Document:

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ADDENDUM TO EMPLOYMENT AGREEMENT

     This Addendum is entered into as of the 1st day of January, 1998 by and
between Goran Capital, Inc. ("Goran"), Symons International Group, Inc. ("SIG"),
Granite Reinsurance Company Ltd. ("Granite Re") and G. Gordon Symons (the
"Chairman") with respect to the following:

     A.   The Chairman is the Chairman of the Board of Directors of Goran and
          SIG and the Chairman of the Board and President of Granite Re;

     B.   Granite Re and the Chairman have heretofore entered into that certain
          Personal Employment Agreement dated December 31, 1991 (as amended from
          time to time, the "Employment Agreement") pursuant to which an annual
          sum of One Hundred Fifty Thousand Dollars ($150,000) is paid by
          Granite Re to the Chairman (the "Annual Sum");

     C.   Granite Re desires to ensure that it continues to receive the benefits
          enuring to it pursuant to the terms of the Employment Agreement;

     D.   Goran desires to ensure that its wholly owned subsidiary, Granite Re,
          continues to receive the benefits enuring to it pursuant to the terms
          of the Employment Agreement; and

     E.   The parties to the Employment Agreement desire to amend such
          Employment Agreement consistent with the terms contained herein
          (including, but not limited to, the provisions of this amendment
          dealing with non-competition) and otherwise ratify and affirm the
          Employment Agreement.

     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Goran, SIG, Granite Re and the
Chairman agree as follows:

     1.   RATIFICATION AND AMENDMENT. The parties to the Employment Agreement
          hereby reaffirm and modify the Employment Agreement and hereby ratify
          all existing terms of the Employment Agreement and also amend the
          provisions of the Employment Agreement to provide that upon the
          occurrence of a Triggering Event (as defined herein), the sum of One
          Million One Hundred Twenty-Five Thousand Dollars ($1,125,000) (the
          "Contract Payment") shall be paid to the Chairman.

     2.   TRIGGERING EVENT. A Triggering Event shall occur upon the happening of
          any of the following events:

          a.   Granite Re shall fail to pay the Granite Re Obligation; or
          b.   There shall occur a "Change of Control" with respect to Goran or
               SIG. For purposes of this Addendum, a "Change of Control" shall
               mean the inability of the Symons family to cause the election of
               a majority of the Board of Directors of Goran or SIG or their
               respective successors. In the event of a Change of Control, Goran
               shall comply with the provisions of Sections 1 and 8 hereof.

     3.   PAYMENTS TO SURVIVING SPOUSE. In the event of the death of the
          Chairman prior to the satisfaction by Granite Re of the Contract
          Payment, the Annual Sum payments and the Contract Payment shall be
          made to the Chairman's spouse if she is then surviving, in accordance
          with the terms of this Addendum.

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     4.   NONCOMPETITION AGREEMENT. As partial consideration of Granite Re
          entering into this Addendum, the Chairman agrees as follows:

          a.   The Chairman, from and after the date of this Addendum, shall not
               compete, in any manner, with Goran or SIG (including the
               Affiliates of Goran or SIG, as such term "Affiliates" is defined
               for purposes of the Securities laws of the United States.)

     5.   MONTHLY INSTALLMENTS. The Annual Sum shall be paid in equal monthly
          installments.

     6.   U.S. DOLLARS. The payment of all amounts hereunder shall be made in
          United State dollars.

     7.   LIABILITY. If a Triggering Event shall occur, Goran and SIG shall
          become jointly and severally liable with Granite Re for all
          obligations of Granite Re pursuant to the Employment Agreement or this
          Addendum. Neither the Employment Agreement nor this Addendum may be
          amended, canceled, terminated or otherwise revised unless same shall
          be in writing signed by the parties to the Employment Agreement.

     8.   COUNTERPARTS. This Addendum may be executed in any number of
          counterparts, each of which shall be an original; but such
          counterparts shall together constitute but one and the same
          instrument.

     9.   FULL FORCE AND EFFECT. Except as otherwise provided herein, the
          Employment Agreement shall remain in full force and effect.

     IN WITNESS WHEREOF, the parties have executed this Addendum as of the day
and year first set forth above.

                                                        "Chairman"

                                         ---------------------------------------
                                         G. Gordon Symons

                                          "Granite Re"
                                         Granite Reinsurance Company Ltd.

                                    By:
                                         ---------------------------------------
                                           Colin James

                                               "Goran"
                                         Goran Capital Inc.

                                    By:
                                         ---------------------------------------
                                         Alan G. Symons, President and Chief
                                         Executive Officer

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                                               "SIG"
                                         Symons International Group, Inc.

                                    By:
                                         ---------------------------------------
                                         Alan G. Symons, Chief Executive Officer

                                       64<PAGE>

     CONSULTING AGREEMENT with an effective date of January 1, 1995

         BETWEEN:GRANITE REINSURANCE COMPANY LTD., a body politic and corporate
                         duly incorporated, having its office at Bishop's Court
                         Hill, P.O. Box 111, St. Michael, Barbados, West Indies.
                   (hereinafter referred to as the "Company")

         AND:GORAN MANAGEMENT LTD., a body politic and corporate duly
                         incorporated, with offices at Jardine House, 33-35 Reid
                         Street, P.O. Box HM 1752, in the City of Hamilton,
                         Bermuda, HM GX;
                    (hereinafter referred to as the "Consultant")

     WHEREAS the Company is actively engaged internationally in the business of
reinsurance and anticipates its premium volume of business for 1995 to be
Fifteen Million Untied States Dollars ($15,000,000) U.S.);

     WHEREAS the Consultant has expertise in the field of reinsurance and is
desirous of entering into this Agreement with respect to providing international
consulting services on demand to the Company to the extent and as requested by
the Company;

     WHEREAS the company wishes to engage the services offered by the Consultant
and the Consultant is willing to enter into an agreement to provide services on
the terms and conditions described herein:

     NOW, THEREFORE, BE IT AGREED AS FOLLOWS:

MEMORANDUM TO AMEND/REPLACE THE FOLLOWING AGREEMENT:

BETWEEN:                           GRANITE REINSURANCE COMPANY LTD.,
                         (Granite Re) a body politic and corporate duly
                         incorporated, having its offices at Bishop's Court
                         Hill, St. Michael, Barbados, West Indies;

AND GORAN MANAGEMENT LTD., (Goran) a body politic and corporate duly
                         incorporated, with offices at Milner House, 18
                         Parliament Street in the City of Hamilton, Bermuda,
                         HM 12;

     AND

BETWEENSMART CONSULTANTS, INC., (Smart) a body politic and corporate duly
                         incorporated according to the laws of the State of
                         Nevada, having its registered office at First
                         Interstate Tower, 3800 Howard Hughes Parkway, Suite
                         1550, in the City of Las Vegas, Nevada, U.S.A. 89109;

AND GRANITE REINSURANCE COMPANY LTD.,
     (Granite Re) a body politic and corporate duly incorporated, having its
                         offices at Bishop's Court Hill, St. Michael, Barbados,
                         West Indies;

     AND

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BETWEENSMART CONSULTANTS, INC., (Smart) a body politic and corporate duly
                         incorporated according to the laws of the State of
                         Nevada, having its registered office at First
                         Interstate Tower, 3800 Howard Hughes Parkway, Suite
                         1550, in the City of Las Vegas, Nevada, U.S.A. 89109;

AND SYMONS INTERNATIONAL GROUP, INC., (SIG) a body politic and corporate duly
                         incorporated according to law having its registered
                         offices at 4720 Kingsway Drive in the City of
                         Indianapolis, State of Indiana, U.S.A., 46205;

WHEREAS the parties to these Agreements are desirous of affective certain
changes to these Agreements all to take effect as of January 1, 1998, these
amendments have been agreed between the parties.

Granite Re/Goran - the provisions of subparagraph 5 of the above Consulting
Agreement to be amended to Two Hundred and Fifty Thousand dollars ($250,000) per
annum payable in equal monthly installments, effective from January 1, 1998.

Smart/Granite Re Agreement is cancelled effective December 31, 1997.

Smart/SIG, Inc. Agreement is cancelled effective December 31, 1997.

Nothing contained herein has any affect on that Employment Agreement between G.
Gordon Symons and Granite Reinsurance Company Ltd.

WHEREOF THE PARTIES HAVE HERETO SIGNED

GRANITE REINSURANCE COMPANY LTD.    GORAN MANAGEMENT LTD.

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SMART CONSULTANTS, INC.SYMONS INTERNATIONAL GROUP, INC.

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G. GORDON SYMONS

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