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Exhibit 10.22  

 
  NINTH AMENDMENT TO
  CREDIT AGREEMENT    
  

        THIS NINTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") dated as of July 24, 2002 is entered into between ZENITH NATIONAL INSURANCE CORP. (the
"Company") and BANK OF AMERICA, N.A. (the "Bank"). 

W I T N E S S E T H  

        WHEREAS, the Company and the Bank are parties to that certain Credit Agreement dated as of July 24, 1997 (as amended, herein called the "Credit Agreement";
terms used but not otherwise defined herein are used herein as defined in the Credit Agreement); and 

        WHEREAS,
the Company and the Bank desire to amend the Credit Agreement on the terms and conditions set forth herein; 

        NOW,
THEREFORE, in consideration of the premises, and intending to be legally bound hereby, the Company and the Bank hereby agree as follows: 

        SECTION
1.    AMENDMENTS.    

        Subject
to and upon the terms and conditions hereof and in reliance on the Company's warranties set forth in Section 2 below, as of
the date hereof the Credit Agreement shall be amended as follows: 

        (a)  The
definition of "Tranche A Termination Date" set forth in Section 1.1 of the Credit Agreement shall be amended
by deleting the reference to "July 24, 2002" contained therein and replacing it with "September 30, 2002". 

        (b)  The
definition of "Tranche B Termination Date" set forth in Section 1.1 of the Credit Agreement shall be amended
by deleting the reference to "July 24, 2002" contained therein and replacing it with "September 30, 2002". 

        SECTION
2.    WARRANTIES.    

        To
induce the Bank to enter into this Amendment, the Company warrants to the Bank as of the date hereof that: 

        (a)  After
giving effect to this Amendment, all representations and warranties contained in the Credit Agreement and the Loan Documents are true and correct in all material
respects on and as of the date hereof (except to the extent such representations and warranties expressly refer to an earlier date). 

        (b)  After
giving effect to this Amendment, no Default or Event of Default has occurred and is continuing. 

        (c)  The
execution, delivery and performance by the Company of this Amendment have been duly authorized by all necessary corporate and other action and do not and will not
require any registration with, consent or approval of, notice to or action by, any Person (including any governmental authority) in order to be effective and enforceable. The Credit Agreement as
modified by this Amendment constitutes the legal, valid and binding obligation of the Company, enforceable against it in accordance with the Credit Agreement's terms, without defense, counterclaim or
offset. 

        SECTION
3.    EFFECTIVENESS.    

        This
Amendment shall be effective upon the delivery this Amendment, duly executed by the Company and the Bank. 

        SECTION
4.    GENERAL.    

        (a)  As
hereby modified, the Credit Agreement shall remain in full force and effect and is hereby ratified, approved and confirmed in all respects. 

        (b)  The
Company acknowledges and agrees that the execution and delivery by the Bank of this Amendment shall not be deemed to create a course of dealing or otherwise obligate
the Bank to execute similar modifications under the same or similar circumstances in the future. 

        (c)  This
Amendment may be executed in any number of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same Amendment. 

Delivered
at Chicago, Illinois, as of the date and year first above written. 

	 	 	BANK OF AMERICA, N.A.
	

 	
 	

 	

 
	 	 	By:	/s/  JOAN L. D'AMICO      

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

 	
 	

 	

 
	 	 	ZENITH NATIONAL INSURANCE CORP.
	

 	
 	

 	

 
	 	 	By:	/s/  STANLEY R. ZAX      

	 	 	Name:	Stanley R. Zax
	 	 	Title:	Chairman & President
	

 	
 	

 	

 

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NINTH AMENDMENT TO CREDIT AGREEMENT<PAGE>
                                                                    Exhibit 10.8

                        TRAVELERS PROPERTY CASUALTY CORP

                                COMPENSATION PLAN

                     FOR NON-EMPLOYEE DIRECTORS (THE "PLAN")

SECTION 1. ELIGIBILITY. Each member of the Board of Directors of the Travelers
Property Casualty Corp. (the "Company") or one of its subsidiaries, if so
designated by the Board of Directors, who is not an employee of the Company or
any of its subsidiaries (an "Eligible Director") is eligible to participate in
the Plan.

SECTION 2. ADMINISTRATION. The Plan shall be administered, construed and
interpreted by the Board of Directors of the Company. Pursuant to such
authorization, the Board of Directors shall have the responsibility for carrying
out the terms of the Plan, including but not limited to the determination of the
amount and form of payment of the annual retainer and any additional fees to be
paid to all Eligible Directors (the "Annual Fixed Director Compensation"). To
the extent permitted under the securities laws applicable to compensation plans
including, without limitation, the requirements of Section 16(b) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") or under the
Internal Revenue Code of 1986, as amended (the "Code"), the Personnel,
Compensation and Directors Committee of the Board of Directors, or a
subcommittee of the Personnel, Compensation and Directors Committee, may
exercise the discretion granted to the Board under the Plan, provided that the
composition of such Committee or subcommittee shall satisfy the requirements of
Rule 16b-3 under the Exchange Act, or any successor rule or regulation. The
Board of Directors may also designate a plan administrator to manage the record
keeping and other routine administrative duties under the Plan.

SECTION 3. STOCK OPTIONS. In addition to Annual Fixed Director Compensation, the
Board of Directors may make an annual grant to Eligible Directors of options
("Annual Stock Option Grant") to purchase common stock, par value $.01 of the
Company ("Common Stock"). The Annual Stock Option Grant shall be made under, and
pursuant to the terms and conditions of, the Travelers Property Casualty Corp.
2002 Stock Incentive Plan or any successor plan (the "Stock Incentive Plan").

SECTION 4. ANNUAL FIXED DIRECTOR COMPENSATION. Payment of Annual Fixed Director
Compensation shall be made quarterly, on the first business day following the
end of the quarter for which the compensation is payable, to each Eligible
Director who served as a director during at least one-half of such quarter and
who was a director on the last day of such quarter.

                  Each Eligible Director may elect to receive up to fifty
percent (50%) of each quarterly payment of Annual Fixed Director Compensation in
cash. The balance of each quarterly payment shall be paid in shares of Common
Stock or in the form of stock options, as each Eligible Director elects. Payment
in stock options shall be under the same plan and pursuant to the same terms and
conditions as the Annual Stock Option Grant. If an Eligible

                                       1
<PAGE>
Director does not elect to receive a percentage of his or her Annual Fixed
Director Compensation in cash or stock options, such compensation shall be paid
entirely in Common Stock.

                  The number of shares of Common Stock to be transferred to the
Eligible Director in respect of each quarterly installment of Annual Fixed
Director Compensation shall be determined in the manner set forth in paragraph
6(a), and such shares shall not be transferred or sold by such Eligible Director
for a period of six months following the date of grant.

                  SECTION 5. ELECTION TO DEFER.

                          (a) TIME OF ELECTION. As soon as practicable prior to
the beginning of a calendar year, an Eligible Director may elect to defer
receipt of the Common Stock component of Annual Fixed Director Compensation by
directing that such Common Stock which otherwise would have been payable in
accordance with paragraph 3 above during such calendar year and succeeding
calendar years shall be credited to a deferred compensation account (the
"Director's Account"). Under a valid election, such deferred compensation shall
be payable in accordance with paragraph 7(a) below. Any person who shall become
an Eligible Director during any calendar year, and who was not an Eligible
Director of the Company (or its subsidiaries) prior to the beginning of such
calendar year, may elect, within thirty (30) days after his or her term begins,
to defer payment of the Common Stock component of his or her Annual Fixed
Director Compensation earned during the remainder of such calendar year and for
succeeding calendar years. The cash component of Annual Fixed Director
Compensation may not be deferred.

                          (b) FORM AND DURATION OF ELECTION. An election to
defer the Common Stock component of Annual Fixed Director Compensation shall be
made by written notice executed by the Eligible Director and filed with the
Secretary of the Company. Such election shall continue until the Eligible
Director terminates such election by subsequent written notice filed with the
Secretary of the Company. Any such election to terminate deferral shall become
effective for the calendar quarter following receipt of the election form by the
Company and shall only be effective with respect to the Common Stock component
of Annual Fixed Director Compensation payable for services rendered as an
Eligible Director thereafter. Amounts credited to the Director's Account prior
to the effective date of termination shall not be affected by such termination
and shall be distributed only in accordance with the terms of the Plan.

                          (c) CHANGE OF ELECTION. An Eligible Director who has
terminated his or her election to defer the Common Stock component of Annual
Fixed Director Compensation hereunder may thereafter make another election in
accordance with paragraph 5(a) to defer such compensation for the calendar year
subsequent to the filing of such election and succeeding calendar years.

                          SECTION 6. THE DIRECTOR'S ACCOUNT. Shares of Common
Stock that an Eligible Director has elected to defer under the Plan shall be
credited to the Director's Account as follows:

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<PAGE>
                          (a) As of each date that a quarterly installment of
the Annual Fixed Director Compensation would otherwise be payable, there shall
be credited to the Director's Account the number of full shares of the Company's
Common Stock obtained by multiplying the percentage such Eligible Director has
elected to receive in shares of Common Stock by the total amount of Annual Fixed
Director Compensation allocable to such calendar quarter, and then by dividing
the result by the average of the closing price of the Company's Common Stock on
the New York Stock Exchange Inc. on the last ten (10) trading days of the
calendar quarter for which such Common Stock would otherwise be payable. If the
applicable percentage of Annual Fixed Director Compensation for the calendar
quarter is not evenly divisible by such average closing price of the Company's
Common Stock, the balance shall be credited to the Director's Account in cash.

                          (b) At the end of each calendar quarter, there shall
be credited to the Director's Account an amount equal to the cash dividends that
would have been paid on the number of shares of Common Stock credited to the
Director's Account as of the dividend record date, if any, occurring during such
calendar quarter as if such shares had been shares of issued and outstanding
Common Stock on such record date, and such amount shall be treated as reinvested
in additional shares of Common Stock on the dividend payment date.

                          (c) Cash amounts credited to the Director's Account
pursuant to subparagraphs (a) and (b) above shall accrue interest commencing
from the date the cash amounts are credited to the Director's Account at a rate
per annum to be determined from time to time by the Company. Amounts credited to
the Director's Account shall continue to accrue interest until distributed in
accordance with the Plan. An Eligible Director may be given the opportunity make
a written election to treat the existing cash balance and interest accrued
thereon as invested in additional shares of Common Stock. The timing of the
effectiveness of such election shall be subject to the Company's discretion.

                          (d) An Eligible Director shall not have any interest
in the cash or Common Stock in his or her Director's Account until such cash or
Common Stock is distributed in accordance with the Plan.

                  SECTION 7. DISTRIBUTION FROM ACCOUNTS.

                          (a) FORM OF ELECTION. At the time an Eligible Director
makes an election to defer receipt of Annual Fixed Director Compensation
pursuant to paragraphs 5(a) or 5(c), such Director shall also file with the
Secretary of the Company a written election with respect to the distribution of
the aggregate amount of cash and shares credited to the Director's Account
pursuant to such election. An Eligible Director may elect to receive such amount
in one lump-sum payment or in a number of approximately equal annual
installments (provided the payout period does not exceed 15 years). The lump-sum
payment or the first installment shall be paid as of (i) the first business day
of any calendar year subsequent to the date the Annual Fixed Director
Compensation would otherwise be payable, as specified by the Director, (ii) the
first business day of the calendar quarter immediately following the cessation
of the Eligible Director's service as a director of the Company or (iii) the
earlier of (i) or (ii), as the Eligible

                                       3
<PAGE>
Director may elect. Subsequent installments shall be paid as of the first
business day of each succeeding annual installment period until the entire
amount credited to the Director's Account shall have been paid. A cash payment
will be made with the final installment for any fraction of a share of Common
Stock credited to the Director's Account.

                          (b) ADJUSTMENT OF METHOD OF DISTRIBUTION. An Eligible
Director participating in the Plan may, prior to the beginning of any calendar
year, file another written election with the Secretary of the Company electing
to change the date and/or method of distribution of the aggregate amount of cash
and shares of Common Stock to be credited to the Director's Account for services
rendered as a director commencing with such calendar year. Amounts credited to
the Director's Account prior to the effective date of such change (the "Prior
Amounts") shall not be affected by such change and shall be distributed only in
accordance with the election then in effect with respect to the Prior Amounts
except as specified in this paragraph. An Eligible Director may elect to defer
the date on which Prior Amounts are to be paid, and/or extend the payout period
if a written election to effect such change is filed with the Secretary of the
Company at least one (1) year before such change is to take effect. An Eligible
Director may also elect to accelerate the date on which the Prior Amounts are to
be paid and/or shorten the payout period if a written election to effect such
change is filed with the Secretary of the Company at least one (1) year before
such change is to effect. Notwithstanding the foregoing, in the event an
Eligible Director suffers a severe financial hardship outside the control of
such Director, as determined by the Company, the Eligible Director may elect to
advance or defer the date of distribution of his or her Director's Account or
change the method of distribution thereof.

                          (c) CHANGE OF CONTROL. Notwithstanding anything to the
contrary contained herein, upon a "Change of Control" (as defined in the Stock
Incentive Plan), the full number of shares of Common Stock and cash in each
Director's Account shall be immediately funded and be distributable on the later
of the date six months and one day following the "Change of Control" or the
distribution date(s) previously elected by an Eligible Director.

      SECTION 8. DISTRIBUTION ON DEATH. If an Eligible Director should die
before all amounts credited to the Director's Account shall have been paid in
accordance with the election referred to in paragraph 6, the balance in such
Director's Account as of the date of such Director's death shall be paid
promptly following such Director's death, in accordance with the method of
payment elected by the Eligible Director, to the beneficiary designated in
writing by such Director. Such balance shall be paid to the estate of the
Eligible Director if (a) no such designation has been made or (b) the designated
beneficiary shall have predeceased the Director and no further beneficiary
designation has been made.

                  SECTION 9. MISCELLANEOUS.

                          (a) The right of an Eligible Director to receive any
amount in the Director's Account shall not be transferable or assignable by such
Director, except by will or by

                                       4
<PAGE>
the laws of descent and distribution, and no part of such amount shall be
subject to attachment or other legal process.

                          (b) Except as otherwise set forth herein, the Company
shall not be required to reserve or otherwise set aside funds or shares of
Common Stock for the payment of its obligations hereunder. The Company shall
make available as and when required a sufficient number of shares of Common
Stock to meet the requirements arising under the Plan.

                          (c) The establishment and maintenance of, or
allocation and credits to, the Director's Account shall not vest in the Eligible
Director or his beneficiary any right, title or interest in and to any specific
assets of the Company. An Eligible Director shall not have any dividend or
voting rights or any other rights of a stockholder (except as expressly set
forth in paragraph 6(b) with respect to dividends and as provided in
subparagraph (f) below) until the shares of Common Stock credited to a
Director's Account are distributed. The rights of an Eligible Director to
receive payments under this Plan shall be no greater than the right of an
unsecured general creditor of the Company.

                          (d) The Plan shall continue in effect until terminated
by the Board of Directors. The Board of Directors may at any time amend or
terminate the Plan; provided, however, that (i) no amendment or termination
shall impair the rights of an Eligible Director with respect to amounts then
credited to the Director's Account; (ii) the provisions of the Plan relating to
eligibility, the amount and price of securities to be awarded, the timing of and
the amount of Annual Fixed Director Compensation awards and Annual Stock Option
Grant shall not be amended more than once every six months, other than to
comport with changes in the Internal Revenue Code of 1986, as amended, the
Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder; and (iii) no amendment shall become effective without approval of
the stockholders of the Company if such stockholder approval is required to
enable the Plan to satisfy applicable state or Federal statutory or regulatory
requirements.

                          (e) Each Eligible Director participating in the Plan
will receive an annual statement indicating the amount of cash and number of
shares of Common Stock credited to the Director's Account, as well as the number
of outstanding stock options, as of the end of the preceding calendar year.

                          (f) If adjustments are made to outstanding shares of
Common Stock as a result of stock dividends, stock splits, recapitalizations,
mergers, consolidations and similar transactions, an appropriate adjustment
shall be made in the number of shares of Common Stock credited to the Director's
Account.

                          (g) Shares of Common Stock that may be granted under
the Plan shall be subject to adjustment upon the occurrence of adjustments to
the outstanding Common Stock described in paragraph 9(f) hereof.

                          (h) The validity, construction, interpretation,
administration and effect of the Plan and of its rules and regulations, and
rights relating to the Plan, shall be determined

                                       5
<PAGE>
solely in accordance with the laws of the State of Connecticut, without regard
to the conflicts of laws provisions thereof.

                          (i) All claims and disputes between an Eligible
Director and the Company arising out of the Plan shall be submitted to
arbitration in accordance with the then current arbitration policy of the
Company. Notice of demand for arbitration shall be given in writing to the other
party and shall be made within a reasonable time after the claim or dispute has
arisen. The award rendered by the arbitrator shall be final, and judgment may be
entered upon it in accordance with applicable law in any court having
jurisdiction thereof. The provisions of this Section 9(i) shall be specifically
enforceable under applicable law in any court having jurisdiction thereof.

                          (j) If any term or provision of this Plan or the
application thereof to any person or circumstances shall, to any extent, be
invalid or unenforceable, then the remainder of the Plan, or the application of
such term or provision to persons or circumstances other than those as to which
it is held invalid or unenforceable, shall not be affected thereby, and each
term and provision hereof shall be valid and be enforced to the fullest extent
permitted by applicable law.

                                       6

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