as of July 31, 2000
Selective Insurance Company of America
Selective Insurance Group, Inc.
40 Wantage Avenue
Branchville, New Jersey 07890-1000
Re: Letter Loan Agreement dated June 30, 1997, as heretofore modified and extended (collectively, the "Loan
This is to confirm our approval of your request for an extension through July 31, 2001 of the expiration date of
the Revolving Line of Credit provided for in the Loan Agreement. Accordingly, we have agreed to modify the
definition of Revolving Maturity Date to provide that July 31, 2001 is the Revolving Maturity Date. Our approval
is subject to your agreement to the following:
A. The Loan Agreement is hereby deemed modified so as to provide that the maximum outstanding at any one
time under the Revolving Line of Credit shall not exceed $15,000,000.00, in the aggregate.
B. Paragraphs 1 and 2 of the Loan Agreement are hereby deemed amended and restated in their entirety as
1. Term. The Revolving Line of Credit shall commence on the date hereof and expire on July 31, 2001 (the
"Revolving Maturity Date"), unless extended by mutual agreement.
2. Notice and Manner of Borrowings. Subject to the terms and conditions hereof, and upon request by either
Borrower, the Bank agrees to make revolving loans to such Borrower provided for herein (each, a "Revolving
Loan") not to exceed $15,000,000.00 in aggregate of all outstanding Revolving Loans to both Borrowers at any
C. Paragraph 4 of the Loan Agreement is hereby deemed amended and restated in its entirety as follows:
4. Interest Rate. Principal on each outstanding Revolving Loan shall bear interest as selected by the applicable
Borrower at a floating rate equal to the Adjusted Libor Rate plus 28 basis points per annum. Revolving Loans
may be made for interest periods of 1 or 3 months, the foregoing interest periods shall be acceptable to the Bank
and adjusted for month-end, weekend and holiday periods. An interest period shall commen