Document:

AMENDMENT NUMBER TWO TO EMPLOYMENT AGREEMENT

         This Amendment Number Two to Employment Agreement (this "amendment") is
made and  entered  into as of the 2nd day of January,  2000,  by and between IGF
Holdings, Inc., an Indiana corporation, and Thomas F. Gowdy with respect to that
certain Employment  Agreement executed April 9, 1996 and April 15, 1996 and that
certain Amendment  thereto dated August 1, 1997 and that certain  Assignment and
Assumption by and between IGF Insurance Company, an Indiana corporation, and IGF
Holdings, Inc. dated August 1, 1997 (collectively, the "Agreement").

         WHEREAS, the parties desire to amend the Agreement as set forth herein.

         NOW  THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency  of  which is  hereby  acknowledged,  the  parties  hereto  agree as
follows:

1.       Section 2.1 is hereby deleted in its entirety and there is inserted in
         lieu thereof the following:

                "2.1       Salary.  During  the  term  of  this  agreement,  the
                           Company  shall pay  Executive a salary at the minimum
                           annual  rate  of  One  Hundred  Sixty-Five   Thousand
                           Dollars  ($165,000).  This salary shall be payable in
                           twenty-six  (26)  equal   installment.   Company  may
                           increase  this annual rate at its  discretion  but no
                           reduction  of  Executive's  then  current rate of pay
                           shall be made without his prior written consent."

2.              Section 2.6 (b) is hereby  amended as follows:  The words "Seven
                Hundred  Fifty Dollars  ($750)" are hereby  deleted and there is
                inserted in lieu thereof, "One Thousand Dollars ($1,000)".

3.              The first  sentence of Section 1.1 is hereby amended as follows:
                The words "effective as of February 1, 1996 and continuing for a
                period of thirty-six  (36) months through  January 31, 1999" are
                hereby deleted and there is inserted in lieu thereof, "effective
                as of January 1, 2000 and  continuing for a period of thirty-six
                (36) months through December 31, 2002".

4.              There is hereby added to the end of the last sentence of Section
                1.1 the  following:  "provided,  however,  that the  Executive's
                right to receive the amount of such severance  payments shall be
                offset by income to the  Executive  from other than the Company,
                if any, during such twelve month period. Executive shall use his
                best efforts to obtain gainful  employment or earn income within
                a reasonable  area of Central  Iowa with a similar  position and
                within 80% of his current compensation,  during the term of such
                severance period."

5.       Section 3.4 is hereby added as follows, as amended:

                "3.4       Change   of   Control.   Notwithstanding   any  other
                           provisions  of this  Agreement,  if (i) a  Change  of
                           Control  shall  occur;  and (ii)  within  twelve (12)
                           months of any such Change of Control,  Executive  (a)
                           receives a Notice of  Non-Renewal,  (b) is terminated
                           for any reason  other than for Cause,  or (c) Company
                           (including  its  successors,  if any) is in breach of
                           this  Agreement,  (each  of  which  is a  "Triggering
                           Event") then Executive  shall continue to receive his
                           current  salary (in bi-weekly  payments) as severance
                           pay until the earlier to occur of:

(a)                                         Executive shall commence  employment
                                            with a firm or entity other than the
                                            Company such that his base salary is
                                            within  80%  of  his  current   base
                                            salary  pursuant to this  Agreement;
                                            or

(b)      The expiration of one (1) year from the date of the Triggering Event.

                           The receipt by Executive of payments pursuant to this
                           Section  3.4  is  specifically  conditioned,  and  no
                           payments  pursuant to this  Section 3.4 shall be made
                           to   executive   if  he  is,   at  the  time  of  his
                           Termination, in breach of any provision (specifically
                           including,  but not  limited  to, the  provision s of
                           this  agreement  pertaining to  non-solicitation  and
                           confidentiality)  of this  Agreement and has received
                           written  notice  from  the  Company   specifying  the
                           conduct  constituting  such breach and the section(s)
                           of this Agreement that are being  breached.  Further,
                           if such payments have already begun, the continuation
                           of payments to Executive pursuant to this Section 3.4
                           shall  cease  at the  time  Executive  shall  fail to
                           comply with the non solicitation and  confidentiality
                           provision  of  Article  4  herein  and  has  received
                           written  notice  from  the  Company   specifying  the
                           conduct  constituting  such breach and the section(s)
                           of this  Agreement  that are  being  breached.  It is
                           expressly  understood  and agreed  that the amount of
                           any payment to  Executive  required  pursuant to this
                           Section  3.4 shall be offset  (but not below zero) by
                           any base  salary  received  by  Executive  during the
                           period   called  for  in  this  Section  3.4  from  a
                           subsequent employer.

                    "Change of Control"  shall mean the  inability of any one or
                    all  collectively  G.  Gordon  Symons,  Alan G.  Symons  and
                    Douglas  H.  Symons  to  directly  or  indirectly  cause the
                    election  of a  majority  of the  members  of the  Board  of
                    Directors of Goran Capital Inc., Symons International Group,
                    Inc., IGF Holdings,  Inc. or IGF Insurance  Company or their
                    respective successors."

6.       Section 4.1 is deleted in its entirety and inserted in lieu thereof the
         following:

         4.1      Non-solicitation.

                           During Executive's employment with the Company during
                           the term of this  Agreement  and for a period  of one
                           (1)  year   from  and  after   termination   of  that
                           employment,  except for a termination  without Cause,
                           Executive  agrees that he will not;  (a)  directly or
                           indirectly,  solicit any of the  Company's  employees
                           for the purpose of hiring  them or  inducing  them to
                           leave  employment with the Company;  and (b) directly
                           solicit  any person or entity  that is, or was within
                           the then most recent 12-month  period,  a customer or
                           client of the company, whether for his own account or
                           for the account of any other individual, partnership,
                           firm, corporation or other entity, for the purpose of
                           selling  that third party crop  insurance  that would
                           replace or supersede  coverage  then  provided by the
                           Company  to  that  third   party.   For  purposes  of
                           subsection  4.1  (b),  the  term  "solicit"  shall be
                           limited to sales  efforts  initiated by Executive and
                           shall  not  include  any  response  by  Executive  to
                           inquiries   made  to  him   without   invitation   or
                           solicitation  on his part of referrals made by others
                           to Executive where such referrals were not invited or
                           encouraged by Executive.

7.              All  references  in this  Agreement  to  Section  4.1  and/or  a
                non-competition  covenant  shall be deemed to apply  only to new
                Section 4.1 and its non-solicitation provision.

8.             Section 5.3 is hereby amended as follows:  Notice to Executive
               shall be to:

                                    Thomas F. Gowdy
                                    6040 Nottingham
                                    Johnston, IA  50131

                  Notice to the Company shall be to:
                                    Alan G. Symons

                                  Goran Capital

                                    4720 Kingsway Drive
                                    Indianapolis, IN  46205

9.              Exhibit  C is  hereby  deleted  in its  entirety  and  there  is
                inserted  in lieu  thereof  Exhibit C as  attached  hereto.  All
                references in Exhibit C in the Agreement shall mean Exhibit C as
                attached hereto.

10.      Terms used herein and not otherwise defined shall have the meaning as
         set forth in the Agreement.
11.      Except as otherwise expressly set forth herein, the Agreement shall
         continue in full force and effect.
12.      Executive shall be employed as President of the Company and shall have
                duties  assigned to him as are customarily  assigned to
                the President of the Company by the Chief  Executive  officer of
                the Company or members of the Board.  The Executive  shall carry
                out his duties using this best efforts  ensure the well being of
                the Company. Any reduction in his title or scope of duties shall
                constitute a termination  without cause.  To the extent that the
                Agreement  lists  other  titles  and/or  duties  that  shall  be
                superceded by this paragraph.

13.             Notwithstanding  any other  provision  of this  Agreement,  upon
                termination  or  expiration  of the  Agreement  for any  reason,
                Executive  shall  be  entitled  to  not  less  than  a  one-year
                severance payment and continuation of benefits and insurance for
                12 months  after the date his  employment  ends,  based upon the
                offset agreed upon in 4.

                                        IGF Holdings, Inc.

                                         By:  _________________________________

                                         Alan G. Symons, Chief Executive Officer

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

                                         Thomas F. Gowdy

<PAGE>

                                                                       Exhibit C

Bonus Arrangement

The bonus shall be  calculated  based upon the Company's  pre-tax  profit before
management fees and bonuses to Executive. A minimum pre-tax profit target of Ten
Million  ($10,000,000) must b e obtained for the year ended December 31, 2000 in
order for a bonus to be earned.  The minimum pre-tax profit target will increase
ten percent (10%) per year for the life of the contract.  By way of example, the
minimum  pre-tax  profit target for 2001 must be  $11,000,000  for a bonus to be
earned.  The bonus  payable to  Executive  shall be  seventy-five  (75%) of base
salary.

Notwithstanding with the preceding  paragraph,  during the 36-month term of this
Agreement,  a bonus of not less than  $150,000  shall be paid to  Executive as a
guaranteed amount. If the bonus paid under the first paragraph of this exhibit C
do not reach $150,000, the remaining amount will be paid to Executive or used to
offset  any  advances  made to him by the  company.  To the  extent  such  bonus
payments have not been sufficient to offset advances made to the executive prior
to the date of signing of this Agreement, will be considered discharged and paid
in full  without tax  consequence  to the  Executive  (Thus,  if any  additional
amounts or "gross up" payments must be made to offset  taxes,  the Company shall
pay the amount  necessary to the  Executive  prior to the tax filing due date of
the Executive.)

<PAGE>EMPLOYMENT AGREEMENT

          WHEREAS,  Symons  International  Group, Inc. ("SIG") and Goran Capital
Inc.  ("Goran")  (collectively,  SIG and Goran are referred to as the "Company")
consider  it in their best  interests  to employ  Gene S.  Yerant  ("you" or the
"Executive")  upon the terms and conditions  hereinafter set forth; and WHEREAS,
the Executive is an individual  with  substantial  experience in the business of
nonstandard automobile insurance;

         WHEREAS,  the Company  desires to employ an  executive  who will make a
significant  contribution to effect profitability in its nonstandard  automobile
insurance business; 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 follow:

1.   Employment

1.1               Term of Agreement.  The Company agrees to employ the Executive
                  as Executive Vice President of Goran, Executive Vice President
                  of SIG,  and  President  of  Superior  Insurance  Group,  Inc.
                  ("Superior")  effective as of January 10, 2000 and  continuing
                  for a period of sixty (60)  months  through  January  10, 2005
                  unless such  employment  is  terminated  pursuant to Section 3
                  below; provided, however, that the term of the Agreement shall
                  automatically  be extended  without  further  action of either
                  party for additional  one-year periods  thereafter unless, not
                  later than six months prior to the end of the effective  term,
                  either the Company or the  Executive  shall have given written
                  notice  that  such  party  does  not  intend  to  extend  this
                  Agreement (the "Term").

1.2               Terms  of  Employment.  During  the  Term,  you  agree to be a
                  full-time  employee of SIG and Goran  serving in the positions
                  of Executive  Vice President of SIG and Goran and President of
                  Superior 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 Executive
                  Vice President of SIG and Goran and President of Superior,  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
                  Board of  Directors  of the  Company,  which  duties  shall be
                  consistent  with the position of Executive  Vice  President of
                  SIG  and  Goran,   which  shall  grant  Executive   authority,
                  responsibility,  title and standing  comparable  to that of an
                  executive vice president of a publicly held insurance company.
                  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               Director.  The Company will appoint the  Executive as a member
                  of the Board of  Directors  of SIG and Superior at their first
                  meeting(s) following the effective date of this Agreement. The
                  Companies  will  provide  Officers  and  Directors   Liability
                  insurance  in an amount equal to $10  million.  The  Executive
                  agrees to resign as a director of SIG and  Superior  and other
                  affiliates of the Company upon the  termination  or expiration
                  of this Agreement.

2.       Compensation, Benefits and Prerequisites

         2.1      Salary:  During the term of this Agreement,  the Company shall
                  pay  Executive  a salary at the  minimum  annual  rate of Five
                  Hundred  Thousand  Dollars  ($500,000).  The  salary  shall be
                  payable in bi-weekly equal installments.

         2.2      Bonus Plan:

A.       Bonus A. Based on  Superior's  GAAP combined  ratios,  including
                 billing  fees being  below 100% and gross  written  premium for
                 2000 being  greater than  $250,000,000.  A bonus of $25,000 per
                 .25%  improvement  in  combined  ratio  (as an  example  at 98%
                 combined  ratio the bonus would equal  $200,000).  For the year
                 2001 the gross  written  premium must exceed  $300,000,000  and
                 grow thereafter at 15% per annum. A guaranteed minimum bonus of
                 $125,000  is  payable  should the  combined  ratio be 101.5% or
                 better for the year 2000.  The minimum is increased to $166,000
                 at  combined  ratio of 100% for the year 2000.  The  minimum is
                 increased to $250,000  should the combined ratio be better than
                 99% for the year 2000.  All of the above  adjusted to eliminate
                 prior  years'  development.  Payment  of the  bonus is based on
                 audit and  actuary  report of  combined  ratio with  deficit or
                 credit of reserves  for year 2000 forward  adjusting  the bonus
                 paid.

                Bonus A is payable by April 15 of the year following the year on
                which the bonus is based.  The year  2000  bonus is  payable  by
                April 15, 2001. The year 2001 bonus is payable by April 15, 2002
                and so on and so forth.

B.       Bonus B. In addition to the  foregoing,  should  Superior  equal or
         exceed the pre-tax profit as shown below in the year shown
         below a lump sum bonus as shown will be payable.

Year Ended

December 31,               PRE-TAX PROFIT AT SUPERIOR         BONUS PAYABLE

2000                                $25,893,000                 $500,000

2001                                $29,777,000                 $500,000

2002                                $34,243,000                 $500,000

2003                                $39,380,000                 $500,000

2004                                $45,287,000                 $500,000

                           Bonus B is payable by April 15 of the year  following
                           the year on which the  bonus is based.  The year 2000
                           bonus is  payable  by April 15,  2001.  The year 2001
                           bonus is payable  by April 15,  2002 and so on and so
                           forth.

         2.3      Stock Options.  Executive  shall be eligible to participate in
                  the  Company's  stock option plan and will be granted  100,000
                  options  for shares of Goran at the market  price on the first
                  day of the Term.  Executive's  stock  options  shall be issued
                  pursuant to the Goran  Capital  Inc.  Share  Option Plan and a
                  Stock Option  Agreement  with respect  thereto  which shall be
                  substantially in the Form of Exhibit A attached hereto.  These
                  options  shall vest and become  exercisable  by the  Executive
                  pro-rata  over a five (5) year  period from the date of grant.
                  However,  should the  Executive be  terminated  for other than
                  material  cause,   the  options  shall  vest  immediately  and
                  Executive may exercise  such options  within four (4) weeks of
                  the date of termination of employment.  In the event Executive
                  shall fail to exercise  the  options  within four (4) weeks of
                  termination of employment, the options shall expire.

         2.4      Privatization:  Should  the  majority  stockholders  of  Goran
                  complete a privatization  of SIG and Goran, the Executive will
                  be entitled to an  ownership  interest in the new entity.  The
                  Executive's  ownership  interest shall be in the form of stock
                  options in the parent  holding  company of Superior  (the "New
                  Entity").  Executive  will be entitled to options  which equal
                  2.5%  of the  ownership  interests  of  the  New  Entity.  The
                  exercise price of the options in the New Entity shall be based
                  upon   the   value  of  the   Company   at  the  time  of  the
                  privatization. As a condition of the grant of such replacement
                  options,  the options  referred to in  paragraph  2.3 shall be
                  canceled   and  any  shares  of  stock  of  Goran  which  have
                  theretofore  been  issued  upon the  exercise  of the  options
                  referred  to in  paragraph  2.3  shall  be  exchanged  for the
                  replacement  options  all as more fully set forth in the Stock
                  Option  Agreement.  The  vesting  period  of such  replacement
                  options  will  be  over  the  remaining  initial  term of this
                  Agreement.   The  amount  of  the   exercise   price  of  such
                  replacement  options shall be based upon a formula which shall
                  be the same formula  utilized for valuing the options of other
                  executives of the Company in comparable  positions,  including
                  the president and chief operating officer of the Company.

                  Should the Company authorize and/or issue additional stock the
                  Executive  will  be  issued  additional  stock  sufficient  to
                  maintain a 2.5%  interest  in the  Company.  There shall be no
                  dissolution  of  interest  without  the  Executive's   express
                  written consent.

                  In the  event  Executive  elects  or is  required  to sell his
                  vested  options or shares to the  Company or New  Entity,  the
                  price for each option or share shall be as  determined  by the
                  Company  pursuant to the Company's  plan for its Executives as
                  determined  by the  Board  of  Directors  and  which  shall be
                  comparable to those of similar entities.  Notwithstanding  the
                  foregoing,  the  value  of such  options  or  shares  shall be
                  determined  in  accordance  with  the  same  formula  or price
                  utilized for valuing the options or shares of other executives
                  of  the  Company  in  comparable   positions,   including  the
                  president and chief executive officer of the Company.

         2.5      Employee  Benefits:  The Executive shall be entitled to
                  receive all benefits and  prerequisites  which are comparable
                  to those provided to other Executives of the Company and in
                  accordance with the policies of the Company.

         2.6      Additional Perquisites:   During the term of this Agreement,
                  the Company shall provide the Executive with:

A.       A minimum of six (6) weeks paid vacation during each calendar year.

B.                A  monthly  motor  vehicle  allowance  equal to the value of a
                  luxury car or the Company  will provide the  Executive  with a
                  luxury car  (Defined  as a BMW 740iL or its  equivalent.)  and
                  will reimburse for all operational expenses. Executive will be
                  entitled to trade the car in at the time the car has in excess
                  of 75,000 miles or four (4) years, whichever first occurs.

C.                Monthly  dues  incurred by  Executive  at the country club and
                  city club of his choice located within  reasonable  geographic
                  limits of the corporate offices of the Company,  including the
                  entrance  fees to become a member of the country club and city
                  club.

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

         2.8      Insurance:  The Company will allow the Executive to include in
                  his expense  account the cost of personal  insurance for up to
                  two (2) private cars,  homeowner's  insurance on his principal
                  residence  in  the  city  of  employment  of  the   Executive,
                  including $2 million umbrella liability.

         2.9      401(k): Executive will be eligible for the SIG 401(k) plan in
                  accordance with the policies of the Company.

         2.10     Hiring Bonus: The Company will pay Executive Two Hundred Fifty
                  Thousand Dollars  ($250,000) upon  commencement of employment.
                  Should the Executive leave the Company within the first twelve
                  (12) months of employment,  including termination for material
                  cause, and excluding termination by the Company, the Executive
                  shall  immediately  reimburse  the  Company  the sum of Twenty
                  Thousand  Eight Hundred  Dollars  ($20,800) for each remaining
                  month of the first twelve (12) months of employment

         2.11 Relocation Expense

A.                Company  will cover the direct  costs of moving the  Executive
                  and his family from Dallas,  Texas to  Indianapolis,  Indiana,
                  including  visits  to  Indianapolis,  packing,  moving  costs,
                  insurance and unpacking.

B.       Company will pay realtor fees up to 7% on the sale of the Dallas home.

C.       Company will pay all closing  costs on an  Indianapolis  home and buy
         down the mortgage to 6.75% for a mortgage  loan of up to $300,000.

D.                Company  will  hire a  relocation  firm or give you a  minimum
                  price on your home based on fair market value.  If your Dallas
                  home does not sell  within 120 days of the  agreed  move date,
                  the Company  will  purchase the home at the agreed fair market
                  value or the  relocation  firm will take it over.  The Company
                  will help with any bridging loans required.

E.       Company will reimburse the Executive for weekly travel to and from
         Dallas until the relocation is complete.

3.       Termination of Executive's Employment

         3.1      Termination  of Employment and Severance Pay. The  Executive's
                  employment  under this Agreement may be terminated by
                  either party at any time for any reason.

                  In the event Executive is terminated for any reason other than
                  for material cause, the Executive shall be entitled to receive
                  a continuation of his salary and benefits in effect under this
                  Agreement  on the  date of his  employment  termination  for a
                  period of two (2) years  provided  that the  Executive has not
                  breached the terms of this Agreement.  Should the Executive be
                  terminated by the Company for other than material  cause,  all
                  of  Executive's  stock  options  shall  immediately  vest  and
                  Executive  shall be entitled to  exercise  the options  within
                  four (4) weeks of  termination.  If  Executive  shall  fail to
                  exercise the options  within four (4) weeks of  termination of
                  employment,  the options shall expire.  All bonuses that shall
                  have become earned as of the most recently  preceding year end
                  shall be due and payable in accordance  with the bonus payment
                  dates as set forth in Section 2.2 hereof. Bonuses, which would
                  have  been  earned  for the year in  which  the  Executive  is
                  terminated, shall be paid pro rata to the date of termination.
                  Termination shall be effective as of the date specified by the
                  party initiating the termination in a written notice delivered
                  to the other party.

                  In the  event  this  Agreement  is  not  renewed  by  Company,
                  Employee  shall be entitled to receive a  continuation  of his
                  salary and benefits in effect under this Agreement on the date
                  of  non-renewal  for a period of one (1) year from the date of
                  such non-renewal  provided that the Executive has not breached
                  the terms of this Agreement.

                  Upon termination of employment by the Executive,  for whatever
                  reason,  the  Executive  will not be  entitled  to receive any
                  further  salary,  benefits  or bonuses  and all stock  options
                  which have not then vested shall expire.

         3.2      Change of Control.  Notwithstanding  any other  provisions  of
                  this  Agreement,  if (i) a Change of Control shall occur;  and
                  (ii) within  twelve (12) months of any such Change of Control,
                  (a) Company  (including its successors,  if any) shall require
                  Executive  to perform his duties and  obligations  pursuant to
                  this Agreement in a location other than the city of employment
                  of  Executive  at the time of such Change of  Control,  or (b)
                  Company  (including its successors,  if any) shall  materially
                  change the duties,  authority or responsibilities of Executive
                  such  that  the  same  are  materially  inconsistent  with the
                  duties, authority or responsibilities of Executive at the time
                  of such Change of Control,  then Executive's  employment under
                  this  Agreement  shall be deemed to have  terminated for other
                  than  material  cause  pursuant  to Section  3.1  hereof,  and
                  Executive  shall be entitled to receive  salary,  benefits and
                  rights  with  respect  to stock  options as  provided  in such
                  Section 3.1.

                  "Change of  Control"  shall mean the  inability  of the Symons
                  family to cause the  election  of a majority of the members of
                  the  Board  of   Directors   of  Goran  or  their   respective
                  successors.

         3.3      Transition  of Duties.  Should  the  Executive  terminate  his
                  employment  with the Company,  the Executive will make himself
                  readily  available to the Company for a  reasonable  period of
                  time,  at  the  Company's   discretion,   to  facilitate   the
                  transition of information and knowledge to a new executive. At
                  the discretion of the Company,  this period shall be a maximum
                  of six (6) weeks following notice of termination.

         3.4      Material  Cause:  For  purposes of this  Agreement,  "material
                  cause" shall mean only the  following:  (i) the  committing of
                  any act by  Executive  which  would be  considered  a criminal
                  offense (other than minor traffic violations) or conviction of
                  or  admission  to  conversion  of Company  assets in an amount
                  greater than Five Thousand Dollars ($5,000)) under the laws of
                  either  Indiana  or the  United  States of  America;  (ii) the
                  failure by Executive to perform his material duties under this
                  Agreement (excluding nonperformance resulting from Executive's
                  disability) or  disobedience  to lawful  directives from those
                  persons  or bodies  outlined  in  Section  1.2 which  have the
                  authority  to  determine  and  direct   Executive's  work  and
                  activities where such failure is not cured by Executive within
                  fifteen (15) days of his receipt of written  notification from
                  Company specifying Executive's failure or breach and the steps
                  the  Executive  must  take to cure  that  failure  or  breach;
                  however,  during the  fifteen  (15) days the  Company  has the
                  option to put the  Executive  on leave of absence with pay; or
                  (iii) disability as provided in Section 3.5.

         3.5      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
                  herein.  Upon any such  termination for disability,  Executive
                  shall be entitled to such disability, medical, life insurance,
                  and other  benefits as may be generally  provided 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
                  deemed to be for material cause.

Non-Competition, Confidentiality and Trade Secrets

         4.1      Agreement Not To Compete:  Until the expiration of the term of
                  this Agreement or for a period of two (2) years after the date
                  that the Executive's  employment with the Company  terminates,
                  whichever  period is the later, the Executive will not, unless
                  he receives  prior written  approval of the Board of Directors
                  of the Company,  directly or  indirectly  engage in any of the
                  following actions:

                  A.       Directly or  indirectly,  attempt to move or transfer
                           business  greater than 5% of the aggregate  amount of
                           gross sales, revenues or earnings before taxes of the
                           Company; or

                  B.       Directly or indirectly  hire,  solicit for hire or
                           engage in an activity that would entice  employees of
                           the Company to move to a competitor or to a company
                           or business where the Executive has become employed;
 or

                  C.       Intentionally cause material damage to the Company.

         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  relating  to the
                  Company or any of its  affiliates,  which you acquired  during
                  your term of employment, 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.  Material  knowledge  and
                  information you bring to the Company are specifically excluded
                  from this Agreement

5.       Miscellaneous

         5.1      Mutuality. This Agreement is mutually binding on Goran
                  and SIG.

         5.2      Binding Effect. This Agreement is binding on all assignees and
                  /or successors of the Company.

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

         5.4      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.

         5.5      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 or to such other
                  address as shall be specified in writing:

<PAGE>

                  If to the Company, to:

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

                  If to Executive, to:

                  Mr. Gene S. Yerant
                  6515 Waggoner Drive
                  Dallas, TX  75230

         5.6      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.

         5.7      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.

         5.8      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.

         5.9      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.

         5.10     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.

         5.11     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 Sections.

<PAGE>

         5.12     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 _____ day of December, 1999.

GORAN CAPITAL INC.

By:     _____________________________

Title:  _____________________________

SYMONS INTERNATIONAL GROUP, INC.

By:__________________________________

Title:________________________________

GENE S. YERANT
("Executive")

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

<PAGE>

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