EMPLOYMENT AGREEMENT


          WHEREAS,  Goran Capital Inc. ("Goran") and Symons International Group,
Inc.  ("SIG"),  and  their  respective  subsidiaries,   jointly  and  severally,
(collectively,  the "Company")  considers it essential to its best interests and
the best  interests  of its  stockholders  to employ  Earl R.  Fonville  ("You",
"Your"or "Executive"), upon the terms and conditions hereinafter set forth; and

          WHEREAS,  the Executive desires to be employed by the Company upon the
terms and conditions contained herein.

         NOW,  THEREFORE,  in  consideration of the covenants and agreements set
forth below, the parties agree as follows:

1.       Employment

         1.1 Term of Agreement.  The Company agrees to employ  Executive as Vice
President, Chief Financial Officer and Treasurer,  effective as of September 18,
2000 and  continuing  until  September  18,  2001,  unless  such  employment  is
terminated pursuant to Section 3 below provided,  however, that the term of this
Agreement shall automatically be extended without further action of either party
for additional one (1) year periods  thereafter unless, not later than three (3)
months prior to the end of the then  effective  term,  either the Company or the
Executive  shall have given  written  notice  that such party does not intend to
extend this Agreement ("Notice of Non-Renewal"). If Company gives Executive such
a  Notice  of  Non-Renewal,   Executive's  employment  shall  be  deemed  to  be
termination  without cause and Executive's  employment shall terminate as of the
expiration date of this Agreement.  It is expressly understood and agreed that a
Notice of Non-Renewal issued by the Company shall not extinguish the Executive's
non-competition  obligations pursuant to Section 4 herein, nor shall such Notice
of Non-Renewal extinguish Executive's right to severance pay pursuant to Section
3 herein.

         1.2 Terms of Employment.  During the term of this Agreement,  You agree
to be a  full-time  employee  of the  Company  serving in the  position  of Vice
President,  Chief  Financial  Officer and  Treasurer  of the Company and further
agree to devote  substantially  all of Your  working  time and  attention to the
business  and affairs of the Company  and, to the extent  necessary to discharge
the  responsibilities  associated  with Your position as Vice  President,  Chief
Financial  Officer and  Treasurer  of the  Company,  to use Your best efforts to
perform  faithfully  and  efficiently  such  responsibilities.  Executive  shall
perform such duties and  responsibilities as may be determined from time to time
by the Vice Chairman or Chief Executive  Officer of the Company and the Board of
Directors of the Company,  which duties shall be consistent with the position of
Vice  President,  Chief  Financial  Officer and Treasurer of the Company,  which
shall grant Executive authority,  responsibility,  title and standing comparable
to that of the Vice President,  Chief Financial Officer and Treasurer of a stock
insurance holding company of similar standing. Nothing herein shall prohibit You
from devoting Your time to civic and community  activities or managing  personal
investments,  as long as the foregoing do not interfere with the  performance of
Your duties hereunder.

         1.3  Appointment  and  Responsibility.  The Board of  Directors  of the
Company shall, following the effective date of this Agreement, elect and appoint
Executive as Vice President, Chief Financial Officer and Treasurer.

2.       Compensation, Benefits and Perquisites

         2.1 Salary.  Company shall pay Executive a salary,  in equal  bi-weekly
installments,  equal to an annualized  salary rate of One Hundred Forty Thousand
Dollars ($140,000). Executive's salary payable pursuant to this Agreement may be
increased  from  time to time  as  mutually  agreed  upon by  Executive  and the
Company.  The Company shall pay  Executive  the salary  applicable in twenty-six
(26)  bi-weekly  installments.  Notwithstanding  any  other  provision  of  this
Agreement,  Executive's  salary  paid by  Company  for any year  covered by this
Agreement  shall  not be  less  than  such  salary  paid  to  Executive  for the
immediately  preceding  calendar  year.  All  salary and bonus  amounts  paid to
Executive pursuant to this Agreement shall be in U.S. dollars.

         2.2 Bonus.  The Company  and  Executive  understand  and agree that the
Company expects to achieve  significant growth during the term of this Agreement
and that Executive will make a material  contribution  to that growth which will
require  certain  personal and  familial  sacrifices  on the part of  Executive.
Accordingly,  it is the desire and intention of the Company to reward  Executive
for the attainment of that growth through bonus and other means (including,  but
not limited to,  stock  options,  stock  appreciation  rights and other forms of
incentive  compensation).  Therefore,  the Company may, in its  discretion,  pay
Executive  an  annual  bonus  of up to an  additional  thirty  percent  (30%) of
Executive's  salary  based  upon goals  established  by  Executive  and the Vice
Chairman or Chief Executive Officer of SIG.

         2.3 Employee  Benefits.  Executive  shall be entitled to receive health
plan benefits which are provided to other  executive  employees of Company under
the  applicable  Company plans and policies,  and to future  benefits and health
plan benefits  made  generally  available to executive  employees of the Company
with duties and compensation comparable to that of Executive upon the same terms
and conditions as other Company participants in such plans.

          2.4 Additional Perquisites. During the term of this Agreement, Company
shall provide  Executive with not less than three (3) weeks paid vacation during
each calendar year.

         2.5 Expenses. During the period of his employment hereunder,  Executive
shall be entitled to receive  reimbursement from the Company (in accordance with
the policies  and  procedures  in effect for the  Company's  employees)  for all
reasonable travel,  entertainment and other business expenses incurred by him in
connection with his services hereunder.

3.       Termination of Executive's Employment

         3.1.1   Termination  of  Employment  and  Severance  Pay.   Executive's
employment  under this  Agreement  may be terminated by either party at any time
for any reason; provided,  however, that if Executive's employment is terminated
by the  Company  for any  reason  other  than for cause,  he shall  receive,  as
severance  pay,  up to six (6)  month's  then  current  salary  paid in  regular
bi-weekly payments (the "Salary Continuation"), subject to reduction as provided
in Section  3.1.2.  Further,  if Executive  shall be terminated  without  cause,
receipt of severance payments described in the preceding sentence is conditioned
upon  execution by Executive  and the Company of that mutual  Waiver and Release
attached hereto as Exhibit A. Further,  Executive shall receive severance pay in
accordance with this Section 3.1 if Executive shall terminate this Agreement due
to a breach  thereof by the Company or if  Executive  is directed by the Company
(including,  if  applicable,  any  successor)  to  engage  in any act or  action
constituting  fraud or any  unlawful  conduct  relating  to the  Company  or its
business as may be determined by application of applicable  law. For purposes of
this Section 3.1, termination of employment shall include a change of employment
such that  Executive  shall no  longer  be  employed  by the  Company  as a Vice
President or as its senior executive  responsible for the accounting and finance
function of the Company or at a salary less than Executive's current salary.

         3.1.2 Reduction of Salary Continuation.  It is expressly understood and
agreed that the amount of any payment to Executive  required pursuant to Section
3.1.1  shall be  reduced  (but not below  zero) by any  employment  compensation
received by Executive  during the period called for in Section 3.1.1.  Executive
shall use his reasonable best efforts during the Salary  Continuation  period to
obtain employment comparable to that with the Company.


<PAGE>



         3.2      Cause.  For purposes of this Section 3, "cause" shall mean:
                  -----

               (a)  the  Executive  being  convicted  in the  United  States  of
                    America, any State therein, or the District of Columbia,  or
                    in  Canada  or  any  Province  therein  (each,  a  "Relevant
                    Jurisdiction"), of a crime for which the maximum penalty may
                    include  imprisonment for one year or longer (a "felony") or
                    the Executive  having  entered  against him or consenting to
                    any  judgment,   decree  or  order   (whether   criminal  or
                    otherwise)  based upon  fraudulent  conduct or  violation of
                    securities laws;

               (b)  the  Executive's   being  indicted  for,   charged  with  or
                    otherwise the subject of any formal proceeding  (criminal or
                    otherwise) in connection with any felony, fraudulent conduct
                    or violation of securities  laws, in a case brought by a law
                    enforcement  or securities  regulatory  official,  agency or
                    authority in a Relevant Jurisdiction;

               (c)  the Executive engaging in fraud, or engaging in any unlawful
                    conduct  relating to the Company or its business,  in either
                    case  as   determined   under  the  laws  of  any   Relevant
                    Jurisdiction;


               (d)  the Executive breaching any provision of this Agreement; or

               (e)  the  Executive  "Grossly  Neglects" his duty to the Company.
                    For purposes of this  Agreement,  "Gross  Neglect" means the
                    failure to perform the functions of the  Executive's  job or
                    the failure by Executive to carry out reasonable  directions
                    with respect to material duties after the Executive has been
                    notified in writing that the Executive is failing to perform
                    these   functions   or  failing  to  carry  out   reasonable
                    directions.  Such  notice  shall  specify the  functions  or
                    directions that the Executive is failing to perform and what
                    steps  need to be taken  to cure and  shall  set  forth  the
                    reasonable   time  frame,   which  shall  be  at  a  minimum
                    forty-five  (45) days,  within  which to cure.  If Executive
                    fails  to cure  within  the  time  frame,  the  Company  may
                    terminate  Executive's  employment  for cause by giving  him
                    thirty (30) days notice or pay in lieu thereof.

         3.3.1 Change of Control.  Notwithstanding  any other  provision of this
Agreement,  if (i) a Change of Control (as defined below) shall occur;  and (ii)
within six (6) months of any such Change of Control,  Executive  (a)  terminates
his employment with the Company; (b) is terminated by the Company for any reason
other than for cause; or (c) the Company  (including its successors,  if any) is
in breach of this  Agreement,  then  Executive  shall  continue  to receive  his
current  salary (in bi-weekly  payments)  until the expiration of six (6) months
from the date of Executive's  termination  of  employment.  For purposes of this
Section 3.3, termination of employment shall include a change of employment such
that Executive shall no longer be employed by the Company as a Vice President or
as its senior  executive  responsible for the accounting and finance function of
the Company or at a salary less than Executive's current salary.

         3.3.2  Condition or Reduction  of Salary  Continuation.  The receipt by
Executive  of payments  pursuant to Section  3.3.1 is  specifically  conditioned
upon, and no payments pursuant to Section 3.3.1 shall be made to Executive if he
is, at the time of his  termination  of  employment,  in breach of any provision
(specifically  including,  but not limited to the  provisions of this  Agreement
pertaining  to  non-competition  and  confidentiality)  of this  Agreement  and,
further,  if such payments have already  begun the  continuation  of payments to
Executive pursuant to Section 3.3.1 shall cease at the time Executive shall fail
to comply with the non-competition and confidentiality  provisions of Article 4.
It is  expressly  understood  and  agreed  that the  amount  of any  payment  to
Executive  required  pursuant to Section  3.3.1 shall be reduced  (but not below
zero) by any  employment  compensation  received by Executive  during the period
called for in Section 3.3.1.  Executive  shall use his  reasonable  best efforts
during the  salary  continuation  period  set forth in  Section  3.3.1 to obtain
employment comparable to that with the Company.

         3.3.3 Change of Control.  A "Change of Control" shall mean (i) a change
of ownership  of Goran  Capital Inc.  such that the Symons  family  collectively
owns, including indirect and beneficial ownership, less than thirty-five percent
(35%) of the stock of Goran  Capital  Inc.;  (ii) the  inability  of the  Symons
family  to cause the  election  of a  majority  of the  members  of the Board of
Directors of either Goran, SIG or their respective successors; or (iii) a change
in the ability of the Symons  family to direct the  management of the day to day
operations of Goran, SIG or their respective successors.

         3.4 Disability. So long as otherwise permitted by law, if Executive has
become permanently disabled from performing his duties under this Agreement, the
Company's  Chairman  of the  Board,  may,  in  his  discretion,  determine  that
Executive  will not return to work and  terminate  his  employment  as  provided
below. Upon any such termination for disability,  Executive shall be entitled to
such disability,  medical, life insurance, and other benefits as may be provided
generally  for  disabled  employees  of  Company  during  the  period he remains
disabled.  Permanent  disability  shall be  determined  pursuant to the terms of
Executive's long term disability  insurance  policy provided by the Company.  If
Company elects to terminate this Agreement  based on such permanent  disability,
such termination shall be for cause.

         3.5  Indemnification.  Executive  shall be indemnified by Company (and,
where  applicable,   its  subsidiaries)  to  the  maximum  extent  permitted  by
applicable law for actions  undertaken for, or on behalf of, the Company and its
subsidiaries.

4.       Non-Competition, Confidentiality and Trade Secrets

         4.1  Noncompetition.  In consideration  of the Company's  entering into
this Agreement and the  compensation  and benefits to be provided by the Company
to You hereunder,  and further in  consideration of Your exposure to proprietary
information  of the  Company,  You agree that until the date of  termination  or
expiration of this Agreement for any reason (the "Date of  Termination")  not to
enter into  competitive  endeavors and not to undertake any commercial  activity
which is  contrary  to the best  interests  of the  Company  or its  affiliates,
including,  directly or  indirectly,  becoming an  employee,  consultant,  owner
(except  for  passive  investments  of not  more  than one  percent  (1%) of the
outstanding  shares of, or any other  equity  interest in, any company or entity
listed or traded on a national  securities  exchange  or in an  over-the-counter
securities market), officer, agent or director of, or otherwise participating in
the management,  operation, control or profits of (a) any firm or person engaged
in  the  operation  of a  business  engaged  in  the  acquisition  of  insurance
businesses or (b) any firm or person which either directly  competes with a line
or lines of business of the Company  accounting for five percent (5%) or more of
the  Company's  gross sales,  revenues or earnings  before taxes or derives five
percent  (5%) or more of such  firm's  or  person's  gross  sales,  revenues  or
earnings  before taxes from a line or lines of business which  directly  compete
with the Company.

         Notwithstanding any provision of this  Agreement to the  contrary,  You
                  agree that Your breach of the  provisions  of this Section 4.1
                  shall  permit the Company to  terminate  Your  employment  for
                  cause.

         4.2 Confidentiality.  You shall not knowingly disclose or reveal to any
unauthorized  person,  during  or after  the  Term,  any  trade  secret or other
confidential  information (as outlined in the Indiana Uniform Trade Secrets Act)
relating to the  Company or any of its  affiliates,  or any of their  respective
businesses or principals, and You confirm that such information is the exclusive
property of the Company and its  affiliates.  You agree to hold as the Company's
property all memoranda,  books,  papers,  letters and other data, and all copies
thereof or therefrom, in any way relating to the business of the Company and its
affiliates, whether made by You or otherwise coming into Your possession and, on
termination  of Your  employment,  or on demand of the  Company at any time,  to
deliver the same to the Company.

         Any ideas, processes, characters,  productions, schemes, titles, names,
formats,  policies,   adaptations,   plots,  slogans,   catchwords,   incidents,
treatment,  and dialogue which You may conceive,  create,  organize,  prepare or
produce during the period of Your  employment and which ideas,  processes,  etc.
relate to any of the  businesses  of the Company,  shall be owned by the Company
and its  affiliates  whether  or not You should in fact  execute  an  assignment
thereof to the Company, but You agree to execute any assignment thereof or other
instrument or document  which may be reasonably  necessary to protect and secure
such rights to the Company.

5.       Miscellaneous

          5.1 Amendment.  This Agreement may be amended only in writing,  signed
by both parties.

         5.2 Entire Agreement.  This Agreement contains the entire understanding
of the parties with regard to all matters contained  herein.  There are no other
agreements,  conditions  or  representations,  oral  or  written,  expressed  or
implied,  with regard to the  employment of Executive or the  obligations of the
Company  or the  Executive.  This  Agreement  supersedes  all  prior  employment
contracts and non-competition agreements between the parties.

         5.3 Notices. Any notice required to be given under this Agreement shall
be in  writing  and shall be  delivered  either in  person  or by  certified  or
registered mail, return receipt requested. Any notice by mail shall be addressed
as follows:

         If to the Company, to:

         Symons International Group, Inc.
         4720 Kingsway Drive
         Indianapolis, Indiana  46205
         Attention: Chief Executive Officer

         If to Executive, to:

         Earl Fonville

or to such other  addresses  as one party may  designate in writing to the other
party from time to time.

         5.4 Waiver of Breach. Any waiver by either party of compliance with any
provision of this Agreement by the other party shall not operate or be construed
as a waiver of any  other  provision  of this  Agreement,  or of any  subsequent
breach by such party of a provision of this Agreement.

         5.5 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 shall remain in full force and effect.

          5.6 Governing Law. This Agreement shall be interpreted and enforced in
accordance  with the laws of the  State of  Indiana,  without  giving  effect to
conflict of law principles.

         5.7 Headings. The headings of articles and sections herein are included
solely for  convenience  and  reference  and shall not  control  the  meaning or
interpretation of any of the provisions of this Agreement.

         5.8  Counterparts.  This  Agreement  may be  executed  by either of the
parties in  counterparts,  each of which shall be deemed to be an original,  but
all such counterparts shall constitute a single instrument.

         5.9 Survival.  Company's  obligations under Section 3.1 and Executive's
obligations under Section 4 shall survive the termination and expiration of this
Agreement in accordance  with the specific  provisions of those  Paragraphs  and
Sections and this  Agreement in its entirety shall be binding upon, and inure to
the benefit of, the successors and assigns of the parties hereto.

         5.10  Miscellaneous.  No provision of this  Agreement  may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in writing and signed by You and such officer as may be specifically  designated
by the Board.  No waiver by either party hereto at any time of any breach by the
other party hereto of, or  compliance  with,  any condition or provision of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar  or  dissimilar  provisions  or  conditions  at the same or at any prior
subsequent time.

         IN WITNESS WHEREOF,  the parties have executed this Agreement effective
as of the date set forth above.

                  GORAN CAPITAL INC.

                  By:__________________________________

                  Title:________________________________

                  SYMONS INTERNATIONAL GROUP,  INC.

                  By:__________________________________

                  Title:________________________________

                  EARL FONVILLE
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