AMENDMENT TO

EMPLOYMENT AGREEMENT

 

This Amendment, effective December 21, 2004 (the “Amendment”) to the Employment
Agreement among KMG America Corporation, Kanawha Insurance Company and Stanley
D. Johnson, dated December 21, 2004 (the “Employment Agreement”) is entered into
by and among KMG America Corporation (the “Parent”), Kanawha Insurance Company
(the “Company”) and Stanley D. Johnson (the “Executive”). Terms used in this
Amendment that are not otherwise defined shall have the same meaning given to
them in the Employment Agreement.

 

Recitals:

 

WHEREAS, the Parent, the Company and the Executive desire to amend the
Employment Agreement to correctly reflect that the Executive is not entitled to
cash in lieu of any unused vacation time.

 

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

 

1.            Unused Vacation Time. Section 5(d)(i) of the Employment Agreement
is replaced in its entirety with the following new Section 5(d)(i):

 

“(i) Vacation. The Executive shall be entitled to five (5) weeks of paid
vacation per full calendar year. The Executive shall not be entitled to cash in
lieu of any unused vacation time. The Executive shall not be entitled to carry
over any unused vacation time from year to year.”

 

2.            Employment Agreement. All terms and conditions in the Employment
Agreement that do not conflict with this Amendment shall remain in effect and
are enforceable among the parties hereto.

 

3.            Governing Law. The validity, interpretation, construction and
performance of this Amendment shall be governed by the laws of the Commonwealth
of Virginia, without regard to its conflicts of law principles.

 

4.            Counterparts. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

 

5.            Entire Agreement. This Amendment sets forth the entire agreement
of the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto, and any prior agreement
of the parties hereto in respect of the subject matter contained herein.

 

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IN WITNESS WHEREOF, the parties have executed this Amendment on the date and
year indicated below each of their names.

 

 

Attest:

KMG AMERICA CORPORATION

 

 

By:______________________________

By:______________________________

Name:

Title:

Date:

 

Attest:

KANAWHA INSURANCE COMPANY

 

 

By:______________________________

By:______________________________

Name:

Title:

Date:

 

Attest:

STANLEY D. JOHNSON

 

 

By:______________________________

_____________________________

 

 

 

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