Exhibit 10(g)


 


PACCAR
Inc


 


February 1, 1999


 


 


Mr. Kenneth Gangl


4614 Knollwood Drive


Racine, Wisconsin 53405


 


Dear Ken:


 


We would like to formally offer you the position
of Vice President Financial Services. This position reports directly to me.
This position is a salary grade 48 with an annual salary of $275,000 and is
eligible for 37.5% Incentive Compensation (IC) upon achievement of
pre-established goals. In addition, subject to approval of the Compensation
Committee of the PACCAR Inc Board of Directors, you will be eligible for our
long term incentive (LTI) plan for the 1999 cycle. The plan offers you a target
award level of 175% of your base salary with 85% allocated to stock options and
15% to contingent cash. The plan is structured to provide cash awards above
target levels (up to 200% of target) for outstanding performance. We feel this
is an outstanding financial package and provides high reward for outstanding
performance. I have enclosed additional information regarding IC and LTI.


 


As PACCAR is committed to providing a safe and
productive work environment for its employees, this offer is contingent upon
your passing a test for drugs of abuse. In addition, it is contingent upon
satisfactory responses from your references and background check. We also
require a post-offer, pre-hire physical exam. Julie Horsman, Human Resources
Manager, will provide you with more information regarding the drug screen and
physical exam.


 


For your review, I have enclosed documents
relating to PACCAR benefits and policies, including our relocation policy.
Within three days of your starting date, we must complete an I-9, Employment
Eligibility Verification. We also require that you sign a Non-Disclosure of
Confidential Information form. Copies of both forms are enclosed. If you have
any questions regarding benefits or policies, please contact Julie Horsman at
(425) 468-7547.


 





















 


We feel that the position of Vice President
Financial Services provides you with an excellent career opportunity that has
potential for future growth within PACCAR. We are very excited about having you
join our team. Please acknowledge acceptance of this offer by signing and
returning this letter to me by Friday, February 12, 1999.


 


Sincerely,


 


	
  /s/ Mike Tembreull

  	
   

  
	
   

  
	
  M. A. Tembreull

  
	
  Vice Chairman

  



 


Enclosures


 


 


I accept this offer of employment as outlined
above.


 


 


	
  /s/ Kenneth R. Gangl

  	
   

  	
  Feb 19

  	
   

  
	
  Kenneth Gangl

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
  Start Date

  	
   

  	
   

  	
   

  
						



 


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PACCAR Inc


 


February
18, 1999


 


 


Mr.
Kenneth Gangl


4614
Knollwood Drive


Racine,
Wisconsin 53405


 


 


Dear Ken:


 


This is an amendment to our offer letter dated
February 1, 1999 for the position of Vice President Financial Services. In
addition to what was outlined in our original letter, we offer the following:


 


1.               A
$140,000 loan. Interest to accrue at the Federal Home Loan Mortgage Company
(Freddie Mac) fixed rate for 30-year conventional mortgages as published in the
Wall Street Journal.


 


•                  Accrued
interest and principal to be forgiven if employment with PACCAR extends beyond
three years from start date of employment.


 


•                  Accrued
interest and principal immediately payable upon termination of employment
before three years.


 


2.               PACCAR
will make arrangements to have your home in Wisconsin purchased at a price
equal to the average of three appraisals.


 


3.               If
you work for PACCAR for at least eight years from start of employment date,
additional service will be added to the calculation of your retirement benefit
under the PACCAR Retirement Plan.


 


•                  The
amount of additional service will be equal to the number of years required to
bring your total service up to 15 years.


 





















 


•                  You
will be eligible for all early retirement benefits available to an early retiree
with 15 years of service, including:


•                                     Early
retiree medical


•                                     Unreduced
benefits at age 62


 


If you leave PACCAR before completing eight
years of service, all retirement benefits (including eligibility for early
retirement benefits) will be based on actual PACCAR service.


 


4.               We
will pay the expense to ship two vehicles from Wisconsin to Seattle.


 


5.               We
will pay for temporary housing for you in the Seattle area for up to four (4)
months.


 


Ken, we feel that this is a very generous offer
and that the position of Vice President Financial Services provides you with an
excellent career opportunity at PACCAR. We look forward to having you join our
team. To accept this offer, please sign and return a copy of this letter to me
by Wednesday, February 24, 1999.


 


Sincerely,


 


	
  /s/ Mike Tembreull

  	
   

  
	
   

  
	
  M. A. Tembreull

  
	
  Vice Chairman

  



 


 


I accept this offer of employment as outlined in
your letter dated February 1, 1999 and as stated above.


 


	
  /s/ Kenneth R Gangl

  	
   

  	
  Feb 19, 1999

  	
   

  
	
  Kenneth Gangl

  	
  Date

  
	
   

  	
   

  
	
  Start Date TBD

  	
   

  



 


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