Document:

<PAGE>   1
                         CERTIFICATE OF INCORPORATION OF

                           INSTINET GROUP INCORPORATED

                                    ARTICLE I

         The name of the Corporation is Instinet Group Incorporated (the
"Corporation").

                                   ARTICLE II

         The address of the Corporation's registered office in the State of
Delaware is 1209 Orange Street, Wilmington, Delaware 19801, County of New
Castle. The name of its registered agent at such address is The Corporation
Trust Company.

                                   ARTICLE III

         The nature of the business or purposes to be conducted or promoted by
the Corporation is to engage in any lawful act or activity for which
corporations may be organized under the General Corporation Law of the State of
Delaware ("DGCL"), as the same exists or may hereafter be amended.

                                   ARTICLE IV

         The Corporation is authorized to issue two classes of stock to be
designated, respectively, common stock, par value $0.01 per share ("Common
Stock"), and preferred stock, par value $0.01 per share ("Preferred Stock"). The
total number of shares of Common Stock that the Corporation shall have authority
to issue is 950,000,000. The total number of shares of Preferred Stock that the
Corporation shall have authority to issue is 200,000,000. The Preferred Stock
may be issued from time to time in one or more series.

         The board of directors is hereby authorized, subject to limitations
prescribed by law and the provisions of this Article IV, by resolution to
provide for the issuance of the shares of Preferred Stock in one or more series,
and to establish from time to time the number of shares to be included in each
such series, and to fix the designation, powers, preferences, and relative
participating, optional or other rights, if any, of the shares of each such
series and the qualifications, limitations or restrictions thereof.

         The authority of the board of directors with respect to each series of
preferred stock shall include, but not be limited to, determination of the
following:

         A. The number of shares constituting that series (including an increase
or decrease in the number of shares of any such series (but not below the number
of shares in any such series then outstanding)) and the distinctive designation
of that series;

         B. The dividend rate on the shares of that series, whether dividends
shall be cumulative, and, if so, from which date or dates, and the relative
rights of priority, if any, of payment of dividends on shares of that series;

         C. Whether that series shall have voting rights (including multiple or
fractional votes per share) in addition to the voting rights provided by law,
and, if so, the terms of such voting rights;

         D. Whether that series shall have conversion privileges, and, if so,
the terms and conditions of such privileges, including provision for adjustment
of the conversion rate in such events as the board of directors shall determine;

         E. Whether or not the shares of that series shall be redeemable, and,
if so, the terms and conditions of such redemption, including the date or dates
upon or after which they shall be redeemable, and the amount per share payable
in case of redemption, which amount may vary under different conditions and at
different redemption rates;
<PAGE>   2

         F. Whether that series shall have a sinking fund for the redemption or
purchase of shares of that series, and, if so, the terms and the amount of such
sinking funds;

         G. The rights of the shares of that series in the event of voluntary or
involuntary liquidation, dissolution or winding up of the Corporation, and the
relative rights of priority, if any, of payment of shares of that series; and

         H. Any other relative rights, preferences and limitations of that
series.

         No holders of shares of the Corporation of any class, now or hereafter
authorized, shall have any preferential or preemptive rights to subscribe for,
purchase or receive any shares of the Corporation of any class, now or hereafter
authorized, or any options or warrants for such shares, or any rights to
subscribe for, purchase or receive any securities convertible to or exchangeable
for such shares, which may at any time be issued, sold or offered for sale by
the Corporation.

                                    ARTICLE V

         For the management of the business and for the conduct of affairs of
the Corporation, and in further definition, limitation and regulation of the
powers of the Corporation, of its directors and of its stockholders or any class
thereof, as the case may be, it is further provided that:

         A. The management of the business and the conduct of the affairs of the
Corporation shall be vested in its board of directors. The authorized number of
directors of the Corporation shall be no more than 15 and no less than 6, and
may be fixed and changed within such range from time to time by a resolution
adopted by a majority of the Whole Board. For purposes of this Certificate of
Incorporation, the term "Whole Board" shall mean the total number of authorized
directors, whether or not there exist any vacancies in previously authorized
directorships.

         B. The directors, other than with respect to those directors who may be
elected by the holders of any class or series of stock having a preference over
the Common Stock as to dividends or upon liquidation, shall be classified, with
respect to the time for which they severally hold office, into three classes, as
nearly equal in number as possible, one class to be originally elected for a
term expiring at the annual meeting of stockholders to be held in 2002, another
class to be originally elected for a term expiring at the annual meeting of
stockholders to be held in 2003, and another class to be originally elected for
a term expiring at the annual meeting of stockholders to be held in 2004, with
directors of each class to hold office until their successors are duly elected
and qualified. At each succeeding annual meeting of stockholders, directors
elected to succeed those directors whose terms then expire shall be elected for
a term of office to expire at the third succeeding annual meeting of
stockholders after their election, with each director, including a director
elected or appointed to fill a vacancy, to hold office until such person's
successor shall have been elected and qualified or until such person's earlier
resignation, removal, death or disqualification. No decrease in the number of
directors constituting the board of directors shall shorten the term of any
incumbent director.

         C. The board of directors is expressly empowered to adopt, amend or
repeal bylaws of the Corporation (the "Bylaws"). The stockholders shall also
have power to adopt, amend or repeal the Bylaws of the Corporation; PROVIDED,
HOWEVER, that, in addition to any vote of the holders of any class or series of
stock of the Corporation required by law or by this Certificate of
Incorporation, the affirmative vote of the holders of a majority of the voting
power of all of the then outstanding shares of the capital stock of the
Corporation entitled to vote generally in the election of directors, voting
together as a single class, shall be required to adopt, amend or repeal any
provision of the Bylaws of the Corporation; AND FURTHER PROVIDED, HOWEVER, that
from and after the date on which Reuters Group PLC, a public limited company
organized under the laws of England and Wales, and its Affiliates ("Reuters"),
or a transferee from Reuters of at least a majority of the then outstanding
shares of Common Stock and its Affiliates (a "Majority Transferee"), shall cease
to beneficially own ("Beneficially Own"), within the meaning of Rule 13d-3 under
the Securities Exchange Act of 1934, as amended, at least a majority of the then
outstanding shares of Common Stock (in each case, the "Trigger Date"), the
affirmative vote of the holders of at least 66 2/3% of the voting power of all
of the then-outstanding shares of the capital stock of the Corporation entitled
to vote generally in the election of directors, voting together as a single
class, shall be required to adopt, amend or repeal any provision of the Bylaws
of the Corporation.

                                       2
<PAGE>   3

         D. The directors need not be stockholders unless so required by the
Bylaws, wherein other qualifications for directors may be prescribed.

         E. The directors of the Corporation need not be elected by written
ballot unless the Bylaws so provide.

         F. Advance notice of stockholder nomination for the election of
directors and of any other business to be brought by stockholders before any
meeting of the stockholders of the Corporation shall be given in the manner
provided in the Bylaws.

         G. Subject to the rights of the holders of any series of Preferred
Stock then outstanding, newly created directorships resulting from any increase
in the authorized number of directors or any vacancies in the board of directors
resulting from death, resignation, retirement, disqualification, removal from
office or other cause shall, unless otherwise required by law or by resolution
of the board of directors, be filled by a majority vote of the directors then in
office, though less than a quorum (and not by stockholders), and directors so
chosen shall hold office for a term expiring at the annual meeting of
stockholders at which the term of office of the class to which they have been
chosen expires and until such director's successor shall have been duly elected
and qualified. Notwithstanding the foregoing in this paragraph G, the directors
then in office shall fill such vacancies, to the extent permitted by applicable
law, consistent with the terms of the corporate agreement to be entered into
between the Corporation and Reuters Limited, a company organized under the laws
of England and Wales (the "Corporate Agreement").

         H. Prior to the Trigger Date, any corporate action required to be taken
at any annual or special meeting of stockholders of the Corporation, or any
corporate action which may be taken at any annual or special meeting of the
stockholders, may be taken without a meeting, without prior notice and without a
vote, if a consent or consents in writing, setting forth the corporate action so
taken, shall be signed by the holders of outstanding stock having not less than
the minimum number of votes that would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon were present
and voted. On and after the Trigger Date (as hereinafter defined) the power to
act by written consent is expressly denied, and any corporate action required to
be taken at any annual or special meeting of the stockholders, or any corporate
action which may be taken at any annual or special meeting of the stockholders,
may be taken only at a duly called annual or special meeting of stockholders and
may not be taken by written consent of the stockholders in lieu of such meeting.
Except as set forth in this paragraph H and paragraph I, special meetings of the
stockholders may not be called by any other person or persons.

         I. Unless provided by law or by this Certificate of Incorporation,
special meetings of stockholders of the Corporation for any purpose or purposes
may be called only by the Chairman of the board or by the board of directors
acting pursuant to a resolution adopted by a majority of the Whole Board;
provided, however, that prior to the date on which Reuters or a Majority
Transferee shall cease to Beneficially Own at least 15% of the then outstanding
shares of Common Stock, special meetings of stockholders of the corporation may
also be called by Reuters (if Reuters Beneficially Owns 15% of the then
outstanding shares of Common Stock) or any such Majority Transferee (if such
Majority Transferee Beneficially Owns 15% of the then outstanding shares of
Common Stock).

         J. Subject to the rights of the holders of any class of Preferred Stock
or series thereof to elect additional directors and remove directors under
specified circumstances, (i) prior to the Trigger Date, any director may be
removed from office, with or without cause, by the affirmative vote of the
holders of at least of a majority of the then outstanding Common Stock and (ii)
on and after the Trigger Date, any director may be removed from office only for
cause by the affirmative vote of the holders of at least a majority of the then
outstanding Common Stock.

         K. Notwithstanding anything to the contrary contained in this
Certificate of Incorporation, the affirmative vote of the holders of at least 66
2/3% of the voting power of all of the then outstanding shares of the capital
stock of the Corporation entitled to vote generally in the election of
directors, voting together as a single class, shall be required to amend, alter,
change or repeal any provision of this Article V; provided, however, that prior
to the Trigger Date, the affirmative vote of the holders of at least a majority
of the voting power of all of the then outstanding shares of the capital stock
of the Corporation entitled to vote generally in the

                                       3
<PAGE>   4

election of directors, voting together as a single class, shall be sufficient to
effect any such amendments, alterations, changes or repeals to any provision of
this Article V.

                                   ARTICLE VI

         A. For purposes of this Article VI, the following definitions shall
apply:

            1. "AFFILIATE" means, with respect to a given Person, any other
Person that, directly or indirectly, controls, is controlled by, or is under
common control with, such Person; provided, however, that the Instinet Entities
and their Affiliates, on the one hand, and the Reuters Entities and their
Affiliates, on the other, shall not be deemed to be "Affiliates" of one another.
For purposes of this definition, "control" (including, with correlative
meanings, the terms "controlled by" and "under common control with"), as applied
to any Person, means the possession, directly or indirectly, of the power to
vote forty percent (40%) or more of the securities having voting power for the
election of directors (or other Persons acting in similar capacities) of such
Person or otherwise to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

            2. "INSTINET ENTITIES" means the Corporation and its Subsidiaries,
and "Instinet Entity" shall mean any of the Instinet Entities.

            3. "PERSON" means any individual, partnership, limited liability
company, joint venture, corporation, trust, unincorporated organization,
government (and any department or agency thereof) or other entity.

            4. "REUTERS ENTITIES" means Reuters and Subsidiaries of Reuters
(other than Subsidiaries that constitute Instinet Entities).

            5. "SUBSIDIARY" means, as to any Person, any corporation,
association, partnership, joint venture or other business entity of which more
than 50% of the voting power of capital stock or other voting ownership
interests entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof is owned or
controlled, directly or indirectly, by such Person or by one or more of the
Subsidiaries of such Person or by a combination thereof.

         B.       In anticipation that:

                  (1) the Corporation will cease to be a wholly owned subsidiary
         of the Reuters Entities, but that one or more of the Reuters Entities
         will remain, for some period of time, a stockholder of the Corporation;

                  (2) the Instinet Entities and their Affiliates and the Reuters
         Entities and their Affiliates may engage in the same or similar lines
         of business and may have an interest in the same or similar areas of
         corporate opportunities;

                  (3) there will be benefits in providing guidelines for
         directors and officers of the Instinet Entities and their Affiliates
         and the Reuters Entities and their Affiliates with respect to the
         allocation of corporate opportunities and other matters;

                  the provisions of this Article VI are set forth to regulate,
define and guide the conduct of certain affairs of the Instinet Entities and
their Affiliates as they may involve the Reuters Entities and their Affiliates
and their officers and directors, and the powers, rights, duties and liabilities
of the Instinet Entities and their Affiliates and its officers, directors and
stockholders in connection therewith.

         C. Except as the Reuters Entities or their Affiliates may otherwise
agree in writing, the Reuters Entities or their Affiliates shall have the right
to, and shall have no duty to refrain from, (i) engaging directly or indirectly
in the same or similar lines of business as the Instinet Entities or their
Affiliates, or (ii) employing or otherwise engaging any officer or employee of
the Instinet Entities or their Affiliates, and such Reuters Entities or their
Affiliates.

                                       4
<PAGE>   5

         D. For the avoidance of doubt and in furtherance of the foregoing, the
following provisions shall be applicable to the fullest extent consistent with,
and permitted by, applicable Delaware law. Subject to the provisions of the next
paragraph below, if the Reuters Entities or any of their Affiliates acquire
knowledge of a potential transaction or matter that may be a corporate
opportunity for any of the Reuters Entities, any of their Affiliates, the
Instinet Entities or their Affiliates, neither the Reuters Entities nor any of
their Affiliates will be under an obligation to communicate or offer such
corporate opportunities to the Instinet Entities or their Affiliates and shall
not be deemed to have breached any fiduciary duty as a stockholder of the
Instinet Entities or their Affiliates solely because any of them pursues or
acquires the corporate opportunity for itself, directs the corporate opportunity
to another Person or does not communicate information regarding the corporate
opportunity to the Instinet Entities or their Affiliates.

         In the event that a director, officer or employee of the Instinet
Entities or their Affiliates who is also a director, officer or employee of any
of the Reuters Entities or their Affiliates is expressly offered in his or her
capacity as a director, officer or employee a potential transaction or matter
that may be a corporate opportunity for both the Instinet Entities or their
Affiliates and any of the Reuters Entities or their Affiliates, such director,
officer or employee of the Instinet Entities shall act in good faith in a manner
consistent with the following:

                  (1) a corporate opportunity offered to any person who is an
         officer or employee (whether or not a director) of any of the Instinet
         Entities or their Affiliates and who is also a director but not an
         officer or employee of any of the Reuters Entities or their Affiliates
         shall belong to the relevant Instinet Entity, unless such opportunity
         is expressly offered to such person in his or her capacity as a
         director of any of the Reuters Entities or their Affiliates, in which
         case such opportunity shall belong to the relevant Reuters Entity;

                  (2) a corporate opportunity offered to any person who is a
         director but not an officer or employee of any of the Instinet Entities
         or their Affiliates and who is also an officer or employee (whether or
         not a director) of any of the Reuters Entities or their Affiliates
         shall belong to the relevant Reuters Entity, unless such opportunity is
         expressly offered to such person in his or her capacity as a director
         of any of the Instinet Entities or their Affiliates, in which case such
         opportunity shall belong to the relevant Instinet Entity;

                  (3)  a corporate opportunity

                           (i) offered to any other person who is either (A) an
                  officer or employee of both any of the Instinet Entities or
                  their Affiliates and any of the Reuters Entities or their
                  Affiliates or (B) a director of both any of the Instinet
                  Entities or their Affiliates and any of the Reuters Entities
                  or their Affiliates (but not an officer or employee of any of
                  the Instinet Entities or their Affiliates or any of the
                  Reuters Entities or their Affiliates), and

                           (ii) that is expressly offered to such person (A) in
                  his or her capacity as an officer, employee or director of any
                  of the Instinet Entities or their Affiliates shall belong to
                  the relevant Instinet Entity; or (B) in his or her capacity as
                  an officer, employee or director of any of the Reuters
                  Entities or their Affiliates shall belong to the relevant
                  Reuters Entity;

otherwise, such corporate opportunity shall belong to the relevant Reuters
Entity.

         Any person acting in a manner consistent with the foregoing, then to
the fullest extent permitted by law, (i) shall be deemed to have fully satisfied
and fulfilled the fiduciary duty of such officer or director to the Corporation
or its stockholders with respect to such corporate opportunity, (ii) shall be
deemed not to have breached any fiduciary duty to the Instinet Entities or their
Affiliates or their stockholders solely by reason of the fact that any Reuters
Entity or any of its Affiliates pursues or acquires such corporate opportunity
for itself, directs the corporate opportunity to another Person, or does not
communicate information regarding the corporate opportunity to any of the
Instinet Entities or their Affiliates, (iii) shall be deemed to have acted in
good faith and in a manner such Person reasonably believes to be in or not
opposed to the best interests of any of the Instinet Entities or their
Affiliates and (iv) shall be deemed not to have

                                       5
<PAGE>   6

breached his or her duty of loyalty to the Instinet Entities or their Affiliates
or their stockholders and not to have derived an improper benefit therefrom.

         E.       For the avoidance of doubt and in furtherance of the
         foregoing:

                  (1) nothing contained in this Article VI amends or modifies,
         or will amend or modify, in any respect any written contractual
         arrangement between the Reuters Entities or any of their Affiliates on
         the one hand and the Instinet Entities or any of their Affiliates on
         the other hand;

                  (2) for purposes of this Article VI, a director who is
         Chairman or chairman of a committee of the board is not deemed an
         officer of the Corporation by reason of holding that position unless
         that person is a full-time employee of the Corporation.

         F. Notwithstanding anything in this Certificate of Incorporation to the
contrary, (i) the provisions of this Article VI, shall expire as to the Reuters
Entities and their Affiliates and as to the Instinet Entities and their
Affiliates on the day that Reuters ceases to Beneficially Own shares of Common
Stock representing at least 20% of the voting power of the outstanding shares of
Common Stock and when no person who is a director or officer of the Corporation
is also a director or officer of Reuters or any of its Affiliates and (ii) in
addition to any vote of the stockholders required by this Certificate of
Incorporation, until the time that Reuters ceases to Beneficially Own shares of
Common Stock representing at least 20% of the voting power of the outstanding
shares of Common Stock, the affirmative vote of at least 80% of the voting power
of the outstanding shares of Common Stock shall be required to alter, amend or
repeal (by merger or otherwise) in a manner adverse to the interests of the
Reuters Entities, or adopt any provision adverse to the interests of the Reuters
Entities and inconsistent with, any provision of this Article VI.

                                   ARTICLE VII

         To the fullest extent permitted by the Delaware General Corporation Law
as the same exists or as may hereafter be amended, no director of the
Corporation shall be personally liable to the Corporation or its stockholders
for monetary damages for breach of fiduciary duty as a director.

         The Corporation may indemnify to the fullest extent permitted by law
any person made or threatened to be made a party to an action or proceeding,
whether criminal, civil, administrative or investigative, by reason of the fact
that he, his testator or intestator is or was a director, officer or employee of
the Corporation or serves or served at any other enterprise as a director,
officer or employee at the request of the Corporation or any predecessor to the
Corporation.

         Neither any amendment nor repeal of this Article VII, nor the adoption
of any provision of this Corporation's Certificate of Incorporation inconsistent
with this Article VII, shall eliminate or reduce the effect of this Article VII,
in respect of any matter occurring, or any action or proceeding accruing or
arising or that, but for this Article VII, would accrue or arise, prior to such
amendment, repeal or adoption of an inconsistent provision.

                                  ARTICLE VIII

         Meetings of stockholders may be held within or without the State of
Delaware, as the Bylaws may provide. The books of the Corporation may be kept
(subject to any provision contained in the laws of the State of Delaware)
outside of the State of Delaware at such place or places as may be designated
from time to time by the board of directors or in the Bylaws.

                                   ARTICLE IX

         Except as provided in Article V, VI and VII above, and notwithstanding
any other Article of this Certificate of Incorporation, the affirmative vote of
the holders of a majority of the voting power of all of the then-outstanding
shares of the capital stock of the Corporation entitled to vote generally in the
election of directors, voting together as a single class, shall be required to
amend, alter, change or repeal any provision contained in this Certificate of
Incorporation, in the manner now or hereafter prescribed by the laws of the
state of Delaware, and all rights conferred upon stockholders herein are granted
subject to this reservation.

                                       6
<PAGE>   7

                                    ARTICLE X

         In accordance with Section 203(b)(1) of the DGCL relating to
application of Section 203, the Corporation shall not be governed by Section 203
of the DGCL.

                                   ARTICLE XI

         Notwithstanding any other provision of this Certificate of
Incorporation, this Certificate of Incorporation shall be construed and
interpreted in a manner consistent with the provisions of the Corporate
Agreement.

                                       7
<PAGE>   8

         IN WITNESS WHEREOF, Instinet Group Incorporated has caused this
Certificate of Incorporation to be executed by Mark Nienstedt, its Sole
Incorporator this 9th day of May, 2001.

                                Name: Mark Nienstedt
                                Title: Sole Incorporator

                                            By: /s/ Mark Nienstedt
                                                --------------------------
                                                    Mark Nienstedt

                                      8<PAGE>   1
                                                                     Exhibit 4.1

                               THE MONY GROUP INC.

                         RESTRICTED STOCK OWNERSHIP PLAN

1. PURPOSE OF THE PLAN

         The purpose of The MONY Group Inc. Restricted Stock Ownership Plan is
to promote the interests of the Company and its shareholders by motivating
superior performance of key employees through compensation incentives related to
the Common Stock, by enabling the Company to attract and retain the services of
key employees upon whose judgment, interest, and effort the successful conduct
of its operations is largely dependent, and by encouraging and providing for the
acquisition by key employees of an ownership interest in the Company which, in
the case of the Company's Officers, will further the goals of the Stock
Ownership Guidelines established by the Board.

2. DEFINITIONS

         2.1 Definitions. The following capitalized terms used in the Plan shall
have the meanings specified below:

         (a) "Award" means an award of Restricted Stock granted under the Plan.

         (b) "Award Agreement" means an agreement entered into between the
Company and a Participant setting forth the terms and conditions of an Award
granted to a Participant.

         (c) "Board" means the Board of Directors of the Company.

         (d) "Cause" shall have the meaning given to such term in any employment
agreement between the Company and the Participant in effect at the time of
termination of employment. In the event that no such agreement is in effect,
"Cause" shall mean (i) the willful failure by the Participant to perform
substantially his duties as an Employee (other than due to physical or mental
illness) after reasonable notice to the Participant of such failure, (ii) the
Participant's engaging in serious misconduct that is injurious to the Company or
any Subsidiary in any way, including, without limitation, by way of damage to
their respective reputations or standings in their respective industries, (iii)
the Participant having been convicted of, or having entered a plea of nolo
contendere to, a crime that constitutes a felony or (iv) the breach by the
Participant of any written covenant or agreement with the Company or any
Subsidiary not to disclose any information pertaining to the Company or any
Subsidiary or not to compete or interfere with the Company or any Subsidiary.

         (e) "Change in Control" shall have the meaning specified in Section 6
hereof.

         (f) "Code" means the Internal Revenue Code of 1986, as amended.
<PAGE>   2
         (g) "Committee" means the Human Resources Committee of the Board, or
such other committee or subcommittee of the Board appointed by the Board to
administer the Plan from time to time.

         (h) "Common Stock" means the common stock of the Company, par value
$0.01 per share.

         (i) "Company" means The MONY Group Inc.

         (j) "Disability" means the permanent and total disability of a
Participant within the meaning of Section 22(e)(3) of the Code (or any successor
provision thereto).

         (k) "Effective Date" means the Effective Date of the Plan, as provided
in Section 9.1 hereof.

         (l) "Employee" means any Officer or other key employee of the Company
or any Subsidiary, as determined by the Committee in its sole discretion.

         (m) "Fair Market Value" of a share of Common Stock as of a given date
means the closing sales price of the Common Stock on the New York Stock Exchange
as reflected on the composite index on the trading date immediately preceding
the date as of which Fair Market Value is to be determined. If the Common Stock
is not listed on the New York Stock Exchange as of such date, the Committee
shall determine in good faith the Fair Market Value in whatever manner it
considers appropriate.

         (n) "Officer" means an Employee of the Company with the rank of
Vice-President or higher.

         (o) "Participant" means an Employee who has received an Award of
Restricted Stock under the Plan.

         (p) "Plan" means The MONY Group Inc. Restricted Stock Ownership Plan as
set forth herein, as it may be amended from time to time.

         (q) "Restricted Stock" means an Award entitling a Participant to shares
of Common Stock that are nontransferable and subject to vesting, forfeiture or
other restrictions until the specific conditions set forth in the Award
Agreement are satisfied.

         (r) "Rule 16b-3" means Rule 16b-3 promulgated by the Securities and
Exchange Commission pursuant to the Securities and Exchange Act of 1934.

         (s) "Section 7312(w)" means Section 7312 (w) of the New York State
Insurance Laws, as amended from time to time.

         (t) "Section 162(m)" means section 162(m) of the Code and the Treasury
Regulations thereunder, as amended from time to time.
<PAGE>   3
         (u) "Section 162(m) Participant" means any Participant who, in the sole
judgment of the Committee, could be treated as a "covered employee" under
Section 162(m) at the time taxable income may be recognized by such Participant
in connection with an Award.

         (v) "Stock Ownership Guidelines" means the stock ownership guidelines
for Officers of the Company adopted by the Board, as may be amended by the Board
from time to time.

         (w) "Subsidiary" means an any corporation or partnership in which the
Company owns, directly or indirectly, 50 percent or more of the total combined
voting power of all classes of stock of such corporation or of the capital
interest or profits interest of such partnership.

3. SHARES OF COMMON STOCK SUBJECT TO THE PLAN

         3.1 Number of Shares. The aggregate number of shares of Common Stock
that may be issued pursuant to all Awards under the Plan is 1,000,000 shares.
The shares of Common Stock to be delivered under the Plan will be made
available, in whole or in part, from treasury shares, authorized but unissued
shares or from shares that are purchased by the Company in the open market. If
any share of Common Stock that is the subject of an Award is not issued or
ceases to be issuable for any reason, or is forfeited or cancelled for any
reason, such share of Common Stock will no longer be charged against the
foregoing maximum share limitation and may again be made subject to Awards under
the Plan.

         3.2 Adjustments. In the event of any stock dividend or stock split,
recapitalization (including, without limitation, the payment of an extraordinary
dividend), merger, consolidation, combination, spin-off, distribution of assets
to stockholders (other than ordinary cash dividends), exchange of shares, or
other similar corporate change, then the aggregate number and kind of shares of
Common Stock available for Awards under Section 3.1 hereof shall be adjusted by
the Committee in the manner that it deems to be equitable and appropriate, and
the Committee's determination shall be conclusive.

4. ADMINISTRATION OF THE PLAN

         4.1 Committee Members. The Plan will be administered by the Committee,
which will consist of two or more persons who, to the extent deemed necessary or
appropriate by the Board, satisfy the requirements for a "nonemployee director"
under Rule 16b-3 and the requirements for an "outside director" under Section
162(m). The Committee may exercise such powers and authority as may be necessary
or appropriate for the Committee to carry out its functions as described in the
Plan, including, without limitation, the power and authority to delegate to
appropriate officers of the Company administrative responsibility for the
operation of the Plan. No member of the Committee will be liable for any action
or determination made in good faith by the Committee with respect to the Plan or
any Award.

         4.2 Committee Authority. Subject to the express limitations of the
Plan, the Committee has authority in its discretion to determine the Employees
to whom, and the time or times at which, Awards may be granted, the number of
shares subject to each Award, the purchase price (if any) of an Award, the time
or times at which an Award will become vested or
<PAGE>   4
transferable, and the performance and other conditions of an Award. The
Committee also has discretionary authority to interpret the Plan; to make
factual determinations under the Plan; to determine the terms of the respective
Award Agreements; to make other determinations necessary or advisable for Plan
administration; and to delegate to appropriate officers of the Company
administrative responsibility for the operation of the Plan. The Committee has
authority to prescribe, amend, and rescind rules and regulations relating to the
Plan. All interpretations, determinations, and actions by the Committee will be
final, conclusive, and binding upon all parties.

5. RESTRICTED STOCK

         5.1 Grants of Restricted Stock. Awards of Restricted Stock are shares
of Common Stock that are subject to vesting requirements, forfeiture conditions
and restrictions on transfer and other incidents of ownership, as described
below. Awards of Restricted Stock may be made in whole shares only. All Awards
will be granted by the Committee and will be evidenced by an Award Agreement.

                  A. Periodic Grants. The Committee may make Awards of
         Restricted Stock to Employees at such time or times as it shall
         determine in its sole discretion. Subject to the express provisions of
         the Plan, the number of shares, vesting and forfeiture conditions,
         transfer restrictions and other terms and conditions of the Award shall
         be determined by the Committee in its sole discretion, taking into
         account the Stock Ownership Guidelines applicable to an Officer as well
         as the requirements of Section 7312(w) and Section 162(m).

                  B. Matching Grants. The Committee may make Awards of
         Restricted Stock to Employees from time to time for a number of shares
         based on the number of shares of Common Stock acquired by the
         Participant in the open market with the Participant's personal funds
         during a calendar year (or other period specified by the Committee).
         The ratio of the number of shares awarded to the number of shares
         purchased, any holding period requirements for those shares purchases,
         and any limitations on the number of shares awarded, shall be
         determined by the Committee in its sole discretion (subject to the
         terms of the Plan) prior to the beginning of the relevant period and
         communicated to eligible Officers. All other terms and conditions of an
         Award, including vesting and forfeiture conditions and transfer
         restrictions, shall be determined by the Committee in its sole
         discretion, taking into account the Stock Ownership Guidelines
         applicable to an Officer, as well as the requirements of Section
         7312(w) and Section 162(m).

         5.2 Vesting and Forfeiture. The Committee shall impose on an Award of
Restricted Stock vesting requirements and forfeiture conditions that may be
based on one or more of the following: (i) the continued employment of the
Participant with the Company or its Subsidiaries for a specified time period or
periods, (ii) the attainment of specified business or individual performance
goals or measures or (iii) such other terms as specified by the Committee. In
the case of any Award that is intended to qualify for exemption under Section
162(m), the permitted performance criteria and the other terms and conditions of
the Award shall be determined pursuant to Sections 5.3 and 5.4 hereof. The
Committee may, in its discretion, accelerate the vesting of an Award of
Restricted Stock at any time or on the basis of any
<PAGE>   5
specified event, including upon a Change in Control as provided in Section 6.1
hereof. The Committee shall also have the discretionary authority to determine
the effect on vesting or forfeiture conditions of certain circumstances of
termination of employment, including termination with or without Cause,
termination for "good reason" under an employment or severance agreement, and
termination by reason of death or disability.

         5.3 Performance Criteria. The performance criteria upon which the grant
or vesting of an Award intended to qualify for exemption under Section 162(m)
may be based shall be limited to the following business measures, which may be
applied with respect to the Company, any Subsidiary or any business unit: (i)
stock price increase, (ii) total shareholder return, (iii) return on equity,
(iv) return on capital, (v) earnings per share, (vi) EBIT (earnings before
interest and taxes) (vii) cash flow (including operating cash flow, free cash
flow, discounted cash flow return on investment, and cash flow in excess of
costs of capital), and (viii) any of the foregoing performance measures in
relation to performance on the same measures of comparable peer companies or
appropriate stock market or industry indices. In the case of Awards that are not
intended to qualify for exemption under Section 162(m), the Committee may
designate performance criteria from among the foregoing, or from among such
other business or individual criteria as it shall determine it its sole
discretion.

         5.4 Additional Section 162(m) Requirements. The maximum number of
shares of Common Stock that may be subject to all Awards of Restricted Stock
granted to a Section 162(m) Participant under the Plan during any one calendar
year shall be limited to the maximum number of whole shares having a Fair Market
Value as of the date of the Award that does not exceed 200 percent of the annual
base salary rate of the Section 162(m) Participant in effect at the end of the
preceding fiscal year. In the case of an Award that is intended to comply with
the requirements for exemption under Section 162(m), the Committee shall make
all determinations necessary to establish the Award within 90 days of the
beginning of the period over which performance is to be measured (or such other
time period required under Section 162(m)), including, without limitation, the
designation of the Section 162(m) Participants to whom Awards are made, the
number of shares subject to the Award and the number of shares that are earned
under the Award upon achieving the applicable performance goals. As and to the
extent required by Section 162(m), the terms of an Award granted to a Section
162(m) Participant must state, in terms of an objective formula or standard, the
method of computing the amount of compensation payable to the Section 162(m)
Participant, and must preclude discretion to increase the amount of compensation
payable that would otherwise be due under the terms of the Award.

         5.5 Transfer Restrictions. Shares of Restricted Stock may not be
transferred, assigned or subject to any encumbrance, pledge or charge until all
applicable restrictions on the Award are removed or expire, including without
limitation any vesting and forfeiture restrictions. The Committee may require
the Participant to enter into an escrow agreement providing that the
certificates representing Restricted Stock granted or sold pursuant to the Plan
will remain in the physical custody of an escrow holder until all restrictions
are removed or expire. Failure to satisfy any applicable restrictions shall
result in the subject shares of Restricted Stock being forfeited to the Company.
The Committee may require that certificates representing Restricted Stock
granted under the Plan bear a legend making appropriate reference to the
restrictions imposed. At the time all restrictions imposed on an Award of
Restricted Stock lapse in
<PAGE>   6
accordance with the Plan, a stock certificate for the appropriate number of
shares of Common Stock, free of the restrictions and restrictive stock legend
(other than as required under the Securities Act of 1933 or otherwise), shall be
delivered to the Participant or his beneficiary or estate, as the case may be.

         5.6 Rights as Shareholder. Subject to the restrictions provided under
this Section 5 and the applicable Award Agreements, the Participant will have
all rights of a shareholder with respect to shares of Restricted Stock granted,
including the right to vote the shares and receive all dividends and other
distributions paid or made with respect thereto, unless the Committee determines
otherwise at the time the Restricted Stock is granted, as set forth in the Award
Agreement. Notwithstanding the foregoing, no Employee shall receive, under the
Plan, beneficial ownership, as such term is defined in Section 7312(w)(2) of the
New York Insurance Law, of any securities of the Company before December 24,
2003; to this end, where necessary to carry out the prohibition set forth in
this sentence, the Award Agreement shall provide that the Participant shall not
be entitled to exercise any voting rights or other consensual rights, or to
receive any dividend payments with respect to the Restricted Stock, before
December 24, 2003.

6. CHANGE IN CONTROL

         6.1 Effect of Change in Control. The Committee may provide for the
effect of a Change in Control on an Award in an Award Agreement. Such provisions
may include any one or more of the following: (i) the acceleration of vesting or
lapsing of forfeiture or transfer restrictions of an Award, (ii) the waiver or
modification of performance or other conditions related to the rights under an
Award; (iii) provision for the cash settlement of an Award for an equivalent
cash value, or (iv) such other modification or adjustment to an Award as the
Committee deems appropriate to maintain and protect the rights and interests of
Participants upon or following a Change in Control. Notwithstanding the
foregoing, in the event that a Change in Control shall occur prior to December
24, 2003, no shares of Restricted Stock held by an Officer shall, to the extent
prohibited by Section 7312(w), become transferable or otherwise permit
"beneficial ownership" (within the meaning of Section 7312(w)) by the
Participant prior to such date, and the rights of the Officer with respect to
the Award shall be as provided in the applicable Award Agreement or any
employment or severance agreement between the Officer and the Company.

         6.2 Definition of Change in Control.

         For purposes of this Agreement, a Change in Control shall be deemed to
have occurred upon:

an acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of shares of outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Voting Securities") which, when combined with any
other securities owned beneficially by the acquirer, would result in such
acquirer beneficially owning twenty percent (20%) or more of either (A) the then
outstanding shares of common stock of the Company or (B) the combined voting
power of the then Outstanding Voting Securities;
<PAGE>   7
excluding, however, the following: (1) any acquisition directly from the
Company, other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly
from the Company, (2) any acquisition by the Company and (3) any acquisition by
an employee benefit plan (or related trust) sponsored or maintained by the
Company or any Subsidiary;

at any time following the date hereof, individuals who as of the date hereof
constitute the Board (and any new directors whose election by the Board or
nomination for election by the Company's shareholders was approved by a vote of
at least two-thirds (2/3) of the directors then still in office who either were
directors as of the date hereof or whose election or nomination for election was
so approved) cease for any reason (except for death, disability or voluntary
retirement) to constitute a majority thereof;

the consummation of a transaction approved by the shareholders of the Company
that is a merger, consolidation, reorganization or similar corporate
transaction, whether or not the Company is the surviving corporation in such
transaction, other than a merger, consolidation, or reorganization that results
in the Outstanding Voting Securities immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least eighty percent (80%) of the
combined voting power of the voting securities of the Company (or such surviving
entity) outstanding immediately after such merger, consolidation, reorganization
or transaction;

the consummation of a transaction approved by the shareholders of the Company
that is (A) the sale or other disposition of all or substantially all of the
assets (by way of reinsurance or otherwise) of the Company or (B) a complete
liquidation or dissolution of the Company; or

adoption by the Board of a resolution to the effect that any Person has taken
actions which, if consummated, would result in such Person acquiring effective
control of the business and affairs of the Company, subject to the consummation
of the transactions contemplated by such actions.

7. AWARD AGREEMENTS

         7.1 Form of Agreement. Each Award of Restricted Stock under the Plan
shall be evidenced by an Award Agreement in a form approved by the Committee
setting forth the number of shares of Common Stock subject to the Award and the
terms of all vesting, forfeiture and transfer restrictions. The Award Agreement
shall also set forth other terms and conditions applicable to the Award as
determined by the Committee consistent with the limitations of the Plan.

         7.2 Contract Rights; Amendment. Any obligation of the Company to any
Participant with respect to an Award shall be based solely upon contractual
obligations created by an Award Agreement. No Award shall be enforceable until
the Award Agreement has been signed on behalf of the Company by its authorized
representative and signed by the Participant and returned to the Company. By
executing the Award Agreement, a Participant shall be deemed to have accepted
and consented to the terms of this Plan and any action taken in good faith under
this Plan by and within the discretion of the Committee, the Board or their
delegates. Award Agreements covering outstanding Awards may be amended or
modified by the
<PAGE>   8
Committee in any manner that may be permitted for the grant of Awards under the
Plan, subject to the consent of the Participant to the extent provided in the
Award Agreement.

8. GENERAL PROVISIONS

         8.1 No Assignment or Transfer; Beneficiaries. Awards under the Plan
shall not be assignable or transferable, except by will or by the laws of
descent and distribution, unless otherwise allowed by the Committee.
Notwithstanding the foregoing, the Committee may provide in the terms of an
Award Agreement that the Participant shall have the right to designate a
beneficiary or beneficiaries who shall be entitled to any rights, payments or
other specified under an Award following the Participant's death.

         8.2 No Right of Employment. Nothing in the Plan, in the grant of any
Award or in any Award Agreement shall confer upon any Participant the right to
continue in the capacity in which he is employed by the Company or any
Subsidiary.

         8.3 Securities Laws. No shares of Common Stock will be issued or
transferred pursuant to an Award unless and until all then applicable
requirements imposed by federal and state securities and other laws, rules and
regulations and by any regulatory agencies having jurisdiction, and by any stock
exchanges upon which the Common Stock may be listed, have been fully met. As a
condition precedent to the issuance of shares pursuant to the grant of an Award,
the Company may require the Participant to take any reasonable action to meet
such requirements. The Committee may impose such conditions on any shares of
Common Stock issuable under the Plan as it may deem advisable, including,
without limitation, restrictions under the Securities Act of 1933, as amended,
under the requirements of any stock exchange upon which such shares of the same
class are then listed, and under any blue sky or other securities laws
applicable to such shares.

         8.4 Tax Consequences. The Participant shall be responsible for payment
of any federal, state and local taxes or similar charges required by law with
respect to an Award, including all taxes required to be withheld and paid by the
Participant at the time that taxable income is recognized in respect of the
Award. For purposes hereof, unless otherwise provided in an Award Agreement, a
Participant who is subject to Rule 16b-3 at the time taxable income is
recognized in respect of an Award may satisfy the tax withholding liability or
other expected tax liability by returning to the Company the number of shares of
Common Stock necessary to satisfy such tax liability, valued based on the Fair
Market value of the shares as of the date the shares are returned, subject to a
maximum of 50 percent of the number of shares under the Award then being
recognized as taxable income. If a Participant makes an election pursuant to
Section 83(b) of the Code with respect to an Award of Restricted Stock, the
Participant shall be required to promptly file a copy of such election with the
Company.

         8.5 Plan Binding on Successors. The Plan shall be binding upon the
Company, its successors and assigns, and the Participant, his heirs,
administrators, estate, permitted transferees and beneficiaries.

         8.6 Construction and Interpretation. Whenever used herein, nouns in the
singular shall include the plural, and the masculine pronoun shall include the
feminine gender. Headings
<PAGE>   9
of Articles and Sections hereof are inserted for convenience and reference and
constitute no part of the Plan.

         8.7 Severability. If any provision of the Plan or any Award Agreement
shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and
enforceable in accordance with their terms, and all provisions shall remain
enforceable in any other jurisdiction.

         8.8 Governing Law. The validity and construction of this Plan and of
the Award Agreements shall be governed by the laws of the State of Delaware.

9. EFFECTIVE DATE, AMENDMENT AND TERMINATION

         9.1 Effective Date. The Effective Date of the Plan shall be the date of
approval of the Plan by the shareholders of the Company at its 2001 annual
meeting of shareholders. If the Plan is not so approved, the Plan shall not
become effective.

         9.2 Amendment and Termination. The Board may at any time and from time
to time and in any respect, amend or modify or terminate the Plan. No amendment,
modification or termination of the Plan shall in any manner adverse to a
Participant affect any Award theretofore granted without the consent of the
Participant or the permitted transferee of the Award. The Board may seek the
approval of any amendment or modification by the Company shareholders to the
extent it deems necessary or advisable in its sole discretion for purposes of
compliance with Section 162(m), the listing requirements of the New York Stock
Exchange or for any other purpose.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]