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Exhibit 10.17  

 
  SECOND
  AMENDMENT
  TO
  REVOLVING CREDIT PROMISSORY NOTE    
  

        1.    Reference
is made to that Revolving Credit Promissory Note dated April 5, 1993 in the principal amount of Eleven Million Dollars made and delivered by
Perma-Bilt, a Nevada Corporation, a Nevada corporation, to Zenith National Insurance Corp., a Delaware corporation, which was amended by Amendment dated November 10, 1995 to
increase the principal amount to Twenty Million Dollars (as amended, the "Note"). 

        2.    The
undersigned hereby amends the Note by deleting the words "Twenty Million Dollars" wherever they appear in the Note as the principal amount and substituting "Forty
Million Dollars" in their place and by deleting the symbol and number "$20,000,000" wherever they appear in the Note as the principal amount and substituting "$40,000,000" in their place. 

        3.    Except
for the specific modification of the principal amount, the undersigned expressly reaffirm the terms and conditions of the Note. 

	Dated: June 26, 1996	 	Perma-Bilt, a Nevada Corporation,

a Nevada corporation
	 	 	 	 	 
	 	 	By:	 	/s/  DANIEL SCHWARTZ      
 Daniel Schwartz

President

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Exhibit 10.18  

 
  THIRD
  AMENDMENT
  TO
  REVOLVING CREDIT PROMISSORY NOTE    
  

        1.    Reference
is made to that Revolving Credit Promissory Note dated April 5, 1993 in the principal amount of Eleven Million Dollars made and delivered by
Perma-Bilt, a Nevada Corporation, a Nevada corporation, to Zenith National Insurance Corp., a Delaware corporation, which was amended by Amendment dated November 10, 1995 to
increase the principal amount to Twenty Million Dollars and by Second Amendment dated June 26, 1996 to increase the principal amount to Forty Million Dollars (as amended, the "Note"). 

        2.    The
Note is hereby amended as follows: 

        a.    Delete
the words "Forty Million Dollars" wherever they appear in the Note as the principal amount and substitute "Forty Five Million Dollars" in their place and delete
the symbol and number "$40,000,000" wherever they appear in the Note as the principal amount and substitute "$45,000,000" in their place. 

        b.    Delete
the date, "December 31, 1996," as the "Maturity Date" and substitute in its place, "December 31, 1998." 

        3.    Except
for the specific modification of the principal amount and of the Maturity Date, the undersigned expressly reaffirm the terms and conditions of the Note. 

	Dated as of: June 24, 1998	 	Perma-Bilt, a Nevada Corporation,

a Nevada corporation
	 	 	 	 	 
	 	 	By:	 	/s/  DANIEL SCHWARTZ      
 Daniel Schwartz

President

	Agreed:	 	 
	 	 	 	 	 
	Zenith National Insurance Corp.	 	 
	 	 	 	 	 
	By:	 	/s/  STANLEY R. ZAX      
 Stanley R. Zax

Chairman and President	 	 

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Exhibit 10.19  

 
  SEVENTH
  AMENDMENT
  TO
  REVOLVING CREDIT PROMISSORY NOTE    
  

        1.    Reference
is made to that Revolving Credit Promissory Note dated April 5, 1993 made and delivered by Perma-Bilt, a Nevada Corporation, a Nevada
corporation, to Zenith National Insurance Corp., a Delaware corporation, the original principal amount and original Maturity Date of which were Eleven Million Dollars and December 31, 1996,
respectively. Pursuant to an Amendment dated November 10, 1995, a Second Amendment dated June 26, 1996, a Third Amendment dated as of July 28, 1998, a Fourth Amendment dated as of
December 8, 1998 and a Fifth Amendment dated as of December 2, 1999, a Sixth Amendment dated as of December 11, 2000, the principal amount has been increased to Forty Five Million
Dollars and the Maturity Date has been extended to December 31, 2001. Reference herein to the "Note" refers to the Revolving Credit Promissory Note, as so amended. 

        2.    The
Note is hereby further amended by extending the Maturity Date (as defined in the Note) to December 31, 2002. 

        3.    Except
for the specific modification of the Maturity Date, the undersigned expressly reaffirm the terms and conditions of the Note. 

	Dated as of December 11, 2001	 	Perma-Bilt, a Nevada Corporation,

a Nevada corporation
	 	 	 	 	 
	 	 	By:	 	/s/  DANIEL SCHWARTZ      
 Daniel Schwartz

President

	Agreed:	 	 
	 	 	 	 	 
	Zenith National Insurance Corp.	 	 
	 	 	 	 	 
	By:	 	/s/  STANLEY R. ZAX      
 Stanley R. Zax

Chairman and President	 	 

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Exhibit 10.20  

 
  EIGHTH
  AMENDMENT
  TO
  REVOLVING CREDIT PROMISSORY NOTE    
  

        1.    Reference
is made to that Revolving Credit Promissory Note dated April 5, 1993 made and delivered by Perma-Bilt, a Nevada Corporation, a Nevada
corporation, to Zenith National Insurance Corp., a Delaware corporation, the original principal amount and original Maturity Date of which were Eleven Million Dollars and December 31, 1996,
respectively. Pursuant to an Amendment dated November 10, 1995, a Second Amendment dated June 26, 1996, a Third Amendment dated as of July 28, 1998, a Fourth Amendment dated as of
December 8, 1998, a Fifth Amendment dated as of December 2, 1999, a Sixth Amendment dated as of December 11, 2000, and a Seventh Amendment dated as of December 11, 2001,
the principal amount has been increased to Forty Five Million Dollars and the Maturity Date has been extended to December 31, 2002. Reference herein to the "Note" refers to the Revolving Credit
Promissory Note, as so amended. 

        2.    The
Note is hereby further amended by adding the following to the end of the second paragraph: 

The
foregoing interest rate only applies to borrowings outstanding on or before May 31, 2002. The interest rate on borrowings that are outstanding on or after June 1, 2002 shall be ten
per cent (10%) per annum. 

        3.    Except
for the specific modification, as set forth herein, the undersigned expressly reaffirm the terms and conditions of the Note. 

	Dated May 30, 2002	 	Perma-Bilt, a Nevada Corporation,

a Nevada corporation
	 	 	 	 	 
	 	 	By:	 	/s/  DANIEL SCHWARTZ      
 Daniel Schwartz

President

	Agreed:	 	 
	 	 	 	 	 
	Zenith National Insurance Corp.	 	 
	 	 	 	 	 
	By:	 	/s/  STANLEY R. ZAX      
 Stanley R. Zax

Chairman and President	 	 

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Exhibit 10.21    
  

        WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY

EXCESS OF LOSS REINSURANCE AGREEMENT

(Contract No. 00984-060702)

July 1, 2002  

 ZENITH INSURANCE COMPANY

ZNAT INSURANCE COMPANY

ZENITH STAR INSURANCE COMPANY  

 WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY

EXCESS OF LOSS REINSURANCE AGREEMENT

(Contract No. 00984-060702)

July 1, 2002  

TABLE OF CONTENTS  

	Article
	 	 
	 	Page

	I	 	Application of Agreement	 	1
	

II	
 	

Reinsurance	
 	

2
	

III	
 	

Terrorism Sublimit	
 	

2
	

IV	
 	

Exclusions	
 	

3
	

V	
 	

Excluded Risks Inadvertently Bound	
 	

4
	

VI	
 	

Definitions of Loss and Claim Expenses	
 	

5
	

VII	
 	

Indemnity for Claim Expenses	
 	

5
	

VIII	
 	

Reinsurance Premium	
 	

6
	

IX	
 	

Net Premium Income	
 	

6
	

X	
 	

Reporting and Accounting	
 	

6
	

XI	
 	

Claims	
 	

6
	

XII	
 	

Liability of Corporation	
 	

7
	

XIII	
 	

Offset	
 	

8
	

XIV	
 	

Inspection of Records	
 	

8
	

XV	
 	

Assignments and Changes of Interest	
 	

8
	

XVI	
 	

Termination	
 	

8
	

Attachments:	
 	

 
	 	 	Insolvency Clause	 	10
	 	 	Nuclear Incident Exclusion Clauses	 	10

  

WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY

EXCESS OF LOSS REINSURANCE AGREEMENT

(Contract No. 00984-060702)  

 entered into between  

 EMPLOYERS REINSURANCE CORPORATION

of

Overland Park, Kansas

(hereinafter called the CORPORATION)  

 and  

 ZENITH INSURANCE COMPANY

ZNAT INSURANCE COMPANY

both of

Woodland Hills, California

ZENITH STAR INSURANCE COMPANY

of

Austin, Texas

(all hereinafter collectively called the REINSURED)  

EFFECTIVE DATE: July 1, 2002  

        In consideration of the mutual covenants hereinafter contained, the parties hereto agree as follows: 

 
 

ARTICLE I    
  

        APPLICATION OF AGREEMENT.    This agreement applies to the Workers' Compensation and Employers' Liability line of business, as
respects occurrences taking place on or after the effective date and prior to the termination date of this agreement. 

        This
agreement does not apply to: 

	(a)
	reinsurance
assumed by the REINSURED;

	(b)
	policies
written specifically as excess insurance over an underlying policy on the same insured;

	(c)
	policies
written excess of a deductible or retention greater than $250,000 each occurrence, unless prior written approval is obtained from the CORPORATION by the REINSURED, in which
case this agreement shall apply to any such policy subject to such notice of approval;

	(d)
	business
written by the REINSURED as a pro rata participant with one or more other insurers;

	(e)
	business
to the extent that it is reinsured outside of this agreement, except:

	(i)
	reinsurance
afforded the REINSURED under a reinsurance pooling arrangement among the REINSURED and its affiliates, recoveries under which shall be
ignored for purposes of this agreement;

	(ii)
	quota
share reinsurance provided by Odyssey America Reinsurance Corporation; 

	(f)
	the
REINSURED'S liability as a participant, member, subscriber or reinsurer of any pool, syndicate, association, insolvency fund, guaranty fund or other combination of insurers of
reinsurers formed for the purpose of covering specific coverages, specific lines of business or for the purpose of insuring or reinsuring risks located in specific geographical areas. 

1

 

        The
Insolvency Clause and the Nuclear Incident Exclusion Clauses are attached hereto and made a part of this agreement. 

 
 

ARTICLE II    
  

        REINSURANCE.    As respects loss sustained by the REINSURED under Layer One of this agreement, for each occurrence regardless of
the number of policies involved in such occurrence, the REINSURED shall retain as its own net retention the first $1,000,000 of loss and the CORPORATION hereby agrees to indemnify the REINSURED
against loss in excess of such retention subject to a limit of $1,000,000. 

        As
respects loss sustained by the REINSURED under Layer Two of this agreement, for each occurrence regardless of the number of policies involved in such occurrence, the CORPORATION
hereby agrees to indemnify the REINSURED against loss in excess of the underlying amount of $2,000,000, subject to a limit of $1,000,000. 

        As
respects loss sustained by the REINSURED under Layer Three of this agreement, for each occurrence regardless of the number of policies involved in such occurrence, the CORPORATION
hereby agrees to indemnify the REINSURED against loss in excess of the underlying amount of $3,000,000, subject to a limit of $2,000,000. 

        As
respects loss sustained by the REINSURED under Layer Four of this agreement, for each occurrence regardless of the number of policies involved in such occurrence, the CORPORATION
hereby agrees to indemnify the REINSURED against loss in excess of the underlying amount of $5,000,000, subject to a limit of $5,000,000. 

        Occupational
disease sustained by each employee shall be deemed to be a separate occurrence. 

 
 

ARTICLE III    
  

        TERRORISM SUBLIMIT.    The following perils, risks and kinds of insurance are subject to an annual aggregate sublimit under this
agreement: 

        Loss,
destruction or damage occasioned by an act or multiple or related acts of Terrorism; whether such loss, destruction or damage is caused directly, indirectly, happening through, or
in consequence of such Terrorism. The term "Terrorism" as used herein shall mean: 

	(a)
	A
violent act or an act dangerous to human life, tangible or intangible property or infrastructure, that is a violation of the criminal laws of the United States or of any State or
Country, or that would be a criminal violation if committed within the jurisdiction of the United States or of any State or Country; and

	(b)
	Appears
to be intended to:

	1.
	Intimidate,
coerce or incite a civilian population; or

	2.
	Inflict
economic loss or disrupt any segment of a local, national or global economy; or

	3.
	Influence
or protest against the policy or conduct of a government by any means including mass destruction, murder, kidnapping, hijacking, hostage-taking, intimidation or coercion. 

        Provided,
however, that this sublimit only applies if one or more of the followings are attributable to an incident of Terrorism: 

	(a)
	The
total of insured damage to all types of property exceeds $25,000,000. In determining whether the $25,000,000 threshold is exceeded, we will include all insured damage sustained by
property of all persons and entities affected by the Terrorism and business interruption losses 

2

 

sustained by owners or occupants of the damaged property. For the purpose of this provision, insured damage means damage that is covered by any insurance plus damage that would be covered by any
insurance but for the application of any terrorism exclusions; or 

	(b)
	Ten
or more persons sustain death or serious physical injury. For the purposes of this provision, serious physical injury means:

	1.
	Physical
injury that involves a substantial risk of death; or

	2.
	Protracted
and obvious physical disfigurement; or

	3.
	Protracted
loss of or impairment of the function of a bodily member or organ; or 

	(c)
	The
Terrorism involves the use, release or escape of nuclear materials, or directly or indirectly results in nuclear reaction or radiation or radioactive contamination; or

	(d)
	The
Terrorism is carried out by means of the dispersal or application of pathogenic or poisonous biological or chemical materials; or

	(e)
	Pathogenic
or poisonous biological or chemical materials are released, and it appears that one purpose of the Terrorism was to release such materials. 

        Other
than paragraphs (c), (d) and (e), immediately preceding, paragraphs (a) and (b) immediately preceding, describe the thresholds used to measure the magnitude of
an incident of Terrorism and the circumstances in which the threshold will apply for the purpose of determining whether the Terrorism Sublimit will apply to that incident. In the event of any incident
of Terrorism that is not subject to the Terrorism Sublimit, coverage does not apply to any loss or damage that is otherwise excluded under this agreement. 

        Multiple
incidents of Terrorism which occur within a seventy-two hour period and appear to be carried out in concert or to have a related purpose or common leadership shall
be considered to be one incident. 

        As
respects the subject business to which this agreement applies, all Terrorism loss amounts paid by the REINSURED for which this Terrorism Sublimit applies shall be combined and the
total amount for which the CORPORATION shall be obligated shall not exceed $9,000,000 any one 12 month period. 

        For
the purposes of the application of this provision: 

	(a)
	"12 month
period" means 12 calendar months beginning on the effective or anniversary date and ending on the date 12 calendar months thereafter.

	(b)
	Any
amount indemnified by the CORPORATION with respect to the subject business hereunder shall be a part of and not in addition to any other statement of the reinsurance limit(s) set
out in this agreement. 

 
 

ARTICLE IV    
  

        EXCLUSIONS.    Reinsurance does not apply to loss: 

	(a)
	arising
out of any of the following coverages or operations carried on by the insured as a principal operation:

	(1)
	Working
or navigation of any vessel, other than light craft on inland waterways and dredging;

	(2)
	Manufacture,
storage, filling, breaking down, or transport of:

	(i)
	Fireworks,
ammunition, fuse, cartridges, powder, nitroglycerine or any explosive; 

3

 

	(ii)
	Gasses
and/or air under pressure in containers (but this exclusion shall not apply to the storage of distribution of liquid petroleum gas by wholesale
or retail dealers); 

	(3)
	Underground
coal mines;

	(4)
	Manufacture
of celluloid and pyroxylin;

	(5)
	Erection
of structural iron and/or steel works, unless in conjunction with ordinary construction of buildings, except that this exclusion shall not
apply to insureds engaged in steel work where such steel work erection is not beyond twelve stories in height;

	(6)
	Contractors
doing building wrecking exclusively;

	(7)
	Tunneling;

	(8)
	Tower,
steeple and chimney shaft work;

	(9)
	Operation
of dry docks, docks, quays and wharves;

	(10)
	Construction
or maintenance of coffer dams;

	(11)
	Subaqueous
constructions and/or other subaqueous work;

	(12)
	Oil
tanks and/or refining works;

	(13)
	Aviation
risks involving flying risks;

	(14)
	Operations
involving atomic energy and nuclear fission;

	(15)
	Operations
of a carrier by rail;

	(16)
	All
exposures covered under the Jones Act. 

	(b)
	arising,
directly or indirectly, out of:

	(1)
	War,
including undeclared or civil war; or

	(2)
	Warlike
action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or
other authority using military personnel or other agents; or

	(3)
	Insurrection,
rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these. 

        The
REINSURED may submit to the CORPORATION for special acceptance any risk excluded hereunder. 

 
 

ARTICLE V    
  

        EXCLUDED RISKS INADVERTENTLY BOUND.    If, without the knowledge of a member of the REINSURED'S underwriting department, the
REINSURED becomes bound on a risk specifically excluded in this agreement, such reinsurance as would have been afforded for the risk by this agreement if the risk had not been excluded shall
nevertheless apply to such risk with respect to occurrences taking place prior to the 31st day after discovery by a member of such underwriting department of the existence of the hazard
which makes the exclusion applicable. 

        In
case, within such 30 day period, the REINSURED shall have forwarded to the CORPORATION complete underwriting notice of its approval of the risk, the reinsurance shall apply
with respect to such risk for the policy period reported in the same manner as if such risk were not so excluded, subject, however, to the terms of such notice of approval. 

4

 

 
 

ARTICLE VI    
  

 DEFINITIONS OF LOSS AND CLAIM EXPENSES.  

        The word "loss" shall mean only such amounts: 

	(a)
	within
applicable policy limits as are actually paid by the REINSURED in settlement of claims or in satisfaction of awards or judgments (including prejudgment interest and plaintiff's
costs included in the judgment and subject with the judgment to the applicable policy limit);

	(b)
	equal
to 90% of the amount paid by the REINSURED in excess of applicable third party liability coverage policy limits occasioned by liability imposed upon the REINSURED on account of
the failure of the REINSURED to settle a claim for an amount within such policy limits;

	(c)
	equal
to 90% of the amount paid by the REINSURED for punitive, exemplary, or compensatory damages awarded to the insured and arising out of the conduct of the REINSURED in the
investigation, trial or settlement of any claim or failure to pay or delay in payment of any benefits under any policy. 

        Provided,
however, that in the event of insolvency the REINSURED, "loss" shall mean the amount of loss which the insolvent insurer has incurred or is liable for, and payment by the
CORPORATION shall be made to the liquidator, receiver or other statutory successor of the REINSURED in accordance with the provisions of the insolvency clause of this agreement; but the word "loss"
shall not include claim expenses. 

        Net
salvage, subrogation or any other recovery (after expenses) shall be used to reduce the loss and so much of such recovery shall be paid to the CORPORATION as will reduce the loss
ultimately borne by the CORPORATION to what it would have been had the recovery preceded any payment of such loss by the CORPORATION. 

        The
term "claim expenses" shall mean all payments under the supplementary payments provisions of the REINSURED'S policy, including court costs, interest upon judgments, and
investigation, adjustment and legal expenses, incurred by persons who are not employees of the REINSURED or of any subsidiary or affiliated companies of the REINSURED, except in the case of field
claim adjusters or staff attorneys and then only when the time spent by any adjuster or staff attorney is definitively allocated to a specific claim. 

        Recoveries
from any form of insurance or reinsurance which protects the REINSURED against loss as described in subparagraphs (b) and (c) above of this Article shall inure
to the benefit of this agreement. 

        Neither
the word "loss" nor the term "claim expenses" shall include: 

	(a)
	salaries
paid to employees of the REINSURED, except as indicated above in the paragraph four of this article;

	(b)
	any
statutory penalty imposed upon the REINSURED on account of any unfair trade practice or any unfair claim practice. 

 
 

ARTICLE VII    
  

        INDEMNITY FOR CLAIM EXPENSES.    The CORPORATION hereby agrees that, as respects reinsurance afforded by the other terms of this
agreement, the CORPORATION will, with respect to each occurrence, indemnify the REINSURED against that proportion of claim expenses paid by the REINSURED that the amount of loss ultimately borne by
the CORPORATION bears to the total amount of loss: Provided, however, that in the event a verdict, award or judgment is reduced or 

5

 

reversed by appeal taken by the REINSURED from an award or judgment, the CORPORATION shall indemnify the REINSURED against claim expenses paid by the REINSURED connected with such settlement or
appeal in the same ratio that the benefit derived by the CORPORATION from such reduction or reversal bears to the total benefit resulting from such reduction or reversal. 

 
 

ARTICLE VIII    
  

        REINSURANCE PREMIUM.    As respects net premium income derived from Layer One of this agreement, the REINSURED shall pay to the
CORPORATION a reinsurance premium equal to 1.140% of the net premium income derived by the REINSURED from the line of business to which this agreement applies. 

        As
respects net premium income derived from Layer Two of this agreement, the REINSURED shall pay to the CORPORATION a reinsurance premium equal to .525% of the net premium income derived
by the REINSURED from the line of business to which this agreement applies. 

        As
respects net premium income derived from Layer Three of this agreement, the REINSURED shall pay to the CORPORATION a reinsurance premium equal to .575% of the net premium income
derived by the REINSURED from the line of business to which this agreement applies. 

        As
respects net premium income derived from Layer Four of this agreement, the REINSURED shall pay to the CORPORATION a reinsurance premium equal to .31% of the net premium income derived
by the REINSURED from the line of business to which this agreement applies. 

        The
REINSURED shall also pay to the CORPORATION an additional reinsurance premium of $400,000 annually for the Terrorism coverage provided pursuant to Article III of this
agreement. 

 
 

ARTICLE IX    
  

        NET PREMIUM INCOME.    The reinsurance rate shall apply to "net premium income" which shall mean premiums earned on or after the
effective date and prior to the termination date of this agreement on policies to which this agreement applies before deduction of: 

	(a)
	any
policyholder dividends;

	(b)
	credits
given for any insured policy with a deductible in excess of $2,500; and

	(c)
	premium
for other reinsurance. 

 
 

ARTICLE X    
  

        REPORTING AND ACCOUNTING.    Within 25 days after the close of each calendar month the REINSURED shall furnish to the
CORPORATION a report (in a form and medium satisfactory to the CORPORATION) of reinsurance premiums due the CORPORAITON for such month. Such report shall show and properly segregate (by state and
line) the REINSURED'S premiums to which the reinsurance premium rates apply, and such report shall contain such other statistical information as may be required by the CORPORATION. The amount due the
CORPORATION shall be remitted to the CORPORATION within 45 days after the close of such month. 

 
 

ARTICLE XI    
  

        CLAIMS.    The REINSURED shall report promptly to the CORPORATION each occurrence which, in the REINSURED'S reasonable estimate
of value of injuries or damages sought, might involve the reinsurance afforded by this agreement and shall forward promptly to the CORPORATION copies of such pleadings and reports of investigation as
may be requested by the CORPORATION. 

6

 

Notwithstanding the REINSURED'S reasonable estimate of value, any claim involving one or more of the following injuries shall be reported to the CORPORATION: 

	(a)
	fatality;

	(b)
	paraplegia
or more extensive paralysis;

	(c)
	severe
brain injury or brain damage prognosis;

	(d)
	severe
burns;

	(e)
	amputations
of one or more limbs;

	(f)
	loss
of sight or hearing to a substantial degree;

	(g)
	back
injury where surgery has been performed or is recommended by the treating doctor;

	(h)
	severe
laceration cases involving the face, arms or legs and leaving serious cosmetic deformity;

	(i)
	a
claim for psychological injury for which there appears to be a reasonable basis;

	(j)
	multiple
fractures or severe internal injuries with high residual permanent impairment;

	(k)
	any
injury where there is, or appears probable, an alleged loss of earnings for one year or more. 

        The
REINSURED shall also notify the CORPORATION of any occurrence for which the REINSURED has created a loss reserve equal to or greater than one half of the REINSURED'S retention
hereunder, or any occurrence giving rise to a bad faith claim covered by Article VI (c) above. The REINSURED shall advise the CORPORATION of the estimated amount of loss and claim
expenses in connection with each such occurrence and of any subsequent changes. 

        The
REINSURED agrees that it will investigate and will settle or defend all claims arising under policies with respect to which reinsurance is afforded by this agreement, and that it
will give prompt notice to the CORPORATION of any claim in excess of the REINSURED'S application retention and prompt notice of any other event or development which would involve the CORPORATION
hereunder, and will forward promptly to the CORPORATION copies of such pleadings and reports of investigation as may be requested by the CORPORATION. 

        The
CORPORATION may, at its own expense, participate with the REINSURED in the investigation, adjustment or defense of claims to which, in the judgment of the CORPORATION, it is or might
become exposed. 

        Should
the right of subrogation or reimbursement arise out of a loss, a part of which was sustained by the CORPORATION hereunder, the REINSURED agrees to enforce such right and to
prosecute the claim arising therefrom. 

        The
CORPORATION shall reimburse the REINSURED or its legal representative promptly for loss against which indemnity is herein provided, upon receipt in the home office of the CORPORATION
of satisfactory evidence of payment of such loss. 

        The
REINSURED shall furnish to the CORPORATION prior to the 20th day of December of each year a report and statement showing the estimated value of each outstanding claim
subject to excess reinsurance hereunder. 

 
 

ARTICLE XII    
  

        LIABILITY OF THE CORPORATION.    The liability of the CORPORATION shall follow that of the REINSURED in every case and shall be
subject in all respects to all the general and special stipulations, clauses, waivers and modifications of the REINSURED'S policy or policies and any 

7

 

endorsements thereon; provided however, that nothing herein shall be construed to extend any rights or obligations to any person not a party to this agreement. 

        Subject
to the terms of the policies, the REINSURED shall be the sole judge as to what shall constitute a claim or loss covered under the REINSURED'S original policy and as to the
REINSURED'S liability thereunder and as to the amount or amounts which it shall be proper for the REINSURED to pay thereunder, and the CORPORATION shall be bound by the judgment of the REINSURED as to
the liability and obligation of the REINSURED. 

        No
error or omission in reporting any risk or loss reinsured hereunder shall invalidate the liability of the CORPORATION, provided such error or omission is corrected promptly by the
REINSURED after discovery thereof, but the reporting of reinsurance not authorized by this agreement or by special acceptance hereunder shall not bind the CORPORATION, except for the return of premium
paid therefor. 

 
 

ARTICLE XIII    
  

        OFFSET.    The REINSURED or the CORPORATION may offset any balance, whether on account of premiums, commissions, loss or claim
expenses due from one party to the other under this agreement or under any other reinsurance agreement heretofore or hereafter entered into between the REINSURED and the CORPORATION, whether acting as
assuming reinsurer or ceding company. 

 
 

ARTICLE XIV    
  

        INSPECTION OF RECORDS.    The CORPORATION may inspect the records of the REINSURED pertaining to the risks reinsured hereunder. 

 
 

ARTICLE XV    
  

        ASSIGNMENTS AND CHANGES OF INTEREST.    No assignment or change of the REINSURED'S interest hereunder, whether voluntary or
involuntary and whether by merger or reinsurance of its entire business with another company or otherwise, shall be binding upon the CORPORATION. 

 
 

ARTICLE XVI    
  

        TERMINATION.    This agreement shall continue in effect until terminated by mutual consent, or by either party's giving to the
other party not less than 180 days' notice in advance of any calendar quarter by registered mail or express delivery service, stating the termination date. 

8

 

        IN
WITNESS WHEREOF, the parties hereto have caused this agreement to be signed in duplicate. 

	ZENITH INSURANCE COMPANY	 	EMPLOYERS REINSURANCE CORPORATION
	

/s/  JOHN J. TICKNER      
	
 	

/s/  GARRY L. SCHULTZ      

	Title:	 	 	 	Title:	 	Second Vice President
	

 	
 	

 	
 	

[Illegible]
	
	 	

	Title:	 	 	 	Title:	 	Second Vice President
	

Date:	
 	

July 10, 2002
	
 	

Date:	
 	

July 3, 2002

	

ZNAT INSURANCE COMPANY	
 	

ZENITH STAR INSURANCE COMPANY
	

/s/  JOHN J. TICKNER      
	
 	

/s/  JOHN J. TICKNER      

	Title:	 	 	 	Title:	 	 
	

 	
 	

 
	
	 	

	Title:	 	 	 	Title:	 	 
	

Date:	
 	

July 10, 2002
	
 	

Date:	
 	

July 10, 2002

9

   
ATTACHMENTS: 

	1.
	Insolvency
Clause

	2.
	Nuclear
Incident Exclusion Clauses 

ATTACHMENTS
NOT INCLUDED 

10

QuickLinks

Exhibit 10.21

ARTICLE I

ARTICLE II

ARTICLE III

ARTICLE IV

ARTICLE V

ARTICLE VI

ARTICLE VII

ARTICLE VIII

ARTICLE IX

ARTICLE X

ARTICLE XI

ARTICLE XII

ARTICLE XIII

ARTICLE XIV

ARTICLE XV

ARTICLE XVI

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]