Document:

<PAGE>

                                                                   Exhibit 10.58

                      INSURANCE LETTERS OF CREDIT AGREEMENT

     We are pleased to advise you that Barclays Bank PLC (the "Bank") has agreed
to grant a line for the issue of Letters of Credit (each a "Credit" and together
the "Credits") to be issued upon and subject to the terms and conditions set out
below and overleaf and on the attached Special Conditions, if any (as the same
may from time to time be amended by written agreement between us).

<TABLE>
<S>                                                  <C>          <C>
NAME:   SCPIE Holdings Inc.  ("SCPIE")               ADDRESS:     1888 Century Park East
                                                                  Suite 800
                                                                  Los Angeles, California 90067

                                                     FAX:         +310-551-5924

NAME:   SCPIE Indemnity Company                      ADDRESS:     1888 Century Park East
        ("SCPIE Indemnity")                                       Suite 800
                                                                  Los Angeles, California 90067

                                                     FAX:         +310-551-5924

NAME:  American Healthcare Indemnity Company         ADDRESS:     1888 Century Park East
("American Healthcare")                                           Suite 800
                                                                  Los Angeles, California 90067

                                                     FAX:         +310-551-5924

NAME:  American Healthcare Specialty                 ADDRESS:     1888 Century Park East
       Insurance Company  ("American Specialty")                  Suite 800
                                                                  Los Angeles, California 90067

                                                     FAX:         +310-551-5924
</TABLE>

SCPIE, SCPIE Indemnity, American Healthcare and American Specialty (each, a
---------------------------------------------------------------------------
"Company" and together, the "Companies")
----------------------------------------
SECURITY ARRANGEMENTS

AS SET OUT IN THE ACCOMPANYING FACILITY LETTER OF EVEN DATE (the "Facility
Letter").

--------------------------------------------------------------------------------
INTEREST RATE FOR PURPOSES OF CLAUSE 8.2

2.00% per annum above Barclays US Dollar Base Rate.

--------------------------------------------------------------------------------
COMMISSION RATES FOR PURPOSES OF CLAUSE 9.1

AS SET OUT IN THE ACCOMPANYING FACILITY LETTER.

--------------------------------------------------------------------------------

for BARCLAYS BANK PLC

By .../s/ NEIL HOLMES ....................        Date:  15/th/ November    2001
Name......Neil Holmes ....................
Title....Relationship Directors ..........

This offer is accepted by SCPIE Holdings Inc. pursuant to a resolution of its
board of directors, dated 2001 and a copy of such resolution, certified by a
director or the Secretary of SCPIE Holdings Inc. to be a true, complete and
up-to-date copy, is attached hereto.

for and on behalf of SCPIE HOLDINGS INC.

By .../s/ PATRICK T. LO ..................        Date:  15/th/ November    2001
Name......Patrick T. Lo ..................
Title Senior Vice President and Chief Financial
Officer

<PAGE>

This offer is accepted by SCPIE Indemnity Company pursuant to a resolution of
its board of directors, dated             2001 and a copy of such resolution,
certified by a director or the Secretary of SCPIE Indemnity Company to be a
true, complete and up-to-date copy, is attached hereto.

for and on behalf of SCPIE INDEMNITY COMPANY

By .../s/ PATRICK T. LO ..................        Date:  15/th/ November    2001
Name......Patrick T. Lo ..................
Title Senior Vice President and Chief Financial
Officer

This offer is accepted by American Healthcare Indemnity Company pursuant to a
resolution of its board of directors, dated                 2001 and a copy of
such resolution, certified by a director or the Secretary of American Healthcare
Indemnity Company to be a true, complete and up-to-date copy, is attached
hereto.

for and on behalf of AMERICAN HEALTHCARE INDEMNITY COMPANY

By .../s/ PATRICK T. LO ..................        Date:  15/th/ November    2001
Name......Patrick T. Lo ..................
Title Senior Vice President and Chief Financial
Officer

This offer is accepted by American Healthcare Specialty Insurance Company
pursuant to a resolution of its board of directors, dated 2001 and a copy of
such resolution, certified by a director or the Secretary of American Healthcare
Specialty Insurance Company to be a true, complete and up-to-date copy, is
attached hereto.

for and on behalf of AMERICAN HEALTHCARE SPECIALTY INSURANCE COMPANY

By .../s/ PATRICK T. LO ..................        Date:  15/th/ November    2001
Name......Patrick T. Lo ..................
Title Senior Vice President and Chief Financial
Officer

                                INSURANCE BANKING

                          PO Box 544, 54 Lombard Street
                                 London EC3V 9EX
                    E-Mail: insurance.banking@barclays.co.uk
       Telephone: +44 (0)20 7699 3312       Facsimile: + 44 (0)20 7699 2407

<PAGE>

                      INSURANCE LETTERS OF CREDIT AGREEMENT

                               Special Conditions

1.   Without prejudice to the generality of clause 2 of Conditions, the Bank
     shall not be under an obligation to issue a Credit unless it has received
     the following in form and substance satisfactory to it:

1.1  board resolution (or other evidence of corporate authority) from each of
     the Companies, approving the terms and conditions of and execution of the
     Facility Letter, the Security Documents and this Agreement;

1.2  signed original copies of the Facility Letter, this Agreement, the Security
     Documents, the Account Control Agreement (as defined in the Facility
     Letter) and the custodian undertakings, bank mandates and other account
     opening forms;

1.3  legal opinions in respect of (among other things) validity and
     enforceability of the Facility Letter and this Agreement from lawyers
     qualified in England and Wales and the Security Documents from lawyers
     qualified in the state of California, USA, and corporate capacity in
     respect of each Company from lawyers qualified in such Company's
     jurisdiction of incorporation.

2.   Letters of credit under this Agreement may be issued in favour of Lloyd's
     (as defined in the Facility Letter) in Lloyd's standard form in respect of
     any of the Companies or SCPIE Underwriting Ltd. or in favour of any of the
     Companies or SCPIE Underwriting Ltd. for reserving purposes.

3.   Each of the Companies acknowledge that in the event of a demand by the Bank
     under this Agreement, the Bank may ask for Lloyd's assistance to recover
     any monies due and that Lloyd's and the Bank may co-operate to ensure that
     monies are recovered. Each of the Companies agree to the Bank and Lloyd's
     so co-operating.

<PAGE>

CONDITIONS

1.  APPLICATIONS

Each time a Company wishes the Bank to issue or amend a Credit it shall either
(i) if it is able to access Barclays Business Master International or any other
electronic banking service from time to time made available by the Bank
incorporating a letter of credit issuance instruction facility, send an
appropriate electronic user instruction to the Bank by means of such service or
(ii) deliver to the Bank such duly completed form as the Bank shall require for
the purpose (an `application form'), signed pursuant to the resolution of its
board of directors, referred to on the front hereof, as amended or varied from
time to time, provided such amendments of variations are in a form acceptable to
the Bank. The opening or amendment of any Credit shall be at the sole discretion
of the Bank.

2.  CONDITIONS PRECEDENT

Prior to making an application for the opening of a Credit, the requesting
Company shall deposit with the Bank such amount of cash or other collateral as
is specified on the front hereof under "Security Arrangements" and complete such
security documents (the "Security Documents") and other formalities as the Bank
may require in relation to such proposed Credit in form and substance
satisfactory to the Bank.

3.  REPRESENTATIONS

As at the date hereof and upon the delivery to the Bank of any application form
by a Company, such Company shall be deemed to represent to the Bank that:

3.1  such Company is duly incorporated and validly existing under the laws of
     its jurisdiction of incorporation;

3.2  such Company has the power and is able lawfully to perform its obligations
     under this Agreement and the Security Documents;

3.3  each of this Agreement and the Security Documents constitutes its legal,
     valid and binding obligations enforceable in accordance with its terms;

3.4  all government or official consents, licenses, approvals or authorisations
     required in connection with the making, performance, validity and
     enforceability of this agreement and the Security Documents have been
     obtained and are in full force and effect, except where the failure to
     obtain such consents, licenses, approvals or authorisations would not have
     a material adverse effect on the financial condition, business or operation
     of such Company or the validity and binding nature of this Agreement, the
     Facility Letter or the rights and remedies of the Bank thereunder;

3.5  no action or administrative proceeding of or before any court or agency
     which would or might have a material adverse effect on the financial
     condition, business or operation of such Company has been commenced or
     threatened and has not been resolved or concluded; and

3.6  the Parent's most recent consolidated audited financial statements give a
     true and fair view of the state of affairs of the Companies as at the date
     as of which they were prepared and, since that date, there has been no
     material adverse change in its business, assets, condition or operations.

4.  COVENANTS

Each Company undertakes that, during the term of this Agreement and while any
Credit is outstanding or any obligation of any of the Companies hereunder or
under any Security Document has not been discharged in full, it will:

4.1  provide the Bank with the consolidated audited financial statements of the
     Parent as soon as they are available and not later than 180 days from the
     end of each accounting reference period;

4.2  obtain and promptly renew all consents, licenses, approvals and
     authorisations required to enable it to perform its obligations under, and
     for the validity and enforceability of, this Agreement and the Security
     Documents, except where the failure to obtain or promptly renew such
     consents, licenses, approvals or authorisations would not have a material
     adverse effect on the financial condition, business or operation of such
     Company or the validity and binding nature of this Agreement, the Facility
     Letter or the rights and remedies of the Bank thereunder;

4.3  promptly pay all stamp, registration and other taxes to which this
     Agreement and the Security Documents are, or may at any time be, subject
     and indemnify the Bank on demand against all losses, damages, charges,
     costs and expenses incurred by the Bank in connection with this Agreement,
     the Security Documents or any Credit (other than as a result of the Bank's
     own negligence or wilful misconduct);

4.4  promptly on demand pay to the Bank such amounts representing the cost to
     the Bank of complying with all reserve asset, special deposit, cash
     liquidity or other requirements of the Bank of England which the Bank
     determines to be attributable to this Agreement and/or the opening of any
     Credit hereunder such determination to be conclusive in the absence of
     manifest error; and

4.5  provide the Bank with such additional information relating to such
     Company's business, operations and financial condition as the Bank may from
     time to time reasonably require.

5.  OPENING OF CREDITS

5.1  A Credit opened pursuant hereto shall be an irrevocable clean sight Credit
     in favour of the beneficiary, and for the amount in U.S. dollars or such
     other currency as may have been agreed between the Bank and the requesting
     Company, specified in the relevant application form and available by the
     beneficiary's sight draft on Barclays Bank PLC, and shall, if requested by
     such Company and required by applicable law, be confirmed by a branch of
     the Bank or, at the Bank's discretion, by a bank, or any other branch of
     any other bank, which is qualified to act as a bank in the jurisdiction
     concerned.

5.2  Any Credit opened pursuant hereto shall be subject to the Uniform Customs
     and Practice for Documentary Credits (1993 Revision) ICC Publication Number
     500 or any revision thereof from time to time, subject to such amendments
     as the Bank shall consider appropriate in the light of the requirements of
     any relevant regulatory authority.

6.  EXTENSION OF CREDITS

6.1  If a Company so requests in any relevant application form, and the Bank
     agrees, a Credit opened pursuant to this Agreement may state that it will
     be automatically extended for successive periods (as stated in such
     application form) unless the Bank has sent the beneficiary not less than 60
     days written

<PAGE>

     notice (or such other period as may have been stated in such application
     form) to the contrary. Such notice shall expire at the end of the original
     term of the Credit or, as the case may be, any extension thereof.

6.2  The Bank shall not be obliged to send the beneficiary any such notice
     unless the Bank shall have received written notice from the relevant
     Company that such Company does not wish the relevant Credit to be extended.
     Such notice shall reach the Bank not less than 15 days before the latest
     date on which the Bank is entitled to give notice to the beneficiary of the
     relevant Credit that the Credit is not to be extended.

6.3  Each of the Companies accepts that the Bank reserves the right, at any time
     and in its discretion, to give notice to the beneficiary of a Credit that
     such Credit will not be extended. If the Bank does so, it will, as soon as
     practicable, give the relevant Company written notice thereof.

7    INCREASE OF SECURITY

The Bank may, at any time, require any of the Companies to deposit additional
cash or other collateral, or execute such Security Documents or complete such
other formalities as the Bank may determine. Provided always that the value of
security cover effected by each type of security shall not exceed the percentage
of the relevant Credit which is specified on the front hereof or such other
percentage as may be agreed by the Companies and the Bank from time to time.

8.   PAYMENTS AND REIMBURSEMENT

8.1  Each Company hereby irrevocably authorises the Bank to make payment of the
     amount of any demand made on the Bank under each Credit without reference
     to such Company. Any such demand, if apparently made in accordance with the
     terms of the Credit, shall be a sufficient authority to the Bank to make
     the payment demanded and the Bank shall be entitled and bound to make such
     payment, and the Bank shall not be under any obligation to satisfy itself
     that the amount demanded is in fact due or that any such demand has been
     properly made or that any such demand is genuine.

8.2  Each Company undertakes to pay the Bank on demand the amount of each
     drawing under any Credit together with interest thereon from the date of
     the drawing until the date of reimbursement by such Company at the rate
     specified on the front hereof. If a Company has deposited cash with the
     Bank, the Bank may, but shall not be obliged to, apply all or part of such
     cash in or towards satisfaction of such Company's obligations under this
     Clause 8.2.

9.    COMMISSIONS

9.1  Each Company shall pay to the Bank commission on the amount of each
     outstanding Credit and on the amount of each increase to an existing Credit
     at the rates specified on the front hereof. Provided always that, in each
     case, the commission shall be subject to the minimum charge per quarter or
     part thereof as specified on the front hereof.

9.2  Commission shall be (a) calculated on the basis of a 360 day year and the
     actual number of days in the relevant period and (b) payable quarterly in
     advance on the last day of March, June, September and December each year in
     respect of each Credit outstanding at such time and, in respect of an
     increase in a Credit, (on the day the increase becomes effective) or at
     such other times as may be determined by the Bank

10.  INCREASED COSTS

In the event of:

10.1 any change in applicable law or regulation resulting in the Bank being
     subjected to additional tax, levy. Duty, Charge, penalty, deduction or
     withholding of any nature (other than tax on the Bank's net profits and
     gains); or

10.2 any existing requirements of the Bank of England or other governmental
     authorities or agencies (whether having the force of law or otherwise)
     affecting the conduct of the Bank's business being changed or any new
     requirements being imposed by any competent body, (including without
     limitation a request or requirement which affects the manner in which the
     Bank allocates capital resources to its commitments, including its
     obligations hereunder);

and the result of any of the foregoing in the sole reasonable opinion of the
Bank is to increase the cost to the Bank of funding, maintaining or making
available any Credit (including any undrawn amount thereof) or to reduce the
amount of any payment received or receivable by the Bank, or to reduce the
effective return to the Bank in any such case by an amount which the Bank deems
material, then each Company shall pay to the Bank such sum as may be certified
in writing by the Bank to such Company, as shall compensate the Bank for such
increased cost or reduction.

11.  MISCELLANEOUS

11.1 All payments to be made by the Companies hereunder shall be made in the
     currency in which such payment is due and in immediately available and
     freely transferable funds to such account at such bank as the Bank may
     designate. All payments shall be made without set-off or deduction save as
     required by law. If any payment is required by law to be made subject to
     any withholding or deduction, the sum payable shall be increased to the
     extent necessary to ensure that, after the making of such withholding or
     deduction, the Bank receives and retains a net sum equal to that which it
     would have received and retained in the absence of such withholding or
     deduction.

11.2 This Agreement may not be assigned by any of the Companies.

11.3 If any sum payable by the Companies hereunder or under any order or
     judgement relating hereto has to be converted from the currency (the `first
     currency') in which the same is payable into another currency (the `second
     currency') for the purpose of making or filing a proof or claim, obtaining
     an order or judgement or enforcing any order or judgement, the Companies
     will indemnify the Bank against any loss suffered as a result of any
     discrepancy between the rate of exchange used for such purpose to convert
     the sum in question from the first currency to the second currency and the
     rate of exchange at which the Bank could in the ordinary course of business
     purchase the first currency with the second currency upon receipt of a sum
     paid to it in satisfaction, in part or whole, of any such order, judgement,
     claim or proof.

11.4 Notices and other communications hereunder may be given by letter, telex,
     or telefax to any or all of the Companies, as relevant, or, as the case may
     be, the Bank at the address, telex number or telefax number specified on
     the front hereof (or such other address, telex number or telefax number as
     the recipient may have notified to the other party by not less than fifteen
     days written notice).

11.5 This Agreement shall be governed by and construed in accordance with
     English Law, and for the benefit of the Bank, each of the Companies hereby
     irrevocably submits to the jurisdiction of the English courts.<PAGE>

                                                                   Exhibit 10.59

                      SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN

                            FOR SELECTED EMPLOYEES OF

                            SCPIE MANAGEMENT COMPANY

            (As Amended and Restated Effective as of January 1, 2001)

<PAGE>

                     SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN
                           FOR SELECTED EMPLOYEES OF
                            SCIPE MANAGEMENT COMPANY

           (As Amended and Restated Effective as of January 1, 2001)

                               Table of Contents
                               -----------------

                                                                          Page
                                                                          ----

Purpose of Plan ............................................................ 1

ARTICLE I DEFINITIONS ...................................................... 1

1.1      "Basic Plans" ..................................................... 1
1.2      "Beneficiary" ..................................................... 1
1.3      "Benefit Commencement Date" ....................................... 2
1.4      "Board" ........................................................... 2
1.5      "Company" ......................................................... 2
1.6      "Compensation Committee" .......................................... 2
1.7      "Disability Retirement Date" ...................................... 2
1.8      "Early Retirement Date" ........................................... 2
1.9      "Earnings" ........................................................ 2
1.10     "Effective Date" .................................................. 3
1.11     "Final Average Earnings" .......................................... 3
1.12     "Normal Retirement Date" .......................................... 3
1.13     "Plan" ............................................................ 3
1.14     "Retirement Date" ................................................. 3
1.15     "Service" ......................................................... 3
1.16     "Severance from Service Date" ..................................... 3
1.17     "Subsidiary" ...................................................... 3
1.18     "Termination of Service" .......................................... 3
1.19     "Transfer Employee" ............................................... 3

ARTICLE II ELIGIBILITY FOR BENEFITS ........................................ 3

2.1      Eligibility to Participate ........................................ 3
2.2      Eligibility for Benefits .......................................... 4
2.3      Continued Employment after Normal Retirement Date ................. 4

ARTICLE III RETIREMENT BENEFITS ............................................ 4

3.1      Retirement Benefits Payable at Normal Retirement Date ............. 4
3.2      Retirement Benefits Payable at Early Retirement Date .............. 5
3.3      Computation of Actuarial Equivalents .............................. 5

ARTICLE IV PAYMENT OF RETIREMENT BENEFITS .................................. 5

4.1      Commencement of Benefit Payments .................................. 5
4.2      Payment of Benefits ............................................... 5

                                       i

<PAGE>

                     SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN
                           FOR SELECTED EMPLOYEES OF
                            SCPIE MANAGEMENT COMPANY

                 (As Amended and Restated Effective as of January 1, 2001)

                               Table of Contents
                               -----------------

<TABLE>
<CAPTION>
                                                                         Page
                                                                         ----
<S>                                                                        <C>
 4.3   Alternative Forms of Payment ...................................... 5

ARTICLE V SURVIVOR BENEFITS .............................................. 6

 5.1   Eligibility for Survivor's Benefits ............................... 6
 5.2   Amount of Survivor's Benefits ..................................... 6

ARTICLE VI SOURCE OF BENEFITS ............................................ 6

 6.1   Funding ........................................................... 6

ARTICLE VII claims procedures ............................................ 6

 7.1   Presentation of Claim ............................................. 6
 7.2   Notification of Decision .......................................... 6
 7.3   Review of a Denied Claim .......................................... 7
 7.4   Decision on Review ................................................ 7
 7.5   Legal Action ...................................................... 7

ARTICLE VIII MISCELLANEOUS PROVISIONS .................................... 8

 8.1   Plan Administration ............................................... 8
 8.2   Termination; Amendment ............................................ 8
 8.3   Effective Date .................................................... 8
 8.4   No Guarantee of Employment ........................................ 8
 8.5   Non-Alienation of Benefits ........................................ 8
 8.6   Payment to Representatives ........................................ 9
 8.7   Timing of Payments ................................................ 9
 8.8   Successors and Assigns ............................................ 9
 8.9   Governing Law ..................................................... 9
 8.10  Titles and Headings ............................................... 9
</TABLE>

                                       ii

<PAGE>

                      SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN
                            FOR SELECTED EMPLOYEES OF
                            SCPIE MANAGEMENT COMPANY

            (As Amended and Restated Effective as of January 1, 2001)

     This Supplemental Employee Retirement Plan for Selected Employees of SCPIE
Management Company, as amended and restated (the "Plan") is sponsored by SCPIE
Management Company (the "Company") for the selected employees whose names are
listed in Schedule A, each hereinafter referred to as a "Participant." The Plan
was previously amended to cease further benefit accruals, and was terminated, as
of December 31, 2000. The Company has determined to continue the sponsorship of
the Plan, and the Plan is hereby amended and restated effective as of January 1,
2001. The Company has established an irrevocable trust subject to a trust
agreement to fund the Plan. The assets of such trust, however, will remain
subject to the claims of the general creditors of the Company.

                                 PURPOSE OF PLAN

     The purpose of the Plan is to provide specified retirement benefits as a
supplement to the Company's qualified retirement plans to selected Company
employees who have contributed and continue to contribute materially to the
continued growth, development and future business success of the Company. The
Plan shall be unfunded for tax purposes and for purposes of Title I of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Plan
is intended to be a plan that is unfunded and maintained primarily for the
purpose of providing deferred compensation for a select group of management or
highly compensated employees, within the meaning of Sections 201(2), 301(a)(3)
and 401(a)(1) of ERISA.

                                    ARTICLE I
                                   DEFINITIONS

     For purposes of the Plan, unless otherwise clearly apparent from the
context, the following phrases or terms shall have the following indicated
meanings:

     1.1 "Basic Plans" means the SCPIE Management Company Retirement Income
Plan, specifically referred to as the "Basic Defined Benefit Plan," and the
SCPIE Management Company Cash Accumulation Plan, specifically referred to as the
"Basic Defined Contribution Plan."

     1.2 "Beneficiary" means the person or entity designated by the Participant,
in accordance with procedures established by the Compensation Committee, to
receive all or part of the survivor's benefit under Article V. A designation of
a Beneficiary may be replaced by a new designation or may be revoked by the
Participant at any time in accordance with procedures established by the
Compensation Committee. In the event that a Participant fails to designate a
Beneficiary, or no Beneficiary designated by such Participant survives such
Participant, such Participant's Beneficiary shall be his surviving spouse (if
any) or otherwise such Participant's estate.

                                       1

<PAGE>

        1.3     "Benefit Commencement Date" means the date on which benefits
commence to be payable to a Participant under the Plan.  Such date shall be:

                (a)    in the case of a disabled Participant, his Disability
                       Retirement Date;

                (b)    in the case of a retired Participant (including as
                       retired, any Participant who has a Termination of Service
                       other than death or disability), the later of the first
                       day of the month coincident with or next following his
                       Termination of Service, or his Retirement Date; and

                (c)    in the case of a deceased Participant, the first day of
                       the month coincident with or next following the
                       Participant's date of death while in active Service.

        1.4     "Board" means the Board of Directors of the Company.

        1.5     "Company" means SCPIE Management Company and any successor
corporation.

        1.6     "Compensation Committee" means the Compensation Committee of the
Board. Any function exercisable by such Committee may also be exercised by the
Board or its Executive Committee.

        1.7     "Disability Retirement Date" means the first day of the seventh
calendar month next following the date a Participant becomes totally and
permanently disabled. A Participant in active Service shall be totally and
permanently disabled for the purposes of the Plan if all of the following
conditions are satisfied:

                (a)    he qualifies for disability benefits under the Federal
                       Social Security Act, or any other comparable disability
                       benefit payable under another governmental retirement
                       program; and

                (b)    in the opinion of the Compensation Committee, it is
                       unlikely that the Participant will return to active
                       Service before his Normal Retirement Date.

        1.8     "Early Retirement Date" means the first day of any month
coincident with or following the Participant's 55th birthday and the completion
of five (5) years of Service after the Participant has attained age 45, which is
prior to the Participant's Normal Retirement Date.

        1.9     "Earnings" means base compensation paid to a Participant by the
Company, including any elective contribution made to the Basic Defined
Contribution Plan as a result of a salary reduction agreement entered into by
the Participant under Internal Revenue Code Section 401(k). Earnings shall
exclude bonuses, commissions, severance payments, payments made in lieu of
vacation, any payments made under any flexible benefits plan, compensation paid
for a leave of absence in excess of five (5) months, nonelective contributions
made by the Company to the Basic Defined Contribution Plan and any other
contributions to the Plan or any other benefit plan.

                                        2

<PAGE>

        1.10 "Effective Date" of the Plan, as amended and restated, means
January 1, 2001.

        1.11 "Final Average Earnings" means the average annual rate of Earnings
during the final 36 highest consecutive months in the last 120 months
immediately prior to the Participant's Severance from Service Date.

        1.12 "Normal Retirement Date" means the first day of the month
coincident with or next following the Participant's 62nd birthday and the
completion of five (5) years of Service after the Participant has attained age
45.

        1.13 "Plan" means the Supplemental Employee Retirement Plan for Selected
Employees of SCPIE Management Company, as amended and restated effective as of
January 1, 2001.

        1.14 "Retirement Date" means the Early Retirement Date, or the Normal
Retirement Date, on which the payment of a Participant's retirement benefits
commences in accordance with Articles III and IV.

        1.15 "Service" means a Participant's service as an employee of the
Company or a Subsidiary, measured in whole years and fractions of a year,
commencing on a Participant's hire date and ending on his Severance from Service
Date. Service shall include periods of service with Johnson and Higgins and
Physicians Insurance Management, Inc. Nonconsecutive periods of service shall be
aggregated on the basis of thirty (30) calendar days equal a whole month.

        1.16 "Severance from Service Date" means the date on which a Participant
quits, retires, becomes disabled, is discharged, or dies.

        1.17 "Subsidiary" means any corporation, at least fifty percent of the
outstanding voting stock of which is beneficially owned directly or indirectly
by the Company.

        1.18 "Termination of Service" means the first day of the month next
following termination of the Participant's Service whether by voluntary or
involuntary separation, retirement, disability or death.

        1.19 "Transfer Employee" means a Participant who transferred directly,
with no interruption in employment, from the Johnson and Higgins Retirement
Income Plan to the Basic Defined Benefit Plan.

                                   ARTICLE II
                            ELIGIBILITY FOR BENEFITS

        2.1  Eligibility to Participate. Effective as of January 1, 2001, each
             --------------------------
employee of the Company whose name is listed in Schedule A shall be eligible to
participate in the Plan. The Compensation Committee, in its sole discretion, may
from time to time select other employees of the Company who shall be eligible to
participate in the Plan and shall have the authority to amend Schedule A
accordingly. An employee of the Company who is eligible to participate in the
Plan shall be referred to herein as a "Participant."

                                        3

<PAGE>

   2.2   Eligibility for Benefits.  Except as provided in Section 8.7 of the
         ------------------------
Plan, benefits under the Plan shall be payable in respect to a Participant if:

         (a)  the Participant's Termination of Service occurs on or after his
              Retirement Date, except by disability or death; or

         (b)  the Participant becomes totally and permanently disabled, as
              defined in Section 1.7 of this Plan, before his Normal Retirement
              Date and while in active Service; or

         (c)  the Participant dies prior to the commencement of retirement
              benefits, as provided in Article V; or

         (d)  the Participant's Termination of Service occurs on or after the
              date such Participant has completed five (5) years of Service
              after attaining age 45.

Except as provided for in (b), (c) and (d) above, no benefits shall be payable
hereunder with respect to a Participant whose Termination of Service occurs
prior to his Retirement Date.

   2.3   Continued Employment after Normal Retirement Date. In the event
         -------------------------------------------------
that a Participant remains an employee of the Company or any Subsidiary after
his Normal Retirement Date, the payment of his retirement benefits shall
commence on his Benefit Commencement Date.

                                  ARTICLE III
                               RETIREMENT BENEFITS

   3.1   Retirement Benefits Payable at Normal Retirement Date. The amount
         -----------------------------------------------------
of a Participant's retirement benefits under the Plan payable at such
Participant's Normal Retirement Date shall be the greater of (a) or (b) below,
determined at such Participant's Termination of Service:

         (a)  the excess of (i), over the sum of (ii) and (iii), in the
              form of an annual straight life annuity for the life of the
              Participant:

              (i)   3.5% of the Participant's Final Average Earnings,
                    multiplied by the Participant's years of Service (not
                    in excess of ten years of Service),

              (iii) the Participant's annual benefits payable from the
                    Basic Defined Benefit Plan in the form of a straight
                    life annuity for the life of the Participant, commencing at
                    at such Participant's Normal Retirement Date, and

              (iii) the Participant's annual benefits payable from the
                    Johnson and Higgins Retirement Income Plan in the form
                    of astraight life annuity for the life of the
                    Participant, if he is a Transfer Employee, commencing
                    at such Participant's Normal Retirement Date, and

                                        4

<PAGE>

              (b) the Participant's retirement benefits under the Plan, payable
                  in the form of an annual straight life annuity for the life of
                  the Participant, commencing at such Participant's "Normal
                  Retirement Date" (as defined under the terms of the Plan in
                  effect as of December 31, 2000), determined as of December 31,
                  2000, under the terms of the Plan then in effect.

         3.2  Retirement Benefits Payable at Early Retirement Date. The amount
              ----------------------------------------------------
of a Participant's retirement benefits under the Plan payable at such
Participant's Early Retirement Date shall equal the amount of such Participant's
retirement benefits payable at such Participant's Normal Retirement Date,
determined under Section 3.1, reduced by 0.5% for each full month that such
Early Retirement Date precedes the Participant's Normal Retirement Date.

         3.3  Computation of Actuarial Equivalents. For purposes of this Plan,
              ------------------------------------
the actuarial equivalent of a Participant's retirement benefits as of any
distribution date shall be determined on the basis of an interest assumption at
a rate equal to the Moody's Aa Corporate Bond rate in effect on December 31 for
the calendar year immediately preceding such distribution date, and a mortality
assumption of the 1983 Group Annuity Mortality Table (Unisex).

                                   ARTICLE IV
                         PAYMENT OF RETIREMENT BENEFITS

         4.1  Commencement of Benefit Payments. A Participant shall commence
              --------------------------------
receiving the payment of such Participant's retirement benefits under Section
3.1 or 3.2 on the Participant's Termination of Service or, if later, the
Participant's Retirement Date. A Participant's Retirement Date shall be his
earliest Early Retirement Date; provided, however, that a Participant may
designate a later Early Retirement Date, or such Participant's Normal Retirement
Date, as such Participant's Retirement Date. A Participant shall make such
election in accordance with procedures established by the Compensation
Committee, and may revoke any such election and make a new election in
accordance with such procedures. A Participant's designation of a Normal
Retirement Date, or a revocation of any such election, shall not be effective,
unless made by the Participant no later than one full calendar year prior to the
Participant's Severance from Service Date.

         4.2  Payment of Benefits. Payment of retirement benefits to a
              -------------------
Participant under Section 3.1 or 3.2 shall be made in the form of a straight
life annuity for the life of the Participant. Such benefits shall be solely the
general obligation of the Company and shall not be replaced or funded by a
commercial annuity (in which the Participant has any incident of ownership)
issued by any third-party insurer. All payments of retirement benefits shall be
reduced by the amount of applicable federal, state and local withholding taxes.

         4.3  Alternative Forms of Payment. Retirement benefits payable under
              ----------------------------
Section 3.1 or 3.2 may be paid in an alternative form of payment elected by the
Participant. A Participant shall make such election in accordance with
procedures established by the Compensation Committee, and may revoke any such
election or make a new election in accordance with such procedures. Any such
election shall not be effective unless made by the Participant no later than a
full calendar year preceding the Participant's Severance from Service Date. The
alternative form of payment shall be either of the following: (i) three equal
annual period certain installment

                                       5

<PAGE>

payments, or (b) five equal annual period certain installment payments. In the
event of the Participant's death prior to completion of the period certain
installment payments described in this Section 4.3, the remaining payments due
hereunder to the Participant shall be made to the Participant's Beneficiary. The
alternative form of payment elected by the Participant shall be the actuarial
equivalent of the straight life annuity for the life of the Participant
otherwise payable under this Plan. Except as provided by such an alternative
form of payment adopted under this Section 4.3, or as provided under Article V,
payments under this Plan shall not be payable after the death of a retired
Participant.

                                   ARTICLE V
                                SURVIVOR BENEFITS

     5.1  Eligibility for Survivor's Benefits. A survivor's benefit, rather than
          -----------------------------------
retirement benefits payable under Articles III and IV of the Plan, will be paid
under the terms and conditions of this Article V, if the Participant dies prior
to the commencement of retirement benefits.

     5.2  Amount of Survivor's Benefits. Pursuant to Section 5.1, a
          -----------------------------
Participant's Beneficiary shall be entitled to the survivor's benefit, payable
in a lump sum payment, in the amount equal to the actuarial equivalent of the
Participant's retirement benefits under Section 3.1.

                                   ARTICLE VI
                               SOURCE OF BENEFITS

     6.1  Funding. The Plan is an unfunded plan maintained by the Company
          -------
primarily for the purpose of providing deferred compensation to a select group
of management or highly compensated employees. To the extent that any person
acquires a right to receive payments from the Company under the Plan, such right
shall be no greater than the right of any unsecured general creditor of the
Company. The Company may make contributions to an irrevocable trust for purposes
of providing benefits under the Plan, subject to the terms of the trust
agreement under which such trust is established.

                                  ARTICLE VII
                                CLAIMS PROCEDURES

     7.1  Presentation of Claim. Any Participant or Beneficiary of a deceased
          ---------------------
Participant (such Participant or Beneficiary being referred to below as a
"Claimant") may deliver to the Compensation Committee a written claim for a
determination with respect to the amounts distributable to such Claimant from
the Plan. If such a claim relates to the contents of a notice received by the
Claimant, the claim must be made within 60 days after such notice was received
by the Claimant. All other claims must be made within 180 days of the date on
which the event that caused the claim to rise occurred. The claim must state
with particularity the determination desired by the Claimant.

     7.2  Notification of Decision. The Compensation Committee shall consider a
          ------------------------
Claimant's claim within a reasonable time, and shall notify the Claimant in
writing:

                                        6

<PAGE>

          (a)  that the Claimant's requested determination has been made, and
               that the claim has been allowed in full; or

          (b)  that the Committee has reached a conclusion contrary, in whole or
               in part, to the Claimant's requested determination, and such
               notice must set forth in a manner calculated to be understood by
               the Claimant:

               (i)    the specific reason(s) for the denial of the claim, or any
                      part of it;

               (ii)   specific reference(s) to the pertinent provisions of the
                      Plan upon which such denial was based;

               (iii)  a description of any additional material or information
                      necessary for the Claimant to perfect the claim, and an
                      explanation of why such material or information is
                      necessary; and

               (iv)   an explanation of the claim review procedure set forth in
                      Section 7.3 below.

     7.3  Review of a Denied Claim. Within 60 days after receiving a notice from
          ------------------------
the Compensation Committee that a claim has been denied, in whole or in part, a
Claimant (or the Claimant's duly authorized representative) may file with the
Compensation Committee a written request for a review of the denial of the
claim. Thereafter, but not later than 30 days after the review procedure began,
the Claimant (or the Claimant's duly authorized representative):

          (a)  may review pertinent documents;

          (b)  may submit written comments or other documents; and/or

          (c)  may request a hearing, which the Compensation Committee, in its
               sole discretion, may grant.

     7.4  Decision on Review. The Compensation Committee shall render its
          ------------------
decision on review promptly, and not later than 60 days after the filing of a
request for review of the denial, unless a hearing is held or other special
circumstances require additional time, in which case the Committee's decision
must be rendered within 120 days after such date. Such decision must be written
in a manner calculated to be understood by the Claimant, and it must contain:

          (a)  specific reasons for the decision;

          (b)  specific reference(s) to the pertinent Plan provisions upon which
               the decision was based; and

          (c)  such other matters at the Committee deems relevant.

     7.5  Legal Action. A Claimant's compliance with the foregoing provisions of
          ------------
this Article VII is a mandatory prerequisite to a Claimant's right to commence
any legal action with respect to any claim for benefits under the Plan. If the
Compensation Committee is confronted

                                        7

<PAGE>

with conflicting claims concerning a Participant's benefits, the Compensation
Committee may interplead the claimants in an action at law, or in an arbitration
conducted in accordance with the rules of the American Arbitration Association,
as the Compensation Committee shall elect in its sole discretion, and in either
case, the attorneys' fees, expenses and costs reasonably incurred by the
Compensation Committee in such proceeding shall be paid from the Participant's
benefits.

                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

       8.1    Plan Administration. The general administration of this Plan shall
              -------------------
be the responsibility of the Compensation Committee which is hereby authorized,
in its discretion, to delegate said responsibilities to an administrator or
administrative committee. The Compensation Committee shall appoint a qualified
actuary or actuaries to perform all actuarial calculations. The good faith
determination of the Compensation Committee in reliance upon such actuary or
actuaries shall be final and conclusive. The Compensation Committee shall have
the exclusive right and full discretion to interpret the Plan and to decide any
and all matters arising hereunder (including the right to remedy possible
ambiguities, inconsistencies or omissions), to make, amend and rescind such
rules as it deems necessary for the proper administration of the Plan and to
make all other determinations necessary or advisable for the administration of
the Plan, including determinations regarding eligibility for benefits under the
Plan and determinations of the amount of benefits payable under the Plan. All
interpretations of the Compensation Committee with respect to any matter
hereunder shall be final, conclusive and binding on all persons affected
thereby. No Participant who is a member of the Compensation Committee shall vote
on any matter or otherwise take part in the administration of the Plan.

       8.2    Termination; Amendment. The Board shall have the right at any time
              ----------------------
to declare the Plan terminated completely; provided, however, that the
termination of the Plan shall not decrease the accrued interest of any
Participant or any other person entitled to payment under the Plan. The Plan may
be wholly or partially amended by the Compensation Committee in any manner from
time to time, including retroactive amendments necessary to conform to the
provisions and requirements of ERISA or the Code or regulations pursuant
thereto.

       8.3    Effective Date.  The Plan shall be effective as of the Effective
              --------------
Date.

       8.4    No Guarantee of Employment. Nothing contained herein shall be
              --------------------------
construed as a contract of employment or deemed to give the Participant the
right to be retained in the employ of the Company or any Subsidiary, or to
interfere with the rights of any such employer to discharge any individual at
any time, with or without cause, for any reason or no reason, and with or
without notice except as may be otherwise agreed in writing.

       8.5    Non-Alienation of Benefits. No rights of any Participant (or
              --------------------------
Beneficiary) to payments of any amounts under the Plan shall be sold, exchanged,
transferred, assigned, pledged, hypothecated or otherwise disposed of other than
by will or by the laws of descent and distribution, and any such purported sale,
exchange, transfer, assignment, pledge, hypothecation or disposition shall be
void. The Company shall not recognize any purported sale, exchange, transfer,
assignment, pledge, hypothecation, or disposition by any Participant of all or
part of his interest hereunder, and such interest shall not be subject in any
manner to transfer by operation

                                       8

<PAGE>

of law, and shall be exempt from the claims of creditors or other claimants from
all orders, decrees, levies, garnishment and/or executions and other legal or
equitable process or proceedings against the Participant to the fullest extent
which may be permitted by law.

       8.6    Payment to Representatives. If an individual entitled to receive
              --------------------------
any benefits hereunder is determined by the Compensation Committee or is
adjudged to be legally incapable of giving valid receipt and discharge for such
benefits, they shall be paid to the duly appointed and acting guardian, if any,
and if no such guardian is appointed and acting, to such persons as the
Compensation Committee may designate. Such payment shall, to the extent made, be
deemed a complete discharge for such payments under this Plan.

       8.7    Timing of Payments. If the Committee is unable to make the
              ------------------
determination required under this Plan in sufficient time for payments to be
made when due, the Committee shall make the payments upon the completion of such
determinations with interest at a reasonable rate from the due date and may, at
its option, make provisional payments, subject to adjustment, pending such
determinations.

       8.8    Successors and Assigns. The Plan shall be binding upon the
              ----------------------
successors and assigns of the Company. This Plan shall inure to the benefit of
and be enforceable by each Participant's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

       8.9    Governing Law. The interpretation, construction and performance of
              -------------
this Plan, unless preempted by the Employee Retirement Income Security Act of
1974, as amended ("ERISA"), shall be governed by and construed and enforced in
accordance with the laws of the State of California without regard to the
principle of conflicts of laws. The invalidity or unenforceability of any
provision of this Plan shall not affect the validity or enforceability of any
other provision of this Plan, which other provisions shall remain in full force
and effect.

       8.10   Titles and Headings. The titles to articles and headings of
              -------------------
sections of this Plan are for convenience of reference only, and in case of any
conflict the text of the Plan, rather than such titles and headings, shall
control.

IN WITNESS WHEREOF, the Company hereby executes the Plan effective as of January
1, 2001.

                                     SCPIE MANAGEMENT COMPANY

________________________             By: _______________________________________
Date
                                     Title: ____________________________________

________________________             By: _______________________________________
Date
                                     Title: ____________________________________

                                       9

<PAGE>

                                                                      SCHEDULE A

                      SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN

                            FOR SELECTED EMPLOYEES OF

                            SCPIE MANAGEMENT COMPANY

            (As Amended and Restated Effective as of January 1, 2001)

                            Participants in the Plan
                            ------------------------

                               Ronald L. Goldberg
                               Patrick S. Grant
                               Joseph P. Henkes
                               Patrick T. Lo
                               Timothy C. Rivers
                               Donald J. Zuk

                                       1

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