Change in Terms Agreement between Zenith National Insurance Corp. and City National Bank, NA (August 11, 2003)
Zenith National Insurance Corp. and City National Bank, NA have agreed to extend the maturity date of a $20,000,000 loan originally due on August 1, 2003, to August 1, 2004. All other terms of the original loan remain unchanged and in effect. The agreement does not release any parties from their obligations under the original loan unless expressly stated in writing by the lender. This extension is formalized without waiving the lender’s rights or obligating them to future changes.
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Exhibit 10.1
CHANGE IN TERMS AGREEMENT
| Principal $20,000,000.00 | Loan Date 08-11-2003 | Maturity 08-01-2004 | Loan No 11552 | Call/Cell | Account 209600 | Officer JM | Initials | |||||||
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "***" has been omitted due to text length limitations. | ||||||||||||||
| Borrower: | ZENITH NATIONAL INSURANCE CORP., A DELAWARE CORPORATION 21255 CALIFA AVENUE WOODLAND HILLS, CA 91367 | Lender: | City National Bank, NA Westside Commercial Banking Services #674000 400 North Roxbury Drive Beverly Hills, CA 90210 |
| Principal Amount: $20,000,000.00 | Initial Rate: 4.000% | Date of Agreement: August 11, 2003 |
DESCRIPTION OF EXISTING INDEBTEDNESS. Promissory Notes ("Note") dated August 9, 2002, in favor of City National Bank, NA ("Lender"), executed by Zenith National Insurance Corp., a Delaware corporation ("Borrower") in the original principal amount of $20,000,000.00, payable in full on August 1, 2003, subject to any installment maturities in the Note. The principal balance on the Note as of August 11, 2003 is $00.00.
DESCRIPTION OF CHANGE IN TERMS. Maturity date of the Note is hereby extended to August 1, 2004.
CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreement evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of the Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions.
| BORROWER: | ||||
ZENITH NATIONAL INSURANCE CORP., A DELAWARE CORPORATION | ||||
By: | /s/ STANLEY R. ZAX STANLEY R. ZAX, | |||
| BOARD CHAIRMAN/PRESIDENT of ZENITH NATIONAL INSURANCE CORP., A DELAWARE CORPORATION | ||||
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- Exhibit 10.1
