Document:

National Western Life Insurance Company Exhibit 10bo

    

      EXHIBIT
        10(bo)

      

      National
        Western Life Insurance Company

      2007
        DOMESTIC MARKETING OFFICER BONUS PROGRAM

      

      The
        Bonus
        Program (“Program”) is designed to reward Domestic Marketing officers for their
        performance in achieving pre-determined sales targets while assisting the
        Company in managing to its profit criteria. The Plan incorporates three
        measurable performance factors: (1) sales, which are defined as net placed
        annualized target premium for Life business and as total placed premium for
        Annuity business, (2) persistency, and (3) expense management. The bonus
        percentages included in this document pertain to Domestic Marketing officers
        at
        the vice president level and higher. The bonus percentages for assistant
        vice
        presidents are determined using one-half
        of the
        percentages shown for vice presidents and above.

      

      Each
        of
        the three performance factors will have an assigned target level for purposes
        of
        the Program. Assuming a “par” performance (i.e. achieving each target level),
        the weighting of the bonus (applied to base salary) is 70% for sales
        performance, 15% for persistency performance, and 15% for expense management
        performance. Actual results compared to the targets can either increase or
        decrease these percentages as explained in each of the following
        sections.

      

      Sales
        Component (70%): 

      

      The
        sales
        component of the Program is further subdivided between Life production and
        Annuity production. For 2007, the Domestic sales goals are:

      

      	Ø  	
              Life
                -- $10,500,000 net placed annualized target premium (14% of MaxWealth
                total premium assumed to be target for purposes of the
                Program)

            

      	Ø  	
              Annuities
                -- $600,000,000 net placed total premium

            

      

      The
        New
        Business Market Summary Report (NWAR60) will be the source of sales results
        for
        purposes of this Program. Based upon these sales goals, the bonus percentage
        corresponding with the Life and Annuity sales production levels achieved
        in 2007
        will be applied to 100% of each Domestic Marketing officer’s base salary in
        accordance with the following grid:

      

      
        	
                Life
                  Placed Target Premium

              	
                Bonus
                  

                %

              	
                Annuity
                  Placed Total Premium

              	
                Bonus
                  

                %

              
	
                $8,000,000

              	
                15.0%

              	
                $350,000,000

              	
                5.0%

              
	
                $8,500,000

              	
                20.0%

              	
                $400,000,000

              	
                10.0%

              
	
                $9,000,000

              	
                25.0%

              	
                $450,000,000

              	
                15.0%

              
	
                $9,500,000

              	
                30.0%

              	
                $500,000,000

              	
                20.0%

              
	
                $10,000,000

              	
                35.0%

              	
                $550,000,000

              	
                25.0%

              
	
                $10,500,000

              	
                40.0%

              	
                $600,000,000

              	
                30.0%

              
	
                $11,500,000

              	
                45.0%

              	
                $700,000,000

              	
                35.0%

              
	
                $12,500,000

              	
                50.0%

              	
                $800,000,000

              	
                40.0%

              
	
                $13,500,000

              	
                55.0%

              	
                $900,000,000

              	
                45.0%

              
	
                Increment
                  for every $1,000,000 thereafter

              	
                 

                5.0%

              	
                Greater
                  than $900,000,000

              	
                 

                45.0%

              

      

      

      
        
           

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Bonus
        percentages associated with life sales are not capped but increase by 5.0%
        with
        every additional $1,000,000 of placed target premium. Conversely, the bonus
        percentage for annuity sales is capped at 45% irrespective of sales production
        above the annuity sales goal.

      

      Assuming
        an officer salary of $100,000 and 2007 production of $11,000,000 of Life
        placed
        target premium and $510,000,000 of Annuity placed total premium, the officer’s
        2007 sales bonus component under the Program would be $60,000 ($100,000 x
        40%
        for Life business plus $100,000 x 20% for Annuity business).

       

       

      Persistency
        Component (15%):

      

      Similar
        to the sales component, the persistency component of the Program is further
        subdivided between Life business and Annuity business. 

      

      The
        36th
        month
        ratio of actual persistency to expected (i.e. pricing) persistency as reported
        in the Duration Score Listing query will serve as the measure for the Life
        persistency component of the Program. For purposes of the persistency
        measurement, the parameters include all writing agents (active and terminated)
        and all life business (universal life and traditional).

      

      Based
        upon these persistency performance factors, the bonus percentage corresponding
        with the Domestic Life persistency levels achieved in 2007 will be applied
        to
        each Domestic Marketing officer’s base salary in accordance with the following
        grid:

      

      

      
        	
                Domestic
                  Business 

                Persistency

              	
                Bonus
                  

                %

              
	
                Less
                  than 96%

              	
                0%

              
	
                96%
                  - 97%

              	
                1.5%

              
	
                97%
                  - 98%

              	
                3.0%

              
	
                98%
                  - 99%

              	
                4.5%

              
	
                99%
                  - 100%

              	
                6.0%

              
	
                100%
                  - 101%

              	
                7.5%

              
	
                101%
                  - 102%

              	
                9.0%

              
	
                102%
                  - 103%

              	
                10.5%

              
	
                103%
                  - 104%

              	
                12.0%

              
	
                104%
                  - 105%

              	
                13.5%

              
	
                105%
                  - 106%

              	
                15.0%

              
	
                Greater
                  than 106%

              	
                15.0%

              

      

       

      
 

      At
        this
        time, the Duration Score Listing query does not support the annuity line
        of
        business. Therefore, for Annuity business the following duration year lapse
        ratios will be used for deriving expected persistency (approximate, based
        upon
        product mix):

      

      	Ø  	
              First
                year annual lapse rate of 1.5%

            

      	Ø  	
              Second
                year annual lapse rate of 3.0%

            

      	Ø  	
              Third
                year annual lapse rate of 4.0%

            

      	Ø  	
              Fourth
                year annual lapse rate of 6.0%

            

      	Ø  	
              Fifth
                year annual lapse rate of 8.0%

            

      	Ø  	
              Sixth
                year annual lapse rate of 10.0%

            

      
        
           

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        target annuity persistency calculations will be done a rolling basis by applying
        a monthly factor, which equates over twelve months to the annual lapse rate,
        to
        each month’s annuity sales from the month of sale and each successive month
        thereafter. Accordingly, the target annuity persistency calculation will
        be a
        weighting of each month’s sales amount and its corresponding duration at the
        time of measurement. Actual persistency will be compared to target persistency
        for purposes of determining the ratio of actual persistency to target
        persistency (i.e. actual 93.55%/target 91.25% = ratio of 102.42%) and the
        table
        shown above will be used for determining the persistency bonus percentage.
        For
        purposes of the Program, the annuity persistency calculation will only be
        applied to business placed beginning in January 2002 and following (i.e.
        inforce
        Annuity business as of 12/31/01 will not be part of the persistency
        calculation).

      

      Assuming
        an officer salary of $100,000 and 2007 persistency ratios of 98.2% for Life
        business and 102.42% for Annuity business, the officer’s 2007 persistency bonus
        component under the Program would be $15,000 ($100,000 x 4.5% for Life business
        plus $100,000 x 10.5% for Annuity business).

      

      Expense
        Component (15%):

      

      The
        expense component of the program is based upon the ratio of actual expenses
        to
        target premium sales. For purposes of this ratio, annuity target premium
        is
        defined as 7.5% of total placed premium. Actual expenses include all cost
        center
        expenses with the exception of bonuses paid, agent health claims, agent reserve
        balance changes, and sales conference expenses. 

      

      Based
        upon the actual ratio achieved, the corresponding bonus percentage based
        upon
        the following chart will be applied to 100% of each Domestic Marketing officer’s
        base salary:

      

      
        	
                Ratio
                  of Expense/

                Target
                  Premium

              	
                Bonus
                  

                %

              
	
                Less
                  than 4.15%

              	
                30.0%

              
	
                4.15
                  % to 4.30%

              	
                27.0%

              
	
                4.30%
                  to 4.45%

              	
                24.0%

              
	
                4.45%
                  to 4.60%

              	
                21.0%

              
	
                4.60%
                  to 4.75%

              	
                18.0%

              
	
                4.75%
                  to 4.90%

              	
                15.0%

              
	
                4.90%
                  to 5.05%

              	
                12.0%

              
	
                5.05%
                  to 5.20%

              	
                9.0%

              
	
                5.20%
                  to 5.35%

              	
                6.0%

              
	
                5.35%
                  to 5.50%

              	
                3.0%

              
	
                More
                  than 5.50%

              	
                0.0%

              

      

      

      Assuming
        actual expenses of $2.4 million, life target premium sales of $11.0 million,
        and
        annuity total placed premium of $510 million, the calculated ratio would
        be
        4.87% ($2.1 million divided by the sum of $11.0 million life target sales
        and
        $38.25 million annuity ($510 million times 7.5%)). The officer’s 2007 expense
        management bonus component under the Program, assuming a $100,000 base salary,
        would be $15,000 ($100,000 x 15%).

      
        
           

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      From
        the
        above examples, the officer with a $100,000 base salary would receive a 2007
        bonus under the program of 90.0% or $90,000 ($60,000 sales plus $15,000
        persistency plus $15,000 expense management) reflecting persistency and expense
        management at “par” and sales below “par”. See “Administration” for further
        guidelines when the bonus percentage exceeds 100%.

      

      

      Administration:

      

      Bonus
        amounts under the program will be calculated and advanced quarterly based
        upon
        actual results. However, bonus advances will be limited to 100% of participant
        base salary even if actual results to-date exceed 100%. In the event that
        actual
        year-to-date results are below minimum Program performance factor levels,
        the
        Company may, at its discretion, suspend
        the
        bonus advance payments until such time as the year-to-date results reach
        the
        minimum Program performance levels. Bonus amounts paid year-to-date will
        not be
        recouped from the participants in the event of suspension of quarterly payments
        except at the end of the Program year if unearned.

      

      If
        at the
        end of the year the aggregate bonus percentage exceeds 100%, the incremental
        %
        above 100% will be applied to the base salaries of all Domestic Marketing
        Officers (weighted for the portion of the calendar year each participant
        was
        employed by the Company) to determine a dollar amount to be put into a “pool”.
        The pool amount will be allocated based upon the recommendation of the Domestic
        Chief Marketing Officer and as approved by the Company President. The
        recommendation of the pool allocation by the Chief Marketing Officer must
        be
        submitted to the Company President by the end of the January 2008. The pool
        amount will be paid out quarterly in the following calendar year (i.e. 2008).
        Participants must be currently employed by the Company in order to receive
        pool
        payments. In other words, unpaid pool bonuses will be forfeited by participants
        upon termination from the Company. Amounts forfeited by terminated participants
        will remain the property of the Company and will not be redistributed among
        the
        remaining participants.

      

      If
        employment with the Company is terminated during calendar 2007 for any reason
        other than “termination for cause” by NWL, the 2007 bonus amount paid at
        termination will be based upon the current year-to-date bonus % (not to exceed
        100%) and the prorated percentage of the calendar year that services were
        rendered to the Company. In the event of death, the bonus amount will be
        paid to
        the individual’s spouse, and if the individual’s spouse is also not living at
        that time, then to the individual’s children.

      

      The
        Program, its terms, and its administration are at the complete discretion
        of the
        Company President and/or Compensation and Stock Option Committee (“Compensation
        Committee”) of the Board of Directors and may be changed or revoked at any time
        without the consent of the participants. This includes, among other things,
        amendment of the terms, targets, and other features of the Program as the
        Company President and/or Compensation Committee sees fit. Accordingly, this
        Program does not constitute a legal and binding obligation of the Company
        to
        perform.

       

      
        
           

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      All
        amounts paid to participants under this program will be excluded when
        determining benefits under the Company’s pension, 401(k), and other benefit
        programs.

      

      

      

      April
        19,
        2007National Western Life Insurance Company Exhibit 10bp

    EXHIBIT
      10(bp)

    

    National
      Western Life Insurance Company

    2007
      INTERNATIONAL MARKETING OFFICER BONUS PROGRAM

    

    

    The
      Bonus
      Program (“Program”) is designed to reward International Marketing officers for
      their performance in achieving pre-determined sales targets while assisting
      the
      Company in managing to its profit criteria. The Plan incorporates three
      measurable performance factors: (1) sales, which are defined as net placed
      annualized target premium for International Life business and as total placed
      premium for Annuity business, (2) persistency, and (3) expense
      management.

    

    Each
      of
      the three performance factors will have an assigned target level for purposes
      of
      the Program. Assuming a “par” performance (i.e. achieving each target level),
      the weighting of the bonus (applied to base salary) is 70% for sales
      performance, 15% for persistency performance, and 15% for expense management
      performance. Actual results compared to the targets can either increase or
      decrease these percentages as explained in each of the following
      sections.

    

    Sales
      Component (70%): 

    

    The
      sales
      component of the Program is based upon an International Life sales target of
      $32,700,000 net placed annualized target premium. The New Business Market
      Summary Report (NWAR60) will be the source of sales results for purposes of
      this
      Program. Based upon this sales goal, the bonus percentage corresponding with
      the
      International Life sales production levels achieved in 2007 will be applied
      to
      100% of each International Marketing officer’s base salary in accordance with
      the following grid:

    

    
      	
              Life
                Placed Target 

              Premium

            	
              Bonus
                

              %

            
	
              $29,200,000

            	
              20.0%

            
	
              $29,900,000

            	
              30.0%

            
	
              $30,600,000

            	
              40.0%

            
	
              $31,300,000

            	
              50.0%

            
	
              $32,000,000

            	
              60.0%

            
	
              $32,700,000

            	
              70.0%

            
	
              $33,400,000

            	
              80.0%

            
	
              $34,100,000

            	
              90.0%

            
	
              $34,800,000

            	
              100.0%

            
	
              Increment
                for every $500,000 thereafter

            	
              5.0%

            

    

    

    

    Bonus
      percentages associated with life international sales are not capped but increase
      by 5.0% with every additional $500,000 of placed target premium. Assuming an
      officer salary of $100,000 and 2007 production of $31,500,000 of International
      Life placed target premium, the officer’s 2007 sales bonus component under the
      Program would be $50,000 ($100,000 x 50%).

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Persistency
      Component (15%):

    

    

    The
      60th
      month
      ratio of actual persistency to expected (i.e. pricing) persistency as reported
      in the Duration Score Listing query will serve as the measure for the
      persistency component of the Program. For purposes of the persistency
      measurement, the parameters include all international writing agents (active
      and
      terminated) and all life business (universal life and traditional).

    

    Based
      upon these persistency performance factors, the bonus percentage corresponding
      with the International Life persistency levels achieved in 2007 will be applied
      to each International Marketing officer’s base salary in accordance with the
      following grid:

    

    

    
      	
              Life
                Business 

              Persistency

            	
              Bonus
                

              %

            
	
              Less
                than 96%

            	
              0%

            
	
              96%
                - 97%

            	
              3%

            
	
              97%
                - 98%

            	
              6%

            
	
              98%
                - 99%

            	
              9%

            
	
              99%
                - 100%

            	
              12%

            
	
              100%
                - 101%

            	
              15%

            
	
              101%
                - 102%

            	
              18%

            
	
              102%
                - 103%

            	
              21%

            
	
              103%
                - 104%

            	
              24%

            
	
              104%
                - 105%

            	
              27%

            
	
              105%
                - 106%

            	
              30%

            
	
              Greater
                than 106%

            	
              30%

            

    

    

    

    

    Assuming
      an officer salary of $100,000 and 2007 persistency of 103.6% for International
      Life business, the officer’s 2007 persistency bonus component under the Program
      would be $24,000 ($100,000 x 24%).

    

    

    Expense
      Component (15%):

    

    

    The
      expense component of the Program is based upon the ratio of actual expenses
      to
      life target premium sales. Actual expenses include all cost center expenses
      as
      reported in the monthly cost center reports comparing actual expenses to
      budgeted expenses with the exception of bonuses paid and sales conference
      expenses. 

    

    Based
      upon the actual ratio achieved, the corresponding bonus percentage based upon
      the following chart will be applied to 100% of each International Marketing
      officer’s base salary:

     

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Ratio
                of Expense/

              Target
                Premium

            	
              Bonus
                %

            
	
              Less
                than 4.45%

            	
              30.0%

            
	
              4.45
                % to 4.55%

            	
              27.0%

            
	
              4.55%
                to 4.65%

            	
              24.0%

            
	
              4.65%
                to 4.75%

            	
              21.0%

            
	
              4.75%
                to 4.85%

            	
              18.0%

            
	
              4.85%
                to 4.95%

            	
              15.0%

            
	
              4.95%
                to 5.05%

            	
              12.0%

            
	
              5.05%
                to 5.15%

            	
              9.0%

            
	
              5.15%
                to 5.25%

            	
              6.0%

            
	
              5.25%
                to 5.35%

            	
              3.0%

            
	
              More
                than 5.35%

            	
              0.0%

            

    

    

    

    Assuming
      actual expenses of $1.6 million, life target premium sales of $31.5 million,
      the
      calculated ratio would be 5.08%. The officer’s 2007 expense management bonus
      component under the Program, assuming a $100,000 base salary, would be $9,000
      ($100,000 x 9%).

    

    From
      the
      above examples, the officer with a $100,000 base salary would receive a 2007
      bonus under the program of 83.0% or $83,000 ($50,000 sales plus $24,000
      persistency plus $9,000 expense management) reflecting sales and expense
      management below “par” and persistency above “par”. See “Administration” for
      further guidelines when the bonus percentage exceeds 100%.

    

    Administration:

    

    Bonus
      amounts under the program will be calculated and advanced quarterly based upon
      actual results. However, bonus advances will be limited to 100% of participant
      base salary even if actual results to-date exceeds 100%. In the event that
      actual year-to-date results are below minimum Program performance factor levels,
      the Company may, at its discretion, suspend
      the
      bonus advance payments until such time as the year-to-date results reach the
      minimum Program performance levels. Bonus amounts paid year-to-date will not
      be
      recouped from the participants in the event of suspension of quarterly payments
      except at the end of the Program year if unearned.

    

    If
      at the
      end of the year the aggregate bonus percentage exceeds 100%, the incremental
      %
      above 100% will be applied to the base salaries of all International Marketing
      Officers (weighted for the portion of the calendar year each participant was
      employed by the Company) to determine a dollar amount to be put into a “pool”.
      The pool amount will be allocated based upon the recommendation of the
      International Chief Marketing Officer and as approved by the Company President.
      The recommendation of the pool allocation by the Chief Marketing Officer must
      be
      submitted to the Company President by the end of the January 2008. 

     

    
      
         

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      pool
      amount will be paid out quarterly in the following calendar year (i.e. 2008).
      Participants must be currently employed by the Company in order to receive
      pool
      payments. In other words, unpaid pool bonuses will be forfeited by participants
      upon termination from the Company. Amounts forfeited by terminated participants
      will remain the property of the Company and will not be redistributed among
      the
      remaining participants.

    

    If
      employment with the Company is terminated during calendar 2007 for any reason
      other than “termination for cause” by NWL, the 2007 bonus amount paid at
      termination will be based upon the current year-to-date bonus % (not to exceed
      100%) and the prorated percentage of the calendar year that services were
      rendered to the Company. In the event of death, the bonus amount will be paid
      to
      the individual’s spouse, and if the individual’s spouse is also not living at
      that time, then to the individual’s children.

    

    The
      Program, its terms, and its administration are at the complete discretion of
      the
      Company President and/or Compensation and Stock Option Committee (“Compensation
      Committee”) of the Board of Directors and may be changed or revoked at any time
      without the consent of the participants. This includes, among other things,
      amendment of the terms, targets, and other features of the Program as the
      Company President and/or Compensation Committee sees fit. Accordingly, this
      Program does not constitute a legal and binding obligation of the Company to
      perform.

    

    All
      amounts paid to participants under this program will be excluded when
      determining benefits under the Company’s pension, 401(k), and other benefit
      programs.

    

    

    

    April
      19,
      2007

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