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EXHIBIT 10.2

CALUMET GP, LLC

LONG-TERM INCENTIVE PLAN

     SECTION 1. Purpose of the Plan.

     The Calumet GP, LLC Long-Term Incentive Plan (the “Plan”) has been adopted by Calumet GP, LLC,
a Delaware limited liability company (the “Company”), the general partner of Calumet Specialty
Products Partners, L.P., a Delaware limited partnership (the “Partnership”). The Plan is intended
to promote the interests of the Partnership, the Company and their Affiliates by providing to
Employees, Consultants and Directors incentive compensation awards based on Units to encourage
superior performance. The Plan is also contemplated to enhance the ability of the Company, the
Partnership and their Affiliates to attract and retain the services of individuals who are
essential for the growth and profitability of the Company, the Partnership and their Affiliates and
to encourage them to devote their best efforts to advancing the business of the Company, the
Partnership and their Affiliates.

     SECTION 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used herein, the term “control” means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of a Person, whether
through ownership of voting securities, by contract or otherwise.

     “Award” means an Option, Restricted Unit, Phantom Unit or Substitute Award granted under the
Plan, and shall include any tandem DERs granted with respect to a Phantom Unit or Option.

     “Award Agreement” means the written or electronic agreement by which an Award shall be
evidenced.

     “Board” means the Board of Directors of the Company.

     “Change of Control” means, and shall be deemed to have occurred upon, one or more of the
following events:

               (i) any “person” or “group”, within the meaning of those terms as used in Sections 13(d) and
14(d)(2) of the Exchange Act, other than an Affiliate, becomes the beneficial owner, by way of
merger, consolidation, recapitalization, reorganization or otherwise, of fifty percent (50%) or
more of the voting power of the outstanding equity interests of the Partnership;

               (ii) a Person other than the Company or an Affiliate of the Company becomes the general
partner of the Partnership; or

 

 

               (iii) the sale or other disposition, including by liquidation or dissolution, of all or
substantially all of the assets of the Company or the Partnership in one or more transactions to
any Person other than an Affiliate.

     Notwithstanding the foregoing, with respect to any Award that is subject to Section 409A of
the Internal Revenue Code, “Change of Control” shall have the meaning ascribed to such term in the
regulations or other guidance issued with respect to Section 409A.

     “Committee” means the Board, the Compensation Committee of the Board or such other committee
as may be appointed by the Board to administer the Plan.

     “Consultant” means an individual who renders consulting services to the Company, the
Partnership or an Affiliate.

     “DER” means a distribution equivalent right, being a contingent right, granted in tandem with
a specific Option or Phantom Unit, to receive an amount in cash equal to the cash distributions
made by the Partnership with respect to a Unit during the period such Award is outstanding.

     “Director” means a member of the board of directors of the Company or an Affiliate who is not
an Employee or a Consultant.

     “Employee” means an employee of the Company, the Partnership or an Affiliate.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means the closing sales price of a Unit on the principal national
securities exchange or other market in which trading in Units occurs on the applicable date (or if
there is no trading in the Units on such date, on the next preceding date on which there was
trading) as reported in The Wall Street Journal (or other reporting service approved by the
Committee). If Units are not traded on a national securities exchange or other market at the time
a determination of fair market value is required to be made hereunder, the determination of fair
market value shall be made in good faith by the Committee.

     “Option” means an option to purchase Units granted under the Plan.

     “Participant” means an Employee, Consultant or Director granted an Award under the Plan.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership
of the Partnership, as it may be amended or amended and restated from time to time.

     “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, governmental agency or political
subdivision thereof or other entity.

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     “Phantom Unit” means a phantom (notional) Unit granted under the Plan which upon vesting
entitles the Participant to receive a Unit or an amount of cash equal to the Fair Market Value of a
Unit, as determined by the Committee in its discretion.

     “Restricted Period” means the period established by the Committee with respect to an Award
during which the Award remains subject to forfeiture and is not exercisable by or payable to the
Participant, as the case may be.

     “Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.

     “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act or any successor
rule or regulation thereto as in effect from time to time.

     “SEC” means the Securities and Exchange Commission, or any successor thereto.

     “Substitute Award” means an award granted pursuant to Section 6(c)(viii) of the Plan.

     “UDR” means a distribution made by the Partnership with respect to a Restricted Unit.

     “Unit” means a Common Unit of the Partnership.

     SECTION 3. Administration.

     The Plan shall be administered by the Committee. A majority of the Committee shall constitute
a quorum, and the acts of the members of the Committee who are present at any meeting thereof at
which a quorum is present, or acts unanimously approved by the members of the Committee in writing,
shall be the acts of the Committee. Subject to the following and applicable law, the Committee, in
its sole discretion, may delegate any or all of its powers and duties under the Plan, including the
power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to
such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any
such delegation all references in the Plan to the “Committee”, other than in Section 7, shall be
deemed to include the Chief Executive Officer; provided, however, that such delegation shall not
limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the
foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to
any Award previously granted to, a person who is an officer subject to Rule 16b-3 or a member of
the Board. Subject to the terms of the Plan and applicable law, and in addition to other express
powers and authorizations conferred on the Committee by the Plan, the Committee shall have full
power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to
be granted to a Participant; (iii) determine the number of Units to be covered by Awards; (iv)
determine the terms and conditions of any Award; (v) determine whether, to what extent, and under
what circumstances Awards may be settled, exercised, canceled, or forfeited; (vi) interpret and
administer the Plan and any instrument or agreement relating to an Award made under the Plan; (vii)
establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall
deem appropriate for the proper administration of the Plan; and (viii) make any other determination
and take any other action that the Committee deems necessary or desirable for the administration of
the Plan. The Committee may correct any defect or supply any omission or

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reconcile any inconsistency in the Plan or an Award Agreement in such manner and to such
extent as the Committee deems necessary or appropriate. Unless otherwise expressly provided in the
Plan, all designations, determinations, interpretations, and other decisions under or with respect
to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any
time and shall be final, conclusive, and binding upon all Persons, including the Company, the
Partnership, any Affiliate, any Participant, and any beneficiary of any Award.

     SECTION 4. Units.

     (a) Limits on Units Deliverable. Subject to adjustment as provided in Section 4(c),
the number of Units that may be delivered with respect to Awards under the Plan is 783,960. Units
withheld from an Award to satisfy the exercise price of such Award or the Company’s or an
Affiliate’s minimum tax withholding obligations with respect to the Award shall not be considered
to be Units delivered under the Plan for this purpose. If any Award is forfeited, cancelled,
exercised, or otherwise terminates or expires without the actual delivery of Units pursuant to such
Award, the Units subject to such Award shall again be available for Awards under the Plan. There
shall not be any limitation on the number of Awards that may be granted and paid in cash.

     (b) Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an
Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate,
the Partnership or any other Person, or any combination of the foregoing, as determined by the
Committee in its discretion.

     (c) Adjustments. In the event of any distribution (whether in the form of Units,
other securities or property other than cash), recapitalization, split, reverse split,
reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of
Units or other securities of the Partnership, issuance of warrants or other rights to purchase
Units or other securities of the Partnership, or other similar transaction or event, the Committee
shall, in such manner as it may deem equitable, adjust the number and type of Units (or other
securities or property) with respect to which Awards may be granted.

     SECTION 5. Eligibility.

     Any Employee, Consultant or Director who performs services, directly or indirectly, for the
benefit of the Partnership shall be eligible to be designated a Participant and receive an Award
under the Plan.

     SECTION 6. Awards.

     (a) Options. The Committee shall have the authority to determine the Employees,
Consultants and Directors to whom Options shall be granted, the number of Units to be covered by
each Option, whether DERs are granted with respect to such Option, the purchase price therefor and
the Restricted Period and other conditions and limitations applicable to the exercise of the
Option, including the following terms and conditions and such additional terms and conditions, as
the Committee shall determine, that are not inconsistent with the provisions of the Plan.

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          (i) Exercise Price. The exercise price per Unit purchasable under an Option
shall be determined by the Committee at the time the Option is granted but, except with
respect to a Substitute Award, may not be less than the Fair Market Value of a Unit as of
the date of grant of the Option.

          (ii) Time and Method of Exercise. The Committee shall determine the exercise
terms and the Restricted Period with respect to an Option grant, which may include, without
limitation, the provision for accelerated vesting up on the achievement of specified
performance goals or other events, and the method or methods by which payment of the
exercise price with respect thereto may be made or deemed to have been made, which may
include, without limitation, cash, check acceptable to the Company, a “cashless-broker”
exercise through procedures approved by the Company, withholding Units to be acquired upon
the Option exercise, or any combination of methods, having a Fair Market Value on the
exercise date equal to the relevant exercise price.

          (iii) Forfeitures. Except as otherwise provided in the terms of the Option
grant, upon termination of a Participant’s employment with or consulting services to the
Company and its Affiliates or membership on the Board, whichever is applicable, for any
reason during the applicable Restricted Period, all Options shall be forfeited by the
Participant. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Options.

          (iv) Option DERs. To the extent provided by the Committee, in its discretion,
a grant of Options may include a tandem DER grant, which may provide that such DERs shall be
paid directly to the Participant, be credited to a bookkeeping account (with or without
interest in the discretion of the Committee) subject to the same vesting restrictions as the
tandem Options Award, or be subject to such other provisions or restrictions as determined
by the Committee in its discretion.

     (b) Restricted Units and Phantom Units. The Committee shall have the authority to
determine the Employees, Consultants and Directors to whom Restricted Units or Phantom Units shall
be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant,
the Restricted Period, the conditions under which the Restricted Units or Phantom Units may become
vested or forfeited and such other terms and conditions as the Committee may establish with respect
to such Awards.

          (i) DERs. To the extent provided by the Committee, in its discretion, a grant
of Phantom Units may include a tandem DER grant, which may provide that such DERs shall be
paid directly to the Participant, be credited to a bookkeeping account (with or without
interest in the discretion of the Committee) subject to the same vesting restrictions as the
tandem Phantom Unit Award, or be subject to such other provisions or restrictions as
determined by the Committee in its discretion.

          (ii) UDRs. To the extent provided by the Committee, in its discretion, a grant
of Restricted Units may provide that distributions made by the Partnership with respect to
the Restricted Units shall be subject to the same forfeiture and other restrictions as the
Restricted Unit and, if restricted, such distributions shall be held, without interest,
until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the
same time, as the case may be. Absent such a restriction on the UDRs in the grant
agreement, UDRs shall be paid to the holder of the Restricted Unit without restriction.

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          (iii) Forfeitures. Except as otherwise provided in the terms of the Restricted
Units or Phantom Units grant, upon termination of a Participant’s employment with or
consulting services to the Company and its Affiliates or membership on the Board, whichever
is applicable, for any reason during the applicable Restricted Period, all outstanding
Restricted Units and Phantom Units awarded the Participant shall be automatically forfeited
on such termination. The Committee may, in its discretion, waive in whole or in part such
forfeiture with respect to a Participant’s Restricted Units and/or Phantom Units.

          (iv) Lapse of Restrictions.

          (A) Phantom Units. Upon or as soon as reasonably practical following
the vesting of each Phantom Unit, subject to the provisions of Section 8(b), the
Participant shall be entitled to receive from the Company one Unit or cash equal to
the Fair Market Value of a Unit, as determined by the Committee in its discretion.

          (B) Restricted Units. Upon or as soon as reasonably practical
following the vesting of each Restricted Unit, subject to satisfying the tax
withholding obligations of Section 8(b), the Participant shall be entitled to have
the restrictions removed from his or her Unit certificate so that the Participant
then holds an unrestricted Unit.

     (c) General.

          (i) Awards May Be Granted Separately or Together. Awards may, in the
discretion of the Committee, be granted either alone or in addition to, in tandem with, or
in substitution for any other Award granted under the Plan or any award granted under any
other plan of the Company or any Affiliate. Awards granted in addition to or in tandem with
other Awards or awards granted under any other plan of the Company or any Affiliate may be
granted either at the same time as or at a different time from the grant of such other
Awards or awards.

          (ii) Limits on Transfer of Awards.

          (A) Except as provided in Paragraph (C) below, each Option shall be exercisable
only by the Participant during the Participant’s lifetime, or by the person to whom
the Participant’s rights shall pass by will or the laws of descent and distribution.

          (B) Except as provided in Paragraph (C) below, no Award and no right under any
such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant and any such purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall
be void and unenforceable against the Company, the Partnership or any Affiliate.

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          (C) To the extent specifically provided by the Committee with respect to an
Option, an Option may be transferred by a Participant without consideration to
immediate family members or related family trusts, limited partnerships or similar
entities or on such terms and conditions as the Committee may from time to time
establish.

          (iii) Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee, but such term may not exceed 10 years.

          (iv) Unit Certificates. All certificates for Units or other securities of the
Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations, and other requirements of the SEC, any
stock exchange upon which such Units or other securities are then listed, and any applicable
federal or state laws, and the Committee may cause a legend or legends to be inscribed on
any such certificates to make appropriate reference to such restrictions.

          (v) Consideration for Grants. Awards may be granted for such consideration,
including services, as the Committee determines.

          (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any grant agreement to the
contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred
for any period during which, in the good faith determination of the Committee, the Company
is not reasonably able to obtain Units to deliver pursuant to such Award without violating
applicable law or the applicable rules or regulations of any governmental agency or
authority or securities exchange. No Units or other securities shall be delivered pursuant
to any Award until payment in full of any amount required to be paid pursuant to the Plan or
the applicable Award grant agreement (including, without limitation, any exercise price or
tax withholding) is received by the Company.

          (vii) Change of Control. Unless specifically provided otherwise in the Award
agreement, upon a Change of Control all outstanding Awards shall automatically vest and be
payable at their maximum target level or become exercisable in full, as the case may be. In
this regard, all Restricted Periods shall terminate and all performance criteria, if any,
shall be deemed to have been achieved at the maximum level.

          (viii) Substitute Awards. Awards may be granted under the Plan in substitution
for similar assumed, canceled or forfeited awards held by individuals who become Employees,
Consultants or Directors as a result of a merger, consolidation or acquisition by the
Company or an Affiliate of another entity or the assets of another entity. Such Substitute
Awards that are Options may have exercise prices less than the Fair Market Value of a Unit
on the date of such substitution.

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SECTION 7. Amendment and Termination.

Except to the extent prohibited by applicable law:

     (a) Amendments to the Plan. Except as required by the rules of the principal
securities exchange on which the Units are traded and subject to Section 7(b) below, the
Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any
manner, including increasing the number of Units available for Awards under the Plan,
without the consent of any partner, Participant, other holder or beneficiary of an Award, or
any other Person.

     (b) Amendments to Awards. Subject to Section 7(a), the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted,
provided no change, other than pursuant to Section 7(c), in any Award shall materially
reduce the benefit to a Participant without the consent of such Participant.

     (c) Actions Upon the Occurrence of Certain Events. Upon the occurrence of any
event described in Section 4(c) of the Plan, any Change of Control, any change in applicable
law or regulation affecting the Plan or Awards thereunder, or any change in accounting
principles affecting the financial statements of the Partnership, the Committee, in its sole
discretion and on such terms and conditions as it deems appropriate, may take any one or
more of the following actions in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or an outstanding Award:

               (A) provide for either (i) the termination of any Award in exchange for an
amount of cash, if any, equal to the amount that would have been attained upon the
exercise of such Award or realization of the Participant’s rights (and, for the
avoidance of doubt, if as of the date of the occurrence of such transaction or event
the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award or realization of the Participant’s rights, then such
Award may be terminated by the Company without payment) or (ii) the replacement of
such Award with other rights or property selected by the Committee in its sole
discretion;

               (B) provide that such Award be assumed by the successor or survivor entity, or
a parent or subsidiary thereof, or be exchanged for similar options, rights or
awards covering the equity of the successor or survivor, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of equity interests
and prices;

               (C) make adjustments in the number and type of Units (or other securities or
property) subject to outstanding Awards, and in the number and kind of outstanding
Awards or in the terms and conditions of (including the exercise price), and the
vesting/performance criteria included in, outstanding Awards, or both;

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               (D) provide that such Award shall be exercisable or payable, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

               (E) provide that the Award cannot be exercised or become payable after such
event, i.e., shall terminate upon such event.

     SECTION 8. General Provisions.

     (a) No Rights to Award. No Person shall have any claim to be granted any Award under
the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and
conditions of Awards need not be the same with respect to each recipient.

     (b) Tax Withholding. Unless other arrangements have been made that are acceptable to
the Company, the Company or any Affiliate is authorized to withhold from any Award, from any
payment due or transfer made under any Award or from any compensation or other amount owing to a
Participant the amount (in cash, Units, Units that would otherwise be issued pursuant to such Award
or other property) of any applicable taxes payable in respect of the grant of an Award, its
exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the
Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its
withholding obligations for the payment of such taxes.

     (c) No Right to Employment or Services. The grant of an Award shall not be construed
as giving a Participant the right to be retained in the employ of the Company or any Affiliate,
continue consulting services or to remain on the Board, as applicable. Furthermore, the Company or
an Affiliate may at any time dismiss a Participant from employment or consulting free from any
liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award
agreement or other agreement.

     (d) Governing Law. The validity, construction, and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the State
of Delaware without regard to its conflict of laws principles.

     (e) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award,
or would disqualify the Plan or any Award under any law deemed applicable by the Compensation
Committee, such provision shall be construed or deemed amended to conform to the applicable law, or
if it cannot be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be stricken as to
such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in
full force and effect.

     (f) Other Laws. The Committee may refuse to issue or transfer any Units or other
consideration under an Award if, in its sole discretion, it determines that the issuance or
transfer of such Units or such other consideration might violate any applicable law or regulation,
the rules of the principal securities exchange on which the Units are then traded, or entitle the
Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any
payment tendered to the Company by a Participant, other holder or beneficiary in connection
with the exercise of such Award shall be promptly refunded to the relevant Participant, holder
or beneficiary.

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     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any participating Affiliate and a Participant or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any participating Affiliate
pursuant to an Award, such right shall be no greater than the right of any general unsecured
creditor of the Company or any participating Affiliate.

     (h) No Fractional Units. No fractional Units shall be issued or delivered pursuant to
the Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Units or whether such fractional
Units or any rights thereto shall be canceled, terminated, or otherwise eliminated.

     (i) Headings. Headings are given to the Sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (j) Facility Payment. Any amounts payable hereunder to any person under legal
disability or who, in the judgment of the Committee, is unable to manage properly his financial
affairs, may be paid to the legal representative of such person, or may be applied for the benefit
of such person in any manner that the Committee may select, and the Company shall be relieved of
any further liability for payment of such amounts.

     (k) Participation by Affiliates. In making Awards to Employees employed by an entity
other than the Company, the Committee shall be acting on behalf of the Affiliate, and to the extent
the Partnership has an obligation to reimburse the Company for compensation paid for services
rendered for the benefit of the Partnership, such payments or reimbursement payments may be made by
the Partnership directly to the Affiliate, and, if made to the Company, shall be received by the
Company as agent for the Affiliate.

     (l) Gender and Number. Words in the masculine gender shall include the feminine
gender, the plural shall include the singular and the singular shall include the plural.

     (m) Compliance with Section 409A. Nothing in the Plan or any Award Agreement shall
operate or be construed to cause the Plan or an Award to fail to comply with the requirements of
Section 409A of the Internal Revenue Code. The applicable provisions of Section 409A and the
regulations and guidelines issued thereunder are hereby incorporated by reference and, with respect
to an Award the Committee intended to comply with Section 409A, shall control over any Plan or
Award Agreement provision in conflict therewith.

     SECTION 9. Term of the Plan.

     The Plan shall be effective on the date of its approval by the Board and shall continue until
the earliest of (i) the date terminated by the Board or the Committee, (ii) all Units available
under the Plan have been paid to Participants, or (iii) the 10th anniversary of the date the Plan
is adopted by the Company. Unless otherwise expressly provided in the Plan or in an applicable

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Award Agreement, however, any Award granted prior to such termination, and the authority of
the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such
Award or to waive any conditions or rights under such Award, shall extend beyond such termination
date.

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EXHIBIT 10.3

EMPLOYMENT AGREEMENT

     This Employment Agreement (“Agreement”) made and entered into effective as of January 31, 2006
(the “Effective Date”) by and between Calumet GP, LLC (the “Company”), a Delaware limited liability
company, and F. William Grube (the “Executive”).

     WHEREAS, the Company has been organized to act as the general partner of Calumet Specialty
Products Partners, L.P., a Delaware limited partnership (the “MLP”) that will acquire and continue
the business of Calumet Lubricants Co., Limited Partnership (the “Predecessor”); and

     WHEREAS, the Executive has been the President and Chief Executive Officer of the Predecessor
since 1990; and

     WHEREAS, the Company desires to secure the continued employment of the Executive in accordance
herewith and the Executive is willing to be employed by the Company on the terms and conditions set
forth herein;

     NOW, THEREFORE, in consideration of the mutual premises, covenants and agreements set forth
below, it is hereby agreed as follows:

     1. Employment and Term.

          (a) Employment. The Company agrees to employ the Executive, and the Executive
agrees to be employed by the Company, in accordance with the terms and provisions of this
Agreement during the Employment Period (as defined below).

          (b) Term. Subject to earlier termination as provided in Section 5, the initial
term of the Executive’s employment under this Agreement shall commence as of the Effective
Date and shall continue until the fifth anniversary of the Effective Date (such term as it
may be earlier terminated or extended being referred to hereinafter as the “Employment
Period”). On the third anniversary of the Effective Date, and on every anniversary of the
Effective Date thereafter, the Employment Period shall be deemed to be automatically
extended to include an additional period of twelve months past the previously established
ending date of the Employment Period, unless either party notifies the other of
non-extension at least ninety days prior to any such anniversary date.

     2. Duties and Powers of the Executive.

          (a) Duties. During the Employment Period the Executive shall serve as the
Chief Executive Officer and President of the Company and as a member of the Board of
Directors (the “Board”) with such authority, duties, powers and responsibilities as are
normally attributable to such positions and with such other duties and responsibilities as
may be from time to time reasonably assigned to the Executive by the Board.

          (b) Attention. Except as provided below, during the Employment Period the
Executive shall devote substantially all of his business time and efforts to the business
and affairs of the Company and, notwithstanding any provision to the contrary in the limited

 

 

liability agreement of the Company, use the Executive’s best efforts to carry out such
responsibilities faithfully and efficiently. It shall not be considered a violation of the
foregoing for the Executive to (i) serve on industry, civic or charitable boards or
committees, (ii) manage the Executive’s personal investments, (iii) serve on the board of
Legacy Resources, and with the consent of the Board, serve on the boards of other
businesses, and (iv) from time to time (consistent with the historical work patterns of
Executive with Predecessor) work from remote locations in Indianapolis or elsewhere so long
as such activities or work patterns do not interfere with the performance of the Executive’s
duties in accordance with this Agreement. In no event shall such activities or work
patterns by the Executive be deemed to interfere with the Executive’s duties hereunder until
the Executive has been notified in writing thereof by the Board and given a reasonable
period in which to cure such interference.

     3. Place of Employment. The Executive’s principal place of employment hereunder
shall be at the Company’s principal executive offices in the greater Indianapolis, Indiana area.

     4. Compensation.

          (a) Base Salary. During the Employment Period, the Executive’s annual base
salary (“Annual Base Salary”) shall be $332,800 payable in accordance with the Company’s
general payroll practices; provided, however that for 2007 and for each subsequent calendar
year thereafter during the employment period, the Annual Base Salary shall be increased by
such amount as may be determined by the Board or the Compensation Committee thereof, but in
any event by not less than the amount of increase to which the Executive would be entitled
were the Annual Base Salary to be increased by the same percentage as the average of the
percentage increases of all salaried employees of the Company for such new calendar year.

          (b) Annual and Long-Term Incentive Arrangements. For his services during the
Employment Period, the Executive shall be eligible to earn annual and long-term compensation
under such incentive plans, programs, contracts, or other arrangements (cash, equity,
phantom or other) of the MLP as may from time to time be made available to other executive
officers of the Company, on a basis that is reasonably calculated to result in the
Executive’s having the reasonable opportunity to achieve a payout or distribution of at
least 150 percent of the amount of the cash, equity or other payout or distribution that may
be made to any other executive officer of the Company under the terms of any such incentive
arrangements.

          (c) Retirement and Welfare Benefit Plans. During the Employment Period, the
Executive shall be eligible to participate in all savings, retirement and welfare benefit
plans, practices, policies and programs applicable generally to employees and/or senior
executives of the Company, subject to meeting the general eligibility requirements of such
plans or programs.

          (d) Expenses. The Company shall promptly reimburse the Executive for all
reasonable business expenses, including those for travel and entertainment, properly
incurred
by the Executive in the performance of his duties hereunder in accordance with
policies established from time to time by the Company.

-2-

 

          (e) Fringe Benefits and Perquisites. During the Employment Period, the
Executive shall be entitled to receive fringe benefits and perquisites in accordance with
the plans, practices, programs and policies of the Company from time to time in effect, and
which are commensurate with the Executive’s position.

          (f) Automobile. During the Employment Period, the Company shall provide the
Executive with the use of an automobile, for personal and business use (including vehicle
property damage and liability insurance in appropriate amounts) of generally the same
quality and on the same terms and conditions as the Predecessor provided the Executive with
the use of an automobile.

     5. Termination of Employment.

          (a) Death or Disability. The Executive’s employment shall terminate upon the
Executive’s death or, at the election of the Board or the Executive, by reason of his
Disability (as defined below) during the Employment Period. For purposes of this Agreement,
Disability shall mean Executive’s substantial inability to perform his duties under this
Agreement by reason of mental or physical incapacity for 90 consecutive calendar days during
the Employment Period; provided, that the Company shall not have the right to terminate
Executive’s employment for Disability if (i) in the opinion of a qualified physician
reasonably acceptable to the Company that is delivered to the Company within 30 days of the
Company’s delivery to the Executive of a Notice of Termination (as defined below), it is
reasonably likely that the Executive will be able to resume the Executive’s duties on a
regular basis within 90 days of the Notice of Termination and (ii) the Executive does resume
such duties within such time.

          (b) By the Company for Cause. The Company may terminate the Executive’s
employment during the Employment Period for Cause (as defined below). For purposes of this
Agreement, “Cause” shall mean:

               (1) the Executive’s willful and continuing failure (excluding as a result of
Executive’s mental or physical incapacity) to perform, the Executive’s duties and
responsibilities with the Company;

               (2) the Executive’s having committed any act of material dishonesty against the
Company or any of its affiliates (including theft, misappropriation, embezzlement,
forgery, fraud, or willful and intentional falsification of records or
misrepresentation);

               (3) the Executive’s willful and continuing material breach of this Agreement;

               (4) the Executive’s having been convicted of, or having entered a plea of nolo
contendre to any felony; or

-3-

 

          (5) the Executive’s having been the subject of any final and non-appealable
order, judicial or administrative, obtained or issued by the Securities and Exchange
Commission, for any securities violation involving fraud, including, for example,
any such order consented to by the Executive in which findings of facts or any legal
conclusions establishing liability are neither admitted nor denied.

For purposes of this Section 5(b), no act or failure to act by Executive shall be considered
“willful” unless committed or omitted in bad faith and without a reasonable belief that the
act or failure to act was in the best interests of the Company. In addition, no act or
failure to act that otherwise may be deemed to constitute Cause under clauses (1) or (3)
above shall be deemed to constitute Cause if such act or failure to act is corrected prior
to the Date of Termination (as defined below) specified in the Notice of Termination (as
defined below) given in respect thereof.

     (c) By the Company without Cause or by the Executive without Good Reason.
Notwithstanding any other provision of this Agreement, the Company, by action of the Board,
may (subject to the provisions of Section 6(a)) terminate the Executive’s employment other
than for Cause during the Employment Period and the Executive may similarly terminate his
employment for other than Good Reason during the Employment Period.

     (d) By the Executive for Good Reason. The Executive may terminate his
employment during the Employment Period for Good Reason (as defined below). For purposes of
this Agreement, “Good Reason” shall mean the occurrence, without the written consent of the
Executive, of any one of the following acts by the Company, or failures by the Company to
act, unless such act or failure to act is corrected prior to the Date of Termination (as
defined below) specified in the Notice of Termination (as defined below) given in respect
thereof:

          (1) any material breach by the Company of this Agreement;

          (2) any requirement by the Company that the Executive relocate outside of the
metropolitan Indianapolis area;

          (3) failure of any successor to assume this Agreement not later than the date
as of which it acquires substantially all of the equity, assets or business of the
Company;

          (4) any material reduction in the Executive’s title, authority,
responsibilities, or duties (including a change that causes the Executive to cease
being a member of the Board or reporting directly and solely to the Board); or

          (5) the assignment to the Executive of any duties materially inconsistent with
his duties as the Chief Executive Officer of the Company.

     Unless the Executive gives written notice to the Board of any act or omission to act
constituting Good Reason hereunder within 12 months of the date the Executive becomes
aware
of such act or omission, such act or failure to act shall not constitute a Good Reason event
for purposes of this Agreement.

-4-

 

          (e) Waiver and Release. Notwithstanding anything in this Agreement to the
contrary, the Executive shall not be entitled to any severance payments or vesting of
benefits under Section 6(a) of this Agreement unless the Executive signs and does not revoke
a waiver and release agreement substantially similar to that in Attachment A hereto.

          (f) Notice of Termination. During the Employment Period, any purported
termination of the Executive’s employment (other than by reason of death) shall be
communicated by written Notice of Termination from one party hereto to the other party
hereto (or, if by mutual agreement by a joint written agreement) in accordance with Section
15(b). For purposes of this Agreement, a “Notice of Termination” shall mean a notice that
shall indicate the specific termination provision in this Agreement relied upon, if any, and
shall set forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated.

          (g) Date of Termination. “Date of Termination”, with respect to any purported
termination of the Executive’s employment during the Employment Period, shall mean the date
specified in the Notice of Termination (which, in the case of a termination by the Company
for reasons other than Cause or for Cause under clauses (1) and (3) of Section 5(b), or a
termination by the Executive shall not be less than 30 days from the date such Notice of
Termination is given).

6. Obligations of the Company Upon Termination.

     (a) Termination by the Company Other than for Cause, Death or Disability or
Termination by the Executive for Good Reason. During the Employment Period, if the
Company shall terminate the Executive’s employment other than for Cause, death or Disability
or the Executive shall terminate his employment for Good Reason, then, subject to Sections
5(e) and 6(d) as soon as practicable following the date the Executive’s waiver and release
under Section 5(e) becomes nonrevocable, the Company shall pay to the Executive the amounts
described in this Section 6 and the Executive shall become vested in all MLP incentive
awards granted to the Executive by the Company as provided below.

               (i) Lump Sum Payment. The Company shall pay to the Executive a lump
sum amount in cash equal to three times the Executive’s Annual Base Salary then in
effect.

               (ii) Accrued Obligations. The Company shall pay the Executive a lump
sum amount in cash equal to the sum of (A) the Executive’s earned Annual Base Salary
through the Date of Termination to the extent not theretofore paid, (B) an amount
equal to any MLP incentive awards payable in cash with respect to fiscal years ended
prior to the year that includes the Date of Termination to the extent not
theretofore paid, and (C) an amount in respect of the Executive’s participation
in any MLP plans, programs, contracts, or other arrangements that may result in a
cash

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payment to the Executive in respect of his services to the Company for the
fiscal year that includes the Date of Termination equal to 100% of the maximum
amount that could be earned by the Executive under such arrangement multiplied by a
fraction, the numerator of which shall be the number of days from the beginning of
such fiscal year to and including the Date of Termination and the denominator of
which shall be 365. (The amounts specified in clauses (A), (B) and (C) shall be
hereinafter referred to as the “Accrued Obligations”).

               (iii) Accelerated Vesting and Payment of MLP Equity-Based Awards. All
MLP equity-based awards (including phantom awards) held by the Executive shall
immediately vest in full (at their target levels, if applicable) and become fully
exercisable or payable, as the case may be, as of the Date of Termination.

          (b) Termination by the Company for Cause or by the Executive Other than for Good
Reason. If the Executive’s employment shall be terminated for Cause during the
Employment Period, or if the Executive terminates his employment during the Employment
Period other than for Good Reason, the Company shall have no further obligations to the
Executive under this Agreement other than the Accrued Obligations.

          (c) Termination due to Death or Disability. If the Executive’s employment
shall terminate by reason of death or Disability, the Company shall pay the Executive or his
estate, as the case may be, the Accrued Obligations. Such payments shall be in addition to
those rights and benefits to which the Executive or his estate may be entitled under the
relevant Company benefit plans or programs. In addition, all MLP equity-based awards held
by the Executive shall immediately vest and become fully exercisable or payable, as the case
may be, as of the Date of Termination.

          (d) Section 409A. If any payment under this Agreement would result in the
Executive being subject to the additional 20% tax provided by Section 409A of the Internal
Revenue Code, such payment shall be deferred until the first date it would not be subject to
Section 409A.

          (e) Delayed Payments. Any delay by the Company in paying any amount due the
Executive under this Agreement, including paragraph (d), shall bear interest at the maximum
nonusurious rate from the date such payment was due (disregarding Section 409A) until paid.

          (f) Parachute Provisions. If any amount payable to or other benefit receivable
by the Executive pursuant to this Agreement is deemed to constitute a Parachute Payment (as
defined below), alone or when added to any other amount payable or paid to or other benefit
receivable or received by the Executive which is deemed to constitute a Parachute Payment
(whether or not under an existing plan, arrangement or other agreement), and would result in
the imposition on the Executive of an excise tax under Section 4999 of the Internal Revenue
Code of 1986, as amended, then, in addition to any other benefits to which the Executive is
entitled under this Agreement, the Executive shall be paid by the Company an amount in cash
equal to the sum of the excise taxes payable by the Executive by reason of receiving
Parachute Payments plus the amount necessary to put the Executive in the same after-tax

-6-

 

position (taking into account any and all applicable federal, state and local excise, income
or other taxes at the highest applicable rates on such Parachute Payments and on any
payments under this Section 6(f)) as if no excise taxes had been imposed with respect to
Parachute Payments. The amount of any payment under this Section 6(f) shall be computed by
a certified public accounting firm mutually and reasonably acceptable to the Executive and
the Company, the computation expenses of which shall be paid by the Company. “Parachute
Payment” shall mean any payment deemed to constitute a “parachute payment” as defined in
Section 280G of the Internal Revenue Code of 1986, as amended.

          7. Nonexclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any benefit, plan, program, policy or practice
provided by the Company and for which the Executive may qualify, nor shall anything herein limit or
otherwise adversely affect such rights as the Executive may have under any other contract or
agreement entered into after the Effective Date with the Company. Amounts which are vested
benefits or which the Executive is otherwise entitled to receive under any benefit, plan, policy,
practice or program of, or any contract or agreement entered into with the Company shall be payable
in accordance with such benefit, plan, policy, practice or program or contract or agreement except
as explicitly modified by this Agreement.

          8. Full Settlement; No Mitigation. The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other clam, right or action which the
Company may have against the Executive or others, provided that nothing herein shall preclude the
Company from separately pursuing recovery from the Executive based on any such claim. In no event
shall the Executive be obligated to seek other employment or take any other action by way of
mitigation of the amounts (including amounts for damages for breach) payable to the Executive under
any of the provisions of this Agreement and such amounts shall not be reduced whether or not the
Executive obtains other employment.

          9. Arbitration. Any dispute about the validity, interpretation, effect or alleged
violation of this Agreement (an “arbitrable dispute”) must be submitted to confidential arbitration
in Indianapolis, Indiana. Arbitration shall take place before an experienced employment arbitrator
licensed to practice law in such state and selected in accordance with the rules of the Model
Employment Arbitration Procedures of the American Arbitration Association. Arbitration shall be
the exclusive remedy of any arbitrable dispute. Should any party to this Agreement pursue any
arbitrable dispute by any method other than arbitration, the other party shall be entitled to
recover from the party initiating the use of such method all damages, costs, expenses and
attorneys’ fees incurred as a result of the use of such method. Notwithstanding anything herein to
the contrary, nothing in this Agreement shall purport to waive or in any way limit the right of any
party to seek to enforce any judgment or decision on an arbitrable dispute in a court of competent
jurisdiction. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts in Indianapolis, Indiana, for the purposes of any proceeding arising out of this
Agreement.

          10. Confidentiality. The Company agrees to provide the Executive, in the course of
his employment with the Company, with non-public privileged or confidential information and trade
secrets concerning the operations, future plans and methods of doing business of the Company, its

-7-

 

subsidiaries and affiliates (“Proprietary Information”); and the Executive agrees that it would be
extremely damaging to the Company, its subsidiaries and affiliates if such Proprietary Information
were disclosed to a competitor of the Company, its subsidiaries and affiliates or to any other
person or corporation. In consideration for the Company providing such Proprietary Information to
the Executive, the Executive agrees that all Proprietary Information divulged to the Executive is
in confidence and further agrees to keep all Proprietary Information secret and confidential
(except for such information which is or becomes publicly available other than as a result of a
breach by the Executive of this provision) without limitation in time. In view of the nature of
the Executive’s employment and the Proprietary Information the Executive has acquired during the
course of such employment, the Executive likewise agrees that the Company, its subsidiaries and
affiliates would be irreparably harmed by any disclosure of Proprietary Information in violation of
the terms of this paragraph and that the Company, its subsidiaries and affiliates shall therefore
be entitled to preliminary and/or permanent injunctive relief prohibiting the Executive from
engaging in any activity or threatened activity in violation of the terms of this Section and to
any other relief available to them. Inquiries regarding whether specific information constitutes
Proprietary Information shall be directed to the Board, provided that the Company shall not
unreasonably classify information as Proprietary Information.

          11. Non-Solicitation of Employees. The Executive recognizes that he will be provided
confidential information about other employees of the Company, its subsidiaries and affiliates
relating to their education, experience, skills, abilities, compensation and benefits, and
inter-personal relationships with customers of the Company, its subsidiaries and affiliates and
recognizes that such information is not generally known, is of substantial value to the Company,
its subsidiaries and affiliates in developing their business and in securing and retaining
customers, and has been and will be acquired by him because of his business position with the
Company, its subsidiaries and affiliates. Accordingly, in consideration of the Proprietary
Information and other benefits provided to the Executive under this Agreement, the Executive agrees
that, during the Employment Period and for the Restricted Period (as defined in Section 12), he
will not, directly or indirectly, solicit or recruit any employee of the Company, its subsidiaries
or affiliates on whose behalf he is acting as an agent, representative or employee and that he will
not convey any such confidential information or trade secrets about other employees of the Company,
its subsidiaries and affiliates to any other person; provided, however, that it shall not
constitute a solicitation or recruitment of employment in violation of this Section to discuss
employment opportunities with any employee of the Company, its subsidiaries or affiliates who has
either first contacted the Executive or regarding whose employment the Executive has discussed with
and received the written approval of the Chairman of the Board prior to making such solicitation or
recruitment In view of the nature of the Executive’s employment with the Company, the Executive
likewise agrees that the Company, its subsidiaries and affiliates would be irreparably harmed by
any solicitation or recruitment in violation of the terms of this paragraph and that the Company,
its subsidiaries and affiliates shall therefore be entitled to preliminary and/or permanent
injunctive relief prohibiting the Executive from engaging in any activity or threatened activity in
violation of the terms of this Section and to any other relief available to them.

-8-

 

12. Noncompetition.

          (a) In consideration for the Company’s providing the Executive with Confidential
Information during the Employment Period and the other benefits provided by this Agreement,
the Executive agrees that while employed by the Company and for the Restricted Period (as
defined below), the Executive shall not, unless the Executive receives the prior written
consent of the Board, own an interest in, manage, operate, join, control, lend money or
render financial or other assistance to or participate in or be connected with, as an
officer, employee, partner, stockholder, consultant or otherwise, any person that competes
with the Company or the MLP and its affiliates in Restricted Business (as such term is
defined in the Omnibus Agreement, dated the date hereof, among the Company, the MLP, the
Heritage Group and the other parties named therein); provided, however, that following any
termination of employment the foregoing restriction shall apply only to those areas where
the Company and the MLP and its affiliates are actually doing business on the date of such
termination of employment. The Restricted Period shall be the one-year period following the
termination of the Executive’s employment.

          (b) The Executive has carefully read and considered the provisions of this Section 12
and, having done so, agrees that the restrictions set forth in this Section 12 (including
the Restricted Period, scope of activity to be restrained and the geographical scope) are
fair and reasonable and are reasonably required for the protection of the interests of the
Company, its officers, directors, employees, creditors and shareholders. The Executive
understands that the restrictions contained in this Section 12 may limit his ability to
engage in a business similar to the Company’s or the MLP’s business, but acknowledges that
he will receive sufficiently high remuneration and other benefits from the Company hereunder
to justify such restrictions.

          (c) It is specifically agreed that the Restricted Period following termination of
employment, during which the agreements and covenants of the Executive made in Sections 11
and 12 shall be effective, shall be computed by excluding from such computation any time
which the Executive is in violation of the provisions of such Sections.

          (d) In the event that any provision of this Section 12 relating to the Restricted
Period and/or the areas of restriction shall be declared by a court of competent
jurisdiction to exceed the maximum time period or areas such court deems reasonable and
enforceable, the Restricted Period and/or areas of restriction deemed reasonable and
enforceable by the court shall become and thereafter be the maximum time period and/or
areas.

          13. Legal Fees. The Company shall promptly pay all legal fees and expenses
(including, without limitation, fees and expenses in connection with any arbitration) incurred by
the Executive in disputing in good faith any issue arising under this Agreement relating to the
termination of the Executive’s employment or in seeking in good faith to obtain or enforce any
benefit or right provided by this Agreement.

-9-

 

14. Successors.

          (a) Assignment by the Executive. This Agreement is personal to the Executive
and without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive’s legal representatives.

          (b) Successors and Assigns of Company. This Agreement shall inure to the
benefit of and be binding upon the Company, its successors and assigns.

          (c) Assumption. The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree in writing prior to
such succession 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. A copy of
such agreement shall be furnished to the Executive. As used in this Agreement, “Company”
shall mean the Company as hereinbefore defined and any successor to its businesses and/or
assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or
otherwise. Any failure of the Company to timely obtain such agreement in form and substance
reasonably satisfactory to the Executive shall be a material breach of this Agreement.

15. Miscellaneous.

          (a) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana, without reference to its principles of
conflict of laws. The captions of this Agreement are not part of the provisions hereof and
shall have no force or effect. This Agreement may not be amended, modified, repealed,
waived, extended or discharged, except by an agreement in writing signed by the party
against whom enforcement of such amendment, modification, repeal, waiver, extension or
discharge is sought. No person, other than pursuant to a resolution of the Board or a
committee thereof, shall have authority on behalf of the Company to agree to amend, modify,
repeal, waive, extend or discharge any provision of this Agreement or anything in reference
thereto.

          (b) Notices. All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered or certified
mail, return receipt requested, postage prepaid, addressed, in either case, to the Company’s
headquarters or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notices and communications shall be effective when actually
received by the addressee.

          (c) 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.

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          (d) Taxes. The Company may withhold from any amounts payable or benefits
provided under this Agreement such federal, state or local taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

          (e) No Waiver. The Executive’s or the Company’s failure to insist upon strict
compliance with any provision hereof or any other provision of this Agreement or the failure
to assert any right that the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason pursuant to
Section 5 of this Agreement, shall not be deemed to constitute a waiver thereof.

          (f) Entire Agreement; Effect on MLP Equity Awards. This instrument contains
the entire agreement of the Executive and the Company with respect to the subject matter
hereof except for the agreements evidenced by the indemnification provisions
included in the Company’s limited liability company agreement (as being amended and restated
concurrently with the initial public offering of the MLP) and the indemnification provisions
and the registration rights provisions included in the agreement of limited partnership of
the MLP (as being amended and restated concurrently with its initial public offering), all
of which provisions are intended to benefit the Executive and which the Company agrees may
be enforced by him, regardless of whether he is a party thereto (the “Related Agreements”),
and all promises, representations, understandings, arrangements, prior and contemporaneous
agreements (written or oral) between the parties with respect to the subject matter hereof
(other than the Related Agreements), are terminated hereby. The provisions of this
Agreement concerning the accelerated vesting of MLP equity-based awards shall be
incorporated by reference into any such grants made after the Effective Date; the intent of
the parties being that, in the event of any language in any plan or award agreement in
conflict herewith or to the contrary, the terms of this Agreement shall control as to the
vesting of MLP equity-based awards granted to the Executive.

IN WITNESS WHEREOF, the Executive and the Company have caused this Agreement to be executed
effective for all purposes as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	CALUMET GP, LLC
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Fred M. Fehsenfeld, Jr.	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Fred M. Fehsenfeld, Jr.	 	 
	 

	 	 	 	Chairman of the Board of Directors	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ F. William Grube	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	F. William Grube

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Attachment A

WAIVER AND RELEASE AGREEMENT

     This Waiver and Release Agreement (the “Agreement”) is between Calumet GP, LLC, a Delaware
limited liability company (“Company”), and F. William Grube (“Executive”), as provided pursuant to
that employment agreement between Executive and Company dated January 31, 2006 (the “Employment
Agreement”) and attached hereto as Attachment A.

     WHEREAS, Executive’s employment with Company is being terminated; and

     WHEREAS, Executive will be paid certain severance benefits in exchange for his release and
waiver of his claims against the Company Releasees (as defined below) pursuant to this Agreement;

     NOW, THEREFORE, the parties agree to the following.

     1. Complete Release and Other Consideration from Executive. In exchange for the
severance benefits provided under Section 2 of this Agreement, Executive agrees as follows:

	 	a.	 	Complete Release. On behalf of Executive and
Executive’s heirs and assigns, Executive fully releases Company and its direct
and indirect, past present and future, parents, subsidiaries, affiliates
(including, without limitation, Calumet Specialty Products Partners, L.P.),
divisions, predecessors, successors, and assigns, and, with respect to all such
entities, their partners, members, shareholders, owners, officers, directors,
attorneys, agents, representatives and employees (collectively, the “Company
Releasees”), from any and all claims, demands, damages, losses, expenses,
liabilities and causes of action (including claims for attorneys’ fees) of any
kind and character (collectively, “Claims”), known or unknown, that Executive,
his heirs, executors, administrators, and assigns may have or may claim to have
against any of the Company Releasees based upon facts occurring on or prior to
the date Executive signs this Agreement, including but not limited to any
claims arising out of or in any way connected with or based upon Executive’s
employment relationship with and service as an employee, officer or director of
Company or any Company Releasee, and the termination of such relationship or
service (the “Release”). This Release includes, without limitation, any claims
arising out of any contract (express or implied); any tort (whether based on
negligence, gross negligence, or intentional conduct); or any federal, state,
or local law, including, without limitation, the Age Discrimination in
Employment Act and the Employee Retirement Income Security Act (“ERISA”), other
than benefits that Executive is entitled to under the terms of an ERISA plan.
This Release does not include (i) any claims under the Age Discrimination in
Employment Act that may arise after the date this Agreement is executed by
Executive, (ii) any claims that the Executive may have against the Company in
respect of the 

A-1

 

	 	 	 	Company’s Continuing
Obligations (as defined in Section 4) to the Executive (regardless of when
such claims may arise) under the agreements referenced in Section 4, or
(iii) any claims that the Executive may have to receive distributions or
otherwise exercise the rights of a holder of securities issued by the
Company or of Calumet Specialty Products Partners, L.P. or of any other
Company Releasee (except that Executive covenants with Company and the
Company Releasees not to bring any claim against any of them in respect of
Executive’s securities that are based on any alleged violation of federal or
state securities law or breach of fiduciary duty arising before the date
that the Executive signs this Agreement. Executive understands that this is
a full and final release, with limitation, all known, unknown and suspected
Claims (other than described in the preceding sentence) he may have against
any of the Company Releasees.

	 	b.	 	Confidentiality. Except as may be required by law or court order or as may be necessary in an action arising out of this Agreement,
Executive agrees not to disclose the existence or terms of this Agreement to anyone other than Executive’s immediate family, attorneys,
tax advisors, and financial counselors, provided that Executive first informs them of this confidentiality clause and secures their agreement to
be bound by it. Executive understands and agrees that a breach of this confidentiality provision by any of these authorized persons will be
deemed a material breach of this Agreement by Executive.
	 
	 	c.	 	Lawsuits. Executive agrees not to bring or join any lawsuit against any of the Company Releasees in any court
(except as necessary to protect Executive’s rights under this Agreement or with respect to Executive’s entry into this Agreement) relating to
Executive’s employment, events occurring during Executive’s employment or the termination of Executive’s employment. Executive represents
that, as of the effective date of this Agreement, Executive has not brought or joined any lawsuit or filed any charge or claim against any of the
Company Releasees in any court or before any government agency. If Executive brings or joins any lawsuit against any of the Company
Releasees in any court (except as necessary to protect Executive’s rights under this Agreement or with respect to Executive’s entry into this
Agreement) relating to Executive’s employment, events occurring during Executive’s employment or the termination of Executive’s employment,
and Executive is the prevailing party in such lawsuit, Executive shall be obligated to return to the Company all amounts paid to Executive as
benefits under this Agreement, to the extent permitted under applicable law and ordered by the court. Further, if any Company Releasee is
the prevailing party in any lawsuit Executive brings against such Company Releasee relating to Executive’s employment that has been waived
in this Agreement, to the extent permitted by applicable law (such as if Executive’s claims are found to be brought in bad faith), Executive
agrees to pay all costs and expenses incurred by such person or entity, including reasonable attorneys’ fees, in
defending against such lawsuit.

A-2

 

This Agreement is not intended to indicate that any Claims exist or that, if they do
exist, they are meritorious. Rather, Executive is simply agreeing that, in return
for the Company’s payment and vesting of benefits provided by this Agreement, any
and all potential Claims that Executive may have against the Company Releasees,
regardless of whether they actually exist, are expressly settled, compromised and
waived. By signing this Agreement, Executive and the Company Releasees are bound by
it. Anyone who succeeds to Executive’s rights and responsibilities, such as heirs
or the executor of Executive’s estate, is also bound by this Agreement. The waiver
and release provisions of this Agreement do not apply to any rights or claims that
may arise after its effective date. This Release also applies to any claims brought
by any person or agency or class action under which Executive may have a right or
benefit.

     2. Consideration from Company. In exchange for Executive’s obligations under this
Agreement, the Company shall pay Executive those severance payments and benefits described in
Section 6(a) of the Employment Agreement, which are incorporated herein by reference and
made a part of this Agreement. Executive acknowledges that Executive is not otherwise entitled to
receive such severance payments and benefits, these severance payments and benefits are conditioned
on Executive’s compliance with the terms of this Agreement and the Employment Agreement. Executive
acknowledges and agrees that Company will withhold any taxes required by applicable law from the
severance payments and benefits.

     3. Right to Consult an Attorney; Period of Review. Executive is encouraged to consult
with an attorney before signing this Agreement. From the date this Agreement is first presented to
Executive, Executive will have 21 [45, if applicable] days in which to review this Agreement.
Executive may use as little or much of this 21 [45]-day review period as Executive chooses.

     4. Entire Agreement; Amendment; Continuing Obligations. This Agreement and the
Employment Agreement together contain the entire agreement of the parties with respect to the
termination of Executive’s employment and the other matters covered herein and therein; moreover,
this Agreement supersedes all prior and contemporaneous agreements and understandings, oral or
written, between the parties hereto concerning the subject matter hereof. This Agreement may be
amended, waived or terminated only by a written instrument executed by both parties hereto.
Executive hereby reaffirms and agrees to continue to abide by all of Executive’s continuing
obligations under Sections 9 through 12 of the Employment Agreement, and the Company hereby
reaffirms and agrees to continue to abide by all of the Company’s continuing obligations to the
Executive under the indemnification provisions of the Company’s limited liability company agreement
(as amended through the date hereof), of which the Executive is an intended beneficiary who is
entitled to enforce the same, and to cause Calumet Specialty Products Partners, L.P. (“Calumet”) to
continue to abide by the continuing obligations of Calumet to the Executive under the
indemnification provisions and the registration rights provisions of the agreement of limited
partnership of Calumet (as amended through the date hereof), of which the Executive is an intended

beneficiary who is entitled to enforce the same (such obligations of the Company and of Calumet
being referred to herein as the “Continuing Obligations”).

A- 3

 

     5. Revocation. Upon signing this Agreement, Executive will have 7 days to revoke the
Agreement. To properly revoke the Agreement, Company must receive written notice of revocation
from Executive by the close of business on the 7th day after the date the Agreement is signed by
Executive. Written notice must be delivered pursuant to Section 15 of the Employment
Agreement. Executive understands that failure to revoke his acceptance of this Agreement within 7
days after the date he signs it will result in this Agreement being permanent and irrevocable.

     6. Choice of Law. This Agreement will be governed in all respects by the laws of the
State of Indiana, without regard to its choice of law principles. This Agreement is subject to the
arbitration provisions in Section 9 of the Employment Agreement.

     7. Effectiveness of Agreement. This Agreement will be effective, and the severance
payments and benefits provided in Section 6(a) of this Agreement will be made and provided,
only if Executive executes this Agreement within 21 [45] days of receiving it and only if Executive
does not revoke this Agreement under Section 5 above.

	 	 	 
	 

	 	EXECUTIVE
	 
	 	 
	 

	 	Signature:                                                                                                     
	 
	 	 
	 

	 	Date:

	 	 	 
	 

	 	CALUMET GP, LLC
	 
	 	 
	 

	 	By:                                                                                      
	 

	 	     Name:                                                                                
	 

	 	     Title:                                                                                 
	 
	 	 
	 

	 	Date:

A- 4

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