SELECTIVE INSURANCE GROUP INC
EXHIBIT 10.3
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>exhibit103.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<html>

<head>

<title>Exhibit 10.3</title>

</head>

<body>

<div>

<p align=right><b>Exhibit 10.3<br><br></b></p>

<p align=center>SELECTIVE INSURANCE
GROUP, INC.<br>
STOCK OPTION PLAN III<br>
<br>
RESTRICTED STOCK AWARD<sup>1</sup><br></p>

<p align=center><br></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS
DOCUMENT EVIDENCES A RESTRICTED STOCK GRANT (the &quot;Grant&quot;), effective the ___day of _________, 200_ (the
&quot;Grant Date&quot;), from Selective Insurance Group, Inc., a New Jersey corporation
(the &quot;Company&quot;), to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp;(the &quot;Grantee&quot;), an employee of the Company or
a &quot;Related Corporation,&quot; as defined in the Selective Insurance Stock Option
Plan III (the &quot;Plan&quot;).<br>
<br><br></p>

<p align=center><b>WITNESSETH
THAT:<br><br></b></p>

<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>WHEREAS,
the Company has adopted the Selective Insurance Stock Option Plan III; and<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, the Employee has been
designated by the Committee, as defined in the Plan (the &quot;Committee&quot;), as an
employee to whom a restricted stock grant is to be made under the Plan subject
to the terms and conditions of this grant document; <br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOW THEREFORE, the Company
hereby grants to the Grantee, subject to the terms and conditions hereinafter
set forth a Restricted Stock Award (&quot;Award&quot;).&nbsp;
The Award shall be subject to the terms and conditions of the Plan and
this Grant.&nbsp; By accepting the Grant, the
Employee agrees to be bound by the provisions hereof and the provisions of the
Plan with respect to the Grant.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Grant of Award</b>.&nbsp; The Company hereby awards to the Grantee an
Award under the Plan for an aggregate of <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp;shares of the Company's common stock
(&quot;Shares&quot;), subject to adjustment pursuant to Section 8.3 of the Plan.&nbsp; The Award is in all respects limited and
conditioned as hereinafter provided, and is subject to the terms and conditions
of the Plan now in effect and as they may be amended from time to time, in
accordance with the Plan (which terms and conditions are incorporated herein by
reference, made a part hereof, and shall control in the event of any conflict
with any other terms of this Restricted Stock Award Agreement).&nbsp; <br>
<br>
<br>
<br>
___________________________________<br>
<br>
<sup>1</sup>&nbsp; Award agreement for
Executive Officers</p><P></P><hr color="#000080"><P STYLE="page-break-after: always"></P><br clear=all>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Vesting</b>.&nbsp; Subject to the provisions of Sections 4, 6
and 7 hereof, the Shares and any and all accumulated Shares, dividends, and
distributions with respect thereto shall vest to the Grantee on <b>(fourth anniversary of date of grant)</b>
(the &quot;Vesting Date&quot;) and shall no longer be subject to forfeiture provided that
(i) Grantee shall have remained in the full-time employ of the Company or a
subsidiary of the Company from and after the date hereof to and including the
Vesting Date and (ii) for the period January
1,<b> (year of grant)</b> through December 31, <b>(third year after year of grant)</b> the Company
shall have generated a cumulative fiscal year return on average equity of at
least 25% (computed by excluding from the determination of average equity any
unrealized gain occurring after December
31,<b> (year immediately prior to year of grant)</b> at any time during such period or shall have achieved a 20%
cumulative growth in net premiums written at any time during such period, for
purposes of this provision, fiscal years include the following:<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; January 1, <b>(year of
grant) </b>through December 31,<b> (year of grant)<br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; January 1, <b>(first
year after year of grant) </b>through <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December
31, <b>(first year after year of grant)<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>January 1, <b>(second
year after year of grant) </b>through <br>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>December
31, <b>(second year after year of grant) <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>January 1, <b>(third
year after year of grant) </b>through <br>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>December
31,<b> (third year after year of grant)<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>At such time as the Committee shall have
determined that the foregoing conditions have been satisfied, the Company shall
release from escrow to Grantee the Shares and any and all accumulated shares,
dividends, and distributions with respect thereto.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Stock</b>.&nbsp;&nbsp; Shares subject to the Award shall be issued
and registered in the Grantee's name (or, if the Grantee so requests, in the
name of the Grantee and the Grantee's spouse, jointly with a right of
survivorship) and shall be deposited in escrow with Company pursuant to the
provisions of this grant.&nbsp; The shares,
when issued, shall be validly issued, fully-paid and non assessable.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Dividends;
Rights as Shareholder in Unvested Shares</b>.&nbsp;
The Grantee shall be entitled to receive dividends on unvested Shares
subject to the Award (if any), shall have the right to vote such unvested
Shares and shall have all other shareholder's rights in such unvested Shares,
with the exception that (i) the Grantee shall not be entitled to delivery of
the&nbsp; unvested Shares until he becomes
vested in the Shares, (ii) the Company shall retain custody of the unvested
Shares until the Grantee becomes vested in such Shares, at which time such
Shares shall be delivered to the Grantee, and (iii) the Grantee's rights to
such unvested Shares shall be forfeited if the Grantee terminates employment
with the Company and its Related Corporations before becoming vested in such
Shares.&nbsp; Provided, however, that at the
time of any such distribution, the Grantee shall have the option to elect the
equivalent of such reinvested dividends in cash, without interest, in lieu of
the additional Shares.<br>
<br>
<P></P>
<p><hr color="#000080"><P STYLE="page-break-after: always"></P><br clear=all>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Transferability</b>.&nbsp; The Grantee may not assign or transfer, in
whole or in part, Shares subject to this Award in which the Grantee is not
vested, other than by will or by the laws of descent and distribution.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholding of Taxes</b>.&nbsp; The obligation of the Company to deliver the
Shares upon vesting shall be subject to applicable federal, state and local tax
withholding requirements.&nbsp; If the vesting
of the Award is subject to the withholding requirements of applicable federal,
state and/or local tax laws, the Salary and Employee Benefits Committee may, in
its discretion, but shall not be obligated to, authorize the Company to
purchase from the Grantee for cash such number of shares which shall have
vested to the Employee on the Vesting Date.&nbsp;
Such Shares shall be valued, for this purpose, at their Fair Market
Value on the date the amount attributable to the vesting of the Award is
includable in income by the Grantee under section 83 of the Internal Revenue
Code (the &quot;Determination Date&quot;).&nbsp; Such
election must be made in compliance with and subject to the Withholding Rules,
and the Company may not withhold shares in excess of that necessary to satisfy
the minimum federal, state and local income tax withholding requirements.&nbsp; In the event Shares acquired upon the
exercise of an incentive stock option are used to satisfy such withholding
requirement, such shares must have been held by the Grantee for a period of not
less than the holding period described in section 422(a)(1) of the Internal
Revenue Code on the Determination Date.&nbsp;
In the event Shares acquired by means of a restricted stock award are
used to satisfy such withholding requirement, such shares must have vested in
the Grantee on or before the Determination Date.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Termination</b>.&nbsp; If the Grantee shall cease to be employed by
the Company or any of its Related Corporations prior to the Vesting Date for
any reason other than death, disability or retirement, the Award shall
immediately be forfeited and shall be void.&nbsp;
If the Grantee shall cease to be employed by the company or any of its
Related Corporations by reason of death, disability or retirement, the Grantee
or his executor, administrator, personal representative, heirs or
beneficiaries, as the case may be, shall be entitled to receive, upon vesting,
all of the Shares, together with any and all accumulated shares, dividends and
distributions with respect thereto.&nbsp;&nbsp;&nbsp; For
purposes of this Agreement retirement is defined as the date the Grantee leaves
the employ of the Company provided the Grantee has either (i) reached 55 years
of age and has 10 years of service with the Company; or (ii) the Grantees age
plus years of service with the Company equals 70.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Governing Law</b>.&nbsp; This Restricted Stock Award Agreement shall
be construed in accordance with, and its interpretation shall be governed by
applicable Federal law, and otherwise by New Jersey law (without reference to
the principles of conflict of laws).<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Capital Adjustments</b>. If prior to
the issuance by the Company of all of the Shares covered by this Agreement,
there shall be any increases or reductions in the number of Shares outstanding
by reason of any stock dividends or stock splits or other readjustments or, if
there is any other material change in the capital structure of the Company by
reason of any reclassification, reorganization, recapitalization or otherwise,
there shall be a proportionate and equitable adjustment of the terms of this
Agreement with respect to the amount and class of Shares subject to the
Agreement as determined by the Committee.<br>
</p>
<P></P>
<p><hr color="#000080"><P STYLE="page-break-after: always"></P><br clear=all>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  <b>Miscellaneous Provisions</b>.&nbsp;&nbsp;&nbsp; This Award Agreement is not an agreement to
employ or to continue the employment of the Grantee.&nbsp; Nothing in this Award Agreement shall be
deemed to create any limitation or restriction upon such rights as the Company
would otherwise have to terminate the employment of the Grantee at any time for
any reason.<br>
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS
WHEREOF, the Company has caused this Restricted Stock Award Agreement to be
duly executed by its duly authorized officers, and is effective on the date
first written above. <br>
<br><br></p>
<p></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>

  <p>

  </td>
  <td width=319 valign=top>
  <p>SELECTIVE
  INSURANCE GROUP, INC.<br>
  <br>
  By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  <p>

  </td>
  <td width=319 valign=top>
  <p>Gregory
  E. Murphy</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  <p>

  </td>
  <td width=319 valign=top>
  <p>Chairman,
  President and</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  <p>

  </td>
  <td width=319 valign=top>
  <p>Chief
  Executive Officer</p>
  </td>
 </tr>
</table>

<p><br>
<br>
<br>
<br><br></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=326 valign=top>
  <p>ATTEST:<br>
  <br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=312 valign=top>

  <p>

  </td>
 </tr>
 <tr>
  <td width=326 valign=top>
  <p>Michele
  N. Schumacher</p>
  </td>
  <td width=312 valign=top>

  <p>

  </td>
 </tr>
 <tr>
  <td width=326 valign=top>
  <p>Vice
  President, Corporate Secretary</p>
  </td>
  <td width=312 valign=top>

  <p>

  </td>
 </tr>
 <tr>
  <td width=326 valign=top>
  <p>and
  Corporate Governance Officer</p>
  </td>
  <td width=312 valign=top>

  <p>

  </td>
 </tr>
</table>



</div>

<div>

<div id=edn1>



</div>

</div>

</body>

</html>

</TEXT>
</DOCUMENT>
