Document:

Exhibit 10.6

Exhibit 10.6

AMENDMENT NUMBER 2

TO THE

AMERICAN NATIONAL INSURANCE COMPANY

NONQUALIFIED RETIREMENT PLAN

FOR CERTAIN SALARIED EMPLOYEES

(Restated Effective December 31, 2007)

This Amendment Number 2 (the “Amendment”) to the American National Insurance Company Nonqualified
Retirement Plan for Certain Salaried Employees (the “Plan”)
is made this 30th day of December, 2008 to be effective December 31, 2007 by American National Insurance Company,
American National Property and Casualty Company, Standard Life and Accident Insurance Company,
Garden State Life Insurance Company, and Securities Management and Research, Inc. (collectively,
the “Company”).

W I T N E S S E T H:

WHEREAS, the Company maintains the Plan; and

WHEREAS, the Company approved an amendment to the Plan in 2003 (the “2003 Amendment”), the
purpose of which was to limit compensation used for purposes of total pension credit for
individuals covered under the Plan;

WHEREAS, the Company wishes to incorporate the terms of the 2003 Amendment into the Plan, as
restated, effective December 31, 2007;

WHEREAS, the Company allowed certain elections to be made in operation requiring an amendment
to the Plan to allow such elections;

WHEREAS, the Plan may be amended by the Company pursuant to Section 7.1 of the Plan.

NOW, THEREFORE, BE IT RESOLVED that the Plan shall be, and is hereby amended, effective
December 31, 2007 as follows:

	 	1.	 	Section 5.2 of the Plan is amended by inserting the following between
the existing second and third paragraphs thereof:
	 
	 	 	 	“Notwithstanding the preceding to the contrary, Participants who have
previously made elections with respect to the time or form of payment of their
benefits may make new elections on or before December 31, 2008 with respect to
both the time and form of payment of such amounts. However, with respect to
such an election to change a time and form of payment, the election may apply
only to amounts that would not otherwise be payable in the year such Change in
Payment Election is made and may not cause an amount to be paid in the year
such Change in Payment Election is made that
would not otherwise be payable in the year such Change in Payment Election is
made.”
	 
	 	2.	 	Except as amended and modified by this Amendment, all other terms of the Plan
shall remain unchanged.

  

 

 

IN WITNESS WHEREOF, this Amendment has been executed the day and year first above written to
be effective as of December 31, 2007.

	 	 	 	 	 	 	 	 	 
	American National Insurance Company	 	Standard Life and Accident Insurance Company	 	 
	 
	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

G. Richard Ferdinandtsen

President, Chief Operating Officer
	 	 
	 	 

G. Richard Ferdinandtsen

Chairman of the Board,

President, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	American National Property and Casualty
Company	 	Securities Management and Research,
Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Gregory V. Ostergren

Chairman of the Board

President, Chief Executive Officer
	 	 
	 	 

Michael W. McCroskey

President, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	Garden State Life Insurance Company	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

Scott K. Luchesi

President, Chief Executive Officer
	 	 	 	 	 	 

 

2

 

AMENDMENT NUMBER 1

TO THE

AMERICAN NATIONAL INSURANCE COMPANY

NONQUALIFIED RETIREMENT PLAN

FOR CERTAIN SALARIED EMPLOYEES

(Restated Effective December 31, 2007)

This Amendment Number 1 (the “Amendment”) to the American National Insurance Company Nonqualified
Retirement Plan for Certain Salaried Employees (the “Plan”) is made this 30th
day of December, 2008 to be effective December 31, 2007 by American National Insurance Company,
American National Property and Casualty Company, Standard Life and Accident Insurance Company,
Garden State Life Insurance Company, and Securities Management and Research, Inc. (collectively,
the “Company”).

W I T N E S S E T H:

WHEREAS, the Company maintains the Plan; and

WHEREAS, the Company approved an amendment to the Plan in 2003 (the “2003 Amendment”), the
purpose of which was to limit compensation used for purposes of total pension credit for
individuals covered under the Plan to the sum of:

	 	(i)	 	compensation other than incentive compensation based directly on production
of new business; and

	 	(ii)	 	incentive compensation that is based directly on the production of new
business, up to a maximum of one times base salary.

WHEREAS, the Company wishes to incorporate the terms of the 2003 Amendment into the Plan, as
restated, effective December 31, 2007; and

WHEREAS, the Plan may be amended by the Company pursuant to Section 7.1 of the Plan.

NOW, THEREFORE, the Plan shall be, and is hereby amended, effective December 31, 2007 as
follows:

The definition of compensation for pension benefit purposes in the Plan, is the
amount of such compensation for 2003 and subsequent years equal to the sum of

	 	(i)	 	compensation other than incentive compensation based directly on production of
new business; and
	 
	 	(ii)	 	incentive compensation that is based directly on the production of new
business, up to a maximum of one times base salary.

 

3

 

For any calendar year containing less than a full year of employment, a pro-rata
adjustment to the annual base salary shall apply for purposes of this limitation.

Except as amended and modified by this Amendment, all other terms of the Plan shall remain
unchanged.

IN WITNESS WHEREOF, this Amendment has been executed the day and year first above written to
be effective December 31, 2007.

	 	 	 	 	 	 	 	 	 
	American National Insurance Company	 	Standard Life and Accident Insurance Company	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

G. Richard Ferdinandtsen

President, Chief Operating Officer
	 	 
	 	 

G. Richard Ferdinandtsen

Chairman of the Board,

President, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	American National Property and Casualty
Company	 	Securities Management and Research,
Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Gregory V. Ostergren

Chairman of the Board

President, Chief Executive Officer
	 	 
	 	 

Michael W. McCroskey

President, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	Garden State Life Insurance Company	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

Scott K. Luchesi

President, Chief Executive Officer
	 	 	 	 	 	 

 

4

 

AMERICAN NATIONAL INSURANCE COMPANY

NONQUALIFIED RETIREMENT PLAN

FOR CERTAIN SALARIED EMPLOYEES

(Restated Effective December 31, 2007)

 

5

 

PREAMBLE

This American National Insurance Company Nonqualified Retirement Plan for Certain
Salaried Employees (the “Plan”) has been restated to provide certain salaried
employees with deferred compensation that complies with Internal Revenue Code
(“IRC”) section 409A and the regulations thereunder. In addition, a Participant in
the “Non-Qualified Deferred Compensation Arrangement Approved by the ANREM Board of
Directors” dated September 19, 1990 became an Eligible Employee under this Plan
effective January 1, 2005. Finally, Participants in the “ANICO Non-Qualified
Deferred Compensation Plan” that were not in pay status as of December 31, 2004 have
been transferred to this Plan as Eligible Employees to consolidate all nonqualified
deferred compensation of the Company subject to IRC section 409A in this Plan.

ARTICLE I

DEFINITIONS

Any term used in this Plan that is defined in the Retirement Plan shall have the
same meaning for purposes of this Plan that it has under the Retirement Plan, unless
the term is defined differently under this Plan. The following terms shall have the
meaning defined:

1.1 “Additional 2007 Compensation” means the proceeds a Participant received during
2007 from the sale of shares awarded under the American National 2001 Stock and
Incentive Plan for Development and Growth of the Farm Family Companies.

1.2 “Beneficiary” means any person to whom benefits are payable after the death of
an Eligible Employee under the Retirement Plan. Such person shall also receive
payment of any benefits payable under this Plan after the Participant’s death.

1.3 “Committee” means the Benefits Committee of American National Insurance Company.

1.4 “Company” means American National Insurance Company and any corporation that is
a participating company in the Retirement Plan.

1.5 “Distribution Election” means an election by a Participant specifying the date
upon which payment of benefits under this Plan shall begin.

1.6 “Eligible Employee” means a fully vested Participant in the Retirement Plan who
qualifies as a member of a select group of management or highly compensated
employees within the meaning of ERISA Section 201(2) and who is designated by the
Board of Directors of the Company.

 

6

 

1.7 “EVP” means a Participant who is an Executive Vice President of the
Company or higher rank.

1.8 “Life Annuity” means a series of substantially equal periodic payments, payable
not less frequently than annually, for the life (or life expectancy) of the
Participant, or a series of substantially equal periodic payments, payable not less
frequently than annually, for the life (or life expectancy) of the Participant,
followed upon the death or end of the life expectancy of the Participant by a series
of substantially equal periodic payments, payable not less frequently then annually,
for the life (or life expectancy) of the Participant’s designated beneficiary (if
any).

Acceptable types of Life Annuities include:

	 	•	 	Single Life Annuity with monthly payments for the life of the
Participant with the last payment payable for the month during which the
Participant dies;

	 	•	 	Joint and Survivor Annuity with an actuarially equivalent monthly
benefit payable for the life of the Participant with monthly payments of
all or a specified percentage of that amount continued after the
Participant’s death for the life of the Participant’s Surviving Spouse (the
specified percentage shall be 50%, or 66-2/3%, 75%, or 100%); and

	 	•	 	An actuarially equivalent monthly benefit payable for the life of the
Participant but not for less than ten (10), fifteen (15), or twenty (20)
years of guaranteed monthly payments with any remaining payments payable to
the Participant’s Designated Beneficiary if the Participant dies before the
end of the specified period certain.

1.9 The “Named Fiduciary” for the Plan is the Committee.

1.10 “Normal Retirement Age” means age 65.

1.11 “Participant” means an Eligible Employee on whose behalf benefits are payable
under this Plan.

1.12 “Plan” means this American National Insurance Company Nonqualified Retirement
Plan for Certain Salaried Employees, as amended from time to time.

1.13 The “Plan Administrator” is the Committee.

1.14 “Plan Year” means the calendar year.

1.15 “Retirement Plan” means the American National Insurance Company Employees
Retirement Plan.

 

7

 

1.16 “Severance of Service” means an Employee’s death, retirement, or other
termination of employment with the Company’s control group of companies as defined
under IRC section 414(b) or (c) and the accompanying regulations, but substituting a
50 percent ownership level for the 80 percent ownership level in section 414(b) and
(c) and the accompanying regulations.

1.17 “Specified Employee” means a “key employee” (as defined in IRC section 416(i)
without regard to section 416(i)(5)) of a company that is publicly traded on an
established securities market or otherwise.

1.18 “Subsequent Election” means a change to an existing Distribution Election
affecting the timing or form of a benefit payment made in accordance with Section
5.3 of the Plan.

ARTICLE II

ELIGIBILITY FOR PARTICIPATION

Each Eligible Employee shall participate in this Plan effective as of the date
the Employee becomes an Eligible Employee. No formal enrollment or application
shall be required; participation shall be automatic.

 

8

 

ARTICLE III

FUNDING

Nothing contained in this Plan and no action taken pursuant to the provisions
of this Plan shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and a Participant, Beneficiary or any
other person. The Participant’s benefit will be nonforfeitable at all times
provided, however, that title to and beneficial ownership of any assets, whether
cash or investments, which the Company may designate to pay the benefits under this
Plan, shall at all times remain in the Company in the general asset account and
neither a Participant nor a Beneficiary shall have any right or property interest
whatsoever in any such assets of the Company. The Company shall not be required to
fund its obligations under this Plan in any manner, whether by purchase of insurance
contracts, or by contributions to a trust fund, or by deposits in an escrow account,
or otherwise. However, if the Company does purchase any such contract or deposit
funds in any such account, then neither a Participant nor his Beneficiaries shall
have any right or interests in such contracts, participating trust, or accounts but
may look only to the Company’s unsecured promise to pay in accordance with the
provisions of this Plan.

ARTICLE IV

COMPUTATION OF BENEFITS

4.1 If the benefit payable to a Participant, his surviving spouse, or other
Beneficiary under the Retirement Plan would be less than the amount computed under
the provisions of Article V of the Retirement Plan because of the application of the
provisions of Internal Revenue Code sections 401(a)(17) which limits the annual
compensation of each employee taken into account under the Retirement Plan and 415
which limits the maximum benefits of each employee taken into account under the
Retirement Plan, the Participant, his surviving spouse, or other Beneficiary shall
be paid under this Plan, a benefit equal to the difference between (i) and (ii)
where (i) is the sum of the vested accrued benefit payable under the Retirement
Plan, and (ii) is the vested accrued benefit that would have been accrued and
payable under the Retirement Plan if the limitations of Internal Revenue Code
sections 401(a)(17) and 415 had not applied (subject to the adjustments indicated in
this Article IV).

 

9

 

4.2 Provided however, that if a Participant under this Plan is a former participant
under the American National Insurance Company Non-Qualified Retirement Plan
(covering employees of Executive Vice President and higher rank), and the provisions
of such plan’s sections 4.1 to 4.5 regarding benefits
payable (before offset of the corresponding qualified plan benefits) at Normal
Retirement, Late Retirement, Early Retirement, Vested termination, and
Pre-Retirement Death (as those terms are defined in such plan) respectively produce
a higher benefit, then those provisions shall apply with regard to the determination
of item (ii) in the preceding paragraph.

4.3 Also provided however, if a Participant in this Plan was also a participant
before January 1, 2005 in the Non-Qualified Deferred Compensation Arrangement
Approved by the ANREM Board of Directors dated September 19, 1990 with respect to
defined benefit pension benefits for service at ANREM, any such service at ANREM not
included under the Retirement Plan for purposes of benefit calculation shall
nevertheless be included under this Plan in the determination of item (ii) in
Section 4.1 of this Plan.

4.4 If a Participant has Additional 2007 Compensation, any such compensation not
included under the Retirement Plan for purposes of any accrued benefit calculations
shall nevertheless be included under this Plan in the determination of item (ii) in
the Section 4.1 of this Plan.

ARTICLE V

PAYMENT OF BENEFITS

5.1 Payment of benefits under this Plan shall begin as of the later of attainment of
age 55, the date specified in a timely completed Distribution Election Form, or six
(6) months after a Severance of Service. A Participant may elect to receive
benefits in a single sum, in five (5), ten (10), or fifteen (15) equal annual
installments, or in a Life Annuity.

If the distribution is in the form of an annuity, any additional benefits accruing
to the Participants after payment of benefits commence will be distributed as a
separate and identifiable component of the annuity beginning with the first payment
interval ending in the calendar year immediately following the calendar year in
which such amount accrues.

Payments will be made to the Participant or, if the Participant is deceased, to the
Participant’s designated Beneficiary, if applicable.

Other provisions notwithstanding, a Participant determined to be a Specified
Employee who is entitled to a distribution as a result of a Severance of Service
shall receive the initial benefit payment six (6) months after the Severance of
Service or, if earlier, his date of death.

 

10

 

For purposes of this Plan, actuarial equivalence of the single sum payment, five
(5), ten (10), and fifteen (15) year equal annual installments, and Life Annuity
shall be computed on the basis of the assumptions specified in the Retirement Plan
for such purpose. Installment payments will be computed on the same basis and using
the same actuarial assumptions as is used to determine the actuarial equivalence of
a single sum payment. Benefits under this Plan that are paid before Normal
Retirement Age shall be reduced in accordance with the provisions of the Retirement
Plan governing payment of benefits before Normal Retirement Age.

5.2 An Eligible Employee may file an initial Distribution Election Form within
thirty (30) days of the date of first becoming eligible to participate in the Plan.
If the Participant does not complete an initial Distribution Election Form, the
Participant’s benefit will be paid as a single sum on the later of attainment of age
55 or Severance of Service.

Benefits will be paid at the time and in the form specified by the Participant’s
initial Distribution Election Form. With the exception of a Subsequent Election,
Participants may not change the timing or form of benefit distribution under the
Plan.

Other provisions notwithstanding, an EVP may file a new Distribution Election Form
specifying a different form of distribution before each Plan Year. An EVP’s new
Distribution Election Form will be effective for benefits credited in the Plan Year
following the calendar year in which the new Distribution Election Form is
completed. The payment of an EVP’s benefits credited each Plan Year will be made in
the form specified by the EVP’s Distribution Election Form applicable for that Plan
Year. If an EVP does not submit a new Distribution Election Form for future Plan
Years, the form of distribution specified on the most current Distribution Election
Form shall govern.

5.3 Subsequent Election: A Participant may elect to modify an existing Distribution
Election as to the time of distribution and/or form of distribution by completing a
Subsequent Election Form.

Any Subsequent Election must satisfy the following requirements:

	 	•	 	The Subsequent Election will not take effect until at least twelve
(12) months after the date on which the election is made;

	 	•	 	The payment will be deferred for a period of not less than five (5)
years from the date such payment would otherwise have been paid (or, in
the case of a Life Annuity, five (5) years from the date the first
amount was scheduled to be paid); and

	 	•	 	The Subsequent Election must be made at least twelve (12) months
prior to the date that the payment is otherwise scheduled to be paid
(or,
in the case of a Life Annuity, one (1) year before the date the first
payment was otherwise scheduled).

 

11

 

For purposes of this Section 5.3, individual installment payments will be treated as
single sum payments subject to separate Subsequent Elections.

However, a change in designated Beneficiary before any Life Annuity payment has been
made under the Plan is not a change in the time or form of payment for these
purposes.

In addition, a change in the form of a payment before any Life Annuity payment has
been made under the Plan, from one type of Life Annuity to another type of Life
Annuity with the same scheduled date for the first annuity payment, is not
considered a change in the time and form of a payment for these purposes, provided
that the Life Annuities are actuarially equivalent applying reasonable actuarial
methods and assumptions.

The entitlement to a Life Annuity is treated as the entitlement to a single payment.
Accordingly, an election to delay payment of a Life Annuity, or to change the form
of payment of a Life Annuity to some form of payment other than a Life Annuity, must
be made at least twelve (12) months before the scheduled commencement of the Life
Annuity, and must defer the payment for a period of not less than five (5) years
from the originally scheduled commencement of the Life Annuity.

5.4 Eligibility for Pre-Retirement Death Benefit: Other provisions of the Plan not
withstanding, in the event of a Participant’s death prior to commencement of
benefits under this Plan, the Participant’s beneficiary will receive a
Pre-Retirement Death Benefit equal to the Participant’s benefit calculated pursuant
to Article IV of this Plan as of the Participant’s date of death. The
Pre-Retirement Death benefit will be paid ninety (90) days following the date of
death and will be paid as a single sum payment.

5.5 Interest in Agreement Nonassignable: A Participant shall not have any right to
commute, sell, assign, transfer, or otherwise convey the right to receive any
payments under this Plan. Payments will not be subject to the claim of any creditor
of an Eligible Employee, nor can payments be taken in execution by attachment or
garnishment or by any other legal or equitable proceeding.

5.6 Distribution to Minors or Incapacitated Persons: If the Committee shall find
that any person to whom any benefit payment is to be made under this Plan is unable
to care for his affairs because of illness or accident, or is a minor, any benefit
payment due (unless a prior claim has been made by a duly appointed guardian or
other legal representative) may be paid to the spouse, a child, or a parent, or to
any person deemed by the Committee to have incurred expense for care of the person
otherwise entitled to payment, in such manner and proportions
as the Committee may determine. Any such payment shall be a complete discharge of
the liabilities of the Company under this Plan to the extent of the payment made.

 

12

 

5.7 Termination of Service: Nothing in this Plan shall be construed to give a
Participant the right to be retained as an employee of the Company or to impair the
right of the Company to terminate a Participant’s services at any time with or
without cause.

ARTICLE VI

CLAIMS PROCEDURE

6.1 Filing and Initial Determination of Claim: The Participant or his duly
authorized representative may file a claim for a benefit to which the claimant
believes that he is entitled. Such a claim must be in writing and delivered to the
Plan Administrator. Within ninety (90) days after receipt of a claim, the Plan
Administrator shall send to the claimant notice of the granting or denying, in whole
or in part, of such claim, unless special circumstances require an extension of time
for processing the claim. In no event may the extension exceed ninety (90) days
from the end of the initial period. If such extension is necessary, the claimant
will be given a written notice to this effect prior to the expiration of the initial
ninety-day (90) period. The Plan Administrator shall have full sole discretion to
deny or grant a claim in whole or in part. If notice of the denial of a claim is
not furnished in accordance with this Section 6.1, the claim shall be deemed denied
and the claimant shall be permitted to exercise his right to review pursuant to
Section 6.3 below.

6.2 Duty of Plan Administrator Upon Denial of Claim: If a claim for benefits is
denied, the Plan Administrator shall provide to the claimant written notice setting
forth in a manner calculated to be understood by the claimant: (a) the specific
reason or reasons for the denial; (b) specific reference to pertinent Plan
provisions on which the denial is based; (c) a description of any additional
material or information necessary for the claimant to perfect the claim and an
explanation of why such material is necessary; and (d) an explanation of the claim
review procedure.

6.3 Request for Review of Claim Denial: Within sixty (60) days after receipt by the
claimant of written notification of the denial in whole or in part of his claim, the
claimant or his duly authorized representative, upon written application to the Plan
Administrator in person or by certified mail, postage prepaid, may request a review
of such denial, may review pertinent documents, and may submit issues and comments
in writing. Upon receipt of the request for review, the Plan Administrator shall
review the claim. The decision on review shall be written in a manner calculated to
be understood by the claimant and shall

 

13

 

include specific reasons for the decision and specific references to the pertinent Plan provisions on
which the decision is based. The decision on review shall be made not later than
sixty (60) days after the Plan Administrator’s receipt of a request for review,
unless special circumstances require an extension of time for processing, in which
case a decision shall be rendered not later than one hundred twenty (120) days after
receipt of a request for review. If such extension is necessary, the claimant shall
be given written notice of the extension prior to the expiration of the initial
sixty-day (60) period. If notice of the decision on the review is not furnished in
accordance with this Section 6.3, the claim shall be deemed denied.

ARTICLE VII

AMENDMENT AND TERMINATION

7.1 Power to Modify, Suspend or Terminate: The Company expects this Plan to be
permanent, but as future conditions affecting the Company cannot be foreseen, the
right is reserved to amend, modify, suspend or terminate the Plan. Any such
amendment, modification, suspension or termination of the Plan shall be effective
not earlier than the date on which the Company gives notice of such action to
affected Participants. An amendment or modification may affect future Participants,
but may not diminish the accrued benefit of any Participant or Beneficiary as it
existed immediately prior to the effective date of such amendment or modification.

7.2 Nonforfeitable Rights Upon Termination or Suspension of the Plan: Upon any
termination or partial termination of the Plan or complete discontinuance of deemed
contributions under the Plan, the rights of each affected Participant to his entire
accrued benefit to date of such termination, partial termination, or discontinuance
shall be nonforfeitable and fully vested. The Company shall be contractually liable
to each such Participant for such accrued benefits.

ARTICLE VIII

MISCELLANEOUS

8.1 Applicable Law: This Agreement shall be construed in accordance with and
governed by the laws of the State of Texas except insofar as the laws of the State
of Texas are preempted by the Employees Retirement Income Security Act of 1974.

8.2 Effect of the Agreement: This Agreement shall be binding upon and inure to the
benefit of the Company, its successor and assigns, and the Participant and his
heirs, personal representatives, and legal representatives.

 

14

 

IN WITNESS WHEREOF, the following corporations have caused this Plan to be executed
effective December 31, 2007.

(Signatures contained on following page)

 

15

 

	 	 	 	 	 	 	 	 	 
	American National Insurance Company	 	Standard Life and Accident Insurance Company	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

G. Richard Ferdinandtsen

President, Chief Operating Officer
	 	 
	 	 

G. Richard Ferdinandtsen

Chairman of the Board,

President, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	American National Property and Casualty
Company	 	Securities Management and Research, Inc.
	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Gregory V. Ostergren 

Chairman of the Board 

President, Chief Executive Officer
	 	 
	 	 

Michael W. McCroskey

President, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 	 	 
	Garden State Life Insurance Company	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

Scott K. Luchesi

President, Chief Executive Officer
	 	 	 	 	 	 

 

16Exhibit 10.7

Exhibit 10.7

AMENDMENT NUMBER 3

AMERICAN NATIONAL INSURANCE COMPANY

NON-QUALIFIED RETIREMENT PLAN

This Amendment Number 3 (the “Amendment”) to the American National Insurance Company Non-Qualified
Retirement Plan (the “Plan”) is made this 30th day of December, 2008, by
American National Insurance Company (the “Employer”).

W I T N E S S E T H:

WHEREAS, the Employer maintains the Plan;

WHEREAS, the Board of Directors (the “Board”) of the Employer desires the benefits accrued and
vested under the Plan as of December 31, 2004 for Participants that were in pay status as of
December 31, 2004 to be grandfathered under the tax rules in effect prior to the effective date of
Section 409A of the Internal Revenue Code pursuant to the relief set forth in Notice 2005-1; and

WHEREAS, the Board desires that, with the exception of Participants that were in pay status as
of December 31, 2004, all Participant deferrals cease and that no new Participants begin
participating in the Plan after December 31, 2004; and

WHEREAS, the Board desires that effective January 1, 2005, with the exception of Participants
that were in pay status as of December 31, 2004, all Participants in the Plan be transferred to and
receive their Accrued Benefits pursuant to the American National Insurance Company Nonqualified
Retirement Plan for Certain Salaried Employees, a plan that is intended to comply with the
requirements of Section 409A; and

WHEREAS, the Plan may be amended by the Board of Directors of the Employer pursuant to Section
6.2 of the Plan, and

WHEREAS, the Board authorized this Amendment to the Plan at their meeting of October 25, 2007.

NOW, THEREFORE, the Plan shall be, and is hereby amended, effective January 1, 2007, as
follows:

1. Sub-section (e) of Article 1.2 shall be modified by the addition of the following paragraph:

“Other provisions notwithstanding, for purposes of calculating benefits to be paid pursuant
to this Retirement Plan, the proceeds a Participant received during 2007 from the sale of
 shares awarded under the American National 2001 Stock and Incentive Plan for Development and
Growth of the Farm Family Companies shall be included.”

 

 

 

2. Article 6.5 of the Plan is deleted in its entirety and replaced with the following revised
Article 6.5:

“6.5 Interest In Agreement Nonassignable:

“A Participant shall not have any right to commute, sell, assign, transfer, or otherwise
convey the right to receive any payments under this Plan. Payments will not be subject to
the claim of any creditor of an Eligible Employee, nor can payments be taken in execution by
attachment or garnishment or by any other legal or equitable proceeding.”

Except as amended and modified by this Amendment, all other terms of the Plan shall remain
unchanged.

IN WITNESS WHEREOF, this Amendment has been executed the day and year first above written.

	 	 	 	 	 
	 	AMERICAN NATIONAL INSURANCE COMPANY	 
	 	
 	 
	 	G. Richard Ferdinandtsen 	 
	 	President, Chief Operating Officer 	 

 

 

 

	 	 	 	 	 

AMENDMENT NUMBER 2

AMERICAN NATIONAL INSURANCE COMPANY NON-QUALIFIED

RETIREMENT PLAN

This Amendment Number 2 (“Amendment”) to the American National Insurance Company Non-Qualified
Retirement Plan (the “Plan”) is made this 30th day of December, 2008, by
American National Insurance Company (the “Employer”).

W I T
N E S S E T H:

WHEREAS, the Employer maintains the Plan;

WHEREAS, the Board of Directors (the “Board”) of the Employer desires the benefits accrued and
vested under the Plan as of December 31, 2004 for Participants that were in pay status as of
December 31, 2004 to be grandfathered under the tax rules in effect prior to the effective date of
Section 409A of the Internal Revenue Code pursuant to the relief set forth in Notice 2005-1; and

WHEREAS, the Board desires that, with the exception of Participants that were in pay status as
of December 31, 2004, all Participant deferrals cease and that no new Participants begin
participating in the Plan after December 31, 2004; and

WHEREAS, the Board desires that effective January 1, 2005, with the exception of Participants
that were in pay status as of December 31, 2004, all Participants in the Plan be transferred to and
receive their Accrued Benefits pursuant to the American National Insurance Company Nonqualified
Retirement Plan for Certain Salaried Employees, a plan that is intended to comply with the
requirements of Section 409A; and

WHEREAS, the Plan may be amended by the Board of Directors of the Employer pursuant to Section
6.2 of the Plan, and

WHEREAS, the Board authorized this Amendment to the Plan at their meetings of December 15,
2006 and October 25, 2007.

 

 

 

NOW, THEREFORE, the Plan is hereby amended as follows, effective as of January 1, 2005:

1. Article 4.1 of the Plan is deleted in its entirety and replaced with the following revised
Article 4.1:

“4.1 Normal Retirement Benefit

“The benefit to be paid pursuant to this Plan to a Participant who retires at his
Normal Retirement Date shall be equal to:

“(a) the benefit which would have been payable at the Participant’s Normal
Retirement Date under the Qualified Plan, based upon its terms as in
effect at such Normal Retirement Date, with the following adjustments: (i)
without regard to limitations applicable under Code Sections 401(a)(17) and 415,
(ii) without taking into account any minimum benefit provision that existed as
Section 5.1(b) of the Qualified Plan as effective on June 1, 1985, and as it may
subsequently be amended, and (iii) including Special Service; less

“(b) the benefit which actually becomes payable under the terms of the
Qualified Plan at the Participant’s Normal Retirement Date.

“The foregoing benefit shall be payable as of the Participant’s Normal Retirement Date,
in accordance with Article V hereof as to form and duration of payment.

“In-service Retirement Benefits may be provided hereunder to the Chairman of the Board
or Chief Operating Officer only, commencing at a date of his election (subsequent to his
attainment of age 65). In that case, accrual of additional benefits on account of increase
in average annual compensation or credited benefit service, after the commencement of the
in-service benefits, shall also be calculated and credited monthly, and shall increase the
total benefits paid thereafter.

“Additional benefits shall be provided hereunder when calculating benefits under Articles
4.1(a), 4.2(a), 4.3(a), or 4.4(a) for the Chairman of the Board or Chief Operating Officer
only, by waiving the 35 year cap on credited benefit service contained in Section 5.1 of the
Qualified Plan, (supplemental schedule 1). Up to 45 years maximum benefit service shall be
granted.

“Provided, however, for purposes of calculating benefits to be paid pursuant to this
Plan, the amounts of any remuneration in the form of:

	 	“(i)	 	 income resulting from grants of Restricted Stock or Stock
Appreciation Rights on or after July 25, 2002 pursuant to the American National
Insurance Company 1999 Stock and Incentive Plan, other than dividends paid on
Restricted Stock prior to the vesting thereof; and

	 	“(ii)	 	 in-service payments under this Plan or any other tax-qualified
or non-qualified employee benefit plan

shall be excluded.”

 

 

 

2. The following paragraph is added to the Plan:

“Notwithstanding anything in the Plan to the contrary, with the exception of
Participants that were in pay status as of December 31, 2004, no additional deferred amounts
shall be allowed or benefits accrued after December 31, 2004 and no person shall become a
Participant in the Plan after December 31, 2004. In addition, all Participants not in pay
status as of December 31, 2004 shall be transferred to and receive their Accrued Benefits
pursuant to the American National Insurance Company Nonqualified Retirement Plan for Certain
Salaried Employees, a plan that is intended to comply with the requirements of Section
409A.”

Except as amended and modified by this Amendment, all other terms of the Plan shall remain
unchanged.

IN WITNESS WHEREOF, this Amendment has been executed the day and year first above written.

	 	 	 	 	 
	 	AMERICAN NATIONAL
INSURANCE COMPANY	 
	 	
 	 
	 	G. Richard Ferdinandtsen 	 
	 	President, Chief Operating Officer 	 

 

 

 

Amendment Number 1 to the

AMERICAN NATIONAL INSURANCE COMPANY NON-QUALIFIED

RETIREMENT PLAN

Whereas the American National Insurance Company(Company) Board of Directors authorized certain
amendments to the above noted plan(Retirement Plan) at their ¶meetings of April 27, 2001 and April
26, 2002.

Now, Therefore, the following Articles of said plan will be amended as follows:

Article 1.2 (Definitions) of the Retirement Plan shall include the following additional paragraphs
in sub-section p. and q., respectively;

“Special Service shall include service with American Security Life Insurance Company, of San
Antonio, Texas.”

“Qualified Plan shall also be construed to include, as an offset to benefits paid hereunder, any
benefits provided under the Retirement Plan for Employees of American Security Life Insurance
Company, of San Antonio, Texas.”

In addition, sub-section e. of Article 1.2 shall be modified by deleting the word “total cash
remuneration, and replacing them with the words “total remuneration.”

Article 4.1 of the Retirement Plan shall be amended by the addition of the following paragraphs;

“In-service Retirement Benefits may be provided hereunder to the Chairman of the Board or Chief
Operating Officer only, commencing at a date of his election (subsequent to his attainment of age
65). In that case, accrual of additional benefits on account of increase in average annual
compensation or credited benefit service, after the commencement of the in-service benefits, shall
also be calculated and credited monthly, and shall increase the total benefits paid thereafter. The
Company may at its discretion pay a level amount for a twelve month period and defer monthly
increases to the following anniversary of the retirement benefit commencement date, at which time
any unpaid increases shall be paid in a lump sum.”

“Additional benefits shall be provided hereunder when calculating benefits under Articles 4.1(a),
4.2 (a), 4.3 (a), or 4.4 (a) for the Chairman of the Board or Chief Operating Officer only, by
waiving the 35 year cap on credited benefit service contained in Section 5.1 of the Qualified
Plan,(supplemental schedule 1). Up to 45 years maximum benefit service shall be granted.

Provided, however, for purposes of calculating benefits to be paid pursuant to this Retirement
Plan, the amounts of any remuneration in the form of

	(i)	 	income resulting from grants of Restricted Stock or Stock Appreciation Rights on or after
July 25, 2002 pursuant to the American National Insurance Company 1999 Stock and Incentive
Plan, other than dividends paid on Restricted Stock prior to the vesting thereof; and

	(ii)	 	“in service” payments under this Retirement Plan or any other tax-qualified or non-qualified
employee benefit plan

shall be excluded.

 

 

 

Article 5.1 of the Retirement Plan shall be amended to add the following paragraph;

“In addition, a special form of life payment shall be made available to the Chairman of the Board
or Chief Operating Officer only that provides for a life payment in the amount of the normal form
(life only) benefit , but additionally guarantees payment of a death benefit to each of such
officer’s beneficiaries at the death of such officer. The death benefit payable to such officer’s
beneficiaries under this Article 5.1 shall be (i) equal to the amount of such officer’s pension
payment being paid at the time of such officer’s death and (ii) paid to such beneficiaries for the
period of time that, when added to the period of time such officer has received such life payment
under Article 5.1, will equal twenty-one (21) years.”

IN WITNESS WHEREOF, this Amendment No. 1 has been executed by the duly authorized and empowered
officers of the Company this 26th day of July, 2002.

	 	 	 	 	 
	 	
 	 
	 	Gerald A. Schillaci 	 
	 	Asst. Vice President and Actuary 	 
	 	
 	 
	 	J. Mark Flippin 	 
	 	Witness Secretary 	 

 

 

 

	 	 	 	 	 

AMERICAN NATIONAL INSURANCE COMPANY

NON-QUALIFIED RETIREMENT PLAN

Effective

July 25, 1991

 

 

 

AMERICAN NATIONAL INSURANCE COMPANY

NON-QUALIFIED RETIREMENT PLAN

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE I — Purpose, Definitions and Construction
	 	 	 	 
	1.1 Purpose of the Plan
	 	 	1	 
	1.2 Definitions
	 	 	1	 
	1.3 Construction
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II — Eligibility
	 	 	 	 
	2.1 Eligibility Requirements
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III — Funding
	 	 	 	 
	3.1 Funding
	 	 	3	 
	 
	 	 	 	 
	ARTICLE IV — Benefits Under the Plan
	 	 	 	 
	4.1 Normal Retirement Benefit
	 	 	3	 
	4.2 Late Retirement Benefit
	 	 	4	 
	4.3 Early Retirement Benefit
	 	 	4	 
	4.4 Benefit At Termination of Employment
	 	 	5	 
	4.5 Pre-Retirement Death Benefit
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V — Determination of Payment of Account
	 	 	 	 
	5.1 Form of Payment
	 	 	6	 
	5.2 Special Payment Provision
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VI — Miscellaneous
	 	 	 	 
	6.1 Administration of the Plan
	 	 	7	 
	6.2 Amendment of the Plan
	 	 	7	 
	6.3 Termination of the Plan
	 	 	7	 
	6.4 Notices to Participants
	 	 	7	 
	6.5 Non-Alienation
	 	 	7	 

 

 

 

ARTICLE I

PURPOSE, DEFINITIONS AND CONSTRUCTION

1.1 Purpose of the Plan

This Plan is established by the Employer 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 tax qualified defined benefit plan maintained by the Employer.
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.

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, payable at the
Participant’s Normal Retirement Date, which has accrued at any time under the provisions of the
Plan, determined as if the Participant had then terminated his employment with the Employer.

(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. Provided, however, as to the payment of a single sum distribution, the
interest rate to be used shall be the rate that would be used by the Pension Benefit Guaranty
Corporation, as of the first day of the month prior to the month in which the payment is to be
made, to determine a single sum distribution on plan termination.

(c) 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.

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

(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, including
bonuses, fees, commissions, and amounts deferred under Code Sections 401(k) and 125, but excluding
non- taxable fringe benefits provided by the Employer under its tax—qualified plans. 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.

 

1

 

(f) Early Retirement Date: The first day of the month which is prior to a
Participant’s Normal Retirement Date, but follows his attainment of age fifty-five (55), completion
of twenty (20) Years of Service, and his termination of employment from the Employer.

(g) Effective Date: July 25, 1991.

(h) Eligible Employee: A person employed by the Employer in the position of Executive
Vice President or above. 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.

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

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

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

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

(n) Plan: The American National Insurance Company Non—Qualified Retirement Plan, as
set forth herein, and as it may be amended from time to time.

(o) Plan Year: The twelve month period beginning on June 1 of each year and ending on
the subsequent May 31.

(p) Qualified Plan: The Retirement Plan for Home Office Non—Bargaining Unit Employees
of American National Insurance Company, as it may be amended from time-to-time.

(q) 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.

 

2

 

Service hereunder shall also include “Special Service” which is service as a Director (of the
Board of Directors of the Employer) not coterminous with service as an Employee. Regardless of
Hours of Service completed, such Special Service shall be granted for each completed month during
which such Special Service is performed. A Year of Service, for this purpose, shall therefore be
any twelve (12) months of Special 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.

ARTICLE II

ELIGIBILITY

2. 1 Eligibility Requirements

An Eligible Employee shall become a Participant hereunder as of the first day of the month
following the date the Employee completes one (1) Year of Service.

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, and all benefits accrued hereunder shall be paid from the general assets of the
Employer.

ARTICLE IV

BENEFITS UNDER THE PLAN

4.1 Normal Retirement Benefit

The benefit to be paid pursuant to this Plan to a Participant who retires at his Normal
Retirement Date shall be equal to a. less b., where:

(a) equals the benefit which would have been payable at the Participant’s Normal
Retirement Date under the Qualified Plan, based upon its terms as in effect at such Normal
Retirement Date, with the following adjustments: (i) without regard to limitations
applicable under Code Sections 401(a)(17) and 415, (ii) without taking into account any
minimum benefit provision that existed as Section 5.1(b) of the Qualified Plan as effective
on June 1, 1985, and as it may subsequently be amended, and (iii) including Special Service;
and

 

3

 

(b) equals the benefit which actually becomes payable under the terms of the Qualified
Plan at the Participant’s Normal Retirement Date.

The foregoing benefit shall be payable as of the Participant’s Normal Retirement Date, in
accordance with Article V hereof as to form and duration of payment.

4.2 Late Retirement Benefit

The benefit to be paid pursuant to this Plan to a Participant who retires after his Normal
Retirement Date shall be equal to a. less b., where:

(a) equals the Actuarial Equivalent of the benefit which would have been payable at the
Participant’s Normal Retirement Date under the Qualified Plan, based upon its terms as in
effect at such Normal Retirement Date, with the following adjustments: (i) without regard to
limitations applicable under Code Sections 401(a)(17) and 415, (ii) without taking into
account any minimum benefit provision that existed as Section 5.1(b) of the Qualified Plan
as effective on June 1, 1985, and as it may subsequently be amended, and (iii) including
Special Service; and

(b) equals the benefit which actually becomes payable under the terms of the Qualified
Plan at the Participant’s Late Retirement Date.

The foregoing benefit shall be payable as of the first day of the month following the
Participant’s termination of employment from the Employer, in accordance with Article V hereof as
to form and duration of payment.

4.3 Early Retirement Benefit

The benefit to be paid pursuant to this Plan to a Participant who retires before his Normal
Retirement Date shall be equal to a. less b., where:

(a) equals the benefit which would have been payable at the Participant’s Normal
Retirement Date under the Qualified Plan based upon its terms as in effect at the
Participant’s date of early retirement, without regard to limitations applicable under Code
Sections 401(a)(17) and 415, and including Special Service, 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 his employment
continued uninterrupted to his Normal Retirement Date, and

(b) equals the benefit which would be payable under the terms of the Qualified Plan if
his retirement under such plan were effective as of the same date.

 

4

 

The foregoing benefit shall be payable as of the Participant’s Early Retirement Date, in
accordance with Article V hereof as to form and duration of payment. 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 Early Retirement Date
precedes the Participant’s Normal Retirement Date, with such reduction interpolated between whole
years by completed months.

4.4 Benefit at Termination of Employment

The benefit to be paid pursuant to this Plan to a Participant who terminates his employment at
a time when he is not entitled to a Normal Retirement, Late Retirement, Early Retirement, or Death
Benefit shall be equal to a. less b., multiplied by c., where:

(a) equals the benefit which would have been payable at the Participant’s Normal
Retirement Date under the Qualified Plan based upon its terms as in effect at the
Participant’s date of termination, without regard to limitations applicable under Code
Sections 401(a)(17) and 415, and including Special Service, multiplied by a fraction, the
numerator of which is his years of Service as of his date of termination of employment with
the Employer, and the denominator of which is his years of Service he would have earned had
his employment continued uninterrupted to his Normal Retirement Date; and

(b) equals the benefit which would be payable under the terms of the Qualified Plan if
his retirement under such plan were effective as of the same date; and

(c) is a percentage based on the following:

	 	 	 	 	 
	Years of Service	 	Percent	 
	 
	Less than 3 years
	 	 	0	%
	3 years
	 	 	20	%
	4 years
	 	 	40	%
	5 years
	 	 	60	%
	6 years
	 	 	80	%
	7 years of more
	 	 	100	%

The foregoing benefit shall be payable as of the Participant’s Normal Retirement Date, unless
at his date of termination of employment with the Employer he had completed at least twenty (20)
years of Service, in which event it shall be payable as of the first day of the month coincident
with or following his fifty-fifth (55th) birthday, reduced in accordance with the provisions of
Section 4.3 hereof. The benefit shall be paid in accordance with Article V hereof as to form and
duration of payment.

 

5

 

4.5 Pre-Retirement Death Benefit

If a Participant dies while in the active service of the Employer, his Beneficiary shall be
entitled to receive the Actuarial Equivalent of his Accrued Benefit that would have been payable at
his Normal Retirement Date. Such benefit shall be payable 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 form and duration of payment.

If a Participant dies following his termination of employment at a time when he is entitled to
a deferred benefit under Section 4.4 hereof, his Beneficiary shall be entitled to receive the
Actuarial Equivalent of his vested Accrued Benefit that would have been payable at his Normal
Retirement Date. Such benefit shall be payable 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 form
and duration of payment.

ARTICLE V

DETERMINATION OF PAYMENT OF ACCOUNT

5.1 Form of Payment

A Participant or Beneficiary entitled to payment shall receive his vested Accrued Benefit
payable either (i) in the form of an annuity purchased from a commercial insurer, in a form as
available from such insurer, and based on the applicable market rates at that time, or (ii) in the
form of an Actuarially Equivalent single sum value. An election shall be made available, as of the
later of the date of execution of this Plan or the Participant’s date of participation, and such
election shall provide that payment of the Participant’s benefit, at whatever date it becomes
payable, shall be made in one of the two permitted forms. Further, such election shall allow such
Participants to elect to receive payment, notwithstanding any other provisions of this Plan, either
at the earlier of date of termination of employment from the Employer or Normal Retirement Date, or
the later of date of termination of employment from the Employer or Normal Retirement Date. The
election shall be provided only one time, shall be made in writing, and shall be irrevocable.

If an election of an annuity is made, the election of a specific form of payment under the
annuity contract shall be made in writing, at the time of election, and shall be irrevocable.

A Participant or Beneficiary entitled to payment in the form of an annuity shall at no time
have any ownership rights with respect to any annuity contract purchased by the Employer to satisfy
its liabilities under this Plan.

 

6

 

ARTICLE VI

MISCELLANEOUS

6.1 Administration of the Plan

The Plan shall be administered by the Employer. 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.

No amendment to the Plan will be effective to the extent that it has the effect of decreasing
a Participant’s accrued benefit.

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 full vesting of his Account, except as already
provided under the terms of Article IV hereof nor shall termination of the Plan decrease a
Participant’s vested accrued benefit.

6.4 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.

6.5 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.

6.6 Claims Procedure

(a) Any Participant, Beneficiary or their duly authorized representative may file a claim for
a Plan benefit to which the claimant believes he is entitled. A claim must be in writing and
delivered to the Employer in person or by certified mail, postage prepaid. Within ninety (90) days
after receipt of a claim, the Employer will send the claimant, by certified mail, postage prepaid,
notice of the granting or denying, in whole or in part of the claim, unless special circumstances
require the extension of time for processing the claim. In no event may the extension exceed ninety
(90) days from the end of the initial period. If an extension is necessary, the claimant will
receive a written notice prior to the expiration of the initial ninety (90) day period. The
Employer has full discretion to deny or grant a claim in whole or in part. If notice of
the denial of a claim is not furnished in accordance with this paragraph, the claim will be
deemed denied and the claimant will be permitted to exercise his right of review under
subparagraphs (C) and (d) hereunder.

 

7

 

(b) The Employer will provide to a claimant who is denied a claim for benefits written notice
setting forth in a manner calculated to be understood by the claimant: (i) the specific reason or
reasons for the denial; (ii) specific reference to pertinent Plan provisions on which the denial is
based; (iii) a description of any additional material or information necessary for the claimant to
correct the claim and an explanation of why such material is necessary; and (iv) an explanation of
the Plan’s claim review procedure.

(c) Within sixty (60) days after receipt by the claimant of written notice of the denial in
whole or in part of his claim, the claimant or his duly authorized representative, by written
application to the Employer in person or by certified mail, postage prepaid, may request a review
of such denial, may review pertinent documents, and may submit issues and comments in writing. Upon
receipt of the request for review the Employer will make a prompt decision on the review. The
decision on review will be written in a manner calculated to be understood by the claimant, and
will include specific reasons for decision and specific references to the pertinent Plan provisions
on which the decision is based. The decision on review will be made not later than sixty (60) days
after the Employer’s receipt of a request for a review, unless special circumstances require an
extension of time for processing, in which case a decision will be made not later than one hundred
twenty (120) days after receipt of a. request for review. If an extension is necessary the claimant
will be given written notice of the extension prior to expiration of the initial sixty (60) day
period. If notice of the decision On the review is not furnished in accordance with this paragraph,
the claim will be deemed denied and the claimant will be permitted to exercise his right to legal
remedy pursuant to paragraph (d) below.

(d) After exhaustion of the claims procedure as provided under this Plan, nothing will prevent
any person from pursuing any other legal remedy.

IN WITNESS WHEREOF and as conclusive evidence of the adoption of the foregoing instrument
comprising the American National Insurance Company Non-Qualified Retirement Plan, AMERICAN NATIONAL
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
 _____ 

day of
 _____, 19 _____.

	 	 	 	 	 
	ATTEST:	 	AMERICAN NATIONAL
INSURANCE COMPANY
	 
	 	 	 	 
	 

Secretary

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

8

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