Document:

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                                                                    Exhibit 10.6

                         EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement"), made this ____ day of August,
2001, by and between First Reliance Bank and First Reliance BancShares Corp., a
South Carolina banking corporation with principal offices located at 2170 West
Palmetto Street, Florence, South Carolina 29501 (collectively "the Bank"), and
Paul C. Saunders, of Florence, South Carolina ("the Executive").

WHEREAS the Executive is, as of the date hereof, employed by the Bank as Senior
Vice-President of the Bank, and the Bank desires to insure the Executive's
continued employment; and

WHEREAS the Bank and the Executive mutually desire that their employment
relationship be set forth under the terms of a written employment agreement;

NOW, THEREFORE, in consideration of the foregoing and of the promises and mutual
agreements set forth below, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto do
hereby agree as follows:

1. Employment. The Bank agrees to employ the Executive, and the Executive agrees
   ----------
to serve the Bank, on the terms and conditions set forth herein.

2. Term. Unless earlier terminated as provided herein, the Executive's
   ----
employment hereunder shall be for a term of three years ("Term") commencing on
March 1, 2001 and ending on March 1, 2004. This Agreement shall be deemed to
extend each month for an additional month automatically without any action on
behalf of either party hereto; provided, however, that either party may, by
written notice to the other, cause this Agreement to cease to extend
automatically, and upon such notice the Term of this Agreement shall be the
three years following the date of such notice, and this Agreement shall
terminate upon the expiration of such Term. Notwithstanding the foregoing, no
extension shall be granted that would extend the Term of this Agreement beyond
the last day of the month during which the Executive attains age 65.

3. Position and Duties. The Executive shall serve as Senior Vice-President, and
   -------------------
shall perform all duties, authorities, and responsibilities as set forth in the
Bylaws of the Bank, and shall assume such additional responsibilities and
authority as may from time to time be assigned to him by the Board of Directors
of the Bank ("Board of Directors"). The Executive shall perform his
responsibilities and duties in the best interest of the Bank and its
stockholders. The Board of Directors may in its sole discretion reassign the
Executive to an alternative position as long as his compensation and benefits
remain consistent with paragraphs a. and b. of Section 5 and apply to the
Executive's position assigned by the Board.

4. Place of Performance. The Executive shall be based in Florence, South
   --------------------
Carolina, subject to reasonable travel necessary to the business of the Bank.

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5.   Compensation and Benefits. In consideration of the Executive's performance
     -------------------------
of his duties hereunder, the Bank shall provide the Executive with the following
compensation and benefits during the Term hereof.

     a.   Base Salary. The Bank shall pay the Executive a base salary at the
          -----------
          rate of $82,000 per annum ("Base Salary") in accordance with the
          salary payment practices of the Bank. The Compensation Committee of
          the Board of Directors ("Compensation Committee") shall review the
          Executive's salary at the beginning of each of its fiscal years and,
          at the sole discretion of the Committee, may increase or decrease the
          Executive's Base Salary for such year, provided that at no time shall
          the Bank pay the Executive less than the median base salary of
          comparable executive officers of banks in the Southeastern United
          States with similar total assets (currently $50,000,000 to
          $100,000,000) based on the then-current Sheshunoff Information
          Services Survey (or, for any year in which Sheshunoff does not provide
          a survey, the then-current surveys by the American Bankers Association
          and the Independent Bankers of America). Annual performance reviews
          will be conducted and will include evaluation of forward-thinking,
          supervisory, and team skills, and the effort necessary to keep the
          Bank competitive. The Compensation Committee reserves the right to
          decrease the Executive's Base Salary if a CAMEL rating of at least "2"
          is not maintained.

     b.   Incentive Bonus. If mutually agreeable individual and team performance
          ---------------
          criteria and budgeted profit targets are met, the Compensation
          Committee will approve, within 90 days of the close of each calendar
          year, an incentive bonus for the Executive.

     c.   Stock  Options. In the event that the Bank obtains additional capital
          --------------
          in a public offering, the Bank will issue additional options to the
          Executive to ensure that the Executive's options for 5% of the Bank's
          outstanding shares are not diluted by the additional capitalization.

     d.   Business Expenses. The Bank shall reimburse the Executive for all
          -----------------
          reasonable and necessary expenses incurred by the Executive in his
          performance of services hereunder, including but not limited to
          expenses for business travel, upon presentation of itemized accounts
          and receipts for any single expense in excess of $50. Business mileage
          shall be reimbursed at the approved IRS rate. Reimbursement for
          airfare other than coach class shall require the prior written
          approval of an officer of the Board of Directors.

     e.   Health and Disability Insurance. The Bank shall provide full health
          --------------------------------
          insurance coverage for the Executive, his spouse, and his dependents
          until the Executive reaches age 65. The Bank shall provide disability
          insurance coverage for the Executive until the Executive reaches age
          65.

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     f.   Life Insurance. The Bank shall purchase and maintain term life
          --------------
          insurance coverage providing a death benefit of $500,000 payable to
          any beneficiary or beneficiaries designated by the Executive. The
          policy will be convertible to an Executive-owned policy at the
          Executive's discretion and, (A) at the Executive's expense, if his
          employment with the Bank is terminated for the reasons described in
          Section 6.b. below, or (B) at the Bank's expense, if his employment
          with the Bank terminated for the reasons described in Sections 6.c. or
          6.d. below. The policy shall not be required to be paid-up after such
          conversion, and the Executive shall be solely responsible for paying
          premiums on the policy after such conversion.

     g.   Other Benefits.  The Executive shall be entitled to participate in all
          --------------
          other benefits accorded to Bank employees.

     h.   Withholding.  The Bank may deduct from each payment of compensation
          -----------
          hereunder all amounts required to be deducted and withheld in
          accordance with applicable federal and state income, FICA, and other
          withholding requirements.

6.   Compensation and Benefits in the Event of Termination. In the event of the
     -----------------------------------------------------
termination of the Executive's employment by the Bank or by the Executive during
the Term of this Agreement, compensation and benefits shall be paid as set forth
below.

     a.   Definitions. For purposes of this Agreement, the following terms shall
          -----------
          have the meanings indicated:

          (1)  "Cause" shall mean (A) the breach by the Executive of any
               material provision of this Agreement, provided that the Bank
               gives the Executive written notice of such failure and such
               failure is not cured within 30 days thereafter; (B) the willful
               and continued failure by the Executive to substantially perform
               his duties under this Agreement (other than the Executive's
               inability to perform, with or without reasonable accommodation,
               resulting from his incapacity due to physical or mental illness
               or impairment), after a written demand for substantial
               performance is delivered to him by the Board of Directors, which
               demand specifically identifies the manner in which the Executive
               is alleged to have not substantially performed his duties; (C)
               the willful engaging by the Executive in misconduct which is
               materially injurious to the Bank, its officers, directors,
               shareholders, employees, or customers; (D) the Executive's
               conviction of a felony; or (E) the commission in the course of
               the Executive's employment of an act of fraud, embezzlement,
               theft or proven dishonesty, or any other illegal act or practice,
               which would constitute a felony (whether or not resulting in
               criminal prosecution or conviction), or any act or practice which
               the Bank shall, in good faith, deem to have resulted in the
               Executive becoming unbondable under the Bank's "banker's blanket
               bond." Notwithstanding the foregoing, the Executive shall

                                       3

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               not be deemed to have been terminated for Cause unless and until
               the Executive has been afforded a reasonable opportunity,
               together with his counsel, to be heard before the Board of
               Directors, and a written finding has been delivered to him to the
               effect that in the good faith opinion of the Board of Directors,
               the Executive is guilty of conduct as set forth under clause (A),
               (B), (C), (D), or (E) of the first sentence of this
               sub-paragraph, specifying in writing the particulars thereof in
               detail.

          (2)  "Change in Control" shall mean either:

               (a)  the acquisition, directly or indirectly, by any "person" (as
                    such term is defined for purposes of Section 13(d) and 14(d)
                    of the Securities Exchange Act of 1934 ("Exchange Act")), of
                    the "beneficial ownership" (as such Term is defined for
                    purposes of section 13(d) (1) of the Exchange Act) of shares
                    in the Bank which, when added to any other shares
                    "beneficially owned," such acquirer shall have 50% or more
                    of the combined voting power of the Bank's then outstanding
                    voting securities; or

               (b)  the occurrence of any merger, consolidation or
                    reorganization to which the Bank is a party and to which the
                    Bank is not a surviving entity, or the sale of all or
                    substantially all of the assets of the Bank.

          (3)  "Date of Termination" shall mean: (A) if the Executive's
               employment is terminated by reason of his death, his date of
               death; (B) if the Executive's employment is terminated for
               Disability, 30 days after Notice of Termination is given
               (provided that the Executive shall not have returned to the
               performance of his duties as provided under sub-paragraph (4) of
               this paragraph a.); or (C) if the Executive's employment is
               terminated for Cause, the date specified in the Notice of
               Termination; provided, however, that if within 30 days after any
               Notice of Termination is given, the Executive notifies the Bank
               that a dispute exists concerning the termination, the Date of
               Termination shall be the date on which the dispute is finally
               resolved, either by mutual written agreement of the parties, or
               by a final judgment, order, or decree of a court of competent
               jurisdiction (the time for appeal therefrom having expired and no
               appeal having been perfected).

          (4)  "Disability" shall mean the Executive's failure to satisfactorily
               perform the essential functions of his office on a full-time
               basis for 180 consecutive days, with or without accommodation, by
               reason of the Executive's incapacity resulting from physical or
               mental illness or impairment, except where within 15 days after
               Notice of Termination is given following such absence, the
               Executive shall have returned to the satisfactory, full-time
               performance of such duties. Any

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               determination of Disability hereunder shall be made by the Board
               of Directors in good faith and on the basis of the certificates
               of at least three qualified physicians chosen by it for such
               purpose, one of whom shall be the Executive's regular attending
               physician.

          (5)  "Good Reason" shall mean either:

               (a)  Failure by the Bank to comply with any material provision of
                    this Agreement, provided that the Executive gives the Bank
                    written notice of such failure and such failure is not cured
                    within 30 days thereafter;

               (b)  Failure by the Bank to obtain the assumption of its
                    obligations under this Agreement by any successor;

               (c)  The occurrence of any of the following:

                    (i)   Without the Executive's express written consent, a
                          reduction in the Executive's position that results in
                          the Executive no longer being in an executive officer
                          position, except in connection with the termination of
                          his employment for Cause, Disability, or Retirement,
                          or as a result of his death;

                    (ii)  Without the Executive's express written consent, the
                          Bank's requiring him to be based anywhere other than
                          in Florence, South Carolina except for required travel
                          on the Bank's business consistent with his business
                          travel obligations immediately prior to such Change in
                          Control; or

                    (iii) The failure by the Bank to comply with Section 5 of
                          this Agreement; or

               (d)  Any purported termination of the Executive's employment by
                    action of the Bank which is not effected pursuant to a
                    Notice of Termination.

          (6)  "Notice of Termination" shall mean a written notice which shall
               include the specific termination provision under this Agreement
               relied upon, and shall set forth in reasonable detail the facts
               and circumstances claimed to provide a basis for termination of
               the Executive's employment.

          (7)  "Retirement" shall mean termination of the Executive's employment
               pursuant to the Bank's regular retirement policy applicable to
               the position held by the Executive at the time of such
               termination.

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     b.   Termination For Cause, For Other Than For Good Reason, Or For
          -------------------------------------------------------------
          Disability, Death, Or Retirement. In the event the Executive's
          --------------------------------
          employment hereunder is terminated (A) by action of the Bank for
          Cause; (B) by action of the Executive not for Good Reason; or (C) by
          reason of the Executive's death, Disability, or Retirement, the
          following compensation and benefits shall be paid and provided the
          Executive (or his beneficiary or beneficiaries):

          (1)  The Executive's Base Salary provided for under paragraph a. of
               Section 5 through the last day of the month in which the Date of
               Termination occurs, at the annual rate in effect at the time
               Notice of Termination is given (or death occurs), to the extent
               unpaid prior to such Date of Termination;

          (2)  Any incentive bonus under paragraph b. of Section 5 which has
               been awarded prior to the Date of Termination, to the extent
               unpaid prior to such date;

          (3)  Any benefits to which the Executive (or his beneficiary or
               beneficiaries) may be entitled as of the Date of Termination
               under the insurance coverages or benefits identified in
               paragraphs e. f. and i. of Section 5; and

          (4)  Any amounts due the Executive with respect to paragraph d. of
               Section 5 as of the Date of Termination.

     c.   Termination For Good Reason Or For Other Than Cause Not Following a
          -------------------------------------------------------------------
          Change In Control. In the event the Executive's employment hereunder
          -----------------
          is terminated (A) by action of the Executive not following a Change in
          Control and for Good Reason, or (B) by action of the Bank not
          following a Change in Control and other than for Cause, the Bank shall
          pay and provide the Executive the compensation and benefits stipulated
          under paragraph b. immediately above; provided, however, in addition
          thereto and without set-off, the following compensation shall be paid
          and provided the Executive:

          (1)  The Bank shall continue to pay the Executive the Base Salary
               provided for in Section 5.a. above at the annual rate in effect
               at the time Notice of Termination is given, plus the Executive's
               incentive bonus for the calendar year immediately prior to the
               Date of Termination, for a period of three years from the Date of
               Termination, on a monthly basis.

          (2)  In addition, the Bank will continue to provide the Executive with
               the insurance coverages he would have had had he remained as an
               employee of the Bank at the Executive's expense at COBRA rates.

                                       6

<PAGE>

     d.   Termination For Good Reason Or For Other Than Cause Following A Change
          ----------------------------------------------------------------------
          In Control. In the event the Executive's employment hereunder is
          ----------
          terminated (A) by action of the Executive following a Change in
          Control and for Good Reason, or (B) by action of the Bank following a
          Change in Control and other than for Cause, the Bank shall pay and
          provide the Executive the compensation and benefits stipulated under
          paragraph b. above; provided, however, in addition thereto and without
          set-off, the compensation provided in subparagraphs (1), (2), (3), and
          (4) of this paragraph d. shall be paid to the Executive. However, the
          Bank may prospectively terminate payments under this paragraph d. if
          the Executive accepts employment by or acquires a meaningful ownership
          position in a community, commercial, or consumer bank within a 25-mile
          radius of any branch of the Bank.

          (1)  The Bank shall continue to pay to the Executive 110% of the Base
               Salary provided for in Section 5.a. above at the annual rate in
               effect at the time Notice of Termination is given for a period of
               two years from the Date of Termination, on a monthly basis.

          (2)  In addition, the Bank shall pay to the Executive a severance
               payment of the sum of two times the Base Salary provided for in
               Section 5.a. above at the annual rate in effect at the time
               Notice of Termination is given and two times the Executive's
               incentive bonus for the calendar year immediately prior to the
               Date of Termination. Such severance payment shall be payable over
               four years from the Date of Termination at such frequencies and
               in such amounts as the Executive shall dictate, but not more
               frequently than monthly.

          (3)  In addition, at its sole cost and expense, the Bank will continue
               to provide the Executive with the insurance coverages he would
               have had had he remained as an employee of the Bank.

          (4)  If the payments due to the Executive under subparagraphs (1),
               (2), and (3) of this paragraph d. would constitute a "parachute
               payment," as defined in Section 280G of the Internal Revenue Code
               of 1986, as amended (the "Code"), and would be subject to the
               excise tax imposed by Section 4999 of the Code, then the Bank
               shall pay to the Executive an additional "gross-up" payment in an
               amount such that the net amount retained by the Executive, after
               the deduction of the excise tax, shall equal the amount of the
               payments due to the executive under subparagraphs (1), (2), and
               (3) of this paragraph d.

7.   Confidentiality.
     ---------------

     a.   For the purposes of this Agreement, "Confidential Information" means
          any data or information that is material to the Bank and not generally
          known by the public.

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<PAGE>

     b.   The Executive agrees to abide by all of the Bank's rules and
          procedures designed to protect its Confidential Information and to
          preserve and maintain all such information in strict confidence during
          the Executive's employment with the Bank and as long thereafter as the
          Confidential Information remains, in the sole opinion of the Bank,
          proprietary and confidential to the Bank. The Executive agrees not to
          use, disclose, or in any other way disseminate any Confidential
          Information to any person not properly authorized by the Bank.

8.   Return of Materials. Upon the request of the Bank, and in any event, upon
     -------------------
the termination of the Executive's employment, the Executive must return to the
Bank and leave at the disposal of the Bank, all memoranda, notes, records, and
other documents pertaining to the business of the Bank (including all copies of
such materials). The Executive must also return to the Bank and leave at the
disposal of the Bank all materials involving any Confidential Information of the
Bank.

9.   Restrictive Covenant. In consideration of the Bank's employment of the
     --------------------
Executive, the Executive agrees that in addition to any other limitation, for a
period of one year after the termination of his employment hereunder, he will
not, within a 25-mile radius of any branch of the Bank, manage, operate, be
employed by, participate in, or be connected in any manner with the management,
operation, or control of any community, commercial, or consumer bank.

10.  Remedies for Breach of Employment Contract. Irreparable harm shall be
     ------------------------------------------
presumed if the Executive breaches the covenants contained in Sections 7, 8, or
9 of this Agreement. The faithful observance of such covenants is an essential
condition to the Executive's employment, and the Bank is depending upon absolute
compliance. Damages would be very difficult to ascertain if the Executive
breached any such covenant. This Agreement is intended to protect the
proprietary rights of the Bank. In light of these facts, the Executive agrees
that any court of competent jurisdiction may immediately enjoin any breach of
this Agreement, upon the request of the Bank, and the Executive specifically
releases the Bank from the requirement to post any bond in connection with any
temporary or interlocutory injunctive relief, to the extent permitted by law.

11.  Notices. All notices, requests, demands and other communications provided
     -------
for by this Agreement shall be in writing and shall be sufficiently given if and
when mailed in the continental United States by registered or certified mail, or
personally delivered to the party entitled thereto, at the address stated below
or to such changed address as the addressee may have given by a similar notice:

                  To the Bank:      Mr. Leonard A. Hoogenboom
                                    Chairman of the Board of Directors
                                    First Reliance Bank
                                    P. O. Box 5658
                                    Florence, South Carolina  29502

                  With copy to:     Craig M. Garner, Jr., Esq.

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<PAGE>

                               McNair Law Firm, P.A.
                               P.O. Box 11390
                               Columbia, South Carolina 29211

           To the Executive:   Mr. Paul C. Saunders
                               Senior Vice-President
                               First Reliance Bank
                               2170 West Palmetto Street
                               Florence, South Carolina 29501

           With copy to:       David E. Dubberly, Esq.
                               Nexsen, Pruet, Jacobs & Pollard, L.L.C.
                               P.O. Box 2426
                               Columbia, South Carolina  29202

12. Successors; Binding Agreement. This Agreement shall be binding on any
    -----------------------------
successors to the Bank, including any person or entity that may acquire all or
part of the ownership interest in the Bank through merger, consolidation,
reorganization, or otherwise. Upon acquisition of all or part of the ownership
interest in the Bank, the acquiring person or entity shall be deemed to be
substituted for the Bank for all purposes under this Agreement. This Agreement
shall inure to the benefit of and be enforceable by the Executive's personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees, and legatees. If the Executive should die while any
amount would still be payable to him hereunder if he had continued to live, all
such amounts, except to the extent otherwise provided under this Agreement,
shall be paid in accordance with the terms of this Agreement to his devisee,
legatee, or other designee, or if there be no such designee, to the Executive's
estate.

13. Modification, Waiver, or Discharge. No provision of this Agreement may be
    ----------------------------------
modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in a writing signed by the Executive and an authorized officer of
the Bank. 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; provided, however,
that this Agreement shall not supersede or in any way limit the right, duties,
or obligations that the Executive or the Bank may have under any other written
agreement between such parties, under any employee pension benefit plan or
employee welfare benefit plan as defined under the Employee Retirement Income
Security Act of 1974, as amended, and maintained by the Bank, or under any
established personnel practice or policy applicable to the Executive.

14. Governing Law. The validity, interpretation, construction, and performance
    -------------
of this Agreement shall be governed by the laws
of the State of South Carolina.

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15.  Validity. 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 latter shall remain in full force and effect.

16.  No Right of Set-off or Counterclaim. There shall be no right of set-off or
     -----------------------------------
counterclaim, in respect of any claim (other than a claim for violation of this
Agreement), debt, or obligation against any payments to the Executive, his
beneficiaries, or estates provided for in this Agreement.

17.  Non-Assignability. No right, benefit, or interest hereunder shall be
     -----------------
subject to anticipation, alienation, sale, assignment, encumbrance, charge,
pledge, hypothecation, or set-off in respect of any claim, debt or obligation,
or to execution, attachment, levy, or similar process, or assignment by
operation of law. Any attempt, voluntary or involuntary, to effect any action
specified in the immediately preceding sentence shall, to the full extent
permitted by law, be null, void, and of no effect. Any of the foregoing to the
contrary notwithstanding, this provision shall not preclude the Executive from
designating one or more beneficiaries to receive any amount that may be payable
after his death, and shall not preclude the legal representative of the of the
Executive's estate from assigning any right hereunder to the person or persons
entitled thereto under his will or, in the case of intestacy applicable to his
estate.

18.  Enforcement of Agreement; Attorneys' Fees. In the event litigation is
     -----------------------------------------
commenced by the Executive against the Bank in seeking to obtain or enforce any
right, benefit or payment under this Agreement or to enforce any obligation of
the Bank described herein, then, provided the Executive shall prevail in such
litigation, the Bank shall be obligated to pay all reasonable expenses
(including without limitation all reasonable attorney's fees and court costs)
paid or incurred by the Executive in connection with such litigation.

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

     IN WITNESS WHEREOF, the Executive and the Bank have executed this Agreement
effective as of the date first above written.

ATTEST: _____________________            First Reliance Bank
                                         By: ______________________________
                                             Leonard A. Hoogenboom
                                             Chairman of the Board of Directors

                                         Paul C. Saunders
ATTEST: _____________________            _________________________________

                                       10<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

                  This Employment Agreement ("Agreement") is entered into as of
May 1, 2002 by and between SCPIE Management Company, a California corporation
("Employer"), and Timothy C. Rivers (the "Executive"), and, solely for the
purposes of Section 3.6, SCPIE Holdings Inc., a Delaware corporation ("SCPIE
Holdings").

                                    RECITALS
                                    --------

                  WHEREAS, Employer has employed Executive as the Senior Vice
President in charge of the Assumed Reinsurance Division of the insurance company
subsidiaries of SCPIE Holdings (such companies collectively referred to as the
"SCPIE Companies") pursuant to the terms of an Agreement Regarding Employment
Relationship effective as of August 1, 1999 between Employer and Executive (the
"1999 Agreement"); and

                  WHEREAS, Employer desires to be assured of the continued
employment of Executive in such capacity for the term of this Agreement, on the
terms and conditions set forth below; and

                  WHEREAS, Executive desires and is willing to continue his
employment with Employer for the term of this Agreement, on such terms and
conditions set forth below; and

                  WHEREAS, Employer and Executive desire to enter into this
Agreement to supercede in its entirety the 1999 Agreement.

                  NOW, THEREFORE, in consideration of the foregoing recitals and
the respective covenants and agreements of the parties contained in this
document, Employer and Executive agree as follows:

                                    ARTICLE I

                              EMPLOYMENT AND DUTIES
                              ---------------------

                  1.1 Position and Duties. Executive shall serve as a Senior
                      -------------------
Vice President of Employer and the senior executive officer of the Assumed
Reinsurance Division of the SCPIE Companies. Executive shall report directly to
the President and Chief Executive Officer of Employer, and shall discharge such
duties as are assigned to him from time as the senior executive officer of such
Assumed Reinsurance Division in a diligent and professional manner, on a
full-time basis and to devote his best efforts and his entire attention and
energy to such duties. During the Employment Term (as defined below), Employer
shall not reduce Executive's duties, position or responsibilities in a manner
inconsistent with Executive's status as Senior Vice President of Employer and
the senior executive officer of the Assumed Reinsurance Division without
Executive's express prior written consent.

                  1.2 Location. The place of employment of Executive shall be
                      --------
at Employer's offices located in Summit, New Jersey. During the Employment Term,
Employer shall not

<PAGE>

relocate Executive's assigned place of employment to a location which is more
than 25 miles removed from the current Summit office.

                  1.3 Outside Business Activities Precluded. During his
                      -------------------------------------
employment, Executive shall devote his full business time, energy and ability to
the performance of this Agreement. Executive shall not, without the prior
written consent of Employer, perform other business services of any kind or
engage in any other business activity, with or without compensation. In
addition, Executive shall not, during the term of this Agreement, without the
prior written consent of Employer, engage or prepare to engage in any business
activity adverse to Employer's interests.

                                   ARTICLE II

                                  COMPENSATION
                                  ------------

                  2.1 Salary. For Executive's services hereunder, Employer shall
                      ------
pay as base salary to Executive the amount of five hundred thousand dollars
($500,000) per year during each of the calendar years of the Employment Term
("Base Salary"), prorated for any year in which this Agreement is in effect for
only a portion of the calendar year. Said Base Salary shall be payable in equal
installments in conformity with Employer's normal payroll period.

                  2.2 Bonus. The Board of Directors of Employer may, in its
                      -----
discretion, from time to time award bonuses or other compensation to Executive;
provided, however, that during the time that Employer is a wholly-owned
subsidiary of SCPIE Holdings, Employer shall not provide any bonuses or
additional compensation under this Section 2.2 unless such bonus or increase has
been specifically approved in writing by SCPIE Holdings.

                  2.3 Other Benefits. During the Employment Term, Executive
                      --------------
shall be entitled to participate in and receive all other benefits of employment
available to Employer's other senior executive management personnel, including,
but not limited to, inclusion in Employer's retirement plans, medical plans
(including family coverage), life insurance and disability plans, vacation and
sick leave policies and other similar benefit plans, subject to, on a basis
consistent with and to the extent permitted by the terms, conditions and overall
administration of such plans. Employer may, in its sole discretion, grant such
additional benefits to Executive from time to time as Employer deems proper and
desirable.

                  2.4 Expenses. Executive shall be entitled to receive prompt
                      --------
reimbursement for all travel and reasonable business-related expenses incurred
by him during the Employment Term, including reimbursement for Executive's
travel-related expenses incurred in connection with domestic and foreign travel
in the course of discharging his duties to Employer, such reimbursements to be
made in accordance with the policies and procedures from time to time adopted by
Employer, provided that Executive properly accounts for such business expenses
in accordance with Employer's policies.

                  2.5 Deductions and Withholdings. All amounts payable or which
                      ---------------------------
become payable under any provision of this Agreement shall be subject to any
deductions authorized by Executive and any deductions, taxes and withholdings
required by law.

<PAGE>

                                   ARTICLE III

                               TERM OF EMPLOYMENT
                               ------------------

                  3.1 Term. The term of this Agreement shall commence on May 1,
                      ----
2002 and, unless terminated earlier in accordance with this Agreement, shall
continue until April 30, 2005 (the "Employment Term"). The parties agree that
not less than six months prior to the expiration of the Employment Term, they
shall meet to discuss the possible extension of this Agreement.

                  3.2 Termination for Cause. Executive's employment may be
                      ---------------------
terminated for Cause by the Board of Directors of Employer. Termination for
"Cause" shall mean (a) Executive's conviction of a felony involving moral
turpitude or (b) Executive's intentional or repeated failure to perform his
duties or obligations under this Agreement in any material respect, or his
intentional or repeated misconduct in the performance of such duties, in each
case after notice to Executive from the President of Employer which notice
specifies the nature of the failure or misconduct and refers specifically to
this Section 3.2 and a reasonable opportunity for Executive to correct such
failure or misconduct.

                  3.3 Termination Due to Death. Executive's employment
                      ------------------------
hereunder shall terminate immediately upon his death.

                  3.4 Termination Due to Disability. 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, then Employer may terminate Executive's
employment hereunder upon written notice to Executive.

                  3.5 Termination of Compensation and Benefits After Termination
                      ----------------------------------------------------------
of Employment. Upon termination of employment under this Agreement under Section
-------------
3.2 (Termination for Cause), all salary and benefits of Executive hereunder
shall cease immediately; provided that Executive shall be entitled to receive
his accrued but unpaid prorated Base Salary up to and including the date of such
termination including earned but unused vacation. Upon termination of employment
under Section 3.3 (Termination Due to Death), all earned but unused vacation
shall be paid to the estate of Executive promptly and all Base Salary and, to
the extent permitted by the applicable plan documents, benefits of Executive
hereunder shall continue to be paid and provided until the last day of the third
full month following death. Upon termination of employment under this Agreement
under Section 3.4 (Termination Due to Disability) Executive shall be entitled to
receive (i) his accrued but unpaid prorated Base Salary 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, plus (iii) to the extent permitted by the applicable plan documents,
all benefits for such six month period. All Base Salary (if any) payable under
this Section 3.5 shall be payable in equal installments in conformity with
Employer's normal payroll period.

                  3.6 Change in Control. In consideration of the compensation
                      -----------------
and other benefits provided by Employer under this Agreement, Executive,
Employer and SCPIE Holdings agree that

<PAGE>

that certain letter agreement, dated as of December 14, 2000, between SCPIE
Holdings and Executive, including any rights to receive payments thereunder, for
any Change in Control, as defined therein, occurring on or before April 30,
2003, and all other obligations of the parties thereunder, is hereby terminated
effective as of the date hereof and shall have no further force or effect.

                                   ARTICLE IV

                            CONFIDENTIAL INFORMATION
                            ------------------------

                  4.1 Confidential Information. Executive acknowledges and
                      ------------------------
agrees that the information, observations and data obtained by Executive
(whether in written form or orally) concerning the business or affairs of
Employer or any of its subsidiaries and affiliates, including, without
limitation, trade "know-how" secrets, customer lists, pricing policies,
operational methods, technical processes, formulae, inventions and research
projects, financial information, organizational and personnel matters, policies,
procedures and other non-public matters (and those of third parties) in the
course of Executive's employment with Employer prior to or after the date of
this Agreement ("Confidential Information") are the property of Employer or such
subsidiaries and affiliates. In consideration of, and as a condition to
continued access to, Confidential Information, and without prejudice to or
limitation on any other confidentiality obligations imposed by agreement or by
law, Executive hereby undertakes to use and protect all Confidential Information
in accordance with any restrictions placed on its use or disclosure. Without
limiting the foregoing, except as authorized by Employer or as required by law,
Executive may not disclose or allow disclosure of any Confidential Information,
or of any information derived therefrom, in whatever form, to any person unless
such person is a director, officer, employee, attorney or agent of Employer and,
in Executive's reasonable good faith judgment, has a need to know the
Confidential Information or information derived therefrom in furtherance of the
business of Employer. As used herein, Confidential Information shall not include
information which is generally known to the public or which is made available to
Executive by a source outside Employer which source is not bound by any
obligation of confidentiality to Employer.

                                    ARTICLE V

                               GENERAL PROVISIONS
                               ------------------

                  5.1 Entire Agreement. This Agreement contains the entire
                      ----------------
understanding and sole and entire agreement between the parties with respect to
the subject matter hereof and supersedes any and all prior agreements,
negotiations and discussions between the parties hereto with respect to the
subject matter covered hereby. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, oral or otherwise, have
been made by any party, or anyone acting on behalf of any party, which are not
embodied herein, and that no other agreement, statement or promise not contained
in this Agreement shall be valid or binding. This Agreement may not be modified
or amended by oral agreement, but rather only by an agreement in writing signed
by Executive and a member of the Board of Directors of Employer which
specifically states the intent of the parties to amend this Agreement. In the
event there is a conflict between this Agreement and any other agreement the
terms of this Agreement shall govern.

<PAGE>

                  5.2 Successors and Assignment. Neither this Agreement nor the
                      -------------------------
rights or obligations hereunder shall be assignable by Executive. Employer may
assign this Agreement only to any entity which succeeds to the entire business
of Employer, and upon such assignment any such successor shall be deemed
substituted for Employer upon the terms and subject to the conditions hereof.

                  5.3 Dispute Resolution. Any controversy or claim arising out
                      ------------------
of or relating to this Agreement, or the breach thereof, that cannot be resolved
between the parties in a timely manner shall be resolved through final and
binding arbitration before a single neutral arbitrator in Los Angeles,
California in accordance with the then-existing National Rules for Resolution of
Employment Disputes (the "Rules") of the American Arbitration Association
("AAA"), and judgment upon the award rendered by the arbitrator may be entered
in any court having competent jurisdiction thereof; provided, however, that the
law applicable to any controversy shall be the law of the State of California,
regardless of its or any other jurisdiction's choice of law principles.
Notwithstanding the above, nothing herein shall require Employer to arbitrate
any claim involving alleged breaches by Executive of his duties to maintain the
confidentiality of Employer's or any of Employer's affiliates' confidential or
proprietary information, including trade secrets. Such claims may be the subject
of a court action seeking legal or equitable relief. In addition, nothing herein
shall preclude Executive from seeking court action to obtain interim remedies
against Employer for Employer's breach of its obligations to Executive.

                  5.4 No Waiver. No waiver of any term, provision or condition
                      ---------
of this Agreement, whether by conduct or otherwise, in any one or more instances
shall be deemed or be construed as a further or continuing waiver of any such
term, provision or condition, or as a waiver of any other term, provision or
condition of this Agreement.

                  5.5 Governing Law; Rules of Construction. This Agreement has
                      ------------------------------------
been negotiated and executed in, and shall be governed by and construed in
accordance with the laws of, the State of California. Captions of the several
Articles and Sections of this Agreement are for convenience of reference only,
and shall not be considered or referred to in resolving questions of
interpretation with respect to this Agreement.

                  5.6 Notices. Any notice, request, demand or other
                      -------
communication required or permitted hereunder shall be deemed to be properly
given when personally served in writing, when received by the other party, or
when sent by overnight delivery via FedEx or comparable service and addressed to
Employer or Executive at his or its last-known address. Each party may change
its address by written notice in accordance with this Section or via facsimile
or e-mail.

                  Address for Employer:

                           SCPIE Management Company
                           1888 Century Park East
                           Suite 800
                           Los Angeles, California  90067
                           Attn:  Chief Executive Officer

<PAGE>

                  Address for Executive:

                           Timothy C. Rivers
                           329 Mountain Avenue
                           Westfield, New Jersey 07090

                  5.7 Severability. The provisions of this Agreement are
                      ------------
severable. If any provision of this Agreement shall be held to be invalid or
otherwise unenforceable, in whole or in part, the remainder of the provisions or
enforceable parts hereof shall not be affected thereby and shall be enforced to
the fullest extent permitted by law.

                  5.8 Multiple Counterparts. This Agreement may be executed in
                      ---------------------
one or more counterparts, including facsimile, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

                  5.9 Amendment of 1999 Agreement. The 1999 Agreement between
                      ---------------------------
Executive and Employer is hereby amended and restated in its entirety by this
Employment Agreement.

                            [Signature Page Follows]

<PAGE>

                  IN WITNESS  WHEREOF,  this Agreement has been executed and

delivered by the parties hereto as of the date first above written.

                                   SCPIE MANAGEMENT COMPANY

                                   By:      /s/ DONALD J. ZUK
                                        ----------------------------------------
                                   Name: Donald J. Zuk

                                   Its:  President and Chief Executive Officer

                                   EXECUTIVE

                                     /s/ TIMOTHY C. RIVERS
                                   ---------------------------------------------
                                   Timothy C. Rivers

                  IN WITNESS WHEREOF, SCPIE Holdings Inc. has executed this
Employment Agreement to become a party hereto solely for the purposes of Section
3.6.

                                   SCPIE HOLDINGS INC.

                                   By:      /s/ DONALD J. ZUK
                                        ----------------------------------------
                                   Name: Donald J. Zuk

                                   Its:  President and Chief Executive Officer

<PAGE>

                                   GUARANTY

         1. FOR VALUE RECEIVED and in consideration for, and as an inducement to
Timothy C. Rivers (the "Executive") concurrently entering into an Employment
Agreement dated as of May 1, 2002, with SCPIE Management Company, SCPIE Holdings
Inc. ("SCPIE Holdings") absolutely, irrevocably and unconditionally guarantees
to Executive, and his successors and assigns, the full and timely payment by
SCPIE Management Company to Executive of the compensation required to be paid
and benefits required to be provided by SCPIE Management Company to Executive
under Article II or Article III of said Agreement on the terms and conditions
set forth in said Agreement.

         2. This Guaranty is a guaranty of payment, not collection, and
Executive shall not be required to first pursue his remedies against SCPIE
Management Company but may instead proceed to enforce all of his rights and
remedies directly against SCPIE Holdings or against SCPIE Management Company and
SCPIE Holdings at the same time. This Guaranty cannot otherwise be terminated or
modified without the written consent of Executive. Guarantor hereby waives
notice of acceptance of this Guaranty, as well as all demands, presentments,
notices of protest and notices of every kind and nature.

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 before a single neutral arbitrator, such arbitration to
take place in New York, New York and judgment upon such award rendered by the
arbitrator may be entered in any court having jurisdiction.

         Executed in Los Angeles, California, as of May 1, 2002.

                                   SCPIE HOLDINGS INC.

                                   By:      /s/ DONALD J. ZUK
                                       -----------------------------------------
                                   Name: Donald J. Zuk
                                   Its: President and Chief Executive Officer

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