Document:

Exhibit

10-22

 

	

  

  	

  THE NAVIGATORS GROUP, INC.

  	

   

  

 

 

October

9, 2003

 

Mr. Paul J. Malvasio

8 Northfield Drive

Westport, CT 06880

 

Dear Paul:

 

We are pleased to extend an offer of

employment to join The Navigators Group, Inc. as Executive Vice President and

Chief Financial Officer.  This letter

cancels and replaces our prior employment offer letter of October 6, 2003.  Details of our offer are as follows:

 

	

  Position:

  	

  Executive

  Vice President and Chief Financial Officer

  
	

   

  	

  The

  Navigators Group, Inc.

  
	

   

  	

   

  
	

   

  	

  Executive

  Vice President, Chief Financial Officer and Director

  
	

   

  	

  Navigators

  Insurance Company

  
	

   

  	

  NIC

  Insurance Company

  
	

   

  	

  Navigators

  Management Company, Inc.

  
	

   

  	

   

  
	

   

  	

  Director

  
	

   

  	

  Navigators

  Holdings U.K. Limited

  
	

   

  	

   

  
	

  Position Reports to:

  	

  President

  and Chief Executive Officer

  
	

   

  	

  The

  Navigators Group, Inc.

  
	

   

  	

   

  
	

  Scope or Responsibility:

  	

   

  

 

Senior Financial Executive

within The Navigators Group, Inc., responsible for:

 

1.     Overall responsibility for

financial management of The Navigators Group, Inc. and all subsidiaries

2.     Management of capital

requirements of all operations

3.     Manage relationships with

banking syndicate, ratings agencies, and investment bankers

4.     Responsibility for

establishment of adequate loss reserves and integrity of the reserve setting

process

5.     Management of budgeting,

forecasting and capital allocation process

6.     Management of reinsurance

accounting functions and participation on Reinsurance Security Committee

7.     Management of investor

relations

8.     Production of quarterly

Group and Insurance Company Board packages

9.     Compliance with all SEC and

NASDAQ requirements, including preparation of annual proxy statement, 10-K and

quarterly 10-Q

10.   Oversee the U.S. investment

managers working to implement strategies established in conjunction with the

Finance Committee of the Group Board

11.   Forecast and manage Group

cash flow and cash requirements

 

Reckson Executive

Park, 6 International Drive, Rye Brook, N.Y. 10573

Tel. (914)

934-8999   Fax (914) 934-2355

 

 

Key Short Term Requirements:

 

1.     Assure accurate and timely

financial reporting, internally and externally

2.     Improve the financial

reporting process to exceed the requirements of Section 404 of Sarbanes-Oxley

3.     Evaluate adequacy of staff

4.     Restructure the financial

reporting package provided to the Group Board

5.     Evaluate and improve the

process for establishment of IBNR

6.     Evaluate adequacy and

recommend potential changes to current banking relationships

 

	

  Additional Responsibilities:

  	

  Member

  of the Executive Management Team of Navigators.  Other responsibilities as assigned by the Chief Executive

  Officer.

  
	

   

  	

   

  
	

  Base Salary:

  	

  $275,000,

  subject to annual review beginning July, 2004.

  
	

   

  	

   

  
	

  Cash Bonus:

  	

  Participation

  in the Executive Bonus Plan for The Navigators Group, Inc.  Subject to annual approval by the

  Compensation Committee, you will be eligible for an annual performance bonus

  of 0-100% of base salary, beginning with your date of employment.

  
	

   

  	

   

  
	

  Stock Grants:

  	

  You

  will be awarded a grant of 17,500 shares of stock in The Navigators Group,

  Inc., vesting as shown below.  Based

  upon the closing market price of Navigators Stock (ticker symbol “NAVG” on

  NASDAQ) of $30.06 on October 3, 2003, this award has a current value of

  $526,050

  

 

12

months from start date – 4,375 shares

24

months from start date – 4,375 shares

36

months from start date – 4,375 shares

48

months from start date – 4,375 shares

 

	

  Pension Plan:

  	

  You

  will be eligible for participation in our pension plan for the 2005

  year.  At present, Navigators

  contributes up to 15% of base salary to the pension plan annually.  Details of this plan are discussed in our

  employee manual.

  
	

   

  	

   

  
	

  Medical/Dental/Life:

  	

  Standard

  Company Benefits

  

 

Vacation:               4 weeks paid vacation annually.

 

Location:               Your position will be based

in our Rye Brook, New York office.  It

is expected that your responsibilities will require you to travel in the course

of your duties.

 

Your initial position will be as Executive

Vice President, Finance and Planning, reporting to the Chief Executive

Officer.  Subject to acceptable

performance, you will be named Chief Financial Officer on December 1, 2003.

 

If, during the first three years of your

employment, you are either terminated as a result of a change in control of the

Navigators Group, Inc., by which a party other than Terence N. Deeks and/or his

family attain ownership of more than 50% of the common stock of the Company, or

are terminated without cause, you will be entitled to

 

2

 

continue to receive your base salary (paid at

standard pay period intervals) and medical benefits for a period of one year.

 

Paul, I hope you will find our employment

offer to be attractive and that you will join Navigators as soon as

possible.  This employment offer is

valid through October 30, 2003.  I look

forward to your response.

 

	

   

  	

   

  	

   

  	

  Sincerely,

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Stanley A. Galanski

  
	

   

  	

   

  	

   

  	

  President and Chief

  Executive Officer

  
	

   

  	

   

  	

   

  	

  The Navigators Group, Inc.

  
	

   

  	

   

  	

   

  	

  Navigators Insurance

  Company

  
	

   

  	

   

  	

   

  	

  NIC Insurance Company

  
	

   

  	

   

  	

   

  	

  Navigators Management

  Company, Inc.

  
	

   

  	

   

  	

   

  	

   

  
	

  cc:  Marilynn Gallo

  	

   

  	

   

  	

   

  

 

3

 

Paul Malvasio

 

From:        Stan

GaIanski SGALANSK1@navg.com

 

Sent:         Monday,

October 13, 2003 4:16 PM

 

To:             pjmalvasio@optonline.net

 

Subject:    Open Item I Confirming Today’s Telephone

Conversation

 

PauI:

As we discussed, we agree

to provide for accelerated vesting of your stock grant in the event of a change

of control in which Navigators is not the surviving entity, or in which your

employment is terminated as a result of the change of control. There will be no

acceleration of vesting in the event of termination, whether for cause or for

other than cause, absent the change of control.

 

Paul, we are looking

forward to your start date of October 23.QuickLinks
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Exhibit 4.1  

 
 

FORM OF STOCK CERTIFICATE    
    
    PRICE LEGACY CORPORATION    

INCORPORATED
UNDER THE LAWS OF THE STATE OF MARYLAND 

SEE
REVERSE FOR CERTAIN DEFINITIONS

AND NOTICE ON TRANSFER RESTRICTIONS

CUSIP 74144P 502 

THIS
CERTIFICATE IS TRANSFERABLE IN THE CITY OF RIDGEFIELD PARK, NJ OR NEW YORK, NY 

        This
certifies that 

is
the record holder of 

FULLY
PAID AND NONASSESSABLE SHARES OF COMMON STOCK, $.0004 PAR VALUE PER SHARE, of 

PRICE
LEGACY CORPORATION 

transferable
on the books of the Corporation by the holder hereof in person or by duly authorized Attorney upon surrender of this certificate properly endorsed. This certificate and the shares
represented hereby are subject to all terms, conditions and limitations of the Charter and By-laws of the Corporation and all amendments thereto and supplements thereof. This certificate
is not valid until countersigned by the Transfer agent and registered by the Registrar. 

        WITNESS
the facsimile seal of the Corporation and the facsimile signatures of its duly authorized officers. 

	Dated:	 	 	 	 
	 	 	Countersigned and Registered

    MELLON INVESTOR SERVICES LLC

        Transfer Agent and Registrar
	 	 	BY:	 	 
	

 	
 	

AUTHORIZED SIGNATURE

	 	 	SEAL	 	 
	

SECRETARY	
 	

 	
 	

PRESIDENT

[BACK]

PRICE
LEGACY CORPORATION 

        The
Corporation will furnish to any stockholder on written request and without charge a full statement of the designations and any preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends, qualifications and terms and conditions of redemption of the stock of each class which the Corporation is authorized to issue, of the differences in
the relative rights and preferences between the shares of each series of a preferred or special class in series which the Corporation is authorized to issue, to the extent they have been set, and of
the authority of the Board of Directors to set the relative rights and preferences of subsequent series of a preferred or special class of stock. Such request may be made to the secretary of the
Corporation or to its transfer agent. 

        The
shares represented by this certificate are subject to restrictions on Beneficial and Constructive Ownership and Transfer for the purpose of the Corporation's maintenance of its
status as a Real Estate Investment Trust under the Internal Revenue Code of 1986, as amended (the "Code"). Subject to certain further restrictions and except as expressly provided in the Corporation's
Charter, (i) no Person may Beneficially Own in excess of 5% of the outstanding Capital Shares of the Corporation (by value or by number of shares whichever is more restrictive); (ii) no
Person may Constructively Own in excess of 9.8% of the outstanding Capital Shares of the Corporation (by value or by number of shares, whichever is more restrictive); (iii) no Person may
Beneficially or Constructively Own Capital Shares that would result in the Corporation being "closely held" under Section 856(h) of the Code or otherwise cause the Corporation to fail to
qualify as a REIT; and (iv) no Person may Transfer Capital Shares if such Transfer would result in the capital stock of the Corporation being owned by fewer than 100 Persons. Any Person who
Beneficially or Constructively Owns or attempts to Beneficially or Constructively Own Capital Shares which causes or will cause a Person to Beneficially or Constructively Own Capital Shares in excess
of the above limitations must immediately notify the Corporation. If any of the restrictions on transfer or ownership are violated, the Capital Shares represented hereby will be automatically
transferred to a Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In addition, the Corporation may redeem shares upon the terms and conditions specified by the Board of
Directors in its sole discretion if the Board of Directors determines that ownership or a Transfer or other event may violate the restrictions described above. Furthermore, upon the occurrence of
certain events, attempted Transfers in violation of the restrictions described above may be void ab initio. All capitalized terms in this legend have the meanings defined in the Charter of the
Corporation, as the same may be amended from time to time, a copy of which, including the restrictions on transfer and ownership, will be furnished to each holder of Capital Shares on written request
and without charge. Requests for such a copy may be directed to the Secretary of the Corporation, at the Corporation's principal office. 

        Keep
this Certificate in a safe place. If it is lost, stolen or destroyed, the Corporation will require a bond of indemnity as a condition to the issuance of a replacement Certificate. 

        The
following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or
regulations: 

	TEN COM	 	—as tenants in common	 	UNIF GIFT MIN ACT	 	—            
	 	Custodian	 	 

	 	 	 	 	 	 	(Cust)	 	 	 	(Minor)
	TEN ENT	 	—as tenants by the entireties	 	—	 	under Uniform Gifts to Minors Act
	 	 	 	 	 	 	 
 (State)
	JT TEN	 	—as joint tenants with right of	 	UNIF TRF MIN ACT	 	—            
	 	Custodian (until age            )
	 	 	survivorship and not as	 	 	 	(Cust)	 	 	 	 
	 	 	tenants in common	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	under Uniform Transfers to
	 	 	 	 	 	 	(Minor)	 	 	 	 
	 	 	 	 	 	 	Minors Act	 	 
	 	 
	 	 	 	 	 	 	 	 	(State)	 	 

        Additional abbreviations may also be used though not in the above list. 

        FOR
VALUE RECEIVED,                        hereby sell, assign and transfer unto 

PLEASE
INSERT SOCIAL SECURITY OR OTHER

    IDENTIFYING NUMBER OF ASSIGNEE 

	 	 	 
	 	 
	 	 	 
	 	 

	 
 PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,

INCLUDING POSTAL ZIP CODE, OF ASSIGNEE
	 

	 
	 	SHARES
	OF THE CAPITAL STOCK REPRESENTED BY THE WITHIN CERTIFICATE, AND DO HEREBY IRREVOCABLY CONSOLIDATE AND APPOINT
	 
	 	ATTORNEY
	TO TRANSFER THE SAID STOCK ON THE BOOKS OF THE NAMED CORPORATION WITH FULL POWER OF SUBSTITUTION IN THE PREMISES.

	DATED:	 	 	 	 
	 
	 	 	 	 
	 	 	NOTICE:	 	THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

	Signature(s)Guaranteed:	 	 
	 
	 	 
	By	 	 

	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION, (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION
PROGRAM), PURSUANT TO S.E.C. RULE 17 Ad-15.

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FORM OF STOCK CERTIFICATE PRICE LEGACY CORPORATION

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