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                                                                   EXHIBIT 10.01

                              ALLEGHANY CORPORATION

                           2005 DIRECTORS' STOCK PLAN

      1. PURPOSE. The purpose of the Alleghany Corporation 2005 Directors' Stock
Plan (the "Plan") is to advance the interests of Alleghany Corporation (the
"Company") and its stockholders by attracting and retaining highly qualified
individuals to serve as members of the Board of Directors (the "Board") of the
Company who are not employees of the Company or any of its subsidiaries, and to
encourage them to increase their stock ownership in order to promote long-term
stockholder value through ownership of the common stock, $1.00 par value, of the
Company ("Common Stock").

      2. ADMINISTRATION. The Plan shall be administered by the Board. The Board
shall have all the powers vested in it by the terms of the Plan, such powers to
include the authority (within the limitations described herein) to construe the
Plan, to determine all questions arising thereunder and, subject to the
provisions of the Plan, to adopt and amend such rules and regulations for the
administration of the Plan as it may deem desirable. Any decision of the Board
in the administration of the Plan shall be final and conclusive. The Board may
authorize any one or more of their number or any officer of the Company to
exercise the Board's power over the day-to-day administration of the Plan,
including executing and delivering documents on behalf of the Company.

      3. ANNUAL GRANT OF OPTIONS AND RESTRICTED STOCK. Each year, as of the
first business day following the conclusion of the Company's annual meeting of
stockholders (the "Annual Meeting"), each individual who was elected, reelected
or continues as a member of the Board and who is not an employee of the Company
or any subsidiary (a "Non-Employee Director") shall automatically be granted (a)
an option to purchase five hundred shares of Common Stock (an "Option"), on the
terms and subject to the conditions in Section 4, and (b) two-hundred and fifty
shares of Common Stock, subject to the potential forfeiture and restrictions on
transfer in Section 5 (the "Restricted Stock").

      4. OPTIONS.

            (a) Each Option granted under the Plan shall be evidenced by an
      agreement (an "Option Agreement") which shall entitle the holder to
      purchase during its term the Common Stock subject to the Option at an
      exercise price per share equal to the Fair Market Value of Common Stock on
      the date such Option is granted. The term of any Option shall be
      determined by the Board, but in no event shall any Option be exercisable
      more than ten years after the date on which it was granted. The term "Fair
      Market Value" shall mean the average of the high and the low sales prices
      of Common Stock on the date the Option is granted, as reported on the New
      York Stock Exchange Composite Transactions Tape or, if no sales of Common
      Stock are reported on the New York Stock Exchange Composite Transactions
      Tape on that date, the average prices on the last preceding date on which
      sales of Common Stock were reported on the New York Stock Exchange
      Composite Transactions Tape.

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            (b) Each Option shall not be exercisable before the expiration of
      one year from its date of grant and may be exercised during its term as
      follows: one-third (33 1/3 percent) of the total number of shares of
      Common Stock covered by the Option shall become exercisable each year
      beginning with the first anniversary of the date the Option is granted;
      provided that if the Non-Employee Director resigns as a director prior to
      the date of the Company's next succeeding Annual Meeting following the
      date the Option was granted (the "Next Annual Meeting"), the Option shall
      terminate simultaneously with his resignation, and if the Non-Employee
      Director ceases to be a director prior to the Next Annual Meeting for any
      reason other than resignation prior to the Next Annual Meeting, the Option
      shall automatically become immediately exercisable in full. If any
      Non-Employee Director shall cease to be a director for reasons other than
      death, while holding an Option that has not terminated or expired and has
      not been fully exercised, such Non-Employee Director, at any time within
      one year of the date he ceased to be a director but not thereafter (and in
      no event after the Option has expired), may exercise the Option with
      respect to any shares of Common Stock as to which he has not exercised the
      Option on the date he ceased to be a director; and if any Non-Employee
      Director to whom an Option has been granted shall die holding an Option
      that has not been fully exercised, his executors, administrators, heirs or
      distributees, as the case may be, may, at any time within one year after
      the date of such death but not thereafter (and in no event after the
      Option has expired), exercise the Option with respect to any shares of
      Common Stock as to which the Non-Employee Director could have exercised
      the Option at the time of his death.

            (c) Payment in full of the exercise price for the Common Stock
      acquired upon exercise of an Option shall be due at the time the Option is
      exercised, with such payment being made in cash, by tendering shares of
      Common Stock already owned by the person exercising the Option and having
      a fair market value equal to the exercise price applicable to the shares
      of Common Stock being acquired upon exercise of the Option or by any
      combination thereof in accordance with such procedures as may be
      established by the Board. In addition, the Board may permit the payment of
      the exercise price upon exercise of the Option by allowing the
      Non-Employee Director to direct the Company to withhold that number of
      shares of Common Stock that would be acquired upon exercise of the Option
      having a fair market value equal to the exercise price.

            (d) Option Agreements shall be in such form as the Board may from
      time to time approve, and the provisions governing Options need not be the
      same with respect to each Non-Employee Director. Option Agreements shall
      be subject to the terms and conditions set forth in this Plan and may
      contain such additional terms and conditions, not inconsistent with the
      provisions of this Plan, as the Board shall deem desirable. The Board may
      amend the terms of any Option Agreement, prospectively or retroactively,
      but no such amendment shall materially and adversely affect any right of
      any Non-Employee Director without his consent. Except as provided in
      Section 7, the Board shall not have the authority to cancel any
      outstanding Option and issue a new Option in its place with a lower
      exercise price.

            (e) A Non-Employee Director to whom an Option is granted (and any
      person succeeding to such Non-Employee Director's rights pursuant to the
      Plan) shall have no

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      rights as a stockholder with respect to any shares of Common Stock
      issuable pursuant to any such Option until the date of the issuance of a
      stock certificate to him for such shares. Except as provided in Section 7,
      no adjustment shall be made for dividends, distributions or other rights
      (whether ordinary or extraordinary, and whether in cash, securities or
      other property) for which the record date is prior to the date such stock
      certificate is issued.

            (f) No Option or any right or interest therein shall be assignable
      or transferable except, in the event of the Non-Employee Director's death,
      by will or the laws of descent and distribution. Notwithstanding the
      foregoing, the Board may, in its discretion, provide that an Option may be
      transferable, without consideration, to a Non-Employee Director's
      immediate family members (i.e., children, grandchildren or spouse), to
      trusts for the benefit of such immediate family members and to
      partnerships in which such family members are the only partners. The Board
      may impose such terms and conditions on such transferability as it may
      deem appropriate.

      5. RESTRICTED STOCK.

            (a) Restricted Stock granted under the Plan shall be issued for no
      consideration but shall be forfeited to the Company (without the payment
      of any consideration) if the Non-Employee Director resigns from the Board
      prior to the Next Annual Meeting. In addition, Restricted Stock shall not
      be sold, assigned, pledged or transferred to any person until the third
      anniversary of the date the Restricted Stock is granted; provided that the
      Restricted Stock shall automatically cease to be subject to the foregoing
      restrictions on sale, assignment, pledge or transfer upon the director's
      death prior to the Next Annual Meeting or, subsequent to the Next Annual
      Meeting, upon the date the Non-Employee Director ceases to be a director
      for any reason.

            (b) The Non-Employee Director to whom Restricted Stock is issued
      will have the customary rights of a stockholder with respect to such
      shares of Common Stock, including the right to vote the shares of Common
      Stock and to receive cash dividends paid thereon. Prior to the date the
      Restricted Stock ceases to be subject to the restrictions on sale,
      assignment, pledge or transfer in Section 5(a), dividends paid on such
      Common Stock in the form of additional shares of Common Stock or as
      securities or other property shall be subject to the same risk of
      forfeiture and other restrictions as the underlying shares of Common Stock
      with respect to which the dividend was paid.

            (c) Any Restricted Stock issued under the Plan may be evidenced in
      such manner as the Board in its sole discretion shall deem appropriate,
      including, without limitation, book-entry registration or by the issuance
      of a stock certificate or certificates. In the event any stock certificate
      is issued in respect of Restricted Stock, such certificate shall be
      registered in the name of the Non-Employee Director, and shall bear an
      appropriate legend referring to the terms, conditions, and restrictions
      applicable to such Restricted Stock.

            (d) In lieu of the issuance of Common Stock as Restricted Stock, the
      Board may provide for or permit the grant of unfunded, bookkeeping units
      having a value equal to the value of, and being subject to the same terms
      and restrictions applicable to,

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      Restricted Stock. At the time of payment, the then-current value of Common
      Stock times the number of units (as adjusted for any dividends paid on
      such Common Stock, whether in cash or in the form of additional shares of
      Common Stock or as securities or other property) will be payable in cash
      or shares of Common Stock or a combination thereof. Any such bookkeeping
      units may be established under, and paid pursuant to, a plan that is a
      supplement to, or that is separate from, this Plan (and may contain other
      terms, conditions and provisions in addition to, but not inconsistent
      with, this Plan), but any Common Stock represented by such bookkeeping
      units shall be treated for purposes of Section 6 as Restricted Stock
      issued under this Plan.

      6. AVAILABLE SHARES OF COMMON STOCK. There may be issued under the Plan
pursuant to the exercise of Options and granted as Restricted Stock an aggregate
of not more than 50,000 shares of Common Stock, subject to adjustment as
provided in Section 7.

      7. DILUTION AND OTHER ADJUSTMENTS. In the event of any corporate
transaction involving the Company (including, without limitation, any
subdivision or combination or exchange of the outstanding shares of Common
Stock, stock dividend, stock split, spin-off, split-off, recapitalization,
capital reorganization, liquidation, reclassification of shares of Common Stock,
merger, consolidation, extraordinary cash distribution, or sale, lease or
transfer of substantially all of the assets of the Company), the number or kind
of shares that may be issued under the Plan as Options and Restricted Stock
pursuant to Section 3 and in the aggregate under Section 6 shall be
automatically adjusted to give effect to the occurrence of such event, and the
number or kind of shares subject to, or the Option price per share under, any
outstanding Option shall be automatically adjusted so that the proportionate
interest of the Non-Employee Director (and any person succeeding to such
Non-Employee Director's rights pursuant to the Plan) shall be maintained as
before the occurrence of such event; such adjustment in outstanding Options
shall be made without change in the total Option exercise price applicable to
the unexercised portion of such Options and with a corresponding adjustment in
the Option exercise price per share, and such adjustment shall be conclusive and
binding for all purposes of the Plan. In the event that bookkeeping units have
been established in lieu of Restricted Stock, such bookkeeping units shall be
subject to adjustment to the same extent as Restricted Stock.

      8. AMENDMENT OR TERMINATION. The Board, without the consent of any
Non-Employee Director, may at any time terminate or from time to time amend the
Plan in whole or in part, including, without limitation, to increase or decrease
the number of shares of Common Stock granted as an Option or as Restricted Stock
in Section 3; provided, however, that no such action shall adversely affect any
rights or obligations with respect to any Options or Restricted Stock granted
under the Plan; and provided, further, that no amendment, without further
approval by the stockholders of the Company in accordance with Section 10 below,
shall (i) increase the aggregate number of shares subject to the Plan (other
than increases pursuant to Section 7), (ii) extend the period during which
Options or Restricted Stock may be granted under the Plan, (iii) increase the
maximum term for which Options may be exercised under the Plan, (iv) decrease
the exercise price at which Options may be granted under the Plan (other than
pursuant to Section 7), or (v) modify the requirements for eligibility to
participate in the Plan.

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      9. MISCELLANEOUS PROVISIONS.

            (a) Nothing in the Plan shall be deemed to create any obligation on
      the part of the Board to nominate any director for re-election by the
      Company's stockholders or to limit the rights of the stockholders to
      remove any director. Except as expressly provided for in the Plan, no
      Non-Employee Director or other person shall have any claim or right to be
      granted an Option or Restricted Stock under the Plan.

            (b) The Company shall have the right to require, prior to the
      issuance of any shares of Common Stock pursuant to the Plan, the payment
      of, or provision by, a Non-Employee Director of any taxes required by law
      to be withheld with respect to the issuance of such shares. The Board
      shall be authorized to establish procedures for elections by Non-Employee
      Directors to satisfy such withholding taxes by delivery of, or directing
      the Company to retain, shares of Common Stock.

            (c) The obligation of the Company to issue shares of Common Stock
      upon the exercise of Options or as Restricted Stock shall be subject to
      the satisfaction of all applicable legal and securities exchange
      requirements, including, without limitation, the provisions of the
      Securities Act of 1933, as amended, and the Securities Exchange Act of
      1934, as amended. The Company shall endeavor to satisfy all such
      requirements in such a manner as to permit at all times the exercise of
      all outstanding Options in accordance with their terms, and to permit the
      issuance and delivery of shares of Common Stock as Restricted Stock.

            (d) No shares of Common Stock shall be issued hereunder unless
      counsel for the Company shall be satisfied that such issuance will be in
      compliance with applicable federal, state and other securities laws.

            (e) Shares of Common Stock issued under the Plan may be original
      issue shares of Common Stock, treasury stock, shares of Common Stock
      purchased in the open market or otherwise.

      10. EFFECTIVE DATE; TERM. The Plan shall become effective when approved at
a meeting of stockholders by a majority of the voting power of the voting stock
(all as defined in the Company's Restated Certificate of Incorporation) present
in person or represented by proxy and entitled to vote at such meeting. The Plan
shall terminate at the close of business on December 31, 2009, unless sooner
terminated by action of the Board. No Option or Restricted Stock may be granted
hereunder after termination of the Plan, but such termination shall not affect
the validity of any Option or Restricted Stock theretofore granted.

      11. LAW GOVERNING. The validity and construction of the Plan and any
agreements entered into thereunder shall be governed by the laws of the State of
New York, but without regard to the conflict laws of the State of New York
except to the extent that such conflict laws require application of the laws of
the State of Delaware.

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                                                                  EXHIBIT 10.02

                              ALLEGHANY CORPORATION

                            MANAGEMENT INCENTIVE PLAN

      1. PURPOSE OF THE PLAN. The purpose of the Alleghany Corporation
Management Incentive Plan (the "Plan") is to allow Alleghany Corporation (the
"Company") to provide performance-based incentive compensation that satisfies
the requirements for performance-based compensation in Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"), consisting of incentive
compensation bonuses to its officers, upon whom, in large measure, the sustained
progress, growth and profitability of the Company depends.

      2. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Compensation Committee of the Board of Directors of the Company (the
"Committee"). Subject to the provisions of the Plan, the Committee shall have
the exclusive authority to select the officers to participate in the Plan, to
establish performance goals for performance during each Performance Period (as
defined in Section 4), to determine the amount of the incentive compensation
bonus payable to any Participant (as defined in Section 3), and to make all
determinations and take all other actions necessary or appropriate for the
proper administration and operation of the Plan. Any determination by the
Committee on any matter relating to the Plan shall be made in its sole
discretion and need not be uniform among Participants. The Committee's
interpretation of the Plan shall be final, conclusive and binding on all parties
concerned, including the Company, its stockholders and any Participant.

      3. ELIGIBILITY. Incentive compensation bonuses under the Plan may be paid
to those officers (including officers who are directors) of the Company who
shall be selected by the Committee after consideration of management's
recommendations ("the Participants").
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Participants may receive multiple incentive compensation bonuses during the same
year under the Plan.

      4. PERFORMANCE PERIODS. Incentive compensation bonuses may be payable to
each Participant as a result of the satisfaction of performance goals in respect
of the calendar year or such other period as is selected by the Committee (a
"Performance Period").

      5. INCENTIVE COMPENSATION BONUSES.

            (a) Target Incentive Compensation Bonuses. Prior to the beginning of
      each Performance Period, or at such other time no later than such time as
      is permitted by the applicable provisions of the Code, the Committee after
      consideration of management's recommendations shall establish in writing
      the target (or range of) incentive compensation bonus opportunity for each
      Participant based upon the attainment of one or more performance goals
      established by the Committee at such time. The Committee may provide for a
      threshold level of performance below which no amount of incentive
      compensation bonus will be paid and a maximum level of performance above
      which no additional incentive compensation bonus will be paid, and it may
      provide for the payment of differing amounts for different levels of
      performance.

            (b) Performance Goals. Performance goals, which may vary from
      Participant to Participant and target incentive compensation bonus
      opportunity to target incentive compensation bonus opportunity, shall be
      based upon the attainment of specific amounts of, or increases in, one or
      more of the following: revenues, operating income, cash flow, earnings
      before income taxes, net income, earnings per share, stockholders' equity,
      return on equity, underwriting profits, compound growth in net loss and
      loss adjustment expense reserves, loss ratio or combined ratio of the
      Company's insurance businesses, operating

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      efficiency or strategic business objectives consisting of one or more
      objectives based on meeting specified cost targets, business expansion
      goals and goals relating to acquisitions or divestitures, all whether
      applicable to the Company or any relevant subsidiary or business unit or
      entity in which the Company has a significant investment, or any
      combination thereof as the Committee may deem appropriate.

                  Each performance goal may be expressed on an absolute and/or
      relative basis, may be based on, or otherwise employ, comparisons based on
      internal targets, the past performance of the Company and/or the past or
      current performance of other companies, may provide for the inclusion,
      exclusion or averaging of specified items in whole or in part, such as
      catastrophe losses, realized gains or losses on strategic investments,
      discontinued operations, extraordinary items, accounting changes, and
      unusual or nonrecurring items, and, in the case of earnings-based
      measures, may use or employ comparisons relating to capital, shareholders'
      equity and/or shares outstanding, assets or net assets.

            (c) Incentive Compensation Bonus Determination. As soon as
      practicable after the end of each Performance Period but before any
      incentive compensation bonuses are paid, the Committee shall certify in
      writing (i) whether the performance goal or goals were attained and (ii)
      the amount of the incentive compensation bonus payable to each Participant
      based upon the attainment of the performance goals established by the
      Committee. The Committee may determine to grant a Participant an incentive
      compensation bonus equal to, but not in excess of, the amount specified in
      the foregoing certification. The Committee may also reduce or eliminate
      the amount of any incentive compensation bonus of any Participant at any
      time prior to payment thereof, based on

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      such criteria as it shall determine, including but not limited to
      individual merit and attainment of, or the failure to attain, specified
      personal goals established by the Committee. Under no circumstance may the
      Committee increase the amount of the incentive compensation bonus
      otherwise payable to a Participant beyond the amount originally
      established, waive the attainment of the performance goals established by
      Committee or otherwise exercise its discretion so as to cause any
      incentive compensation bonus not to qualify as performance-based
      compensation under Section 162(m) of the Code.

            (d) Payment. As soon as practicable following the Committee's
      determination of the amount of any incentive compensation bonus payable to
      a Participant, such incentive compensation bonus shall be paid by the
      Company in cash to such Participant.

            (e) Death, Disability, Etc. In the event a Participant shall die or
      become disabled prior to the end of a Performance Period, the Participant
      (or in the event of the Participant's death, the Participant's
      beneficiary) shall be entitled to receive such pro-rata portion of the
      incentive compensation bonus established for the Participant as shall be
      determined by the Committee, subject to Section 7(a). In the event a
      Participant's employment with the Company is otherwise terminated during
      the Performance Period, the Committee, in its discretion, shall determine
      the amount, if any, of the incentive compensation bonus that shall be
      payable to the Participant.

            (f) Annual Maximum. The incentive compensation bonuses payable to
      any Participant pursuant to the Plan in a single calendar year shall not
      exceed [$5 million].

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            6. DILUTION AND OTHER ADJUSTMENTS.

            To the extent that a performance goal is based on, or calculated
with respect to, the Company's common stock (such as increases in earnings per
share or other similar measures), then in the event of any corporate transaction
involving the Company (including, without limitation, any subdivision or
combination or exchange of the outstanding shares of common stock, stock
dividend, stock split, spin-off, split-off, recapitalization, capital
reorganization, liquidation, reclassification of shares of common stock, merger,
consolidation, extraordinary cash distribution, or sale, lease or transfer of
substantially all of the assets of the Company), the Committee shall make or
provide for such adjustments in such performance goal as the Committee may in
good faith determine to be equitably required in order to prevent dilution or
enlargement of any increase or decrease in the rights of Participants.

      7. MISCELLANEOUS PROVISIONS.

            (a) Right to Incentive Compensation Bonus. No officer or other
      person shall have any claim or right to receive any incentive compensation
      bonus under the Plan prior to the actual payment thereof.

            (b) No Assurance of Employment. Neither the establishment of the
      Plan nor any action taken thereunder shall be construed as giving any
      officer or other person any right to be retained in the employ of the
      Company.

            (c) Withholding Taxes. The Company shall have the right to deduct
      from all incentive compensation bonuses payable hereunder any federal,
      state, local or foreign taxes required by law to be withheld with respect
      to such payments.

            (d) No Transfers or Assignments. No incentive compensation bonus
      under the Plan nor any rights or interests herein or therein shall be
      assigned, transferred,

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      pledged, encumbered, or hypothecated to, or in favor of, or subject to any
      lien, obligation, or liability of a Participant to, any party (other than
      the Company or any subsidiary), except, in the event of the Participant's
      death, to his designated beneficiary as hereinafter provided.

            (e) Beneficiary. Any payments on account of an incentive
      compensation bonus payable under the Plan to a deceased Participant shall
      be paid to such beneficiary as has been designated by the Participant in
      writing to the Secretary of the Company or in the absence of such
      designation, according to the Participant's will or the laws of descent
      and distribution.

            (f) Non-exclusivity of Plan. Nothing in the Plan shall be construed
      in any way as limiting the authority of the Committee, the Board of
      Directors of the Company, the Company or any subsidiary to establish any
      other annual or other incentive compensation bonus plan or as limiting the
      authority of any of the foregoing to pay cash bonuses or other
      supplemental or additional incentive compensation to any persons employed
      by the Company, whether or not such person is a Participant in this Plan
      and regardless of how the amount of such bonus or compensation is
      determined.

      8. AMENDMENT OR TERMINATION OF THE PLAN. The Board of Directors of the
Company, without the consent of any Participant, may at any time terminate or
from time to time amend or terminate the Plan in whole or in part, whether
prospectively or retroactively, including in any manner that adversely affects
the rights of Participants; provided, however, that no amendment that would
require the consent of the stockholders of the Company pursuant to Section
162(m) of the Code shall be effective without such consent.

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      9. LAW GOVERNING. The validity and construction of the Plan shall be
governed by the laws of the State of New York, but without regard to the
conflict laws of the State of New York except to the extent that such conflict
laws require application of the laws of the State of Delaware.

      10. EFFECTIVE DATE. The Plan shall be effective commencing January 1,
2005, subject to approval by the stockholders of the Company in accordance with
Section 162(m) of the Code.

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