Document:

AMENDMENT TO AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

                  This AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT (this "Amendment") is made as of as April 13, 2001, effective as of
February 28, 2001, among LaSalle Bank National Association, a national banking
association ("LaSalle"), Harris Trust and Savings Bank ("Harris," and together
with LaSalle, the "Lenders"), LaSalle, in its separate capacity as agent for the
Lenders under the Loan Agreement (as hereinafter defined) ("Agent"), and Westell
Technologies, Inc., a Delaware corporation ("WTI"), Westell, Inc., a Delaware
corporation ("Inc."), Westell International, Inc., a Delaware corporation
("WII"), Conference Plus, Inc., an Illinois corporation ("CPI"), and Teltrend,
Inc., an Illinois corporation ("Teltrend," and collectively with WTI, Inc., WII
and CPI, the "Borrowers").

                                   BACKGROUND
                                   ----------

                  A. Lenders, Agent and Borrowers are party to that certain
Amended and Restated Loan and Security Agreement dated as of August 31, 2000 (as
amended prior to the date hereof, the "Loan Agreement"), pursuant to which
Agent, with and on behalf of the Lenders, have made loans and advances to
Borrowers, and as security therefor, Borrowers have granted to Agent a lien on
Borrowers' real, personal and intellectual property.

                  B. Borrowers have informed Agent that they are currently in
violation of certain covenants under the Loan Agreement and have requested that
Agent and Lenders waive the violations specifically identified herein and any
events of default created thereby.

                  C. Borrowers have also requested that Agent and Lenders modify
certain financial covenants under the Agreement.

                  D. Agent and Lenders are willing to modify such covenants and
grant such waivers provided that Borrowers enter into this Amendment upon the
terms and conditions set forth herein.

                  E. Capitalized terms used but not defined herein shall have
the meanings ascribed to them in the Loan Agreement.

                  NOW, THEREFORE, in consideration of the premises and the
mutual promises herein contained, and intending to be legally bound hereby, the
parties hereto agree as follows:

<PAGE>

SECTION 1         AMENDMENTS TO LOAN AGREEMENT
                  ----------------------------

                  1.1 The following definition of "Tangible Net Worth" is hereby
         added to the Loan Agreement in the appropriate alphabetical place:

                           "Tangible Net Worth" shall mean the Net Worth of the
                  Borrowers as of the date of reference, less the sum of (A)
                  intangible assets, classified as such in accordance with
                  Generally Accepted Accounting Principles and (B) prepaid
                  expenses, classified as such in accordance with Generally
                  Accepted Accounting Principles.

                  1.2      Section 11.1 of the Loan Agreement is hereby amended
         by deleting it in its entirety and replacing it with the following:

                           "11.1 Interest Coverage Ratio. Borrowers shall have:
                  (i) an Interest Coverage Ratio, measured on a Fiscal
                  Year-to-date basis as of the end of each calendar month
                  commencing with June 2001 and continuing through September
                  2001, of at least 4.00:1.00; and (ii) an Interest Coverage
                  Ratio, measured on a rolling basis as of the end of each
                  subject calendar quarter commencing with the calendar quarter
                  ending December 31, 2001, including the subject calendar
                  quarter and the three (3) consecutive calendar quarters
                  immediately preceding the subject calendar quarter, of at
                  least 4.00:1.00. For purposes of calculating subject Interest
                  Coverage Ratios under clause (i) above (but not clause (ii)
                  above), Borrower's EBITDA for the relevant measurement period
                  shall be increased by any "First Equity Funds" or "Second
                  Equity Funds" received by Borrowers (and deposited into the
                  Depository Account) during the relevant measurement period as
                  required under Section 4 below."

                  1.3      Section 11.2 of the Loan Agreement is hereby amended
         by deleting it in its entirety and replacing it with the following:

                           "11.2 EBITDA. Borrowers shall have (i) a minimum
                  Fiscal Year-to-date EBITDA of not less than negative
                  $2,105,000 as of June 30, 2001, of not less than negative
                  $2,100,000 as of July 31, 2001, of not less than negative
                  $2,150,000 as of August 31, 2001, and of not less than
                  negative $2,350,000 as of September 30, 2001, and (ii) on each
                  date set forth below, a minimum EBITDA of not less than the
                  EBITDA set forth opposite such date set forth below, measured
                  on a rolling twelve-month basis as of the end of the Fiscal
                  Quarter ending on such date:

                                      -2-
<PAGE>

                           Date                                  EBITDA
                           ----                                  ------

                           December 31, 2001                  $32,000,000
                           March 31, 2002                     $35,500,000
                           June 30, 2002                      $37,000,000
                           September 30, 2002                 $38,500,000
                           December 31, 2002                  $40,000,000
                           March 31, 2003                     $42,000,000
                           June 30, 2003                      $42,000,000"

                  1.4      Section 11.3 of the Loan Agreement is hereby amended
         by deleting it in its entirety and replacing it with the following:

                                    "11.3 (a) Net Worth Commencing with the
                   fiscal quarter ending December 31, 2001, Borrowers shall
                   maintain at all times, measured on a quarterly basis, a Net
                   Worth of not less than (i) $250,000,000 plus (ii) fifty
                   percent (50%) of Borrowers' positive Net Income for each
                   Fiscal Quarter ending on and after September 30, 2000.

                                            (b)      Tangible Net Worth.
                   Commencing with June 2001, Borrowers shall maintain
                   at all times through September 2001, measured on a monthly
                   basis, a Tangible Net Worth of not less than (i) $50,200,000
                   as of June 30, 2001, (ii) $48,300,000 as of July 31, 2001,
                   (iii) $46,400,000 as of August 31, 2001 and (iv) $44,300,000
                   as of September 30, 2001."

                  1.5      The Loan Agreement is hereby amended by adding a new
          Section 12.13 as follows:

                                    "12.13 Projections Opinion." If Borrowers
                  fail to deliver to Agent by May 15, 2001 a favorable opinion
                  (in form and substance satisfactory to Lenders in their sole
                  discretion and paid for by Borrowers) from a third party
                  consultant acceptable to Lenders in their sole discretion, as
                  to the reasonableness and achievability of the projections,
                  taken as a whole, prepared by Borrowers' management and which
                  are attached hereto as Exhibit A. Any concerns or exceptions
                  raised in the opinion will be addressed to the satisfaction of
                  the Lenders by June 30, 2001."

                  1.6      Section 12.2(a) of the Loan Agreement is hereby
          amended by adding "10.3," after "9.9,".

                                      -3-
<PAGE>

                   1.7 Annex A to the Loan Agreement is hereby deleted in its
          entirety and the Annex A in the form of Exhibit B hereto is inserted
          in substitution therefor. The parties agree that the Annex A attached
          hereto as Exhibit B shall be effective as of April 13, 2001, and
          interest and other charges due under the Loan Agreement shall be
          calculated per the Annex A attached hereto from and after that date.

                  1.8 Borrowers jointly and severally acknowledge and agree
         that, from and after the date hereof, they shall not have any further
         rights to request any Eurodollar Loans, and the Loan Agreement is
         hereby deemed to be amended accordingly to effect such termination of
         rights. Borrowers further jointly and severally acknowledge and agree
         that Agent, on behalf of the Lenders, shall have the right, in its
         absolute discretion, but not any obligation, at any time and from time
         to time after the date hereof, to convert any or all Eurodollar Loans
         existing on the date hereof into Reference Rate Loans, and that any
         such conversions (i) shall be deemed to be at the request of Borrowers
         and (ii) shall be subject to Sections 2.19, 2.20 and other appropriate
         provisions of the Loan Agreement.

SECTION 2         REPRESENTATIONS AND WARRANTIES
                  ------------------------------

                  To induce Agent and Lenders to amend the Loan Agreement and
grant the waivers set forth herein, Borrowers jointly and severally represent
and warrant to Agent and Lenders that:

                  2.1 Representations and Warranties. On the date hereof, the
representations and warranties and covenants set forth in the Loan Agreement (as
modified by this Amendment), are true and correct with the same effect as though
such representations and warranties and covenants had been made on the date
hereof, except to the extent that such representations and warranties and
covenants expressly relate to an earlier date.

                  2.2 Corporate Authority of Borrowers. Borrowers have full
power and authority to enter into this Amendment, and to incur and perform the
obligations provided for under this Amendment and the Loan Agreement, all of
which have been duly authorized by all proper and necessary corporate action. No
consent or approval of stockholders or of any public authority or regulatory
body is required as a condition to the validity or enforceability of this
Amendment.

                  2.3 Amendment as Binding Agreement. This Amendment constitutes
the valid and legally binding obligation of Borrowers, fully enforceable against
Borrowers, in accordance with its terms.

                                      -4-
<PAGE>

                  2.4 No Conflicting Agreements. The execution and performance
by the Borrowers of this Amendment will not (i) violate any provision of law,
any order of any court or other agency of government, or the Articles of
Incorporation or Bylaws of any Borrower, (ii) violate any indenture, contract,
agreement or other instrument to which any Borrower is a party, or by which its
property is bound, or be in conflict with, result in a breach of or constitute
(with due notice and/or lapse of time) a default under, any such indenture,
contract, agreement or other instrument or result in the creation or imposition
of any lien, charge or encumbrance of any nature whatsoever upon any of the
property or assets of any Borrower.

SECTION 3  CONDITIONS PRECEDENT.
           --------------------

                  The agreement by Agent and Lenders to amend the Loan Agreement
and grant the waivers herein is subject to the following conditions precedent:

                  3.1 Reaffirmation of Stock Pledge Agreement. Execution and
delivery by WTI of a reaffirmation of that certain Stock Pledge Agreement dated
as of August 31, 2000, between WTI and Agent in the form of Exhibit C hereto.

                  3.2 Corporate Authority. Borrowers shall have provided to
Agent certified copies of the unanimous written consent of their Boards of
Directors in a form reasonably acceptable to Agent and Lenders authorizing the
execution, delivery and performance by the Borrowers of this Amendment and the
agreements, instruments and documents executed in connection herewith.

SECTION 4         WAIVERS
                  -------

                  The Lenders hereby waive Borrowers' failure to be in
compliance with the EBITDA covenant as of February 28, 2001 and the EBITDA,
Interest Coverage Ratio and Net Worth covenants as of March 31, 2001, and any
Events of Default created thereby, solely as of those dates.

                  The Lenders further waive the Borrowers' failure to comply
with the terms of Section 4 of that certain Amendment to Amended and Restated
Loan and Security Agreement dated as of February 15, 2001 among Borrowers,
Lenders and Agent, and any Events of Default created thereby (but such waiver
shall not apply to Borrowers' covenants set forth below in this Section 4).

                  The foregoing waivers shall be limited waivers and shall not
constitute a waiver of any other or subsequent violations of the Loan Agreement,
whether of a different or like nature, nor shall they constitute a course of
conduct or dealing.

                                      -5-
<PAGE>

                  In consideration for these waivers, Borrowers jointly and
severally covenant and agree that after the date hereof, one or more of the
Borrowers shall issue and sell capital stock for minimum aggregate
considerations of (a) $5 million in cash net to Borrowers by May 15, 2001 (the
"First Equity Funds") and (b) an additional $20 million in cash net to Borrowers
(the "Second Equity Funds") by June 30, 2001, all of which First and Second
Equity Funds shall be deposited into the Depository Account in accordance with
Section 3.5(ii) of the Loan Agreement. Failure either to raise the First Equity
Funds in full by May 15, 2001, or to raise the Second Equity Funds in full by
June 30, 2001, and to deposit all said funds into the Depository Account by the
aforesaid due dates, shall constitute an Event of Default (without any cure or
grace period) under the Loan Agreement. Neither the First or the Second Equity
Funds paid into the Depository Account pursuant hereto shall reduce the amount
or calculation of Revolving Loans available to Borrowers, and Borrowers may
continue to request Revolving Loans, pursuant to the Loan Agreement, as amended
hereby.

SECTION 5         REAFFIRMATION
                  -------------

                  WTI, Inc., CPI and Teltrend (together, the "Pledgors") are
each party to both (i) a Security Agreement and Mortgage - Trademarks and
Patents and (ii) a Security Interest Agreement - Patents, each dated as of
August 31, 2000 (together, the "Security Agreements") pursuant to which Pledgors
granted to Agent a lien on and security interest in certain of Pledgors patents
and trademarks as described therein. Pledgors hereby expressly reaffirm and
assume all of their obligations and liabilities as set forth in the Security
Agreements, agree that the obligations secured thereby shall include all
obligations of Borrowers to Agent under the Loan Agreement, as amended from time
to time, including this Amendment, and agree to be bound by and abide by and
operate and perform under and pursuant to and comply fully with all of the
terms, conditions, provisions, agreements, representations, undertakings,
warranties, and covenants contained in the Security Agreements, insofar as such
obligations and liabilities may be modified by this Amendment.

SECTION 6  GENERAL PROVISIONS.
           -------------------

                  6.1 Except as amended by this Amendment, the terms and
provisions of the Loan Agreement shall remain in full force and effect and are
hereby affirmed, confirmed and ratified in all respects. Borrowers ratify,
confirm and affirm without condition, all liens and security interests granted
to Agent pursuant to the Loan Agreement and the Loan Documents, and such liens
and security interests shall continue to secure the obligations and liabilities
of Borrowers to Agent, including but not limited to, all loans

                                      -6-
<PAGE>

made by Agent to the Borrowers under the Loan Agreement as amended by this
Amendment.

                  6.2 This Amendment shall be construed in accordance with and
governed by the laws of the State of Illinois, and the obligations of Borrowers
under this Amendment are and shall arise absolutely and unconditionally upon the
execution and delivery of this Amendment.

                  6.3 This Amendment may be executed in any number of
counterparts.

                  6.4 Borrowers hereby agree to pay all out-of-pocket expenses
incurred by Agent in connection with the preparation, negotiation and
consummation of this Amendment, and all other documents related thereto,
including without limitation, the reasonable fees and expense of Agent's
counsel, and any filing fees required in connection with the filing of any
documents necessary to consummate the provisions of this Amendment.

                  6.5 On or after the effective date hereof, each reference in
the Loan Agreement or any of the Loan Documents to this "Agreement" or words of
like import, shall unless the context otherwise requires, be deemed to refer to
the Loan Agreement as amended hereby.

                  [Remainder of page intentionally left blank]

                                      -7-
<PAGE>

         IN WITNESS WHEREOF, Borrowers, Agent and Lenders have caused this
Amendment to be duly executed by their duly authorized officers, all as of the
date and year first above written.

         "BORROWERS"                WESTELL TECHNOLOGIES, INC.

                                            By:      ___________________________
                                            Title:   ___________________________

                                            WESTELL, INC.

                                            By:      ___________________________
                                            Title:   ___________________________

                                            WESTELL INTERNATIONAL, INC.

                                            By:      ___________________________
                                            Title:   ___________________________

                                            CONFERENCE PLUS, INC.

                                            By:      ___________________________
                                            Title:   ___________________________

                                            TELTREND, INC.

                                            By:      ___________________________
                                            Title:   ___________________________

                                            Address: 750 North Commons Drive
                                                     Aurora, Illinois 60504

                                      -8-
<PAGE>

                                            LASALLE BANK NATIONAL ASSOCIATION,
                    a national banking association, as Agent

                                            By:      ___________________________
                                            Title:   ___________________________

                                            Address: 135 S. LaSalle Street
                                                     Chicago, Illinois 60603
                                                     Attn: Stephanie Patterson

                        LASALLE BANK NATIONAL ASSOCIATION

                                            By:      ___________________________
                                            Title:   ___________________________

                                            Address: 135 South LaSalle Street
                                                     Chicago, Illinois 60603
                                                     Attn: Stephanie Patterson

                                            HARRIS TRUST AND SAVINGS BANK

                                            By:      ___________________________
                                            Title:   ___________________________

                                            Address: 111 West Monroe Street
                                                     Chicago, Illinois 60690
                                                     Attn: M. James Barry, III

                                      -9-

<PAGE>

Exhibit B to Amendment to Amended and Restated Loan Agreement
-------------------------------------------------------------

                          Annex A - Applicable Margins

LIBOR Margin               3.00%*

Reference Rate Margin      1.00%

Unused Fee                          0.50%

Standby L/C Fee Rate                3.00%

Trade L/C Fee Rate                  1.50%

                  Borrowers understand and agree that the foregoing margins,
fees and rates are permanently fixed as of April 13, 2001 and will not fluctuate
with fluctuations in the Interest Coverage Ratio or otherwise.

                  *To apply until all existing Eurodollar Loans are converted
per Section 1.8 of this Amendment.

<PAGE>

Exhibit C to Amendment to Amended and Restated Loan Agreement
-------------------------------------------------------------

                     REAFFIRMATION OF STOCK PLEDGE AGREEMENT

                  This Reaffirmation of Stock Pledge Agreement dated as of April
13, 2001, effective as of February 28, 2001 (this "Reaffirmation") is entered
into between WESTELL TECHNOLOGIES, INC., a Delaware corporation (herein called
the "Pledgor"), and LASALLE BANK NATIONAL ASSOCIATION as agent on behalf of
LaSalle Bank National Association and the other "Lenders" (herein called the
"Pledgee"), and has reference to the following facts and circumstances:

                  A. Pursuant to that certain Amended and Restated Loan and
Security Agreement dated as of August 31, 2000, (as previously amended and
herein as amended or modified from time to time, the "Loan and Security
Agreement") between Pledgee, certain Lenders, and Pledgor (together with its
subsidiaries, Westell, Inc., Westell International, Inc., Conference Plus, Inc.
and Teltrend, Inc. collectively referred to hereinafter as "Borrowers"), Pledgor
granted Pledgee a security interest in its shares of certain of the Borrowers
pursuant to that certain Stock Pledge Agreement dated as of August 31, 2000 (the
"Pledge Agreement").

                  B. Borrowers have notified Pledgee of the occurrence of
certain Events of Default existing under the Loan and Security Agreement.

                  C. Borrowers desire to enter into an Amendment to the Loan and
Security Agreement dated the date hereof (the "Amendment") pursuant to which
Pledgee and Lenders will waive certain specified Events of Default and will
amend certain financial covenants and other terms under the Loan and Security
Agreement.

                  D. Pledgor is financially interested in Borrowers.

                  E. Pledgor desires that Pledgee enter into the Amendment.

                  F. Pledgee is willing to enter into the Amendment only upon
the condition that Pledgor execute and deliver this Reaffirmation in favor of
Pledgee.

                  NOW, THEREFORE, in consideration of the foregoing, Pledgor
hereby agrees as follows:

                  1 The preambles to this Reaffirmation are hereby incorporated
herein by this reference thereto.

                  2 Pledgor does hereby expressly ratify, confirm and affirm
without condition, all liens and security interests granted to the Pledgee
pursuant to the Pledge

<PAGE>

Agreement, and such liens and security interests shall continue to secure the
obligations and liabilities of Borrowers to Pledgee and Lenders, including but
not limited to, all loans made by Lenders to Borrowers under the Loan and
Security Agreement and all amendments thereto.

                  3. This Reaffirmation constitutes the valid and legally
binding obligation of Pledgor, fully enforceable against Pledgor, in accordance
with its terms.

                  4. This Reaffirmation shall inure to the benefit of Pledgee
and Lenders, their successors and assigns, and be binding upon Pledgor, and its
successors and assigns.

                  IN WITNESS WHEREOF, the Pledgor has executed this
Reaffirmation on the date above set forth.

                                                    WESTELL TECHNOLOGIES, INC.

                                                    By: ________________________
                                                    Its: _______________________EMPLOYMENT AGREEMENT

         WHEREAS, Goran Capital Inc. ("Goran"),  and Symons International Group,
Inc.  ("SIG"),   jointly  and  severally,   and  their  respective  subsidiaries
(collectively,  the  "Company")  consider it essential to its best interests and
the best interests of its  stockholders  to foster the continuous  employment of
its key management  personnel and,  accordingly,  the Company  desires to employ
Douglas H. Symons ("You",  "Your"or "Executive"),  upon the terms and conditions
hereinafter set forth; and

         WHEREAS,  the  Executive  desires to  continue  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
President and Chief Operating Officer of Symons International Group, Inc. and as
Senior  Executive  Vice President and Chief  Operating  Officer of Goran Capital
Inc.,  (the  "Positions"),  effective as of March 8, 1999 and  continuing  until
March 31,  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 six (6) 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  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.

<PAGE>

         1.2 Terms of Employment. During the Term of this Agreement as set forth
in Section 1.1, You agree to be a full-time  employee of the Company  serving in
the positions 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 the positions and 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 positions, which shall grant Executive
authority,  responsibility,  title and standing comparable to the positions in a
stock insurance holding company of similar standing.  Your primary place of work
will be at the company's U.S.  headquarters in Indianapolis,  Indiana, but it is
understood and agreed that your duties may require travel.  In the event you are
relocated to another Company location, the Company agrees to pay for the cost of
your move (including  temporary  lodging expenses) and to facilitate the sale of
your  Indianapolis  home so that you will be enabled  to  purchase a new home in
your new location  that is  comparable  in price to your  existing home and have
your family join you at such new location within two (2) months of your transfer
or such other period as is reasonable  considering market and location.  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 Boards of  Directors of the
Company shall, following the effective date of this Agreement, elect and appoint
Executive to the positions.

2.       Compensation, Benefits and Prerequisites

         2.1 Salary.  Company shall pay Executive a salary,  in equal  bi-weekly
installments,  equal to an annualized salary rate of Three Hundred  Seventy-Five
Thousand  Dollars  ($375,000).  Executive's  salary as payable  pursuant to this
Agreement  may be  increased  from  time  to  time as  mutually  agreed  upon by
Executive  and  the  Company.   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 will pay Executive a lump-sum
bonus  (subject to normal  withholdings)  within  thirty (30) business days from
receipt by Company of its consolidated,  annual audited financial  statements in
an amount which shall be  determined  in  accordance  with the  following  Bonus
Table. All amounts used for calculation  purposes in this section shall be based
on the  audited,  consolidated  financial  statements  of SIG (or any  successor
thereto), with such financial statements having been prepared in accordance with
applicable  Generally Accepted  Accounting  Principles,  applied on a consistent
basis with that of prior years.

    BONUS TABLE

    If Audited Net                                       % of Annual Salary
    Income (as a % of                                    Payable to Executive
    Budgeted Net Income) Is                              As Bonus
    -----------------------                              -----------------------

    Less Than 75%                                                 -0-
    75% or more, but less than 85%                                25%
    85% or more, but less than 90%                                30%
    90% or more, but less than 95%                                35%
    95% or more, but less than 96%                                50%
    96% or more, but less than 97%                                60%
    97% or more, but less than 98%                                70%
    98% or more, but less than 99%                                80%
    99% or more, but less than 100%                               90%
   100% or more of budget                                         100%

         2.3  Employee  Benefits.  Executive  shall be  entitled  to receive all
benefits and perquisites which are provided to other executives of Company under
the  applicable  Company  plans  and  policies,   and  to  future  benefits  and
perquisites 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 Prerequisites.  During the term of this Agreement,
                  Company shall provide Executive with:

         (a)      Not less than five (5) weeks paid vacation during each
                  calendar year.

         (b)      A vehicle commensurate with Executive's position.

         (c)      A golfing  membership at various Social Clubs, or in the event
                  of  Executive's  relocation,  other  comparable  country club,
                  including  payment by the Company of all  charges  incurred by
                  Executive at such club.

<PAGE>

(d)               A resident membership at the Social Club (e.g. Skyline Club or
                  Columbia  Club)  of  Executives  choice,  or in the  event  of
                  Executive's   relocation,   other   comparable   social  club,
                  including  payment by the Company of all  charges  incurred by
                  Executive at such club.

         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.

<PAGE>

3.       Termination of Executive's Employment

         3.1 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 (as such term is defined herein), he
shall  receive,  as severance pay, one (1) year's current salary paid in regular
bi-weekly payments (the "Salary  Continuation") plus a lump sum payment equal to
one (1) years  current  salary  (the "Lump Sum  Payment").  The Lump Sum Payment
shall  be paid  to  Executive  within  five  (5)  business  days  of  Executives
termination for any reason other than for cause.  Executive and his family shall
continue  to be covered by  Company's  health and dental  plan for the period of
time  Executive  shall  receive  Salary  Continuation  pursuant to the preceding
sentence upon the same terms and conditions under which Executive and his family
were covered at the time of his  termination.  Further,  if  Executive  shall be
terminated  without  Cause,  receipt  of  Salary  Continuation  and the Lump Sum
Payment  described  above is  conditioned  upon  execution by Executive  and the
Company of that mutual Waiver and Release attached hereto as Exhibit A. Further,
Executive  shall  receive  Salary  Continuation  and the  Lump  Sum  Payment  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. If Executive
shall become  entitled to receive Salary  Continuation  pursuant to this Section
3.1; (a) all stock options of SIG and Goran  (including any subsidiary of either
SIG or Goran) existing as of the date hereof previously  granted Executive shall
vest in full and become  exercisable as of the date of Executive's  Termination;
and (b)  Executive  shall  have 180 days  from  the date of  Termination  of his
employment  with  Company in which to exercise  any  unexercised  stock  options
previously granted to Executive.

         3.2      Cause.  For purposes of this Agreement including, but not
                  limited to, this Section 3, "Cause" shall mean:

                  (a)      the Executive being convicted in the United States of
                           American,  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;

<PAGE>

               (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; or

               (d)  the Executive breaching any provision of this Agreement.

          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, then
Executive  shall  receive  the Lump Sum  Payment  plus his  current  salary  (in
bi-weekly  payments) as severance  pay until the  expiration  of fifty-two  (52)
weeks from Executive's Date of Termination.

          The receipt by Executive  of payments  pursuant to this Section 3.3 is
specifically conditioned,  and no payments pursuant to this Section 3.3 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 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 this  Section  3.3 shall cease at the time  Executive
shall fail to comply with the non-competition and confidentiality  provisions of
Article 4 herein.

         "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
either 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 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 as follows:

               (a)  Until  the  date  of   termination  or  expiration  of  this
                    Agreement  for any reason  (the "Date of  Termination")  You
                    agree 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.

               (b)  If Your  employment  is  terminated  by You, or by reason of
                    Your Disability,  by the Company for cause, or pursuant to a
                    notice of  non-renewal  as outlined in Section 1.1, then for
                    two (2) years after the Date of  Termination,  You agree not
                    to become, directly or indirectly, 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  to  participate  in  the  management,  operation,
                    control or profits  of,  any firm or person  which  directly
                    competes with a business of the Company which at the Date of
                    Termination  produced  any  class of  products  or  business
                    accounting  for five percent  (5%) or more of the  Company's
                    gross sales,  revenues or earnings before taxes at which the
                    Date of  Termination  derived  five  percent (5%) or more of
                    such firm's or person's  gross  sales,  revenues or earnings
                    before taxes.  It is expressly  agreed and  understood  that
                    this Section 4.1(b) shall not apply to a public  accounting,
                    consulting or law firm.

<PAGE>

               (c)  You  acknowledge  and agree that  damages  for breach of the
                    covenant  not  to  compete  in  this  Section  4.1  will  be
                    difficult  to  determine  and  will  not  afford  a full and
                    adequate remedy,  and therefore agree that the Company shall
                    be entitled to an immediate injunction and restraining order
                    (without the  necessity of a bond) to prevent such breach or
                    threatened  or  continued  breach by You and any  persons or
                    entities  acting  for or with You,  without  having to prove
                    damages,  and to all  costs  and  expenses  (if a  court  or
                    arbitrator  determines  that the  Executive has breached the
                    covenant  not to  compete  in this  Section  4.1,  including
                    reasonable  attorneys'  fees and costs,  in  addition to any
                    other  remedies  to which the Company may be entitled at law
                    or in equity.  You and the Company agree that the provisions
                    of this covenant not to compete are reasonable and necessary
                    for the  operation  of the  Company  and  its  subsidiaries.
                    However,  should any court or arbitrator  determine that any
                    provision of this  covenant not to compete is  unreasonable,
                    either in period of time,  geographical  area, or otherwise,
                    the parties agree that this  covenant not to compete  should
                    be interpreted and enforced to the maximum extent which such
                    court or arbitrator deems reasonable.

         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.  Notwithstanding
the  foregoing  sentence,  paragraph  12 of that  certain  Employment  Agreement
between  Douglas H. Symons and GGS Management  Holdings,  Inc. dated October 30,
1996 shall remain in full force and effect.

         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:

         Secretary
         Symons International Group, Inc.
         4720 Kingsway Drive
         Indianapolis, Indiana  46205

         If to Executive, to:

         Douglas H. Symons

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 Due  Authority.  The  Company  represents  and  warrants  that the
execution of this Agreement and the  performance by the Company of the terms and
conditions of this  Agreement  have been duly and validly  authorized by Company
and, further,  that no other authorization or consent is required to be obtained
by Company for its performance hereunder.

         5.6 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.

          5.7 Governing Law. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of conflict of law principles.

         5.8 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.

         5.9  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.

         5.10 Survival.  Company's  obligations  under Sections 3.1, 3.3 and 3.5
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.

         5.11  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
this 8th day of March, 1999.

SYMONS INTERNATIONAL GROUP, INC.    GORAN CAPITAL INC.

By:__________________________________       By:_______________________________
Title:________________________________      Title:____________________________

                                                     DOUGLAS H. SYMONS
                                                    ("Executive")

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