DEPENDENT SCHOLARSHIP PROGRAM
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1 Phillips 66 DEPENDENT SCHOLARSHIP PROGRAM For Children of Phillips 66 Employees The Phillips 66 Dependent Scholarship Program ( Program ) exists to help provide assistance toward the cost of college or university education for dependent children of Phillips 66 and identified U.S. subsidiaries full-time, nonstore domestic employees and U.S. expatriates. The Program awards up to 60 four-year scholarships for higher education at an accredited institution of higher learning. With annual awards of $3,000 per student, the total monetary value of the scholarship is $12,000. Not more than 25% of the returned applications for scholarship, up to a maximum of 60 scholarships per year, are awarded. The criteria used to select scholarship winners are academic excellence, financial need and community service. Scholarship winners are expected to maintain scholastic standards and comply with the Rules and Regulations of the Program. The Program is administered by Community Relations, Government Affairs and Communications. The Manager of Community Relations serves as the Director of the Dependent Scholarship Program ( Director ). 1
2 RULES AND REGULATIONS 1. ELIGIBILITY FOR SCHOLARSHIP AWARDS. Scholarships will be awarded to high school seniors who are children, stepchildren, or full dependent wards of persons who: (a) As of May 1 of the year in which the awards are made, are nonstore employees (paid in U.S. dollars) of a Phillips 66 company as regular employees; or, in the calendar year in which their employment ended, were age 50 or older. Eligibility will not be extended to dependents of former employees who otherwise terminated employment from a Phillips 66 company. Any U.S. subsidiary of Phillips 66 in which ownership by Phillips 66 (or one of its subsidiaries) exceeds 50% shall be deemed employment by a Phillips 66 company within the meaning of this provision. And (b) On February 1 of the year in which the awards are made, were not Principal Officers of Phillips 66. And (c) As of the date of application and the date of any scholarship award, list scholarship applicants as dependents on their most recently filed federal income tax return (Form 1040). Exception to the rule may be requested for a natural or legally adopted son or daughter in cases such as divorce or separation. Explanation and proof of support must be provided. The Director of Dependent Scholarships will make final determination of eligibility. Students qualifying under the above provisions must also be qualified for admission to an accredited college or university at mid-term or the end of the current school year during which the awards are made. The primary purposes of these awards is to assist eligible high school senior students, as defined above, to continue their education in an accredited institution of higher learning and to be working toward the completion of requirements for a Bachelor's Degree. 2. APPLICATIONS. Any student who is eligible or will be eligible at the end of the current school year to receive a scholarship award may submit an application for scholarship. THE SELECTION COMMITTEE MAY NOT CONSIDER APPLICATIONS RECEIVED AFTER THE DATE SPECIFIED, NOR MAY IT CONSIDER APPLICATIONS WHICH DO NOT INCLUDE ALL MATERIAL REQUESTED IN THE APPLICATION MATERIALS. 2
3 3. SCHOLARSHIP AWARDS. Not more than 25 percent of applicants will receive scholarships each year from the Program based on returned applications by students eligible for the scholarship awards up to a maximum of 60. Selection of the scholarship winners and alternates will be made by an independent Selection Committee composed of members who are independent of the Phillips 66 organization and are not related to any employees of a Phillips 66 company. Scholarships will be awarded to the eligible applicants who are, in the opinion of the Selection Committee, most worthy of an award on the basis of academic excellence, financial need (the College Board's Financial Need Analysis is used for determining need based on number of dependents, number of students in college at the same time, liquid assets and income) and community service and leadership. In addition, the Selection Committee shall select thirty alternates. Announcement of scholarships awarded will be made to all scholarship applicants in mid May. Scholarship winners will be required to accept such awards for use during the next succeeding school year, except as the Director shall otherwise decide based on special circumstances presented by the winner. Each scholarship award shall entitle the holder to the sum of $12,000, subject to the continued compliance with these Rules and Regulations. The sum of $3,000 will be paid during the first year of residence and enrollment in an accredited institution of higher learning. Awards of $3,000 will be made annually not to exceed three additional years while a holder is working toward the requirements for a Bachelor's Degree, as provided in Rules 5, 7 and ALTERNATES. If any scholarship winners do not accept such scholarships, or fail to meet the obligations required of a scholarship holder, the alternates, in order of rank, may succeed to the remaining portion of the vacant scholarships. Revoked or forfeited scholarships will be conferred upon the designated alternates at the discretion of the Director. 5. EXTENSIONS OF SCHOLARSHIP AWARDS. After the first year of the holder's residence and enrollment in an accredited institution of higher learning, scholarship awards will be extended from year to year for a period not to exceed three years, while the holder is working toward the requirements for a Bachelor's Degree. Annual extensions will be made if the holder maintains personal and scholastic standards satisfactory to the Director, and complies with all the terms and provisions of these Rules and Regulations. Each annual extension shall entitle the holder to receive $3,000 during one year of residence and enrollment in an accredited institution of higher learning. Except as to holders of awards in active military service, extensions shall be for consecutive years only. However, the Director may, upon the request of any holder of an award or extension, suspend any extension. Except in unusual circumstances, any suspension shall not exceed one year. The Director will grant extensions of scholarship awards each year to holders eligible for extensions. The Director will make announcement of extensions granted or refused to holders of awards as soon as practicable. 3
4 6. MILITARY SERVICE. Any award of a scholarship, or extension thereof, to a holder called into or volunteering for active military service may be suspended from year to year at the request of the awardee and at the discretion of the Director until such time as such active military service has been completed. Upon completion of such service, the holder may petition the Director for reinstatement of such award or extension. The Director will grant reinstatement unless the petitioner is otherwise ineligible to receive funds under the provisions of these Rules and Regulations. Holders of awards or extensions suspended and reinstated under this Rule will be required to accept such awards or extensions for use during the next succeeding school year after completion of active military service. 7. OBLIGATION OF HOLDERS OF SCHOLARSHIPS. Scholarship holders will be required to maintain personal and scholastic standards satisfactory to the Director. Each holder is required to work toward the completion of requirements to receive a Bachelor's Degree. Each holder must be a full-time student at all times, i.e., at least 12 credit hours per semester or 24 credit hours during the school year (or the equivalent course load at institutions not utilizing credit hours as a measurement). It is expected that satisfactory performance, including passing grades in all subjects and a cumulative grade point average of 3.0 (or the equivalent at institutions not utilizing a 4.0 scale as a measurement), will be maintained each year. (See Rules 8 and 12.) Scholarship holders will be required to submit a progress report at the close of each year on special forms provided by the Director. Information bearing upon the eligibility of any holder of an award or extension to continue to receive funds must be reported promptly by the holder to the Director. The Director may request periodic reports from the college or university in which the holder is enrolled. The Director assumes no jurisdiction over the conduct, course of study or personal affairs of holders of scholarships except as expressly provided in these Rules and Regulations. 8. REVOCATION AND FORFEITURE OF SCHOLARSHIPS. The Director may revoke any scholarship award or extension thereof at any time. Revocation decisions will be at the sole discretion of the Director; however, petition for reinstatement can be submitted in writing to the Director stating the reasons for reconsideration. Holders of scholarships or extensions thereof failing in and/or withdrawing from less than one-third of the total credit hours enrolled in for any one school year may petition the Director for continuation of the award or extension, upon showing of plans satisfactory to the Director to make up hours failed or withdrawn from. The Director may continue such award or extension, or revoke the scholarship, depending upon the circumstances of each individual case. Failure to make up hours failed or withdrawn from within a reasonable time shall forfeit the scholarship. Failure in and/or withdrawal from more than one-third of the total credit hours enrolled in for any one school year shall forfeit any holder's scholarship. The Director may make exception to this Rule, upon petition by the holder, if absence from classes on account of illness, certified to by a physician, or other exceptional reasons, shall have been the cause of such failure or withdrawal. Scholarship payments shall be withdrawn from any scholarship holder who willingly participates in illegal activities. 4
5 9. DEATH, RETIREMENT, OR SEPARATION FROM SERVICE OF PARENT OF SCHOLARSHIP HOLDER. Death of the parent of any scholarship holder or retirement from or separation from service with a Phillips 66 company by the parent of any scholarship holder shall not cause the scholarship holder to be ineligible to receive extensions of scholarship awards. (See Rule 5.) 10. PAYMENT OF FUNDS. The Director shall determine the time and manner of payment of funds to which holders of scholarship awards and extensions thereof shall be entitled under these Rules and Regulations. The standard payment schedule provides for payments of $3,000 each August for the normal academic year of two semesters or three quarterly periods, usually beginning in August or September and ending in May or June. Checks will be made payable to the university and the student. Requests for early payments and special handling will be denied. However, deviations from this standard payment schedule may be approved for accelerated school attendance, as explained in Rule LIABILITIES AND RIGHTS. Neither Phillips 66, its subsidiaries, affiliates, directors, officers or employees, the Dependent Scholarship Program, the Director, nor the Selection Committee shall be liable for the debts or conduct of holders of scholarships, and such holders shall have no right to anticipate, assign or transfer rights acquired by reason of awards of scholarships or extensions thereof. 12. ACCELERATED SCHOOL ATTENDANCE. Scholarship holders desiring to participate in plans for earning a Bachelor's Degree in less than four years may petition the Director for acceleration of scholarship payments. The Director may grant such petitions for accelerated payments upon presenting the existence of advanced standing credits or plans for accelerated school attendance. Such requests for accelerated payments should not be presented until at least 50% of the credits required for graduation have been earned. Earning a Bachelor's Degree in less than four years will not deny the receipt of the full scholarship award. 13. MISCELLANEOUS. (a) Scholarship awards may be subject to taxes, which are the responsibility of the scholarship recipient. (b) Marriage of scholarship holders does not affect eligibility to receive scholarship awards. (c) Enrollment in an accredited junior college is acceptable; however, the scholarship holder must be working toward the requirements for a Bachelor's Degree. (d) The Director has the discretion at any time to make such exceptions, interpretations, modifications and amendments to the provisions hereof as he or she deems appropriate. (e) Address all correspondence to: Director Phillips 66 Dependent Scholarship Program P.O. Box 2197, MA3140 Houston, Texas
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