Document:

EX-10.1

 

Exhibit 10.1

ALLEGHANY CORPORATION

RETIREMENT COLA PLAN

(January 1, 1992)

 

 

Article I

DEFINITIONS

     1.01 “Beneficiary” means the person or persons, if any, who will receive a survivor annuity
under the Pension Plan following the Participant’s death.

     1.02 “Company” means Alleghany Corporation or any predecessor thereof.

     1.03 “CPIU” means the U.S. City Average All Items Consumer Price Index for all Urban Consumers,
published by the U.S. Department of Labor, Bureau of Labor Statistics, or any successor index
designated by the Department of Labor in 29 C.F.R. § 2510.3-2(g)(3)(vi).

     1.04 “Effective Date” means January 1, 1992.

     1.05 “ERISA” means the Employee Retirement Income Security Act of 1974 and regulations thereunder,
as from time to time amended and in effect.

     1.06 “Maximum Supplemental Payment” means the largest Supplemental Payment which may be paid to a
Participant under the Plan in respect of a particular quarter, as determined under Article III.

     1.07 “Participant” means any former employee of the Company who is currently receiving a
retirement benefit under the Pension Plan and who has been selected for

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participation in this Plan by the Plan Administrator, as described in Article II.

     1.08 “PBA” means the pension benefit amount under the Pension Plan used to determine the Maximum
Supplemental Payment under Article III.

     1.09 “Pension Plan” means the Retirement Plan of Alleghany Corporation in effect on December 31,
1988, any plan designated therein as a “Prior Plan,” the Supplemental Pension Benefit Plan, the
Alleghany Corporation Retirement Plan and the Alleghany Corporation Supplemental Retirement Plan.

     1.10 “Plan” means this Alleghany Corporation Retirement COLA Plan, as from time to time amended
and in effect.

     1.11 “Plan Administrator” means the person serving from time to time as the Chief Executive
Officer of the Company, or if no person is so serving at the time of reference, then the Company.

     1.12 “Supplemental Payment” means additional retirement income paid to a Participant or a
Beneficiary under Article II.

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Article II

PARTICIPATION; SUPPLEMENTAL PAYMENTS

     No individual, whether or not receiving a retirement benefit under the Pension Plan, shall
have any right to participate in this Plan. The former employees who shall participate in this
Plan shall be determined by the Plan Administrator in his sole discretion.

     If the Plan Administrator determines that a former employee shall participate in the Plan, the Plan
Administrator in his sole discretion, shall also determine the amount of Supplemental Payments to
be made under the Plan to the Participant on or after the Effective Date. The Plan Administrator
may also determine, in his sole discretion, to make Supplemental Payments to a Beneficiary of a
Participant. Payments under this Plan shall be made quarterly, or over any other periods, at the
sole discretion of the Plan Administrator.

     The Plan Administrator, in his sole discretion, may terminate the participation in this Plan of any
Participant or Beneficiary of any Participant or reduce or terminate the Supplemental Payments to
any Participant or Beneficiary of any Participant.

     The Plan Administrator shall cause the names of any selected Participants and Beneficiaries, along
with the

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amounts of Supplemental Payments to be made to them from time to time, to be set forth on
Appendix A annexed hereto. Neither this Plan nor Appendix A hereto shall vest any enforceable right
in any Participant or Beneficiary.

ARTICLE III

LIMITS ON SUPPLEMENTAL PAYMENTS

     3.01 Maximum Supplemental Payment. In no event shall the Supplemental Payment to
any Participant in respect of any calendar quarter exceed the Participant’s Maximum Supplemental
Payment. A Participant’s Maximum Supplemental Payment in respect of any calendar quarter shall be
the sum of:

     (a) the product of three (3) times the percentage change in the CPIU times the “PBA” (as
hereinafter defined), in accordance with the following formula:

	 	 	 	 	 	 	 
	 

	Maximum Supplemental Payment =
	 	a-b
	 	x PBA x 3,
	 

	 	 	 	b	 	 

where “a” is the CPIU for the month preceding the month in which the payment is to be made and “b”
is the CPIU for the first full month the Participant was in pay status under the Pension Plan plus

     (b) the “Catch-up Payment” (as hereinafter defined).

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     A Participant’s “PBA” shall be determined as follows: (i) if the Participant elected an
annuity form of payment under the Pension Plan, the PBA shall be the amount of the pension benefit
payable for the first full month that he or she was in pay status, (ii) if the Participant elected
a single sum payment, the PBA shall be the amount that would have been payable monthly under the
Pension Plan on the date of that distribution in the form of a single life annuity, or in the case
of a married Participant, a joint and survivor annuity, and (iii) if the Participant elected to
receive a series of distributions other than a monthly annuity, the PBA shall be determined for
each such distribution in the manner set forth in clause (ii) hereof.

     The “Catch-up Payment” shall be (a) the sum of all of the monthly amounts which would have been
paid to the Participant hereunder if his Supplemental Payments for each month, commencing with the
month in which his or her benefit under the Pension Plan was in pay status, equalled the Maximum
Supplemental Payments, less (b) the sum of any Company payments (whether or not made pursuant to
this Plan) to supplement his or her retirement income for cost of living increases.

     3.02 Payments to Beneficiaries. If the Plan Administrator elects to make Supplemental
Payments to any

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Participant’s Beneficiary, the payments to such Beneficiary shall be subject to the limits of
Section 3.01, based on the “Beneficiary’s PBA.” The “Beneficiary’s PBA” shall mean (a) the amount
of pension benefit payable monthly in the form of a survivor annuity to the Beneficiary for the
first full month that he or she begins to receive that annuity, reduced by (b) any increases
incorporated as part of the survivor annuity under the Pension Plan since the Participant entered
pay status, or since the Participant’s date of death, if earlier.

     3.03 DOL Regulation Overrides. The provisions of this Article III are intended solely to
reflect the regulatory requirements promulgated by the Department of Labor under section 3(2) of
ERISA, which are codified at 29 C.F.R. § 2510.3-2(g). To the extent that the terms of such
regulation shall be amended or shall otherwise conflict with this Article III, the terms of that
regulation shall govern and be incorporated herein by reference.

Article IV

SOURCE OF PLAN PAYMENTS

     All Supplemental Payments shall be made solely from the general assets of the Company. All
Supplemental Payments are wholly discretionary with the Company, and the Company shall have no
obligation to fund or pay any Plan benefit.

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Benefits under this Plan are not subject to “vesting”; no Participant or Beneficiary shall
have any right to receive, or any enforceable claim for, any Supplemental Payment under this Plan.

Article V

PLAN ADMINISTRATION

     5.01 Named Fiduciary. The named fiduciary of the Plan (within the meaning of
Section 402(a)(2) of ERISA) is the Plan Administrator. The Plan Administrator shall have sole
fiduciary responsibility with respect to the administration of the Plan.

     5.02 Administrative Powers. The Plan
Administrator shall have the power to take all action and to make all decisions necessary or proper
in order to carry out his duties and responsibilities under the provisions of the Plan, including
without limitation, the following:

     (a) To make and enforce such rules and regulations as he shall deem necessary or proper for the
efficient administration of the Plan;

     (b) To interpret the Plan and its regulations; and

     (c) To delegate to one or more persons the authority to act as a fiduciary under the Plan, with
such duties, powers and authority relative to the administration of the Plan as the Plan
Administrator shall determine, and in

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so doing to limit his own duties and responsibilities to the extent specified in such
appointment.

     The Plan Administrator shall have ultimate authority to construe Plan terms and to determine the
eligibility for Plan benefits.

     5.03 Plan Administrator Records. The Plan Administrator shall keep or cause to be kept
all data, records and documents relating to the administration of the Plan. The Plan’s fiscal
records shall be maintained on a calendar year basis, and the calendar year shall be the “Plan
Year.”

     5.04 Employment of Experts. The Plan
Administrator may employ or engage such independent actuary, accountant, counsel, other experts or
persons as the Plan Administrator may deem necessary in connection with discharging his duties
under the Plan, and reasonable expenses therefor shall be paid by the Company.

     5.05 Plan Administrator Compensation. The Plan Administrator shall not be compensated by
the Company for his services as such.

     5.06 Indemnification of Plan Administrator. The Company shall indemnify and hold harmless
to the fullest extent permitted by law the Plan Administrator, and any employee of the Company to
whom fiduciary responsibilities,

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damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims
approved by the Company) incurred by or asserted against him by reason of his occupying or having
occupied fiduciary positions in connection with the Plan, except that no indemnification shall be
provided if that individual personally profited from any act or transaction in respect of which
indemnification is sought.

     5.07 Claims Review Authority and Procedures. The Plan Administrator shall determine
benefits under the Plan and, within 90 days after receipt of a claim for benefits, provide any
claimant whose claim is wholly or partially denied written notice of such decision setting forth:
(i) the specific reason or reasons for the denial; (ii) specific references to the pertinent Plan
provisions, if any, on which the denial is based; (iii) a description of any additional material or
information which may be necessary for the claimant to perfect the claim and an explanation of why
such material or information is necessary; and (iv) an explanation of the following claims review
procedure:

     Any claimant whose claim has been denied in whole or in part, or his duly authorized
representative, may appeal such denial by making within 60 days a written application to

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the Plan Administrator. In connection with any such appeal the claimant or his duly authorized
representative may review pertinent documents and submit issues and comments in writing. The Plan
Administrator shall review and make the final decision with respect to any claim so appealed. The
decision on review shall be made no later than 60 days after the Plan Administrator’s receipt of a
request for review. Such decision shall be in writing and shall include specific reference to the
pertinent plan provisions on which the decision is based.

     5.08 Binding Action. To the fullest extent
permitted by law, all actions taken and decisions made by the Plan Administrator shall be final,
conclusive and binding on all persons having any interest in the Plan or in any benefits payable
thereunder.

Article VI

AMENDMENT OR TERMINATION

     The Plan is entirely voluntary on the part of the Company and the Plan’s continuance is not
a contractual obligation of the Company. The Plan Administrator may at any time terminate the
Plan, without notice and for any reason,

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in whole or in part. The Plan Administrator may, at any time, or from time to time, whether upon
termination or otherwise, modify or amend the Plan in any manner, whether prospectively or
retroactively, without notice and for any reason, in whole or in part; provided, however, that
without the approval of the Board of Directors of the Company, the Plan Administrator may not
modify or amend Section 1.09, Article III or this Article VI. Any amendment of the Plan shall be
effectuated and evidenced by a certificate setting forth such amendment and executed by the Plan
Administrator, and any approval of such amendment by the Board of Directors of the Company shall be
evidenced by the adoption of a resolution of the Board of Directors of the Company.

Article VII

LIMITATION OF ASSIGNMENT

     7.01 Spendthrift Provision. Benefits hereunder shall be fully protected against
third-party claims of all sorts, direct or otherwise, and none of the benefits provided hereunder
to any person shall be assignable or transferable voluntarily, nor shall they be subject to the
claims of any creditor whatsoever, nor subject to attachment, garnishment or other legal process by
any creditor or to the jurisdiction of any bankruptcy court or any insolvency proceedings by

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operation of law, or otherwise, and no person shall have any right to alienate, anticipate, pledge,
commute, or encumber any of such benefits voluntarily or involuntarily.

     7.02 Incompetence of Participant or Beneficiary. If the Plan Administrator receives
evidence satisfactory to him that a person entitled to receive any payment under the Plan is
legally incompetent to receive such payment and to give valid release therefor, such payment may be
made to the guardian, committee, or other representative of such person duly appointed by a court
of competent jurisdiction, or, in the sole discretion of the Plan Administrator, such payment may
be forfeited. If a person or institution other than a guardian, committee, or other representative
of such person who has been duly appointed by a court of competent jurisdiction is then maintaining
or has custody of such incompetent person, the payment may be made to such other person or
institution and the release of such other person or institution shall be valid and complete
discharge for the payment.

Article VIII

MISCELLANEOUS

     8.01 Governing Laws. Except as otherwise provided by Section 514 of ERISA, this
Plan and all provisions thereof

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shall be construed and administered according to the laws of the State of New York.

     8.02 Necessary Parties. The Company, the Plan and the Plan Administrator, as the case may
be, shall be the only necessary parties in any litigation involving the Plan, unless otherwise
required by law.

     8.03 Titles and Headings not to Control. The titles to the Articles and the headings of
Sections in the Plan are placed herein for convenience of reference only, and in case of any
conflict, the text of this instrument, rather that such titles or headings, shall control.

     8.04 Gender and Person. The masculine pronoun shall include the feminine, the feminine
pronoun shall include the masculine and the singular shall include the plural wherever the context
so requires.

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ALLEGHANY CORPORATION RETIREMENT COLA PLAN

APPENDIX A

	 	 	 
	 

	 	Quarterly
	Name of

	 	Supplemental
	Eligible Participant

	 	Benefit Payable
	 

	 	 

-15-EX-10.2

 

Exhibit
10.2

ALLEGHANY CORPORATION

AMENDED AND RESTATED

DIRECTORS’ STOCK OPTION PLAN

     1. Purpose. The purpose of the Alleghany Corporation Amended and Restated Directors’ Stock
Option Plan (the “Plan”) is to advance the interests of Alleghany Corporation (the “Company”) and
its stockholders by encouraging increased stock ownership by members of the Board of Directors (the
“Board”) of the Company who are not employees of the Company or any of its subsidiaries, in order
to promote long-term stockholder value through continuing ownership of the Company’s 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 authority (within the
limitations described herein) to prescribe the form of the agreement embodying awards of
nonqualified stock options made under the Plan (“Options”). The Board shall have the power 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 act only by a majority of its members in office, except that the members
thereof may authorize any one or more of their number or the Secretary or any other officer of the
Company to execute and deliver documents on behalf of the Company. No member of the Board shall be
liable for anything done or omitted to be done by him or by any other member of the Board in
connection with the Plan, except for his own willful misconduct or as expressly provided by
statute.

     3. Participation. Each member of the Board of the Company who is not an employee of the
Company or any of its subsidiaries (a “Non-Employee Director”) shall be eligible to receive an
Option in accordance with Paragraph 5 below. As used herein, the term “subsidiary” means any
corporation at least 40 percent of whose outstanding voting stock is owned, directly or indirectly,
by the Company.

     4. Awards under the Plan. (a) Types of Awards. Awards under the Plan shall consist only of
Options, which are rights to purchase shares of common stock, par value $1.00 per share, of the
Company (the “Common Stock”). Such Options are subject to the terms, conditions and restrictions
specified in Paragraph 5 below.

     (b) Maximum Number of Shares That May Be Issued. There may be issued under the Plan pursuant
to the exercise of Options granted after April 20, 1993 an aggregate of not more than 75,000 shares
of Common Stock, subject to adjustment as provided in Paragraph 6 below.

     (c) Rights With Respect to Shares. A Non-Employee Director to whom an Option is granted (and
any person succeeding to such a Non-Employee Director’s rights pursuant to the Plan) shall have no
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 Paragraph 6 below, 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.

     5. Nonqualified Stock Options. Each Option granted under the Plan shall be evidenced by an
agreement in such form as the Board shall prescribe from time to time in accordance with the Plan
and shall comply with the following terms and conditions:

     (a) The Option exercise price shall be the fair market value of the shares of Common Stock
subject to such Option on the date the Option is granted, which shall be the average of the high
and the low sales prices of a share of Common Stock on the date of grant as reported on the New
York Stock Exchange Composite Transactions Tape or, if the New York Stock Exchange is closed on
that date, on the last preceding date on which the New York Stock Exchange was open for trading.

     (b) The term of any Option shall be determined by the Board of Directors, but in no event
shall any Option be exercisable more than ten years after the date on which it was granted.

     (c) As of the first business day after the conclusion of each annual meeting of stockholders
of the Company, each Non-Employee Director shall automatically receive an Option for 1,000 shares
of Common Stock; provided, however, that any Options granted under the Plan prior to any required
approval by the stockholders of the Company shall be conditioned upon such approval.

     (d) Prior to stockholder approval of the Plan, the Option shall not be transferable by the
optionee. Thereafter, the Option shall be transferable only by will or the laws of descent and
distribution, and shall be exercisable during the optionee’s lifetime only by him.

     (e) The Option shall not be exercisable:

     (i) before the expiration of one year from the date it is granted or after the
expiration of ten years from the date it is granted and, subject to prior stockholder
approval in accordance with Paragraph 10 below, may be exercised during such period 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 it is granted; provided that an Option shall automatically become immediately
exercisable in full when the Non-Employee Director ceases to be a Non-Employee Director for
any reason other than death;

     (ii) unless payment in full is made for the shares of Common Stock being acquired
thereunder at the time of exercise; such payment shall be made

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     (A) in United States dollars by cash or check, or

     (B) in lieu thereof, by tendering to the Company shares of Common Stock owned
by the person exercising the Option and having a fair market value equal to the
cash exercise price applicable to such Option, such fair market value to be the
average of the high and the low sales prices of a share of Common Stock on the date
of exercise as reported on the New York Stock Exchange Composite Transactions Tape,
or, if the New York Stock Exchange is closed on that date, on the last preceding
date on which the New York Stock Exchange was open for trading, or

     (C) by a combination of United States dollars and shares of Common Stock as
aforesaid; and

     (iii) unless the person exercising the Option has been, at all times during the period
beginning with the date of grant of the Option and ending on the date of such exercise, a
Non-Employee Director of the Company, except that

     (A) if such person shall cease to be such a Non-Employee Director for reasons
other than death, while holding an Option that has not expired and has not been
fully exercised, such person, at any time within one year of the date he ceased to
be such a Non-Employee Director (but in no event after the Option has expired under
the provisions of subparagraph 5(e)(i) above), 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 such a Non-Employee Director; or

     (B) if any person 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 in no event after the Option has expired under the provisions of
subparagraph 5(e)(i) above), exercise the Option with respect to any shares of
Common Stock as to which the decedent could have exercised the Option at the time
of his death.

     6. Dilution and other Adjustments. In the event of any change in the outstanding shares of
Common Stock of the Company by reason of any stock split, stock dividend, recapitalization, merger,
consolidation, reorganization, combination or exchange of shares or other similar event (including
without limitation the stock dividend to be paid by the Company on April 26, 1993), the number or
kind of shares that may be
issued under the Plan pursuant to subparagraphs 4(a) and 4(b) above 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

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(including without limitation the
stock dividend to be paid by the Company on April 26, 1993) shall be automatically adjusted so that
the proportionate interest of the participant 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.

7. Miscellaneous Provisions.

     (a) 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 under the Plan. Neither the Plan nor any
action taken hereunder shall be construed as giving any Non-Employee Director any right to be
retained in the service of the Company.

     (b) A participant’s rights and interest under the Plan may not be assigned or transferred in
whole or in part either directly or by operation of law or otherwise (except, in the event of a
participant’s death, by will or the laws of descent and distribution), including, but not by way of
limitation, execution, levy, garnishment, attachment, pledge, bankruptcy or in any other manner,
and no such right or interest of any participant in the Plan shall be subject to any obligation or
liability of such participant.

     (c) 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.

     (d) It shall be a condition to the obligation of the Company to issue shares of Common Stock
upon exercise of an Option, that the participant (or any beneficiary or person entitled to act
under subparagraphs 5(e)(iii)(B) above) pay to the Company, upon its demand, such amount as may be
requested by the Company for the purpose of satisfying any liability to withhold federal, state,
local or foreign income or other taxes. If the amount requested is not paid, the Company may refuse
to issue shares of Common Stock.

     (e) The expenses of the Plan shall be borne by the Company.

     (f) The Plan shall be unfunded. The Company shall not be required to establish any special or
separate fund or to make any other segregation of assets to assure the issuance of shares upon
exercise of any Option under the Plan and issuance of shares upon exercise of Options shall be
subordinate to the claims of the Company’s general creditors.

     (g) By accepting any Option or other benefit under the Plan, each participant and each person
claiming under or through him shall be conclusively deemed to have indicated his acceptance and
ratification of, and consent to, the Plan, the terms and

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conditions of any agreement embodying awards of Options and any action taken under the
Plan by the Company or the Board.

     (h) The masculine pronoun means the feminine and the singular means the plural wherever
appropriate.

     (i) The appropriate officers of the Company shall cause to be filed any reports, returns or
other information regarding Options hereunder or any shares of Common Stock issued pursuant hereto
as may be required by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, or
any other applicable statute, rule or regulation.

     8. Amendment or Discontinuance. The Plan may be amended at any time and from time to time by
the Board as the Board shall deem advisable; provided, however, that (a) except as provided in
Paragraph 6 above, the Board may not, without further approval by the stockholders of the Company
in accordance with Paragraph 10 below, increase the maximum number of shares of Common Stock as to
which Options may be granted under the Plan, reduce the minimum Option exercise price described in
subparagraph 5(a) above, extend the period during which Options may be granted or exercised under
the Plan or change the class of persons eligible to receive Options under the Plan; and (b)
Paragraph 3 and subparagraphs 5(a) and 5(d) shall not be amended more than once every six months,
other than to comport with changes in the Internal Revenue Code of 1986, as amended, the Employee
Retirement Income Security Act of 1974, as amended, or the rules under either of such laws. No
amendment of the Plan shall materially and adversely affect any right of any participant with
respect to any Option theretofore granted without such participant’s written consent.

     9. Termination. The Plan shall terminate upon the earlier of the following dates or events to
occur:

     (a) upon the adoption of a resolution of the Board terminating the Plan; or

     (b) December 31, 1999.

No termination of the Plan shall materially and adversely affect any of the rights or obligations
of any person, without his consent, under any Option theretofore granted under the Plan.

     10. Stockholder Approval. The Plan shall be submitted to the stockholders of the Company for
their approval. Except to the extent otherwise required by the Company’s Restated Certificate of
Incorporation or the Company’s By-Laws, the stockholders shall be deemed to have approved the Plan
if and when it is approved at a meeting of the 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.

Amended and Restated

April 20, 1993

5

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