Document:

exv10w5

Exhibit 10.5

CHANGE IN CONTROL AGREEMENT

A.M. CASTLE & CO.

     THIS AGREEMENT (“Agreement”), made and entered into this                      day of
                                        , 2008 (the “Effective Date”), by and between A.M. Castle & Co., a
Maryland corporation (the “Company”), and                                          (the “Executive”);

WITNESSETH THAT:

     WHEREAS, the Company wishes to assure itself of the continuity of the Executive’s service and
has determined that it is appropriate that the Executive receive certain payments in the event that
the Executive’s employment is involuntarily terminated following a change in control as more fully
described below; and

     WHEREAS, the Company and the Executive accordingly desire to enter into this Agreement on the
terms and conditions set forth below;

     NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, IT IS
HEREBY AGREED, by and between the parties as follows:

     1. Relationship to Other Agreements. Unless and until a Change of Control (as defined
in paragraph 3) occurs, no benefits or other payments shall be payable under this Agreement. If a
Change of Control occurs during the Term of this Agreement (as defined in paragraph 2), this
Agreement shall supersede that certain Severance Agreement between the Company and the Executive,
dated                                          (the “Severance Agreement), and any and all other agreements between
the Executive and the Company regarding the payment of benefits upon a termination of the
Executive’s employment with the Company. If the Executive is entitled to severance pay or other
benefits pursuant to the terms of this Agreement, the Executive shall not be eligible to receive
any severance pay or other benefits pursuant to the terms of any other severance agreement or
arrangement of the Company (or any affiliate of the Company), including any arrangement of the
Company (or any affiliate of the Company) providing benefits upon involuntary termination of
employment.

     2. Agreement Term. The “Term” of this Agreement shall begin on the Effective Date and
shall continue through the first one-year anniversary of the Effective Date; provided, however,
that as of the first one-year anniversary of the Effective Date, and on each one-year anniversary
thereafter, the Term shall automatically be extended for one additional year unless, not later than
30 days prior to such applicable anniversary date, either party shall have given written notice to
the other party that it does not wish to extend the Term; and provided, further, that if a Change
in Control shall have occurred within 90 days of such termination dates, the Term of this Agreement
shall automatically be deemed extended and shall continue for a period of twenty-four calendar
months beyond the calendar month in which such Change in Control occurs.

 

 

     3. Certain Definitions. In addition to terms otherwise defined herein, the following
capitalized terms used in this Agreement shall have the meanings specified below:

	 	(a)	 	Cause. The term “Cause” shall mean:

	 	(i)	 	Executive’s willful theft or embezzlement, or willful
attempted theft or embezzlement, of intangible assets or property of the
Company;
	 
	 	(ii)	 	Any willful act knowingly committed by Executive that
subjects the Company or any officer of the Company to any criminal liability
for such act;
	 
	 	(iii)	 	The Executive’s engaging in egregious misconduct involving
serious moral turpitude to the extent that, in the reasonable judgment of the
Company, the Executive’s credibility and reputation no longer conform to the
standard of the Company’s executives;
	 
	 	(iv)	 	Gross and willful misconduct by Executive that results in a
material injury to the Company;
	 
	 	(v)	 	Willful dishonesty of Executive that results in a material
injury to the Company;
	 
	 	(vi)	 	Willful malfeasance by Executive, provided that such
malfeasance, in fact, has an injurious effect on the Company;
	 
	 	(vii)	 	Executive’s willful insubordination or willful refusal to
perform assigned duties provided that such assigned duties are consistent with
the job duties of the Executive and that the Executive shall have an
opportunity of 30 days after notice from the Company to cure any such act or
failure to act;
	 
	 	(viii)	 	Executive’s material breach of this Agreement which continues for 30 days
after notice from the Company.

	 	(b)	 	Change in Control. The term “Change in Control” shall mean any of
the following that occur after the Effective Date:

	 	(i)	 	Ownership, whether direct or indirect, of shares in excess of
twenty-five percent (25%) of the outstanding shares of common stock of the
Company by a Person (as that term is used in Section 13(d)(3) or 14(d)(2) of
the Exchange Act) other than Simpson Estates;

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	 	(ii)	 	The occurrence of any transaction relating to the Company
required to be described pursuant to the requirements of Item 5(f) of Schedule
14(a) of Regulation 14(a) of the Securities Act of 1934 as promulgated by the
Security and Exchange Commission; or
	 
	 	(iii)	 	Any change in the composition of the Board of Directors of
the Company (the “Board”) over a two-year period which results in a majority
of the then present directors of the Company not constituting a majority two
years later, provided that in making such determination, directors who are
elected by or upon the recommendation of the then current majority of the
Board shall be excluded.

	 	(c)	 	Code. The term “Code” means the Internal Revenue Code of 1986, as
amended.
	 
	 	(d)	 	Good Reason. The term “Good Reason” shall mean:

	 	(i)	 	a material diminution in the Executive’s base compensation;
	 
	 	(ii)	 	a material diminution in the Executive’s authority, duties,
or responsibilities;
	 
	 	(iii)	 	a material diminution in the authority, duties, or
responsibilities of the person to whom the Executive is required to report;
	 
	 	(iv)	 	a material diminution in the budget over which the Executive
retains authority;
	 
	 	(v)	 	a material change in the geographic location at which the
Executive must perform services for the Company; or
	 
	 	(vi)	 	any other action or inaction that constitutes a material
breach by the Company of this Agreement.

For purposes of this Agreement, in order for a termination of employment by the
Executive to be considered to be on account of Good Reason, the following
conditions must be met by the Executive:

	 	(i)	 	the Executive provides written notice to the Company of the
existence of the condition(s) described in this subparagraph (d) potentially
constituting Good Reason within 90 days of the initial existence of such
conditions, and
	 
	 	(ii)	 	the Company fails to remedy the conditions within 30 days of
such notice, and

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	 	(iii)	 	the Executive actually terminates employment with the
Company within six months of providing the notice described in this
subparagraph (d).

	 	(e)	 	Termination Date.

The term “Termination Date” means the date on which the Executive’s employment with
the Company and its affiliates terminates for any reason, including voluntary
resignation. If the Executive becomes employed by an entity into which the Company
has merged, or by the purchaser of substantially all of the assets of the Company,
or by a successor to such entity or purchaser, a Termination Date shall not be
treated as having occurred for purposes of this Agreement until such time as the
Executive terminates employment with the successor and its affiliates (including,
without limitation, the merged entity or purchaser). If the Executive is
transferred to employment with an affiliate (including a successor to the Company,
and regardless of whether before, on, or after a Change in Control), such transfer
shall not constitute a Termination Date for purposes of this Agreement except if
the termination of the Executive is for Good Reason, as provided herein.

     4.  Payments and Benefits. Subject to the terms and conditions of this Agreement, if
the Executive’s employment is terminated during the Term of this Agreement after a Change of
Control (A) by the Company for a reason other than for Cause or (B) by the Executive for Good
Reason, the Executive shall be entitled to:

	 	(a)	 	[FOR CFO; COO; VP, HUMAN RESOURCES; AND VP, GENERAL COUNSEL: lump sum
severance payment equal to two times the Executive’s annual base salary in effect
immediately prior to the Termination Date.]
	 
	 	 	 	[FOR OTHER EXECUTIVE OFFICERS: lump sum severance payment equal to one times the
Executive’s annual base salary in effect immediately prior to the Termination
Date.]
	 
	 	(b)	 	a lump sum payment in an amount equal to the annual short-term incentive
compensation to which the Executive would have been entitled had he continued in the
employ of the Company through the last day of the calendar year in which his
Termination Date occurs and had the applicable incentive target(s) for such calendar
year been met, pro-rated for the number of days during the calendar year that the
Executive was employed prior to the Termination Date.
	 
	 	(c)	 	for each performance cycle for which an award to the Executive is
outstanding under the Company’s long-term incentive compensation plan and with respect
to which the Executive has performed services to his Termination Date, a lump sum
payment in an amount equal to the target

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number of shares granted to the Executive in the long-term incentive plan to which
the Executive would have been entitled had he continued in the employ of the
Company through the last day of such performance cycle multiplied by the fair
market value of the shares as of the Termination Date, pro-rated for the number of
days during the applicable performance cycle that the Executive was employed prior
to the Termination Date.

	 	(d)	 	[FOR CFO; COO; VP, HUMAN RESOURCES; AND VP, GENERAL COUNSEL: if the
Executive is vested in the Company’s tax-qualified defined benefit plan at the time
his employment terminates, he shall be entitled to an amount equal to the actuarial
equivalent of the additional amount that Executive would have earned under such plan
had he accumulated three (3) additional continuous years of service for benefit
crediting purposes. Such amount shall be paid to Executive in an actuarially
equivalent cash lump sum at Executive’s normal retirement age (as defined in such
tax-qualified defined benefit plan), unless the Executive chooses the option provided
under Code Section 409A as outlined in paragraph 8 herein.]
	 
	 	 	 	[FOR OTHER EXECUTIVE OFFICERS: N/A]
	 
	 	(e)	 	continued health benefit coverage for the Executive and the Executive’s
qualified beneficiaries as provided in section 4980B of the Code (“COBRA”). Such
COBRA continuation coverage shall be provided to the Executive and the Executive’s
qualified beneficiaries only if and to the extent that the Executive (or his qualified
beneficiaries, as applicable) makes a timely and proper election to be covered under
COBRA and makes timely payments for the cost of such coverage; provided, however, that
such COBRA coverage shall be at the Company’s expense for the period beginning on the
day after the Termination Date and ending on the earlier of (i) the first anniversary
of the Termination Date or (ii) the date on which the Executive commences employment
with another employer.
	 
	 	(f)	 	for the period beginning on the Termination Date and ending on the earlier of
(i) the first anniversary of the Termination Date and (ii) the date on which the
Executive commences employment with another employer, the Executive shall be permitted
the use of a Company-owned or leased automobile on the terms and conditions set forth
in the Company’s Automobile Policy.

For the avoidance of doubt, the Executive shall not be entitled to any benefits under this
Agreement if his termination of employment occurs on account of his death, disability, or voluntary
resignation (other than for Good Reason).

     5. Time of Payments. Payments pursuant to subparagraphs 4(a), 4(b) and 4(c) shall be
paid as follows:

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	 	(a)	 	the payment pursuant to subparagraph 4(a) (relating to severance pay) shall
be paid within 10 days following the later of (i) the Executive’s Termination Date and
(ii) the date on which the conditions of paragraph 6 are satisfied; and
	 
	 	(b)	 	any payment pursuant to subparagraphs 4(b) and 4(c) (relating to incentive
compensation) shall be made within 10 days following the later of (i) the Executive’s
Termination Date and (ii) the date on which the conditions of paragraph 6 are
satisfied.

Notwithstanding any other provision of this Agreement, if the requirements of paragraph 6 are not
satisfied on or before March 1st of the calendar year following the calendar year in which the
Executive’s Termination Date occurs, the Executive shall not be entitled to any payments or
benefits under this Agreement.

     6. Waiver and Release. The Executive shall not be entitled to any payments or
benefits under this Agreement unless and until the Participant executes and delivers to the Company
a valid release of any and all claims against the Company and its affiliates in a form acceptable
to the Company and the revocation period for such release has expired without revocation.

     7. Mitigation. The Executive shall not be required to mitigate the amount of any
payment provided for in this Agreement by seeking other employment or otherwise. None of the
Company or any of its affiliates shall be entitled to set off against the amounts payable to the
Executive under this Agreement any amounts owed to the Company or any of its affiliates by the
Executive, any amounts earned by the Executive in other employment after the Termination Date, or
any amounts which might have been earned by the Executive in other employment had he sought such
other employment.

     8. Parachute Payments. [FOR CFO; COO; VP, HUMAN RESOURCES; AND VP, GENERAL COUNSEL:
The Company and the Executive agree that if any payment or benefit to which the Executive is
entitled from the Company, any affiliate, or any trusts established by the Company or by any
affiliate (whether or not payable under this Agreement) including, without limitation, the vesting
of an option or other non-cash benefit or property (all such payments, benefits and vesting being
referred to collectively as “Payments”) are subject to the tax imposed by section 4999 of the
Internal Revenue Code of 1986 or any successor provision to that section, then Executive may choose
to receive the aggregate present value of those payments either:

	 	(a)	 	three times Executive’s base amount less one dollar, or
	 
	 	(b)	 	the amount which yields the Executive the greatest after-tax amount of
payments under this Agreement and any other plan, program or arrangement with the
Company after taking into account all applicable taxes on those payments, including,
but not limited to, the excise tax imposed under Section 4999 of the Code.

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	 	(c)	 	The Executive shall be entitled to select the order in which payments are to
be reduced in accordance with the preceding sentence. Determination of whether
Payments would result in the application of the tax imposed by section 4999, and the
amount of reduction that is necessary so that no such tax would be applied, shall be
made, at the Company’s expense, by the independent accounting firm employed by the
Company immediately prior to the occurrence of the Change in Control.]

[FOR ALL OTHER EXECUTIVE OFFICERS: The Company and the Executive agree that if any payment or
benefit to which the Executive is entitled from the Company, any affiliate, or any trusts
established by the Company or by any affiliate (whether or not payable under this Agreement)
including, without limitation, the vesting of an option or other non-cash benefit or property (all
such payments, benefits and vesting being referred to collectively as “Payments”) are subject to
the tax imposed by section 4999 of the Internal Revenue Code of 1986 or any successor provision to
that section, then the payments shall be reduced to the extent required to avoid application of the
tax imposed by Code Section 4999. The Executive shall be entitled to select the order in which
payments are to be reduced in accordance with the preceding sentence. Determination of whether
Payments would result in the application of the tax imposed by section 4999, and the amount of
reduction that is necessary so that no such tax would be applied, shall be made, at the Company’s
expense, by the independent accounting firm employed by the Company immediately prior to the
occurrence of the Change in Control.]

     9. Withholding. All payments to the Executive under this Agreement will be subject to
all applicable withholding of applicable taxes.

     10. Confidential Information. The Executive agrees that during the Agreement Term and
at all times thereafter:

	 	(a)	 	Except as may be required by the lawful order of a court or agency of
competent jurisdiction, except as necessary to carry out his duties to the Company and
its affiliates, or except to the extent that the Executive has express authorization
from the Company, the Executive agrees to keep secret and confidential indefinitely,
all Confidential Information (as defined below), and not to disclose the same, either
directly or indirectly, to any other person, firm, or business entity, or to use it in
any way.
	 
	 	(b)	 	To the extent that any court or agency seeks to have the Executive disclose
Confidential Information, he shall promptly inform the Company, and he shall take such
reasonable steps to prevent disclosure of Confidential Information until the Company
has been informed of such requested disclosure, and the Company has an opportunity to
respond to such court or agency. To the extent that the Executive obtains information
on behalf of the Company or any of its affiliates that may be subject to
attorney-client privilege as to the Company’s attorneys, the Executive shall take
reasonable steps to maintain the confidentiality of such information and to preserve
such privilege.

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	 	(c)	 	Nothing in the foregoing provisions of this paragraph 10 shall be construed
so as to prevent the Executive from using, in connection with his employment for
himself or an employer other than the Company or any of the affiliates, knowledge
which was acquired by him during the course of his employment with the Company and its
affiliates, and which is generally known to persons of his experience in other
companies in the same industry.
	 
	 	(d)	 	For purposes of this Agreement, the term “Confidential Information” shall
include all non-public information (including, without limitation, information
regarding litigation and pending litigation) concerning the Company and its affiliates
which was acquired by or disclosed to the Executive during the course of his
employment with the Company, or during the course of his consultation with the Company
following the Termination Date.
	 
	 	(e)	 	This paragraph 10 shall not be construed to unreasonably restrict the
Executive’s ability to disclose confidential information in an arbitration proceeding
or a court proceeding in connection with the assertion of, or defense against any
claim of breach of this Agreement. If there is a dispute between the Company and the
Executive as to whether information may be disclosed in accordance with this
subparagraph (e), the matter shall be submitted to the arbitrators or the court
(whichever is applicable) for decision.

     11. Competition. During the Term of the Agreement and for a period of 12 months after
termination of the Executive’s employment with the Company for any reason, the Executive shall not,
without the express written consent of the Chief Executive Officer of the Company:

	 	(a)	 	be employed by, serve as a consultant to, or otherwise assist or directly or
indirectly provide services to a Competitor (defined below) if: (i) the services that
the Executive is to provide to the Competitor are the same as, or substantially
similar to, any of the services that the Executive provided to the Company or its
affiliates, and such services are to be provided with respect to any location in which
the Company or an affiliate of the Company has material operations during the 12-month
period prior to the Termination Date, or with respect to any location in which the
Company or an affiliate of the Company has devoted material resources to establishing
operations during the 12-month period prior to the Termination Date; or (ii) the trade
secrets, confidential information, or proprietary information (including, without
limitation, confidential or proprietary methods) of the Company and its affiliates to
which the Executive had access could reasonably be expected to benefit the Competitor
if the Competitor were to obtain access to such secrets or information. For purposes
of this subparagraph (a), services provided by others shall be deemed to have been
provided by the Executive if the

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	 	 	 	Executive had material supervisory responsibilities with respect to the provision
of such services.

	 	(b)	 	solicit or attempt to solicit any party who is then or, during the 12-month
period prior to such solicitation or attempt by the Executive was (or was solicited to
become), a customer or supplier of the Company, provided that the restriction in this
subparagraph (b) shall not apply to any activity on behalf of a business that is not a
Competitor.
	 
	 	(c)	 	solicit, entice, persuade or induce any individual who is employed by the
Company or its affiliates (or was so employed within 90 days prior to the Executive’s
action) to terminate or refrain from renewing or extending such employment or to
become employed by or enter into contractual relations with any other individual or
entity other than the Company or its affiliates, and the Executive shall not approach
any such employee for any such purpose or authorize or knowingly cooperate with the
taking of any such actions by any other individual or entity for 12 months after the
Termination Date.
	 
	 	(d)	 	directly or indirectly own an equity interest in any Competitor (other than
ownership of 5% or less of the outstanding stock of any corporation listed on the New
York Stock Exchange or the American Stock Exchange or included in the NASDAQ System).

The term “Competitor” means any enterprise (including a person, firm or business, whether or not
incorporated) during any period in which it is materially competitive in any way with any business
in which the Company or any of its affiliates was engaged during the 12-month period prior to the
Executive’s termination of employment. Upon the written request of the Executive, the Company’s
Chief Executive Officer will determine whether a business or other entity constitutes a
“Competitor” for purposes of this paragraph and may require the Executive to provide such
information as the Chief Executive Officer determines to be necessary to make such determination.
The current and continuing effectiveness of such determination may be conditioned on the accuracy
of such information, and on such other factors as the Chief Executive Officer may determine.

     12. Non-Disparagement. The Executive agrees that, while he is employed by the
Company, and after his Termination Date, he shall not make any false, defamatory or disparaging
statements about the Company, its affiliates, or the officers or directors of the Company or its
affiliates that are reasonably likely to cause material damage to the Company, its affiliates, or
the officers or directors of the Company or its affiliates. While the Executive is employed by the
Company, and after the Termination Date, the Company agrees, on behalf of itself and its
affiliates, that neither the officers nor the directors of the Company or its affiliates shall make
any false, defamatory or disparaging statements about the Executive that are reasonably likely to
cause material damage to the Executive.

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     13. Nonalienation. The interests of the Executive under this Agreement are not
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors of the Executive or the Executive’s beneficiary.

     14. Amendment. This Agreement may be amended or canceled only by mutual agreement of
the parties in writing without the consent of any other person. So long as the Executive lives, no
person, other than the parties hereto, shall have any rights under or interest in this Agreement or
the subject matter hereof.

     15. Applicable Law. The provisions of this Agreement shall be construed in accordance
with the laws of the State of Illinois, without regard to the conflict of law provisions of any
state.

     16. Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of any other provision of this Agreement,
and this Agreement will be construed as if such invalid or unenforceable provision were omitted
(but only to the extent that such provision cannot be appropriately reformed or modified).

     17. Obligation of Company. Except as otherwise specifically provided in this
Agreement, nothing in this Agreement shall be construed to affect the Company’s right to modify the
Executive’s position or duties, compensation, or other terms of employment, or to terminate the
Executive’s employment. Nothing in this Agreement shall be construed to provide to Executive any
rights upon termination of Executive’s employment with the Company other than as specifically
described in paragraph 4. If Executive’s employment is terminated other than by the Company for
Cause or by the Executive for Good Reason, the Executive’ benefits shall be determined in
accordance with the applicable retirement, insurance and other programs of the Company as may then
be in effect.

     18. Waiver of Breach. No waiver by any party hereto of a breach of any provision of
this Agreement by any other party, or of compliance with any condition or provision of this
Agreement to be performed by such other party, will operate or be construed as a waiver of any
subsequent breach by such other party of any similar or dissimilar provisions and conditions at the
same or any prior or subsequent time. The failure of any party hereto to take any action by reason
of such breach will not deprive such party of the right to take action at any time while such
breach continues.

     19. Successors, Assumption of Contract. This Agreement is personal to the Executive
and may not be assigned by the Executive without the written consent of the Company. However, to
the extent that rights or benefits under this Agreement otherwise survive the Executive’s death,
the Executive’s heirs and estate shall succeed to such rights and benefits pursuant to the
Executive’s will or the laws of descent and distribution. This Agreement shall be binding upon and
inure to the benefit of the Company and any successor of the Company and the Company will require
any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to

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all or substantially all of the business or assets of the Company to expressly assume and
agree 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.

     20. Notices. Notices and all other communications provided for in this Agreement
shall be in writing and shall be delivered personally or sent by registered or certified mail,
return receipt requested, postage prepaid (provided that international mail shall be sent via
overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below. Such notices, demands, claims and other communications shall be
deemed given:

	 	(a)	 	in the case of delivery by overnight service with guaranteed next day
delivery, the next day or the day designated for delivery;
	 
	 	(b)	 	in the case of certified or registered U.S. mail, five days after deposit in
the U.S. mail; or
	 
	 	(c)	 	in the case of facsimile, the date upon which the transmitting party received
confirmation of receipt by facsimile, telephone or otherwise;

provided, however, that in no event shall any such communications be deemed to be given later than
the date they are actually received. Communications that are to be delivered by the U.S. mail or
by overnight service or two-day delivery service are to be delivered to the addresses set forth
below:

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to the Company:

A. M. Castle & Co.

3400 North Wolf Road

Franklin Park, IL 60131

Attn: Corporate Secretary

or to the Executive:

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Each party, by written notice furnished to the other party, may modify the applicable delivery
address, except that notice of change of address shall be effective only upon receipt.

     21. Arbitration of All Disputes. Any controversy or claim arising out of or relating
to this Agreement (or the breach thereof) shall be settled by final, binding and non-appealable
arbitration in Illinois, by three arbitrators. Except as otherwise expressly provided in this
paragraph 21, the arbitration shall be conducted in accordance with the rules of the American
Arbitration Association (the “Association”) then in effect. One of the arbitrators shall be
appointed by the Company, one shall be appointed by the Executive, and the third shall be appointed
by the first two arbitrators. If the first two arbitrators cannot agree on the third arbitrator
within 30 days of the appointment of the second arbitrator, then the third arbitrator shall be
appointed by the Association.

     22. Survival of Agreement. Except as otherwise expressly provided in this Agreement,
the rights and obligations of the parties to this Agreement shall survive the termination of the
Executive’s employment with the Company.

     23. Counterparts. This Agreement may be executed in two or more counterparts, any one
of which shall be deemed the original without reference to the others.

[remainder of page intentionally left blank]

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     IN WITNESS THEREOF, the Executive has hereunto set his hand, and the Company has caused these
presents to be executed in its name and on its behalf, all as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Executive	 	 
	 
	 	 	 	 	 	 
	 	 	A. M. Castle & Co.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its	 	 	 	 
	 

	 	 	 	 	 	 

13exv10w10

Exhibit 10.10

A. M. CASTLE & CO

2008 RESTRICTED STOCK, STOCK OPTION AND EQUITY COMPENSATION PLAN

(amended and restated as of March 5, 2009)

I. GENERAL

     1. Purpose. The A. M. Castle & Co. 2008 Restricted Stock, Stock Option and Equity
Compensation Plan (the “2008 Plan”) has been established by A. M. Castle & Co. (“Castle”) to:

     (a) attract and retain key executive, managerial, supervisory and professional
employees;

     (b) attract and align the interest of directors with the long term interests of
Castle and stockholders;

     (c) motivate participating employees to put forth their maximum effort for the continued
growth of Castle and Subsidiaries;

     (d) further identify Participants’ interests with those of Castle’s shareholders;
and

     (e) provide incentive compensation opportunities which are competitive with those of other
corporations in the same industries as Castle and its Subsidiaries;

and thereby promote the long-term financial interest of Castle and its Subsidiaries, including the
growth in value of Castle’s equity and enhancement of long-term shareholder return.

     2. Effective Date. The 2008 Plan became effective upon the ratification by the holders of the
majority of those shares present in person or by proxy at Castle’s 2008 annual meeting of its
shareholders and was amended and restated as of March 5, 2009. The 2008 Plan shall be limited in
duration to ten (10) years and, in the event of Plan termination, shall remain in effect as long as
any awards under it are outstanding.

     3. Definitions. The following definitions are applicable to the 2008 Plan:

     “Board” means the Board of Directors of Castle.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Committee” means the Human Resources Committee and its Subcommittee, or such other
committee as may be designated from time to time by the Board comprising of at least three (3)
or more members of the Board who are considered “independent” and “disinterested persons”
within the meaning of Item 401of Regulation S-K and Rule 16b-3 of the Securities Exchange Act
of 1934, as amended.

     “Director” means an “independent” (as that term is defined in Item 401 of Regulation S-K
of the Securities Exchange Act of 1934 and the New York Stock Exchange Listing Standard)
member of Castle’s Board of Directors. All directors shall participate in the 2008 Plan as
described in Part III.

     “Equity Performance Award” has the meaning ascribed to it in Part V.

     “Fair Market Value” of any Stock means, as of any date, the closing market composite price
for such Stock as reported for the New York Stock Exchange-Composite Transactions on that date
or, if Stock is not traded on that date, on the next preceding date on which Stock was traded.

     “Participant” means any Director or employee of Castle or any Subsidiary who is selected
by the Committee to participate in the 2008 Plan.

 

 

     “Related Company” means any corporation during any period in which it is a Subsidiary, or
during any period in which it directly or indirectly owns fifty percent (50%) or more of the
total combined voting power of all classes of stock of Castle that are entitled to vote.

     “Restricted Period” has the meaning ascribed to it in Part IV.

     “Restricted Stock” has the meaning ascribed to it in Part IV.

     “Stock” means A. M. Castle & Co. common stock.

     “Stock Option” means the right of a Participant to purchase Stock pursuant to an Incentive
Stock Option or Non-Qualified Option awarded pursuant to the provision of Part II or Part III.

     “Subsidiary” means any corporation during any period in which fifty percent (50%) or more
of the total combined voting power of all classes of stock entitled to vote is owned, directly
or indirectly, by Castle.

     4. Administration. The authority to manage and control the operation and administration of
the 2008 Plan shall be vested in the Committee. Subject to the provisions of the 2008 Plan, the
Committee will have authority to select employees to receive awards of Stock Options and Restricted
Stock, to determine the time or times of receipt, to determine the types of awards and the number
of shares covered by the awards, to establish the terms, conditions, performance criteria,
restrictions and other provisions of such awards (including but not limited to the authority to
provide that in the event of certain changes in the beneficial ownership of Castle’s Stock fully
exercisable and/or vested), and to cancel or suspend awards. In making such award determinations,
the Committee may take into account the nature of services rendered by the respective employee, his
or her present and potential contribution to Castle’s success, and such other factors as the
Committee deems relevant. The Committee is authorized to interpret the 2008 Plan, to establish,
amend and rescind any rules and regulations relating to the 2008 Plan, to determine the terms and
provisions of any agreements made pursuant to the 2008 Plan and make all other determinations that
may be necessary or advisable for the administration of the 2008 Plan. Any interpretation of the
2008 Plan by the Committee and any decision made by it under the 2008 Plan is final and binding on
all persons.

     5. Participation. Subject to the terms and conditions of the 2008 Plan, the outside
(non-employee) members of Castle’s Board of Directors shall participate in the 2008 Plan and the
Committee shall determine and designate from time to time, the key executive, managerial,
supervisory and professional employees of Castle and its Subsidiaries who will participate in the
2008 Plan. In the discretion of the Committee, an eligible employee may be awarded Stock Options,
Restricted Stock or Equity Performance Awards, and more than one (1) award may be granted to a
Participant. Except as otherwise agreed to by Castle and the Participant, any award(s) under the
2008 Plan shall not affect any previous award to the Participant under the 2008 Plan or any other
Plan maintained by Castle or its Subsidiaries. The Committee may consider all factors that it
deems relevant in selecting Participants and in determining the type and amount of their respective
benefits.

     6. Shares Subject to the 2008 Plan. The shares of Stock with respect to which awards may be
made under the 2008 Plan shall be either authorized and unissued shares or issued and outstanding
shares (including, in the discretion of the Board, shares purchased in the market). Subject to the
provisions of paragraph 10 of this Section I, the number of shares of Stock which may be issued
with respect to awards under the 2008 Plan shall not exceed 2,000,000 shares in the aggregate. If,
for any reason, any award under the 2008 Plan otherwise distributable in shares of Stock, or any
portion of the award, shall expire, terminate or be forfeited or cancelled, or be settled in cash
pursuant to the terms of the 2008 Plan and, therefore, any such shares are no longer distributable
under the award, such shares of Stock shall again be available for award to an eligible employee
(including the holder of such former award) under the 2008 Plan.

     7. Compliance with Applicable Laws and Withholding Taxes. Notwithstanding any other provision
of the 2008 Plan, Castle shall have no liability to issue any shares of Stock under the 2008 Plan
unless such issuance would comply with all applicable laws and the applicable requirements of the
Security Exchange

2

 

Commission (“SEC”), New York Stock Exchange, or similar entity. Prior to the issuance of any
shares of Stock under the 2008 Plan, Castle may require a written statement that the recipient is
acquiring the shares for investment and not for the purpose or with the intention of distributing
the shares. In the case of a Participant who is subject to Section 16(a) and 16(b) of the
Securities Exchange Act of 1934, the Committee may, at any time, add such conditions and
limitations to any election to satisfy tax withholding obligations through the withholding or
surrender of shares or Stock as the Committee, in its sole discretion, deems necessary or desirable
to comply with Section 16(a) or 16(b) and the rules and regulations thereunder or to obtain any
exemption therefrom. All awards and payments under the 2008 Plan are subject to withholding of all
applicable taxes, which withholding obligations may be satisfied, with the consent of the
Committee, through the surrender of shares of Stock which the Participant already owns, or to which
a Participant is otherwise entitled under the 2008 Plan.

     8. Transferability. Stock Options, Equity Performance Award and, during the period of
restriction, Restricted Stock awarded under the 2008 Plan are not transferable except as designated
by the Participant by will or by the laws of descent and distribution. Stock Options may be
exercised during the lifetime of the Participant only by the Participant.

     9. Employment and Shareholder Status. The 2008 Plan does not constitute a contract of
employment and selection as a Participant does not give any employee the right to be retained in
the employ of Castle or any Subsidiary. No award under the 2008 Plan shall confer upon the holder
thereof any right as a shareholder of Castle prior to the date on which he fulfills all service
requirements and other conditions for receipt of shares of Stock. If the redistribution of shares
is restricted pursuant to paragraph 7 above, certificates representing such shares may bear a
legend referring to such restrictions.

     10. Adjustments to Number of Shares Subject to the 2008 Plan. In the event of any change in
the outstanding shares or Stock of Castle by reason of any stock dividend, split, spinoff,
recapitalization, merger, consolidation, combination, exchange of shares or other similar change,
the aggregate number of shares of Stock with respect to which awards may be made under the 2008
Plan, and the terms and the number of shares of any outstanding Stock Options or Restricted Stock
shall be equitably adjusted by the Committee. Any such adjustment in any outstanding option shall
be made without change in the aggregate option price applicable to the unexercised portion of such
option but with a corresponding adjustment in the price for each share covered by such option as
well as the adjustment in the number and kind of Stock Options mentioned above. Adjustments under
this paragraph 10 shall be made by the Committee, whose determination as to what adjustments shall
be made, and the extent thereof, shall be final, binding and conclusive. In no event shall the
exercise price for a Stock Option be adjusted below the par value of such Stock, nor shall any
fraction of a share be issued upon the exercise of an option.

     11. Agreement with Company. At any time of any awards under the 2008 Plan, the Committee will
require a Participant to enter into an agreement with Castle in a form specified by the Committee,
agreeing to the terms and conditions of the 2008 Plan and to such additional terms and conditions,
not inconsistent with the 2008 Plan, as the Committee may, in its sole discretion, prescribe.

     12. Amendment and Termination of 2008 Plan. Subject to the following limitation of this
paragraph 12, the Board may at any time amend, suspend, or terminate the 2008 Plan. No amendment
of the 2008 Plan and, except as provided in paragraph 10 above, no action by the Board or the
Committee shall, without further approval of the shareholders of Castle, increase the total number
of shares of Stock with respect to which awards may be made under the 2008 Plan or materially amend
the Plan. No amendment, suspension, or termination of the 2008 Plan shall alter or impair any
Stock Option or Restricted Stock previously awarded under the 2008 Plan without the consent of the
holder thereof.

II. INCENTIVE STOCK OPTIONS

     1. Definitions. The award of an Incentive Stock Option under the 2008 Plan entitles the
Participant to purchase shares of Stock at a price fixed at the time the option is awarded, subject
to the following terms of this Section II.

3

 

     2. Eligibility. The Committee shall designate the Participants to whom Incentive Stock
Options, as described in Section 422(b) of the Code or any successor section thereto, are to be
awarded under the 2008 Plan and shall determine the number of option shares to be offered to each
of them. In no event shall the aggregate Fair Market Value (determined at the time the option is
awarded and taking options into account in the order granted) of Stock with respect to which
Incentive Stock Options are exercisable for the first time by an individual during any calendar
year (under all Plans of Castle and all Related Companies) exceed One Hundred Thousand Dollars
($100,000).

     3. Price. The purchase price of a share of Stock under each Incentive Stock Option shall be
determined by the Committee provided, however, that in no event shall such price be less than the
greater of (a) one hundred percent (100%) of the average Fair Market Value for the ten (10) days
preceding the date on which the option is granted (one hundred ten percent (110%) of Fair Market
Value with respect to Participants who at the time of the award are deemed to own at lest ten
percent (10%) of the voting power of Castle); or (b) the par value of a share of Stock on such
date. To the extent provided by the Committee, the full purchase price of such share of Stock
purchased upon the exercise of any Incentive Stock Option shall be paid in cash or in shares of
Stock (valued at Fair Market Value as of the date of exercise), or in any combination thereof, at
the time of such exercise and, as soon as practicable thereafter, a certificate representing the
shares so purchased shall be delivered to the person entitled thereto. Notwithstanding the
foregoing provisions of this paragraph 3, the Committee may, in its sole discretion, by the terms
of the Agreement granting Stock Options to a Participant, or thereafter, permit Incentive Stock
Options to be exercised by a Participant through one (1) or more loans from a stock brokerage firm
upon assurance from the brokerage firm that any such loans shall be made in accordance with
applicable margin requirements.

     4. Exercise. The Committee may impose such rules relating to the time and manner in which
Incentive Stock Options may be exercised as the Committee deems appropriate; provided, however,
that no Incentive Stock Option may be exercised by a Participant (a) prior to the date on which he
completes one continuous year of employment with Castle or any Related Company after the date of
the award thereof; or (b) after the Expiration Date applicable to that option.

     5. Option Expiration Date. The “Expiration Date” with respect to an Incentive Stock Option on
any portion thereof awarded to a Participant under the 2008 Plan means the earliest of:

     (a) the date that is ten (10) years after the date on which the Incentive Stock Option is
awarded (five (5) years with respect to Participants who at the time of the award are deemed to
own at least ten percent (10%) of the voting power of Castle);

     (b) the date, if any, on which the Participant’s continuous employment with Castle and all
Related Companies terminates, except in the case of retirement under Castle’s retirement Plan
or disability, the third anniversary of the date of such retirement or disability; or

     (c) the date established by the Committee, or the date determined under a method
established by the Committee, at the time of the award.

All rights to purchase shares of Stock pursuant to an Incentive Stock Option shall cease as of such
option’s Expiration Date.

III. NON-QUALIFIED STOCK OPTIONS

     1. Definition. The award of a Non-Qualified Stock Option under the 2008 Plan entitles the
Participant to purchase shares of Stock at a price fixed at the time the option is awarded, subject
to the following terms of this Section III.

     2. Eligibility. The Committee shall designate the Participants to whom Non-Qualified Stock
Options are to be awarded under the 2008 Plan and shall determine the number of option shares to be
offered to each of them. Each Director who is a member of Castle’s Board of Directors on the date
of Castle’s annual shareholders meeting in 2008, and each anniversary thereof (or if such date is
not a business day, the first

4

 

business day thereafter) shall on such date be granted an option to purchase 5,000 shares, or
such other amount of shares not to exceed 10,000, as the Committee may determine, no later than
January 31st of that year.

     3. Price. The purchase price of a share of Stock under each Non-Qualified Stock Option shall
be determined by the Committee; provided however, that in no event shall such price be less than
the greater of (a) one hundred percent (100%) of the average Fair Market Value for the ten (10)
days preceding the date on which the option is granted of a share of Stock of the date the option
is granted; or (b) the par value of a share of such Stock on such date. To the extent provided by
the Committee, the full purchase price of each share of Stock purchased upon the exercise of any
Non-Qualified Stock Option shall be paid in cash or in shares of Stock (valued at Fair Market Value
as of the day of exercise), or in any combination thereof, at the time of such exercise and; as
soon as practicable thereafter, a certificate representing the shares so purchased shall be
delivered to the person entitled thereto. Notwithstanding the foregoing provisions of this
paragraph 3, the Committee may, in its sole discretion, by the terms of the Agreement granting
Non-Qualified Stock Options permit Non-Qualified Stock Options to be exercised by a Participant
through one (1) or more loans from a stock brokerage firm upon assurance from the brokerage firm
that any such loans shall be made in accordance with applicable margin requirements. Upon the
exercise of an option or part thereof, the full option price of the Stock purchased pursuant to the
exercise of a stock option together with any required state or federal withholding taxes shall be
paid in the form of: (a) cash, certified check, bank draft or postal or express money order made
payable to the order of Castle; or (b) Common Stock at the Fair Market Value.

     4. Exercise. The Committee may impose such rules relating to the time and manner in which
Non-Qualified Stock Options may be exercised as the Committee deems provided, however, that no
Non-Qualified Stock Option may be exercised by a Participant (a) prior to the date on which the
Participant completes one (l) continuous year of employment with Castle or any Related Company
after the date of the award thereof, or in the case of a director, on the first anniversary of the
date of the award; or (b) after the Expiration Date applicable to that option.

     5. Option Expiration Date. The “Expiration Date” with respect to a Non-Qualified Stock Option
or any portion thereof awarded to a Participant under the 2008 Plan means the earliest of:

     (a) the date that is ten (10) years after the date on which the Non-Qualified
Option is awarded;

     (b) the date, if any, on which the Participant’s continuous employment with Castle and all
Related Companies terminates, except in the case of retirement under Castle’s retirement Plan
or disability, the third anniversary of the date of such retirement or disability.

     (c) the date established by the Committee, or the date determined under a method
established by the Committee, at the time of the award.

     (d) in the case of a Director, the date the Director resigns from the Board of Directors,
or in the event the Director retires, at or after attaining Board of Directors retirement age,
or becomes disabled, the third anniversary of such retirement or disability.

All rights to purchase shares of Stock pursuant to a Non-Qualified Stock Option shall cease as of
such option’s Expiration Date.

IV. RESTRICTED STOCK

     1. Definition. Restricted Stock awards are grants of Stock to Participants, the vesting
of which is subject to a required period of employment and any other conditions established by
the Committee, subject to the following terms of this Section IV.

     2. Eligibility. The Committee shall designate the Participants to whom Restricted Stock
is to be awarded under the number of shares of Stock that are subject to the award

5

 

     3. Terms and Conditions of Awards. All shares of Restricted Stock awarded to Participants
under the 2008 Plan shall be subject to the following terms and conditions and to such other
terms and conditions, not inconsistent with the 2008 Plan, as shall be prescribed by the
Committee in its sole discretion and as shall be contained in the Agreement referred to in
paragraph 11 of Section I.

     (a) Restricted Stock awarded to Participants may not be sold, assigned, transferred,
pledged or otherwise encumbered, except as hereinafter provided, for a period determined by the
Committee after the time of the award of such stock (the “Restricted Period”). Except for such
restrictions, the Participant as owner of such shares shall have all the rights of a
shareholder, including but not limited to the right to vote such shares and, except as
otherwise provided by the Committee, the right to receive all dividends paid on such shares.

     (b) The Committee may, in its discretion, at any time after the date of the award of
Restricted Stock adjust the length of the Restricted Period to account for individual
circumstances of a Participant or group of Participants, but in no case shall the length of the
Restricted Period be less than one (1) year.

     (c) Except as otherwise determined by the Committee in its sole discretion, a Participant
whose employment with Castle and all Related Companies terminates prior to the end of the
Restricted Period for any reason shall forfeit all shares of Restricted Stock remaining subject
to any outstanding Restricted Stock award.

     (d) Each certificate issued in respect of shares of Restricted Stock awarded under the
2008 Plan shall be registered in the name of the Participant and, at the discretion of the
Committee, each such certificate may be deposited in a bank designated by the Committee. Each
such certificate shall bear the following (or a similar) legend;

“The transferability of this certificate and the shares of stock represented hereby are
subject to the terms and conditions (including forfeiture) contained in the A. M.
Castle & Co. 2008 Restricted Stock and Stock Option Plan and an agreement entered into
between the registered owner and A. M. Castle & Co. A copy of such Plan and agreement
is on file in the office of the Secretary of A. M. Castle & Co., 3400 N. Wolf Road,
Franklin Park, Illinois 60131.”

     (e) At the end of the Restricted Period for Restricted Stock, such Restricted Stock will
be transferred free of all restrictions to the Participant (or his or her legal representative,
beneficiary or heir).

V. EQUITY PERFORMANCE AWARDS

     1. Definition. Equity Performance Awards (“P-Awards”) are grants of Stock Appreciation Rights
(SAR), phantom stock, stock and cash, the vesting of which is subject to a required period of
employment, the attainment of certain designated measures of Company or personal performance
objectives and any other conditions established by the Committee, subject to the following terms of
this Section V.

     2. Eligibility. The Committee shall designate the Participants to whom P-Awards are to be
awarded and the number of shares of Stock that underlay or are contingent on the P-Awards and any
stock delivered pursuant thereto.

     3. Terms and Conditions of Awards. All Participants under the 2008 Plan shall be subject to
the following terms and conditions and to such other terms and conditions, not inconsistent with
the 2008 Plan, as shall be prescribed by the Committee in its sole discretion and as shall be
contained in the Agreement referred to in paragraph 11 of Section I.

     (a) Equity Performance Awards (“P-Awards”) shall have performance measures designated by
the Committee based in whole or part among any or a combination of the following: gross profit
on

6

 

sales, material gross profit (gross profit on material portion of sales), DSO (days sales
outstanding on receivables), DSI (days sales outstanding on inventory), working capital
employed, purchase variance, delivery variance, sales, earnings, earnings per share, pre-tax
earnings, share price (including, but not limited to, total shareholder return, relative total
shareholder return and other measures of shareholder value creation), return on equity, return
on investments, and asset management, and may include or exclude specified items of an unusual,
non-recurring or extraordinary nature including, without limitation, changes in accounting
methods, changes in inventory methods, changes in corporate taxation, unusual accounting gains
and losses, changes in financial accounting standards or other extraordinary events causing
dilution or diminution in Castle’s earnings. Performance objectives need not be the same for
all participants, and may be established for Castle as a whole or for its various groups,
divisions, subsidiaries and affiliates. The Committee at the time of establishing performance
objectives, may establish a minimum performance target and provide for reduced payment if the
performance objective is not achieved but the minimum performance target is met.

     (b) The period for performance for P-Awards may not be less than three (3) years, subject
to acceleration upon a change of control.

     (c) P-Awards to Participants may not be sold, assigned, transferred, pledged or otherwise
encumbered.

     (d) The Committee may, in its discretion, at any time after the date of the P-Award adjust
the length of the designated period a Participant must hold any stock delivered in accordance
with the vesting of an award to account for individual circumstances of a Participant or group
of Participants, but in no case shall the length of such period be less than one (1) year.

     (e) Except as otherwise determined by the Committee in its sole discretion, a Participant
whose employment with Castle and all Related Companies terminates prior to the end of any
vesting period or fails to achieve the performance objective for any reason shall forfeit all
P-Awards remaining subject to any non-vested/unattained performance objectives.

Upon attainment of the designated performance measures the P-Award will fully vest and not be
forfeited. Payment will be made in cash, stock or other equity based property or any combination
thereof

7

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