SPLIT DOLLAR INSURANCE AGREEMENT
THIS AGREEMENT made effective this 8th day of November, 1991, between KMG-BERNUTH, INC.,
(hereinafter called the Employer), and DAVID L. HATCHER, an employee of Employer, (hereinafter called the
WHEREAS, the Employee has been employed by the Employer and the Employer desires to encourage the
Employee to remain in its service by the establishment of a Split Dollar life insurance plan, and
WHEREAS, the Employee agrees to participate in such plan as hereinafter provided.
NOW, THEREFORE, it is agreed that:
1. PURCHASE OF POLICY/POLICY OWNERSHIP
The Employee shall apply to The Prudential Insurance Company of America (Prudential) for a Life Insurance
Policy in the face amount of $1,000,000 on the life of the Employee (with a $700,000 Decreasing Term Rider),
which policy shall be owned by the Employee or his transferee (hereinafter called the Transferee), and is
described on the attached Schedule A. The Employee reserves all rights of ownership in the policy except those
specifically granted to the Employer in this Agreement.
In the event that the Employee has transferred or shall transfer all of his interest in the policy which is the subject
of this Agreement (other than rights collectively assigned to the Employer pursuant to this Agreement), then all of
the Employee's interest in the policy and in this Agreement shall be vested in the Transferee and the Employee
shall have no further interest in the policy and this Agreement, and any and all rights, duties or obligations of the
Employee shall thereafter be exercisable by the Transferee.
2. PAYMENT OF PREMIUMS
The Employer shall pay from its funds and remit to Prudential each premium due in accordance with the mode of
premium payment as provided in the policy on or before the due date.
3. COLLATERAL ASSIGNMENT
The Employee shall assign the policy to the Employer as the Employer's interest may appear to secure the return
to the Employer of payments made under Section 2. The interest of the