Document:

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                                                                   Exhibit 10.11
                                                                   -------------

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (the "Agreement") dated February 26, 2001 by and
between The Premcor Refining Group Inc. (the "Company") and Ezra C. Hunt (the
"Executive").

     WHEREAS, the Company considers it essential to its best interests and the
best interests of its stockholders to foster the employment of Executive by the
Company during the term of this Agreement and Executive is willing to accept
Executive's employment on the terms hereinafter set forth in this Agreement;

     NOW, THEREFORE, in consideration of the premises and mutual covenants
herein and for other good and valuable consideration, the parties agree as
follows:

1.   Term of Employment; Executive Representation.
     --------------------------------------------

     a.   Employment Term. Subject to the provisions of Section 8 of this
     Agreement, Executive shall be employed by the Company for the three-year
     period commencing on February 26, 2001 and ending on February 25, 2004 (the
     "Employment Term") on the terms and subject to the conditions set forth in
     this Agreement. Notwithstanding the preceding sentence, commencing February
     26, 2004, and on each anniversary thereof thereafter (each anniversary, an
     "Extension Date"), the Employment Term shall be automatically extended for
     an additional one-year period, unless either party provides the other party
     hereto with 90 days' written notice prior to the next Extension Date that
     the Employment Term shall not be so extended. For the avoidance of doubt,
     the term "Employment Term" shall include any extension that becomes
     applicable pursuant to the preceding sentence.

     b.   Executive Representation. Executive hereby represents to the Company
     that the execution and delivery of this Agreement by Executive and the
     Company and the performance by Executive of the Executive's duties
     hereunder shall not constitute a breach of, or otherwise contravene, the
     terms of any employment agreement or other agreement or policy to which
     Executive is a party or otherwise bound.

2.   Position.
     --------

     a.   While employed hereunder, Executive shall serve as the Company's
     Executive Vice-President and Chief Financial Officer and as an Executive
     Vice-President of Premcor Inc. and Premcor USA Inc. However, nothing
     contained herein shall in any way restrict the ability of the Company to
     assign Executive, with his consent, to other positions of equivalent status
     within the Company. In such positions, Executive shall have such duties and
     authority as shall be determined from time to time by the Board of
     Directors of the Company (the "Board"), and the Executive shall report
     directly to the Chief Executive Officer of the Company. If requested, the
     Executive shall also serve as a
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     member of the Board or the boards of any affiliates of the Company without
     additional compensation.

     b.   While employed hereunder, Executive will devote Executive's full
     business time and best efforts to the performance of Executive's duties
     hereunder and will not engage in any other business, profession or
     occupation for compensation or otherwise which would conflict with the
     rendition of such services either directly or indirectly; provided that
     nothing herein shall preclude Executive, subject to the prior approval of
     the Chief Executive Officer, from accepting appointment to the board of
     directors or trustees of any business corporation or any charitable
     organization, provided in each case, and in the aggregate, that such
     activities do not interfere with the performance of Executive's duties
     hereunder or conflict with Section 9. Any compensation earned by Executive
     for serving in such director or trustee capacity shall be the sole and
     exclusive property of Executive.

3.   Base Salary. While employed hereunder, the Company shall pay Executive a
base salary (the "Base Salary") at the annual rate of $375,000, payable in
regular installments in accordance with the Company's usual payment practices.
Executive shall be entitled to such increases in Executive's Base Salary, if
any, as may be determined from time to time in the sole discretion of the Board,
and any such increased Base Salary shall be deemed to be Executive's "Base
Salary" for purposes of this Agreement.

4.   Bonuses.
     -------

     a.   Signing Bonus. As consideration for Executive's entering into this
     Agreement, the Company shall pay Executive a one-time signing bonus of
     $100,000, payable as soon as practicable after the date hereof.

     b.   Annual Bonus. With respect to each calendar year while employed
     hereunder, Executive shall be eligible to earn an annual bonus award
     pursuant to the Company's annual incentive plan (the "Annual Incentive
     Plan") in an amount to be determined at the sole discretion of the Board in
     consultation with the Chief Executive Officer. Executive's Annual Bonus
     Opportunity (as defined in the Annual Incentive Plan) shall be 150% of Base
     Salary and his Annual Target Bonus (as defined in the Annual Incentive
     Plan) shall be 100% of Base Salary. However, Executive's Annual Bonus
     Opportunity and Annual Target Bonus shall be subject to change based upon
     modifications made from time to time to the Annual Incentive Plan by the
     Company's management team, which team shall include the Executive,
     provided, however, that in any such modification of the Annual Incentive
     Plan Executive's Annual Bonus Opportunity and Annual Target Bonus shall be
     no less than that of other similarly situated officers of the Company,
     including any Executive Vice President thereof. Notwithstanding the
     foregoing, Executive shall be entitled to an annual bonus of at least
     $236,950 and $100,000 for calendar years 2000 and 2001, respectively.

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5.   Equity Arrangements. Executive shall be granted an option to purchase
120,000 shares of the common stock of Premcor Inc. (the "Common Stock") pursuant
to the terms of the Premcor Inc. 1999 Stock Incentive Plan (the "Stock Incentive
Plan"). The option shall have a per share exercise price of $9.90.

     The options for 60,000 shares shall vest ratably over the three years
following the date hereof (1/3 per year), and the options for the remaining
60,000 shares shall vest on the earlier of the seventh anniversary of the grant
date or upon the achievement of the share prices set forth below for the Common
Stock: (i) following an initial public offering, as an average closing price for
any 180 day consecutive period, or (ii) in a Change in Control:

               Per Share Price                             % Vested
               ---------------                             --------
               below    $12.00                                 0%
               $12.00 - $14.99                                10%
               $15.00 - $17.99                                20%
               $18.00 - $19.99                                30%
               $20.00 - $24.99                                50%
               $25.00 - $29.99                                75%
               above    $29.99                               100%

     The specific terms of such grant shall be set forth in a separate option
agreement, and shall be subject to the terms of the Stock Incentive Plan.

6.   Employee Benefits.
     -----------------

     a.   Welfare and Pension Benefits. The Company shall provide Executive
     during the term of his employment hereunder with coverage under all
     employee pension and welfare benefit programs, plans and practices in
     accordance with the terms thereof, which the Company generally makes
     available to its senior executives; provided, however, that the Company
     shall reimburse Executive for the cost of COBRA continuation coverage
     (elected by Executive under his prior employer's group health plan) during
     the first 30 days of the Employment Term (after which time Executive will
     be eligible for coverage under the Company's medical plan pursuant to this
     Section 6(a)).

     b.   Vacation and Other Perquisites. Executive shall also be entitled to a
     minimum of four weeks of paid vacation in each calendar year and sick leave
     days in each calendar year as established under the Company's policies as
     in effect from time to time, which shall be taken at such times as are
     consistent with Executive's responsibilities hereunder. In addition, the
     Company shall reimburse Executive for the reasonable cost of financial and
     tax preparation and planning services listed on Exhibit A incurred by
     Executive during the calendar year 2001, upon presentation by Executive
     from time to time of appropriately itemized accounts of such expenditures.
     Such accounts shall be subject to approval by the Chief Executive Officer.

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7.   Business Expenses. Executive is authorized to incur reasonable expenses in
carrying out his duties and responsibilities under this Agreement, including,
without limitation, expenses for travel and similar items related to such duties
and responsibilities. The Company will reimburse Executive for all such expenses
upon presentation by Executive from time to time of appropriately itemized and
approved (consistent with the Company's policy) accounts of such expenditures.

8.   Termination. The Executive's employment hereunder may be terminated by
either party at any time and for any reason; provided that Executive will be
required to give the Company at least 60 days advance written notice of any
resignation of Executive's employment. Notwithstanding any other provision of
this Agreement, the provisions of this Section 8 shall exclusively govern
Executive's rights upon termination of employment with the Company and its
affiliates. Upon termination of Executive's employment for any reason, Executive
agrees to resign, as of the date of such termination, from the Board and the
board of directors of any of the Company's affiliates.

     a.   By the Company For Cause or by Executive Resignation Without Good
Reason.

          (i)  Executive's employment hereunder may be terminated by the Company
          for Cause (as defined below) at any time or, upon 60 days prior
          written notice, by Executive without Good Reason (as defined below).

          (ii)  For purposes of this Agreement, "Cause" shall mean (A)
          Executive's continued failure to substantially perform Executive's
          duties hereunder (other than as a result of total or partial
          incapacity due to physical or mental illness) for a period of 30 days
          following written notice by the Company to Executive of such failure,
          (B) dishonesty in the performance of Executive's duties hereunder, (C)
          an act or acts on Executive's part constituting a felony under the
          laws of Missouri, (D) Executive's willful malfeasance or willful
          misconduct in connection with Executive's duties hereunder or any act
          or omission which is materially injurious to the financial condition
          or business reputation of the Company or any of its subsidiaries or
          affiliates, or (E) Executive's breach of the restrictive covenants set
          forth in Section 9 hereof.

          (iii)  If Executive's employment is terminated by the Company for
          Cause or by Executive without Good Reason, Executive shall be entitled
          to receive:

               (A)  the Base Salary through the date of termination;

               (B)  any annual bonus earned but unpaid as of the date of
               termination for any previously completed calendar year;

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               (C)  reimbursement for any unreimbursed business expenses
               properly incurred by Executive in accordance with Company policy
               prior to the date of Executive's termination; and

               (D)  such employee benefits, if any, as to which Executive may be
               entitled under the employee benefit plans of the Company (the
               amounts described in clauses (A) through (D) hereof being
               referred to as the "Accrued Rights").

          Following such termination of Executive's employment by the Company
     for Cause or by Executive without Good Reason, except as set forth in this
     Section 8(a), Executive shall have no further rights to any compensation or
     any other benefits under this Agreement.

     b.   Disability or Death.
          -------------------

          (i)  Executive's employment hereunder shall terminate upon Executive's
          death or if Executive becomes physically or mentally incapacitated, as
          determined pursuant to the Company's long-term disability program as
          may be in effect from time to time (the "LTD Program"), and is
          therefore unable, for a period of time as determined under the LTD
          Program, to perform Executive's duties (such incapacity is hereinafter
          referred to as "Disability"). Any question as to the existence of the
          Disability of Executive as to which Executive and the Company cannot
          agree shall be determined in writing by a qualified independent
          physician mutually acceptable to Executive and the Company. If
          Executive and the Company cannot agree as to a qualified independent
          physician, each shall appoint such a physician and those two
          physicians shall select a third who shall make such determination in
          writing. The determination of Disability made in writing to the
          Company and Executive shall be final and conclusive for all purposes
          of the Agreement.

          (ii)  Upon termination of Executive's employment hereunder for either
          Disability or death, Executive or Executive's estate (as the case may
          be) shall be entitled to receive:

               (A)  the Accrued Rights; and

               (B)  a pro rata portion of Executive's annual target bonus based
               upon the percentage of the calendar year that shall have elapsed
               through the date of termination of the Executive's employment,
               payable when such bonus would have otherwise been payable had
               Executive's employment not terminated.

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          Following Executive's termination of employment due to death or
     Disability, except as set forth in this Section 8(b), Executive shall have
     no further rights to any compensation or any other benefits under this
     Agreement.

     c.   By the Company Without Cause, Expiration of Employment Term, or
Resignation by Executive for Good Reason.

          (i)  The Executive's employment hereunder may be terminated by the
          Company without Cause, by the Company's election not to extend the
          Employment Term, or, upon 60 days prior written notice, by Executive's
          resignation for Good Reason.

          (ii)  In the event that the Company elects not to extend the
          Employment Term pursuant to Section 1, unless Executive's employment
          is earlier terminated pursuant to paragraphs (a), (b) or (c) of this
          Section 8, Executive's termination of employment hereunder (whether or
          not Executive continues as an employee of the Company thereafter)
          shall be deemed to occur on the close of business on the day
          immediately preceding the next scheduled Extension Date.

          (iii)  For purposes of this Agreement, "Good Reason" shall mean: (A) a
          reduction in Executive's Base Salary or annual bonus opportunity or
          target bonus (other than any general salary reduction affecting at
          least the majority of salaried employees or annual incentive plan
          changes affecting all similarly situated officers of the Company,
          including any Executive Vice President, and provided that the
          establishment of reasonable performance targets by the Board will not
          constitute a reduction of annual bonus opportunity or target bonus),
          (B) a substantial diminution of Executive's duties and
          responsibilities, or (C) a transfer of Executive's primary workplace
          by more than thirty-five (35) miles from the Executive's workplace
          immediately prior to such transfer.

               Notwithstanding the foregoing, none of the events described in
          clauses (A), (B) or (C) of this Section 8(c)(ii) shall constitute Good
          Reason unless Executive shall have notified the Company in writing
          describing the events which constitute Good Reason and then only if
          the Company shall have failed to cure such event within thirty (30)
          days after the Company's receipt of such written notice. However, any
          termination of Executive's employment by the Company after delivery by
          the Executive to the Company of such notice shall be deemed to be a
          termination without Cause if Good Reason did exist at the time such
          notice was given by Executive.

          (iv)  If Executive's employment is terminated by the Company without
          Cause (other than by reason of death or Disability), as a result of
          the Company's nonrenewal of the Employment Term pursuant to Section 1
          hereof, or by Executive's resignation for Good Reason, Executive shall
          be entitled to receive:

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                    (A)  the Accrued Rights;

                    (B)  subject to Executive's continued compliance with the
                    provisions of Section 9, an amount equal to two (the
                    "Severance Multiplier") times the sum of the (1) then Base
                    Salary and (2) then annual target bonus, payable in
                    accordance with normal payroll practices of the Company in
                    substantially equal installments over the 24 month period
                    following termination of employment; provided that the
                    aggregate amount described in this clause (B) shall be
                    reduced by the present value of any other cash severance or
                    termination benefits payable to Executive under any other
                    plans, programs or arrangements of the Company or its
                    affiliates; and

                    (C)   any rights to which Executive is entitled pursuant to
                    the certain Stock Option Agreements, of even date herewith,
                    by and between Executive and the Company, as well as any
                    rights to which Executive is entitled under the Premcor Inc.
                    1999 Stock Incentive Plan.

                         Notwithstanding the foregoing, in the event Executive's
                    employment is terminated under this Section 8(c) at any time
                    following a Change of Control (defined below), the Severance
                    Multiplier shall be increased from two to three, and any
                    severance amounts payable pursuant to Section 8(c)(iv)(B)
                    shall be payable in the form of a single, lump sum cash
                    payment within 10 days following termination of employment.

                    (D)  The Company, at its expense, shall provide the
                    Executive with the reasonable job relocation counseling
                    services of a firm chosen from time to time by the
                    Executive, for a period not to exceed 18 months after the
                    Date of Termination.

                    (E)  The Company shall maintain in full force and effect,
                    for the Executive's continued benefit, until the earlier of
                    (1) one year after the date of the termination of
                    Executive's employment or (2) the Executive's commencement
                    of full time employment with a new employer, all life
                    insurance, medical, dental, health and accident and
                    disability plans, programs or arrangements in which the
                    Executive was entitled to participate immediately prior to
                    the termination of Executive's employment at a cost to the
                    Executive no greater than the Executive paid while employed
                    by the Company, provided that the Executive's continued
                    participation is possible under the general terms and
                    provisions of such plans and programs. In the event that the
                    Executive's participation is barred, the Company shall
                    arrange to provide the Executive, at the Company's expense,
                    with benefits substantially similar to those which the
                    Executive is entitled to receive under such plans, programs
                    or arrangements, or pay cash in an amount after tax
                    sufficient to enable the Executive to purchase substantially
                    similar coverage for a one year period

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                    on an individual basis, at a cost to the Executive no
                    greater than the Executive paid while employed. In the case
                    of the Executive's commencement of full time employment with
                    a new employer within the one year period, the Company
                    agrees to make up any differential in benefits between what
                    the Executive would have received from the Company in the
                    one year period and what the Executive receives from his new
                    employer, so that the Executive is ensured of receiving the
                    same benefits which he would have been entitled to receive
                    from the Company had his employment with the Company
                    continued for the one year period at a cost to the Executive
                    no greater than the Executive paid while employed.

               Following Executive's termination of employment by the Company
          without Cause (other than by reason of Executive's death or
          Disability), as a result of the Company's nonrenewal of the Employment
          Term pursuant to Section 1 hereof, or by Executive's resignation for
          Good Reason, except as set forth in this Section 8(c), Executive shall
          have no further rights to any compensation or any other benefits under
          this Agreement.

          d.   Notice of Termination. Any purported termination of employment by
          the Company or by Executive (other than due to Executive's death)
          shall be communicated by written Notice of Termination to the other
          party hereto in accordance with Section 11(h) hereof. For purposes of
          this Agreement, a "Notice of Termination" shall mean a notice which
          shall indicate the specific termination provision in this Agreement
          relied upon and shall set forth in reasonable detail the facts and
          circumstances claimed to provide a basis for termination of employment
          under the provision so indicated.

          e.   Definition of Change of Control. For purposes hereof, "Change of
          Control" shall mean any transaction, the result of which is that any
          Person (an "Acquiring Person") other than (i) Blackstone (defined
          below) or (ii) any Person, a majority of whose voting equity is owned
          by Blackstone, becomes the beneficial owner, directly or indirectly,
          of shares of stock of the Company or Premcor USA Inc. entitling such
          Acquiring Person to exercise 50% or more of the total voting power of
          all classes of stock of the Company or Premcor USA, Inc., as the case
          may be, entitled to vote in elections of directors. For purposes
          hereof, "Blackstone" shall mean, collectively, The Blackstone Group,
          Blackstone Capital Partners III Merchant Banking Fund L.P., and their
          affiliates (other than the Company and its subsidiaries) and "Person"
          shall mean a "person" as such term is used for purposes of Section
          13(d) or 14(d) of the Securities Exchange Act of 1934, as amended.

          f.   (i)  In the event it shall be determined that any payment,
               benefit or distribution (or combination thereof) by the Company,
               or by any other member of the same affiliated group with the
               Company (as determined under Code Section 280G(d)(5)) for the
               benefit of the Executive (whether paid or payable or distributed
               or distributable pursuant to the terms of this Agreement, or
               otherwise) (a "Payment") would be subject to the excise tax
               imposed by Section 4999 of the

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               Internal Revenue Code of 1986, as amended from time to time (the
               "Code"), or any interest or penalties are incurred by the
               Executive with respect to such excise tax (other than interest or
               penalties incurred as a result of the failure of the Executive to
               file any tax return, or pay any tax (except any such failure to
               pay tax in accordance with the terms hereof), required by
               applicable law or to be filed or paid by the Executive) (such tax
               together with any such interest and penalties, hereinafter
               collectively referred to as the "Excise Tax"), the Executive
               shall be entitled to receive an additional payment (a "Gross-Up
               Payment") in an amount such that after payment by the Executive
               of taxes (including payroll taxes and any interest or penalties
               imposed with respect to such taxes, other than interest or
               penalties imposed as a result of the failure of the Executive to
               file any tax return or pay any tax (except any such failure to
               pay tax in accordance with the terms hereof), required by
               applicable law to be filed or paid by the Executive), including,
               without limitation, any income taxes (and any interest and
               penalties imposed with respect thereto, other than interest or
               penalties imposed as a result of the failure of the Executive to
               file any tax return or pay any tax (except any such failure to
               pay tax in accordance with the terms hereof), required by
               applicable law to be filed or paid by the Executive) and the
               Excise Tax imposed upon the Gross-Up Payment, the Executive
               retains an amount of the Gross-Up Payment equal to the Excise Tax
               imposed upon the Payments.

               (ii)  Subject to the provisions of subsection 8(g)(iii), all
               determinations required to be made under this subsection 8(g),
               including whether and when a Gross-Up Payment is required and the
               amount of such Gross-Up Payment and the assumptions to be
               utilized in arriving at such determination, shall be made by
               Deloitte & Touche LLP or, if Deloitte & Touche LLP is unable or
               unwilling to serve, then such nationally recognized accounting
               firm as the Company shall select (Deloitte & Touche LLP or such
               other accounting firm being the "Accounting Firm" ), which shall
               provide detailed supporting calculations both to the Company and
               the Executive within fifteen (15) business days of the receipt of
               notice from the Executive that there has been a Payment, or such
               earlier time as is requested by the Company. All fees and
               expenses of the Accounting Firm shall be borne solely by the
               Company. Any Gross-Up Payment, as determined pursuant to this
               Section 8(g), shall be paid by the Company to the Executive
               within five (5) days after the receipt of the Accounting Firm's
               determination. If the Accounting Firm determines that no Excise
               Tax is payable by the Executive, it shall so indicate to the
               Executive in writing. Any determination by the Accounting Firm
               shall be binding upon the Company and the Executive. As a result
               of the uncertainty in the application of Section 4999 of the Code
               at the time of the initial determination by the Accounting Firm
               hereunder, it is possible that Gross-Up Payments which will not
               have been made by the Company should have been made
               ("Underpayment"), consistent with the calculations required to be
               made hereunder. In the event that the Corporation exhausts its
               remedies pursuant to subsection 8(g)(iii) and the Executive
               thereafter is required to make a payment of any Excise Tax, the
               Accounting Firm shall determine the amount of the

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               Underpayment that has occurred and any such Underpayment shall be
               promptly paid by the Corporation to or for the benefit of the
               Executive.

               (iii)  The Executive shall notify the Company in writing of any
               claim by the Internal Revenue Service that, if successful, would
               require the payment by the Company of the Gross-Up Payment. Such
               notification shall be given as soon as practicable but no later
               than ten (10) business days after the Executive is informed in
               writing of such claim and shall apprize the Company of the nature
               of such claim and the date on which such claim is requested to be
               paid. The Executive shall not pay such claim prior to the
               expiration of the thirty (30) day period following the date on
               which it gives such notice to the Company (or such shorter period
               ending on the date that any payment of taxes with respect to such
               claim is due). If the Company notifies the Executive in writing
               prior to the expiration of such period that it desires to contest
               such claim, the Executive shall:

                    (A)  give the Company any information requested by the
                    Company relating to such claim;

                    (B)  take such action in connection with contesting such
                    claim as the Company shall reasonably request in writing
                    from time to time, including, without limitation, accepting
                    legal representation with respect to such claim by an
                    attorney reasonably selected by the Company;

                    (C)  cooperate with the Company in good faith in order to
                    effectively contest such claim; and

                    (D)  permit the Company to participate in any proceedings
                    relating to such claim; provided, however, that the Company
                    shall bear and pay directly all costs and expenses
                    (including additional interest and penalties) incurred in
                    connection with such contest and shall indemnify and hold
                    the Executive harmless, on an after-tax basis, for any
                    Excise Tax or income tax (including interest and penalties
                    with respect thereto, other than interest or penalties
                    imposed as a result of the failure of the Executive to file
                    any tax return or pay any tax (except any such failure to
                    pay tax in accordance with the terms hereof), required by
                    applicable law to be filed or paid by the Executive) imposed
                    as a result of such representation and payment of costs and
                    expenses, Without limitation on the foregoing provisions of
                    this subsection 8(g)(iii), the Company shall control all
                    proceedings taken in connection with such content and, at
                    its sole option, may pursue or forego any and all
                    administrative appeals, proceedings, hearings and
                    conferences with the taxing authority in respect of such
                    claim and may, at its sole option, either direct the
                    Executive to pay the tax claimed and sue for a refund or
                    contest the claim in any permissible manner, and the
                    Executive agrees to prosecute such contest to a
                    determination before any administrative tribunal, in a court
                    of initial

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                    jurisdiction and in one or more appellate courts, as the
                    Company shall determine; provided, however, that of the
                    Company directs the Executive to pay such claim and sue for
                    a refund, the Company shall advance the amount of such
                    payment to the Executive, on an interest-free basis, and
                    shall indemnify and hold the Executive harmless, on an
                    after-tax basis, from any excise Tax or income tax
                    (including interest or penalties with respect thereto, other
                    than interest or penalties imposed as a result of the
                    failure of the Executive to file any tax return or pay any
                    tax (except any such failure to pay tax in accordance with
                    the terms hereof), required by applicable law to be filed or
                    paid by the Executive) imposed with respect to such advance
                    or with respect to any imputed income with respect to such
                    advance; and provided, further, that if the Executive is
                    required to extend the statute of limitations to enable the
                    Company to contest such claim, the Executive may limit this
                    extension solely to such contested amount. The Company's
                    control of the contest shall be limited to issues with
                    respect to which a Gross-Up Payment would be payable
                    hereunder and the Executive shall be entitled to settle or
                    contest, as the case may be, any other issue raised by the
                    Internal Revenue Service or any other taxing authority.

               (iv) If, after the receipt by the Executive of an amount advanced
               by the Company pursuant to subsection 8(g)(iii), the Executive
               becomes entitled to receive any refund with respect to such
               claim, the Executive shall (subject to the Company's complying
               with the requirements of subsection 8(g)(iii)) promptly pay to
               the Company the amount of such refund (together with any interest
               paid or credited thereon after taxes applicable thereto). If,
               after the receipt by the Executive of an amount advanced by the
               Company pursuant to subsection 8(g)(iii), a determination is made
               that the Executive shall not be entitled to any refund with
               respect to such claim and the Company does not notify the
               Executive in writing of its intent to contest such denial of
               refund prior to the expiration of thirty (30) days after such
               determination, then such advance shall be forgiven and shall not
               be required to be repaid and the amount of such advance shall
               offset, to the extent thereof, the amount of Gross-Up Payment
               required to be paid.

     9.   Nondisclosure of Confidential Information; Non-Solicitation.
          -----------------------------------------------------------

          a.   At any time during or for a period of three years after
          Executive's employment with the Company, Executive shall not, without
          the prior written consent of the Company, use, divulge, disclose or
          make accessible to any other person, firm, partnership, corporation or
          other entity any Confidential Information (as hereinafter defined)
          pertaining to the business of the Company or any of its subsidiaries,
          except (i) while employed by the Company, in the business of and for
          the benefit of the Company, or (ii) when required to do so by a court
          of competent jurisdiction, by any governmental agency having
          supervisory authority over the business of the Company, or

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          by any administrative body or legislative body (including a committee
          thereof) with jurisdiction to order Executive to divulge, disclose or
          make accessible such information. For purposes of this Section 8(a),
          "Confidential Information" shall mean non-public information
          concerning the financial data, strategic business plans, and other
          non-public, proprietary and confidential information of the Company,
          its subsidiaries, Blackstone (defined above), and their respective
          affiliates as in existence as of the date of Executive's termination
          of employment that, in any case, is not otherwise available to the
          public (other than by Executive's breach of the terms hereof).

          b.   In the course of Executive's employment Executive will acquire
          knowledge of Confidential Information and trade secrets. Executive
          acknowledges that the Confidential Information and trade secrets which
          the Company has provided and will provide to him could play a
          significant role were he to directly or indirectly be engaged in any
          business that competes with the Company or its subsidiaries. Executive
          agrees that, without the prior written consent of the Company, (i)
          during his employment with the Company and for a period of two years
          thereafter he shall not, on his own behalf or on behalf of any person,
          firm or company, directly or indirectly, solicit the business of any
          person or entity that has been a client or customer of the Company or
          its subsidiaries at any time during the 12 months immediately
          preceding such solicitation, and (ii) during his employment with the
          Company or for a period of one year thereafter he shall not, on his
          own behalf or on behalf of any person, firm or company, directly or
          indirectly, solicit or offer employment to any person who has been
          employed by the Company, its subsidiaries, or Blackstone in an
          executive or management capacity at any time during the 12 months
          immediately preceding such solicitation.

          c.   Executive and the Company agree that the foregoing covenants not
          to solicit are a reasonable covenant under the circumstances, and
          further agree that if in the opinion of any court of competent
          jurisdiction such restraints are not reasonable in any respect, such
          court shall have the right, power and authority to excise or modify
          such provision or provisions of these covenants as, to the court,
          shall appear not reasonable and to enforce the remainder of the
          covenant as so amended.

     10.  Specific Performance. Executive acknowledges and agrees that the
     Company's remedies at law for a breach or threatened breach of any of the
     provisions of Section 9 would be inadequate and, in recognition of this
     fact, Executive agrees that, in the event of such a breach or threatened
     breach, in addition to any remedies at law, the Company, without posting
     any bond, shall be entitled to cease making any payments or providing any
     benefit otherwise required by this Agreement and obtain equitable relief in
     the form of specific performance, temporary restraining order, temporary or
     permanent injunction or any other equitable remedy which may then be
     available.

     11.  Miscellaneous.
          -------------

                                       12
<PAGE>

     a.   Governing Law. This Agreement shall be governed by and construed in
     accordance with the laws of the State of Missouri, without regard to
     conflicts of laws principles thereof.

     b.   Entire Agreement/Amendments. This Agreement contains the entire
     understanding of the parties with respect to the employment of Executive by
     the Company. There are no restrictions, agreements, promises, warranties,
     covenants or undertakings between the parties with respect to the subject
     matter herein other than those expressly set forth herein. This Agreement
     may not be altered, modified, or amended except by written instrument
     signed by the parties hereto. This Agreement supercedes all prior
     agreements and understandings (including verbal agreements) between
     Executive and the Company and/or its affiliates regarding the terms and
     conditions of Executive's employment with the Company and/or its affiliates

     c.  No Waiver. The failure of a party to insist upon strict adherence to
     any term of this Agreement on any occasion shall not be considered a waiver
     of such party's rights or deprive such party of the right thereafter to
     insist upon strict adherence to that term or any other term of this
     Agreement.

     d.  Severability. In the event that any one or more of the provisions of
     this Agreement shall be or become invalid, illegal or unenforceable in any
     respect, the validity, legality and enforceability of the remaining
     provisions of this Agreement shall not be affected thereby.

     e.  Assignment. This Agreement shall not be assignable by Executive. This
     Agreement may be assigned by the Company to a company which is a successor
     in interest to substantially all of the business operations of the Company.
     Such assignment shall become effective when the Company notifies Executive
     of such assignment or at such later date as may be specified in such
     notice. Upon such assignment, the rights and obligations of the Company
     hereunder shall become the rights and obligations of such successor
     company, provided that any assignee expressly assumes the obligations,
     rights and privileges of this Agreement.

     f.   Mitigation. If the Executive's employment hereunder is terminated for
     any reason, the Executive shall not be subject to any duty or obligation to
     seek alternate employment or other sources of income or benefits, or to
     mitigate his damages, or to any similar duty or obligation, and, except as
     specifically provided with respect to the continuation of benefits, all
     payment and other obligations of the Company under this Agreement shall not
     be subject to any rights of set-off, duty to mitigate or other reduction,
     and shall be paid and performed in full notwithstanding any alternate
     employment or other sources of income or benefits obtained or received or
     receivable by the Executive.

                                       13
<PAGE>

     g.   Successors; Binding Agreement. This Agreement shall inure to the
     benefit of and be binding upon personal or legal representatives,
     executors, administrators, successors, heirs, distributes, devises and
     legatees.

     h.   Notice. For the purpose of this Agreement, notices and all other
     communications provided for in the Agreement shall be in writing and shall
     be deemed to have been duly given when delivered or mailed by United States
     registered mail, return receipt requested, postage prepaid, addressed to
     the respective addresses set forth below Agreement, or to such other
     address as either party may have furnished to the other in writing in
     accordance herewith, except that notice of change of address shall be
     effective only upon receipt.

     If to the Company:
          The Premcor Refining Group Inc.
            Attention:  Corporate Secretary
          8182 Maryland Avenue
          Clayton, Missouri  63105

     If to Executive:
          To the most recent address of Executive set forth in the personnel
     records of the Company.

     i.   Withholding Taxes. The Company may withhold from any amounts payable
     under this Agreement such Federal, state and local taxes as may be required
     to be withheld pursuant to any applicable law or regulation.

     j.   Counterparts. This Agreement 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.

     k.   Legal and Professional Fees. The Corporation shall pay to the
     Executive all reasonable legal and professional fees and expenses incurred
     by the Executive in seeking to obtain or enforce any right or benefit
     provided by this Agreement.

               IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       THE PREMCOR REFINING GROUP INC.

                                       By: /s/ Jeffry N. Quinn
                                          -------------------------

                                       14
<PAGE>

                                       Name:   Jeffry N. Quinn
                                             -----------------------------
                                       Title:  Executive Vice President
                                             -----------------------------

                                       EZRA C. HUNT

                                         /s/ Ezra C. Hunt
                                       -----------------------------
                                       201 Woodward Boulevard
                                       Tulsa, Oklahoma  74114

                                       15
<PAGE>

                                   EXHIBIT A
             (Financial and Tax Preparation and Planning Services)

 .  Financial consulting services and tax preparation and planning services from
   AYCO, Inc.

                                       16<PAGE>

                                                                   Exhibit 10.12
                                                                   -------------

                                    FORM OF
                          CHANGE-IN-CONTROL, RETENTION

                            AND SEVERANCE AGREEMENT

          This Change-In-Control, Retention And Severance Agreement (the
"Agreement") is made and entered into by and between Premcor Inc. (the
"Company") and ______________ (the "Executive") on this ___ day of __________,
2000.

          WHEREAS, the Executive is currently employed by The Premcor Refining
Group Inc. ("PRG"), an indirect wholly-owned subsidiary of the Company, and the
Company recognizes the Executive's unique skills and abilities in serving the
Company's business in such capacity;

          WHEREAS, the Company desires the Executive to continue serving PRG and
is willing to provide certain rights and benefits to Executive to assure such
continuation;

          WHEREAS, the Company also wishes to assure that it will have
Executive's continued dedication, notwithstanding any uncertainties regarding
Executive's status as a result of a potential change in control of the Company.

          WHEREAS, the Company believes it is imperative to diminish the
inevitable distraction by virtue of the personal uncertainties and risks created
by a potential change in ownership or control, to encourage Executive's full
attention and dedication to the Company's business, and to provide Executive
with reasonable protection from the risks of a change in ownership or control of
the Company.

          WHEREAS, in consideration of the following the Company and Executive
have determined that it is reasonable for the Company to ask Executive to
refrain from competing with the Company for a period of time following a
termination of employment pursuant to this Agreement.

          THEREFORE, the Company and Executive agree as follows:

          1.   DEFINITIONS

          (a)  "Board" shall mean the Company's Board of Directors.

          (b)  "Cause" shall mean:

               (i) the willful and continuous failure by Executive to
     substantially perform Executive's duties with the Company (other than any
     such failure resulting from Executive's incapacity due to physical or
     mental illness) after a written demand for substantial performance is
     delivered to Executive by the Board which specifically identifies the
     manner in which the Board believes that Executive has not substantially
     performed Executive's duties,

<PAGE>

               (ii)  gross misconduct or gross negligence by Executive, or

               (iii) Executive's conviction of or the entering of a plea of
     guilty or nolo contendere to the commission of a felony.

          For purposes of this definition, no act, or failure to act, on
     Executive's part shall be considered "willful" unless done, or omitted to
     be done, by Executive not in good faith and without reasonable belief that
     Executive's action or omission was in the best interest of the Company.
     Notwithstanding the foregoing, after a Change in Control, Executive shall
     not be deemed to have been terminated for Cause unless and until there
     shall have been delivered to Executive a copy of a resolution duly adopted
     by the affirmative vote of not less than three-quarters of the entire
     membership of the Board at a meeting of the Board (after at least 20 days
     prior written notice to Executive and an opportunity for Executive,
     together with Executive's counsel, to be heard before the Board), finding
     that (A) in the good faith opinion of the Board, Executive has failed to
     perform Executive's duties as set forth in subsection (i) of this Section
     1(b) and Executive did not correct such failure within a reasonable period
     of time after being requested by the Board to do so, or Executive has
     engaged in gross misconduct or gross negligence as set forth above in
     subsection (ii) of this Section 1(b), or (B) as set forth in subsection
     (iii) of this Section 1(b), Executive has been convicted of or has entered
     a plea of guilty or nolo contendere to the commission of a felony.

          (c) "Change in Control" of the Company shall mean:

               (i) the consummation of (A) any consolidation, reorganization,
     merger or similar transaction involving the Company, other than a
     consolidation, reorganization, merger or similar transaction in which the
     shareholders immediately prior to such transaction own more than 50% of the
     combined voting power of the voting securities of the surviving
     corporation, (B) any sale, lease, exchange or other transfer (in one
     transaction or a series of related transactions) of all or substantially
     all of the assets of the Company, or (C) the liquidation or dissolution of
     the Company;

               (ii) when any Person, other than an employee benefit plan or
     trust maintained by the Company or any of its Subsidiaries, becomes the
     "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
     directly or indirectly, of more than 25% of the voting power of the Company
     outstanding at the time (in one or more related or unrelated
     transactions)(a "Significant Interest"), but only if at such time such
     interest is greater than The Blackstone Group's beneficial ownership (as
     defined in Rule 13d-3 under the Exchange Act) of the voting power of the
     Company ("Blackstone's Interest");

               (iii) when, during any period of 24 months or less, the
     individuals who constituted the Board at the beginning of such period shall
     cease for any reason to constitute at least a majority thereof, unless the
     election or the nomination for election by the Company's shareholders, as
     the case may be, of each new director during such period was approved by a
     vote of at least two-thirds of the directors then still in office who were
     directors at the beginning of such period.

                                       2
<PAGE>

          (d) "COBRA" shall mean the Consolidated Omnibus Budget Reconciliation
Act, as amended.

          (e) "Common Stock" shall mean the common stock, par value $0.01 per
share, of the Company.

          (f) "Company" shall mean Premcor Inc. and any successor to its
securities, business and/or assets which executes and delivers the agreement
provided for in Section 6(a), hereof or which otherwise becomes bound by all the
terms and provisions of this Agreement by operation of law.

          (g) "Competitive Activity" shall have the meaning set forth in Section
3(b)(i).

(h)  "Competitive Operation" shall have the meaning set forth in Section
     3(b)(i).

          (i) "Confidential Information" shall mean all non-public information
relating to the Company's, its divisions' and Subsidiaries' and their
successors' business practices and business interests, including, but not
limited to, customer and supplier lists, business forecasts, business and
strategic plans, financial and sales information, information relating to
products, process, equipment, operations, marketing programs, research, or
product development, engineering records, computer systems and software,
personnel records or legal records.

          (j) "Date of Termination" shall mean: (A) if Executive's employment is
terminated by the Company due to Executive's Disability, the date thirty (30)
days after the Notice of Termination is given by the Company to Executive;
provided, however, that such notice shall have no effect if Executive resumes
the performance of Executive's duties on a full-time basis during such thirty
(30) day period, (B) if Executive's employment is terminated by the Company for
any reason other than Disability, the date on which the Executive receives the
Notice of Termination, unless a later date is specified in such notice and (C)
if Executive's employment is terminated by Executive, the date specified in the
Notice of Termination; provided; however, that such date shall be at least
thirty (30) days after such notice is provided to the Company.

          (k) "Disability" shall occur when: if, as a result of Executive's
incapacity due to physical or mental illness, Executive shall have been absent
from Executive's duties with the Company for six (6) consecutive months.

          (l) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

          (m) "Excise Tax" shall have the meaning set forth in Section 5(a).

          (n) "Good Reason" shall mean, except as otherwise set forth herein,
the occurrence of any of the following:

               (i) without Executive's express written consent, a material
     diminution of Executive's position, duties or responsibilities with the
     Company, a diminution in

                                       3
<PAGE>

     Executive's titles or offices with the Company or any removal of Executive
     from, or any failure to reelect Executive to, any of such positions, but
     only if any such diminution, removal or failure occurs after a Change in
     Control or upon the request of a Person effectuating a transaction which
     results in a Change in Control;

               (ii) a reduction by the Company in Executive's Base Salary or
     target incentive opportunity; unless such reduction is part of a general
     salary reduction affecting at least the majority of the Company's salaried
     employees or as a result of a change in the annual incentive plan
     opportunity affecting the majority of similar situated employees and such
     reduction occurs prior to a Change in Control (notwithstanding the
     foregoing, any such reduction made upon the request of a Person
     effectuating a transaction which results in a Change in Control shall
     constitute "Good Reason");

               (iii) the material reduction, in the aggregate, of the benefits
     provided under employee benefit plans (as described in Section 3(3) of
     ERISA, and including, but not limited to, thrift, pension, life insurance,
     health, dental, vision and accident or disability plans) in which Executive
     is participating or is eligible to participate (or substitute plans
     providing Executive with substantially similar benefits);

               (iv) without Executive's express written consent, the relocation
     of Executive's current principal place of business to a location that is
     more than thirty-five (35) miles from Executive's current location, but
     only if such relocation occurs after a Change in Control (required travel
     on the Company's business to an extent substantially consistent with
     Executive's present business travel obligations shall not constitute "Good
     Reason");

               (v) any breach by the Company of any material provision of this
     Agreement; or

               (vi) any failure by the Company to obtain the assumption of this
     Agreement by any successor or assign of the Company.

     For purposes of subsections (i) through (iii) above, the applicable date
for determining whether an event gives rise to "Good Reason" prior to a Change
in Control shall be the date of this Agreement. For purposes of subsections (i)
through (iii) above, the applicable date for determining whether an event gives
rise to "Good Reason" after a Change in Control shall be the date immediately
prior to such Change in Control.

     Notwithstanding anything in this Section 1(n) to the contrary, Executive
shall not be deemed to have "Good Reason" unless and until (x) Executive
provides the Company with a notice (which may or may not be a Notice of
Termination) containing the particulars of the event giving rise to Good Reason
not later than two (2) months following such event and (y) the Company fails to
cure or resolve the behavior otherwise constituting Good Reason within thirty
(30) days after receipt of such notice.  Unless the Company agrees otherwise,
the effective date of Executive's Notice of Termination for Good Reason shall be
no later than two (2) months following the expiration of such thirty-day period.

          (o) "Gross-up Payment" shall have the meaning as set forth in Section
5(a).

                                       4
<PAGE>

          (p) "Noncompete Period" shall have the meaning as set forth in Section
3(b)(i).

          (q) "Notice of Termination" shall mean a written notice which shall
indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive's employment under the provision so
indicated.

          (r) "Payment" shall have the meaning as set forth in Section 5(a).

          (s) "Person" shall have the meaning as set forth in Sections 13(d) and
14(d)(2) of the Exchange Act.

          (t) "Qualifying Termination" shall mean the termination of Executive's
employment by the Company or the Executive if such termination occurs either
after a Change in Control of the Company or in the case of a termination by the
Company, prior to a Change in Control but upon the request of a Person
effectuating a transaction which results in a Change in Control, unless the
Executive's termination is (a) by reason of Executive's death or Disability, (b)
by the Company for Cause, or (c) by Executive other than for Good Reason.

          (u) "Salary Continuation Period'' shall have the meaning set forth in
Section 3(a)(i).

          (v) "Subsidiary" shall mean any corporation of which more than 50% of
the outstanding capital stock having ordinary voting power to elect a majority
of the board of directors of such corporation (irrespective of whether or not at
the time capital stock of any other class or classes of such corporation shall
or might have voting power upon the occurrence of any contingency) is at the
time directly or indirectly owned by the Company, by the Company and one or more
other Subsidiaries, or by one or more other Subsidiaries.

          (w) "The Blackstone Group" shall mean Blackstone Capital Partners III
Merchant Banking Fund L.P., Blackstone Family Investment Partners III L.P.,
Blackstone Offshore Capital Partners III L.P. and each of their affiliates.

          2.  TERM AND BENEFITS

          This Agreement shall be in effect for three years from the date hereof
(the "Term"); provided, that the Term will be automatically renewed for
successive two (2) year periods thereafter unless at least twelve (12) months
advance written notice that the Term shall not be renewed is given by either
party to the other party hereto prior to the commencement of the next succeeding
two (2) year period. During the Term, Executive agrees to devote Executive's
full business time and attention to the business and affairs of the Company and
to use Executive's best efforts, skills and abilities to promote its interests.
Notwithstanding the foregoing, if a Change in Control of the Company should
occur while Executive is still an employee of the Company and while this
Agreement is in effect, then this Agreement shall continue in effect from the
date of such Change in Control of the Company for a period of not less than two
years.

                                       5
<PAGE>

          In the event of Executive's retirement, at Executive's election in
accordance with the Company's generally applicable retirement policies, as in
effect from time to time, this Agreement shall automatically terminate, without
additional notice to Executive, as of the effective date of Executive's
retirement.

          3.  TERMINATION PRIOR TO CHANGE IN CONTROL

          (a) Compensation Prior to a Change in Control. In the event Executive
is terminated prior to a Change in Control either by the Company without Cause
or by the Executive for Good Reason, Executive shall be entitled to receive
(unless such termination constitutes a Qualifying Termination, in which case the
Executive shall be entitled to receive the payments and benefits provided in
Section 4):

               (i) a continuation of the payment, in accordance with the
     Company's generally applicable payroll practices, of Executive's annual
     base salary ("Base Salary") as of the Executive's Date of Termination, for
     a period of one (1) year after Executive's Date of Termination ("Salary
     Continuation Period");

               (ii) continuation of Executive's and Executive's eligible
     dependents' existing participation at regular employee rates, in effect
     from time to time, in all of the Company's medical, dental, vision and
     group life plans or other welfare benefit programs in which Executive was
     participating immediately prior to Executive's Date of Termination until
     the earlier of (A) the end of the Salary Continuation Period (after which
     time Executive and Executive's eligible dependents will be eligible for
     coverage under COBRA) or (B) the date that Executive and Executive's
     eligible dependents commence coverage under benefit plans of a new
     employer. In the event that Executive's continued participation in any such
     plan or program is prohibited by applicable laws, the Company shall
     arrange, upon comparable terms, to provide Executive with benefits
     substantially equivalent, on an after-tax basis, to those which Executive
     and Executive's eligible dependents are, or become, entitled to receive
     under such plans and programs, until the earlier of the occurrence of (A)
     or (B), above;

               (iii) when payments are made, payment in cash of any pro-rata
     portion (through Executive's Date of Termination) of Executive's target
     annual incentive compensation for the year in which the Date of Termination
     occurred;

               (iv) payment in cash of any incentive compensation earned by
     Executive for any prior years for which Executive has not yet received
     payment;

               (v) for one (1) year after Executive's Date of Termination,
     outplacement services historically offered to displaced employees by the
     Company under substantially the same terms and fee structure as is
     consistent with an employee in Executive's position; and

               (vi) payment in cash of an amount equal to the value of all
     unused, earned and accrued vacation as of Executive's Date of Termination.

     However, in the event Executive's employment with the Company is terminated
prior to

                                       6
<PAGE>

a Change in Control of the Company and such termination is not a Qualifying
Termination or a termination without Cause or a resignation for Good Reason
(including, without limitation, termination by reason of Executive's voluntary
termination, retirement, death, or Disability, or the termination of Executive's
employment for Cause), Executive shall not be entitled to receive any benefits
under this Agreement.

          (b) Competitive Activity. If prior to a Change in Control of the
Company, Executive's employment is either terminated by the Executive without
Good Reason or by the Company for Cause, then:

               (i) during the six (6) month period following Executive's Date of
     Termination (the "NonCompete Period"), Executive shall not engage in any
     Competitive Activity; provided, Executive shall not be subject to the
     foregoing obligation if the Company breaches a material provision of this
     Agreement. If Executive chooses to engage in any Competitive Activity
     during the NonCompete Period, the Company shall be entitled to recover (in
     addition to any other available remedies), any benefits paid to Executive
     under this Agreement. For purposes of this Agreement, "Competitive
     Activity" shall mean (A) Executive's participation, without the written
     consent of the Chief Executive Officer of the Company, in the management
     of, or (B) Executive's acquisition of a financial interest (that is other
     than insignificant or de minimis) in, any business operation of any
     enterprise if such operation (a "Competitive Operation") engages in
     substantial and direct competition with any business operation actively
     conducted by the Company or its divisions and Subsidiaries on Executive's
     Date of Termination. For purposes of this Agreement, a business operation
     shall be considered a Competitive Operation if such business sells a
     competitive product or service which constitutes (I) at least 15% of that
     business's total sales or (II) at least 15% of the total sales of any
     individual Subsidiary or division of that business and, in either event,
     the Company's sales of a competitive product or service constitutes at
     least 15% of the total sales of the Company or at least 15% of the total
     sales of any individual Subsidiary or division of the Company.  Competitive
     Activity shall not include the mere ownership of one percent or less of the
     voting securities of any publicly traded enterprise; or

               (ii) during the two (2) year period following Executive's Date of
     Termination, Executive shall not, without the written consent of the Chief
     Executive Officer of the Company, on Executive's own behalf or on behalf of
     any person, firm or company, directly or indirectly, solicit or offer
     employment to any person who has been employed by the Company, its
     Subsidiaries, or The Blackstone Group in an executive or management
     capacity at any time during the 12 months immediately preceding such
     solicitation.

          (c) Release. Upon request by the Company, Executive agrees, as a
condition to receiving the payments and benefits hereunder, to execute and
deliver a release of the Company, its Subsidiaries, affiliated entities,
directors, officers, employees and shareholders in form and substance reasonably
satisfactory to the Company, further effectuating the release set forth herein.

                                       7
<PAGE>

          4.  TERMINATION FOLLOWING CHANGE IN CONTROL

          (a) Qualifying Termination. If Executive's termination is a Qualifying
Termination, Executive shall be entitled to receive the payments and benefits
provided in this Section 4.

          (b) Compensation Upon Termination After a Change in Control.

               (i) The Company shall pay to Executive, as severance pay (and
     without regard to the provisions of any other employee benefit or incentive
     plan), in a lump sum cash payment, not later than on the tenth (10th)
     business day following Executive's Date of Termination, an amount equal to
     the sum of (A) the product of two times the sum of (I) the higher of
     Executive's Base Salary on the Date of Termination or Executive's Base
     Salary as in effect immediately prior to the Change in Control of the
     Company, plus (II) the higher of Executive's annual target bonus on the
     Date of Termination or Executive's annual target bonus as in effect
     immediately prior to the Change in Control of the Company under any annual
     incentive compensation plan maintained by the Company at such times, and
     (B) a pro rata amount of the target bonus under any annual incentive
     compensation plan of the Company for the fiscal year in which Executive's
     Date of Termination occurs.

               (ii) In addition to the payments required by the preceding
     Section 4(b)(i), the Company shall:

                    (A) provide for continuation of Executive's and Executive's
          eligible dependents' existing participation at the regular employee
          rates, as in effect from time to time, in all of the Company's
          medical, dental, vision and group life plans or other welfare benefit
          programs in which Executive was participating immediately prior to
          Executive's Date of Termination until the earlier of (A) 24 months
          from Executive's Date of Termination (after which time Executive and
          Executive's eligible dependents will be eligible for coverage under
          COBRA) or (B) the date that Executive and Executive's eligible
          dependents commence coverage under benefits plans of a new employer.
          In the event that Executive's continued participation in any such plan
          or program is prohibited by applicable laws, the Company shall
          arrange, upon comparable terms, to provide Executive with benefits
          substantially equivalent, on an after-tax basis, to those which
          Executive and Executive's eligible dependents are, or become, entitled
          to receive under such plans and programs, until the earlier of the
          occurrence of (A) or (B) above;

                    (B) provide for full payment in cash of any unpaid
          performance unit/share awards in existence on Executive's Date of
          Termination (such awards shall vest in accordance with the applicable
          employee plans);

                    (C) provide for payment in cash of any incentive
          compensation earned by Executive for any prior years for which
          Executive has not yet received payment;

                    (D) for one (1) year after Executive's Date of Termination,
          provide and pay for outplacement services that have historically been
          offered to displaced

                                       8
<PAGE>

          employees generally by the Company under substantially the same terms
          and fee structure as is consistent with an employee in Executive's
          then current position (or, if higher, Executive's position immediately
          prior to the Change in Control of the Company); and

                    (E) pay to Executive an amount equal to the value of all
          unused, earned and accrued vacation as of Executive's Date of
          Termination pursuant to the Company's policies in effect immediately
          prior to the Change in Control of the Company.

               (iii) Unless otherwise provided in this Agreement or in the
     applicable compensation or stock option plan or program, all payments shall
     be made to Executive within ten (10) business days after Executive's Date
     of Termination. These benefits are in addition to all accrued and vested
     benefits to which Executive is entitled to under any of the Company's plans
     and arrangements, including but not limited to, the accrued vested benefits
     to which Executive is eligible for and entitled to receive under any of the
     Company's qualified and non-qualified benefit or retirement plans, or any
     successor plans in effect on Executive's Date of Termination.

               (iv) In addition to the foregoing and notwithstanding any
     provision in any Company stock plan or option agreement to the contrary, in
     the event of a Change in Control of the Company, all stock options and
     other equity awards held by Executive as of the date thereof shall
     immediately vest and become exercisable (time vesting options shall fully
     vest and performance vesting options shall vest if and only if the
     applicable performance goals have been satisfied).

          (c) Competitive Activity. If after a Change in Control of the Company,
Executive's employment is either terminated by the Executive without Good Reason
or by the Company for Cause, then:

               (i) during the NonCompete Period, Executive shall not engage in
     any Competitive Activity; provided, Executive shall not be subject to the
     foregoing obligation if the Company breaches a material provision of this
     Agreement. If Executive chooses to engage in any Competitive Activity
     during the NonCompete Period, the Company shall be entitled to recover (in
     addition to any other available remedies), any benefits paid to Executive
     under this Agreement.

               (ii) during the two (2) year period following Executive's Date of
     Termination, Executive shall not, without the written consent of the Chief
     Executive Officer of the Company, on Executive's own behalf or on behalf of
     any person, firm or company, directly or indirectly, solicit or offer
     employment to any person who has been employed by the Company, its
     Subsidiaries, or The Blackstone Group in an executive or management
     capacity at any time during the 12 months immediately preceding such
     solicitation.

          (d) Notice of Termination. Except as provided in Section 6(a), any
termination of Executive's employment following a Change in Control of the
Company shall be communicated by written Notice of Termination to the other
party hereto. No termination shall

                                       9
<PAGE>

be effective without such Notice of Termination.

          5.  ADDITIONAL PAYMENTS BY THE COMPANY

          (a) Notwithstanding anything to the contrary in this Agreement, in the
event that any payment or distribution by the Company to or for Executive's
benefit, whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement or otherwise (a "Payment"), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended, or any interest or penalties with respect to such excise tax (such
excise tax, together with any such interest or penalties, are hereinafter
collectively referred to as the "Excise Tax"), the Company shall pay to
Executive an additional payment (a "Gross-up Payment") in an amount such that
after payment by Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income,
employment and Excise Tax imposed on any Gross-up Payment, Executive retains an
amount of the Gross-up Payment equal to the Excise Tax imposed upon the
Payments. An independent, nationally recognized accounting firm (the "Accounting
Firm"), shall determine whether and when a Gross-up Payment is required and the
amount of the Gross-up Payment. The Company shall pay all expenses associated
with these determinations.

          (b) All fees and expenses of the Accounting Firm shall be borne solely
by the Company. Any Gross-Up Payment, as determined pursuant to this Section 5,
shall be paid by the Company to Executive (or to the appropriate taxing
authority on Executive's behalf) when due. If the Accounting Firm determines
that no Excise Tax is payable by Executive, it shall so indicate to Executive in
writing. Any determination by the Accounting Firm shall be binding upon the
Company and Executive. As a result of the uncertainty in the application of
Section 4999 of the Code, it is possible that the amount of the Gross-Up Payment
determined by the Accounting Firm to be due to (or on behalf of) Executive was
lower than the amount actually due ("Underpayment"). In the event that the
Company exhausts its remedies pursuant to Section 5(c) and Executive thereafter
is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of
Executive.

          (c) Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of any Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after Executive is informed in
writing of such claim and shall apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid. Executive shall not
pay such claim prior to the expiration of the thirty day period following the
date on which it gives such notice to the Company (or such shorter period ending
on the date that any payment of taxes with respect to such claim is due). If the
Company notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive shall (i) give the Company any
information reasonably requested by the Company relating to such claim, (ii)
take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company, (iii) cooperate with the Company in good
faith in order to effectively contest such claim and (iv) permit the Company to
participate in any proceedings relating to such claim; provided, however, that
the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred

                                       10
<PAGE>

in connection with such contest and shall indemnify and hold Executive harmless,
on an after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 5(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, further, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to Executive, on an interest-free basis, and shall indemnify and hold Executive
harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; provided,
further, that if Executive is required to extend the statute of limitations to
enable the Company to contest such claim, Executive may limit this extension
solely to such contested amount. The Company's control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Executive shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

          (d) If, after the receipt by Executive of an amount paid or advanced
by the Company pursuant to this Section 5, Executive receives any refund with
respect to a Gross-Up Payment, Executive shall, subject to the Company's
complying with the requirements of Section 5(c), promptly pay to the Company the
amount of such refund received (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by Executive of
an amount advanced by the Company pursuant to Section 5(c), a determination is
made that Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify Executive in writing of its intent to
contest such denial of refund prior to the expiration of thirty days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of the Gross-Up Payment required to be paid.

          6.  MISCELLANEOUS

          (a) Assumption of Agreement. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, reorganization,
share exchange or otherwise) to all or substantially all of the securities,
business and/or assets of the Company, by agreement in form and substance
reasonably satisfactory to Executive, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place. Failure of the
Company to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of a material provision of this Agreement and shall
entitle Executive to compensation in the same amount and on the same terms as
Executive would be entitled pursuant to Section 4, except that for purposes of
implementing the foregoing, the date on which any such succession becomes
effective shall be deemed Executive's Date of Termination without a Notice of
Termination being given.

                                       11
<PAGE>

          (b) Confidentiality. All Confidential Information which Executive
acquires or has acquired in connection with or as a result of the performance of
services for the Company, whether under this Agreement or prior to the effective
date of this Agreement, shall be kept secret and confidential by Executive
unless (a) the Company otherwise consents or (b) Executive is legally required
to disclose such Confidential Information by a court of competent jurisdiction.
This covenant of confidentiality shall extend beyond the Term of this Agreement
and shall survive the termination of this Agreement for any reason. If Executive
breaches this covenant of confidentiality, the Company shall be entitled to
recover from any benefits paid to Executive under this Agreement its damages
resulting from such breach.

          (c) Employment. Executive agrees to be bound by the terms and
conditions of this Agreement. However, nothing contained in this Agreement shall
impair or interfere in any way with the right of the Company to terminate
Executive's employment prior to or after a Change in Control of the Company,
subject to the terms of this Agreement.

          (d) Injunctive Relief. Executive acknowledges and agrees that the
remedy of the Company at law for any breach of the covenants and agreements
contained in Sections 6(b), 3(b) or 4(c) will be inadequate, and that the
Company will be entitled to injunctive relief against any such breach or any
threatened, imminent, probable or possible breach. Executive represents and
agrees that such injunctive relief shall not prohibit Executive from earning a
livelihood acceptable to Executive.

          (e) Notice. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when mailed by United States registered mail,
return receipt requested, postage prepaid, addressed to the respective addresses
set forth below, provided that all notices to the Company shall be directed to
the attention of the General Counsel of the Company, or to such other address as
either party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

          Premcor Inc.                         (Executive Name)
                                               ----------------
          8182 Maryland Avenue                 Address
                                               ----------------
          Suite 600                            City, State Zip
                                               ----------------
          St. Louis, Missouri 63105-3721
          Attention:  General Counsel

          (f) Further Assurances. Each party hereto agrees to furnish and
execute such additional forms and documents, and to take such further action, as
shall be reasonably and customarily required in connection with the performance
of this Agreement or the payment of benefits hereunder.

          (g) Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing signed by Executive and, on behalf of the Company, such officer(s) as
may be specifically designated by the Board. No waiver by either party hereto at
any time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations,
oral or otherwise, express

                                       12
<PAGE>

or implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement.

          (h) Termination of other Agreements; Entire Agreement. Upon execution
by both parties, this Agreement shall terminate all prior employment and
severance agreements between Executive and the Company and its divisions or
Subsidiaries, and this Agreement shall constitute the entire agreement between
the parties, except as expressly provided herein, concerning the effect of a
Change in Control on the employment relationship between the Company and
Executive.

          (i) Severability. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

          (j) Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

          (k) Mitigation. Executive shall not be required to mitigate the amount
of any payment provided for in Section 3 or 4 of this Agreement by seeking other
employment or otherwise, nor shall the amount of any payment provided for in
such Sections be reduced by any compensation earned by Executive as the result
of employment by another employer after Executive's Date of Termination, or
otherwise. Except as provided in the Agreement, the Company shall have no right
to set off against any amount owing hereunder any claim which it may have
against Executive.

          (l) Governing Law. This Agreement shall be governed in all respects by
the laws of the State of Missouri, without regard to conflicts of laws
principles.

          (m) Agreement Binding on Successors. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. This Agreement shall inure to the benefit of and be
enforceable by Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If
Executive should die while any accrued but unpaid amounts would still be payable
to Executive hereunder if Executive had continued to live, all such amounts,
unless otherwise provided herein, shall be paid in accordance with the terms of
this Agreement to Executive's devisee, legatee, or other designee or, if there
be no such designee, to Executive's estate.

          (n) Headings. All headings are inserted for convenience only and shall
not affect any construction or interpretation of this Agreement.

                                       13
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first above written.

PREMCOR INC.

By:
      -------------------------

Title:
      -------------------------

Name:
      -------------------------

EXECUTIVE:

-------------------------------

Name:
      -------------------------

Title:
      -------------------------

                                       14

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