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[PENNZOIL COMPANY LETTERHEAD]
February 10, 1997
Xx. Xxxxxx X. Xxxxxxxxx
0000 Xxxxxx Xxxx Xxxxx
Xxxx, Xxxxx 00000
Dear Xxx:
Pennzoil Company hereby offers to employ you as Executive Vice
President of Pennzoil Exploration and Production Company effective as of
February 10, 1997. Pennzoil understands that because of certain contractual
commitment to your prior employer you may be unable to commence your services
for Pennzoil until the elapse of up to 90 days. If you are unable to commence
employment promptly, this agreement shall nevertheless be effective provided
you commence working for Pennzoil not later than 90 days from the date hereof.
The following will apply to your employment with Pennzoil:
1. Your annual base salary will be $300,000 payable in biweekly
amounts of $11,538.46.
2. You will be eligible for annual bonus opportunities commensurate
with your pay and responsibility levels.
3. You will participate in Pennzoil's Long-Term Incentive Plan with
target award levels commensurate with your pay and responsibility
levels.
4. You will be granted on the date hereof, nonqualified stock
options on 20,000 shares of Pennzoil common stock with each
option having an option exercise price equal to the fair market
value of one share of such common stock on the date hereof, and
having other terms and conditions customarily applicable to
executive stock options.
5. You will be granted on the date hereof 2,000 conditional stock
units under Pennzoil's Conditional Stock Award Programs.
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Xx. Xxxxxx X. Xxxxxxxxx - 2 - February 10, 1997
6. You will participate in Pennzoil's other compensation programs
applicable to executives generally, including the Executive
Severance Program, Benefits Acceleration Agreement, Salary
Continuation Program, Medical Expenses Reimbursement Plan,
Supplemental Disability Plan and Supplemental Life Insurance
Plan.
7. You will receive a perquisites allowance appropriate for your
responsibility level.
8. The grants of awards and participations described herein shall
all be conditioned upon your becoming actively employed by
Pennzoil within 90 days of the date hereof, and your salary shall
not commence until that date.
9. You will be entitled to five weeks annual paid vacation.
If you are in agreement with the foregoing, please sign and
return one copy of this agreement to me.
Very truly yours,
/s/ Xxxxx X. Xxxx
Xxxxx X. Xxxx
Accepted and agreed to this
10th day of February, 1997.
/s/ XXXXXX X. XXXXXXXXX
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Xxxxxx X. Xxxxxxxxx
