Document:

Exhibit 10.18

 

EMPLOYMENT AGREEMENT

 

Employment Agreement made as of the 23rd day of October 2019 (the “Effective Date”), between GFL Environmental Holdings (US) Inc. (the “US Company”) and Gregory Yorston (the “Executive”).

 

RECITALS:

 

WHEREAS the US Company desires to continue to employ the Executive, and the Executive desires to continue to be employed by the US Company, in accordance with the terms and conditions contained in this Employment Agreement (the “Agreement”); and

 

WHEREAS the Company is only willing to enter into this Agreement on the basis that the Executive observe the restrictive covenants set out herein, which have been negotiated in good faith and which the Executive acknowledges as being reasonable given the nature of his position pursuant to this Agreement; and

 

WHEREAS the parties agree that this Agreement supersedes and replaces any and all prior employment agreements between the US Company and the Executive, including but not limited to the employment agreement between the Executive and the US Company dated October 9, 2018.

 

NOW THEREFORE in consideration of the foregoing and the mutual agreements contained herein (the receipt and adequacy of which are acknowledged), the parties agree as follows:

 

ARTICLE 1
 INTERPRETATION

 

Section 1.1                                               Definitions.

 

In this Agreement, unless otherwise defined herein, capitalized terms have the meaning set out in Schedule “A” annexed to this Agreement.

 

Section 1.2                                               Extended Meanings.

 

In this Agreement, words importing the singular include the plural and vice versa and words importing gender include all genders.

 

Section 1.3                                               Headings.

 

The division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only and will not affect the construction or interpretation of this Agreement.

 

Section 1.4                                               References.

 

References to a specific article, or section are to be construed as references to that specified article, or section of this Agreement, unless the context otherwise requires.

 

Section 1.5                                               Currency.

 

All dollar amounts referred to in this Agreement are in the currency of the United States of America, unless otherwise specifically indicated.

 

 

ARTICLE 2
 EMPLOYMENT POSITION AND DUTIES

 

Section 2.1                                               Employment.

 

The US Company hereby acknowledges the continued employment of the Executive in the position of Executive Vice President and Chief Operating Officer, Solid Waste on the terms and conditions contained herein as of and with effect from the Effective Date.  The Executive shall report to Chief Executive Officer of GFL Environmental Inc. (the “Company”) (or to any other position designated by the Board from time to time).  IT is understood and agreed that the Executive shall take direction from the Company and that the performance of his duties and the work he conducts will be for the primary benefit of the Company.

 

Section 2.2                                               Term.

 

This Agreement will be effective from the Effective Date and will continue in effect for an indefinite term until it is terminated in accordance with Article 4 (the “Term”).

 

Section 2.3                                               Faithful Service.

 

(1)                                 During the Term, the Executive shall:

 

(a)                                 well and faithfully serve the Company and carry out those responsibilities as are necessary to perform the functions associated with the position of Executive Vice President and Chief Operating Officer, Solid Waste of the Company;

 

(b)                                 devote the required skill, experience and attention necessary to carry out the responsibilities consistent with the Executive’s position;

 

(c)                                  use his best efforts to promote the success of the business of the Company and act at all times in the best interests of the Company; and

 

(d)                                 devote his full working time and energy to the Company and shall not, directly or indirectly, render services to any Person other than services with regard to charitable or community service organizations, provided such activities do not, individually or in the aggregate, interfere with the Executive’s duties hereunder or create a potential business or fiduciary conflict.

 

(2)                                 The Executive acknowledges that he must comply with (i) the lawful policies and procedures established by the Company from time to time, including any code of ethics or business conduct adopted by the Company (including any future revisions of such policies, procedures or other codes of business conduct); and (ii) all applicable laws, rules and regulations, and all requirements of all applicable regulatory, self-regulatory and administrative bodies.

 

ARTICLE 3
 COMPENSATION AND BENEFITS

 

Section 3.1                                               Base Salary.

 

The Company shall pay to the Executive a salary at the rate of $625,000 per annum (the “Base Salary”), less applicable deductions and withholdings, payable in accordance 

 

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with the Company’s regular payroll practices. The Executive’s Base Salary may be increased from time to time at the discretion of the Board and once increased shall thereafter be the Base Salary hereunder.

 

Section 3.2                                               Bonus.

 

The Executive will be eligible to receive an annual cash bonus with a target of 100% (the “Target”) of his Base (the “Bonus”) in accordance with the achievement of objectives, both corporate and personal which will be established by the Board within the first quarter of each fiscal year to which the Bonus relates.  The Bonus, if any, will be payable no event later than March 15th of the year following the year to which the Bonus relates. The Executive acknowledges that: (i) terms of the Bonus may change each fiscal year at the discretion of the Company; (ii) he has no expectation that in any fiscal year there will be a guaranteed level of Bonus; (iii) the amount of the Bonus, if any, that the Executive may be awarded may change from year to year; and (iv) all Bonuses are subject to applicable deductions and withholdings.

 

Section 3.3                                               Long Term Incentive Compensation.

 

The Executive will be eligible to participate in the Company’s Omnibus Long Term Incentive Plan (the “Plan”) in accordance with its terms. Awards pursuant to the Plan shall be addressed in separate award agreements.  An award pursuant to the Plan in one year does not guarantee that an award will be made in a subsequent year.

 

Section 3.1                                               Restricted Share Units and Performance Share Units.

 

The Executive will be eligible for an annual grant of restricted share units (“RSUs”) and Performance Share Units (“PSUs”).  The amount of RSUs and/or PSUs granted, if any, shall be at the sole discretion of the Board and may change from year to year.  The terms of the applicable plan and/or award agreement shall govern the RSUs and/or PSUs granted to the Executive and the Executive has no expectation of an RSU and/or PSU award in any given year.

 

Section 3.2                                               Benefit Plans.

 

The Executive will be eligible to participate in all of the health and welfare benefit plans in effect from time to time for senior management of the Company, in accordance with the terms of the applicable plan documents, as may be amended from time to time and the Executive shall have no independent right as against the Company in connection with said benefits (the “Benefits”).

 

Section 3.3                                               Vacation.

 

During each full calendar year, the Executive will be entitled to four (4) weeks’ vacation, which shall accrue in accordance with the Company’s vacation policy.  Unused vacation may not be carried forward to a subsequent year, except as required by applicable employment standards legislation.  Vacation is to be taken at a time acceptable to the Company having regard to business requirements.

 

Section 3.4                                               Expenses.

 

The Company shall reimburse the Executive for all out-of-pocket expenses reasonably and properly incurred by the Executive in connection with his duties hereunder, provided that such expenses are in accordance with the policies of the Company in effect 

 

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from time to time.  To the extent requested by the Company or required under such policies, the Executive shall furnish to the Company statements and receipts for all such expenses.

 

Section 3.5                                               DPSP/RRSP.

 

The Executive shall be entitled to participate in the Company’s DPSP/RRSP.  Such benefits shall be provided in accordance with the formal plan documents or policies and any issue with respect to entitlement or payment shall be governed by the terms of such documents or policies.

 

Section 3.6                                               No Other Benefits.

 

The Executive is not entitled to any other payment, benefit, perquisite, allowance or entitlement other than as specifically set out in this Agreement or as otherwise agreed to in writing by the Company and the Executive.

 

ARTICLE 4
 TERMINATION OF EMPLOYMENT

 

Section 4.1                                               Early Termination.

 

Notwithstanding any other provision in this Agreement, the Executive’s employment and this Agreement may be terminated at any time as follows:

 

(a)                                 automatically upon the death of the Executive;

 

(b)                                 by the Company at any time as a result of the Executive’s Disability;

 

(c)                                  by the Company at any time for Cause;

 

(d)                                 by the Company at any time without Cause by providing written notice to the Executive specifying the effective date of termination (which may be immediately);

 

(e)                                  by the Executive in the absence of Good Reason at any time by providing written notice to the Board specifying the effective date of resignation (such date being not less than eight (8) weeks and not more than twelve (12) weeks following the date of the Executive’s written notice, the (“Resignation Notice Period”) it being understood the Company is under no obligation to utilize the Executive’s services during the Resignation Notice Period; or

 

(f)                                   by the Executive for Good Reason by providing written notice to the Company specifying the event or events upon which the Executive is relying to terminate his employment for Good Reason.

 

Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any nonqualified deferred compensation (within the meaning of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”)) upon a termination of employment shall be delayed until 

 

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such time as Executive has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Executive’s termination of employment hereunder) shall be paid (or commence to be paid) to Executive on the schedule set forth in this Section 4 as if Executive had undergone such termination of employment (under the same circumstances) on the date of his ultimate “separation from service.”

 

Section 4.2                                               Termination for Death, Cause, or Voluntary Resignation.

 

If this Agreement and the Executive’s employment is terminated pursuant to subsections 4.1(a), 4.1(c) or 4.1(e) above, then the Company shall pay to the Executive or to the Executive’s estate, as applicable (i) his Base Salary up to the date of termination; (ii) accrued and outstanding vacation pay to the date of termination; and (iii) reimbursement for business expenses properly incurred to the date of termination (the “Basic Entitlements”).  The Executive shall not be entitled to any Bonus, pro-rated or otherwise, for the year in which the date of termination occurs.

 

Section 4.3                                               Termination by Reason of Disability.

 

If this Agreement and the Executive’s employment is terminated pursuant to subsection 4.1(b) above, then the Company shall pay to the Executive (a) the Basic Entitlements; and (b) those termination and severance payments required by applicable employment standards legislation (with vacation pay calculated to the end of the statutory notice period). The Executive shall continue to participate in the Company’s health and welfare benefit plans for the minimum statutory notice period and shall not be entitled to any other notice, or payment in lieu of notice in respect of the termination of the Executive’s employment.

 

Section 4.4                                               Termination Without Cause or for Good Reason.

 

If this Agreement and the Executive’s employment is terminated by the Company without Cause pursuant to subsection 4.1(d) above or by the Executive for Good Reason pursuant to subsection 4.1(f) above, then the following provisions shall apply:

 

(a)                                 the Company shall pay to the Executive the Basic Entitlements (with vacation pay calculated to the end of the statutory notice period);

 

(b)                                 the Company shall pay any Bonus awarded in respect of the year preceding the year of termination, but not yet paid;

 

(c)                                  the Company shall pay to the Executive his Bonus at Target for the year in which his employment terminates, pro-rated to the date of termination;

 

(d)                                 the Company shall continue to pay to the Executive an amount equivalent to his Annualized Compensation multiplied by two (2), payable in equal instalments in accordance with the Company’s payroll practices for a period of twenty-four (24) months (the “Severance Period”) following the date of termination;

 

(e)                                  the Company shall continue to pay its premiums to provide all Benefits (as existed on the date notice of termination is provided) until the earlier of (i) eighteen (18) months following the date of termination (not including any period of notice of pay in lieu thereof); and (ii) the date on which the 

 

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Executive secures comparable coverage through alternate employment to the extent permitted by any third party insurer; provided that, if the Company cannot continue any particular benefit pursuant to the terms of the relevant plan or policy and after due inquiry with any third party insurer, then the Company’s obligations shall be limited to the minimum period required pursuant to applicable employment standards legislation, and that in no event shall the Benefits be provided for less than such period;

 

(f)                                   except as required by statute and then only for the minimum statutory notice period, any other benefits or perquisites will cease effective the date of termination; and

 

(g)                                  long term incentive awards will vest and become immediately exercisable and will otherwise be determined in accordance with the terms of the applicable Plan it being understood that the Executive is not entitled to any damages or compensation in lieu of continued participation in the Plan following his last day of active and actual employment.

 

Section 4.5                                               Change of Control.

 

If this Agreement and the Executive’s employment is terminated by the Company without Cause pursuant to subsection 4.1(d) above or by the Executive for Good Reason pursuant to subsection 4.1(f) above, in either event only within the twelve (12) month period following a Change of Control, the following provisions shall apply:

 

(a)                                 the Company shall pay to the Executive the Basic Entitlements (with vacation pay calculated to the end of the statutory notice period);

 

(b)                                 the Company shall pay any Bonus awarded in respect of the year preceding the year of termination, but not yet paid;

 

(c)                                  the Company shall pay to the Executive his Bonus at Target for the year in which his employment terminates, pro-rated to the date of termination;

 

(d)                                 the Company shall provide the Executive with a lump sum payment equivalent his Annualized Compensation multiplied by two (2), payable within sixty (60) days following the date of termination;

 

(e)                                  the Company shall continue to pay its premiums to provide all Benefits (as existed on the date notice of termination is provided) until the earlier of (i) eighteen (18) months following the termination date (not including any period of notice of pay in lieu thereof); and (ii) the date on which the Executive secures comparable coverage through alternate employment to the extent permitted by any third party insurer; provided that, if the Company cannot continue any particular benefit pursuant to the terms of the relevant plan or policy and after due inquiry with any third party insurer, then the Company’s obligations shall be limited to the minimum period required pursuant to applicable employment standards legislation, and that in no event shall the Benefits be provided for less than such period;

 

(f)                                   except as required by statute and then only for the minimum statutory notice period, any other benefits or perquisites will cease effective the date of termination; and

 

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(g)                                  long term incentive awards will vest and become immediately exercisable and will otherwise be determined in accordance with the terms of the applicable Plan it being understood that the Executive is not entitled to any damages or compensation in lieu of continued participation in the Plan following his last day of active and actual employment.

 

Section 4.6                                               Mitigation.

 

The Executive is not required to mitigate any of the amounts payable under this Article 4.

 

Section 4.7                                               Transition Assistance.

 

If the Executive’s employment is terminated pursuant to Section 4.4 then during the Severance Period, the Executive shall be available to answer any questions relating to transitional matters.

 

Section 4.8                                               Release.

 

The parties agree that the provisions of Section 4.4 and Section 4.5 are fair and reasonable and that the payments, benefits and entitlements referred to in Section 4.4 and Section 4.5 hereof are reasonable estimates of the damages which will be suffered by the Executive in the event of the termination of this Agreement and of his employment with the Company. Except as otherwise provided in Section 4.4 or Section 4.5, the Executive shall not be entitled to any further notice of termination, payment in lieu of notice of termination, severance, damages, or any additional compensation whatsoever and the amounts payable are inclusive of any statutory payments. As a condition to receiving any payment pursuant to Section 4.4 or Section 4.5 hereof (except for the Company’s obligations pursuant to employment standards legislation), the Executive agrees to deliver a full and final release from all actions or claims in connection therewith in favour of the Company, the Company’s affiliates, and all of their respective officers, directors, trustees, shareholders, employees, attorneys, insurers and agents, such release to be in a form satisfactory to the Company and which will specifically include a non-disparagement provision (the “Release of Claims”). Further, to the extent that any of the payments, benefits and entitlements referred to in Section 4.4 and Section 4.5 hereof constitute “nonqualified deferred compensation” for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60th) day following the date of Executive’s termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60th) day, after which any remaining payments, benefits and entitlements referred to in Section 4.4 and Section 4.5 hereof shall thereafter be provided to Executive according to the applicable schedule set forth herein.

 

Section 4.9                                               Resignation as Director and Officer.

 

The Executive agrees that, upon termination of his employment for any reason whatsoever, the Executive shall thereupon be deemed to have immediately resigned any position the Executive may have as an officer, director or employee of the Company together with any other office, position or directorship which the Executive may hold with the Company or any of the Company’s subsidiaries, affiliates or related entities.  In such event, the Executive shall, at the request of the Company, forthwith execute any and all documents appropriate to evidence such resignations.  The Executive shall not be entitled to any payments in respect of such loss of office/directorship.

 

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Section 4.10                                        Return of Property.

 

All equipment, keys, pass cards, credit cards, software, material, written correspondence, memoranda, communication, reports, or other documents or property pertaining to the business of the Company used or produced by the Executive in connection with his employment, or in his possession or under his control, shall at all times remain the property of the Company. The Executive shall return all property of the Company in his possession or under his control in good condition forthwith upon any request by the Company or upon any termination of this Agreement and of the Executive’s employment (regardless of the reason for such termination).

 

ARTICLE 5
 EXECUTIVE’S COVENANTS

 

Section 5.1                                               Company Property.

 

The Executive acknowledges that all materials of the Company relating to the business and affairs of the Company, including, without limitation, all Developments, manuals, documents, reports, equipment, working materials and lists of customers or suppliers prepared by the Company or by the Executive in the course of the Executive’s employment are for the benefit of the Company and are and will remain the property of the Company.

 

Section 5.2                                               Confidential Information.

 

The Executive acknowledges that, in the course of his employment with the Company, he will have access to and acquire knowledge of Confidential Information.  The Executive acknowledges that the Confidential Information constitutes a unique, special and highly valuable asset of the Company, the unauthorized use or disclosure of which would be extremely detrimental to the Company.  Accordingly, the Executive covenants and agrees that, during his employment with the Company, and at all times subsequent to the cessation of his employment, for whatever reason, whether voluntary or involuntary, and whether with or without Cause, he will not, directly or indirectly, in any manner or for any purpose whatsoever, (i) except for the business purposes of the Company and as may be reasonably required to properly and loyally perform his employment duties hereunder, (ii) unless and to the extent he is specifically required to do so by any applicable laws or regulations, or any requirement of any governmental bodies or authorities or by court order (after giving the Company timely notice and sufficient opportunity to intervene), or (iii) except as authorized in writing by the Board of Directors of the Company prior to disclosure or use,  use, copy or reproduce or allow to be used, copied or reproduced any Confidential Information or disclose, transmit, transfer or communicate or allow to be disclosed, transmitted, transferred or communicated any Confidential Information to any Person.

 

Nothing in this Section 5.2 will preclude the Executive from disclosing or using Confidential Information of the Company, if:

 

(a)                                 such Confidential Information is available to the public or in the public domain at the time of such disclosure or use, without breach by the Executive of this Agreement; or

 

(b)                                 disclosure of such Confidential Information is required to be made by any law, regulation, governmental body, or authority or by court order provided that before disclosure is made, notice of the requirement is provided to the 

 

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Company, and to the extent possible in the circumstances, the Company is afforded an opportunity to dispute the requirement; or 

 

(c)                                  such Confidential Information becomes available to the Executive on a non-confidential basis from a source other than the Company, its customers,  clients or any Acquisition Target without breach of this Agreement.

 

The Executive acknowledges and agrees that the Confidential Information and all copies and embodiments thereof in whatever form, and all materials, documents, files and records relating thereto, are and will remain the exclusive property of the Company. The Executive covenants and agrees that, upon the request of the Company and, in any event, upon the cessation of his employment with the Company, for whatever reason, whether voluntary or involuntary, and whether with or without Cause, he will return to the Company immediately, without making or keeping any copies or reproductions thereof, in whatever form, all Confidential Information, however captured, stored or recorded, as well as all materials, documents, files, records, storage keys and other property of the Company which are in his possession, or under his custody or control.

 

Section 5.3                                               Intellectual Property

 

The Executive hereby acknowledges and agrees, that all ideas, concepts, research, information, discoveries, inventions, improvements, methods, formulae, designs, processes, programs, software, trade-marks, trade-names, copyrights, patents, products, computer objects or source codes, plans, writings or other intellectual property originated, conceived, discovered, made or first produced by him during the course of his employment with the Company, whether or not he did so using the property of the Company or on the Company’s premises, solely or with others, either in whole or in part, during the Executive’s working hours or otherwise (hereinafter referred to as the “Intellectual Property”) is and will be the sole and exclusive property of the Company or its assignees.  As such, the Executive hereby assigns to the Company, without any limitation whatsoever, any and all right, title and interest in and to the Intellectual Property that he may have.  Further, the Executive hereby waives, without any limitation whatsoever, to the benefit of the Company, its successors, assigns and licensees any moral rights which he may have with respect to the Intellectual Property for the term of such right.

 

In addition, and without any further compensation, the Executive will execute, at the request and expense of the Company, all applications, assignments and/or other instruments and will perform all acts which are deemed useful or necessary by the Company, including giving testimony, in order to apply for and obtain, renew, extend, or reissue patent, copyright or any other Intellectual Property protection, trade-marks or trade-names in Canada and/or foreign countries and/or in order to assign and convey to the Company all right, title and interest in and to the Intellectual Property.  The Executive will also co-operate, as deemed necessary by the Company, in connection with any judicial or administrative procedure or any type of litigation, actual or contemplated, with respect to the defence and/or the protection of the Intellectual Property.

 

Section 5.4                                               Corporate Opportunities.

 

Any business opportunities relating in any way to the business and affairs of the Company or any of its affiliates which become known to the Executive during his employment hereunder shall be fully disclosed and made available to the Company and shall not be appropriated by the Executive under any circumstance.

 

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ARTICLE 6
 RESTRICTIVE COVENANTS

 

The Executive acknowledges that, given his position and functions with the Company and his privileged relationships with the Company’s customers, suppliers, employees and Acquisition Targets, he would have an unfair advantage and be in a position to cause serious and irreparable harm to the Company in the event he were to interfere with the Company’s relationship with its Acquisition Targets, customers, suppliers or employees.  Accordingly, the Executive covenants and agrees to each of the following:

 

(1)                                 that, for so long as he is an employee of the Company and for a period of twelve (12) months immediately following the date on which he ceases to be an employee of the Company, for whatever reason, whether voluntary or involuntary, he will not either individually, in any manner whatsoever on his own account, or in partnership or jointly or in conjunction with or on behalf of any other Person, whether as an employee, principal, agent, officer, director, partner, consultant, advisor, distributor, dealer, contractor, trustee, lender, shareholder or in any manner or capacity whatsoever, directly or indirectly solicit or contact any Acquisition Target for the purpose of encouraging such Acquisition Target not to sell to the Company or to sell such Acquisition Target to any other Person;

 

(2)                                 that, for as long as he is an employee of the Company and for a period of twelve (12) months immediately following the date on which he ceases to be an employee of the Company, for whatever reason, whether voluntary or involuntary, he will not, either individually, on his own account, or in partnership or jointly or in conjunction with or on behalf of any other Person, whether as an employee, principal, agent, officer, director, partner, consultant, advisor, distributor, dealer, contractor, trustee, lender, shareholder (except for ownership of not more than five percent (5%) of the outstanding stock of any corporation or entity, the securities of which are traded on a regular basis on recognized securities exchanges or in over-the-counter markets, and in which the Executive’s involvement is purely passive), or in any manner or capacity whatsoever, directly or indirectly, anywhere in the Territory, be employed by, render services to, carry on or be engaged in, or be concerned with or be interested in or advise, lend money to, guarantee the debts or obligations of, or in any manner assist, advise or participate in the management, operation or control of any business (in whatever form) which competes, anywhere in the Territory, with the Business of the Company, in whole or in part;

 

(3)                                 that, for as long as he is an employee of the Company and for a period of twelve (12) months immediately following the date on which he ceases to be an employee of the Company, for whatever reason, whether voluntary or involuntary, he will not, directly or indirectly, in any manner whatsoever, on his own account, or on behalf of any other Person, solicit or contact any Customer or Prospective Customer of the Company for the purpose of (i) selling or providing to such Customer or Prospective Customer any product or service that is the same as or substantially similar to or competitive with any product or service sold, supplied or offered for sale by the Company at the applicable time and/or (ii) encouraging such Customer to cease doing business with the Company or reduce its level of business with the Company or encouraging such Prospective Customer not to do business with the Company or to reduce its expected level of business with the Company; or

 

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(4)                                 that, for as long as he is an employee of the Company and for a period of twelve (12) months immediately following the date on which he ceases to be an employee of the Company, for whatever reason, whether voluntary or involuntary, he will not, directly or indirectly, in any manner whatsoever, on his own account, or on behalf of any other Person, (i) solicit, induce, persuade or encourage, or otherwise cause or attempt to cause any employee, independent contractor or consultant to the Company to terminate, in whole or in part, his employment, contract or consulting agreement or relationship with, or to cease providing services to the Company and who was employed or engaged by the Company in the twelve (12) months prior to the termination of the Executive’s employment, for any reason.

 

Section 6.2                                               Fiduciary Obligations.

 

Nothing in this Article 6 is intended to limit the fiduciary obligations that the Executive owes to the Company.

 

ARTICLE 7
 NON-DISPARAGEMENT

 

Section 7.1                                               Non-Disparagement.

 

The Executive covenants and agrees that he shall not, during and following the Term, engage in any pattern of conduct that involves the making or publishing of written or oral statements or remarks (including, without limitation, the repetition or distribution of derogatory rumours, allegations, negative reports or comments) which are disparaging, deleterious or damaging to the integrity, reputation or goodwill of the business or the Company, its affiliates or its employees.

 

ARTICLE 8
 RECOGNITION

 

Section 8.1                                               Recognition.

 

(1)                                 The Executive expressly recognizes that Article 4, Article 5 and Article 6 of this Agreement are of the essence of this Agreement, and that the Company would not have entered into this Agreement without the inclusion of those provisions and the Executive’s commitment to abide by same.

 

(2)                                 The Executive acknowledges that he has had the benefit of legal counsel and has carefully considered the duration, Territory and the activities covered by the restrictions set out in Article 6, and he declares that he is satisfied with same.  Without limiting the generality of the foregoing, the Executive acknowledges and agrees that the provisions of Article 6 are drafted in sufficiently express terms and that, given his position and role within the Company, he has had and will continue to have sufficient personal knowledge so as to understand, at all relevant times, the full extent and scope of these restrictions

 

(3)                                 The Executive further recognizes and expressly acknowledges that the application of Article 5 and Article 6 of this Agreement will not have the effect of prohibiting the Executive from earning a living in a satisfactory manner in the event of the termination of this Agreement and the Executive’s employment.

 

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(4)                                 The Executive further recognizes and expressly acknowledges that Article 5 and Article 6 of this Agreement grant to the Company only such reasonable protection as is necessary to preserve the legitimate interests of the Company and the Executive equally recognizes, in this respect, that the description of the Business of the Company and the Territory are reasonable.

 

Section 8.2                                               Remedies.

 

The Executive hereby recognizes and expressly acknowledges that the Company would be subject to irreparable harm should any of the provisions of Article 5, Article 6 or Article 7 be infringed, or should any of the Executive’s obligations hereunder be breached by the Executive, and that damages alone will be an inadequate remedy for any breach or violation thereof and that the Company, in addition to all other remedies, will be entitled as a matter of right to equitable relief, including temporary or permanent injunction to restrain such breach.

 

Section 8.3                                               Suspension or Termination of Benefits and Compensation.

 

In the event that the Company determines that, without the express written consent of the Company, the Executive has breached any provisions of Article 5, Article 6 or Article 7 of this Agreement, the Company will have the right to suspend or terminate any or all remaining payments and/or benefits, if any, referenced in Section 4.4 of this Agreement subject to applicable minimum requirements contained in applicable employment standards legislation.  Such suspension or termination of payments and/or benefits will be in addition to and will not limit any and all other rights and remedies as set out in Section 8.2 of this Agreement that the Company may have against the Executive.

 

ARTICLE 9
 CONFLICTING OBLIGATIONS

 

Section 9.1                                               No Conflicting Obligations.

 

The Executive represents and warrants to the Company that:

 

(a)                                 there exists no agreement or contract, and he is not subject to any obligation, which restricts him from (i)  being employed by the Company; (ii)  performing the duties assigned to him pursuant to this Agreement; (iii) soliciting the business of any Person; or (iv) using information within his knowledge or control which may be useful in the performance of his duties for the Company;

 

(b)                                 in the performance of his duties for the Company, he shall not improperly bring to the Company or use any trade secrets, confidential information or other proprietary information of any third party; and

 

(c)                                  he shall not infringe the Intellectual Property of any third party.

 

Section 9.2                                               Suspension with Pay.

 

The Executive acknowledges that, during the course of the Executive’s employment, the Board may exercise its discretion to suspend the Executive with pay in furtherance of any internal investigation relating to the Executive’s conduct.

 

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ARTICLE 10
 ADDITIONAL SECTION 409A PROVISIONS

 

Notwithstanding any provision in this Agreement to the contrary:

 

Section 10.1                            If at the time of Executive’s termination of employment with the Company Executive is a “specified employee” as defined in Section 409A of the Code and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six months following Executive’s termination of employment with the Company (or the earliest date as is permitted under Section 409A of the Code without any accelerated or additional tax).

 

Section 10.2                            Any payment otherwise required to be made hereunder to Executive at any date as a result of the termination of Executive’s employment shall be delayed for such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the “Delay Period”).  On the first business day following the expiration of the Delay Period, Executive shall be paid, in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule set forth herein.

 

Section 10.3                            Each payment in a series of payments hereunder shall be deemed to be a separate payment for purposes of Section 409A of the Code.

 

Section 10.4                            To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Executive, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

 

Section 10.5                            While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Company be liable for any additional tax, interest, or penalties that may be imposed on Executive as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).  If any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause Executive to incur any additional tax or interest under Section 409A of the Code, the Company shall, after consulting with and receiving the approval of Executive, reform such provision in a manner intended to avoid the incurrence by Executive of any such additional tax or interest.

 

13

 

ARTICLE 11

 

GENERAL

 

Section 11.1                                        Notices.

 

Any notice, demand or other communication which is required or permitted by this Agreement to be given or made by a party hereto must be in writing and be sufficiently given if delivered personally or sent by pre-paid registered mail at the following addresses:

 

(a)                                 to the Company at:

 

GFL Environmental Inc.

100 New Park Place, Suite 500

Vaughan, Ontario M4K 0H4

 

Attention:                                         CEO
 Facsimile:                                         289-695-2552

 

(b)                                 to the Executive at:

 

To the last address provided by the Executive to the Company.

 

or at such other address as any party may from time to time advise the other party by notice in writing.  Every notice or other communication will be deemed to have been received, (i) on the date of receipt, if given by personal delivery, and (ii) the fifth Business Day after which it is mailed, if sent by registered mail.  Notwithstanding the foregoing, if a strike or lockout of postal service is in effect, or generally known to be impending, notice must be effected by personal delivery.

 

Section 11.2                                        Survival.

 

Notwithstanding the termination of this Agreement, each party shall remain bound by the provisions of this Agreement which by their terms impose obligations upon that party that extend beyond the termination of this Agreement.

 

Section 11.3                                        Further Assurances.

 

The parties shall, with reasonable diligence, do all things and provide all reasonable assurances as may be required to give effect to this Agreement and carry out its provisions, including providing such further documents or instruments reasonably required by any other party.

 

Section 11.4                                        Assignment.

 

Except as otherwise expressly provided herein, neither this Agreement nor any rights or obligations are assignable by the Executive.  The Company may assign this Agreement to any of its affiliates or subsidiaries or to any successor (whether direct or indirect, by purchase, amalgamation, arrangement, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company.  The Executive, by the Executive’s signature hereto, expressly consents to such assignment and, provided that 

 

14

 

such successor agrees to assume and be bound by the terms and conditions of this Agreement, all references to the “the Company” herein shall include its successor.

 

Section 11.5                                        Entire Agreement.

 

This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, including but not limited to the employment agreement between the Executive and GFL Environmental Holdings (US) Inc. dated October 9, 2018, understandings, negotiations and discussions, whether oral or written, of the parties hereto and there are no warranties, representations or other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein.

 

Section 11.6                                        Amendment and Waiver.

 

Except as permitted by the terms of any Plan, no supplement, modification, amendment or waiver of this Agreement will be binding unless executed in writing by both parties.  No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision (whether or not similar) nor will such waiver constitute a continuing waiver unless otherwise expressly provided.

 

Section 11.7                                        Compliance with Employment Standards Legislation.

 

In the event that the minimum standards set out in the applicable employment standards legislation (as may be amended from time to time) are more favourable to the Executive in any respect than a term or provision provided for in this Agreement, the Executive and the Company agree that the statutory provisions will apply in respect of that term or provision.

 

Section 11.8                                        Successors and Assigns.

 

This Agreement will enure to the benefit of and be binding upon the parties and their respective heirs, executors and administrators or successors and permitted assigns, as the case may be.

 

Section 11.9                                        Preamble/Recital.

 

The Executive and the Company acknowledge and agree that the provisions contained in the preamble/recital section of this Agreement forms part of this Agreement and may be relied upon by either party.

 

Section 11.10                                 Severability.

 

If any provision in this Agreement is determined to be invalid, void or unenforceable by the decision of any court of competent jurisdiction, which determination is not appealed or appealable for any reason whatsoever, the provision in question will not be deemed to affect or impair the validity or enforceability of any other provision of this Agreement and such invalid or unenforceable provision or portion thereof will be severed from the remainder of this Agreement.

 

Section 11.11                                 Independent Legal Advice.

 

The Executive acknowledges that he has been advised to obtain, and that he has obtained or has been afforded the opportunity to obtain, independent legal advice with respect to this Agreement and that he understands the nature and consequences of this Agreement.

 

15

 

Section 11.12                                 Governing Law.

 

This Agreement will be governed by and construed and enforced in accordance with North Carolina law, without giving effect to its conflicts of law principles. The parties further agree that the state or federal courts sitting in Wake County, North Carolina will have the sole and exclusive power to adjudicate any action or proceeding relating to this Agreement (collectively, the “Selected Courts”). Each of the parties hereto irrevocably and unconditionally consents to submit to the exclusive jurisdiction of the Selected Courts for any action or proceeding relating to this Agreement, acknowledges and agrees that the Selected Courts have personal jurisdiction over them, agrees not to commence any action or proceeding relating thereto except in the Selected Courts, and waives any forum or venue objections to the Selected Courts.

 

Section 11.13                                 Counterparts.

 

This Agreement may be executed by the parties in one or more counterparts, each of which when so executed and delivered will be deemed to be an original and such counterparts will together constitute one and the same instrument.

 

16

 

IN WITNESS WHEREOF the parties have executed this Agreement as of the Effective Date.

 

	
 
    	
GFL Environmental Holdings (US) Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

Agreed to and Accepted this     day of               , 2019.

 

	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
Gregory Yorston
    

 

17

 

SCHEDULE “A”
  DEFINITIONS

 

“Acquisition Target” means any Person which, with the Executive’s knowledge, was or has been engaged with any representative of the Company in discussions regarding the acquisition of the assets, or other ownership or equity interests thereof or joint venture arrangement therewith either (i) at the time of the cessation of the Executive’s employment with the Company or, if such employment has not ceased, at the time of the Executive’s alleged breach of the applicable provisions of this Agreement, and/or (ii) at any time in the twenty four (24) month period immediately preceding the cessation of the Executive’s employment or alleged breach of the applicable provisions of this Agreement by the Executive (and which discussions have not been abandoned by the Company at the relevant time).

 

“Annualized Compensation” means the Executive’s annual Base Salary plus the aggregate Bonus amounts received by the Executive in the two (2) years preceding the date of termination, divided by two (2).

 

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

 

“Business Day” means any day of the year which The Toronto Stock Exchange is open for business.

 

“Business of the Company” means the business of providing environmental services including non-hazardous solid waste collection, hauling, processing, transfer, disposal and/or recycling, hazardous and non-hazardous liquid and industrial waste (including without limitation used oils and other refinery based products) collection, hauling, processing, treatment, transfer, storage, resale, disposal and/or recycling, the provision of industrial site services and the design and installation of foundation and shoring systems and the excavation, transportation, treatment and disposal of soils as carried on by the Company during the term of the Executive’s employment or, in the case of termination, during the twenty-four (24) month period immediately preceding the Executive’s cessation from employment.

 

“Cause” means (a) any material neglect of duty or misconduct by the Executive in discharging his duties and responsibilities hereunder; (b) a material breach of the terms of this Agreement; (c) any act or failure to act by the Executive, the result of which is materially detrimental to the business or reputation of the Company; (d) repeated failure on the part of the Executive to perform his duties following written notification by the Chief Executive Officer of his failure to perform such duties; (e)  any material failure or refusal by the Executive to comply with the reasonable policies, rules and regulations of the Company; (f) the Executive’s conviction of any criminal offence where such conviction is materially detrimental to the business or reputation of the Company; (g) commission of an act of fraud, embezzlement, or misappropriation by the Executive of the Company’s property or assets; or (h) any other act or omission or series of acts or omissions by the Executive that would, pursuant to applicable employment standards legislation or at common law, permit the Company to, without notice or payment in lieu of notice, terminate his employment.

 

 

“Change of Control” means:

 

a)                   any merger, amalgamation or consolidation of the Company into or with another entity (except one in which the holders of the shares in the capital of the Company immediately prior to such merger, amalgamation or consolidation continue to hold at least a majority of the voting power of the shares of capital in the surviving or continuing corporation);

 

b)                   any sale of all or substantially all of the assets of the Company;

 

c)                    any other transaction or series of transactions pursuant to, or as a result of, which a single person (or group of affiliated persons) acquires (from the Company or directly from the shareholders of the Company) or holds shares of capital in the Company representing a majority of the Company outstanding voting power, including a Share Sale (as defined in the Shareholders Agreement), or

 

d)                   a sale (or multiple sales) of one or more subsidiaries of the Company (whether by way of merger, amalgamation, consolidation, reorganization or sale of all or substantially all assets or securities) which constitute all or substantially all of the consolidated assets of the Company and its subsidiaries; but not including an Initial Public Offering (as defined in the Shareholders Agreement).

 

“Company” includes all affiliates (as such term is defined in the Business Corporations Act (Ontario) and/or subsidiaries of GFL Environmental Inc. at the relevant time.

 

“Confidential Information” means collectively, confidential and proprietary information and trade secrets belonging to the Company or relating to the Company’s activities, including but not limited to, financial information, customer and supplier information, technical information, techniques, processes, specifications, business plans, strategies, budgets, commercial agreements, information pertaining to negotiations, operations, inventions (whether or not patentable), discoveries, designs, studies, research, projections, computer programs or software, technology and information pertaining to the Company’s customers, suppliers, employees and/or Acquisition Targets.  The Executive acknowledges and agrees that the foregoing are only examples of the types of trade secrets, confidential and proprietary information that may be made known to the Executive by reason of his employment with the Company, and is not to be construed as an exhaustive list of such information.

 

“Customer” means any Person to which the Company, to the knowledge of the Executive, sold, supplied or offered for sale any product or service, (i) at the time of cessation of the Executive’s employment with the Company or, if such employment has not ceased, at the time of the Executive’s alleged breach of the applicable provisions of this Agreement, and/or (ii) at any time in the period which was the twelve (12) month period immediately preceding the cessation of the Executive’s employment or alleged breach of the applicable provisions of this Agreement by the Executive.

 

“Developments” means any discovery, invention, design, improvement, concept, design, specification, creation, development, treatment, computer program, method, process, apparatus, specimen, formula, formulation, product, hardware or firmware, any drawing, report, memorandum, article, letter, notebook and any other work of authorship and ideas (whether or not patentable or copyrightable) and legally recognized proprietary rights (including, but not limited to, patents, copyrights, trademarks, topographies, know-how and trade secrets), and all records and tangible embodiments relating to the foregoing, that:

 

2

 

(a)                                 result or derive from the Executive’s employment with the Company or from the Executive’s knowledge or use of Confidential Information;

 

(b)                                 are conceived or made by the Executive (individually or in collaboration with others) in the discharge of his duties hereunder;

 

(c)                                  result from or derive from the use or application of the resources of the Company; or

 

(d)                                 relate to the business operations of the Company or the actual or demonstrably anticipated research and development by the Company.

 

“Disability” means in the event the Executive becomes physically or mentally ill or disabled to such an extent as to make the Executive unable to perform the duties associated with the Executive’s position on a consistent and substantive basis for a period of one hundred and twenty (120) consecutive days or an aggregate of one hundred and eighty (180) days in any twelve (12) month period, and such inability can reasonably be expected to continue beyond either such period.

 

“Good Reason” shall mean the occurrence of any of the following events without the Executive’s consent:

 

(i)                                     the relocation of the Executive’s principal workplace to a location that is more than fifty (50) kilometers from the Executive’s then current principal workplace;

 

(ii)                                  a reduction of 10% or more in the Executive’s Base Salary; or

 

(iii)                               a material diminution in the Executive’s job duties, responsibilities or authority.

 

Notwithstanding the foregoing, Executive’s voluntary termination shall not be deemed a resignation for “Good Reason” unless (x) the Executive provides the Company with written notice that the Executive believes that any event described in this definition has occurred (the “Good Reason Notice”), (y) the Good Reason Notice is given within the first ninety (90) days of the date the event occurred, and (z) the Company does not rescind or cure the conduct giving rise to such event within thirty (30) days of receipt by the Company of the Good Reason Notice (the “Cure Period”); and the Executive voluntarily terminates his employment within thirty (30) days following the end of the Cure Period.

 

“Person” means collectively or individually, any person, firm, business, corporation, partnership, joint venture, syndicate, association, governmental organization or authority, or any other type of entity or group, endowed or not with juridical personality

 

“Prospective Customer” means any person who in the twelve (12) months preceding the date of cessation of the Executive’s employment with the Company for any reason or, if such employment has not ceased, at the time of the Executive’s alleged breach of the applicable provisions of this Agreement,  was: (i) solicited by the Executive on behalf of the Company for any purpose relating to the Business; or (ii) solicited by the Company, with the Executive’s knowledge for any purpose relating to the Business.

 

3

 

“Shareholders Agreement” means the third amended and restated umbrella unanimous shareholders agreement dated as of September 25, 2019, as the same may be amended or amended and restated from time to time.

 

“Territory” means each of the following or the largest area permitted by applicable law:

 

a)             the States of Delaware, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, Colorado and Michigan;

 

b)             a 75-mile radius and 150-mile radius around the US Company’s principal corporate office where Executive is employed or engaged at the time of an alleged violation of Section 6(2) (or, if such alleged violation occurs after Executive’s employment or engagement has ended, a 75-mile radius and 150-mile radius around the US Company’s principal corporate office where Executive was employed or engaged as of the date of termination of Executive’s employment or engagement);

 

c)              any location where the Company or any of its affiliates is then conducting Business of the Company or has conducted (or has actively taken any steps to conduct) Business of the Company at any time (whether before or after execution of this Agreement) during the twelve (12) months immediately preceding the date of the alleged violation of Section 6(2) (or, if such alleged violation occurs after Executive’s employment or engagement has ended, the twelve (12) months immediately preceding the date of termination of Executive’s employment or engagement);

 

d)             a 75-mile radius and 150-mile radius surrounding such location(s) in which the Company or its affiliates is then conducting Business of the Company or has conducted (or has actively taken any steps to conduct) Business of the Company at any time (whether before or after execution of this Agreement) during the twelve (12) months immediately preceding the date of the alleged violation of Section 6(2) (or, if such alleged violation occurs after Executive’s employment or engagement has ended, a 75-mile radius and 150-mile radius surrounding such location(s) in which the Company or its affiliates was conducting Business of the Company or had conducted (or had actively taken any steps to conduct) Business of the Company at any time during the twelve (12) months immediately preceding the date of termination of Executive’s employment or engagement); and

 

e)              a 75-mile radius and 150-mile radius surrounding such location(s) where Executive primarily worked or conducted business on behalf of the Company or any of its affiliates at any time (whether before or after execution of this Agreement) during the twelve (12) months immediately preceding the date of the alleged violation of Section 6(2) (or, if such alleged violation occurs after Executive’s employment or engagement has ended, a 75-mile radius and 150-mile radius surrounding such location(s) where Executive primarily worked or conducted business on behalf of the Company or any of its affiliates at any time during the twelve (12) months immediately preceding the date of termination of Executive’s employment or engagement).

 

4Exhibit 10.1

 

RETIREMENT AGREEMENT AND RELEASE

 

This Retirement Agreement
and Release (this “Agreement”) is made this 7th day of January, 2020 by and between A.M.
Castle & Co. (the “Company”) and Steven W. Scheinkman (the
 “Employee,” and together with the Company, the “Parties”). This Agreement is a mutual general release of
claims executed by the Parties as a condition to Employee’s eligibility for supplemental retirement benefits and to set forth
certain terms regarding Employee’s retirement from the Company.

 

The Parties hereby
agree as follows:

 

1.           The
Employee affirms his retirement as Chief Executive Officer of the Company, effective as of 12:01 a.m. Eastern time, January 1,
2020 (the “Retirement Date”), and acknowledges and agrees that the Employee’s employment with the Company ends,
effective as of 12:01 a.m. Eastern time, March 31, 2020 (the “Employment End Date”). From the Retirement Date to the
Employment End Date, the Employee will remain employed in the role of Senior Advisor with the same base salary he was earning
as of the Retirement Date, which salary will be payable, less all normal withholdings for federal and state income taxes,
payroll taxes and authorized deductions, during regularly scheduled and customary payroll periods.

 

2.           Notwithstanding
Section 1, the Parties have agreed that Employee will resign as Chairman of the Board, but will remain a Director of the Company
until the Company’s next annual meeting, at which time a suitable replacement may be found or Employee may again be voted
in as a Director of the Company.

 

a.          
For so long as Employee remains a Director after the Retirement Date, Company agrees to compensate Employee in the same
manner as the Company compensates any other non-employee Director; and

 

b.         
The Parties agree any announcement made by the Company relating to Employee’s retirement or the appointment of a new
Chief Executive Officer or Chairman of the Board shall be consistent with the contents of Section 2 of this Agreement.

 

c.          
After the Retirement Date, at the request and direction of the Chief Executive Officer or the Chairman of the Board, and
as agreed by the Employee, the Employee may provide independent consulting services above and beyond his responsibilities and contributions
as a Director. Except as may be agreed otherwise in writing, the Employee will be paid a rate of $350.00 per hour for such consulting
services.

 

3.           The Employee and the Company acknowledge and agree that the Amended and Restated Employment Agreement, dated May 15, 2017
(the “Employment Agreement”), by and between the Parties, will terminate effective as of the Retirement Date (except
to the extent the provisions thereof survive expiration or termination).

 

4.           In exchange for the general release of claims and other good and valuable consideration, the Company agrees to provide certain
retirement benefits (the “Retirement Benefits”) as described below in this paragraph 4, as well as paragraphs 1 and
5 herein:

 

a.         
The Company will pay the Employee Two Hundred Twenty-Five Thousand Dollars ($225,000.00) (equal to twenty-seven and seven-tenths
percent (27.7%) of its target) for his 2019 Short-Term Incentive Plan (“2019 STIP”) compensation. The 2019 STIP, less
all normal withholdings for federal and state income taxes, payroll taxes and authorized deductions, will be paid in a lump sum
on the earlier of the date the 2019 STIP awards due to other executive officers of the Company are paid or the Employment End Date.:

 

    	 	 	Page 1 of 8

     

    

 

The Employee’s receipt
of the 2019 STIP is conditional upon: (a) the Employee’s delivery of a fully-executed copy of this Agreement; and (b) the
expiration of the seven-day revocation period described in Section 14 below. The Company and the Employee acknowledge and
agree that, other than the 2019 STIP, the Employee will not receive, and will not be eligible for any short-term or long-term compensation
under the Company’s Management Incentive Plan, any Short-Term Incentive Plan or any other incentive compensation plan for
any period before or after the Retirement Date.

 

b.         
The Company will continue the Employee’s and his spouse’s current medical, dental and vision coverage (the “Retirement
Medical Benefits”) until December 31, 2020. The Company will be responsible for, and will pay to the insurance providers,
both the Company portion and the Employee portion of the contributions for the Retirement Medical Benefits beginning on the Employment
End Date and ending December 31, 2020. The Employee will be responsible for his portion of income or other taxes, if any, that
may be due by Employee in relation to the Company’s provision of Retirement Medical Benefits, including any taxable income
generated by the Company’s payment of the Employee portion of the contributions of the Retirement Medical Benefits. The Employee’s
receipt of the Retirement Medical Benefits is conditional upon: (a) the Employee’s delivery of a fully-executed copy of this
Agreement; and (b) the expiration of the seven-day revocation period described in Section 14 below.

 

At the time
Retirement Medical Benefits terminate as set forth herein, the Employee will be eligible for COBRA continuation rights. The Employee
will be advised separately of his COBRA continuation rights in a separate mailing. The Employee will also be advised separately
of his rights, if any, under state and federal law to insurance continuation and/or conversion. The Company and the Employee acknowledge
and agree that, other than the Retirement Medical Benefits as provided above, and any other benefits the Company provides to its
Directors, the Employee will not be eligible to participate in the Company’s 401(k), Supplemental Executive Retirement Plan
(“SERP”) and other benefit plans after March 31, 2020. To the extent and within the timeframes required by law, the
Company will notify Employee of his options regarding his retirement accounts, including but not limited to 401k and SERPA plans.

 

c.          
All stock awards and notes that have been granted to the Employee as set forth in the A.M. Castle Co. 2017 Management Incentive
Plan Award Agreement (Tranche A) between the Parties dated August 31, 2017, will vest in full as of the Retirement Date.

 

d.          
The Company will continue to pay the Employee’s monthly living allowance of $7,200 plus tax equalization as previously
calculated through January 31, 2020. However, Employee’s monthly car and cell phone allowances shall terminate as of the
Retirement Date.

 

e.          
The Employee will be entitled to retain his Company-provided iPad, provided he allows the Company’s IT Department
to delete or remove any Company-licensed software and Company information (other than Diligent software required for use as a Director
of the Company) as soon as practicable, but no later than January 14, 2020.

 

f.          
Employee will be reimbursed all expenses incurred prior to the Employment End Date and submitted to, and approved by, the
Company in accordance with current Company policy and procedure.

 

g.          
The Parties acknowledge and agree that the Retirement Benefits described in this Agreement will be provided by the Company
to the Employee regardless of whether the Employee’s employment with the Company terminates prior to the Employment End Date
for any reason.

 

    	 	 	Page 2 of 8

     

    

 

5.           The Employee has, or will be paid, in accordance with the Company’s standard policies and procedures, all base salary
and all accrued but unused vacation, subject to all normal withholdings for federal and state income taxes, payroll taxes and authorized
deductions. The Parties acknowledge and agree that the Employee’s accrued vacation as of the Retirement Date is 240 hours
and that the Employee will accrue, in accordance with the Company’s standard policies and procedures, an additional 60 hours
between the Retirement Date and the Employment End Date. Employee will not take any vacation time between the Retirement Date and
the Employment End Date and after the Employment End Date in accordance with the Company’s policies and procedures will be
paid for the 300 hours of vacation time then accrued. The Parties acknowledge and agree that the Employee will not be required
to use accrued vacation days prior to the Employment End Date.

 

6.           The
Employee acknowledges and agrees that the amounts described in Sections 1, 4 and 5 above represent all remaining and outstanding
financial obligations from the Company to the Employee as of and up to the Employment End Date, including without limitation,
accrued wages, bonuses, commissions, earned but unused vacation, severance, ownership rights and any other form of compensation
or benefits (and any exceptions to the foregoing). The Company acknowledges and agrees the compensation due to Employee from the
Retirement Date to the Employment End Date is payable whether or not Employee is terminated prior to the Employment End Date.
In the event Employee is terminated after the Retirement Date but before the Employment End Date, the Company shall pay any remaining
amounts due to Employee in a lump sum, less applicable withholdings for federal and state income taxes, payroll taxes, and authorized
deductions, on the next payroll following his termination or in accordance with the Company’s policies and procedures. The
amounts described in Sections 1, 4, and 5 herein shall remain free from any right of setoff the Company may assert to attempt
against said amounts. The Employee and the Company acknowledge that the Employee may receive additional compensation subsequent
to the Employee’s Retirement Date and Employment End Date for his service as a director of the Company and/or as a consultant
to the Company.

 

7.           Notwithstanding any provision of this Agreement to the contrary, if, at the time of Employee’s termination of employment
from the Company, it determines he is a “specified employee” as defined in Section 409A of the Internal Revenue Code,
and one or more of the payments or benefits received or to be received hereunder would constitute non-qualified deferred compensation
subject to Section 409A, no such payment or benefit will be provided under this Agreement until the earlier of (a) the date that
is six (6) months following the Employment End Date and (b) Employee’s death. The provisions of this Section 7 shall apply
to the extent required to avoid Employee’s incurrence of any penalty tax or interest under Section 409A.

 

8.           In consideration of the payments and benefits to be made under this Agreement, the sufficiency of which Employee acknowledges,
Employee, with the intention of binding Employee and Employee’s heirs, executors, administrators and assigns, does hereby
release, remise, acquit and forever discharge the Company and each of its subsidiaries and affiliates (the “Company Affiliated
Group”), their present and former officers, directors, employees, shareholders, agents, attorneys, employees and employee
benefit plans (and the fiduciaries thereof), and the successors, predecessors and assigns of each of the foregoing (collectively,
the “Company Released Parties”), of and from any and all claims, actions, causes of action, complaints, charges, demands,
rights, damages, debts, sums of money, accounts, financial obligations, suits, expenses, attorneys’ fees and liabilities
of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether
now known or unknown, suspected or unsuspected, that Employee, individually or as a member of a class, now has, owns or holds,
or has at any time heretofore had, owned or held, arising on or prior to the date hereof, against any Company Released Party that
arises out of, or relates to, the Employment Agreement, Employee’s employment with the Company or any of its subsidiaries
and affiliates, or any termination of such employment, including claims (i) for severance or vacation benefits, unpaid wages, salary
or incentive payments, (ii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional
infliction of emotional harm or other tort, (iii) for any violation of applicable federal, state and local labor and employment
laws (including, without limitation, all laws concerning unlawful and unfair labor and employment practices), civil rights legislation
and disability legislation and (iv) for employment discrimination under any applicable federal, state or local statute, provision,
order or regulation, and including, without limitation, any claim under Title VII of the Civil Rights Act of 1964 (“Title
VII”), the Civil Rights Act of 1988, the Family and Medical Leave Act, the Fair Labor Standards Act, the Americans with Disabilities
Act (“ADA”), the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Age Discrimination
in Employment Act (“ADEA”), and any similar or analogous state statute, excepting only:

 

    	 	 	Page 3 of 8

     

    

 

a.          
all rights and entitlements Employee may have under this Agreement to receive the Retirement Benefits;

 

b.         
rights that Employee may have to vested benefits under the Company’s Management Incentive Plan and any awards granted
to Employee thereunder;

 

c.          
claims for accrued benefits under any health, disability, retirement, life insurance or other, similar employee benefit
plan (within the meaning of Section 3(3) of ERISA) of the Company Affiliated Group; and

 

d.          
rights to indemnification Employee has or may have under the by-laws or certificate of incorporation of any member of the
Company Affiliated Group or as an insured under any director’s and officer’s liability insurance policy now or previously
in force.

 

WITHOUT LIMITING THE FOREGOING, THE
EMPLOYEE SPECIFICALLY WAIVES AND RELEASES THE COMPANY RELEASED PARTIES FROM ALL CLAIMS HE MAY HAVE AS OF THE DATE HE SIGNS THIS
AGREEMENT REGARDING CLAIMS OR RIGHTS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, 29 U.S.C. §621
(“ADEA”).

 

The Employee agrees and understands
that any claims he may have against any of the Company Released Parties whether at law, in equity or under the aforementioned statutes
or any other federal, state or local law, ordinance, rule or regulation, are effectively waived and released by this Agreement.
The Employee represents that he knows of no claim that he has that has not been released by this Agreement. This release does not
extend to claims that as a matter of law cannot be waived. The Employee acknowledges and understands that this Agreement is intended
to prevent him from making any claim against the Company Released Parties regarding any matter or incident in any way relating
to or arising from the employment relationship or its termination that occurs up to the date the Employee executes this Agreement.

 

9.           In consideration of the releases made by Employee to the Company Released Parties under this Agreement, the sufficiency
of which the Company acknowledges, Company, with the intention of binding Company and the Company Affiliated Group’s heirs,
present and former officers, directors, agents, attorneys, employees, and assigns, does hereby release, remise, acquit and forever
discharge Employee, his heirs executors, administrators, and assigns, of and from any and all claims, actions, causes of action,
complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial obligations, suits, expenses, attorneys’
fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated
or otherwise and whether now known or unknown, suspected or unsuspected, that the Company or the Company Affiliated Groups, now
has, owns or holds, or has at any time heretofore had, owned or held, arising on or prior to the date hereof, against Employee
that arises out of, or relates to, the Employment Agreement or Employee’s employment with the Company or the Company Affiliated
Groups. Notwithstanding anything herein to the contrary, the foregoing shall not release, remise, acquit or discharge claims, actions,
causes of action, complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial obligations, suits,
expenses, attorneys’ fees and liabilities arising out of, or relating to, any fraud, intentional, willful or grossly negligent
violations of law or other matters that cannot be released, waived or discharged by the Company as a matter of law.

 

    	 	 	Page 4 of 8

     

    

 

10.         For the avoidance of doubt, nothing in this Agreement shall release Company from its continuing obligations under the Employment
Agreement that survive a termination of the Employment Agreement.

 

11.         The Parties acknowledge and agree that this Agreement is not to be construed in any way as an admission of any liability
whatsoever by either of the Parties, any such liability being expressly denied.

 

12.         The release provided by the Parties in this Agreement applies to any relief no matter how called, including, without limitation,
wages, back pay, front pay, compensatory damages, liquidated damages, punitive damages, damages for pain or suffering, costs, and
attorneys’ fees and expenses.

 

13.         Employee specifically acknowledges that Employee’s acceptance of the terms of his release provided in this Agreement
is, among other things, a specific waiver of Employee’s rights, claims and causes of action under Title VII, ADEA, ADA and
any state or local law or regulation in respect of discrimination of any kind.

 

14.         Employee acknowledges that Employee has been given a period of twenty-one (21) days to consider whether to execute this
Agreement. If Employee accepts the terms hereof and executes this Agreement, Employee may thereafter, for a period of seven (7)
days following (and not including) the date of execution, revoke this Agreement. If no such revocation occurs, this Agreement shall
become irrevocable in its entirety, and binding and enforceable against Employee, on the day next following the day on which the
foregoing seven-day period has elapsed. If Employee does not timely execute this Agreement, or if such a revocation occurs, Employee
shall irrevocably forfeit any right to the Retirement Benefits, but the remainder of the Employment Agreement shall continue in
full force.

 

15.         Employee acknowledges and agrees that Employee has not, with respect to any transaction or state of facts existing prior
to the date hereof, filed any complaints, charges or lawsuits against any Company Released Party with any governmental agency,
court or tribunal. Nothing herein shall limit or impede Employee’s right to file or pursue an administrative charge with,
or participate in, any investigation before the Securities & Exchange Commission, the Equal Employment Opportunity Commission,
or any other local, state, or federal agency, and/or any causes of actions that by law Employee may not legally waive. The Company
acknowledges and agrees that it has not, with respect to any transaction or state of facts existing prior to the date hereof, filed
any complaints, charges or lawsuits against Employee with any governmental agency, court or tribunal.

 

16.         Employee acknowledges that Employee has been advised to seek, and has had the opportunity to seek, the advice and assistance
of an attorney with regard to this Agreement, and has been given a sufficient period within which to consider this Agreement.

 

17.         The Parties acknowledge that this Agreement relates only to claims that exist as of the date of this Agreement.

 

18.         Employees acknowledges that throughout his employment, he was fully and appropriately compensated for all hours worked in
accordance with the Fair Labor Standards Act and other applicable law, if any; that he has been provided with all leave to which
he is or was entitled under Company policy and applicable law, including but not limited to the Family and Medical Leave Act; and
he has not suffered a work-related injury that he has not properly disclosed to the Company.

 

19.         Employee acknowledges that the Retirement Benefits that Employee is receiving in connection with this Agreement and Employee’s
obligations under this Agreement are in addition to anything of value to which Employee is entitled from the Company.

 

    	 	 	Page 5 of 8

     

    

 

20.         The Employee further acknowledges that he has been provided notice of all rights under the Older Workers’ Benefit
Protection Act, including: (a) Employee has received a release and waiver of claims and his waiver of claims is knowing and voluntary;
(b) the waiver and release of claims is written in a manner understood by Employee; (c) the waiver and release of claims specifically
refers to rights or claims under the Age Discrimination and Employment Act; (d) Employee does not waive rights or claims that may
arise after the date this Agreement is executed; (e) Employee is waiving any rights or claims based on consideration that he is
not otherwise legally entitled; (f) Employee is being given at least twenty-one (21) days within which to consider the Agreement
and a seven (7) day revocation period; and (g) Employee has been advised by this Agreement to consult with an attorney prior to
executing this Agreement.

 

21.         The Parties hereby covenant not to sue or to institute or cause to be instituted any claim or action of any kind or nature
(except to enforce this Agreement) in any federal, state or local agency or court against any of the Released Parties or Employee
based upon or relating to any of the claims released and forever discharged pursuant to this Agreement. The Parties acknowledge
and agree that the releases and covenant not to sue are essential and material terms of this Agreement and that, without such release
and covenant not to sue, no agreement would have been reached by the Parties. If either of the Parties breaches this covenant not
to sue, the breaching party hereby agrees to pay all of the reasonable costs and attorneys’ fees actually incurred by the
non-breaching party in defending against such claims, demands or causes of action, together with such and further damages as may
result, directly or indirectly, from that breach. Nothing in this covenant not to sue is intended to preclude the Employee from
challenging the validity of this Agreement under the Older Worker Benefit Protection Act, with respect to claims under the ADEA,
and the Company shall not be entitled to recover any consideration paid under this Agreement, damages or its attorneys’ fees
and costs resulting from such challenge.

 

22.         Nothing in this Agreement shall interfere with the Employee’s right to file a charge, cooperate or participate in
an investigation or proceeding conducted by the Equal Employment Opportunity Commission, or other federal or state regulatory or
law enforcement agency. However, the consideration provided to the Employee in this Agreement shall be the sole relief provided
to Employee for the claims that are released by him herein. To the maximum extent permitted by law, the Employee agrees that he
will not seek and waives any right to accept any relief or award from any charge or action against the Released Parties before
any federal, state, or local administrative agency or federal, state or local court whether filed by the Employee or on the Employee’s
behalf with respect to any claim or right released in this Agreement.

 

23.         The Employee acknowledges that he remains subject to and bound by the confidentiality, provisions of the Employment Agreement.
The Employee represents that he has delivered to the Company, or as soon as practicable, but no later than February 28, 2020, will
deliver to the Company, or will securely and completely destroy all Company property, in whatever format the same may be (including
any and all tangible property and digital records or files), including without limitation credit cards, keys, equipment, supplies,
business records, reports, data, drawings, operating procedures, specifications, agreements, computer equipment, customer lists
or other materials or information acquired by the Employee in the course of his employment with the Company and agrees that he
will not retain in his possession any such property. Notwithstanding the foregoing, with respect to the Employee’s access
badge(s), keys, credit card(s), and Company-provided laptop and iPad, Employee agrees to return the same to the Company’s
HR or IT department by no later than Tuesday, January 14, 2020. In the case of the iPad, the device shall be reconfigured appropriate
with his new role with the Company and returned to Employee for Company-related use during the period of continued service on the
Company’s Board of Directors. The Employee acknowledges and agrees that all records, files, lists, including computer generated
lists, data, drawings, documents, equipment, information and similar items relating to the Company’s business that the Employee
generated or received from the Company remains the Company’s sole and exclusive property. The Employee further acknowledges
and agrees that all information and material of a confidential and proprietary nature obtained by the Employee or made available
to the Employee during the course of his employment with the Company remains the Company’s sole and exclusive property and
the Employee agrees not to disclose such information or to use the same for any purpose whatsoever without the express prior written
consent of the Company, which it may withhold in its sole discretion.

 

    	 	 	Page 6 of 8

     

    

 

24.         Employee agrees that, upon request of the Company from time to time and at any time, he will cooperate with and assist the
Company in any investigations, proceedings, or actions relating to or in connection with his employment with the Company. Company
agrees to reimburse Employee for all reasonable expenses incurred by Employee in cooperating and assisting with any such investigation,
proceeding, or action.

 

25.         Each provision hereof is severable from this Agreement, and if one or more provisions hereof are declared invalid, the remaining
provisions shall nevertheless remain in full force and effect. If any provision of this Agreement is so broad, in scope, or duration
or otherwise, as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

26.         This Agreement constitutes the complete agreement of the Parties in respect of the subject matter hereof and shall supersede
all prior agreements between the Parties in respect of the subject matter hereof except to the extent set forth herein. For the
avoidance of doubt, however, nothing in this Agreement shall constitute a waiver of any Company Released Party’s right to
enforce any obligations of Employee under the Employment Agreement that survive the Employment Agreement’s termination, including
without limitation, any non-competition covenant, non-solicitation covenant or any other restrictive covenants contained therein.

 

27.         The failure to enforce at any time any of the provisions of this Agreement or to require at any time performance by another
party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect the validity
of this Agreement, or any part hereof, or the right of any party thereafter to enforce each and every such provision in accordance
with the terms of this Agreement.

 

28.         Notwithstanding anything to the contrary herein, this Agreement shall be void ab initio if the Company fails to provide
the Retirement Benefits, or any other benefit provided herein, to Employee.

 

29.         This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument. Signatures delivered by facsimile shall be deemed effective for all purposes.

 

30.         This Agreement shall be binding upon any and all successors and assigns of Employee and the Company.

 

31.         Except for issues or matters as to which federal law is applicable, this Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Illinois without giving effect to the conflicts of law principles thereof.
Employee hereby submits to the jurisdiction of any court (state or federal) sitting in the State of Illinois for the purpose of
any lawsuit concerning the construction or enforcement of this Agreement and further agrees he will neither file nor seek to have
any lawsuit removed or transferred to any other forum. In the event that any clause, paragraph, or subparagraph of this Agreement
shall be determined to be contrary to governing law or otherwise unenforceable, all portions of this Agreement shall be enforced
to the maximum extent permitted by law.

 

32.         If either party brings a claim for breach of the terms of this Agreement, the prevailing party shall be entitled to its
reasonable attorneys’ fees and expenses incurred in prosecuting or defending such an action.

 

***********************

 

    	 	 	Page 7 of 8

     

    

 

PLEASE READ CAREFULLY.
THIS RETIREMENT AGREEMENT AND RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

 

	A.M. Castle & Co.	 	Steven W. Scheinkman
	 	 	 
	By: 	/s/ Jeremy Steele	 	/s/ Steven W. Scheinkman
	 	 	 
	Its: 	SVP, General Counsel & Secretary	 	(Employee signature)
	 	 	 
	Date: 	January 7, 2020	 	Date:	January 7, 2020

 

    	 	 	Page 8 of 8

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