Document:

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                                                                    Exhibit 10.1

                   AMENDED AND RESTATED EMPLOYMENT AGREEMENT
                   -----------------------------------------

          THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is hereby made and
entered into this 2nd day of January, 2001, between SCPIE MANAGEMENT COMPANY
(formerly named Physicians Insurance Management, Inc.), a California corporation
("SCPIE Management"), and DONALD J. ZUK ("Executive").

                                   RECITALS
                                   --------

          A.   Executive is and has been employed for a number of years in a
senior capacity in the administration of casualty insurance, including
particularly medical professional liability insurance.  Through such employment
he has acquired outstanding experience and special skills and abilities in the
management and administration of professional liability insurance programs,
including the marketing, underwriting, loss prevention and claims management
aspects of such business.

          B.   Because of the unique nature of the employment position involved
and the experience, skills, abilities, background and knowledge of Executive,
SCPIE Management desires to continue to retain the services of Executive for the
term of this Agreement on the terms and conditions set forth in this Agreement.
Executive desires to remain in the employ of SCPIE Management and is willing to
accept such employment on the terms and conditions set forth in this Agreement.

          C.   Executive originally served as the President and Chief Executive
Officer of SCPIE Management pursuant to the terms of an Employment Agreement
dated as of April 28, 1988, which was replaced by a new Employment Agreement
dated as of December 3, 1991 (the "December 1991 Agreement").  The December 1991
Agreement was amended and restated each
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subsequent year to extend the term and termination provisions for a period of
one additional year, and most recently on January 3, 2000, SCPIE Management and
Executive further amended and restated the Agreement to extend the term and
termination provisions for an additional period of one year (the "2000 Amended
and Restated Agreement"). SCPIE Management and Executive desire to further amend
and restate the 2000 Amended and Restated Agreement to extend the term and
termination provisions for an additional period of one year.

                                   AGREEMENT
                                   ---------

          NOW, THEREFORE, in consideration of the foregoing Recitals and the
mutual promises and covenants set forth herein, SCPIE Management and Executive
agree as follows:

          1.   Employment, Duties and Term.
               ---------------------------

               (a)  SCPIE Management hereby hires and employs Executive, and
Executive agrees to serve as an executive of SCPIE Management under and subject
to all of the terms, conditions and provisions hereof, for the period commencing
December 3, 1991 and terminating on December 31, 2005, unless earlier terminated
pursuant to paragraph 3 hereof. Executive agrees to serve as President and Chief
Executive Officer of SCPIE Management and its parent corporation, SCPIE Holdings
Inc. ("SCPIE Holdings"), and in such other positions as may be determined by the
Board of Directors of SCPIE Management. Executive's duties shall be as
designated by SCPIE Management's Board of Directors and shall be subject to such
policies and directives as may be established or given by such Board of
Directors from time to time. Executive agrees that, as an officer of SCPIE
Management, he will faithfully serve in such capacities during the term of this
Agreement, except as herein otherwise provided. Executive further agrees to
devote his best efforts and his entire attention and energy to such service.

                                       2
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          2.   Compensation and Benefits.
               -------------------------

               (a)  SCPIE Management agrees to pay to Executive, for his
services to SCPIE Management hereunder, compensation at the initial rate of
$344,800 per annum commencing December 9, 1991. Said compensation shall be
payable in bi-weekly payments. During the term hereof, Executive's yearly
compensation rate under this paragraph 2(a) shall be increased annually
(commencing as of January 1, 1992 and continuing as of each succeeding January
1) by a percentage equal to the percentage increase (if any) in the United
States Department of Labor, Bureau of Labor Statistics Consumer Price Index for
All Items, All Urban Consumers (CPI-U), for the Los Angeles area, for the
preceding calendar year. In the event that such Index (or a successor Index) is
not available, a reliable governmental publication evaluating the information
theretofore used in determining the Index shall be used in lieu of such Index.
(Pursuant to the terms of this provision and paragraph 2(b), Executive's yearly
compensation rate was increased to $562,650 as of January 1, 2000, and was also
maintained by the Board of Directors of SCPIE Management as of January 1, 2001
at that amount before inclusion of the CPI-U adjustment of the 2000 salary
level.)

               (b)  Annually during the term hereof, the Board of Directors of
SCPIE Management will consider whether to provide bonuses to Executive and
additional increases in Executive's compensation rate; provided, however, that
during the time that SCPIE Management is a wholly-owned subsidiary of SCPIE
Holdings, SCPIE Management shall not provide any bonuses or additional increases
in Executive's compensation rate under this paragraph unless such bonus or
increase has been specifically approved in writing by SCPIE Holdings. Additional
increases in Executive's compensation rate which are made pursuant to this
paragraph (if any) and which are in effect at the time this Agreement is
terminated, shall, for the purposes of paragraphs 3(a)(i) or (ii),

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3(c)(ii) or 3(e)(ii), be considered to be included in the compensation rate in
effect under paragraph 2(a) at the date of such termination.

               (c)  During the term hereof, Executive shall be entitled to
participate in such medical, dental, life and disability insurance programs,
pension and other retirement programs and other benefits as are now and may from
time to time become generally available to executives of SCPIE Management in
accordance with the then existing personnel policies of SCPIE Management. During
the term hereof, Executive shall also be entitled to one month of annual
vacation, the dates to be selected each year by Executive.

               (d)  During the term hereof, SCPIE Management shall pay for or
reimburse Executive for amounts incurred or advanced by him (as membership fees,
initiation fees and monthly dues) in obtaining and maintaining a membership at
the Jonathan Club, Los Angeles, California.  Effective January 1, 1999, SCPIE
Management Company shall pay for the cost of a golf membership at the Riviera
Country Club, Los Angeles, California, or a comparable country club, which shall
be in the name of and become the property of Executive.  Executive shall be
responsible for the dues and fees with respect to such membership.  SCPIE
Management shall also pay for or reimburse Executive for such ordinary and
necessary business expenses as Executive shall from time to time incur or
advance in the performance of his duties hereunder.

               (e)  During the term hereof, SCPIE Management shall provide to
Executive an automobile allowance consistent with such allowance as is furnished
to executives of SCPIE Management.

               (f)  With respect to the payment of counsel fees for Executive,
SCPIE Management agrees to pay for such fees in connection with the drafting of
this Agreement.

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          3.   Termination of Service.
               ----------------------

               (a)  SCPIE Management may terminate this Agreement at any time,
with or without cause, by giving 60 days' written notice to Executive. In the
event of such termination under this paragraph 3(a), SCPIE Management shall be
under no obligation except to pay to Executive his accrued and unpaid prorated
compensation up to and including the date of such termination, including earned
but unused vacation, plus either (i) in the event this Agreement is so
terminated on or prior to December 31, 2003, additional compensation equal to
the amount payable to Executive hereunder for two years at the rate in effect
under paragraph 2(a) hereof at the date of such termination, or (ii) in the
event this Agreement is so terminated after December 31, 2003, additional
compensation equal to the amount payable to Executive hereunder for one year at
the rate in effect under paragraph 2(a) hereof at the date of such termination.
Such amount (if any) payable under this paragraph 3(a) shall be payable between
the 60th day after the date of such termination and the 30th day after the first
anniversary of the date of such termination in such installments as Executive
shall specify by written notice given to SCPIE Management within ten days after
the date of such termination; provided, however, that if Executive does not give
such written notice within said ten-day period, such amount (if any) payable
under this paragraph 3(a) shall be payable in full on the 60th day after the
date of such termination.

               (b)  This Agreement also shall be terminated by the death of
Executive. In the event of the death of Executive during the term of this
Agreement, SCPIE Management shall be under no obligation except to pay to the
Executive's personal representative the Executive's accrued but unpaid prorated
compensation up to and including the date of his death, including earned but
unused vacation.

                                       5
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               (c)  This Agreement shall also be terminated at such time as
Executive becomes disabled (as hereinafter defined) from performing his duties
under this Agreement in his normal and regular manner. In the event this
Agreement is terminated by such disability, SCPIE Management shall be under no
obligation except to pay to Executive (i) his accrued but unpaid prorated
compensation up to and including the date of such termination including earned
but unused vacation, plus (ii) additional compensation equal to the amount
payable to Executive hereunder for six months, at the rate in effect under
paragraph 2(a) hereof at the date of such termination. Such amount (if any)
payable under paragraph 3(c)(ii) shall be payable in equal bi-weekly payments.
Executive shall be considered "disabled" if, at the end of any month, Executive
then is and has been, either for the four consecutive full calendar months then
ending or on sixty percent or more of his normal working days during the six
consecutive full calendar months then ending, unable due to mental or physical
illness or injury to perform his duties under this Agreement in his normal and
regular manner.

               (d)  Executive may terminate this Agreement at any time, with or
without cause, by giving 90 days' written notice to SCPIE Management.  In the
event of such termination under this paragraph 3(d), SCPIE Management shall be
under no obligation except to pay Executive his accrued but unpaid prorated
compensation up to and including the date of such termination, including earned
but unused vacation.

               (e)  Unless this Agreement is terminated earlier pursuant to any
of the foregoing subparagraphs of this paragraph 3, this Agreement shall
automatically terminate on December 31, 2005, and, in the event of such
termination on such date, SCPIE Management shall be under no obligation except
to pay to Executive (i) his accrued and unpaid prorated compensation up to and
including such date, including earned but unused vacation, plus (ii) additional

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compensation equal to the amount payable to Executive hereunder for one year at
the rate in effect under paragraph 2(a) hereof on December 31, 2005. Such amount
(if any) payable under paragraph 3(e)(ii) shall be payable between March 1, 2006
and January 10, 2007 in such installments as Executive shall specify by written
notice given to SCPIE Management on or before January 10, 2006; provided,
however, that if Executive does not give such written notice on or before
January 10, 2006, such amount (if any) payable under paragraph 3(e)(ii) shall be
payable in full on March 1, 2006.

               (f)  In the event that Executive's services hereunder are
terminated under any of the provisions of this Agreement (except by death),
Executive agrees that if at that time he is President of SCPIE Management, he
will, promptly upon the written request of the Board of Directors of SCPIE
Management, deliver his written resignation as such President to the Board of
Directors, such resignation to become effective immediately.

          4.   Assignment and Binding Effect.
               -----------------------------

               This Agreement shall not be transferable or assignable by
Executive or SCPIE Management, nor shall Executive's or SCPIE Management's
interest herein be transferred or assigned by operation of law, and any
assignment or attempted assignment, transfer, mortgage, hypothecation, or pledge
of this Agreement or of his interest herein by Executive or SCPIE Management
shall be null and void. This provision, however, shall have no application to
transfers made by reason of the death of the Executive.

          5.   Arbitration.
               -----------

               Any controversy or claim arising out of or relating to this
Employment Agreement shall be settled by arbitration in accordance with the
Rules of the American Arbitration Association, and judgment upon the award
rendered by the Arbitrators may be entered in any Court

                                       7
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having jurisdiction thereof. If a controversy or claim results in an award, that
award shall also provide that the prevailing party be reimbursed by the non-
prevailing party for the prevailing party's reasonable attorneys' fees and costs
incurred in connection with the arbitration.

                                       8
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          6.   Notices.
               -------

               Any notice required or permitted to be given under this Agreement
by one party hereto to the other shall be sufficient if given or confirmed in
writing, first class mail, postage prepaid, or by telegraph addressed as
respectively indicated:

To SCPIE Management:     SCPIE Management Company
                         1888 Century Park East, Suite 800
                         Los Angeles, California 90067
                         Attn: Chairman of the Board

To Executive:            Donald J. Zuk
                         c/o SCPIE Management Company
                         1888 Century Park East, Suite 800
                         Los Angeles, California 90067

or to such other address as the respective parties may designate in writing to
the other designate.

          7.   Unique Nature of Executive's Services.
               -------------------------------------

               Executive is obligated under this Agreement to render services of
special, unusual, extraordinary and intellectual character, thereby giving his
Agreement peculiar value, so that the loss thereof could not be reasonably or
adequately compensated in damages or an action of law. In addition to other
remedies provided by law, SCPIE Management shall have the right during the term
of this Agreement to compel specific performance hereof by Executive and/or to
obtain injunctive relief against the performance of services elsewhere by
Executive.

          8.   Withholdings.
               ------------

               All payments made by SCPIE Management under any provision of this
Agreement shall be subject to any deductions and withholdings required by
applicable law.

          9.   Governing Law.
               -------------

               This Agreement shall be governed by the laws of the State of
California.

                                       9
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          10.  Amendment of the December 1991 Agreement.
               ----------------------------------------

               The 2000 Amended and Restated Agreement between Executive and
SCPIE Management is hereby amended and restated in its entirety by this Amended
and Restated Employment Agreement.

          IN WITNESS WHEREOF, SCPIE Management has caused this Agreement to be
executed by its officer thereunto duly authorized and Executive has executed
this instrument, all as of the day and year first above written.

                              SCPIE MANAGEMENT COMPANY

                              By: /s/ Joseph P. Henkes
                                 ---------------------
                                 Its: Senior Vice President and Secretary
                                     ------------------------------------

                              EXECUTIVE:

                              /s/ Donald J. Zuk
                              ---------------------------------
                                  Donald J. Zuk

                                       10
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                                    GUARANTY
                                    --------

          1.   FOR VALUE RECEIVED and in consideration for, and as an inducement
to Donald J. Zuk (the "Executive") concurrently entering into an Amended and
Restated Employment Agreement dated as of January 2, 2001, in place of the
Amended and Restated Employment Agreement made and entered into as of January 3,
2000 with SCPIE Management Company, SCPIE Holdings Inc. ("SCPIE Holdings")
guarantees to Executive, and his successors and assigns, the full payment by
SCPIE Management Company to Executive of the compensation required to be paid by
SCPIE Management Company to Executive under paragraph 2 and paragraphs 3(a)(i)
or (ii), 3(c)(ii) or 3(e)(ii) of said Agreement on the terms and conditions set
forth in said Agreement.

          2.   This Guaranty cannot otherwise be terminated or modified without
the written consent of Mr. Donald J. Zuk.

          3.   If any dispute arises pertaining to this Guaranty, such dispute
will be submitted to binding arbitration in accordance with the Rules of the
American Arbitration Association, and judgment upon such award rendered by the
Arbitrators may be entered in any court having jurisdiction.  If the controversy
or claim results in an award, that award shall provide the prevailing party be
reimbursed by the non-prevailing party for the prevailing party's reasonable
attorneys' fees and costs incurred in connection with the Arbitration.

          Executed in Los Angeles, California, as of January 2, 2001.

                              SCPIE HOLDINGS INC.

                              By: /s/ Joseph P. Henkes
                                 ---------------------
                                  Its: Senior Vice President and Secretary
                                      ------------------------------------

                                       11<PAGE>

                                                                   Exhibit 10.77

                [TIER I CHANGE IN CONTROL SEVERANCE AGREEMENT]

                              SCPIE HOLDINGS INC.
                       1888 Century Park East, Suite 800
                         Los Angeles, California 90067

                              December ___, 2000

[Executive]
President and Chief Executive Officer
c/o SCPIE Management Company
1888 Century Park East, Suite 800
Los Angeles, California 90067

Dear [Executive]:

          SCPIE Holdings Inc. (the "Corporation") considers it essential to the
best interests of its shareholders to foster the continuous employment of key
management personnel. In connection with this, the Corporation's Board of
Directors (the "Board") recognizes that, as is the case with many publicly held
corporations, the possibility of a change in control of the Corporation may
exist and that the uncertainty and questions that it may raise among management
could result in the departure or distraction of management personnel to the
detriment of the Corporation and its shareholders.

          The Board has decided to reinforce and encourage the continued
attention and dedication of members of the Corporation's management, including
yourself, to their assigned duties without the distraction arising from the
possibility of a change in control of the Corporation.

          In order to induce you to remain in the employ of the Corporation or
any of its affiliates (collectively, the "Company"), the Corporation hereby
agrees that after this letter agreement (this "Agreement") has been fully
executed, you shall receive the severance benefits set forth in Section 5 of
this Agreement in the event your employment with the Company is terminated under
the circumstances described in Section 4 of this Agreement subsequent to a
Change in Control (as defined in Section 2).

                                       1
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          1.   Term of Agreement. This Agreement shall commence on the date
               -----------------
hereof and shall continue in effect through December 31, 2003; provided,
however, that commencing on January 1, 2001 and on each January 1 thereafter,
the term of this Agreement shall automatically be extended for one additional
year unless, not later than September 30 of the preceding year, the Corporation
shall have given notice that it does not wish to extend this Agreement;
provided, further, that if a Change in Control (as defined in Section 2), occurs
during the original or any extended term of this Agreement, the term of this
Agreement shall continue in effect for a period of not less than thirty-six (36)
months beyond the month in which such Change in Control occurred.

          2.   Change in Control.
               -----------------

          No benefits shall be payable under Section 4 of this Agreement unless
there has been a Change in Control. For purposes of this Agreement, a Change in
Control shall be deemed to occur if:

          (a)  any Person (as defined in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act")) is or becomes
the Beneficial Owner (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation's then outstanding securities
("Outstanding Corporation Voting Securities"); provided, however, that for
purposes of this subsection (a), the following shall not constitute a Change in
Control: (i) any acquisition by the Corporation or any corporation controlled by
the Corporation, (ii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Corporation or any corporation controlled
by the Corporation, or (iii) any acquisition by a Person of 20% of the
Outstanding Corporation Voting Securities as a result of an acquisition of
common stock of the Corporation by the Corporation which, by reducing the number
of shares of common stock of the Corporation outstanding, increases the
proportionate number of shares beneficially owned by such Person to 20% or more
of the Outstanding Corporation Voting Securities; provided, however, that if a
Person shall become the beneficial owner of 20% or more of the Outstanding
Corporation Voting Securities by reason of a share acquisition by the
Corporation as described above and shall, after such share acquisition by the
Corporation, become the beneficial owner of any additional shares of common
stock of the Corporation, then such acquisition shall constitute a Change in
Control;

          (b)  during any period of two consecutive years (not including any
period prior to the execution of this Agreement), individuals who at the
beginning of such period constitute the Board, and any new director (other than
a director designated by a person who has entered into an agreement with
Corporation to effect a transaction described in Sections 2(a), (c), (d) or (e))
whose election by the Board or nomination for election by the Corporation's
stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of the
period or whose election or nomination for election was

                                       2
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previously so approved (hereinafter referred to as "Continuing Directors"),
cease for any reason to constitute at least a majority thereof;

          (c)  the consummation by the Corporation of a merger or consolidation
of Corporation with any other corporation (or other entity), other than a merger
or consolidation which would result in the voting securities of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) 50% or more of the combined voting power of the voting
securities of the Corporation or such surviving entity outstanding immediately
after such merger or consolidation; provided, however, that a merger or
consolidation effected to implement a recapitalization of the Corporation (or
similar transaction) in which no Person acquires more than 20% of the
Outstanding Corporation Voting Securities shall not constitute a Change in
Control;

          (d)  the stockholders of the Corporation approve a plan of complete
liquidation of the Corporation; or

          (e)  the consummation of an agreement (or agreements) providing for
the sale or disposition by the Corporation of all or substantially all of the
Corporation's assets other than a sale or disposition which would result in the
voting securities of the Corporation outstanding immediately prior thereto
continuing to represent 50% or more of the combined voting power of the
Corporation or such surviving entity outstanding immediately after such sale or
disposition.

          3.   Accelerated Vesting Upon a Change in Control.
               --------------------------------------------

          Notwithstanding any provisions of the Company's stock option plans,
incentive plans, or other similar plans, all outstanding options ("Options"), if
any, granted to you under any of the Company's stock option plans, incentive
plans, or other similar plans (or options substituted therefor covering the
stock of a successor corporation) shall become fully vested and exercisable
immediately prior to the Change in Control as to all shares of stock covered
thereby, and the restricted period with respect to any restricted stock or any
other equity award granted to you thereunder shall lapse and such shares shall
be distributed to you immediately prior to the Change in Control, unless it
would adversely affect the Corporation's ability to use pooling of interest
accounting in a Change in Control transaction in which such accounting is
intended to be used.

          4.   Termination of Employment Following a Change in Control.
               -------------------------------------------------------

          (a)  General. During the term of this Agreement, if any of the events
               -------
described in Section 2 constituting a Change in Control shall have occurred, you
shall be entitled to the benefits provided in Section 5(c) upon the subsequent
termination of your employment, provided that such termination occurs during the
term of this Agreement and within the two (2) year period immediately following
the date of such Change in Control, unless such termination is (i)

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because of your death or Disability (as defined in Section 4(b)), (ii) by the
Company for Cause (as defined in Section 4(c)), or (iii) by you other than (1)
for Good Reason (as defined in Section 4(d)), or (2) in a Covered Resignation
(as defined in Section 4(e)). In the event that you are entitled to such
benefits, such benefits shall be paid notwithstanding the subsequent expiration
of the term of this Agreement.

          (b)  Disability. If, as a result of your incapacity due to physical or
               ----------
mental illness, you shall have been absent from the full-time performance of
your duties with the Company for six (6) consecutive months, and within thirty
(30) days after written notice of termination is given you shall not have
returned to the full-time performance of your duties, your employment may be
terminated for "Disability."

          (c)  Cause. Termination by the Company of your employment for
               -----
"Cause" shall mean termination (i) upon your willful and continued failure to
substantially perform your duties with the Company (other than any such failure
resulting from your incapacity due to physical or mental illness or any such
actual or anticipated failure after your issuance of a Notice of Termination (as
defined in Section 4(f) for Good Reason), after a written demand for substantial
performance is delivered to you by the Board, which demand specifically
identifies the manner in which the Board believes that you have not
substantially performed your duties, (ii) upon your willful and continued
failure to substantially follow and comply with the specific and lawful
directives of the Board, as reasonably determined by the Board (other than any
such failure resulting from your incapacity due to physical or mental illness or
any such actual or anticipated failure after your issuance of a Notice of
Termination for Good Reason), after a written demand for substantial performance
is delivered to you by the Board, which demand specifically identifies the
manner in which the Board believes that you have not substantially performed
your duties, (iii) upon your willful commission of an act of fraud or dishonesty
resulting in material economic or financial injury to the Company, or (iv) upon
your willful engagement in illegal conduct or gross misconduct, in each case
which is materially and demonstrably injurious to the Company. For purposes of
this Section 4(c), no act, or failure to act, on your part shall be deemed
"willful" unless done, or omitted to be done, by you not in good faith.
Notwithstanding the foregoing, you shall not be deemed terminated for Cause
pursuant to Sections 4(c)(i), (ii) or (iv) hereof unless and until there shall
have been delivered to you a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters (3/4) of the entire membership
of the Board at a meeting of the Board (after reasonable notice to you, an
opportunity for you, together with your counsel, to be heard before the Board
and a reasonable opportunity to cure), finding that in the Board's good faith
opinion you were guilty of conduct set forth above in this Section 4(c) and
specifying the particulars thereof in reasonable detail.

          (d)  Good Reason. You shall be entitled to terminate your employment
               -----------
for Good Reason. For purposes of this Agreement, "Good Reason" shall mean,
without your express written consent, the occurrence after a Change in Control
of any of the following

                                       4
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circumstances unless, in the case of Sections 4(d)(i), (v), (vi), or (vii), such
circumstances are fully corrected (provided such circumstances are capable of
correction) prior to the Date of Termination (as defined in Section 4(g))
specified in the Notice of Termination given in respect thereof:

          (i)   the assignment to you of any duties inconsistent with the
     position in the Company that you held immediately prior to the Change in
     Control, a significant adverse alteration in the nature or status of your
     responsibilities or the conditions of your employment from those in effect
     immediately prior to such Change in Control, or any other action by the
     Company that results in a material diminution in your position, authority,
     duties or responsibilities;

          (ii)  the Company's reduction by more than 10% of your annual total
     compensation as in effect on the date hereof or as the same may be
     increased from time to time pursuant to the Amended and Restated Employment
     Agreement dated January 3, 2000 (as amended, restated, extended,
     supplemented or otherwise modified from time to time pursuant to its terms)
     by and between SCPIE Management Company and you (the "Employment
     Agreement");

          (iii) the relocation of the Company's offices at which you are
     principally employed immediately prior to the date of the Change in Control
     (your "Principal Location") which results in the one-way commuting distance
     for you increasing by more than thirty (30) miles from such location, or
     the Company's requiring you, without your written consent, to be based
     anywhere other than your Principal Location, except for required travel on
     the Company's business to an extent substantially consistent with your
     present business travel obligations;

          (iv)  the Company's failure to pay to you any portion of your current
     compensation or to pay to you any portion of an installment of deferred
     compensation under any deferred compensation program of the Company within
     seven (7) days after the date such compensation is due;

          (v)   the Company's failure to continue in effect any material
     compensation or benefit plan in which you participate immediately prior to
     the Change in Control, unless an equitable arrangement (embodied in an
     ongoing substitute or alternative plan) has been made with respect to such
     plan, or the Company's failure to continue your participation therein (or
     in such substitute or alternative plan) on a basis not materially less
     favorable, both in terms of the amount of benefits provided and the level
     of your participation relative to other participants, as existed at the
     time of the Change in Control;

                                       5
<PAGE>

               (vi)  the Corporation's failure to obtain a satisfactory
     agreement from any successor to assume and agree to perform this Agreement,
     as contemplated in Section 6 hereof; or

               (vii) any purported termination of your employment that is not
     effected pursuant to a Notice of Termination satisfying the requirements of
     Section 4(f) hereof (and, if applicable, the requirements of Section 4(c)
     hereof), which purported termination shall not be effective for purposes of
     this Agreement.

Your right to terminate your employment pursuant to this Section 4(d) shall not
be affected by your incapacity due to physical or mental illness. Your continued
employment shall not constitute consent to, or a waiver of rights with respect
to, any circumstance constituting Good Reason hereunder. Any good faith
determination by you that Good Reason exists shall be presumed correct and shall
be binding upon the Corporation.

          (e)  Voluntary Termination and Covered Resignation. You shall be
               ---------------------------------------------
entitled to voluntarily terminate your employment for any reason or no reason at
any time after a Change in Control. Any such termination which occurs within the
thirty (30)-day period following the first anniversary of the occurrence of a
Change in Control (a "Covered Resignation") shall constitute a resignation which
entitles you to receive benefits under this Agreement.

          (f)  Notice of Termination. Any purported termination of your
               ----------------------
employment by the Company or by you (other than termination due to death which
shall terminate your employment automatically) shall be communicated by written
Notice of Termination to the other party hereto in accordance with Section 7.
"Notice of Termination" shall mean a notice that shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of your employment under the provision so indicated.

          (g)  Date of Termination, Etc. "Date of Termination" shall mean (a) if
               -------------------------
your employment is terminated due to your death, the date of your death; (b) if
your employment is terminated for Disability, thirty (30) days after Notice of
Termination is given (provided that you shall not have returned to the full-time
performance of your duties during such thirty (30)-day period), and (c) if your
employment is terminated pursuant to Section 4(c), Section 4(d) or Section 4(e)
or for any other reason (other than death or Disability), the date specified in
the Notice of Termination (which, in the case of a termination for Cause shall
not be less than thirty (30) days from the date such Notice of Termination is
given, and in the case of a termination for Good Reason or in connection with a
Covered Resignation shall not be less than fifteen (15) nor more than sixty (60)
days from the date such Notice of Termination is given).

          5.   Compensation Upon Termination or During Disability Following A
               --------------------------------------------------------------
               Change in Control.
               -----------------

                                       6
<PAGE>

          Following a Change in Control during the term of this Agreement, you
shall be entitled to the benefits described below during a period of disability,
or upon termination of your employment, as the case may be, provided that such
period or termination occurs during the term of this Agreement and within the
two (2) year period immediately following the date of such Change in Control.
The benefits to which you are entitled, subject to the terms and conditions of
this Agreement, are:

          (a)  During any period during which you fail to perform your full-time
duties with the Company as a result of incapacity due to physical or mental
illness, you shall continue to receive your base salary at the rate in effect at
the commencement of any such period, together with all compensation payable to
you under the Company's disability plan or program or other similar plan during
such period, until this Agreement is terminated pursuant to Section 4(b) hereof.
Thereafter, or in the event your employment is terminated by reason of your
death, your benefits shall be determined under the Company's retirement,
insurance and other compensation programs then in effect in accordance with the
terms of such programs.

          (b)  If your employment shall be terminated (i) by the Company for
Cause or (ii) by you other than for Good Reason or pursuant to a Covered
Resignation, the Corporation shall pay you (1) your full base salary, when due,
through the Date of Termination at the rate in effect at the time Notice of
Termination is given, (2) the unpaid portion, if any, of any annual bonus for
any prior year, and (3) all other amounts to which you are entitled under any
compensation plan of the Company at the time such payments are due, and the
Corporation shall have no further obligations to you under this Agreement.

          (c)  If your employment by the Company shall be terminated by you for
Good Reason or by the Company other than for Cause or Disability, then you shall
be entitled to the benefits provided below:

                    (i)  the Corporation shall pay to you (1) your full base
          salary, when due, through the Date of Termination at the rate in
          effect at the time Notice of Termination is given, at the time
          specified in Section 5(e), (2) the unpaid portion, if any, of any
          annual bonus, plus an amount equal to your targeted annual bonus, pro
          rated from January 1 of the termination year through the Date of
          Termination, and (3) all other amounts to which you are entitled under
          any compensation plan of the Company at the time such payments are
          due;

                    (ii) in lieu of any further salary payments to you for
          periods subsequent to the Date of Termination, the Corporation shall
          pay as severance pay to you, at the time specified in Section 5(e), a
          lump sum severance payment equal to the sum of three (3) times your
          annual base salary as in effect as of the Date of Termination or
          immediately prior to the Change in Control, whichever is greater, and
          three (3) times your targeted annual bonus as in effect as of the Date
          of

                                       7
<PAGE>

          Termination or the average annual bonus received by you with respect
          to the three (3) years immediately prior to the Change in Control,
          whichever is greater;

                             (iii) for a period of three (3) years, the
          Corporation shall continue to provide you and your eligible family
          members, based on the cost sharing arrangement between you and the
          Company on the date of the Change in Control, with medical and dental
          health benefits at least equal to those which would have been provided
          to you and them if your employment had not been terminated or, if more
          favorable to you, as in effect generally at any time thereafter,
          provided, however, that if you become re-employed with another
          employer and are eligible to receive medical and dental health
          benefits under another employer's plans, the Corporation's obligations
          under this Section 5(c)(iii) shall be reduced to the extent comparable
          benefits are actually received by you, and any such benefits actually
          received by you shall be reported to the Corporation. In the event you
          are ineligible under the terms of such benefit plans or programs to
          continue to be so covered, in such event, the Corporation shall
          provide you with substantially equivalent coverage through other
          sources or will provide you with a lump sum payment in such amount
          that, after all taxes on that amount, shall be equal to the cost to
          you of providing yourself such benefit coverage. At the termination of
          the benefits coverage under the second preceding sentence, you, your
          spouse and your dependents shall be entitled to continuation coverage
          pursuant to Section 4980B of the Internal Revenue Code of 1986, as
          amended (the "Code"), Sections 601-608 of the Employee Retirement
          Income Security Act of 1974, as amended, and under any other
          applicable law, to the extent required by such laws, as if you had
          terminated employment with the Company on the date such benefits
          coverage terminates. The lump sum shall be determined on a present
          value basis using the interest rate provided in Section 1274(b)(2)(B)
          of the Code on the Date of Termination;

                             (iv)  for a period of two (2) years following the
          Date of Termination, the Corporation shall, at its sole expense as
          incurred, provide you with outplacement services, the scope and
          provider of which shall be selected by you in your sole discretion, at
          an aggregate cost to the Corporation not to exceed twenty five percent
          (25%) of your annual base salary as in effect as of the Date of
          Termination or immediately prior to the Change in Control, whichever
          is greater;

                             (v)   you shall be fully vested in your accrued
          benefits under any qualified or nonqualified pension, profit sharing,
          deferred compensation or supplemental plans maintained by the Company
          for your benefit, except to the extent that the acceleration of
          vesting of such benefits would violate any applicable law or require
          the Corporation to accelerate the vesting of the accrued benefits of
          all participants in such plan or plans, in which case the Corporation

                                       8
<PAGE>

          may elect to pay you a lump sum payment at the time specified in
          Section 5(e) in an amount equal to the value of such unvested accrued
          benefits in lieu of accelerating the vesting of your benefits, plus
          the Corporation shall pay to you an amount equal to the amount the
          Company would have contributed to your account under the Company's
          401(k) plan as a matching contribution had you remained employed by
          the Company for three (3) years after your Date of Termination and had
          you made the maximum elected deferral contributions;

                    (vi)   the Corporation shall furnish you for six (6) years
          following the Date of Termination (without reference to whether the
          term of this Agreement continues in effect) with directors' and
          officers' liability insurance insuring you against insurable events
          which occur or have occurred while you were a director or officer of
          the Company, such insurance to have policy limits aggregating not less
          than the amount in effect immediately prior to the Change in Control,
          and otherwise to be in substantially the same form and to contain
          substantially the same terms, conditions and exceptions as the
          liability insurance policies provided for officers and directors of
          the Company in force from time to time, provided, however, that such
          terms, conditions and exceptions shall not be, in the aggregate,
          materially less favorable to you than those in effect on the date
          hereof; provided, further, that if the aggregate annual premiums for
          such insurance at any time during such period exceed one hundred and
          fifty percent (150%) of the per annum rate of premium currently paid
          by the Company for such insurance, then the Corporation shall provide
          the maximum coverage that will then be available at an annual premium
          equal to one hundred and fifty percent (150%) of such rate;

                    (vii)  in any situation where under applicable law the
          Corporation has the power to indemnify (or advance expenses to) you in
          respect of any judgments, fines, settlements, loss, cost or expense
          (including attorneys' fees) of any nature related to or arising out of
          your activities as an agent, employee, officer or director of the
          Company or in any other capacity on behalf of or at the request of the
          Company, the Corporation shall promptly on written request, indemnify
          (and advance expenses to) you to the fullest extent permitted by
          applicable law, including but not limited to making such findings and
          determinations and taking any and all such actions as the Corporation
          may, under applicable law, be permitted to have the discretion to take
          so as to effectuate such indemnification or advancement. Such
          agreement by the Corporation shall not be deemed to impair any other
          obligation of the Corporation respecting your indemnification
          otherwise arising out of this or any other agreement or promise of the
          Corporation or under any statute; and

                    (viii) (1) anything in this Agreement to the contrary
          notwithstanding, if it shall be determined that any payment or
          distribution to you

                                       9
<PAGE>

          or for your benefit (whether paid or payable or distributed or
          distributable) pursuant to the terms of this Agreement or otherwise
          pursuant to or by reason of any other agreement, policy, plan, program
          or arrangement, including without limitation any stock option, stock
          appreciation right or similar right, or the lapse or termination of
          any restriction on or the vesting or exercisability of any of the
          foregoing (the "Payments") would be subject to the excise tax imposed
          by Section 4999 of the Code by reason of being "contingent on a change
          in the ownership or control" of the Corporation, within the meaning of
          Section 280G of the Code or to any similar tax imposed by state or
          local law, or any interest or penalties with respect to such excise
          tax (such tax or taxes, together with any such interest or penalties,
          are collectively referred to as the "Excise Tax"), then you shall be
          entitled to receive from the Corporation an additional payment (the
          "Gross-Up Payment") in an amount such that the net amount of the
          Payments and the Gross-Up Payment retained by you after the
          calculation and deduction of all Excise Taxes (including any interest
          or penalties imposed with respect to such taxes) on the payment and
          all federal, state and local income tax, employment tax and Excise Tax
          (including any interest or penalties imposed with respect to such
          taxes) on the Gross-Up Payment provided for in this Section
          5(c)(viii), and taking into account any lost or reduced tax deductions
          on account of the Gross-Up Payment, shall be equal to the Payments;

                         (2)  all determinations required to be made under this
          Section 5(c)(viii), including whether and when the Gross-Up Payment is
          required and the amount of such Gross-Up Payment, and the assumptions
          to be utilized in arriving at such determinations shall be made by the
          Accountants (as defined below) which shall provide you and the
          Corporation with detailed supporting calculations with respect to such
          Gross-Up Payment within fifteen (15) business days of the receipt of
          notice from you or the Corporation that you have received or will
          receive a Payment. For purposes of making the determinations and
          calculations required herein, the Accountants may make reasonable
          assumptions and approximations concerning applicable taxes and may
          rely on reasonable, good faith interpretations concerning the
          application of Sections 280G and 4999 of the Code, provided that the
          Accountant's determinations must be made on the basis of "substantial
          authority" (within the meaning of Section 6662 of the Code). For the
          purposes of this Section 5(c)(viii), the "Accountants" shall mean the
          Corporation's independent certified public accountants serving
          immediately prior to the Change in Control. In the event that the
          Accountants are also serving as accountant or auditor for the
          individual, entity or group effecting the Change in Control, you shall
          appoint another nationally recognized public accounting firm to make
          the determinations required hereunder (which accounting firm shall
          then be referred to as the Accountants hereunder). All fees and
          expenses of the Accountants shall be borne solely by the Corporation;

                                       10
<PAGE>

                         (3)  for the purposes of determining whether any of the
          Payments will be subject to the Excise Tax and the amount of such
          Excise Tax, such Payments will be treated as "parachute payments"
          within the meaning of Section 280G of the Code, and all "parachute
          payments" in excess of the "base amount" (as defined under Section
          280G(b)(3) of the Code) shall be treated as subject to the Excise Tax,
          unless and except to the extent that in the opinion of the Accountants
          such Payments (in whole or in part) either do not constitute
          "parachute payments" or represent reasonable compensation for services
          actually rendered (within the meaning of Section 280G(b)(4) of the
          Code) in excess of the "base amount," or such "parachute payments" are
          otherwise not subject to such Excise Tax. For purposes of determining
          the amount of the Gross-Up Payment you shall be deemed to pay federal
          income taxes at the highest applicable marginal rate of federal income
          taxation for the calendar year in which the Gross-Up Payment is to be
          made and to pay any applicable state and local income taxes at the
          highest applicable marginal rate of taxation for the calendar year in
          which the Gross-Up Payment is to be made, net of the maximum reduction
          in federal income taxes which could be obtained from the deduction of
          such state or local taxes if paid in such year (determined without
          regard to limitations on deductions based upon the amount of your
          adjusted gross income), and to have otherwise allowable deductions for
          federal, state and local income tax purposes at least equal to those
          disallowed because of the inclusion of the Gross-Up Payment in your
          adjusted gross income. To the extent practicable, any Gross-Up Payment
          with respect to any Payment shall be paid by the Corporation at the
          time you are entitled to receive the Payments and in no event will any
          Gross-Up Payment be paid later than five (5) days after the receipt by
          you of the Accountant's determination. Any determination by the
          Accountants shall be binding upon the Corporation and you;

                         (4)  as a result of uncertainty in the application of
          Section 4999 of the Code at the time of the initial determination by
          the Accountants hereunder, it is possible that the Gross-Up Payment
          made will have been an amount less than the Corporation should have
          paid pursuant to this Section 5(c)(viii) (the "Underpayment"). In the
          event that the Corporation exhausts its remedies pursuant to Section
          5(c)(viii)(3) and you are required to make a payment of any Excise
          Tax, the Underpayment shall be promptly paid by the Corporation to or
          for your benefit;

                         (5)  you and the Corporation shall each provide the
          Accountants access to and copies of any books, records and documents
          in the possession of the Corporation or you, as the case may be,
          reasonably requested by the Accountants, and otherwise cooperate with
          the Accountants in connection

                                       11
<PAGE>

          with the preparation and issuance of the determination contemplated by
          this Section 5(c)(viii); and

                         (6)  you shall notify the Corporation in writing of any
          claim by the Internal Revenue Service that, if successful, would
          require the payment by the Corporation of the Gross-Up Payment. Such
          notification shall be given as soon as practicable after you are
          informed in writing of such claim and shall apprise the Corporation of
          the nature of such claim and the date on which such claim is requested
          to be paid. You shall not pay such claim prior to the expiration of
          the 30-day period following the date on which you give such notice to
          the Corporation (or such shorter period ending on the date that any
          payment of taxes, interest and/or penalties with respect to such claim
          is due). If the Corporation notifies you in writing prior to the
          expiration of such period that it desires to contest such claim, you
          shall:

                              (A)  give the Corporation any information
               reasonably requested by the Corporation relating to such claim;

                              (B)  take such action in connection with
               contesting such claim as the Corporation shall reasonably request
               in writing from time to time, including, without limitation,
               accepting legal representation with respect to such claim by an
               attorney reasonably selected by the Corporation;

                              (C)  cooperate with the Corporation in good faith
               in order to effectively contest such claim; and

                              (D)  permit the Corporation to participate in any
               proceedings relating to such claims;

          provided, however, that the Corporation shall bear and pay directly
          all costs and expenses (including additional interest and penalties)
          incurred in connection with such contest and shall indemnify you for
          and hold you harmless from, on an after-tax basis, any Excise Tax or
          income tax (including interest and penalties with respect thereto)
          imposed as a result of such representation and payment of all related
          costs and expenses. Without limiting the foregoing provisions of this
          Section 5(c)(viii), the Corporation shall control all proceedings
          taken in connection with such contest and, at its sole option, may
          pursue or forgo any and all administrative appeals, proceedings,
          hearings and conferences with the taxing authority in respect of such
          claim and may, at its sole option, either direct you to pay the tax
          claimed and sue for a refund or contest the claim in any permissible
          manner, and you agree to prosecute such contest to a determination
          before any administrative tribunal, in a court of initial jurisdiction
          and in one or more

                                       12
<PAGE>

          appellate courts, as the Corporation shall determine; provided,
          however, that if the Corporation directs you to pay such claim and sue
          for a refund, the Corporation shall advance the amount of such payment
          to you, on an interest-free basis, and shall indemnify you for and
          hold you harmless from, on an after-tax basis, any Excise Tax or
          income tax (including interest or penalties with respect thereto)
          imposed with respect to such advance or with respect to any imputed
          income with respect to such advance (including as a result of any
          forgiveness by the Corporation of such advance); provided, further,
          that any extension of the statute of limitations relating to the
          payment of taxes for your taxable year with respect to which such
          contested amount is claimed to be due is limited solely to such
          contested amount. Furthermore, the Corporation's control of the
          contest shall be limited to issues with respect to which a Gross-Up
          Payment would be payable hereunder and you shall be entitled to settle
          or contest, as the case may be, any other issue raised by the Internal
          Revenue Service or any other taxing authority.

          (d)  If your employment by the Company shall be terminated by you
pursuant to a Covered Resignation, then you shall be entitled to the benefits
provided for in Section 5(c) except that (i) the severance benefits provided in
Section 5(c)(ii) shall be fifty percent (50%) of benefit provided therein, and
(ii) the medical and dental benefits provided in Section 5(c)(iii) shall be for
a maximum period of eighteen (18) months.

          (e)  The payments provided for in Sections 5(c)(i), (ii), (iii) and
5(d) shall be made not later than the fifth day following the Date of
Termination; provided, however, that if the amounts of such payments cannot be
finally determined on or before such day, the Corporation shall pay to you on
such day an estimate, as determined in good faith by the Corporation, of the
minimum amount of such payments and shall pay the remainder of such payments
(together with interest at the rate provided in Section 1274(b)(2)(B) of the
Code) as soon as the amount thereof can be determined but in no event later than
the thirtieth day after the Date of Termination. In the event that the amount of
the estimated payments exceeds the amount subsequently determined to have been
due, such excess shall constitute a loan by the Corporation to you, payable on
the fifth day after demand by the Corporation (together with interest at the
rate provided in Section 1274(b)(2)(B) of the Code).

          (f)  You shall not be required to mitigate the amount of any payment
provided for in this Section 5 by seeking other employment or otherwise nor,
except as provided in Section 5(c)(iii), shall the amount of any payment or
benefit provided for in this Section 5 be reduced by any compensation earned by
you as the result of employment by another employer or self-employment, by
retirement benefits, by offset against any amount claimed to be owed by you to
the Corporation, or otherwise.

          6.   Successors; Binding Agreement.
               -----------------------------

                                       13
<PAGE>

          (a)  The Corporation shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Corporation to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Corporation would be required to perform it if no such
succession had taken place. Failure of the Corporation to obtain such assumption
and agreement prior to the effectiveness of any such succession shall be a
breach of this Agreement and shall entitle you to terminate your employment and
receive compensation from the Corporation in the same amount and on the same
terms to which you would be entitled hereunder if you terminate your employment
for Good Reason following a Change in Control, except that for purposes of
implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Date of Termination. Unless expressly provided
otherwise, "Corporation" as used herein shall mean the Corporation as defined in
this Agreement and any successor to its business and/or assets as aforesaid.

          (b)  This Agreement shall inure to the benefit of and be enforceable
by you and your personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If you should die while
any amount would still be payable to you hereunder had you continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to your devisee, legatee or other designee or,
if there is no such designee, to your estate.

          7.   Notice. For the purpose of this Agreement, notices and all other
               ------
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this
Agreement, provided that all notices to the Corporation shall be directed to the
attention of the Board with a copy to the Secretary of the Corporation, or to
such other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon receipt.

          8.   Confidentiality and Non-Solicitation Covenants.
               ----------------------------------------------

          (a)  Confidentiality. You hereby agree that commencing on the Date of
               ---------------
Termination, you shall not, directly or indirectly, disclose or make available
to any person, firm, corporation, association or other entity for any reason or
purpose whatsoever, any Confidential Information (as defined below). You agree
that, upon termination of your employment with the Company, all Confidential
Information in your possession that is in written or other tangible form
(together with all copies or duplicates thereof, including computer files) shall
be returned to the Corporation and shall not be retained by you or furnished to
any third party, in any form except as provided herein; provided, however, that
you shall not be obligated to treat as confidential, or return to the
Corporation copies of any Confidential Information that (i) was publicly known
at the time of disclosure to you, (ii) becomes publicly known or available
thereafter other than by any means in violation of this Agreement or any other
duty owed to the

                                       14
<PAGE>

Company by any person or entity, or (iii) is lawfully disclosed to you by a
third party. As used in this Agreement, the term "Confidential Information"
means: information disclosed to you or known by you as a consequence of or
through your relationship with the Company, about the customers, employees,
business methods, public relations methods, organization, procedures or
finances, including, without limitation, information of or relating to customer
lists, of the Company.

          (b)  Non-Solicitation. You hereby agree that, for the period
               ----------------
commencing on the Date of Termination and terminating on the first anniversary
thereof, you shall not, either on your own account or jointly with or as a
manager, agent, officer, employee, consultant, partner, joint venturer, owner or
shareholder or otherwise on behalf of any other person, firm or corporation,
directly or indirectly solicit or attempt to solicit away from the Company any
of its officers or employees or offer employment to any person who, on or during
the six (6) months immediately preceding the date of such solicitation or offer,
is or was an officer or employee of the Company; provided, however, that a
general advertisement to which an employee of the Company responds shall in no
event be deemed to result in a breach of this Section 8(b).

          9.   Governing Law. The validity, interpretation, construction and
               -------------
performance of this Agreement shall be governed on a non-exclusive basis by the
laws of the State of California without giving effect to its conflicts of laws
rules.

          10.  Joint and Several Liability. Any successors or assigns shall be
               ---------------------------
jointly and severally liable with the Corporation under this Agreement.

          11.  Miscellaneous. No provision of this Agreement may be modified,
               -------------
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by you and such officer as may be specifically designated
by the Board. No waiver by either party hereto at any time of any breach by the
other party hereto of or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement. All references to
sections of the Exchange Act or the Code shall be deemed also to refer to any
successor provisions to such sections. Any payments provided for hereunder shall
be paid net of any applicable withholding required under federal, state or local
law. Any obligations of the Corporation under Sections 5 and 6 shall survive the
expiration of the term of this Agreement. The section headings contained in this
Agreement are for convenience only, and shall not affect the interpretation of
this Agreement.

          12.  Severability. The invalidity or unenforceability of any provision
               ------------
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

                                       15
<PAGE>

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

          14.  Arbitration; Dispute Resolution, Etc.
               ------------------------------------

          (a)  Arbitration Procedure. Any disagreement, dispute, controversy or
               ---------------------
claim arising out of or relating to this Agreement or the interpretation of this
Agreement or any arrangements relating to this Agreement or contemplated in this
Agreement or the breach, termination or invalidity thereof shall be settled by
final and binding arbitration administered by the JAMS/Endispute in Los Angeles,
California in accordance with its then existing JAMS/Endispute Arbitration Rules
and Procedures for Employment Disputes. In the event of such an arbitration
proceeding, you and the Corporation shall select a mutually acceptable neutral
arbitrator from among the JAMS/Endispute panel of arbitrators. In the event you
and the Corporation cannot agree on an arbitrator, the Administrator of
JAMS/Endispute will appoint an arbitrator. Neither you nor the Corporation nor
the arbitrator shall disclose the existence, content, or results of any
arbitration hereunder without the prior written consent of all parties. Except
as provided herein, the Federal Arbitration Act shall govern the interpretation,
enforcement and all proceedings under this Section 14. The arbitrator shall
apply the substantive law (and the law of remedies, if applicable) of the State
of California, or federal law, or both, as applicable and the arbitrator is
without jurisdiction to apply any different substantive law. The arbitrator
shall have the authority to entertain a motion to dismiss and/or a motion for
summary judgment by any party and shall apply the standards governing such
motions under the Federal Rules of Civil Procedure. The arbitrator shall render
an award and a written, reasoned opinion in support thereof. Judgment upon the
award may be entered in any court having jurisdiction thereof. For purposes of
jurisdiction and venue, the Corporation hereby consents to jurisdiction and
venue in any suit, action or proceeding with respect to this Agreement in any
court of competent jurisdiction in the state in which you reside at the
commencement of such suit, action or proceeding and waives any objection,
challenge or dispute as to such jurisdiction or venue being proper. The
Corporation shall pay all fees and expenses of the Arbitrator regardless of the
result and shall provide all witnesses and evidence reasonably required by you
to present your case.

          (b)  Compensation During Dispute, Etc. Your compensation during any
               --------------------------------
disagreement, dispute, controversy, claim, suit, action or proceeding
(collectively, a "Dispute") arising out of or relating to this Agreement or the
interpretation of this Agreement shall be as follows. If there is a termination
of your employment with the Company after a Change in Control followed by a
Dispute as to whether you are entitled to the payments and other benefits
provided under this Agreement, then, during the period of that Dispute the
Corporation shall pay you fifty percent (50%) of the amount specified in
Sections 5(c)(i) and 5(c)(ii) hereof, and the Corporation shall provide you with
the other benefits provided in Section 5(c) of this Agreement, if, but only if,
you agree in writing that if the Dispute is resolved against you, you shall
promptly

                                       16
<PAGE>

refund to the Corporation all payments you receive under Sections 5(c)(i) and
5(c)(ii) of this Agreement plus interest at the rate provided in Section 1274(d)
of the Code, compounded quarterly. If the Dispute is resolved in your favor,
promptly after resolution of the dispute the Corporation shall pay you the sum
that was withheld during the period of the Dispute plus interest at the rate
provided in Section 1274(d) of the Code, compounded quarterly.

          (c)  Legal Fees. In addition to all other amounts payable to you under
               ----------
this Agreement, the Corporation shall pay to you all legal fees and expenses
incurred by you in connection with any Dispute arising out of or relating to
this Agreement or the interpretation thereof (including, without limitation, all
such fees and expenses, if any, incurred in contesting or disputing any
termination of your employment or in seeking to obtain or enforce any right or
benefit provided by this Agreement, or in connection with any tax audit or
proceeding to the extent attributable to the application of Section 4999 of the
Code to any payment or benefit provided hereunder), regardless of the outcome of
such proceeding; provided, however, that in the event you commence such action,
you shall not be entitled to recover such fees and costs if the court determines
that you brought the claim in bad faith or the claim was frivolous. Any
attorney's fees incurred by you shall be paid by the Corporation in advance of
the final disposition of such action or challenge, as such fees and expenses are
incurred; provided, however, that you agree to repay such amounts, net of any
income taxes paid or payable by you with respect to such amounts, if such
amounts are incurred in connection with an action commenced by you if it is
ultimately determined by the court that you brought such action in bad faith or
the claim was frivolous.

          15.  At-Will Employment. Nothing in the foregoing diminishes or alters
               ------------------
the Company's policy of at-will employment for all employees, where both the
Company and you may terminate the employment relationship at any time and for
any reason, with or without cause or notice.

          16.  Entire Agreement. This Agreement sets forth the entire agreement
               ----------------
of the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto; and any prior agreement
of the parties hereto in respect of the subject matter contained herein,
including, without limitation, any prior severance agreements, is hereby
terminated and cancelled. Notwithstanding the foregoing, this Agreement shall
not supersede the Employment Agreement. Any of your rights hereunder shall be in
addition to any rights you may otherwise have under benefit plans or agreements
of the Company to which you are a party or in which you are a participant,
including, but not limited to, any Company sponsored employee benefit plans and
stock options plans. Provisions of this Agreement shall not in any way abrogate
your rights under such other plans and agreements.

                                       17
<PAGE>

          If this letter sets forth our agreement on the subject matter hereof,
kindly sign and return to the Corporation the enclosed copy of this letter,
which shall then constitute our agreement on this subject.

                                            Sincerely,

                                            SCPIE HOLDINGS INC.

                                            By: ______________________________

                                            Its:______________________________

Agreed to this 14th day
of December, 2000.

_____________________________
[Executive]

                                       18

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