Document:

<PAGE>
                                                                 EXHIBIT 10.2(b)

                    2001 CONDITIONAL STOCK UNIT AWARD PROGRAM
                                    UNDER THE
              1998 INCENTIVE PLAN OF PENNZOIL-QUAKER STATE COMPANY

                  1. Program. This 2001 Conditional Stock Unit Award Program
(this "Program") was adopted by the Committee under the 1998 Incentive Plan of
Pennzoil-Quaker State Company, as amended from time to time (the "Plan"), as a
vehicle for the grant of certain Stock Awards thereunder. The Committee retains
the right to amend, modify or terminate this Program at any time, provided that
no Common Stock Unit previously awarded hereunder shall be adversely affected.

                  2. Definitions. Capitalized terms used herein shall have the
meanings ascribed to them in the Plan or, if not defined in the Plan, the
meanings set forth below:

                  "Award Cycle" means a five-year period with respect to which
Units are awarded.

                  "Award Year" means the first Plan Year of each Award Cycle,
during which Units are granted to Program Participants.

                  "Common Stock Unit" means a unit awarded a Program Participant
hereunder for the purpose of measuring the benefits payable hereunder that shall
be deemed a Stock Award for all purposes of the Plan.

                  "Fiscal Year" means the year commencing January 1 and ending
December 31.

                  "Matured Units" means Units which are distributable in the
form of Common Stock.

                  "Payment Year" means the Plan Year following the close of the
five-year term of each Award Cycle, during which distribution of shares of
Common Stock equal to the number of Matured Units for such Award Cycle is to be
made.

                  "Plan Year" means a Fiscal Year.

                  "Program Participant" means an Employee who is awarded Common
Stock Units under this Program.

                  "Unit" means a Common Stock Unit.

                  3. Operation. This Program shall consist of one or more Award
Cycles, one of which shall commence on January 1, 2001. The Committee, in its
discretion, may establish an additional Award Cycle as of any January 1
thereafter during the continuance of this Program.

                  4. Designation of Program Participants. During the Award Year
of each Award Cycle, the Committee shall designate and notify in writing the
Program Participants in that Award Cycle and shall advise each such Program
Participant of the number of Units awarded to him under such Award Cycle.

                                      -1-
<PAGE>

                  5. Common Stock Units and Dividend Equivalents.

                  (a) Establishment of Common Stock Unit Ledger. The Company
shall set up an appropriate record (the "Common Stock Unit Ledger") that shall
from time to time reflect the name of each Program Participant and the number of
Units awarded to him under each Award Cycle.

                  (b) Dividend Equivalents. On each dividend payment date with
respect to Common Stock, the Company shall pay to each Program Participant who
is in the employ of the Company or any Subsidiary, or who has terminated such
employment under circumstances that avoid the forfeiture of his Units as
provided in Section 6(a) hereof, a cash payment equal to the number of Units
credited to the account of the Program Participant in the Common Stock Unit
Ledger as of the appropriate dividend record date times the dollar amount of the
dividend paid on such dividend payment date on each share of Common Stock. It is
intended that the amount of the payment shall be equivalent to the dividend that
such Program Participant would have received had he been the owner of a number
of shares of Common Stock equal to the number of Units credited to him on the
dividend record date. Notwithstanding the foregoing, no amount shall be paid
with respect to Units held by a Program Participant on a dividend record date
but forfeited by him prior to the dividend payment date.

                  6. Distributions.

                  (a) Conversion of Units Into Matured Units. Units awarded
under each Award Cycle shall become Matured Units at the close of the five-year
term of the Award Cycle as provided below. Units awarded any Program Participant
under the Award Cycle that were not previously forfeited shall become Matured
Units only if:

                           (i) the Program Participant was employed by the
         Company or any Subsidiary at the end of the five-year term of the Award
         Cycle;

                           (ii) the Program Participant has terminated
         employment during the term of the Award Cycle because of death,
         disability (as determined in the discretion of the Committee), or
         retirement after attaining age 65 (or at an earlier age if specifically
         approved for this purpose in writing by the Committee) and completing
         at least five (5) years of employment with the Company and its
         Subsidiaries; or

                           (iii) the Committee determines for any reason and
         subject to such conditions as it may determine appropriate to permit
         the Units to become Matured Units.

If a Program Participant shall terminate his employment with the Company or any
Subsidiary during the term of an Award Cycle, then all Units awarded such
Program Participant that have not become Matured Units shall be forfeited unless
such Units are to become Matured Units pursuant to the preceding sentence.
Notwithstanding the foregoing, upon the dissolution or liquidation of the
Company, all Units which have not previously been forfeited shall become Matured
Units.

                  (b) Distribution of Common Stock. A number of shares of Common
Stock equal to the number of Matured Units held by each Program Participant
shall be distributed to

                                      -2-
<PAGE>

each such Program Participant as soon as practicable after the close of the
five-year term of the Award Cycle, except as provided in subsection (d) of this
Section 6.

                  (c) Beneficiary Designations. Each person becoming a Program
Participant shall file with the Company a designation of one or more
beneficiaries to whom distributions otherwise due the Program Participant shall
be made in the event of his death while in the employ of the Company or any
Subsidiary or after termination of employment but prior to the distribution of
Common Stock attributable to any Matured Units (or cash out) as specified in
Section 6(b) or Section 6(d). The Program Participant shall have the right to
change the beneficiary or beneficiaries from time to time; provided, however,
that any change shall not become effective until received in writing by the
Company. If there is no effective beneficiary designation on file at the time of
a Program Participant's death, or if the designated beneficiary or beneficiaries
have all predeceased such Program Participant, the payment of any remaining
benefits shall be made to the Program Participant's estate. If the beneficiary
or beneficiaries shall survive the Program Participant but shall die before
receiving all of the benefits hereunder, any remaining benefits shall be
distributed to the deceased distributee's estate.

                  (d) Acceleration of Benefits.

                           (i) Upon Change in Control. Notwithstanding any
         provision of this Program to the contrary, in the event of the
         occurrence of a Change in Control (as defined herein), each Program
         Participant under an Award Cycle shall receive a cash payment equal to
         the product of (A) the number of Units awarded to the Program
         Participant under each Award Cycle of this Program as of the effective
         date of such Change in Control and (B) the value (as defined herein)
         per share of the Common Stock. Such payment shall be in lieu of any
         benefits otherwise payable under this Program in respect of such Units.
         As used herein, a "Change in Control" shall conclusively be deemed to
         have occurred (x) if the Board determines by resolution that a Change
         in Control that has a reasonable likelihood of depriving Employees of
         benefits they otherwise would have earned, by depriving Employees of
         the opportunity to fulfill applicable service and age prerequisites to
         benefits or otherwise has occurred, or (y) upon the occurrence of an
         event specified for such purposes as a "change in control" that has the
         reasonable likelihood of depriving employees of benefits they otherwise
         would have earned by depriving Employees of the opportunity to fulfill
         applicable service and age prerequisites to benefits or otherwise, by
         resolution of the Board adopted not later than sixty (60) days prior to
         the occurrence of such event. The effective date of a Change in Control
         shall be (1), in the case of such a Change in Control determined as
         specified in clause (x) of the preceding sentence, the date (not more
         than thirty days prior to the date on which the Board makes the
         determination) the Board determines as of the date on which the Change
         in Control has occurred or (2) in the case of such a Change in Control
         determined as specified in clause (y) of the preceding sentence, the
         date of occurrence of the event specified by the Board as constituting
         such Change in Control. "Value" as used herein of a share of Common
         Stock shall mean the amount determined to be the fair value per share
         thereof by the Board in the resolution or resolutions adopted by it
         determining that a Change in Control has occurred or will occur upon
         the occurrence of events specified as a Change in Control, or, in the
         absence of any determination of fair value by the Board, the average of
         the closing prices per share of the Common Stock on the New York Stock
         Exchange

                                      -3-
<PAGE>

         Composite Tape during the ten (10) trading days immediately prior to
         the effective date. In the event the Board determines the fair value,
         the amount so determined shall be not less than the ten-day average
         price computed in accordance with the preceding sentence and not in
         excess of an amount (assuming that such amount is in excess of such
         ten-day average) equal to the highest consideration paid for the Common
         Stock and any offer to the holders thereof made as a part or in
         connection with the transaction or transactions resulting in the Change
         in Control.

                           (ii) Upon Increase in Share Value. Notwithstanding
         any provision of the Program to the contrary, with respect to the Award
         Cycle commencing on January 1, 2001:

                                    (a) In the event that the average Fair
                  Market Value of a share of Common Stock for any twenty (20)
                  consecutive business day period ("20-Day Period") equals or
                  exceeds $22.03, as determined by the Committee (the "First
                  Threshold"), prior to an event described in Section 6(a),
                  6(d)(i), or 6(d)(ii)(b), then forty percent (40%) of the Units
                  (rounded up to the next whole number) awarded to the Program
                  Participant for such Award Cycle shall become Matured Units as
                  of the date of the First Threshold. A number of shares of
                  Common Stock equal to the number of such Matured Units shall
                  be distributed to such Program Participant as soon as
                  practicable after the date of the First Threshold, and the
                  total number of Units awarded to the Program Participant for
                  such Award Cycle shall be reduced by the number of such
                  Matured Units.

                                    (b) In the event that the average Fair
                  Market Value of a share of Common Stock of the Company for any
                  20-Day Period equals or exceeds $31.72, as determined by the
                  Committee (the "Second Threshold"), prior to an event
                  described in Section 6(a), 6(d)(i), or 6(d)(ii)(a), then one
                  hundred percent (100%) of the Units (if applicable, as
                  adjusted by Section 6(d)(ii)(a)) awarded to the Program
                  Participant for such Award Cycle shall become Matured Units as
                  of the date of the Second Threshold. A number of shares of
                  Common Stock equal to the number of such Matured Units (not
                  previously distributed under Section 6(d)(ii)(a)) shall be
                  distributed to such Program Participant as soon as practicable
                  after the date of the Second Threshold.

         A distribution of shares of Common Stock under this Section 6(d)(ii)
         shall be in lieu of any benefits otherwise payable under this Program
         in respect of such Matured Units.

                  7. Rights of Program Participants.

                  (a) Limitation of Rights. Nothing in this Program shall be
construed to:

                           (i) Give any Employee of the Company or a Subsidiary
                           any right to be awarded any Units other than in the
                           sole discretion of the Committee;

                           (ii) Give a Program Participant any rights whatsoever
                           with respect to shares of Common Stock prior to the
                           date Units held by the Participant become Matured
                           Units, except as provided in Section 6(d) hereof;

                                      -4-
<PAGE>

                           (iii) Limit in any way the right of the Company or
                           any Subsidiary to terminate a Program Participant's
                           employment with the Company or any Subsidiary at any
                           time;

                           (iv) Give a Program Participant or any other person
                           any interest in any fund or in any specific asset or
                           assets of the Company or any Subsidiary; or

                           (v) Be evidence of any agreement or understanding,
                           express or implied, that the Company or any
                           Subsidiary will employ a Program Participant in any
                           particular position or at any particular rate of
                           remuneration.

                  (b) Nonalienation of Benefits. No right or benefit under this
         Program shall be subject to anticipation, alienation, sale, assignment,
         pledge, encumbrance or charge, and any attempt to anticipate, alienate,
         sell, assign, pledge, encumber or charge the same will be void. No
         right or benefit hereunder shall in any manner be liable for or subject
         to any debts, contracts, liabilities or torts of the person entitled to
         such benefits. If any Program Participant or beneficiary hereunder
         shall become bankrupt or attempt to anticipate, alienate, sell, assign,
         pledge, encumber or charge any right or benefit hereunder, or if any
         creditor shall attempt to subject the same to a writ of garnishment,
         attachment, execution, sequestration or any other form of process or
         involuntary lien or seizure, then such right or benefit shall, in the
         discretion of the Committee, either cease and terminate absolutely or
         be held by the Company for the sole benefit of the Program Participant
         or the beneficiary, his spouse, children or other dependents, or any of
         them in such manner and in such proportion as the Committee shall deem
         proper, free and clear of the claims of any other party whatsoever.

                  (c) Prerequisites to Benefits. No Program Participant, or any
         person claiming through a Program Participant, shall have any right or
         interest in this Program or the Award Cycles, or any benefits
         hereunder, unless and until all the terms, conditions and provisions of
         the Award Cycle that affect such Program Participant or such other
         person shall have been complied with as specified herein.

                                              PENNZOIL-QUAKER STATE COMPANY

                                      -5-<PAGE>
                                                                 EXHIBIT 10.2(d)

              2001 INCENTIVE PLAN OF PENNZOIL-QUAKER STATE COMPANY

                       NONQUALIFIED STOCK OPTION AGREEMENT

                  PENNZOIL-QUAKER STATE COMPANY (the "Company") hereby grants on
____________, to ________________________________ (the "Optionee"), an employee
of the Company or one of its subsidiaries, the Nonqualified Option to purchase
from the Company up to, but not exceeding in the aggregate, _______________
shares of common stock, $0.10 par value per share, of the Company ("Stock") at
$___________ per share, such number of shares and such price per share being
subject to adjustment as provided in Section 15 of the 2001 Incentive Plan of
Pennzoil-Quaker State Company, as amended from time to time (the "Plan"), and
further subject to the following terms and conditions:

                  1. This Option is issued in accordance with and subject to all
of the terms, conditions and provisions of the Plan and administrative
interpretations thereunder, if any, which have been adopted by the Compensation
Committee (the "Committee") and are in effect on the date hereof. Except as
otherwise defined herein, capitalized terms shall have the same meanings
ascribed to them under the Plan.

                  2. (a) This Option shall not be exercisable until after 12
         months of continued employment with the Company or any parent or
         subsidiary of the Company immediately following the date this Option is
         granted, and thereafter shall be exercisable as follows:

                           (i) After 12 months of such continued employment,
                  this Option shall be exercisable for any number of shares up
                  to and including, but not in excess of, 33-1/3% of the
                  aggregate number of shares subject to this Option;

                           (ii) After two years of such continued employment,
                  this Option shall be exercisable for any number of shares up
                  to and including, but not in excess of, 66-2/3% of the
                  aggregate number of shares subject to this Option; and

                           (iii) After three years of continued employment, this
                  Option shall be fully exercisable;

                                       1
<PAGE>

         provided that the number of shares as to which this Option becomes
         exercisable shall, in each case, be reduced by the number of shares
         theretofore purchased pursuant to the terms hereof.

                           (b) Notwithstanding the provisions of subparagraph
         (a) of this paragraph 2, this Option may be exercised to the extent
         then unexercised, irrespective of the 12-month, 33-1/3% and 66-2/3%
         limitations set forth in subparagraph (a) above, in the event of:

                           (i) Death of the Optionee while in the employment of
                  the Company or any parent or subsidiary of the Company;

                           (ii) Termination of employment of the Optionee by
                  reason of total and permanent disability, as determined by the
                  Committee ("Disability"); or

                           (iii) Termination of the Optionee's employment by
                  retirement on or after age 55 under or in accordance with the
                  retirement plan of the Company or any parent or subsidiary of
                  the Company in which he/she is then participating after
                  completion, as of the date of such retirement, of not less
                  than five years of employment with the Company or any parent
                  or subsidiary of the Company ("Retirement") or termination of
                  employment for such other reasons as may be approved in
                  writing by the Committee; provided, however, that this Option
                  shall not be exercisable for a period of six months
                  immediately following the date this Option is granted,
                  notwithstanding any such earlier retirement.

                           (c) In the event of termination of employment for any
         reason other than specified above in subparagraph (b) of this paragraph
         2, this Option may be exercised during the remainder of its term only
         with respect to the number of shares exercisable at the date of such
         termination.

                                       2
<PAGE>

                  3. The Option hereby granted shall terminate and be of no
force and effect with respect to any shares of Stock not previously acquired by
exercise by the Optionee upon the first to occur of:

                  (i) the expiration of ten years from the date of the grant of
         this Option; or

                  (ii) the expiration of 90 days after the termination of
         employment of the Optionee with the Company and any parent or
         subsidiary of the Company for reasons other than death, Disability or
         Retirement; provided, however, that if death of the Optionee occurs
         within 90 days of termination of employment, this clause (ii) shall be
         inapplicable; or

                  (iii) the expiration of three years after the termination of
         employment of the Optionee with the Company and any parent or
         subsidiary of the Company for reason of Retirement; provided, however,
         that if death of the Optionee occurs within 90 days of termination of
         employment, this clause (iii) shall be inapplicable.

                  This Option shall not be assignable or otherwise transferable
except by will or the laws of descent and distribution.

                  4. The Optionee shall have the right to relinquish, subject to
Committee approval, any then exercisable portion of the Option hereby granted
for shares of Stock upon the following terms and conditions:

                           (a) The Optionee, his/her heirs or other legal
         representatives, to the extent entitled to exercise the Option under
         the terms hereof, in lieu of purchasing the entire number of shares
         subject to purchase hereunder, shall have the right to relinquish all
         or any part of the unexercised portion of the Option (to the extent
         exercisable as provided in subparagraph (d) below) for a number of
         shares of the Stock of the Company and an amount of cash to be
         determined as follows:

                           (i) The written notice of exercise of such right of
                  relinquishment, provided for in subparagraph (b) below, shall
                  state the percentage, if any, of the Appreciated Value,
                  hereinafter defined, which such holder elects to receive in
                  cash (which percentage is called the "Cash Percentage"), such
                  Cash Percentage to

                                       3
<PAGE>

                  be in increments of ten percent (10%) of such Appreciated
                  Value up to (but not to exceed) fifty percent (50%) thereof;

                           (ii) The number of shares of Stock of the Company
                  issuable pursuant to such relinquishment shall be the number
                  of such shares, rounded to the next greater number of full
                  shares, as shall be equal to: one hundred percent (100%) less
                  the Cash Percentage, times the excess of (1) the aggregate
                  current market value of the shares of such Stock covered by
                  this Option or the portion thereof so relinquished over (2)
                  the aggregate purchase price for such shares specified above
                  (which excess is called the "Appreciated Value"), divided by
                  the then-current market value per share of such Stock; and

                           (iii) The amount of cash payable pursuant to such
                  relinquishment shall be an amount equal to the Appreciated
                  Value less the aggregate current market value of the issued
                  shares, which cash shall be paid by the Company subject to
                  such conditions as are deemed advisable by the Committee to
                  permit compliance by the Company with the withholding
                  provisions applicable to employers, including withholding
                  under the Code and applicable State law. If no cash payment is
                  to be made, or if the required tax withholding exceeds the
                  amount of the cash payment to be made, the amount of any such
                  required tax not so withheld from a cash payment must be
                  delivered by the Optionee to the Company with the notice
                  provided for in subparagraph (b), or the Optionee must make
                  other arrangements satisfactory to the Company for payment of
                  such withholding tax.

                           (b) Such right of relinquishment may be exercised
         only upon receipt by the Company (at the address provided in
         subparagraph (g) below) of a written notice of such relinquishment,
         which shall be dated the date of election to make such relinquishment.
         For purposes of the Plan, such date of election shall be deemed to be
         the date when such notice is sent by registered or certified United
         States mail (postage prepaid), if by mail, or when receipt is
         acknowledged by the Company, if mailed by other than registered or
         certified United States mail (postage prepaid), or if delivered by hand
         or by any telegraphic communications equipment of the sender or
         otherwise delivered.

                                       4
<PAGE>

         Nothing contained in this subparagraph (b) shall limit the discretion
         of the Committee to disapprove any election by the Optionee to exercise
         a right of relinquishment.

                           (c) For purposes of this paragraph 4, the "current
         market value" of a share of the Stock of the Company shall be its Fair
         Market Value on the day on which written notice of relinquishment is
         received by the Company.

                           (d) The Option hereby granted, or any portion
         thereof, may be relinquished only to the extent that (i) it is
         exercisable on the date written notice of relinquishment is received by
         the Company and (ii) the Committee, subject to the provisions of
         subparagraph (e) below, shall consent to the election of the Optionee
         to relinquish the Option as set forth in such written notice of
         relinquishment.

                           (e) The Committee shall have sole discretion to
         consent to or disapprove any election by the Optionee or his/her heirs
         or other legal representatives to relinquish such Option for Stock of
         the Company and cash as provided in subparagraph (a) above. Neither the
         Committee nor the Company shall be under any liability to any person by
         reason of the Committee's disapproval of any election pursuant to this
         paragraph 4.

                           (f) Neither this Option nor any right to relinquish
         the same to the Company as contemplated by subparagraph (a) above,
         shall be assignable or otherwise transferable except by will or the
         laws of descent and distribution.

                           (g) Subject to the limitations set forth elsewhere
         herein, the right of relinquishment granted hereby may be exercised by
         written notice delivered by the holder to PENNZOIL-QUAKER STATE
         COMPANY, PENNZOIL PLACE, P. O. BOX 2967, HOUSTON, TEXAS 77252-2967,
         which notice shall state the number of shares of Stock purchasable for
         cash under the Option or the portion thereof being relinquished by such
         holder in consideration of shares of Stock pursuant to the terms hereof
         together with any Cash Percentage elected by such holder.

                           (h) Upon relinquishment of the Option or any portion
         thereof for shares of Stock as provided herein, this Option or the
         portion hereof so relinquished shall

                                       5
<PAGE>

         thereupon terminate and be of no further force or effect, and the
         Company shall have no further obligation to issue and deliver shares of
         its Stock pursuant hereto.

                           (i) The obligation of the Company to issue and
         deliver shares pursuant to the relinquishment of this Option shall be
         subject to all applicable laws, rules and regulations and to such
         filings with or approvals by any governmental agencies or national
         securities exchanges as may be required and the Optionee agrees that
         he/she will not exercise the right of relinquishment granted hereby,
         and that the Company will have no obligation hereunder to effect such
         relinquishment, if the exercise of such right or the consummation of
         such relinquishment would constitute a violation by the Optionee or the
         Company of any applicable law or regulation.

                           (j) Notwithstanding any provision of this paragraph 4
         to the contrary, this Option shall terminate and be of no force or
         effect after the date specified by paragraph 3 hereof.

                           (k) Rights of relinquishment may not be exercised
         unless the Appreciated Value exceeds zero.

                  5. Subject to the limitations set forth herein and in the
Plan, this Option may be exercised by written notice delivered (i) by registered
or certified United States mail (postage prepaid), which shall be effective as
of the date mailed, or (ii) by hand or by any telegraphic communications
equipment of the sender, which shall be effective as of the date receipt is
acknowledged by the Company, to PENNZOIL-QUAKER STATE COMPANY, PENNZOIL PLACE,
P. O. BOX 2967, HOUSTON, TEXAS 77252-2967, or by any other procedure that may be
established and approved by the Committee. In addition to any information
required by paragraph 4 to exercise a right of relinquishment hereunder, such
written notice shall (1) state the number of shares with respect to which the
Option is being exercised, and (2) be accompanied by a check, cash or money
order payable to PENNZOIL-QUAKER STATE COMPANY in the full amount of the
purchase price for any shares being acquired other than pursuant to a right of
relinquishment or, at the option of the Optionee, accompanied by Stock
theretofore owned by such Optionee equal in value to the full amount of the
purchase price (or any combination of cash, check or such Stock). For purposes
of determining the amount, if any, of the purchase price satisfied by payment in

                                       6
<PAGE>

Stock, such Stock shall be valued at its Fair Market Value on the date of
exercise. Any Stock delivered in satisfaction of all or a portion of the
purchase price shall be appropriately endorsed for transfer and assignment to
the Company. In addition, whether or not the options and shares covered by the
Plan have been registered pursuant to the Securities Act of 1933, the Company
may at its election require the Optionee to give a representation in writing
that he/she is acquiring such shares for his/her own account for investment and
not with a view to, or for sale in connection with, the distribution of any part
thereof.

                  If any law or regulation requires the Company to take any
action with respect to the shares specified in such notice, the time for
delivery thereof, which would otherwise be as promptly as possible, shall be
postponed for the period of time necessary to take such action.

                  6. (a) The Optionee agrees that, at any time prior to the
         exercise of the Option and for a period of 12 months after the later of
         (i) the last date the Optionee exercises all or a portion of this
         Option or exercises all or a portion of the rights of relinquishment
         under the Option or (ii) termination of the Optionee's employment with
         the Company or any parent or subsidiary of the Company for any reason,
         including, but not limited to, by reason of Disability or Retirement,
         the Optionee shall not engage in any of the following activities
         (collectively, "Prohibited Activities") anywhere in the United States
         of America:

                           (i) Optionee shall not, directly or indirectly, (A)
                  accept any employment, assignment, position or responsibility
                  or provide any services or (B) acquire any ownership interest,
                  that involves the Optionee's Participation (as defined in
                  subparagraph (c) herein) in an entity's business that is
                  related to automotive and marine consumer products and
                  services, including: (1) motor oils, transmission fluids, gear
                  lubricants and greases and specialty lubricants; (2)
                  carburetor and fuel injector cleaners; (3) automotive filters,
                  including oil filters, transmission fluid filters and air
                  filters; (4) oil and fuel additives and treatments; (5) fast
                  lubrication, fluid maintenance and automotive preventative
                  maintenance services; (6) tire treatments, inflators and
                  sealants; (7) automotive appearance and accessory products,
                  including polishes and waxes, car wash products and cleaners,
                  window shades, sun blockers, car covers, seat and steering

                                       7
<PAGE>

                  wheel covers, floormats, glass treatments and other automotive
                  accessories; (8) air fresheners; and (9) any product, service,
                  person, firm, corporation, or event if, in the reasonable
                  opinion of the Committee, association therewith competes with
                  the Company (collectively, "Competitive Activity"), unless
                  such Competitive Activity is not in any way, as determined by
                  the Committee, competing with the Company or its parent or any
                  of its subsidiaries or affiliates (collectively, the Company
                  for purposes of this subparagraph (a)).

                           (ii) Optionee shall not in any way, directly or
                  indirectly, including, but not limited to, through another
                  person or entity acting on the Optionee's recommendation,
                  suggestion, identification or advice, solicit any employee of
                  the Company to leave the Company's employment or accept any
                  position with any other entity.

                           (iii) Optionee shall not use or disclose to anyone
                  any Confidential Information (as defined in subparagraph (c)
                  herein) regarding the Company other than as necessary in the
                  Optionee's position with the Company.

                           (iv) Optionee shall not engage in any acts which are
                  considered to be contrary to the best interests of the
                  Company, including, but not limited to, violating any of the
                  Company's employment and other policies and practices,
                  engaging in the unlawful trading in the securities of the
                  Company or of any other company based on information gained as
                  a result of the Optionee's employment with the Company or
                  engaging in any other activity that constitutes gross
                  misconduct.

                           (b) In the event the Committee determines, in its
         sole discretion, that the Optionee has engaged in any Prohibited
         Activity, in addition to any other remedies the Company may have
         available to it, the Company may, in its sole discretion:

                           (i) cancel the unexercised portion of the Option; and

                           (ii) require the Optionee to pay to the Company any
                  and all gains realized from the exercise of any portion of the
                  Option within the 12-month

                                       8
<PAGE>

                  period immediately preceding the date the Optionee engaged in
                  such Prohibited Activities, as determined by the Committee, in
                  its sole discretion.

                           (c) As used in this paragraph 6, the following terms
         shall have the meanings set forth below:

                           (i) "Confidential Information" shall mean
                  proprietary, confidential or other non-public information or
                  documents related to the business and affairs of the Company
                  and its worldwide business, whether or not in writing,
                  including, but not limited to, information regarding the
                  Company's earnings, costs, profits, expenses, material
                  sources, equipment sources, existing and prospective
                  customers, business plans, strategies, practices and
                  procedures, prospective and executed contracts, maps, computer
                  files, business arrangements, possible acquisitions or
                  divestitures, potential new products or markets, personnel,
                  know-how, formulae, processes, equipment, discoveries,
                  inventions, research, technical or scientific information and
                  other data and interpretations that are not accessible to the
                  public, none of which is part of general knowledge of the
                  industry. Moreover, all records, papers, reports, computer
                  programs, strategies, documents (including, without
                  limitation, memoranda, notes, files and correspondence),
                  opinions, evaluations, inventions, ideas, technical data,
                  products, services, processes, procedures, and interpretations
                  that are, or have been, produced by the Optionee or any other
                  employee, officer, director, agent, contractor, or
                  representative of the Company, whether or not in writing, all
                  shall comprise Confidential Information.

                           (ii) "Participation" shall be construed broadly to
                  include, without limitation: (A) serving as a director,
                  officer, executive, principal, employee, advisor, consultant
                  or contractor with respect to such a business entity; (B)
                  providing input, advice, guidance or suggestions to such a
                  business entity; or (C) providing a recommendation or
                  testimonial on behalf of such a business entity or one or more
                  products it transports, markets, sells, distributes, or
                  produces.

                                       9
<PAGE>

                  7. The Optionee's rights under the Plan and this Nonqualified
Stock Option Agreement are personal and this Option is exercisable during the
Optionee's lifetime only by the Optionee. No assignment or transfer of the
Optionee's rights under and interest in this Option may be made by the Optionee
otherwise than by will or by the laws of descent and distribution.

                  8. In any judicial action or proceedings between the parties
to enforce any of the provisions of this Agreement, to seek damages on account
of the breach hereof, to seek a judicial determination of the rights or
obligations of any party hereto or in which this Agreement is raised as a
defense, regardless or whether the action or proceeding is prosecuted to
judgment and in addition to any other remedy, the unsuccessful party shall pay
the successful party all costs and expenses, including reasonable attorneys'
fees, incurred therein by the successful party.

                  9. The Company may make such provisions as it may deem
appropriate for the withholding of any taxes which it determines is required in
connection with this Option or rights of relinquishment granted under the Plan.
However, the Optionee may pay all or any portion of the taxes required to be
withheld by the Company or paid by the Optionee in connection with the exercise
of all or any portion of this Option (including an exercise through
relinquishment) by electing to have the Company withhold shares of Stock, or by
delivering previously owned shares of Stock, having a Fair Market Value equal to
the amount required to be withheld or paid.

Dated:                                      PENNZOIL-QUAKER STATE COMPANY
      -----------------------

This Option has been accepted as of
the above date by the undersigned,
subject to the terms and provisions
of the Plan and administrative
interpretations thereof referred to
above.

---------------------------------------
     Optionee

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]