ELA, Volume 4, pp. 32-38, August 1998, abstract. Z-pencils Judith J. McDonald, D. Dale Olesky, Hans Schneider, Michael J. Tsatsomeros, and P. van den Driessche The matrix pencil (A,B)={tB-A | t in C} is considered under the assumptions that A is entrywise nonnegative and B-A is a nonsingular M-matrix. As t varies in [0,1], the Z-matrices tB-A are partitioned into the sets L_s introduced by Fiedler and Markham. As no combinatorial structure of B is assumed here, this partition generalizes some of their work where B=I. Based on the union of the directed graphs of A and B, the combinatorial structure of nonnegative eigenvectors associated with the largest eigenvalue of (A,B) in [0,1) is considered.