Document:

exhibit10cd.htm

    

      EXHIBIT
10(cd)

      

      

      

      

      

      

      

      

      

      

      

      

      

      NATIONAL
WESTERN LIFE INSURANCE COMPANY

      NON-QUALIFIED
DEFINED BENEFIT PLAN

      

      

      

      

      

      

      

      As
Amended and Restated Effective as of

      January
1, 2009

      

      

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      NATIONAL
WESTERN LIFE INSURANCE COMPANY

      NON-QUALIFIED
DEFINED BENEFIT PLAN

      

      Table of
Contents

      

      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                ARTICLE
      I – PURPOSE, DEFINITIONS AND CONSTRUCTION

              	 
      	
                1

              
	
                1.1     Purpose
      of the Plan

              	 
      	
                1

              
	
                1.2     Definitions

              	 
      	
                1

              
	
                1.3     Construction

              	 
      	
                4

              
	 
      	 
      	 
      
	
                ARTICLE
      II - ELIGIBILITY

              	 
      	
                5

              
	
                2.1     Eligibility
      Requirements

              	 
      	
                5

              
	
                2.2     Loss
      of Eligible Employee Status

              	 
      	
                5

              
	 
      	 
      	 
      
	
                ARTICLE
      III – FUNDING

              	 
      	
                6

              
	
                3.1     Funding

              	 
      	
                6

              
	 
      	 
      	 
      
	
                ARTICLE
      IV – BENEFITS UNDER THE PLAN

              	 
      	
                7

              
	
                4.1     Normal
      Retirement Benefit

              	 
      	
                7

              
	
                4.2     Late
      Retirement Benefit

              	 
      	
                8

              
	
                4.3     Early
      Retirement Benefit

              	 
      	
                9

              
	
                4.4     Disability
      Retirement Benefit

              	 
      	
                10

              
	
                4.5     Deferred
      Vested Pension Benefit

              	 
      	
                11

              
	
                4.6     Pre-Retirement
      Death Benefit

              	 
      	
                12

              
	 
      	 
      	 
      
	
                ARTICLE
      V – DETERMINATION OF PAYMENT OF ACCOUNT

              	 
      	
                13

              
	
                5.1     Time
      of Payment

              	 
      	
                13

              
	
                5.2     Form
      of Payment

              	 
      	
                13

              
	
                5.3     Payment
      to the Participant’s Beneficiary

              	 
      	
                15

              
	
                5.4     Payments
      to an Alternate Payee

              	 
      	
                15

              
	 
      	 
      	 
      
	
                ARTICLE
      VI – MISCELLANEOUS

              	 
      	
                17

              
	
                6.1     Administration
      of the Plan

              	 
      	
                17

              
	
                6.2     Benefit
      Claims

              	 
      	
                18

              
	
                6.3     Amendment
      of the Plan

              	 
      	
                19

              
	
                6.4     Termination
      of the Plan

              	 
      	
                19

              
	
                6.5     Notices
      to Participants

              	 
      	
                19

              
	
                6.6     Non-Alienation

              	 
      	
                19

              
	
                6.7     Severability

              	 
      	
                19

              
	
                6.8     Governing
      Law

              	 
      	
                19

              
	
                6.9     Taxes

              	 
      	
                19

              
	
                6.10    Waiver

              	 
      	
                20

              
	
                6.11    Compliance
      With Code Section 409A

              	 
      	
                20

              

      

      

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

      ARTICLE
I

       

      PURPOSE, DEFINITIONS AND
CONSTRUCTION

      

      1.1           Purpose of the
Plan

       

      This Plan
was established by the Employer effective as of the Original Effective Date to
provide an additional benefit for certain select management employees, who are
defined below, to augment the retirement benefit which is otherwise provided to
such employees under the Qualified Plan (as defined below).  This Plan
is not intended to, and does not, qualify under sections 401(a) and 501(a) of
the Code (as defined below), and is designed and intended to be a plan described
in section 201(2) of ERISA (as defined below).

      

      This Plan
is subject to section 409A of the Code and is intended to provide for post-2004
benefit accruals in lieu of continued benefit accruals under the Grandfathered
Nonqualified Plan.  However, this Plan is a separate plan from the
Grandfathered Nonqualified Plan, and nothing herein shall be construed to
constitute a material modification of the Grandfathered Nonqualified Plan or to
otherwise cause the Grandfathered Nonqualified Plan to be subject to section
409A of the Code.  Benefit accruals and service crediting under the
Grandfathered Nonqualified Plan were frozen effective as of December 31,
2004.  Benefit accruals under the Qualified Plan were frozen effective
as of December 31, 2007.

      

      This Plan
is intended to comply with the requirements of Code section 409A and,
notwithstanding anything herein to the contrary, shall be administered,
operated, and interpreted in compliance with such requirements.  The
Plan is amended and restated as set forth herein effective as of the Effective
Date to make certain clarifying changes to comply with the final regulations
under Code section 409A.  For periods prior to the Effective Date,
each Participant’s benefit shall be determined in accordance with the Plan as in
effect at such time subject to any modifications necessary to satisfy a good
faith interpretation of the requirements of Code section 409A.

      

      1.2           Definitions

       

      The
following terms, when found in the Plan, shall have the meanings set forth
below:

      

      (a)           Accrued
Benefit:  The benefit determined under Article IV hereof which
has accrued at any time under the provisions of the Plan.

       

      (b)           Actuarial
Equivalent:  The equivalent in value of amounts expected to be
received under the Plan under different forms of payment, determined based upon
an interest assumption of eight and one-half percent (8.5%) and a mortality
assumption based on the 1984 Unisex Pension (UP84) Mortality Table.

       

      (c)           Annual
Compensation:  For a Plan Year means the sum of the
Participant’s “monthly compensation” (as defined in Section 1.2(f)) for each month of the Plan Year.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

       

      (d)           Beneficiary:  The
natural person or natural persons designated (or deemed designated) by a
Participant under Section 5.3 to receive any
benefits payable hereunder after the death of the Participant.

       

      (e)           Code:  The
Internal Revenue Code of 1986, as it may be amended from time to time, including
any successor.

       

      (f)           Compensation:  Twelve
(12) times the average of the Participant’s monthly compensation over the sixty
(60)-consecutive calendar months (or the period of employment, if less)
immediately prior to his Separation from Service.  “Monthly
compensation” shall be the total cash remuneration paid by the Employer during
each month of the Plan Year, as reported on Form W-2 or its subsequent
equivalent.  Notwithstanding the foregoing, “monthly compensation” (i)
shall include director’s fees; amounts deferred under Code sections 125,
132(f)(4), or 401(k); and nonqualified elective deferrals; (ii) for periods on
and after December 5, 2003, shall exclude reimbursements or other expense
allowances, moving expenses, welfare benefits, imputed value of insurance, stock
option income, commissions, bonuses, and any other extraordinary remuneration;
and (iii) for periods prior to January 1, 2000, shall exclude “NWAMI
compensation”.  Compensation hereunder shall not be subject to any
limitations applicable to tax-qualified plans, such as pursuant to Code sections
401(a)(17) or 415.

       

      (g)           Disability or
Disabled:  The inability of a Participant to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to
last for a continuous period of not less than twelve (12) months; provided that
a Participant will be considered Disabled for purposes of the Plan if and only
if he is determined to be totally disabled by the Social Security
Administration.  A Participant’s Disability shall be considered to
have ended at such time as a determination is made by the Social Security
Administration that no further disability benefits shall be payable to the
Participant under the Social Security Act.

       

      (h)           Early Retirement
Age:  The date on which the Participant attains age fifty-five
(55)

       

      (i)           
Early Retirement
Date:  The first day of the month which is prior to a
Participant’s Normal Retirement Date, but follows his attainment of Early
Retirement Age, completion of fifteen (15) years of Service, and Separation from
Service.

       

      (j)           
Effective
Date:  January 1, 2009

       

      (k)           Eligible
Employee:  An employee of the Employer who is listed on
Schedule 1.2(k), as such Schedule may be amended
from time to time by written action of the President of the
Employer.  However, no person shall be selected as or remain an
Eligible Employee except a member of the select group of management or highly
compensated employees of the Employer, as such term is defined under section 201
of ERISA. 

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      (l)           
Employer:  National
Western Life Insurance Company, a corporation organized and existing under the
laws of the State of Texas, and any successor or successors.  For
purposes of Section 1.2(v), the term “Employer”
includes all persons with whom such Employer would be considered a single
employer under Code sections 414(b) and/or 414(c), determined by using the 80%
ownership threshold specified in Code sections 1563(a)(1), (2), and (3) and in
Treasury regulation section 1.414(c)-2, rather than the default 50% ownership
threshold specified in Treasury regulation 1.409A-1(h)(3).

       

      (m)          ERISA:  the
Employee Retirement Income Security Act of 1974, as it may be amended from time
to time, including any successor.

       

      (n)           Grandfathered Nonqualified
Plan:  the Grandfathered National Western Life Insurance
Company Non-Qualified Defined Benefit Plan, originally adopted effective as of
January 1, 1991 and as amended from time to time.

       

      (o)           Normal Retirement
Age:  The date on which a Participant attains age sixty-five
(65).

       

      (p)           Normal Retirement
Date:  The first day of the month coincident with or next
following a Participant’s Normal Retirement Age.

       

      (q)           Original Effective
Date:  January 1, 2005.

       

      (r)           
Participant:  An
Eligible Employee who has met the requirements of Section 2.1 hereof, and whose
participation has not been terminated.

       

      (s)           
Plan:  The
National Western Life Insurance Company Non-Qualified Defined Benefit Plan, as
set forth herein, and as it may be amended from time to time.

       

      (t)           
Plan
Year:  The twelve month period beginning on January 1 and
ending on December 31 each year.

       

      (u)           Qualified
Plan:  The National Western Life Insurance Company Pension
Plan, as it may be amended from time-to-time.

       

      (v)           Separates from Service or
Separation from Service:  A Participant’s “separation from
service” with the Employer within the meaning of Code section
409A(a)(2)(A)(i).  For this purpose, a Participant shall be considered
to have separated from service with the Employer if the facts and circumstances
indicate that the Employer and the Participant reasonably anticipated that no
further services would be performed after the date of separation or that the
level of bona fide services the Participant would perform after such date would
permanently decrease to an amount that is less than fifty percent (50%) of the
average level of bona fide services performed over the immediately preceding
thirty-six (36)-month period.

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

      (w)           Service:  The
period of a Participant’s employment considered in the determination of his
eligibility hereunder and in the calculation of the vested amount of his
benefits.  A Participant’s Service shall be determined in twelve
(12)-month periods, commencing with the twelve (12)-month period that begins on
his date of hire with the Employer, and thereafter based on Plan Years,
including the Plan Year within which falls his date of hire.  During
such twelve (12) month periods, a year of Service will be granted if the
Participant completes at least one thousand (1,000) hours of
Service.  An hour of Service is each hour for which the Participant is
paid by virtue of his employment with the Employer, including hours paid but not
worked, and including hours completed prior to the date he actually becomes a
Participant hereunder.

       

      (x)           
Committee:  The
individuals appointed by the Board of Directors of the Employer, and known as
the Pension Committee, to manage and direct the administration of the
Plan.

       

      1.3           Construction

       

      The  masculine
gender, where appearing in the Plan, shall be deemed to include the feminine
gender, and the singular may indicate the plural, unless the context clearly
indicates the contrary.  The words “hereof”, “herein”, “hereunder” and
other similar compounds of the word “here” shall, unless otherwise specifically
stated, mean and refer to the entire Plan, not to any particular provision or
Section.  Article and Section headings are included for convenience of
reference and are not intended to add to, or subtract from, the terms of the
Plan.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

      ARTICLE
II

       

      ELIGIBILITY

      

      2.1           Eligibility
Requirements

       

      Each
individual who is an Eligible Employee as of the Original Effective Date shall
become a Participant hereunder as of such date.  No individual who was
not an Eligible Employee as of the Original Effective Date shall become a
Participant hereunder.

      

      2.2           Loss of Eligible Employee
Status

       

      In the
event of the demotion or Separation from Service of a participating Eligible
Employee, such that the employee is no longer an Eligible Employee within the
meaning of Section 1.2(k) herein, the employee
shall lose his status as a Participant, and no further benefit accruals for the
employee shall be allowed under the Plan.  If such an employee again
becomes an Eligible Employee, the employee shall not again become a Participant
and shall not accrue any additional benefits under the Plan.

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

      ARTICLE
III

       

      FUNDING

      

      3.1           Funding

       

      The
Employer is under no obligation to earmark or set aside any funds toward the
funding of this Plan.  However, the benefits to be provided to each
Participant hereunder may be paid from the assets, if any, of the National
Western Life Insurance Company Non-Qualified Plans Trust, if any, designed to be
an irrevocable grantor trust under Code section 671.  However, if the
assets of such trust are not available or are insufficient to pay such benefits
or if no such trust is established or funded, then benefits hereunder shall be
paid from the general assets of the Employer.  The rights of each
Participant and any Beneficiary hereunder shall be solely those of an unsecured
general creditor of the Employer.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      ARTICLE
IV

       

      BENEFITS UNDER THE
PLAN

      

      4.1           Normal Retirement
Benefit

       

      The
benefit to be paid pursuant to this Plan to a Participant who Separates from
Service at his Normal Retirement Date shall be equal to (a) less (b) less (c)
less (d), but in no event greater than (e), where:

      

      (a)           equals
the annual single life annuity benefit which would have been payable at the
Participant’s Normal Retirement Date under the terms of the Qualified Plan as of
December 31, 1990, as if that plan had continued without change, and without
regard to limitations applicable under Code sections 401(a)(17) and 415,
and

       

      (b)           equals
the annual single life annuity benefit which is payable (or which would be
payable if elected by the Participant) under the terms of the Qualified Plan at
the Participant’s Normal Retirement Date, and

       

      (c)           equals
the Actuarially Equivalent annual single life annuity which may be provided by
an accumulation of two percent (2%) of the Participant’s Annual Compensation for
each year of Service on and after January 1, 1991, accumulated at an assumed
interest rate of eight and one-half percent (8.5%) to his Normal Retirement
Date, and

       

      (d)           equals
the frozen annual single life annuity benefit which is payable (or which would
be payable if elected by the Participant) at the Participant’s Normal Retirement
Date under the terms of the Grandfathered Nonqualified Plan, but excluding any
benefit accrued under Section 4.8 of such plan, and

       

      (e)           equals
(i) the product of the following amounts determined as of the Participant’s
Normal Retirement Date (A) the Participant’s years of Service (up to a maximum
of thirty (30)) multiplied by (B) 1.66667% multiplied by (C) the excess of the
Participant’s Compensation over the Participant’s annualized “Primary Social
Security Benefit” as defined by the terms of the Qualified Plan as of December
31, 1990, as if such plan had continued without change and without regard to
limitations applicable under Code sections 401(a)(17) and 415, less (ii) the sum
of the benefits described in subsections (b) and (d) above.

       

      The
foregoing benefit shall be payable effective as of the Participant’s Separation
from Service at his Normal Retirement Date, in accordance with Article V hereof
as to the time, form, and duration of payment.  Monthly installments
under Article V shall be calculated by dividing the Participant’s annual benefit
by twelve (12).

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

      4.2           Late Retirement
Benefit

       

      The
benefit to be paid pursuant to this Plan to a Participant who Separates from
Service after his Normal Retirement Date shall be equal to (a) less (b) less (c)
less (d), but in no event greater than (e), with such benefit amount adjusted
for Actuarial Equivalence to reflect commencement after the Participant’s Normal
Retirement Date, where:

      

      (a)           equals
the annual single life annuity benefit which would have been payable at the
Participant’s Normal Retirement Date under the terms of the Qualified Plan as of
December 31, 1990, as if that plan had continued without change, and without
regard to limitations applicable under Code sections 401(a)(17) and 415,
and

       

      (b)           equals
the annual single life annuity benefit which is payable (or which would be
payable if elected by the Participant) under the terms of the Qualified Plan at
the Participant’s Normal Retirement Date, and  

       

      (c)           equals
the Actuarially Equivalent annual single life annuity which may be provided by
an accumulation of two percent (2%) of the Participant’s Annual Compensation for
each year of Service on and after January 1, 1991, accumulated at an assumed
interest rate of eight and one-half percent (8.5%) to his Normal Retirement
Date, and

       

      (d)           equals
the frozen annual single life annuity benefit which is payable (or which would
be payable if elected by the Participant) at the Participant’s Normal Retirement
Date under the terms of the Grandfathered Nonqualified Plan, but excluding any
benefit accrued under Section 4.8 of such plan, and

       

      (e)           equals
(i) the product of the following amounts determined as of the Participant’s
Normal Retirement Date (A) the Participant’s years of Service (up to a maximum
of thirty (30)) multiplied by (B) 1.66667% multiplied by (C) the excess of the
Participant’s Compensation over the Participant’s annualized “Primary Social
Security Benefit” as defined by the terms of the Qualified Plan as of December
31, 1990, as if such plan had continued without change and without regard to
limitations applicable under Code sections 401(a)(17) and 415, less (ii) the sum
of the benefits described in subsections (b) and (d) above.

       

      The
foregoing benefit shall be payable effective as of the Participant’s Separation
from Service, in accordance with Article V hereof as to the time, form, and
duration of payment.  Monthly installments under Article V shall be
calculated by dividing the Participant’s annual benefit by twelve
(12).

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

      4.3           Early Retirement
Benefit

       

      The
benefit to be paid pursuant to this Plan to a Participant who Separates from
Service on or after his Early Retirement Date and before his Normal Retirement
Date shall be equal to (a) less (b) less (c) less (d), but in no event greater
than (e) and shall be adjusted as provided in (f), where:

      

      (a)           equals
the annual single life annuity benefit which would have been payable at the
Participant’s Normal Retirement Date under the terms of the Qualified Plan as of
December 31, 1990, as if that plan had continued without change, and without
regard to limitations applicable under Code sections 401(a)(17) and 415,
multiplied by a fraction, the numerator of which is his years of Service as of
his Early Retirement Date, and the denominator of which is his years of Service
he would have earned had he not Separated from Service prior to his Normal
Retirement Date, and

       

      (b)           equals
the annual single life annuity benefit which is payable (or which would be
payable if elected by the Participant) under the terms of the Qualified Plan at
the Participant’s Normal Retirement Date, and

       

      (c)           equals
the Actuarially Equivalent annual single life annuity commencing at the
Participant’s Normal Retirement Date which may be provided by an accumulation of
two percent (2%) of the Participant’s Annual Compensation for each year of
Service on and after January 1, 1991, accumulated at an assumed interest rate of
eight and one-half percent (8.5%) to his Early Retirement Date, and

       

      (d)           equals
the frozen annual single life annuity benefit which is payable (or which would
be payable if elected by the Participant) at the Participant’s Normal Retirement
Date under the terms of the Grandfathered Nonqualified Plan, but excluding any
benefit accrued under Section 4.8 of such plan, and

       

      (e)           equals
(i) the product of the following amounts determined as of the Participant’s
Normal Retirement Date (A) the Participant’s years of Service (up to a maximum
of thirty (30)) multiplied by (B) 1.66667% multiplied by (C) the excess of the
Participant’s Compensation over the Participant’s annualized “Primary Social
Security Benefit” as defined by the terms of the Qualified Plan as of December
31, 1990, as if such plan had continued without change and without regard to
limitations applicable under Code sections 401(a)(17) and 415, less (ii) the sum
of the benefits described in subsections (b) and (d) above.  Such benefit shall then be
multiplied by a fraction, the numerator of which is his years of Service as of
his Early Retirement Date, and the denominator of which is his years of Service
he would have earned had he not Separated from Service prior to his Normal
Retirement Date.

       

      (f)           Such
benefit shall be reduced to reflect earlier commencement, by one fifteenth
(1/15th) for
each of the first five (5) years and one thirtieth (1/30th) for
each of the next five (5) years by which the Participant’s Early Retirement Date
precedes his Normal Retirement Date, with such reduction interpolated between
whole years of completed months.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

       

      The
foregoing benefit shall be payable effective as of the Participant’s Early
Retirement Date, in accordance with Article V hereof as to the time, form, and
duration of payment.  Monthly installments under Article V shall be
calculated by dividing the Participant’s annual benefit by twelve
(12).

      

      4.4           Disability Retirement
Benefit

       

      If a
Participant who has completed five (5) years of Service Separates from Service
prior to his Normal Retirement Date (or prior to his Early Retirement Date if he
has completed fifteen (15) years of Service upon such separation) due to
Disability, the benefit to be paid pursuant to this Plan shall be equal to (a)
less (b) less (c) less (d), but in no event greater than (e),
where:

      

      (a)           equals
the annual single life annuity benefit which would have been payable at the
Participant’s Normal Retirement Date under the terms of the Qualified Plan as of
December 31, 1990, as if that plan had continued without change, and without
regard to limitations applicable under Code sections 401(a)(17) and 415,
and

       

      (b)           equals
the annual single life annuity benefit which is payable (or which would be
payable if elected by the Participant) under the terms of the Qualified Plan at
the Participant’s Normal Retirement Date, and

       

      (c)           equals
the Actuarially Equivalent annual single life annuity commencing at the
Participant’s Normal Retirement Date which may be provided by an accumulation of
two percent (2%) of the Participant’s Annual Compensation for each year of
Service on and after January 1, 1991, accumulated at an assumed interest rate of
eight and one-half percent (8.5%) to his Separation from Service,
and

       

      (d)           equals
the frozen annual single life annuity benefit which is payable (or which would
be payable if elected by the Participant) at the Participant’s Normal Retirement
Date under the terms of the Grandfathered Nonqualified Plan, but excluding any
benefit accrued under Section 4.8 of such plan, and

       

      (e)           equals
(i) the product of the following amounts determined as of the Participant’s
Normal Retirement Date (A) the Participant’s years of Service (up to a maximum
of thirty (30)) multiplied by (B) 1.66667% multiplied by (C) the excess of the
Participant’s Compensation over the Participant’s annualized “Primary Social
Security Benefit” as defined by the terms of the Qualified Plan as of December
31, 1990, as if such plan had continued without change and without regard to
limitations applicable under Code sections 401(a)(17) and 415, less (ii) the sum
of the benefits described in subsections (b) and (d) above.

       

      The
foregoing benefit shall be payable effective as of the Participant’s Normal
Retirement Date, in accordance with Article V hereof as to the time, form, and
duration of payment.  Monthly installments under Article V shall be
calculated by dividing the Participant’s annual benefit by twelve
(12).

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      4.5           Deferred Vested Pension
Benefit

       

      The
benefit to be paid pursuant to this Plan to a Participant who Separates from
Service at a time when he (or his Beneficiary) is not entitled to a benefit
under Section 4.1, 4.2, 4.3, 4.4, or 4.6 shall be
equal to (a) less (b) less (c) less (d), but in no event greater than (e),
where:

      

      (a)           equals
the annual single life annuity benefit which would have been payable at the
Participant’s Normal Retirement Date under the terms of the Qualified Plan as of
December 31, 1990, as if that plan had continued without change, and without
regard to limitations applicable under Code sections 401(a)(17) and 415,
multiplied by a fraction, the numerator of which is his years of Service as of
his Separation from Service, and the denominator of which is his years of
Service he would have earned had he not Separated from Service prior to his
Normal Retirement Date, and

       

      (b)           equals
the annual single life annuity benefit which is payable (or which would be
payable if elected by the Participant) to or with respect to the Participant
under the terms of the Qualified Plan, and

       

      (c)           equals
the Actuarially Equivalent annual single life annuity commencing at the
Participant’s Normal Retirement Date which may be provided by an accumulation of
two percent (2%) of the Participant’s Annual Compensation for each year of
Service on and after January 1, 1991, accumulated at an assumed interest rate of
eight and one-half percent (8.5%) to his Normal Retirement Date,
and

       

      (d)           equals
the frozen annual single life annuity benefit which is payable (or which would
be payable if elected by the Participant) at the Participant’s Normal Retirement
Date under the terms of the Grandfathered Nonqualified Plan, but excluding any
benefit accrued under Section 4.8 of such plan, and

       

      (e)           equals
(i) the product of the following amounts determined as of the Participant’s
Normal Retirement Date (A) the Participant’s years of Service (up to a maximum
of thirty (30)) multiplied by (B) 1.66667% multiplied by (C) the excess of the
Participant’s Compensation over the Participant’s annualized “Primary Social
Security Benefit” as defined by the terms of the Qualified Plan as of December
31, 1990, as if such plan had continued without change and without regard to
limitations applicable under Code sections 401(a)(17) and 415, less (ii) the sum
of the benefits described in subsections (b) and (d) above.  Such net benefit shall be
multiplied by a fraction, the numerator of which is the Participant’s years of
Service as of his Separation from Service, and the denominator of which is his
years of Service he would have earned had he not Separated from Service prior to
his Normal Retirement Date.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

      If the
Participant had completed at least fifteen (15) years of Service upon his
Separation from Service such benefit shall be payable effective as of the date
the Participant attains his Early Retirement Age, but shall be reduced for early
commencement in accordance with Section 4.3(f).  If the Participant had not
completed at least fifteen (15) years of Service upon his Separation from
Service, such benefit shall be payable effective as of the Participant’s Normal
Retirement Date.  In either case, such benefit shall be paid in
accordance with Article V hereof as to time, form, and duration of
payment.  Monthly installments under Article V shall be calculated by
dividing the Participant’s annual benefit by twelve (12).

      

      4.6           Pre-Retirement Death
Benefit

       

      (a)           If
a Participant dies prior to Separating from Service, his Beneficiary shall be
entitled to receive the Actuarial Equivalent of his Accrued Benefit that would
have been payable at his Normal Retirement Date (or at the date of his
Separation from Service if the Participant dies after his Normal Retirement
Date), determined as if the Participant Separated from Service on his date of
death and, if such date is prior to the Participant’s Normal Retirement Date,
survived until his Normal Retirement Date.

       

      (b)           If
the Participant dies following his Separation from Service due to Disability and
prior to the commencement of a disability pension benefit under Section 4.4, his Beneficiary shall be entitled to receive the
Actuarial Equivalent of his Accrued Benefit that would have been payable at his
Normal Retirement Date under Section 4.4.

       

      (c)           If
the Participant dies following his Separation from Service described in Section
4.5, but prior to the commencement of a deferred
vested pension benefit under such Section, his Beneficiary shall be entitled to
receive the Actuarial Equivalent of his Accrued Benefit that would have been
payable at his Early Retirement Date or his Normal Retirement Date, whichever
would have been applicable under Section 4.5.

       

      (d)           The
pre-retirement death benefit payable to the Participant’s Beneficiary shall be
payable effective as of the first day of the month coinciding with or next
following the date of the Participant’s death, in accordance with Article V
hereof as to the time, form, and duration of payment.  Monthly
installments under Article V shall be calculated by dividing the Beneficiary’s
annual benefit by twelve (12).

       

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

      ARTICLE
V

       

      DETERMINATION OF PAYMENT OF
BENEFIT

      

      

      5.1           Time of
Payment

       

      (a)           Payment
to a Participant (or his Beneficiary) shall commence on the date that is ninety
(90) days following the first applicable effective date of payment under Article
IV, with the first payment to include all benefits payable from the effective
date of payment to the date of the first payment.  Neither the
Participant nor his Beneficiary shall have the right to designate the taxable
year of such payment.  Notwithstanding anything herein to the
contrary, a change in the operation of the Qualified Plan or the Grandfathered
Nonqualified Plan (including an election under Section 7.7 of the Qualified Plan
or a change in the time or form of payment under the Qualified Plan or the
Grandfathered Nonqualified Plan) shall not change the time or form of payment
under this Plan.

       

      (b)           Notwithstanding
the foregoing, payment to a Participant shall be delayed to the extent required
by Code section 409A(a)(2)(B)(i).  Accordingly, if a Participant is a
“specified employee” as defined by Code section 409A(a)(2)(B)(i) (determined by
applying the default rules applicable under such Code section except to the
extent such rules are modified by a written resolution that is adopted by the
Board of Directors of the Employer and that applies for purposes of all
applicable nonqualified deferred compensation plans of the Employer and its
affiliates described in the second sentence of Section 1.2(l)), any payments which the Participant is
otherwise entitled to receive under Section 4.1, 4.2, 4.3, 4.4, or 4.5 and this
Section 5.1 during the six (6)-month period
beginning on the date the Participant Separates from Service shall be
accumulated and paid effective as of the date that is six (6) months after the
date the Participant Separates from Service.  This Section 5.1(b) is intended to satisfy the minimum requirements
of Code section 409A(a)(2)(B)(i) and shall not be construed to accelerate or
defer or otherwise apply to distributions to the extent those distributions are
not subject to the requirements of such Code section.

       

      (c)           Notwithstanding
anything herein to the contrary, the payment of benefits hereunder shall not be
accelerated in a manner that would not be permissible under Code section
409A.

       

      5.2           Form of
Payment

       

      (a)           With
respect to benefits payable under Sections 4.1
through 4.5, the Participant shall receive his
vested Accrued Benefit payable in the form of a single life annuity payable in
monthly installments unless the Participant elects an alternative form of
payment pursuant to subsection (c)
below.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      

      (b)           With
respect to benefits payable under Section 4.6, the
Participant’s Beneficiary shall receive the Actuarial Equivalent of the
Beneficiary’s portion of the Participant’s Accrued Benefit in the form of a
single life annuity payable in monthly installments unless the Beneficiary
elects an alternative form of payment pursuant to subsection (c) below.

       

      (c)           A
Participant or Beneficiary may elect an optional form of annuity payment that is
Actuarially Equivalent to and has the same scheduled date for the first annuity
payment as the normal form of payment specified in subsections (a) and (b)
above.  Such election may be made on a written form acceptable to the
Committee at any time that is at least thirty (30) days prior to the date on
which payment would otherwise commence in such normal form.  The
optional forms of annuity payment available under the Plan are  as
follows:

       

      (i)           An
annuity for the life of the Participant (or the life of the Beneficiary in the
case of benefits payable pursuant to Section 4.6)
with one hundred twenty (120) monthly payments guaranteed, to be paid to the
Participant’s Beneficiary (or to the estate of the Beneficiary in the case of
benefits payable pursuant to Section 4.6) in the
event of the Participant's (or Beneficiary’s, if applicable) death prior to
payment of the total number of guaranteed payments.

       

      (ii)           Any
other form of annuity providing substantially equal periodic payments, payable
not less frequently than annually, based upon the life expectancy of the
Participant (or the Beneficiary in the case of benefits payable pursuant to
Section 4.6) or the joint life expectancies of the
Participant and his Beneficiary (or of the Beneficiary and another natural
person designated by the Beneficiary in the case of benefits payable pursuant to
Section 4.6).

       

      The
provisions of this subsection (c) are intended to
comply with the provisions of Treasury regulation section 1.409A-2(b)(2)(ii) and
shall be construed in accordance therewith.  Notwithstanding anything
herein to the contrary, a Participant or Beneficiary may not elect an optional
form of payment under this subsection (c) to the
extent such election would result in any additional tax under Code section
409A.

      

      (d)           Any
benefit payable hereunder may be paid directly by the Employer (or its delegate)
or by any funding vehicle established pursuant to Section 3.1.  At the discretion of the Committee or,
as applicable, the trustee of any trust established pursuant to Section 3.1, payment of such benefit may be facilitated
through purchase of an annuity contract; provided that in no event shall any
action be taken to cause the Plan to be considered funded for purposes of the
Code or Title I of ERISA.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      

      5.3           Payment to a Participant’s
Beneficiary

       

      (a)           A
Participant may designate one or more Beneficiaries to receive any benefits
payable under the Plan after the death of the Participant.  A
Participant may not designate a non-natural person as a
Beneficiary.  A Participant may revoke or change a prior beneficiary
designation at any time by filing a new beneficiary designation with the
Committee.  To be effective, any beneficiary designation or revocation
of a beneficiary designation must be on a form acceptable to the Committee and
must be filed with and received by the Committee prior to the latest applicable
designation date.  The latest applicable designation date is the date
of the participant’s death with respect to benefits payable under Section 4.6 or to benefits payable under an annuity form of
payment with a guaranteed term and is the date benefits commence in the case of
a joint and survivor annuity form of payment.

       

      (b)          Any
designation of a person as a Beneficiary shall be deemed to be contingent upon
the person’s surviving the Participant.  Any designation of a class or
group of Beneficiaries shall be deemed to be a designation of only those members
of the class or group who are living at the time of the Participant’s
death.  A Participant may designate (in the manner provided in
subsection (a), above) one or more persons as a
contingent Beneficiary or Beneficiaries to receive, upon the Participant’s
death, the benefit that the primary Beneficiary would have received had the
primary Beneficiary survived the Participant.  If more than one
primary Beneficiary or, if applicable, more than one contingent Beneficiary is
designated by a Participant, Sections 5.2(b) and (c) shall be applied separately to each Beneficiary
with respect to the portion of the Participant’s Accrued Benefit awarded to the
Beneficiary.

       

      (c)           If
a Participant does not make an effective beneficiary designation prior to the
latest applicable designation date or if no designated Beneficiary survives the
Participant, the Participant’s estate shall be deemed to be his
Beneficiary.

       

      (d)          References
hereunder to a benefit payable to or with respect to a Participant include any
benefit payable to the Participant’s designated Beneficiary or
estate.

       

      5.4           Payments to an Alternate
Payee

       

      (a)          The
Committee may establish a procedure for the Plan to administer qualified
domestic relations orders.  Such procedure shall comply with the
applicable requirements of ERISA sections 206(d)(3) and
514(b)(7).

       

      (b)          The
Committee may approve payment to an alternative payee, pursuant to the terms of
a qualified domestic relations order, as defined under ERISA
sections 206(d)(3) and 514(b)(7); provided that payment to an alternate
payee may not commence prior to the Participant’s “earliest retirement age” as
defined by ERISA section 206(d)(3)(E)(ii).  Any such payment shall not
be prohibited by Section 6.6 or, to the extent
permitted under Code section 409A, Section 5.1(c).

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

      (c)           Any
benefits payable to a Participant’s alternate payee(s) under the Qualified Plan
shall be included as a benefit payable to or with respect to the Participant for
purposes of determining the Qualified Plan offset under Sections 4.1(b), 4.2(b), 4.3(b), 4.4(b), and 4.5(b), (as applicable).

       

      

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      

      ARTICLE
VI

       

      MISCELLANEOUS

      

      6.1           Administration of the
Plan

       

      The Plan
shall be administered by the Committee.  The books and records of the
Plan shall be maintained by the Employer at its expense, and no member of the
Board of Directors of the employer, or any employee of the Employer acting on
its behalf, shall be liable to any person for any action taken or omitted in
connection with the administration of the Plan, unless attributable to his own
fraud or willful misconduct.

      

      (a)           The
Employer shall appoint the members of the Committee and may terminate a
Committee member at any time by providing written notice of such termination to
the member.  Any member of the Committee may resign by delivering his
written resignation to the Employer and to the other members of the
Committee.

       

      (b)           The
Committee shall perform any act which the Plan authorizes.  The
Committee may, by a writing signed by a majority of its members, appoint any
member of the Committee to act on behalf of the Committee.

       

      (c)           The
Committee may designate in writing other persons to carry out its
responsibilities under the Plan, and may remove any person designated to carry
out its responsibilities under the Plan by notice in writing to that
person.  The Committee may employ persons to render advice with regard
to any of its responsibilities.  All usual and reasonable expenses of
the Committee shall be paid by the Employer.  The Employer shall
indemnify and hold harmless each member of the Committee from and against any
and all claims and expenses (including, without limitation, attorney's fees and
related costs), in connection with the performance by such member of his duties
in that capacity, other than any of the foregoing arising in connection with the
willful neglect or willful misconduct of the person so acting.

       

      (d)           The
Committee shall establish rules, not contrary to the provisions of the Plan, for
the administration of the Plan and the transaction of its
business.  The Committee shall have the authority to interpret the
Plan in its sole and absolute discretion, and shall determine all questions
arising in the administration, interpretation and application of the Plan,
including all claims for benefit hereunder.  All determinations of the
Committee shall be conclusive and binding on all concerned.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      

      6.2           Benefit
Claims

       

      The
Committee shall administer the claims procedures set forth in this Section 6.2 in accordance with section 503 of
ERISA.  The Committee shall automatically direct the distribution of
all benefits to which a Participant is entitled hereunder.  In the
event that a Participant believes that he has been denied benefits to which he
is entitled under the provisions of the Plan, the Committee shall, upon the
request of the Participant, provide to the Participant written notice of the
denial which shall set forth:

      

      (a)           the
specific reason or reasons for the denial;

       

      (b)           specific
references to pertinent Plan provisions on which the Committee based its
denial;

       

      (c)           a
description of any additional material or information needed for the Participant
to perfect the claim and an explanation of why the material or information is
needed;

       

      (d)           a
statement that the Participant or his authorized representative may (i) request
a review upon written application to the Committee; (ii) review pertinent Plan
documents; and (iii) submit issues and comments in writing;

       

      (e)           a
statement that any appeal the Participant wishes to make of the adverse
determination must be made in writing to the Committee within sixty (60) days
(one hundred eighty (180) days in the case of a claim relating to Disability
benefits) after receipt of the Committee's notice of denial of benefits and that
failure to appeal the initial determination to the Committee in writing within
such sixty (60)-day period (one hundred eighty (180)-day period in the case of a
claim relating to Disability benefits) will render the Committee's determination
final, binding, and conclusive; and

       

      (f)           
the address to which the Participant must forward any request for
review.

       

      If a
Participant should appeal to the Committee, he, or his duly authorized
representative, may submit, in writing, whatever issues and comments he, or his
duly authorized representative, feels are pertinent.  The Committee
shall re-examine all facts related to the appeal and make a final determination
as to whether the denial of the claim is justified under the
circumstances.  The Committee shall advise the Participant in writing
of its decision on appeal, the specific reasons for the decision, and the
specific Plan provisions on which the decision is based.  The notice
of the decision shall be given within sixty (60) days (forty-five (45) days in
the case of a claim relating to Disability benefits) after the Participant's
written request for review is received, unless special circumstances (such as a
hearing) would make the rendering of a decision within such sixty (60)-day
period (forty-five (45)-day period in the case of a claim relating to Disability
benefits) impracticable.  In such case, notice of an extension shall
be provided to the Participant within the original sixty (60)-day period
(forty-five (45)-day period in the case of a claim relating to Disability
benefits), and notice of a final decision regarding the denial of a claim for
benefits will be provided within one hundred twenty (120) days (ninety (90) days
in the case of a claim relating to Disability benefits) after receipt of the
original request for review.

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      

      6.3           Amendment of the
Plan

       

      The Plan
may be amended, in whole or in part, from time-to-time, by the Board of
Directors of the Employer; provided that no amendment that reduces the Accrued
Benefit of a Participant may be adopted without the consent of such Participant
while he is an employee of the Employer.

      

      6.4           Termination of the
Plan

       

      The Plan
may be terminated, at any time, by action of the Board of Directors, without the
consent of any other party.  The termination of this Plan shall not
result in the granting of any additional rights to any Participant, such as full
vesting of his Account, and Plan benefits shall be payable solely as provided
under Articles IV and V.

      

      6.5           Notices to
Participants

       

      From
time-to-time, the Employer shall provide a Participant with a statement
regarding his Accrued Benefit.  Further, a Participant will be
provided written notice of any amendment of the Plan that affects his rights
herein, and of the termination of the Plan.

      

      6.6           Non-Alienation

       

      Except as
required by ERISA, the right of any Participant or Beneficiary in his Accrued
Benefit hereunder shall not be subject in any manner to attachment or other
legal process for the debts of such Participant or Beneficiary, and any such
benefit shall not be subject to anticipation, alienation, sale, transfer,
assignment or encumbrance.

      

      6.7           Severability

       

      In the
event that any provision of this Plan shall be declared illegal or invalid for
any reason, said illegality or invalidity shall not affect the remaining
provisions of this Plan but shall be fully severable and this Plan shall be
construed and enforced as if said illegal or invalid provision had never been
inserted herein.

      

      6.8           Governing
Law

       

      The validity and effect of this Plan
and the rights and obligations of all persons affected hereby shall be construed
and determined in accordance with the internal laws of the State of Texas except
to the extent superseded by federal law

      

      6.9           Taxes

       

      All
amounts payable hereunder shall be reduced by any and all federal, state and
local taxes imposed upon the Participant which are required to be paid or
withheld by the Employer or any other payor of Plan benefits.

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      

      6.10           Waiver

       

      Neither
the failure nor any delay on the part of the Employer or the Committee to
exercise any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise or waiver of any such right,
power or privilege preclude any other or further exercise thereof, or the
exercise of any other right, power or privilege available to the Employer or the
Committee at law or in equity.

      

      6.11           Compliance With Code Section
409A

       

      (a)           To
the extent any provision of this Plan or any omission from the Plan would
(absent this Section 6.11(a)) cause amounts to be includable in income under
Code section 409A(a)(1), the Plan shall be deemed amended to the extent
necessary to comply with the requirements of Code section 409A; provided, however, that this
Section 6.11(a) shall
not apply and shall not be construed to amend any provision of the Plan to the
extent this Section 6.11(a) or any amendment required thereby would itself
cause any amounts to be includable in income under Code section
409A(a)(1).

       

      (b)           If
any provision of this Plan would cause a Participant to occur any additional tax
under Code section 409A, the parties will in good faith attempt to reform the
provision in a manner that maintains, to the extent possible, the original
intent of the applicable provision without violating the provisions of Code
section 409A.

       

      

      

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, and as conclusive
evidence of the adoption of the foregoing instrument comprising the National
Western Life Insurance Company Non-Qualified Defined Benefit Plan, NATIONAL
WESTERN LIFE INSURANCE COMPANY, as the Employer, has caused its seal to be
affixed hereto and these presents to be duly executed in its name and behalf by
its proper officers thereunto authorized this 18th day of December,
2008.

      

      

      

      
        	
                ATTEST:

              	 
      	
                NATIONAL
      WESTERN LIFE

              
	 
      	 
      	
                INSURANCE
      COMPANY

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                /S/Margaret
      M. Simpson

              	 
      	
                /S/James
      P. Payne

              
	
                Asst.
      Secretary

              	 
      	 
      
	 
      	 
      	
                Name:  James
      P. Payne

              
	 
      	 
      	
                Title:  Senior
      VP-Secretary

              
	 
      	 
      	 
      

      

      

      

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      SCHEDULE
1.2(k)

      

      ELIGIBLE
EMPLOYEES

      

      

      

      

      Charles
D. Milos, Jr.

      

      

      

      

      
        
           

        

        
          22exhibit10ce.htm

    EXHIBIT
10(ce)

     

    

     

    

     

    

     

    

     

    

     

    

    

    NATIONAL
WESTERN LIFE INSURANCE COMPANY

    GRANDFATHERED

    NON-QUALIFIED
DEFERRED COMPENSATION PLAN

    

     

    

     

    

     

    As
Amended and Restated Effective as of

    December
31, 2004

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NATIONAL
WESTERN LIFE INSURANCE COMPANY

    GRANDFATHERED
NON-QUALIFIED DEFERRED COMPENSATION PLAN

    

    Table of
Contents

     

    
      	 
      	 
      	
              Page

            
	 
      	 
      	 
      
	
              ARTICLE
      I – Purpose, Definitions and Construction

            	 
      	
              1

            
	
              1.1     Purpose
      of the Plan

            	 
      	
              1

            
	
              1.2     Definitions

            	 
      	
              1

            
	
              1.3     Construction

            	 
      	
              3

            
	
              1.4     Cessation
      of Benefit Accruals and Vesting Services

            	 
      	
              4

            
	 
      	 
      	
               
      

            
	
              ARTICLE
      II - Eligibility

            	  	
              5

            
	
              2.1     Initial
      Eligibility Requirements

            	  	
              5

            
	
              2.2     Eligible
      Requirements for Subsequent Plan Years

            	  	
              5

            
	
              2.3     Loss
      of Eligible Employee Status

            	  	
              5

            
	
              2.4     Termination
      of Participation in Connection with the American Jobs

            	 
      	
              5

            
	
              Creation
      Act of 2004

            	 
      	 
      
	 
      	 
      	 
      
	
              ARTICLE
      III – Contributions to the Plan

            	 
      	
              6

            
	
              3.1     Participant
      Contributions

            	 
      	
              6

            
	
              3.2     Employer
      Mandatory Matching Contributions

            	 
      	
              6

            
	
              3.3     Employer
      Discretionary Matching Contributions

            	 
      	
              6

            
	
              3.4     Employer
      Mandatory Non-Matching Contributions

            	 
      	
              7

            
	
              3.5     Employer
      Additional Discretionary Contributions

            	 
      	
              7

            
	
              3.6     Establishment
      of Account

            	 
      	
              7

            
	 
      	 
      	 
      
	
              ARTICLE
      IV – Allocation and Investment

            	 
      	
              8

            
	
              4.1     Allocation

            	 
      	
              8

            
	
              4.2     Establishment
      of Trust

            	 
      	
              8

            
	
              4.3     Allocation
      of Investment Earnings

            	 
      	
              8

            
	 
      	 
      	 
      
	
              ARTICLE
      V – Determination of Payment of Account

            	 
      	
              9

            
	
              5.1     Vesting
      of Account

            	 
      	
              9

            
	
              5.2     Determination
      of Account

            	 
      	
              10

            
	
              5.3     Timing
      of Payment

            	 
      	
              10

            
	
              5.4     Form
      of Payment

            	 
      	
              11

            
	
              5.5     Hardship
      Withdrawals

            	 
      	
              11

            
	
              5.6     Early
      Withdrawals

            	 
      	
              12

            

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

     

    
      	 
      	 
      	 
      
	
              ARTICLE
      VI – Miscellaneous

            	 
      	
              13

            
	
              6.1     Administration
      of the Plan

            	 
      	
              13

            
	
              6.2     Amendment
      of the Plan

            	 
      	
              13

            
	
              6.3     Termination
      of the Plan

            	 
      	
              13

            
	
              6.4     Notices
      to Participants

            	 
      	
              13

            
	
              6.5     Non-Alienation

            	 
      	
              13

            

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    ARTICLE
I

     

    PURPOSE, DEFINITIONS AND
CONSTRUCTION

     

    1.1           Purpose of the
Plan

     

    This Plan
is established by the Employer to permit certain select management employees,
who are defined below, to defer the payment of a percentage of their
Compensation, and in addition thereto, to provide for certain Employer
contributions to augment such employees' retirement income.  This Plan
is not intended to, and does not, qualify under sections 401(a) and 501(a) of
the Internal Revenue Code, and is designed to be exempt from the requirements of
the Employee Retirement Income Security Act.

     

    The Plan
is amended and restated as set forth herein effective as of the Freeze Date
solely for the purpose of incorporating prior amendments (all of which were
effective prior to January 1, 2005) and documenting the freezing of all benefits
effective as of the Freeze Date.  Nothing in this amended and restated
Plan is intended to constitute or shall be construed as constituting a material
modification of the Plan.  Because the Plan has not been materially
modified after October 3, 2004 and does not provide for any benefits not earned
and vested as of December 31, 2004, the Plan is intended to be exempt from the
requirements of Code section 409A.

     

    1.2           Definitions

     

    The
following terms, when found in the Plan, shall have the meanings set forth
below:

     

    (a)           Account
Balance:  At any time, the total of all amounts credited under
the terms of the Plan to a Participant, the rights to which are determined under
the Plan.

     

    (b)           Beneficiary:  The
person(s) and/or the trust(s) created for the benefit of a person or persons who
are the natural object of the Participant's bounty, or the Participant's estate,
whichever is designated by the Participant to receive the benefits payable
hereunder upon his death.

     

    (c)           Code:  The
Internal Revenue Code of 1986, as it may be amended from time to time, including
any successor.

     

    (d)           Committee:  The
individuals appointed by the Board of Directors of the Employer, and known as
the Pension Committee, to manage and direct the operation and administration of
the Plan.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

     

    (e)           Compensation:  Compensation
shall be the total cash remuneration paid by the Employer during each Plan Year,
as reported on Form W-2 or its subsequent equivalent.  Notwithstanding
the foregoing, “Compensation” shall include director’s fees; amounts deferred
under Code sections 125, 132(f)(4), or 401(k); and nonqualified elective
deferrals, and “Compensation” shall exclude reimbursements or other expense
allowances, moving expenses, welfare benefits, imputed value of insurance, stock
option income, commissions, bonuses, and any other extraordinary
remuneration.  Compensation hereunder shall not be subject to any
limitations applicable to tax-qualified plans, such as pursuant to Code sections
401(a)(17) or 415.

     

    (f)           
Disability:  A
physical or mental condition of a Participant resulting from bodily injury,
disease or mental disorder which renders him incapable of continuing any gainful
occupation.  The determination of Disability shall be made either as a
result of the Participant qualifying for a pension under the federal Social
Security Act, or based upon such evidence as is determined to be applicable by
the Employer in its sole discretion.

     

    (g)           Eligible
Employee:  A person employed by the Employer in the position of
Senior Vice President or above, or a person who has been designated by the
President of the Employer, by name, position, or in any other manner, as being
in the class of persons who are eligible to participate in the
Plan.  Such latter designation shall be made in writing by the
President of the Employer.  However, no person who is an employee of
the Employer shall be selected as an Eligible Employee except a member of the
select group of management or highly compensated employees of the Employer, as
such term is defined under section 201 of the Employee Retirement Income
Security Act of 1974, and regulations and rulings promulgated thereunder by the
Department of Labor.

     

    (h)           Employer:  National
Western Life Insurance Company, a corporation organized and existing under the
laws of the State of Texas, and any successor or successors.

     

    (i)           
Freeze
Date:  December 31, 2004.

     

    (j)           
Hours of
Service:  An Hour of Service is each hour for which the
Participant is paid by virtue of his employment with the Employer, including
hours paid but not worked, and including hours completed prior to the date he
actually becomes a Participant hereunder.

     

    (k)           Initial Participation
Period:  The time period beginning when the Eligible Employee
first completes an Hour of Service until the first January 1, April 1, July 1 or
October 1 which is coincident with or next follows the earlier of (i) six
(6) months after the date the Employee first completes and Hour of Service for
the Employer, provided the Employee completes five hundred (500) Hours of
Service during such six (6) month period or (ii) the date he completes one (1)
Year of Service.

     

    (l)           
Normal Retirement
Age:  The date on which a Participant attains age sixty-five
(65).

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

     

    (m)          Normal Retirement
Date:  The first day of the month coincident with or next
following a Participant's Normal Retirement Age.

     

    (n)           Original Effective
Date:  April 1, 1995.

     

    (o)           Participant:  An
Eligible Employee who has met the requirements of Section 2.1 hereof, and whose participation has not been
terminated.

     

    (p)           Plan:  The
National Western Life Insurance Company Grandfathered Non-Qualified Deferred
Compensation Plan, as set forth herein, and as it may be amended from time to
time.

     

    (q)           Plan
Quarter:  The three month period beginning on January 1, April
1, July 1 or October 1 and ending on March 31, June 30, September 30 or December
31.

     

    (r)           
Plan
Year:  The twelve month period beginning on January 1 and
ending on December 31 each year.

     

    (s)           Valuation
Date:  The date as of which the Plan is valued and gains or
losses allocated, which shall be March 31, June 30, September 30 and December 31
of each Plan Year.  However, the Committee may use more frequent
Valuation Dates if it so desires.

     

    (t)          
 Years of
Service:  The period of an Eligible Employee's employment
considered in the calculation of the vested amount of his
benefits.  An Eligible Employee's service shall be determined in
twelve (12) month periods, based on Plan Years, including the Plan Year within
which falls his date of hire.  During such twelve (12) month periods,
a Year of Service will be granted if the Eligible Employee completes at least
one thousand (1,000) Hours of Service.

     

    1.3           Construction

     

    The
masculine gender, where appearing in the Plan, shall be deemed to include the
feminine gender, and the singular may indicate the plural, unless the context
clearly indicates the contrary.  The words "hereof', "herein",
"hereunder" and other similar compounds of the word "here" shall, unless
otherwise specifically stated, mean and refer to the entire Plan, not to any
particular provision or Section.  Article and Section headings are
included for convenience of reference and are not intended to add to, or
subtract from, the terms of the Plan.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

     

    1.4           Cessation of Benefit
Accruals and Vesting Service

     

    Notwithstanding
any other provision of the Plan to the contrary, no individual (including
individuals who ceased to be Employees prior to the Freeze Date) shall become a
Participant, be credited with additional Years of Service for vesting purposes,
or accrue any additional benefits under the Plan after the Freeze Date, other
than earnings credited pursuant to Section 4.3.  Therefore, no individual shall be
credited with additional Service after the Freeze Date, and remuneration paid
after the Freeze Date shall not be taken into account under the Plan for
contribution purposes.  The provisions of this Section are intended to
comply with an exemption from the requirements of Code section 409A and shall be
construed in accordance therewith.  The provisions of this paragraph
shall not be considered a “material modification” of the Plan, but shall instead
be considered a cessation of future deferrals in accordance with Treasury
regulation section 1.409A-6(a)(4)(iii).

     

    

     

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    ARTICLE
II

     

    ELIGIBILITY

     

    2.1           Initial Eligibility
Requirements

     

    An
Eligible Employee may elect to become a Participant hereunder on the date the
Eligible Employee first completes an Hour of Service for the
Employer.  An election to become a Participant shall be made no later
than 30 days after the date the Eligible Employee first completes an Hour of
Service for the Employer.

     

    2.2           Eligibility Requirements for
Subsequent Plan Years

     

    An
Eligible Employee who does not become a Participant when first eligible under
the provisions of Section 2.1 may elect to become a
Participant hereunder as of the first day of any subsequent Plan Year by
executing an enrollment form at least 30 days prior to the beginning of such
Plan Year.

     

    2.3           Loss of Eligible Employee
Status

     

    In the
event of the demotion of a participating Eligible Employee, such that the
employee is no longer an Eligible Employee within the meaning of Section 1.2(g) herein, no further contributions by that
employee shall be allowed under the Plan.  The provisions of Article
V, Determination of
Payment of Account, shall continue to govern the employee's
account.

     

    2.4           Termination of Participation
in Connection with the Amercian Jobs Creation Act of 2004

     

    The
Chairman of the Employer as of December 31, 2004 shall cease to participate in
the Plan effective as of such date.  Contributions and other amounts
allocated to the Account of such Participant after December 31, 2004 shall be
forfeited and used to reduce the Employer contributions specified under Sections
3.2, 3.3, and 3.4 hereof and any excess shall then be returned to
the Employer.  The provisions of this Section are intended to comply
with the requirements of Code section 409A and shall be construed in accordance
therewith.  The provisions of this Section shall not be considered a
“material modification” of the Plan, but shall instead be considered a cessation
of future deferrals in accordance with Q&A-18(c) of Internal Revenue Service
Notice 2005-1.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    ARTICLE
III

     

    CONTRIBUTIONS TO THE
PLAN

     

    3.1           Participant
Contributions

     

    Each
Employee who becomes a Participant in accordance with Article II hereof may
elect to make contributions to the Plan on a pre-tax basis in increments of
onequarter percent (1/4% or 0.25%) of his Compensation, from one-quarter percent
(1/4% or 0.25%) to fifty percent (50%).

     

    Each
Participant's pre-tax salary deferral agreement shall be made in writing on such
forms as the Committee shall prescribe, and shall be effective on a Plan Year
basis, or until changed in accordance with subsequent provisions of this Section
3.1.  A Participant's election hereunder
may be completely discontinued at any time, and may be changed on any periodic
basis defined and approved by the Committee, or as of any Valuation Date,
provided that notice of such change is received at least thirty (30) days prior
to such Valuation Date for Compensation to be earned for services rendered
following such date, or within such time frame as is approved by the Cominittee.
If, as of any Valuation Date, or as of the last day of any time period defined
and approved by the Committee in accordance with the provisions of this Section
3.1, a Participant does not submit a new election,
his previous election shall be deemed to continue.

     

    3.2           Employer Mandatory Matching
Contributions

     

    The
Employer shall make an Employer mandatory matching contribution each Plan
Quarter equal to fifty percent (50%) of the Participant's contributions made
under Section 3.1 of this Plan, limited to no more
than two percent (2%) of the Participant's Compensation for the quarter, that
exceeds, on a year to date basis, the applicable limitation under Code section
401(a)(17)(A), as adjusted in accordance with Code section
401(a)(17)(B).

     

    However,
during any Participant's Initial Participation Period, the Employer shall make
an Employer mandatory matching contribution each Plan Quarter equal to fifty
percent (50%) of the Participant's contributions made under Section 3.1 of this Plan, limited to no more than two percent
(2%) of the Participant's Compensation for the quarter.

     

    3.3           Employer Discretionary
Matching Contributions

     

    The Employer may make an additional
matching contribution each Plan Quarter, to be known as an Employer
discretionary matching contribution, equal to fifty percent (50%) of the
Participant's contributions made under Section 3.1
of this Plan, limited to no more than two percent (2%) of the Participant's
Compensation for the quarter.

     

    The
determination as to whether an Employer discretionary matching contribution
shall be made is in the sole discretion of the President of the Employer,
determined on a quarterly basis.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

     

    3.4           Employer Mandatory
Non-Matching Contributions

     

    The
Employer shall make an Employer mandatory non-matching contribution each Plan
Quarter equal to two percent (2%) of the Participant's Compensation for the
quarter that exceeds, on a year to date basis, the applicable limitation under
Code section 401(a)(17)(A), as adjusted in accordance with Code section
401(a)(17)(B).

     

    However,
during any Participant's Initial Participation Period, the Employer shall make
an Employer mandatory non-matching contribution each Plan Quarter equal to two
percent (2%) of the Participant's Compensation for the quarter.

     

    3.5           Employer Additional
Discretionary Contributions

     

    The
Employer may make an additional discretionary contribution each Plan
Quarter.  The determination as to which Participant(s) receives the
contribution, the amount of the contribution and the timing of the contribution
is in the sole discretion of the President of the Employer, determined on a
quarterly basis.

     

    3.6           Establishment of
Account

     

    Each
Participant herein shall have maintained in his name an Account, to which shall
be credited his salary reduction contributions, as well as his allocable share
of Employer contributions made under the terms of this Article.  A
Participant's Account shall reflect his share of such contributions, including
his allocable share of any gains and losses pursuant to Section 4.3 hereof.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    ARTICLE
IV

     

    ALLOCATION AND
INVESTMENT

     

    4.1           Allocation

     

    Contributions
made pursuant to Section 3.1 hereof shall be
allocated to the Account of the Participant from whose Compensation such amounts
were reduced, as soon as practicable following the date of actual salary
reduction.

     

    Any
contribution made pursuant to Section 3.2, 3.3, and 3.4 hereof shall
be allocated to each participant who is in the active employ of the Employer as
of the last day of the Plan Quarter for which such contribution was made, unless
that Participants termination of employment is as a result of his death,
Disability, attainment of Normal Retirement Age, or such other cause as shall be
deemed as acceptable by the Board of Directors of the Employer.

     

    4.2           Establishment of
Trust

     

    The
Employer may establish a trust fund with regard to the Accounts hereunder,
designed to be an irrevocable grantor trust under Code section
671.  However, if the assets of such trust are not available or are
insufficient to pay such benefits or if no such trust is established or funded,
then benefits hereunder shall be paid from the general assets of the
Employer.  The rights of each Participant and any Beneficiary
hereunder shall be solely those of an unsecured general creditor of the
Employer.

     

    4.3           Allocation of Investment
Earnings

     

    Investment
earnings shall be credited as of the last day of each calendar quarter, based on
the actual investment results for such quarter.  The earnings to be
allocated will be allocated to each Participant's Account in the proportion that
the Participant's Account balance at the beginning of the quarter, less any
withdrawals during the quarter, plus one-half (1/2) of any additions made to the
Account during the quarter, bears to the total of all such
Accounts.

     

    If more
than one investment fund is maintained, each Participant shall provide an
election as to the investment of his Accounts.  Each Participant's
investment election shall be made in writing, on such forms as the Committee
shall prescribe, and shall remain effective hereunder until
changed.  A Participant's election hereunder may be changed as of any
Valuation Date, provided that notice of such change is received at least thirty
(30) days prior to such Valuation Date, or within such time frame as is approved
by the Committee.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    ARTICLE
V

     

    DETERMINATION OF PAYMENT OF
ACCOUNT

     

    5.1           Vesting of
Account

     

    The
Participant's Account derived from contributions made under Section 3.1 hereof shall be one hundred percent (100%) vested
and non-forfeitable at all times.

     

    As to a
Participant who is at the level of Executive Vice President or above, his total
Account shall be one hundred percent (100%) vested and non-forfeitable at all
times.

     

    As to all
other Participants, and as to the amount of such a Participant's Account other
than that derived from contributions made pursuant to Section 3.1 hereof, such Account shall become one hundred
percent (100%) vested and non-forfeitable in accordance with the
following:

     

    (a)           Upon
the retirement of a Participant at or after his Normal Retirement
Date.

     

    (b)           Upon
a determination of Disability in accordance with Section 1.2(f) hereof.

     

    (c)           Upon
the death of a Participant.

     

    Prior to the occurrence of any of the
foregoing, such a Participant shall become vested in his Account in accordance
with the following schedule:

     

     

    
      
        
          	
                  Years
      of Service

                	 
      	 
      
	
                  With
      the Employer

                	 
      	
                  Vested
      Percentage

                
	
                  Less
      than 3

                	 
      	
                      0%

                
	
                  3

                	 
      	
                    20%

                
	
                  4

                	 
      	
                    40%

                
	
                  5

                	 
      	
                    60%

                
	
                  6

                	 
      	
                    80%

                
	
                  7
      or more

                	 
      	
                  100%

                

        

      

    

     

    
 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    5.2           Determination of
Account

     

    As of the
date of a Participant's termination of employment with the Employer (including
termination due to any of the events specified under Section 5.1 hereof), his vested Account balance shall be
determined in accordance with the provisions of Section 5.1 above.  Thereafter, as of the last day
of the Plan Quarter coincident with or next following his termination of
employment, the nonvested portion of his Account shall be
forfeited.  Such forfeited amount shall be used to first reduce the
Employer contributions specified under Sections 3.2, 3.3, and 3.4 hereof and any remaining amounts shall be
reallocated among all Participants eligible to receive Employer contributions as
of such date under Section 4.1 hereof, in the
proportion that such Participant’s Compensation for the Plan Quarter bears to
the Compensation for the Plan Quarter of all Participants eligible for such
contribution.

     

    5.3           Timing of
Payment

     

    A
Participant, or in the case of a benefit due to the death of a Participant, his
Beneficiary, shall be entitled to payment of his vested Account Balance
immediately following the termination of his employment status with the
Employer, and payment shall be made according to the following paragraphs of
this Section 5.3.

     

    If the
Participant has chosen payment under the lump sum option of Section 5.4, or if the Participant has chosen the installment
payment option under Section 5.4 and has not yet
begun to receive installment payments, payment shall be made as soon as
administratively feasible following the termination of his employment status,
based on the Participant's Account Balance as of the last day of the calendar
quarter next preceding the date of distribution. However, if the employer
determines that such payment would not be in the best interest of remaining
participants due to fluctuations in the value of the trust no distribution shall
be made until a subsequent value of the trust is determined as of the last day
of the calendar quarter in which the event requiring distribution
occurs.

     

    In the
event of the death of a Participant who has begun to receive annual payments
under the installment payment option, such death occurring before all of the
installments are paid, the Account Balance shall be paid to the Participant's
beneficiary or estate within twelve (12) months of the date of the Participant's
death.

     

    A
Participant who is the Chairman of the Employer may elect to receive payment of
his Vested Account balance on or after his Normal Retirement Date even if such
Participant has not retired from active service with the
Employer.  Payment shall be made in accordance with the foregoing
provisions of this Section.  Once such an election is made by such
Participant, contributions allocable to such Participant (as adjusted for
earnings and losses) after the date the Participant receives a lump sum
distribution or the final installment of an installment distribution (as
applicable), shall be paid to the Participant in a single lump sum as soon as
practicable after the end of the Plan Year to which such contributions
relate.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    5.4           Form of
Payment

     

    A Participant may elect to receive the
Participant’s benefit in the form of a single lump sum
payment.  Alternatively, a Participant may elect to receive the
Participant’s benefit in the form of annual installments.  In either
case, for such election to be effective, such election must be made at least
thirteen (13) months prior to the date the Participant first becomes entitled to
receive the Participant’s benefit hereunder.  If a Participant does
not choose a method of payment, or fails to elect the payment option prior to
the beginning of the thirteen (13)-month period described above, payment shall
be made on an annual installment basis over an installment period of five (5)
years.

     

    Under the
annual installment payment option, the installment payment period shall not
exceed ten (10) years.  Each annual installment payment shall equal
the Participant’s Account Balance divided by the number of annual installment
payments remaining to be paid in the annual installment payment period chosen by
the Participant (or the default installment period, if applicable).

     

    Except as
provided in Section 5.3, a Beneficiary entitled to
payment shall receive his or her benefit in the form of a single lump sum
payment.

     

    5.5           Hardship
Withdrawals

     

    In the
event of a Participant's “unforeseeable emergency,” the Participant may submit a
written request to the Administrative Committee for an early withdrawal from the
Participant's Account Balance (herein called a “Hardship
Withdrawal”).

     

    The
Administrative Committee may, in its sole discretion, grant a Hardship
Withdrawal, if the Administrative Committee determines that the Participant has
an unforeseeable emergency as hereinafter defined.  The amount of the
Hardship Withdrawal shall not exceed an amount reasonably needed for the
unforeseeable emergency and shall not exceed the vested balance of the
Participant's Accounts on the date of such Hardship Withdrawal. An unforeseeable
emergency is defined as a severe financial hardship resulting from a sudden and
unexpected illness or accident of the Participant or of a dependent (as defined
in section 152(a) of the Code), loss of the Participant's property due to
casualty, or other similar extraordinary and unforeseeable circumstances arising
as a result of events beyond the control of the
Participant.  The  circumstances that will constitute an
unforeseeable emergency will depend upon the facts of each case.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

     

    5.6           Early
Withdrawals

     

    Notwithstanding
the aforementioned, the Participant may elect to receive a lump sum distribution
of all or a portion of the Participant's Account Balance by submitting a written
request to the Administrative Committee.  Such distribution, however,
will be subject to a ten percent (10%) early withdrawal penalty. The withdrawal
penalty is ten percent (10%) of the amount of the lump sum distribution and will
reduce such distribution.

     

    The ten
percent (10%) withdrawal penalty will be used by the Employer to offset any
required Employer contribution under this Plan.

     

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    ARTICLE
VI

     

    MISCELLANEOUS

     

    6.1           Administration of the
Plan

     

    The Plan
shall be administered by the Committee.  The books and records of the
Plan shall be maintained by the Employer at its expense, and no member of the
Board of Directors of the Employer, or any employee of the Employer acting on
its behalf, shall be liable to any person for any action taken or omitted in
connection with the administration of the Plan, unless attributable to his own
fraud or willful misconduct.

     

    6.2           Amendment of the
Plan

     

    The Plan
may be amended, in whole or in part, from time-to-time, by the Board of
Directors of the Employer, without the consent of any other party.

     

    6.3           Termination of the
Plan

     

    The Plan
may be terminated, at any time, by action of the Board of Directors, without the
consent of any other party.  The termination of this Plan shall not
result in the granting of any additional rights to any Participant, such as, to
the extent not funded, full vesting of his Account, except as already provided
under the terms of Section 5.1 hereof.

     

    6.4           Notices to
Participants

     

    From
time-to-time, the Employer shall provide a Participant with an accounting of the
value of his Account.  Further, a Participant will be provided written
notice of any amendment of the Plan that affects his rights herein, and of the
termination of the Plan.

     

    6.5           Non-Alienation

     

    To the
extent permitted by law, the right of any Participant or Beneficiary in any
Account balance hereunder shall not be subject in any manner to attachment or
other legal process for the debts of such Participant or Beneficiary, and any
such Account balance shall not be subject to anticipation, alienation, sale,
transfer, assignment or encumbrance.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, and as conclusive evidence of the adoption of the foregoing
instrument comprising the National Western Life Insurance Company Grandfathered
Non-Qualified Deferred Compensation Plan as amended and restated effective as of
the Freeze Date, NATIONAL WESTERN LIFE INSURANCE COMPANY, as the Employer, has
caused its seal to be affixed hereto and these presents to be duly executed in
its name and behalf by its proper officers thereunto authorized this 18th day of
December, 2008.

     

    

     

    
      	
              ATTEST:

            	 
      	
              NATIONAL
      WESTERN LIFE

            
	 
      	 
      	
              INSURANCE
      COMPANY

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              /S/Margaret
      M. Simpson

            	 
      	
              /S/James
      P. Payne

            
	
              Asst.
      Secretary

            	 
      	 
      
	 
      	 
      	
              Name:  James
      P. Payne

            
	 
      	 
      	
              Title:  Senior
      VP-Secretary

            
	 
      	 
      	 
      

    

    

     

    

     

    
      
         

      

      
        14

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