Document:

Tax Sharing Agreement

 Exhibit 10.3 
 TAX SHARING AGREEMENT 
 DATED AS OF APRIL 26, 2012 

BY AND AMONG 
 CONOCOPHILLIPS, 
 CONOCOPHILLIPS COMPANY, 

PHILLIPS 66, 
 AND 
 PHILLIPS 66 COMPANY 

 TABLE OF CONTENTS 

 

					
	  	  	Page	 
		
	 Section 1.        Definition of Terms
	  	 	2	  
		
	 Section 2.        Allocation of Tax Liabilities and Tax
Benefits
	  	 	13	  
		
	 Section 2.01      General Rule
	  	 	13	  
		
	 Section 2.02      Federal Tax and Tax Benefits
	  	 	13	  
		
	 Section 2.03      State Tax and Tax Benefits
	  	 	15	  
		
	 Section 2.04      Foreign Tax and Tax Benefits
	  	 	16	  
		
	 Section 2.05      UK Taxes
	  	 	17	  
		
	 Section 2.06      Certain Transaction Taxes and Breaches of Covenant
	  	 	18	  
		
	 Section 2.07      Tax Benefits
	  	 	19	  
		
	 Section 2.08      Special Allocation and Computational Rules
	  	 	20	  
		
	 Section 2.09      Deductible and Includible Tax Payments
	  	 	20	  
		
	 Section 3.        Proration of Taxes for Straddle Periods
	  	 	21	  
		
	 Section 4.        Preparation and Filing of Tax Returns
	  	 	21	  
		
	 Section 4.01      General
	  	 	21	  
		
	 Section 4.02      ConocoPhillips’s Responsibility
	  	 	22	  
		
	 Section 4.03      Phillips 66’s Responsibility
	  	 	22	  
		
	 Section 4.04      Tax Return Filing and Past Practices
	  	 	22	  
		
	 Section 4.05      Consolidated or Combined Tax Returns
	  	 	23	  
		
	 Section 4.06      Right to Review Tax Returns
	  	 	23	  
		
	 Section 4.07      Phillips 66 Carrybacks and Claims for Refund
	  	 	25	  
		
	 Section 4.08      Apportionment of Earnings and Profits and Tax
Attributes
	  	 	25	  
		
	 Section 5.        Due Date for Payments and Related Matters
	  	 	26	  
		
	 Section 5.01      General Rule
	  	 	26	  

  
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	 Section 5.02      ConocoPhillips Federal Consolidated
Income Tax Returns, ConocoPhillips State Combined Income Tax

                   
         Returns and State Separate Income Tax Returns
	  	 	26	  
		
	 Section 5.03      Other Taxes
	  	 	31	  
		
	 Section 5.04      Certain Separate Return Income Taxes and Property
Taxes
	  	 	34	  
		
	 Section 5.05      Tax-Related Losses
	  	 	35	  
		
	 Section 5.06      Treatment of Payments; Tax Gross Up
	  	 	35	  
		
	 Section 5.07      Late Payments
	  	 	35	  
		
	 Section 6.        Tax-Free Status
	  	 	36	  
		
	 Section 6.01      Tax Opinions/Rulings and Representation Letters
	  	 	36	  
		
	 Section 6.02      Restrictions on Phillips 66 and Phillips 66 Company
	  	 	36	  
		
	 Section 6.03      Procedures Regarding Opinions and Rulings
	  	 	39	  
		
	 Section 6.04      Liability for Tax-Related Losses
	  	 	40	  
		
	 Section 7.        Assistance and Cooperation
	  	 	41	  
		
	 Section 7.01      Assistance and Cooperation
	  	 	41	  
		
	 Section 7.02      Tax Packages and Other Tax Return Information
	  	 	41	  
		
	 Section 7.03      Reliance by ConocoPhillips
	  	 	42	  
		
	 Section 8.        Tax Records
	  	 	42	  
		
	 Section 8.01      Retention of Tax Records
	  	 	42	  
		
	 Section 8.02      Access to Tax Records
	  	 	43	  
		
	 Section 9.        Tax Contests
	  	 	43	  
		
	 Section 9.01      Notice
	  	 	43	  
		
	 Section 9.02      Control of Tax Contests
	  	 	43	  

  
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	 Section 10.        Effective Date; Termination of Prior Intercompany Tax
Allocation Agreements
	  	 	46	  
		
	 Section 11.        Survival of Obligations
	  	 	46	  
		
	 Section 12.        Dispute Resolution
	  	 	46	  
		
	 Section 13.        Expenses
	  	 	46	  
		
	 Section 14.        General Provisions
	  	 	47	  
		
	 Section 14.01      Addresses and Notices
	  	 	47	  
		
	 Section 14.02      Binding Effect
	  	 	47	  
		
	 Section 14.03      Waiver
	  	 	47	  
		
	 Section 14.04      Severability
	  	 	48	  
		
	 Section 14.05      Authority
	  	 	48	  
		
	 Section 14.06      Further Action
	  	 	48	  
		
	 Section 14.07      Integration
	  	 	48	  
		
	 Section 14.08      Construction
	  	 	48	  
		
	 Section 14.09      No Double Recovery
	  	 	48	  
		
	 Section 14.10      Counterparts
	  	 	49	  
		
	 Section 14.11      Governing Law
	  	 	49	  
		
	 Section 14.12      Jurisdiction
	  	 	49	  
		
	 Section 14.13      Amendment
	  	 	49	  
		
	 Section 14.14      Phillips 66 Subsidiaries
	  	 	49	  
		
	 Section 14.15      Successors
	  	 	49	  
		
	 Section 14.16      Injunctions
	  	 	49	  

  
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 TAX SHARING AGREEMENT 

This TAX SHARING AGREEMENT (this “Agreement”) is entered into as of April 26, 2012, by and among ConocoPhillips, a
Delaware corporation (“ConocoPhillips”), ConocoPhillips Company, a Delaware corporation and a wholly-owned subsidiary of ConocoPhillips (“ConocoPhillips Company”), Phillips 66, a Delaware corporation and a
wholly-owned subsidiary of ConocoPhillips (“Phillips 66”), and Phillips 66 Company, a Delaware corporation and a wholly-owned subsidiary of ConocoPhillips Company (“Phillips 66 Company”) (ConocoPhillips and Phillips
66 are sometimes collectively referred to herein as the “Companies” and, as the context requires, individually referred to herein as the “Company”). 

RECITALS 

WHEREAS, the board of directors of ConocoPhillips has determined that it is in the best interests of ConocoPhillips and its stockholders
to create a new publicly traded company that shall operate the Phillips 66 Business; 
 WHEREAS, pursuant to the Separation and
Distribution Agreement, ConocoPhillips and Phillips 66 have agreed to create the new publicly traded company by means of, among other actions, (a) the contribution by ConocoPhillips Company to Phillips 66 Company of any Phillips 66 Assets held
directly by ConocoPhillips Company in exchange for (i) the assumption by Phillips 66 Company of any Phillips 66 Liabilities from ConocoPhillips Company, and (ii) a number of shares of common stock, par value $0.01 per share, of Phillips 66
Company (the “Internal Contribution”); (b) the distribution, on the Internal Distribution Date, by ConocoPhillips Company to ConocoPhillips of all the outstanding shares of common stock, par value $0.01 per share, of Phillips
66 Company (the “Internal Distribution”); (c) the contribution by ConocoPhillips to Phillips 66 of all the outstanding stock of Phillips 66 Company and any Phillips 66 Assets held directly by ConocoPhillips in exchange for
(i) the assumption by Phillips 66 of any Phillips 66 Liabilities from ConocoPhillips, (ii) a special cash distribution; and (iii) a number of shares of Phillips 66 Common Stock (the “Contribution”); and (d) the
distribution to holders of shares of ConocoPhillips Common Stock, through a spin-off, of all the outstanding shares of Phillips 66 Common Stock, as more fully described in the Separation and Distribution Agreement and the Ancillary Agreements (the
“Distribution”); 
 WHEREAS, as of the date hereof, ConocoPhillips is the common parent of an affiliated group
of corporations, including ConocoPhillips Company, Phillips 66, and Phillips 66 Company, which has elected to file consolidated Federal Income Tax Returns; 
 WHEREAS, as a result of the Distribution, Phillips 66 and its subsidiaries will cease to be members of the affiliated group (as that term is defined in Section 1504 of the Code) of which
ConocoPhillips is the common parent; 
 WHEREAS, the parties desire to provide for and agree upon the allocation between the
parties of liabilities for Taxes arising prior to, as a result of, and subsequent to the Distribution, and to provide for and agree upon other matters relating to Taxes; 

 NOW THEREFORE, in consideration of the mutual agreements contained herein, the parties
hereby agree as follows: 
 Section 1. Definition of Terms. 

For purposes of this Agreement (including the recitals hereof), the following terms have the following meanings, and capitalized terms
used but not otherwise defined herein shall have the meaning ascribed to them in the Separation and Distribution Agreement: 

“Accounting Cutoff Date” means, with respect to Phillips 66, any date as of the end of which there is a closing of the
financial accounting records for such entity. 
 “Accrued” has the meaning set forth in
Section 5.02(b)(i)(A) of this Agreement. 
 “Accrued ConocoPhillips Other Tax Liability” has the meaning
set forth in Section 5.03(b)(ii)(A)of this Agreement. 
 “Accrued ConocoPhillips State Income Tax Asset”
has the meaning set forth in Section 5.02(b)(ii)(A) of this Agreement. 
 “Accrued ConocoPhillips State Income Tax
Liability” has the meaning set forth in Section 5.02(b)(ii)(A) of this Agreement. 
 “Accrued Phillips 66
Federal Income Tax Asset” has the meaning set forth in Section 5.02(b)(i)(A) of this Agreement. 

“Accrued Phillips 66 Income Tax Asset” has the meaning set forth in Section 5.02(b)(i)(A) of this Agreement.

 “Accrued Phillips 66 Other Tax Liability” has the meaning set forth in Section 5.03(b)(i)(A) of this
Agreement. 
 “Accrued Phillips 66 State Income Tax Asset” has the meaning set forth in
Section 5.02(b)(i)(A) of this Agreement. 
 “Accrued Phillips 66 Federal Income Tax Liability” has the
meaning set forth in Section 5.02(b)(i)(A) of this Agreement. 
 “Accrued Phillips 66 Income Tax
Liability” has the meaning set forth in Section 5.02(b)(i)(A) of this Agreement. 
 “Accrued Phillips 66
State Income Tax Liability” has the meaning set forth in Section 5.02(b)(i)(A) of this Agreement. 

“Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of the Code and the
regulations thereunder) by (a) Phillips 66 and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the Refining Active Business (as defined in the Ruling Request) as conducted immediately prior to
the Distribution; and (b) Phillips 66 Company and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the Refining Active Business (as defined in the Ruling Request) as conducted immediately prior
to the Internal Distribution. 

  
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 “Adjustment Request” means any formal or informal claim or request filed
with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax return claiming adjustment to the Taxes as reported on the Tax Return or, if applicable, as
previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid. 
 “Affiliate” means any entity that is directly or indirectly “controlled” by either the person in question or an Affiliate of such person. “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contract or otherwise. The term Affiliate shall refer to Affiliates of a
person as determined immediately after the Distribution. 
 “Agreed UK Group Relief Surrenders” means Group
Relief Surrenders between members of one Group and members of the other Group in the amounts and in respect of the UK Corporation Tax UK Accounting Periods set out in Appendix 1 to Schedule 2.05 or such other Group Relief Surrenders as fall to be
made in accordance with Paragraph 3 of Schedule 2.05, and any reference to an amendment to an Agreed UK Group Relief Surrender shall include any amendment or adjustment to, any withdrawal of and the making of any claim, election, surrender, notice
or consent that is inconsistent with the claims, elections, surrenders, notices or consents made in respect of such Agreed UK Group Relief Surrender prior to Closing. 
 “Agreement” means this Tax Sharing Agreement. 

“Ancillary Agreement” has the meaning set forth in the Separation and Distribution Agreement. 

“Benefit Intercompany Payee” has the meaning set forth in Section 2.09 of this Agreement. 

“Benefit Intercompany Payor” has the meaning set forth in Section 2.09 of this Agreement. 

“Board Certificate” has the meaning set forth in Section 6.02(e) of this Agreement. 

“Business Day” means a day other than a Saturday, a Sunday, or a day on which banking institutions located in Houston,
Texas, New York, New York, or London, England are authorized or obligated by law or executive order to close. 

“Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Companies” and “Company” have the meaning provided in the first sentence of this Agreement.

 “Contribution” has the meaning set forth in the recitals. 

“ConocoPhillips” has the meaning provided in the first sentence of this Agreement. 

  
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 “ConocoPhillips Affiliated Group” means the affiliated group (as that term
is defined in Section 1504 of the Code and Treasury Regulations thereunder) of which ConocoPhillips is the common parent. 

“ConocoPhillips Business” has the meaning provided in the Separation and Distribution Agreement. 

“ConocoPhillips Company” has the meaning provided in the first sentence of this Agreement. 

“ConocoPhillips Federal Consolidated Income Tax Return” means any U.S. Federal consolidated Tax Return in respect of
Federal Income Taxes for the ConocoPhillips Affiliated Group. 
 “ConocoPhillips Group” means ConocoPhillips
and its Affiliates, excluding any entity that is a member of the Phillips 66 Group. 
 “ConocoPhillips Group Transaction
Returns” shall have the meaning set forth in Section 4.04(b) of this Agreement. 
 “ConocoPhillips Past
Practice” has the meaning set forth in Section 4.04(a) of this Agreement. 
 “ConocoPhillips Separate
Return” means any Separate Return of ConocoPhillips or any member of the ConocoPhillips Group. 

“ConocoPhillips State Combined Income Tax Return” means a consolidated, combined or unitary State Tax Return in respect
of State Income Taxes that actually includes, by election or otherwise, one or more members of the ConocoPhillips Group together with one or more members of the Phillips 66 Group. 

“ConocoPhillips Tax Attributes” means any Tax Attributes other than Phillips 66 Tax Attributes. 

“ConocoPhillips UK Tax Practice” has the meaning set forth in Section 4.04(a) of this Agreement. 

“ConocoPhillips UK Topco” means ConocoPhillips Holdings Limited. 

“Controlling Party” means, in the case of any Tax Contest described in Section 9.02(a) or (b), the Company entitled
to control the Tax Contest under such Section. 
 “Corresponding Relievable Loss” means a Relievable Loss which
may be the subject of an Agreed UK Group Relief Surrender as set out in Appendix 1 to Schedule 2.05 subject to adjustment as contemplated by Paragraph 3 of Schedule 2.05. 
 “CTA 2009” means the United Kingdom’s Corporation Tax Act 2009. 
 “CTA 2010” means the United Kingdom’s Corporation Tax Act 2010. 

  
 4 

 “Dispute” has the meaning set forth in Section 12 of this Agreement.

 “DGCL” means the Delaware General Corporation Law. 

“Distribution” has the meaning set forth in the recitals. 

“Distribution Date” means the date determined in accordance with Section 3.3(a) of the Separation and Distribution
Agreement on which the Distribution occurs. 
 “Employee Matters Agreement” has the meaning set forth in the
Separation and Distribution Agreement. 
 “Excess Foreign Tax Credits” means, for each category of foreign tax
credits under Section 901 of the Code, the excess, if any, of the foreign tax credits (other than foreign tax credits that are Phillips 66 Tax Attributes) utilized by the Phillips 66 Business with respect to the ConocoPhillips Federal
Consolidated Income Tax Returns for the Pre-Distribution Periods that end during 2011 or 2012 and any Straddle Period, collectively, taking into account any adjustment pursuant to a Final Determination of any such Tax Return, as determined pursuant
to and consistent with the ConocoPhillips Past Practice, over the amount of such foreign tax credits utilized by the Phillips 66 Business as reported on such Tax Returns (other than any amended Tax Returns), collectively, as determined pursuant to
and consistent with the ConocoPhillips Past Practice. 
 “Federal Income Tax” means any Tax imposed by Subtitle
A of the Code, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Federal Other Tax” means any Tax imposed by the federal government of the United States of America other than any
Federal Income Taxes, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Federal Tax” means any Federal Income Taxes or Federal Other Taxes. 

“Fifty-Percent or Greater Interest” has the meaning ascribed to such term for purposes of Sections 355(d) and
(e) of the Code. 
 “Final Determination” means the final resolution of liability for any Income Tax or
Other Tax, which resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the later of the date of acceptance by or on behalf of the taxpayer or the IRS, or
by a comparable form under the Laws of a State, local, or foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by
operation of Law) the right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as applicable); (b) by a decision,
judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable; (c) by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under
the Laws of a State, local, or foreign taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of Income Tax or Other Tax, but only after the 

  
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expiration of all periods during which such refund may be recovered (including by way of offset) by the jurisdiction imposing such Income Tax or Other Tax; (e) by a final settlement
resulting from a treaty-based competent authority determination; or (f) by any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties. 

“Foreign Income Tax” means any Tax imposed by any foreign country or any possession of the United States, or by any
political subdivision of any foreign country or any possession of the United States, which is an income tax as defined in Treasury Regulation Section 1.901-2, and any interest, penalties, additions to tax, or additional amounts in respect of
the foregoing. 
 “Foreign Other Tax” means any Tax imposed by any foreign country or any possession of the
United States, or by any political subdivision of any foreign country or any possession of the United States, other than any Foreign Income Taxes and Foreign Property Taxes, and any interest, penalties, additions to tax, or additional amounts in
respect of the foregoing. 
 “Foreign Property Tax” means any real, personal and intangible ad valorem
property Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign country or any possession of the United States, and any interest penalties, additions to tax, or additional amounts in
respect of the foregoing. 
 “Foreign Tax” means any Foreign Income Taxes, Foreign Property Taxes or Foreign
Other Taxes. 
 “Group” means the ConocoPhillips Group or the Phillips 66 Group, or both, as the context
requires. 
 “Group Relief Surrender” means the surrender of Relievable Losses in accordance with Part 5 of CTA
2010. 
 “Income Tax” means any Federal Income Tax, State Income Tax or Foreign Income Tax. 

“Indemnification and Release Agreement” has the meaning set forth in the Separation and Distribution Agreement.

 “Indemnitee” has the meaning set forth in Section 5.06(b) of this Agreement. 

“Indemnitor” has the meaning set forth in Section 5.06(b) of this Agreement. 

“Internal Contribution” has the meaning set forth in the recitals. 

“Internal Distribution” has the meaning set forth in the recitals. 

“Internal Distribution Date” has the meaning set forth in the Separation and Distribution Agreement. 

“IRS” means the U.S. Internal Revenue Service. 

  
 6 

 “Joint Return” means any Tax Return of a member of the ConocoPhillips Group
or the Phillips 66 Group that is not a Separate Return. 
 “Non-Controlling Party” means, in the case of any
Tax Contest described in Section 9.02(a) or (b), the Company not entitled to control the Tax Contest under such Section. 

“Notified Action” has the meaning set forth in Section 6.03(a) of this Agreement. 

“Other Tax” means any Federal Other Tax, State Other Tax, or Foreign Other Tax. 

“Payment Date” means (a) with respect to any ConocoPhillips Federal Consolidated Income Tax Return, the due date
(determined without regard to extensions) for filing the return determined under Section 6072 of the Code and the date the return is filed, and (b) with respect to any other Tax Return, the corresponding dates determined under the
applicable Tax Law. 
 “Person” means an individual, a partnership, a corporation, a limited liability company,
an association, a joint stock company, a trust, a joint venture, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for
U.S. Federal Income Tax purposes. 
 “Phillips 66” has the meaning provided in the first sentence of this
Agreement. 
 “Phillips 66 Business” has the meaning set forth in the Separation and Distribution Agreement.

 “Phillips 66 Capital Stock” means all classes or series of capital stock of Phillips 66, including
(a) the Phillips 66 Common Stock, (b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in Phillips 66 for U.S. Federal Income Tax purposes. 

“Phillips 66 Carryback” means any net operating loss, net capital loss, excess tax credit, or other similar Tax Item of
any member of the Phillips 66 Group which may or must be carried from one Tax Period to another prior Tax Period under the Code or other applicable Tax Law. 
 “Phillips 66 Common Stock” has the meaning set forth in the Separation and Distribution Agreement. 
 “Phillips 66 Company” has the meaning provided in the first sentence of this Agreement. 
 “Phillips 66 Company Capital Stock” means all classes or series of capital stock of Phillips 66 Company, including (a) the common stock, par value $0.01 per share, of Phillips 66
Company, (b) all options, warrants and other rights to acquire such capital stock and (c) all instruments properly treated as stock in Phillips 66 Company for U.S. Federal Income Tax purposes. 

“Phillips 66 Federal Consolidated Income Tax Return” means any U.S. Federal Income Tax Return for the affiliated group
(as that term is defined in Section 1504 of the Code) of which Phillips 66 is the common parent. 

  
 7 

 “Phillips 66 Group” means Phillips 66 and its Affiliates, as determined
immediately after the Distribution. 
 “Phillips 66 Restructuring” has the meaning set forth in
Section 6.02(f) of this Agreement. 
 “Phillips 66 Separate Return” means any Separate Return of Phillips
66 or any member of the Phillips 66 Group. 
 “Phillips 66 Tax Attributes” means any Tax Attributes that are
attributable to, or arise with respect to, assets or activities of the Phillips 66 Business, determined on a “with and without” basis. 
 “Post-Distribution Period” means any Tax Period beginning after the Distribution Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after
the Distribution Date. 
 “Pre-Distribution Period” means any Tax Period ending on or before the Distribution
Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Distribution Date. 

“Prime Rate” has the meaning set forth in the Separation and Distribution Agreement. 

“Privilege” means any privilege that may be asserted under applicable Law, including any privilege arising under or
relating to the attorney-client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes. 

“Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding or
arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is
supported by Phillips 66 management or shareholders, is a hostile acquisition, or otherwise, as a result of which Phillips 66 would merge or consolidate with any other Person or as a result of which any Person or any group of related Persons would
(directly or indirectly) acquire, or have the right to acquire, from Phillips 66 and/or one or more holders of outstanding shares of Phillips 66 Capital Stock, a number of shares of Phillips 66 Capital Stock that would, when combined with any other
changes in ownership of Phillips 66 Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (a) the value of all outstanding shares of stock of Phillips 66 as of the date of such transaction, or in the
case of a series of transactions, the date of the last transaction of such series, or (b) the total combined voting power of all outstanding shares of voting stock of Phillips 66 as of the date of such transaction, or in the case of a series of
transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (x) the adoption by Phillips 66 of a shareholder rights plan or (y) issuances by Phillips 66
that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). For
purposes of determining whether a transaction constitutes an indirect acquisition, any 

  
 8 

 
recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This
definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e)
of the Code shall be incorporated in this definition and its interpretation. 
 “Relievable Losses” means
losses or other amounts eligible for group relief in accordance with Part 5 of CTA 2010, and any reference to the use of a Relievable Loss includes the use of a Relievable Loss as an allowance, credit, deduction, exemption or set off in respect of
any tax, or in the computation of any income, profits or gains for the purposes of any tax, or to obtain a repayment of or saving of tax. 
 “Representation Letters” means the representation letters and any other materials (including, without limitation, a Ruling Request and any related supplemental submissions to the IRS)
delivered or deliverable by ConocoPhillips and others in connection with the rendering by Tax Advisors, and/or the issuance by the IRS, of the Tax Opinions/Rulings. 
 “Responsible Company” means, with respect to any Tax Return, the Company having responsibility for preparing and filing such Tax Return under this Agreement. 

“Retention Date” has the meaning set forth in Section 8.01 of this Agreement. 

“Ruling” means the private letter ruling issued by the IRS to ConocoPhillips in connection with the Transactions.

 “Ruling Request” means any letter filed by ConocoPhillips with the IRS requesting a ruling (including the
Ruling) regarding certain tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any amendment or supplement to such ruling request letter. 

“Section 6.02(e) Acquisition Transaction” means any transaction or series of transactions that is not a Proposed
Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 25% instead of 40%. 

“Separate Return” means (a) in the case of any Tax Return of any member of the Phillips 66 Group (including any
consolidated, combined or unitary return), any such Tax Return that does not include any member of the ConocoPhillips Group and (b) in the case of any Tax Return of any member of the ConocoPhillips Group (including any consolidated, combined or
unitary return), any such Tax Return that does not include any member of the Phillips 66 Group. 
 “Separation and
Distribution Agreement” means the Separation and Distribution Agreement, as amended from time to time, by and among ConocoPhillips and Phillips 66 dated as of April 26, 2012. 

“Special Joint Tax Contest” means any Tax Contest with respect to a Joint Return to which Section 9.02(c)(ii)
applies involving a potential adjustment as a result of which adjustment 

  
 9 

 
Phillips 66 may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 2.07) of at least the amount set forth on Schedule 9.02. 

“Specified Separate Return” means any Separate Return reflecting both Taxes for which Phillips 66 is responsible under
Section 2 and Taxes for which ConocoPhillips is responsible under Section 2. 
 “State” means each
State of the United States and the District of Columbia. 
 “State Income Tax” means any Tax imposed by any
State of the United States or by any political subdivision of any such State which is imposed on or measured by net income, including state and local franchise or similar Taxes measured by net income, and any interest, penalties, additions to tax,
or additional amounts in respect of the foregoing. 
 “State Other Tax” means any Tax imposed by any State of
the United States or by any political subdivision of any such State other than any State Income Taxes and State Property Tax, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“State Property Tax” means any real, personal and intangible ad valorem property Tax imposed by any State of the
United States or by any political subdivision of any such State, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “State Separate Income Tax Return” means a Separate Return in respect of State Income Taxes. 
 “State Tax” means any State Income Taxes, State Property Taxes or State Other Taxes. 
 “Straddle Period” means any Tax Period that begins on or before and ends after the Distribution Date. 
 “Substantial Authority” means “substantial authority” within the meaning of Section 6662(d)(2)(B) of the Code and Treasury Regulations Section 1.6662-4(d) (or, in the
case of any Taxes not subject to Section 6662(a), an analogous standard). 
 “Tax” or
“Taxes” means any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers compensation, unemployment, disability, property, ad valorem, stamp, excise, severance,
occupation, service, sales, use, license, lease, transfer, import, export, value added, alternative minimum, estimated or other tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental
entity or political subdivision thereof, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 
 “Tax Advisor” means a U.S. tax counsel or accountant of recognized national standing. 
 “Tax Attribute” or “Attribute” means a net operating loss, net capital loss, unused investment credit, unused foreign tax credit, excess charitable contribution, general
business credit, minimum tax credit or any other Tax Item that could reduce a Tax. 

  
 10 

 “Tax Authority” means, with respect to any Tax, the governmental entity or
political subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision. 
 “Tax Benefit” means any refund or reduction in otherwise required Tax payments. 
 “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of redetermining Taxes (including any administrative or
judicial review of any claim for refund). 
 “Tax Control” means the definition of “control” set
forth in Section 368(c) of the Code (or in any successor statute or provision), as such definition may be amended from time to time. 
 “Tax-Free Status” means the qualification of each of the Internal Contribution and Internal Distribution, taken together, and the Contribution and Distribution, taken together,
(a) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code, (b) as a transaction in which the stock distributed thereby is “qualified property” for purposes of Sections 355(d), 355(e) and 361(c) of the
Code, and (c) a transaction in which ConocoPhillips, ConocoPhillips Company, Phillips 66, and Phillips 66 Company, and the shareholders of ConocoPhillips, recognize no income or gain for Federal Income Tax purposes pursuant to Sections 355,
361, and 1032 of the Code, other than, (x) in the case of ConocoPhillips, ConocoPhillips Company, Phillips 66, and Phillips 66 Company, intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations
promulgated pursuant to Section 1502 of the Code, and (y) in the case of shareholders of ConocoPhillips, any receipt of cash in lieu of fractional shares. 
 “Tax Intercompany Payee” has the meaning set forth in Section 2.09 of this Agreement. 
 “Tax Intercompany Payor” has the meaning set forth in Section 2.09 of this Agreement. 
 “Tax Item” means, (a) with respect to any Income Tax, any item of income, gain, loss, deduction, credit or recapture of credit or any other item that may have the effect of
increasing or decreasing any Income Tax paid or payable, and (b) with respect to any other Tax, any item that may have the effect of increasing or decreasing any Tax paid or payable. 

“Tax Law” means the Law of any governmental entity or political subdivision thereof relating to any Tax. 

“Tax Opinion” means (a) the opinion of Wachtell, Lipton, Rosen & Katz in connection with the Contribution
and the Distribution, and/or (b) the opinion (or opinions) of Tax Advisors in connection with the Transactions. 

“Tax Opinions/Rulings” means the Tax Opinion (or Tax Opinions) of Tax Advisors and/or the Ruling (or Rulings) by the IRS
deliverable to ConocoPhillips in connection with the Contribution and the Distribution. 
 “Tax Packages” has
the meaning set forth in Section 7.02(b) of this Agreement. 

  
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 “Tax Period” means, with respect to any Tax, the period for which the Tax
is reported as provided under the Code or other applicable Tax Law. 
 “Tax Records” means any Tax Returns, Tax
Return workpapers, documentation relating to any Tax Contests, and any other books of account or records (whether or not in written, electronic or other tangible or intangible forms and whether or not stored on electronic or any other medium)
required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any Tax Authority. 
 “Tax-Related Losses” means (a) all federal, state and local Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment
or otherwise; (b) all accounting, legal and other professional fees, and court costs incurred in connection with such Taxes; and (c) all costs, expenses and damages associated with stockholder litigation or controversies and any amount
paid by ConocoPhillips (or any ConocoPhillips Affiliate) or Phillips 66 (or any Phillips 66 Affiliate) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from
the failure of the Internal Contribution and Internal Distribution, taken together, or the Contribution and Distribution, taken together, to have Tax-Free Status. 
 “Tax Return” means any report of Taxes due, any claim for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or
document required to be filed under the Code or other Tax Law, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 

“Transactions” means the Internal Contribution, the Internal Distribution, the Contribution, the Distribution and the
other transactions contemplated by the Separation and Distribution Agreement. 
 “Transfer Pricing Adjustment”
means any proposed or actual allocation by a Tax Authority of any Tax Item between or among any member of the ConocoPhillips Group and any member of the Phillips 66 Group with respect to any Pre-Distribution Period. 

“Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant
Tax Period. 
 “UK Corporation Tax” means corporation tax charged pursuant to section 2 of CTA 2009 and any
corresponding tax on profits or gains imposed by a UK Tax Authority (including, for the absence of doubt, the supplementary charge charged pursuant to section 330 of CTA 2010). 

“UK GPA” means ConocoPhillips UK Topco’s group payment arrangement made pursuant to section 36 of the United
Kingdom’s Finance Act 1998 or section 59F of the United Kingdom’s Taxes Management Act 1970. 
 “UK Nominated
Company” means ConocoPhillips (U.K.) Limited. 
 “UK Tax” means Tax imposed, assessed or collected by
a UK Tax Authority. 

  
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 “UK Tax Authority” means any Tax Authority within the United Kingdom.

 “UK Tax Document” means UK Tax Returns, and claims, elections, surrenders, disclaimers, notices and consents
for UK Tax purposes. 
 “UK Tax Return” means any Tax Return required to be made to any UK Tax Authority.

 “United Kingdom” means the United Kingdom of Great Britain and Northern Ireland. 

“Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor, which Tax Advisor is
acceptable to ConocoPhillips, on which ConocoPhillips may rely to the effect that a transaction will not affect the Tax-Free Status. Any such opinion must assume that the Internal Contribution, the Internal Distribution, the Contribution and the
Distribution would have qualified for Tax-Free Status if the transaction in question did not occur. 
 “VAT”
means value added tax imposed pursuant to European Council Directive 2006/112/EC, and any national legislation of a member state of the European Union giving effect thereto, and any similar sales or turnover tax. 

Section 2. Allocation of Tax Liabilities and Tax Benefits. 

Section 2.01 General Rule. 
 (a) Phillips 66 Liability. Phillips 66 shall be liable for, and shall indemnify and hold harmless the ConocoPhillips Group from and against any liability for, Taxes which are allocated to Phillips
66 under this Section 2. 
 (b) ConocoPhillips Liability. ConocoPhillips shall be liable for, and shall indemnify
and hold harmless the Phillips 66 Group from and against any liability for, Taxes which are allocated to ConocoPhillips under this Section 2. 
 Section 2.02 Federal Tax and Tax Benefits. Except as provided in Section 2.06, Federal Income Tax and Federal Other Tax and related Tax Benefits shall be allocated as follows:

 (a) ConocoPhillips Federal Consolidated Income Tax for Pre-Distribution, Straddle and Certain Post-Distribution
Periods. 
 (i) With respect to any ConocoPhillips Federal Consolidated Income Tax Return for any
Pre-Distribution Period or any Straddle Period, (A) Phillips 66 shall be responsible for any and all Federal Income Taxes and any reduction in any Tax Benefit (other than any alternative minimum Tax or reduction in any alternative minimum Tax
Benefit) attributable to, or arising with respect to or as a result of, assets or activities of the Phillips 66 Business, determined on a “with and without” basis pursuant to and consistent with the ConocoPhillips Past Practice; and
(B) ConocoPhillips shall be responsible for any and all Federal Income Taxes and any reduction in any Tax Benefit other than Federal Income Taxes (and any reduction in Tax Benefits) for which Phillips 66 is responsible pursuant to
Section 2.02(a)(i)(A). 

  
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 (ii) With respect to any ConocoPhillips Federal Consolidated Income Tax
Return for any Pre-Distribution Period or any Straddle Period, subject to Section 4.07, Phillips 66 shall be entitled to any Tax Benefit (other than any alternative minimum Tax Benefit) attributable to, or arising with respect to or as a result
of, assets or activities of the Phillips 66 Business, determined on a “with and without” basis pursuant to and consistent with the ConocoPhillips Past Practice. For purposes of the calculations pursuant to this Section 2.02(a)(ii), in
any Pre-Distribution Period or Straddle Period for which both Phillips 66 Tax Attributes and ConocoPhillips Tax Attributes are available for use, such Tax Attributes shall be deemed utilized in the order determined pursuant to and consistent with
the ConocoPhillips Past Practice. 
 (iii) With respect to any ConocoPhillips Federal Consolidated Income Tax
Return for any Post-Distribution Period (other than any Straddle Period), Phillips 66 shall be responsible for any and all Federal Income Taxes and any reduction in any Tax Benefit (other than any alternative minimum Tax or reduction in any
alternative minimum Tax Benefit), whether in connection with the filing of such a Tax Return or a Final Determination of such a Tax Return, that would not have arisen but for the utilization by the Phillips 66 Business for any Pre-Distribution
Period that ends during 2011 or 2012 or any Straddle Period of Excess Foreign Tax Credits, as determined pursuant to and consistent with the ConocoPhillips Past Practice. 
 (b) Separate Return Federal Income Tax. (i) Phillips 66 shall be responsible for any and all Federal Income Taxes relating to any Phillips 66 Separate Return; and (ii) except as set forth
in Section 2.02(a)(iii), ConocoPhillips shall be responsible for any and all Federal Income Taxes relating to any ConocoPhillips Separate Return. 
 (c) Federal Other Tax. 
 (i) For all Pre-Distribution
Periods and Straddle Periods, (A) with respect to any and all Federal Other Taxes relating to any Tax Return filed or required to be filed under applicable Tax Law by any member of the ConocoPhillips Group, (I) Phillips 66 shall be
responsible for any and all Federal Other Taxes attributable to, or arising with respect to or as a result of, assets or activities of the Phillips 66 Business; and (II) ConocoPhillips shall be responsible for any and all other Federal Other Taxes;
and (B) with respect to any and all Federal Other Taxes relating to any Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, (I) ConocoPhillips shall be responsible for any and all
Federal Other Taxes attributable to, or arising with respect to or as a result of, assets or activities of the ConocoPhillips Business and (II) Phillips 66 shall be responsible for any and all other Federal Other Taxes. 

(ii) For all Post-Distribution Periods (other than any Straddle Periods or portion thereof), (A) Phillips 66 shall be
responsible for any and all Federal Other Taxes relating to any Phillips 66 Separate Return; and (B) ConocoPhillips shall be responsible for any and all Federal Other Taxes relating to any ConocoPhillips Separate Return. 

  
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 Section 2.03 State Tax and Tax Benefits. Except as provided in
Section 2.06, State Income Tax, State Property Tax, and State Other Tax and related Tax Benefits shall be allocated as follows: 
 (a) State Income Tax. 
 (i) For any Pre-Distribution Period
or any Straddle Period, (A) with respect to any State Income Taxes relating to any ConocoPhillips State Combined Income Tax Return or any State Separate Income Tax Return filed or required to be filed under applicable Tax Law by any member of
the ConocoPhillips Group, (I) Phillips 66 shall be responsible for any and all State Income Taxes and any reduction in any Tax Benefit attributable to, or arising with respect to or as a result of, assets or activities of the Phillips 66
Business, determined as reported on such Tax Return or as subsequently adjusted pursuant to a Final Determination (which, for the absence of doubt, means the State Income Taxes computed for the applicable entity using its respective apportionment
factor and allocated to the Phillips 66 Business pursuant to and consistent with the ConocoPhillips Past Practice); and (II) ConocoPhillips shall be responsible for any and all State Income Taxes and any reduction in any Tax Benefit other than State
Income Taxes (and any reduction in Tax Benefits) for which Phillips 66 is responsible pursuant to Section 2.03(a)(i)(A)(I); and (B) with respect to any State Income Taxes relating to any ConocoPhillips State Combined Income Tax Return or
any State Separate Income Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, (I) ConocoPhillips shall be responsible for any and all State Income Taxes and any reduction in any Tax Benefit
attributable to, or arising with respect to or as a result of, assets or activities of the ConocoPhillips Business, determined as reported on such Tax Return or as subsequently adjusted pursuant to a Final Determination (which, for the absence of
doubt, means the State Income Taxes computed for the applicable entity using its respective apportionment factor and allocated to the ConocoPhillips Business pursuant to and consistent with the ConocoPhillips Past Practice); and (II) Phillips 66
shall be responsible for any and all State Income Taxes and any reduction in any Tax Benefit other than State Income Taxes (and any reduction in Tax Benefits) for which ConocoPhillips is responsible pursuant to Section 2.03(a)(i)(B)(I).

 (ii) For any Pre-Distribution Period or any Straddle Period, subject to Section 4.07, (A) with
respect to any State Income Taxes relating to any ConocoPhillips State Combined Income Tax Return or any State Separate Income Tax Return filed or required to be filed under applicable Tax Law by any member of the ConocoPhillips Group,
(I) Phillips 66 shall be entitled to any Tax Benefit attributable to, or arising with respect to or as a result of, assets or activities of the Phillips 66 Business, determined as reported on such Tax Return or as subsequently adjusted pursuant
to a Final Determination (which, for the absence of doubt, means the Tax Benefit computed for the applicable entity using its respective apportionment factor and allocated to the Phillips 66 Business pursuant to and consistent with the
ConocoPhillips Past Practice); and (II) ConocoPhillips shall be entitled to any and all Tax Benefits other than Tax Benefits to which Phillips 66 is entitled under Section 2.03(a)(ii)(A)(I); and (B) with respect to any State Income Taxes
relating to any ConocoPhillips State Combined Income Tax Return or any State Separate Income Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, (I) ConocoPhillips shall be entitled to any
Tax Benefit attributable to, or arising with respect to or as a result of, assets or activities of the ConocoPhillips Business, determined as reported on such Tax Return or as subsequently adjusted pursuant to a Final Determination (which, for the
absence of doubt, means the 

  
 15 

 
Tax Benefit computed for the applicable entity using its respective apportionment factor and allocated to the ConocoPhillips Business pursuant to and consistent with the ConocoPhillips Past
Practice); and (II) Phillips 66 shall be entitled to any and all Tax Benefits other than Tax Benefits to which ConocoPhillips is entitled under Section 2.03(a)(ii)(B)(I). For purposes of the calculations pursuant to this
Section 2.03(a)(ii), in any Pre-Distribution Period or Straddle Period for which both Phillips 66 Tax Attributes and ConocoPhillips Tax Attributes are available for use, such Tax Attributes shall be deemed utilized in the order determined
pursuant to and consistent with the ConocoPhillips Past Practice. 
 (b) State Property Tax. (i) Phillips 66 shall
be responsible for any and all State Property Taxes imposed (whether in respect of a period, or a time, before or after the Distribution) with respect to any property owned by any member of the Phillips 66 Group immediately after the Distribution;
and (ii) ConocoPhillips shall be responsible for any and all State Property Taxes imposed with respect to any property owned by any member of the ConocoPhillips Group immediately after the Distribution or any property formerly owned by any
member of the ConocoPhillips Group or Phillips 66 Group before the Distribution other than State Property Taxes for which Phillips 66 is responsible pursuant to Section 2.03(b)(i). 

(c) State Other Tax. 
 (i) For all Pre-Distribution Periods and Straddle Periods, (A) with respect to any and all State Other Taxes relating to any Tax Return filed or required to be filed under applicable Tax Law by any
member of the ConocoPhillips Group, (I) Phillips 66 shall be responsible for any and all State Other Taxes attributable to, or arising with respect to or as a result of, assets or activities of the Phillips 66 Business; and (II) ConocoPhillips
shall be responsible for any and all other State Other Taxes; and (B) with respect to any and all State Other Taxes relating to any Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group,
(I) ConocoPhillips shall be responsible for any and all State Other Taxes attributable to, or arising with respect to or as a result of, assets or activities of the ConocoPhillips Business and (II) Phillips 66 shall be responsible for any and
all other State Other Taxes. 
 (ii) For all Post-Distribution Periods (other than any Straddle Periods or
portion thereof), (A) Phillips 66 shall be responsible for any and all State Other Taxes relating to any Phillips 66 Separate Return; and (B) ConocoPhillips shall be responsible for any and all State Other Taxes relating to any
ConocoPhillips Separate Return. 
 Section 2.04 Foreign Tax and Tax Benefits.
Subject to Section 2.05 and except as provided in Section 2.06, Foreign Income Tax, Foreign Property Tax and Foreign Other Tax and related Tax Benefits shall be allocated as follows:  

(a) Separate Return Foreign Income Tax. (i) Phillips 66 shall be responsible for any and all Foreign Income Taxes relating to
any Phillips 66 Separate Return, including Foreign Income Tax of Phillips 66 or any member of the Phillips 66 Group imposed by way of withholding by a member of the ConocoPhillips Group; and (ii) ConocoPhillips shall be responsible for any and
all Foreign Income Taxes relating to any ConocoPhillips Separate Return, including Foreign Income Tax of ConocoPhillips or any member of the ConocoPhillips Group imposed by way of 

  
 16 

 
withholding by a member of the Phillips 66 Group; provided, however, that, in any case falling within clause (i) or clause (ii), UK Corporation Tax that is to be or has been
discharged by the UK Nominated Company pursuant to the UK GPA shall be dealt with in accordance with Paragraph 2.02(a) to Paragraph 2.02(c) of Schedule 2.05. 
 (b) Foreign Property Tax. (i) Phillips 66 shall, except, for the absence of doubt, as regards VAT imposed by a UK Tax Authority to which Paragraph 2.01(b) of Schedule 2.05 applies (which shall
be dealt with in accordance with that paragraph), be responsible for any and all Foreign Property Taxes imposed (whether in respect of a period, or a time, before or after the Distribution) with respect to any property owned by any member of the
Phillips 66 Group immediately after the Distribution; and (ii) ConocoPhillips shall be responsible for any and all Foreign Property Taxes imposed with respect to any property owned by any member of the ConocoPhillips Group immediately after the
Distribution or any property formerly owned by any member of the ConocoPhillips Group or Phillips 66 Group before the Distribution other than Foreign Property Taxes for which Phillips 66 is responsible pursuant to Section 2.04(b)(i).

 (c) Foreign Other Tax. 
 (i) Subject to Section 2.04(c)(iii), for all Pre-Distribution Periods and Straddle Periods, (A) with respect to any and all Foreign Other Taxes relating to any Tax Return filed or required to be
filed under applicable Tax Law by any member of the ConocoPhillips Group, (I) Phillips 66 shall be responsible for any and all Foreign Other Taxes attributable to, or arising with respect to or as a result of, assets or activities of the
Phillips 66 Business; and (II) ConocoPhillips shall be responsible for any and all other Foreign Other Taxes; and (B) with respect to any and all Foreign Other Taxes relating to any Tax Return filed or required to be filed under applicable Tax
Law by any member of the Phillips 66 Group, (I) ConocoPhillips shall be responsible for any and all Foreign Other Taxes attributable to, or arising with respect to or as a result of, assets or activities of the ConocoPhillips Business; and (II)
Phillips 66 shall be responsible for any and all other Foreign Other Taxes. 
 (ii) Subject to
Section 2.04(c)(iii), for all Post-Distribution Periods (other than any Straddle Periods or portion thereof), (A) Phillips 66 shall be responsible for any and all Foreign Other Taxes relating to any Phillips 66 Separate Return; and
(B) ConocoPhillips shall be responsible for any and all Foreign Other Taxes relating to any ConocoPhillips Separate Return. 
 (iii) VAT imposed by a UK Tax Authority to which Paragraph 2.01(b) of Schedule 2.05 applies shall be dealt with in accordance with that paragraph. 

Section 2.05 UK Taxes. As regards UK Taxes, this Agreement applies as follows: 

(a) The provisions of Schedule 2.05 apply to the allocation of UK Taxes and to other UK Tax matters; 

(b) The other provisions of this Agreement also apply to the allocation of UK Taxes and to other UK Tax matters, except for the
following provisions, which, notwithstanding such provisions, shall not so apply: Section 2.02, Section 2.03, Section 2.07(b), Section 2.07(c), 

  
 17 

 
Section 2.08, Section 3, Section 4.02(a), Section 4.02(b), Section 4.05, Section 4.06(a), Section 4.07, Section 4.08, Section 5.02,
Section 5.03(b), Section 5.03(c), Section 5.03(d), Section 5.03(e), Section 5.04(c), Section 5.05, Section 5.06(a) (except with respect to any Federal or State Income Tax treatment of any such payments in respect
of UK Taxes made by or to ConocoPhillips, Phillips 66, ConocoPhillips Company, Phillips 66 Company or any other member of the ConocoPhillips Group or the Phillips 66 Group that is organized under the laws of the United States or any State),
Section 6, and any schedule other than Schedule 2.05; and 
 (c) In the event of conflict between the Sections of
this Agreement (other than Schedule 2.05) and the paragraphs of Schedule 2.05, the paragraphs of Schedule 2.05 prevail, save to the extent that the conflict is between the Sections of this Agreement (other than Schedule 2.05) and paragraph 1 of
Schedule 2.05, when the Sections of this Agreement prevail. 
 Section 2.06 Certain Transaction Taxes and Breaches of
Covenant. 
 (a) Phillips 66 Liability. Phillips 66 shall be liable for, and shall indemnify and hold harmless the
ConocoPhillips Group from and against any liability for: 
 (i) Any stamp, sales and use, gross receipts,
value-added or other transfer Taxes imposed by any Tax Authority on any member of the Phillips 66 Group (if such member is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions, provided that VAT imposed by a
UK Tax Authority to which Paragraph 2.01(b) of Schedule 2.05 applies shall be dealt with in accordance with that paragraph and that the consideration given by any member of the ConocoPhillips Group to any member of the Phillips 66 Group for any
chargeable supply made by a member of the Phillips 66 Group shall, unless the persons giving and receiving such consideration agree otherwise, be increased by an amount equal to the VAT chargeable; 

(ii) Any Tax resulting from a breach by Phillips 66 of any covenant in this Agreement, the Separation and Distribution
Agreement, the Indemnification and Release Agreement, or any other Ancillary Agreement; and 
 (iii) Any
Tax-Related Losses for which Phillips 66 is responsible pursuant to Section 6.04 of this Agreement. 
 (b)
ConocoPhillips Liability. Subject to Paragraph 2.01(b) of Schedule 2.05, ConocoPhillips shall be liable for, and shall indemnify and hold harmless the Phillips 66 Group from and against any liability for: 

(i) Any stamp, sales and use, gross receipts, value-added or other transfer Taxes imposed by any Tax Authority on any
member of the ConocoPhillips Group (if such member is primarily liable for such Tax or if the applicable Tax Law is silent with respect to whether any member of the ConocoPhillips Group, on the one hand, or any member of the Phillips 66 Group, on
the other hand, is primarily liable for such Tax) on the transfers occurring pursuant to the Transactions, provided that the consideration given by any member of the Phillips 66 Group to any member of the ConocoPhillips Group for any
chargeable supply made by a member of the ConocoPhillips Group shall, unless the persons giving and receiving such consideration agree otherwise, be increased by an amount equal to the VAT chargeable; and 

  
 18 

 (ii) Any Tax resulting from a breach by ConocoPhillips of any covenant in
this Agreement, the Separation and Distribution Agreement, the Indemnification and Release Agreement, or any other Ancillary Agreement. 
 (c) UK Stamp Duty. For the purposes of Section 2.06(a) and (b), the primary liability to pay any United Kingdom stamp duty arising on any instrument of transfer executed pursuant to the
Transactions shall be deemed to fall on the transferee under that instrument. 
 (d) Wrong Pocket Tax Liabilities. For
the absence of doubt, to the extent that Section 2.4(a) or Section 2.5(c) or (d) of the Separation and Distribution Agreement apply to the transfer or assignment of any Excluded Assets or Phillips 66 Assets, as applicable, or to the
assumption of any Excluded Liabilities or Phillips 66 Liabilities, as applicable, such provisions shall also apply to determine the responsibility for any Taxes (other than stamp, sales and use, gross receipts, value-added or other transfer Taxes
imposed by any Tax Authority on the transfer or assignment of any such Assets or the assumption of such Liabilities, which shall be governed by Section 2.06(a)(i) and Section 2.06(b)(i), as applicable) attributable to, or arising with
respect to or as a result of holding such Assets or Liabilities for, or transferring such Assets or Liabilities to, the member of the Group entitled to such Assets or responsible for such Liabilities under such provisions. 

Section 2.07 Tax Benefits. 
 (a) Except as set forth in Section 2.07(b), (c), and (d), provided that refunds (and any interest thereon received from a UK Tax Authority) to which paragraph 2 of Schedule 2.05 applies shall
be dealt with in accordance with that paragraph: 
 (i) Phillips 66 shall be entitled to any refund of or
reduction in otherwise required payments of (and any interest thereon received from the applicable Tax Authority) Property Taxes, Other Taxes and Foreign Income Taxes for which Phillips 66 is responsible pursuant to Section 2 and any Tax
Benefits (I) to the extent set forth in Sections 2.02(a)(ii), 2.03(a)(ii) and 2.09(b), (II) relating to Taxes for which Phillips 66 is responsible pursuant to 2.02(b)(i) or (III) relating to a Phillips 66 State Separate Income Tax Return for a
Post-Distribution Period (other than a Straddle Period); and 
 (ii) ConocoPhillips shall be entitled to any
refund of or reduction in otherwise required payments of (and any interest thereon received from the applicable Tax Authority) Income Taxes, Property Taxes and Other Taxes other than such Tax Benefits to which Phillips 66 is entitled pursuant to
Section 2.07(a)(i). 
 (iii) If Phillips 66 receives a Tax Benefit to which ConocoPhillips is entitled
pursuant to this Agreement, Phillips 66 shall pay over such Tax Benefit to ConocoPhillips as provided in Section 5 and 2.09(a)(i); and if ConocoPhillips receives a Tax Benefit to which Phillips 66 is entitled pursuant to this Agreement,
ConocoPhillips shall pay over such Tax Benefit to Phillips 66 as provided in Section 5 and 2.09(a)(i). 

  
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 (b) Refunds Attributable to a Phillips 66 Carryback. For the absence of doubt,
Phillips 66 shall be entitled to any refund of or reduction in otherwise required payments of any Federal Tax or State Tax, as applicable, with respect to any Joint Return which refund or reduction is attributable to, and would not have arisen but
for, a Phillips 66 Carryback pursuant to the proviso set forth in Section 4.07. 
 (c) Phillips 66 Minimum Tax
Credits. Phillips 66 shall pay to ConocoPhillips an amount equal to the minimum tax credit under Section 53 of the Code allocated to the Phillips 66 Group by ConocoPhillips pursuant to Section 4.08. 

(d) Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation. Solely the member of the Group for which
the relevant individual is currently employed or, if such individual is not currently employed by a member of the Group, was most recently employed at the time of the vesting, exercise, disqualifying disposition, payment or other relevant taxable
event, as appropriate, in respect of the equity awards and other incentive compensation described in Article IV of the Employee Matters Agreement shall be entitled to claim any Income Tax deduction in respect of such equity awards and other
incentive compensation on its respective Tax Return associated with such event. 
 Section 2.08 Special Allocation and
Computational Rules.  
 (a) For purposes of Sections 2.02(a), 2.02(c)(i), 2.03(a), 2.03(c)(i), and 2.04(c)(i),
any and all Tax Items (including, for the absence of doubt, Tax Items with respect to intercompany transactions between members of the ConocoPhillips Group and the Phillips 66 Group) shall be allocated to the assets and activities of the
ConocoPhillips Business, on the one hand, and the assets and activities of the Phillips 66 Business, on the other hand, as applicable pursuant to and consistent with the ConocoPhillips Past Practice. 

(b) ConocoPhillips shall determine the allocations described in Section 2.08(a), the Federal Income Taxes or State Income
Taxes, as applicable (or Tax Benefits or reductions in Tax Benefits, as applicable) and any Other Taxes, as applicable, attributable to, or arising with respect to or as a result of, assets or activities of the Phillips 66 Business or the
ConocoPhillips Business, the utilization of foreign tax credits under Section 901 by the Phillips 66 Business and the Taxes (or reductions in Tax Benefits) that would not have arisen but for the utilization of foreign tax credits by the
Phillips 66 Business. In connection with any relevant demand for payment under Section 5, ConocoPhillips shall provide Phillips 66 with written notice containing a reasonably detailed summary of any such relevant determinations and timely
respond to any reasonable requests from Phillips 66 for additional information with respect to any such determinations. Notwithstanding anything to the contrary in this Agreement, such determinations by ConocoPhillips shall, in the absence of bad
faith or clear error, be conclusive. 
 Section 2.09 Deductible and Includible Tax Payments. Notwithstanding any
other provision in this Agreement, without duplication for any amounts otherwise required to be paid hereunder (and provided that, for the absence of doubt, this Section 2.09 shall not apply to payments required to be made pursuant to Paragraph
2 of Schedule 2.05), (a) in the event that any Company (the “Benefit Intercompany Payor”) is required to pay over a Tax Benefit to the other Company (the “Benefit Intercompany Payee”) hereunder, (i) the
Benefit Intercompany Payor shall also pay over to the Benefit Intercompany Payee any interest relating thereto that is 

  
 20 

 
received (by way of offset or otherwise) by the Benefit Intercompany Payor or any of its Affiliates from the applicable Tax Authority and (ii) the Benefit Intercompany Payee shall be
required to pay to the Benefit Intercompany Payor the amount of any Tax (or any reduction in Tax Benefit) actually suffered in cash by the Benefit Intercompany Payor or any of its Affiliates resulting (on a “with and without” basis) from
the receipt by the Benefit Intercompany Payor or any of its Affiliates of the Tax Benefit from the applicable Tax Authority and (b) in the event that any Company (the “Tax Intercompany Payor”) is required to pay the other
Company (the “Tax Intercompany Payee”) hereunder in respect of a Tax (or reduction in any Tax Benefit), (i) for the absence of doubt, the Tax Intercompany Payor shall pay to the Tax Intercompany Payee any interest or penalties
relating thereto that is required to be paid (by way of offset or otherwise) by the Tax Intercompany Payee or any of its Affiliates to the applicable Tax Authority and (ii) the Tax Intercompany Payee shall be required to pay to the Tax
Intercompany Payor the amount of any Tax Benefit actually realized in cash by the Tax Intercompany Payee or any of its Affiliates resulting (on a “with and without” basis) from the payment by the Tax Intercompany Payee or any of its
Affiliates of the Tax to the applicable Tax Authority (or the reduction in Tax Benefit). Any amounts required to be paid pursuant to this Section 2.09 shall be calculated or recalculated, as applicable, in light of any Final Determination or
any other facts that may arise or come to light after a payment is made pursuant to this Section 2.09 that would affect any amount required to be paid pursuant to this Section 2.09, and an appropriate adjusting payment shall be made
(without duplication) by Phillips 66 or ConocoPhillips, as applicable, such that the aggregate amounts paid pursuant to this Section 2.09 reflect such recalculated amount. 

Section 3. Proration of Taxes for Straddle Periods. 
 (a) General Method of Proration. In the case of any Straddle Period, Tax Items shall be apportioned between Pre-Distribution Periods and Post-Distribution Periods in accordance with the principles
of Treasury Regulation Section 1.1502-76(b) as reasonably interpreted and applied by the Companies. No election shall be made under Treasury Regulation Section 1.1502-76(b)(2)(ii) (relating to ratable allocation of a year’s Tax
Items). If the Distribution Date is not an Accounting Cutoff Date, the provisions of Treasury Regulation Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the Tax Items (other than extraordinary items) for the month which
includes the Distribution Date. 
 (b) Transaction Treated as Extraordinary Item. In determining the apportionment of Tax
Items between Pre-Distribution Periods and Post-Distribution Periods, any Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulation Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent
occurring on or prior to the Distribution Date) be allocated to Pre-Distribution Periods, and any Taxes related to such items shall be treated under Treasury Regulation Section 1.1502-76(b)(2)(iv) as relating to such extraordinary item and
shall (to the extent occurring on or prior to the Distribution Date) be allocated to Pre-Distribution Periods. 

Section 4. Preparation and Filing of Tax Returns. 
 Section 4.01 General. Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed when due (including extensions) by the person obligated to file such Tax
Returns under the Code or applicable Tax Law. The Companies shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with Section 7 with respect to the preparation and filing of Tax
Returns, including providing information required to be provided in Section 7. 

  
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 Section 4.02 ConocoPhillips’s Responsibility. ConocoPhillips has the
exclusive obligation and right to prepare and file, or to cause to be prepared and filed: 
 (a) ConocoPhillips Federal
Consolidated Income Tax Returns for any Tax Periods ending on, before or after the Distribution Date; 
 (b) Except for
Tax Returns required to be filed under applicable Tax Law by a member of the Phillips 66 Group, (i) ConocoPhillips State Combined Income Tax Returns and (ii) any other Joint Returns which ConocoPhillips reasonably determines are required
to be filed (or which ConocoPhillips chooses to be filed) by the Companies or any of their Affiliates for Tax Periods ending on, before or after the Distribution Date; provided, however, that if such ConocoPhillips State Combined Income Tax
Return or other Joint Return, as applicable, has not previously been filed by the Companies or any of their Affiliates in the applicable jurisdiction, ConocoPhillips shall provide written notice of such determination to file such ConocoPhillips
State Combined Income Tax Returns or other Joint Returns to Phillips 66; and 
 (c) ConocoPhillips Separate Returns which
ConocoPhillips reasonably determines are required to be filed by the Companies or any of their Affiliates for Tax Periods ending on, before or after the Distribution Date. 
 Section 4.03 Phillips 66’s Responsibility. Phillips 66 shall prepare and file, or shall cause to be prepared and filed, all Tax Returns required to be filed by or with respect to members
of the Phillips 66 Group other than those Tax Returns which ConocoPhillips is required to prepare and file under Section 4.02. For the absence of doubt, the Tax Returns required to be prepared and filed by Phillips 66 under this
Section 4.03 shall include (a) any Phillips 66 Federal Consolidated Income Tax Return for Tax Periods ending after the Distribution Date and (b) Phillips 66 Separate Returns required to be filed for Tax Periods ending on, before or
after the Distribution Date. 
 Section 4.04 Tax Return Filing and Past Practices. 

(a) General Rule. Except as provided in Section 4.04(b), with respect to any Tax Return that Phillips 66 has the obligation
and right to prepare and file, or cause to be prepared and filed, under Section 4.03, to the extent Tax Items reported on such Tax Return might reasonably be expected to affect Taxes (or rights to Tax Benefits) for which ConocoPhillips is
responsible (or to which ConocoPhillips is entitled) under this Agreement, such Tax Return shall, in the case of a Tax Return that is not a UK Tax Return, be prepared in accordance with the past practice of the ConocoPhillips Group in determining
accrued assets and liabilities for cash taxes on the books and records of ConocoPhillips and its subsidiaries and the past return filing practice of the ConocoPhillips Group with respect to the relevant Tax Return (including any past accounting
methods, elections and conventions) (the “ConocoPhillips Past Practice”) and, in the case of a UK Tax Return, on a basis which is consistent with the basis on which UK Tax Documents already submitted by or on behalf of the relevant
taxpayer to HM Revenue & Customs were prepared and filed (the “ConocoPhillips UK Tax Practice”), unless (i) any Tax Items with respect to the Tax Returns in question are not covered by the ConocoPhillips Past Practice
or the 

  
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ConocoPhillips UK Tax Practice (as relevant) (in which case, with respect to such Tax Items, such Tax Returns shall be prepared in accordance with reasonable Tax accounting practices selected by
ConocoPhillips), (ii) no Substantial Authority exists for the ConocoPhillips Past Practice or the ConocoPhillips UK Tax Practice (as relevant) with respect to any Tax Items reportable on the Tax Returns in question (in which case, with respect
to such Tax Items, such Tax Returns shall be prepared in accordance with reasonable Tax accounting practices selected by ConocoPhillips), or (iii) there is no adverse effect to ConocoPhillips (in which case, the Tax Returns in question shall be
prepared in accordance with reasonable Tax accounting practices selected by Phillips 66). 
 (b) Reporting of
Transactions. The Tax treatment of the Transactions reported on any Tax Return shall be consistent with the treatment thereof in the Ruling Requests and the Tax Opinions/Rulings, unless there is no reasonable basis for such Tax treatment. To the
extent there is a Tax treatment relating to the Transactions which is not covered by the Ruling Requests or the Tax Opinions/Rulings, the Tax treatment of the Transactions reported on any Tax Return for which Phillips 66 is the Responsible Party
shall be consistent with that on any Tax Return filed or to be filed by ConocoPhillips or any member of the ConocoPhillips Group or caused or to be caused to be filed by ConocoPhillips (“ConocoPhillips Group Transaction Returns”),
unless there is no reasonable basis for such Tax treatment. To the extent there is a Tax treatment relating to the Transactions which is not covered by the Ruling Requests, the Tax Opinions/Rulings or ConocoPhillips Group Transaction Returns, the
Companies shall agree on the Tax treatment to be reported on any Tax Return. For this purpose, the Tax treatment shall be determined by ConocoPhillips and shall be agreed to by Phillips 66 unless either (i) no Substantial Authority exists for
the technical merits of the position, or (ii) such Tax treatment is inconsistent with the Tax treatment contemplated in the Ruling Requests, the Tax Opinions/Rulings and/or the ConocoPhillips Group Transaction Returns. Any dispute regarding
such Tax treatment shall be referred for resolution pursuant to Section 12, sufficiently in advance of the filing date of such Tax Return (including extensions) to permit timely filing of the Tax Return. 

Section 4.05 Consolidated or Combined Tax Returns. Phillips 66 will elect and join, and will cause its respective Affiliates
to elect and join, in filing any ConocoPhillips State Combined Income Tax Returns and any Joint Returns that ConocoPhillips determines are required to be filed or that ConocoPhillips chooses to file pursuant to Section 4.02(b). 

Section 4.06 Right to Review Tax Returns. 
 (a) ConocoPhillips Federal Consolidated Income Tax Returns and ConocoPhillips State Combined Income Tax Returns. ConocoPhillips shall make any ConocoPhillips Federal Consolidated Income Tax Return
and ConocoPhillips State Combined Income Tax Return (other than any such Tax Return for which Phillips 66 is the Responsible Company) and any workpapers related to any such Tax Return available for review by Phillips 66, if requested by Phillips 66.
ConocoPhillips shall use its reasonable best efforts to make such Tax Return available to Phillips 66 for review and comment as required under this paragraph prior to the due date (including extensions) for filing of such Tax Return. Phillips 66
shall use reasonable best efforts to respond in writing to ConocoPhillips with any comments no later than the date on which ConocoPhillips files such Tax Return with the applicable Tax Authority, provided, however that Phillips 66’s
comments shall be limited to the reporting of any material Tax Item 

  
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on such Tax Return with respect to which Phillips 66 reasonably believes that no Substantial Authority exists for the technical merits of the position. ConocoPhillips shall reasonably consider
such comments with respect to the reporting of any such material Tax Item on such Return (including considering whether to revise the reporting of such Tax Item on such Tax Return prior to filing such Tax Return with the applicable Tax Authority,
file an amended Tax Return with the applicable Tax Authority revising the reporting of such Tax Item, or pursue an adjustment to the reporting of such Tax Item in connection with a Tax Contest with respect to such Tax Return or make no change).

 (b) Certain Other Joint Returns and Separate Returns. The Responsible Company with respect to any material Joint
Return (other than any ConocoPhillips Consolidated Federal Income Tax Return or any ConocoPhillips State Combined Income Tax Return for which ConocoPhillips is the Responsible Company) or material Separate Return shall make such Tax Return and
related workpapers available for review by the other Company, if requested by the other Company, to the extent (i) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to be liable under applicable Tax
Law or responsible under this Agreement, (ii) such Tax Return relates to Taxes and the requesting party would reasonably be expected to be liable under applicable Tax Law or responsible under this Agreement in whole or in part for any
additional Taxes owing as a result of adjustments to the amount of such Taxes reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to have a claim for Tax Benefits under
this Agreement, (iv) the requesting party reasonably determines that it must inspect such Tax Return to confirm compliance with the terms of this Agreement, (v) such Tax Return relates to an Agreed UK Group Relief Surrender, or
(vi) such Tax Return relates to a Transfer Pricing Adjustment relating to a transaction or transactions involving a member of the requesting party’s Group. The Responsible Company shall use its reasonable best efforts to make such Tax
Return available for review and comment as required under this paragraph prior to the due date (including extensions) for filing of such Tax Return. The requesting party shall use reasonable best efforts to respond in writing to the Responsible
Party with any comments no later than the date on which the Responsible Party files such Tax Return with the applicable Tax Authority provided, however that (x) if ConocoPhillips is the Responsible Company, Phillips 66’s comments
shall be limited to the reporting of any material Tax Item on such Tax Return with respect to which Phillips 66 reasonably believes that no Substantial Authority exists for the technical merits of the position and (y) if Phillips 66 is the
Responsible Company, ConocoPhillips’ comments shall be limited to the reporting of any material Tax Item on such Tax Return with respect to which ConocoPhillips reasonably believes that no Substantial Authority exists for the technical merits
of the position or the reporting of any Tax Item on such Tax Return in accordance with this Agreement or the ConocoPhillips Past Practice or ConocoPhillips UK Tax Practice, as applicable. The Responsible Party shall reasonably consider such comments
with respect to the reporting of any such material Tax Item on such Return (including considering whether to revise the reporting of such Tax Item on such Tax Return prior to filing such Tax Return with the applicable Tax Authority, file an amended
Tax Return with the applicable Tax Authority revising the reporting of such Tax Item, or pursue an adjustment to the reporting of such Tax Item in connection with a Tax Contest with respect to such Tax Return or make no change). 

  
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 (c) Execution of Returns Prepared by Other Party. In the case of any Tax Return which
is required to be prepared and filed by one Company under this Agreement and which is required by Law to be signed by the other Company or its Affiliate (or by an authorized representative thereof), the Company which is legally required to sign such
Tax Return (or whose Affiliate is legally required to sign or an authorized representative thereof) shall not be required to sign such Tax Return under this Agreement if there is no reasonable basis for the Tax treatment of any Tax Item reported on
the Tax Return or the Tax treatment of any Tax Item reported on the Tax Return should, in the opinion of a Tax advisor from a nationally recognized legal, accounting or professional tax services firm, subject the other Company or its Affiliate (or
its authorized representatives) to material penalties. 
 Section 4.07 Phillips 66 Carrybacks and Claims for Refund.
Phillips 66 hereby agrees that, unless ConocoPhillips consents in writing, (a) no Adjustment Request with respect to any Joint Return shall be filed, and (b) any available elections to waive the right to claim in any Pre-Distribution
Period with respect to any Joint Return any Phillips 66 Carryback arising in a Post-Distribution Period shall be made, and no affirmative election shall be made to claim any such Phillips 66 Carryback; provided, however, that the parties
agree that any such Adjustment Request shall be made with respect to any Phillips 66 Carryback related to Federal Taxes or State Taxes, as applicable, upon the reasonable request of Phillips 66, if such Phillips 66 Carryback is necessary to prevent
the loss of the Federal and/or State Tax Benefit of such Phillips 66 Carryback (including, but not limited to, an Adjustment Request with respect to a Phillips 66 Carryback of a capital loss for Federal and/or State Tax purposes arising in a
Post-Distribution Period to a Pre-Distribution Period) and such Adjustment Request, based on ConocoPhillips’ sole, reasonable determination, will cause no Tax detriment to ConocoPhillips, the ConocoPhillips Group or any member of the
ConocoPhillips Group. Any Adjustment Request which ConocoPhillips consents to make under this Section 4.07 shall be prepared and filed by the Responsible Company for the Joint Return to be adjusted. 

Section 4.08 Apportionment of Earnings and Profits and Tax Attributes. ConocoPhillips shall in good faith advise Phillips 66
in writing of the portion, if any, of any earnings and profits, Tax Attribute, overall foreign loss or other consolidated, combined or unitary attribute which ConocoPhillips determines shall be allocated or apportioned to the Phillips 66 Group under
applicable Law. Phillips 66 and all members of the Phillips 66 Group shall prepare all Tax Returns in accordance with such written notice. In the event that any temporary or final amendments to Treasury Regulations are promulgated after the date of
this Agreement that provide for any election to apply such regulations retroactively, then any such election shall be made only to the extent that ConocoPhillips determines to make such election. As soon as practicable after receipt of a written
request from Phillips 66, ConocoPhillips shall provide copies of any studies, reports, and workpapers supporting the earnings and profits and other Tax Attributes allocable to Phillips 66. In the event of a subsequent adjustment to the earnings and
profits or any Tax Attributes determined by ConocoPhillips, ConocoPhillips shall promptly notify Phillips 66 in writing of such adjustment. For the absence of doubt, ConocoPhillips shall not be liable to Phillips 66 or any member of the Phillips 66
Group for any failure of any determination under this Section 4.08 to be accurate under applicable Law. 

  
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 Section 5. Due Date for Payments and Related Matters. 

Section 5.01 General Rule. 
 (a) The due date for payment of any liability of one Company to the other Company under this Agreement shall be as follows: 

(i) In the case of any liability of one Company to the other Company under Section 2 for which Section 5.02
through Section 5.07 specify a due date for payment of such liability, the due date for payment of such liability shall be as so specified in Section 5.02 through Section 5.07. 

(ii) In the case of any liability of one Company to the other Company under Schedule 2.05 for which Schedule 2.05
specifies a due date for payment of such liability, the due date for payment of such liability shall be as so specified in Schedule 2.05. 
 (iii) In the case of any other liability under this Agreement, the due date for payment of such liability shall be within the later of (x) 30 days following the date of receipt of a written notice
and demand from ConocoPhillips or Phillips 66, as applicable, for payment of the liability due (provided, in the case of any liability in respect of a refund, that ConocoPhillips or Phillips 66, as applicable, is aware of the receipt by the other
Group of such refund) and (y) in the case of any liability in respect of a refund, within 30 days following the date of receipt of such refund from the relevant Tax Authority and, in the case of any liability in respect of Taxes payable to the
relevant Tax Authority, the due date for payment of such Taxes to the relevant Tax Authority. 
 (b) All payments under
this Agreement shall be made by ConocoPhillips directly to Phillips 66 and by Phillips 66 directly to ConocoPhillips; provided, however, that if the Companies mutually agree with respect to any such payment, any member of the ConocoPhillips
Group, on the one hand, may make such payment to any member of the Phillips 66 Group, on the other hand, and vice versa. 

Section 5.02 ConocoPhillips Federal Consolidated Income Tax Returns, ConocoPhillips State Combined Income Tax Returns and State
Separate Income Tax Returns. In the case of (x) any ConocoPhillips Federal Consolidated Income Tax Return, (y) any ConocoPhillips State Combined Income Tax Return, and (z) any State Separate Income Tax Return, as applicable, in
each case for any Pre-Distribution Period or any Straddle Period (including, for the absence of doubt, amended Tax Returns): 

(a) Taxes Shown as Due on Tax Return. The Responsible Company shall compute the amount of Tax required to be paid to the
applicable Tax Authority (taking into account the requirements of Section 4.04) with respect to such Tax Return in respect of a Payment Date. In the case of any such Tax Return filed or required to be filed under applicable Tax Law by any
member of the ConocoPhillips Group, ConocoPhillips shall pay (or cause to be paid) such amount to such Tax Authority on or before such Payment Date (and provide notice and proof of payment to Phillips 66) and, in the case of any such Tax Return
filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, Phillips 66 shall pay (or cause to be paid) such amount to such Tax Authority on or before such Payment Date (and provide notice and proof of payment to
ConocoPhillips). 

  
 26 

 (b) Accrual-to-Return Payment. 

(i) Tax Returns Filed by ConocoPhillips Group Member. In the case of any such Tax Return for any Pre-Distribution
Tax Period that ends during 2011 or 2012 or any Straddle Period filed or required to be filed under applicable Tax Law by any member of the ConocoPhillips Group: 

(A) (I) Phillips 66 shall be deemed to have paid ConocoPhillips on the Distribution Date an amount equal to any
liability for cash Federal Income Taxes or State Income Taxes, as applicable, with respect to such Tax Return to the extent such Federal Income Taxes (other than alternative minimum Taxes) or State Income Taxes, as applicable, have been accrued as
of the Distribution Date on the books and records of ConocoPhillips and its subsidiaries (“Accrued”) and allocated to the Phillips 66 Business (including any member of the Phillips 66 Group) as of the Distribution Date (which
accruals and allocations, for the absence of doubt, (x) may be computed after the Distribution Date as of the Distribution Date and which shall be recomputed as of the Distribution Date to take account of any Tax Return that is filed in respect
of such Taxes and (y) shall not include any reserves for financial accounting purposes in respect of Taxes that may arise upon audit) (with respect to such Federal Income Taxes, the “Accrued Phillips 66 Federal Income Tax
Liability,” and such State Income Taxes, the “Accrued Phillips 66 State Income Tax Liability” and, collectively, the “Accrued Phillips 66 Income Tax Liability”); and (II) ConocoPhillips shall be deemed to
have paid Phillips 66 on the Distribution Date an amount equal to any reduction of Federal Income Taxes or State Income Taxes, as applicable, otherwise due with respect to such Tax Return to the extent such reduction in Federal Income Taxes or State
Income Taxes, as applicable, has been Accrued and allocated to the Phillips 66 Business (including any member of the Phillips 66 Group) as of the Distribution Date (which accruals and allocations, for the absence of doubt, (x) may be computed
after the Distribution Date as of the Distribution Date and which shall be recomputed as of the Distribution Date to take account of any Tax Return that is filed in respect of such Taxes and (y) shall not include any reserves for financial
accounting purposes in respect of Taxes that may arise upon audit) (with respect to such Federal Income Taxes, the “Accrued Phillips 66 Federal Income Tax Asset,” and such State Income Taxes, the “Accrued Phillips 66 State
Income Tax Asset,” and, collectively, the “Accrued Phillips 66 Income Tax Asset”). 

(B) Within 120 days following the earlier of (y) the due date (including extensions) for filing such Tax Return, or
(z) the date on which such Tax Return is filed: 
 (I) In the case of any Accrued Phillips 66 Federal Income
Tax Liability or Accrued Phillips 66 State Income Tax Liability, as applicable, with respect to such Tax Return (1) if Phillips 66 is responsible for Federal Income 

  
 27 

 
Taxes or State Income Taxes, as applicable, shown as due on such Tax Return (for the absence of doubt, without regard to any estimated, installment, or other advance payments or minimum tax
credits) pursuant to Section 2.02(a) or 2.03(a) (or if Phillips 66 is neither responsible for any Federal Income Taxes or State Income Taxes, as applicable, shown as due on such Tax Return nor entitled to any Tax Benefit with respect to such
Tax Return) (for this purpose, determined without regard to Section 5.02(b)(i)(A)), (x) Phillips 66 shall pay ConocoPhillips an amount equal to the excess, if any, of the amount of such Federal Income Taxes or State Income Taxes, as
applicable, for which Phillips 66 is responsible, if any, over such Accrued Phillips 66 Federal Income Tax Liability or Accrued Phillips 66 State Income Tax Liability, as applicable, and (y) ConocoPhillips shall pay Phillips 66 an amount equal
to the excess, if any, of such Accrued Phillips 66 Federal Income Tax Liability or Accrued Phillips 66 State Income Tax Liability, as applicable, over the amount of such Federal Income Taxes or State Income Taxes, as applicable, for which Phillips
66 is responsible, if any; and (2) if Phillips 66 is entitled to any Tax Benefit (other than any alternative minimum Tax Benefit) with respect to such Tax Return pursuant to Section 2.02(a)(ii) or Section 2.03(a)(ii), as applicable,
ConocoPhillips shall pay Phillips 66 an amount equal to the sum of such Tax Benefit to which Phillips 66 is entitled and the amount of any such Accrued Phillips 66 Federal Income Tax Liability or Accrued Phillips 66 State Income Tax Liability, as
applicable; and 
 (II) In the case of any Accrued Phillips 66 Federal Income Tax Asset or Accrued Phillips 66
State Income Tax Asset, as applicable, with respect to such Tax Return, (1) if Phillips 66 is entitled to any Tax Benefit (other than alternative minimum Tax Benefit) with respect to such Tax Return pursuant to Section 2.02(a)(ii) or
Section 2.03(a)(ii), as applicable (or if Phillips 66 is neither entitled to any Tax Benefit with respect to such Tax Return nor responsible for any Federal Income Taxes or State Income Taxes, as applicable shown as due on such Tax Return) (for
the absence of doubt, without regard to any estimated, installment, or other advance payments or minimum tax credit) (for this purpose, determined without regard to Section 5.02(b)(i)(A)), (x) ConocoPhillips shall pay Phillips 66 an amount
equal to the excess, if any, of the amount of such Tax Benefit to which Phillips 66 is entitled, if any, over such Accrued Phillips 66 Federal Income Tax Asset or Accrued Phillips 66 State Income Tax Asset, as applicable; and (y) Phillips 66
shall pay ConocoPhillips an amount equal to the excess, if any, of such Accrued Phillips 66 Federal Income Tax Asset or Accrued Phillips 66 State Income Tax Asset, as applicable, over the amount of any such Tax Benefit, if any; and (2) if
Phillips 66 is responsible for Federal Income Taxes or State Income Taxes, as applicable, shown as due on such Tax Return (for the absence of doubt, without regard to any estimated, installment, minimum tax credits or other advance payments)
pursuant to Section 2.02(a) or 2.03(a) (for this purpose, determined without regard to Section 5.02(b)(i)(A)), Phillips 66 shall pay ConocoPhillips an amount equal to the sum of the amount of such Federal Income Taxes or State Income
Taxes, as applicable, for which Phillips 66 is responsible and the amount of such Accrued Phillips 66 Federal Income Tax Asset or Accrued Phillips 66 State Income Tax Asset, as applicable. 

  
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 (ii) Tax Returns Filed by Phillips 66 Group Member. In the case of
any such ConocoPhillips State Combined Income Tax Return or State Separate Income Tax Return, as applicable, for any Pre-Distribution Tax Period that ends during 2011 or 2012 or any Straddle Period filed or required to be filed under applicable Tax
Law by any member of the Phillips 66 Group: 
 (A) (I) ConocoPhillips shall be deemed to have paid Phillips
66 on the Distribution Date an amount equal to any liability for cash State Income Taxes with respect to such Tax Return to the extent such State Income Taxes have been Accrued as of the Distribution Date and allocated to the ConocoPhillips Business
(including any member of the ConocoPhillips Group) as of the Distribution Date (which accrual and allocation, for the absence of doubt, (x) may be computed after the Distribution Date as of the Distribution Date and which shall be recomputed as
of the Distribution Date to take account of any Tax Return that is filed in respect of such Taxes and (y) shall not include any reserves for financial accounting purposes in respect of Taxes that may arise upon audit) (with respect to such
State Income Taxes, the “Accrued ConocoPhillips State Income Tax Liability”)); and (II) Phillips 66 shall be deemed to have paid ConocoPhillips on the Distribution Date an amount equal to any reduction of State Income Taxes
otherwise due with respect to such Tax Return to the extent such reduction in State Income Taxes has been Accrued and allocated to the ConocoPhillips Business (including any member of the ConocoPhillips Group) as of the Distribution Date (which
accruals and allocations, for the absence of doubt, (x) may be computed after the Distribution Date as of the Distribution Date and which shall be recomputed as of the Distribution Date to take account of any Tax Return that is filed in respect
of such Taxes and (y) shall not include any reserves for financial accounting purposes in respect of Taxes that may arise upon audit) (with respect to such State Income Taxes, the “Accrued ConocoPhillips State Income Tax
Asset”). 
 (B) Within 120 days following the earlier of (y) the due date (including extensions)
for filing such Tax Return, or (z) the date on which such Tax Return is filed: 
 (I) In the case of any
Accrued ConocoPhillips State Income Tax Liability with respect to such Tax Return (1) if ConocoPhillips is responsible for any State Income Taxes shown as due on such Tax Return (for the absence of doubt, without regard to any estimated,
installment, or other advance payments or minimum tax credits) pursuant to Section 2.03(a) (or if ConocoPhillips is neither responsible for State Income Taxes shown as due on such Tax Return nor entitled to any Tax Benefit with respect to such
Tax Return) (for this purpose, determined without regard to Section 5.02(b)(ii)(A)), (x) ConocoPhillips shall pay Phillips 66 an amount equal to the excess, if any, of the amount of such State Income Taxes for which ConocoPhillips is
responsible, if any, over such Accrued ConocoPhillips State Income Tax Liability and (y) Phillips 66 shall pay ConocoPhillips an amount equal to the excess, if any, of such Accrued 

  
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ConocoPhillips State Income Tax Liability over the amount of such State Income Taxes for which ConocoPhillips is responsible, if any; and (2) if ConocoPhillips is entitled to any Tax Benefit
with respect to such Tax Return pursuant to this Agreement, Phillips 66 shall pay ConocoPhillips an amount equal to the sum of such Tax Benefit to which ConocoPhillips is entitled and the amount of any such Accrued ConocoPhillips State Income Tax
Liability; and 
 (II) In the case of any Accrued ConocoPhillips State Income Tax Asset with respect to such Tax
Return, (1) if ConocoPhillips is entitled to any Tax Benefit with respect to such Tax Return pursuant to this Agreement (or if ConocoPhillips is neither entitled to any Tax Benefit with respect to such Tax Return nor responsible for any State
Income Taxes shown as due on such Tax Return) (for the absence of doubt, without regard to any estimated, installment, or other advance payments or minimum tax credit) (for this purpose, determined without regard to Section 5.02(b)(ii)(A)),
(x) Phillips 66 shall pay ConocoPhillips an amount equal to the excess, if any, of the amount of such Tax Benefit to which ConocoPhillips is entitled, if any, over such Accrued ConocoPhillips State Income Tax Asset; and (y) ConocoPhillips
shall pay Phillips 66 an amount equal to the excess, if any, of such Accrued ConocoPhillips State Income Tax Asset over the amount of any such Tax Benefit, if any; and (2) if ConocoPhillips is responsible for State Income Taxes shown as due on
such Tax Return (for the absence of doubt, without regard to any estimated, installment, minimum tax credits or other advance payments) pursuant to Section 2.03(a) (for this purpose, determined without regard to Section 5.02(b)(ii)(A)),
ConocoPhillips shall pay Phillips 66 an amount equal to the sum of the amount of such State Income Taxes for which ConocoPhillips is responsible and the amount of such Accrued ConocoPhillips State Income Tax Asset. 

(c) Phillips 66 Minimum Tax Credits Payment. Within 120 days after the date on which the ConocoPhillips Federal Consolidated
Income Tax Return for the Straddle Period is filed, Phillips 66 shall pay ConocoPhillips any amount for which Phillips 66 is responsible pursuant to Section 2.07(c). 
 (d) Taxes Resulting from Adjustment. In the case of any adjustment pursuant to a Final Determination with respect to such Tax Return, (A) in the case of any such Tax Return filed or required
to be filed under applicable Tax Law by any member of the ConocoPhillips Group, ConocoPhillips shall pay (or cause to be paid) to the applicable Tax Authority when due any additional Tax due with respect to such Tax Return required to be paid as a
result of such adjustment; and (B) in the case of any such Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, Phillips 66 shall pay (or cause to be paid) to the applicable Tax Authority
when due any additional Tax due with respect to such Tax Return as a result of such adjustment. 
 (e)
Return-to-Adjustment Payments. In the case of any adjustment pursuant to a Final Determination with respect to such Tax Return, within 30 days following the later of (x) the date any additional Federal Income Tax or State Income Tax, as
applicable, was paid by ConocoPhillips or Phillips 66, as applicable, with respect to such Tax Return as a result of such 

  
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adjustment (or any Tax Benefit was actually reduced in cash or Tax Benefit is actually received in cash) or (y) the date of receipt of a written notice and demand from ConocoPhillips or
Phillips 66, as applicable, following such Final Determination for payment of the amount due: 
 (i) In the case
of any such Tax Return filed or required to be filed under applicable Tax Law by any member of the ConocoPhillips Group, (A) Phillips 66 shall pay ConocoPhillips (x) any Federal Income Tax or State Income Tax, as applicable, due with
respect to such Tax Return or any reduction in any Tax Benefit for which Phillips 66 is responsible pursuant to Section 2.02(a) or 2.03(a) as a result of such adjustment and (y) any amount required to be paid by Phillips 66 to
ConocoPhillips pursuant to Section 2.07 with respect to such Tax Return as a result of such adjustment; and (B) ConocoPhillips shall pay Phillips 66 (x) any reduction in any Tax Benefit for which ConocoPhillips is responsible pursuant
to Section 2.02(a) or 2.03(a) and to which Phillips 66 is entitled pursuant to Section 2.02(a) or 2.03(a) as a result of such adjustment and (y) any amount required to be paid by ConocoPhillips to Phillips 66 pursuant to
Section 2.07 with respect to such Tax Return as a result of such adjustment; and 
 (ii) In the case of any
such Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, (A) ConocoPhillips shall pay Phillips 66 (x) any State Income Tax due with respect to such Tax Return or any reduction in any
Tax Benefit for which ConocoPhillips is responsible pursuant to Section 2.03(a) as a result of such adjustment and (y) any amount required to be paid by ConocoPhillips to Phillips 66 pursuant to Section 2.07 with respect to such Tax
Return as a result of such adjustment; and (B) Phillips 66 shall pay ConocoPhillips (x) any reduction in any Tax Benefit for which Phillips 66 is responsible pursuant to Section 2.03(a) and to which ConocoPhillips is entitled pursuant
to Section 2.03(a) as a result of such adjustment and (y) any amount required to be paid by Phillips 66 to ConocoPhillips pursuant to Section 2.07 with respect to such Tax Return as a result of such adjustment. 

Section 5.03 Other Taxes. In the case of any Tax Return with respect to Other Taxes for the Pre-Distribution Period or
Straddle Period (including, for the absence of doubt, amended Tax Returns): 
 (a) Taxes Shown as Due on Tax Return. The
Responsible Company shall compute the amount of Tax required to be paid to the applicable Tax Authority (taking into account the requirements of Section 4.04) with respect to such Tax Return in respect of a Payment Date. In the case of any such
Tax Return filed or required to be filed under applicable Tax Law by any member of the ConocoPhillips Group, ConocoPhillips shall pay (or cause to be paid) such amount to such Tax Authority on or before such Payment Date (and provide notice and
proof of payment to Phillips 66) and, in the case of any such Tax Return filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, Phillips 66 shall pay (or cause to be paid) such amount to such Tax Authority on
or before such Payment Date (and provide notice and proof of payment to ConocoPhillips). 

  
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 (b) Accrual-to-Return Payment. 

(i) Tax Returns Filed by ConocoPhillips Group Member. In the case of any such Tax Return for any Pre-Distribution
Tax Period that ends during 2011 or 2012 or any Straddle Period filed or required to be filed under applicable Tax Law by any member of the ConocoPhillips Group: 

(A) Phillips 66 shall be deemed to have paid ConocoPhillips on the Distribution Date an amount equal to any liability for
cash Other Taxes with respect to such Tax Return to the extent such Other Taxes have been Accrued and allocated to the Phillips 66 Business (including any member of the Phillips 66 Group) as of the Distribution Date (which accruals and allocations,
for the absence of doubt, (x) may be computed after the Distribution Date as of the Distribution Date and which shall be recomputed as of the Distribution Date to take account of any Tax Return that is filed in respect of such Taxes and
(y) shall not include any reserves for financial accounting purposes in respect of Taxes that may arise upon audit) (with respect to such Other Taxes, the “Accrued Phillips 66 Other Tax Liability”). 

(B) Subject to Section 5.03(e), within 120 days following the earlier of (y) the due date (including extensions)
for filing such Tax Return, or (z) the date on which such Tax Return is filed, (x) Phillips 66 shall pay ConocoPhillips an amount equal to the excess, if any, of the amount of Other Taxes shown as due on such Tax Return for which Phillips
66 is responsible (for the absence of doubt, without regard to any estimated, installment or other advance payments) pursuant to Section 2.02(c)(i), Section 2.03(c)(i), and Section 2.04(c)(i) (for this purpose, determined without
regard to Section 5.03(b)(i)(A)) over any Accrued Phillips 66 Other Tax Liability with respect to such Tax Return, and (y) ConocoPhillips shall pay Phillips 66 an amount equal to the excess, if any, of any Accrued Phillips 66 Other Tax
Liability with respect to such Tax Return over the amount of such Other Taxes for which Phillips 66 is responsible. 
 (ii) Tax Returns Filed by Phillips 66 Group Member. In the case of any such Tax Return for any Pre-Distribution Tax Period that ends during 2011 or 2012 or any Straddle Period filed or required to
be filed under applicable Tax Law by any member of the Phillips 66 Group: 
 (A) ConocoPhillips shall be deemed
to have paid Phillips 66 on the Distribution Date an amount equal to any liability for cash Other Taxes with respect to such Tax Return to the extent such Other Taxes have been Accrued and allocated to the ConocoPhillips Business (including any
member of the ConocoPhillips Group) as of the Distribution Date (which accruals and allocations, for the absence of doubt, (x) may be computed after the Distribution Date as of the Distribution Date and which shall be recomputed as of the
Distribution Date to take account of any Tax Return that is filed in respect of such Taxes and (y) shall not include any reserves for financial accounting purposes in respect of Taxes that may arise upon audit) (with respect to such Other
Taxes, the “Accrued ConocoPhillips Other Tax Liability”). 
 (B) Subject to
Section 5.03(e), within 120 days following the earlier of (y) the due date (including extensions) for filing such Tax Return, or (z) the date on which such Tax Return is filed, (x) ConocoPhillips shall pay Phillips 66 an

  
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amount equal to the excess, if any, of the amount of Other Taxes shown as due on such Tax Return for which ConocoPhillips is responsible (for the absence of doubt, without regard to any
estimated, installment or other advance payments) pursuant to Section 2.02(c)(i), Section 2.03(c)(i), and Section 2.04(c)(i) (for this purpose, determined without regard to Section 5.03(b)(ii)(A)) over any Accrued ConocoPhillips
Other Tax Liability with respect to such Tax Return, and (y) Phillips 66 shall pay ConocoPhillips an amount equal to the excess, if any, of any Accrued ConocoPhillips Other Tax Liability with respect to such Tax Return over the amount of such
Other Taxes for which ConocoPhillips is responsible. 
 (c) Taxes Resulting from Adjustment. In the case of any
adjustment pursuant to a Final Determination with respect to any such Tax Return for any Pre-Distribution Periods or any Straddle Periods, (A) in the case of any such Tax Return filed or required to be filed under applicable Tax Law by any
member of the ConocoPhillips Group, ConocoPhillips shall pay (or cause to be paid) when due any additional Other Tax required to be paid with respect to such Tax Return as a result of such adjustment; and (B) in the case of any such Tax Return
filed or required to be filed under applicable Tax Law by any member of the Phillips 66 Group, Phillips 66 shall pay (or cause to be paid) when due any additional Other Tax required to be paid with respect to such Tax Return as a result of such
adjustment. 
 (d) Return-to-Adjustment Payments. Subject to Section 5.03(e), in the case of any adjustment pursuant
to a Final Determination with respect to such Tax Return for any Pre-Distribution Periods or any Straddle Periods, within 30 days following the later of (i) the date any Other Taxes were paid by ConocoPhillips or Phillips 66, as applicable,
pursuant to Section 5.03(c) with respect to such Tax Return as a result of such adjustment or (ii) the date of receipt of a written notice and demand from ConocoPhillips or Phillips 66, as applicable, following such Final Determination for
payment of the amount due: 
 (i) In the case of any such Tax Return filed or required to be filed under
applicable Tax Law by any member of the ConocoPhillips Group, (A) Phillips 66 shall pay ConocoPhillips (x) any Other Taxes due with respect to such Tax Return for which Phillips 66 is responsible pursuant to Section 2.02(c)(i),
Section 2.03(c)(i), and Section 2.04(c)(i) as a result of such adjustment and (y) any amount required to be paid by Phillips 66 to ConocoPhillips pursuant to Section 2.07(a) with respect to such Tax Return as a result of such
adjustment; and (B) ConocoPhillips shall pay Phillips 66 any amount required to be paid by ConocoPhillips to Phillips 66 pursuant to Section 2.07(a) as a result of such adjustment; and 

(ii) In the case of any such Tax Return filed or required to be filed under applicable Tax Law by any member of the
Phillips 66 Group, (A) ConocoPhillips shall pay Phillips 66 (x) any Other Taxes due with respect to such Tax Return for which ConocoPhillips is responsible pursuant to Section 2.02(c)(i), Section 2.03(c)(i), and
Section 2.04(c)(i) as a result of such adjustment and (y) any amount required to be paid by ConocoPhillips to Phillips 66 pursuant to Section 2.07(a) with respect to such Tax Return as a result of such adjustment; and
(B) Phillips 66 shall pay ConocoPhillips any amount required to be paid by Phillips 66 to ConocoPhillips pursuant to Section 2.07(a) as a result of such adjustment. 

  
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 (e) De Minimis Threshold for Other Taxes. Notwithstanding
Section 2.02(c), Section 2.03(c), Section 5.03(b) (except with respect to Foreign Other Taxes), and Section 5.03(d) (except with respect to Foreign Other Taxes) and except with respect to any amended Tax Return, in no event shall
ConocoPhillips or Phillips 66, as applicable, be liable to pay Phillips 66 or ConocoPhillips, as applicable, any amount with respect to Other Taxes (other than Foreign Other Taxes) pursuant to Section 5.03(b) or Section 5.03(d) unless the
amount of such payment otherwise required to be made pursuant to Section 5.03(b) with respect to the relevant Tax Return (other than any amended Tax Return) or Section 5.03(d) with respect to the relevant adjustment, as applicable (in each
case, for the absence of doubt, without regard to this Section 5.03(e)), exceeds $100,000. For the absence of doubt, (i) the foregoing limitation shall apply on a per Tax Return basis (in the case of any payment otherwise required to be
made pursuant to Section 5.03(b)) or on a per adjustment basis (in the case of any payment otherwise required to be made pursuant to Section 5.03(d)) and (ii) ConocoPhillips or Phillips 66, as applicable, shall be liable for the full
amount of any payment to which the foregoing limitation does not apply. 
 Section 5.04 Certain Separate Return Income
Taxes and Property Taxes. In the case of any (x) Income Taxes with respect to a Separate Return (other than State Separate Income Tax Returns for Pre-Distribution Periods or Straddle Periods); and (y) Property Taxes or any refunds of
such Taxes: 
 (a) Taxes Due. Each Company shall pay, or shall cause to be paid, to the applicable Tax Authority when due
(i) except as set forth in Section 5.04(c), all Income Taxes with respect to such Separate Return; and (ii) all Property Taxes, in each case for which such Company is responsible pursuant to Section 2. 

(b) Refunds. If a Company or any member of such Company’s Group receives a refund of (i) Income Taxes with respect to
such Separate Return; or (ii) Property Taxes, in each case to which the other Company is entitled pursuant to Section 2.07, such Company shall pay over such refund to the other Company within 30 days following the receipt of such refund.

 (c) Section 2.02(a)(iii) Taxes. In the case of any ConocoPhillips Federal Income Tax Return (including, for the
absence of doubt, an amended Tax Return) for a Post-Distribution Period (other than any Straddle Period), within 120 days following the earlier of (y) the due date (including extensions) for filing such Tax Return or (z) the date on which
such Tax Return is filed, Phillips 66 shall pay ConocoPhillips the amount for which Phillips 66 is responsible under Section 2.02(a)(iii) with respect to such Tax Return. In the case of any adjustment pursuant to a Final Determination with
respect to such Tax Return, within 30 days following the later of (i) the date any additional Federal Income Tax was paid by ConocoPhillips with respect to such Tax Return as a result of such adjustment (or any Tax Benefit was actually reduced
in cash) or (ii) the date of receipt of a written notice and demand from ConocoPhillips following such Final Determination for payment of the amount due, Phillips 66 shall pay ConocoPhillips the amount for which Phillips 66 is responsible
pursuant to Section 2.02(a)(iii) as a result of such adjustment. 

  
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 Section 5.05 Tax-Related Losses. Phillips 66 shall pay ConocoPhillips the amount
of any Tax-Related Losses for which Phillips 66 is responsible under Section 6.04: 
 (a) In the case of Tax-Related
Losses described in clause (a) of the definition of “Tax-Related Losses,” no later than two Business Days prior to the date COP files, or causes to be filed, the applicable Tax Return for the year of the Internal Contribution,
Internal Distribution, Contribution or Distribution, as applicable (provided that if such Tax-Related Losses arise pursuant to a Final Determination described in clause (a), (b) or (c) of the definition of “Final
Determination,” then Phillips 66 shall pay ConocoPhillips no later than two Business Days after the date of such Final Determination); and 
 (b) In the case of Tax-Related Losses described in clause (b) or (c) of the definition of “Tax-Related Losses,” no later than two Business Days after the date ConocoPhillips
pays such Tax-Related Losses. 
 Section 5.06 Treatment of Payments; Tax Gross Up. 

(a) Treatment of Payments. In the absence of any change in Tax treatment under the Code or other applicable Tax Law and except as
provided in Section 5.06(b), any payments made by a Company under this Agreement shall be reported for Tax purposes by the payor and the recipient as distributions or capital contributions, as appropriate, occurring immediately before the
Distribution (but only to the extent that the payment does not relate to a Tax allocated to the payor in accordance with Section 1552 of the Code or the regulations thereunder or Treasury Regulation Section 1.1502-33(d) (or under
corresponding principles of other applicable Tax Laws)) or as payments of an assumed or retained liability. 
 (b) Treatment
of Interest Payments Under This Agreement. Anything herein to the contrary notwithstanding, to the extent one Company (the “Indemnitor”) makes a payment of interest to another Company (the “Indemnitee”) under
this Agreement with respect to the period from the date that the Indemnitee made a payment of a Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest
expense to the Indemnitor (deductible to the extent provided by Law) and as interest income by the Indemnitee (includible in income to the extent provided by Law). The amount of the payment shall not be adjusted to take into account any associated
Tax Benefit to the Indemnitor or increase in Tax to the Indemnitee. 
 (c) Tax Gross Up. If (i) notwithstanding the
manner in which any payment under this Agreement is reported, there is an adjustment to the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement or (ii) any deduction or withholding is required by Law to
be made from any payment (other than an interest payment) under this Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable with respect to the receipt thereof or
the amount of all deduction or withholding required by Law with respect to such payment, as applicable (in each case, taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal the amount of the
payment which the Company receiving such payment would otherwise be entitled to receive pursuant to this Agreement. 

Section 5.07 Late Payments. Any amount owed by one party to another party under this Agreement which is not paid when
due shall bear interest at the Prime Rate plus five percent, compounded semiannually, from the due date of the payment to the date paid. To the extent interest required to be paid under this Section 5.07 duplicates interest required to be paid
under any other provision of this Agreement, interest shall be computed at the higher of the interest rate provided under this Section 5.07 or the interest rate provided under such other provision. 

  
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 Section 6. Tax-Free Status. 

Section 6.01 Tax Opinions/Rulings and Representation Letters. 

(a) Each of Phillips 66 and ConocoPhillips hereby represents and agrees that (i) it has or will read the Representation
Letters deliverable to Wachtell, Lipton, Rosen & Katz in connection with the rendering of the Tax Opinion prior to the date submitted and has or will read the Representation Letters (including the Ruling Request) delivered to the IRS in
connection with obtaining the Ruling prior to the date of this Agreement and (ii) subject to any qualifications therein, all information contained in such Representation Letters and Rulings that concerns or relates to such Company or any member
of its Group will be true, correct and complete. 
 (b) Phillips 66, Phillips 66 Company, ConocoPhillips, and
ConocoPhillips Company acknowledge that the Tax Opinions/Rulings and the Representation Letters may not yet have been obtained or submitted. Phillips 66, Phillips 66 Company, ConocoPhillips, and ConocoPhillips Company shall use their commercially
reasonable efforts and shall cooperate in good faith to finalize the Representation Letters for the Distribution as soon as possible hereafter and to cause the same to be submitted to the Tax Advisors, the IRS or such other governmental authorities
as ConocoPhillips shall deem necessary or desirable and shall take such other commercially reasonable actions as may be necessary or desirable to obtain the Tax Opinions/Rulings in order to confirm the Tax-Free Status. 

Section 6.02 Restrictions on Phillips 66 and Phillips 66 Company. 

(a) Phillips 66 and Phillips 66 Company agree that they will not take or fail to take, or permit any Phillips 66 Affiliate or
Phillips 66 Company Affiliate, as applicable, to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation
Letters or Tax Opinions/Rulings. Phillips 66 and Phillips 66 Company agree that they will not take or fail to take, or permit any Phillips 66 Affiliate or Phillips 66 Company Affiliate, as applicable, to take or fail to take, any action which
prevents or could reasonably be expected to prevent (i) the Tax-Free Status, or (ii) any transaction contemplated by the Separation and Distribution Agreement which is intended by the parties to be tax-free (including, but not limited to,
those transactions which the IRS has ruled qualify for tax-free treatment in the Ruling) from so qualifying, including, (x) in the case of Phillips 66, issuing any Phillips 66 Capital Stock that would prevent the Distribution from qualifying as
a tax-free distribution within the meaning of Section 355 of the Code; and (y) in the case of Phillips 66 Company, issuing any Phillips 66 Company Capital Stock that would prevent the Internal Distribution from qualifying as a tax-free
distribution within the meaning of Section 355 of the Code. 
 (b) Pre-Distribution Period. During the period from
the date hereof until the completion of the Distribution, Phillips 66 and Phillips 66 Company shall not take any action (including, in the case of Phillips 66, the issuance of Phillips 66 Capital Stock) or permit any Phillips 66 Affiliate or
Phillips 66 Company Affiliate directly or indirectly controlled by Phillips 66 or Phillips 66 Company, as applicable, to take any action if, as a result of taking such action, (i)

  
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Phillips 66 could have a number of shares of Phillips 66 Capital Stock (computed on a fully diluted basis or otherwise) issued and outstanding, including by way of the exercise of stock options
(whether or not such stock options are currently exercisable) or the issuance of restricted stock, that could cause ConocoPhillips to cease to have Tax Control of Phillips 66; or (ii) Phillips 66 Company could have a number of shares of
Phillips 66 Company Capital Stock (computed on a fully diluted basis or otherwise) issued and outstanding, including by way of the exercise of stock options (whether or not such stock options are currently exercisable) or the issuance of restricted
stock, that could cause ConocoPhillips Company to cease to have Tax Control of Phillips 66 Company. 
 (c) Each of
Phillips 66 and Phillips 66 Company agrees that, from the date hereof until the first day after the two-year anniversary of the Distribution Date, it will (i) maintain its status as a company engaged in the Active Trade or Business for purposes
of Section 355(b)(2) of the Code and (ii) not engage in any transaction that would result in it ceasing to be a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, in each case, taking into
account Section 355(b)(3) of the Code. 
 (d) Phillips 66 agrees that, from the date hereof until the first day
after the two-year anniversary of the Distribution Date, it will not (i) enter into any Proposed Acquisition Transaction or, to the extent Phillips 66 has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed
Acquisition Transaction to occur (whether by (A) redeeming rights under a shareholder rights plan, (B) finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or
neutralized with respect to any Proposed Acquisition Transaction, or (C) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other
provision of Phillips 66’s charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate or cause or permit Phillips 66 Company to merge or consolidate with any other Person or
liquidate or partially liquidate, (iii) in a single transaction or series of transactions sell or transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets that were
transferred to Phillips 66 as part of the Contribution or to Phillips 66 Company as part of the Internal Contribution or sell or transfer (or cause or permit to be transferred) 60% or more of the gross assets of the Active Trade or Business or 60%
or more of the consolidated gross assets of Phillips 66 and its Affiliates (such percentages to be measured based on fair market value as of the Distribution Date) or sell or transfer any of the shares of Phillips 66 Company, (iv) redeem or
otherwise repurchase (directly or through a Phillips 66 Affiliate) any Phillips 66 stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30 (as in effect prior to the
amendment of such Revenue Procedure by Revenue Procedure 2003-48), (v) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the voting
rights of Phillips 66 Capital Stock (including, without limitation, through the conversion of one class of Phillips 66 Capital Stock into another class of Phillips 66 Capital Stock) or (vi) take any other action or actions (including any action
or transaction that would be reasonably likely to be inconsistent with any representation made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this
subparagraph (d)) would be reasonably likely to have the effect of causing or permitting one or more persons (whether or not acting in concert) to acquire directly 

  
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or indirectly stock representing a Fifty-Percent or Greater Interest in Phillips 66 or Phillips 66 Company or otherwise jeopardize the Tax-Free Status, unless prior to taking any such action set
forth in the foregoing clauses (i) through (vi), (x) Phillips 66 shall have requested that ConocoPhillips obtain a Ruling in accordance with Section 6.03(b) and (d) of this Agreement to the effect that such transaction will not
affect the Tax-Free Status and ConocoPhillips shall have received such a Ruling in form and substance satisfactory to ConocoPhillips in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the
Tax-Free Status (and in determining whether a Ruling is satisfactory, ConocoPhillips may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations made in connection with such Ruling),
(y) Phillips 66 shall provide ConocoPhillips with an Unqualified Tax Opinion in form and substance satisfactory to ConocoPhillips in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the
Tax-Free Status (and in determining whether an opinion is satisfactory, ConocoPhillips may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion and
ConocoPhillips may determine that no opinion would be acceptable to ConocoPhillips) or (z) ConocoPhillips shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion. 

(e) Certain Issuances of Phillips 66 Capital Stock. If Phillips 66 proposes to enter into any Section 6.02(e) Acquisition
Transaction or, to the extent Phillips 66 has the right to prohibit any Section 6.02(e) Acquisition Transaction, proposes to permit any Section 6.02(e) Acquisition Transaction to occur, in each case, during the period from the date hereof
until the first day after the two-year anniversary of the Distribution Date, Phillips 66 shall provide ConocoPhillips, no later than ten days following the signing of any written agreement with respect to the Section 6.02(e) Acquisition
Transaction, with a written description of such transaction (including the type and amount of Phillips 66 Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of Phillips 66 to the effect that the
Section 6.02(e) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 6.02(d) apply (a “Board Certificate”). 

(f) Phillips 66 Restructuring. Phillips 66 and Phillips 66 Company shall not engage in, cause or permit any internal restructuring
(including by making or revoking any election under Treasury Regulation Section 301.7701-3) involving Phillips 66 or Phillips 66 Company and/or any of their subsidiaries or any contribution, sale or other transfer of any of the assets directly
or indirectly transferred to Phillips 66 as part of the Contribution, transferred to Phillips 66 Company as part of the Internal Contribution, or otherwise transferred to Phillips 66 or Phillips 66 Company, as applicable, or any of their
subsidiaries in connection with the Transaction (any such action, a “Phillips 66 Restructuring”) during or with respect to any Tax Period (or portion thereof) ending on or prior to 6 months following the Distribution Date without
obtaining the prior written consent of ConocoPhillips (such prior written consent not to be unreasonably withheld). Phillips 66 or Phillips 66 Company, as applicable, shall provide written notice to ConocoPhillips describing any Phillips 66
Restructuring proposed to be taken during or with respect to any Tax Period (or portion thereof) ending on or prior to 6 months following the Distribution Date and shall consult with ConocoPhillips regarding any such proposed actions. 

  
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 (g) Distributions by Foreign Phillips 66 Subsidiaries. Until
January 1st of the calendar year immediately
following the calendar year in which the Distribution occurs, Phillips 66 shall neither cause nor permit any foreign subsidiary of Phillips 66 to enter into any transaction or take any action that would be considered under the Code to constitute the
declaration or payment of a dividend (including pursuant to Section 304 of the Code) without obtaining the prior written consent of ConocoPhillips (such prior written consent not to be unreasonably withheld). 

Section 6.03 Procedures Regarding Opinions and Rulings. 

(a) If Phillips 66 notifies ConocoPhillips that it desires to take one of the actions described in clauses (i) through
(vi) of Section 6.02(d) (a “Notified Action”), ConocoPhillips and Phillips 66 shall reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion referred to in Section 6.02(d), unless ConocoPhillips
shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion. 
 (b) Rulings or Unqualified Tax
Opinions at Phillips 66’s Request. ConocoPhillips agrees that at the reasonable request of Phillips 66 pursuant to Section 6.02(d), ConocoPhillips shall cooperate with Phillips 66 and use its reasonable best efforts to seek to obtain,
as expeditiously as possible, a Ruling from the IRS or an Unqualified Tax Opinion for the purpose of permitting Phillips 66 to take the Notified Action. Further, in no event shall ConocoPhillips be required to file any Ruling Request under this
Section 6.03(b) unless Phillips 66 represents that (i) it has read the Ruling Request, and (ii) all information and representations, if any, relating to any member of the Phillips 66 Group, contained in the Ruling Request documents
are (subject to any qualifications therein) true, correct and complete. Phillips 66 shall reimburse ConocoPhillips for all reasonable costs and expenses incurred by the ConocoPhillips Group in obtaining a Ruling or Unqualified Tax Opinion requested
by Phillips 66 within ten Business Days after receiving an invoice from ConocoPhillips therefor. 
 (c) Rulings or
Unqualified Tax Opinions at ConocoPhillips’ Request. ConocoPhillips shall have the right to obtain a Ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If ConocoPhillips determines to obtain a Ruling or an
Unqualified Tax Opinion, Phillips 66 shall (and shall cause each Affiliate of Phillips 66 to) cooperate with ConocoPhillips and take any and all actions reasonably requested by ConocoPhillips in connection with obtaining the Ruling or Unqualified
Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS or Tax Advisor; provided that Phillips 66 shall not be required to make (or cause any
Affiliate of Phillips 66 to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). ConocoPhillips and Phillips 66 shall each bear its own costs and expenses in
obtaining a Ruling or an Unqualified Tax Opinion requested by ConocoPhillips. 
 (d) Phillips 66 hereby agrees that
ConocoPhillips shall have sole and exclusive control over the process of obtaining any Ruling, and that only ConocoPhillips shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 6.03(b), (i) ConocoPhillips
shall keep Phillips 66 informed in a timely manner of all material actions taken or proposed to be taken by ConocoPhillips in connection therewith; (ii) ConocoPhillips shall (A) reasonably in advance of the submission of any Ruling Request
documents provide Phillips 66 with a draft copy thereof, (B) reasonably consider Phillips 66’s comments on such draft copy, and (C) provide Phillips 66 

  
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with a final copy; and (iii) ConocoPhillips shall provide Phillips 66 with notice reasonably in advance of, and Phillips 66 shall have the right to attend, any formally scheduled meetings
with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither Phillips 66 nor any Phillips 66 Affiliate directly or indirectly controlled by Phillips 66 shall seek any guidance from the IRS or any other Tax Authority (whether
written, verbal or otherwise) at any time concerning the Contribution, the Distribution, the Internal Contribution, the Internal Distribution (including the impact of any transaction on the Contribution, the Distribution, the Internal Contribution
or the Internal Distribution) or any transaction referred to in Section 6.02(a)(ii). 
 Section 6.04 Liability for
Tax-Related Losses. 
 (a) Notwithstanding anything in this Agreement, the Separation and Distribution Agreement, the
Indemnification and Release Agreement, or any other Ancillary Agreement to the contrary, subject to Section 6.04(b), Phillips 66 shall be responsible for, and shall indemnify and hold harmless ConocoPhillips, ConocoPhillips Company, each of
their Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (i) the
acquisition (other than pursuant to the Internal Contribution, the Internal Distribution, the Contribution, or the Distribution) of all or a portion of the stock and/or assets of Phillips 66 and/or its subsidiaries by any means whatsoever by any
Person, (ii) any negotiations, understandings, agreements or arrangements by Phillips 66 with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option
grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Internal Distribution or the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly
stock of Phillips 66 Company or Phillips 66, as applicable, representing a Fifty-Percent or Greater Interest therein, (iii) any action or failure to act by Phillips 66 after the Distribution (including, without limitation, any amendment to
Phillips 66’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of Phillips 66 stock or Phillips 66 Company stock (including, without limitation,
through the conversion of one class of Phillips 66 Capital Stock or Phillips 66 Company Capital Stock, respectively, into another class of Phillips 66 Capital Stock or Phillips 66 Company Capital Stock, respectively), (iv) any act or failure to
act by Phillips 66, Phillips 66 Company, or any Phillips 66 Affiliate described in Section 6.02 (regardless whether such act or failure to act is covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (x), (y) or
(z) of Section 6.02(d), a Board Certificate described in Section 6.02(e) or a consent described in Section 6.02(f) or (g)) or (v) any breach by Phillips 66 of its agreement and representation set forth in
Section 6.01(a). 
 (b) For purposes of calculating the amount and timing of any Tax-Related Loss for which Phillips
66 is responsible under this Section 6.04, Tax-Related Losses shall be calculated by assuming that ConocoPhillips, ConocoPhillips Company, the ConocoPhillips Affiliated Group and each member of the ConocoPhillips Group (I) pay Tax at the
highest marginal corporate Tax rates in effect in each relevant taxable year and (II) have no Tax Attributes in any relevant taxable year. 

  
 40 

 Section 7. Assistance and Cooperation. 

Section 7.01 Assistance and Cooperation. 
 (a) General. Each of the Companies shall cooperate (and cause its respective Affiliates to cooperate) with the other Company and with the other Company’s agents, representatives or
advisors, including accounting firms and legal counsel, in connection with Tax matters relating to the Companies and their Affiliates including (i) preparation and filing of Tax Returns, (ii) determining the liability for and amount of any
Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) determining any amounts required to be paid pursuant to this Agreement, (iv) examinations of Tax Returns, and (v) any administrative or
judicial proceeding in respect of Taxes assessed or proposed to be assessed or claims for refunds. Such cooperation shall include, without limitation, (x) preparing Tax Packages and providing information and documents as provided in
Section 7.02, (y) making all information and documents in their possession relating to the other Company and its Affiliates available to such other Company as provided in Section 8, and (z) making available to the other Company,
as reasonably requested and available, personnel (including officers, directors, employees and agents of the Companies or their respective Affiliates) responsible for preparing, maintaining, and interpreting information and documents relevant to
Taxes, and personnel reasonably required as witnesses or for purposes of providing information or documents in connection with any administrative or judicial proceedings relating to Taxes. In the event that a member of the ConocoPhillips Group, on
the one hand, or a member of the Phillips 66 Group, on the other hand, suffers a Tax detriment as a result of a Transfer Pricing Adjustment, the Companies shall cooperate pursuant to this Section 7 to seek any competent authority relief that
may be available with respect to such Transfer Pricing Adjustment. 
 (b) Confidentiality. Any information or
documents provided under this Section 7 shall be kept confidential by the Company receiving the information or documents, except as may otherwise be necessary in connection with the filing of Tax Returns or in connection with any administrative
or judicial proceedings relating to Taxes. Notwithstanding any other provision of this Agreement or any other agreement, (i) neither ConocoPhillips nor any ConocoPhillips Affiliate shall be required to provide Phillips 66 or any Phillips 66
Affiliate or any other Person access to or copies of any information or procedures (including the proceedings of any Tax Contest) other than information or procedures that relate solely to Phillips 66, the business or assets of Phillips 66 or any
Phillips 66 Affiliate and (ii) in no event shall ConocoPhillips or any ConocoPhillips Affiliate be required to provide Phillips 66, any Phillips 66 Affiliate or any other Person access to or copies of any information if such action could
reasonably be expected to result in the waiver of any Privilege. In addition, in the event that ConocoPhillips determines that the provision of any information to Phillips 66 or any Phillips 66 Affiliate could be commercially detrimental, violate
any Law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with their respective obligations under this Section 7 in a manner that avoids any such harm or consequence. 

Section 7.02 Tax Packages and Other Tax Return Information. 

(a) General. Phillips 66, Phillips 66 Company, ConocoPhillips, and ConocoPhillips Company acknowledge that time is of the
essence in relation to any request for information, assistance or cooperation made by ConocoPhillips or Phillips 66 pursuant to Section 7.01 or this 

  
 41 

 
Section 7.02. Phillips 66, Phillips 66 Company, ConocoPhillips, and ConocoPhillips Company acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines
otherwise set by ConocoPhillips or Phillips 66 could cause irreparable harm. 
 (b) Tax Packages. Phillips 66 (if
ConocoPhillips is the Responsible Company with respect to the applicable Tax Returns) or ConocoPhillips (if Phillips 66 is the Responsible Company with respect to the applicable Tax Returns) shall provide to the Responsible Company a package
containing information and documents relating to its Group required by the Responsible Company to prepare and file the applicable Tax Returns (“Tax Packages”). Phillips 66 or ConocoPhillips, as applicable, shall provide such Tax
Packages (i) containing information or documents in such form as the Responsible Company reasonably requests (or, in the absence of such request, in such form as historically provided to the Responsible Company for the purposes of preparing and
filing the applicable Tax Returns) and (ii) in sufficient time for the Responsible Company to file the applicable Tax Returns on a timely basis. 
 Section 7.03 Reliance by ConocoPhillips. If any member of the Phillips 66 Group supplies information to a member of the ConocoPhillips Group in connection with a Tax liability and an officer
of a member of the ConocoPhillips Group signs a statement or other document under penalties of perjury in reliance upon the accuracy of such information, then upon the written request of such member of the ConocoPhillips Group identifying the
information being so relied upon, the chief financial officer of Phillips 66 (or any officer of Phillips 66 as designated by the chief financial officer of Phillips 66) shall certify in writing that to his or her knowledge (based upon consultation
with appropriate employees) the information so supplied is accurate and complete. Each of Phillips 66 and Phillips 66 Company agrees to indemnify and hold harmless each member of the ConocoPhillips Group and its directors, officers and employees
from and against any fine, penalty, or other cost or expense of any kind attributable to a member of the Phillips 66 Group having supplied, pursuant to this Section 7, a member of the ConocoPhillips Group with inaccurate or incomplete
information in connection with a Tax liability. 
 Section 8. Tax Records. 

Section 8.01 Retention of Tax Records. Each Company shall preserve and keep all Tax Records exclusively relating to the assets
and activities of its Group for Pre-Distribution Periods, and ConocoPhillips shall preserve and keep all other Tax Records relating to Taxes of the Groups for Pre-Distribution Tax Periods, for so long as the contents thereof may become material in
the administration of any matter under the Code or other applicable Tax Law, but in any event until the later of (a) the expiration of any applicable statutes of limitations, or (b) seven years after the Distribution Date (such later date,
the “Retention Date”). After the Retention Date, each Company may dispose of such Tax Records upon 90 days’ prior written notice to the other Company. If, prior to the Retention Date, a Company reasonably determines that any
Tax Records which it would otherwise be required to preserve and keep under this Section 8 are no longer material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees, then such first
Company may dispose of such Tax Records upon 90 days’ prior notice to the other Company. Any notice of an intent to dispose given pursuant to this Section 8.01 shall include a list of the Tax Records to be disposed of describing in
reasonable detail each file, book, or other record accumulation being disposed. The notified Company shall have the opportunity, at its cost and expense, to copy or remove, within such 90-

  
 42 

 
day period, all or any part of such Tax Records. If, at any time prior to the Retention Date, Phillips 66 or Phillips 66 Company determines to decommission or otherwise discontinue any computer
program or information technology system used to access or store any Tax Records, then Phillips 66 or Phillips 66 Company may decommission or discontinue such program or system upon 90 days’ prior notice to ConocoPhillips and ConocoPhillips
shall have the opportunity, at its cost and expense, to copy, within such 90-day period, all or any part of the underlying data relating to the Tax Records accessed by or stored on such program or system. 

Section 8.02 Access to Tax Records. The Companies and their respective Affiliates shall make available to each other for
inspection and copying during normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program or information technology system) in their
possession and shall permit the other Company and its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct access during normal business hours upon reasonable notice to any
computer program or information technology system used to access or store any Tax Records, in each case to the extent reasonably required by the other Company in connection with the preparation of Tax Returns or financial accounting statements,
audits, litigation, or the resolution of items under this Agreement. 
 Section 9. Tax Contests. 

Section 9.01 Notice. Each of the Companies shall provide prompt notice to the other Company of any written communication from
a Tax Authority regarding any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it or its Affiliate becomes aware related to Taxes for Tax Periods for which it is indemnified by the other Company hereunder. Such
notice shall attach copies of the pertinent portion of any written communication from a Tax Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies
of any notice and other documents received from any Tax Authority in respect of any such matters; provided, however, that the Indemnitor shall not be relieved of its obligations hereunder by reason of any failure by the Indemnitee to so
notify except to the extent the Indemnitor was materially harmed by such failure. 
 Section 9.02 Control of Tax
Contests. 
 (a) Separate Returns. In the case of any Tax Contest with respect to any Separate Return for any
Pre-Distribution Period or any Straddle Period: 
 (i) If the Tax Contest relates exclusively to Taxes for which
Phillips 66 is responsible under Section 2, Phillips 66 shall have exclusive control over such Tax Contest, except insofar as ConocoPhillips shall have exclusive control over such Tax Contest pursuant to Section 9.02(a)(ii)(B) and subject
to Section 9.02(c)(i) and (d) below; and 
 (ii) If the Tax Contest relates (A) exclusively to
Taxes for which ConocoPhillips is responsible under Section 2, (B) exclusively to Taxes for which Phillips 66 is responsible under Section 2 and ConocoPhillips determines in good faith that Phillips 66 has failed to defend diligently
such Tax Contest, or (C) to Taxes for which both ConocoPhillips and 

  
 43 

 
Phillips 66 are responsible under Section 2, ConocoPhillips shall (in the case of Tax Contests described in Section 9.02(a)(ii)(B), at ConocoPhillips’ option) have exclusive
control over the Tax Contest, subject to Section 9.02(c)(i) and (d) below. 
 (b) Joint Returns. In the case of
any Tax Contest with respect to any ConocoPhillips Federal Consolidated Income Tax Return, ConocoPhillips State Combined Income Tax Return or other Joint Return, in each case, for any Pre-Distribution Period or Straddle Period, ConocoPhillips shall
have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Section 9.02(c)(ii) below. 
 (c) Settlement Rights and Certain Other Rights. 
 (i)
Separate Returns. In the case of any Tax Contest with respect to any Separate Return, the Controlling Party shall have the sole right to contest, litigate, compromise and settle any such Tax Contest without obtaining the prior consent of the
Non-Controlling Party; provided, however, that if Phillips 66 is the Controlling Party with respect to any Tax Contest with respect to any Separate Return which Tax Contest would reasonably be expected to have an adverse impact on
ConocoPhillips, Phillips 66 shall not compromise or settle such Tax Contest without obtaining the prior consent of ConocoPhillips. Unless waived by the parties in writing, in connection with any potential adjustment in such Tax Contest (x) with
respect to any Separate Return as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 2.07) to the Controlling Party under this
Agreement or (y) with respect to any Specified Separate Return: (A) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect
to such potential adjustment in such Tax Contest; (B) the Controlling Party shall provide the Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority;
(C) the Controlling Party shall consult with the Non-Controlling Party before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest and shall offer the Non-Controlling Party a
reasonable opportunity to comment before submitting any such written materials; and (D) the Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial
authority in connection with such potential adjustment in such Tax Contest. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling
Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was materially harmed by such failure, and in no event shall such failure relieve the
Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. 

(ii) Joint Returns. In the case of any Tax Contest with respect to Joint Returns, the Controlling Party shall have
the sole right to contest, litigate, compromise and settle any such Tax Contest without obtaining the prior consent of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential adjustment in such Tax
Contest as a result of which adjustment the Non-Controlling Party may 

  
 44 

 
reasonably be expected to become liable to make any indemnification payment (or any payment under Section 2.07) to the Controlling Party under this Agreement: (A) the Controlling Party
shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (B) the Controlling Party shall provide the
Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; and (C) the Controlling Party shall consult with the Non-Controlling Party before submitting any
written materials prepared or furnished in connection with such potential adjustment in such Tax Contest. Phillips 66 shall not be entitled to attend meetings or teleconferences with the Tax Authority in connection with any Tax Contest with respect
to any Joint Returns, except that, in connection with any Special Joint Tax Contest, Phillips 66 shall be entitled to attend such portion of any meeting or teleconference as pertains to Phillips 66. The failure of the Controlling Party to take any
action specified in the second preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the
extent that the Non-Controlling Party was materially harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. ConocoPhillips shall
be entitled to permit Phillips 66 to conduct any portion of a Special Joint Tax Contest on such terms and conditions as ConocoPhillips shall determine in its sole discretion. 
 (d) Tax Contest Participation. In the case of any Tax Contest with respect to any Separate Return, unless waived by the parties in writing, the Controlling Party shall provide the Non-Controlling
Party with written notice reasonably in advance of, and the Non-Controlling Party shall have the right to attend, any formally scheduled meetings with Tax Authorities or hearings or proceedings before any judicial authorities in connection with any
potential adjustment in a Tax Contest pursuant to which the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 2.07) to the Controlling Party under this Agreement
or with respect to any Specified Separate Return. The failure of the Controlling Party to provide any notice specified in this Section 9.02(d) to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or
obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was materially harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other
liability or obligation which it may have to the Controlling Party. 
 (e) Power of Attorney. Each member of the Phillips
66 Group shall execute and deliver to ConocoPhillips (or such member of the ConocoPhillips Group as ConocoPhillips shall designate) any power of attorney or other similar document reasonably requested by ConocoPhillips (or such designee) in
connection with any Tax Contest (as to which ConocoPhillips is the Controlling Party) described in this Section 9. 

  
 45 

 Section 10. Effective Date; Termination of Prior Intercompany Tax Allocation
Agreements.  
 This Agreement shall be effective as of the date hereof. As of the date hereof, (a) all
prior intercompany Tax allocation agreements shall be terminated, and (b) amounts due under such agreements as of the date hereof shall be settled before the Distribution Date. Upon such termination and settlement, no further payments by or to
ConocoPhillips, Phillips 66 or any member of their respective Group, with respect to such agreements shall be made, and all other rights and obligations resulting from such agreements between the Companies and their Affiliates shall cease at such
time. The prior practice of ConocoPhillips of creating intercompany obligations in respect of Tax allocations with respect to the Phillips 66 Business shall be terminated effective immediately prior to the Distribution on the Distribution Date, and
amounts due under any such remaining intercompany obligations shall be settled in the ordinary course. 
 Section 11.
Survival of Obligations. 
 The representations, warranties, covenants and agreements set forth in this Agreement shall be
unconditional and absolute and shall remain in effect without limitation as to time. 
 Section 12. Dispute
Resolution. 
 The Companies mutually desire that friendly collaboration will continue between them. Accordingly, they will
try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings relating to their respective rights and obligations under this Agreement, including any amendments hereto. In
furtherance thereof, in the event of any dispute, controversy or claim arising out of or relating to this Agreement, including the validity, interpretation, breach or termination thereof (a “Dispute”), the Tax departments of the
Companies shall negotiate in good faith to resolve the Dispute. If such good faith negotiations do not resolve the Dispute, then the Dispute shall be resolved in accordance with the procedures set forth in Article IV of the Indemnification and
Release Agreement, which shall be the sole and exclusive procedures for the resolution of any such Dispute unless otherwise specified in Article IV of the Indemnification and Release Agreement. Notwithstanding anything to the contrary in this
Agreement, the Indemnification and Release Agreement, the Separation and Distribution Agreement or any other Ancillary Agreement, ConocoPhillips and Phillips 66 are the only members of their respective Group entitled to commence a dispute resolution
procedure under this Agreement, and each of ConocoPhillips and Phillips 66 will cause its respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 12. 

Section 13. Expenses. 
 Except as otherwise provided in this Agreement, each party and its Affiliates shall bear their own expenses incurred in connection with preparation of Tax Returns, Tax Contests, and other matters related
to Taxes under the provisions of this Agreement. 

  
 46 

 Section 14. General Provisions. 

Section 14.01 Addresses and Notices. Each party giving any notice required or permitted under this Agreement will give the
notice in writing and use one of the following methods of delivery to the party to be notified, at the address set forth below (except that any notice involving an amount at issue less than $100,000, individually, shall be sent to the designee of
the General Tax Officer of the other Company, rather than the address below) or another address of which the sending party has been notified in accordance with this Section 14.01: (a) personal delivery; (b) facsimile or telecopy
transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery; (d) pre-paid, United States of America certified or registered mail, return receipt
requested; or (e) electronic mail with a reasonable method of confirming receipt. Notice to a party is effective for purposes of this Agreement only if given as provided in this Section 14.01 and shall be deemed given on the date that the
intended addressee actually receives the notice. 
  

			
	 If to ConocoPhillips or ConocoPhillips Company:
  

ConocoPhillips
 600 North Dairy
Ashford
 Houston, Texas 77079

Attention: General Tax Officer

Facsimile: 281-293-2852
 Email:
ben.j.clayton@conocophillips.com
	  	 with a copy to:
  

ConocoPhillips
 600 North Dairy
Ashford
 Houston, Texas 77079

Attention: Chief Financial Officer

Facsimile: 281-293-6311

Email: jeff.w.sheets@conocophillips.com

		
	 If to Phillips 66 or Phillips 66 Company:
  

Phillips 66
 600 North Dairy Ashford

Houston, Texas 77079
 Attention: General Tax
Officer
 Facsimile: 281-293-2852

Email: audrey.l.miller@P66.com
	  	 with a copy to:
  

Phillips 66
 600 North Dairy Ashford

Houston, Texas 77079
 Attention: Chief Financial
Officer
 Facsimile: 281-293-3793

Email: greg.g.maxwell@P66.com

 A party may change the address for receiving notices under this Agreement by providing written notice of the change of
address to the other parties. 
 Section 14.02 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their successors and assigns. 
 Section 14.03 Waiver. The parties may waive a
provision of this Agreement only by a written waiver signed by the party intended to be bound by the waiver. A party is not prevented from enforcing any right, remedy or condition in the party’s favor because of any failure or delay in
exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only
for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party’s rights and remedies in this Agreement is not intended to be exclusive, and a party’s rights and
remedies are intended to be cumulative to the extent permitted by Law and include any rights and remedies authorized in Law or in equity. 

  
 47 

 Section 14.04 Severability. If any provision of this Agreement is determined to
be invalid, illegal or unenforceable, the remaining provisions of this Agreement remain in full force, if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable. 

Section 14.05 Authority. Each of the parties represents to the other that (a) it has the corporate or other requisite
power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other action, (c) it has duly and validly executed
and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws
affecting creditors’ rights generally and general equity principles. 
 Section 14.06 Further Action. The
parties shall execute and deliver all documents, provide all information, and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties
and their Affiliates and representatives of such powers of attorney or other authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other parties in
accordance with Section 9. 
 Section 14.07 Integration. This Agreement, together with each of the exhibits and
schedules appended hereto, constitutes the final agreement between the parties, and is the complete and exclusive statement of the parties’ agreement on the matters contained herein. All prior and contemporaneous negotiations and agreements
between the parties with respect to the matters contained herein are superseded by this Agreement, as applicable. In the event of any inconsistency between this Agreement and the Separation and Distribution Agreement, or any of the Ancillary
Agreements (other than this Agreement), with respect to matters addressed herein, the provisions of this Agreement shall control. 
 Section 14.08 Construction. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning and shall not be strictly construed for or against any
party. The captions, titles and headings included in this Agreement are for convenience only, and do not affect this Agreement’s construction or interpretation. Unless otherwise indicated, all “Section” references in this Agreement
are to sections of this Agreement. 
 Section 14.09 No Double Recovery. No provision of this Agreement shall be
construed to provide an indemnity or other recovery for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at Law or equity.
Unless expressly required in this Agreement, a party shall not be required to exhaust all remedies available under other agreements or at Law or equity before recovering under the remedies provided in this Agreement. 

  
 48 

 Section 14.10 Counterparts. The parties may execute this Agreement in multiple
counterparts, each of which constitutes an original as against the party that signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery of one executed counterpart from each party to the other party.
The signatures of the parties need not appear on the same counterpart. The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending party’s signature is as effective as signing and delivering the
counterpart in person. 
 Section 14.11 Governing Law. The internal Laws of the State of Delaware (without reference
to its principles of conflicts of Law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement and each of the exhibits and schedules hereto and thereto (whether arising in contract, tort, equity
or otherwise). 
 Section 14.12 Jurisdiction. If any dispute arises out of or in connection with this Agreement,
except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive jurisdiction of
federal and state courts located in Delaware, (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO TRIAL OR
ADJUDICATION BY JURY. 
 Section 14.13 Amendment. Except as otherwise expressly provided herein with respect to the
Schedules hereto, the parties may amend this Agreement only by a written agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement. 

Section 14.14 Phillips 66 Subsidiaries. If, at any time, Phillips 66 acquires or creates one or more subsidiaries that would
have been includable in the Phillips 66 Group had they been acquired or created immediately after the Distribution, they shall be subject to this Agreement and all references to the Phillips 66 Group herein shall thereafter include a reference to
such subsidiaries. 
 Section 14.15 Successors. This Agreement shall be binding on and inure to the benefit of any
successor by merger, acquisition of assets, or otherwise, to any of the parties hereto (including but not limited to any successor of ConocoPhillips, ConocoPhillips Company, Phillips 66, or Phillips 66 Company succeeding to the Tax attributes of
either under Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement. 
 Section 14.16 Injunctions. The parties acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its
specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having
jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at Law or in equity. 

  
 49 

 IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by a
duly authorized officer on the date first set forth above. 
  

									
	CONOCOPHILLIPS	 		 	PHILLIPS 66
					
	By:	 	 /s/ Ryan M. Lance
	 		 	By:	 	 /s/ Greg C. Garland

	Name:	 	Ryan M. Lance	 		 	Name:	 	Greg C. Garland
	Title:	 	Chairman, President and Chief Executive Officer	 		 	Title:	 	Chairman, President and Chief Executive Officer
			
	CONOCOPHILLIPS COMPANY	 		 	PHILLIPS 66 COMPANY
					
	By:	 	 /s/ Ben J. Clayton
	 		 	By:	 	 /s/Audrey L. Miller

	Name:	 	Ben J. Clayton	 		 	Name:	 	Audrey L. Miller
	Title:	 	General Tax Officer	 		 	Title:	 	Assistant Tax Administration Officer

  
 50 

 UK TAX 
 SCHEDULE 2.05 
 Part A: UK Tax Matters 

Paragraph 1. General Principle. 
 Save as expressly provided in this Agreement, and without prejudice to the rights and obligations contained in this Schedule, each member of the ConocoPhillips Group and each member of the Phillips 66
Group shall be responsible for discharging any UK Tax Liability that may fall on it and shall be entitled to any UK Relief arising to it, and none of the parties to this Agreement indemnifies or otherwise agrees to make payment to, or to procure the
making of payment to, the other in relation thereto. 
 Paragraph 2. Management of Pre-Distribution UK Tax Affairs.

 Paragraph 2.01. VAT Grouping. 

(a) ConocoPhillips shall procure that (if one has not already been made) an application shall be made to HM Revenue &
Customs pursuant to section 43B of the Value Added Tax Act 1994 for the exclusion of each member of the Phillips 66 Group that has previously been a member of ConocoPhillips UK Topco’s VAT group from the bodies corporate treated as members of
ConocoPhillips UK Topco’s VAT group and for such exclusion to take effect from the time of the Distribution or, if HM Revenue & Customs do not permit this, at the earliest date following the Distribution permitted. 

(b) Phillips 66 shall contribute, or shall procure that each member of the Phillips 66 Group which was a member of ConocoPhillips
UK Topco’s VAT group contributes, to the representative member of such VAT group such proportion of any VAT for which the representative member is accountable as is properly attributable to supplies, acquisitions and importations
(“supplies”) made by each member of the Phillips 66 Group whilst a member of ConocoPhillips UK Topco’s VAT group (less such amount of deductible input tax as is properly attributable to such supplies), such contribution to be
made in cleared funds on the day which is the later of 30 days after demand is made therefor, and four Business Days before the day on which the representative member is required to account for such VAT to HM Revenue & Customs.
ConocoPhillips shall pay, or shall procure that there is paid, to Immingham CHP LLP (on behalf of itself and each other relevant member of the Phillips 66 Group) an amount equivalent to such proportion of any repayment of VAT received by the
representative member from HM Revenue & Customs or of any credit obtained by reference to an excess of deductible input tax over output tax that is properly attributable to supplies made to and by members of the Phillips 66 Group whilst
members of ConocoPhillips UK Topco’s VAT group (but excluding any part of such repayment or credit that is attributable to interest payable by HM Revenue & Customs), promptly after its receipt by, or offset against a liability of, the
representative member. Phillips 66 shall provide such information as may be required to enable the representative member to make the returns and provide the information required to be provided for VAT purposes. 

  

 Paragraph 2.02 . Group Payment Arrangement. 

(a) ConocoPhillips shall procure that the UK Nominated Company will, in accordance with the UK GPA, give notice to HM
Revenue & Customs to the effect that all members of the Phillips 66 Group will cease from the Distribution to be members of the same group of companies as the UK Nominated Company within the meaning of section 36 of the Finance Act 1998 or
section 59F of the Taxes Management Act 1970. 
 (b) Phillips 66 shall procure that each member of the Phillips 66 Group
which was a member of the UK GPA contributes to the UK Nominated Company, within 30 days after written demand is made therefor (or, if later, four Business Days before the amount becomes due and payable to HM Revenue & Customs), an amount
equal to any instalment of UK Corporation Tax which is to be or has been discharged by the UK Nominated Company on behalf of the member of the Phillips 66 Group in question pursuant to the UK GPA (including, without limitation, through payment of a
balance of monies payable pursuant to the UK GPA) as certified by the UK Nominated Company (but, for the avoidance of doubt, not including any amount in respect of interest payable in respect of any such instalment of UK Corporation Tax to HM
Revenue & Customs), provided that no such contribution shall be made to the extent that such contribution was made prior to or at the time of the Distribution. 
 (c) ConocoPhillips shall: 
 (i) procure that the UK
Nominated Company shall, to the extent that it has not made such payment prior to the Distribution, pay to HM Revenue & Customs when the relevant amount is due and payable to HM Revenue & Customs (or promptly following receipt of
the contribution by the relevant member of the Phillips 66 Group in respect of the relevant amount, if such contribution is received after the date when the relevant amount is due and payable to HM Revenue & Customs) an amount equal to any
amount contributed after the Distribution to the UK Nominated Company by any member of the Phillips 66 Group pursuant to the UK GPA in respect of any instalment of UK Corporation Tax; 

(ii) procure that the UK Nominated Company shall (subject to paragraph (iii) below) apportion to the relevant member
of the Phillips 66 Group each amount contributed before or after the Distribution to the UK Nominated Company by any member of the Phillips 66 Group pursuant to the UK GPA in respect of any instalment of UK Corporation Tax (a “Contributed
Amount”), such apportionment to be made by reference to the instalment or instalments of UK Corporation Tax in respect of which the Contributed Amount was paid; and 

(iii) within 30 days after the relevant UK Corporation Tax has finally been apportioned, pay, or procure that there is
paid, to the relevant member of the Phillips 66 Group an amount equal to any excess of any Contributed Amount in respect of any instalment of UK Corporation Tax over the amount of UK Corporation Tax finally apportioned to that member of the Phillips
66 Group in respect of that instalment (for the avoidance of doubt, taking no account of any interest payable by HM Revenue & Customs in respect of such excessive Contributed Amount). 

  
 2 

 Paragraph 3. Group Relief Surrenders between the Groups. 

Paragraph 3.01. ConocoPhillips and Phillips 66 shall procure that after the Distribution no claim, election, surrender, notice or
consent is made in respect of any Group Relief Surrender by a member of the ConocoPhillips Group to a member of the Phillips 66 Group (or vice versa) other than pursuant to this Paragraph 3. 

Paragraph 3.02. Subject to the remainder of this Paragraph 3, ConocoPhillips and Phillips 66 shall use all reasonable endeavors to
procure that each Agreed UK Group Relief Surrender referred to in Appendix 1 shall be made (and not later amended) or, if made prior to the Distribution, shall not be amended. 
 Paragraph 3.03. No payment shall be made by the company receiving an Agreed UK Group Relief Surrender, or by any other member of its Group, for any Agreed UK Group Relief Surrender (including for
any increase in the amount of any Agreed UK Group Relief Surrender in accordance with Paragraph 3.05); and no payment shall be made by a company surrendering an Agreed UK Group Relief Surrender, or any member of its Group, in respect of any tax
liability falling on a company receiving such Agreed UK Group Relief Surrender because the amount of such Agreed UK Group Relief Surrender is reduced in accordance with Paragraph 3.04. 

Paragraph 3.04. If the amount of any Corresponding Relievable Loss is certified by the person to whom that loss arises to be in
fact less than the amount given for that Corresponding Relievable Loss in Appendix 1, then the amount of any Agreed UK Group Relief Surrender in respect of that Corresponding Relievable Loss will be reduced accordingly. Any necessary allocation of
the reduction shall be determined by Phillips 66 (if the reduction is in a Corresponding Relievable Loss assumed to be surrendered to more than one member of the Phillips 66 Group) or by ConocoPhillips (if the reduction is in a Corresponding
Relievable Loss assumed to be surrendered to more than one member of the ConocoPhillips Group). 
 Paragraph 3.05. If a
person who is a member of a Group has a Corresponding Relievable Loss in respect of a UK Accounting Period referred to in Appendix 1 which is in fact greater than a Corresponding Relievable Loss assumed for that member in Appendix 1, the amount
thereof shall be certified by that person as soon as reasonably practicable to Phillips 66 (where the person with the Corresponding Relievable Loss is a member of the ConocoPhillips Group) or to ConocoPhillips (where the person with the
Corresponding Relievable Loss is a member of the Phillips 66 Group) and an Agreed UK Group Relief Surrender in respect of that Corresponding Relievable Loss may, if requested by Phillips 66 or ConocoPhillips, as the case may be, for the other Group,
be increased or made (including as an additional Group Relief Surrender to another member of the other Group) but only to the extent that the amount of the Corresponding Relievable Loss that exceeds the amount set out for that Corresponding
Relievable Loss in Appendix 1 cannot be used by the person to whom that Corresponding Relievable Loss arises, or by another member of the same UK Tax Group, other than in a UK Accounting Period of that person subsequent to the UK Accounting Period
in which that Corresponding Relievable Loss arises. 

  
 3 

 Paragraph 3.06. Subject to the other provisions of this Paragraph 3, if a company
which is a member of a UK Tax Group has lower profits available to be relieved by a Group Relief Surrender than are assumed by Appendix 1 then Phillips 66 (in the case of the Phillips 66 UK Tax Group) or ConocoPhillips (in the case of the
ConocoPhillips UK Tax Group) may require that a Group Relief Surrender of all or part of the Corresponding Relievable Loss in question is reallocated to another member of the same UK Tax Group. 

Paragraph 3.07. ConocoPhillips and Phillips 66 shall each use all reasonable endeavors as respects its Group to procure that
claims, adjustments, elections, surrenders, notices, consents (including adjustments to any of these) and other procedural matters required to give effect to this Paragraph 3 shall occur, within applicable UK Time Limits. 

Paragraph 4. Other Surrenders and Similar Matters. 
 Paragraph 4.01. Transfer Pricing. Subject to its compliance with Section 4.06(b) of this Agreement, no balancing or other payment shall be made by any member of either Group to a member
of the other Group in respect of any Transfer Pricing Adjustment or compensating adjustment in respect of a UK Accounting Period ending on or before, or commencing before and ending after, the Distribution, including in respect of any alteration to
any such Transfer Pricing Adjustment. 
 Paragraph 4.02. Surrenders. No Non Group Relief Surrender shall be made after
the Distribution by any member of either Group to a member of the other Group in respect of which no claim, election, surrender, notice or consent has been made on or prior to the Distribution. 

Paragraph 4.03. Rollover and Holdover Relief. ConocoPhillips and Phillips 66 shall procure that after the Distribution no claim
for Rollover Relief or Holdover Relief shall be made by a member of one Group in respect of any chargeable gains of a member of the other Group, other than pursuant to this Paragraph 4.03. ConocoPhillips and Phillips 66 shall use all reasonable
endeavors to procure that (a) the claims for Rollover Relief and Holdover Relief listed in Part A of Appendix 2 (if any) shall be made and not later amended and (b) adjustments, elections, surrenders, notices, consents (including
adjustments to any of these) and other procedural matters required to give effect to such claims shall occur, within applicable UK Time Limits. ConocoPhillips and Phillips 66 shall procure that no amendment is made to the claims for Rollover Relief
or Holdover Relief made prior to the Distribution and listed in Part B of Appendix 2. Each member of each Group shall be responsible for discharging any UK Tax Liability arising in connection with a claim for Rollover Relief or Holdover Relief made
prior to the Distribution or pursuant to this Paragraph 4.03 that may fall on it. 
 Paragraph 4.04. Worldwide Debt Cap.
ConocoPhillips and Phillips 66 agree that prior to the Distribution no member of either Group has been subject to any Worldwide Debt Cap Disallowance, and that no payments shall be, or have been, made in respect of any Worldwide Debt Cap
Disallowance by any member of either Group to any member of the other Group in respect of any UK Accounting Period ending on or before, or commencing before and ending after, the Distribution. 

Paragraph 4.05. Existing Arrangements. Any agreement, arrangement or understanding existing prior to the Distribution in respect
of transfer pricing, Non Group Relief Surrenders, Rollover Relief or Holdover Relief or Worldwide Debt Cap Disallowances is (subject to Paragraph 4.03) terminated as regards the period from the Distribution forwards as between members of the
Phillips 66 Group and members of the ConocoPhillips Group and no claims or payments shall be made in connection therewith. 

  
 4 

 Part B: Definitions and Interpretation 

Paragraph 1. Definitions. 

In this Schedule the following definitions shall have the following meanings: 
 “ConocoPhillips UK Tax Group” means ConocoPhillips UK Topco and any other company or companies (other than any member of the Phillips 66 Group) treated after the Distribution as a member
or members of the same group as, or as otherwise connected or associated in any way with, ConocoPhillips UK Topco for any UK Tax purpose; 
 “Contributed Amount” has the meaning set forth in Paragraph 2.02(c)(ii) of this Schedule 2.05. 
 “Holdover Relief” means holdover relief available in accordance with sections 152 and 154 TCGA (as extended by sections 175 and 179B TCGA and/or following any election pursuant to section
179A TCGA), and any reference to an amendment to a claim for Holdover Relief shall include any amendment or adjustment to, any withdrawal of and the making of any claim, election, surrender, notice or consent that is inconsistent with the claims,
elections, surrenders, notices or consents made in respect of such claim for Holdover Relief prior to the Distribution; 

“Non Group Relief Surrender” means: 

(a) the notional transfer of any asset or reallocation of a gain or loss in accordance with section 171A or section
179A of the TCGA; and/or 
 (b) the surrender of eligible unrelieved foreign tax (EUFT) in accordance with
The Double Taxation Relief (Surrender of Relievable Tax Within a Group) Regulations 2001 (S.I. 2001 No. 1163); and/or 
 (c) any reallocation of a chargeable realization gain in accordance with section 792 of CTA 2009; 
 “Phillips 66 UK Tax Group” means Phillips 66 UK Topco and any other company or companies treated after the Distribution as a member or members of the same group as, or as otherwise
connected or associated in any way with, Phillips 66 UK Topco for any UK Tax purpose; 
 “Phillips 66 UK Topco”
means U.K. Phillips 66 Limited; 
 “Relief” includes, unless the context otherwise requires, any Tax Benefits
and any allowance, credit, deduction, exemption or set off in respect of any tax or relevant to the computation of any income, profits or gains for the purposes of any tax, or any right to or actual repayment of or saving of tax, and any reference
to the use or set off of a Relief shall be construed accordingly; 

  
 5 

 “Rollover Relief” means rollover relief available in accordance with
section 152 TCGA (as extended by sections 175 and 179B TCGA and/or following any election pursuant to section 179A TCGA), and any reference to an amendment to a claim for Rollover Relief shall include any amendment or adjustment to, any withdrawal
of and the making of any claim, election, surrender, notice or consent that is inconsistent with the claims, elections, surrenders, notices or consents made in respect of such claim for Rollover Relief prior to the Distribution; 

“Taxes Act” means the Income and Corporation Taxes Act 1988; 

“TCGA” means the Taxation of Chargeable Gains Act 1992; 

“TIOPA” means the Taxation (International and other Provisions) Act 2010; 

“UK Accounting Period” means any period by reference to which any income, profits or gains, or any other amounts
relevant for the purposes of UK Tax, are measured or determined; 
 “UK Relief” means a Relief relating to UK
Tax; 
 “UK Tax Group” means either of the Phillips 66 UK Tax Group or the ConocoPhillips UK Tax Group;

 “UK Tax Liability” means a liability to make or suffer an actual payment of UK Tax; 

“UK Time Limit” means the latest date on which a UK Tax document can be executed or delivered to a relevant UK Tax
Authority either without incurring interest or a penalty, or in order to ensure that such UK Tax document is effective; and 

“Worldwide Debt Cap Disallowance” means a disallowance under Chapter 3 of Part 7 of TIOPA. 

Paragraph 2. Interpretation 
 Paragraph 2.01 General. In this Schedule: 
 (a) persons shall
be treated as “connected” if they are connected within the meaning of section 1122 of CTA 2010; 

(b) references to legislation are references to legislation of the United Kingdom; and 

(c) references to provisions of the Corporation Taxes Acts shall, where relevant, be construed as references to the corresponding
provisions of the Taxes Act or a Finance Act that the provisions referred to replace, 

  
 6 

 Paragraph 2.02. Part A: Paragraph References. References in the main body of this
Agreement and in Part A of this Schedule to paragraphs of this Schedule are, unless otherwise stated, references to paragraphs in Part A of this Schedule. 

  
 7Employee Matters Agreement

 Exhibit 10.4 
 EMPLOYEE MATTERS AGREEMENT 
 by and between 

CONOCOPHILLIPS 

and 
 PHILLIPS 66

 dated as of 
 April 26, 2012 

 TABLE OF CONTENTS 

 

									
	ARTICLE I GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES	  	 	1	  
				
		 	 Section 1.1
	  	General Principles	  	 	1	  
				
		 	 Section 1.2
	  	Service Credit	  	 	3	  
				
		 	 Section 1.3
	  	Plan Administration	  	 	3	  
				
		 	 Section 1.4
	  	No Duplication or Acceleration of Benefits	  	 	3	  
				
		 	 Section 1.5
	  	No Expansion of Participation	  	 	4	  
		
	ARTICLE II DEFINITIONS	  	 	4	  
				
		 	 Section 2.1
	  	Definitions	  	 	4	  
				
		 	 Section 2.2
	  	Interpretation	  	 	12	  
		
	ARTICLE III ASSIGNMENT OF EMPLOYEES	  	 	14	  
				
		 	 Section 3.1
	  	Active Employees	  	 	14	  
				
		 	 Section 3.2
	  	Former Employees	  	 	17	  
				
		 	 Section 3.3
	  	Employment Law Obligations	  	 	17	  
				
		 	 Section 3.4
	  	Employee Records	  	 	17	  
				
		 	 Section 3.5
	  	Non-Solicitation	  	 	19	  
		
	ARTICLE IV EQUITY AND INCENTIVE COMPENSATION PLANS	  	 	19	  
				
		 	 Section 4.1
	  	General Principles	  	 	19	  
				
		 	 Section 4.2
	  	Restricted Stock	  	 	20	  
				
		 	 Section 4.3
	  	Non-exercisable Stock Options	  	 	20	  
				
		 	 Section 4.4
	  	Exercisable Stock Options and Vested Stock Appreciation Rights	  	 	23	  
				
		 	 Section 4.5
	  	Restricted Stock Units	  	 	25	  
				
		 	 Section 4.6
	  	Performance Share Units	  	 	26	  
				
		 	 Section 4.7
	  	Specified Transition Employees	  	 	26	  
				
		 	 Section 4.8
	  	Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A	  	 	27	  
				
		 	 Section 4.9
	  	Performance Share Program	  	 	28	  
				
		 	 Section 4.10
	  	Liabilities for Settlement of Awards	  	 	28	  
				
		 	 Section 4.11
	  	Bonus and Short-Term Incentive Payments	  	 	29	  
				
		 	 Section 4.12
	  	Form S-8	  	 	29	  
				
		 	 Section 4.13
	  	Tax Reporting and Withholding for Equity-Based Awards	  	 	30	  

  
 - i -

									
		 	 Section 4.14
	  	Plan Administrator	  	 	30	  
				
		 	 Section 4.15
	  	Approval of Phillips 66 New Equity Plan	  	 	30	  
		
	 ARTICLE V U.S. QUALIFIED DEFINED BENEFIT PLANS
	  	 	30	  
				
		 	 Section 5.1
	  	Establishment of Phillips 66 Pension Plan	  	 	30	  
				
		 	 Section 5.2
	  	Phillips 66 Pension Plan Participants	  	 	31	  
				
		 	 Section 5.3
	  	Delayed Transfer Employees	  	 	33	  
		
	 ARTICLE VI U.S. QUALIFIED DEFINED CONTRIBUTION PLANS
	  	 	34	  
				
		 	 Section 6.1
	  	Establishment of the Phillips 66 401(k) Plan	  	 	34	  
				
		 	 Section 6.2
	  	Transfer of COP 401(k) Plan Assets	  	 	34	  
				
		 	 Section 6.3
	  	Treatment of Phillips 66 Common Stock and COP Common Stock	  	 	34	  
				
		 	 Section 6.4
	  	Continuation of Elections	  	 	35	  
				
		 	 Section 6.5
	  	Delayed Transfer Employees	  	 	35	  
				
		 	 Section 6.6
	  	Tax Qualified Status	  	 	35	  
		
	ARTICLE VII NONQUALIFIED COMPENSATION PLANS	  	 	36	  
				
		 	 Section 7.1
	  	Excess Benefit Plans	  	 	36	  
				
		 	 Section 7.2
	  	Key Employee Deferred Compensation Plans	  	 	36	  
				
		 	 Section 7.3
	  	Treatment of Phantom Shares in Deferred Compensation Plans	  	 	37	  
				
		 	 Section 7.4
	  	Grantor Trusts	  	 	38	  
		
	ARTICLE VIII WELFARE PLANS	  	 	38	  
				
		 	 Section 8.1
	  	Establishment of Phillips 66 Welfare Plans	  	 	38	  
				
		 	 Section 8.2
	  	Transitional Matters Under Phillips 66 Welfare Plans	  	 	38	  
				
		 	 Section 8.3
	  	Continuity of Benefits, Benefit Elections and Beneficiary Designations	  	 	40	  
				
		 	 Section 8.4
	  	Delayed Transfer Employees from Phillips 66 Group to COP Group	  	 	42	  
				
		 	 Section 8.5
	  	Insurance Contracts	  	 	42	  
				
		 	 Section 8.6
	  	Third-Party Vendors	  	 	42	  
				
		 	 Section 8.7
	  	Retiree Welfare Plans	  	 	43	  
		
	ARTICLE IX WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION	  	 	43	  
				
		 	 Section 9.1
	  	Phillips 66 Workers’ and Unemployment Compensation	  	 	43	  
				
		 	 Section 9.2
	  	COP Workers’ and Unemployment Compensation	  	 	44	  
				
		 	 Section 9.3
	  	Assignment of Contribution Rights	  	 	44	  

  
 - ii -

									
		 	 Section 9.4
	  	Collateral	  	 	44	  
				
		 	 Section 9.5
	  	Cooperation	  	 	45	  
		
	 ARTICLE X SEVERANCE
	  	 	45	  
				
		 	 Section 10.1
	  	Severance	  	 	45	  
		
	 ARTICLE XI BENEFIT ARRANGEMENTS AND OTHER MATTERS
	  	 	45	  
				
		 	 Section 11.1
	  	Termination of Participation	  	 	45	  
				
		 	 Section 11.2
	  	Accrued Time Off	  	 	45	  
				
		 	 Section 11.3
	  	Leaves of Absence	  	 	46	  
				
		 	 Section 11.4
	  	Collective Bargaining Agreements	  	 	46	  
				
		 	 Section 11.5
	  	Director Programs	  	 	46	  
				
		 	 Section 11.6
	  	Restrictive Covenants in Employment and Other Agreements	  	 	46	  
		
	 ARTICLE XII NON-U.S. EMPLOYEES
	  	 	47	  
				
		 	 Section 12.1
	  	General Principles	  	 	47	  
				
		 	 Section 12.2
	  	Treatment of Equity Awards Held by Non-U.S. Employees.	  	 	47	  
				
		 	 Section 12.3
	  	Other Canada Employee Matters	  	 	51	  
				
		 	 Section 12.4
	  	UK Employee Matters Agreement	  	 	51	  
		
	 ARTICLE XIII GENERAL PROVISIONS
	  	 	52	  
				
		 	 Section 13.1
	  	Preservation of Rights to Amend	  	 	52	  
				
		 	 Section 13.2
	  	Confidentiality	  	 	52	  
				
		 	 Section 13.3
	  	Administrative Complaints/Litigation	  	 	52	  
				
		 	 Section 13.4
	  	Reimbursement and Indemnification	  	 	52	  
				
		 	 Section 13.5
	  	Costs of Compliance with Agreement	  	 	53	  
				
		 	 Section 13.6
	  	Fiduciary Matters	  	 	53	  
				
		 	 Section 13.7
	  	Entire Agreement	  	 	53	  
				
		 	 Section 13.8
	  	Binding Effect; No Third-Party Beneficiaries; Assignment	  	 	53	  
				
		 	 Section 13.9
	  	Amendment; Waivers	  	 	54	  
				
		 	 Section 13.10
	  	Remedies Cumulative	  	 	54	  
				
		 	 Section 13.11
	  	Notices	  	 	54	  
				
		 	 Section 13.12
	  	Counterparts	  	 	54	  
				
		 	 Section 13.13
	  	Severability	  	 	54	  
				
		 	 Section 13.14
	  	Governing Law	  	 	55	  

  
 - iii -

									
		 	 Section 13.15
	  	Dispute Resolution	  	 	55	  
				
		 	 Section 13.16
	  	Performance	  	 	55	  
				
		 	 Section 13.17
	  	Construction	  	 	55	  
				
		 	 Section 13.18
	  	Effect if Distribution Does Not Occur	  	 	55	  

  
 - iv -

 EMPLOYEE MATTERS AGREEMENT 

THIS EMPLOYEE MATTERS AGREEMENT, dated as of April 26, 2012, is entered into by and between ConocoPhillips, a Delaware corporation
(“COP”), and Phillips 66, a Delaware corporation (“Phillips 66”). COP and Phillips 66 are also referred to in this Agreement individually as a “Party” and collectively as the
“Parties.” 
 RECITALS 
 WHEREAS, COP has determined that it would be appropriate, desirable and in the best interests of COP and the shareholders of COP to separate the Phillips 66 business from COP; 

WHEREAS, COP and Phillips 66 have entered into the Separation and Distribution Agreement, dated 26, 2012 (the “Separation
Agreement”), in connection with the separation of the Phillips 66 business from COP and the Distribution of Phillips 66 Common Stock to shareholders of COP; 
 WHEREAS, the Separation Agreement also provides for the execution and delivery of certain other agreements, including this Agreement, in order to facilitate and provide for the separation of Phillips 66
and its subsidiaries from COP; and 
 WHEREAS, in order to ensure an orderly transition under the Separation Agreement, it will
be necessary for the Parties to allocate between them Assets, Liabilities and responsibilities with respect to certain employee compensation and benefit plans and programs, and certain other employment matters. 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows: 
 ARTICLE I 
 GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 1.1 General Principles. (a) Each member of the COP Group and each member of the Phillips 66 Group shall take any and
all reasonable action as shall be necessary or appropriate so that active participation in the COP Pension Plan, COP 401(k) Plan, COP Welfare Plans and COP Benefit Plans by all Phillips 66 Group Employees shall terminate in connection with the
Distribution as and when provided under this Agreement (or if not specifically provided under this Agreement, as of the Effective Time). 
 (b) Except as otherwise provided in this Agreement, effective as of the Distribution Date, one or more members of the Phillips 66 Group (as determined by Phillips 66) shall assume or continue the
sponsorship of, and no member of the COP Group shall have any further Liability with respect to or under, the following agreements, obligations and Liabilities, and Phillips 66 shall indemnify each member of the COP Group, and the officers,
directors, and 

 
employees of each member of the COP Group, and hold them harmless with respect to such agreements, obligations or Liabilities: 

(i) any and all individual agreements entered into between any member of the COP Group and any Phillips 66 Group
Employee; 
 (ii) any and all agreements entered into between any member of the COP Group and any individual who
is an independent contractor providing services primarily for the business activities of the Phillips 66 Group; 

(iii) any and all collective bargaining agreements, collective agreements and trade union or works council agreements
entered into between any member of the COP Group and any union, works council or other body representing only Phillips 66 Group Employees; 
 (iv) any and all wages, salaries, incentive compensation (as the same may be modified by this Agreement), commissions, bonuses, and any other employee compensation or benefits payable to or on behalf of
any Phillips 66 Group Employees after the Distribution Date, without regard to when such wages, salaries, incentive compensation, commissions, bonuses, or other employee compensation or benefits are or may have been earned; 

(v) any and all moving expenses and obligations related to relocation, repatriation, transfers or similar items incurred
by or owed to any Phillips 66 Group Employees that have not been paid prior to the Distribution Date; 
 (vi)
any and all immigration-related, visa, work application or similar rights, obligations and Liabilities related to any Phillips 66 Group Employees; and 
 (vii) any and all Liabilities and obligations whatsoever with respect to claims made by or with respect to any Phillips 66 Group Employees in connection with any employee benefit plan, program or policy
not otherwise retained or assumed by any member of the COP Group pursuant to this Agreement, including such Liabilities relating to actions or omissions of or by any member of the Phillips 66 Group or any officer, director, employee or agent thereof
on or prior to the Distribution Date. 
 (c) Except as otherwise provided in this Agreement, effective as of the Effective Time,
no member of the Phillips 66 Group shall have any further Liability for, and COP shall indemnify each member of the Phillips 66 Group, and the officers, directors, and employees of each member of the Phillips 66 Group, and hold them harmless with
respect to any and all Liabilities and obligations whatsoever with respect to, claims made by or with respect to any COP Group Employees or Former COP Group Employees in connection with any employee benefit plan, program or policy not otherwise
retained or assumed by any member of the Phillips 66 Group pursuant to this Agreement, including such Liabilities relating to actions or omissions of or by any member of the COP Group or any officer, director, employee or agent thereof on, prior to
or after the Distribution Date. 

  
 - 2 -

 Section 1.2 Service Credit. 

(a) Service for Eligibility, Vesting, and Benefit Purposes. Except as otherwise provided in any other provision of this
Agreement, the Phillips 66 Pension Plan, the Phillips 66 401(k) Plan, and the Phillips 66 Welfare Plans shall, and Phillips 66 shall cause each member of the Phillips 66 Group to, recognize each Phillips 66 Group Employee full service credit for
purposes of eligibility, vesting, determination of level of benefits and, to the extent applicable, benefit accruals under any Phillips 66 Benefit Plan for such Phillips 66 Group Employee’s service with any member of the COP Group on or prior
to the Effective Time or Transfer Date, as applicable, to the same extent such service would be credited if it had been performed for a member of the Phillips 66 Group. 
 (b) Evidence of Prior Service. Notwithstanding anything to the contrary, but subject to applicable Law, upon reasonable request by one Party to the other Party, the first Party will provide
to the other Party copies of any records available to the first Party to document such service, plan participation and membership of such Employees and cooperate with the first Party to resolve any discrepancies or obtain any missing data for
purposes of determining benefit eligibility, participation, vesting and calculation of benefits with respect to any Employee. 

Section 1.3 Plan Administration. 
 (a) Transition Services. The Parties acknowledge that the COP Group or the Phillips 66 Group may provide administrative services for certain of the other Party’s benefit programs for a
transitional period under the terms of the Transition Services Agreement. The Parties agree to enter into a business associate agreement (if required by HIPAA or other applicable health information privacy Laws) in connection with such Transition
Services Agreement. 
 (b) Participant Elections and Beneficiary Designations. All participant elections and
beneficiary designations made under any plan sponsored by a member of the COP Group prior to the Effective Time with respect to which Assets or Liabilities are transferred or allocated to plans maintained by a member of the Phillips 66 Group in
accordance with this Agreement shall continue in effect under the applicable Phillips 66 plan, including deferral, investment and payment form elections, dividend elections, coverage options and levels, beneficiary designations and the rights of
alternate payees under qualified domestic relations orders, to the extent allowed by applicable Law. 
 Section 1.4 No
Duplication or Acceleration of Benefits . Notwithstanding anything to the contrary in this Agreement, the Separation Agreement or any Transfer Document, no participant in the Phillips 66 Pension Plan, Phillips 66 401(k) Plan, Phillips 66 SERP,
Phillips 66 Deferred Compensation Plans, Phillips 66 Welfare Plan or other Benefit Plans of Phillips 66 shall receive benefits that duplicate benefits provided by the corresponding COP Benefit Plan or arrangement. Furthermore, unless expressly
provided for in this Agreement, the Separation Agreement or in any Transfer Document or required by applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting or entitlements to any 

  
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compensation or Benefit Plan on the part of any COP Group Employee, Former COP Group Employee or Phillips 66 Group Employee. 

Section 1.5 No Expansion of Participation. Unless otherwise expressly provided in this Agreement, as otherwise determined or
agreed to by COP and Phillips 66, as required by applicable Law, or as explicitly set forth in a Phillips 66 Benefit Plan, a Phillips 66 Group Employee shall be entitled to participate in the Phillips 66 Benefit Plans only to the extent that such
Employee was entitled to participate in the corresponding COP Benefit Plan as in effect immediately prior to the Distribution Date, with it being the intent of the Parties that this Agreement does not result in any expansion of the number of
Phillips 66 Group Employees participating or the participation rights therein that they had prior to the Effective Time. 

ARTICLE II 

DEFINITIONS 

Section 2.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this
Section 2.1: 
 “Adjustment Time” means the Effective Time, except with regard to the provisions of
Section 12.2(a), with regard to which it means the time that is immediately before the time that is immediately before the Effective Time. 
 “Adjusted COP PSU” has the meaning set forth in Section 4.6. 

“Adjusted COP RSA” has the meaning set forth in Section 4.2(a). 

“Adjusted COP RSU” has the meaning set forth in Section 4.5(c). 

“Adjusted COP Non-exercisable Option” has the meaning set forth in Section 4.3(a)(i). 

“Adjusted COP Unvested SAR” has the meaning set forth in Section 4.3(b)(i). 

“Adjusted COP Exercisable Option” has the meaning set forth in Section 4.4(a)(i). 

“Adjusted COP Vested SAR” has the meaning set forth in Section 4.4(b)(i). 

“Affiliate” has the meaning set forth in the Separation Agreement. 

“Agreement” means this Employee Matters Agreement, together with all Schedules hereto and all amendments, modifications,
and changes hereto entered into pursuant to Section 13.9. 
 “Assets” has the meaning set forth in the
Separation Agreement. 
 “Benefit Management Records” has the meaning set forth in Section 3.4(b)(i).

  
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 “Benefit Plan” means any contract, agreement, policy, practice, program,
plan, trust, commitment or arrangement providing for benefits, perquisites or compensation of any nature to any Employee, or to any family member, dependent, or beneficiary of any such Employee, including pension plans, thrift plans, supplemental
pension plans and welfare plans, and contracts, agreements, policies, practices, programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control protections or benefits,
travel and accident, life, disability and accident insurance, tuition reimbursement, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays. 

“Business Days” means any day other than a Saturday or Sunday or a day in which banking institutions in Houston, Texas
are authorized or requested by law to close. 
 “Canada Tax Act” means the Income Tax Act (Canada).

 “Canadian Holder” has the meaning set forth in Section 12.2. 

“COBRA” means the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq.
of ERISA and at Section 4980B of the Code. 
 “Code” has the meaning set forth in the Separation
Agreement. 
 “Collective Bargaining Agreements” shall have the meaning set forth in Section 3.1(j).

 “COP” has the meaning set forth in the preamble to this Agreement. 

“COP Actuary” means an independent actuary selected by COP. 

“COP Adjusted Exercise Price” has the meaning set forth in Section 4.3(a)(i). 

“COP Benefit Plan” means any Benefit Plan sponsored or maintained by a member of the COP Group immediately prior to the
Effective Time. 
 “COP Common Stock” means the common stock, par value $0.01 per share, of COP. 

“COP Deferred Compensation Plans” means the Key Employee Deferred Compensation Plan of COP, the Defined Contribution
Make-up Plan of COP and the COP Director Deferral Plan for non-employee directors. 
 “COP Delayed Price Ratio”
means, with respect to a Delayed Transfer Employee, the quotient obtained by dividing (i) the volume weighted average per share price of COP Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately
before such Delayed Transfer Employee’s Transfer Date by (ii) the volume weighted average per share price of Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed
Transfer Employee’s Transfer Date. 

  
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 “COP Delayed Share Ratio” means, with respect to a Delayed Transfer
Employee, the quotient obtained by dividing (i) the volume weighted average per share price of Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer
Employee’s Transfer Date by (ii) the volume weighted average per share price of COP Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer
Date. 
 “COP Director” means any individual who is a non-employee member of the board of directors of COP
immediately after the Effective Time. 
 “COP Entity” means any member of the COP Group. 

“COP 401(k) Plan” means the ConocoPhillips Savings Plan. 

“COP 401(k) Plan Beneficiaries” has the meaning set forth in Section 6.3(a). 

“COP Grantor Trust” means the ConocoPhillips Grantor Trust. 

“COP Group” shall have the same meaning as ConocoPhillips Group in the Separation Agreement. 

“COP Group Employee” means, subject to the last sentence of Section 3.1(c), any individual who is employed by a
member of the COP Group immediately after the Effective Time. 
 “COP Equity Plan” means any equity plan
sponsored or maintained by COP immediately prior to the Distribution Date, including each of the plans set forth on Schedule 2.1(a). 
 “COP Options” means exercisable and non-exercisable options to purchase shares of COP Common Stock granted pursuant to any of the COP Equity Plans. 

“COP Pension Plan” means the ConocoPhillips Retirement Plan. 

“COP Post-Distribution Stock Value” means the simple average of the volume weighted average per share price of COP
Common Stock trading on the NYSE during Regular Trading Hours on the first four Trading Days following the Distribution Date. 

“COP Pre-Distribution Stock Value” means the simple average of the volume weighted average per share price of COP Common
Stock trading “regular way with due bills” on the NYSE during Regular Trading Hours on the Distribution Date and the three immediately preceding Trading Days. 
 “COP Price Ratio” means the quotient obtained by dividing the COP Post-Distribution Stock Value by the COP Pre-Distribution Stock Value. 

  
 - 6 -

 “COP PSUs” means restricted stock units issued in connection with
COP’s Performance Share Program or in connection with Phillips Petroleum Company’s Long-Term Incentive Plan or its predecessors, and shall also include that certain grant of restricted stock made to James J. Mulva on June 20, 2000
(and tendered and exchanged for restricted stock units effective January 29, 2002), that certain grant of restricted stock units made to James J. Mulva on November 17, 2001, and that certain grant of restricted stock units made to James J.
Mulva on May 8, 2005 (together with any dividend equivalents related thereto that have been issued as further restricted stock units). 
 “COP RSAs” means restricted stock awards issued under any of the COP Equity Plans. 
 “COP RSUs” means restricted stock units granted under any of the COP Equity Plans, other than those which are COP PSUs. 

“COP SARs” means stock appreciation rights granted under any of the COP Equity Plans. 

“COP SERP” means the non-qualified COP supplemental executive retirement plans, including the Key Employee Supplemental
Retirement Plan. 
 “COP Severance” has the meaning set forth in Section 10.1. 

“COP Share Ratio” means the quotient obtained by dividing the COP Pre-Distribution Stock Value by the COP
Post-Distribution Stock Value. 
 “COP Welfare Plan” means any Welfare Plan sponsored or maintained by any one
or more members of the COP Group as of immediately prior to the Effective Time, including each of the Welfare Plans set forth on Schedule 2.1(b). 
 “Delayed Transfer COP Option” shall have the meaning set forth in Section 4.3(b). 
 “Delayed Transfer Employees” means those COP Group Employees or Phillips 66 Group Employees whose transfer from COP Group to Phillips 66 Group or from Phillips 66 Group to COP Group,
respectively, in connection with the Distribution will be delayed until after the Effective Time in accordance with the terms of the notice provided by COP to Phillips 66. 
 “Delayed Transfer Phillips 66 Option” shall have the meaning set forth Section 4.3(b). 
 “Distribution” has the meaning set forth in the Separation Agreement. 
 “Distribution Date” has the meaning set forth in the Separation Agreement. 
 “Distribution Ratio” shall be one share of Phillips 66 Common Stock for every two shares of COP Common Stock. 

  
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 “Effective Time” means the time immediately before the effective time of
the Distribution. 
 “Employee” means any COP Group Employee, Former COP Group Employee or Phillips 66 Group
Employee. 
 “Employee Leasing Agreements” means the agreements between the Parties (or their respective
Subsidiaries) for providing, on a limited basis, temporary services from individual employees of one Party or any of its Subsidiaries to the other Party or any of its Subsidiaries. 

“ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated
thereunder. 
 “Estimated Pension Plan Transfer Amount” has the meaning set forth in Section 5.2 (b)(ii).

 “FICA” has the meaning set forth in Section 3.1(h). 

“Final Pension Plan Transfer Amount” has the meaning set forth in Section 5.2(b)(iv). 

“Final Transfer Date” has the meaning set forth in Section 5.2(b)(v). 

“FMLA” means the U.S. Family and Medical Leave Act, as amended, and the regulations promulgated thereunder. 

“Former COP Group Employee” has the meaning set forth in Section 3.2. 

“FSA Participation Period” has the meaning set forth in Section 8.3(b). 

“FUTA” has the meaning set forth in Section 3.1(h). 

“HIPAA” means the Health Insurance Portability and Accountability Act of 1996, as amended, and the regulations
promulgated thereunder. 
 “HSA Participation Period” has the meaning set forth in Section 8.3(c).

 “Indemnification and Release Agreement” has the meaning set forth in the Separation Agreement. 

“Initial Transfer Amount” has the meaning set forth in Section 5.2(b)(iv). 

“IRS” means the Internal Revenue Service. 
 “Law” has the meaning set forth in the Separation Agreement. 

“Liabilities” has the meaning set forth in the Separation Agreement. 

  
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 “NYSE” means the New York Stock Exchange. 

“Party” or “Parties” has the meaning set forth in the preamble to this Agreement. 

“Person” has the meaning set forth in the Separation Agreement. 

“Phillips 66” has the meaning set forth in the preamble to this Agreement. 

“Phillips 66 Actuary” means an independent actuary selected by Phillips 66. 

“Phillips 66 Adjusted Exercise Price” has the meaning set forth in Section 4.3(a)(ii). 

“Phillips 66 Benefit Plan” means any Benefit Plan sponsored or maintained by a member of the Phillips 66 Group
immediately following the Effective Time. 
 “Phillips 66 Business” has the meaning set forth in the Separation
Agreement. 
 “Phillips 66 Common Stock” means the common stock, par value $0.01 per share, of Phillips 66.

 “Phillips 66 Delayed Price Ratio” means, with respect to a Delayed Transfer Employee, the quotient obtained
by dividing (i) the volume weighted average per share price of Phillips 66 Common Stock on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date by (ii) the
volume weighted average per share price of COP Common Stock on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date. 

“Phillips 66 Delayed Share Ratio” means, with respect to a Delayed Transfer Employee, the quotient obtained by dividing
(i) the volume weighted average per share price of COP Common Stock on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date by (ii) the volume weighted average
per share price of Phillips 66 Common Stock on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date. 

“Phillips 66 Deferred Compensation Plans” has the meaning set forth in Section 6.3. 

“Phillips 66 Deferred Compensation Beneficiary” has the meaning set forth in Section 6.3. 

“Phillips 66 Director” means any individual who is a non-employee member of the board of directors of Phillips 66
immediately after the Effective Time. 
 “Phillips 66 Entity” means any member of the Phillips 66 Group.

  
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 “Phillips 66 401(k) Plan” has the meaning set forth in Section 6.1.

 “Phillips 66 401(k) Plan Beneficiaries” has the meaning set forth in Section 6.2. 

“Phillips 66 FSA” has the meaning set forth in Section 8.3(b). 

“Phillips 66 Group” has the meaning set forth in the Separation Agreement. 

“Phillips 66 Group Employee” means, subject to the penultimate sentence of Section 3.1(c), any individual who is
employed by a member of the Phillips 66 Group immediately after the Effective Time. 
 “Phillips 66 HSA” has
the meaning set forth in Section 8.3(c). 
 “Phillips 66 New Equity Plan” means the plan adopted by
Phillips 66 prior to the Effective Time and approved by COP, as sole shareholder of Phillips 66, under which the Phillips 66 equity-based awards described in Article IV shall be issued. 

“Phillips 66 Option” means a Phillips 66 Exercisable Option or a Phillips 66 Non-exercisable Option. 

“Phillips 66 Pension Participants” has the meaning set forth in Section 5.1. 

“Phillips 66 Pension Plan” has the meaning set forth in Section 5.1. 

“Phillips 66 Price Ratio” means the quotient obtained by dividing the Phillips 66 Stock Value by the COP
Pre-Distribution Stock Value. 
 “Phillips 66 PSUs” means restricted stock units initially granted in
connection with COP’s Performance Share Program or in connection with Phillips Petroleum Company’s Long-Term Incentive Plan or its predecessors. 
 “Phillips 66 RSAs” has the meaning set forth in Section 4.2(a). 
 “Phillips 66 SERP” has the meaning set forth in Section 7.1. 

“Phillips 66 SERP Beneficiaries” has the meaning set forth in Section 7.1. 

“Phillips 66 Share Ratio” means the quotient obtain by dividing the COP Pre-Distribution Stock Value by the Phillips 66
Stock Value. 
 “Phillips 66 Short-Term Incentive Plan” has the meaning set forth in Section 4.9(a).

 “Phillips 66 Stock Value” means the simple average of the volume weighted average per share price of
Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the first four Trading Days following the Distribution Date. 

  
 - 10 -

 “Phillips 66 Non-exercisable Option” has the meaning set forth in
Section 4.3(a)(ii). 
 “Phillips 66 Exercisable Option” has the meaning set forth in
Section 4.4(a)(ii). 
 “Phillips 66 Unvested SAR” has the meaning set forth in Section 4.4(b)(ii).

 “Phillips 66 Welfare Plan” means any Welfare Plan sponsored or maintained by any one or more members of the
Phillips 66 Group immediately after the Effective Time. 
 “Phillips 66 Welfare Plan Participants” has the
meaning set forth in Section 8.1. 
 “Post-Distribution Value” means, with respect to a Person’s COP
PSUs or RSUs or Phillips 66 PSUs or RSUs, as applicable, the product of (a) the number of shares of COP Common Stock or shares of Phillips 66 Common Stock, as applicable, subject to such COP PSUs or RSUs or Phillips 66 PSUs or RSUs, as
applicable, immediately after the Adjustment Time, and (b) the COP Post-Distribution Stock Value or Phillips 66 Stock Value, as applicable. 
 “Pre-Distribution Spread” means, with respect to any exercisable COP Option, COP Option held by a Former Employee, COP Option held by a Specified Transition Employee, or vested COP SAR,
the product of (a) the number of shares of COP Common Stock subject to such exercisable COP Option or vested COP SAR immediately prior to the Effective Time and (b) the excess of the COP Pre-Distribution Stock Value over the per-share
exercise price for such exercisable COP Option, COP Option held by a Former Employee, COP Option held by a Specified Transition Employee, or vested COP SAR, prior to any adjustment contemplated by Article IV. 

“Pre-Distribution Value” means, with respect to a Person’s COP PSUs or RSUs, the product of (a) the number of
shares of COP Common Stock subject to such COP PSUs or RSUs immediately prior to the Adjustment Time, and (b) the COP Pre-Distribution Stock Value. 
 “Privacy Contract” means any contract entered into in connection with applicable privacy protection Laws or regulations. 

“Regular Trading Hours” means the period beginning at 9:30 A.M. New York City time and ending 4:00 P.M. New York City
time. 
 “Revised Pension Plan Amount” has the meaning set forth in Section 5.2(b)(iv). 

“Securities Act” has the meaning set forth in the Separation Agreement. 

“Separation Agreement” has the meaning set forth in the recitals to this Agreement. 

“Subsidiary” has the meaning set forth in the Separation Agreement. 

“Trading Day” means the period of time during any given calendar day, commencing with the determination of the opening
price on the NYSE and ending with the 

  
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determination of the closing price on the NYSE, in which trading and settlement in shares of COP Common Stock or Phillips 66 Common Stock is permitted on the NYSE. 

“Transfer Date” means, with respect to a Delayed Transfer Employee, the date that such Delayed Transfer Employee
commences employment with a member of the COP Group or Phillips 66 Group, as applicable, with the Transfer Date being specified in the notice provided by COP. 
 “Transfer Document” has the meaning set forth in the Separation Agreement. 
 “Transition Services Agreement” has the meaning set forth in the Separation Agreement. 
 “True-Up Amount” has the meaning set forth in Section 5.2(b)(v). 
 “U.S.” means the United States of America. 

“WARN” means the U.S. Worker Adjustment and Retraining Notification Act, as amended, and the regulations promulgated
thereunder, and any applicable state or local Law equivalent. 
 “Welfare Plan” means, where applicable, a
“welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription
drug, dental, vision, and mental health and substance abuse), disability benefits, or life, accidental death and disability, and business travel insurance, pre-tax premium conversion benefits, dependent care assistance programs, employee assistance
programs, paid time off programs, contribution funding toward a health savings account, flexible spending accounts, or cashable credits. 
 Section 2.2 Interpretation. In this Agreement, unless the context clearly indicates otherwise: 
 (a) words used in the singular include the plural and words used in the plural include the singular; 
 (b) if a word or phrase is defined in this Agreement, its other grammatical forms, as used in this Agreement, shall have a corresponding meaning; 

(c) reference to any gender includes the other gender and the neuter; 

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words
“without limitation”; 
 (e) the words “shall” and “will” are used interchangeably and have the
same meaning; 

  
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 (f) the word “or” shall have the inclusive meaning represented by the phrase
“and/or”; 
 (g) relative to the determination of any period of time, “from” means “from and
including,” “to” means “to but excluding” and “through” means “through and including”; 
 (h) all references to a specific time of day in this Agreement shall be based upon Central Standard Time or Central Daylight Savings Time, as applicable, on the date in question; 

(i) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified;

 (j) accounting terms used herein shall have the meanings historically ascribed to them by COP and its Subsidiaries, including
Phillips 66 for this purpose, in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this Agreement; 
 (k) reference to any Article, Section or Schedule means such Article or Section of, or such Schedule to, this Agreement, as the case may be, and references in any Section or definition to any clause means
such clause of such Section or definition; 
 (l) the words “this Agreement,” “herein,”
“hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision of this Agreement; 

(m) the term “commercially reasonable efforts” means efforts which are commercially reasonable to enable a Party, directly or
indirectly, to satisfy a condition to or otherwise assist in the consummation of a desired result and which do not require the performing Party to expend funds or assume Liabilities other than expenditures and Liabilities which are customary and
reasonable in nature and amount in the context of a series of related transactions similar to the Distribution; 
 (n) reference
to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by this Agreement;

 (o) reference to any Law (including statutes and ordinances) means such Law (including any and all rules and regulations
promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 
 (p) references to any Person include such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted by this Agreement; a reference to such Person’s
“Affiliates” shall be deemed to mean such Person’s Affiliates following the Distribution and any reference to a third party shall be deemed to mean a Person who is not a Party or an Affiliate of a Party; 

  
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 (q) if there is any conflict between the provisions of the main body of this Agreement and
the Schedules hereto, the provisions of the main body of this Agreement shall control unless explicitly stated otherwise in such Schedule; 
 (r) unless otherwise specified in this Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the U.S.; 

(s) the titles to Articles and headings of Sections contained in this Agreement, in any Schedule and Exhibit and in the table of contents
to this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation of this Agreement; and 

(t) any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the case may be, shall mean
that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be. 
 ARTICLE III 
 ASSIGNMENT OF EMPLOYEES 

Section 3.1 Active Employees. 
 (a) Phillips 66 Group Employees. Except as otherwise set forth in this Agreement, effective not later than immediately following the Effective Time, the employment of each individual whose
employment duties are to be primarily related to the business activities of the Phillips 66 Group immediately after the Distribution Date (collectively, the “Phillips 66 Group Employees”) shall be continued by a member of the
Phillips 66 Group or shall be assigned and transferred to a member of the Phillips 66 Group (in each case, with such member as determined by Phillips 66). Each of the Parties agrees to execute, and to seek to have the applicable employees execute,
such documentation, if any, as may be necessary to reflect such assignments and transfers. 
 (b) COP Group
Employees. Except as otherwise set forth in this Agreement, effective not later than immediately following the Effective Time, the employment of each individual whose employment duties are to be primarily related to the business activities
of the COP Group immediately after the Distribution Date (collectively, the “COP Group Employees”) shall be continued by a member of the COP Group or shall be assigned and transferred to a member of the COP Group (in each case as
determined by COP). Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation, if any, as may be necessary to reflect such assignments and transfers. 

(c) Delayed Transfer Employees. The Parties recognize that a certain number of the COP Group Employees who are Delayed
Transfer Employees will be providing services to the Phillips 66 Group pursuant to the terms of the Transition Services Agreement and that certain of such Employees will be transferred to a Phillips 66 Entity at or around the time of the termination
of the services being provided under the Transition Services Agreement. In addition, the Parties recognize that it is in the best interest of both Parties to defer the transfers of certain other Delayed Transfer Employees until after the
Distribution Date. 

  
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Furthermore, the Parties recognize the possibility that an Employee may be transferred to the Phillips 66 Group and become a Phillips 66 Group Employee at the Effective Time, but at a later time
(no later than December 31, 2012), be transferred back to the COP Group and become a COP Group Employee, upon the approval of both COP and Phillips 66. Effective not later than the Transfer Date specified in the notice provided by COP (if to a
COP Group Employee) or by Phillips 66 (if to a Phillips 66 Group Employee), Delayed Transfer Employees will be transferred to the Phillips 66 Group or to the COP Group, as applicable. The Parties will cooperate and negotiate in good faith to amend
the Transfer Dates as may reasonably be required by the Parties, taking into consideration (i) any adjustments to the termination of the applicable services under the Transition Services Agreement for which a Delayed Transfer Employee was
primarily providing support under such agreement in order to avoid any material disruptions in the applicable services being provided under such agreement, (ii) any adjustments in the work assignments of the applicable Delayed Transfer Employee
for the COP Group or the Phillips 66 Group that reasonably require the Transfer Date of such Delayed Transfer Employee to be adjusted, and (iii) the need to avoid any break in service for the Delayed Transfer Employees; provided that in
no event shall the Transfer Date for any Delayed Transfer Employee extend more than the earlier of December 31, 2012 or three (3) months beyond the applicable Transfer Date provided in the notice. Notwithstanding anything to the contrary
in this Agreement, Delayed Transfer Employees who are COP Group Employees as of immediately following the Effective Time and are subsequently transferred to the Phillips 66 Group pursuant to this Section 3.1(c) shall be treated as COP Group
Employees for all purposes of this Agreement until their actual transfer, upon and following which they shall be treated as Phillips 66 Group Employees for all purposes of this Agreement. Notwithstanding anything to the contrary in this Agreement,
Delayed Transfer Employees who are Phillips 66 Group Employees as of the day immediately following the Distribution Date and are subsequently transferred to the COP Group pursuant to this Section 3.1(c) shall be treated as Phillips 66 Group
Employees for all purposes of this Agreement during their time served as an employee of the Phillips 66 Group, until their actual transfer, upon and following which they shall be treated as COP Group Employees for all purposes of this Agreement.

 (d) Leased Employees. COP Group Employees who have been leased or seconded to the Phillips 66 Group through an
Employee Leasing Agreement shall remain in the COP Benefits Plans during the duration of the secondment or leasing, which shall not exceed 18 months. Phillips 66 Group Employees who have been leased or seconded to the COP Group through an Employee
Leasing Agreement shall remain in the Phillips 66 Benefit Plans during the duration of the secondment or leasing, which shall not exceed 18 months. Any such employee leasing agreement(s) shall require the company benefiting from the services of each
leased employee to fully reimburse the leasing company for the cost of each such employee’s remuneration and shall contain other terms and conditions consistent with an arm’s length commercial relationship between the leasing company and
service recipient. 
 (e) At-Will Status. Notwithstanding the above or any other provision of this Agreement,
nothing in this Agreement shall create any obligation on the part of any member of the COP Group or any member of the Phillips 66 Group to (i) continue the employment of any Employee or permit the return from a leave of absence for any period
following the date of this Agreement or the Distribution Date (except as required by applicable Law) or (ii) change the 

  
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employment status of any Employee from “at will,” to the extent such Employee is an “at will” employee under applicable Law. 

(f) Severance. The Parties acknowledge and agree that the Distribution and the assignment, transfer or continuation of the
employment of Employees as contemplated by this Section 3.1 shall not be deemed a severance of employment of any Employee for purposes of this Agreement or any Benefit Plan of any member of the COP Group or any member of the Phillips 66 Group.

 (g) Not a Change of Control/Change in Control. The Parties acknowledge and agree that neither the consummation
of the Distribution nor any transaction in connection with the Distribution shall be deemed a “change of control,” “change in control,” or term of similar import for purposes of any Benefit Plan of any member of the COP Group or
any member of the Phillips 66 Group. 
 (h) Payroll and Related Taxes. With respect to the portion of the tax year
occurring prior to the day immediately following the Distribution Date, COP will (i) be responsible for all payroll obligations, tax withholding and reporting obligations and (ii) furnish a Form W-2 or similar earnings statement to all
Phillips 66 Group Employees for such period. With respect to the remaining portion of such tax year, Phillips 66 will (i) be responsible for all payroll obligations, tax withholding, and reporting obligations regarding Phillips 66 Group
Employees and (ii) furnish a Form W-2 or similar earnings statement to all Phillips 66 Group Employees. With respect to each Phillips 66 Group Employee, COP and Phillips 66 shall, and shall cause their respective Affiliates to (to the extent
permitted by applicable Law and practicable) (i) treat Phillips 66 (or the applicable Phillips 66 Entity) as a “successor employer” and COP (or the applicable COP Entity) as a “predecessor,” within the meaning of Sections
3121(a)(1) and 3306(b)(1) of the Code, to the extent appropriate, for purposes of taxes imposed under the United States Federal Insurance Contributions Act, as amended (“FICA”), or the United States Federal Unemployment Tax Act, as
amended (“FUTA”), (b) cooperate with each other to avoid, to the extent possible, the restart of FICA and FUTA upon or following the Effective Time with respect to each such Phillips 66 Group Employee for the tax year during
which the Effective Time occurs, and (c) file tax returns, exchange wage payment information, and report wage payments made by the respective predecessor and successor employer on separate IRS Forms W-2 or similar earnings statements to each
such Phillips 66 Group Employee for the tax year in which the Effective Time occurs, in a manner provided in Section 4.02(l) of Revenue Procedure 2004-53. 
 (i) Employment Contracts; Expatriate Obligations. Phillips 66 will assume and honor, or will cause a Phillips 66 Entity to assume and honor, any agreements to which any Phillips 66 Group
Employee is party with either any COP Entity or any joint venture with a COP Entity, including any (i) employment contract, (ii) retention, severance or change of control arrangement or (iii) expatriate (including any international
assignee) contract or arrangement (including agreements and obligations regarding repatriation, relocation, equalization of taxes and living standards in the host country). 
 (j) Collective Bargaining Agreements. Schedule 3.1(j) sets forth a list of collective bargaining agreements relating to the Phillips 66 Group Employees in effect on the

  
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date of this Agreement (the “Collective Bargaining Agreements”). Prior to the Distribution Date, COP and Phillips 66 will take or cause to be taken any actions necessary to cause
a Phillips 66 Entity to assume the Collective Bargaining Agreements to the maximum extent permitted by applicable Law. Nothing in this Agreement is intended to alter the provisions of any Collective Bargaining Agreement or modify in any way the
obligations owed to the Employees covered by any such agreement. 
 Section 3.2 Former Employees. All former employees of
COP who have an employment end date on or before the Effective Time, regardless of whether or not they provided services to a downstream business while employed by COP, shall be a “Former COP Group Employee.” 

Section 3.3 Employment Law Obligations. 
 (a) WARN Act. After the Effective Time, (i) COP shall be responsible for providing any necessary WARN notice (and meeting any similar state Law notice requirements) with respect to any
termination of employment of any COP Group Employee and (ii) Phillips 66 shall be responsible for providing any necessary WARN notice (and meeting any similar state Law notice requirements) with respect to any termination of employment of any
Phillips 66 Group Employee. 
 (b) Compliance With Employment Laws. On and after the Distribution Date,
(i) each member of the COP Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related Laws and requirements relating to the employment
of COP Group Employees and the treatment of any applicable Former COP Group Employees in respect of their former employment, and (ii) each member of the Phillips 66 Group shall be responsible for adopting and maintaining any policies or
practices, and for all other actions and inactions, necessary to comply with employment-related Laws and requirements relating to the employment of Phillips 66 Group Employees. 

Section 3.4 Employee Records. 
 (a) Sharing of Information. Subject to any limitations imposed by applicable Law, COP and Phillips 66 (acting directly or through members of the COP Group or the Phillips 66 Group,
respectively) shall provide to the other and their respective agents and vendors all information necessary for the Parties to perform their respective duties under this Agreement. The Parties also hereby agree to enter into any business associate
arrangements that may be required for the sharing of any Information pursuant to this Agreement to comply with the requirements of HIPAA. 
 (b) Transfer of Personnel Records and Authorization. Subject to any limitation imposed by applicable Law, on the Distribution Date, COP shall transfer and assign to Phillips 66 all personnel
records, all immigration documents, including I-9 forms and work authorizations, all payroll deduction authorizations and elections, whether voluntary or mandated by Law, including but not limited to W-4 forms and deductions for benefits under the
applicable Phillips 66 Benefit Plan and all absence management records, Family and Medical 

  
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Leave Act records, insurance beneficiary designations, Flexible Spending Account enrollment confirmations, attendance, and return to work information (“Benefit Management
Records”) relating to Phillips 66 Welfare Plan Participants. COP shall transfer and assign to Phillips 66 all personnel records, immigration documents, payroll forms and benefit management records relating to Delayed Transfer Employees as
soon as administratively feasible after the Transfer Date for each Delayed Transfer Employee. Subject to any limitations imposed by applicable Law, COP, however, may retain originals of, copies of, or access to personnel Records, immigration
records, payroll forms and Benefit Management Records as long as necessary to provide services to Phillips 66 (acting on its behalf pursuant to the Transition Services Agreement between the Parties entered into as of the date of this Agreement).
Immigration records will, if and as appropriate, become a part of Phillips 66’s public access file. Phillips 66 will use personnel records, payroll forms and benefit management records for lawful purposes only, including calculation of
withholdings from wages and personnel management. It is understood that following the Distribution Date, COP records so transferred and assigned may be maintained by Phillips 66 (acting directly or through one of its Subsidiaries) pursuant to
Phillips 66’s applicable records retention policy. 
 (c) Access to Records. To the extent not inconsistent
with this Agreement and any applicable privacy protection Laws or regulations or Privacy Contracts, reasonable access to Employee-related records after the Distribution Date will be provided to members of the COP Group and members of the Phillips 66
Group pursuant to the terms and conditions of Section 5.7 of the Indemnification and Release Agreement. In addition, notwithstanding anything to the contrary, Phillips 66 shall provide COP with reasonable access to those records necessary for
its administration of any plans or programs on behalf of COP Group Employees and Former COP Group Employees after the Distribution Date as permitted by any applicable privacy protection Laws or regulations or Privacy Contracts. COP shall also be
permitted to retain copies of all restrictive covenant agreements with any Phillips 66 Group Employee in which any member of the COP Group has a valid business interest. In addition, COP shall provide Phillips 66 with reasonable access to those
records necessary for its administration of any plans or programs on behalf of Phillips 66 Group Employees after the Distribution Date as permitted by any applicable privacy protection Laws or regulations or Privacy Contracts. Phillips 66 shall also
be permitted to retain copies of all restrictive covenant agreements with any COP Group Employee or Former COP Group Employee in which any member of the Phillips 66 Group has a valid business interest. 

(d) Maintenance of Records. With respect to retaining, destroying, transferring, sharing, copying and permitting access to
all Employee-related information, COP and Phillips 66 shall comply with all applicable Laws, regulations and internal policies, and shall indemnify and hold harmless each other from and against any and all Liability, claims, actions, and damages
that arise from a failure (by the indemnifying party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations, Privacy Contracts and internal policies applicable to such information. 

(e) No Access to Computer Systems or Files. Except as set forth in the Indemnification and Release Agreement or any
Transfer Document, no provision of this Agreement shall give (i) any member of the COP Group direct access to the computer systems or other files, records or databases of any member of the Phillips 66 Group or (ii) any member

  
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of the Phillips 66 Group direct access to the computer systems or other files, records or databases of any member of the COP Group, unless specifically permitted by the owner of such systems,
files, records or databases. 
 (f) Confidentiality. The provisions of this Section 3.4 shall be in addition
to, and not in derogation of, the provisions of the Indemnification and Release Agreement governing confidential information, including Section 5.8 of the Indemnification and Release Agreement. Except as otherwise set forth in this Agreement,
all records and data relating to Employees shall, in each case, be subject to the confidentiality provisions of the Indemnification and Release Agreement and any other applicable agreement and applicable Law. 

(g) Cooperation. Each Party shall use commercially reasonable efforts to cooperate to share, retain, and maintain data and
records that are necessary or appropriate to further the purposes of this Section 3.4 and for each Party to administer its respective Benefit Plans to the extent consistent with this Agreement and applicable Law, and each Party agrees to
cooperate as long as is reasonably necessary to further the purposes of this Section 3.4. Except as provided under any Transfer Document, no Party shall charge another Party a fee for such cooperation. 

Section 3.5 Non-Solicitation. Each party agrees that, for a period of one year from the Distribution Date, such party (a
“Soliciting Party”) will not solicit for employment any employee of any other party (a “Protected Party”); provided, however, that it is understood that this employee non-solicitation provision shall
not prohibit: (a) any transfers of Delayed Transfer Employees; (b) generalized solicitations by advertising and the like, which are not directed to specific individuals or employees of the Protected Party; or (c) solicitations of
persons whose employment was terminated by the Protected Party. 
 ARTICLE IV 

EQUITY AND INCENTIVE COMPENSATION PLANS 
 Section 4.1 General Principles. 
 (a) COP and Phillips 66 shall take any and
all reasonable actions as shall be necessary and appropriate to further the provisions of this Article IV, including, to the extent practicable, providing written notice or similar communication to each Employee who holds one or more awards granted
under any of the COP Equity Plans informing such Employee of (i) the actions contemplated by this Article IV with respect to such awards and (ii) whether (and during what time period) any “blackout” period shall be imposed upon
holders of awards granted under any of the COP Equity Plans during which time awards may not be exercised or settled, as the case may be. 
 (b) Following the Distribution, a grantee who has outstanding awards under one or more of the COP Equity Plans and/or replacement awards under the Phillips 66 New Equity Plan shall be considered to have
been employed by the applicable plan sponsor before and after the Distribution for purposes of (i) vesting and (ii) determining the date of termination of employment as it applies to any such award. 

  
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 (c) No award described in this Article IV, whether outstanding or to be issued, adjusted,
substituted or cancelled by reason of or in connection with the Distribution, shall be adjusted, settled, cancelled, or exercisable, until in the judgment of the administrator of the applicable plan or program such action is consistent with all
applicable Laws, including federal securities Laws. Any period of exercisability will not be extended on account of a period during which such an award is not exercisable pursuant to the preceding sentence. 

(d) The adjustment or conversion of COP Options, COP SARs, COP RSUs and COP PSUs shall be effectuated in a manner that is intended to
avoid the imposition of any penalty or other taxes on the holders thereof pursuant to Section 409A of the Code. 
 Section
4.2 Restricted Stock. Each holder of outstanding COP RSAs immediately prior to the Effective Time, whether a COP Group Employee, a Former COP Group Employee or a Phillips 66 Group Employee, shall receive, upon the Distribution being made,
such number of shares of Phillips 66 restricted stock (“Phillips 66 RSAs”) as determined by applying the Distribution Ratio in the same way as if the outstanding COP RSAs were fully vested shares of COP Common Stock as of the
Effective Time. The COP RSAs outstanding following the Distribution are hereinafter referred to as “Adjusted COP RSAs.” Except as set forth in this Section 4.2, the Adjusted COP RSAs and the Phillips 66 RSAs shall be subject to
substantially the same terms and conditions immediately following the Effective Time as applicable to COP RSAs immediately prior to the Effective Time. 
 Section 4.3 Non-exercisable Stock Options. 
 (a) Treatment of
Outstanding Non-exercisable Stock Options. 
 (i) COP Group Employees. Each non-exercisable COP
Option outstanding under the COP Equity Plans which is held by a COP Group Employee shall remain an option to purchase COP Common Stock issued under the applicable COP Equity Plan (each such option, an “Adjusted COP Non-exercisable
Option”). Each Adjusted COP Non-exercisable Option shall be subject to the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding non-exercisable COP Option immediately prior to the
Effective Time; provided, however, that from and after the Effective Time: 
 (x) the
per-share exercise price of each such Adjusted COP Non-exercisable Option shall be equal to the product of (A) the per-share exercise price of the corresponding non-exercisable COP Option immediately prior to the Effective Time and (B) the
COP Price Ratio, rounded up to the nearest whole cent (the “COP Adjusted Exercise Price”); and 

(y) the number of shares of COP Common Stock subject to each such Adjusted COP Non-exercisable Option shall be equal
to the product of (A) the number of shares of COP Common Stock subject to the corresponding non-exercisable COP Option immediately prior to the Effective Time and (B) the quotient obtained by dividing (I) the excess of the COP
Pre-Distribution Stock Value over the original exercise price of such non-exercisable COP Option by 

  
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(II) the excess of the COP Post-Distribution Stock Value over the COP Adjusted Exercise Price, with any fractional share rounded down to the nearest whole share. 

(ii) Phillips 66 Group Employees. Each non-exercisable COP Option outstanding under the COP Equity Plans which is
held by a Phillips 66 Employee at the Effective Time shall be converted as of the Effective Time into an option to purchase shares of Phillips 66 Common Stock (each such option, a “Phillips 66 Non-exercisable Option”) pursuant to
the terms of the Phillips 66 New Equity Plan subject to terms and conditions after the Effective Time that are substantially similar to the terms and conditions applicable to the corresponding non-exercisable COP Option immediately prior to the
Effective Time; provided, however, that from and after the Effective Time: 
 (x) the
per-share exercise price of each such Phillips 66 Non-exercisable Option shall be equal to the product of (A) the per-share exercise price of the corresponding non-exercisable COP Option immediately prior to the Effective Time and (B) the
Phillips 66 Price Ratio, rounded up to the nearest whole cent (the “Phillips 66 Adjusted Exercise Price”); and 
 (y) the number of shares of Phillips 66 Common Stock subject to each such Phillips 66 Non-exercisable Option shall be equal to the product of (A) the number of shares of COP Common Stock subject
to the corresponding non-exercisable COP Option immediately prior to the Effective Time and (B) the quotient obtained by dividing (I) the excess of the COP Pre-Distribution Stock Value over the original exercise price of such
non-exercisable COP Option by (II) the excess of the Phillips 66 Stock Value over the Phillips 66 Adjusted Exercise Price, with any fractional share rounded down to the nearest whole share. 

(iii) Former Employees. Each non-exercisable COP Option held by a Former Employee shall be adjusted at the
Effective Time such that the holder of such non-exercisable COP Option shall immediately following the Effective Time holds an adjusted non-exercisable option to purchase COP Common Stock (an “Adjusted COP Non-exercisable Option”)
and a non-exercisable option to purchase Phillips 66 Common Stock (a “Phillips 66 Non-exercisable Option”). Each Adjusted COP Non-exercisable Option and Phillips 66 Non-exercisable Option shall be subject to substantially the same
terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding exercisable COP Option immediately prior to the Effective Time; provided, however, that from and after the Effective Time:

 (x) the per-share exercise price of each such Adjusted COP Non-exercisable Option shall be the COP Adjusted
Exercise Price; and (y) the number of shares of COP Common Stock subject to each such Adjusted COP Non-exercisable Option shall be equal to the product of such number of shares multiplied by the quotient obtained by dividing (A) the
Pre-Distribution Spread by (B) the sum of (I) the excess of the COP Post-Distribution Stock Value over the COP Adjusted Exercise Price plus (II) one half the excess of the Phillips 66 Stock Value over the Phillips 66 Adjusted Exercise
Price; and 

  
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 (y) the per-share exercise price of each such Phillips 66 Non-exercisable
Option shall be the Phillips 66 Adjusted Exercise Price, and (y) the number of shares of Phillips 66 Common Stock subject to each such Phillips 66 Non-exercisable Option shall be equal to one half the number of shares subject to the
corresponding Adjusted COP Exercisable Option, with any fractional share rounded down to the nearest whole share. 
 (b)
Special Rules for Delayed Transfer Employees Holding Non-exercisable Stock Options. 
 (i) Each
non-exercisable COP Option held by a Delayed Transfer Employee who is not a Phillips 66 Employee shall be treated as set forth in Section 4.3(a)(i) on the same basis as any other non-exercisable COP Option. Each non-exercisable COP Option held
by a Delayed Transfer Employee who is a Phillips 66 Employee shall be treated as set forth in Section 4.3(a)(ii) on the same basis as any other non-exercisable COP Option held by Phillips 66 Employees. 

(ii) Each non-exercisable COP Option held by a Delayed Transfer Employee who transfers from the COP Group to the Phillips
66 Group shall be converted as of such Transfer Date into an option to purchase shares of Phillips 66 Common Stock (each such option, a “Delayed Transfer Phillips 66 Option”) pursuant to the terms of the applicable Phillips 66
equity plan and shall be subject to terms and conditions after such Delayed Transfer Employee’s Transfer Date that are substantially similar to the terms and conditions applicable to the corresponding Adjusted COP Non-exercisable Option
immediately prior to such Delayed Transfer Employee’s Transfer Date; provided, however, that from and after the Effective Time: 
 (x) the per-share exercise price of each such Delayed Transfer Phillips 66 Option shall be equal to the product of (A) the per-share exercise price of the corresponding Adjusted COP
Non-exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and (B) the Phillips 66 Delayed Price Ratio, rounded up to the nearest whole cent; and 

(y) the number of shares of Phillips 66 Common Stock subject to each such Delayed Transfer Phillips 66 Option shall
be equal to the product of (A) the number of shares of COP Common Stock subject to the corresponding Adjusted COP Non-exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and (B) the quotient obtained
by dividing (I) the excess of the volume weighted average per share price of COP Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date over
the exercise price of the Adjusted COP Non-exercisable Option by (II) the excess of the volume weighted average per share price of Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before
such Delayed Transfer Employee’s Transfer Date over the exercise price for the Delayed Transfer Phillips 66 Option, as determined under clause (x) of this 

  
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Section 4.3(b)(ii), with any fractional share rounded down to the nearest whole share. 
 (iii) Each Phillips 66 Non-exercisable Option held by a Delayed Transfer Employee who transfers from the Phillips 66 Group to the COP Group shall be converted as of such Transfer Date into an option to
purchase shares of COP Common Stock (each such option, a “Delayed Transfer COP Option”) pursuant to the terms of the applicable COP equity plan and shall be subject to terms and conditions after such Delayed Transfer Employee’s
Transfer Date that are substantially similar (to the extent practicable) to the terms and conditions applicable to the corresponding Phillips 66 Non-exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date;
provided, however, that from and after the Effective Time: 
 (x) the per-share exercise price
of each such Delayed Transfer COP Option shall be equal to the product of (A) the per-share exercise price of the corresponding Phillips 66 Non-exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and
(B) the COP Delayed Price Ratio, rounded up to the nearest whole cent; and 
 (y) the number of shares
of COP Common Stock subject to each such Delayed Transfer COP Option shall be equal to the product of (A) the number of shares of Phillips 66 Common Stock subject to the corresponding Phillips 66 Non-exercisable Option immediately prior to such
Delayed Transfer Employee’s Transfer Date and (B) the quotient obtained by dividing (I) the excess of the volume weighted average per share price of Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the last
Trading Day immediately before such Delayed Transfer Employee’s Transfer Date over the exercise price of the Phillips 66 Non-exercisable Option by (II) the excess of the volume weighted average per share price of COP Common Stock trading on the
NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date over the exercise price for the Delayed Transfer COP Option, as determined under clause (x) of this
Section 4.3(b)(iii), with any fractional share rounded down to the nearest whole share. 
 Section 4.4 Exercisable Stock
Options and Vested Stock Appreciation Rights. 
 (a) Treatment of Outstanding Exercisable Stock Options. Each
Exercisable COP Option regardless of who holds such exercisable COP option shall be adjusted at the Effective Time such that the holder of such exercisable COP Option shall immediately following the Effective Time holds an adjusted exercisable
option to purchase COP Common Stock (an “Adjusted COP Exercisable Option”) and an exercisable option to purchase Phillips 66 Common Stock (a “Phillips 66 Exercisable Option”). Each Adjusted COP Exercisable Option
and Phillips 66 Exercisable Option shall be subject to substantially the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding exercisable COP Option immediately prior to the Effective Time;
provided, however, that from and after the Effective Time: 

  
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 (i) (x) the per-share exercise price of each such Adjusted COP
Exercisable Option shall be the COP Adjusted Exercise Price; and (y) the number of shares of COP Common Stock subject to each such Adjusted COP Exercisable Option shall be equal to the product of such number of shares multiplied by the quotient
obtained by dividing (A) the Pre-Distribution Spread by (B) the sum of (I) the excess of the COP Post-Distribution Stock Value over the COP Adjusted Exercise Price plus (II) one half the excess of the Phillips 66 Stock Value over
the Phillips 66 Adjusted Exercise Price; and 
 (ii) (x) the per-share exercise price of each such Phillips
66 Exercisable Option shall be the Phillips 66 Adjusted Exercise Price, and (y) the number of shares of Phillips 66 Common Stock subject to each such Phillips 66 Exercisable Option shall be equal to one half the number of shares subject to the
corresponding Adjusted COP Exercisable Option, with any fractional share rounded down to the nearest whole share. 
 (b)
Treatment of Outstanding Vested Stock Appreciation Rights. Each vested COP SAR regardless of who holds such vested COP SAR, shall be adjusted as of the Effective Time such that the holder of such vested COP SAR shall, immediately
following the Effective Time, holds an adjusted vested stock appreciation right with respect to COP Common Stock (an “Adjusted Vested COP SAR”) and a vested stock appreciation right with respect to Phillips 66 Common Stock (a
“Vested Phillips 66 SAR”). Each Adjusted Vested COP SAR and each Vested Phillips 66 SAR shall be subject to substantially the same terms and conditions after the Effective Time as the terms and conditions applicable to the
corresponding vested COP SAR immediately prior to the Effective Time; provided, however, that from and after the Effective Time: 
 (i) (x) the per-share exercise price of each such Adjusted Vested COP SAR shall be the COP Adjusted Exercise Price, and (y) the number of shares of COP Common Stock subject to each such Adjusted
Vested COP SAR shall be equal to the product of the number of such shares multiplied by the quotient obtained by dividing (A) the Pre-Distribution Spread by (B) the sum of (I) the excess of the COP Post-Distribution Stock Value over
the COP Adjusted Exercise Price plus (II) one half the excess of the Phillips 66 Stock Value over the Phillips 66 Adjusted Exercise Price, with any fractional share rounded down to the nearest whole share; and 

(ii) (x) the per-share exercise price of each such Vested Phillips 66 SAR shall be the Phillips 66 Adjusted Exercise
Price, and (y) the number of shares of Phillips 66 Common Stock subject to each such Vested Phillips 66 SAR shall be equal to one half the number of shares subject to the corresponding Adjusted Vested COP SAR, with any fractional share rounded
down to the nearest whole share. 

  
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 Section 4.5 Restricted Stock Units. 

(a) Treatment of COP RSUs Held by COP Group Employees and Former COP Group Employees. COP RSUs held by a COP Group Employee
or a Former COP Group Employee immediately prior to the Effective Time shall be adjusted by multiplying the number of COP RSUs subject to each grant by the COP Share Ratio. If the resulting product includes a fractional share, the number of COP RSUs
shall be rounded up to the nearest whole share. The terms and condition to which the COP RSUs are subject shall be substantially the same terms and conditions prior to the Distribution and following the Distribution. 

(b) Treatment of COP RSUs Held by Phillips 66 Group Employees. COP RSUs held by Phillips 66 Group Employees immediately
prior to the Effective Time shall be replaced with an award of a number of Phillips 66 restricted stock units (the “Phillips 66 RSUs”) determined by multiplying the number of COP RSUs subject to each grant by the Phillips 66 Share
Ratio. If the resulting product includes a fractional share, the number of Phillips 66 RSUs shall be rounded up to the nearest whole share. Phillips 66 RSUs shall be subject to substantially the same terms and conditions after the Distribution as
the terms and conditions applicable to the corresponding COP RSUs immediately prior to the Distribution. 
 (c) Treatment
of COP RSUs Held by COP Directors or Phillips 66 Directors. COP RSUs held by COP Directors or Phillips 66 Directors immediately prior to the Effective Time shall receive, upon the Distribution being made, such number of Phillips 66 RSUs as
determined by applying the Distribution Ratio in the same way as if the COP RSUs were fully vested shares of COP Common Stock as of the Effective Time. The COP RSUs outstanding following the Distribution having been made are hereinafter referred to
as “Adjusted COP RSUs.” The Adjusted COP RSUs and the Phillips 66 RSUs shall be subject to substantially the same terms and conditions immediately following the Effective Time as applicable to COP RSUs immediately prior to the
Effective Time. 
 (d) Special Rules for Delayed Transfer Employees Holding RSUs. 

(i) COP RSUs held by a Delayed Transfer Employee who is employed by Phillips 66 immediately following the Effective Time
shall be adjusted under Section 4.5(b) above on the same basis as any other COP RSU held by any other Phillips 66 Employee. COP RSUs held by a Delayed Transfer Employee who is employed by COP immediately following the Effective Time shall be
adjusted under Section 4.5(a) on the same basis as any other COP RSU held by an individual who is not a Phillips 66 Employee. 
 (ii) COP RSUs held by a Delayed Transfer Employee who transfers from the COP Group to the Phillips 66 Group shall be converted as of such Delayed Transfer Employee’s Transfer Date into Phillips 66
RSUs (“Delayed Transfer Phillips 66 RSUs”). Delayed Transfer Phillips 66 RSUs shall be granted pursuant to the terms of the applicable Phillips 66 equity plan and shall be subject to terms and conditions after the holder’s
Transfer Date that are substantially similar to the terms and conditions applicable to the corresponding COP RSU grant immediately prior to such Delayed Transfer Employee’s Transfer Date, except as provided in this Section 4.5(d)(ii). The

  
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number of Delayed Transfer Phillips 66 RSUs shall be determined by multiplying (A) the number of COP RSUs subject to each grant by (B) the Phillips 66 Delayed Share Ratio. Any
fractional share which result from such calculation shall be rounded up to the nearest whole share. 
 (iii)
Phillips 66 RSUs held by a Delayed Transfer Employee who transfers from the Phillips 66 Group to the COP Group shall be converted as of such Delayed Transfer Employee’s Transfer Date into COP RSUs (“Delayed Transfer COP RSUs”).
Delayed Transfer COP RSUs shall be issued pursuant to the terms of the applicable COP equity plan and shall be subject to terms and conditions after the holder’s Transfer Date that are substantially similar to the terms and conditions
applicable to the corresponding Phillips 66 RSU grant immediately prior to such Delayed Transfer Employee’s Transfer Date, except as provided in this Section 4.5(d)(iii). The number of Delayed Transfer COP RSUs subject to each grant shall
be determined by multiplying (A) the number of Phillips 66 RSUs subject to each grant by (B) the COP Delayed Share Ratio. Any fractional share which result from such calculation shall be rounded up to the nearest whole share.

Section 4.6 Performance Share Units. Each holder of outstanding COP PSUs, whether a COP Group Employee, a Former COP Group
Employee or a Phillips 66 Group Employee, immediately prior to the Effective Time shall receive, upon the Distribution being made, such number of Phillips 66 PSUs as determined by applying the Distribution Ratio in the same way as if the COP PSUs
were fully vested shares of COP Common Stock as of the Effective Time. The COP PSUs outstanding following the Distribution having been made are hereinafter referred to as “Adjusted COP PSUs.” The Adjusted COP PSUs and the Phillips
66 PSUs shall be subject to substantially the same terms and conditions immediately following the Effective Time as applicable to COP PSUs immediately prior to the Effective Time. 

Section 4.7 Specified Transition Employees. Notwithstanding anything in this Agreement to the contrary, with regard to awards made
to certain specified employees set forth on Schedule 4.7 (“Specified Transition Employees”), the following shall apply: 
 (a) Treatment of COP Options Held by Specified Transition Employees. COP Options granted (a “COP Specified Transition Option”) and held by a Specified Transition Employee
immediately prior to the Effective Time shall be adjusted at the Effective Time such that the holder of such COP Specified Transition Option shall immediately following the Effective Time holds an adjusted option to purchase COP Common Stock (an
“Adjusted COP Specified Transition Option”) and an option to purchase Phillips 66 Common Stock (a “Phillips 66 Specified Transition Option”). Each Adjusted COP Specified Transition Option and Phillips 66 Specified
Transition Option shall be subject to substantially the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding COP Specified Transition Option immediately prior to the Effective Time;
provided, however, that from and after the Effective Time: 
 (x) the per-share exercise price of
each such Adjusted COP Specified Transition Option shall be the COP Adjusted Exercise Price; and (y) the number of shares of COP Common Stock subject to each such Adjusted COP Specified 

  
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Transition Option shall be equal to the product of such number of shares multiplied by the quotient obtained by dividing (A) the Pre-Distribution Spread by (B) the sum of (I) the
excess of the COP Post-Distribution Stock Value over the COP Adjusted Exercise Price plus (II) one half the excess of the Phillips 66 Stock Value over the Phillips 66 Adjusted Exercise Price; and 

(x) the per-share exercise price of each such Phillips 66 Specified Transition Option shall be the Phillips 66 Adjusted
Exercise Price, and (y) the number of shares of Phillips 66 Common Stock subject to each such Phillips 66 Specified Transition Option shall be equal to one half the number of shares subject to the corresponding Adjusted COP Specified Transition
Option, with any fractional share rounded down to the nearest whole share. 
 (b) Treatment of COP RSUs Held by Specified
Transition Employees. COP RSUs granted in 2012 (“COP Specified Transition RSUs”) and held by a Specified Transition Employee immediately prior to the Effective Time shall receive, upon the Distribution being made, such
number of Phillips 66 RSUs (“Phillips 66 Specified Transition RSUs”) as determined by applying the Distribution Ratio in the same way as if the COP Specified Transition RSUs were fully vested shares of COP Common Stock as of the
Effective Time. The COP Specified Transition RSUs outstanding following the Distribution having been made are hereinafter referred to as “Adjusted COP Specified Transition RSUs.” The Adjusted COP Specified Transition RSUs and the
Phillips 66 Specified Transition RSUs shall be subject to substantially the same terms and conditions immediately following the Effective Time as applicable to COP Specified Transition RSUs immediately prior to the Effective Time. 

Section 4.8 Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A. (a) By approving the adoption of this
Agreement, the respective Boards of Directors of each of COP and Phillips 66 intend to exempt from the short-swing profit recovery provisions of Section 16(b) of the Exchange Act, by reason of the application of Rule 16b-3 thereunder, all
acquisitions and dispositions of equity incentive awards by directors and officers of each of COP and Phillips 66, and the respective Boards of Directors of COP and Phillips 66 also intend expressly to approve, in respect of any equity-based award,
the use of any method for the payment of an exercise price and the satisfaction of any applicable Tax withholding (specifically including the actual or constructive tendering of shares in payment of an exercise price and the withholding of option
shares from delivery in satisfaction of applicable Tax withholding requirements) to the extent such method is permitted under the applicable COP Equity Plan and award agreement. 

(b) Notwithstanding anything in this Agreement to the contrary (including the treatment of supplemental and deferred compensation plans,
outstanding long-term incentive awards and annual incentive awards as described herein), COP and Phillips 66 agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to ensure that
(i) a federal income tax deduction for the payment of such supplemental or deferred compensation or long-term incentive award, annual incentive award or other compensation is, to the extent prescribed under the terms of the applicable plan and
award agreement, not limited by reason of Section 162(m) of the Code, and (ii) the treatment of such supplemental or deferred compensation or long-term incentive award, annual incentive

  
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award or other compensation does not cause the imposition of a penalty tax under Section 409A of the Code. 
 Section 4.9 Performance Share Program. (a) Immediately prior to the Effective Time, each ongoing performance period under the COP Performance Share Program shall be truncated and COP PSUs
shall be granted on a prorated basis based on the portion of each performance period that has elapsed prior to the Effective Time to COP Group Employees and Phillips 66 Group Employees who are participating in the COP Performance Share Program
immediately prior to the Effective Time based on actual performance as compared to the applicable quantitative and qualitative measures during each ongoing performance period. 
 (b) Not later than the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to, adopt a performance share program that is substantially similar to the COP Performance Share Program
and shall provide compensation opportunities under the Phillips 66 performance share program to each Phillips 66 Group Employee who participated in the COP Performance Share Program immediately prior to the Effective Time that are substantially
similar to the compensation opportunities that such Phillips 66 Group Employees had under the COP Performance Share Program immediately prior to the Effective Time. 
 (c) Immediately following the Effective Time, COP shall provide the COP Group Employees who participated in the COP Performance Share Program immediately prior to the Effective Time with compensation
opportunities under the COP Performance Share Program that are substantially similar to the compensation opportunities that such COP Group Employees had under the COP Performance Share Program immediately prior to the Effective Time. 

Section 4.10 Liabilities for Settlement of Awards. 
 (a) Settlement of COP Options. COP shall be responsible for all Liabilities associated with COP Options (regardless of the holder of such awards) including any option exercise, share delivery,
registration or other obligations related to the exercise of the COP Options. 
 (b) Settlement of Phillips 66 Options. Phillips
66 shall be responsible for all Liabilities associated with Phillips 66 Options (regardless of the holder of such awards) including any option exercise, share delivery, registration or other obligations related to the exercise of the Phillips 66
Options. 
 (c) Settlement of COP SARs. COP shall be responsible for all Liabilities associated with COP SARs (regardless of the
holder of such awards) including any stock appreciation right exercise, share delivery, registration or other obligations related to the exercise of the COP SARs. 
 (d) Settlement of Phillips 66 SARs. Phillips 66 shall be responsible for all Liabilities associated with Phillips 66 SARs (regardless of the holder of such awards) including any stock appreciation right
exercise, share delivery, registration or other obligations related to the exercise of the Phillips 66 SARs. 

  
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 (e) Settlement of Outstanding COP Restricted Stock. COP shall be responsible for all
Liabilities associated with COP Restricted Stock including any share delivery, registration or other obligations related to the settlement of the COP Restricted Stock awards. 
 (f) Settlement of Outstanding Phillips 66 Restricted Stock. Phillips 66 shall be responsible for all Liabilities associated with Phillips 66 Restricted Stock including any share delivery, registration or
other obligations related to the settlement of the Phillips 66 Restricted Stock awards. 
 (g) Settlement of Outstanding COP
RSUs. COP shall be responsible for all Liabilities associated with COP RSUs, including any share delivery, registration or other obligations related to the settlement of COP RSUs. 

(h) Settlement of Outstanding Phillips 66 RSUs. Phillips 66 shall be responsible for all Liabilities associated with Phillips 66 RSUs,
including any share delivery, registration or other obligations related to the settlement of the Phillips 66 RSUs. 
 Section
4.11 Bonus and Short-Term Incentive Payments. 
 (a) Not later than the Effective Time, Phillips 66 shall, or shall cause
another Phillips 66 Entity to, adopt a plan that will provide annual bonus or short-term cash incentive compensation opportunities for Phillips 66 Group Employees and Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group
that are substantially similar to the opportunities provided to such Employees immediately prior to the Effective Time (the “Phillips 66 Short-Term Incentive Plan”), subject to Phillips 66’s right to amend such plan after the
Effective Time in accordance with the terms thereof. The Phillips 66 Short-Term Incentive Plan shall be approved prior to the Effective Time by COP, as the sole shareholder of Phillips 66 and Phillips 66 Group Employees shall participate in such
Phillips 66 Short-Term Incentive Plan immediately following the Effective Time; provided, however, that service with COP shall be credited for the purposes of determining whether such Phillips 66 Group Employee had been a participant
in the Phillips 66 Short-Term Incentive Plan during the applicable performance period. 
 (b) For the avoidance of doubt,
(i) the Phillips 66 Group shall be solely responsible for funding, paying, and discharging all obligations relating to any annual cash incentive awards that any Phillips 66 Employee is eligible to receive under any Phillips 66 Group annual
bonus and other short-term incentive compensation plans with respect to payments made beginning at or after the Effective Time, including the Phillips 66 Short-Term Incentive Plan, and no member of the COP Group shall have any obligations with
respect thereto, and (ii) the COP Group shall be solely responsible for funding, paying, and discharging all obligations relating to any annual cash incentive awards that any COP Group Employee is eligible to receive under any COP annual bonus
plans with respect to payments made beginning at or after the Effective Time, and no member of the Phillips 66 Group shall have any obligations with respect thereto. 
 Section 4.12 Form S-8. Upon or as soon as reasonably practicable after the Effective Time and subject to applicable Law, Phillips 66 shall prepare and file with the SEC a registration 

  
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statement on Form S-8 (or another appropriate form) registering under the Securities Act the offering of a number of shares of Phillips 66 Common Stock at a minimum equal to the number of shares
subject to the Replacement Phillips 66 RSAs, Phillips 66 RSUs, Phillips 66 PSUs, Phillips 66 SARs, and the Phillips 66 Options. Phillips 66 shall use commercially reasonable efforts to cause any such registration statement to be kept effective (and
the current status of the prospectus or prospectuses required thereby to be maintained) as long as any Phillips 66 RSAs, Phillips 66 RSUs, Phillips 66 PSUs, Phillips 66 SAR, and Phillips 66 Options remain outstanding. 

Section 4.13 Tax Reporting and Withholding for Equity-Based Awards. COP (or one of its Subsidiaries) will be responsible for all
income, payroll, or other tax reporting related to income of COP Group Employees or COP Group Former Employees from equity-based awards, and Phillips 66 (or one of its Subsidiaries) will be responsible for all income, payroll, or other tax reporting
related to income of Phillips 66 Group Employees from equity-based awards. Similarly, COP will be responsible for all income, payroll, or other tax reporting related to income of its non-employee directors from equity-based awards, and Phillips 66
will be responsible for all income, payroll, or other tax reporting related to income of its non-employee directors from equity-based awards. Further, COP (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings
for COP Group Employees to each applicable taxing authority, and Phillips 66 (or one of its Subsidiaries) shall be responsible for remitting applicable tax withholdings for Phillips 66 Group Employees to each applicable taxing authority;
provided, however, that either COP or Phillips 66 shall act as agent for the other company by remitting amounts withheld in the form of shares or in conjunction with an exercise transaction to an appropriate taxing authority. COP and
Phillips 66 acknowledge and agree that the parties will cooperate with each other and with third-party providers to effectuate withholding and remittance of taxes, as well as required tax reporting, in a timely, efficient, and appropriate manner.

 Section 4.14 Plan Administrator. Each of COP and Phillips 66 agrees that it will use Bank of America Merrill Lynch for
at least two years immediately following the Effective Time to administer all employee equity awards that are outstanding immediately following the Effective Time (including all such equity awards that are adjusted in accordance with this
Section 4). 
 Section 4.15 Approval of Phillips 66 New Equity Plan. Not later than the Effective Time, Phillips 66
shall, or shall have caused a Phillips 66 Entity to, have adopted the Phillips 66 New Equity Plan. The Phillips 66 New Equity Plan shall be approved prior to the Effective Time by COP, as the sole shareholder of Phillips 66. 

ARTICLE V 
 U.S.
QUALIFIED DEFINED BENEFIT PLANS 
 Section 5.1 Establishment of Phillips 66 Pension Plan. Effective as of the
Distribution Date, Phillips 66 shall, or shall cause another Phillips 66 Entity to, establish a defined benefit pension plan and related trust to provide retirement benefits to Phillips 66 Group Employees who immediately prior to the Distribution
Date were participants in a COP Pension Plan (such defined benefit pension plan, the “Phillips 66 Pension Plan” and such Phillips 66 Employees, the 

  
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“Phillips 66 Pension Plan Participants”). Phillips 66 shall be responsible for taking all necessary, reasonable, and appropriate action to establish, maintain, and administer the
Phillips 66 Pension Plan so that it is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt under Section 501(a) of the Code. Phillips 66 (acting directly or through members of the Phillips 66 Group)
shall be responsible for any and all Liabilities (including Liability for funding) and other obligations with respect to the Phillips 66 Pension Plan. 
 Section 5.2 Phillips 66 Pension Plan Participants. 
 (a) Assumption of
COP Pension Plan Liabilities. Effective as of the Distribution Date, Phillips 66 (acting directly or through members of the Phillips 66 Group) hereby agrees to cause the Phillips 66 Pension Plan to assume, fully perform, pay, and discharge
all Liabilities under the COP Pension Plan relating to all Phillips 66 Pension Plan Participants as of the Distribution Date or, with respect to Delayed Transfer Employees, the Transfer Date. 

(b) Transfer of the COP Pension Plan Assets. 

(i) The Parties intend that the portion of the COP Pension Plan covering Phillips 66 Pension Plan Participants
 shall
be transferred to the Phillips 66 Pension Plan in accordance with Section 414(l) of the Code, Treasury Regulation 
Section 1.414(l)-1, and Section 208 of ERISA. No later than thirty (30) days prior to the Distribution Date, COP and
Phillips 66 (acting directly or through members of the COP Group or the Phillips 66 Group, respectively) shall, to the extent necessary, file an IRS Form 5310-A regarding the transfer of Assets and Liabilities from the COP Pension Plan to the
Phillips 66 Pension Plan. 
 (ii) Prior to the Distribution Date (or such later time as mutually agreed by the
Parties), COP shall cause the COP Actuary to determine the estimated value, as of the Distribution Date, of the Assets to be transferred to the Phillips 66 Pension Plan in accordance with the assumptions and valuation methodology set forth on
Schedule 5.2(b) attached hereto (the “Estimated Pension Plan Transfer Amount”). 
 (iii) Not
later than thirty (30) Business Days following the Distribution Date (or such later time as mutually agreed by the Parties), COP and Phillips 66 shall cooperate in good faith to cause an initial transfer of Assets from COP Pension Plan to the
Phillips 66 Pension Plan in an amount equal to ninety percent (90%) of the Estimated Pension Plan Transfer Amount (such amount, the “Initial Transfer Amount”). COP shall satisfy its obligation pursuant to this
Section 5.2(b)(iii) by causing the COP Pension Plan to transfer Assets equal to the Initial Transfer Amount. Assets may be transferred in cash, cash-like securities, or other cash equivalents, or in kind, or in a combination thereof, as
determined by COP in its sole discretion. 
 (iv) Within two hundred seventy (270) days (or such later time
as mutually agreed by the Parties) following the Distribution Date, COP shall cause the COP Actuary to provide Phillips 66 with a revised calculation of the value, as of the Distribution Date, of the Assets to be transferred to the Phillips 66
Pension Plan 

  
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determined in accordance with the assumptions and valuation methodology set forth on Schedule 5.2(b) attached hereto (the “Revised Pension Plan Transfer Amount”). Phillips 66 may
submit, at its sole cost and expense, the Revised Pension Plan Transfer Amount to the Phillips 66 Actuary for verification; provided, that, such verification process and any calculation performed by the Phillips 66 Actuary in connection
therewith shall be performed solely on the basis of the assumptions and valuation methodology set forth on Schedule 5.2(b) attached hereto. In order to perform such verification, upon request from Phillips 66, the Phillips 66 Actuary will receive
the data and additional detailed methodology used to calculate the Initial Transfer Amount and the Final Pension Plan Transfer Amount (if reasonably needed) from the COP Actuary. Phillips 66 will be responsible for the cost and expense of the
Phillips 66 Actuary and COP will be responsible for the cost and expense for the COP Actuary for such data transfer. In the event the Phillips 66 Actuary so determines that the value, as of the Distribution Date, of the Assets to be transferred to
the Phillips 66 Pension Plan differs from the Revised Pension Plan Transfer Amount, the Phillips 66 Actuary shall identify in writing to the COP Actuary all objections to the determination within sixty (60) days following provision of the
revised value calculation to Phillips 66 pursuant to the first sentence of this paragraph (iv), and the Phillips 66 Actuary and COP Actuary shall use good faith efforts to reconcile any such difference. If the Phillips 66 Actuary and the COP Actuary
fail to reconcile such differences, the Phillips 66 Actuary and the COP Actuary shall jointly designate a third, independent actuary whose calculation of the value, as of the Distribution Date, of the Assets to be transferred to the Phillips 66
Pension Plan shall be final and binding; provided, that, such calculation must be performed within sixty (60) days following designation of such third actuary and in accordance with the assumptions and valuation methodology set forth on
Schedule 5.2(b) attached hereto; and provided, further, that such value shall be between the value determined by the Phillips 66 Actuary and the Revised Pension Plan Transfer Amount or equal to either such value. COP and Phillips 66
shall each pay one-half of the costs incurred in connection with the retention of such independent actuary. The final, verified value, as of the Distribution Date, of the Assets to be transferred to the Phillips 66 Pension Plan as determined in
accordance with this Section 5.2(b)(iv) shall be referred to herein as the “Final Pension Plan Transfer Amount.” 
 (v) Within forty-five (45) days (or such later time as mutually agreed by the Parties) of the determination of the Final Pension Plan Transfer Amount, COP shall cause the COP Pension Plan to transfer
to the Phillips 66 Pension Plan (the date of such transfer, the “Final Transfer Date”) an amount (as determined by COP in its discretion, in kind, in cash, cash-like securities or other cash equivalents), equal to (A) the Final
Pension Plan Transfer Amount minus (B) the Initial Transfer Amount (such difference, as adjusted to reflect earnings or losses as described in this Section 5.2(b)(v), the “True-Up Amount”); provided, that, in the
event the True-Up Amount is negative, COP shall not be required to cause any such additional transfer and instead Phillips 66 shall be required to cause a transfer of cash, cash-like securities or other cash equivalents (or, if determined by COP in
its discretion, assets in kind) from the Phillips 66 Pension Plan to the COP Pension Plan in an amount equal to the absolute value of the True-Up Amount. The Parties acknowledge that the COP Pension Plan’s transfer of the True-Up Amount to the
Phillips 66 Pension Plan shall be in full settlement and satisfaction of the 

  
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obligations of COP to cause the transfer of, and the COP Pension Plan to transfer, Assets to the Phillips 66 Pension Plan pursuant to this Section 5.2(b)(v). The True-Up Amount, if any,
shall be paid from the COP Pension Plan to the Phillips 66 Pension Plan, as determined by COP in its discretion in kind, in cash, cash-like securities or other cash equivalents, and shall be adjusted to reflect earnings or losses during the period
from the Distribution Date to the Final Transfer Date. Such earnings or losses shall be determined based on the actual rate of return of the COP Pension Plan for the period commencing on (x) the first day of the calendar month in which the
Distribution Date occurs, if the Distribution Date is any date other than the last day of a calendar month, or (y) the first day of the calendar month immediately following the Distribution Date, if the Distribution Date is the last day of a
calendar month, and ending on the last calendar day of the month ending immediately prior to the Final Transfer Date. Earnings or losses for the period from such last day of the month to the Final Transfer Date shall be based on the actual rate of
return of the COP Pension Plan during the last calendar month ending immediately prior to the Final Transfer Date determined as of the date that is as close as administratively practicable to the Final Transfer Date. In the event that Phillips 66 is
obligated to cause the Phillips 66 Pension Plan to reimburse the COP Pension Plan pursuant to this Section 5.2(b)(v), such reimbursement shall be performed in accordance with the same principles set forth herein with respect to the payment of
the True-Up Amount. The Parties acknowledge that the Phillips 66 Pension Plan’s transfer of such reimbursement amount to the COP Pension Plan shall be in full settlement and satisfaction of the obligations of Phillips 66 to cause the transfer
of, and the Phillips 66 Pension Plan to transfer, Assets to the COP Pension Plan pursuant to this Section 5.2(b)(v). 
 (c)
Continuation of Elections. As of the Distribution Date, Phillips 66 shall cause the Phillips 66 Pension Plan to recognize and maintain all existing elections, including, but not limited to, beneficiary designations, payments from
elections and rights of alternate payees under qualified domestic relations orders with respect to Phillips 66 Pension Plan Participants under the COP Pension Plan. 
 Section 5.3 Delayed Transfer Employees. As of each Delayed Transfer Employee’s Transfer Date, Phillips 66 (acting directly or through a member of the Phillips 66 Group) shall cause the
Phillips 66 Pension Plan to recognize, to the extent practicable, all existing elections under the COP Pension Plan, including beneficiary designations, payments from elections, and rights of alternate payees under qualified domestic relations
orders with respect to each Delayed Transfer Employee who becomes a Phillips 66 Pension Plan Participant, and COP (acting directly or through a member of the COP Group) shall cause the COP Pension Plan to recognize, to the extent practicable, all
existing elections under the Phillips 66 Pension Plan, including beneficiary designations, payments from elections, and rights of alternate payees under qualified domestic relations orders with respect to each Delayed Transfer Employee who becomes a
COP Pension Plan Participant. As of each Delayed Transfer Employee’s Transfer Date, COP and Phillips 66 (acting directly or through a member of their respective Groups) shall take such actions as may be necessary to transfer assets and assume
liabilities under the COP Pension Plan and the Phillips 66 Pension Plan in accordance with the provisions of Sections 5.1 and 5.2, but applied at the Transfer Date rather than at the Distribution Date. 

  
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 ARTICLE VI 
 U.S. QUALIFIED DEFINED CONTRIBUTION PLANS 
 Section 6.1 Establishment of the
Phillips 66 401(k) Plan. As of the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to, establish a defined contribution plan and trust for the benefit of Phillips 66 Group Employees (the “Phillips 66 401(k)
Plan”). Phillips 66 shall be responsible for taking all necessary, reasonable, and appropriate action to establish, maintain, and administer the Phillips 66 401(k) Plan so that it is qualified under Section 401(a) of the Code and that
the related trust thereunder is exempt under Section 501(a) of the Code. Phillips 66 (acting directly or through its Affiliates) shall be responsible for any and all Liabilities and other obligations with respect to the Phillips 66 401(k) Plan.

 Section 6.2 Transfer of COP 401(k) Plan Assets. Not later than thirty (30) days following the Distribution Date
(or such later time as mutually agreed by the Parties), COP shall cause the accounts (including any outstanding loan balances) in the COP 401(k) Plan attributable to Phillips 66 Group Employees who will participate in the Phillips 66 401(k) Plan
(the “Phillips 66 401(k) Plan Beneficiaries”) and all of the Assets in the COP 401(k) Plan related thereto to be transferred in-kind to the Phillips 66 401(k) Plan, and Phillips 66 shall cause the Phillips 66 401(k) Plan to accept
such transfer of accounts and underlying Assets and, effective as of the date of such transfer, to assume and to fully perform, pay, and discharge, all obligations of the COP 401(k) Plan relating to the accounts of the Phillips 66 401(k) Plan
Beneficiaries (to the extent the Assets related to those accounts are actually transferred from the COP 401(k) Plan to the Phillips 66 401(k) Plan) as of the Distribution Date. The transfer of Assets shall be conducted in accordance with
Section 414(l) of the Code, Treasury Regulation Section 1.414(1)-1, and Section 208 of ERISA. 
 Section 6.3
Treatment of Phillips 66 Common Stock and COP Common Stock . 
 (a) Phillips 66 Common Stock Fund; Phillips 66
Common Stock Held in COP 401(k) Plan Accounts. The Phillips 66 401(k) Plan will provide, effective as of the Effective Time: (i) for the establishment of a Phillips 66 Common Stock fund; (ii) that such Phillips 66 Common Stock fund
shall receive a transfer of and hold all shares of Phillips 66 Common Stock distributed in connection with the Distribution in respect of COP Common Stock held in COP 401(k) Plan accounts of Phillips 66 401(k) Plan Beneficiaries; and
(iii) that, following the Effective Time, contributions made by or on behalf of such Phillips 66 401(k) Plan Beneficiaries may be allocated to the Phillips 66 Common Stock fund. Shares of Phillips 66 Common Stock distributed in connection with
the Distribution in respect of shares of COP Common Stock held in COP 401(k) Plan accounts of COP Group Employees or Former COP Group Employees who participate in the COP 401(k) Plan (the “COP 401(k) Plan Beneficiaries”) shall be
deposited in a Phillips 66 Common Stock fund under the COP 401(k) Plan, and COP 401(k) Plan Beneficiaries will be prohibited from increasing their holdings in such Phillips 66 Common Stock fund under the COP 401(k) Plan and may elect to liquidate
their holdings in such Phillips 66 Common Stock fund and invest those monies in any other investment fund offered under the COP 401(k) Plan. Any shares of Phillips 66 Common Stock held in COP 401(k) Plan accounts of Phillips 66 Group Employees shall
be transferred in kind to the trust underlying the Phillips 66 401(k) Plan pursuant to Section 6.2 of this Agreement. 

  
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 (b) COP Common Stock in Phillips 66 401(k) Plan Accounts. Without limiting the
generality of the provisions of Section 6.2, shares of COP Common Stock held in COP 401(k) Plan accounts of Phillips 66 401(k) Plan Beneficiaries prior to the Effective Time shall be transferred in kind to a COP Common Stock Fund under the
Phillips 66 401(k) Plan pursuant to Section 6.2 of this Agreement. Phillips 66 401(k) Plan Beneficiaries will be prohibited from increasing their holdings in COP Common Stock under such COP Common Stock Fund and may elect to liquidate their
holdings in such COP Common Stock Fund and invest those monies in any other investment fund offered under the Phillips 66 401(k) Plan. 
 Section 6.4 Continuation of Elections. As of the Distribution Date, Phillips 66 (acting directly or through members of the Phillips 66 Group) shall cause the Phillips 66 401(k) Plan to recognize
and maintain all COP 401(k) Plan elections, including, but not limited to, deferral, investment, and payment form elections, beneficiary designations, and the rights of alternate payees under qualified domestic relations orders with respect to
Phillips 66 Group Employees to the extent such election or designation is available under the Phillips 66 401(k) Plan. 

Section 6.5 Delayed Transfer Employees. As of each Delayed Transfer Employee’s Transfer Date, Phillips 66 (acting directly or
through a member of the Phillips 66 Group) shall cause the Phillips 66 401(k) Plan to recognize, to the extent practicable, all existing elections under the COP 401(k) Plan, including beneficiary designations, payments from elections, and rights of
alternate payees under qualified domestic relations orders with respect to each Delayed Transfer Employee who becomes a Phillips 66 401(k) Plan Participant, and COP (acting directly or through a member of the COP Group) shall cause the COP 401(k)
Plan to recognize, to the extent practicable, all existing elections under the Phillips 66 401(k) Plan, including beneficiary designations, payments from elections, and rights of alternate payees under qualified domestic relations orders with
respect to each Delayed Transfer Employee who becomes a COP 401(k) Plan Participant. As of each Delayed Transfer Employee’s Transfer Date, COP and Phillips 66 (acting directly or through a member of their respective Groups) shall take such
actions as may be necessary to transfer assets and assume liabilities under the COP 401(k) Plan and the Phillips 66 401(k) Plan in accordance with the provisions of Sections 6.2 and 6.3, but applied at the Transfer Date rather than at the
Distribution Date. 
 Section 6.6 Tax Qualified Status. Phillips 66 will take all steps and make any necessary
filings with the IRS to establish and maintain the Phillips 66 401(k) Plan so that it is qualified under Section 401(a) of the Code and the related trust is tax-exempt under Section 501(a) of the Code, including seeking and obtaining a
favorable determination letter from the IRS as to such qualification. Furthermore, no later than thirty (30) days prior to the Distribution Date, COP and Phillips 66 (each acting directly or through their respective Affiliates) shall, to the
extent necessary, file IRS Form 5310-A regarding the transfer of Assets and Liabilities from the COP 401(k) Plan to the Phillips 66 401(k) Plan as discussed in this Article VI. 

  
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 ARTICLE VII 
 NONQUALIFIED COMPENSATION PLANS 
 Section 7.1 Excess Benefit Plans.

 (a) Establishing Phillips 66 SERP. On or prior to the Effective Time, Phillips 66 shall, or shall cause another
Phillips 66 Entity to, establish and adopt an excess benefit plan (the “Phillips 66 SERP”) to provide each Phillips 66 Group Employee who was a participant in the COP SERP as of immediately prior to the Effective Time (the
“Phillips 66 SERP Beneficiaries”) benefits in respect of service and compensation following the Effective Time substantially similar to those accrued with respect to such person under the COP SERP as of immediately prior to the
Effective Time. Each member of the Phillips 66 Group shall cease to be a participating employer in the COP SERP, and the Phillips 66 Group Employees shall no longer participate in the COP SERP, effective as of the Effective Time. Notwithstanding the
above, with respect to any Delayed Transfer Employee whose employment is transferred from a COP Entity to a Phillips 66 Entity on a Transfer Date and who was a participant in the COP SERP (and each alternate payee or beneficiary of such person) as
of immediately prior to such Transfer Date, the Phillips 66 SERP shall provide benefits substantially similar to those accrued with respect to such person under the COP SERP as of immediately prior to such Delayed Transfer Employee’s transfer.
The Parties agree that for purposes of the COP SERP the employment of a Phillips 66 SERP Beneficiary shall not be considered to have terminated as a result of the Distribution or the transfer of employment from COP (or a COP Entity) to Phillips 66
(or a Phillips 66 Entity), and such employment shall only be considered to terminate for purposes of the Phillips 66 SERP when the employment of such Phillips 66 SERP Beneficiary with the Phillips 66 Group terminates in accordance with the terms of
the Phillips 66 SERP and applicable Laws. 
 (b) Liability and Responsibility. The Liabilities in respect of
Phillips 66 SERP Beneficiaries under the COP SERP shall be assumed by the member of the Phillips 66 Group which sponsors the Phillips 66 SERP, effective as of the Effective Time; provided that such Liabilities in respect of each such Phillips
66 SERP Beneficiary who is a Delayed Transfer Employee shall be assumed by such member of the Phillips 66 Group effective as of close of business on the applicable Transfer Date. Phillips 66 shall have sole responsibility for the administration of
the Phillips 66 SERP and the payment of benefits thereunder to or on behalf of Phillips 66 Group Employees, and no member of the COP Group shall have any liability or responsibility therefor. COP shall have sole responsibility for the administration
of the COP SERP and the payment of benefits thereunder to or on behalf of COP Group Employees and Former COP Group Employees, and no member of the Phillips 66 Group shall have any liability or responsibility therefor. 

Section 7.2 Key Employee Deferred Compensation Plans. 
 (a) Establishing Phillips 66 Deferred Compensation Plans. On or prior to the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to, establish and adopt deferred
compensation plans for its key employees and directors (the “Phillips 66 Deferred Compensation Plan”) to provide each Phillips 66 Group Employee or Phillips 66 Director who was a participant in the COP Deferred Compensation Plans as
of immediately 

  
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prior to the Effective Time (the “Phillips 66 Deferred Compensation Beneficiaries”) benefits in respect of service and compensation following the Effective Time substantially
similar to those accrued with respect to such person under the COP Deferred Compensation Plans as of immediately prior to the Effective Time. As of the Effective Time, the Phillips 66 Group Employees shall no longer participate in the COP Deferred
Compensation Plans. Notwithstanding the above, with respect to any Delayed Transfer Employee whose employment is transferred from a COP Entity to a Phillips 66 Entity on a Transfer Date and who was a participant in a COP Deferred Compensation Plan
as of immediately prior to such Transfer Date, the Phillips 66 Deferred Compensation Plans shall provide benefits substantially similar to those available to such person under the COP Deferred Compensation Plans as of immediately prior to such
Delayed Transfer Employee’s transfer. The Parties agree that for purposes of the COP Deferred Compensation Plans the employment of a Phillips 66 Deferred Compensation Beneficiary shall not be considered to have terminated as a result of the
Distribution or the transfer of employment from COP (or a COP Entity) to Phillips 66 (or a Phillips 66 Entity), and such employment shall only be considered to terminate for purposes of the Phillips 66 Deferred Compensation Plans when the employment
of such Phillips 66 Deferred Compensation Beneficiary with the Phillips 66 Group terminates in accordance with the terms of the Phillips 66 Deferred Compensation Plans and applicable Laws. 

(b) Liability and Responsibility. The Liabilities in respect of Phillips 66 Deferred Compensation Beneficiaries under the
COP Deferred Compensation Plans shall be assumed by the member of the Phillips 66 Group which sponsors the applicable Phillips 66 Deferred Compensation Plan, effective as of the Effective Time; provided that such Liabilities in respect of
each such Phillips 66 Deferred Compensation Beneficiary who is a Delayed Transfer Employee shall be assumed by such member of the Phillips 66 Group effective as of close of business on the applicable Transfer Date. Phillips 66 shall have sole
responsibility for the administration of the Phillips 66 Deferred Compensation Plans and the payment of benefits thereunder to or on behalf of Phillips 66 Group Employees, and no member of the COP Group shall have any liability or responsibility
therefor. COP shall have sole responsibility for the administration of the COP Deferred Compensation Plans and the payment of benefits thereunder to or on behalf of COP Group Employees and Former COP Group Employees, and no member of the Phillips 66
Group shall have any liability or responsibility therefor. 
 Section 7.3 Treatment of Phantom Shares in Deferred
Compensation Plans. Each cash-settled phantom share relating to COP Common Stock held in the COP Deferred Compensation Plans (or in any similar nonqualified deferred compensation arrangement maintained by a COP Entity) or the Phillips 66
Deferred Compensation Plans (a “COP Phantom Share”) on the Distribution Date shall be converted into, upon the Distribution being made, an adjusted COP Phantom Share and such number of phantom shares relating to Phillips 66 Common
Stock (the “Phillips 66 Phantom Shares”) as determined by applying the Distribution Ratio in the same way as it is applied to shares of COP Common Stock on the Distribution Date. The adjusted COP Phantom Shares and the Phillips 66
Phantom Shares held in the COP Deferred Compensation Plans (or in any similar nonqualified deferred compensation arrangement maintained by a COP Entity) and the Phillips 66 Deferred Compensation Plan shall continue to 

  
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be subject to the same terms and conditions as COP Phantom Shares immediately prior to the Effective Time. 
 Section 7.4 Grantor Trusts. On or prior to the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to, adopt a grantor trust in a form that is substantially
comparable to the COP Grantor Trust as in effect immediately prior to the Effective Time. In connection with the assumption of the Liabilities under the COP SERP and the COP Deferred Compensation Plans in respect of Phillips 66 Group Employees, COP
shall (or shall cause a COP Entity to), as soon as reasonably practicable after the Effective Time in respect of the Phillips 66 SERP and Phillips 66 Deferred Compensation Plans, transfer Assets in an amount equal to the funded percentage of such
Liabilities (as determined by the COP Actuary) as of the Effective Time to such grantor trust as of the Effective Time. 

ARTICLE VIII 

WELFARE PLANS 

Section 8.1 Establishment of Phillips 66 Welfare Plans. On or prior to the Effective Time, Phillips 66 shall, or shall cause
another Phillips 66 Entity to, establish and adopt Phillips 66 Welfare Plans which will provide welfare benefits to each Phillips 66 Group Employee and Delayed Transfer Employee who is transferred from the COP Group to the Phillips 66 Group who is a
participant in any of the COP Welfare Plans (and their eligible spouses and dependents, as the case may be) (collectively, the “Phillips 66 Welfare Plan Participants”) under terms and conditions that are substantially similar to the
COP Welfare Plans. Coverage and benefits under the Phillips 66 Welfare Plans shall then be provided to the Phillips 66 Welfare Plan Participants on an uninterrupted basis under the newly established Phillips 66 Welfare Plans which shall contain
substantially the same benefit provisions as in effect under the corresponding COP Welfare Plans immediately prior to the Effective Time; provided, however, that with respect to Delayed Transfer Employees transferred from the COP Group
to the Phillips 66 Group, such coverage and benefits shall begin immediately after the Transfer Date. Phillips 66 Welfare Plan Participants shall cease to be eligible for coverage under the COP Welfare Plans (i) in the case of Phillips 66
Welfare Plan Participants who are not Delayed Transfer Employees described in clause (ii) of this sentence, at the Effective Time, and (ii) in the case of Delayed Transfer Employees who are transferred from the COP Group to the Phillips 66
Group, upon their transfer to the Phillips 66 Group. For the avoidance of doubt, Phillips 66 Welfare Plan Participants shall not participate in any COP Welfare Plans after the time set forth in the immediately preceding sentence, and COP Group
Employees and Former COP Group Employees shall not participate in any Phillips 66 Welfare Plans at any time. 
 Section 8.2
Transitional Matters Under Phillips 66 Welfare Plans. 
 (a) Treatment of Claims Incurred.

 (i) Liability for Claims. With respect to unpaid covered claims incurred on or prior to the last
day of the month in which the Distribution occurs by any Phillips 66 Welfare Plan Participant under any COP Welfare Plans, including claims that are self-insured and claims that are fully insured through third-party insurance, COP shall retain and
be responsible for the payment for such claims or shall cause such COP 

  
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Welfare Plans to fully perform, pay and discharge all such claims, as the case may be. No Phillips 66 Entity shall be responsible for any Liability with respect to any such claims. 

(ii) Claims Incurred. For purposes of this Section 8.2(a), a claim or expense is deemed to be incurred
(A) with respect to medical (including continuous hospitalization), dental, vision and/or prescription drug benefits, upon the rendering of health services giving rise to such claim or expense; (B) with respect to life insurance,
accidental death and dismemberment and business travel accident insurance, upon the occurrence of the event giving rise to such claim or expense; and (C) with respect to long-term disability benefits, upon the date of an individual’s
disability, as determined by the disability benefit insurance carrier or claim administrator, giving rise to such claim or expense. 
 (b) Credit for Deductibles and Other Limits. With respect to each Phillips 66 Welfare Plan Participant, the Phillips 66 Welfare Plans will give credit for the plan year in which the
Distribution Date occurs (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, for the plan year in which the applicable Transfer Date occurs) for any amount paid, number of services obtained or provider
visits by such Phillips 66 Welfare Plan Participant toward deductibles, out-of-pocket maximums, limits on number of services or visits, or other similar limitations to the extent such amounts are taken into account under the comparable COP Welfare
Plan. For purposes of any life-time maximum benefit limit payable to a Phillips 66 Welfare Plan Participant under any Phillips 66 Welfare Plan, the Phillips 66 Welfare Plans will recognize any expenses paid or reimbursed by a COP Welfare Plan with
respect to such participant prior to the Effective Time (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, prior to the Transfer Date) to the same extent such expense payments or reimbursements would
be recognized in respect of an active plan participant under the applicable COP Welfare Plan. 
 (c) COBRA. At and
after the Effective Time, Phillips 66 shall assume all requirements under COBRA with respect to all Phillips 66 Group Employees (and their qualifying beneficiaries) who, as of the day prior to the Distribution Date, were covered under a COP Benefit
Plan pursuant to COBRA or who have a COBRA qualifying event (as defined in Section 4980B of the Code) prior to the Distribution Date. Upon and after their transfer to the Phillips 66 Group, Phillips 66 shall assume and satisfy all requirements
under COBRA with respect to any Delayed Transfer Employees who are transferred from the COP Group to the Phillips 66 Group who have a COBRA qualifying event on or after the applicable Transfer Date for the Delayed Transfer Employee and their
qualified beneficiaries. 
 (d) Employees on Leave. As of the Effective Time, Phillips 66 shall assume and satisfy
all Liabilities with respect to any Phillips 66 Group Employee who is as of the Effective Time, on vacation or other approved leave of absence (including leave under FMLA or corresponding state Law, disability, military leave and other approved
leave, including Liabilities for salary continuation, paid leave or continuing Benefit Plans). For avoidance of doubt, effective as of their transfer to the Phillips 66 Group, Phillips 66 shall assume and satisfy all Liabilities with respect to any
Delayed Transfer Employee transferred from the COP Group to the Phillips 66 Group who is, as of the applicable Transfer Date, on vacation or other 

  
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approved leave of absence (including leave under FMLA or corresponding state Law, disability, military leave and other approved leave, including Liabilities for salary continuation, paid leave or
continuing Benefit Plans). 
 Section 8.3 Continuity of Benefits, Benefit Elections and Beneficiary Designations.

 (a) Benefit Elections and Designations. As of the first day of the month after the month in which the
Distribution occurs (or such other date provided for under Section 8.3(b)), Phillips 66 shall cause the Phillips 66 Welfare Plans to recognize and give effect to all elections and designations (including all coverage and contribution elections
and beneficiary designations) made by each Phillips 66 Welfare Plan Participants under, or with respect to, the corresponding COP Welfare Plan for the plan year in which the Distribution occurs. Notwithstanding the foregoing, nothing in this
Section 8.3(a) will prohibit Phillips 66 from soliciting or causing the solicitation of new election forms or beneficiary designations from Phillips 66 Welfare Plan Participants to be effective under the Phillips 66 Welfare Plan as of the first
day of the month after the month in which the Distribution occurs. 
 (b) Additional Details Regarding Flexible Spending
Accounts. Pursuant to Section 8.1, at or prior to the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to, establish and adopt Phillips 66 Welfare Plans which will provide health care flexible spending
account or dependent care flexible spending account benefits to Phillips 66 Welfare Plan Participants. To the extent any Phillips 66 Welfare Plan provides or constitutes a health care flexible spending account or dependent care flexible spending
account (each a “Phillips 66 FSA”), such Phillips 66 Welfare Plan shall be effective as of the Effective Time. 
 (i) It is the intention of the Parties that all activity under a Phillips 66 Welfare Plan Participant’s flexible spending account with COP for the plan year in which the Distribution Date occurs (in
the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, for the plan year in which the applicable Transfer Date occurs) be treated instead as activity under the corresponding Phillips 66 FSA. Accordingly,
(i) any period of participation by a Phillips 66 Welfare Plan Participant in a COP flexible spending account during the plan year in which the Distribution Date occurs (in the case of Delayed Transfer Employees transferred from the COP Group to
the Phillips 66 Group, for the plan year in which the applicable Transfer Date occurs) (the “FSA Participation Period”) will be deemed a period when the Phillips 66 Welfare Plan Participant participated in the corresponding Phillips
66 FSA; (ii) all expenses incurred during the FSA Participation Period will be deemed incurred while the Phillips 66 Welfare Plan Participant’s coverage was in effect under the corresponding Phillips 66 FSA; and (iii) all elections
and reimbursements made with respect to an FSA Participation Period under a COP flexible spending account will be deemed to have been made with respect to the corresponding Phillips 66 FSA. 

(ii) If the aggregate reimbursement payouts made to Phillips 66 Welfare Plan Participants prior to the Effective Time (in
the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, prior to their transfer to the Phillips 66 Group) from the applicable COP Welfare Plan flexible spending accounts during the plan year in which the
Distribution occurs (in the case of 

  
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Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, for the plan year in which the applicable Transfer Date occurs) are less than the aggregate accumulated
contributions to such accounts made by such Phillips 66 Welfare Plan Participants prior to the Effective Time (in the case of Delayed Transfer Employees, prior to their transfer to the Phillips 66 Group) for such plan year, COP shall cause an amount
equal to the amount by which such contributions are in excess of such reimbursement payouts to be transferred to Phillips 66 (or a Phillips 66 Entity designated by Phillips 66) by wire transfer of immediately available funds as soon as practicable,
but in no event later than 45 days, following the Effective Time (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, in no event later than 45 days, following their transfer to the Phillips 66 Group).

 (iii) If the aggregate reimbursement payouts made to Phillips 66 Welfare Plan Participants prior to the
Effective Time (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, prior to their transfer to the Phillips 66 Group) from the applicable COP Welfare Plan flexible spending accounts during the plan year
in which the Distribution occurs (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, for the plan year in which the applicable Transfer Date occurs) exceed the aggregate accumulated contributions to
such accounts made by the Phillips 66 Welfare Plan Participants prior to the Effective Time (in the case of Delayed Transfer Employees, prior to their transfer to the Phillips 66 Group) for such plan year, Phillips 66 shall cause an amount equal to
the amount by which such reimbursement payouts are in excess of such contributions to be transferred to COP (or a COP Group Entity designated by COP) by wire transfer of immediately available funds as soon as practicable, but in no event later than
45 days, following the Effective Time (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, in no event later than 45 days, following their transfer to the Phillips 66 Group). 

(iv) Notwithstanding anything in this Section 8.3(b), at and after the Effective Time, the Phillips 66 Group shall
assume, and cause the Phillips 66 Welfare Plans to be solely responsible for, all claims by Phillips 66 Welfare Plan Participants under the applicable COP Welfare Plan flexible spending accounts that were incurred in the plan year in which the
Distribution occurs, whether incurred prior to, on, or after the Effective Time, that have not been paid in full as of the Effective Time. 
 (c) Additional Details Regarding Health Savings Accounts. Pursuant to Section 8.1, on or prior to the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to,
establish and adopt Phillips 66 Welfare Plans which will provide health savings account benefits to Phillips 66 Welfare Plan Participants. To the extent any Phillips 66 Welfare Plan provides or constitutes a health savings account (each a
“Phillips 66 HSA”), such Phillips 66 Welfare Plan shall be effective as of the Effective Time. It is the intention of the Parties that all activity under a Phillips 66 Welfare Plan Participant’s health savings account with COP
for the year in which the Distribution occurs (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, for the plan year in which the applicable Transfer Date occurs) be treated instead as activity under
the corresponding Phillips 66 HSA. Accordingly, (i) any period of participation by a Phillips 66 Welfare Plan Participant 

  
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in a COP health savings account during the year in which the Distribution occurs (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, for the plan
year in which the applicable Transfer Date occurs) (the “HSA Participation Period”) will be deemed a period when the Phillips 66 Welfare Plan Participant participated in the corresponding Phillips 66 HSA; (ii) all expenses
incurred during the HSA Participation Period will be deemed incurred while the Phillips 66 Welfare Plan Participant’s coverage was in effect under the corresponding Phillips 66 HSA; and (iii) all elections and reimbursements made with
respect to an HSA Participation Period under a COP health savings account will be deemed to have been made with respect to the corresponding Phillips 66 HSA. 
 (d) Employer Non-elective Contributions. As of immediately after the Effective Time, Phillips 66 shall cause any Phillips 66 Welfare Plan that constitutes a “cafeteria plan” under
Section 125 of the Code to recognize and give effect to all non-elective employer contributions credited toward coverage of a Phillips 66 Welfare Plan Participant under the corresponding COP Welfare Plan that is a cafeteria plan under
Section 125 of the Code for the applicable plan year. 
 (e) Waiver of Conditions or Restrictions. Unless
prohibited by applicable Law or collective bargaining agreement, the Phillips 66 Welfare Plans will waive all limitations as to preexisting conditions, exclusions, service conditions, waiting period limitations or evidence of insurability
requirements that would otherwise be applicable to the Phillips 66 Welfare Plan Participant following the Effective Time (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group, following their transfer to
the Phillips 66 Group) to the extent that such Employee had previously satisfied such limitation under the corresponding COP Welfare Plan. 
 Section 8.4 Delayed Transfer Employees from Phillips 66 Group to COP Group. With regard to a Delayed Transfer Employee who is transferred from Phillips 66 (or a member of the Phillips 66 Group) to
COP (or a member of the COP Group), the provisions of this Article VIII shall be applied as of the Transfer Date to place the Delayed Transfer Employee in the applicable COP Welfare Plans taking into account any circumstances or activity that had
occurred while the Delayed Transfer Employee was with Phillips 66 (or a member of the Phillips 66 Group), in the same manner as described in this Article VIII with regard to the transfer of a Delayed Transfer Employee who is transferred from the COP
Group to the Phillips 66 Group. 
 Section 8.5 Insurance Contracts. To the extent any COP Welfare Plan is funded through
the purchase of an insurance contract or is subject to any stop loss contract, COP and Phillips 66 will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for Phillips 66 (except to the extent changes are
required under applicable state insurance Laws or filings by the respective insurers) and to maintain any pricing discounts or other preferential terms for both COP and Phillips 66 for a reasonable term. Neither Party shall be liable for failure to
obtain such insurance contracts, pricing discounts, or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative fees that such Party may incur pursuant to this
Section 8.5. 
 Section 8.6 Third-Party Vendors. Except as provided below, to the extent any COP Welfare Plan is
administered by a third-party vendor, COP and Phillips 66 will cooperate and use 

  
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their commercially reasonable efforts to replicate any contract with such third-party vendor for Phillips 66 and to maintain any pricing discounts or other preferential terms for both COP and
Phillips 66 for a reasonable term. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party. Each Party shall be responsible for any additional premiums, charges, or administrative
fees that such Party may incur pursuant to this Section 8.6. 
 Section 8.7 Retiree Welfare Plans. 

(a) COP Retiree Welfare Plans. Notwithstanding anything herein to the contrary (other than Section 13.1), in respect of
any COP Welfare Plan that provides retiree medical or other post-retirement benefits to eligible Employees: (i) no Phillips 66 Group Employee shall be eligible to receive such retiree benefits under any such COP Welfare Plan at or at any time
after the Effective Time; provided, however, that any Phillips 66 Group Employee who, at the Effective Time, would have been eligible to receive such retiree medical benefits from any such COP Welfare Plan had that Phillips 66 Group
Employee retired on or before the Effective Time, shall remain eligible to receive such retiree medical benefits under any such applicable COP Welfare Plan, considering the service and age points credited to the Effective Time but not any service or
age points during time employed as a Phillips 66 Group Employee, and further shall not be eligible to receive such retiree medical benefits from any applicable COP Welfare Plan if that Phillips 66 Group Employee is receiving such retiree medical
benefits from a Phillips 66 Welfare Plan; and (ii) COP (or one or more members of the COP Group designated by COP) shall retain sole responsibility for the Liabilities associated with any COP Welfare Plan providing retiree medical or other
post-retirement benefits to eligible employees or former employees, and no Phillips 66 Entity shall have any Liability therefor. 

(b) Phillips 66 Retiree Welfare Plans. Pursuant to Section 8.1, at or as soon as practicable after the Effective Time,
Phillips 66 shall, or shall cause another Phillips 66 Entity to, establish and adopt Phillips 66 Welfare Plans that will provide retiree medical benefits to eligible Phillips 66 Welfare Plan Participants at and after the Effective Time. 

ARTICLE IX 

WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION 
 Section 9.1 Phillips 66 Workers’ and Unemployment Compensation. Effective as of the Effective Time, the Phillips 66 Group Subsidiary employing each Phillips 66 Group Employee shall have
(and, to the extent it has not previously had such obligations, such Phillips 66 Group Subsidiary shall assume) the obligations for all claims and Liabilities relating to workers’ compensation and unemployment compensation benefits for all
Phillips 66 Group Employees employed by that Subsidiary. Effective as of the applicable Transfer Date, the Phillips 66 Group Subsidiary employing the Delayed Transfer Employee shall have (and, to the extent it has not previously had such
obligations, such Phillips 66 Group Subsidiary shall assume) the obligations for all claims and Liabilities relating to workers’ compensation and unemployment compensation benefits for all Delayed Transfer Employees transferred from the COP
Group to that Phillips 66 Group Subsidiary. Effective as of the Effective Time, Phillips 66, acting through the Phillips 66 Group Subsidiary employing each Phillips 66 Group Employee, 

  
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will be responsible for (a) obtaining workers’ compensation insurance, including providing all collateral required by the insurance carriers and (b) establishing new or transferred
unemployment insurance employer accounts, policies and claims handling contracts with the applicable government agencies. To the extent that such insurance coverage cannot be either assigned to or obtained by Phillips 66 or a Phillips 66 Group
Subsidiary, in respect of claims and Liabilities otherwise to be assumed by Phillips 66 or a Phillips 66 Group Subsidiary pursuant to this Section 9.1, COP shall remain primarily liable for such claims and Liabilities, but Phillips 66 shall
indemnify and hold harmless COP for any such claims and Liabilities. If the preceding sentence applies, then at one or more mutually agreed upon dates, COP’s Actuary will determine the present value of such claims and Liabilities and Phillips
66 shall reimburse COP for that amount. 
 Section 9.2 COP Workers’ and Unemployment Compensation. Effective
as of the Effective Time, the COP Group Subsidiary employing each COP Group Employee shall have (and, to the extent it has not previously had such obligations, such COP Group Subsidiary shall assume) the obligations for all claims and Liabilities
relating to workers’ compensation and unemployment compensation benefits for all COP Group Employees. Effective as of the applicable Transfer Date, the COP Group Subsidiary employing the Delayed Transfer Employee shall have (and, to the extent
it has not previously had such obligations, such COP Group Subsidiary shall assume) the obligations for all claims and Liabilities relating to workers’ compensation and unemployment compensation benefits for all Delayed Transfer Employees
transferred from the Phillips 66 Group to that COP Group Subsidiary. Effective as of the Effective Time, the COP Group Subsidiary formerly employing each COP Group Employee shall have (and, to the extent it has not previously had such obligations,
such COP Group Subsidiary shall assume) the obligations for all claims and Liabilities relating to workers’ compensation and unemployment compensation benefits for all Former COP Group Employees. 

Section 9.3 Assignment of Contribution Rights. COP will transfer and assign (or cause another member of the COP Group to
transfer and assign) to a member of the Phillips 66 Group all rights to seek contribution or damages from any applicable third party (such as a third party who aggravates an injury to a worker who makes a workers’ compensation claim) with
respect to any workers’ compensation claim for which Phillips 66 is responsible for pursuant to this Article IX. Phillips 66 will transfer and assign (or cause another member of the Phillips 66 Group to transfer and assign) to a member of the
COP Group all rights to seek contribution or damages from any applicable third party (such as a third party who aggravates an injury to a worker who makes a workers’ compensation claim) with respect to any workers’ compensation claim for
which COP is responsible for pursuant to this Article IX. 
 Section 9.4 Collateral. On and after the Distribution Date,
Phillips 66 (acting directly or through a member of the Phillips 66 Group) shall be responsible for providing all collateral required by insurance carriers in connection with workers’ compensation claims for which Liability is allocated to the
Phillips 66 Group under this Article IX. COP (acting directly or through a member of the COP Group) shall be responsible for providing all collateral required by insurance carriers in connection with workers’ compensation claims for which
Liability is allocated to the COP Group under this Article IX. 

  
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 Section 9.5 Cooperation. Phillips 66 and COP shall use commercially reasonable
efforts to provide that workers’ compensation and unemployment insurance costs are not adversely affected for either of them by reason of the Distribution. 
 ARTICLE X 
 SEVERANCE 

Section 10.1 Severance. COP shall have no Liability or obligation under any COP severance plan or policy with respect to Phillips
66 Group Employees. As of the applicable Transfer Date, COP shall have no Liability or obligation under any COP severance plan or policy with respect to Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group. By no later
than the Effective Time, Phillips 66 shall, or shall cause another Phillips 66 Entity to, adopt severance plans under which Phillips 66 Group Employees who, immediately prior to the Effective Time, and Delayed Transfer Employees transferred from the
COP Group to the Phillips 66 Group who, immediately prior to the applicable Transfer Date, are participants in any COP severance plan or policy, including the ConocoPhillips Severance Pay Plan, the ConocoPhillips Executive Severance Plan, the
ConocoPhillips Key Employee Change in Control Severance Plan, (the “COP Severance Plans”), shall be eligible to participate immediately following the Effective Time (in the case of Phillips 66 Group Employees who are not Delayed
Transfer Employees) or the applicable Transfer Date (in the case of Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group). Such Phillips 66 severance plan(s) or policies will provide terms and conditions for Phillips 66
Group Employees who are severed from the Phillips 66 Group following the Effective Time or Transfer Date, as the case may be, that are substantially similar to the terms and conditions provided under the applicable COP Severance Plans in which such
Phillips 66 Group Employees participated immediately prior to the Effective Time or such Transfer Date. For the avoidance of doubt, the Distribution and the assignment, transfer or continuation of the employment of Phillips 66 Group Employees
contemplated by Section 3.1 shall not be deemed a severance of employment for purposes of this Agreement and any COP Severance Plans or policies, and effective as of the Effective Time, Phillips 66 Employees shall not be eligible to receive any
severance or other benefits under any COP Severance Plans or policies. 
 ARTICLE XI 

BENEFIT ARRANGEMENTS AND OTHER MATTERS 
 Section 11.1 Termination of Participation. Except as otherwise provided under this Agreement, (i) effective as of immediately after the Effective Time, Phillips 66 Group Employees shall
not be eligible to participate in any COP Benefit Plan, and (ii) effective as of immediately after their transfer to the Phillips 66 Group, Delayed Transfer Employees transferred from the COP Group to the Phillips 66 Group shall not be eligible
to participate in any COP Benefit Plan. 
 Section 11.2 Accrued Time Off. Phillips 66 shall recognize and assume all
Liability for all unused vacation, holiday, sick leave, flex days, personal days and paid-time off and other time-off benefits with respect to (i) Phillips 66 Group Employees which accrued prior to the Effective Time and (ii) Delayed
Transfer Employees transferred from the COP Group to the 

  
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Phillips 66 Group which accrued prior to the applicable Transfer Date, and Phillips 66 shall credit each Phillips 66 Group Employee and Delayed Transfer Employee with such accrual. 

Section 11.3 Leaves of Absence. Phillips 66 will continue to apply the appropriate leave of absence policies applicable to
inactive Phillips 66 Group Employees who are on an approved leave of absence as of the Effective Time and Delayed Transferred Employees transferred from the COP Group to the Phillips 66 Group as of their Transfer Date. Leaves of absence taken by
Phillips 66 Group Employees prior to the Effective Time and such Delayed Transfer Employees prior to their Transfer Date shall be deemed to have been taken as employees of a member of the Phillips 66 Group. 

Section 11.4 Collective Bargaining Agreements. The COP Group shall have no further Liability for all collective bargaining
agreements, collective agreements, multiemployer plans, pension and welfare plans and arrangements, and trade union or works council agreements entered into with any member of the COP Group, any union, works council, or other body representing only
Phillips 66 Group Employees and such agreements, plans, and arrangements shall, to the extent permitted under applicable Law and their respective terms, be assigned from the applicable COP Entity to Phillips 66 (or a Phillips 66 Entity designated by
Phillips 66) effective as of the Effective Time. 
 Section 11.5 Director Programs. 

(a) Certain Director Plans. Effective as of the Distribution Date, Phillips 66 shall, or shall cause a Phillips 66 Entity
to, establish a plan with terms and conditions substantially comparable to the COP Director’s Annual Matching Gift Program. 
 (b) Certain Director Fees. With respect to any COP Director and Phillips 66 Director, COP shall retain responsibility for the payment of any fees payable in respect of service on the board
of directors of COP that are payable but not yet paid as of the Effective Time, and Phillips 66 shall not have any responsibility for any such payments. With respect to any Phillips 66 Director, Phillips 66 shall be responsible for the payment of
any fees payable in respect of service on the board of directors of Phillips 66 that are earned at any time beginning at or after the Effective Time, and COP shall not have any responsibility for any such payments. With respect to any COP Director,
COP shall be responsible for the payment of any fees payable in respect of service on the board of directors of COP that are earned at any time beginning at or after the Effective Time, and Phillips 66 shall not have any responsibility for any such
payments. 
 Section 11.6 Restrictive Covenants in Employment and Other Agreements. To the fullest extent permitted by
the agreements described in this Section 11.6 and applicable Law, COP shall assign, or cause an applicable member of the COP Group to assign, to Phillips 66 or a member of the Phillips 66 Group, as designated by Phillips 66, all agreements
containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the COP Group and a Phillips 66 Group Employee, with such assignment to be effective as of the Effective Time. To the
extent that assignment of such agreements is not permitted, effective as of the Effective Time, each member of the Phillips 66 Group shall be considered to be a successor to each member of the COP Group for purposes of, and a third-party 

  
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beneficiary with respect to, all agreements containing restrictive covenants (including confidentiality, non-competition and non-solicitation provisions) between a member of the COP Group and a
Phillips 66 Group Employee, such that each member of the Phillips 66 Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations of the
Phillips 66 Group; provided, however, that in no event shall COP be permitted to enforce such restrictive covenant agreements against Phillips 66 Group Employees for action taken in their capacity as employees of a member of the
Phillips 66 Group. Furthermore, the Parties agree that, with respect to equity awards held by COP Group Employees or Phillips 66 Group Employees which provide for cancellation, forfeiture or similar action in the event of a determination that the
holder of an equity award engaged in “Detrimental Activities”, the entity that does not employ such holder shall enforce the penalties with respect to the Detrimental Activities and treat any equity award that was converted pursuant to the
terms of this Agreement in the same manner as a result of such Detrimental Activities as the employing entity. 
 ARTICLE XII

 NON-U.S. EMPLOYEES 
 Section 12.1 General Principles. Except as explicitly set forth in this Article XII, COP Group Employees and Phillips 66 Group Employees who are resident outside of the United States or otherwise
are subject to non-U.S. Law and their related benefits and obligations shall be treated in the same manner as the COP Group Employees and Phillips 66 Group Employees who are resident of the United States are treated. All actions taken with respect
to non-U.S. employees in connection with the Distribution will be accomplished in accordance with applicable Law and custom in each of the applicable jurisdictions. 
 Section 12.2 Treatment of Equity Awards Held by Non-U.S. Employees. 
 (a)
Special Rules for Canadian Holders. For the purposes of this Agreement a COP Option or COP RSU, as applicable, is held by a “Canadian Holder” if such COP Option or COP RSU is held by a Person who is a resident of Canada for
the purposes of Canada Tax Act or by a Person who was granted such COP Option or COP RSU in respect of, in the course of, or by virtue of employment in Canada. In respect of any COP Option or COP RSU held by a Canadian Holder, notwithstanding the
other provisions of Sections 4.3(a), 4.4(a), 4.5(a) or 4.5(b), as applicable, the following rules apply: 
 (i)
Timing for Canadian Holders. The adjustment or conversion of each COP RSU or COP Option held by a Canadian Holder shall be effected with such modifications as may be required such that any action under Sections 4.3(a), 4.4(a), 4.5(a) or
4.5(b) which is called for at or as of the Effective Time shall be taken or completed at the Adjustment Time; 

(ii) Application of Canada Tax Act. It is intended that the provisions of subsection 7(1.4) of the Canada Tax Act
apply to the adjustment or conversion of each COP RSU or COP Option held by a Canadian Holder. 

  
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 (iii) Greater Certainty. For greater certainty, in respect of the
application of subsection 7(1.4) of the Canada Tax Act to the adjustment or conversion of any COP RSU or COP Option held by a Canadian Holder, the computation of each amount under Sections 4.3(a), 4.4(a), 4.5(a) or 4.5(b), as applicable, shall be
undertaken in respect of each such COP Option or COP RSU such that, for purposes of subsection 7(1.4) of the Canada Tax Act, 
 (x) the amount by which the total value immediately after the Adjustment Time of the rights of the Canadian Holder to acquire securities of COP or Phillips 66, as applicable, exceeds of the total of the
amount payable to acquire such securities 
 does not exceed 

(y) the amount by which the total value immediately before the Adjustment Time of the rights of the Canadian Holder to
acquire securities of COP under the applicable COP Option or COP RSU exceeds of the total of the amount payable to acquire such securities 
 and COP or Phillips 66, as applicable, shall take all such steps and shall make all such adjustments effective as of the Adjustment Time as are necessary to ensure that the conversions or adjustments
pursuant to Sections 4.3(a), 4.4(a), 4.5(a) or 4.5(b) are in compliance with the provisions of subsection 7(1.4) of the Canada Tax Act. 
 (iv) Delayed Transfer Employees. The provisions of this Agreement relating to the benefits and obligations of a Delayed Transfer Employee after the Effective Time shall not apply in respect of a
Canadian Holder and arrangements in respect of such Delayed Transfer Employee shall be determined on an individual basis. 
 (b)
Special Rules for Australian Employees Holding COP Exercisable Options. Notwithstanding the other provisions of Section 4.4, with regard to any Employee who, while on the Australia payroll, was granted a COP Option that, at the
Effective Time, is a COP Exercisable Option, or who, at the Effective Time, is a national or citizen of Australia and whose home country payroll is Australia, and who holds a COP Exercisable Option, the following shall apply: 

(i) All Holders Other than Phillips 66 Group Employees. Each exercisable COP Option held by any such person other
than a Phillips 66 Group Employee shall remain an option to purchase COP Common Stock issued under the applicable COP Equity Plan (each such option, an “Adjusted COP Exercisable Option”). Each Adjusted COP Exercisable Option shall
be subject to the same terms and conditions after the Effective Time as the terms and conditions applicable to the corresponding exercisable COP Option immediately prior to the Effective Time; provided, however, that from and after the
Effective Time: 
 (x) the per-share exercise price of each such Adjusted COP Exercisable Option shall be
equal to the product of (A) the per-share exercise price of the corresponding exercisable COP Option immediately prior to the Effective Time 

  
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and (B) the COP Price Ratio, rounded up to the nearest whole cent (the “COP Adjusted Exercise Price”); and 

(y) the number of shares of COP Common Stock subject to each such Adjusted COP Exercisable Option shall be equal to
the product of (A) the number of shares of COP Common Stock subject to the corresponding Exercisable COP Option immediately prior to the Effective Time and (B) the quotient obtained by dividing (I) the excess of the COP
Pre-Distribution Stock Value over the original exercise price of such Exercisable COP Option by (II) the excess of the COP Post-Distribution Stock Value over the COP Adjusted Exercise Price, with any fractional share rounded down to the nearest
whole share. 
 (ii) Phillips 66 Group Employees. Each exercisable COP Option outstanding under the COP
Equity Plans which is held by a Phillips 66 Employee at the Effective Time shall be converted as of the Effective Time into an option to purchase shares of Phillips 66 Common Stock (each such option, a “Phillips 66 Exercisable
Option”) pursuant to the terms of the Phillips 66 New Equity Plan subject to terms and conditions after the Effective Time that are substantially similar to the terms and conditions applicable to the corresponding exercisable COP Option
immediately prior to the Effective Time; provided, however, that from and after the Effective Time: 
 (x) the per-share exercise price of each such Phillips 66 Exercisable Option shall be equal to the product of (A) the per-share exercise price of the corresponding exercisable COP Option
immediately prior to the Effective Time and (B) the Phillips 66 Price Ratio, rounded up to the nearest whole cent (the “Phillips 66 Adjusted Exercise Price”); and 

(y) the number of shares of Phillips 66 Common Stock subject to each such Phillips 66 Exercisable Option shall be
equal to the product of (A) the number of shares of COP Common Stock subject to the corresponding exercisable COP Option immediately prior to the Effective Time and (B) the quotient obtained by dividing (I) the excess of the COP
Pre-Distribution Stock Value over the original exercise price of such non-exercisable COP Option by (II) the excess of the Phillips 66 Stock Value over the Phillips 66 Adjusted Exercise Price, with any fractional share rounded down to the nearest
whole share. 
 (iii) Special Rules for Australian Delayed Transfer Employees Holding Exercisable Stock
Options. 
 (x) Each Exercisable COP Option held by a Delayed Transfer Employee who transfers from the
COP Group to the Phillips 66 Group shall be converted as of such Transfer Date into an option to purchase shares of Phillips 66 Common Stock (each such option, a “Delayed Transfer Phillips 66 Option”) pursuant to the terms of the
applicable Phillips 66 equity plan and shall be subject to terms and conditions after such Delayed Transfer Employee’s Transfer Date that are substantially similar to the terms and conditions applicable to the corresponding Adjusted COP
Exercisable Option immediately prior to such 

  
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Delayed Transfer Employee’s Transfer Date; provided, however, that from and after the Effective Time: 

(I) the per-share exercise price of each such Delayed Transfer Phillips 66 Option shall be equal to the product of
(A) the per-share exercise price of the corresponding Adjusted COP Exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and (B) the Phillips 66 Delayed Price Ratio, rounded up to the nearest whole
cent; and 
 (II) the number of shares of Phillips 66 Common Stock subject to each such Delayed Transfer
Phillips 66 Option shall be equal to the product of (A) the number of shares of COP Common Stock subject to the corresponding Adjusted COP Exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and
(B) the quotient obtained by dividing (I) the excess of the volume weighted average per share price of COP Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer
Employee’s Transfer Date over the exercise price of the Adjusted COP Exercisable Option by (II) the excess of the volume weighted average per share price of Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the last
Trading Day immediately before such Delayed Transfer Employee’s Transfer Date over the exercise price for the Delayed Transfer Phillips 66 Option, as determined under clause (x)(I) of this Section 12.2(d)(iii), with any fractional
share rounded down to the nearest whole share. 
 (y) Each Phillips 66 Exercisable Option held by a Delayed
Transfer Employee who transfers from the Phillips 66 Group to the COP Group shall be converted as of such Transfer Date into an option to purchase shares of COP Common Stock (each such option, a “Delayed Transfer COP Option”)
pursuant to the terms of the applicable COP equity plan and shall be subject to terms and conditions after such Delayed Transfer Employee’s Transfer Date that are substantially similar (to the extent practicable) to the terms and conditions
applicable to the corresponding Phillips 66 Exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date; provided, however, that from and after the Effective Time: 

(I) the per-share exercise price of each such Delayed Transfer COP Option shall be equal to the product of
(A) the per-share exercise price of the corresponding Phillips 66 Exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and (B) the COP Delayed Price Ratio, rounded up to the nearest whole cent; and

 (II) the number of shares of COP Common Stock subject to each such Delayed Transfer COP Option shall be
equal to the product of (A) the number of shares of Phillips 66 Common Stock subject to the 

  
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corresponding Phillips 66 Exercisable Option immediately prior to such Delayed Transfer Employee’s Transfer Date and (B) the quotient obtained by dividing (I) the excess of the
volume weighted average per share price of Phillips 66 Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s Transfer Date over the exercise price of the
Phillips 66 Exercisable Option by (II) the excess of the volume weighted average per share price of COP Common Stock trading on the NYSE during Regular Trading Hours on the last Trading Day immediately before such Delayed Transfer Employee’s
Transfer Date over the exercise price for the Delayed Transfer COP Option, as determined under clause (y)(I) of this Section 12.2(d)(iii), with any fractional share rounded down to the nearest whole share. 

Section 12.3 Other Canada Employee Matters. 
 (a) Establishment of Retirement and Savings Plans. Without limiting the meaning of Section 12.1 or any other provision hereof, ConocoPhillips and Phillips 66 agree and confirm that Phillips 66
Canada ULC will establish: 
 (i) subject to regulatory approval, a defined contribution registered pension plan
pursuant to the laws of Alberta; 
 (ii) a supplemental employee retirement plan or plans for employees of
Phillips 66 Canada ULC; and 
 (iii) an employee savings plan, 

for the benefit of employees of Phillips 66 Canada ULC each on terms similar to those enjoyed by members of the comparable plans sponsored by
ConocoPhillips Canada Resources Corp. 
 (b) Transfer of Existing Retirement and Savings Plans Accounts. Promptly, upon
receipt of all required regulatory approvals ConocoPhillips Canada Resources Corp. and Phillips 66 Canada ULC will arrange for transfer of the accounts and the assets therein of employees of Phillips 66 Canada ULC from the comparable plans sponsored
by ConocoPhillips Canada Resources Corp. to accounts in the plans referred to in sub-section (a) above. 
 (c)
Beneficiary Designations. Prior to the Distribution Date, ConocoPhillips Canada Resources Corp. and Phillips 66 Canada ULC will seek to obtain beneficiary designations from employees of Phillips 66 Canada ULC in relation to the plans referred
to in sub-section (a) above and in relation to such Welfare Plans as ConocoPhillips Canada Resources Corp. considers necessary. 
 Section 12.4 UK Employee Matters Agreement. COP Group Employees and Phillips 66 Group Employees who are employees of ConocoPhillips Limited or of ConocoPhillips (U.K.) Limited shall be treated in
the manner provided in the UK Employee Matters Agreement between those companies (attached as Appendix A to this Agreement) with regard to matters that are subject to this Agreement or to the UK Employee Matters Agreement. In the event of a

  
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conflict between this Agreement and the UK Employee Matters Agreement, the UK Employee Matters Agreement shall prevail with regard to employees of ConocoPhillips Limited or of ConocoPhillips
(U.K.) Limited or assets or liabilities of or relating to benefit plans and compensation programs for their benefit. In the event the UK Employee Matters Agreement addresses a matter with regard to employees of ConocoPhillips Limited or
ConocoPhillips (U.K.) Limited or assets or liabilities of or relating to benefit plans and compensation programs for their benefit as to which this Agreement is silent, the UK Employee Matters Agreement shall be followed. In the event this Agreement
addresses a matter with regard to employees of ConocoPhillips Limited or ConocoPhillips (U.K.) Limited or assets or liabilities of or relating to benefit plans and compensation programs for their benefit as to which the UK Employee Matters Agreement
is silent, this Agreement shall be followed. 
 ARTICLE XIII 

GENERAL PROVISIONS 
 Section 13.1 Preservation of Rights to Amend. The rights of each member of the COP Group and each member of the Phillips 66 Group to amend, waive, or terminate any plan, arrangement, agreement,
program, or policy referred to herein shall not be limited in any way by this Agreement. 
 Section 13.2 Confidentiality.
Each Party agrees that any information conveyed or otherwise received by or on behalf of a Party in conjunction herewith that is not otherwise public through no fault of such Party is confidential and is subject to the terms of the confidentiality
provisions set forth herein and in the Indemnification and Release Agreement, including Section 3.4(g) of this Agreement and Section 5.8 of the Indemnification and Release Agreement. 

Section 13.3 Administrative Complaints/Litigation. Except as otherwise provided in this Agreement, on and after the Distribution
Date, Phillips 66 shall assume, and be solely liable for, the handling, administration, investigation, and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal,
discrimination or human rights, and unemployment compensation claims asserted at any time against COP or any member of the COP Group by any Phillips 66 Group Employee (including any dependent or beneficiary of any such Employee) or any other person,
to the extent such actions or claims arise out of or relate to employment or the provision of services (whether as an employee, contractor, consultant, or otherwise) to or with respect to the business activities of any member of the Phillips 66
Group after the Distribution Date. To the extent that any legal action relates to a putative or certified class of plaintiffs, which includes both COP Group Employees (or Former COP Group Employees) and Phillips 66 Group Employees and such action
involves employment or benefit plan related claims, reasonable costs and expenses incurred by the Parties in responding to such legal action shall be allocated among the Parties equitably in proportion to a reasonable assessment of the relative
proportion of Employees included in or represented by the putative or certified plaintiff class. The procedures contained in the indemnification and related litigation cooperation provisions of the Indemnification and Release Agreement shall apply
with respect to each Party’s indemnification obligations under this Section 13.3. 
 Section 13.4 Reimbursement and
Indemnification. Each Party agrees to reimburse the other Party, within 30 days of receipt from the other Party of reasonable verification, for all costs 

  
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and expenses which the other Party may incur on its behalf as a result of any of the respective COP and Phillips 66 Welfare Plans, 401(k) Plans, Benefit Plans, and Pension Plans and, as
contemplated by Section 10.1, any termination or severance payments or benefits. All Liabilities retained, assumed, or indemnified against by Phillips 66 pursuant to this Agreement, and all Liabilities retained, assumed, or indemnified against
by COP pursuant to this Agreement, shall in each case be subject to the indemnification provisions of the Separation Agreement. Notwithstanding anything to the contrary, (i) no provision of this Agreement shall require any member of the
Phillips 66 Group to pay or reimburse to any member of the COP Group any benefit-related cost item that a member of the Phillips 66 Group has paid or reimbursed to any member of the COP Group prior to the Effective Time; and (ii) no provision
of this Agreement shall require any member of the COP Group to pay or reimburse to any member of the Phillips 66 Group any benefit-related cost item that a member of the COP Group has paid or reimbursed to any member of the Phillips 66 Group prior
to the Effective Time. 
 Section 13.5 Costs of Compliance with Agreement. Except as otherwise provided in this Agreement
or any other Transfer Document, each Party shall pay its own expenses in fulfilling its obligations under this Agreement. 

Section 13.6 Fiduciary Matters. COP and Phillips 66 each acknowledges that actions required to be taken pursuant to this Agreement
may be subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith
determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply
with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility. 
 Section 13.7 Entire Agreement. This Agreement, together with the documents referenced herein (including the Separation Agreement, the Transfer Documents and the plans and agreements referenced
herein), constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject
matter hereof. To the extent any provision of this Agreement conflicts with the provisions of the Separation Agreement, the provisions of this Agreement shall be deemed to control with respect to the subject matter hereof. 

Section 13.8 Binding Effect; No Third-Party Beneficiaries; Assignment. This Agreement shall inure to the benefit of and be binding
upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any third parties any
remedy, claim, Liability, reimbursement, cause of action, or other right in excess of those existing without reference to this Agreement. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan
sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent
contractor or any other individual associated 

  
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therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other
Parties. 
 Section 13.9 Amendment; Waivers. No change or amendment may be made to this Agreement except by an instrument
in writing signed on behalf of each of the Parties. Any Party may, at any time, (i) extend the time for the performance of any of the obligations or other acts of another Party, (ii) waive any inaccuracies in the representations and
warranties of another Party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by another Party with any of the agreements, covenants, or conditions contained herein. Any such extension or waiver shall be
valid only if set forth in an instrument in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or
acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right. 

Section 13.10 Remedies Cumulative. All rights and remedies existing under this Agreement or the Schedules attached hereto are
cumulative to, and not exclusive of, any rights or remedies otherwise available. 
 Section 13.11 Notices. Unless
otherwise expressly provided herein, all notices, claims, certificates, requests, demands and other communications hereunder shall be in writing and shall be deemed to be duly given: (i) when personally delivered, (ii) if mailed by
registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the letter is refused by the addressee or its agent, (iii) if sent by overnight courier which delivers only upon the executed
receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the addressee or its agent, or (iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a
copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (i), (ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to
such other address or facsimile number for a Party as it shall have specified by like notice. 
 Section 13.12
Counterparts. This Agreement, including the Schedules hereto and the other documents referred to herein, may be executed in multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall
constitute one and the same agreement. 
 Section 13.13 Severability. If any term or other provision of this Agreement or
the Schedules attached hereto is determined by a non-appealable decision by a court, administrative agency, or arbitrator to be invalid, illegal, or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any
term or other provision is invalid, illegal, or incapable of being enforced, the court, administrative agency, or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable
manner to the end that transactions 

  
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contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as
is enforceable. 
 Section 13.14 Governing Law. This Agreement (and any claims or disputes arising out of or related
hereto or thereto or to the transactions contemplated hereby and thereby or to the inducement of any party to enter herein and therein, whether for breach of contract, tortious conduct, or otherwise and whether predicated on common law, statute, or
otherwise) shall be governed by and construed and interpreted in accordance with the Laws of the State of Delaware irrespective of the choice of laws principles of the State of Delaware, including all matters of validity, construction, effect,
enforceability, performance, and remedies. 
 Section 13.15 Dispute Resolution. The procedures for negotiation and
binding arbitration set forth in Article IV of the Indemnification and Release Agreement shall apply to any dispute, controversy or claim (whether sounding in contract, tort or otherwise) that arises out of or relates to this Agreement, any breach
or alleged breach hereof, the transactions contemplated hereby (including all actions taken in furtherance of the transactions contemplated hereby on or prior to the date hereof), or the construction, interpretation, enforceability, or validity
hereof. 
 Section 13.16 Performance. Each of COP and Phillips 66 shall cause to be performed, and hereby guarantees the
performance of, all actions, agreements and obligations set forth herein to be performed by any member of the COP Group and any member of the Phillips 66 Group, respectively. The Parties each agree to take such further actions and to execute,
acknowledge, and deliver, or to cause to be executed, acknowledged, and delivered, all such further documents as are reasonably requested by the other for carrying out the purposes of this Agreement or of any document delivered pursuant to this
Agreement. 
 Section 13.17 Construction. This Agreement shall be construed as if jointly drafted by the Parties and no
rule of construction or strict interpretation shall be applied against any Party. 
 Section 13.18 Effect if Distribution
Does Not Occur. Notwithstanding anything in this Agreement to the contrary, if the Separation Agreement is terminated prior to the Effective Time, this Agreement shall be of no further force and effect. 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names by
a duly authorized officer as of the date first written above. 
  

			
	CONOCOPHILLIPS
		
	By:	 	/s/ Ryan M. Lance
		 	 Name: Ryan M. Lance

Title:   Chairman, President and Chief Executive Officer

  

			
	PHILLIPS 66
		
	By:	 	/s/ Greg C. Garland
		 	 Name: Greg C. Garland

Title:   Chairman, President and Chief Executive Officer

  
 

 
 APPENDIX A 
 CONOCOPHILLIPS LIMITED 
 CONOCOPHILLIPS (U.K.) LIMITED 

 
  

UK Employee Matters Agreement 
  

 
 [—] 2012 

 CONTENTS 

 

							
	Clause	  	 	  	Page	 
			
	1.	  	Definitions and Interpretation	  	 	1	  
			
	2.	  	Transfer of Employees	  	 	3	  
			
	3.	  	Allocation of liabilities	  	 	6	  
			
	4.	  	Information and Consultation	  	 	6	  
			
	5.	  	Provision of Employees – Transition Services Agreement	  	 	7	  
			
	6.	  	Provision of Employees – Secondments	  	 	7	  
			
	7.	  	UK Share Incentive Plan	  	 	8	  
			
	8.	  	Tax Reporting and Withholding for Equity-Based Awards	  	 	9	  
			
	9.	  	Pensions	  	 	10	  
			
	10.	  	General Provisions	  	 	10	  

  
 - 1 -

 AGREEMENT 
 dated [•] 2012 
 PARTIES 

 

	1.	ConocoPhillips (U.K.) Limited (COPUK); and 

  

	2.	ConocoPhillips Limited (COPL). 

WHEREAS: 
 (A) This Agreement is entered
into by and between COPUK and COPL. COPUK and COPL are also referred to in this Agreement individually as a Party and collectively as the Parties; 
 (B) It has been determined that it would be appropriate and desirable to separate the upstream and downstream businesses of the ConocoPhillips group. Following such separation, the downstream business
will be operated by the Phillips 66 Group and the upstream business will be operated by the COP Group; 
 (C) COPUK has historically been
engaged in operating the upstream business of the ConocoPhillips group, and COPL has historically been engaged in operating the downstream business. Following the separation referred to in recital B above, employees of the downstream business will
be employed by COPL and employees of the upstream business will be employed by COPUK; 
 (D) This agreement sets out the agreement of the
Parties regarding the allocation and transfer of UK employees liabilities between COPL and COPUK and arrangements in relation to such employees. 
 IT IS AGREED: 
 1. DEFINITIONS AND
INTERPRETATION 
 1.1 In this Agreement, unless the context otherwise requires, the following words and phrases shall have
the following meanings: 
 COP Common Stock means the common stock, par value $0.01 per share, of COP; 

COP Group has the meaning given to it in the Separation Agreement; 
 COP Group UK SIP means the ConocoPhillips Share Incentive Plan; 

  

 COPL means ConocoPhillips Limited whose registered office is at Portman House, 2 Portman
Street, London, W1H 6DU (registered in England under registered number 529086); 
 COPL Secondee has the meaning given to it in
clause 6.1(b); 
 COPUK means ConocoPhillips (U.K.) Limited whose registered office is at Portman House, 2 Portman Street, London,
W1H 6DU (registered in England under registered number 524868); 
 COPUK Secondee has the meaning given to it in clause 6.1(a);

 CPP has the meaning given to it in clause 9.1; 
 Distribution has the same meaning as in the Separation Agreement; 
 Downstream
Employees has the meaning given to it in clause 2.1; 
 Effective Time means the effective time of the Distribution;

 Employee Matters Agreement means the Employee Matters Agreement entered into by ConocoPhillips and Phillips 66 dated [•]
2012; 
 Employees means all employees of COPL and COPUK; 
 Former COPL Employees has the meaning given to it in clause 2.7; 
 Former
COPUK Employees has the meaning given to it in clause 2.7; 
 HMRC means Her Majesty’s Revenue and Customs;

 ITEPA means the UK Income Tax (Earnings and Pensions) Act 2003; 
 Liabilities has the meaning given to it in the Separation Agreement; 

Party or Parties has the meaning given to it in Recital (A); 
 Phillips 66 Common Stock means the common stock, par value $0.01 per share, of Phillips 66; 
 Phillips 66 Group has the meaning given to it in the Separation Agreement; 

Phillips 66 Group UK SIP has the meaning given to it in clause 7.4; 
 Separation Agreement means the Separation and Distribution Agreement entered into by ConocoPhillips and Phillips 66 dated [•] 2012; 

SIP means a share incentive plan that complies with Schedule 2 of ITEPA; 
 Transfer Regulations means the Transfer of Undertakings (Protection of Employment) Regulations 2006; 

  
 - 2 -

 Transition Services Agreement has the meaning given to it in the Separation Agreement;

 1.2 The headings in this Agreement do not affect its interpretation. 
 1.3 References in this Agreement to statutory provisions shall (where the context so admits and unless otherwise expressly provided) be construed as references to those provisions as amended,
consolidated, extended or re-enacted from time to time (whether before or after the date of this Agreement). 
 1.4 In this Agreement:

  

	(a)	words denoting the singular shall include the plural and vice versa; 

  

	(b)	words denoting one gender shall include each gender and all genders; 

  

	(c)	references to persons shall be deemed to include references to natural persons, to firms, to partnerships, to bodies corporate, to associations, to organisations and to
trusts (in each case whether or not having separate legal personality), but references to individuals shall be deemed to be references to natural persons only; 

 

	(d)	references to clauses are references to clauses of this Agreement; 

  

	(e)	references to the parties include their respective successors in title, permitted assignees, estates and legal personal representatives; and 

 

	(f)	where the word “including” is used it shall be deemed to read “including without limitation”. 

1.5 Expressions in this Agreement that are appropriate to companies shall be construed, in relation to an undertaking that is not a company, as
references to the corresponding persons, officers, documents or organs, as the case may be, appropriate to undertakings of that nature. 
 2. TRANSFER OF EMPLOYEES 
 2.1 The Parties
intend that at the Effective Time the employment of all Employees whose employment duties are to be primarily related to the business activities of the Phillips 66 Group immediately after the Effective Time (collectively, the Downstream
Employees) and all liabilities relating to their employment (other than rights under the CPP) shall, to the extent such Employees are not already employed by COPL, transfer to COPL by operation of the Transfer Regulations. 

  
 - 3 -

 2.2 If, following the Effective Time, the contract of employment of any Downstream Employee who was employed
by COPUK immediately prior to the Effective Time is found or alleged not to have effect by virtue of the Transfer Regulations as if originally made with COPL, the Parties agree that: 

 

	(a)	COPL will, within 14 days of becoming aware of such finding or allegation, make an offer of employment to such Downstream Employee, to take effect upon the termination
referred to in clause 2.2(b) below, on terms and conditions which (other than the identity of the employer and any terms and conditions relating to an occupational pension scheme) do not differ from the corresponding provisions of the Downstream
Employee’s contract of employment immediately before the Effective Time; 

  

	(b)	if such offer of employment is accepted by the relevant Downstream Employee within 14 days of the offer being made, the Downstream Employee will be released from
employment by COPUK; 

  

	(c)	if such offer of employment is not accepted by the relevant Downstream Employee within 14 days of the offer being made (or if no such offer is made by COPL), COPUK may
terminate the employment of such Downstream Employee and COPL agrees to indemnify COPUK for any costs arising in relation to the employment of such Downstream Employee between the Effective Time and the termination date, and any costs arising in
connection with the termination of employment of such Downstream Employee. 

 2.3 If, following the Effective Time, the contract
of employment of any Downstream Employee who was employed by COPL immediately prior to the Effective Time is found or alleged to have effect by virtue of the Transfer Regulations as if originally made with COPUK, the Parties agree that: 

 

	(a)	COPL will, within 14 days of becoming aware of such finding or allegation, make an offer of employment to such Downstream Employee, to take effect upon the termination
referred to in clause 2.3(b) below, on terms and conditions which do not differ from the corresponding provisions of the Downstream Employee’s contract of employment immediately before the Effective Time; 

 

	(b)	if such offer of employment is accepted by the relevant Downstream Employee within 14 days of the offer being made, the Downstream Employee will be released from
employment by COPUK; 

  

	(c)	if such offer of employment is not accepted by the relevant Downstream Employee within 14 days of the offer being made (or if no such offer is made by COPL), COPUK may
terminate the employment of such Downstream Employee and COPL agrees to indemnify COPUK for any costs arising in relation to the employment of such Upstream Employee between the Effective Time and the termination date, and any costs arising in
connection with the termination of employment of such Downstream Employee. 

 2.4 The Parties intend that at the Effective Time,
the employment of all Employees whose employment duties are to be primarily related to the business activities of the COP Group immediately after the Effective Time (collectively, the Upstream Employees) and all liabilities relating to
their employment (other than rights under the CPP) shall, to the extent such Employees are not already employed by COPUK, transfer to COPUK by operation of the Transfer Regulations. 

  
 - 4 -

 2.5 If, following the Effective Time, the contract of employment of any Upstream Employee who was employed
by COPL immediately prior to the Effective Time is found or alleged not to have effect by virtue of the Transfer Regulations as if originally made with COPUK, the Parties agree that: 

 

	(a)	COPUK will, within 14 days of becoming aware of such finding or allegation, make an offer of employment to such Upstream Employee, to take effect upon the termination
referred to in clause 2.5(b) below, on terms and conditions which (other than the identity of the employer and any terms and conditions relating to an occupational pension scheme) do not differ from the corresponding provisions of the Upstream
Employee’s contract of employment immediately before the Effective Time; 

  

	(b)	if such offer of employment is accepted by the relevant Upstream Employee within 14 days of the offer being made, the Upstream Employee will be released from employment
by COPL; 

  

	(c)	if such offer of employment is not accepted by the relevant Upstream Employee within 14 days of the offer being made (or if no such offer is made by COPUK), COPL may
terminate the employment of such Upstream Employee and COPUK agrees to indemnify COPL for any costs arising in relation to the employment of such Upstream Employee between the Effective Time and the termination date, and any costs arising in
connection with the termination of employment of such Upstream Employee. 

 2.6 If, following the Effective Time, the contract of
employment of any Upstream Employee who was employed by COPUK immediately prior to the Effective Time is found or alleged to have effect by virtue of the Transfer Regulations as if originally made with COPL, the Parties agree that: 

 

	(a)	COPUK will, within 14 days of becoming aware of such finding or allegation, make an offer of employment to such Upstream Employee, to take effect upon the termination
referred to in clause 2.6(b) below, on terms and conditions which do not differ from the corresponding provisions of the Upstream Employee’s contract of employment immediately before the Effective Time; 

 

	(b)	if such offer of employment is accepted by the relevant Upstream Employee within 14 days of the offer being made, the Upstream Employee will be released from employment
by COPL; 

  

	(c)	if such offer of employment is not accepted by the relevant Upstream Employee within 14 days of the offer being made (or if no such offer is made by COPUK), COPL may
terminate the employment of such Upstream Employee and COPUK agrees to indemnify COPL for any costs arising in relation to the employment of such Upstream Employee between the Effective Time and the termination date, and any costs arising in
connection with the termination of employment of such Upstream Employee. 

  
 - 5 -

 2.7 All former employees of COPUK whose employment has terminated prior to the Effective Time, shall be
Former COPUK Employees (regardless of whether or not they provided services to an upstream or downstream business during their employment). All former employees of COPL whose employment has terminated prior to the Effective Time, shall
be Former COPL Employees (regardless of whether or not they provided services to an upstream or downstream business during their employment). Notwithstanding any other provisions in this Agreement, any liabilities in respect of Former
COPUK Employees or Former COPL Employees who, prior to the Effective Time, are deferred or pensioner members of the CPP will remain liabilities of the CPP. 
 2.8 On and after the Effective Time, (i) COPUK shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with
employment-related laws and requirements relating to the employment of the Upstream Employees and the treatment of any applicable Former COPUK Employees in respect of their former employment, and (ii) COPL shall be responsible for adopting and
maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related laws and requirements relating to the employment of the Downstream Employees and the treatment of any applicable Former COPL
Employees in respect of their former employment. 
 3. ALLOCATION OF LIABILITIES

 3.1 Except as otherwise provided in this Agreement: 
  

	(a)	COPL shall assume and be solely liable for, the handling, administration, investigation, and defence of claims or actions by or in respect of any of the Downstream
Employees on or after the Effective Time; and 

  

	(b)	COPUK shall assume and be solely liable for, the handling, administration, investigation, and defence of claims or actions by or in respect of any of the Upstream
Employees on or after the Effective Time. 

 4. INFORMATION AND
CONSULTATION 
 4.1 Subject to any limitations imposed by applicable law, COPUK and COPL shall provide to the other and their
respective agents and vendors all information necessary for the Parties to perform their respective duties under this Agreement. 
 4.2 Each
Party will comply with any legislative requirements which are triggered by the automatic transfer of the employment contracts of the Upstream Employees or the Downstream Employees to consult with such employees or their representatives or to provide
information to the relevant members of the other Party in relation to such employees, including under Regulation 11, Regulation 13 and Regulation 14 of the Transfer Regulations. 

  
 - 6 -

 5. PROVISION OF EMPLOYEES –
TRANSITION SERVICES AGREEMENT 
 5.1 The Parties recognise that: 

 

	(a)	a certain number of the Upstream Employees will be providing services to COPL pursuant to the terms of the Transition Services Agreement; and 

 

	(b)	a certain number of the Downstream Employees will be providing services to COPUK pursuant to the terms of the Transition Services Agreement. 

5.2 The Parties agree to provide all reasonable assistance to each other (or procure that such assistance is provided) to facilitate the provision of
Employees under such arrangements. 
 5.3 The Parties intend and believe that neither the provision of any services pursuant to the Transition
Services Agreement, nor the termination of such services, shall constitute a “relevant transfer” for the purposes of the Transfer Regulations. 
 5.4 If any Upstream Employee who is providing services to COPL pursuant to the Transition Services Agreement is found or alleged to have become by operation of the Transfer Regulations an employee of COPL
(an Alleged COPL Transferee): 
  

	(a)	COPL may terminate the employment of such Alleged COPL Transferee; and 

  

	(b)	provided that the termination is effected within one month of the date on which COPL becomes aware of the finding or allegation in respect of such Alleged COPL
Transferee, COPUK agrees to indemnify COPL in respect of any expenses, losses, fees, costs and/or liabilities arising out of the employment of such Alleged COPL Transferee and its termination. 

5.5 If any Downstream Employee who is providing services to COPUK pursuant to the Transition Services Agreement is found or alleged to have become by
operation of the Transfer Regulations an employee of COPUK (an Alleged COPUK Transferee): 
  

	(a)	COPUK may terminate the employment of such Alleged COPUK Transferee; and 

  

	(b)	provided that the termination is effected within one month of the date on which COPUK becomes aware of the finding or allegation in respect of such Alleged COPUK
Transferee, COPL agrees to indemnify COPUK in respect of any expenses, losses, fees, costs and/or liabilities arising out of the employment of such Alleged COPUK Transferee and its termination. 

6. PROVISION OF EMPLOYEES – SECONDMENTS 

6.1 The Parties recognise that: 
  

	(a)	COPUK may second Upstream Employees (each such individual being a COPUK Secondee) to COPL on or after the Effective Time for a specified period; and

  

	(b)	COPL may second Downstream Employees (each such individual being a COPL Secondee) to COPUK on or after the Effective Time for a specified period.

  
 - 7 -

 6.2 COPUK shall: 
  

	(a)	procure that the COPUK Secondees shall enter into such contractual arrangements with COPUK or COPL as are necessary for them to be seconded to COPL in accordance with
clause 6.1; and 

  

	(b)	enter into such agreements with COPL as are necessary to document such secondments. 

 6.3 COPL shall: 
  

	(a)	procure that the COPL Secondees shall enter into such contractual arrangements with COPL or COPUK as are necessary for them to be seconded to COPUK in accordance with
clause 6.1; and 

  

	(b)	enter into such agreements with COPUK as are necessary to document such secondments. 

7. UK SHARE INCENTIVE PLAN 
 7.1 COPUK and COPL shall take any and all reasonable actions as shall be necessary and appropriate to further the provisions of this clause 7, including, to the extent practicable, providing written
notice or similar communication to each Employee who holds shares under the COP Group UK SIP, informing such Employee of the actions contemplated by this clause 7 in respect of such shares. 
 7.2 The Parties will arrange for appropriate communications to be sent to participants in the COP Group UK SIP to explain the effect of the Distribution on their participation in the COP Group UK SIP.

 7.3 COPUK shall procure that each Upstream Employee who is participating in the COP Group UK SIP and each Downstream Employee who is
participating in the COP Group UK SIP shall be paid a sum of compensation in relation to any UK income tax and social security contributions payable in relation to Phillips 66 Common Stock on the Distribution. 

7.4 COPL will prior to the Effective Time establish a new SIP for the benefit of Downstream Employees (the Phillips 66 Group UK SIP), the
terms of which will be substantially similar to the terms of the COP Group UK SIP (save that the Phillips 66 Group UK SIP shall relate to Phillips 66 Common Stock rather than COP Common Stock). 

7.5 COPL shall invite all eligible Downstream Employees to apply for participation in the Phillips 66 Group UK SIP to take effect as soon as reasonably
practicable the Effective Time. 
 7.6 Following the Effective Time Downstream Employees shall: 

 

	(a)	cease to be eligible for new grants of share awards under the COP Group UK SIP; 

  
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	(b)	be permitted to retain COP Common Stock acquired before the Effective Time in the COP Group UK SIP for a period of 90 days after such time as HMRC confirms the relevant
sponsoring companies of the COP Group and the Phillips 66 Group have ceased to be “associated companies” (as defined in paragraph 94 of Schedule 2 to ITEPA); and 

 

	(c)	be eligible to participate in the Phillips 66 Group UK SIP on terms substantially similar to their participation in the COP Group UK SIP. 

7.7 Both Parties agree to cooperate in seeking agreement with HMRC that the relevant sponsoring company of the COP Group UK SIP and the relevant
sponsoring company of the Phillips 66 Group UK SIP will be treated as ceasing to be “associated companies” (as defined in paragraph 94 of Schedule 2 to ITEPA) as from the Effective Time. 

7.8 Each Party agrees to cooperate in providing the other Party with sufficient information relating to its share register in order to establish when the
Parties shall cease to be “associated companies” (as defined in paragraph 94 of Schedule 2 to ITEPA). 
 7.9 COPL will provide the
trustee or shall procure the provision to the trustee of the COP Group UK SIP with details of any Downstream Employees who have ceased to be employed by COPL in the UK and their reason for leaving. 

7.10 COPL will procure that the trustee of the COP Group UK SIP is kept informed of the Phillips 66 Common Stock awarded to or acquired by each
Downstream Employee under the Phillips 66 Group UK SIP. 
 7.11 COPUK will procure that the trustee of the Phillips 66 Group UK SIP is kept
informed of the COP Common Stock awarded to or acquired by each Downstream Employee under the COP Group UK SIP. 
 7.12 COPL will procure that
COPUK is reimbursed for any costs associated with the operation of the COP Group UK SIP that relate to Downstream Employees. 

8. TAX REPORTING AND WITHHOLDING FOR
EQUITY-BASED AWARDS 
 8.1 COPUK will be responsible for all income, payroll, or other tax
reporting related to income of Upstream Employees or Former COPUK Employees from equity-based awards, and COPL will be responsible for all income, payroll, or other tax reporting related to income of Downstream Employees or Former COPL Employees
from equity-based awards. Similarly, COPUK will be responsible for all income, payroll, or other tax reporting related to income of its non-employee directors from equity-based awards, and COPL will be responsible for all income, payroll, or other
tax reporting related to income of its non-employee directors from equity-based awards. Further, COPUK shall be responsible for remitting applicable tax withholdings for Upstream Employees to each applicable taxing authority, and COPL shall be
responsible for remitting applicable tax withholdings for Downstream Employees to each applicable taxing authority; provided, however, that either COPUK or COPL shall act as agent for the other company by remitting amounts withheld in
the form of shares or in conjunction with an exercise transaction to an appropriate taxing authority. COPUK and COPL will cooperate with each other and with third-party providers to effectuate withholding and remittance of taxes, as well as required
tax reporting, in a timely, efficient, and appropriate manner. 

  
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 9. PENSIONS 
 9.1 The Parties acknowledge and agree that matters relating to the UK ConocoPhillips Pension Plan (CPP) shall be dealt with in accordance with the provisions of a pensions demerger agreement
to be entered into between COPUK, COPL, the trustee of the CPP and the trustee of a new occupational pension scheme to be established by COPL. 
 10. GENERAL PROVISIONS 
 10.1 The rights of COPUK and COPL to
amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 
 10.2 Each Party agrees that any information conveyed or otherwise received by or on behalf of a Party in conjunction herewith that is not otherwise public through no fault of such Party is confidential
and is subject to the terms of the confidentiality provisions set forth herein and in the Separation Agreement, including Section 7.8 of the Separation Agreement. 
 10.3 All Liabilities retained, assumed, or indemnified against by COPL pursuant to this Agreement, and all Liabilities retained, assumed, or indemnified against by COPUK pursuant to this Agreement, shall
in each case be subject to the indemnification provisions of the Separation Agreement. Notwithstanding anything to the contrary, (i) no provision of this Agreement shall require COPL to pay or reimburse to COPUK any benefit-related cost item
that COPL has paid or reimbursed to COPUK prior to the Effective Time; and (ii) no provision of this Agreement shall require COPUK to pay or reimburse to COPL any benefit-related cost item that COPUK has paid or reimbursed to COPL prior to the
Effective Time. 
 10.4 Except as otherwise provided in this Agreement, each Party shall pay its own expenses in fulfilling its obligations
under this Agreement. 
 10.5 COPUK and COPL each acknowledges that actions required to be taken pursuant to this Agreement may be subject to
fiduciary duties or applicable law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith determination (as supported by advice from counsel experienced in such
matters) that to do so would violate such a fiduciary duty or applicable law. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release
and indemnify the other Party for any Liabilities caused by the failure to satisfy any such responsibility. 

  
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 10.6 This Agreement, together with the documents referenced herein, constitutes the entire agreement and
understanding among the Parties with respect to the subject matter hereof and supersedes all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. To the extent any provision of
this Agreement conflicts with the provisions of the Separation Agreement, the provisions of this Agreement shall be deemed to control with respect to the subject matter hereof. To the extent that any provision of this Agreement conflicts with the
provisions of the Employee Matters Agreement, in so far as the matter relates to employees of COPL or COPUK, this Agreement shall prevail. Any matters concerning employees of COPL or COPUK which are not dealt with expressly in this Agreement shall
be governed by the terms of the Employee Matters Agreement. 
 10.7 This Agreement shall inure to the benefit of and be binding upon the Parties
and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon any third parties any remedy, claim,
Liability, reimbursement, cause of action, or other right in excess of those existing without reference to this Agreement including under the Contracts (Rights of Third Parties) Act 1999 or other equivalent applicable law. Nothing in this Agreement
is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. The provisions of this Agreement are solely for the benefit of the
Parties, and no current or former Employee, officer, director, or independent contractor or any other individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement. This Agreement may not be
assigned by any Party, except with the prior written consent of the other Parties. 
 10.8 No change or amendment may be made to this Agreement
except by an instrument in writing signed on behalf of each of the Parties. Any Party may, at any time, (i) extend the time for the performance of any of the obligations or other acts of another Party, (ii) waive any inaccuracies in the
representations and warranties of another Party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by another Party with any of the agreements, covenants, or conditions contained herein. Any such extension
or waiver shall be valid only if set forth in an instrument in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a
waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right.

 10.9 All rights and remedies existing under this Agreement attached hereto are cumulative to, and not exclusive of, any rights or remedies
otherwise available. 
 10.10 Unless otherwise expressly provided herein, all notices, claims, certificates, requests, demands and other
communications hereunder shall be in writing and shall be deemed to be duly given: (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is
executed or the letter is refused by the addressee or its agent, (iii) if sent by overnight courier which delivers only upon the executed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the addressee
or its agent, or (iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (i),
(ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it shall have specified by like notice. 

  
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 10.11 This Agreement may be executed in multiple counterparts, each of which when executed shall be deemed
to be an original but all of which together shall constitute one and the same agreement. 
 10.12 If any term or other provision of this
Agreement is determined by a non-appealable decision by a court, administrative agency, or arbitrator to be invalid, illegal, or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other
provision is invalid, illegal, or incapable of being enforced, the court, administrative agency, or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the
end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 

10.13 This Agreement (and any claims or disputes arising out of or related hereto or thereto or to the transactions contemplated hereby and thereby or to
the inducement of any party to enter herein and therein, whether for breach of contract, tortious conduct, or otherwise and whether predicated on common law, statute, or otherwise) shall be governed by and construed and interpreted in accordance
with the laws of England. 
 10.14 The procedures for negotiation and binding arbitration set forth in Article VIII of the Separation Agreement
shall apply to any dispute, controversy or claim (whether sounding in contract, tort or otherwise) that arises out of or relates to this Agreement, any breach or alleged breach hereof, the transactions contemplated hereby (including all actions
taken in furtherance of the transactions contemplated hereby on or prior to the date hereof), or the construction, interpretation, enforceability, or validity hereof. 
 10.15 The Parties each agree to take such further actions and to execute, acknowledge, and deliver, or to cause to be executed, acknowledged, and delivered, all such further documents as are reasonably
requested by the other for carrying out the purposes of this Agreement or of any document delivered pursuant to this Agreement. 
 10.16 This
Agreement shall be construed as if jointly drafted by the Parties and no rule of construction or strict interpretation shall be applied against any Party. 
 10.17 Notwithstanding anything in this Agreement to the contrary, if the Separation Agreement is terminated prior to the Effective Time, this Agreement shall be of no further force and effect. 

  
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 SIGNATURE 
 This Agreement is signed by duly authorised representatives of the parties: 
  

							
				
	SIGNED	  	)	  	SIGNATURE:	 	_______________
	for and on behalf of	  	)	  		 	
	ConocoPhillips (U.K.) Limited	  	)	  	NAME:	 	_______________
				
	SIGNED	  	)	  	SIGNATURE:	 	_______________
	for and on behalf of	  	)	  		 	
	ConocoPhillips Limited	  	)	  	NAME:	 	_______________

  
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