Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.2    
    

 
 

WAIVER AND AMENDMENT    
    

        THIS WAIVER AND AMENDMENT (this "Waiver and Amendment") is entered into as of September 5, 2003, between  ZENITH NATIONAL INSURANCE CORP., a Delaware corporation (the "Company"), and  BANK OF AMERICA, N.A., a national
banking association (the "Bank"). 

RECITALS  

        A.    The
Company and the Bank are party to that certain Amended and Restated Credit Agreement dated as of September 30, 2002 (as heretofore modified, amended or
supplemented, the "Credit Agreement"). Unless otherwise defined herein, defined terms used herein shall have the meanings given such terms in the Credit
Agreement. 

        B.    The
Company has advised the Bank an Event of Default exists under Section 7.11 of the Credit Agreement (the "Existing
Default") as a result of the Company's failure to maintain a maximum Debt to Total Capitalization Ratio of .25:1 as of the end of the fiscal quarter ended March 31,
2003. 

        C.    The
Company has requested that the Bank (i) waive the Existing Default (such waiver, the "Subject Waiver"), and
(ii) amend the Credit Agreement in certain respects. 

        D.    The
Bank has agreed to grant the Subject Waiver and to amend the Credit Agreement in certain respects, in each case upon and subject to the terms and conditions set forth
herein. 

        NOW
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Bank agree
as follows: 

        1.     Waiver. Subject to satisfaction of the conditions precedent set forth in  Section 3 hereof, the Bank hereby grants the Subject Waiver and agrees not to
exercise any rights or remedies under the Credit Agreement or any
other Loan Document solely as a result of the occurrence of the Existing Default. The Subject Waiver is specific and shall not constitute the waiver or consent by the Bank of or to any other matter
now or hereafter requiring the waiver or consent of the Bank under the Credit Agreement or any other Loan Document. 

        2.     Amendments. The Credit Agreement is hereby amended as follows: 

        (a)   The
definition of "Debt to Total Capitalization Ratio" contained in  Section 1.1 is amended to read in its entirety as follows: 

        "'Debt to Total Capitalization Ratio' shall mean, as of any date of determination, the ratio of (i) the principal balance of all
Indebtedness of the Company described in clauses (a), (b), (e), (f) or (g) of the definition thereof for which the Company is directly liable or which is a Contingent Obligation of the
Company to (ii) Total Capitalization (provided, that for purposes of determining the amount of the principal balance of such Indebtedness, such principal balance shall be reduced by an amount
equal to 25% of that portion of the principal balance of the Company's Senior Convertible Notes due 2023 then outstanding, which portion, when added to the aggregate liquidation amount of any Capital
Securities then outstanding, does not exceed 25% of Total Capitalization). 

        (b)   Section 7.11 is amended to read in its entirety as follows: 

        "7.11
Debt to Total Capitalization. The Company shall not permit the Debt to Total Capitalization Ratio to exceed .30:1 as of the end of
any fiscal quarter." 

        (c)   Section 7.13 is amended to read in its entirety as follows: 

        "7.13  Interest Coverage Ratio. The Company will not permit the Interest Coverage Ratio to be less than (a) 3.00:1 as of the end of
any fiscal quarter (other than the fiscal quarter 

 

ended
September 30, 2003) or (b) 2.50:1 as of the end of the fiscal quarter ended September 30, 2003." 

        3.     Conditions Precedent to Waiver and Amendment. This Waiver and Amendment shall be effective as of the date hereof when the
Bank receives: 

        (a)   counterparts
of this Waiver and Amendment duly executed by the Company and the Bank; 

        (b)   payment
of all expenses, including legal fees and expenses of counsel to the Bank, incurred by the Bank in connection with this Waiver and Amendment, to the extent
invoiced to the Company on or prior to the date hereof; and 

        (c)   such
other agreements, documents, instruments, and items as the Bank may reasonably request, including, without limitation, documents evidencing the due authorization of
the execution, delivery and performance by the Company of this Waiver and Amendment, the incumbency of the officer of the Company executing this Waiver and Amendment, and any other matters relevant
thereto. 

        4.     Representations and Warranties. The Company represents and warrants to the Bank as follows: 

        (a)   the
execution, delivery and performance by Company of this Waiver and Amendment and the Credit Agreement, as amended hereby, have been duly authorized by all necessary
corporate action and do not and will not (i) require any consent or approval not heretofore obtained of any director, stockholder, security holder, or creditor of the Company,
(ii) violate or conflict with any provision of the Company's certificate of incorporation or bylaws, (iii) violate any laws applicable to the Company, or (iv) result in a breach
of or constitute a default under, or cause or permit the acceleration of any obligation owed under, any indenture or loan or credit agreement or any other material agreement to which the Company is a
party or by which the Company or any of its property is bound or affected; 

        (b)   all
representations and warranties made or deemed made by the Company in the Loan Documents are true and correct as of the date hereof, except to the extent that such
representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties were true and accurate on and as of such earlier date) and except for
changes in factual circumstances not prohibited by the Credit Agreement; and 

        (c)   no
Default or Event of Default has occurred and is continuing as of the date hereof, after giving effect to this Waiver and Amendment. 

        5.     Effect of Waiver and Amendment. This Waiver and Amendment is a Loan Document. The waiver of the Bank hereunder is
expressly limited to the matter contained herein and shall not constitute the consent or waiver by the Bank to, of or with respect to any other matter now or hereafter requiring its consent or waiver
under the Loan Documents. Except as amended hereby, the Credit Agreement and the other Loan Documents are unchanged and are hereby ratified and confirmed. 

        6.     Counterparts. This Waiver and Amendment may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. 

        7.     Governing Law. This Waiver and Amendment shall be governed by and construed in accordance with the laws of the State of
California, without regard to conflict of laws principles. 

2

 

        8.     ENTIRETY. THIS WAIVER AND AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT
BETWEEN THE PARTIES AND SUPERCEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE SUBJECT MATTER HEREOF. THESE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

        9.     Parties. This Waiver and Amendment binds and inures to the benefit of the Company, the Bank, and their respective
successors and permitted assigns. 

[Remainder
of Page Intentionally Left Blank.

Signature Page Follows.] 

3

 

	 
	 	 
	 	 
	 	 

	ZENITH NATIONAL INSURANCE CORP., as the Company	 	 
	

By:	
 	

/s/  STANLEY R. ZAX      
	
 	

 
	 	 	Name:	 	Stanley R. Zax	 	 
	 	 	Title:	 	Chairman & President	 	 
	
BANK OF AMERICA, N.A., as the Bank	
 	

 
	

By:	
 	

Joan D'Amico
	
 	

 
	 	 	Name:	 	Joan L. D'Amico	 	 
	 	 	Title:	 	Managing Director	 	 

4

QuickLinks

Exhibit 10.2

WAIVER AND AMENDMENT<Page>

                                                                    EXHIBIT 10.4

          CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE
         SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

           AMENDMENT TO FIRST AMENDMENT TO PROGRAM AGREEMENTS (BAGEL)

     This Amendment to First Amendment to Program Agreements ("Amendment")
amends the Underwriting, Origination, and Loan Term Guidelines attached as
Exhibit A to the First Amendment to Program Agreements (BAGEL), dated as of
March 1, 2002 ("BAGEL Program Guidelines"), and is by and among Bank of America,
National Association ("Program Lender"), The First Marblehead Corporation
("FMC") and The Education Resources Institute, Inc. ("TERI"). This Amendment is
dated effective as of the effective date of the First Amendment to Program
Agreements (BAGEL).

     WHEREAS the BAGEL Program Guidelines include in Schedule C thereto
"cumulative education debt limits" for the bar and medical residency loans of
$[**] and $[**], respectively; and

     WHEREAS such limits should be stated only as program limits and the amount
of bar and residency loans should be included in cumulative education debt
limits in the "Medical" and "Law" categories, respectively;

     NOW, THEREFORE the parties hereto agree as follows:

     (1)  Schedule C to the BAGEL Program Guidelines is amended as shown in the
          attached Schedule C.
     (2)  In all other respects the First Amendment to Program Agreements
          (BAGEL) shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the date specified above.

                                         THE EDUCATION RESOURCES INSTITUTE, INC.

                                         By: /s/ Lawrence W. O'Toole
                                             ---------------------------------
                                         Its: President

                                         BANK OF AMERICA, N.A.

                                         By: /s/ Kathy Cannon
                                             ---------------------------------
                                         Its: Senior Vice President

                                         THE FIRST MARBLEHEAD CORPORATION

                                         By: /s/ Ralph James
                                             ---------------------------------
                                         Its: President

<Page>

                                   SCHEDULE C
                             BANK OF AMERICA GATE(R)
                   GRADUATE EDUCATION LOAN PROGRAM DEFINITIONS
                                 GENERIC SCHOOLS

ELIGIBILITY:

-    Graduate/Professional students enrolled [**] at a graduate school [**]
     Bank of America, First Marblehead and TERI, [**].
-    Student may [**].
-    Student [**].
-    [**] student [**] the student [**].

         A.  [**] STUDENT APPLICANT [**].

-        [**]

         Student applicant [**];
         Student applicant [**].

B.       [**] STUDENT APPLICANT[**]

-        [**]

         Student applicant [**].

C.       [**] STUDENT APPLICANT[**]

-        [**]

         Student applicant [**]

-        [**] requirements [**]:

         [**]
-        Judgmental sign-off required if rating is:
         [**]

PARTICIPATING SCHOOLS:

         An eligible school is any institution of higher education in the United
         States or Canada that is accredited to grant master and/or doctorate
         degrees, or the equivalent, in any professional field, that has been
         approved by TERI, Lenders will receive periodic listings of approved
         schools. Upon the LENDER'S request, TERI will review other institutions
         for approval and provide written confirmation to the LENDER.

         In order to receive TERI approval, the school must have a default rate
         as reported by the U.S. Department of Education no greater than twelve
         percent (12%). Upon TERI's request, a school must submit three years of
         its audited Financial Statements, as well as such other documentation
         as TERI may require,

<Page>

         based on the circumstances of the request (e.g., school catalog, proof
         of accreditation, proof that the school is operating legally in the
         state in which it is located, certification that it is in compliance
         with all laws of that state concerning its education curriculum, etc.).

         Further, TERI reserves the right to require additional financial
         information if the school has been in existence less than five years.

         Also, the LENDER will be advised, in writing, of any school for which
         TERI has revoked its approval. The revocation has no retroactive
         effect.

         Participating Schools will be divided into a Preferred category and a
         Generic category in accordance with the procedures referenced in the
         Guaranty Agreement. There may from time to time be pricing differences
         between these two categories. To be eligible for Preferred category
         status, a Participating School's most recent FFELP cohort default rate,
         as published by the DOE, must be less than 5%, and the average of the
         Participating School's 3 most recently published FFELP cohort default
         rates must also be less than 5%.

LIMITS:
-    Minimum loan amount: $1,000
-    Maximum loan amount for all programs other than the Bar and Medical
     Residency/Relocation loans: Cost of education less financial aid, subject
     to an annual cap of:

                  $20,000 for credit-ready students applying on their own
                           signature, other than Medical and Dental;

                           NOTE: BORROWERS MAY EXCEED THIS LIMIT TO A MAXIMUM OF
                           THE COST OF EDUCATION MINUS FINANCIAL AID AS
                           CERTIFIED BY THE SCHOOL. IF APPROVED FOR A LOAN IN
                           EXCESS OF THE LIMIT AMOUNT, TERI WILL RECEIVE AN
                           ADDITIONAL GUARANTEE FEE AS PROVIDED IN EXHIBIT K TO
                           THE GUARANTY AGREEMENT.

                  $25,000 for credit-ready students applying on their own
                           signature, if Medical and Dental;

                           NOTE: BORROWERS MAY EXCEED THIS LIMIT TO A MAXIMUM OF
                           THE COST OF EDUCATION MINUS FINANCIAL AID AS
                           CERTIFIED BY THE SCHOOL. IF APPROVED FOR A LOAN IN
                           EXCESS OF THE LIMIT AMOUNT, TERI WILL RECEIVE AN
                           ADDITIONAL GUARANTEE FEE AS PROVIDED IN EXHIBIT K TO
                           THE GUARANTY AGREEMENT.

                  $45,000 for creditworthy students applying on their own
                  signature $45,000 for students applying with a creditworthy
                  co-borrower.

         -    Bar and Medical Residency/Relocation loans are subject to a
                  cumulative aggregate cap of:
<Table>
<S>                                           <C>
                  Bar:                        $8,000
                  Medical Residency:         $10,000
</Table>

<Page>

         The student must also have a previously obtained a FFELP or alternative
         education loan from the Bank to be considered for one of these loans.

- Cumulative Education Debt Limits (applicable to credit-ready student borrowers
only):

<Table>
<S>                                 <C>
              Dental:               $225,000

              Law :                 $130,000

              Business:             $120,000

              All Others:           $120,000
</Table>

REPAYMENT:

-    Repayment begins 180 days after graduation (or the end of medical
     residency, for residency relocation loans). (For students who apply for a
     bar loan after graduation, repayment still begins 180 days after
     graduation). However, if the student ceases to be enrolled prior to
     graduation, repayment begins 180 days after that event.
-    $50 minimum monthly payment.
-    Up to 20 years to repay for all loan amounts.
-    Interest capitalized at repayment.

DEFERMENT OPTIONS:

-    All loans have deferment of principal and interest while student remains
     enrolled at least half-time, up to a maximum of 41/2 years from the date of
     the first disbursement of the Loan. (The 41/2 year period includes the
     180-day post-graduation deferment.)
-    Medical and dental students can request a deferment after graduation for up
     to four years while completing an Internship or residency.

INTEREST RATES:

         Interest rates are set forth in Exhibit K to the Guaranty Agreement;
         Exhibit K is incorporated herein by reference.

FEES:

         Origination and Guaranty fees are set forth in Exhibit K to the
         Guaranty Agreement.

PROGRAM CODES:

-    TBD - Generic Creditworthy Dental
-    TBD - Generic Creditworthy Medical
-    TBD - Generic Creditworthy Law
-    TBD - Generic Creditworthy Business
-    TBD - Generic Creditworthy Other

<Page>

-    TBD - Generic Creditready Dental
-    TBD - Generic Creditready Medical
-    TBD - Generic Creditready Medical Residency/Relocation
-    TBD - Generic Creditready Law
-    TBD - Generic Creditready Bar
-    TBD - Generic Creditready Business
-    TBD - Generic Creditready William & Mary Program
-    TBD - Generic Creditready Other

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]