Ferrellgas Partners, L.P. (NYSE:FGP) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As previously disclosed in a Current Report on Form 8-K filed on November 28, 2018 (the “Original Form 8-K”), on November 21, 2018, each of Doran N. Schwartz, Senior Vice President, Chief Financial Officer and Treasurer, and Trenton D. Hampton, Senior Vice President and Chief Operating Officer, agreed to voluntarily terminate his employment with Ferrellgas, Inc., the general partner (the “General Partner”) of Ferrellgas Partners, L.P. (“Ferrellgas Partners”) and Ferrellgas, L.P. (collectively, “Ferrellgas”).Also as disclosed in the Original Form 8-K, in connection with these voluntary terminations, Mr. Schwartz, Mr. Hampton and the General Partner agreed to certain separation terms that were to be reflected in definitive separation agreements to be prepared and entered into by each of Mr. Schwartz and Mr. Hampton with the General Partner.
On December 19, 2018, the General Partner, for itself and its parents, subsidiaries and affiliates, including Ferrellgas and Ferrell Companies, Inc., entered into a Separation Agreement and Release with each of Mr. Schwartz and Mr. Hampton (together, the “Separation Agreements”).The Separation Agreements contain terms consistent with the agreed separation terms described in the Original Form 8-K.Among other matters, the Separation Agreements provide for:
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lump-sum cash severance payments in the amount of $690,000 for each of Mr. Schwartz and Mr. Hampton to be paid by the General Partner; |
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release by the General Partner of Mr. Schwartz and Mr. Hampton from non-competition covenants in their respective employment and equity award agreements, but not from other restrictive covenants in those agreements, including covenants related to non-solicitation of Ferrellgas employees; and |
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mutual releases from any and all existing or potential claims, subject to customary exceptions. |
About Ferrellgas Partners, L.P. (NYSE:FGP)
Ferrellgas Partners, L.P. is engaged in the retail distribution of propane and related equipment sales, and midstream operations, which include crude oil logistics. The Company’s segments include propane and related equipment sales, midstream operations-crude oil logistics, and corporate and other. The propane and related equipment sales segment consists of the distribution of propane and related equipment and supplies. The midstream operations-crude oil logistics segment is engaged in providing crude oil transportation and logistics services. The corporate and other segment includes midstream operations-water solutions. The Company’s two subsidiaries include Ferrellgas Partners Finance Corp. and the operating partnership. Its general partner performs all management functions for the Company and holds general partner interest in Ferrellgas Partners and the operating partnership. It is a distributor of propane and related equipment and supplies to customers in the United States.
