Document:

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                                                                    EXHIBIT 10.8

                             CONSULTING AGREEMENT

     This CONSULTING AGREEMENT ("Agreement") is made and entered into as of this
                                 ---------
13/th/ day of June, 2000, by and between Southwestern Life Holdings, Inc., a
Delaware corporation (the "Company"), and John Sharpe (the "Consultant").
                           -------                          ----------

     WHEREAS, the Company desires to engage Consultant and Consultant has agreed
to be engaged by the Company to consult with the Company as provided in this
Agreement.

     NOW, THEREFORE, for and in consideration of the foregoing recital and the
mutual covenants and agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
each of the parties hereto, the parties hereto hereby agree as follows:

     1.   Duties.  Subject to the terms and conditions of this Agreement,
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Consultant shall assist the Company and its wholly-owned subsidiaries,
Southwestern Life Insurance Company and Security Life and Trust Co.
(collectively, the "Subsidiaries") in reviewing and analyzing business
opportunities (the "Services") but shall not be responsible for management of
                    --------
the Company or the Subsidiaries. Consultant shall provide the Services to the
Company and the Subsidiaries for a maximum of 80 hours per calendar month during
the term of this Agreement. Consultant may provide Services at any location
chosen by the Consultant, which location need not be the location of the
Company's offices.

     2.   Compensation.
          ------------

          (a)  Consulting Fee.  During the term of this Agreement, the Company
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     shall pay Consultant a monthly consulting fee equal to $9,000 per month,
     payable in advance on the first business day of each calendar month.

          (b)  Office; Secretary; Parking.  During the term of this Agreement,
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     the Company shall furnish the Consultant with office space, secretarial
     support and parking at the Company's headquarters, each at no cost to the
     Consultant and shall reimburse the Consultant for the monthly (i) rent,
     (ii) telephone expenses, (iii) insurance expenses and (iv) electrical
     expenses incurred by the Consultant in connection with the operation of his
     offices located at 2305 Cedar Springs, Suite 410, Dallas, Texas provided,
     however, that such reimbursement shall not exceed $3,500 per month and
     shall not continue beyond January 31, 2003.

          (c)  Administrative Assistant.  During the term of this Agreement, the
               ------------------------
     Company shall directly engage (either as an employee or consultant of the
     Company) an assistant chosen by the Consultant to provide administrative
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     assistance to the Consultant. The assistant initially will be Jannette
     Stanley, who will work for 60-130 hours per month at an hourly rate of $30
     per hour, payable by the Company directly to such assistant. The Company
     shall also provide the assistant with parking and office facilities at the
     Company's headquarters at no cost to the assistant. The Company
     acknowledges that a portion of the assistant's work hours may be devoted to
     assisting the Consultant in matters that are not related to the Services.

          (d)  Stock Options. Upon the execution and delivery of this Agreement,
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     the Company shall grant to the Consultant options to purchase 170,000
     shares of common stock, par value $0.01 per share, of the Company, at an
     exercise price of $12.50 per share (subject to adjustment as provided in
     the instrument(s) granting such options). Such options shall be in full
     satisfaction of the Company's indication in its Plan of Reorganization that
     the Company would issue options for up to 225,000 shares to the Consultant.
     The options shall be assignable and transferrable by Consultant to any
     person. The options shall be fully vested upon issuance and shall be
     exercisable at any time during the period beginning on the date hereof and
     ending on the tenth anniversary of the date hereof.

          (e)  Discretionary Stock Options. During the term of this Agreement,
               ---------------------------
     the Company may, in its sole discretion, grant to the Consultant (or to his
     designees) additional options to purchase shares of common stock, par value
     $0.01 per share, of the Company, at an exercise price and on such other
     terms as may be determined in connection with any such grant.

          (f)  Reimbursement of Expenses. During the term of this Agreement, the
               -------------------------
     Company shall reimburse Consultant for reasonable travel and other expenses
     incurred by Consultant in performing his obligations under this Agreement.

     3.   Term and Termination.  The term of this Agreement shall be the one-
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year period commencing on the date of this Agreement and ending on the one-year
anniversary of such date; provided, that this Agreement shall automatically
                          --------
renew for an additional one-year term on such one-year anniversary date and on
each such subsequent annual anniversary date unless either the Company or
Consultant delivers written notice to the other party not later than 30 days
prior to the date of the next applicable anniversary date to the effect that the
notifying party wishes to terminate the automatic annual renewal of this
Agreement.

     The Company may terminate this Agreement by written notice thereof the
Consultant prior to the expiration of any one-year term, but shall immediately
thereupon pay to the Consultant the remaining portion of the consulting fees
that would have been payable to the Consultant during the remainder of such one-
year term if this Agreement had not been so terminated. Consultant may terminate
this

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Agreement at any time by written notice thereof to the Company and from and
after the effective date of such termination, the consulting fees and the
reimbursement obligations under Section 2(b) and (c) shall cease except for any
accrued and unpaid amounts existing at the termination date.

     4.   Independent Contractor Status.  The parties hereby acknowledge and
          -----------------------------
covenant that (i) Consultant is an independent contractor and will act
exclusively as an independent contractor and not as an employee of the Company
in performing the duties assigned hereunder, and (ii) the parties do not intend,
and will not hold out that there exists, any partnership, joint venture,
undertaking for a profit or other form of business venture or any employment
relationship among the parties other than that of an independent contractor
relationship.

     During the term of this Agreement, Consultant may perform consulting
services for, be employed by, invest in or otherwise participate in connection
with other business entities and individuals (including competitors of the
Company) provided that Consultant shall not solicit any employees or insurance
agents of the Company for any other company during the term of this Agreement
and for one year after its termination.

     Consultant shall file all tax returns and reports required to be filed by
him on the basis that Consultant is an independent contractor, rather than an
employee, as defined in Treasury Regulation (S)31.3121(d)-1(c)(2), and
Consultant shall indemnify the Company for the amount of any employment taxes
paid by the Company as the result of Consultant not withholding employment taxes
(excluding any penalties, interest or similar assessments) from the payments
under this Agreement.

     5.   Indemnity. The Company shall provide to the Consultant in his capacity
          ---------
as an officer, director and agent (as applicable) of the Company (pursuant to
this Agreement and/or the Company's Bylaws and Certificate of Incorporation) or
of any Subsidiaries, indemnification to the fullest extent permitted by
applicable law (including advancing defense costs and other expenses). The
Company shall also purchase and keep in force for the benefit of all officers
and directors of the Company (including the Consultant) directors and officers
insurance coverage of not less than $__________________ in face amount. The
Company shall also indemnify and defend Consultant and save Consultant harmless
against any and all losses, costs, damages, expenses, judgments and liabilities
(including without limitation reasonable attorney's and professional fees)
directly or indirectly resulting from, arising out of or relating to one or more
claims, lawsuits, causes of action or other legal actions and proceedings
against or involving (including without limitation as a witness) Consultant (or
an employee of Consultant), including but not limited to any state or federal
environmental claims even if groundless, false or fraudulent, so long as the
claim is alleged or determined, directly or indirectly, to arise out of, result
from, relate to or be based upon, in whole or in part, the performance by
Consultant of its duties under this Agreement, except and only to the extent
that a loss is determined

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to be from intentional misconduct or gross negligence of Consultant. The
indemnity set forth in this Agreement shall be in addition to, and not in
limitation of, any rights the Consultant may have under law, the Company's
Articles of Incorporation, the Company's Bylaws or any other agreement or
understanding that entitles the Consultant (in any capacity) to indemnification
and shall survive any termination of this Agreement or the Consultant's
consulting arrangement with the Company. THE COMPANY ACKNOWLEDGES THAT THE
FOREGOING INDEMNITY REQUIRES THE COMPANY TO INDEMNIFY THE CONSULTANT FOR HIS OWN
NEGLIGENCE.

     6.   Miscellaneous.
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          (a)  Validity.  The invalidity or unenforceability of any provision of
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     this Agreement shall not affect the validity or enforceability of any other
     provisions of this Agreement, which shall remain in full force and effect.

          (b)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
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     IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, REGARDLESS OF THE LAWS
     THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE PRINCIPLES OF CONFLICT OF LAWS
     THEREOF.

          (c)  Descriptive Headings.  The descriptive headings herein are
               --------------------
     inserted for convenience of reference only and are not intended to be part
     of or to affect the meaning or interpretation of this Agreement.

          (d)  Counterparts.  This Agreement may be executed in several
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     counterparts, each of which shall be deemed to be an original, but all of
     which shall constitute one and the same agreement.

          (e)  Amendments.  This Agreement may not be modified, amended, altered
               ----------
     or supplemented except upon the execution and delivery of a written
     agreement executed by each of the parties hereto.

          (f)  Assignability.  This Agreement shall not be assignable by any
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     party hereto without the prior written consent of the other party hereto
     and any purported assignment in contravention thereof shall be null and
     void and of no force and effect; provided, that any successor (by operation
                                      --------
     of law) to the Company's rights hereunder shall be obligated hereunder to
     the same extent as the Company (including without limitation under Section
     5).

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.

                                South western Life Holdings, Inc.

                                By: /s/ Steve R. Johnson
                                   -------------------------------------------
                                Name: Steve R. Johnson
                                     -----------------------------------------
                                Title: President and Chief Operating Officer
                                      ----------------------------------------

                                CONSULTANT:

                                /s/ John Sharpe
                                ----------------------------------------------
                                John Sharpe

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                                                                    EXHIBIT 10.9

                            STOCK OPTION AGREEMENT

     This OPTION AGREEMENT (this "Agreement") is made and entered into on this
13th day of June, 2000, by and between Southwestern Life Holdings, Inc., a
Delaware corporation (the "Company"), and John T. Sharpe (the "Optionholder");

     WHEREAS, for and in consideration of the Optionholder's services to the
Company, the Company hereby grants to the Optionholder an option to purchase
shares of Common Stock, par value $0.01 per share (each share of such class
being a share of "Common Stock"), all as set forth in this Agreement.

     NOW, THEREFORE, for and in consideration of the foregoing recital and the
mutual covenants and agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
each of the parties hereto, the parties hereto hereby agree as follows:

     1.   Grant of Option.  The Company hereby grants to the Optionholder an
option (the "Option") to purchase up to 170,000 shares of Common Stock of the
Company ("Option Shares"), at the Option Price set forth herein, and in all
respects subject to the terms and conditions of this Agreement.

     2.   Option Price.  The Option Price is $12.50 for each Option Share.

     3.   Exercise of Option.  The Option shall be exercisable in accordance
with the provisions of this Option Agreement, as follows:

      (i)      Vesting and Right to Exercise.  The Option is fully vested and
immediately  exercisable as of the date hereof.

     (ii)      Method of Exercise.  The Option shall be exercisable in whole or
in part by written notice to the Company which shall:

          (a) state the election to exercise the Option, the number of Option
Shares with respect to which it is then being exercised, the person in whose
name the stock certificate or certificates for such Option Shares is to be
issued, his/her address and Social Security Number (or if more than one, the
names, addresses and Social Security Numbers of such persons); and

          (b) be signed by the person or persons entitled to exercise the Option
and, if the Option is being exercised by any person or persons other than the
Optionholder, be accompanied by proof, reasonably satisfactory to counsel for
the Company, of the right of such person or persons to exercise the Option.

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    (iii)      Consideration.  Payment of the Option Price of any Option
Shares with  respect to which the Option is being exercised shall be made (at
the Optionholder's discretion, subject to the provisions of this section) by:
(a) cash (including a check acceptable to the Company, bank draft or money
order) or by tendering, by either actual delivery of shares or by attestation,
shares of the Company's Common Stock having a total fair market value as of the
day of exercise equal to the full Option Price, or any combination thereof, as
determined by the Board of Directors, or (b) at the Board of Directors
discretion, irrevocably authorizing a third party to sell shares of the
Company's Common Stock (or a sufficient portion of the shares) acquired upon
exercise of the Option and remit to the Company a sufficient portion of the sale
proceeds to pay the entire exercise price and any tax withholding resulting from
such exercise, or (c) any other form of payment proposed by the Optionholder
that is acceptable to the Company in its sole discretion. The right of
Optionholder to pay for any Option Shares other than by cash in full shall be
subject to the Board of Directors determination that to do so does not violate
in any respect any provision of the Securities Exchange Act of 1934 or any rules
and regulations adopted pursuant thereto.

          (iv) Fractional Shares.  An Option may not be exercised for a fraction
of an Option Share.  In the event of a "cashless exercise" as permitted in
3(iii)(b) hereof, the Company shall issue shares of Common Stock for the whole
number of shares acquired through such cashless exercise, and cash for the value
of any fractional shares.

          (v) Restrictions on Exercise.  The Option may not be exercised if the
issuance of the Option Shares upon such exercise would constitute a violation of
any applicable federal or state securities or other law or valid regulation.  As
a condition to exercise of the Option, the Company may require the person
exercising the Option to make any representation and warranty to the Company as
may be required by any applicable law or regulation.

     4.   Term of Option.  Prior to its expiration, the Option may be exercised
only in accordance with the terms of this Agreement. The Option shall survive
the termination of any employment or consulting arrangement between the Company
and the Optionholder.  The unexercised portion (if any) of the Option shall
terminate on the tenth anniversary of the date hereof.

     5.   Adjustment Upon Changes in Capitalization.  In the event that the
shares of Common Stock of the Company are changed into or exchanged for a
different number or kind of shares or other securities of the Company or of
another corporation by reason of any reorganization, merger, consolidation,
recapitalization, reclassification, stock split-up or reverse stock split,
combination of shares or dividends payable in capital stock, appropriate
adjustment shall be made by the Board of Directors of the Company (the "Board")
in the number and kind of shares as to which the Options, or portion thereof
then unexercised, shall be exercisable, so that the proportionate interest of
the Optionholder shall be maintained as before the occurrence of such event.

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     6.   Withholding. In connection with each exercise of the Option or any
portion thereof, the Optionholder will make appropriate arrangements with the
Company for such tax withholding as may be required of the Company under
applicable federal, state or local law on account of such exercise.

     7.   Transferability; Parties Bound. Without the prior written consent of
the Board of Directors of the Company, the Option shall not be assignable or
transferable by Optionholder, other than by will or the laws of descent and
distribution, and may be exercised during the life of Optionholder only by
Optionholder or his duly appointed guardian or legal representative. Any
attempted assignment, transfer, pledge, hypothecation, or other disposition of
the Option contrary to the provisions hereof, or the levy of any execution,
attachment, or similar process upon the Option shall be null and void and
without effect The terms of the Option shall be binding upon the executors,
administrators, heirs, successors and permitted assigns of the Optionholder.

     8.   Notices.  Each notice or other communication relating to this
Agreement shall be in writing, and shall be mailed to or delivered to the party
for whom it is intended at that address as may from time to time be designated
by it in a notice mailed or delivered to the other party.  Unless and until some
other address be so designated, all notices or communications by the
Optionholder to the Company shall be mailed or delivered to 717 N. Harwood, 24th
Floor, Dallas, Texas 75201, Attn: President and all notice or communications by
the Company to the Optionholder may be given to the Optionholder personally or
may be mailed to him/her at 2305 Cedar Springs, Suite 410, Dallas, Texas 75201.

     9.   Rights as Stockholder.  Optionholder will have no rights as a
stockholder with respect to any Option Shares covered by the Option until the
issuance of a certificate or certificates to him/her for such Option Shares.
Except as otherwise provided in Section 5 hereof, no adjustment shall be made
for dividends or other rights for which the record date is prior to the issuance
of such certificate or certificates.

     10.  Law Governing.  This Agreement is intended to be performed in the
State of Texas and shall be construed and enforced in accordance with and
governed by the laws of Texas, without giving effect to principles of conflict
of laws.

     11.  Invalidity of Provision.  The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of this Agreement, including that provision, in any
other jurisdiction.  If any provision of this Agreement shall be adjudged
unreasonable in any judicial or administrative proceeding, then the court or
administrative body shall have the power to reform such provision and, in its
changed form, such provision shall then be enforceable and shall be enforced.

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<PAGE>

     12.  Multiple Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, and all of which taken
together shall constitute but one and the same instrument.  In making proof of
this Agreement, it shall not be necessary to produce or account for more than
one counterpart executed by the party sought to be charged with performance
hereunder.

     13.  Headings and Pronouns.  The subject headings of the sections contained
herein are inserted for convenience only and shall not be considered in
interpreting any term or provision hereof.  All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, neuter, singular or
plural as the identity of the entities or persons referred to any require.

     14.  RISK/TAX CONSEQUENCES.  OPTIONHOLDER ACKNOWLEDGES THAT HE IS AWARE
THAT EXERCISE OF THE OPTION WILL HAVE INCOME TAX CONSEQUENCES TO OPTIONHOLDER.
OPTIONHOLDER FURTHER ACKNOWLEDGES THAT HE HAS HAD AN OPPORTUNITY TO CONSULT WITH
TAX, ACCOUNTING AND LEGAL ADVISORS OF HIS OWN CHOOSING PRIOR TO OPTIONHOLDER'S
EXECUTION OF THIS AGREEMENT.  OPTIONHOLDER ASSUMES ALL RISKS AND FINANCIAL AND
TAX CONSEQUENCES TO OPTIONHOLDER OF THE EXERCISE OF THE OPTION.

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<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Option Agreement on the
date and year first above written.

                              COMPANY:

                              SOUTHWESTERN LIFE HOLDINGS, INC.
                              a Delaware corporation

                              By: /s/ Steve R. Johnson
                                 ---------------------------------------
                                    Steve R. Johnson, President

                              OPTIONHOLDER:

                                  /s/ John T. Sharpe
                              ------------------------------------------
                              John T. Sharpe

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