FIRST AMENDMENT
TO
EMPLOYMENT AGREEMENT
This First Amendment to the Employment Agreement (the "Amendment") is
made as of the 18th day of March, 2002 between Premcor Inc. (the "Company") and
Xxxxxxx X. Xxxxxx (the "Executive").
RECITALS
A. The parties hereto are parties to an Employment Agreement dated
February 1, 2002 (the "Employment Agreement").
B. The parties hereto desire to amend and modify certain provisions of
the Employment Agreement as provided herein.
AGREEMENT
In consideration of the foregoing, the mutual covenants herein
contained and other good and valuable consideration (the receipt, adequacy and
sufficiency of which are hereby acknowledged by the parties by their execution
hereof), the parties agree as follows.
1. Definitions. For purposes of this Amendment, capitalized terms used
herein have the same meanings ascribed to them in the Employment Agreement.
2. Amendments to the Employment Agreement.
2.1. Section 4 of the Employment Agreement is deleted in its
entirety and replaced with the following:
"4. Annual Bonus. With respect to each fiscal year
of the Company ending during the Employment Term, Executive shall be
eligible to earn an annual bonus award (an "Annual Bonus") if net
earnings per share to common shareholders of the Company, calculated
on a fully diluted basis and according to GAAP, as determined by the
Company's outside auditors, excluding the after-tax impact of any
extraordinary or special items that the Board determines in good
faith are not appropriately includable in the Annual Bonus
calculation because such items do not accurately reflect the
operating performance of the Company, such as inventory write ups and
write downs, LIFO adjustments, asset purchase or sale-related gains
or losses and acquisition-related write downs ("Adjusted EPS"), is at
least equal to $2.50. Upon achievement of such Adjusted EPS, the
Annual Bonus shall equal $125,000 (the "Base Bonus") plus, for each
$0.01 increase in the applicable fiscal year's Adjusted EPS above
$2.50 (calculated as described in the foregoing sentence), an amount
equal to one percent of Executive's Base Salary, provided that in no
event shall the Annual Bonus be greater than two times Executive's
Base Salary. The Annual Bonus shall be paid to Executive within
fifteen business days after the outside auditors approve the
Company's year-end earnings release. The Annual Bonus for 2002 only
shall be calculated based on earnings from January 1, 2002 and the
resulting amount multiplied by 11/12ths, to arrive at the amount due
for the eleven months of 2002, so long as Executive is employed
hereunder as of December 31, 2002. Annual Bonuses for subsequent full
years during which Executive is employed hereunder will reflect the
full year (January 1 through December 31)."
3. No Other Modifications. Nothing herein contained in any way impairs
the Employment Agreement, or alters, waives, annuls, varies or affects any
provision, condition or covenant therein, except as specifically set forth in
this Amendment. All other provisions of the Employment Agreement remain in full
force and effect.
4. Counterparts. This Amendment may be signed in counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.
5. Successors; Binding Agreement. All provisions of this Amendment
shall inure to the benefit of and be binding upon personal or legal
representatives, executors, administrators, successors, heirs, distributes,
devises and legatees of the Executive.
IN WITNESS WHEREOF, the parties hereto have duly executed this
Amendment as of the date and year first above written.
PREMCOR INC.
By: /s/ Xxxxxx X. X'Xxxxxx /s/ Xxxxxxx X. Xxxxxx
--------------------------------------- -----------------------------
Print Name: Xxxxxx X. X'Xxxxxx Xxxxxxx X. Xxxxxx
-------------------------------
Title: Chairman and
------------------------------------
Chief Executive Officer
------------------------------------
2
