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                              EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement") is entered into by and between
Symons International Group, Inc. (the "Company") and Mark A. Paul ("You",
"Your"or "Executive") with reference to the following:

     WHEREAS, the Company considers it essential to its best interests and the
best interests of its stockholders to employ Mark A. Paul, 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 July 30, 2001
and continuing until 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 one hundred twenty (120) days 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 a 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
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, Chief Executive Officer or Executive Vice President 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 Twenty Thousand
Dollars ($120,000). 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

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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, Chief Executive Officer or Executive Vice President 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. In addition, Executive shall receive the use of a Volvo S80
and the Company will reimburse Executive for all operational expenses. At the
expiration of the lease of the Volvo S80 in May, 2002, Executive will be
provided a motor vehicle allowance of $600 per month.

     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 the amount of any compensation
received by Executive or attributable to services performed by Executive during
the Salary Continuation period. During the Salary Continuation, Executive shall
provide the Company with a bi-weekly report which shall specify all services
performed by Executive for third parties, the identity of the person or entity
for which services were performed and any compensation paid or expected to be
paid to or for the benefit of Executive. Executive shall use his reasonable best
efforts during the Salary Continuation period to obtain employment comparable to
that with the Company.

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


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     (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, nonsolicitation 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, nonsolicitation 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. ("Goran") such that the Symons family
collectively owns, including indirect and beneficial ownership, less than
thirty-five percent (35%) of the stock of Goran; (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, the Company, 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, the Company or their respective successors.

     3.4    DISABILITY. So long as otherwise permitted by law, if Executive has
become permanently disabled from

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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, NON-SOLICITATION, 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.

     4.3    NONSOLICITATION. During Executive's employment with the Company and
for one (1) year following termination of Executive's employment, Executive will
not directly or indirectly solicit, divert or interfere with the relationship
between Company or its affiliates and any employee of Company or its affiliates.

5.   MISCELLANEOUS

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

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     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:

     Mark A. Paul
     112 West 44th Street
     Indianapolis, IN 46208

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.

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                                      SYMONS INTERNATIONAL GROUP,  INC.

                                      By:
                                          -------

                                      ----------------------------
                                      Douglas H. Symons, Chief Executive Officer


                                      Mark A. Paul










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