Document:

Employment Agreement

 Exhibit 10.17 

 

			
	 

	  	
	  	1845 Walnut Street •Suite 1000
	  	Philadelphia, PA 19103

 July 3, 2012 
 Mr. Patrick J. McDonie 
 2648 E. 37th Street 
 Tulsa, OK 74105 
  

	 	Re:	Employment Terms 

 Dear Patrick:

 This letter (the “Agreement”) sets forth the arrangements that we have agreed to regarding your employment
by Atlas Energy, L.P. or its successor (“ATLS”). The terms and conditions of your employment are as follows: 

1. Titles, Positions and Location. You will serve as Senior Vice President and Chief Operating Officer of Atlas Pipeline
Partners GP, LLC (“APL GP”), which is the general partner of Atlas Pipeline Partners, L.P. (“APL”). ATLS, APL GP and APL are collectively referred to as the “Company.” You will be principally based
at APL’s offices in Tulsa, Oklahoma. You will visit locations of APL as is appropriate and necessary to carry out your duties and responsibilities as the Chief Operating Officer. 

2. Services. You will serve the Company and its affiliates diligently, competently, and to the best of your ability
during the Employment Period (as defined below). You will devote substantially all of your working time and attention to the business of the Company and its affiliates, and you will not undertake any other duties which conflict with your
responsibilities to the Company and its affiliates. The Company shall provide you with sufficient support, capital and personnel to assist you in performing and discharging your duties. You shall report to the President and Chief Executive Officer
of APL GP. You will render such services as may reasonably be required of you by APL GP to accomplish the business purposes of the Company. 
 3. Employment Term. The term of your employment hereunder shall commence at a mutually agreeable date on or before July 23, 2012 (the “Employment Effective Date”) and
shall continue for a period of two (2) years thereafter (the “Initial Employment Term”). After the Initial Employment Term, the term of your employment shall automatically renew for successive one (1) year periods (each, a
“Renewal Term”), unless either party delivers written notice, not less than sixty (60) days prior to the end of the Initial Employment Term or Renewal Term then in effect, as the case may be, of its intention not to renew the
term of your employment. The period commencing on the Employment Effective Date and ending on the date on which the Initial Employment Term or the then current Renewal Term terminates is referred to as the “Employment Term.” The
period during the Employment Term during which you are employed and providing services under this Agreement is referred to as the “Employment Period.” 

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 4. Compensation. Your compensation shall be as follows: 

(a) Base Salary. During the Employment Period, you shall receive an annual base salary (“Annual Base Salary”) of
Three Hundred Fifty Thousand Dollars ($350,000). The Annual Base Salary shall be subject to review and adjustment by the Compensation Committees of ATLS and APL GP (collectively, the “Compensation Committee”). The Annual Base Salary
shall be payable in accordance with ATLS’s regular payroll practices for its senior executives, as in effect from time to time. 
 (b) Discretionary Annual Bonus. During the Employment Period, you will be eligible for a discretionary annual bonus, as determined in the sole discretion of the Compensation Committee. Your target
bonus for each calendar year during the Employment Period will be established at 100% of the Annual Base Salary (“Target Bonus”). Notwithstanding anything to the contrary in the incentive compensation plan pursuant to which a
discretionary annual bonus is payable, any annual bonus that you shall become entitled to receive hereunder shall be deemed earned as of December 31 of the calendar year in respect of which such annual bonus opportunity is awarded if you are
employed by ATLS on such December 31, and shall be paid on or before March 15 of the following calendar year. For the 2012 calendar year, your target bonus shall be based on the Target Bonus multiplied by a fraction, the numerator of which
is the number of days in the Employment Period in the 2012 calendar year and the denominator of which is 365; provided, however, that the annual bonus paid for calendar year 2012 shall not be less than $200,000, if you continue in employment through
December 31, 2012. 
 (c) Equity-Based Compensation. 

(i) Upon approval of the Compensation Committee, on or as soon as practicable following the Employment Effective Date, you
shall be granted 70,000 Phantom Units (“APL Units”) and corresponding Distribution Equivalents under the Atlas Pipeline Partners, L.P. 2010 Long-Term Incentive Plan, as amended (the “APL LTIP”), subject to the terms
and conditions of the APL LTIP and the grant letter evidencing such APL Units and corresponding Distribution Equivalents. Subject to your continued employment on each vesting date, the APL Units shall vest as to 25% of the APL Units on each of the
first four anniversaries of the date of grant, subject to the terms of the grant letter. 
 (ii) Upon approval of
the Compensation Committee, on or as soon as practicable following the Employment Effective Date, you shall be granted 20,000 Phantom Units and corresponding Distribution Equivalents (“ATLS Units”) under the Atlas Energy, L.P. 2010
Long-Term Incentive Plan (the “ATLS LTIP”), subject to the terms and conditions of the ATLS LTIP and the grant letter evidencing the ATLS Units and corresponding Distribution Equivalents. Subject to your continued employment with

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ATLS on each vesting date, the ATLS Units shall vest as to 25% of the ATLS Units on the third anniversary of grant and as to 75% of the ATLS Units on the fourth anniversary of the date of grant,
subject to the terms of the grant letter. The ATLS Units and APL Units are referred to collectively as the “Initial Equity Awards.” 
 (iii) During the Employment Period, you also will be eligible to receive incentive equity-based compensation in the form of options to purchase units, grants of restricted units, phantom units and/or
other forms of equity-based compensation in ATLS or APL as such awards may be made by the ATLS Board and the APL Board, respectively, acting in their sole discretion. Such incentive equity-based compensation shall be subject to such restrictions and
vesting as is provided under the ATLS LTIP and the APL LTIP, or any successor plans thereto, as applicable. 
 (d)
Benefits. During the Employment Period, you shall be entitled to receive the following employment-related benefits: 
 (i) Participation in Benefit Plans. (1) You shall be entitled to participate in all applicable incentive, savings, and retirement plans, practices, policies, and programs of ATLS to the extent
they are generally available to other senior officers, directors or executives of ATLS and (2) you and/or your family, as the case may be, shall be eligible for participation in, and shall receive all benefits under, all applicable welfare
benefit plans, practices, policies, and programs provided by ATLS, including, without limitation, medical, prescription, dental, disability, sickness benefits, employee life insurance, accidental death, and travel insurance plans and programs, to
the same extent as other senior officers, directors or executives of ATLS. Nothing herein shall preclude ATLS from amending or terminating any benefit plan, program or policy, in its sole discretion, after the Employment Effective Date. 

(ii) Expenses. ATLS shall pay, or reimburse you for, all reasonable and necessary expenses incurred in carrying out
your duties under this Agreement during the Employment Period in accordance with ATLS policies. 
 (iii) Paid
Time Off. Paid time off (“PTO”) is to be used for vacation, illness and other reasons which would necessitate your being unable to work. In 2012, you will be eligible for 20 PTO days. Beginning in 2013, you will be eligible to
accrue 25 PTO days per year. 
 (iv) Car Allowance. You will be paid a monthly car allowance in the amount
of $750.00 per month, subject to the adjustment in accordance with the Company’s policies. 
 (v) Country
Club Dues. You will be entitled to reimbursement of monthly dues at one country club in the Tulsa, Oklahoma metropolitan area. 

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 5. Confidential Information; Non-Solicitation; Non-Competition; Non-
Disparagement. 
 (a) All confidential information or trade secrets which you may obtain relating to the business of the
Company and its affiliates shall not be used by you or published, disclosed, or made accessible by you to any other person, firm, or corporation except in connection with the business, and for the benefit, of the Company and its affiliates. During
the twelve (12) month period following the Date of Termination (as defined below), you shall not, for yourself or on behalf of any other person, firm, partnership, corporation, or other entity, directly or indirectly solicit or hire, or attempt
to solicit or hire, any employee of the Company or its affiliates or any person employed by the Company or its affiliates within the six (6)-month period prior to such solicitation or hire or attempt to solicit or hire. 

(b) In the event that your employment is terminated by ATLS for Cause, or is terminated by you for any reason other than for Good Reason
(each, as defined below) during the Initial Employment Term, you shall not, during the twelve (12) month period following the Date of Termination, for yourself or on behalf of any other person, firm, partnership, corporation, or other entity,
directly or indirectly, engage in the natural gas gathering and/or processing business in the Geographic Area. For purposes of this clause 5(b): (i) “to engage” shall include: (A) your participation as an employee, officer,
contractor or consultant in the management or operation of natural gas gathering and/or processing businesses or activities, or (B) acting as an owner (of more than 5%) or director of an entity so engaged; and (ii) “Geographic
Area” means any of the fifty (50) United States where the Partnership or its subsidiaries own or operate natural gas gathering and/or processing assets as of the Date of Termination. 

(c) Subject to applicable legal requirements, you agree that you will not disparage the Company and its affiliates, and their respective
officers, directors, investors, employees, and agents, and their respective successors and assigns, or make any public statement reflecting negatively on the Company, its affiliates, and their respective officers, directors, investors, employees,
and agents, and their respective successors and assigns, to third parties, including, but not limited to, any matters relating to the operation or management of the Company, irrespective of the truthfulness or falsity of such statement. Subject to
applicable legal requirements and the rules of any stock exchange to which Company or any of its affiliates may be subject, the Company agrees that it will direct its officers and directors not to disparage you and/or make any public statement
reflecting negatively on you, including, but not limited to, any matters relating to the performance of your duties for APL GP, irrespective of the truthfulness or falsity of such statements. 

(d) You acknowledge that the restrictions contained in this Section 5 are, in view of the nature of the business of the Company,
reasonable and necessary to protect the legitimate interests of the Company, and that any violation of any provision of this Section will result in irreparable injury to the Company. You also acknowledge that in the event of any such violation, the
Company shall be entitled to preliminary and permanent injunctive relief, without the necessity of proving actual damages or posting a bond, and to an equitable accounting of all earnings, profits and other benefits arising from any such violation,
which rights shall be 

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cumulative and in addition to any other rights or remedies to which the Company may be entitled. You agree that in the event of any such violation, an action may be commenced by the Company for
any such preliminary and permanent injunctive relief and other equitable relief in any federal or state court of competent jurisdiction sitting in Pennsylvania or in any other court of competent jurisdiction. You hereby waive, to the fullest extent
permitted by law, any objection that you may now or hereafter have to such jurisdiction or to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that such suit, action or proceeding has been brought
in an inconvenient forum. You agree that effective service of process may be made upon you by mail under the notice provisions contained in Section 10 hereof. 
 6. Termination. Notwithstanding anything herein to the contrary, your employment shall terminate and the Employment Period shall end as a result of any of the following events: 

(a) Your death. 

(b) Termination by ATLS for Cause. “Cause” shall mean: (i) your commission of a felony or crime of moral turpitude;
(ii) your commission of any act of malfeasance or wrongdoing against the Company or its affiliates; (iii) your material breach of any of the Company’s policies or procedures; (iv) your willful and continued failure to perform
your material duties under this Agreement (other than as a result of physical or mental illness or injury), (v) your willful misconduct which causes material harm to the Company or its affiliates or their business reputations, including due to
adverse publicity, or (v) your material breach of your obligations under any agreement entered into between you and the Company or its affiliates. 
 (c) Termination by ATLS without Cause upon sixty (60) days’ prior written notice to you. 
 (d) Termination by ATLS upon your Disability. “Disability” shall mean that you become disabled by reason of physical or mental disability for more than one hundred eighty (180) days
in the aggregate or a period of ninety (90) consecutive days during any three hundred and sixty-five (365)-day period and the ATLS Board determines, in good faith, that you, by reason of such physical or mental disability, with or without
reasonable accommodation, are rendered unable to perform your duties and services hereunder. A termination of your employment by ATLS for Disability shall be communicated to you by written notice, and shall be effective on the thirtieth (30th) day after your receipt of such notice (the “Disability
Effective Date”), unless you return to full-time performance of your duties before the Disability Effective Date. 

(e) Termination by you for Good Reason. “Good Reason” shall mean: 

(i) a material reduction in your Annual Base Salary; 

(ii) a material reduction of your duties, authority or responsibilities, including a demotion from the position of Chief
Operating Officer of APL GP; 

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 (iii) a material change in the geographic location at which you must
perform services under this Agreement, which for purposes of this Agreement, means that the Company requires you to be relocated to a location that is more than fifty (50) miles from Tulsa, Oklahoma. 

In order for a Good Reason termination to be effective, you must provide written notice of your termination for Good Reason to ATLS (or
its successor) within sixty (60) days after the event constituting Good Reason, which notice shall specify in reasonable detail the conditions giving rise to Good Reason. ATLS (or it successor) shall have a period of thirty (30) days
following the receipt of such notice in which it may correct the act or failure to act that constitutes the grounds for Good Reason as set forth in the your notice of termination. If ATLS does not correct the act or failure to act, you must
terminate your employment for Good Reason within ninety (90) days after the end of the cure period, in order for the termination to be considered a Good Reason termination. 

(f) Your termination without Good Reason upon sixty (60) days’ prior written notice to ATLS. 

(g) Termination at the end of the Initial Employment Term or a Renewal Term by reason of non-renewal pursuant to Section 3.

 (h) For purposes of this Agreement, “Date of Termination” means the date on which your termination of
employment is effective. A transfer of your employment by ATLS to an affiliate or a successor shall not be deemed a termination of your employment. 
 7. Payments upon Termination. 
 (a) Disability/Death. If your
employment is terminated by reason of your Disability or death, ATLS shall pay or provide you or your designated beneficiaries (or, if there is no such beneficiary, to your estate or legal representative), as the case may be, the following

 (i) A single lump-sum cash payment within sixty (60) days after the Date of Termination, the sum of the
following amounts: 
 A. the portion of your Annual Base Salary through the Date of Termination that has been
earned and not yet paid; 
 B. an amount equal to the Annual Incentive Compensation (as defined below),
multiplied by a fraction, the numerator of which is the number of days in the calendar year in which the Date of Termination occurs through the Date of Termination, and the denominator of which is the total number of days in the calendar year in
which the Date of Termination occurs; 
 C. any earned but unpaid annual cash bonus for the prior calendar year;
and 

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 D. to the extent required to be paid under the terms of ATLS policy in
effect from time to time and applicable law, any accrued but unpaid PTO pay. 
 (ii) The vesting of the
outstanding Initial Equity Awards will fully accelerate as of the Date of Termination, and the vested Initial Equity Awards will be paid in accordance with the terms of the applicable grant letters. The vesting and forfeiture of all other equity
awards in APL or ATLS, will be governed by the terms of the applicable equity plan and grant letters. 
 (iii)
All other benefits, payments or compensation provided to you hereunder shall terminate. 
 For purposes of this Agreement,
“Annual Incentive Compensation” shall mean the amount of annual cash bonus accrued and earned by you in respect of the calendar year prior to the calendar year in which the Date of Termination occurs; provided, however,
notwithstanding any of the terms of Section 4(b) which could be construed to the contrary, with respect to the Date of Termination, if any, that occurs on or before December 31, 2012, the Annual Incentive Compensation shall mean
$200,000.00. 
 (b) By ATLS for Cause; By You Other than for Good Reason. If your employment is terminated by ATLS for
Cause or if you terminate your employment other than for Good Reason, ATLS shall pay to you, within sixty (60) days following the Date of Termination, (i) your accrued but unpaid Annual Base Salary through the Date of Termination,
(ii) any earned but unpaid annual cash bonus for the prior calendar year and (iii) to the extent required to be paid under the terms of ATLS policy in effect from time to time and applicable law, any accrued but unpaid PTO pay (the
“Accrued Obligations”). All other benefits, payments or compensation provided to you hereunder shall terminate. 
 (c) By ATLS Other than For Cause or Disability/Death or By You for Good Reason. If ATLS terminates your employment other than for Cause, Death or Disability, or if you terminate employment for Good
Reason. ATLS shall pay to you, within sixty (60) days following the Date of Termination, the Accrued Obligations. In addition, if you sign and do not revoke a Release (as defined below), ATLS shall pay to you: 

(i) A pro-rated amount in respect of the annual cash bonus opportunity for the calendar year in which the Date of
Termination occurs, based on actual performance for such year, which shall be calculated as the product of (A) the amount which would have been earned in respect of the annual bonus based on actual performance measured at the end of the
calendar year in which the Date of Termination occurs and (B) a fraction, the numerator of which is the number of days in the calendar year in which the Date of Termination occurs through the Date of Termination, and the denominator of which is
the total number of days in the calendar year in which the Date of Termination occurs (the “Pro-Rata Bonus”). The Pro-Rata Bonus shall be paid in cash in a lump sum on the date on which you otherwise would have been paid such bonus
had you remained employed by ATLS. 

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 (ii) A monthly severance payment for a specified
period of months (the “Severance Period”) calculated as follows: (A) in the event the Date of Termination occurs before the last day of the Initial Employment Term, the Severance Period shall be a two (2) year period commencing
on the Date of Termination; and (B) in the event the Date of Termination is the last day of the Initial Employment Term for reason of non-renewal or otherwise, the Severance Period shall be one (1) year; and (C) in the event the Date
of Termination occurs after the last day of the Initial Employment Term, the Severance Period shall be the then current Employment Term remaining after the Date of Termination (taking into account only the Renewal Term in effect as of such time).
The monthly severance amount shall be equal to one-twelfth (1/12th) of the sum of your (x) Annual Base Salary and (y) Annual Incentive Compensation. The severance pay shall be payable in monthly installments during the Severance Period in accordance with
ATLS’s regular payroll practices. Subject to the terms and conditions of Section 16(a), if applicable, severance payments will commence on the first payroll date following the sixtieth (60th) day after the Date of Termination, and the
first payment will include the first sixty (60) days of the severance payments. 
 (iii) The vesting of the
outstanding Initial Equity Awards will fully accelerate as of the Date of Termination, and such vested Initial Equity Awards will be paid in accordance with the terms of the applicable grant letters. The vesting or forfeiture of all other equity
awards in APL or ATLS will be governed by the terms of the applicable equity plan and grant letters. 
 (d) Release
Requirement. If you do not timely sign and deliver the Release or if you revoke the Release within the statutory revocation period, you shall forfeit any and all rights to any amounts or benefits provided pursuant to Section 7(c). The
payments and benefits provided pursuant to Section 7(c) are intended as liquidated damages for a termination of your employment by ATLS other than for Cause, Death or Disability or for the actions of ATLS leading to a termination of your
employment by you for Good Reason, and shall be the sole and exclusive remedy therefor. You shall not be required to mitigate the amount of any payment provided for in Section 7(c), by seeking other employment or otherwise, nor shall the amount
of any payment or benefit provided for herein be reduced by any compensation or any retirement benefit heretofore or hereafter earned by you as the result of employment by any other person, firm or corporation. If you become entitled to receive
payments provided for in Section 7(c), you hereby waive your right to receive payments under any severance plan or similar program of the Company. For purposes of this Agreement, “Release” means a release and waiver of claims
in favor of the Company and related parties with respect to all matters arising out of your employment by ATLS or the termination thereof (subject to certain standard exceptions set forth in such release) in a form provided by the Company.

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 (e) Non-Renewal By ATLS. 

(i) A termination of your employment by ATLS other than for cause at the end of the Initial Employment Term or prior to
the end of the first two (2) Renewal Terms, in each case, by reason of non-renewal pursuant to Section 3, shall constitute a termination without Cause for purposes of this Agreement, and you shall be entitled to receive the amounts
described in Section 7(c) according to the terms of that Section. 
 (ii) A termination of your employment
by ATLS at or after the end of the first two (2) Renewal Terms by reason of non-renewal pursuant to Section 3 shall not be considered a termination without Cause for purposes of this Agreement and only the payments described in
Section 7(b) shall be made upon such termination. 
 8. Golden Parachute Excise Tax Modified Cutback.

 (a) Anything in this Agreement to the contrary notwithstanding, in the event that an accounting firm designated by ATLS (the
“Accounting Firm”) shall determine that receipt of all payments or distributions by ATLS or its affiliates in the nature of compensation to you or for your benefit, whether paid or payable pursuant to this Agreement or otherwise (a
“Payment”), would subject you to the excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Accounting Firm shall determine whether to reduce any of the Payments paid
or payable pursuant to Section 7(c) of this Agreement (the “Agreement Payments”) to the “Reduced Amount” (as defined below). The Agreement Payments shall be reduced to the Reduced Amount only if the Accounting Firm
determines that you would have a greater “Net After-Tax Receipt” (as defined below) of aggregate Payments if your Agreement Payments were reduced to the Reduced Amount. If the Accounting Firm determines that you would not have a greater
Net After-Tax Receipt of aggregate Payments if your Agreement Payments were so reduced, you shall receive all Agreement Payments to which you are entitled under this Agreement. 

(b) If the Accounting Firm determines that aggregate Agreement Payments should be reduced to the Reduced Amount, ATLS shall promptly give
you notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm under this Section 8 shall be binding upon ATLS and you absent manifest error and shall be made as soon as reasonably
practicable and in no event later than fifteen (15) days following the applicable Date of Termination. For purposes of reducing the Agreement Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments)
shall be reduced. All fees and expenses of the Accounting Firm shall be borne solely by ATLS. 
 (c) As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by ATLS to or for the benefit of you pursuant
to this Agreement which should not have been so paid or distributed (“Overpayment”) or that additional amounts which will have not been paid or distributed by ATLS to or for the benefit of you pursuant to this Agreement could have
been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue
Service 

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against either ATLS or you which the Accounting Firm believes has a high probability of success determines that an Overpayment has been made, you shall pay any such Overpayment to ATLS together
with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by you to the Company if and to the extent such payment would not either reduce the
amount on which you are subject to tax under Section 1 and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling precedent or substantial authority, determines that an
Underpayment has occurred, any such Underpayment shall be paid promptly (and in no event later than sixty (60) days following the date on which the Underpayment is determined) by ATLS to or for the benefit of you together with interest at the
applicable federal rate provided for in Section 7872(f)(2) of the Code. 
 (d) For purposes hereof,
(i) “Reduced Amount” shall mean the greatest amount of Agreement Payments that can be paid that would not result in the imposition of the excise tax under Section 4999 of the Code if the Accounting Firm determines to
reduce Agreement Payments pursuant to Section 8(a), and (ii) “Net After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of
all taxes imposed on you with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which
applied to your taxable income for the immediately preceding taxable year, or such other rate(s) as the Accounting Firm determined to be likely to apply to you in the relevant tax year(s). 

(e) To the extent requested by you, ATLS shall cooperate with you in good faith in valuing, and the Accounting Firm shall take into
account the value of, services provided or to be provided by you (including without limitation, your agreeing to refrain from performing services pursuant to a covenant not to compete or similar covenant) before, on or after the date of a change in
ownership or control of ATLS (within the meaning of Q&A-2(b) of the final regulations under Section 280G of the Code), such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A-9
and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term “parachute payment” within the meaning of Q&A-2(a) of the final regulations under Section 280G
of the Code in accordance with Q&A-5(a) of the final regulations under Section 280G of the Code. 
 9.
Survivorship. The respective rights and obligations of the parties under this Agreement shall survive any termination of your employment to the extent necessary to the intended preservation of such rights and obligations. Without
limiting the foregoing, the provisions of Sections 5, 6, 7(d), and Sections 8 through 16, of this Agreement shall survive any non-renewal of this Agreement by ATLS according to their terms. 

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 10. Notices. All notices and other communications required or permitted
under this Agreement or necessary or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered or delivered by nationally recognized overnight delivery service, as follows (provided that notice
of change of address shall be deemed given only when received): 
 If to the Company, to: 

Atlas Energy, L.P. 
 1845 Walnut Street, 10th Fl. 
 Philadelphia, PA 19103 

Attn: Chief Legal Officer 
 With a copy to: 
 Atlas Pipeline Partners GP, LLC 

110 West 7th Street, Suite 2300 
 Tulsa, OK 74119 
 Attn: Chief Legal Officer 

If to you, to: 

Your most recent home address in ATLS’s employment records 
 Any such notice under this Section 10 may be delivered to such other names or addresses as the Company or you, as the case may be, shall designate by notice to each other person entitled to receive
notices in the manner specified in this Section. 
 11. Contents of Agreement; Amendment and Assignment.

 (a) This Agreement sets forth the entire understanding between the parties with respect to the subject matter hereof and
cannot be changed, modified, extended or terminated except upon written amendment executed by a duly authorized officer of ATLS and by you. 
 (b) All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives,
successors and assigns of the parties hereto, except that your duties and responsibilities under this Agreement are of a personal nature and shall not be assignable or delegatable in whole or in part by you. 

12. Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances is
adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or
application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in
full force and effect in all other circumstances. 

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 13. Remedies Cumulative; No Waiver. No remedy conferred upon a party by
this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or
omission by a party in exercising any right, remedy or power under this Agreement or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as
often as may be deemed expedient or necessary by such party in its sole discretion. 
 14. Withholding. All
payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any payments under this Agreement all federal, state and local taxes as the Company is required to withhold pursuant to any law or
governmental rule or regulation. Except as specifically provided otherwise in this Agreement, you shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received under this
Agreement. 
 15. Governing Law. This Agreement shall be governed by and interpreted under the laws of the
Commonwealth of Pennsylvania without giving effect to any conflict of laws provisions. 
 16. Section 409A.

 (a) Notwithstanding anything in this Agreement to the contrary, if you are a “specified employee” (as defined under
Section 409A of the Code), payment of any amount under this Agreement shall, to the extent necessary in order to avoid the imposition of a penalty or other tax on you under Section 409A of the Code, be delayed for a period of six
(6) months after your “separation from service” (within the meaning of Section 409A of the Code), and the accumulated postponed amount shall be paid in a lump-sum payment within ten (10) days after the end of the six
(6)-month period. If you die during the six (6)-month postponement period prior to the payment of such postponed amount, the amounts withheld on account of Section 409A of the Code shall be paid to the personal representative of your estate
within sixty (60) days after the date of your death. 
 (b) This Agreement is intended to comply with the requirements of
Section 409A of the Code or an exemption thereto and shall in all respects be administered in accordance with Section 409A of the Code or an exemption thereto. Severance benefits under the Agreement are intended to be exempt from
Section 409A of the Code under the “short-term deferral” exception, to the maximum extent applicable, and then under the “separation pay” exception, to the maximum extent applicable. Notwithstanding anything in the Agreement
to the contrary, distributions may, to the extent necessary in order to avoid the imposition of a penalty or other tax on you under Section 409A of the Code, only be made under the Agreement upon an event and in a manner permitted by
Section 409A of the Code or an applicable exemption. All 

 Letter to Patrick J. McDonie 

July 3, 2012 
  Page
 13
 
  

 
payments to be made upon a termination of employment under this Agreement may, to the extent necessary in order to avoid the imposition of a penalty or other tax on you under Section 409A of
the Code, only be made upon a “separation from service” (within the meaning of Section 409A of the Code). Each payment under this Agreement shall be treated as a separate payment. In no event may you, directly or indirectly, designate
the calendar year of any payment under this Agreement. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code. 

{Signature Page Follows} 

 Letter to Patrick J. McDonie 

July 3, 2012 
  Page
 14
 
  

 By execution hereof, you are confirming that you are free to enter into employment with
ATLS pursuant to the terms identified herein. Please acknowledge your acceptance of and agreement to the terms of this Agreement by signing a copy of this Agreement where indicated and returning it to me. 

 

			
	Sincerely,
	
	ATLAS ENERGY, L.P.
	By:	 	Atlas Energy GP, LLC, its general partner
		
	By:	 	 /s/ EUGENE N. DUBAY

		 	Eugene N. Dubay
		 	Senior Vice President Mid-Stream
	
	ATLAS PIPELINE PARTNERS, L.P.
	By:	 	Atlas Pipeline Partners GP, LLC, its general partner
		
	By:	 	 /s/ EUGENE N. DUBAY

		 	Eugene N. Dubay
		 	President and Chief Executive Officer

  

	
	ACCEPTED AND AGREED:
	
	 /s/ PATRICK J. MCDONIE

	Patrick J. McDonieEX-10.29

 Exhibit 10.29* 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT (the “Agreement”), is made
and entered into this 9th day of November, 2011, by and between A. M. Castle & Co., a Maryland corporation, presently with its principal executive offices located at 1420 Kensington Road, Suite 220, Oak Brook, Illinois 60523 (the
“Company”), and Paul Sorensen, who presently resides at Houston, Texas (“Employee”) (individually, each a “Party” and collectively, the “Parties”). 

WHEREAS, Employee and Tube Supply, Inc., a Texas corporation (“Tube Supply”), previously entered an arrangement whereby
Tube Supply agreed to employ Employee and Employee accepted such employment (the “Prior Agreement”); 

WHEREAS, the Company is contemplating a business combination whereby the Company would purchase all of the outstanding capital
stock of Tube Supply and Tube Supply would become a wholly-owned direct or indirect subsidiary of the Company (the “Transaction”); 
 WHEREAS, conditioned upon the successful completion of the Transaction and effective upon the date of the consummation of the Transaction, if applicable (“Effective Date”), the Parties
desire to enter into this Agreement to govern the employment relationship between Employee and the Company on or after the Effective Date; 
 WHEREAS, conditioned upon the successful completion of the Transaction, it is desirable that the Prior Agreement be replaced in its entirety by this Agreement so that, on or after the Effective
Date, this Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements, oral and written, with respect to the subject matter hereof, including, without limitation, the Prior
Agreement; and 
 WHEREAS, in the event that the Transaction is not successfully completed, this Agreement shall be null
and void in all respects. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the
receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows: 
 1. Employment. Conditioned upon the successful completion of the Transaction and effective as of the Effective Date, the Company desires to employ Employee, and Employee desires to be employed by
the Company, pursuant to and in accordance with the terms and conditions set forth herein. Employee represents and warrants that he has full power and authority to enter into this Agreement and that he is not restricted in any manner whatsoever from
performing his responsibilities and duties hereunder. For the avoidance of doubt, this Agreement shall be null and void in all respects in the event the Transaction is not successfully completed. 

2. Employment Term. Unless earlier terminated as hereinafter provided, the term of Employee’s employment under this Agreement
shall commence on the Effective Date and shall continue through the first anniversary of the Effective Date (the “Expiration Date”); provided, however, the Expiration Date shall be automatically extended annually for successive one-year
periods, effective on the first anniversary of the Effective Date and on each subsequent anniversary of the Effective Date, without further action on the part of any Party, unless, not later than 90 days prior to the

  
 E-1

 
effective date of any such extension, either Party shall have given written notice to the other Party that it does not wish to extend the term of Employee’s employment under this Agreement
(the “Employment Term”). If Employee’s employment with the Company terminates for any reason, with or without Cause (as defined herein), Employee shall not be entitled to any payments, benefits, damages, awards or compensation other
than as provided in this Agreement. 
 3. Position, Duties and Location. 

(a) Title. The Company shall employ Employee initially through its Tube Supply subsidiary in the position of and with the title of
VP Global Business Development. Employee shall have the responsibilities and duties as are commensurate with the position of VP Global Business Development of an entity comparable to Tube Supply. The Company’s Board of Directors
(“Board”), its President and Chief Executive Officer, or the President of the Company’s Castle Metals Oil & Gas commercial unit shall have the right to modify the title, responsibilities and duties of Employee from time to
time as each may deem necessary or appropriate, including without limitation, extending such responsibilities and duties to the Company’s entire Castle Metals Oil and Gas commercial unit following the integration of Tube Supply into the
Company’s Castle Metals Oil and Gas commercial unit. 
 (b) Manner of Employment. Employee shall faithfully,
diligently and competently perform his duties and responsibilities and duties as VP Global Business Development of Tube Supply. Employee shall devote his exclusive and full efforts and time to the Company. This Section 3, however, shall not
preclude Employee, outside normal business hours, from engaging in appropriate civic or charitable activities. 
 4.
Compensation. 
 (a) Base Compensation. The Company shall pay Employee, as compensation for his services, base
compensation in the amount of two hundred fifty thousand dollars ($250,000.00) per year, subject to annual reviews and adjustments at the sole discretion of the Board, the Company’s President and Chief Executive Officer, or the President of the
Company’s Castle Metals Oil & Gas commercial unit (“Base Compensation”). Base Compensation shall be paid periodically in accordance with normal Company payroll practices. 

(b) Additional Cash and Equity-Based Compensation. 
 (1) Employee shall participate in the Company’s annual Short Term Incentive Plan (“STIP”) solely with respect to the fiscal year beginning on January 1, 2012, except to the extent the
Human Resources Committee of the Board (or its subcommittee or such other committees and subcommittees designated from time to time by the Board) (the “Committee”), in its sole discretion, permits Employee to continue participation in the
STIP in any subsequent fiscal year. Employee’s participation in the STIP with respect to the fiscal year beginning on January 1, 2012 (or, if and to the extent the Committee, in its sole discretion, permits Employee to continue
participation in the STIP in any subsequent fiscal year, any such subsequent fiscal year) shall provide, subject to adjustments at the sole discretion of the Committee, the terms and conditions set forth in the Company’s 2008 Omnibus Incentive
Plan, as may be 

  
 E-2

 
amended from time to time (the “Omnibus Incentive Plan”), and the applicable award agreement, if any, for a target cash incentive (that is, an annual bonus) equal to thirty five percent
(35%) (“STIP Target Incentive Opportunity Factor”) of his then-current Base Compensation with a payout range of zero percent (0%) to a maximum incentive equal to two hundred percent (200%) of his target STIP cash incentive. Any
cash incentive payable to Employee under the STIP will be made to Employee during the period beginning January 1 and ending March 15 immediately following the end of the applicable performance period; provided, however, that such payment
shall be made only if and to the extent the applicable performance measure(s) established by the Committee for such performance period have actually been met and shall be subject to the approval of the Committee. 

(2) Employee shall participate in the Company’s Long Term Compensation Plan (“LTCP”) solely with respect to the
performance period beginning on January 1, 2012, except to the extent the Committee, in its sole discretion, permits Employee to continue participation in the LTCP in any subsequent performance period. Employee’s participation in the LTCP
with respect to the performance period beginning on January 1, 2012 (or, if and to the extent the Committee, in its sole discretion, permits Employee to continue participation in the LTCP in any subsequent performance period, any such
subsequent performance period) shall provide, subject to adjustments at the sole discretion of the Committee, the terms and conditions set forth in the Omnibus Incentive Plan, and the applicable award agreement, if any, for a target cash incentive
equal to thirty percent (30%) (“LTCP Target Incentive Opportunity Factor”) of his then-current Base Compensation with a payout range of zero percent (0%) to a maximum incentive equal to two hundred (200%) of his target LTCP cash
incentive; provided, however, that such payment shall be made only if and to the extent the applicable performance measure(s) established by the Committee for such performance period have actually been met and shall be subject to the approval of the
Committee. 
 (3) Solely with respect to the performance period beginning January 1, 2012 and ending December 31,
2014, Employee shall participate in the Company’s 2012-2014 Transitional Incentive Plan (the “TIP”), as set forth in Exhibit A hereto. Employee’s participation in the TIP shall provide, subject to adjustments at the sole
discretion of the Committee and the terms and conditions set forth in the Omnibus Incentive Plan, for a cash incentive equal to twenty percent (20%) (“TIP Factor”) of the incentive pool established thereunder, if any (the “TIP
Pool”). Notwithstanding the foregoing, any cash incentive payable to Employee under the TIP shall be subject to a three-year cliff vesting schedule, whereby Employee shall completely forfeit any payment otherwise due Employee under the TIP in
the event Employee’s employment with the Company is terminated for any reason prior to December 31, 2014; provided, however, in the event Employee’s employment with the Company is terminated by the Company without Cause (as defined
herein) during the period beginning January 1, 2014 and ending December 30, 2014, the cash incentive under the TIP shall equal the cash incentive otherwise payable to Employee under the TIP, if any, had he remained continuously employed
with the Company through December 31, 2014, prorated by a fraction where the numerator equals the number of days Employee was employed with the Company beginning as of the Effective Date and the denominator equals 1,095 days. Any cash incentive
payable to Employee under the TIP will be made to Employee during the period beginning January 1, 2015 and ending March 15, 2015, and shall be subject to the approval of the Committee. 

  
 E-3

 (4) On or about January 1, 2012 (the “Grant Date”), Employee shall be
awarded restricted stock units (the “RSU Award”) in respect of shares of common stock of the Company (the “Stock”), subject to the terms and conditions set forth in the Omnibus Incentive Plan and the applicable award agreement,
the total value of which, as determined by the Committee in its sole discretion, shall equal one hundred twenty five thousand dollars ($125,000.00). The number of shares of Stock covered by the RSU Award shall be determined by dividing the
total value of the RSU Award by the average closing market composite price of a share of Stock, as reported for the New York Stock Exchange-Composite Transaction, for the sixty (60) trading days immediately preceding the Grant Date, with any
fractional share of Stock being disregarded. All terms and conditions with respect to the RSU Award shall be set forth in a separate written award agreement, including, but not limited to, the manner and timing of payment and a three-year cliff
vesting schedule, whereby Employee shall completely forfeit the RSU Award and any payment otherwise due Employee thereunder in the event Employee’s employment with the Company is terminated for any reason prior to December 31, 2014.

 5. Employment Benefits. Employee shall be eligible to participate in the plans, programs and arrangements of the
Company that are offered to similarly situated employees of the Company, in accordance with the terms and conditions thereof. 

6. Termination and Severance Benefits. 
 (a) Death. The death of Employee shall automatically terminate the Company’s obligations hereunder, provided however, the Company shall pay to Employee’s estate or his designated
beneficiary: 
 (1) Employee’s Base Compensation through the date of termination, paid in accordance with normal Company
payroll practices; 
 (2) accrued vacation pay through the date of termination or other amounts earned, accrued or owing to
Employee but not yet paid as of such date; and 
 (3) other benefits, if any, in accordance with applicable plans, programs and
arrangements of the Company (excluding any Company severance plans). 
 (b) Disability. If Employee is unable to render
services of substantially the kind and nature, and to substantially the extent, required to be rendered by Employee hereunder due to illness, injury, physical or mental incapacity or other disability, for sixty (60) consecutive days or shorter
periods aggregating at least one hundred eighty (180) days within any twelve (12) month period (“Disability”), Employee’s employment may be terminated by Company and Employee shall be entitled to: 

(1) his Base Compensation through the date of termination, paid in accordance with normal Company payroll practices; 

  
 E-4

 (2) accrued vacation pay through the date of termination or other amounts earned, accrued
or owing to Employee but not yet paid as of such date; 
 (3) disability benefits in accordance with the long-term disability
program then in effect for management employees of the Company; and 
 (4) other benefits, if any, in accordance with
applicable plans, programs and arrangements of the Company (excluding any Company severance plans). 
 (c) Resignation.
If Employee resigns his employment without Good Reason (as defined herein) during the Employment Term, the Company shall have no liability under this Agreement to Employee, except that Employee shall be entitled to: 

(1) his Base Compensation through the date of termination, paid in accordance with normal Company payroll practices; 

(2) accrued vacation pay through the date of termination or other amounts payable to Employee as of the date of termination but not yet
paid as of such date; and 
 (3) other benefits, if any, in accordance with applicable plans, programs and arrangements of the
Company (excluding any Company severance plans) applicable to employees who voluntarily resign. A resignation of his employment by Employee shall not be a breach of this Agreement. 

(d) Termination by Company for Cause. If Employee’s employment is terminated for Cause (as defined herein), the Company shall
have no liability under this Agreement to Employee except that Employee shall be entitled to: 
 (1) his Base Compensation
through the date of termination, paid in accordance with normal Company payroll practices; 
 (2) accrued vacation pay through
the date of termination or other amounts payable to Employee as of the date of termination but not yet paid as of such date; and 
 (3) other benefits, if any, in accordance with applicable plans, programs and arrangements of the Company (excluding any Company severance plans). 

(e) Termination by Company Without Cause or Termination by Employee for Good Reason. 

(1) If Employee’s employment with the Company is terminated either by the Company without Cause (as defined herein) or by Employee
for Good Reason (as defined herein), Employee shall be entitled to: 
 (A) his Base Compensation through the date of
termination, paid in accordance with normal Company payroll practices; 

  
 E-5

 (B) accrued vacation pay through the date of termination or other amounts payable to
Employee as of the date of termination but not yet paid as of such date; and 
 (C) other benefits, if any, in accordance with
applicable plans, programs and arrangements of the Company (excluding any Company severance plans). 
 (2) Provided that
Employee has satisfied the conditions provided in Section 11 (relating to the waiver and release) and has complied with the requirements of Sections 7, 8, and 9 (relating to confidentiality, non-competition, non-solicitation, and
non-disparagement), if Employee’s employment with the Company is terminated during the Employment Term either by the Company without Cause (as defined herein) or by Employee for Good Reason (as defined herein), Employee shall also be
entitled to: 
 (A) a lump sum payment equal to one (1) times Employee’s Base Compensation, at the annualized rate in
effect on the date of termination, payable to Employee within ten (10) days following the date on which the conditions of Section 11 are satisfied; 
 (B) a lump sum payment equal to the cash incentive under the STIP to which Employee would have been entitled had he continued in the employ of the Company through the last day of the calendar year in
which the date of termination occurs, pro-rated for the number of days during such calendar year that Employee was employed with the Company prior to the date of termination; provided, however, that such payment shall be made only if and to the
extent the applicable performance measure(s) for such calendar year have actually been met and shall be subject to the approval of the Committee; 
 (C) continued health benefit coverage for Employee and Employee’s qualified beneficiaries as provided in Section 4980B of the Internal Revenue Code of 1986, as amended (“COBRA”). Such
COBRA continuation coverage shall be provided to Employee and Employee’s qualified beneficiaries only if and to the extent that Employee (or his qualified beneficiaries, as applicable) make a timely and proper election to be covered under COBRA
and make timely payments for the cost of such coverage; provided, however, that such COBRA coverage shall be at the Company’s expense for the period beginning on the day after the termination date and ending on the earlier of (i) the first
anniversary of the termination date or (ii) the date on which Employee commences employment with another employer; and 
 (D) with respect each outstanding and nonvested equity-based performance award granted to Employee by the Company for which his termination date precedes the end of the performance period by less than one
(1) year, a payment equal to the amount Employee would have received under each such award had he continued in the employ of the Company through the last day of the applicable performance period, pro-rated for the number of days during such
performance period that Employee was employed prior to his termination date, with any such payment being made, no later than the later of (A) the date that is
2- 1/2 months from the end of Employee’s first taxable year in which the amount is no longer subject to a substantial 

  
 E-6

 
risk of forfeiture, or (B) the date that is 2- 1/2 months from the end of the Company’s first taxable year in which the amount is no longer subject to a substantial
risk of forfeiture; provided, however, that such payment shall be made only if and to the extent the applicable performance measure(s) for such performance period have actually been met and shall be subject to the approval of the Committee; and

 (E) with respect to each then-outstanding and vested stock option granted to Employee by the Company, exercise such
option at any time during the period beginning on the termination date and ending on the earlier of the original expiration date of each such option (without regard to any accelerated expiration date otherwise resulting from Employee’s
termination of employment) or the expiration of the three-month period following the termination date. 
 (f) No
Mitigation/Offset. In the event of any termination of Employee’s employment hereunder, Employee shall be under no obligation to seek other employment or otherwise mitigate the obligations of the Company under this Agreement, and there shall
be no offset against amounts due to Employee under this Agreement for amounts earned by Employee from a third party; provided, however, that Employee may offset under this Agreement any amounts owed by Employee to the Company at the time payment
would otherwise be required under this Agreement. 
 (g) Notice of Termination. Any purported termination of
Employee’s employment by the Company or by Employee (other than by reason of death) shall be effectively communicated to the other Party by written notice identifying the effective date of termination and the reason or Cause (as defined herein)
for termination. 
 (h) Definition of Cause. For purposes of this Agreement, the term “Cause” shall mean:

 (1) conviction of, or entry of a plea of guilty or “nolo contendere” to, a felony (as defined by the laws of the
United States of America or by the laws of the State or other jurisdiction in which Employee was so convicted or entered such plea) by Employee; 
 (2) engagement by Employee in egregious misconduct involving serious moral turpitude to the extent that, in the reasonable judgment of the Company, Employee’s credibility and reputation no longer
conform to the standard of the Company’s employees; 
 (3) willful misconduct by Employee that, in the reasonable judgment
of the Company, results in a demonstrable and material injury to the Company or its affiliates, monetarily or otherwise; 
 (4)
willful and continued failure (other than any such failure resulting from Employee’s incapacity due to mental or physical illness) by Employee to perform his assigned duties, provided that such assigned duties are consistent with the job duties
of Employee and that Employee does not cure such failure within 30 days after notice of such failure from the Company; or 

  
 E-7

 (5) material breach of this Agreement by Employee, provided that Employee does not cure
such breach within 30 days after notice of such breach from the Company. 
 For purposes of determining whether “Cause” exists, no
act, or failure to act, on Employee’s part will be deemed “willful” unless done, or omitted to be done, in the reasonable judgment of the Company, by Employee not in good faith and without reasonable belief that Employee’s act,
or failure to act, was in the best interest of the Company or its affiliates. 
 (i) Definition of Good Reason. For
purposes of this Agreement, the term “Good Reason” shall mean: 
 (1) a reduction of 10% or more in Employee’s
Base Compensation (either upon one reduction or during a series of reductions over a period of time), provided, that such reduction neither comprises a part of a general reduction for Employee’s then-current peers as a group (determined as of
the date immediately before the date on which Employee becomes subject to any such reduction) nor results from a deferral of Employee’s Base Compensation; 
 (2) a material diminution in Employee’s authority (including, but not limited to, the budget over which Employee retains authority), duties, or responsibilities within the Company; 

(3) a material change in the geographic location at which Employee must perform services for the Company more than fifty (50) miles
from Employee’s designated office location as of the date of this Agreement; 
 (4) any other action or inaction that
constitutes a material breach by the Company of this Agreement; or 
 (5) any reduction in the Employee’s STIP Target
Incentive Opportunity Factor, LTCP Target Incentive Opportunity Factor and/or TIP Factor below the levels described and defined in Sections 4(b)(1), (2), and (3) respectively, provided, that, for the STIP and/or LTCP plans only, such reduction
neither comprises a part of a general reduction for Employee’s then current peers as a group (determined as of the date immediately before the date on which Employee becomes subject to any such reduction) nor results in connection with a
general plan design change with respect to any such plan. 
 For purposes of this Agreement, in order for a termination of employment by
Employee to be considered to be on account of Good Reason, the following conditions must be met by Employee: 
 (1) Employee
provides written notice to the Company of the existence of the condition(s) described in this subparagraph (i) potentially constituting Good Reason within ninety (90) days of the initial existence of such condition(s), and 

(2) the Company fails to remedy the conditions which Employee outlines in his written notice within thirty (30) days of such
notice, and 

  
 E-8

 (3) Employee actually terminates employment with the Company within six (6) months of
providing the notice described in this subparagraph (i). 
 7. Confidentiality. 

(a) The Company has provided, and will provide, Employee Confidential Information in connection with the Transaction and during the
Employment Term. 
 (b) Except as may be required by the lawful order of a court or agency of competent jurisdiction, except as
necessary to carry out his duties to the Company and its affiliates (including Tube Supply) after the Effective Date, or except to the extent that Employee has express authorization from the Company, Employee agrees to keep secret and confidential,
all Confidential Information, and not to disclose the same, either directly or indirectly, to any other person, firm, or business entity, or to use it in any way during the Restricted Period and at all times thereafter, provided, however, if the
jurisdiction in which the Company seeks to enforce the confidentiality obligation will not enforce a confidentiality obligation of indefinite duration, then the provisions in this Agreement restricting the disclosure and use of Confidential
Information shall survive for a period of five (5) years following the Restricted Period; provided, however, that trade secrets shall remain confidential indefinitely. 
 (c) To the extent that any court or agency seeks to have Employee disclose Confidential Information, he shall promptly inform the Company, and he shall take such reasonable steps to prevent disclosure of
Confidential Information until the Company has been informed of such requested disclosure, and the Company has an opportunity to respond to such court or agency. To the extent that Employee obtains information on behalf of the Company or any of its
affiliates that may be subject to attorney-client privilege as to the Company’s attorneys, Employee shall take reasonable steps to maintain the confidentiality of such information and to preserve such privilege. 

(d) This Section 7 shall not be construed to unreasonably restrict Employee’s ability to disclose Confidential Information in a
court proceeding in connection with the assertion of, or defense against any claim of breach of this Agreement. If there is a dispute between the Company and Employee as to whether information may be disclosed in accordance with this subparagraph
(d), the matter shall be submitted to the court for decision. 
 8. Non-Compete and Non-Solicitation. 

(a) Except as necessary to carry out his duties to the Company and its affiliates (including Tube Supply) after the date of the
consummation of the Transaction, during and throughout the Restricted Period, Employee covenants and agrees that he shall not, without the express written consent of the Company: 

(1) be employed by, serve as a consultant to, or otherwise assist or directly or indirectly provide services to a Competitor if:
(i) it will be within the Restricted Territory; or (ii) the Confidential Information to which Employee had access could reasonably be expected to benefit the Competitor if the Competitor were to obtain access to such Confidential
Information; 

  
 E-9

 (2) solicit or attempt to solicit any party who is then, or during the 12-month period
prior to the Effective Date was, a customer or supplier of Tube Supply, provided that the restriction in this subparagraph (a)(2) shall not apply to any activity on behalf of a business that is not a Competitor; 

(3) solicit, entice, persuade or induce any individual who is employed by the Company, Tube Supply or their affiliates (or was so
employed within ninety (90) days prior to Employee’s action and not involuntarily terminated for any reason other than Cause (as defined herein)) to terminate or refrain from renewing or extending such employment or to become employed by
or enter into contractual relations with any other individual or entity other than the Company, Tube Supply or their affiliates, and Employee shall not approach any such employee, either in person or through electronic or social media, for any such
purpose or authorize or knowingly cooperate with the taking of any such actions by any other individual or entity; or 
 (4)
directly or indirectly own an equity interest in any Competitor (other than ownership of 5% or less of the outstanding stock of any corporation listed on the New York Stock Exchange or the American Stock Exchange or included in the NASDAQ System, so
long as such ownership is passive in nature). 
 (b) If a court of competent jurisdiction determines that Employee has breached
any covenant in this Section 8, then the duration of such covenant will be tolled for a period of time equal to the period of time during which such court determines that such breach was continuing. 

(c) Definition of Competitor. For purposes of this Agreement, the term “Competitor” shall mean any enterprise (including
a person, firm or business, whether or not incorporated) during any period in which it is materially competitive in any way with any business in which the Company, Tube Supply or any of their affiliates was engaged during the 12-month period prior
to the Effective Date. For purposes of this Section 8, the term “materially competitive” shall mean an enterprise that deals in the sale or distribution of (i) any of the same products as the products sold or distributed by the
Company, Tube Supply or its affiliates and/or (ii) any other products that have similar application as any of the products sold or distributed by the Company, Tube Supply or its affiliates. Upon the written request of Employee, the
Company’s Chief Executive Officer will determine whether a business or other entity constitutes a “Competitor” and may require Employee to provide such information as the Chief Executive Officer determines to be necessary to make such
determination. The current and continuing effectiveness of such determination may be conditioned on the continuing accuracy of such information, and on such other factors as the Chief Executive Officer may determine. 

(d) Definition of Confidential Information. For purposes of this Agreement, the term “Confidential Information” shall
include all non-public information (including, without limitation, information regarding litigation and pending litigation, trade secrets, proprietary information, or confidential or proprietary methods) concerning the Company, Tube Supply and their
affiliates (and their customers) which was acquired by or disclosed to Employee during the course of his ownership of, if applicable, or employment with Tube Supply prior to the Effective Date, during the course of negotiations of the Transaction,
or during the course of his employment with the Company on or after the Effective Date. 

  
 E-10

 (e) Definition of Restricted Period. For purposes of this Agreement, the term
“Restricted Period” shall mean the period commencing upon the Effective Date and continuing until twelve (12) months following Employee’s termination of employment with the Company. For the avoidance of doubt, the term Restricted
Period shall apply solely for purposes of this Agreement and shall not apply with respect to any other agreement entered into between Employee and the Company and, conversely, the term restricted period set forth in any other agreement entered into
between Employee and the Company shall not apply with respect to this Agreement. 
 (f) Definition of Restricted
Territory. For purposes of this Agreement, the term “Restricted Territory” means the United States and Canada. The Restricted Territory also shall include any country in which Tube Supply or its affiliates had customers or generated
sales or revenues prior to the Effective Date and any country in which Employee (and/or employees of the Company, Tube Supply or their affiliates supervised by Employee) had responsibility or generated or obtained Confidential information during the
Employment Term. 
 9. Non-Disparagement. 
 (a) Employee covenants and agrees that, he shall not make any false, defamatory or disparaging statements about the Company, Tube Supply or their affiliates, or the officers or directors of the Company,
Tube Supply or their affiliates that are reasonably likely to cause material damage to the Company, Tube Supply or their affiliates, or the officers or directors of the Company, Tube Supply or their affiliates. Nothing in this Section 9 shall
preclude Employee from making truthful statements that are required by applicable law, regulation or legal process. 
 (b) If a
court of competent jurisdiction determines that Employee has breached any covenant in this Section 9, then the duration of such covenant will be tolled for a period of time equal to the period of time during which such court determines that
such breach was continuing. 
 10. Reasonable Scope and Duration. Employee acknowledges that the restrictions in Sections
7, 8, and 9 of this Agreement are reasonable in scope, are necessary to protect the trade secrets and other confidential and proprietary information of the Company and its affiliates, that the benefits provided under this Agreement are full and fair
compensation for these covenants and that these covenants do not impair Employee’s ability to be employed in other areas of his expertise and experience. Specifically, Employee acknowledges the reasonableness of the international scope of these
covenants by reason of the international customer base and prospective customer base and activities of the Company, Tube Supply and their affiliates. Notwithstanding the foregoing, if any court determines that the terms of any of the restrictions
herein are unreasonable or unenforceable, such court may interpret, alter, amend or modify any or all of such terms to include as much of the scope, time period and intent as will render such restrictions enforceable, and then in such reduced form,
enforce such terms. In the event of Employee’s breach of any such covenant, the term of the covenant shall be extended for a period equal to the period that the breach continues. 

  
 E-11

 11. Waiver and Release. Except as expressly provided in this Section 11,
Employee shall not be entitled to any payments or benefits under Section 6(e)(2) unless and until (i) Employee executes and delivers to the Company a Waiver and Release that is in a form acceptable to the Company (the “Release”)
within thirty (30) days (or fifty (50) days, in the event that 29 CFR 1625.22 requires the Company to provide Employee forty-five (45) days to consider the Release) following Employee’s termination of employment with the Company,
and (ii) the revocation period for the Release has expired without revocation. If the conditions of this Section 11 are not satisfied, Employee shall forfeit all rights to payments or benefits under Section 6(e)(2) (other than the
payments or benefits provided to the Executive under Section 6(e)(2)(C) on or before the date on which Employee failed to satisfy the conditions of this Section 11). Such Waiver and Release may not, however, create new obligations from
Employee to Employer but, rather, shall require that Employee waives and releases any and all claims or potential claims and causes of action against the Employer. 
 12. Code Section 409A Compliance. Notwithstanding any provision of this Agreement to the contrary: 
 (a) If and to the extent any payment or benefits under this Agreement are otherwise subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, including any
regulations and other applicable authorities promulgated thereunder (the “Code”), the intent of the Parties is that such payment and benefits shall comply with Code Section 409A and, accordingly, to the maximum extent permitted, this
Agreement shall be interpreted, and such payment and benefits shall be paid or provided under such other conditions determined by the Company that cause such payment and benefits, to be in compliance therewith. To the extent that any provision
hereof is modified in order to comply with Code Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to the Parties hereto of the
applicable provision without violating the provisions of Code Section 409A. The Company makes no representation that any or all of the payments or benefits provided under this Agreement will be exempt from or comply with Code Section 409A
and makes no undertaking to preclude Code Section 409A from applying to any such payments or benefits. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on Employee by Code
Section 409A or damages for failing to comply with Code Section 409A. 
 (b) To the extent required under Code
Section 409A, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following Employee’s termination of employment
unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of
employment” or like terms shall mean “separation from service.” 
 (c) Each payment payable to Employee under
Section 6 on or after his date of termination shall be treated as a separate and distinct “payment” for purposes of Code Section 409A and, further is intended to be exempt from Code Section 409A, including but not limited to
the short-term deferral exemption thereunder. If and to the extent any such payment is determined to be subject to Code Section 409A 

  
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and is otherwise payable upon Employee’s termination of employment, in the event Employee is a “specified employee” (as defined in Code Section 409A), any such payment that
would otherwise have been payable in the first six (6) months following Employee’s termination of employment will not be paid to Employee until the date that is six (6) months and one (1) day following the date of Employee’s
termination of employment (or, if earlier, Employee’s date of death). Any such deferred payments will be paid in a lump sum; provided that no such actions shall reduce the amount of any payments otherwise payable to Employee under this
Agreement. Thereafter, the remainder of any such payments shall be payable in accordance with Section 6. 
 (d) All
expenses or other reimbursements to Employee under this Agreement, if any, shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Employee (provided that if any such
reimbursements constitute taxable income to Employee, such reimbursements shall be paid no later than March 15th of the calendar year following the calendar year in which the expenses to be reimbursed were incurred), and no such reimbursement
or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses eligible for reimbursement in any other taxable year. 
 (e) In no event may Employee, directly or indirectly, designate the calendar year of any payment under this Agreement. Whenever a payment under this Agreement specifies a period within which such payment
may be made, the actual date of payment within the specified period shall be within the sole discretion of the Company. Further notwithstanding any provision of this Agreement to the contrary, if the time period set forth in Section 11 begins
in one taxable year of Employee and ends in a subsequent taxable year, any payment or benefit scheduled to be provided under Section 6, to the extent such payment or benefit is otherwise subject to the requirements of Code Section 409A,
will commence in such subsequent taxable year of Employee. 
 (f) Whenever a payment under this Agreement specifies a period
within which such payment may be made, the actual date of payment within the specified period shall be within the sole discretion of the Company. 
 (g) In no event shall any payment under this Agreement that constitutes “deferred compensation” for purposes of Code Section 409A be offset by any other payment pursuant to this Agreement
or otherwise. 
 (h) To the extent required under Code Section 409A, (i) any reference herein to the term
“Agreement” shall mean this Agreement and any other plan, agreement, method, program, or other arrangement, with which this Agreement is required to be aggregated under Code Section 409A, and (ii) any reference herein to the term
“Company” shall mean the Company and all persons with whom the Company would be considered a single employer under Code Section 414(b) or 414(c). 
 13. Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt
requested, postage prepaid (provided that international mail shall be sent via overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the Parties at the addresses set forth below. Such notices, demands, claims and other
communications shall be deemed given: 

  
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	 	(a)	in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery; 

 

	 	(b)	in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail; or 

 

	 	(c)	in the case of facsimile, the date upon which the transmitting Party received confirmation of receipt by facsimile, telephone or otherwise; 

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

1420 Kensington Road, Suite 220 
 Oak Brook, IL 60523 
 Attn: Corporate Secretary 

or to Employee at Employee’s most recent address on file with the Company. 

Each Party, by written notice furnished to the other Party, may modify the applicable delivery address, except that notice of change of
address shall be effective only upon receipt. 
 14. Applicable Law. This Agreement shall be governed by and construed in
accordance with applicable federal laws and, to the extent not pre-empted by or inconsistent therewith, the laws of the State of Texas without regard to any jurisdiction’s conflict of law principles. 

15. Severability and Construction. If any provisions of this Agreement is declared void or unenforceable or against public policy,
such provision shall be deemed severable and severed from this Agreement and the balance of this Agreement shall remain in full force and effect. If a court of competent jurisdiction or arbitrator determines that any restriction in this Agreement is
overbroad or unreasonable under the circumstances, such restriction shall be modified or revised by such court or arbitrator to include the maximum reasonable restriction allowed by law. 

16. Remedies. Employee and Company acknowledge and agree that damages would not adequately compensate Company if Employee were to
breach any of his covenants contained in this Agreement. Consequently, Employee agrees that in the event of any such breach, which continues beyond any applicable notice and cure period provided in this Agreement, Company shall be entitled to
enforce this Agreement by means of an injunction or other equitable relief, in addition to any other remedies available including, without limitation, termination of Employee’s employment for Cause. 

  
 E-14

 17. Waiver. Failure to insist upon strict compliance with any of the terms, covenants
or conditions hereof shall not be deemed a waiver of such term, covenant or condition. 
 18. Entire Agreement
Modifications. This Agreement (including all exhibits hereto) constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements, oral and written, between the Parties hereto with
respect to the subject matter hereof, including, without limitation, the Prior Agreement. In the event of any inconsistency between any provision of this Agreement and any provision of any plan, employee handbook, personnel manual, program, policy,
arrangement or agreement of the Company or any of its affiliates, the provisions of this Agreement shall control. If Employee is entitled to severance pay or other benefits pursuant to the terms of this Agreement, Employee shall not be eligible to
receive any severance pay or other benefits pursuant to the terms of any other severance agreement or arrangement of the Company (or any affiliate of the Company). This Agreement may be modified or amended only by an instrument in writing signed by
both Parties. 
 19. Withholding. All payments made to Employee pursuant to this Agreement will be subject to withholding
of employment taxes and other lawful deductions, as applicable. 
 20. Company Property, Records, Files, and Equipment.
Employee agrees he will return all Company property, records, files, or any other Company-owned equipment in his possession within ten (10) days after the date of Employee’s termination of employment with the Company. 

21. Survival of Agreement. Except as otherwise set forth in this Agreement, to the extent necessary to carry out the intentions of
the Parties hereunder the respective rights and obligations of the Parties hereunder shall survive any termination of Employee’s employment. 
 22. Voluntary Execution of Agreement. Employee represents and agrees that he has carefully read and fully understands all of the provisions of this Agreement and that he is voluntarily entering
into this Agreement. Employee further affirms that, prior to the execution of this Agreement, he has been advised to and has had an opportunity to consult independent counsel concerning the terms and conditions hereof. 

23. Successors and Assigns. This Agreement shall bind and shall inure to the benefit of the Company and any and all of its
successors and assigns. This Agreement is personal to Employee and shall not be assignable by Employee. The Company may assign this Agreement to any entity which (i) purchases all or substantially all of the assets of the Company or
(ii) is a direct or indirect successor (whether by merger, sale of stock or transfer of assets) of the Company. Any such assignment shall be valid so long as the entity which succeeds to the Company expressly assumes the Company’s
obligations hereunder and complies with its terms. 
 24. Exclusive Jurisdiction and Venue. Any suit, claim or other
legal proceeding arising out of or related to this Agreement in any way must be brought in a federal or state court located in Harris County, Texas, and the Company and Employee 

  
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hereby irrevocably and unconditionally consent to the exclusive jurisdiction of such court for such purpose. The Company and Employee irrevocably and unconditionally consent and submit itself and
himself to the jurisdiction of such court(s) for the purposes of any such suit, claim or other legal proceeding and waive and will not plead or claim in any such court that venue is improper or that such suit, claim or other legal proceeding has
been brought in an inconvenient forum. 
 25. Gender, Singular and Plural. All pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the context may require, the singular may be read as the plural and the plural as the singular. 

26. Headings. The descriptive headings used herein are used for convenience of reference only and shall not constitute a part of
this Agreement. 
 27. Counterparts. This Agreement may be executed in two or more counterparts, any one of which shall
be deemed the original without reference to the others. 
 [remainder of page intentionally left blank] 

  
 E-16

 IN WITNESS WHEREOF, the Company and Employee have duly executed and delivered this Agreement as of
the day and year first above written. 
  

			
	A. M. CASTLE & CO.
		
	By:	 	 /s/ Scott F. Stephens

	
	Title: Vice President, Finance & CFO
	
	PAUL SORENSEN
	
	 /s/ Paul C. Sorensen

	Employee

  
 E-17

 EXHIBIT A 
 TRANSITION INCENTIVE PLAN (TIP) 
 Subject to adjustments at the sole discretion of the
Committee and the terms and conditions set forth in the Omnibus Incentive Plan, the TIP Pool for the performance period beginning January 1, 2012 and ending December 31, 2014 (the “Performance Period”) shall equal the product of
ten percent (10%) multiplied by the excess, if any, of (1) over (2), where: 
  

	(1)	Equals the cumulative earnings before interest, taxes, depreciation and amortization for the Performance Period for the combined Tube Supply and the Company’s
Castle Metals Oil & Gas commercial unit operations (“EBITDA”); and 

  

	(2)	The specified amount determined by the Committee, in its sole discretion, no later than ninety (90) days after the commencement of the Performance Period;

 provided, however, the TIP Pool, if any, may be reduced, at the sole discretion of the Committee, by ten percent (10%) if
the annual days sales outstanding on inventory (“DSI”) target for the combined Tube Supply and Company’s Castle Metals Oil & Gas commercial unit operations is not met for any one year of the Performance Period and by five
percent (5%) if the annual days sales outstanding on receivables (“DSO”) target for the combined Tube Supply and Company’s Castle Metals Oil & Gas commercial unit operations is not met for any one year of the Performance
Period (that is, up to 45% of the TIP Pool is at risk over the Performance Period). 
 The DSI and DSO targets for the combined Tube Supply and
Company’s Castle Metals Oil & Gas commercial unit operations shall be established each year by the Committee, in its sole discretion, consistent with targets established under the STIP or other internal financial targets. 

The calculation of the TIP Pool, EBITDA, DSI and DSO, including any and all adjustments thereto, shall be determined by the Committee, in its sole
discretion, subject the terms and conditions set forth in the Omnibus Incentive Plan. 

  
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