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EXHIBIT 10.13
[PENNZOIL-QUAKER STATE COMPANY LETTERHEAD]
May 4, 2000
Xx. Xxxxx X. Xxxx
Chairman and CEO
Pennzoil-Quaker State Company
P. O. Box 2967
Houston, Texas 77252-2967
Dear Xxx:
We propose the following Agreement to be effective as of May
4, 2000, for the three years commencing January 1, 2001, which is the day after
the termination of your employment with Pennzoil-Quaker State Company.
In consideration of the mutual promises and understanding
contained in this Agreement, you and Pennzoil-Quaker State Company agree as
follows:
1. The term of this Agreement shall be three years from January
1, 2001.
2. Office and secretarial support will be furnished in Houston in
accordance with the policy attached hereto as Exhibit A.
3. During the term of this Agreement, you will not, without the
prior written consent of Pennzoil-Quaker State Company, engage
directly or indirectly in any business or endeavor
(financially as an individual, investor or lenders or as an
employee, director, officer, partner, independent contractor,
consultant or owner or in any other capacity calling for the
rendition of personal services or acts of management,
operation or control) which is in competition or inconsistent
with, or adverse to or opposed to, the interests of
Pennzoil-Quaker State Company. You should contact the Chief
Executive Officer of Pennzoil-Quaker State Company to request
such written consent prior to determining it is appropriate to
engage in any particular business or endeavor. Notwithstanding
the above, you are not prohibited from investing or trading on
your own behalf in publicly traded securities of other
companies.
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Xx. Xxxxx X. Xxxx -2- May 4, 2000
4. During the term of this Agreement, Pennzoil-Quaker State
Company will pay you a total of $2,100,000 on a payment
schedule as follows: payment will be made in equal monthly
amounts of $58,333.33 (except that the last payment shall be
$58,333.45) on the first day of the month, commencing January
1, 2001, and continuing each month thereafter with the last
payment payable on the first day of December, 2003. In
addition, Pennzoil-Quaker State Company will reimburse you for
all reasonable and necessary travel expenses incurred in
performing services for Pennzoil-Quaker State Company in
accordance with the policy set forth in Exhibit A. In the
event of your death or disability after December 31, 2000, any
amount unpaid under the terms hereof shall be paid to your
spouse, if living, or to your estate, on the same terms as
provided hereunder for payment, or, in the sole discretion of
the Board of Directors of Pennzoil-Quaker State Company, at
such earlier date as determined by the Board of Directors of
Pennzoil-Quaker State Company.
5. Neither you, nor your spouse or other beneficiaries shall have
the right to assign any part of your or their rights under
this Agreement. This Agreement contains the entire
understanding between Pennzoil-Quaker State Company and you
regarding this matter and supersedes any prior agreement
between the parties.
6. This Agreement may not be changed or otherwise amended except
by mutual consent evidenced in writing and executed by both
parties to this Agreement.
7. This Agreement is governed by the laws of the State of Texas.
Very truly yours,
/s/ XXXXX X. XXXXX
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Xxxxx X. Xxxxx
President
Pennzoil-Quaker State Company
Accepted and agreed to as of the 4th day of May, 2000.
/s/ XXXXX X. XXXX
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Xxxxx X. Xxxx
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EXHIBIT A
SUPPORT AND EXPENSES
The following are policies with respect to support and
expenses of Xx. Xxxx during the three-year period commencing January 1, 2001:
1. Company cars and aircraft may be utilized, with any personal
use of aircraft subject to IRS imputed income requirements.
2. Expenses incurred by Xx. Xxxx in furtherance of the Company's
business shall be reimbursed in accordance with customary
Company practices and procedures regarding expense
reimbursements.
The following are existing Company policies with respect to
retired chief executive officers and will continue throughout Xx. Xxxx'x
retirement:
1. Office space, furniture and equipment appropriate to the
status of a retired chairman of the board of a publicly-held
company will be provided.
2. Company will employ an executive assistant, acceptable to Xx.
Xxxx, who will be an employee of the Company with full
participation in the Company's employee benefit plans,
programs and practices. The executive assistant will report to
Xx. Xxxx and the duties and compensation of that assistant
will be determined by Xx. Xxxx (within the parameters of
overall Company guidelines and policy).
3. Xx. Xxxx and his executive assistant will be provided with
parking spaces acceptable to Xx. Xxxx.
4. Full reimbursement for cost of private ground transportation
service used in lieu of a Company chauffeured car.
