INFINITY PROPERTY & CASUALTY CORP
GLEN N. GODWIN EMPLOYMENT AGREEMENT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>godwin.htm
<DESCRIPTION>GLEN N. GODWIN EMPLOYMENT AGREEMENT
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     <!-- Client Name:    Infinity Property and Casualty Corporation                       -->
     <!-- Project Name:   Form 8-K                                                         -->
     <!-- Firm Name:      kmk                                                              -->
     <TITLE>Godwin Employment Agreement</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EMPLOYMENT AGREEMENT </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
EMPLOYMENT AGREEMENT (the &#147;Agreement&#148;) is made and entered into this
1<SUP>st</SUP> day of January, 2006, between Infinity Insurance Company, an Indiana
corporation (the &#147;Company&#148;) and <B><U>Glen N. Godwin</U></B><U>
</U>&#147;Executive&#148;). </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          It is the desire of the Company to continue to retain the services of the
          Executive as the Western Regional President or in any other capacity as
          determined by the Chief Executive Officer of Infinity Property and Casualty
          Corporation (the &#147;Chief Executive Officer&#148;) and as described in this
          Agreement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Executive desires to continue to provide his services to the Company on the
          terms set forth in this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing, and of the respective covenants and
agreements set forth below, the parties hereto agree as follows: </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I. <BR>SERVICES AND TERM </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;
<U>Term</U>. The Company hereby employs the Executive and the Executive accepts employment
with the Company for a period commencing on the date hereof (the &#147;Effective
Date&#148;) and expiring December 31, 2007 (the &#147;Term&#148;). However, the Company
hereby retains the option to extend the Term of this Agreement for a period of one year
from the expiration of the Term. If the Company exercises its option to extend this
Agreement, the Agreement shall expire December 31, 2008. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;
<U>Services</U>.&nbsp;&nbsp; During the Term the Executive will serve as the Company&#146;s Western
Regional President and will be primarily responsible for overseeing the implementation of
the Company&#146;s business strategy in such region or to serve in any other capacity with
the Company, as is reasonably determined, from time to time, by the Company&#146;s Chief
Executive Officer. The Executive shall devote his full business time and effort to the
performance of his duties hereunder and will render his services at one of the
Company&#146;s offices (&#147;Work Location&#148;), except that the Executive agrees to
travel from time to time to the extent required for the performance of his duties. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II.<BR>COMPENSATION PACKAGE </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.1&nbsp;&nbsp;&nbsp;&nbsp;
<U>Cash Compensation.</U> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Base Salary</U>. During the Term, the Company will pay the Executive an
          annual base salary of at least $<U> 203,200.00 </U> for each twelve-month period
          of the Term. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Executive&#146;s base salary shall be payable in accordance with the normal payroll
procedures of the Company and shall be reviewed annually by the Chief Executive Officer
who, in his discretion, may adjust the base salary upward (but not downward) based on his
assessment of the Executive&#146;s performance of his assigned duties and the overall
performance of the region over which the Executive presides. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Bonus Opportunity</U>. The Company shall offer each year an incentive bonus
          compensation plan. Such plan will include an annual bonus target amount equal to
          at least 50% of the Executive&#146;s annual base salary and shall contain such
          additional terms as determined by the Chief Executive Officer. The amount of any
          bonus payable to Executive in any year shall be based upon performance targets
          established in advance under the bonus plan and Executive&#146;s achievement of
          such performance criteria. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Withholding and Deferrals</U>. All base salary and bonus payable under this
          Section 2.1 shall be reduced by (i) any income tax or other legally required
          withholding by the Company, (ii) any elective deferrals of such amounts as
          contributions to qualified and non-qualified retirement plans or deferred
          compensation plans of the Company, if any, and (iii) contributions payable by
          Executive with respect to his participation in Company welfare benefit,
          retirement and savings plans or charitable contributions </FONT></P>



<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.2&nbsp;&nbsp;&nbsp;&nbsp;
<U>  Benefits and Fringes and Other Fringe Benefits. </U> </FONT></P>




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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Benefit Plans</U>. &nbsp;&nbsp;During the Term, the Executive shall be eligible to
          participate in such medical, dental, health, retirement, savings, welfare and
          life and disability insurance plans (including supplemental retirement and
          savings plans) generally made available from time to time to senior executives
          of the Company (subject to their terms), and to receive other fringe benefits on
          terms and conditions that are at least as favorable as the fringe benefits
          generally provided to other senior executives of the Company at the time such
          other fringe benefits, if any, are made available to them. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Vacation and Other Paid Leave</U>.&nbsp;&nbsp; During the Term, the Executive shall be
          entitled to paid vacation time and other paid leaves, whether for holidays,
          illnesses or similar purposes, in accordance with the plans, practices, policies
          and programs applicable to other senior executives of the Company. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Business Expenses</U>.&nbsp;&nbsp; The Company will promptly pay or reimburse the
          Executive for all reasonable business-related expenses incurred by him in
          connection with the performance of his duties hereunder upon presentation of
          written documentation, subject, however, to the Company&#146;s reasonable
          policies relating to business-related expenses as then in effect from time to
          time. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Date of Hire</U>.&nbsp;&nbsp; For determination of benefits to which the Executive is
          entitled, including but not limited to those described in Sections 2.2(a) and
          2.2(b), the Executive&#146;s Date of Hire shall be the first date of his
          employment with a subsidiary of either the Company or American Financial Group,
          Inc. </FONT></P>




<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.3&nbsp;&nbsp;&nbsp;&nbsp;
<U>Indemnification</U>. &nbsp;&nbsp;The Company shall indemnify and hold harmless the Executive (and
his successors), to the extent permitted by applicable law and the Company&#146;s
regulations, for all losses, expenses and liabilities actually incurred, suffered or
threatened and arising from Executive&#146;s service as an officer or employee of the
Company. </FONT>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III. <BR>TERMINATION OF SERVICES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
&nbsp;&nbsp;<U>Termination</U>. &nbsp;&nbsp;Executive&#146;s employment with the Company hereunder may be
terminated by the Company or the Executive, as applicable, at any time prior to the end of
the Term for any of the following reasons: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Disability</U>. &nbsp;&nbsp;Upon the failure of the Executive to render services to the
          Company for a continuous period of six (6) months because of the
          Executive&#146;s physical or mental disability or illness
          (&#147;Disability&#148;), the Company may terminate the Executive&#146;s
          employment hereunder, provided such termination does not otherwise violate
          applicable law. If there should be a dispute between the parties as to the
          Executive&#146;s physical or mental disability, such dispute shall be settled by
          the opinion of an impartial reputable physician agreed upon for such purpose by
          the parties or their representatives. The certificate of such physician as to
          the matter in dispute shall be final and binding on the parties. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Cause</U>. &nbsp;&nbsp;The Company may terminate this Agreement and the Executive&#146;s
          employment hereunder for Cause. For purposes of this Agreement,
          &#147;Cause&#148; shall mean: (i) the Executive&#146;s failure or refusal to
          materially perform his duties under this Agreement; (ii) the Executive&#146;s
          failure or refusal to follow material lawful directions of the Chief Executive
          Officer or any other act of material insubordination on the part of Executive;
          (iii) the Executive&#146;s failure to comply after written notice and adequate
          cure periods necessary to alleviate any material unforeseen financial hardship
          of such requirements, with the provisions of any reasonable executive share
          ownership requirements established by the Board of Directors; (iv)&nbsp;the
          engaging by the Executive in misconduct, including but not limited to any type
          of sexual harassment which is materially and demonstrably injurious to the
          Company or any of its divisions, subsidiaries or affiliates, monetarily or
          otherwise; (v) any conviction of, or plea of guilty or <U>nolo</U>
          <U>contendere</U> to, the Executive with respect to a felony (other than a
          traffic violation); or (vi) the commission (or attempted commission) of any act
          of fraud or dishonesty by the Executive which is materially detrimental to the
          business or reputation of the Company or any of its divisions, subsidiaries or
          affiliates. </FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Without Cause</U>. </FONT></P>



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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               (i)&nbsp;&nbsp;The Company may terminate the Executive&#146;s employment hereunder without
               Cause upon thirty (30) days written notice to the Executive. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               (ii)&nbsp;&nbsp;
               The Executive may terminate his employment upon thirty (30) days notice for Good
               Reason, as defined as follows: </FONT></P></TD>
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               <BR>


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               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
  "Good Reason" for termination by the Executive of the Executive's  employment shall
mean the occurrence (without the Executive&#146;s express written consent), of any one of
the following acts by the Company, or failures by the Company to act:
 </FONT></P></TD>
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               <BR>





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               <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(I) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               as a direct result of the Company becoming a subsidiary, or under the control
               (as defined under the rules promulgated by the Securities &amp; Exchange
               Commission), of a company not an affiliate of the Company as of the date hereof,
               there is an adverse alteration or diminution in the nature or status of the
               Executive&#146;s responsibilities or authority; </FONT></P></TD>
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               <BR>

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               <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(II) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Other than temporary reassignment of Executive&#146;s primary areas of
               responsibility and authority to a level substantially inconsistent with that of
               a senior manager of the Company; </FONT></P></TD>
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               </TABLE>
               <BR>

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               <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(III) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=88%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               any material breach by the Company of its obligations under this Agreement. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>


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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Except as provided above,  the  Executive's  continued  employment  shall not constitute
consent to, or a waiver of rights with respect to, any act or failure to act constituting
Good Reason hereunder. The Executive may resign for Good Reason only if such Executive
provides Notice of Termination to the Company within three months of the Executive
becoming aware that the basis for such Good Reason exists. </FONT></p>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;
<U>Payment on Termination with Cause</U>.&nbsp;&nbsp; In the event that Executive&#146;s employment is
terminated by the Company with Cause, Executive shall be entitled to receive the following
payments not later than twenty business days after the date of termination: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          payment of any earned but unpaid salary accrued through and including the date
          of termination; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          payment of accrued, but unused, vacation time; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          reimbursement of any unreimbursed business expenses incurred prior to the date
          of termination. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3
&nbsp;&nbsp;<U>Payment on Termination Without Cause.</U>&nbsp;&nbsp; Subject to the Executive&#146;s continuing
compliance with the covenants contained in Article IV of this Agreement (the
&#147;Covenants&#148;) and the execution by the Executive of a customary binding general
waiver and release of claims (the &#147;Release&#148;), in the event that the
Executive&#146;s employment is terminated by the Company without Cause or by the Executive
for Good Reason, then the Executive, or the Executive&#146;s estate in the event of his
death, shall be entitled to receive the following less any required withholdings: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          payment of any earned, but unpaid salary accrued through and including the date
          of termination; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          payment of (i) any earned but unpaid annual bonus from a previous calendar year
          and (ii) any earned but unpaid amounts that may be paid under any Company long
          term incentive plans to be paid according to the terms of such plans; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          (i) payment of the Executive&#146;s target annual bonus amounts pursuant to
          Section 2.1(b), pro-rated based on the actual number of days elapsed in the year
          in which Executive&#146;s termination takes place; and (ii) an additional
          payment of the target annual bonus amount, such payments to be made in a lump
          sum subject to federal, state and applicable withholding taxes and payments; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          a lump sum payment equal to his current base salary; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          payment of accrued, but unused, vacation time; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          reimbursement of any unreimbursed business expenses, or automobile expenses
          incurred prior to the date of termination; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          for twelve (12) months (the &#147;Post-Termination Period&#148;), the Company
          shall continue to provide, at its sole cost and expense, Executive and his
          eligible dependents with all benefit plans and other fringe benefits as
          described in Section 2.2(a) that were being provided to the Executive
          immediately prior to his termination of employment upon the same terms and
          conditions as provided to other senior executives; following the
          Post-Termination Period, Executive and his eligible dependents shall be eligible
          for COBRA benefits for eighteen (18) months; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          immediate, 100% vesting of all stock options issued to the Executive under the
          Company&#146;s 2002 Stock Option Plan and an allowance that such options may be
          exercised within ninety days of his termination date; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          immediate, 100% vesting of all restricted shares awarded pursuant to the </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Company&#146;s Restricted
Stock Plan; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          immediate conversion to cash of all Performance Units issued under the 2005 Long
          Term Incentive Compensation Plan, without proration, and at a value equal to the
          base case target established under the LTIC Matrix. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;
<U>Payment on Termination Due to Death or Disability</U>.&nbsp;&nbsp; Company shall make the following
payments in the event of Executive&#146;s Death (to his estate) or Disability (as defined
in Section 3.1(a) of this Agreement): the payments set forth in Sections 3.3(a), (b), (c)
(d), (e) and (f). In the event of Death following Disability, amounts remaining to be paid
under this section shall be paid to Executive&#146;s estate. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV. <BR>COVENANTS </FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.1 &nbsp;&nbsp;<u>     Non-Competition</u>.&nbsp;&nbsp;  The  Executive  covenants  and  agrees  that (i) during the Term and (ii) for a period of twelve
(12) months following a termination of his employment by the Company pursuant to Section
3.1 (c) (the &#147;Post-Termination Period&#148;), he shall not directly or indirectly own
an interest in, operate, join, control, advise, consult to, work for, serve as a director
or manager of, have a financial interest, or participate in any corporation, partnership,
proprietorship, firm, association, person, or other entity that engages or is planning to
be engaged in writing, issuing, underwriting, selling, distributing or re-insuring
personal property and casualty insurance products or any other business in which the
Company is engaged during the Term (the &#147;Business&#148;). This Covenant applies to
each state or territory in which the Company is doing business or is making an active
effort to do business during the Term and with respect to the Executive&#146;s covenants
regarding the Post-Termination Period at the time the Executive&#146;s employment with the
Company is terminated. This Covenant does not prohibit the passive ownership of less than
five percent (5%) of the outstanding stock or debt of any public corporation as long as
the Executive is not otherwise in violation of this Covenant. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2    &nbsp;&nbsp;<u>  No  Diversion</u>.&nbsp;&nbsp;  The  Executive  covenants and agrees that (i) during the Term and (ii) the Post-Termination Period,
he shall not divert or attempt to divert or take advantage of or attempt to take advantage
of any actual or potential business opportunities of the Company (e.g., writing, issuing,
underwriting, selling, distributing or re-insuring personal property and casualty
insurance products, investment opportunities, and other similar opportunities) which the
Executive became aware of during his employment with the Company. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3  &nbsp;&nbsp;<u>    Non-Recruitment</u>. &nbsp;&nbsp;  The  Executive   agrees  that  the  Company  has  invested
substantial time and effort in
assembling its present workforce. Accordingly, the Executive covenants and agrees that
during the Term and the Post-Termination Period, he shall not directly or indirectly
entice or solicit (other than pursuant to general, non-targeted public media
advertisements) or seek to induce or influence any of the Company&#146;s Employees to
leave their employment. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 4.4&nbsp;&nbsp;      <u>Non-Disclosure</u>.&nbsp;&nbsp;  Prior to and in connection  with this  Agreement, Executive has learned and will continue to
learn trade secrets and confidential information of Company, including but not limited to
(i) financial information, (ii) business methods and techniques, including but not limited
to sales methods, prospecting methods, methods of presentation, programs and other
materials used or to be used by Company in managing, marketing or furthering it&#146;s
business, (iii) insureds and agent&#146;s names, addresses and contact and other
information, (iv)&nbsp;all other information about Company&#146;s business that is not
known to the public and gives Company an opportunity to obtain an advantage over
competitors (&#147;Confidential Information&#148;). Executive acknowledges that Company
has invested substantial sums in the development of its Confidential Information. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the term of this Agreement, and after the termination of Executive&#146;s employment for
any reason, Executive covenants and agrees that he will not, directly or indirectly,
disclose or communicate to any person or entity or otherwise use any Confidential
Information of Company (&#147;Non-Disclosure Covenant&#148;) for any purpose other than
for the direct benefit of Company. Upon termination of Executive&#146;s employment, he
shall promptly return to Company all documents, records, notebooks, manuals, disks,
software, hardware and other information of Company. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Non-Disclosure Covenant has no temporal,  geographic or territorial  restrictions or limitations and applies no matter
where Executive may be located in the future. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.5 &nbsp;&nbsp;     <u>Termination   for  Cause</u>.&nbsp;&nbsp;   Executive   agrees  that  if  his  employment  is terminated pursuant to Section 3.1
(b), he shall be bound to the covenants set forth in Sections 4.1, 4.2, 4.3 and 4.4 for
the duration of the Post-Termination Period. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.6&nbsp;&nbsp;      <u>Remedies</u>.&nbsp;&nbsp;  The  Executive  acknowledges  that  should he  violate  any of the Covenants, it will be difficult to
determine the resulting damages to the Company and, in addition to any other remedies it
may have, and notwithstanding the provisions of Section 5.4, the Company shall be entitled
to temporary injunctive relief without being required to post a bond and permanent
injunctive relief without the necessity of proving actual damage. The Company may elect to
seek one or more of these remedies at its sole discretion on a case by case basis. Failure
to seek any or all remedies in one case does not restrict the Company from seeking any
remedies in another situation. Such action by the Company shall not constitute a waiver of
any of its rights. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.7  &nbsp;&nbsp;<u>Severability  and  Modification  of  Any  Unenforceable  Covenant</u>.&nbsp;&nbsp;  It is the parties&#146; intent that each of the
Covenants be read and interpreted with every reasonable inference given to its
enforceability. However, without limiting the generality of Section 5.5 herewith, it is
also the parties&#146; intent that if any term, provision or condition of the Covenants is
held to be invalid, void or unenforceable, the remainder of the provisions thereof shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.
Finally, it is also the parties&#146; intent that if it is determined any of the Covenants
are unenforceable because of over breadth, then the covenant shall be modified so as to
make it reasonable and enforceable under the prevailing circumstances. </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.8&nbsp;&nbsp;<u>      Tolling</u>.&nbsp;&nbsp;  In the  event  of the  breach  by  Executive  of any  Covenant  the running of the period of restriction
shall be automatically tolled and suspended for the amount of time that the breach
continues, and shall automatically recommence when the breach is remedied so that the
Company shall receive the benefit of Executive&#146;s compliance with the Covenants. This
paragraph shall not apply to any period for which the Company is awarded and receives
actual monetary damages for breach by the Executive of a Covenant with respect to which
this paragraph applies. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V. <BR>MISCELLANEOUS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;
<U>Successors</U>.&nbsp;&nbsp; This Agreement shall inure to the benefit of the Company and its
successors and assigns, as applicable and to the benefit of Executive&#146;s personal or
legal representatives, executors, administrators or heirs. If the Company shall merge or
consolidate with or into, or transfer substantially all of its assets, including goodwill,
to another corporation or other form of business organization, this Agreement shall be
binding on, and run to the benefit of, the successor of the Company resulting from such
merger, consolidation, or transfer. The Executive shall not assign, pledge, or encumber
his interest in this Agreement, or any part thereof, without the prior written consent of
the Company, and any such attempt to assign, pledge or encumber any interest in this
Agreement shall be null and void and shall have no effect whatsoever. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2
&nbsp;&nbsp;<U>Governing Law</U>.&nbsp;&nbsp; This Agreement is being made and executed in and is intended to be
performed in the State of Ohio and shall be governed, construed, interpreted and enforced
in accordance with the substantive laws of the State of Ohio, without regard to the
conflict of laws principles thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;
<U>Entire Agreement</U>.&nbsp;&nbsp; This Agreement comprises the entire agreement between the parties
hereto relating to the subject matter hereof and as of the Commencement Date, supersedes,
cancels and annuls all previous agreements between the Company (and/or its predecessors)
and the Executive, as the same may have been amended or modified, and any right of the
Executive thereunder other than for compensation accrued thereunder as of the date hereof,
and supersedes, cancels and annuls all other prior written and oral agreements between the
Executive and the Company or any predecessor to the Company. The terms of this Agreement
are intended by the parties to be the final expression of their agreement with respect to
the employment of the Executive by the Company and may not be contradicted by evidence of
any prior or contemporaneous agreement. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
         5.4 &nbsp;&nbsp;     <u>Disputes</u>.</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Any dispute or controversy arising under, out of, in connection with or in
          relation to this Agreement, including any claims for discrimination or other
          similar violation of federal law, shall be finally determined and settled by
          arbitration in Jefferson County, Alabama, in accordance with the rules and
          procedures of the American Arbitration Association, and judgment upon the award
          may be entered in any court having jurisdiction thereof. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          If any arbitration or other proceeding is brought for the enforcement of this
          Agreement, or because of an alleged dispute, breach, default or
          misrepresentation in connection with any of the provisions of this Agreement,
          the prevailing party shall be entitled to recover reasonable attorneys&#146;
          fees and other costs incurred in that action or proceeding, in addition to any
          other relief that may be granted. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5&nbsp;&nbsp;
<U>Severability; Enforceability</U>.&nbsp;&nbsp; If any provision of this Agreement, or the
application thereof to any person, place, or circumstance, shall be held to be invalid,
unenforceable, or void by the final determination of a court of competent jurisdiction in
any jurisdiction and all appeals therefrom shall have failed or the time for such appeals
shall have expired, as to that jurisdiction and subject to this Section 5.5, such clause
or provision shall be deemed eliminated from this Agreement but the remaining provisions
shall nevertheless be given full force and effect. In the event this Agreement or any
portion hereof is more restrictive than permitted by the law of the jurisdiction in which
enforcement is sought, this Agreement or such portion shall be limited in that
jurisdiction only, and shall be enforced in that jurisdiction as so limited to the maximum
extent permitted by the law of that jurisdiction. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6
&nbsp;&nbsp;<U>Counterparts</U>. &nbsp;&nbsp;This Agreement may be executed by facsimile and in several
counterparts, each of which shall be deemed to be an original, but all of which together
will constitute one and the same Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7&nbsp;&nbsp;
<U>Amendments; Waivers</U>.&nbsp;&nbsp; This Agreement may not be modified, amended, or terminated
except by an instrument in writing, approved by the Board and signed by the Executive and
the Company. By an instrument in writing similarly executed, the Executive or the Company
may, with the approval of the Board, waive compliance by the other party or parties with
any provision of this Agreement that such other party was or is obligated to comply with
or perform; <I>provided, however</I>, that such waiver shall not operate as a waiver of,
or estoppel with respect to, any other or subsequent failure. No failure to exercise and
no delay in exercising any right, remedy or power hereunder shall preclude any other or
further exercise of any other right, remedy or power provided herein or by law or in
equity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8&nbsp;&nbsp;
<U>No Inconsistent Actions</U>.&nbsp;&nbsp; The parties hereto shall not voluntarily undertake any
action inconsistent with, or voluntarily undertake or fail to undertake any action or
course of action to avoid or evade, the provisions or essential intent of this Agreement.
Furthermore, it is the intent of the parties hereto to act in a fair and reasonable manner
with respect to the interpretation and application of the provisions of this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first
above written. </FONT></P>



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               <TR VALIGN=TOP>
               <TD ALIGN=LEFT WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
INFINITY INSURANCE COMPANY<BR><BR><BR>

By:<u>&nbsp;&nbsp;/s/ Samuel J. Simon&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;
</u><BR>
Name:&nbsp;&nbsp;Samuel J. Simon<BR>
Title:&nbsp;&nbsp;Executive Vice President and Secretary
 </FONT></TD>
               <TD ALIGN=LEFT WIDTH=1%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=49%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
EXECUTIVE<BR><BR><BR>

<u> &nbsp;&nbsp;/s/ Glen N. Godwin&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;&nbsp;&nbsp;</u>
<BR>Glen N. Godwin<BR>
 </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>






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