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Exhibit 10.1  

 
 

COST ALLOCATION AGREEMENT
  BETWEEN
  ZENITH NATIONAL INSURANCE CORP.,
  ZENITH INSURANCE COMPANY,
  ZNAT INSURANCE COMPANY,
  CALFARM INSURANCE COMPANY,
  CALFARM LIFE INSURANCE COMPANY,
  AND

CALFARM INSURANCE AGENCY    
  

THIS
AGREEMENT is made with reference to the following facts: 

	A.
	Zenith
National Insurance Corp. (Zenith National), Zenith Insurance Company (Zenith), ZNAT Insurance Company (ZNAT), CalFarm Insurance
Company (CalFarm), CalFarm Life Insurance Company (Life), and CalFarm Insurance Agency (Agency), share facilities, and certain employees of each perform
services for the other.

	B.
	Zenith
National, Zenith, ZNAT, CalFarm, Life, and Agency desire to agree as to the basis for allocating costs to each other for shared facilities and employees. 

        NOW,
THEREFORE, in consideration of the premises and of the mutual agreements and covenants herein contained, Zenith National, Zenith, ZNAT, CalFarm, Life, and Agency do hereby enter
into this Agreement and do hereby agree as follows: 

	1.
	Term.    The term of this Agreement shall be for a period of one year and shall automatically be renewed each year unless
terminated by Zenith National, Zenith, ZNAT, CalFarm, Life, or Agency by giving ninety (90) days' prior written notice that it will not renew the Agreement.

	2.
	Compensation.    Costs of shared facilities will be allocated to each party based on a cost allocation system which utilizes
factors for space occupied. Costs of services provided by employees will be allocated to each based upon the cost allocation system and time related to another entity's interest. In addition, expenses
incurred on behalf of a party (including, for example, bureau and association dues, travel expenses, supplies, etc.) shall be charged to the party on whose behalf the expenses were incurred. Expenses
shall be paid by all parties and charged to the appropriate party based on the procedure set forth herein. The net balance of payments and charges will be maintained in separate inter-company accounts
and payments will be made to the appropriate parties on these accounts at least quarterly.

	3.
	Records and Accounting.    All records necessary, proper and customary for the operations to be performed by the parties under
this Agreement shall be properly maintained by each party for and on behalf of each of the other parties. Such records shall be the separate property of each party. These records shall be available,
upon reasonable notice, for inspection, audit or other use by authorized representatives of the Subsidiaries or by governmental authorities.

	4.
	Amendments.    This Agreement may be modified, amended or terminated at any time by mutual consent, provided, however, that
any such modification, amendment or termination must be in writing and executed by officers of Zenith National, Zenith, ZNAT, CalFarm, Life, and Agency.

	5.
	Indemnification.    Zenith National, Zenith, ZNAT, CalFarm, Life, and Agency hereby agree to indemnify and hold each other
harmless for any loss occasioned by the negligent acts or omissions of the officers or employees of each.

	6.
	Non-Assignability.    The rights, obligations, duties and authority under this Agreement are not assignable by any
party hereto.

	7.
	Termination of Agreement.    Any party may terminate its participation in this Agreement upon ninety (90) days' written
notice.

	8.
	Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the State of California.

1

 

        THIS
AGREEMENT is executed this 31st day of December, 1990, to be effective as of January 1, 1991. 

	 	 	ZENITH NATIONAL INSURANCE CORP.
	 	 	 	 	 
	 	 	By:	 	/s/  FREDRICKA TAUBITZ      
 FREDRICKA TAUBITZ

Executive Vice President
	 	 	 	 	 
	 	 	 	 	 
	 	 	ZENITH INSURANCE COMPANY
	 	 	 	 	 
	 	 	By:	 	/s/  PHILIP R. HUNT      
 PHILIP R. HUNT

Vice President
	 	 	 	 	 
	 	 	 	 	 
	 	 	ZNAT INSURANCE COMPANY
	 	 	 	 	 
	 	 	By:	 	/s/  JOHN J. TICKNER      
 JOHN J. TICKNER

Vice President
	 	 	 	 	 
	 	 	 	 	 
	 	 	CALFARM INSURANCE COMPANY
	 	 	 	 	 
	 	 	By:	 	/s/  FREDRICKA TAUBITZ      
 FREDRICKA TAUBITZ

Senior Vice President
	 	 	 	 	 
	 	 	 	 	 
	 	 	CALFARM LIFE INSURANCE COMPANY
	 	 	 	 	 
	 	 	By:	 	/s/  PHILIP M. JOFFE      
 PHILIP M. JOFFE

Vice President
	 	 	 	 	 
	 	 	 	 	 
	 	 	CALFARM INSURANCE AGENCY
	 	 	 	 	 
	 	 	By:	 	/s/  JOHN J. TICKNER      
 JOHN J. TICKNER

Senior Vice President

2

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COST ALLOCATION AGREEMENT BETWEEN ZENITH NATIONAL INSURANCE CORP., ZENITH INSURANCE COMPANY, ZNAT INSURANCE COMPANY, CALFARM INSURANCE COMPANY, CALFARM LIFE INSURANCE COMPANY, AND CALFARM INSURANCE
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Exhibit 10.2  

 
  AMENDMENT NO. 1
  TO
  COST ALLOCATION AGREEMENT    
  

WHEREAS,
Zenith National Insurance Corp., Zenith Insurance Company, ZNAT Insurance Company, CalFarm Insurance Company, CalFarm Life Insurance Company,  and CalFarm Insurance
Agency have previously entered into a Cost Allocation Agreement; and 

WHEREAS,
Zenith Insurance Company has recently formed and owns 100% of the outstanding common stock of Zenith Star Insurance
Company; and 

WHEREAS,  Zenith Star Insurance Company desires to become a party to the aforementioned Cost Allocation Agreement; 

IN
CONSIDERATION OF THE PREMISES, the parties agree as follows: 

	1.
	Effective
July 1, 1993, Zenith Star Insurance Company shall become a party to the inter-company Cost Allocation Agreement,
subject to all of the terms, conditions and obligations thereunder.

	2.
	In
all other respects the Cost Allocation Agreement remains unchanged. 

IN
WITNESS WHEREOF, each of the undersigned parties has caused this Amendment No. 1 to be executed on its behalf, this 28th day of December, 1993. 

	ZENITH NATIONAL INSURANCE CORP.	 	ZENITH INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  ILLEGIBLE      
	 	By:	 	/s/  JAMES ROSS      

	 	 	 	 	 	 	 
	ZENITH STAR INSURANCE COMPANY	 	CALFARM INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JAMES ROSS      

	 	 	 	 	 	 	 
	
CALFARM LIFE INSURANCE COMPANY	
 	
CALFARM INSURANCE AGENCY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

	 	 	 	 	 	 	 
	
ZNAT INSURANCE COMPANY	
 	

 	
 	

 
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	 	 	 

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AMENDMENT NO. 1 TO COST ALLOCATION AGREEMENTQuickLinks
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Exhibit 10.3  

 
  AMENDMENT NO. 2
  TO
  COST ALLOCATION AGREEMENT    
  

WHEREAS,
Zenith National Insurance Corp., Zenith Insurance Company, ZNAT Insurance Company, CalFarm Insurance Company, CalFarm Life Insurance Company,  and CalFarm Insurance
Agency have previously entered into a Cost Allocation Agreement; and 

WHEREAS,
Zenith National Insurance Corp. has entered into an agreement to sell 100% of the common stock of CalFarm Life
Insurance Company to Anchor National Life Insurance Company ("Anchor") or an affiliate designated by it; and 

WHEREAS,
it is necessary to amend the Cost Allocation Agreement accordingly; 

IN
CONSIDERATION OF THE PREMISES, the parties agree as follows: 

	1.
	Effective
as of the close of business of the closing date of the sale of CalFarm Life Insurance Company to Anchor,  CalFarm Life Insurance Company shall be deleted as
a party to the inter-company Cost Allocation
Agreement.

	2.
	In
all other respects the Cost Allocation Agreement remains unchanged. 

IN
WITNESS WHEREOF, each of the undersigned parties has caused this Amendment No. 2 to be executed on its behalf, this 28th day of December, 1995. 

	 	 	 	 	 	 	 
	ZENITH NATIONAL INSURANCE CORP.	 	ZENITH INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

	 	 	 	 	 	 	 
	ZENITH STAR INSURANCE COMPANY	 	CALFARM INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

	 	 	 	 	 	 	 
	CALFARM LIFE INSURANCE COMPANY	 	CALFARM INSURANCE AGENCY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

	 	 	 	 	 	 	 
	ZNAT INSURANCE COMPANY	 	 	 	 
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	 	 	 

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AMENDMENT NO. 2 TO COST ALLOCATION AGREEMENTQuickLinks
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Exhibit 10.4  

 
  AMENDMENT NO. 3
  TO
  COST ALLOCATION AGREEMENT    
  

WHEREAS,
Zenith National Insurance Corp., Zenith Insurance Company, ZNAT Insurance Company, CalFarm Insurance Company, CalFarm Insurance Agency,  and Zenith Star Insurance
Company have previously entered into a Cost Allocation Agreement; and 

WHEREAS,
Zenith Insurance Company has recently formed and owns 100% of the outstanding common stock of Zenith Insurance Company
of Florida; and 

WHEREAS,  Zenith Insurance Company of Florida desires to become a party to the aforementioned Cost Allocation Agreement; 

IN
CONSIDERATION OF THE PREMISES, the parties agree as follows: 

	1.
	Effective
January 1,1998, Zenith Insurance Company of Florida shall become a party to the inter-company Cost Allocation
Agreement, subject to all of the terms, conditions and obligations thereunder.

	2.
	In
all other respects the Cost Allocation Agreement remains unchanged. 

IN
WITNESS WHEREOF, each of the undersigned parties has caused this Amendment No. 3 to be executed on its behalf, this 7th day of January, 1998. 

	 	 	 	 	 	 	 
	ZENITH NATIONAL INSURANCE CORP.	 	ZENITH INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

	 	 	 	 	 	 	 
	ZENITH STAR INSURANCE COMPANY	 	CALFARM INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

	 	 	 	 	 	 	 
	CALFARM INSURANCE AGENCY	 	ZNAT INSURANCE COMPANY
	 	 	 	 	 	 	 
	By:	 	/s/  JOHN J. TICKNER      
	 	By:	 	/s/  JOHN J. TICKNER      

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AMENDMENT NO. 3 TO COST ALLOCATION AGREEMENT

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