CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. (NASDAQ:CLMT) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
As previously disclosed, Timothy Go, Chief Executive Officer of Calumet GP, LLC (the “Company”), the general partner of Calumet Specialty Products Partners, L.P. (the “Partnership”), notified the board of directors of the Company (the “Board”) that he will resign as Chief Executive Officer of the Company, effective as of June 1, 2020. In connection with Mr. Go’s resignation, the Company and Mr. Go have entered into a Transition and Separation Agreement, effective March 11, 2020 (the “Agreement”). The Agreement will govern Mr. Go’s continued employment with the Company until the date of his separation from service, as well as the separation payments and benefits that Mr. Go may be entitled to receive in connection with that separation.
The Agreement anticipates that Mr. Go’s last day of employment will be June 1, 2020, unless that date is extended by mutual agreement of the parties by up to four (4) weeks, such last day of employment with the Company being the “Separation Date” to the Agreement. Until the Separation Date occurs, Mr. Go will continue providing services to the Company as may be requested by the Board and will assist with the successful transition to the new Chief Executive Officer. Until the Separation Date, Mr. Go will continue to receive the same compensation and benefits as he was receiving prior to his execution of the Agreement.
In addition, Mr. Go will be entitled to receive the following benefits, as long as he remains continually employed by the Company and compliant with the other terms of the Agreement:
The Agreement contains standard mutual releases and non-disparagement provisions for both Mr. Go and the Company and its affiliates. Provided that the parties are in compliance with the terms of the Agreement from execution of the Agreement until the Separation Date occurs, Mr. Go and the Company will be required to re-execute the Agreement following the Separation Date. Unless otherwise specifically noted within the Agreement, as with the non-competition restrictions described above, the Agreement does not release Mr. Go from any of the confidentiality, non-solicitation, non-disparagement, or other applicable restrictive covenants to which Mr. Go is currently bound. In acknowledgement of the consideration provided to Mr. Go in the Agreement, the “Prohibited Period” definition set forth in Section 11(c) of the Employment Agreement will be amended and revised to extend the post-termination period from “12 months” to “24 months.” In connection with his separation from service, Mr. Go will not be entitled to any of the severance benefits contemplated under his Employment Agreement.
The foregoing description of the Agreement is not complete and is qualified in its entirety by reference to the complete text of such agreement, which will be filed as an exhibit to the Partnership’s Quarterly Report on Form 10-Q for the three months ending March 31, 2020.
About CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. (NASDAQ:CLMT)
Calumet Specialty Products Partners, L.P. is a producer of specialty hydrocarbon products. The Company operates through three segments. In its specialty products segment, the Company processes crude oil and other feedstocks into a range of customized lubricating oils, white mineral oils, solvents, petrolatums and waxes. Its specialty products are sold to domestic and international customers using its products as raw material components. It also blends and market specialty products through its Royal Purple, Bel-Ray, TruFuel and Quantum brands. In its fuel products segment, the Company processes crude oil into a range of fuel and fuel-related products, including gasoline, diesel, jet fuel, asphalt and heavy fuel oils, and resells purchased crude oil to third-party customers. Its oilfield services segment manufactures and markets products and provides oilfield services, including drilling fluids, completion fluids and solids control services to the oil and gas exploration industry.
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