THIS EMPLOYMENT AGREEMENT (this Agreement) dated as of July 29, 2011 between Donegal Mutual Insurance Company, a Pennsylvania mutual fire insurance company, having its principal place of business at 1195 River Road, Marietta, Pennsylvania 17547 (the Employer), and Richard G. Kelley, an individual whose principal office address is 1195 River Road, Marietta, Pennsylvania 17547 (the Executive).
WHEREAS, the Employer desires, by this Agreement, to provide for the continued employment of the Executive by the Employer, and the Executive agrees to the continued employment of the Executive by the Employer, all in accordance with the terms and subject to the conditions set forth in this Agreement; and
WHEREAS, the parties are entering into this Agreement to set forth and confirm their respective rights and obligations with respect to the Executives continued employment by the Employer;
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this Agreement, the Employer and the Executive, intending to be legally bound hereby, mutually agree as follows:
1. Employment and Term.
(a) (i) Effective August 1, 2011 (the Effective Date), the Employer agrees to continue to employ the Executive, and the Executive agrees to continue the Executives employment as, the Senior Vice President, Marietta Marketing, and Corporate Development Officer for Acquisitions and Affiliations, of the Employer (the Position), in accordance with the terms and subject to the conditions this Agreement sets forth.
(ii) The term of this Agreement, as the same may be extended from time to time pursuant to the provisions of this clause (ii) or otherwise, shall commence on the Effective Date and end on the third anniversary of the Effective Date, provided, however, that on the first anniversary of the Effective Date and on each subsequent anniversary of the Effective Date (each, an Extension Date), the Term shall automatically extend for one additional year so that on each such succeeding Extension Date, this Agreement shall have a remaining Term of three years, unless either the Executive or the Board of Directors of the Employer (the Board) gives notice to the other, not less than 90 days in advance of the next succeeding Extension Date, that such automatic extensions shall terminate as of such next succeeding Extension Date, unless the Employer earlier terminates the employment of the Executive for Cause, as defined in this Agreement, or because of the death of the Executive or the Permanent Disability of the Executive, as defined in this Agreement.