exv10w32



 






Exhibit 10.32




EMPLOYMENT AGREEMENT




     This AGREEMENT (“Agreement”) is effective on the 1st day of January 2003, as
amended effective January 1, 2005, by and between NIKOLAS ANTONOPOULOS, an individual resident of
the State of New Jersey (“Executive”), and FAIRFAX FINANCIAL HOLDINGS LIMITED, a corporation
organized under the laws of the Province of Ontario, Canada, (together with its successors and
assigns, “Fairfax”) and Fairfax’s indirect, wholly-owned subsidiaries, CRUM & FORSTER HOLDING INC.,
a corporation organized under the laws of the State of Delaware, (together with its successors and
assigns, “C&F”) and CRUM & FORSTER HOLDINGS CORP., a corporation organized under the laws of the
State of Delaware (together with its successors and assigns, “Holdings”).



W I T N E S S E T H:




     WHEREAS, Fairfax, C&F and Holdings are desirous of employing Executive in accordance with the
terms and conditions set forth in this Agreement, and Executive is desirous of being so employed;



     NOW, THEREFORE, in consideration of the premises and the agreements contained in this
Agreement, Fairfax, C&F and Holdings and Executive (together the “Parties” and individually a
“Party”), intending to be legally bound, hereby agree as follows:



Section 1. Scope of Employment




     1.1 Title. Executive shall be President and Chief Executive Officer of Holdings,
Chairman of the Board, President and Chief Executive Officer of C&F and Chairman of the Board and
Chief Executive Officer of their wholly owned insurance subsidiaries (collectively, the
“Companies”), excluding Seneca Insurance Company, Inc. and its subsidiaries.



     1.2 Duties. As President and Chief Executive Officer of Holdings, Chairman of the
Board, President and Chief Executive Officer of C&F and Chairman of the Board and Chief Executive
Officer of the Companies, Executive shall be responsible both for managing the operations of
Holdings, C&F and the Companies, reporting to the Chairman of the Board of Holdings, and for
performing any additional services that are delegated to Executive by Holdings’ Chairman of the
Board and Holdings’ Board of Directors (the “Board”). Executive shall devote substantially all of
Executive’s business time and efforts to the performance of the responsibilities of the offices of
President and Chief Executive Officer of Holdings, Chairman of the Board, President and Chief
Executive Officer of C&F and Chairman of the Board and Chief Executive Officer of the Companies
diligently and to the best of Executive’s abilities and shall not, without the prior written
consent of Holdings’ Chairman of the Board and Holdings’ Board, accept other employment or render
or perform other duties, nor shall Executive have any direct or indirect ownership interest in any
other business which is in competition with the business of Fairfax, C&F, or Holdings and their
affiliated companies, other than up to five percent (5%) of the outstanding securities of a
corporation (determined by vote or value) or limited partnership interests constituting up to five
percent (5%) of the value of any such partnership. The foregoing
shall not preclude Executive from engaging in charitable and personal investment activities, provided
that, in the judgment of Holdings’ Board, such activities do not materially interfere with
Executive’s performance.



 









 





     1.3 Place of Performance. Executive shall be based in Morristown, New Jersey, at the
principal offices of C&F or such other place as may be agreed to in writing by the Parties.



Section 2. Term




     2.1 Term. C&F hereby employs the Executive on a rolling, two-year basis, with the
period of the Executive’s employment under this Agreement commencing on January 1, 2003 and
continuing for a minimum period of two years thereafter, with a provisional ending date of
January 1, 2005 (“Term”), such ending date subject to automatic extension as provided below.
The period of the Executive’s employment hereunder within the Term and any automatically
extended terms is herein referred to as the “Employment Period”.



     2.2 Automatic Extension. On January 1, 2003, and on each day thereafter, the
Employment Period shall be extended automatically by one day unless at any time after January 1,
2003, C&F delivers to the Executive, or the Executive delivers to C&F, written notice that the
Employment Period will not thereinafter be further extended and will therefore end at the
expiration of the then existing Employment Period, including any previous extensions. Following
such notice, the Employment Period will not be further extended except by mutual agreement of C&F
and the Executive. Thus, after January 1, 2003, until written notice is received by either party,
the unexpired Employment Period at any point in time shall be two years. The Employment Period
shall continue until the expiration of all automatic extensions effected as described herein,
unless and until it ceases or is terminated sooner as provided for in Section 5.



Section 3. Cash Compensation; Expenses




     3.1 Base Salary. Executive shall be paid a base salary (the “Base Salary”) during the
Employment Period at an annual rate of seven hundred thousand United States dollars (US$700,000).
The Base Salary shall be (a) payable in equal installments on the schedule that C&F or the
Companies may implement from time to time for general payroll purposes (but not less frequently
than monthly), and (b) subject to any withholdings and deductions required by applicable law or
requested by Executive. The then current Base Salary shall be reviewed in good faith by the
Chairman of the Board of Fairfax within a ninety (90) day period following January 1st
of each year that this Agreement is in effect and any recommendation for a salary increase shall be
presented to the Board of Directors of Fairfax or any designated committee thereof as deemed
appropriate after such review; provided, however, that in no event shall the Base Salary of the
Executive be reduced below seven hundred thousand United States dollars (US$700,000) annually
without the Executive’s prior written consent.



     3.2 Annual Cash Bonus. At the sole discretion of Fairfax or Holdings, Executive may
be paid a cash bonus (the “Cash Bonus”). Any such Cash Bonus shall be determined by the Board of
Directors of Fairfax or of Holdings or such other person or group as is designated by the Chairman
of the Board of Fairfax. The Cash Bonus, if any, shall be paid in January following the subject
year or at such other time within sixty (60) days of January 1st as Executive and
Holdings may agree.



     3.3 Extraordinary Bonus Plan. Executive is entitled to participate in The United
States Fire Insurance Company 2003 Extraordinary Bonus Plan pursuant to the terms of such plan.



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     3.4 Reimbursement of Expenses. C&F shall pay or reimburse the Executive for all
reasonable business expenses, including first class travel and accommodation, actually incurred or
paid by the Executive during the Employment Period under this Agreement in performance of
Executive’s services hereunder in accordance with the current practices of C&F applicable to the
Executive. All reimbursements are subject to modification from time to time hereafter, provided
that such modification does not adversely affect the Executive’s payments or reimbursements
incurred prior thereto. Such payments or reimbursements shall be made upon presentation of expense
statements or vouchers or such other supporting information as C&F or the Companies may require of
its senior executives.



Section 4. Additional Executive Benefits




     4.1 Memberships. During the Employment Period, C&F or the Companies shall reimburse
Executive for all reasonable costs and expenses associated with Executive’s memberships in
appropriate business and professional clubs and organizations.



     4.2 Automobile. During the Employment Period, C&F or the Companies shall provide
Executive with the unrestricted use of a luxury automobile and shall pay for all expenses
pertaining thereto, including, but not limited to, operating expenses, taxes, insurance, and
maintenance expenses.



     4.3 Professional Consultation. From Executive’s date of employment through the end of
the Employment Period, C&F or the Companies shall reimburse Executive for expenses incurred by
Executive for reasonable personal financial and tax consultation, including, but not limited to,
fees charged by attorneys, CPA’s or financial planners.



     4.4 Property Tax Equalization. From Executive’s date of employment through the end of
the Employment Period, C&F or the Companies shall reimburse Executive, on a net of income taxes
basis, for Executive’s property tax differential between Executive’s primary residence in New York
and Executive’s primary residence in New Jersey. Executive’s property tax differential for each
year shall be the excess, if any, of (a) over (b) or the pro rata portion of such excess in respect
of the year in which the New Jersey residence is purchased and in respect of the last year of the
Employment Period if the Employment Period does not end on December 31: (a) the total annual
property tax applicable to the Executive’s primary New Jersey residence in a single family house
for the first full year following the year in which such residence was purchased, and (b) the total
annual property tax applicable to the Executive’s primary New York residence in a single family
house for the last full year prior to the year in which the New York primary residence was sold.



     4.5 Indemnification. Pursuant to applicable law, Fairfax, C&F and Holdings shall
promptly indemnify and hold harmless Executive if Executive is made a party, or is threatened to be
made a party, to any threatened, pending or completed action, suit, or proceeding, whether civil,
criminal, administrative, or investigative and whether formal or informal, including any action or
suit by or in the right of any of the affiliates of Holdings (collectively, a “Proceeding”) arising
out of, or relating to, the fact that Executive is or was a director, executive, employee,
representative or agent of any of Fairfax, C&F or Holdings any of their affiliates, against any and
all judgments, settlements, penalties, fines, liabilities, losses, costs or expenses (including,
but not limited to, court costs, disbursements, and reasonably incurred attorneys and expert
witness fees) incurred or suffered in connection with, or in anticipation of, a Proceeding, to the
extent that Executive acted in a manner Executive believed in good faith to be in or not opposed to
the interests of the Fairfax, C&F or Holdings or any of their affiliates, and, in the case of any
criminal proceeding, had no reasonable cause to believe Executive’s conduct was unlawful. Fairfax,
C&F or Holdings or any of their affiliates may not indemnify Executive in connection with any
Proceeding to the extent that the Executive is finally adjudged either (x)



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to be liable to Fairfax, C&F or Holdings or any of their affiliates or (y) to be
liable on the basis that Executive improperly received personal benefit. Indemnification in
connection with a Proceeding brought by or in the right of Fairfax, C&F or Holdings or any of their
affiliates shall be limited to costs and expenses incurred in connection with, or in anticipation
of the Proceeding (including, without limitation, court costs, disbursements, and reasonably
incurred attorneys and expert witness fees). Pursuant to applicable law, Executive shall be
entitled to an advancement of any and all costs and expenses incurred in connection with, or in
anticipation of any threatened or actual Proceeding, or in connection with seeking to enforce
Executive’s rights under this Subsection 4.5, within fifteen (15) days after Executive gives
written notice requesting such an advancement. Such notice shall include, to the extent required
by applicable law, an undertaking by Executive to repay the amount advanced if Executive is
ultimately determined not to be entitled to indemnification against such costs and expenses.
Additionally, during the Employment Period and for six (6) years thereafter, Fairfax shall cover
Executive under any directors and officers liability insurance policy that it may then have in
effect. Executive’s rights under this Subsection 4.5 shall continue even if Executive has ceased
to be a director, officer, executive, employee, representative, or agent of any of Fairfax, C&F, or
Holdings or any of their affiliates and shall inure to the benefit of Executive’s heirs, executors
and administrators.



     4.6 Tax Payments. The Companies agree to indemnify the Executive in connection with
any and all taxes which may become payable by the Executive under Section 280 (G) of the Internal
Revenue Code of 1986, as amended.



     4.7 Long Term Incentive Plan. Executive is entitled to participate in the Crum &
Forster Holdings Corp. Long Term Incentive Plan pursuant to the terms of such plan.



Section 5. Termination




     5.1 Termination Due to Death or Disability. In the event Executive’s employment with
the Companies is terminated (a) due to Executive’s death, or (b) by the Companies due to
Executive’s Disability, then, in any such case, Executive (or, in the case of termination of
employment due to death of Executive, the estate or other legal representative of Executive) shall
be entitled to the following:



(i) Salary. The total amount of Executive’s then Base Salary for a six (6) month
period shall be paid in a lump sum, without discount, subject to any withholdings and deductions
required by applicable law or requested by Executive as soon as reasonably possible following
Executive’s termination of employment date as hereinafter defined.



(ii) Benefits. In the case of the Executive’s Disability, life insurance and other
death benefits, health and medical benefits, disability benefits and other welfare benefits, no
less favorable to Executive than those provided prior to the Termination Date under the C&F
benefit plans, shall be continued for the period of such Disability but, in no event, beyond what
would be provided under the C&F or any of the Companies’ long-term disability benefit plan in
effect at the time.



(iii) Bonus. Upon termination of employment, Executive shall be paid the pro-rata
portion of the Cash Bonus provided under Subsection 3.2 that would have been paid to Executive had
the termination of Executive’s employment not occurred. Such bonus will be paid in accordance
with C&F’s or the Companies’ standard practices and timing for payment of annual bonuses.



For purposes of this Agreement, the term “Disability” shall mean “disability” as defined in the
then current United States Fire Insurance Company Long Term Disability Plan.



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     5.2 Termination Without Cause or Termination by Executive for Good Reason. In the
event Executive’s employment with Fairfax, C&F or Holdings or the Companies is terminated (a) by
Fairfax, C&F or Holdings or the Companies without Cause, or (b) by Executive for Good Reason, then,
in any such case, Executive shall be entitled to the following:



(i) Salary Equivalent. Fairfax, C&F or the Companies shall pay Executive an amount
equal to Executive’s Base Salary as of the Termination Date, for a period of thirty-six (36) months
from the Termination Date. Payments pursuant to this Subsection 5.2(i) shall be at such times and
in accordance with such procedure as apply to payments governed by Subsection 3.1.



(ii) Annual Cash Bonus. Fairfax, C&F Holdings or the Companies shall pay the
Executive each January for a period of thirty-six (36) months from the Termination Date, a cash
amount equal to Executive’s Base Salary as of the Termination Date.



(iii) Acceleration of Vesting of Restricted Stock Awards. All then unvested Fairfax
restricted stock awards shall be fully vested as of the Termination Date.



(iv) Plan Benefits. Fairfax, C&F, Holdings or the Companies shall pay or make
available to Executive all vested benefits accrued or available under any benefit plan in
accordance with and subject to the terms of such benefit plan. In addition, the vesting provisions
of the Fairfax Financial Restricted Share Plan; the Crum & Forster Holdings Corp. Long Term
Incentive Plan; and the United States Fire Insurance Company 2003 Extraordinary Bonus Plan shall be
accelerated should Executive’s employment terminate pursuant to Subsection 5.2, Termination Without
Cause or Termination by Executive for Good Reason, of Section 5, Termination, of the Agreement.



(v) Miscellaneous Health, Death and Disability Benefits. C&F, Holdings or the
Companies shall provide Executive with life insurance and other death benefits, health and medical
benefits and long term disability benefits substantially similar to those benefits provided to
Executive prior to the Termination Date under the benefit plans, for a period of thirty-six (36)
months following the Termination Date, with contribution by the Executive in a manner and
percentage similar to that prior to the Executive’s Termination Date. These benefits shall cease,
however, if and when the Executive becomes eligible to participate in similar benefit plans
provided by another employer.



(vi) Placement Services. At no cost to Executive, C&F, Holdings or the Companies
shall provide Executive, if Executive desires such assistance, with the assistance of a nationally
recognized executive placement firm for a period of twelve (12) months following the Termination
Date; provided, however, that C&F or the Companies shall not be required to continue to provide
Executive with such assistance in the event that Executive begins other full time employment during
such period.


For purposes of this Agreement, the following terms shall have the following meanings:



“Cause” shall mean:





	 	   	(a) the willful and continued failure of Executive, after written notice to
Executive, to substantially perform Executive’s duties on behalf of Fairfax,
C&F or Holdings or their affiliates, other than any such failure resulting from
incapacity due to physical or mental




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	 	   	illness or death;
	 
	 	   	(b) the willful engagement of Executive in gross misconduct materially and
demonstrably injurious to Fairfax, C&F, Holdings or their affiliates;
	 
	 	   	(c) the Executive’s conviction in a court of law of any criminal felony offense
involving dishonesty or breach of trust under the laws of the United States or
any other jurisdiction the laws of which may apply;
	 
	 	   	(d) the Executive’s willful failure to perform specific written directives of
the Board of Directors of C&F or the Chairman and Chief Executive Officer which
directives are consistent with the scope and nature of the Executive’s existing
duties;
	 
	 	   	(e) formal directive by any insurance regulatory authority governing the
Companies’ ability to conduct business operations to remove the Executive as an
Officer of C&F, Holdings or any of their subsidiaries.



An act or failure to act on the part of Executive shall be considered “willful” if done, or failed
to be done, by Executive in the absence of good faith and without reasonable belief that such
action or omission was in the best interest of the Companies.



“Good Reason” shall mean the occurrence of any of the following events without Executive’s express
prior written consent:






	 	   	(a) the assignment to Executive by Fairfax, C&F or Holdings or the Companies of
any duties, responsibilities or status with Fairfax, C&F or Holdings or the
Companies that, when compared to Executive’s previous duties, responsibilities
and status with Fairfax, C&F or Holdings or the Companies, are degrading to
Executive or materially inconsistent with Executive’s qualifications; including
ceasing to be and have functions and responsibilities of Senior Executive Vice
President, Treasurer and Chief Financial Officer of C&F or Holdings;
	 
	 	   	(b) any diminution of Executive’s duties or responsibilities or loss of title
resulting from a corporate restructuring or a reorganization of operations
within C&F, Holdings or the Companies shall constitute “Good Reason” hereunder
if, but only if, following such restructuring or reorganization, the
responsibilities, authorities and status of the Executive, viewed in the
aggregate (and thus taking into account enhancements as well as diminishments),
are materially diminished;
	 
	 	   	(c) a relocation of Executive’s principal office beyond a thirty (30) mile
radius of Morristown, New Jersey, without Executive’s written consent;
	                                                       
	 
	 	   	(d) any material breach by Fairfax, C&F, Holdings or the Companies of a
provision of any written agreement between Fairfax, C&F or Holdings or the
Companies and Executive, including this Agreement, if not cured within twenty
(20) days of written notice of such breach delivered by Executive to Fairfax,
C&F, Holdings or the Companies;
	





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	 	   	(e) any failure by Fairfax, C&F, Holdings or the Companies to promptly obtain
an assumption of any then remaining obligations under this Agreement by any
successor or assign of Fairfax, C&F, Holdings or the Companies; or
	 
	 	   	(f) “Change in Control” means any of the following:





	 	   	(i) A transaction (or series of transactions) as a result of which Fairfax
fails to own, directly or through subsidiaries, at least 50.1 percent of
the total voting power represented by Holdings’ outstanding voting
securities; or
	 
	 	   	(ii) The sale, transfer or other disposition of all or substantially all
of the assets of Holdings to one more entities unaffiliated with Holdings.





	 	   	Notwithstanding the foregoing, an initial public offering shall not constitute a Change in
Control and a transaction the sole purpose of which is to change the state of Holdings’
incorporation shall not constitute a Change in Control.




     5.3 Termination
for Cause or by Executive Without Good Reason. Without limiting
Subsection 5.4, in the event Executive’s employment with Fairfax, C&F, Holdings or the Companies is
terminated (a) for Cause, or (b) by Executive without Good Reason, Executive shall not be entitled
to receive any compensation from Fairfax, C&F, Holdings or the Companies for periods after the
Termination Date.



     5.4 Mutual
Termination. Fairfax, C&F, Holdings or the Companies and Executive shall
have the right at any time prior to expiration of the Employment Period to terminate the employment
of Executive hereunder for any reason or for no reason upon their mutual agreement to do so, such
mutual agreement to be set forth in a writing signed by the Parties.



     5.5 Miscellaneous:



(a) On any termination of Executive’s employment with Fairfax, C&F, Holdings or the Companies,
Executive shall be entitled to:




	 	(i)  	base salary through the Termination Date;
	 
	 	(ii)  	the balance of any annual, long-term, or other
incentive award accrued as of the Termination Date (but not yet paid);
	 
	 	(iii)  	a lump-sum payment in respect of accrued but unused
paid time off at Executive’s Base Salary rate in effect as of the
Termination Date;
	 
	 	(iv)  	other or additional benefits accrued or payable as of
the Termination Date in accordance with applicable plans, programs and
arrangements of C&F or Holdings (including, without limitation, Sections 3
and 4); and




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	 	(v) 	payment or provision, reasonably promptly when due,
of all amounts and benefits
owed to Executive in connection with the termination;




     (b) in the event of any termination of Executive’s employment with Fairfax, C&F, Holdings or
the Companies, no contractual obligations to Fairfax, C&F, Holdings or the Companies shall restrict
Executive’s right to perform services for any new employer. Executive shall be under no obligation
to seek other employment or otherwise mitigate the obligations of Fairfax, C&F, Holdings or the
Companies under this Agreement; and there shall be no offset against amounts due Executive under
this Agreement on account of (i) any claim that Fairfax or C&F or the Companies may have against
Executive or (ii) any remuneration or other benefit earned or received by Executive after such
termination. Any amounts due under this Section 5 are considered to be reasonable by Fairfax, C&F,
Holdings or the Companies and are not in the nature of a penalty.



     5.6 Termination Date and Notice of Termination



     (a) Notice. Any termination of Executive’s employment with Fairfax, C&F, Holdings or
the Companies (other than termination upon the death of Executive, upon expiration of the
Employment Period, or by mutual agreement pursuant to Subsection 5.4) shall be communicated by
written Notice of Termination to the other Parties. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice that indicates the specific termination provisions in this
Agreement relied upon and sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive’s employment under the provisions so indicated.



     (b) Termination
Date. “Termination Date” shall mean (i) if Executive’s employment is
terminated by Executive’s death, the date of Executive’s death, (ii) if Executive’s employment is
terminated for Disability, thirty (30) days after Notice of Termination is given provided that
Executive shall not have returned to the performance of duties on a full-time basis during such
thirty (30) day period), (iii) if Executive’s employment is terminated for Cause, ten (10) days
after Notice of Termination is given, (iv) if Executive’s employment is terminated by Executive for
Good Reason, thirty (30) days after Notice of Termination is given by Executive, (v) if Executive’s
employment is terminated by mutual agreement of the parties pursuant to Subsection 5.4, then the
date agreed upon by the parties, (vi) if Executive’s employment is terminated by expiration of the
Employment Period, the last day of the Employment Period, and (vii) if Executive’s employment is
terminated for any other reason, the date on which Executive ceases to perform Services unless some
other date is agreed to in writing.



Section 6. Representations of the Parties



Fairfax, C&F and Holdings represent and warrant to Executive that (a) this Agreement has been duly
executed and delivered by Fairfax, C&F and Holdings, (b) the execution, delivery and performance of
this Agreement by and Fairfax, C&F and Holdings has been duly authorized by all necessary corporate
action on the part of each of Fairfax, C&F and Holdings, (c) this Agreement constitutes the legal,
valid and binding obligation of each of Fairfax, C&F and Holdings, enforceable against each of
Fairfax, C&F and Holdings in accordance with its terms, and (d) the execution, delivery and
performance of this Agreement by Fairfax, C&F and Holdings does not, and will not, conflict with,
violate, or constitute a breach of or a default under, (i) the Articles or Certificate of
Incorporation or Bylaws of Fairfax, C&F or Holdings, (ii) any provision of law or regulation
applicable to any of the Fairfax, C&F or Holdings, (iii) any provision of any indenture, agreement
or other instrument to which any of Fairfax, C&F or Holdings is a party or by which Fairfax, C&F or
Holdings is bound or affected, with respect to which any such conflict, violation, breach or
default would render this Agreement unenforceable or would have a material adverse effect on the
financial condition of the Fairfax, C&F or Holdings, and
(e) neither Fairfax, C&F nor Holdings has
received any legal advice contrary to their


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representations and warranties
set forth in this Section 6. Executive represents and warrants to Fairfax, C&F and Holdings that
(a) Executive’s execution, delivery and performance of this Agreement do not, and will not,
conflict with, violate, or constitute a breach of or a default under, any provision of law or
regulation applicable to Executive or any provision of any agreement, contract or other instrument
to which Executive is a party or by which Executive is otherwise bound, (b) this Agreement
constitutes the legal, valid and binding obligation of Executive, enforceable against Executive in
accordance with its terms, and (c) Executive has not received any legal advice contrary to
Executive’s representations and warranties set forth in this Section 6.




Section 7. Certain
Covenants.




     7.1 Confidential
Data. Executive covenants that Executive shall not, without the
prior written consent of the Board of Directors of either Fairfax, C&F or Holdings or its
affiliates or a person authorized by such Board of Directors, disclose to any person, other than
(x) employees, agents or representatives of Fairfax, C&F or Holdings or its affiliates, (y) in
connection with performing the Services or (z) in confidence to an attorney for the purpose of
obtaining legal advice, any confidential proprietary information about Fairfax, C&F or Holdings or
their affiliates or their businesses, unless and until such information has become known to the
public generally (other than as a result of unauthorized disclosure by Executive) or unless
Executive is required to disclose such information by a court, arbitrator, governmental body, or
other person with apparent authority to require such disclosure. The foregoing covenant by
Executive shall be without limitation as to time and geographic application.



     7.2 Property
of Fairfax, C&F, Holdings and Their
Affiliates. Executive acknowledges
that from time to time in the course of providing services pursuant to this Agreement, Executive
shall have the opportunity to inspect and use certain property, both tangible and intangible, of
Fairfax, C&F, Holdings or their affiliates and Executive hereby agrees that said property shall
remain the exclusive property of Fairfax, C&F, Holdings or their affiliates, and Executive shall
have no right or proprietary interest in such property, whether tangible or intangible, including,
without limitation, Executive’s customer and supplier lists, contact forms, books of account,
computer programs and similar property.



     7.3 Equitable
Relief. Executive acknowledges that the services to be rendered by
Executive are of a special, unique, unusual, extraordinary, and intellectual character, which gives
them a peculiar value, and the loss of which cannot reasonably or adequately be compensated in
damages in an action at law; and that a breach by Executive of any of the provisions contained in
this Agreement may cause Fairfax, C&F or Holdings or their affiliates irreparable injury and
damage. Executive further acknowledges that Executive possesses unique skills, knowledge and
ability and that competition by Executive in violation of this Agreement or any other breach of the
provisions of this Agreement could be extremely detrimental to Fairfax, C&F, Holdings or their
affiliates. By reason thereof Executive agrees that Fairfax, C&F, Holdings or their affiliates may
be entitled, in addition to any other remedies it may have under this Agreement or otherwise, to
injunctive and other equitable relief to prevent or curtail any breach of this Agreement by
Executive.



     7.4 Limitations
on Remedies. Fairfax, C&F, Holdings or its affiliates shall not be
entitled to suspend payments otherwise due Executive by reason of Executive’s violation of Section
7 hereof (whether before or after a judgment is obtained by C&F against Executive). Fairfax, C&F
or Holdings shall not be entitled to set off against the amounts payable to Executive under this
Agreement any amounts owed to Fairfax, C&F, Holdings or their affiliates by Executive. Nothing in
this Subsection 7.4 shall limit Fairfax’s, C&F’s, Holdings’ or their affiliates’ remedies in the
case of Executive’s violation of this Agreement, except as otherwise specifically provided in this
Subsection 7.4.



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     7.5 Covenant
Not to Solicit. Executive agrees that, for a period of twelve (12)
months after the Termination Date, Executive will not actively solicit to hire either directly or
indirectly any non-clerical employee of Fairfax, C&F, Holdings and their affiliates.



Section 8. Miscellaneous.




     8.1 Assignability;
Binding Nature. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors, heirs and assigns. No rights or
obligations of Executive under this Agreement may be assigned or transferred by Executive other
than Executive’s rights to compensation and benefits hereunder, which may be transferred by will,
by operation of law, or pursuant to the following sentence, in each case subject to the limitations
set forth in this Agreement. Executive shall be entitled, to the extent permitted under applicable
law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit
hereunder following Executive’s death by giving Fairfax, C&F, Holdings or the Companies written
notice thereof. In the event of Executive’s death or a judicial determination of Executive’s
incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to
refer to Executive’s beneficiary, estate or other legal representative. No rights or obligations
of Fairfax, C&F, Holdings or the Companies under this Agreement may be assigned or transferred by
Fairfax, C&F, Holdings or the Companies except that such rights or obligations may be assigned or
transferred pursuant to a merger, consolidation or similar transaction in which Fairfax, C&F,
Holdings or the Companies is not the continuing entity, or the sale or liquidation of all or
substantially all of the business and assets of Fairfax, C&F, Holdings or the Companies, provided
that the assignee or transferee is the successor to all or substantially all of the business and
assets of Fairfax, C&F, Holdings or the Companies and such assignee or transferee promptly assumes
the liabilities, obligations and duties of Fairfax, C&F, Holdings or the Companies, as contained in
this Agreement, either contractually or as a matter of law.



     8.2 Governing
Law. This Agreement shall be deemed to be made in, and in all respects
be interpreted, construed and governed by and in accordance with the laws of the State of New
Jersey.



     8.3 Arbitration
of all Disputes. Any controversy or claim arising out of or relating
to this Agreement (or the breach thereof) shall be settled by final, binding and non-appealable
arbitration in New Jersey. The arbitration shall be conducted in accordance with the Commercial
Arbitration Rules of the American Arbitration Association then in effect, and judgment upon the
award may be entered in any court having jurisdiction thereof. All costs associated with any
arbitration, including all legal expenses for all Parties, shall be borne by Fairfax, C&F, Holdings
or the Companies subject to Fairfax’s, C&F’s, Holdings’ or the Companies right to repayment by
Executive of costs incurred by Executive to the extent that Fairfax, C&F, Holdings or the Companies
finally prevail in such arbitration.



     8.4 Headings.
The section and subsection headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement.



     8.5 Notices. Unless otherwise agreed to in writing by the parties hereto, all
communications provided for hereunder shall be in writing and shall be deemed to be given when
delivered if delivered in person, the next day or designated delivery date if delivered by
overnight service or courier, upon confirmation of receipt if delivered by facsimile, or five (5)
business days after being sent by first-class mail, registered or certified, return receipt
requested, with proper postage prepaid, and




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	 	(a)  	If to Executive, addressed to:





	 	   	Nikolas Antonopoulos

12 Parkwood Lane

Basking Ridge, New Jersey 07920
	 
	 	(b)  	If to Holdings, addressed to:
	 
	 	   	Chairman of the Board

Crum & Forster Holdings Corp.

305 Madison Avenue

Morristown, New Jersey 07962
	 
	 	   	with a copy to:







	 	   	Brad Martin

Fairfax Financial Holdings Limited

95 Wellington St. West, Suite 800

Toronto, Ontario, Canada M5J 2NJ
	 
	 	(c)  	If to C&F, addressed to:
	 
	 	   	Chairman of the Board

Crum & Forster Holding Inc..

305 Madison Avenue

Morristown, New Jersey 07962
	 
	 	   	with a copy to:
	 
	 	   	Vice President – Human Resources

United States Fire Insurance Company

305 Madison Avenue
Morristown, New Jersey 07962
	 
	 	(d)  	If to Fairfax, addressed to:
	 
	 	   	Brad Martin

Fairfax Financial Holdings Limited

95 Wellington St. West, Suite 800

Toronto, Ontario, Canada M5J 2NJ



or to such other person or address as shall be furnished in writing by any party to the other
prior to the giving of the applicable notice or communication.




     8.6 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but all of which together shall constitute one and the same instrument.



     8.7 Entire Agreement. This Agreement is intended by the parties hereto to be the
final expression of their agreement with respect to the subject matter hereof and is the complete
and exclusive statement of the terms thereof, notwithstanding any representations, statements or
agreements to the contrary heretofore made.



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Any prior agreements or understandings are hereby terminated and superceded by this Agreement.
This Agreement may be modified only by a written instrument signed by each of the parties hereto.



     8.8 Waiver. The waiver by either Fairfax, C&F, Holdings or Executive to this
Agreement of a breach of any provision of this Agreement shall not operate or be construed as a
waiver of any prior or subsequent breach of the same provision by the other party or a waiver of a
breach of another provision of this Agreement by the other party. No waiver or modification of any
provision of this Agreement shall be valid unless in writing and duly executed by the party to be
charged with the waiver or modification.



     8.9 Survivorship. Except as otherwise set forth in this Agreement, the respective
rights and obligations of the parties shall survive any termination of Executive’s employment
hereunder.



     8.10 Withholding
Taxes. Fairfax, C&F, Holdings or their affiliates may withhold from
any amounts or benefits payable under this Agreement any taxes that are required to be withheld
pursuant to any applicable law or regulation.



SIGNATURES ON FOLLOWING PAGE




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IN WITNESS WHEREOF, the parties hereto have executed this Agreement.




	 	 	 	 	 	 	 
	 	 	 	 	FAIRFAX FINANCIAL HOLDINGS LIMITED
	 	 	 	 	By:	 	/s/
Eric P. Salsberg 
	 	 	 	 	Name:	 	Eric P. Salsberg 
	 	 	 	 	Title:	 	Vice
President – Corporate Affairs
	Attest:	 	/s/ Bradley P. Martin	 	 	 	 
	Name:	 	Bradley
P. Martin	 	 	 	 
	Title:	 	Vice
President	 	 	 	 
	 	 	 	 	CRUM & FORSTER HOLDING INC.
	 	 	 	 	By:	 	/s/
Valerie Gasparik 
	 	 	 	 	Name:	 	Valerie Gasparik 
	 	 	 	 	Title:	 	Secretary 
	Attest:	 	/s/
Sonia Konopi 	 	 	 	 
	Name:	 	Sonia Konopi 	 	 	 	 
	Title:	 	Assistant
Secretary 	 	 	 	 
	 	 	 	 	CRUM & FORSTER HOLDINGS CORP.
	 	 	 	 	By:	 	/s/
Mary Jane Robertson 
	 	 	 	 	Name:	 	Mary Jane Robertson 
	 	 	 	 	Title:	 	Executive
Vice President, Chief Financial Officer
and Treasurer 
	Attest:	 	/s/
Carol Ann Soos	 	 	 	 
	Name:	 	Carol Ann Soos	 	 	 	 
	Title:	 	Secretary	 	 	 	 
	 	 	 	 	NIKOLAS
ANTONOPOULOS
	 	 	 	 	/s/
Nikolas
Antonopoulos 









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