Document:

Exhibit 10.12

 Exhibit 10.12 
 EASTERN INSURANCE HOLDINGS, INC. 
 2006 STOCK INCENTIVE PLAN 
 Effective November 16, 2006 
 (As
Approved by Shareholders on December 18, 2006) 

 EASTERN INSURANCE HOLDINGS, INC. 
 2006 STOCK INCENTIVE PLAN 
 TABLE OF CONTENTS 
  

					
	 ARTICLE
	  	 	  	PAGE
			
	 ARTICLE 1.
	  	PURPOSE OF THE PLAN; TYPES OF AWARDS	  	1
			
	 ARTICLE 2.
	  	DEFINITIONS	  	1
			
	 ARTICLE 3.
	  	ADMINISTRATION	  	5
			
	 ARTICLE 4.
	  	COMMON STOCK SUBJECT TO THE PLAN	  	7
			
	 ARTICLE 5.
	  	ELIGIBILITY	  	8
			
	 ARTICLE 6.
	  	STOCK OPTIONS IN GENERAL	  	8
			
	 ARTICLE 7.
	  	TERM, VESTING AND EXERCISE OF OPTIONS	  	10
			
	 ARTICLE 8.
	  	EXERCISE OF OPTIONS FOLLOWING TERMINATION OF EMPLOYMENT OR SERVICE	  	11
			
	 ARTICLE 9.
	  	RESTRICTED STOCK	  	12
			
	 ARTICLE 10.
	  	ADJUSTMENT PROVISIONS	  	13
			
	 ARTICLE 11.
	  	GENERAL PROVISIONS	  	14

 ARTICLE 1. PURPOSE OF THE PLAN; TYPES OF AWARDS 
 1.1 Purpose. The Eastern Insurance Holdings, Inc. 2006 Stock Incentive Plan is intended to provide selected employees and non-employee directors
of Eastern Insurance Holdings and its Subsidiaries with an opportunity to acquire Common Stock of the Corporation. The Plan is designed to help the Corporation attract, retain, and motivate employees and non-employee directors to make substantial
contributions to the success of the Corporation’s business and the businesses of its Subsidiaries. Awards will be granted under the Plan based, among other things, on a participant’s level of responsibility and performance. 
 1.2 Authorized Plan Awards. Incentive Stock Options, Nonqualified Stock Options, and Restricted Stock may be awarded within the limitations of the
Plan herein described. 
 ARTICLE 2. DEFINITIONS 
 2.1 “Agreement.” A written or electronic agreement between the Corporation and a Participant evidencing the grant of an Award. A Participant may be issued one or more Agreements from time to time, reflecting
one or more Awards. 
 2.2 “Award.” The grant of a Stock Option or an award of Restricted Stock. 
 2.3 “Board.” The Board of Directors of the Corporation. 
 2.4 “Change in Control.” Except as otherwise provided in an Agreement, the first to occur of any of the following events: 
 (a) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), except for any of the
Corporation’s employee benefit plans, or any entity holding the Corporation’s voting securities for, or pursuant to, the terms of any such plan (or any trust forming a part thereof) (the “Benefit Plan(s)”), is or becomes the
beneficial owner, directly or indirectly, of the Corporation’s securities representing 19.9% or more of the combined voting power of the Corporation’s then outstanding securities other than pursuant to a transaction excepted in
Clause (d); 
 (b) there occurs a contested proxy solicitation of the Corporation’s shareholders that results in the
contesting party obtaining the ability to vote securities representing 19.9% or more of the combined voting power of the Corporation’s then outstanding securities; 
 (c) a binding written agreement is executed providing for a sale, exchange, transfer, or other disposition of all or substantially all of
the assets of the Corporation to another entity, except to an entity controlled directly or indirectly by the Corporation; 
 (d) the shareholders of the Corporation approve a merger, consolidation, or other reorganization of the Corporation, unless: 
 (i) under the terms of the agreement providing for such merger, consolidation, or reorganization, the shareholders of the Corporation immediately before such merger, consolidation, or reorganization, will own,
directly or indirectly immediately following 

  

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such merger, consolidation, or reorganization, at least 51% of the combined voting power of the outstanding voting securities of the Corporation resulting
from such merger, consolidation, or reorganization (the “Surviving Corporation”) in substantially the same proportion as their ownership of the voting securities immediately before such merger, consolidation, or reorganization; 

(ii) under the terms of the agreement providing for such merger, consolidation, or reorganization, the individuals who were members of
the Board immediately prior to the execution of such agreement will constitute at least 51% of the members of the board of directors of the Surviving Corporation after such merger, consolidation, or reorganization; and 
 (iii) based on the terms of the agreement providing for such merger, consolidation, or reorganization, no Person (other than (A) the
Corporation or any Subsidiary of the Corporation, (B) any Benefit Plan, (C) the Surviving Corporation or any Subsidiary of the Surviving Corporation, or (D) any Person who, immediately prior to such merger, consolidation, or
reorganization had beneficial ownership of 19.9% or more of the then outstanding voting securities) will have beneficial ownership of 19.9% or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities;

 (e) a plan of liquidation or dissolution of the Corporation, other than pursuant to bankruptcy or insolvency laws, is
adopted; or 
 (f) during any period of two consecutive years, individuals, who at the beginning of such period, constituted
the Board cease for any reason to constitute at least a majority of the Board unless the election, or the nomination for election by the Corporation’s shareholders, of each new director was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of the period. 
 Notwithstanding Clause (a), a Change in Control
shall not be deemed to have occurred if a Person becomes the beneficial owner, directly or indirectly, of the Corporation’s securities representing 19.9% or more of the combined voting power of the Corporation’s then outstanding securities
solely as a result of an acquisition by the Corporation of its voting securities which, by reducing the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 19.9% or more of the combined
voting power of the Corporation’s then outstanding securities; provided, however, that if a Person becomes a beneficial owner of 19.9% or more of the combined voting power of the Corporation’s then outstanding securities by reason of share
purchases by the Corporation and shall, after such share purchases by the Corporation, become the beneficial owner, directly or indirectly, of any additional voting securities of the Corporation (other than as a result of a stock split, stock
dividend or similar transaction), then a Change in Control of the Corporation shall be deemed to have occurred with respect to such Person under Clause (a). In no event shall a Change in Control of the Corporation be deemed to occur under
Clause (a) with respect to Benefit Plans. 
 2.5 “Code.” The Internal Revenue Code of 1986, as amended. 
  

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 2.6 “Code of Conduct.” The policies and procedures related to employment of employees by the
Corporation or a Subsidiary set forth in the Corporation’s employee handbook or any similar document. The Code of Conduct may be amended and updated at any time. The term “Code of Conduct” shall also include any other policy or
procedure that may be adopted by the Corporation or a Subsidiary and communicated to Employees and Non-Employee Directors of the Corporation or a Subsidiary. 
 2.7 “Committee.” The Compensation/Human Resources Committee of the Board. 
 2.8 “Common
Stock.” The common stock of the Corporation (no par value) as described in the Corporation’s Articles of Incorporation, or such other stock as shall be substituted therefor. 
 2.9 “Corporate Transaction.” Any transaction in which the Corporation issues Common Stock in connection with the mutual to stock conversion of
a mutual insurance company and the simultaneous acquisition of such mutual insurance company by the Corporation. 
 2.10
“Corporation.” Eastern Insurance Holdings, Inc., a Pennsylvania corporation. 
 2.11 “Employee.” Any common law employee
of the Corporation or a Subsidiary. An Employee does not include any individual who: (i) does not receive payment for services directly from the Corporation’s or a Subsidiary’s payroll; (ii) is employed by an employment agency
that is not a Subsidiary; or (iii) who renders services pursuant to a written arrangement that expressly provides that the service provider is not eligible for participation in the Plan, regardless if such person is later determined by the
Internal Revenue Service or a court of law to be a common law employee. 
 2.12 “Exchange Act.” The Securities Exchange Act
of 1934, as amended. 
 2.13 “Incentive Stock Option.” A Stock Option intended to satisfy the requirements of Code
Section 422(b). 
 2.14 “Non-Employee Director.” A member of the Board who is not an Employee. 
 2.15 “Nonqualified Stock Option.” A Stock Option which does not satisfy the requirements of Code Section 422(b). 
 2.16 “Optionee.” A Participant who is awarded a Stock Option pursuant to the provisions of the Plan. 
 2.17 “Participant.” An Employee or Non-Employee Director to whom an Award has been granted and remains outstanding. 
 2.18 “Performance Criteria.” Any objective determination based on one or more of the following areas of performance of the Corporation, a
Subsidiary, or any division, department or group of either which includes, but is not limited to: (a) earnings, (b) cash flow, (c) revenue, (d) financial ratios, (e) market performance, (f) shareholder return,
(g) operating profits (including earnings before interest, taxes, depreciation and amortization), (h) earnings per share, (i) return on assets, (j) return on equity, (k) return on investment, (l) stock price,
(m) reserve 

  

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adequacy, (n) expense reduction, (o) systems conversion, (p) special projects as determined by the Committee, and (q) acquisition
integration initiatives. Performance Criteria shall be established by the Committee prior to the issuance of a Performance Grant. 
 2.19
“Performance Goal.” One or more goals established by the Committee, with respect to an Award intended to constitute a Performance Grant, that relate to one or more Performance Criteria. A Performance Goal shall relate to such period of
time, not less than one year (unless coupled with a vesting schedule of at least one year) or more than five years, as may be specified by the Committee at the time of the awarding of a Performance Grant. 
 2.20 “Performance Grant.” An Award, the vesting or receipt without restriction of which is conditioned on the satisfaction of one or more
Performance Goals. 
 2.21 “Plan.” The Eastern Insurance Holdings, Inc. 2006 Stock Incentive Plan. 
 2.22 “Restricted Stock.” An award of Common Stock pursuant to the provisions of the Plan, which award is subject to such restrictions and other
conditions, including achievement of one or more performance goals, as may be specified by the Committee at the time of such award. 
 2.23
“Retirement.” With respect to an employee, the termination of a Participant’s employment following the first day of the month coincident with or next following attainment of age 65, as the term “Normal Retirement Date”
is defined in the Eastern Insurance Holdings, Inc. Employee Stock Ownership Plan, or attainment of age 55 and the completion of five (5) years service as the term Early Retirement Date is defined in the Eastern Insurance Holdings, Inc.
Employee Stock Ownership Plan. With respect to a Non-Employee Director, any of the following: (i) the resignation of such Non-Employee Director from the Board, (ii) the failure of such Non-Employee Director to stand for reelection to the
Board, or (iii) the failure of the shareholders of the Corporation to reelect such Non-Employee Director to the Board, provided, however, the Board may designate a Non-Employee Director as a director emeritus, in which case, Retirement shall
not be deemed to have occurred. 
 2.24 “Securities Act.” The Securities Act of 1933, as amended. 
 2.25 “Stock Option” or “Option.” A grant of a right to purchase Common Stock pursuant to the provisions of the Plan. 
 2.26 “Subsidiary.” A subsidiary corporation, as defined in Code Section 424(f), that is a subsidiary of a relevant corporation.

 2.27 “Termination or Dismissal For Cause.” Termination of an Employee by the Corporation or a Subsidiary or dismissal of a
Non-Employee Director from the Board after: 
 (a) any government regulatory agency recommends or orders in writing that the
Corporation or a Subsidiary terminate the employment of such Employee or relieve him or her of his or her duties; 
 (b) such
Employee or Non-Employee Director is convicted of or enters a plea of guilty or nolo contendere to a felony, a crime of falsehood, or a crime involving fraud or moral turpitude, or the actual incarceration of the Employee or
Non-Employee Director for a period of 45 consecutive days; 
  

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 (c) a determination by the Committee that such Employee willfully failed to follow the
lawful instructions of the Board or any officer of the Corporation or a Subsidiary after such Employee’s receipt of written notice of such instructions, other than a failure resulting from the Employee’s incapacity because of physical or
mental illness; 
 (d) a determination by the Committee that the willful or continued failure by such Employee or Non-Employee
Director to substantially and satisfactorily perform his duties with the Corporation or a Subsidiary (other than any such failure resulting from the Employee’s or Non-Employee Director’s “permanent and total disability” (as
defined in Code Section 22(e)(3)) or as a result of physical or mental illness), within a reasonable period of time after a demand for substantial performance or notice of lack of substantial or satisfactory performance is delivered to the
Employee or Non-Employee Director, which demand identifies the manner in which the Employee or Non-Employee Director has not substantially or satisfactorily performed his or her duties; or 
 (e) a determination by the Committee that such Employee or Non-Employee Director has failed to conform to the Corporation’s Code of
Conduct. 
 For purposes of the Plan, no act, or failure to act, on an Employee’s or Non-Employee Director’s part shall be deemed
“willful” unless done, or omitted to be done, by such Employee or Non-Employee Director not in good faith and without reasonable belief that such Employee’s or Non-Employee Director’s action or omission was in the best interest
of the Corporation or a Subsidiary. 
 ARTICLE 3. ADMINISTRATION 
 3.1 The Committee. The Plan shall be administered by the Compensation/Human Resources Committee of the Board composed of two or more members of
the Board, all of whom are (a) “non-employee directors” as such term is defined under the rules and regulations adopted from time to time by the Securities and Exchange Commission pursuant to Section 16(b) of the Exchange Act,
(b) “outside directors” within the meaning of Code Section 162(m), and (c) independent under any applicable stock listing agreement with, or rules of, any exchange or electronic trading system. The Board may from time to
time remove members from, or add members to, the Committee. Vacancies on the Committee, however caused, shall be filled by the Board. 
 3.2
Powers of the Committee. 
 (a) The Committee shall be vested with full authority to make such rules and regulations as
it deems necessary or desirable to administer the Plan and to interpret the provisions of the Plan, unless otherwise determined by a majority of the disinterested members of the Board. Any determination, decision, or action of the Committee in
connection with the construction, interpretation, administration, or application of the Plan shall be final, conclusive, 

  

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and binding upon all Participants and any person claiming under or through a Participant, unless otherwise determined by a majority of the disinterested
members of the Board. 
 (b) Subject to the terms, provisions and conditions of the Plan and subject to review and approval by
a majority of the disinterested members of the Board, the Committee shall have exclusive jurisdiction to: 
 (i) determine and
select the Employees and Non-Employee Directors to be granted Awards (it being understood that more than one Award may be granted to the same person); 
 (ii) determine the number of shares subject to each Award; 
 (iii) determine the date or
dates when the Awards will be granted; 
 (iv) determine the exercise price of shares subject to an Option in accordance with
Article 6; 
 (v) determine the date or dates when an Option may be exercised within the term of the Option specified
pursuant to Article 7; 
 (vi) determine whether an Option constitutes an Incentive Stock Option or a Nonqualified Stock
Option; 
 (vii) determine the Performance Criteria and establish Performance Goals with respect thereto, to be applied to an
Award; and 
 (viii) prescribe the form, which shall be consistent with the Plan document, of the Agreement evidencing any
Awards granted under the Plan. 
 3.3 Liability. No member of the Board or the Committee shall be liable for any action or
determination made in good faith by the Board or the Committee with respect to this Plan or any Awards granted under this Plan. 
 3.4
Establishment and Certification of Performance Goals. The Committee shall establish, prior to grant, Performance Goals with respect to each Award intended to constitute a Performance Grant. Except as may otherwise be provided in
Article 8 hereof, no Option that is intended to constitute a Performance Grant may be exercised until the Performance Goal or Goals applicable thereto is or are satisfied, nor shall any share of Restricted Stock that is intended to constitute a
Performance Grant be released to a Participant until the Performance Goal or Goals applicable thereto is or are satisfied. 
 3.5 No
Waiver of Performance Goals. Except as may otherwise be provided in Article 8 hereof, the Committee or the Board shall not waive any Performance Goals with respect to the grant of any Award hereunder. 
 3.6 Performance Grants Not Mandatory. Nothing herein shall be construed as requiring that any Award be made a Performance Grant. 
  

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 ARTICLE 4. COMMON STOCK SUBJECT TO THE PLAN 
 4.1 Common Stock Authorized. 
 (a) The initial total aggregate number of shares of Common Stock for which Options may be granted under the Plan shall not exceed 747,500 shares, provided that, on the first day of the month following a Corporate Transaction, the maximum
number of shares for which Options may be granted under the Plan shall be automatically increased by an amount equal to 10% of the number of shares issued by the Corporation in connection with such Corporate Transaction. The limitation established
by the preceding sentence shall be subject to adjustment as provided in Article 10. 
 (b) The maximum aggregate number
of shares of Common Stock for which Restricted Stock may be awarded under the Plan shall not exceed 299,000 shares, provided that, (i) the number of shares of Common Stock for which Restricted Stock may be granted under the Plan shall
automatically increase on the first trading day of January of each calendar year during the term of the Plan, beginning with calendar year 2008, by an amount equal to one percent (1%) of the shares of Common Stock outstanding on the last
trading day in December of the immediately preceding calendar year, and (ii) on the first day of the month following a Corporate Transaction, the maximum number of shares may be awarded as Restricted Stock under the Plan shall be automatically
increased by an amount equal to 4% of the number of shares issued by the Corporation in connection with such Corporate Transaction. The limitation established by the preceding sentence shall be subject to adjustment as provided in Article 10.

 (c) In addition to the automatic increases in shares of Common Stock available under the Plan as provided in paragraphs
(a) and (b) of this Section 4.1, the number of shares of Common Stock for which Awards may be granted under the Plan shall automatically increase on the first trading day of January of each calendar year during the term of the Plan,
beginning with calendar year 2008, by an amount equal to one percent (1%) of the shares of Common Stock outstanding on the last trading day in December of the immediately preceding calendar year. The Awards that may be granted from shares
of Common Stock available under the Plan as a result of the operation of this Section 4.1(c) may be awarded as either Options or Restricted Stock. 
 (d) The maximum aggregate number of shares of Common Stock for which Incentive Stock Options may be granted under the Plan shall not exceed 500,000. The limitation established by the preceding sentence shall be
subject to adjustment as provided in Article 10. 
 (e) The maximum aggregate number of shares of Common Stock for which
Awards may be granted under the Plan to non-employee directors shall not exceed 30%. The limitation established by the preceding sentence shall be subject to adjustment as provided in Article 10. 
 (f) If any Option is exercised by tendering Common Stock, either actually or by attestation, to the Corporation as full or partial payment
in connection with the exercise of such Option under the Plan, or if the tax withholding requirements are satisfied through such tender, only the number of shares of Common Stock issued net of the Common Stock tendered shall be deemed delivered for
purposes of determining the maximum number of shares available for Awards under the Plan. 
  

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 4.2 Shares Available. The Common Stock to be issued under the Plan shall be the Corporation’s
Common Stock, which shall be made available at the discretion of the Board, either from authorized but unissued Common Stock, treasury shares, or shares acquired by the Corporation, including shares purchased on the open market. In the event that
any outstanding Award under the Plan for any reason expires, terminates, or is forfeited, the shares of Common Stock allocable to such expiration, termination, or forfeiture may thereafter again be made subject to an Award under the Plan.

 ARTICLE 5. ELIGIBILITY 
 5.1
Participation. Awards shall be granted by the Committee only to persons who are Employees and Non-Employee Directors. 
 5.2
Incentive Stock Option Eligibility. Incentive Stock Option Awards may only be granted to Employees of the Corporation. Notwithstanding any other provision of the Plan to the contrary, an individual who owns more than ten percent of the total
combined voting power of all classes of outstanding stock of the Corporation shall not be eligible for the grant of an Incentive Stock Option, unless the special requirements set forth in Sections 6.1 and 7.1 are satisfied. For purposes of this
section, in determining stock ownership, an individual shall be considered as owning the stock owned, directly or indirectly, by or for his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants. Stock
owned, directly or indirectly, by or for a corporation, partnership, estate, or trust shall be considered as being owned proportionately by or for its shareholders, partners, or beneficiaries. “Outstanding stock” shall include all stock
actually issued and outstanding immediately before the grant of the Option. “Outstanding stock” shall not include shares authorized for issue under outstanding Options held by the Optionee or by any other person. 
 ARTICLE 6. STOCK OPTIONS IN GENERAL 
 6.1
Exercise Price. The exercise price of an Option to purchase a share of Common Stock shall be, in the case of an Incentive Stock Option, not less than 100% of the fair market value of a share of Common Stock on the date the Option is granted,
except that the exercise price shall be not less than 110% of such fair market value in the case of an Incentive Stock Option granted to any individual described in the second sentence of Section 5.2. The exercise price of an Option to purchase
a share of Common Stock shall be, in the case of a Nonqualified Stock Option, not less than 100% of the fair market value of a share of Common Stock on the date the Option is granted. The exercise price shall be subject to adjustment pursuant to the
limited circumstances set forth in Article 10. 
 6.2 Limitation on Incentive Stock Options. The aggregate fair market value
(determined as of the date an Option is granted) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any individual in any calendar year (under the Plan and all other plans maintained by the
Corporation and Subsidiaries) shall not exceed $100,000. 
  

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 6.3 Determination of Fair Market Value. 
 (a) If the Common Stock is not listed on an established stock exchange or exchanges but is listed on NASDAQ, the fair market value per
share shall be the closing sale price for the Common Stock on the day an Option is granted. If no sale of Common Stock has occurred on that day, the fair market value shall be determined by reference to such price for the next preceding day on which
a sale occurred. 
 (b) If the Common Stock is not listed on an established stock exchange or on NASDAQ, fair market value per
share shall be the mean between the closing dealer “bid” and “asked” prices for the Common Stock for the day an Option is granted, and if no “bid” and “asked” prices are quoted for the day an Option is
granted, the fair market value shall be determined by reference to such prices on the next preceding day on which such prices were quoted. 
 (c) If the Common Stock is listed on an established stock exchange or exchanges, the fair market value shall be deemed to be the closing price of Common Stock on such stock exchange or exchanges on the day an Option
is granted. If no sale of Common Stock has been made on any stock exchange on that day, the fair market value shall be determined by reference to such price for the next preceding day on which a sale occurred. 
 (d) In the event that the Common Stock is not traded on an established stock exchange or on NASDAQ, and no closing dealer “bid”
and “asked” prices are available on the day an Option is granted, then fair market value will be the price established by the Committee in good faith. 
 In connection with determining the fair market value of a share of Common Stock on any relevant day, the Committee may use any source deemed reliable; and its determination shall be final and binding on all affected
persons, absent clear error. 
 6.4 Limitation on Option Awards. Awards under this Plan (and any other plan of the Corporation or a
Subsidiary providing for stock option awards) to any individual shall not exceed, in the aggregate, Options to acquire 100,000 shares of Common Stock during any period of 12 consecutive months. Such limitation shall be subject to
adjustment in the manner described in Article 10. 
 6.5 Transferability of Options. 
 (a) Except as provided in Subsection (b), an Option granted hereunder shall not be transferable other than by will or the laws of
descent and distribution, and such Option shall be exercisable, during the Optionee’s lifetime, only by him or her. 
 (b) An Optionee may, with the prior approval of the Committee, transfer a Nonqualified Stock Option for no consideration to or for the benefit of one or more members of the Optionee’s “immediate family” (including a trust,
partnership, or limited liability company for the benefit of one or more of such members), subject to such limits as the Committee may impose, and the transferee shall remain subject to all terms and conditions applicable to the Option prior to its
transfer. The term “immediate family” shall mean an Optionee’s spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers, and grandchildren (and, for this purpose, shall also include the Optionee). 

 

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 ARTICLE 7. TERM, VESTING AND EXERCISE OF OPTIONS 
 7.1 Term and Vesting. Each Option granted under the Plan shall terminate on the date determined by the Committee, and specified in the Agreement;
provided, however, that (i) each intended Incentive Stock Option granted to an individual described in the second sentence of Section 5.2 shall terminate not later than five years after the date of the grant, (ii) each other intended
Incentive Stock Option shall terminate not later than ten years after the date of grant, and (iii) each Option granted under the Plan which is intended to be a Nonqualified Stock Option shall terminate not later than ten years and one month
after the date of grant. Unless otherwise approved by the Committee and provided in the Agreement, each Option granted under the Plan shall vest in three equal annual installments, provided, however, that Options will be fully exercisable (i.e.,
become 100% vested) after the earlier of the date on which, unless otherwise provided in an Agreement (ii) a Change in Control occurs; or (iii) , the Optionee terminates employment or service as a Non-Employee Director by reason of death,
“permanent and total disability” (as defined in Code Section 22(e)(3)), or Retirement. Except as provided in Article 8, an Option may be exercised only during the continuance of the Optionee’s employment with, or service as
a Non-Employee Director with respect to, the Corporation. 
 7.2 Exercise. 
 (a) A person electing to exercise an Option shall give notice to the Corporation of such election and of the number of shares he or she
has elected to purchase and shall at the time of exercise tender the full exercise price of the shares he or she has elected to purchase. The exercise notice shall be delivered to the Corporation in person, by certified mail, or by such other method
(including electronic transmission) and in such form as determined by the Committee. The exercise price shall be paid in full, in cash, upon the exercise of the Option; provided, however, that in lieu of cash, with the approval of the Committee at
or prior to exercise, an Optionee may exercise an Option by tendering to the Corporation shares of Common Stock owned by him or her and having a fair market value equal to the cash exercise price applicable to the Option (with the fair market value
of such stock to be determined in the manner provided in Section 6.3) or by delivering such combination of cash and such shares as the Committee in its sole discretion may approve; further provided, however, that no such manner of exercise
shall be permitted if such exercise would violate Section 402 of the Sarbanes-Oxley Act of 2002. Notwithstanding the foregoing, Common Stock acquired pursuant to the exercise of an Incentive Stock Option may not be tendered as payment
unless the holding period requirements of Code Section 422(a)(1) have been satisfied, and Common Stock not acquired pursuant to the exercise of an Incentive Stock Option may not be tendered as payment unless it has been held, beneficially and
of record, for at least six months (or such longer time as may be required by applicable securities law or accounting principles to avoid adverse consequences to the Corporation or a Participant). 
 (b) A person holding more than one Option at any relevant time may, in accordance with the provisions of the Plan, elect to exercise such
Options in any order. 
  

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 (c) At the request of the Participant and to the extent permitted by applicable law, the
Committee may, in its sole discretion, selectively approve arrangements whereby the Participant irrevocably authorizes a third party to sell shares of Common Stock (or a sufficient portion of the shares) acquired upon the exercise of an Option and
to remit to the Corporation a sufficient portion of the sales proceeds to pay the entire exercise price and any tax withholding required as a result of such exercise. 
 ARTICLE 8. EXERCISE OF OPTIONS FOLLOWING TERMINATION 
 OF EMPLOYMENT OR SERVICE 
 8.1 Retirement; Other Termination by Corporation or Subsidiary; Change in Control. In the event of an Optionee’s termination of employment or
service as a Non-Employee Director (i) due to Retirement, (ii) by the Corporation or a Subsidiary other than Termination for Cause, or (iii) due to a Change in Control, such Optionee’s Option shall lapse at the earlier of the
expiration of the term of such Option or: 
 (a) in the case of an Incentive Stock Option, three months from the date of such
termination of employment; and 
 (b) in the case of a Nonqualified Stock Option, one year from the date of such termination
of employment or service as a Non-Employee Director. 
 8.2 Death or Total Disability. In the event of an Optionee’s termination
of employment or service as a Non-Employee Director by reason of death, “permanent and total disability” (as defined in Code Section 22(e)(3)), such Optionee’s Option shall lapse at the earlier of the expiration of the term of
such Option or: 
 (a) in the case of an Incentive Stock Option, one year from the date of such termination of employment; and

 (b) in the case of a Nonqualified Stock Option, one year from the date of such termination of employment or service as a
Non-Employee Director. 
 8.3 Termination or Dismissal For Cause; Other Termination by Optionee. In the event of an Optionee’s
Termination or Dismissal For Cause, or in the event of termination of employment at the election of an Optionee, such Optionee’s Option shall lapse upon such termination. 
 8.4 Special Termination Provisions for Options. 
 (a) In the event that an Optionee’s employment or service as a Non-Employee Director is terminated and the Committee deems it equitable to do so, the Committee may, in its discretion and subject to the approval
of a majority of the disinterested members of the Board, waive any continuous service requirement for vesting (but not any Performance Goal or Goals) specified in an Agreement pursuant to Section 7.1 and permit exercise of an Option held by
such Optionee prior to the satisfaction of such continuous service requirement. Any such waiver may be made with retroactive effect, provided it is made within 60 days following the Optionee’s termination of employment or service as a
Non-Employee Director. 
  

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 (b) In the event the Committee waives the continuous service requirement with respect to
an Option as set forth in Section 8.4(a) above and the circumstance of an Optionee’s termination of employment or service as a Non-Employee Director is described in Section 8.1, the affected Option will lapse as otherwise provided in
the relevant section. 
 (c) In the event the Committee waives the continuous service requirement with respect to an Option as
set forth in Section 8.4(a) above, such Option shall lapse at the earlier of the expiration of the term of such Option or: 
 (i) in the case of an Incentive Stock Option, three months from the date of termination of employment; and 
 (ii) in
the case of a Nonqualified Stock Option, one year from the date of termination of employment or service as a Non-Employee Director. 
 ARTICLE
9. RESTRICTED STOCK 
 9.1 In General. Each Restricted Stock Award shall be subject to such terms and conditions as may be specified
in the Agreement issued to a Participant to evidence the grant of such Award. Subject to Section 3.6, a Restricted Stock Award shall be subject to a vesting schedule or Performance Goals, or both. 
 9.2 Minimum Vesting Period for Certain Restricted Stock Awards. Each Restricted Stock Award granted to a Participant shall be fully exercisable
(i.e., become 100% vested) only after the earlier of the date on which (i) the Participant completes three years of continuous employment with, or service as a Non-Employee Director with the Corporation or a Subsidiary immediately following the
date that the Restricted Stock was awarded (or such later date as may be specified in an Agreement, including a date that may be tied to the satisfaction of one or more Performance Goals), unless otherwise provided in an Agreement (ii) a Change
in Control occurs; or (iii) the Participant terminates employment or service as a Non-Employee Director by reason of death, “permanent and total disability” (as defined in Code Section 22(e)(3)), or Retirement. 
 9.3 Waiver of Vesting Period for Certain Restricted Stock Awards. In the event that a Participant’s employment or service as a Non-Employee
Director is terminated and the Committee deems it equitable to do so, the Committee may, in its discretion and subject to the approval of a majority of the disinterested members of the Board, waive any minimum vesting period (but not any Performance
Goal or Goals) with respect to a Restricted Stock Award held by such Participant. Any such waiver may be made with retroactive effect, provided it is made within 60 days following such Participant’s termination of employment or service as
a Non-Employee Director. 
 9.4 Issuance and Retention of Share Certificates By Corporation. One or more share certificates shall be
issued upon the grant of a Restricted Stock Award; but until such time as the Restricted Stock shall vest or otherwise become distributable by reason of satisfaction of one or more Performance Goals, the Corporation shall retain such share
certificates. 
  

 12 

 9.5 Stock Powers. At the time of the grant of a Restricted Stock Award, the Participant to whom
the grant is made shall deliver such stock powers, endorsed in blank, as may be requested by the Corporation. 
 9.6 Release of
Shares. Within 30 days following the date on which a Participant becomes entitled under an Agreement to receive shares of previously Restricted Stock, the Corporation shall deliver to him or her a certificate evidencing the ownership of
such shares. 
 9.7 Forfeiture of Restricted Stock Awards. In the event of the forfeiture of a Restricted Stock Award, by reason of a
Participant’s termination of employment or termination of service as a Non-Employee Director (including termination of service as a director emeritus) prior to vesting, the failure to achieve a Performance Goal or otherwise, the Corporation
shall take such steps as may be necessary to cancel the affected shares and return the same to its treasury. 
 9.8 Assignment, Transfer,
Etc. of Restricted Stock Rights. The potential rights of a Participant to shares of Restricted Stock may not be assigned, transferred, sold, pledged, hypothecated, or otherwise encumbered or disposed of until such time as unrestricted
certificates for such shares are received by him or her. 
 9.9 Shareholder Rights. Participants who have been awarded shares of
Restricted Stock shall be entitled to vote and to receive dividends with respect to such Restricted Stock during the periods of restriction to the same extent as such holders would have been entitled if the Restricted Stock were unrestricted Common
Stock. 
 ARTICLE 10. ADJUSTMENT PROVISIONS 
 10.1 Share Adjustments. 
 (a) In the event that the shares of Common Stock of the
Corporation, as presently constituted, shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Corporation, or if the number of such shares of Common Stock shall be changed through the payment
of a stock dividend, stock split or reverse stock split, then (i) the shares of Common Stock authorized hereunder to be made the subject of Awards, (ii) the shares of Common Stock then subject to outstanding Awards and the exercise price
thereof (where relevant), (iii) the maximum number of Awards that may be granted within a 12-month period and (iv) the nature and terms of the shares of stock or securities subject to Awards hereunder shall be increased, decreased or
otherwise changed to such extent and in such manner as may be necessary or appropriate to reflect any of the foregoing events. 
 (b) If there shall be any other change in the number or kind of the outstanding shares of the Common Stock of the Corporation, or of any stock or other securities into which such Common Stock shall have been changed, or for which it shall
have been exchanged, and if a majority of the disinterested members of the Board shall, in its sole discretion, determine that such change equitably requires an adjustment in any Award which was theretofore granted or which may thereafter be granted
under the Plan, then such adjustment shall be made in accordance with such determination. 
  

 13 

 (c) In the event that the Corporation declares a special cash dividend or return of
capital after the effective date of this Plan in an amount per share which exceeds 10% of the fair market value of a share of Common Stock as of the date of declaration, the per share exercise price of all Options previously granted under the Plan
that remain unexercised as of the date of such declaration shall be proportionately adjusted to give effect to such special cash dividend or return of capital; provided, however, that if such treatment with respect to Incentive Stock Options would
be treated as a modification of outstanding incentive stock options with the effect that, for purposes of Code Sections 422 and 425(h), and the rules and regulations thereunder, new Incentive Stock Options would be deemed granted, then, in the sole
discretion of the Committee, no adjustment to the per share exercise price shall be made. In addition, no such adjustment of the per share exercise price shall be made with respect to any Option if applicable regulatory requirements prohibit such an
adjustment. 
 (d) The grant of an Award pursuant to the Plan shall not affect in any way the right or power of the
Corporation to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge, to consolidate, to dissolve, to liquidate, or to sell or transfer all or any part of its business or assets. 

10.2 Corporate Changes. A liquidation or dissolution of the Corporation, a merger or consolidation in which the Corporation is not the
surviving Corporation or a sale of all or substantially all of the Corporation’s assets, shall cause each outstanding Award to terminate, except to the extent that another corporation may and does, in the transaction, assume and continue the
Award or substitute its own awards. 
 10.3 Fractional Shares. Fractional shares resulting from any adjustment in Awards pursuant to
this article may be settled as the Committee shall determine. 
 10.4 Binding Determination. To the extent that the foregoing
adjustments relate to stock or securities of the Corporation, such adjustments shall be made by a majority of the disinterested members of the Board, whose determination in that respect shall be final, binding, and conclusive. Notice of any
adjustment shall be given by the Corporation to each holder of an Award which shall have been so adjusted. 
 ARTICLE 11. GENERAL PROVISIONS

 11.1 Effective Date. The Plan shall become effective upon the adoption of the Plan by the Board, provided that any Award made
hereunder shall be subject to the approval of the Plan by the shareholders of the Corporation within 12 months of adoption of the Plan by the Board. 
 11.2 Termination of the Plan. Unless previously terminated by the Board, the Plan shall terminate on, and no Award shall be granted after, the day immediately preceding the tenth anniversary of its adoption by
the Board. 
 11.3 Limitation on Termination, Amendment or Modification. 
 (a) The Board may at any time terminate, amend, modify or suspend the Plan, provided that, without the approval of the shareholders of the
Corporation, no amendment or modification shall be made solely by the Board which: 
 (i) increases the maximum number of
shares of Common Stock as to which Awards may be granted under the Plan (except as provided in Section 10.1); 
  

 14 

 (ii) changes the class of eligible Participants; or 
 (iii) otherwise requires the approval of shareholders under applicable state law or under applicable federal law to avoid potential
liability or adverse consequences to the Corporation or a Participant. 
 (b) No amendment, modification, suspension, or
termination of the Plan shall in any manner affect any Award theretofore granted under the Plan without the consent of the Participant or any person validly claiming under or through the Participant. 
 11.4 No Right to Grant of Award or Continued Employment or Service. Nothing contained in this Plan or otherwise shall be construed to
(a) require the grant of an Award to an individual who qualifies as an Employee or Non-Employee Director, or (b) confer upon a Participant any right to continue in the employ or service of the Corporation or any Subsidiary or limit in any
respect the right of the Corporation or of any Subsidiary to terminate the Participant’s employment or service at any time and for any reason. 
 11.5 No Obligation. No exercise of discretion under this Plan with respect to an event or person shall create an obligation to exercise such discretion in any similar or same circumstance, except as otherwise provided or required by
law. 
 11.6 Withholding Taxes. 
 (a) Subject to the provisions of Subsection (b), the Corporation will require, where sufficient funds are not otherwise available, that a Participant who is an Employee pay or reimburse to it any withholding
taxes when withholding is required by law. 
 (b) With the permission of the Committee, a Participant who is an Employee may
satisfy the withholding obligation described in Subsection (a), in whole or in part, by electing to have the Corporation withhold shares of Common Stock (otherwise issuable to him or her) having a fair market value equal to the amount required
to be withheld. An election by a Participant who is an Employee to have shares withheld for this purpose shall be subject to such conditions as may then be imposed thereon by any applicable securities law. 
 11.7 Listing and Registration of Shares. 
 (a) No Option granted pursuant to the Plan shall be exercisable in whole or in part, and no share certificate shall be delivered, if at any relevant time the Committee determines in its discretion that the listing,
registration, or qualification of the shares of Common Stock subject to an Award on any securities exchange or under any applicable law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or
in connection with, such Award, until such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. 
  

 15 

 (b) If a registration statement under the Securities Act with respect to the shares
issuable under the Plan is not in effect at any relevant time, as a condition of the issuance of the shares, a Participant (or any person claiming through a Participant) shall give the Committee a written or electronic statement, satisfactory in
form and substance to the Committee, that he or she is acquiring the shares for his or her own account for investment and not with a view to their distribution. The Corporation may place upon any stock certificate for shares issued under the Plan
the following legend or such other legend as the Committee may prescribe to prevent disposition of the shares in violation of the Securities Act or other applicable law: 
 ‘THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (“ACT”) AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR OFFERED FOR SALE
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THEM UNDER THE ACT OR A WRITTEN OPINION OF COUNSEL FOR THE CORPORATION THAT REGISTRATION IS NOT REQUIRED.’ 
 11.8 Code Section 409A. Notwithstanding any provision of the Plan to the contrary, if the application of any provision of this Plan or an
Agreement would cause adverse tax consequences under Code Section 409A or the guidance promulgated thereunder, such provision of the Plan or Agreement shall be modified and interpreted to maintain, to the maximum extent practicable, the
original intent of the applicable provision without resulting in the interest and penalties set forth in Code Section 409A. 
 11.9
Disinterested Director. For purposes of this Plan, a director shall be deemed “disinterested” if such person could qualify as a member of the Committee under Section 3.1. 
 11.10 Gender; Number. Words of one gender, wherever used herein, shall be construed to include each other gender, as the context requires. Words
used herein in the singular form shall include the plural form, as the context requires, and vice versa. 
 11.11 Applicable
Law. Except to the extent preempted by federal law, this Plan document, and the Agreements issued pursuant hereto, shall be construed, administered, and enforced in accordance with the domestic internal law of the Commonwealth of Pennsylvania.

 11.12 Headings. The headings of the several articles and sections of this Plan document have been inserted for convenience of
reference only and shall not be used in the construction of the same. 
  

 16WOLVERINE TUBE, INC 2007 NON-QUALIFIED STOCK OPTION PLAN

 EXHIBIT 10.1 
 WOLVERINE TUBE, INC. 
  

 2007 NON-QUALIFIED STOCK OPTION PLAN 
  

 Effective March 29, 2007 

 TABLE OF CONTENTS 
  

			
	 ARTICLE I PURPOSE
	  	3
	 ARTICLE II DEFINITIONS
	  	3
	 ARTICLE III ADMINISTRATION
	  	7
	 ARTICLE IV SHARE LIMITATION
	  	10
	 ARTICLE V ELIGIBILITY AND GENERAL REQUIREMENTS FOR AWARDS
	  	12
	 ARTICLE VI STOCK OPTIONS
	  	12
	 ARTICLE VII TERMINATION
	  	15
	 ARTICLE VIII CHANGE IN CONTROL PROVISIONS
	  	16
	 ARTICLE IX TERMINATION OR AMENDMENT OF PLAN
	  	17
	 ARTICLE X UNFUNDED PLAN
	  	18
	 ARTICLE XI GENERAL PROVISIONS
	  	18
	 ARTICLE XII EFFECTIVE DATE OF PLAN
	  	20
	 ARTICLE XIII TERM OF PLAN
	  	20
	 ARTICLE XIV NAME OF PLAN
	  	21

  

 i 

 WOLVERINE TUBE, INC. 
  

 2007 NON-QUALIFIED STOCK OPTION
PLAN 
  

 ARTICLE
I 
 PURPOSE 
 The purpose of
this 2007 Non-Qualified Stock Option Plan (the “Plan”) is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling the Company to offer Eligible Employees and Consultants stock options in
the Company to attract, retain and reward such individuals and strengthen the mutuality of interests between such individuals and the Company’s stockholder’s. 
 ARTICLE II 
 DEFINITIONS 
 For purposes of the Plan, the following terms shall have the following meanings: 
 2.1 “Acquisition Event” means a merger or consolidation in which the Company is not the surviving entity, any transaction that
results in the acquisition of all or substantially all of the Company’s outstanding Common Stock by a single person or entity or by a group of persons and/or entities acting in conceit, or the sale or transfer of all or substantially all of the
Company’s assets. The occurrence of an Acquisition Event shall be determined by the Committee in its sole discretion. 
 2.2
“Affiliate” means each of the following: (a) any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code; (b) any parent corporation of the Company within the meaning of
Section 424(e) of the Code; (c) any corporation, trade or business (including, without limitation, a partnership or limited liability company) that is directly or indirectly controlled 50% or more (whether by ownership of stock, assets or an
equivalent ownership interest or voting interest) by the Company; (d) any corporation, trade or business (including, without limitation, a partnership or limited liability company) that directly or indirectly controls 50% or more (whether by
ownership of stock, assets or an equivalent ownership interest or voting interest) of the Company; and (e) any other entity in which the Company or any of its Affiliates has a material equity interest and that is designated as an
“Affiliate” by resolution of the Committee; provided, however, that in the event that the Common Stock subject to any Award does not constitute “service recipient stock” for purposes of Section 409A of the
Code, the Company intends that such Award shall be designed to comply with Section 409A of the Code. 
 2.3
“Award” means any award under the Plan of any Stock Option. All Awards shall be evidenced by, and subject to the terms of, a written agreement executed by the Company and the Participant. Any reference herein to an
agreement in writing shall be deemed to include an electronic writing to the extent permitted by applicable law. 

 2.4 “Board” means the Board of Directors of the Company 
 2.5 “Clause” means with respect to a Participant’s Termination of Employment or Termination of Consultancy, the following:
(a) in the case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award (or where
there is such an agreement but it does not define “cause” (or words of like import)), termination due to: (i) a Participant’s conviction of, or plea of guilty or nolo contendere to, a felony; (ii) perpetration by a
Participant of an illegal act, dishonesty, or fraud that could cause significant economic injury to the Company; (iii) a Participant’s insubordination, refusal to perform his or her duties or responsibilities for any reason other than
illness or incapacity or materially unsatisfactory performance of his or her duties for the Company; (iv) continuing willful and deliberate failure by the Participant to perform the Participant’s duties in any material respect, provided
that the Participant is given notice and an opportunity to effectuate a cure as determined by the Committee; or (v) a Participant’s willful misconduct with regard to the Company that could have a material adverse effect on the Company; or
(b) in the case where there is an employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Award that defines
“cause” (or words of Tike import), “cause” as defined under such agreement; provided, however, that with regard to any agreement under which the definition of “cause” only applies on occurrence of a change in
control, such definition of “cause” shall not apply until a change in control actually takes place and then only with regard to a termination thereafter. 
 2.6 “Change in Control” has the meaning set forth in Section 8.2. 
 2.7
“Change in Control Price” has the meaning set forth in Section 8.1. 
 2.8 “Code” means
the Internal Revenue Code of 1986, as amended Any reference to any section of the Code shall also be a reference to any successor provision and any Treasury Regulation promulgated thereunder. 
 2.9 “Committee” means: a committee or subcommittee of the Board appointed from time to time by the Board, which committee or
subcommittee shall consist of two or more non-employee directors, each of whom shall be a “non-employee director” as defined in Rule 16b-3 To the extent that no Committee exists that has the authority to administer the Plan, the functions
of the Committee shall be exercised by the Board., If for any reason the appointed Committee does not meet the requirements of Rule 16b-3, such noncompliance shall not affect the validity of Awards, grants, interpretations or other actions of the
Committee. 
 2.10 “Common Stock” means the Common Stock, $0.01 par value per share, of the Company.

  

 4 

 2.11 “Company” means Wolverine Tube, Inc., a Delaware corporation, and its
successors by operation of law. 
 2.12 “Consultant” means any Person who provides bona fide consulting or advisory
services to the Company or its Affiliates pursuant to a written agreement, which are not in connection with the offer and sale of securities in a capital-raising transaction, and do not, directly or indirectly, promote or maintain a market for the
Company’s or its Affiliates’ securities 
 2.13 “Disability” means with respect to a
Participant’s Termination, a permanent and total disability as defined in Section 22(e)(3) of the Code A Disability shall only be deemed to occur at the time of the determination by the Committee of the Disability. Notwithstanding the
foregoing, for Awards that are subject to Section 409A of the Code, Disability shall mean that a Participant is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code. 
 2.14 “Effective Date” means the effective date of the Plan as defined in Article XII. 
 2.15 “Eligible Employees” means each employee of the Company or an Affiliate. 
 2.16 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder.
Any references to any section of the Exchange Act shall also be a reference to any successor provision. 
 2.17 “Fair
Market Value” means, unless otherwise required by any applicable provision of the Code or any regulations issued thereunder, as of any date, and except as provided below (a) the last sales price reported for the Common Stock on the
applicable date as reported on the principal established securities market on which it is then traded or if the Common Stock shall not have been reported or quoted on such date, on the first day prior thereto on which the Common Stock was reported
or quoted; or (b) if the Company’s Common Stock is not traded on any established securities market, the price as determined by the Committee in whatever manner it considers appropriate, taking into account the requirements of
Section 409A of the Code. 
 2.18 “Family Member” means “family member” as defined in Section A.1
(5) of the general instructions of Form S-8, as may be amended from time to time. 
 2.19 “Non-Qualified Stock
Option” means any Stock Option awarded under the Plan. No Stock Options granted under the Plan are intended to be incentive stock options within the meaning of Section 422 of the Code. 
 2.20 “Other Extraordinary Event” has the meaning set forth in Section 4.2(b). 
 2.21 “Participant” means an Eligible Employee or Consultant to whom an Award has been granted pursuant to the Plan. 

2.22 “Person” means any individual, corporation, partnership, limited liability company, firm, joint venture, association,
joint-stock company, trust, incorporated organization, governmental or regulatory or other entity 
  

 5 

 2.23 “Plan” means this Wolverine Tube, Inc. 2007 Non-Qualified Stock Option Plan,
as amended from time to time. 
 2.24 “Preferred Stock” means the Series A Convertible Preferred Stock, $1,000 par
value per share, of the Company 
 2.25 “Preferred Stock Purchase Agreement” means the Preferred Stock Purchase
Agreement dated January 31, 2007 by and between the Company, The Alpine Group, Inc. and Plainfield Special Situations Master Fund Limited 
 2.26 “Rights Offering” means the rights offering required to be conducted by the Company as soon as practicable following the closing of transactions contemplated by the Preferred Stock Purchase Agreement.

 2.27 “Rule 16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any
successor provision. 
 2.28 “Section 4.2 Event” has the meaning set forth in Section 4.2(b)

 2.29 “Securities Act” means the Securities Act of 1933, as amended, and all rules and regulations promulgated
thereunder. Any reference to any section of the Securities Act shall also be a reference to any successor provision. 
 2.30
“Standby Shares” means any additional shares of Preferred Stock acquired by The Alpine Group, Inc. and Plainfield Special Situations Master Fund Limited and/or any of their permitted assigns following the Rights Offering.

 2.31 “Stock Option” or “Option” means any option to purchase shares of Common Stock granted
to Eligible Employees or Consultants pursuant to Article VI. 
 2.32 “Termination” means a Termination of
Consultancy or Termination of Employment, as applicable. 
 2.33 “Termination of Consultancy” means: (a) that
the Consultant is no longer acting as a consultant to the Company or an Affiliate; or (b) when an entity that is retaining a Participant as a Consultant ceases to be an Affiliate unless the Participant otherwise is, or thereupon becomes, a
Consultant to the Company or another Affiliate at the time the entity ceases to be an Affiliate. In the event that a Consultant becomes an Eligible Employee or a non- employee director of the Company upon the termination of his or her consultancy,
unless otherwise determined by the Committee, in its sole discretion, no Termination of Consultancy shall be deemed to occur until such time as such Consultant is no longer a Consultant, an Eligible Employee or a non-employee director of the
Company. Notwithstanding the foregoing, the Committee may, in its sole discretion, otherwise define Termination of Consultancy in the Award agreement or, if no rights of a Participant are reduced, may otherwise define Termination of Consultancy
thereafter 
 2.34 “Termination of Employment” means: (a) a termination of employment (for reasons other
than a military or personal leave of absence granted by the Company) of a Participant from the Company and its Affiliates; or (b) when an entity that is 

  

 6 

 
employing a Participant ceases to be an Affiliate, unless the Participant otherwise is, or thereupon becomes, employed by the Company or another Affiliate at
the time the entity ceases to be an Affiliate. In the event that an Eligible Employee becomes a Consultant or a non-employee director of the Company upon the termination of his or her employment, unless otherwise determined by the Committee, in its
sole discretion, no Termination of Employment shall be deemed to occur until such time as such Eligible Employee is no longer an Eligible Employee, a Consultant or a non-employee director of the Company. Notwithstanding the foregoing, the Committee
may, in its sole discretion, otherwise define Termination of Employment in the Award agreement or, if no lights of a Participant are reduced, may otherwise define Termination of Employment thereafter 
 2.35 “Top-Up Option” means the option held by The Alpine Group, Inc. and Plainfield Special Situations Master Fund Limited to
purchase a number of shares of Preferred Stock, which would be sufficient to increase such parties aggregate ownership to at least 55% of the Company’s Common Stock (calculated on an as-converted, fully diluted basis); provided that the Top-Up
Option shall only become available to The Alpine Group, Inc, and Plainfield Special Situations Master Fund Limited, if, following the closing of the Rights Offering, the shares of Preferred Stock owned by such parties represents less than 55% of the
Company’s outstanding Common Stock (calculated on an as-converted, fully diluted basis). If the Top-Up Option becomes available to The Alpine Group, Inc. and Plainfield Special Situations Master Fund Limited, such option shall only be
exercisable until the 90th day following the closing of the Rights Offering. 
 2.36 “Transfer” means: (a) when
used as a noun, any direct or indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or other disposition (including the issuance of equity in a Person), whether for value or no value and whether voluntary or involuntary (including
by operation of law), and (b) when used as a verb, to directly or indirectly transfer, sell, assign, pledge, encumber, charge, hypothecate or otherwise dispose of (including the issuance of equity in a Person) whether for value or for no value
and whether voluntarily or involuntarily (including by operation of law). “Transferred” and “Transferrable” shall have a correlative meaning. 
 ARTICLE III 
 ADMINISTRATION 
 3.1 The Committee. The Plan shall be administered and interpreted by the Committee. 
 3.2 Grants of Awards. The Committee shall have full authority to grant Stock-Options to Eligible Employees and Consultants In particular,
the Committee shall have the authority: 
  

	 	(a)	to select the Eligible Employees and Consultants to whom Awards may from time to time be granted hereunder; 

  

 7 

	 	(b)	to determine whether and to what extent Awards are to be granted hereunder to one or more Eligible Employees and Consultants; 

  

	 	(c)	to determine, in accordance with the terms of the Plan, the number of shares of Common Stock to be covered by each Award granted hereunder; 

  

	 	(d)	to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder (including, but not limited to, the exercise or purchase price (if
any), any vesting schedule or acceleration thereof, or any forfeiture restrictions or waiver thereof, regarding any Award and the shares of Common Stock relating thereto, based on such factors, if any, as the Committee shall determine, in its sole
discretion); 

  

	 	(e)	to determine whether, to what extent and under what circumstances Awards under the Plan are to operate on a tandem basis and/or in conjunction with or apart from other awards made
by the Company outside of the Plan; 

  

	 	(f)	to determine whether and under what circumstances a Stock Option may be settled in cash, Common Stock and/or restricted stock; 

  

	 	(g)	to determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of shares acquired pursuant to an Award for a period of
time as determined by the Committee, in its sole discretion, following the date of such Award; and 

  

	 	(h)	generally, to exercise such powers and to perform such acts as the Committee deems necessary or expedient to promote the best interests of the Company that are not in conflict with
the provisions of the Plan. 

 3.3. Guidelines. Subject to Article IX, the Committee shall, in its
sole discretion, have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities (to the extent permitted by applicable law),
as it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan;
provided, however, that nothing herein shall require the Committee to take any such action in a uniform manner. The Committee may, in its sole discretion, correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any
agreement relating thereto in the manner and to the extent it shall deem necessary to effectuate the purpose and intent of the Plan. The Committee may, in its sole discretion, adopt special guidelines and provisions for persons who are residing in
or employed in, or subject to, the taxes of, any domestic or foreign jurisdictions to comply with applicable tax and securities laws of such domestic or foreign jurisdictions. To the extent applicable, the Plan is intended to comply with the
applicable requirements of Rule 16b-3, and the Plan shall be limited, construed and interpreted in a manner so as to comply therewith. 
  

 8 

 3.4 Decisions Final Any decision, interpretation or other action made or taken in good
faith by or at the direction of the Company, the Board or the Committee (or any of its members) arising out of or in connection with the Plan shall be within the absolute discretion of all and each of them, as the case may be, and shall be final,
binding and conclusive on the Company and all employees and Participants and their respective heirs, executors, administrators, successors and assigns. 
 3.5 Procedures. If the Committee is appointed, the Board shall designate one of the members of the Committee as chairman and the Committee shall hold meetings, subject to the By-Laws of the Company, at
such times and places as it shall deem advisable, including, without limitation, by telephone conference or by written consent to the extent permitted by applicable law. A majority of the Committee members shall constitute a quorum. All
determinations of the Committee shall be made by a majority of its members. Any decision or determination reduced to writing and signed by all the Committee members in accordance with the By-Laws of the Company shall be as fully effective as if it
had been made by a vote at a meeting duly called and held. The Committee shall keep minutes of its meetings and shall make such rules and regulations for the conduct of its business as it shall deem advisable. 
 3.6 Designation of Consultants/Liability. 
  

	 	(a)	The Committee may, in its sole discretion, designate employees of the Company and professional advisors to assist the Committee in the administration of the Plan and (to the extent
permitted by applicable law and applicable exchange rules) may grant authority to officers to grant Awards and/or execute agreements or other documents on behalf of the Committee. 

  

	 	(b)	The Committee may, in its sole discretion, employ such legal counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any
opinion received from any such counsel or consultant and any computation received from any such consultant or agent. Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant or agent shall be paid by the
Company. The Committee, its members and any person designated pursuant to subsection (a) above shall not be liable for any action or determination made in good faith with respect to the Plan. To the maximum extent permitted by applicable law,
no officer of the Company or member or former member of the Committee or of the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Award granted under it. 

 3.7 Indemnification To the maximum extent permitted by applicable law and the Certificate of Incorporation and By-Laws of the Company and
to the extent not covered by insurance directly insuring such person, each officer or employee of the Company or any Affiliate and member or former member of the Committee or the Board shall be indemnified and held harmless by the Company against
any cost or expense (including reasonable fees of counsel reasonably acceptable to the Committee) or liability (including any 

  

 9 

 
sum paid in settlement of a claim with the approval of the Committee), and advanced amounts necessary to pay the foregoing at the earliest time and to the
fullest extent permitted, arising out of any act or omission to act in connection with the administration of the Plan, except to the extent arising out of such officer’s, employee’s, member’s or former member’s fraud or bad
faith. Such indemnification shall be in addition to any rights of indemnification the officers, employees, directors or members or former officers, directors or members may have under applicable law or under the Certificate of Incorporation or
By-Laws of the Company or any Affiliate, Notwithstanding anything else herein, this indemnification will not apply to the actions or determinations made by an individual with regard to Awards granted to him or her under the Plan. 
 ARTICLE IV 
 SHARE LIMITATION

 4.1 Share Limitations. The aggregate number of shares of Common Stock that may be issued or used for reference
purposes or with respect to which Awards may be granted under the Plan shall not exceed the lesser of (a) 25,000,000 shares; and (b) 15% of the outstanding shares of Common Stock of the Company calculated on a fully diluted basis following
the closing of the Rights Offering, the subsequent acquisition, if any, of Standby Shares and the exercise, if any, of the Top-Up Option. The maximum aggregate number of available shares of Common Stock hereunder (subject to any increase or decrease
pursuant to Section 4.2) may be either authorized and unissued Common Stock or Common Stock held in or acquired for the treasury of the Company or both. If any Award expires, terminates, is cancelled or is forfeited for any reason
without having been exercised in full, the number of shares of Common Stock underlying any unexercised Award shall again be available for the purpose of Awards under the Plan. 
 4.2 Changes. 
  

	 	(a)	The existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or authorize
(i) any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds, debentures,
preferred or prior preference stock ahead of or affecting the Common Stock, (iv) the dissolution or liquidation of the Company or any Affiliate, (v) any sale or transfer of all or part of the assets or business of the Company or any
Affiliate, (vi) any Section 4.2 Event, (vii) any Other Extraordinary Event, or (viii) any other corporate act or proceeding. 

  

	 	(b)	 Subject to the provisions of Section 4.2(d), if there shall occur any such change in the capital structure of the Company by reason of any stock split,
reverse stock split, stock dividend, subdivision, combination or reclassification of shares that may be issued under the Plan, any recapitalization, any merger, any consolidation, any spin off, any 

  

 10 

	 	 
reorganization or any partial or complete liquidation, the Rights Offering or any other corporate transaction or event having an effect similar to any of the
foregoing (a “Section 4.2 Event”), then (i) the aggregate number and/or kind of shares that thereafter may be issued under the Plan, (ii) the number and/or kind of shares or other property (including cash) to be issued
upon exercise of an outstanding Award granted under the Plan, and/or (iii) the purchase price thereof shall be appropriately adjusted consistent with such change. In addition to the foregoing, each Award granted prior to the Rights Offering,
the subsequent acquisition, if any, of Standby Shares or the exercise, if any, of the Top-Up Option shall be adjusted in accordance with the foregoing sentence to reflect the effect of the consummation of the Rights Offering, the subsequent
acquisition, if any, of the Standby Shares or the exercise, if any of the Top-Up Option, respectively. In addition, subject to Section 4.2(d), if there shall occur any change in the capital structure or the business of the Company that
is not a Section 4.2 Event (an “Other Extraordinary Event”), including, without limitation, by reason of any extraordinary dividend (whether cash or stock), any conversion, any adjustment, any issuance of any class of
securities convertible or exercisable into, or exercisable for, any class of stock or any sale or transfer of all or substantially all the Company’s assets or business, then the Committee, in its sole discretion, may adjust any Award and make
such other adjustments to the Plan. Any adjustment pursuant to this Section 4.2 shall be consistent with the applicable Section 4.2 Event or the applicable Other Extraordinary Event, as the case may be, and in such manner as the
Committee may, in its sole discretion, deem appropriate and equitable to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants under the Plan. Any such adjustment determined by the Committee shall be
final, binding and conclusive on the Company and all Participants and their respective heirs, executors, administrators, successors and permitted assigns Except as expressly provided in this Section 4.2 or in the applicable Award
agreement, a Participant shall have no rights by reason of any Section 4.2 Event or any Other Extraordinary Event. 

  

	 	(c)	Fractional shares of Common Stock resulting from any adjustment in Awards pursuant to Section 4.2(a) or Section 4.2(b) shall be aggregated until, and
eliminated at, the time of exercise by rounding-down for fractions less than one-half and rounding-up for fractions equal to or greater than one-half. No cash settlements shall be made with respect to fractional shares eliminated by rounding. Notice
of any adjustment shall be given by the Committee to each Participant whose Award has been adjusted and such adjustment (whether or not such notice is given) shall be effective and binding for all purposes of the Plan. 

  

	 	(d)	 In the event of an Acquisition Event, the Committee may, in its sole discretion, terminate all outstanding and unexercised Stock Options effective as of the date of
the Acquisition Event, by delivering notice of termination to 

  

 11 

	 	 
each Participant at least 20 days prior to the date of consummation of the Acquisition Event, in which case during the period from the date on which such
notice of termination is delivered to the consummation of the Acquisition Event, each such Participant shall have the right to exercise his or her Stock Options that are then outstanding (whether or not vested) as of the date on which such notice of
termination is delivered, but any such exercise shall be contingent on the occurrence of the Acquisition Event, and, provided that, if the Acquisition Event does not take place within a specified period after giving such notice for any reason
whatsoever, the notice and exercise pursuant thereto shall be null and void. For the avoidance of doubt, in the event of an Acquisition Event, the Committee may, in its sole discretion, terminate any such Stock Option for which the exercise price is
equal to or exceeds the Fair Market Value without payment of consideration therefor. 

 If an Acquisition Event occurs but
the Committee does not terminate the outstanding Awards pursuant to this Section. 4.2(d), then the applicable provisions of Section 4.2(b) and Article VIII shall apply 
 4.3 Minimum Purchase Price. Notwithstanding any provision of the Plan to the contrary, if authorized but previously unissued shares
of Common Stock are issued under the Plan, such shares shall not be issued for a consideration that is less than as permitted under applicable law. 
 ARTICLE V 
 ELIGIBILITY AND GENERAL REQUIREMENTS FOR AWARDS 
 5.1 General Eligibility. Each Award granted under the Plan shall be a Non-Qualified Stock Option. All Eligible Employees,
Consultants and prospective employees and consultants are eligible to be granted Awards, subject to the terms and conditions of the Plan Eligibility for the grant of Awards and actual participation in the Plan shall be determined by the Committee in
its sole discretion. 
 5.2 General Requirement. The vesting and exercise of Awards granted to a prospective
employee or consultant is conditioned upon such individual actually becoming an Eligible Employee or Consultant. 
 ARTICLE VI

 STOCK OPTIONS 
 6.1
Stock Option Grants. The Committee shall, in its sole discretion, have the authority to grant to any Eligible Employee or Consultant Non-Qualified Stock Options. 
  

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 6.2 Terms of Options. Options granted under the Plan shall be subject to the following
terms and conditions and shall be in such form and contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee, in its sole discretion, shall deem desirable: 
  

	 	(a)	Exercise Price. The exercise price per share of Common Stock subject to a Stock Option shall be determined by the Committee at the time of grant; provided,
however, that if the exercise price is less than Fair Market Value on the date of grant, the Stock Option is either (i) intended to comply with Section 409A of the Code or (ii) exempt from Section 409A of the Code.

  

	 	(b)	Stock Option Term. The term of each Stock Option shall be fixed by the Committee, provided that no Stock Option shall be exercisable more than 10 years after the date the
Option is granted. 

  

	 	(c)	Exercisability. Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee at grant. If the
Committee provides, in its discretion, that any Stock Option is exercisable subject to certain limitations (including, without limitation, that such Stock Option is exercisable only in installments or within certain time periods or upon attainment
of certain financial results), the Committee may waive such limitations on the exercisability at any time at or after grant in whole or in part (including, without limitation, waiver of the installment exercise provisions or acceleration of the time
at which such Stock Option may be exercised), based on such factors, if any, as the Committee shall determine, in its sole discretion. If the Stock Option is intended to comply with Section 409A of the Code, it shall be exercisable at such
times or in such manner designed to comply with Section 409A of the Code. 

  

	 	(d)	Method of Exercise. Subject to whatever installment exercise and waiting period provisions apply under subsection (c) above, to the extent vested, Stock Options may be
exercised in whole or in part at any time during the Option term, by giving written notice of exercise to the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be accompanied by payment in full of the
purchase price as follows: (i) in cash or by check, bank draft or money order payable to the order of the Company or (ii) on such other terms and conditions as may be acceptable to the Committee (including, without limitation, the
relinquishment of Stock Options or by payment in full or in part in the form of Common Stock owned by the Participant based on the Fair Market Value of the Common Stock on the payment date as determined by the Committee, in its sole discretion). No
shares of Common Stock shall be issued until payment therefor, as provided herein, has been made or provided for 

  

 13 

	 	(e)	Non-Transferability of Options. No Stock Option shall be Transferable by the Participant otherwise than by will or by the laws of descent and distribution, and all Stock
Options shall be exercisable, during the Participant’s lifetime, only by the Participant. Notwithstanding the foregoing, the Committee may determine, in its sole discretion, at the time of grant or thereafter that an Option that is otherwise
not Transferable pursuant to this Section is Transferable to a Family Member in whole or in part and in such circumstances, and under such conditions, as determined by the Committee, in its sole discretion. An Option that is Transferred to a Family
Member pursuant to the preceding sentence (i) may not be subsequently Transferred otherwise than by will or by the laws of descent and distribution and (ii) remains subject to the terms of the Plan and the applicable Award agreement. Any
shares of Common Stock acquired upon the exercise of an Option by a permissible transferee of an Option or a permissible transferee pursuant to a Transfer after the exercise of the Option shall be subject to the terms of the Plan and the applicable
Award agreement. 

  

	 	(f)	Form, Modification, Extension and Renewal of Stock Options. Subject to the terms and conditions and within the limitations of the Plan, Stock Options shall be evidenced by
such form of agreement or grant as is approved by the Committee, and the Committee may, in its sole discretion (i) modify, extend or renew outstanding Stock Options granted under the Plan (provided that the rights of a Participant are not
reduced without his or her consent and provided further that such action does not subject the Stock Options to Section 409A of the Code), and (ii) accept the surrender of outstanding Stock Options (up to the extent not theretofore
exercised) and authorize the granting of new Stock Options in substitution therefor (to the extent not theretofore exercised). 

  

	 	(g)	Early Exercise. The Committee may provide that a Stock Option include a provision whereby the Participant may elect at any time before the Participant’s Termination to
exercise the Stock Option as to any part or all of the shares of Common Stock subject to the Stock Option prior to the full vesting of the Stock Option and such shares shall be treated as restricted stock. Any unvested shares of Common Stock so
purchased may be subject to a repurchase option in favor of the Company or to any other restriction the Committee determines to be appropriate. 

  

	 	(h)	Other Terms and Conditions. Stock Options may contain such other provisions, which shall not be inconsistent with any of the terms of the Plan, as the Committee shall, in its
sole discretion, deem appropriate. 

  

 14 

 ARTICLE VII 
 TERMINATION 
 7.1 Termination. The following rules apply with regard to the Termination of a
Participant, unless otherwise determined by the Committee at grant (or, if no rights of the Participant are reduced, thereafter): 
  

	 	(a)	Termination by Reason of Death or Disability. If a Participant’s Termination is by reason of death or Disability, all Stock Options that are held by such Participant
that are vested and exercisable at the time of the Participant’s Termination may be exercised by the Participant (or, in the case of death, by the legal representative of the Participant’s estate) at any time within a one-year period from
the date of such Termination, but in no event beyond the expiration of the stated term of such Stock Options; provided, however, if the Participant dies within such exercise period, all unexercised Stock Options held by such
Participant shall thereafter be exercisable, to the extent to which they were exercisable at the time of death, for a period of one-year from the date of such death, but in no event beyond the expiration of the stated term of such Stock Options

  

	 	(b)	Involuntary Termination Without Cause. If a Participant’s Termination is by involuntary Termination without Cause, all Stock Options that are held by such Participant
that are vested and exercisable at the time of the Participant’s Termination may be exercised by the Participant at any time within a period of 90 days from the date of such Termination, but in no event beyond the expiration of the stated term
of such Stock Options. 

  

	 	(c)	Voluntary Termination. If a Participant’s Termination is voluntary (other than a voluntary Termination described in Section 7.1(d)(ii) below), all Stock
Options that are held by such Participant that are vested and exercisable at the time of the Participant’s Termination may be exercised by the Participant at any time within a period of 30 days from the date of such Termination, but in no event
beyond the expiration of the stated terms of such Stock Options. 

  

	 	(d)	Termination for Cause. If a Participant’s Termination: (i) is for Cause or (ii) is a voluntary Termination (as provided in subsection (c) above) after the
occurrence of an event that would be grounds for a Termination for Cause, all Stock Options, whether vested or not vested, that are held by such Participant shall thereupon terminate and expire as of the date of such Termination.

  

	 	(e)	Unvested Stock Options. Stock Options that are not vested as of the date of a Participant’s Termination for any reason shall terminate and expire as of the date of such
Termination. 

  

 15 

 7.2 Compliance with Section 409A of the Code. Notwithstanding anything to the contrary
contained in Section 7.1, if any Stock Option is subject to Section 409A of the Code, it shall be exercisable in accordance with the terms and conditions set forth in the applicable Award agreement. 
 ARTICLE VIII 
 CHANGE IN CONTROL
PROVISIONS 
 8.1 Benefits. In the event of a Change in Control of the Company, and except as otherwise provided by the
Committee in an Award agreement, a Participant’s unvested Award shall not vest and a Participant’s Award shall be treated in accordance with one of the following methods as determined by the Committee in its sole discretion: 
  

	 	(a)	Awards, whether or not vested by their terms or pursuant to the preceding sentence, shall be continued, assumed, have new rights substituted therefor or be treated in accordance
with Section 4.2(d), as determined by the Committee in its sole discretion, and restrictions to which any Award granted prior to the Change in Control is subject shall not lapse upon a Change in Control (other than with respect to
vesting pursuant to the foregoing provisions of this Section 8.1) and the Award shall, where appropriate in the sole discretion of the Committee, receive the same or other appropriate distribution as other Common Stock on such terms as
determined by the Committee in its sole discretion; provided, however, that, the Committee may, in its sole discretion, decide to award restricted stock in lieu of any cash distribution. 

  

	 	(b)	The Committee, in its sole discretion, may provide for the purchase of any Awards by the Company or an Affiliate (or the cancellation and extinguishment thereof pursuant to the
terms of a merger or other purchase agreement entered into by the Company) for an amount of cash equal to the excess of the Change in Control Price (as defined below) of the shares of Common Stock covered by such Awards, over the aggregate exercise
price of such Awards. For purposes of this Section 8.1, “Change in Control Price” shall mean the highest price per share of Common Stock paid in any transaction related to a Change in Control of the Company.

  

	 	(c)	The Committee may, in its sole discretion, provide for the cancellation of any particular Award or Awards without payment, if the Change in Control Price is less than the Fair
Market Value of such Award(s) on the date of grant. 

  

	 	(d)	Notwithstanding anything else herein, the Committee may, in its sole discretion, provide for accelerated vesting, of an Award at the time of grant or at any time thereafter.

  

 16 

 Notwithstanding the foregoing, the Committee may, in its sole discretion, elect none of the foregoing and thereby take no
further action with respect to a Participant’s Award. In addition, nothing in this Article VIII or elsewhere in the Plan shall obligate the Committee to treat all outstanding Awards in a uniform manner in the event of a Change in Control
of the Company. 
 8.2 Change in Control. Unless otherwise determined by the Committee in the applicable Award agreement or
other written agreement approved by the Committee, a “Change in Control” shall be deemed to occur following any transaction if: (a) any “person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other
than the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of Common Stock of the Company), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 30% or more of the combined voting power of the then outstanding securities of the
Company (or its successor corporation); (b) the stockholders of the Company approve a plan of complete liquidation of the Company or the consummation of the sale or disposition by the Company of all or substantially all of the Company’s
assets other than (i) the sale or disposition of all or substantially all of the assets of the Company to a person or persons who beneficially own, directly or indirectly, at least 50% or more of the combined voting power of the outstanding
voting securities of the Company at the time of the sale, or (ii) pursuant to a spin-off type transaction, directly or indirectly, of such assets to the stockholders of the Company; or (c) during any period of two consecutive years,
individuals who at the beginning of any such period constitute directors of the Company cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s stockholders, of each
director of the Company first elected during such period was approved by a vote of at least two-thirds of the director’s of the Company then still in office who were directors of the Company at the beginning of any such period. Notwithstanding
the foregoing, a Change in Control shall not be deemed to have occurred as a result of any further acquisition of the outstanding securities of the Company by either The Alpine Group, Inc or Plainfield Special Situations Master Fund Limited
following the Effective Date. 
 ARTICLE IX 
 TERMINATION OR AMENDMENT OF PLAN 
 9.1 Termination or Amendment. Notwithstanding any other
provision of the Plan, the Board or the Committee may at any time, and from time to time, amend, in whole or in part, any or all of the provisions of the Plan (including any amendment deemed necessary to ensure that the Company may comply with any
regulatory requirement referred to in Article XI), or suspend or terminate it entirely, retroactively or otherwise; provided, however, that, unless otherwise required by law or specifically provided herein, the rights of a
Participant with respect to Awards granted prior to such amendment, suspension or termination, may not be impaired without the consent of such Participant and in accordance with the laws of the State of Delaware, to the extent required by the
applicable provisions of Rule 16b-3. 
 The Committee may amend the terms of any Award theretofore granted, prospectively or retroactively,
but, subject to Article IV above or as otherwise specifically provided herein, no such amendment or other action by the Committee shall adversely impair the 

  

 17 

 
rights of any holder without the holder’s consent. Notwithstanding anything herein to the contrary, the Board or the Committee may amend the Plan or any
Award granted hereunder at any time without a Participant’s consent to comply with Section 409A of the Code or any other applicable law. 
 ARTICLE X 
 UNFUNDED PLAN 
 10.1 Unfunded Status of Plan. The Plan is an “unfunded” plan for incentive and deferred compensation. With respect to any payments as to which a Participant has a fixed and vested
interest but that are not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the Company. 
 ARTICLE XI 
 GENERAL PROVISIONS

 11.1 Legend The Committee may require each person receiving shares of Common Stock pursuant to an Award granted under the
Plan to represent to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and such other securities law-related representations as the Committee shall request. In addition to any
legend required by the Plan, the certificates and/or book entry accounts for such shares may include any legend that the Committee, in its sole discretion, deems appropriate to reflect any restrictions on Transfer. 
 All certificates and/or book entry accounts for shares of Common Stock delivered under the Plan shall be subject to such stop transfer orders and other
restrictions as the Committee may, in its sole discretion, deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable Federal or state securities law, and any applicable corporate
law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
 11.2 No Right to Employment or Consultancy. Neither the Plan nor the grant of any Award hereunder shall give any Participant or other employee or Consultant any right with respect to continuance of employment or
consultancy by the Company or any Affiliate, nor shall they be a limitation in any way on the right of the Company or any Affiliate by which an employee is employed or a Consultant is retained to terminate his or her employment or consultancy at any
time. 
 11.3 Withholding of Taxes. The Company shall have the right to deduct from any payment to be made pursuant to the
Plan, or to otherwise require, prior to the issuance or delivery of any shares of Common Stock or the payment of any cash hereunder, payment by the Participant of, any Federal, state or local taxes required by law to be withheld. Any statutorily
required withholding obligation 

  

 18 

 
with regard to any Participant may be satisfied, subject to the advance consent of the Committee, by reducing the number of shares of Common Stock otherwise
deliverable or by delivering shares of Common Stock already owned. Any fraction of a share of Common Stock required to satisfy such tax obligations shall be disregarded and the amount due shall be paid instead in cash by the Participant. 

11.4 No Assignment of Benefits. No Award or other benefit payable under the Plan shall, except as otherwise specifically provided by law
or permitted by the Committee, be Transferable in any manner, and any attempt to Transfer any such benefit shall be void, and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements or
torts of any person who shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such person. 
 11.5 Other Conditions. If at any time counsel to the Company shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to an Award is or may in the circumstances be unlawful or result in the
imposition of excise taxes on the Company under the statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any
qualification or registration under the Securities Act or otherwise, with respect to shares of Common Stock or Awards, and the right to exercise any Award shall be suspended until, in the opinion of said counsel, such sale or delivery shall be
lawful or will not result in the imposition of excise taxes on the Company. 
 11.6 Governing Law. The Plan and actions
taken in connection herewith shall be governed and construed in accordance with the laws of the State of Delaware (regardless of the law that might otherwise govern under applicable Delaware principles of conflict of laws). 
 11.7 Construction. Wherever any words are used in the Plan in the masculine gender they shall be construed as though they were also used in
the feminine gender in all cases where they would so apply, and wherever any words are used herein in the singular form they shall be construed as though they were also used in the plural form in all cases where they would so apply. 
 11.8 Other Benefits. No Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under any
retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation. 
 11.9 Costs. The Company shall bear all expenses associated with administering the Plan, including expenses of issuing Common Stock pursuant
to any Awards hereunder. 
 11.10 No Right to Same Benefits. The provisions of Awards need not be the same with respect to each
Participant, and such Awards to individual Participants need not be the same in subsequent years. 
 11.11 Death/Disability.
The Committee may in its sole discretion require the transferee of a Participant to supply it with written notice of the Participant’s death or Disability and to supply it with a copy of the will (in the case of the Participant’s death) or
such 

  

 19 

 
other evidence as the Committee deems necessary to establish the validity of the transfer of an Award. The Committee may, in its discretion, also require the
agreement of the transferee to be bound by all of the terms and conditions of the Plan. 
 11.12 Section 16(b) of the Exchange
Act. All elections and transactions under the Plan by persons subject to Section 16 of the Exchange Act involving shares of Common Stock are intended to comply with any applicable exemptive condition under Rule 16b-3. The Committee may,
in its sole discretion, establish and adopt written administrative guidelines, designed to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and operation of the Plan and the
transaction of business thereunder. 
 11.13 Section 409A of the Code. To the extent applicable, the Plan is
intended to comply with the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in accordance with such intent. 
 11.14 Successor and Assigns. The Plan shall be binding on all successors and permitted assigns of a Participant, including, without limitation, the estate of such Participant and the executor,
administrator or trustee of such estate. 
 11.15 Severability of Provisions. If any provision of the Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included. 
 11.16 Payments to Minors, Etc. Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable
of receipt thereof shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Committee, the Board, the Company,
its Affiliates and their employees, agents and representatives with respect thereto. 
 11.17 Headings and Captions. The
headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan. 
 ARTICLE XII 
 EFFECTIVE DATE OF PLAN 
 The Plan shall become effective upon adoption by the Board or such later date as provided in the adopting resolution. 
 ARTICLE XIII 
 TERM OF PLAN 

No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the earlier of the date the Plan is adopted by the Board, but
Awards granted prior to such tenth anniversary may, and the Committee’s authority to administer the terms of such Awards, extend beyond that date. 
  

 20 

 ARTICLE XIV 
 NAME OF PLAN 
 The Plan shall be known as the “Wolverine Tube, Inc. 2007 Non-Qualified Stock Option
Plan.” 
  

 21

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