending each
December 31.
	 
	1.16	 	“Retirement” means any termination of employment from Marathon or an Affiliated Company upon
the earlier of attaining age 50 with ten (10) years of vesting service or attaining age 65.
	 
	1.17	 	“Salary Deferral” means the total amount deferred by the Participant from Compensation under
Article III and Article IV.

Article II. Eligibility

Any Marathon Oil Corporation Officer in compensation Grade 19 and above shall be eligible to
participate in this Marathon Oil Company Deferred Compensation Plan (MOC-DCP). Employees who were
making contributions to the Plan on or after August 27, 2003, and who are not MRO officers in
compensation Grade 19 and above, may continue participation, provided contributions to the Plan are
not interrupted and an annual election form is completed each year. If a participant, other than a
Marathon Oil Corporation Officer, elects to discontinue contributions, Plan participation
terminates and they will not be permitted to elect to make future contributions.

Article III. Deferral of Compensation

Each Participant may elect prior to the first day they become eligible to participate in the
Plan, and thereafter, the first day of any Plan Year, to defer up to 20% of their Compensation (in
1% increments). An election to defer compensation shall be effective as of the first day of Plan
participation, or thereafter, the first day of the Plan Year following the election, and shall
remain in effect for the remainder of the Plan Year.

Article IV. Other Contributions

During each year that an employee is eligible to participate in the MOC-DCP, any Thrift Plan
Company match that under the law is excluded from the Thrift Plan would be allocated to the
MOC-DCP. In addition, any Thrift Plan Company match that would otherwise be attributable to the
deferred compensation amounts not covered by the qualified Thrift Plan would be allocated to the
MOC-DCP. The actual MOC-DCP employee elected contributions, however, are not matched by the
Company.

			
	 	 	 
	MOC Deferred Compensation Plan
	 	2

 

 

New hires who are eligible for this Plan and, who, except for the provisions governing the Thrift
Plan’s “waiting period,” would otherwise be eligible to participate in the Thrift Plan are eligible
to receive a Deferred Compensation Plan accrual equal to 6% of gross pay (as defined in the Thrift
Plan) during the Thrift Plan’s waiting period. This accrual is subject to the terms and conditions
of this Plan and shall cease to the extent that upon the first date of participation eligibility in
the Thrift Plan the employee is eligible under the law for Thrift Plan Company matching
contributions.

Article V. Accounting

	5.1	 	Allocation to Participant’s Account
	 
	 	 	The total amount of the deferred compensation shall be credited to the Participant’s
Account, as of the date such amount would otherwise have been paid to such Participant.
	 
	5.2	 	Earnings
	 
	 	 	A Participant may select from a list of investment options that will be the same as the
investment options offered and modified from time to time under the terms of the qualified
Marathon Oil Company Thrift Plan. Earnings, gains and losses received on the investments
will be credited to the Participant’s Account on a daily basis. The Plan Administrator
shall develop such accounting procedures as it, in its sole discretion, deems advisable to
properly reflect the value attributable to the Participant’s Account.

			
	       Note:	 	Effective May 4, 2002 the option to purchase Company stock through the MOC-Deferred Compensation Plan was eliminated.

Article VI. Vesting

A Participant’s elected contributions shall always be immediately vested. Other contributions
as defined under Article IV are vested as currently provided under the terms and conditions of the
Marathon Oil Company Thrift Plan. Irrespective of the preceding, a Participant’s Account shall be
subject to any claims for damages the Company may have due to the Participant’s negligence, willful
misconduct or fraud while in the Company’s employment. In addition, the Participant’s account may
be reduced by any amount resulting from any outstanding receivables, debts, loans or other
obligations owed to the Company.

Article VII. Distribution of Benefits

A Participant shall be entitled to a cash distribution under the MOC-DCP as provided in this
Article VII.

	7.1	 	General Rule
	 
	 	 	Upon termination of employment from MOC or any Affiliated Company for any reason other than
a transfer or retirement, a lump sum distribution is permitted.

			
	 	 	 
	MOC Deferred Compensation Plan
	 	3

 

 

	 	 	Effective for terminations on or after January 1, 2006, with respect to any portion of a
Participant’s Account that was unvested as of December 31, 2004, or was accrued after
December 31, 2004, a Participant may receive a lump sum distribution or annual installments
in accordance with the distribution election procedures established by the Plan
Administrator. If no election is made, the separated Participant’s Account will be paid as
a lump sum distribution.
	 
	7.2	 	Retirement
	 
	 	 	Upon Retirement, a Participant may receive a lump sum distribution or annual installments
over a period not to exceed 10 years. Effective January 1, 2006, if no election is made,
the retired Participant’s Account will be paid in a lump sum distribution.
	 
	7.3	 	Death
	 
	 	 	Upon the death of a Participant, a lump sum distribution is permitted to the Participant’s
beneficiary.
	 
	7.4	 	Class Year System
	 
	 	 	Effective January 1, 2006, the “class year” distribution option is no longer available. For
“class year” elections made prior to January 1, 2006, separate records will be maintained
for each Account according to the Salary Deferrals and investment earnings and losses
attributable to each Plan Year that the individual participates in the Plan. Class Year
payouts shall commence as soon as administratively practicable in the year specified in the
Salary Deferral election.
	 
	7.5	 	Earnings on Unpaid Balances
	 
	 	 	In the event a Participant is entitled to receive a distribution, the Participant’s Account
shall be credited with earnings pursuant to the provisions set forth in Article V.
	 
	7.6	 	Request for Benefits
	 
	 	 	Any person claiming a benefit under the DCP shall present the request to the Plan
Administrator in writing, who shall respond in writing as soon as may be feasible.

Article VIII. Funding

Benefits under this MOC-DCP shall be paid from the general assets of the Company. This
MOC-DCP shall be administered as an unfunded plan which is maintained primarily for the purpose of
providing supplemental retirement compensation “for a select group of management or highly
compensated employees” as set forth in Sections 201(2), 301(3), and 401(a)(1) of the ERISA, and is
not intended to meet the qualification requirements of Section 401 of the Code. Any assets set
aside by the Company for the purpose of paying benefits under this MOC-DCP shall not be deemed to
be the property of the Participant and shall be subject to claims of creditors of the Company. No
Participant or other person shall have any claim against, right to, or security or other interest
in, any fund, account or asset of the Company from which any payment under the MOC-DCP may be made.
Any use of the words “contributions” or “contribute,” or any similar phrase, shall not require
actual contributions or funding of this MOC-DCP and is only used for convenience when describing
the deferral activities of this MOC-DCP.

			
	 	 	 
	MOC Deferred Compensation Plan
	 	4

 

 

Article IX. Plan Administration

	9.1	 	General Duty
	 
	 	 	The Marathon Oil Company Deferred Compensation Plan shall be administered by the Plan
Administrator who shall be appointed by the Company and shall serve in such capacity until
resignation or removal by the Company. It shall be the principal duty of the Plan
Administrator to determine that the provisions of the MOC-DCP are carried out in accordance
with its terms, for the exclusive benefit of persons entitled to participate in the MOC-DCP.
	 
	9.2	 	Plan Administrator’s General Powers, Rights and Duties
	 
	 	 	The Plan Administrator shall have full power to administer the MOC-DCP in all of its
details, subject to the applicable requirements of law. For this purpose, the Plan
Administrator is, as respects the rights and obligations of all parties with an interest in
this MOC-DCP, given the powers, rights and duties specifically stated elsewhere in the
MOC-DCP, or any other document, and in addition is given, but not limited to, the following
powers, rights and duties:

	 	a.	 	to determine all questions arising under the MOC-DCP, including the power to
determine the rights or eligibility of Employees or Participants and any other persons,
and the amounts of their contributions or benefits under the MOC-DCP, to interpret the
MOC-DCP, and to remedy ambiguities, inconsistencies or omissions;
	 
	 	b.	 	to adopt such rules of procedure and regulations, including the establishment
of any claims procedure that may be required by law, as in its opinion may be necessary
for the proper and efficient administration of the MOC-DCP and as are consistent with
the MOC-DCP;
	 
	 	c.	 	to direct payments or distributions from the MOC-DCP in accordance with the
provisions of the MOC-DCP;
	 
	 	d.	 	to develop such information as may be required by it for tax or other purposes
as respects the MOC-DCP; and
	 
	 	e.	 	to employ agents, attorneys, accountants or other persons (who also may be
employed by the Company), and allocate or delegate to them such powers as the Plan
Administrator may consider necessary or advisable to properly carry out the
administration of the MOC-DCP.

	 	 	The Plan Administrator’s decision in any matter involving the interpretation and application
of this MOC-DCP shall be final and binding. In the event the Plan Administrator would have
to decide any issue under the MOC-DCP which could affect the form or timing of the payment
of deferred compensation under the MOC-DCP, then the Company shall make that decision.
	 
	9.3	 	Nondiscriminatory Exercise of Authority

			
	 	 	 
	MOC Deferred Compensation Plan
	 	5

 

 

	 	 	 	Any discretionary acts taken under this Plan by the Plan Administrator shall be uniform in
their nature, shall be applicable to all members similarly situated, and shall be
administered in a nondiscriminatory manner in accordance with the provisions of the Code and
ERISA.
	 
	 	 	 	However, such preceding requirement shall not prohibit the Plan Administrator from valuing
the Account of a Participant at a different date or time in order to facilitate a
distribution, nor from taking other actions which may be different with respect to a
Participant so long as with respect to a particular action, right, or privilege granted by
the MOC-DCP or established by the Plan Administrator, the Participant is treated in a
similar fashion.
	 
	 	9.4	 	Indemnification of Administrator
	 
	 	 	 	The Company agrees to indemnify and to defend to the fullest extent permitted by law any
Employee serving as the Plan Administrator against all liabilities, damages, costs and
expenses (including attorney’s fees and amounts paid in settlement of any claims approved by
the Company) occasioned by any act of omission to act in connection with the MOC-DCP, if
such act of omission is or was in good faith.
	 
	 	9.5	 	Information Required by Plan Administrator
	 
	 	 	 	The Plan Administrator shall obtain such data and information as deemed necessary or
desirable in order to administer the MOC-DCP. The records of the Company as to an
Employee’s or Participant’s period or periods of employment, termination of employment and
the reason therefor, leave of absence, re-employment and earnings will be conclusive on all
persons unless determined by independent agents or delegates of the Plan Administrator to be
incorrect. Participants and other persons entitled to benefits under the MOC-DCP also shall
furnish the Plan Administrator with such evidence, data or information, as the Plan
Administrator considers necessary or desirable to administer the MOC-DCP.
	 
	 	9.6	 	Claims and Review Procedures

	 	a.	 	Claims Procedure. If a Participant believes any rights or benefits are being
improperly denied under the MOC-DCP, such Participant may file a claim in writing with
the Plan Administrator. If any such claim is wholly or partially denied, the Plan
Administrator shall notify such Participant of its decision in writing. Such
notification shall be written in a manner calculated to be understood by such
Participant and shall contain (i) specific reasons for the denial, (ii) specific
reference to pertinent MOC-DCP provisions, (iii) a description of any additional
material or information necessary for the Participant to perfect such claim and an
explanation of why such material or information is necessary, and (iv) information as
to the steps to be taken if the Participant wishes to submit a request for review.
Such notification shall be given within 90 days after the claim is received by the Plan
Administrator (or within 180 days, if special circumstances require an extension of
time for processing the claim, and if written notice of such extension and
circumstances is given to such Participant within the initial 90 day period.) If such
notification is not given within such period the claim shall be considered denied as of
the last day of such period and such Participant may request a review of his claim.

			
	 	 	 
	MOC Deferred Compensation Plan
	 	6

 

 

	 	b.	 	Review Procedure. Within 60 days after the date on which a Participant
receives a written notice of a denied claim (or, if applicable, within 60 days after
the date on which such denial is considered to have occurred) such Participant (or the
Participant’s duly authorized representative) may (i) file a written request with the
Plan Administrator for a review of his denied claim and of pertinent documents, and
(ii) submit written issues and comments to the Plan Administrator. The Plan
Administrator shall notify such Participant of its decision in writing. Such
notification shall be written in a manner calculated to be understood by such
Participant and shall contain specific reasons for the decision as well as specific
references to pertinent MOC-DCP provision. The decision on review shall be made within
60 days after the request for review is received by the Plan Administrator (or within
120 days, if special circumstances require an extension of time for processing the
request, such as an election by the Plan Administrator to hold a hearing, and if
written notice of such extension and circumstances is given to such person within the
initial 60 day period). If the decision on review is not made within such period, the
claim shall be considered denied.

	9.7	 	Furnishing Information or Providing Other Reports
	 
	 	 	The Plan Administrator shall provide Employees with: (a) a description of the MOC-DCP, and
(b) such other information or notices as required by the ERISA or other applicable law.
After payment by the Employee of a reasonable charge, which charge may be waived by the Plan
Administrator, the Plan Administrator shall provide the Employee with a copy of this MOC-DCP
upon written request by the Employee. The Plan Administrator shall also file with
government authorities any reports or returns required.
	 
	9.8	 	Account Statement
	 
	 	 	Participants shall receive statements at least annually of their Account reflecting amounts
deferred and any adjustments due to gain or loss resulting from distributions and any
allocable expenses. The Plan Administrator may establish other dates to provide additional
statements.

Article X. Modification and Discontinuance

Marathon Oil Company reserves the right to modify, suspend, or terminate the Plan at any time,
in whole or in part, in such manner as it shall determine. Included in the Company’s right to
amend, suspend or terminate is the Company’s right at any time to no longer permit any additional
participants under the MOC-DCP, to cease making Company allocations, and to distribute all Account
balances upon MOC-DCP termination. The Plan Administrator may promulgate rules and procedures from
time to time to carry out the provisions of this Article X. However, in no event shall the Company
have the right to eliminate or reduce any benefit, which has been vested or become forfeitable
under the MOC-DCP, pursuant to Article VI.

In addition to the other methods of amending MOC’s employee benefit plans, practices, and policies
(hereinafter referred to as ‘MOC Employee Benefit Plans’) which have been authorized, or may in the
future be authorized, by the Board, the Company’s Vice President of Human Resources may approve the
following types of amendments to MOC Employee Benefit Plans:

			
	 	 	 
	MOC Deferred Compensation Plan
	 	7

 

 

	i.	 	With the opinion of counsel, technical amendments required by applicable laws and regulations;
	 
	ii.	 	With the opinion of counsel, amendments that are clarifications of plan provisions;
	 
	iii.	 	Amendments in connection with a signed definitive agreement governing a merger, acquisition or divestiture such that, for
MOC Employee Benefit Plans, needed changes are specifically described in the definitive agreement, or if not specifically
described in the definitive agreement, the needed changes are in keeping with the intent of the definitive agreement;
	 
	iv.	 	Amendments in connection with changes that have a minimal cost impact (as defined below) to the Company; and
	 
	v.	 	With the opinion of counsel, amendments in connection with changes resulting from state or federal legislative actions that have a minimal cost impact (as defined below) to the Company.

For purposes of the above, “minimal cost impact” is defined as an annual cost impact to the Company
per MOC Employee Benefit Plan case that does not exceed the greater of (i) an amount that is less
than one-half of one percent of its documented total cost (including administrative costs) for the
previous calendar year, or (ii) $100,000.

Article XI. General Provisions

	11.1	 	Notices
	 
	 	 	Each Participant entitled to benefits under the MOC-DCP must file in writing with the Plan
Administrator such Participant’s post office address and each change of post office address.
Any communication, statement or notice addressed to any such Participant at the last post
office address filed with the Plan Administrator will be binding upon such person for all
purposes of the MOC-DCP, and the Plan Administrator shall not be obligated to search for or
ascertain the whereabouts of any Participant. Any notice or document required to be given
or filed with the Plan Administrator shall be considered as given or filed if delivered or
mailed by registered mail, postage prepaid, to Eileen M. Campbell, Vice President of Human
Resources, P.O. Box 3128, Houston, Texas 77253.
	 
	11.2	 	Employment Rights
	 
	 	 	The MOC-DCP does not constitute a contract of employment, and participation in the Plan will
not give any Participant the right to be retained in the employ of the Company nor any right
or claim to any benefit under the MOC-DCP, unless such right or claim has specifically
accrued under the terms of the MOC-DCP.
	 
	11.3	 	Interests Not Transferable
	 
	 	 	Except as may be required by law, including the federal income and employment tax
withholding provisions of the Code, or of an applicable state’s income tax act, the
interests of Participants and their beneficiaries under this MOC-DCP are not subject to the
claims of their creditors and may not be voluntarily or involuntarily sold, transferred,
alienated, assigned or encumbered. The preceding shall not preclude the Company

			
	 	 	 
	MOC Deferred Compensation Plan
	 	8

 

 

	 	 	from asserting any claim for damages or for any debt that the Company may have with respect
to the Participant.
	 
	11.4	 	No Interest or Earnings
	 
	 	 	No interest or earnings of any type shall accrue, be credited or be payable on any amounts
that are credited to a Participant’s Account under this MOC-DCP other than as specified in
Article V, Section 5.2.
	 
	11.5	 	Facility of Payment
	 
	 	 	When a Participant entitled to benefits under the MOC-DCP is under a legal disability, or,
in the Plan Administrator’s opinion, is in any way incapacitated so as to be unable to
manage their financial affairs, the Plan Administrator may direct that the benefits to which
such Participant otherwise would be entitled shall be made to such Participant’s legal
representative, or to such other person or persons as the Plan Administrator may direct the
application of the benefits for the benefit of such Participant. Any payment made in
accordance with such provisions of this Article XI, Section 11.5 shall be a full and
complete discharge of any liability for such payment.
	 
	11.6	 	Controlling State Law
	 
	 	 	To the extent not superseded by the laws of the United States, the laws of the State of
Texas shall be controlling in all matters relating to the MOC-DCP.
	 
	11.7	 	Severability
	 
	 	 	In case any provisions of the MOC-DCP shall be held illegal or invalid for any reason, such
illegality or invalidity shall not affect the remaining provisions of the MOC-DCP, and the
MOC-DCP shall be construed and enforced as if such illegal and invalid provisions had never
been set forth in the MOC-DCP.
	 
	11.8	 	Statutory References
	 
	 	 	All references to the Code and ERISA include reference to any comparable or succeeding
provisions of any legislation, which amends, supplements or replaces such section or
subsection.
	 
	11.9	 	Headings
	 
	 	 	Section headings and titles are for reference only. In the event of a conflict between a
title and the content of a section, the content of the section shall control.
	 
	11.10	 	Non-taxable Benefits
	 
	 	 	It is the intention of the Company that this MOC-DCP meet all requirements of the Code so
that the benefits provided be non-taxable during the period of deferral and until actual
distribution is made.

			
	 	 	 
	MOC Deferred Compensation Plan
	 	9

 

 

          IN WITNESS WHEREOF, Marathon Oil Company has caused its name to be hereunto subscribed by
its Vice President, Marathon Oil Company, and its corporate seal to be hereto affixed.

	 	 	 	 	 
	 

	 	 	 	MARATHON OIL COMPANY
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth Matheny
	 
	 	 	 	 
	 

	 	Its:
	 	Kenneth L. Matheny
	 

	 	 	 	Vice President
	 
	 	 	 	 
	 

	 	Attest:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	(Corporate Seal)

STATE OF TEXAS )

                                         ) ss.

COUNTY OF HARRIS)

          On this            day of
                      , 2006, before me, a notary public within and for
the State of Texas, personally appeared Kenneth L. Matheny and                       , to me
personally known, who being by me first duly sworn, did depose and say that they are the Assistant
Treasurer, and the                                   , respectively, of Marathon Oil Company, the Corporation
named in and which executed the foregoing instrument; that the seal affixed to the instrument (if
any) is the seal of said corporation, and that said instrument was signed and sealed on behalf of
said corporation by authority of its Board of Directors; and they acknowledged said instrument to
be the free act and deed of said corporation.

	 	 	 
	 

	 	 

	 
	 	 
	 

	 	     Notary Public, State of Texas

(Notarial Seal)

			
	 	 	 
	MOC Deferred Compensation Plan
	 	10exv10w29

 

Exhibit 10.29

MARATHON PETROLEUM COMPANY LLC

EXCESS BENEFIT PLAN

Amended and Restated as of

January 1, 2006

 

 

EXCESS BENEFIT PLAN

ARTICLE I

	I.	 	Purpose

The Marathon Oil Company Excess Benefit Plan was established February 5, 1976 and has been
amended from time to time. Its stated purpose is to compensate employees for the loss of
benefits under the Retirement Plan of Marathon Oil Company and the Marathon Oil Company
Thrift Plan that occur due to limitations placed by the Internal Revenue code (IRC) on
benefits payable and contributions permitted under qualified plans. These limitations
include IRC Section 415, IRC Section 401(k), IRC Section 401(m), IRC Section 402(g), and IRC
Section 401(a)(17).

On January 1, 1998, Marathon Oil Company and Ashland Petroleum Inc. entered into a joint
venture, called Marathon Ashland Petroleum LLC (“MAPLLC”). As a result of the formation of
the joint venture and the transfer of a significant number of Marathon employees to MAPLLC,
on April 1, 1998 a portion of the Marathon Oil Company Retirement Plan was spun off to
create the Marathon Ashland Petroleum LLC Retirement Plan (“Retirement Plan”). Consistent
with that action and pursuant to the agreement of the parties, Excess Retirement Benefits
and Excess Thrift Benefits under the Marathon Oil Company Excess Benefit Plan for employees
who transferred to MAPLLC during the 1998 calendar year were spun-off to create the Marathon
Ashland Petroleum LLC Excess Benefit Plan. Any elections in effect under the Marathon Oil
Company Excess Benefit Plan (such as beneficiary designations or Group I employee elections,
etc.) continue to apply under the MAPLLC Excess Benefit Plan, until and unless changed. The
terms and conditions of this MAPLLC Excess Benefit Plan are substantially the same as the
terms and conditions of the Marathon Excess Benefit Plan.

Effective September 1, 2005, Marathon Ashland Petroleum LLC changed its name to Marathon
Petroleum Company LLC (“MPC” or “the Company”). Therefore, “MAP” has been replaced with
“MPC” throughout this document, and all references to MPC are one and the same with respect
to previous references to MAP. The name change from MAP to MPC does not affect any benefits
under this Plan.

Effective January 1, 2006, this Excess Benefit Plan is restated to incorporate prior
amendments.

This Excess Benefit Plan sets forth the terms and conditions under which benefits were
designed to compensate employees for the aforementioned losses of benefits shall be accrued
and paid by the Company.

ARTICLE II

	II.	 	Eligibility

 

 

The following individuals are eligible to accrue Excess Benefit Plan benefits:

	 	A.	 	Every individual who qualifies for a benefit under the terms of the Retirement
Plan and whose benefit as determined under Article V, Section A, or B and C, of the
Retirement Plan is reduced by any of the following limitations:

	 	1.	 	IRC Section 415; or
	 
	 	2.	 	The annual compensation limit as set forth under IRC Section
401(a)(17).

	 	B.	 	Every individual who participates in the Marathon Oil Company Thrift Plan
(“Thrift Plan”) and who (i) has potential contributions to the Thrift Plan limited by
IRC requirements to a point which precludes the individual’s receipt of the maximum
matching Company Contributions provided under Article VI of the Thrift Plan; (ii) is
limited by IRC requirements to making contributions to the Plan at a percentage that
is less than their elected contribution percentage; and (iii) continues to make
After-Tax and MSP Contributions to the Thrift Plan at the maximum rate as limited by
the IRC requirements.

As used in this Section B, the term “IRC requirements” includes, and is limited to,
the following requirements:

	 	1.	 	IRC Section 415;
	 
	 	2.	 	IRC Section 401(k) (Actual Deferral Percentage test) and IRC
Section 401(m) (Actual Contribution Percentage test);
	 
	 	3.	 	The IRC Section 402(g) annual dollar limitation on MSP
contributions; or
	 
	 	4.	 	The annual compensation limit as set forth under IRC Section
401(a)(17).

	 	C.	 	Each Officer of MPC (limited to Officers in Grade 18 and above) who is limited
to contributing an amount to their MSP account which is less than the maximum
potential amount of contributions that could be matched by Company Contributions under
the Thrift Plan (i) because of the results of the Actual Deferral Percentage test, or
(ii) because of the attainment of the annual dollar limitation on MSP contributions;
and who:

	 	1.	 	continues to contribute their maximum permissible amount to the
MSP Account as determined under the Thrift Plan; and
	 
	 	2.	 	is not suspended from making After-Tax Contributions under the
terms of the Thrift Plan.

Effective January 1, 2006, any Excess Thrift accruals for employees eligible for the
Marathon Petroleum Company Deferred Compensation Plan shall accrue under the Deferred
Compensation Plan rather than the MPC Excess Plan, regardless of whether the eligible
employee elects to participate in the Deferred Compensation Plan;

Every individual who is eligible to receive benefits under this Excess Benefit Plan by
reason of their active employment with the Company shall be known as a Participant.

 

 

Every individual who becomes eligible to receive benefits under this Excess Benefit Plan in
the event of the death of a Participant shall be known as a Beneficiary. The Beneficiary
of a Participant under this Excess Benefit Plan shall be such Beneficiary as may be
provided under Article VI, Section B of this Plan.

ARTICLE III

	III.	 	Excess Retirement and Thrift Benefits

	 	A.	 	Amount of Excess Retirement Benefit

The amount of Excess Retirement Benefit which a Participant or Beneficiary is
entitled to shall be equal to the excess of (1) over (2) below:

	 	(1)	 	The amount of benefit which such Participant or Beneficiary
would be entitled to receive under the Retirement Plan if such benefit were
computed without giving effect to the limitations referenced under Article II,
Section A of this Plan and including elected deferred compensation
contributions as permitted under the Marathon Petroleum Company LLC Deferred
Compensation Plan; less
	 
	 	(2)	 	The amount of benefit which such Participant or Beneficiary is
entitled to receive under the Retirement Plan.

Each Officer of MPC in Grade 18 and above shall be entitled to an additional Excess
Retirement Benefit equal to the difference between (3) and (4) below:

	 	(3)	 	An amount calculated under the Retirement Plan benefit formula,
without regard to any IRC-mandated limitations and including elected deferred
compensation contributions as permitted under the Marathon Petroleum Company
LLC Deferred Compensation Plan, and substituting the following Final Average
Pay (FAP) definition for the definition of “Final Average Pay” contained in the
Retirement Plan:

Final Average Pay shall be the highest pay, excluding bonuses, of a
member for any consecutive 36-month period during the last ten years
of employment plus the highest three bonuses paid out of the
last 10 years (not necessarily consecutive), divided by 36.

	 	(4)	 	An amount as normally determined under the Retirement Plan, plus
any retirement benefit otherwise payable under the Excess Benefit Plan (i.e.,
exclusive of any benefits attributable to the calculation in (3) above).

	 	B.	 	Amount of Excess Thrift Benefit

The amount of Excess Thrift Benefit which a Participant or Beneficiary is entitled
to receive shall be equal to the sum of the excess of (1) over (2) below

 

 

for each calendar year accumulated with interest to date of payment at the “Cash
With Interest” rate provided under Article VIII of the Thrift Plan:

	 	1.	 	The amount of Company Contributions under Article VI of the
Thrift Plan that would have been credited to the Participant’s Thrift Plan
account if the limitations referenced under Article II, Section B and C of this
Plan were not given effect for such year; less
	 
	 	2.	 	The amount of Company Contributions actually credited to the
Participant’s account in such year.

If the “Cash With Interest” rate becomes unavailable for any reason, the Company
shall, at its sole discretion, substitute a similar interest rate which will be
applicable for time periods thereafter.

	 	C.	 	Payment of Excess Benefits

Payment of Excess Benefits shall be accomplished by means of unfunded payments
directly from the Company.

Participants and Beneficiaries must commence their Excess Retirement Benefits
following the participant’s separation from service (in accordance with the
distribution rules approved by the Plan Administrator) regardless of whether they
have commenced benefits under the qualified Retirement Plan. A Participant must be
vested under the Retirement Plan in order for an Excess Retirement Benefit to be
payable. The amount of any lump sum payment hereunder shall be determined by using
the same factors and assumptions which would be used by the Retirement Plan for such
Participant or Beneficiary at the time the form of payment is calculated. In the
event a participant has not made a distribution election, their Excess Retirement
Benefit will be distributed as a lump sum.

Excess Thrift Benefits shall be paid only to Participants who are fully vested under
the Thrift Plan or to their Beneficiaries. Payment of Excess Benefits shall be made
in a single sum payment upon the Participant’s termination of employment from the
Company or in such other manner as may be approved by the Plan Administrator prior
to the Participant’s termination of employment. The balance of any Excess Thrift
Benefit not paid at the Participant’s retirement or termination of employment shall
accrue interest at the “Cash With Interest” rate provided under Article VIII of the
Thrift Plan until the entire balance has been paid. If the “Cash With Interest”
rate becomes unavailable for any reason, the Company shall, at its sole discretion,
substitute a similar interest rate which will be applicable for time periods
thereafter.

Employees reassigned to the Pilot Travel Center LLC will be permitted to continue to
maintain their account, with no distribution required or permitted solely due to the
reassignment to Pilot.

 

 

ARTICLE IV

	IV.	 	Administration of Excess Benefit Plan

The Company has delegated its administrative authority hereunder to the Plan Administrator
of the Retirement Plan or their successor. The Plan Administrator shall have the authority
to control and manage the operation and administration of the Excess Benefit Plan,
including all rights and powers necessary or convenient to the carrying out of its
functions hereunder. The Plan Administrator has the authority to appoint Assistant Plan
Administrators as may be deemed necessary.

ARTICLE V

	V.	 	Amendment or Termination

	 	A.	 	Amendments and Termination

The Company, in its sole discretion, may amend or terminate this Excess Benefit Plan
at any time, but in no event shall such amendment or termination adversely affect
the benefits accrued to the Participants or Beneficiaries hereunder prior to the
effective date of such amendment or termination.

	 	B.	 	Notice of Amendment or Termination

The Plan Administrator shall notify Participants or Beneficiaries under the Excess
Benefit Plan of any amendment affecting their benefits under or terminating the
Excess Benefit Plan within a reasonable time after such action.

ARTICLE VI

	VI.	 	Miscellaneous

	 	A.	 	No Guarantee of Employment, etc.

Neither the creation of the Excess Benefit Plan nor anything contained herein shall
be construed as giving any Participant hereunder or other employees of the Company
any right to remain in the employ of the Company.

	 	B.	 	Beneficiaries

If a member dies prior to retirement or termination, the Retirement Excess Benefit
will be paid to the eligible surviving spouse or estate (if no eligible surviving
spouse). For retired or terminated members and subject to any designation
guidelines established by the Plan Administrator, each retired or terminated
Participant shall have the right at any time to designate, rescind or change the
designation of, a primary and a contingent Beneficiary to receive the Retirement
Excess Benefits payable in the event of the Participant’s death. Such designation,
rescission or change of designation shall be made in writing,

 

 

shall be filed with the Plan Administrator, and shall be controlling over any
disposition by will or otherwise.

	 	1.	 	Thrift Excess Benefits of the deceased’s members account will be
paid to the beneficiary or beneficiaries designated under the Thrift Plan.
	 
	 	2.	 	All Members

In any event, if there is no valid beneficiary under the terms of this Plan, the
benefits under this Plan will be paid to the person or persons comprising the first
surviving class of the Eligible Classes as set forth below:

	 	a.	 	The Participant’s spouse.
	 
	 	b.	 	The Participant’s children.
	 
	 	c.	 	The Participant’s surviving parents.
	 
	 	d.	 	The Participant’s surviving brothers and sisters.
	 
	 	e.	 	The executor or administrator of the Participant’s estate.

	 	C.	 	Rights of Participants and Beneficiaries

Payment of benefits hereunder to Participants or Beneficiaries shall be made only to
them or their legal representatives, and there shall be no interest in any benefit
payments to be made prospectively, or any part thereof, nor shall benefits hereunder
or the expectation of such benefits be assignable by operation of law or otherwise,
or be subject to any form of reduction for the debts or defaults of such
Participants or Beneficiaries whether to the Company or to others. However, this
Section C shall not apply to portions of benefits applied at the direction of the
person eligible to receive such benefits to the premiums on life or health insurance
provided under any Company program, or to the withholding of taxes.

	 	D.	 	No Requirement to Fund

No provisions in the Excess Benefit Plan, either directly or indirectly shall be
construed to require the Company to reserve, or otherwise set aside, funds for the
payment of benefits hereunder.

Any payments are to be made from the general assets of the Company. The Company’s
obligation to make payments is a general obligation which is outside the provisions
of its qualified plans and the trusts created thereunder.

	 	E.	 	Controlling Law

To the extent not preempted by the laws of the United States of America, the laws of
the State of Ohio shall be the controlling state law in all matters relating to the
Excess Benefit Plan and shall apply.

	 	F.	 	Severability

 

 

If any provisions of the Excess Benefit Plan shall be held illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining parts of
the Excess Benefit Plan, but this Plan shall be construed and enforced as if said
illegal or invalid provision had never been included herein.

	 	G.	 	Affect on Other Benefit Plans

Any benefit payable under the Retirement Plan or the Thrift Plan shall be paid
solely in accordance with the terms and provisions of those Plans, and nothing in
the Excess Benefit Plan shall operate or be construed in any way to modify, amend,
or affect the terms and provisions of the Retirement Plan or the Thrift Plan.

Article VII

In addition to the other methods of amending Marathon Petroleum Company’s employee benefit plans,
practices, and policies (hereinafter referred to as ‘MPC Employee Benefit Plans’) which have been
authorized, or may in the future be authorized by the Marathon Oil Company Board of Directors, the
Company’s Vice President of Human Resources may approve the following types of amendments to MPC
Employee Benefit Plans:

	 	i.	 	With the opinion of counsel, technical amendments required by applicable laws and
regulations;
	 
	 	ii.	 	With the opinion of counsel, amendments that are clarifications of plan provisions;
	 
	 	iii.	 	Amendments in connection with a signed definitive agreement governing a merger,
acquisition or divestiture such that, for MPC Employee Benefit Plans, needed changes are
specifically described in the definitive agreement, or if not specifically described in the
definitive agreement, the needed changes are in keeping with the intent of the definitive
agreement;
	 
	 	iv.	 	Amendments in connection with changes that have a minimal cost impact (as defined
below) to the Company; and
	 
	 	v.	 	With the opinion of counsel, amendments in connection with changes resulting from state
or federal legislative actions that have a minimal cost impact (as defined below) to the
Company.

For purposes of the above, “minimal cost impact” is defined as an annual cost impact to the Company
per MPC Employee Benefit Plan case that does not exceed the greater of (i) an amount that is less
than one-half of one percent of its documented total cost (including administrative costs) for the
previous calendar year, or (ii) $100,000.

 

 

     IN WITNESS WHEREOF, Marathon Petroleum Company LLC has caused its name to be hereunto
subscribed by its Vice President, Corporate Responsibility, Marathon Petroleum Company LLC, and its
company seal to be hereto affixed.

	 	 	 	 	 
	 	Marathon Petroleum Company LLC

 	 
	 	 	/s/ R.K. Lohoff
 	 
	 	By: 	R. K. Lohoff
 	 
	 	Its: 	Vice President, Corporate Responsibility 	 
	 

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Attest:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 

	 	 	 	     (Company Seal)

STATE OF OHIO )

) ss.

COUNTY OF HANCOCK)

     On this ___day of ___, 2006, before me, a notary public within and for the
State of Ohio, personally appeared R. K. Lohoff and ___, to me personally known,
who being by me first duly sworn, did depose and say that they are the Vice President, Corporate
Responsibility, and the ___, respectively, of Marathon Petroleum Company LLC, the
Company named in and which executed the foregoing instrument; that the seal affixed to the
instrument (if any) is the seal of said company, and that said instrument was signed and sealed on
behalf of said company by authority of its Board of Managers; and they acknowledged said instrument
to be the free act and deed of said company.

	 	 	 	 	 
	 

	 	 

Notary Public, State of Ohio
	 	 
	 
	 	 	 	 
	(Notarial Seal)

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