Document:

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                                                                    EXHIBIT 10.1

[STATE STREET LOGO]                          [LETTER HEAD OF EDWARD M. ANDERSON]

As of September 13, 2002

Selective Insurance Company of America
Selective Insurance Group, Inc.
40 Wantage Avenue
Branchville, NJ 07890-1000

         RE: Loan Facility

Ladies and Gentlemen:

         State Street Bank and Trust Company (the "Bank") has made available to
Selective Insurance Company of America, a corporation organized under the laws
of New Jersey (the "Company") and Selective Insurance Group, Inc., a corporation
organized under the laws of New Jersey (the "Parent") (collectively, the
Company and the Parent are hereinafter referred to as the "Borrower") an
aggregate $25,000,000 revolving line of credit (the "Line of Credit") as
described in a letter agreement dated March 3, 1997 (as amended, the "Letter
Agreement"). All obligations of the Borrower arising under the Line of Credit
are evidenced by a promissory note in the original principal amount of
$25,000,000 dated March 3, 1997 made by the Borrower to the order of the Bank
(as amended, the "Note").

         The Borrower has requested, and the Bank has agreed pursuant to the
terms hereof, to consent to the issuance by the Parent of certain senior
convertible notes and to make certain other amendments to the Letter Agreement
as set forth herein below. Therefore, for good and valuable consideration, the
receipt of which is hereby acknowledged, the Borrower and the Bank hereby agree
as follows:

         I.       Consent to Incurrence of Indebtedness

         The Borrower has advised the Bank that the Parent plans to incur
certain Indebtedness consisting of the issuance by the Parent of certain senior
convertible notes in an aggregate principal amount not to exceed $115,000,000
(the "New Notes"). The provisions of Section 8(c) of the Letter Agreement
prohibit either Borrower from creating, incurring, assuming or guaranteeing any
Indebtedness (with certain exceptions not relevant here) without the prior
written consent of the Bank. The Bank hereby consents to the issuance of the New
Notes in an aggregate principal amount up to $115,000,000. This consent shall be
effective solely for the matters described above and shall not be deemed to be a
waiver, consent or amendment of any other term or condition of the Letter
Agreement, or a waiver of any rights or remedies that the Bank may now or
hereafter exercise under the Letter Agreement, the Note or any other document,
instrument or agreement heretofore or hereafter executed in connection
therewith.

                                       25
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                                                                    EXHIBIT 10.1

Selective Insurance Company
of America
Selective Insurance Group, Inc.
As of September 13, 2002
Page 2

         II.      Amendments to Letter Agreement

         1.       Paragraph 8(a) of the Letter Agreement is hereby amended by
restating such Paragraph 8(a) to read in its entirely as follows:

         "a)      That the Parent shall maintain a ratio of Indebtedness of the
         Parent and its Subsidiaries to Capital of not more than 0.35 to 1.00
         at all times;"

         2.       Paragraph 8(c) of the Letter Agreement is hereby amended by
inserting, following the word "guarantee" appearing in such paragraph, the
words "any Indebtedness".

         III.     Miscellaneous

         1.       As amended hereby, all terms and conditions of the Letter
Agreement and Note remain in full force and effect and are ratified and
affirmed as of the date hereof and extended to give effect to the terms
hereof.

         2.       Each Borrower represents and warrants to the Bank as follows:
(a) no Event of Default has occurred and is continuing on the date hereof under
the Letter Agreement or the Note; (b) each of the representations and
warranties of the Borrowers contained in Paragraph 9 of the Letter Agreement is
true and correct in all material respects on and as of the date of this letter
agreement (this "Consent and Amendment"); (c) the execution, delivery and
performance of each of this Consent and Amendment, the Letter Agreement, as
amended hereby, and the Note (collectively, the "Amended Documents") (i) are,
and will be, within its corporate power and authority, (ii) have been authorized
by all necessary corporate proceedings, (iii) do not, and will not, require any
consents or approvals including from any governmental authority other than
those which have been received, (iv) will not contravene any provision of, or
exceed any limitation contained in, the charter documents or by-laws or other
organizational documents of such Borrower or any law, rule or regulation
applicable to such Borrower, (v) do not constitute a default under any other
agreement, order or undertaking binding on such Borrower; (d) each of the
Amended Documents constitutes the legal, valid, binding and enforceable
obligation of such Borrower, except as the same may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws affecting the enforcement
of creditors' rights generally and by general equitable principles; and (e) if
the proceeds of any Revolving Loan are utilized to finance the purchase of the
stock of the Parent, such use will be in compliance with Regulations U and X of
the Board of Governors of the Federal Reserve System.

         3.       This Consent and Amendment shall constitute an agreement
executed under seal to be governed by the laws of The Commonwealth of
Massachusetts.

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                                                                    EXHIBIT 10.1

Selective Insurance Company
of America
Selective Insurance Group, Inc.
As of September 13, 2002
Page 3

         4.  This Consent and Amendment may be executed in counterparts each of
which shall be deemed to be an original document.

                                               Sincerely,

                                               STATE STREET BANK AND
                                                TRUST COMPANY

                                               By:/s/Edward M. Anderson
                                                  --------------------------
                                                  Edward M. Anderson
                                                  Vice President

Acknowledged and accepted:

SELECTIVE INSURANCE COMPANY OF AMERICA

By:    /s/ Dale A. Thatcher
       ------------------------------
Title: SVP, CFO & Treasurer

By:    /s/ Jennifer W. Diberardino
       ------------------------------
Title: AVP, Assistant Treasurer

                                       27
<PAGE>
                                                                    EXHIBIT 10.1

Selective Insurance Company
of America
Selective Insurance Group, Inc.
As of September 13, 2002
Page 4

SELECTIVE INSURANCE GROUP, INC.

By:    /s/ Dale A. Thatcher
       ------------------------------
Title: SVP, CFO & Treasurer

By:    /s/ Jennifer W. Diberardino
       ------------------------------
Title: AVP, Assistant Treasurer

                                       28<PAGE>

                                                                    EXHIBIT 10.2

                       SIXTH AMENDMENT TO CREDIT AGREEMENT

         THIS SIXTH AMENDMENT TO CREDIT AGREEMENT, dated as of the 13th day of
September, 2002 (this "Amendment"), is made among SELECTIVE INSURANCE GROUP,
INC., a New Jersey corporation with its principal offices in Branchville, New
Jersey (the "Parent"), and SELECTIVE INSURANCE COMPANY OF AMERICA, a New Jersey
corporation with its principal offices in Branchville, New Jersey ("SICA," and
collectively with the Parent, the "Borrowers"), and WACHOVIA BANK, NATIONAL
ASSOCIATION (formerly known as First Union National Bank) (the "Lender").
Capitalized terms used but not defined herein shall have the meanings given to
such terms in the Credit Agreement referred to below, as amended by this
Amendment.

                                    RECITALS

         A. The Borrowers and the Lender are parties to a Credit Agreement,
dated as of October 22, 1999, as amended (the "Credit Agreement"), providing for
the availability of a revolving credit facility to the Borrowers upon the terms
and conditions set forth therein.

         B. The Parent plans to issue debt securities in an aggregate principal
amount between approximately $100,000,000 and approximately $115,000,000 (the
"Debt Issuance") and to use a portion of the proceeds thereof to repay certain
existing private placement Indebtedness as and when due. The Borrowers have
requested a modification of one of the financial covenants contained in the
Credit Agreement in order to permit this Debt Issuance, and the Lender has
agreed to such modification upon the terms and conditions set forth herein.

                             STATEMENT OF AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, for themselves
and their successors and assigns, agree as follows:

                                   ARTICLE I

                         AMENDMENT TO CREDIT AGREEMENT

         1.1      New Definition. Section 1.1 of the Credit Agreement is hereby
amended by adding the following definition thereto in appropriate alphabetical
order:

         "        "Sixth Amendment" shall mean the Sixth Amendment to Credit
         Agreement, dated as of September 13, 2002, among the Borrowers and the
         Lender, which amends this Agreement."

         1.2      Amended Definition. Section 1.1 of the Credit Agreement is
hereby further amended by replacing the definition of the term "Agreement," as
currently set forth therein, with the definition as set forth below:

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         "        "Agreement" shall mean this Credit Agreement, as amended by
         the First Amendment, the Second Amendment, the Third Amendment, the
         Fourth Amendment, the Fifth Amendment and the Sixth Amendment and as
         further amended, modified or supplemented from time to time."

         1.3      Leverage Ratio.  Section 6.2 of the Credit Agreement is
amended and restated as follows:

         "        Section 6.2 Maximum Consolidated Debt to Total
         Capitalization. The ratio of Consolidated Indebtedness to Consolidated
         Total Capital as of any date of determination will not be greater than
         35%."

         1.4      Notice Provision. Section 9.5(b) of the Credit Agreement is
amended and restated as follows:

         "        (b)      if to the Lender, to it at the address set forth on
         its signature page to the Sixth Amendment;"

                                   ARTICLE II

                                 EFFECTIVENESS

         This Amendment shall become effective on the date on which the Debt
Issuance is consummated (the "Sixth Amendment Effective Date"), provided that
the following conditions shall have been satisfied as of such date:

         2.1      Representations and Warranties; Officer's Certificate. The
following shall be true and the Lender shall have received a certificate,
signed by the president, chief executive officer or chief financial officer of
each Borrower, dated the Sixth Amendment Effective Date, in form and substance
satisfactory to the Lender, certifying that (i) each of the representations and
warranties of such Borrower contained in this Amendment, the Credit Agreement
and the other Credit Documents will be true and correct on and as of the Sixth
Amendment Effective Date and after giving effect to this Amendment with the
same effect as if made on and as of such date (except to the extent any such
representation or warranty is expressly stated to have been made as of a
specific date, in which case such representation or warranty is true and
correct as of such date), and (ii) on and as of the Sixth Amendment Effective
Date and after giving effect to this Amendment, no Default or Event of Default
will have occurred and be continuing.

         2.2      Secretary's Certificates. With respect to each Borrower, the
Lender shall have received a certificate, signed by the secretary or an
assistant secretary of such Borrower, dated the Sixth Amendment Effective Date,
in form and substance satisfactory to the Lender, certifying that (i) since the
"Fifth Amendment Effective Date," as defined in the Fifth Amendment, there has
been no amendment to the articles of incorporation or bylaws of such Borrower
(or, if and to the extent any of the foregoing have been amended since such
date, a statement to such effect, attaching copies thereof), and (ii) attached
thereto is a true and complete copy of resolutions adopted by the board of
directors of such Borrower authorizing the execution, delivery and performance
of this Amendment.

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         2.3      Fees and Expenses. The Borrowers shall have paid all fees and
expenses of the Lender required under the Credit Agreement to have been paid on
or prior to the Sixth Amendment Effective Date, including without limitation
the reasonable fees and expenses of counsel to the Lender.

         2.4      No Material Adverse Change. Since December 31, 2001, there
shall not have occurred any Material Adverse Change.

         2.5      Other Documents. The Lender shall have received such other
documents, certificates, opinions and instruments in connection with this
Amendment as it shall have reasonably requested.

         2.6      Debt Offering. The Parent shall have completed the Debt
Issuance and shall have provided to the Lender evidence that net cash proceeds
therefrom have been deposited into escrow and may be used by the Parent only to
repay existing debt securities as and when due, all on terms and conditions
satisfactory to the Lender. Such escrowed net cash proceeds shall be in the
minimum aggregate amount of $60,000,000; provided, however, that if the gross
proceeds of the Debt Issuance were greater than $100,000,000, the escrowed cash
proceeds shall be in the minimum aggregate amount of the sum of (i) $60,000,000
plus (ii) 80% of the amount by which such gross proceeds exceeded $100,000,000.

         2.7      Amendment to Credit Facility. The Lender shall have received a
fully executed copy of an amendment to that certain Credit Agreement dated as
of March 3, 1997 between Parent and State Street Bank and Trust Company, as
amended, modifying the maximum permitted leverage ratio therein to 35%.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         Each of the Borrowers hereby represents and warrants to the Lender
that, after giving effect to this Amendment:

         (a)      Each of the representations and warranties of such Borrower
contained in the Credit Agreement is true and correct on and as of the date
hereof with the same effect as if made on and as of the date hereof (except to
the extent any such representation or warranty is expressly stated to have been
made as of a specific date, in which case such representation or warranty is
true and correct as of such date).

         (b)      On and as of the Sixth Amendment Effective Date, no Default
or Event of Default will have occurred or be continuing.

                                   ARTICLE IV

                                    GENERAL

         4.1      Full Force and Effect. From and after the Sixth Amendment
Effective Date, all references to the Credit Agreement set forth in any other
Credit Document or other agreement or

                                       31
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instrument shall, unless otherwise specifically provided, be references to the
Credit Agreement as amended by this Amendment and as may be further amended,
modified, restated or supplemented from time to time. This Amendment is limited
as specified and shall not constitute or be deemed to constitute an amendment,
modification or waiver of, or consent to departure from, any provision of the
Credit Agreement except as expressly set forth herein. Except as expressly
amended hereby, the Credit Agreement shall remain in full force and effect in
accordance with its terms.

         4.2      Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to principles of conflict of laws (excluding New York General Obligations Law
Section 5-1401).

         4.3      Counterparts. This Amendment may be executed in two or more
counterparts, each of which shall constitute an original, but all of which when
taken together shall constitute but one instrument.

         4.4      Construction. The headings of the various sections and
subsections of this Amendment have been inserted for convenience only and shall
not in any way affect the meaning or construction of any of the provisions
hereof.

         4.5      Severability. To the extent any provision of this Amendment
is prohibited by or invalid under the applicable law of any jurisdiction, such
provision shall be ineffective only to the extent of such prohibition or
invalidity and only in any such jurisdiction, without prohibiting or
invalidating such provision in any other jurisdiction or the remaining
provisions of this Amendment in any jurisdiction.

         4.6      Successors and Assigns. This Amendment shall be binding upon,
inure to the benefit of and be enforceable by the respective successors and
permitted assigns of the parties hereto.

                   [signatures appear on the following pages]

                                       32
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         IN WITNESS WHEREOF, each of the parties hereto has caused this
Amendment to be executed by its duly authorized officer as of the day and year
first above written.

                                  SELECTIVE INSURANCE GROUP, INC.

                                  By:     /s/ Jennifer W. DiBerardino
                                          --------------------------------------
                                  Name:   Jennifer W. Diberardino

                                  Title:  Asst. Vice President, Asst. Treasurer

                                  SELECTIVE INSURANCE COMPANY OF AMERICA

                                  By:     /s/ Jennifer W. DiBerardino
                                          --------------------------------------
                                  Name:   Jennifer W. Diberardino

                                  Title:  Asst. Vice President, Asst. Treasurer

                             (signatures continue)

                               SIGNATURE PAGE TO
                                SIXTH AMENDMENT

                                       33
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                                  WACHOVIA BANK, NATIONAL ASSOCIATION
                                  (formerly known as First Union National Bank)

                                  By:     /s/ Kimberly Schaffer
                                          -------------------------------------
                                  Name:   Kimberly Schaffer

                                  Title:  Director

                                  Instructions for wire transfers to the
                                  Lender:

                                  Wachovia Bank, National Association
                                  ABA Routing No. 053000219
                                  Account Name:  GL
                                  Account Number:  01459168111011
                                  Attention:  Romonia Lester
                                  Reference:  Selective Insurance

                                  Address for notices:

                                  Wachovia Bank, National Association
                                  201 S. College Street, CP 17
                                  Charlotte, North Carolina 28288-1183
                                  Attention:  Romonia Lester
                                  Telephone:  (704) 383-5364
                                  Telecopy:  (704) 374-2802

                                  with a copy to:

                                  Wachovia Bank, National Association
                                  1339 Chestnut Street, 3rd Floor
                                  Philadelphia, Pennsylvania 19107
                                  Attention:  Kimberly Shaffer
                                  Telephone:  (267) 321-7033
                                  Telecopy:  (267) 321-7102

                               SIGNATURE PAGE TO
                                SIXTH AMENDMENT

                                       34

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