Document:

Exhibit 10.1

 

ZENITH
NATIONAL INSURANCE CORP.

 

AMENDED
AND RESTATED 2004 RESTRICTED STOCK PLAN

 

(As
of February 11, 2005)

 

Section 1.                                          General
Purpose of Plan; Definitions.

 

This plan is the Zenith National Insurance
Corp. 2004 Restricted Stock Plan (the “Plan”).  The purpose of the Plan is to enable the
Company (as defined below) to attract and retain highly qualified personnel who
will contribute to the Company’s success and to provide incentives to
Participants (as defined below) that are linked directly to increases in
stockholder value and will therefore inure to the benefit of all stockholders
of the Company.

 

For purposes of the Plan, the following terms
shall be defined as set forth below:

 

(a)                                  “Administrator”
means the Board or the Committee, as appointed by the Board in accordance with Section 2
below.

 

(b)                                 “Beneficial Owner”
shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

 

(c)                                  “Board” means
the board of directors of the Company.

 

(d)                                 “Change in Control”
means, following the Effective Date, one of the following events:

 

(1)                                  any Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company
representing 50% or more of the combined voting power of the Company’s then
outstanding securities, excluding any Person who becomes such a Beneficial
Owner in connection with a transaction described in subclause (x) of clause (3) below;
or

 

(2)                                  the following individuals cease for
any reason to constitute a majority of the number of directors then serving on
the Board:  (i) directors who, on
the date hereof, constitute the Board and any (ii) new director (other
than a director whose initial assumption of office is in connection with an
actual or threatened election contest, including but not limited to a consent solicitation,
relating to the election of directors of the Company) whose appointment or
election by the Board or nomination for election by the Company’s stockholders
was approved or recommended by a vote of a majority of the directors then still
in office who either were directors on the date hereof or whose appointment,
election or nomination for election was previously so approved or recommended;
or

 

 

(3)                                  there is consummated a merger or
consolidation of the Company with any other corporation, other than (x) a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or any parent thereof), in
combination with the ownership of any trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any subsidiary of
the Company, at least 50% of the combined voting power of the securities of the
Company or such surviving entity or any parent thereof outstanding immediately
after such merger or consolidation, or (y) a merger or consolidation effected
to implement a recapitalization or reincorporation of the Company (or similar
transaction) in which no Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company’s then outstanding securities; or

 

(4)                                  the stockholders of the Company
approve a plan of complete liquidation or dissolution of the Company or there
is consummated the sale or disposition by the Company of all or substantially
all of the Company’s assets, other than a sale or disposition by the Company of
all or substantially all of the Company’s assets to an entity, at least 50% of
the combined voting power of the voting securities of which is owned by
substantially all of the stockholders of the Company immediately prior to such
sale in substantially the same proportions as their ownership of the Company
immediately prior to such sale.

 

(e)                                  “Committee”
means the Compensation Committee of the Board. 
If at any time or to any extent the Board does not administer the Plan,
then the functions of the Board specified in the Plan shall be exercised by the
Committee.

 

(f)                                    “Company”
means Zenith National Insurance Corp., a Delaware corporation (or any successor
corporation).

 

(g)                                 “Disability”
means the inability of a Participant to substantially perform his or her duties
and responsibilities to the Company or to any Parent or Subsidiary by reason of
a physical or mental disability or infirmity (i) for a continuous period
of six (6) months, or (ii) at such earlier time as the Participant
submits medical evidence satisfactory to the Administrator that the Participant
has a physical or mental disability or infirmity that will likely prevent the
Participant from returning to the performance of the Participant’s work duties
for six (6) months or longer.  The
date of such Disability shall be the last day of such six-month period or the
day on which the Participant submits such satisfactory medical evidence, as the
case may be.

 

(h)                                 “Effective Date”
shall have the meaning set forth in Section 10.

 

(i)                                     “Eligible
Recipient” means an employee or director of the Company or of any Parent or
Subsidiary.

 

(j)                                     “Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

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(k)                                  “Fair Market Value”
means, as of any given date, with respect to any awards granted hereunder, (A) the
closing sale price of a share of Stock on such date on the principal securities
exchange on which the Company’s equity securities are listed or traded, (B) the
fair market value of a share of Stock as determined in accordance with a method
prescribed in the agreement evidencing any award hereunder, or (C) the
fair market value of a share of Stock as otherwise determined by the
Administrator in the good faith exercise of its discretion.

 

(l)                                     “Parent”
means any entity that is the Beneficial Owner of 50% or more of the combined
voting power of all classes of stock of the Company.

 

(m)                               “Participant”
means any Eligible Recipient selected by the Administrator, pursuant to the
Administrator’s authority in Section 2 below, to receive awards of
Restricted Stock.

 

(n)                                 “Person” shall
have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that
such term shall not include (i) the Company or any Parent or Subsidiary, (ii) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company or any of its affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities, or (iv) a
corporation owned, directly or indirectly, by substantially all of the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

 

(o)                                 “Plan” shall
have the meaning set forth in the first paragraph of this Section 1.

 

(p)                                 “Restricted Period”
shall have the meaning set forth in Section 5(f)(i).

 

(q)                                 “Restricted Stock”
means shares of Stock subject to restrictions on sale, transfer, pledge or
assignment during a Restricted Period pursuant to Section 5.

 

(r)                                    “Restricted
Stock Award Agreement” shall have the meaning set forth in Section 5(d).

 

(s)                                  “Stock” means
the common stock, par value $1.00 per share, of the Company.

 

(t)                                    “Subsidiary”
means any entity with respect to which the Company is the Beneficial Owner of
50% or more of the total combined voting power of all classes of stock of such
entity.

 

(u)                                 “Unrestricted Stock”
means Restricted Stock for which the Restricted Period has lapsed.

 

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Section 2.                                          Administration.

 

The Plan shall be administered in accordance
with the requirements of Rule 16b-3, promulgated under the Exchange Act,
by the Board or, at the Board’s sole discretion, by the Committee, which shall
be appointed by the Board, and which shall serve at the discretion of the
Board.

 

The Administrator shall have the power and
authority to grant awards of Restricted Stock to Eligible Recipients pursuant
to the terms of the Plan.  Except as
otherwise provided herein, the Administrator shall have the authority:

 

(a)                                  to select those
Eligible Recipients who shall be Participants;

 

(b)                                 to determine whether
and to what extent awards of Restricted Stock are to be granted hereunder to
Participants;

 

(c)                                  to determine the
number of shares of Stock to be covered by each award granted hereunder and the
purchase price thereof; and

 

(d)                                 to determine the terms
and conditions, not inconsistent with the terms of the Plan, of each award
granted hereunder, including, but not limited to the restrictions applicable to
awards of Restricted Stock and the conditions under which restrictions
applicable to such awards of Restricted Stock shall lapse.

 

The Administrator shall have the authority,
in its sole discretion, to adopt, alter and repeal such administrative rules,
guidelines and practices governing the Plan as it shall from time to time deem
advisable; to interpret the terms and provisions of the Plan and any award
issued under the Plan (and any agreements relating thereto); and to otherwise
supervise the administration of the Plan.

 

All decisions made by the Administrator
pursuant to the provisions of the Plan shall be final, conclusive and binding
on all persons, including the Company and the Participants.

 

Section 3.                                          Stock
Subject to Plan.

 

The total number of shares of Stock reserved
and available for issuance under the Plan shall be 250,000 shares.  Such shares may consist, in whole or in part,
of authorized and unissued shares or treasury shares.  To the extent that any shares of Stock
subject to any award of Restricted Stock granted hereunder are forfeited, such
shares of Stock shall again be available for issuance in connection with future
awards granted under the Plan.

 

In the event of any merger, reorganization,
consolidation, recapitalization, stock dividend or other change in corporate
structure affecting the Stock, an equitable substitution or proportionate
adjustment shall be made in (i) the aggregate number of shares of Stock
reserved for issuance under the Plan, and (ii) the kind, number and
purchase price of shares of Stock subject to outstanding awards of Restricted
Stock granted under the Plan, in each case, as may be determined by the
Administrator, in its sole discretion. 
Such other substitutions or adjustments shall be made as may be

 

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determined by the Administrator, in its sole discretion.  In connection with any event described in
this paragraph, the Administrator may provide, in its sole discretion, for the
cancellation of any outstanding awards and payment in cash or other property
therefor.

 

Section 4.                                          Eligibility.

 

Eligible Recipients shall be eligible to
receive awards of Restricted Stock.  The
Participants under the Plan shall be selected from time to time by the
Administrator, in its sole discretion, from among the Eligible Recipients, and
the Administrator shall determine, in its sole discretion, the number of shares
of Stock covered by each such award.

 

Section 5.                                          Restricted
Stock.

 

(a)                                  General. 
Awards of Restricted Stock may be granted under the Plan.  The Administrator shall determine the
Eligible Recipients to whom, and the time or times at which, awards of
Restricted Stock shall be made; the number of shares to be awarded; the price
to be paid by the Participant for the acquisition of Restricted Stock; the
Restricted Period (as defined in Section 5(f)) applicable to awards of
Restricted Stock, including any applicable performance objectives; and all
other conditions of the awards of Restricted Stock.  The provisions of the awards of Restricted Stock
need not be the same with respect to each Participant.

 

(b)                                 Purchase Price. 
The Administrator shall determine the purchase price to be paid for each
share of Restricted Stock; provided, that such per share purchase price
shall not be less than par value.

 

(c)                                  Form of Payment. 
The purchase price for an award of Restricted Stock may be paid in cash
or its equivalent.  The Administrator may
in its discretion allow payment in the form of (i) shares of unrestricted
Stock owned by the Eligible Recipient for greater than six (6) months, the
Fair Market Value of which on the purchase date is equal to the purchase price
of the Restricted Stock, (ii) cancellation of indebtedness, (iii) services
rendered or (iv) any combination of the foregoing.

 

(d)                                 Awards and Certificates. 
The prospective recipient of awards of Restricted Stock shall not have
any rights with respect to any such award unless and until such recipient has
executed an agreement evidencing the award (a “Restricted Stock Award
Agreement”) and has delivered a fully executed copy thereof to the Company
within a period of thirty (30) days (or such other period as the Administrator
may specify) after the award date.

 

(e)                                  Form of Restricted Stock. 
The Company may, in its discretion, reflect ownership of Restricted
Stock through the issuance of stock certificates, in book-entry form or any
combination thereof.

 

If the Company elects to issue stock
certificates evidencing shares of Restricted Stock, the Participant who is
granted an award of Restricted Stock shall be issued a stock certificate in
respect of such shares of shares of Restricted Stock.  Such

 

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certificates shall be registered in the name of the Participant and
shall bear an appropriate legend referring to the terms, conditions and
restrictions applicable to any such award. 
The Company may require that the stock certificates evidencing
Restricted Stock granted hereunder be held in escrow in the custody of the
Company (or as otherwise determined by the Administrator) until the
restrictions thereon have lapsed, and that, as a condition of any award of
Restricted Stock, the Participant shall have delivered to the Company a stock
power, endorsed in blank, relating to the Stock covered by such award.  Promptly after the Restricted Period has
lapsed without forfeiture in respect of such shares of Restricted Stock except
as the Administrator, in its sole discretion, shall otherwise determine,
certificates for shares of Unrestricted Stock shall be delivered to the
Participant.

 

If the Company elects to reflect Restricted
Stock ownership in book-entry form, it shall establish on its books a Restricted
Stock account in the Participant’s name, and shall credit to such account the
number of shares of the Participant’s Restricted Stock.    The book entry shares of Restricted Stock
shall be subject to the restrictions described in Section 5(f) until
the termination of the Restricted Period, whereupon the shares of Unrestricted
Stock shall promptly be transferred to the Participant in the form and
registration as indicated by the Participant.

 

(f)                                    Restrictions and Conditions. 
The awards of Restricted Stock granted pursuant to this Section 5
shall be subject to the following restrictions and conditions:

 

(i)                                     Subject to the provisions of the
Plan and the Restricted Stock Award Agreement governing any such award, during
such period as may be established by the Administrator commencing on the date
of grant (the “Restricted Period”), the Participant shall not be
permitted to sell, transfer, pledge or assign shares of Restricted Stock
awarded under the Plan; provided, however, that the Administrator
may, in its sole discretion, provide for the lapse of such restrictions in
installments and may accelerate or waive such restrictions in whole or in part
based on such factors and such circumstances as the Administrator may
determine, in its sole discretion, including, but not limited to, the
attainment of certain performance related goals or the Participant’s
termination of employment or service as a director with the Company or any
Parent or Subsidiary.  Subject to the
foregoing, the following shall apply to all awards of Restricted Stock:

 

(1)                                  with respect to awards of Restricted
Stock granted to employees, except with respect to the lapse of the Restricted
Period upon attainment of specified performance goals, the Restricted Period
shall not lapse earlier than (A) the second (2nd) anniversary
of the date of grant of an award of Restricted Stock with respect to 50% of the
shares of Stock subject to such award and (B) the fourth (4th)
anniversary of the date of grant with respect to the remaining 50% of the
shares of Stock subject to such award;

 

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(2)                                  with respect to awards of Restricted
Stock granted to directors (who are not also employees), except with respect to
the lapse of the Restricted Period upon attainment of specified performance
goals, the Restricted Period shall not lapse earlier than (A) the first (1st)
anniversary of the date of grant of such award with respect to one-third (1/3)
of the shares of Stock subject to such award, (B) the second (2nd)
anniversary of the date of grant of such award with respect to an additional
one-third (1/3) of the shares of Stock subject to such award and (C) the
third (3rd) anniversary of the date of grant of such award with
respect to the remaining one-third (1/3) of the shares of Stock subject to such
award; and

 

(3)                                  the Restricted Period shall lapse in
full upon the death of the Participant or termination of the Participant’s
employment or service due to Disability.

 

(ii)                                  Except as otherwise provided in this
Section 5, the Participant shall generally have the rights of a
stockholder of the Company with respect to Restricted Stock during the
Restricted Period.  Unless otherwise
provided in a Restricted Stock Award Agreement, ordinary-course cash dividends
paid with respect to Restricted Stock shall be paid to the Participant and
extraordinary dividends (as determined by the Administrator) shall be held by
the Company, in escrow or as otherwise determined by the Administrator, until
the Restricted Period applicable to such Restricted Stock lapses.  If the Restricted Stock pursuant to which
such extraordinary dividends were paid is forfeited, such dividends shall also
be forfeited and returned to the Company.

 

(iii)                               The rights of Participants upon
termination of employment or service with the Company or any Parent or
Subsidiary during the Restricted Period applicable to such Participant’s Restricted
Stock shall be set forth in the Restricted Stock Award Agreement governing the
award of such Restricted Stock.

 

Section 6.                                          Change
in Control.

 

Upon a Change in Control, unless awards of
Restricted Stock are assumed by a successor corporation or equivalent awards
are substituted therefor, all awards of Restricted Stock shall become fully
vested and free of restrictions.

 

Section 7.                                          Amendment
and Termination.

 

The Board may amend, alter or discontinue the
Plan, but no amendment, alteration, or discontinuation shall be made that would
impair the rights of a Participant under any award theretofore granted without
such Participant’s consent, or that, without the approval of the stockholders
(as described below), would:

 

(a)                                  except as provided in Section 3,
increase the total number of shares of Stock reserved for issuance under the
Plan; or

 

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(b)                                 change the class of persons eligible
to participate in the Plan.

 

Notwithstanding the foregoing, stockholder
approval under this Section 7 shall only be required at such time and
under such circumstances as stockholder approval would be required under stock
exchange rules or other applicable law or regulation with respect to
amendment of the Plan.

 

The Administrator may amend the terms of any
award theretofore granted, prospectively or retroactively, but, subject to Section 3,
no such amendment shall impair the rights of any Participant without his or her
consent.

 

Section 8.                                          Unfunded
Status of Plan.

 

The Plan is intended to constitute an “unfunded”
plan for incentive compensation.  With
respect to any payments not yet made to a Participant by the Company, nothing
contained herein shall give any such Participant any rights that are greater
than those of a general creditor of the Company.

 

Section 9.                                          General
Provisions.

 

(a)                                  Shares of Stock shall not be issued
pursuant to any award granted hereunder unless the issuance and delivery of
such shares of Stock pursuant thereto shall comply with all relevant provisions
of law, including, without limitation, the Securities Act of 1933, as amended,
the Exchange Act and the requirements of any stock exchange upon which the
Stock may then be listed.

 

(b)                                 The Administrator may require each
person acquiring shares of Stock hereunder to represent to and agree with the
Company in writing that such person is acquiring the shares of Stock without a
view to distribution thereof.  The
certificates for such shares of Stock may include any legend which the
Administrator deems appropriate to reflect any restrictions on transfer.

 

All certificates for shares of Stock
delivered under the Plan shall be subject to such stop-transfer orders and
other restrictions as the Administrator may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission
any stock exchange upon which the Stock is then listed, and any applicable
Federal or state securities law, and the Administrator may cause a legend or
legends to be placed on any such certificates to make appropriate reference to
such restrictions.

 

(c)                                  Nothing contained in the Plan shall
prevent the Board from adopting other or additional compensation arrangements;
and such arrangements may be either generally applicable or applicable only in
specific cases.  Neither the adoption of
the Plan nor the grant of an award hereunder shall confer upon any Eligible
Recipient any right to continued employment or service with the Company or any
Parent or Subsidiary, as the case may be, nor shall it interfere in any way
with the right of the Company or any Parent or Subsidiary to terminate the
employment or service of any of its Eligible Recipients at any time.

 

8

 

(d)                                 Each Participant shall, no later
than the date as of which the value of an award first becomes includible in the
gross income of the Participant for Federal income tax purposes, pay to the
Company, or make arrangements satisfactory to the Administrator regarding
payment of, any Federal, state, or local taxes of any kind required by law to
be withheld with respect to such award. 
The obligations of the Company under the Plan shall be conditional on
the making of such payments or arrangements, and the Company shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to the Participant.

 

(e)                                  No member of the Board or the
Administrator, nor any officer or employee of the Company acting on behalf of
the Board or the Administrator, shall be personally liable for any action,
determination, or interpretation taken or made in good faith with respect to
the Plan, and all members of the Board or the Administrator and each and any
officer or employee of the Company acting on their behalf shall, to the extent permitted
by law, be fully indemnified and protected by the Company in respect of any
such action, determination or interpretation.

 

Section 10.                                   Stockholder
Approval; Effective Date of Plan.

 

The Plan shall be effective as of the date
the Plan is approved by stockholders of the Company (the “Effective Date”).  No grant of any award hereunder shall be made
prior to stockholder approval of the Plan.

 

Section 11.                                   Term
of Plan.

 

No awards of Restricted Stock shall be
granted pursuant to the Plan on or after the tenth (10th)
anniversary of the Effective Date, but awards theretofore granted may extend
beyond that date.

 

9Exhibit 10.2

 

ZENITH
NATIONAL INSURANCE CORP.

AMENDED
AND RESTATED 2004 RESTRICTED STOCK PLAN

RESTRICTED
STOCK AWARD AGREEMENT

FOR
NON-EMPLOYEE DIRECTORS

 

THIS
RESTRICTED STOCK AWARD AGREEMENT (the “Award Agreement”)
is made and entered into as of                           
(the “Date of Grant”), by and between Zenith
National Insurance Corp., a Delaware corporation (the “Company”),
and [                         ]
(the “Grantee”).  Capitalized terms not defined herein shall
have the meaning ascribed to them in the Zenith National Insurance Corp.
Amended and Restated 2004 Restricted Stock Plan (the “Plan”).  Where the context permits, references to the
Company or any of its Subsidiaries shall include the successors to the
foregoing.

 

Pursuant to
the Plan, the Administrator has determined that the Grantee is to be granted
Restricted Stock, subject to the terms, conditions and restrictions set forth
in the Plan and herein, and hereby grants such Restricted Stock.

 

1.                                       Grant
of Restricted Stock.  The Company
hereby grants to the Grantee                   
shares of Restricted Stock (the “Award”) on the
terms, conditions and restrictions set forth in this Award Agreement and as
otherwise provided in the Plan.

 

2.                                       Purchase
Price; Method of Payment.  The
purchase price per share of Restricted Stock shall be $1.00.  The purchase price may be paid (i) in
cash or its equivalent, (ii) shares of unrestricted Stock owned by the
Grantee for greater than six (6) months, the Fair Market Value of which on
the purchase date is equal to the purchase price of the Restricted Stock, (iii) to
the extent permitted by law, cancellation of indebtedness, (iv) services
rendered or (v) any combination of the foregoing.  In the absence of any other form of payment
tendered by the Grantee, the purchase price shall be paid by services rendered.

 

3.                                       Restrictions
with Respect to Restricted Stock.

 

(a)   Restrictions.  The Restricted Stock granted hereunder and
any interest therein, may not be sold, transferred, pledged, hypothecated,
assigned or otherwise disposed of, except by will or the laws of descent and
distribution, prior to the lapsing of restrictions set forth in the Plan and
this Award Agreement.  Any attempt to
dispose of any Restricted Stock in contravention of any such restrictions shall
be null and void and without effect.

 

(b)  
Restricted Period; Lapse of Restrictions.  Except as otherwise provided in the Plan or
this Award Agreement, the restrictions set forth in Paragraph 3(a) shall
lapse on (A) the first (1st) anniversary of the Date of Grant
with respect to one-third (1/3) of the shares of Restricted Stock subject to
such Award, (B) the second (2nd) anniversary of the Date of
Grant with respect to an additional one-third (1/3) of the shares of Restricted
Stock subject to such Award, and (C) the third (3rd)
anniversary of the Date of Grant with respect to the remaining one-third (1/3)
of the shares of Restricted Stock subject to such Award, so long as the Grantee
is

 

 

serving on the Board of Directors of the Company as of each such
anniversary, except where termination of service arises from Grantee’s
Disability.

 

4.                                       Form of
Restricted Stock.  The Company may,
in its discretion, reflect ownership of Restricted Stock through the issuance
of stock certificates, in book-entry form or any combination thereof, in
accordance with Section 5(e) of the Plan.

 

5.                                       Unrestricted
Shares.  Promptly after each lapse of
restrictions relating to the Restricted Stock without forfeiture, and provided
that the Grantee shall have complied with his or her obligations under
Paragraph 9 hereof, the Company shall, with respect to such Unrestricted
Shares:

 

(a)  
If such Unrestricted Shares were initially issued in certificated form,
issue to the Grantee or the Grantee’s personal representative a stock certificate
representing a number of shares of Stock, free of the restrictive legend
described in Paragraph 7, equal to the number of shares of Restricted Stock
with respect to which such restrictions have lapsed.  If certificates representing such Restricted
Stock shall have theretofore been delivered to the Grantee, such certificates
shall be returned to the Company, complete with any necessary signatures or
instruments of transfer prior to the issuance by the Company of such unlegended
shares of Stock; or

 

(b)  
If such Unrestricted Shares were initially issued in book-entry form,
transfer such Unrestricted Shares to the Grantee in the form and registration
as indicated by the Grantee.

 

6.                                       Rights
as a Stockholder.  Subject to the
restrictions set forth in the Plan and this Award Agreement, the Grantee shall
possess all incidents of ownership with respect to the Restricted Stock granted
hereunder, including the right to vote such Restricted Stock and the right to
receive dividends with respect to such Restricted Stock; provided however, that
extraordinary or non-cash dividends shall be subject to the same restrictions
that apply to the underlying Restricted Stock.

 

7.                                       Certificate;
Restrictive Legend.  Any certificate
issued for Restricted Stock prior to the lapse of any outstanding restrictions
relating thereto shall be inscribed with the following legend, or such other
legend as determined by the Administrator:

 

THIS
CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS
AND CONDITIONS, INCLUDING FORFEITURE PROVISIONS AND RESTRICTIONS AGAINST
TRANSFER (THE “RESTRICTIONS”), CONTAINED IN THE ZENITH NATIONAL INSURANCE CORP.
AMENDED AND RESTATED 2004 RESTRICTED STOCK PLAN AND THE RESTRICTED STOCK AWARD
AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE COMPANY.  ANY ATTEMPT TO DISPOSE OF THESE SHARES IN
CONTRAVENTION OF THE RESTRICTIONS, INCLUDING BY WAY OF SALE, ASSIGNMENT,
TRANSFER, PLEDGE, HYPOTHECATION OR OTHERWISE, SHALL BE NULL AND VOID AND WITHOUT
EFFECT.

 

 

8.                                       Termination
of Service.

 

(a)  
Upon the Grantee’s death or termination of service due to Disability,
the restrictions set forth in Paragraph 3(a) shall lapse.

 

(b)  
Upon termination of the Grantee’s service with the Company or any
Subsidiary thereof for any reason (other than death or Disability) prior to the
lapsing of restrictions with respect to any portion of the Restricted Stock
granted hereunder, the Grantee shall forfeit any rights to the shares of
Restricted Stock with respect to which the restrictions have not lapsed and
shall have no further rights thereto.

 

(c)  
Upon forfeiture of any shares of Restricted Stock, to the extent the
Grantee paid the purchase price of such forfeited shares in a manner other than
services rendered, the Company shall repurchase such shares from the Grantee at
a price per share equal to the lesser of (i) the Fair Market Value of such
shares at the time of forfeiture or (ii) the price Grantee paid for such
shares initially.

 

9.                                       Taxes.  Pursuant to Section 9(d) of the
Plan, the Company (or Subsidiary, as the case may be) may require the Grantee
to remit to the Company (or Subsidiary, as the case may be) in cash an amount
sufficient to satisfy any federal, state and local tax withholding requirements
related to the Award.  With the approval of
the Administrator, the Grantee may satisfy the foregoing requirement by
electing to have the Company withhold from delivery shares of Stock or by
delivering shares of Stock already owned by the Grantee for at least 6 months,
in each case, having a value equal to the minimum amount of tax required to be
withheld.  Such shares shall be valued at
their Fair Market Value on the date on which the amount of tax to be withheld
is determined, and fractional share amounts shall be settled in cash.  Such an election may be made with respect to
all or any portion of the shares of Stock to be delivered pursuant to the
Award.

 

If no federal,
state or local tax withholding is required, the foregoing paragraph of this Section 9
shall not apply and the Grantee shall be responsible for the payment of all tax
liability.

 

The Grantee
shall promptly notify the Company of any election made pursuant to Section 83(b) of
the Internal Revenue Code of 1986, as amended.

 

10.                                 Adjustments.  The Award and all rights and obligations under
this Award Agreement are subject to Section 3 of the Plan.

 

11.                                 Notices.  Whenever any notice is required or permitted
hereunder, such notice shall be in writing and shall be given by personal
delivery or first class, certified or registered mail with return receipt
requested.  Any notice required or
permitted to be delivered hereunder shall be deemed to have been duly given on
the date which it is personally delivered or, whether actually received or not,
on the third business day after mailing to the respective parties named below.

 

 

	
  If to the
  Company:

  	
  Zenith
  National Insurance Corp.

  
	
   

  	
  21255 Califa
  St

  
	
   

  	
  Woodland
  Hills, CA 91367

  
	
   

  	
  Attn.:
  William J. Owen, Sr. Vice President

  
	
   

  	
  and Chief
  Financial Officer

  
	
   

  	
  Facsimile:
  818-592-0480

  
	
   

  	
   

  
	
  If to the
  Grantee:

  	
  [Name of
  Grantee]

  
	
   

  	
  [Address]

  

 

Either party
may change such party’s address for notices by duly giving notice pursuant
hereto.

 

12.                                 Compliance
with Laws.

 

(a)  
Shares of Stock shall not be issued pursuant to the Award granted
hereunder unless the issuance or delivery of such shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the
Securities Act of 1933 (the “Securities Act”)
and the Exchange Act, shall be subject to the requirements of any stock
exchange upon which the Stock may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such
compliance.  The Company shall be under
no obligation to effect the registration pursuant to the Securities Act, of any
interests in the Plan or any shares of Stock to be issued hereunder or to
effect similar compliance under any state laws.

 

(b)  
All certificates for shares of Stock delivered under the Plan shall be
subject to such stop-transfer orders and other restrictions as the
Administrator may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any stock exchange upon
which the Stock may then be listed, and any applicable federal or state
securities law, and the Administrator may cause a legend or legends to be
placed on any such certificates to make appropriate reference to such
restrictions.  The Administrator may
require, as a condition of the issuance or delivery of certificates evidencing
shares of Stock pursuant to the terms hereof, that the recipient of such shares
make such agreements and representations as the Administrator, in its sole
discretion, deems necessary or desirable.

 

13.                                 Protections
Against Violations of Agreement.  No
purported sale, assignment, mortgage, hypothecation, transfer, pledge,
encumbrance, gift, transfer in trust (voting or other) or other disposition of,
or creation of a security interest in or lien on, any of the shares of Stock
underlying the Award by any holder thereof in violation of the provisions of
this Award Agreement, the Plan or the certificate of incorporation or the
bylaws of the Company, will be valid, and the Company will not transfer any
such shares on its books nor will any such shares be entitled to vote, nor will
any dividends be paid thereon, unless and until there has been full compliance
with such provisions to the satisfaction of the Company.  The foregoing restrictions are in addition to
and not in lieu of any other remedies, legal or equitable, available to enforce
said provisions.

 

14.                                 Failure
to Enforce Not a Waiver.  The failure
of the Company to enforce at any time any provision of the Award Agreement
shall in no way be construed to be a waiver of such provision or of any other
provision hereof.

 

15.                                 Governing
Law.  The Award Agreement shall be
governed by and construed according to the laws of the State of Delaware
without regard to its principles of conflict of laws.

 

 

16.                                 Incorporation
of the Plan.   The Plan, as it exists
on the date of the Award Agreement and as amended from time to time, is hereby
incorporated by reference and made a part hereof, and the Award and this Award
Agreement shall be subject to all terms and conditions of the Plan.  In the event of any conflict between the
provisions of the Award Agreement and the provisions of the Plan, the terms of
the Plan shall control, except as expressly stated otherwise.  The term “Section” generally refers to
provisions within the Plan (except where denoted otherwise); provided, however,
the term “Paragraph” shall refer to a provision of this Award Agreement.

 

17.                                 Amendments.  This Award Agreement may be amended or
modified at any time, but only by an instrument in writing signed by each of
the parties hereto.

 

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

 

19.                                 Invalid
Provision.   The invalidity or
unenforceability of any particular provision hereof shall not affect the other
provisions hereof, and this Award Agreement shall be construed in all respects
as if such invalid or unenforceable provision had been omitted.

 

20.                                 Entire
Agreement.    This Award Agreement
and the Plan, as it exists on the date of this Award Agreement and as amended
from time to time, contain the entire agreement and understanding of the
parties hereto with respect to the subject matter contained herein and therein
and supersede all prior communications, representations and negotiations in respect
thereto.

 

21.                                 Captions
and Headings.   The captions and
headings of the paragraphs and subparagraphs of this Award Agreement are
provided for convenience only and are not to serve as a basis for interpreting
or construing this Award Agreement.

 

22.                                 Agreement
Not a Contract of Employment. 
Neither the Plan, the granting of the Award, the Award Agreement nor any
other action taken pursuant to the Plan shall constitute or be evidence of any
agreement or understanding, express or implied, that the Grantee has a right to
be employed by, or to provide services as a director, consultant or advisor to,
the Company, any Subsidiary or affiliate thereof for any period of time or at
any specific rate of compensation.

 

23.                                 Authority
of the Administrator.  The Administrator
shall have full authority to interpret and construe the terms of the Plan and
the Award Agreement.  The determination
of the Administrator as to any such matter of interpretation or construction
shall be final, binding and conclusive.

 

24.                                 Binding
Effect.  The Award Agreement shall
apply to and bind the Grantee and the Company and their respective permitted
assignees or transferees, heirs, legatees, executors, administrators and legal
successors.

 

25.                                 Tax
Representation.  The Grantee has
reviewed with his or her own tax advisors the federal, state, local and foreign
tax consequences of the transactions contemplated by this Award Agreement.  The Grantee is relying solely on such
advisors and not on any statement or representations of the Company or any of
its agents.  The Grantee understands that
he or she (and

 

 

not the Company) shall be
responsible for any tax liability that may arise as a result of the
transactions contemplated by the Award Agreement.

 

26.                                 Acceptance.  The Grantee hereby acknowledges receipt of a
copy of the Plan, the prospectus and this Award Agreement.  Grantee has read and understands the terms
and provisions thereof, and accepts the Award subject to all the terms and
conditions of the Plan and the Award Agreement.

 

IN WITNESS
WHEREOF, the parties hereto have executed and delivered the Award Agreement as
of the day and year first above written.

 

 

	
   

  	
  ZENITH
  NATIONAL INSURANCE CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Social
  Security No.:

  	
   

  	
   

  
	
   

  	
  Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]