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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
STATES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
D.C. 20549</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FORM
S-8</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="47%" style="BORDER-BOTTOM: black 0.5pt solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">National
      Western Life Insurance Company</font></div>
                </td>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="47%" style="PADDING-BOTTOM: 0.5pt">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Exact
      Name of Registrant as Specified in its Charter)</font></div>
                </td>
                <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
          </table>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td valign="top" width="31%" style="BORDER-BOTTOM: black 0.5pt solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Colorado</font></div>
                </td>
                <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="31%" style="BORDER-BOTTOM: black 0.5pt solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">84-0467208</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="31%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(State
      or Other Jurisdiction of</font></div>
                </td>
                <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="31%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(I.R.S.
      Employer</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="31%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Incorporation
      or Organization)</font></div>
                </td>
                <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="31%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Identification
      No.)</font></div>
                </td>
              </tr>
          </table>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="47%" style="BORDER-BOTTOM: black 0.5pt solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">850
      East Anderson Lane&#160;&#160;&#160;&#160;Austin,
      Texas&#160;&#160;&#160;&#160;78752-1602</font></div>
                </td>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="47%" style="PADDING-BOTTOM: 0.5pt">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Address
      of Principal Executive
      Offices)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(Zip
      Code)</font></div>
                </td>
                <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
          </table>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
        <div align="left">
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="47%" style="BORDER-BOTTOM: black 0.5pt solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">National
      Western Life Insurance Company 2008 Incentive Plan</font></div>
                </td>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="47%" style="PADDING-BOTTOM: 0.5pt">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Full
      Title of the Plan)</font></div>
                </td>
                <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
          </table>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div align="left">
            <table cellpadding="0" cellspacing="0" width="100%">
                <tr>
                  <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="47%" style="BORDER-BOTTOM: black 0.5pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">James
      P. Payne, 850 East Anderson Lane, Austin, Texas 78752-1602</font></div>
                  </td>
                  <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr>
                <tr>
                  <td valign="top" width="16%" style="PADDING-BOTTOM: 0.5pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td valign="top" width="47%" style="PADDING-BOTTOM: 0.5pt">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Name
      and Address of Agent for Service)</font></div>
                  </td>
                  <td valign="top" width="16%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr>
            </table>
          </div>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td valign="top" width="20%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="44%" style="BORDER-BOTTOM: black 0.5pt solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">512-836-1010</font></div>
                </td>
                <td valign="top" width="20%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td colspan="3" valign="top" width="84%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Telephone
      Number, Including Area Code, of Agent for
  Service</font></div>
                </td>
              </tr>
          </table>
        </div>
        <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.&#160;&#160;See the definitions of &#8220;large accelerated filer,&#8221;
&#8220;accelerated filer&#8221; and &#8220;smaller reporting company&#8221; in Rule 12b-2 of the
Exchange Act.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="57%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Large
      accelerated filer&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
              </td>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Accelerated
      filer&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">n</font></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="57%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-accelerated
      filer&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font> (Do not check if
      a smaller reporting company)</font></div>
              </td>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Smaller
      reporting company&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-FAMILY: wingdings">&#168;</font></font></div>
              </td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CALCULATION
OF REGISTRATION FEE</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      maximum</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Proposed
      maximum</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Title
      of securities</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      to be</font></div>
              </td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">offering
      price</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">aggregate
      offering</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Amount
      of</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">to
      be registered</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">registered</font></div>
              </td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">per
      share</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">price</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">registration
      fee*</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Class
      A&#160;&#160;&#160;&#160;&#160;&#160; </font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">300,000</font></div>
              </td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$247.37</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$74,211,000.00</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$2,916.49</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">$1.00
      Par Value</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Shares</font></div>
              </td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="bottom" width="15%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Common
      Stock</font></div>
              </td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
        </table>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*The fee
is&#160;$39.30 per $1,000,000 (.00003930) multiplied by&#160;the maximum
aggregate offering price as of September 2, 2008, which was the market value
average of the&#160;high and&#160;low price as of such date of the shares
registered.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Part
I</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
Required in Section 10(a) Prospectus</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
document is dated September 5, 2008, and constitutes part of a prospectus
covering securities that have been registered under the Securities Act of
1933.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Plan
Information</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="TEXT-DECORATION: underline">(a)&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="TEXT-DECORATION: underline">General Plan Information</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At its
February 22, 2008 meeting, Registrant&#8217;s Board of Directors adopted the National
Western Life Insurance Company 2008 Incentive Plan (the &#8220;Plan&#8221;), and the Plan
was approved by Registrant&#8217;s stockholders on June 20, 2008.&#160;&#160;The
purposes of the Plan are to promote the interests of the Company and its
subsidiaries and shareholders by enabling the Company to attract, motivate and
retain employees and directors by offering them performance-based stock
incentives and other equity interests in the Company and other incentive awards
that recognize the creation of value for the shareholders and promote the
Company&#8217;s long-term growth and success.&#160;&#160;To achieve these purposes,
eligible participants may receive stock options, stock appreciation rights,
restricted stock, performance awards, dividend equivalent rights and any other
awards, or any combination thereof, subject to the terms of the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
adoption of the Plan was part of the establishment of Registrant&#8217;s long-term
incentive programs.&#160;&#160;In structuring the Plan, the Board of Directors
sought to provide for a variety of awards that could be flexibly
administered.&#160;&#160;This flexibility will permit Registrant to keep pace
with changing developments in management compensation and make Registrant
competitive with those companies that offer creative incentives to attract and
keep key management employees.&#160;&#160;The Plan is designed to allow
Registrant to respond to changing circumstances such as changes in tax laws,
accounting rules, securities regulations, and other rules regarding benefit
plans.&#160;&#160;The Plan grants the Compensation and Stock Option Committee of
the Board of Directors (the &#8220;Committee&#8221;), which administers the Plan,
flexibility in creating the terms and restrictions deemed appropriate for
particular awards as facts and circumstances warrant.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
summary of the Plan which appears below is qualified in its entirety by
reference to the full text of the Plan, as documented in Exhibit
10.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Types of
Awards</font>.&#160;&#160;The Plan provides for the grant of any or all of the
following types of awards: (1) stock options for Registrant&#8217;s Class A, $1.00 par
value, common stock (&#8220;Common Stock&#8221;), including incentive stock options and
non-qualified stock options; (2) stock appreciation rights, in tandem with stock
options or freestanding; (3) restricted stock; (4) dividend equivalent rights;
(5) performance awards; and (6) other forms of awards consistent with the
purposes and restrictions of the Plan.&#160;&#160;Any stock option granted in
the form of an incentive stock option must satisfy the applicable requirements
of Section 422 of the Internal Revenue Code (&#8220;Code&#8221;).&#160;&#160;Awards may be
made to the same person on more than one occasion and may be granted singly, in
combination, or in tandem as determined by the Committee.&#160;&#160;For more
detail as to the awards, see (b) below.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Term</font>.&#160;&#160;The
Plan was effective as of June 20, 2008 after its approval by the Board of
Directors effective as of such date and its approval by shareholders at the
annual meeting of shareholders held on such date, and will terminate on June 19,
2018 unless earlier terminated by the Board of Directors.&#160;&#160;Termination
of the Plan will not affect awards made prior to termination, but awards will
not be made after termination.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Administration</font>.&#160;&#160;The
Plan is administered by the Committee, which is composed of non-management
members of the Registrant&#8217;s Board of Directors.&#160;&#160;The Committee is
elected annually by the Board of Directors, who are, in turn, elected annually
by the shareholders.&#160;&#160;None of the members of the Committee are
officers or employees of the Company or its subsidiaries.&#160;&#160;The
Committee acts as manager of the Plan, and the members may be replaced by
majority vote of the Board of Directors.&#160;&#160;Subject to the terms of and
consistent with the Plan, the Committee has authority (i) to select personnel to
receive awards, (ii) to determine the timing, form, amount or value, and terms
of grants and awards, and the conditions and restrictions, if any, subject to
which grants and awards will be made and become payable under the Plan (other
than non-discretionary stock options for non-employee Directors), (iii) to
construe the plan and to prescribe rules and regulations with respect to the
administration of the Plan, and (iv) to make such other determinations
authorized under the Plan as the Committee deems necessary or
appropriate.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Governing
Law</font>.&#160;&#160;Except to the extent that Federal law is controlling, the
validity, construction and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with the laws of the
State of Texas, without giving effect to the conflicts of laws principles
thereof.&#160;&#160;The Plan is not subject to the Employee Retirement Income
Security Act of 1974 (&#8220;ERISA&#8221;).&#160;&#160;The Plan is not qualified under
Section 401(a) of the Internal Revenue Code of 1986, as amended.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Award
Agreements</font>.&#160;&#160;Each award granted under the Plan shall be
evidenced by a written award agreement.&#160;&#160;Each such agreement shall be
subject to and incorporate, by reference or otherwise, the applicable terms and
conditions of the Plan, and any other terms and conditions, not inconsistent
with the Plan, as may be imposed by the Committee, including, without
limitation, provisions related to the consequences of termination of
employment.&#160;&#160;A copy of such agreement shall be provided to the
participant, and the Committee may, but need not, require that the participant
sign (or otherwise acknowledge receipt of) a copy of the agreement or a copy of
a notice of the grant.&#160;&#160;Each participant may be required, as a
condition to receiving an award under the Plan, to enter into an agreement with
the Company containing such non-compete, confidentiality, and/or
non-solicitation provisions as the Committee may adopt and approve from time to
time.&#160;&#160;The provisions of any such agreement may also be included in,
or incorporated by reference in, the written award agreement.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendment</font>.&#160;&#160;The
Board of Directors may at any time terminate or amend the Plan in any respect,
except that the Board may not, without approval of the stockholders of the
Company, amend the Plan so as to (i) increase the number of shares of Common
Stock which may be issued under the Plan (except for adjustments in the number
of shares permitted with respect to certain stock splits, stock dividends,
mergers, reorganizations, or recapitalizations as described under &#8220;Description
of Securities&#8221; below in Part II, Item 4) or change the option exercise price;
(ii) modify the requirements as to eligibility for participation; (iii)
materially increase the benefits accruing to participants under the Plan; or
(iv) extend the duration of the Plan beyond June 19, 2018.&#160;&#160;No
amendment or termination of the Plan shall, without the consent of the optionee
or participant in the Plan, alter or impair the rights of such person under any
options or other award theretofore granted under the Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
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          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Change of
Control</font>.&#160;&#160;In order to maintain all of the participants&#8217; rights
in the event of a change of control (as defined in the Plan), the Committee may
provide in an option agreement and/or stock appreciation rights agreement that
in the event of a change of control of the Company, (i) all or a portion of the
stock options and/or any stock appreciation rights awarded under such agreement
shall become fully vested and immediately exercisable, and/or (ii) the vesting
of all performance-based stock options shall be determined as if the performance
period or cycle applicable to such stock options had ended immediately upon such
Change of Control; provided, however, that if in the opinion of counsel to the
Company the immediate exercisability of options when taken into consideration
with all other &#8220;parachute payments&#8221; as defined in section 280G of the Code,
would result in an &#8220;excess parachute payment&#8221; as defined in such section as well
as an excise tax imposed by section 4999 of the Code, such options and any stock
appreciation rights shall become fully vested and immediately exercisable,
except as and to the extent the Committee in its sole discretion, shall
otherwise determine, which determination by the Committee shall be based solely
upon maximizing the after-tax benefits to be received by any such
optionee.&#160;&#160;If the Committee does not provide for accelerated vesting
in an option or stock appreciation rights agreement pursuant to this section,
such option and/or stock appreciation right shall vest, if at all, solely in
accordance with the terms of the agreement and the other terms of the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;Change
of Control&#8221; shall mean, after the effective date of the Plan, the occurrence of
any one or more of the events described below:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Any
&#8220;person,&#8221; as such term is used in sections 13(d) and 14(d) of the Exchange Act
(other than the Company, any trustee or other fiduciary holding securities under
any employee benefit plan of the Company, or any company owned, directly or
indirectly, by the shareholders in substantially the same proportions as their
ownership of stock of the Company), is or becomes the &#8220;beneficial owner&#8221; (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company&#8217;s then outstanding securities;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;During
any period of two (2) consecutive years, individuals who at the beginning of
such period constitute the Board cease for any reason to constitute at least a
majority thereof, unless the election by the Board or the nomination for
election by the shareholders was approved by a vote of at least two-thirds
(<font style="DISPLAY: inline;" face="Symbol">_</font>) of the directors
then still in office who either were directors at the beginning of the two (2)
year period or whose election or nomination for election was previously
approved;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
shareholders approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation that would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty percent (50%) of
the combined voting power of the voting securities of the surviving entity
outstanding immediately after such merger or consolidation; provided, however,
that a merger or consolidation effected to implement a reorganization in which
no &#8220;person&#8221; acquires more than twenty percent (20%) of the combined voting power
of the Company&#8217;s then outstanding securities shall not constitute a Change of
Control of the Company; or</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
shareholders approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially all
of the Company&#8217;s assets.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Adjustments Upon Changes in
Capitalization or Reorganization</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The value
of an award in shares, the number of shares available for issuance hereunder,
the number of shares issuable to directors , and the maximum number of shares
that may be awarded to a participant during a calendar year shall be adjusted
from time to time as follows:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject
to any required action by shareholders, the number of shares covered by each
outstanding award, the exercise price of such award, the shares available for
issuance as awards hereunder, the number of shares issuable to directors, and
the maximum number of shares that may be awarded to a participant during a
calendar year, shall be proportionately adjusted for any increase or decrease in
the number of issued shares of the Company resulting from a subdivision or
consolidation of shares or the payment of a stock dividend (but only in shares)
or any other increase or decrease in the number of shares affected without
receipt of consideration by the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Subject
to any required action by shareholders, if the Company shall be the surviving
corporation in any reorganization, merger or consolidation (or if the Company is
not the surviving corporation in such a transaction, but the transaction does
not constitute a change in control), each outstanding award shall pertain to and
apply to the securities to which a holder of the number of shares subject to the
award would have been entitled, and if a plan or agreement reflecting any such
event is in effect that specifically provides for the change, conversion or
exchange of shares, then any adjustment to shares or value relating to an award
hereunder shall not be inconsistent with the terms of any such plan or
agreement, and, in appropriate cases, corresponding proportionate adjustments
shall be made to the number of shares available for issuance hereunder, the
number of shares issuable to directors, and the maximum number of shares that
may be awarded to a participant during a calendar year.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
the event of a change in the shares of the Company as presently constituted,
which is limited to a change of par value into the same number of shares with a
different par value or without par value, the shares resulting from any such
change shall be deemed to be the shares within the meaning of the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To the
extent that the foregoing adjustments relate to stock or securities of the
Company, such adjustments shall occur automatically without any other required
action by the Board, the Committee, or any other person, provided that the Board
shall have the authority to make or confirm such adjustments, and its
determination in that regard shall be final, binding and
conclusive.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except as
heretofore expressly provided in the Plan, any person to whom an award is
granted shall have no rights by reason of any subdivision or consolidation of
stock of any class or the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class or by reason of any
dissolution, liquidation, reorganization, merger or consolidation or spin-off of
assets or stock of another corporation, and any issue by the Company of shares
of stock of any class, or securities convertible into shares of stock of any
class, shall not affect and no adjustment by reason thereof shall be made with
respect to, the number or exercise price of shares subject to an
award.&#160;&#160;The grant of an award pursuant to the Plan shall not affect in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell or
transfer all or any part of its business or assets.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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</font></div>
        </div>
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        </div>
        <div id="HDR">
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendment or Termination of
the Plan</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendment of the
Plan</font>.&#160;&#160;Notwithstanding anything contained in the Plan to the
contrary, all provisions of the Plan may at any time or from time to time be
modified or amended by the Board; provided, however, that</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;no
award at any time outstanding under the Plan may be modified, impaired or
canceled adversely to the holder of the award without the consent of such
holder;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;to
the extent required by section 422 of the Code to qualify stock options granted
hereunder as incentive stock options, any amendment which (i) increases the
maximum number of shares that may be issued through incentive stock options
(other than an increase merely reflecting a change in the number of outstanding
shares, such a stock dividend or stock split), (ii) modifies the individuals or
classes of individuals eligible to receive awards, (iii) changes the corporation
with respect to which &#8220;shares&#8221; are defined, or (iv) modifies the definition of
&#8220;Company&#8217; to refer to another entity (other than a successor to National Western
Life Insurance Company) must be approved by the shareholders within the
twenty-four (24) month period beginning twelve (12) months before the date the
amendment is adopted; and</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;to
the extent the Company is subject to the listing requirements of NASDAQ, as they
may be amended from time to time, any amendment which constitutes a material
revision of the Plan must be approved by the shareholders in accordance with and
to the extent required by such listing requirements.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Termination of the Plan;
Maximum Plan Term</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Board may suspend or terminate the Plan at any time, and such suspension or
termination may be retroactive or prospective.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
maximum term of the Plan shall be ten years from the initial effective date, and
no award may be granted on or after such tenth anniversary.&#160;&#160;However,
if the Plan is amended or restated and the Plan as so amended or restated is
approved by the shareholders, the Plan shall be deemed to be a new Plan, and the
date on which the amendment or restatement is adopted by the Board (or the date
of approval by the shareholders, if earlier) shall be substituted for the
initial effective date in the immediately preceding sentence of this subsection
(ii).</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
termination of the Plan shall not impair or affect any award previously granted
hereunder and the rights of the holder of the award shall remain in effect until
the award has been exercised in its entirety or has expired or otherwise has
been terminated in accordance with the terms of such award.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
        </div>
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          </div>
        </div>
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          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Amendments and adjustments
to awards</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Committee may amend, modify or terminate any outstanding award with the
participant&#8217;s consent at any time prior to payment or exercise in any manner not
inconsistent with the terms of the Plan, including, without limitation, to
change the date or dates as of which (i) an option becomes exercisable or (ii) a
performance-based award is deemed earned; provided, however, that the Committee
shall not amend or modify any award in any manner that is contrary to the
Plan.&#160;&#160;The Committee is authorized to made adjustments in the terms
and conditions of, and the criteria included in, awards in recognition of
unusual or non-recurring events affecting the Company, or the financial
statements of the Company or any affiliate, or of changes in applicable laws,
regulations or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent reduction or enlargement of
the benefits or potential benefits intended to be made available under the
Plan.&#160;&#160;Notwithstanding any provision of the Plan or any agreement
regarding an award to the contrary, the Committee may cause any award granted
(including an &#8220;underwater&#8221; award with an exercise or purchase price less than
the fair market value of any related shares as of the effective date of
Committee action) to be canceled in consideration of a cash payment or
alternative award made to the holder of such canceled award in an amount equal
to the value of such canceled award. The determinations of value under this
section shall be made by the Committee in its sole discretion.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
information about the Plan may be obtained from James P. Payne, Senior Vice
President and Corporate Secretary, National Western Life Insurance Company, 850
East Anderson Lane, Austin, Texas 78752-1602, telephone number
512-836-1010.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(b)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Securities to be
Offered</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Plan
provides a total of 300,000 shares of the Company's authorized but unissued
Class A Common, $1.00 par value, non-cumulative stock ("Common Stock") to be
made available for the awards under the Plan.&#160;&#160;The maximum number of
shares (or cash equivalent value) with respect to which stock option or stock
appreciation rights may be granted under the Plan to any one participant during
any single calendar year may not exceed 25,000 shares, subject to adjustment as
provided in the Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Company has authorized and outstanding two classes of Common Stock, Class A and
Class B.&#160;&#160;As of June 20, 2008, the number of Registrant's outstanding
Class A Common Stock shares was 3,425,966 and the number of outstanding Class B
Common Stock shares was 200,000.&#160;&#160;The Class A shares are publicly held
and traded, whereas the Class B shares are privately held and not publicly
traded.&#160;&#160;The Class A and Class B shares are alike in all respects
except that:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Class A Common Stock has the exclusive right to elect one-third (1/3) of the
total number of directors constituting the whole Board of Directors (treating
any fraction as an additional director) and the Class B Common Stock has the
exclusive right to elect the remaining directors.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
cash or in-kind dividends are without a fixed rate, non-cumulative and subject
to declaration by the Board of Directors, but any dividend that may be paid on
each share of Class A Common Stock must be twice the amount of any such dividend
that may be paid on each share of the Class B Common Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
the event of the dissolution or winding up of the corporation, whether voluntary
or involuntary, the assets shall be distributed among the Class A and Class B
stockholders in the following manner:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
        </div>
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        </div>
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          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
Class A stockholders shall first receive the $1.00 par value for each of the
Class A shares validly issued, held and outstanding;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
Class B stockholders shall then receive the $1.00 par value for each of the
Class B shares validly issued, held and outstanding;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
remaining assets of the Corporation shall then be divided and distributed to and
among the stockholders of all of the stock of the Corporation in proportion to
the number of shares of stock held by each such stockholder without preference
of any one class of stock over any other class.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
the event of any spin-off or distribution in-kind of the shares of a subsidiary
corporation of the Company, and which subsidiary corporation has only one class
of stock issued and outstanding, each share of Class B Common Stock shall
receive only one-half (&#189;) of the number of shares of the subsidiary corporation
as are to be received by each share of the Class A Common Stock; and, in the
event that such subsidiary corporation has two classes of stock which are
similar in rights and privileges to the Class A Common Stock and Class B Common
Stock of the Company described herein, then the Class A Common Stock shall
receive in-kind only that class of shares of the subsidiary corporation which is
similar to the Class A Common Stock shares, and the Class B Common Stock shares
shall receive in-kind only that class of shares of the subsidiary corporation
which is similar to the Class B Common Stock shares.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;One-half
(&#189;) of all shares entitled to vote on an issue constitutes a quorum at any
meeting of the shareholders, and an affirmative majority of those shares
represented at the meeting and entitled to vote on the subject matter
constitutes an act by that class of shareholders, unless a greater number of
shares is required by law.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cumulative
voting by shareholders is not permitted, and shareholders do not have preemptive
rights to subscribe to additional shares that may be offered by the
Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
issued shares are deemed fully paid and are non-assessable for any corporate
liabilities.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
provisions of Section 10-3-120 of the Colorado Insurance Code, and Section 16(b)
of the Securities Exchange Act of 1934, the receipt of any of the stock shares
under the Plan will be treated the same as the purchase of any other Class A
Common Shares of the Company, and such shares will be subject to the "insider
trading short-swing" profits liability tests imposed by such statutes upon any
purchase and sale, or any sale and purchase, of any Class A Common Shares of the
Company by the employee within any period of less than six months, and any
profits realized by such employee from any such transaction will inure to and be
recoverable by the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(c)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Employees Who May
Participate in the Plan</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
individual shall be eligible to participate in the Plan and receive awards
thereunder if the individual is an employee or director of the Company; provided
that incentive stock options may only be awarded to individuals who are
employees.&#160;&#160;In making any determination as to persons to whom awards
shall be granted, the type of award, and/or the number of shares to be covered
by the award, the Committee shall consider the position and responsibilities of
the participant; his or her importance to the Company and its subsidiaries; and
duties of such person; his or her past, present and potential contributions to
the growth and success of the Company and its subsidiaries; and such other
factors as the Committee shall deem relevant in connection with accomplishing
the purpose of the Plan.</font></div><br>
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        </div>
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        </div>
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(d)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Purchase of Securities
Pursuant to the Plan and Payment for Securities Offered</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Stock
Options</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grants.&#160;&#160;The
Committee may grant stock options alone or in addition to other awards granted
under the Plan to any participant.&#160;&#160;Each person so selected shall be
offered an option to purchase the number of shares determined by the
Committee.&#160;&#160;The Committee shall specify whether such option is an
incentive stock option or nonqualified stock option and any other terms and
conditions relating to such award, including whether the option is exercisable
for restricted stock rather than unrestricted shares.&#160;&#160;Each such
person so selected shall have a reasonable period of time within which to accept
or reject the offered option.&#160;&#160;Failure to accept within the period so
fixed by the Committee may be treated as a rejection.&#160;&#160;Each person who
accepts an option shall enter into a written agreement with the Company, in such
form as the Committee may prescribe, setting forth the terms and conditions of
the option (including the extent to which the option is an incentive stock
option or nonqualified stock option), consistent with the provisions of the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
the extent that any stock option does not qualify as an incentive stock option
(whether because of its provision or the time or manner of its exercise or
otherwise), such stock option or the portion thereof which does not qualify
shall automatically constitute a separate nonqualified stock option without any
further action and notwithstanding the original designation of the option as an
incentive stock option.&#160;&#160;Nothing in the Plan shall be interpreted as a
representation, guarantee, or other understanding on the part of the Company
that any particular option will be determined to be an incentive stock option
under Code section 422.&#160;&#160;At any time and from time to time, the
optionee and the Company may agree to modify an option agreement so that an
incentive stock option may be converted to a nonqualified stock
option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Committee may require that an optionee meet certain conditions before the option
or a portion thereof may vest or be exercised, as, for example, that the
optionee remain in the employ or active service of the Company for a stated
period or periods of time before the option, or stated portions thereof, may
vest or be exercised.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
addition to options granted at the discretion of the Committee to employees and
Directors, each current Director of the Company received on the date of adoption
of the Plan a non-discretionary option for 1,000 shares of Class A Common Stock
at the fair market value thereof on such date.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Option
Price</font>.&#160;&#160;The option exercise price of the shares covered by each
stock option shall be determined by the Committee, provided, however, that the
option exercise price shall not be less than the greater of (i) the par value of
such shares and (ii) one hundred percent (100%) of the fair market value of such
shares on the date of grant of the stock option.&#160;&#160;Subject to the
provisions of &#8220;Adjustments Upon Changes in Capitalization or Reorganization&#8221;
above, the exercise price of a stock option issued in accordance with the Plan
shall not be adjusted or amended following the issuance of such stock
option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
        </div>
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        </div>
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive Stock Options
Limitations</font>.&#160;&#160;(i) To the extent required to comply with
Internal Revenue Code section 422, in no event shall any person be granted
incentive stock options to the extent that the shares covered by such options
(and any incentive stock options granted under any other plans of the Company
and its subsidiaries) that may be exercised for the first time by such person in
any calendar year have an aggregate fair market value in excess of
$100,000.&#160;&#160;For this purpose, the fair market value of the shares shall
be determined as of the dates on which the incentive stock options are
granted.&#160;&#160;It is intended that the limitation on incentive stock
options provided in the Plan be the maximum limitation on options which may be
considered incentive stock options under the Code, and this subsection shall be
construed and applied in accordance with Code section 422.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Notwithstanding
anything herein to the contrary, in no event shall any participant owning more
than ten percent (10%) of the total combined voting power of the Company or any
subsidiary be granted an incentive stock option hereunder unless (1) the option
exercise price shall be at least one hundred ten percent (110%) of the fair
market value of the shares subject to such incentive stock option at the time
that the incentive stock option is granted, and (2) the term of such incentive
stock option shall not exceed five (5) years.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Option
Term</font>.&#160;&#160;Subject to item (2) above, the term of a stock option
shall be for such period of months or years from the date of its grant as may be
determined by the Committee; provided, however, that no stock option shall be
exercisable later than ten (10) years from the date of its grant.&#160;&#160;The
extent to which a stock option that is granted to a participant who is an
employee may be exercised by the participant or the participant&#8217;s designated
beneficiary after the participant&#8217;s termination of employment with the Company
and all subsidiaries (including by reason of death or disability) shall be
determined by the Committee and incorporated into the terms of the applicable
option agreement.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Vesting of Stock
Options</font>.&#160;&#160;Each stock option granted hereunder may only be
exercised to the extent that the optionee is vested in such
option.&#160;&#160;Each stock option shall vest separately in accordance with
the option vesting schedule, if any, determined by the Committee in its sole
discretion, which will be incorporated in the award agreement entered into
between the Company and each optionee and only to the extent that the optionee
remains in the continuous employ or service of the Company or a
subsidiary.&#160;&#160;The option vesting schedule will be accelerated if, in
the sole discretion of the Committee, the Committee determines that acceleration
of the option vesting schedule would be desirable for the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exercise of
Options</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stock
options may be exercised as to shares only in amounts and at intervals of time
specified in the written option agreement between the Company and the
optionee.&#160;&#160;Each exercise of a stock option, or any part thereof, shall
be evidenced by a written notice to the Company.&#160;&#160;The purchase price
of the shares as to which an option shall be exercised shall be paid in full at
the time of exercise.&#160;&#160;Without limiting the authority of the
Committee, the Company in its sole and absolute discretion and at or about the
time of exercise of a stock option may pay a bonus to the optionee or, to the
extent permitted by applicable law, make a loan available to the
optionee.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Formula Awards for
Directors</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
provisions of the Plan supersede the National Western Life Insurance Company
1995 Stock and Incentive Plan with respect to individuals who become directors
on or after the effective date of the Plan.&#160;&#160;No options shall be
granted to such directors under the prior plan after the effective date of the
Plan on June 20, 2008.</font></div><br>
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        </div>
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        </div>
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Each
director serving as of the close of the shareholders&#8217; meeting on the effective
date of the Plan on June 20, 2008 shall receive a nonqualified stock option to
purchase 1,000 shares.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;An
option awarded to directors pursuant to the Plan shall (1) have an exercise
price equal to 100% of the fair market value of the shares on the date of grant;
(2) not have tandem stock appreciation rights granted in connection therewith;
(3) have a maximum term of ten (10) years from the date of grant, subject to
early termination if the optionee ceases to be a director prior to the end of
such period; (4) cease to be exercisable after the date which is three (3)
months after the termination of such individual&#8217;s service as a director for any
reason other than death and which is four (4) months after the termination of
such individual&#8217;s service as a director due to death; (5) vest and become
exercisable at the rate of 20% of the total shares subject to the option on each
of the first five (5) anniversaries of the date of grant (subject to accelerated
vesting in accordance with the Plan; (6) have such other terms as are specified
by the Committee in the option agreement; and (7) be subject to other applicable
provisions of this section.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Stock Appreciation
Rights</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Grant
of Stock Appreciation Rights.&#160;&#160;The Committee may grant to any
participant either non-tandem stock appreciation rights or tandem stock
appreciation rights subject to such terms and conditions as the Committee shall
impose.&#160;&#160;A stock appreciation right shall entitle the holder, within
the specified exercise period, to exercise the stock appreciation right and
receive in exchange therefor a payment having an aggregate value equal to the
amount by which the fair market value of the share on the exercise date exceeds
the specified exercise price, times the number of shares with respect to which
the stock appreciation right is exercised.&#160;&#160;The Committee may provide
in the award agreement for automatic exercise on a certain date, for payment of
the proceeds on a certain date, for accelerated vesting and other rights upon
the occurrence of events specified in the award agreement, and/or for exercise
periods that do not begin until after a change in control or the occurrence of
such other event as the Committee may designate.&#160;&#160;Each stock
appreciation right grant shall be evidenced by an agreement that shall specify
the exercise price, the exercise period, the number of shares to which the stock
appreciation right pertains and such other provisions as the Committee shall
determine.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exercise
Period.&#160;&#160;Each stock appreciation shall expire and cease to be
exercisable at such time as the Committee shall determine at the time of grant;
provided, however, that no stock appreciation right shall be exercisable later
than the tenth (10th) anniversary of its grant date.&#160;&#160;If an award
agreement does not specify an expiration date, the stock appreciation right
shall expire on the 10th anniversary of its grant date, provided that the stock
appreciation right may expire earlier as provided in the award agreement or in
the Plan.&#160;&#160;The extent to which a stock appreciation right that is
granted to a participant who is an employee may be exercised by the participant
or the participant&#8217;s designated beneficiary after the participant&#8217;s termination
of employment with the Company and all subsidiaries (including by reason of
disability) shall be determined by the Committee and incorporated into the terms
of the applicable award agreement.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exercise
Price.&#160;&#160;The exercise price for each grant of a stock appreciation
right shall be determined by the Committee; provided, however, that the exercise
price for each share subject to a stock appreciation right shall not be less
than one hundred percent (100%) of the fair market value of a share on the date
of grant of the stock appreciation right (or, if greater, 100% of the exercise
price of the related stock option in the case of a tandem stock appreciation
right).&#160;&#160;The exercise price of a stock appreciation right shall not be
adjusted or amended following issuance.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Vesting
and Termination.&#160;&#160;Stock appreciation rights shall be subject to
acceleration of vesting or immediate termination in certain circumstances in the
same manner as stock options pursuant to the Plan.</font></div><br>
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</font></div>
        </div>
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        </div>
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Tandem Stock Appreciation
Rights</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A tandem
stock appreciation right shall entitle the holder of the related stock option,
within the period specified for the exercise of the stock option, to surrender
the unexercised stock option, or a portion thereof, and to receive in exchange
therefor a payment having an aggregate value equal to the amount by which the
fair market value of a share on the exercise date exceeds the stock option
exercise price per share, times the number of shares subject to the option, or
portion thereof, which is surrendered.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Each
tandem stock appreciation right shall be subject to the same terms and
conditions as the related stock option, including limitations on transferability
and vesting, and shall be exercisable only to the extent such option is
exercisable and shall terminate or lapse and cease to be exercisable when the
related option terminates or lapses.&#160;&#160;A tandem stock appreciation
right may be granted at the time of the grant of the related stock option or, if
the related stock option is a nonqualified stock option, at any time thereafter
during the term of the stock option.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A
tandem stock appreciation right granted in connection with an incentive stock
option (1) may be exercised at, and only at, the times and to the extent the
related incentive stock option is exercisable; (2) expires upon the termination
of the related incentive stock option; (3) may not exceed 100% of the difference
between the exercise price of the related incentive stock option and the fair
market value of the shares subject to the related incentive stock option at the
time the tandem stock appreciation right is exercised (and otherwise does not
have economic and tax consequences upon exercise that are more favorable than
exercise of the option followed by an immediate sale of the related shares); (4)
may be exercised at, and only at, such times as the fair market value of the
shares subject to the related incentive stock options exceeds the exercise price
of the related incentive stock option; and (5) may be transferred at, and only
at, the times and to the extent the related stock option is
transferable.&#160;&#160;If a tandem stock appreciation right is granted, there
shall be surrendered and canceled from the related option at the time of
exercise of the tandem stock appreciation right, in lieu of such exercise under
the related option, that number of shares as shall equal the number of shares as
to which the tandem stock appreciation right shall have been
exercised.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Payment</font>.&#160;&#160;The
Committee shall have sole discretion to determine in each award agreement
whether the payment with respect to the exercise of a stock appreciation right
will be in the form of all cash, shares, or any combination
thereof.&#160;&#160;In the event of the exercise of a stock appreciation right
payable in shares, the holder of the stock appreciation right shall receive that
number of whole shares of stock of the Company having an aggregate fair market
value on the date of exercise equal to the value obtained by multiplying (x) the
excess of the fair market value of a share on the date of exercise over the
exercise price for the stock appreciation right by (y) the number of shares as
to which the stock appreciation right is exercised.&#160;&#160;However,
notwithstanding the foregoing, the Committee, in its sole discretion, may place
a ceiling on the amount payable upon exercise of a stock appreciation right, but
any such limitation shall be specified at the time that the stock appreciation
right is granted.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">12 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exercise of Stock
Appreciation Rights</font>.&#160;&#160;All stock appreciation rights shall be
exercised automatically on the last day prior to the expiration date of the
stock appreciation right or, in the case of tandem stock appreciation rights,
any related stock option, so long as the fair market value of a share on that
date exceeds the exercise price per share of the stock appreciation right or any
related stock option, as applicable.&#160;&#160;A participant who receives a
stock appreciation right shall not have any of the rights of a shareholder with
respect to the shares covered by the right except, in the case of a stock
appreciation right settled in shares, to the extent that one or more
certificates representing such shares shall have been delivered to the
participant, or the participant has been determined to be a shareholder of
record by the Company&#8217;s transfer agent, upon due exercise of the
right.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Restricted
Stock</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Grants.</font>&#160;&#160;The
committee may grant awards of restricted stock for no cash consideration, for
such minimum consideration as may be required by applicable law, or for such
other consideration as may be specified by the grant. The terms and conditions
of the restricted stock shall be specified by the grant
agreement.&#160;&#160;The Committee, in its sole discretion, may specify any
particular rights which the person to whom an award of restricted stock is made
shall have in the restricted stock during the restriction period and the
restrictions applicable to the particular award, the vesting schedule (which may
be based on service, performance or other factors) and rights to acceleration of
vesting (including, without limitation, whether non-vested shares are forfeited
or vested upon termination of employment or service).&#160;&#160;Further, the
Committee may award performance-based restricted stock by conditioning the grant
or vesting or such other factors, such as the release, expiration or lapse of
restrictions upon any such award (including the acceleration of any such
conditions or terms) of such restricted stock, upon the attainment of specified
performance goals or such other factors as the Committee may
determine.&#160;&#160;The Committee shall also determine when the restrictions
shall lapse or expire and the conditions, if any, under which the restricted
stock will be forfeited or sold back to the Company.&#160;&#160;Each award of
restricted stock may have different restrictions and conditions.&#160;&#160;The
Committee, in its discretion, may prospectively change the restriction period
and the restrictions applicable to any particular award of restricted
stock.&#160;&#160;Unless otherwise set forth in the Plan, restricted stock may
not be disposed of by the recipient until the restrictions specified in the
award expire.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Awards and
Certificates</font>.&#160;&#160;Any restricted stock issued hereunder may be
evidenced in such manner as the Committee, in its sole discretion, shall deem
appropriate including, without limitation, book-entry registration or issuance
of a stock certificate or certificates.&#160;&#160;In the event any stock
certificate is issued in respect of shares of restricted stock awarded
hereunder, such certificate shall bear an appropriate legend with respect to the
restrictions applicable to such award.&#160;&#160;The Company may retain, at its
option, the physical custody of any stock certificate representing any awards of
restricted stock during the restriction period or require that the restricted
stock be placed in escrow or trust, along with a stock power endorsed in blank,
until all restrictions are removed or expire.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Performance
Awards</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Grants</font>.&#160;&#160;A
performance award may consist of either or both, as the Committee may determine,
(i) &#8220;performance shares&#8221; or the right to receive shares, restricted stock or
cash of an equivalent value, or any combination thereof as the Committee may
determine, or (ii) &#8220;performance units,&#8221;&#8217; or the right to receive a fixed dollar
amount payable in cash, shares, restricted stock or any combination thereof, as
the Committee may determine.&#160;&#160;The Committee may grant performance
awards to any participant for no cash consideration, for such minimum
consideration as may be required by applicable law or for such other
consideration as may be specified at the time of the grant.&#160;&#160;The terms
and conditions of performance awards shall be specified at the time of the grant
and may include provisions establishing the performance period, the performance
criteria to be achieved during a performance period, the criteria used to
determine vesting (including the acceleration thereof), whether performance
awards are forfeited or vest upon termination of employment or service during a
performance period and the maximum or minimum settlement values.&#160;&#160;Each
performance award shall have its own terms and conditions, which shall be
determined at the discretion of the Committee.&#160;&#160;If the Committee
determines, in its sole discretion, that the established performance measures or
objectives are no longer suitable because of a change in the Company&#8217;s business,
operations, corporate structure or for other reasons that the Committee deems
satisfactory, the Committee may modify the performance measures or objectives
and/or the performance period.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Terms and
Conditions</font>.&#160;&#160;Performance awards may be valued by reference to
the fair market value of a share or according to any formula or method deemed
appropriate by the Committee, in its sole discretion, including, but not limited
to, achievement of specific financial, production, sales, cost or earnings
performance objectives that the Committee believes to be relevant to the
Company&#8217;s business and for remaining in the employ or active service of the
Company for a specified period of time, or the Company&#8217;s performance or the
performance of its shares measured against the performance of the market, the
Company&#8217;s industry segment or its direct competitors.&#160;&#160;Performance
awards may be paid in cash, shares (including restricted stock) or other
consideration, or any combination thereof.&#160;&#160;If payable in shares, the
consideration for the issuance of the shares may be the achievement of the
performance objective established at the time of the grant of the performance
award.&#160;&#160;Performance awards may be payable in a single payment or in
installments and may be payable at a specified date or dates upon attaining the
performance objective, all at the Committee&#8217;s discretion.&#160;&#160;The extent
to which any applicable performance objection has been achieved shall be
conclusively determined by the Committee.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Dividend Equivalent
Rights</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Committee may grant a dividend equivalent right either as a component of another
award or as a separate award, and, in general, each such holder of a dividend
equivalent right that is outstanding on a dividend record date for the Company&#8217;s
Common Stock shall be credited with an amount equal to the cash or stock
dividends or other distributions that would have been received had the shares
covered by the award been issued and outstanding on the dividend record
date.&#160;&#160;The terms and conditions of the dividend equivalent right shall
be specified by the grant.&#160;&#160;Dividend equivalents credited to the
holder of a dividend equivalent right may be paid currently or may be deemed to
be reinvested in additional shares (which may thereafter accrue additional
dividend equivalent rights).&#160;&#160;Any such reinvestment shall be at the
fair market value of the shares at the time thereof.&#160;&#160;Dividend
equivalent rights may be settled in cash or shares, or a combination thereof, in
a single payment or in installments.&#160;&#160;A dividend equivalent right
granted as a component of another award may provide that such dividend
equivalent right shall be settled upon exercise, settlement, or payment for or
lapse of restrictions on such other award and that such dividend equivalent
right shall expire or be forfeited or annulled under the same conditions as such
other award.&#160;&#160;A dividend equivalent right granted as a component of
another award may also contain terms and conditions different from such other
award.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Other
Awards</font>.&#160;&#160;The Committee may grant to any participant other forms
of awards based upon, payable in or otherwise related to, in whole or in part,
shares of Common Stock, if the Committee in its sole discretion, determined that
such other form of award is consistent with the purposes and restrictions of the
Plan.&#160;&#160;The terms and conditions of such other form of award shall be
specific by the grant including, but not limited to, the price, if any, and the
vesting schedule, if any.&#160;&#160;Such awards may be granted for no cash
consideration, for such minimum consideration as may be required by applicable
law or for such other consideration as may be specified by the award agreement
evidencing the grant.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
shall be deemed to be issued under the Plan only to the extent actually issued
pursuant to an award.&#160;&#160;To the extent that an award lapses or is
forfeited prior to the issuance of the shares subject to such awards, any shares
subject to such award shall again be made available for grant.&#160;&#160;In the
event of any increases or decreases in the number of issued and outstanding
shares of Common Stock pursuant to stock splits, mergers, reorganizations,
recapitalizations, stock dividends, or other events described under the terms of
the Plan, the Committee shall make appropriate adjustments to the aggregate
number of shares available for issuance under the Plan and the number of shares
subject to outstanding grants or awards in the exercise price per share of
outstanding stock options and in the appreciation rights, restricted stock,
incentive and performance awards shall also be subject to adjustments by the
Committee to reflect changes in the Company's capitalization.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(e)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Resale
Restrictions</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Committee is authorized to determine the timing, form, amount or value, and
terms of grants and awards, and the conditions and restrictions, if any, subject
to which grants and awards will be made under the Plan (other than the
non-discretionary stock options for non-employee Directors).&#160;&#160;Once
awards are exercised and shares are received, there is no Plan restriction on
the resale of such shares.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(f)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Federal Income Tax
Consequences</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
federal income tax consequences, in general, of the plan are as
follows:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Non-Qualified
Options</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assuming
that the non-qualified options are not readily tradable and are not transferable
(which is generally the case), a participant will not recognize taxable income
and the Company will not be allowed a deduction at the time a non-qualified
option is granted. When a participant exercises a non-qualified option, the
difference between the option exercise price and any higher fair market value of
the Common Stock shares on the date of exercise will be treated as compensation
taxable as ordinary income to the participant and will be deductible by the
Company for federal income tax purposes. The participant&#8217;s tax basis for stock
acquired under a non-qualified option will be equal to the option exercise price
paid for such stock plus any amounts included in the participant&#8217;s income as
compensation. When a participant disposes of Common Stock shares acquired by the
exercise of a non-qualified option, any amount received in excess of the
participant&#8217;s tax basis for such shares will be treated as short-term or
long-term capital gain, depending upon how long the participant has held the
Common Stock shares. If the amount received is less than the participant&#8217;s tax
basis for such shares, the loss will be treated as short-term or long-term
capital loss, depending upon how long the participant has held the
shares.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Incentive Stock
Options</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
participant will not recognize taxable income at the time an incentive stock
option is granted. Generally, the exercise of an incentive stock option will not
result in any income tax consequences to a participant if the incentive stock
option is exercised by the participant during his employment or within a
specified period after termination of employment. However, the excess of the
fair market value of such shares as of the date of exercise over the option
exercise price is a tax preference item for purposes of determining a
participant&#8217;s alternative minimum tax. A participant who sells shares acquired
from the exercise of an incentive stock option after the expiration of (i) two
years from the date of grant of the incentive stock option, or (ii) one year
from the date of exercise of the incentive stock option will generally recognize
long term capital gain or loss on such sale. A participant who sells his
incentive stock option shares prior to the expiration of the waiting period
(referred to as a &#8220;Disqualifying Disposition&#8221;) generally will recognize taxable
ordinary income in the year of sale in an amount equal to the excess, if any, of
(a) the lesser of (i) the fair market value of such shares as of the date of
exercise or (ii) the amount realized on such sale, over (b) the option exercise
price. Any additional amount realized upon a Disqualifying Disposition would be
treated as a capital gain to the participant, short or long term, depending on
such participant&#8217;s holding period for the shares. If the shares are sold for
less than the option exercise price, the participant will not recognize any
ordinary income but will recognize a capital loss, short or long term, depending
on the holding period. Absent a Disqualifying Disposition, the Company will not
be entitled to a deduction either as a result of the grant of an incentive stock
option, the exercise of an incentive stock option, or the sale of incentive
stock option shares by the participant. If there is a Disqualifying Disposition
of incentive stock option shares, the Company will be able to deduct the amount
of taxable ordinary income recognized by the participant with respect to such
sale.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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</font></div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Special rule if option
exercise price is paid for in Common Stock shares</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If a
participant pays the exercise price of a non-qualified option with
previously-owned shares of the Company&#8217;s Common Stock and the transaction is not
a disqualifying disposition of stock previously acquired under an incentive
stock option, the Common Stock shares received equal to the number of Common
Stock shares surrendered are treated as having been received in a tax-free
(deferred) exchange. The participant&#8217;s tax basis and holding period for this
number of Common Stock shares received will be equal to the participant&#8217;s tax
basis and holding period for the Common Stock shares surrendered. The Common
Stock shares received in excess of the number of Common Stock shares surrendered
will be treated as compensation taxable as ordinary income to the participant to
the extent of their fair market value (and the Company will be allowed a
deduction to the same extent). The participant&#8217;s tax basis in these Common Stock
shares exceeding the number of shares surrendered will be equal to their fair
market value on the date of exercise, and the participant&#8217;s holding period for
such shares will begin on the day after the date of exercise.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To the
extent that the use of previously acquired Common Stock shares to pay the
exercise price of a non-qualified option constitutes a disqualifying disposition
of the stock previously acquired from exercise of an incentive stock option, the
participant will have ordinary income as a result of the disqualifying
disposition in an amount equal to the excess of the fair market value of the
Common Stock shares surrendered, determined at the time such stock was
originally acquired, over the aggregate option exercise price paid for such
stock. The other tax results from paying the exercise price with
previously-owned shares are as described above, except that the participant&#8217;s
tax basis in the Common Stock shares that are treated as having been received in
a tax-free exchange will be increased by the amount of ordinary income
recognized by the participant as a result of the disqualifying
disposition.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Stock Appreciation
Rights</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
participant will not recognize income and the Company will not be allowed a
deduction at the time a stock appreciation right is granted. When the
participant exercises a stock appreciation right, the amount of any cash
received plus the fair market value of any Common Stock shares or other property
received, as determined on the date of exercise, will be treated as compensation
taxable to the participant as ordinary income, and will be deductible by the
Company for federal income tax purposes. The participant&#8217;s tax basis for any
shares received will be equal to the fair market value of such shares on the
date of exercise, and the participant&#8217;s holding period for such shares will
begin on the day after the date of exercise.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Restricted
Stock</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless a
participant makes a Section 83(b) tax election as described below, the
participant receiving a grant of restricted stock that is subject to a
substantial risk of forfeiture will not recognize income, and the Company will
not be allowed a deduction, at the time the shares are granted. While the shares
remain subject to a substantial risk of forfeiture, the participant will
recognize ordinary compensation income equal to the amount of any dividends
received and the Company will be allowed a deduction in a like amount. When the
shares vest (cease to be subject to a substantial risk of forfeiture), the
excess of the fair market value of the shares on the vesting date over the
amount paid, if any, by the participant for the shares will be ordinary income
taxable to the participant, and will be deductible by the Company for federal
income tax purposes. Upon disposition of the shares, the gain or loss recognized
by the participant will be treated as capital gain or loss, and the capital gain
or loss will be short-term or long-term depending upon the period of time the
shares are held by the participant following the date of
vesting.</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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</font></div>
        </div>
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24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If the
participant so chooses, he may file a Section&#160;83(b) election with the
Internal Revenue Service within 30 days after the date of grant of restricted
stock. If the participant files such an election, he will recognize ordinary
taxable income on the date of grant (without regard to the fact that the shares
may be subject to a substantial risk of forfeiture) and his holding period for
the stock will commence on the day after that date. When the participant files a
Section 83(b) election, the amount of ordinary income recognized by the
participant and deductible by the Company will be equal to the excess of the
fair market value of the shares as of the date of grant over the amount paid, if
any, by the participant for the shares. If the election is made, the participant
will not recognize any income and the Company will not be allowed a deduction
when the restricted stock vests. Upon disposition of such restricted stock, the
gain or loss recognized by the participant will be treated as capital gain or
loss, and the capital gain or loss will be short-term or long-term depending
upon the period of time the shares are held by the participant following the
date of grant.&#160;&#160;If the election is made and the participant thereafter
forfeits his or her stock, no refund or deduction will be allowed for tax
purposes for the amount previously included in the participant&#8217;s
income.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Performance
Awards</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
participant who has been granted a performance award will not realize taxable
income at the time of grant, and the Company will not be entitled to a
corresponding deduction.&#160;&#160;Generally, the participant will recognize
ordinary compensation income at the time of distribution or payment under the
award in an amount equal to the amount of cash and the fair market value of any
Common Stock shares received.&#160;&#160;The Company will be entitled to a
corresponding deduction at such time.&#160;&#160;Payment under a performance
award may be delayed for six months to the extent required to comply with
Section 409A of the Internal Revenue Code.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Dividend Equivalent
Rights</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
participant will not recognize taxable income upon the grant of a dividend
equivalent right.&#160;&#160;When cash or Common Stock shares are paid or made
available pursuant to dividend equivalent right, the participant will recognize
ordinary compensation income and the Company will be allowed a deduction equal
to the amount of cash and the fair market value of the Common Stock shares so
paid or made available.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Federal and State Tax
Withholding</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Taxable
income recognized by an employee who is a participant upon the exercise,
transfer, or payment of an award is subject to withholding of federal and state
income tax at statutory rates and to withholding of the participant&#8217;s share of
any employment taxes due under the Federal Insurance Contribution Act (FICA) and
the Federal Unemployment Tax Act (FUTA). Because the withholding requirement
applies only to employees, a non-employee participating in the plan (for
example, a non-employee director) who exercises an award generally is not
subject to tax withholding.&#160;&#160;Ordinary income recognized upon the
Disqualifying Disposition of an incentive stock option is not subject
to&#160;&#160;federal income tax withholding or FICA or FUTA taxes.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
satisfy tax withholding requirements, the Company has the right to require that,
as a condition to delivery of any certificate for Common Stock shares, the
participant remit to the Company an amount sufficient to satisfy the withholding
requirements.&#160;&#160;The Company may also withhold Common Stock shares that
are otherwise payable or transferable to the participant and that have a fair
market value equal to the participant&#8217;s tax withholding liability.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
        </div>
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24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Withholding
does not represent an increase in the participant&#8217;s total income tax obligation,
since it is fully credited toward his or her tax liability for the year.
Additionally, withholding does not affect the participant&#8217;s tax basis in the
Common Stock shares. Compensation income realized and tax withheld will be
reflected on Forms W-2 supplied by the Company to employees by January 31 of the
succeeding year.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notwithstanding
the above, all tax consequences resulting from an award under the Plan shall be
the sole responsibility of the employee to whom the award is made and the
employee should seek independent tax advice.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(g)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Investment of
Funds</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
terms of the Plan there are no assets or funds to be invested under the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(h)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Withdrawal From the Plan;
Assignment of Interest</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except as
otherwise stated herein or as provided in the Plan, the Committee has the
authority under the Plan to establish the terms, conditions and restrictions as
to disposition of all shares to which an employee may be entitled upon the
occurrence of (i) death, (ii) retirement, (iii) resignation, (iv) permanent and
total disability, (v) layoff, or (vi) change in control of the
Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There is
no provision in the Plan to otherwise withdraw, terminate, assign or hypothecate
an employee's interest in the Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(i)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Forfeitures and
Penalties</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
employee forfeits his/her rights to non-vested shares by resignation or
termination for cause by the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">(j)</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Charges and Deductions and
Liens Therefor</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Plan
does not make charges or deductions against the participating employees, nor
does the plan provide for the creation of any lien upon the shares in the
Plan.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Registrant
Information and Employee Plan Annual Information</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
participants in the Plan may obtain without charge from the Registrant, upon
written or oral request, any of the documents referred to and incorporated by
reference in Item 3 of Part II of the Registration Statement, and such documents
are incorporated by reference in the Section 10(a) Prospectus.&#160;&#160;Also
available without charge, upon written or oral request, to the Plan participants
are (i) the Prospectus, Part I, and (ii) Registrant's annual report on Form 10-K
for its latest fiscal year, or for the fiscal year preceding the latest fiscal
year if the latest fiscal year ended within 120 days prior to the delivery of
the documents to the participant.&#160;&#160;Additional information about the
Plan may be obtained from James P. Payne, Senior Vice President and Corporate
Secretary, National Western Life Insurance Company, 850 East Anderson Lane,
Austin, Texas 78752-1602, telephone number 512-836-1010.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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</font></div>
        </div>
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</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Part
II</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
Required in the Registration Statement</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Incorporation
of Documents by Reference</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Registrant hereby incorporates by reference (i) Form 10-K, Annual Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
year ended December 31, 2007, (ii) Forms 10-Q, Quarterly Reports Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 for each of the
calendar quarters ended March 31 and June 30, 2008, (iii) all other reports
filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
since December 31, 2007, and (iv) all documents subsequently filed by Registrant
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act
of 1934, prior to filing of a post-effective amendment which indicates that all
securities offered by Registrant hereunder have been issued or which deregisters
all of such securities then remaining unsold, and all of such documents shall be
a part hereof from the date of filing of such documents.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Description
of Securities</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Plan
makes available a total of 300,000 shares of the Company's authorized but
unissued Class A Common, $1.00 par value, non-cumulative stock.&#160;&#160;The
Company has authorized and outstanding two classes of Common Stock, Class A and
Class B.&#160;&#160;The Class A shares are publicly held and traded, whereas the
Class B shares are privately held and not publicly traded.&#160;&#160;The Class
A and Class B shares are alike in all respects except that:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Class A Common Stock has the exclusive right to elect one-third (1/3) of the
total number of directors constituting the whole Board of Directors (treating
any fraction as an additional director) and the Class B Common stock has the
exclusive right to elect the remaining directors.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
cash or in-kind dividends are without fixed rate, non-cumulative and subject to
decision by the Board of Directors, but any dividend that may be paid on each
share of Class A Common Stock must be twice the amount of any such dividend that
may be paid on each share of the Class B Common Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
the event of the dissolution or winding up of the corporation, whether voluntary
or involuntary, the assets shall be distributed among the Class A and Class B
stockholders in the following manner:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
Class A stockholders shall first receive the $1.00 par value for each of the
Class A shares validly issued, held and outstanding;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
Class B stockholders shall then receive the $1.00 par value for each of the
Class B shares validly issued, held and outstanding;</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;the
remaining assets of the corporation shall then be divided and distributed to and
among the stockholders of all of the stock of the corporation in proportion to
the number of shares of stock held by each such stockholder without preference
of any one class of stock over any other class.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In
the event of any spin-off or distribution in-kind of the shares of a subsidiary
corporation of the Company, and which subsidiary corporation has only one class
of stock issued and outstanding, each share of Class B Common Stock shall
receive only one-half (&#189;) of the number of shares of the subsidiary corporation
as are to be received by each share of the Class A Common Stock; and, in the
event that such subsidiary corporation has two classes of stock which are
similar in rights and privileges to the Class A Common Stock and Class B Common
Stock of the Company described herein, then the Class A Common Stock shall
receive in-kind only that class of shares of the subsidiary corporation which is
similar to the Class A Common Stock, and the Class B Common Stock shall receive
in-kind only that class of shares of the subsidiary corporation which is similar
to the Class B Common Stock.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One-half
(&#189;) of all shares entitled to vote on an issue constitutes a quorum at any
meeting of the shareholders, and an affirmative majority of those shares
represented at the meeting and entitled to vote on the subject matter
constitutes an act by that class of shareholders, unless a greater number of
shares is required by law.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cumulative
voting by shareholders is not permitted, and shareholders do not have preemptive
rights to subscribe to additional shares that may be offered by the
Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
issued shares are deemed fully paid and are non-assessable for any corporate
liabilities.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under the
provisions of Section 10-3-120 of the Colorado Insurance Code, and Section 16(b)
of the Securities Exchange Act of 1934, the receipt of these stock shares under
the Plan will be treated the same as the purchase of any other Class A Common
Stock of the Company, and such shares will be subject to the "insider trading
short-swing" profits liability tests imposed by such statutes upon any purchase
and sale, or any sale and purchase, of any Class A Common Stock of the Company
by the employee within any period of less than six months, and any profits
realized by such employee from any such transaction will inure to and be
recoverable by the Company.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interests
of Named Experts and Counsel</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Indemnification
of Directors and Officers</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Bylaws of the Company provide indemnification of its officers and directors
against all judgments, fines, penalties, expenses and other similar liabilities
incurred by them in connection with any proceeding in which he/she is exposed to
such liabilities by reason of having served in such official capacity on behalf
of the Company, if such officer or director (i) acted in good faith, (ii)
reasonably believed his/her conduct was in the Company's best interest, and
(iii) had no reasonable cause to believe that his/her conduct was
unlawful.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exemption
from Registration Claimed</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No
restricted securities are being reoffered or resold pursuant to this
registration statement, and no exemption from registration is
claimed.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td colspan="3" valign="top" width="96%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">The
      following exhibits are attached hereto:</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td align="left" valign="top" width="12%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      4</font></div>
                </td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Instruments
      defining the rights of security holders, including the relevant portion of
      the Company's Articles of Incorporation.</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td align="left" valign="top" width="12%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      5</font></div>
                </td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Opinion
      of Heath, Davis &amp; McCalla, P.C. on legality.</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td align="left" valign="top" width="12%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      10</font></div>
                </td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">National
      Western Life Insurance Company 2008 Incentive Plan (incorporated by
      reference to Exhibit 10(e) to the Company&#8217;s Form 10-K for the year ended
      December 31, 2007).</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td align="left" valign="top" width="12%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      15</font></div>
                </td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">regarding
      Unaudited Interim Financial Information.&#160;&#160;Not
      applicable</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td align="left" valign="top" width="12%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      23</font></div>
                </td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Consent
      of KPMG LLP.</font></div>
                </td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              </tr>
              <tr>
                <td valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td align="left" valign="top" width="12%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibit
      24</font></div>
                </td>
                <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                <td valign="top" width="81%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Power
      of Attorney.&#160;&#160;None
used.</font></div>
                </td>
              </tr>
          </table>
        </div>
      </div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Undertakings</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
undersigned Registrant hereby undertakes:</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement, to include any material
information with respect to the plan of distribution not previously disclosed in
the registration statement or any material change to such information in the
registration statement.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;That,
for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Registrant's
annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934 (and, where applicable, each filing of an employee benefit plan's annual
report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may
be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable.&#160;&#160;In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23 of
24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signatures</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
Registrant.&#160;&#160;Pursuant to the requirements of the Securities Act of
1933, the Registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-8 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Austin, State of Texas, on August 22,
2008.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">NATIONAL WESTERN LIFE
INSURANCE COMPANY</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant)</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Act of 1933, this registration statement
has been signed by the following persons in the capacities and on the date
indicated.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      Robert L. Moody</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chairman
      of the Board and Director</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">August
      22, 2008</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Robert
      L. Moody</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      Ross R. Moody</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">President
      and Director</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">August
      22, 2008</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Ross
      R. Moody</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      Brian M. Pribyl</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Senior
      Vice President, Treasurer,</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">August
      22, 2008</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Brian
      Pribyl</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="bottom" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Financial Officer, and</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chief
      Administrative Officer</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="bottom" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      Stephen E. Glasgow</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">August
      22, 2008</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Stephen
      Glasgow</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      E. Douglas McLeod</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">August
      22, 2008</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">E.
      Douglas McLeod</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      Charles D. Milos Jr.</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">August
      22, 2008</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Charles
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              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td valign="top" width="26%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="35%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            </tr>
            <tr>
              <td align="left" valign="top" width="26%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/S/
      Frances A. Moody</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td align="left" valign="top" width="35%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Director</font></div>
              </td>
              <td valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="13%">
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nwlforms8.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
National
      Western Life Insurance Company
(Exact
      Name of Registrant as Specified in its Charter)
Colorado
84-0467208
(State
      or Other Jurisdiction of
(I.R.S.
      Employer
Incorporation
      or Organization)
Identification
      No.)
850
      East Anderson Lane    Austin,
      Texas    78752-1602
(Address
      of Principal Executive
      Offices)                     (Zip
      Code)
National
      Western Life Insurance Company 2008 Incentive Plan
Full
      Title of the Plan)
James
      P. Payne, 850 East Anderson Lane, Austin, Texas 78752-1602
(Name
      and Address of Agent for Service)
512-836-1010
Telephone
      Number, Including Area Code, of Agent for
  Service
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See the definitions of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large
      accelerated filer
¨
Accelerated
      filer
n
Non-accelerated
      filer
¨
(Do not check if
      a smaller reporting company)
Smaller
      reporting company
¨
CALCULATION
OF REGISTRATION FEE
Proposed
      maximum
Proposed
      maximum
Title
      of securities
Amount
      to be
offering
      price
aggregate
      offering
Amount
      of
to
      be registered
registered
per
      share
price
registration
      fee*
Class
      A
300,000
$247.37
$74,211,000.00
$2,916.49
$1.00
      Par Value
Shares
Common
      Stock
*The fee
is $39.30 per $1,000,000 (.00003930) multiplied by the maximum
aggregate offering price as of September 2, 2008, which was the market value
average of the high and low price as of such date of the shares
registered.
Part
I
Information
Required in Section 10(a) Prospectus
This
document is dated September 5, 2008, and constitutes part of a prospectus
covering securities that have been registered under the Securities Act of
1933.
Item
1.                      Plan
Information
(a)
General Plan Information
At its
February 22, 2008 meeting, Registrant's Board of Directors adopted the National
Western Life Insurance Company 2008 Incentive Plan (the "Plan"), and the Plan
was approved by Registrant's stockholders on June 20, 2008.  The
purposes of the Plan are to promote the interests of the Company and its
subsidiaries and shareholders by enabling the Company to attract, motivate and
retain employees and directors by offering them performance-based stock
incentives and other equity interests in the Company and other incentive awards
that recognize the creation of value for the shareholders and promote the
Company's long-term growth and success.  To achieve these purposes,
eligible participants may receive stock options, stock appreciation rights,
restricted stock, performance awards, dividend equivalent rights and any other
awards, or any combination thereof, subject to the terms of the
Plan.
The
adoption of the Plan was part of the establishment of Registrant's long-term
incentive programs.  In structuring the Plan, the Board of Directors
sought to provide for a variety of awards that could be flexibly
administered.  This flexibility will permit Registrant to keep pace
with changing developments in management compensation and make Registrant
competitive with those companies that offer creative incentives to attract and
keep key management employees.  The Plan is designed to allow
Registrant to respond to changing circumstances such as changes in tax laws,
accounting rules, securities regulations, and other rules regarding benefit
plans.  The Plan grants the Compensation and Stock Option Committee of
the Board of Directors (the "Committee"), which administers the Plan,
flexibility in creating the terms and restrictions deemed appropriate for
particular awards as facts and circumstances warrant.
The
summary of the Plan which appears below is qualified in its entirety by
reference to the full text of the Plan, as documented in Exhibit
10.
Types of
Awards
.  The Plan provides for the grant of any or all of the
following types of awards: (1) stock options for Registrant's Class A, $1.00 par
value, common stock ("Common Stock"), including incentive stock options and
non-qualified stock options; (2) stock appreciation rights, in tandem with stock
options or freestanding; (3) restricted stock; (4) dividend equivalent rights;
(5) performance awards; and (6) other forms of awards consistent with the
purposes and restrictions of the Plan.  Any stock option granted in
the form of an incentive stock option must satisfy the applicable requirements
of Section 422 of the Internal Revenue Code ("Code").  Awards may be
made to the same person on more than one occasion and may be granted singly, in
combination, or in tandem as determined by the Committee.  For more
detail as to the awards, see (b) below.
Term
.  The
Plan was effective as of June 20, 2008 after its approval by the Board of
Directors effective as of such date and its approval by shareholders at the
annual meeting of shareholders held on such date, and will terminate on June 19,
2018 unless earlier terminated by the Board of Directors.  Termination
of the Plan will not affect awards made prior to termination, but awards will
not be made after termination.
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24
Administration
.  The
Plan is administered by the Committee, which is composed of non-management
members of the Registrant's Board of Directors.  The Committee is
elected annually by the Board of Directors, who are, in turn, elected annually
by the shareholders.  None of the members of the Committee are
officers or employees of the Company or its subsidiaries.  The
Committee acts as manager of the Plan, and the members may be replaced by
majority vote of the Board of Directors.  Subject to the terms of and
consistent with the Plan, the Committee has authority (i) to select personnel to
receive awards, (ii) to determine the timing, form, amount or value, and terms
of grants and awards, and the conditions and restrictions, if any, subject to
which grants and awards will be made and become payable under the Plan (other
than non-discretionary stock options for non-employee Directors), (iii) to
construe the plan and to prescribe rules and regulations with respect to the
administration of the Plan, and (iv) to make such other determinations
authorized under the Plan as the Committee deems necessary or
appropriate.
Governing
Law
.  Except to the extent that Federal law is controlling, the
validity, construction and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with the laws of the
State of Texas, without giving effect to the conflicts of laws principles
thereof.  The Plan is not subject to the Employee Retirement Income
Security Act of 1974 ("ERISA").  The Plan is not qualified under
Section 401(a) of the Internal Revenue Code of 1986, as amended.
Award
Agreements
.  Each award granted under the Plan shall be
evidenced by a written award agreement.  Each such agreement shall be
subject to and incorporate, by reference or otherwise, the applicable terms and
conditions of the Plan, and any other terms and conditions, not inconsistent
with the Plan, as may be imposed by the Committee, including, without
limitation, provisions related to the consequences of termination of
employment.  A copy of such agreement shall be provided to the
participant, and the Committee may, but need not, require that the participant
sign (or otherwise acknowledge receipt of) a copy of the agreement or a copy of
a notice of the grant.  Each participant may be required, as a
condition to receiving an award under the Plan, to enter into an agreement with
the Company containing such non-compete, confidentiality, and/or
non-solicitation provisions as the Committee may adopt and approve from time to
time.  The provisions of any such agreement may also be included in,
or incorporated by reference in, the written award agreement.
Amendment
.  The
Board of Directors may at any time terminate or amend the Plan in any respect,
except that the Board may not, without approval of the stockholders of the
Company, amend the Plan so as to (i) increase the number of shares of Common
Stock which may be issued under the Plan (except for adjustments in the number
of shares permitted with respect to certain stock splits, stock dividends,
mergers, reorganizations, or recapitalizations as described under "Description
of Securities" below in Part II, Item 4) or change the option exercise price;
(ii) modify the requirements as to eligibility for participation; (iii)
materially increase the benefits accruing to participants under the Plan; or
(iv) extend the duration of the Plan beyond June 19, 2018.  No
amendment or termination of the Plan shall, without the consent of the optionee
or participant in the Plan, alter or impair the rights of such person under any
options or other award theretofore granted under the Plan.
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24
Change of
Control
.  In order to maintain all of the participants' rights
in the event of a change of control (as defined in the Plan), the Committee may
provide in an option agreement and/or stock appreciation rights agreement that
in the event of a change of control of the Company, (i) all or a portion of the
stock options and/or any stock appreciation rights awarded under such agreement
shall become fully vested and immediately exercisable, and/or (ii) the vesting
of all performance-based stock options shall be determined as if the performance
period or cycle applicable to such stock options had ended immediately upon such
Change of Control; provided, however, that if in the opinion of counsel to the
Company the immediate exercisability of options when taken into consideration
with all other "parachute payments" as defined in section 280G of the Code,
would result in an "excess parachute payment" as defined in such section as well
as an excise tax imposed by section 4999 of the Code, such options and any stock
appreciation rights shall become fully vested and immediately exercisable,
except as and to the extent the Committee in its sole discretion, shall
otherwise determine, which determination by the Committee shall be based solely
upon maximizing the after-tax benefits to be received by any such
optionee.  If the Committee does not provide for accelerated vesting
in an option or stock appreciation rights agreement pursuant to this section,
such option and/or stock appreciation right shall vest, if at all, solely in
accordance with the terms of the agreement and the other terms of the
Plan.
"Change
of Control" shall mean, after the effective date of the Plan, the occurrence of
any one or more of the events described below:
(i)                 Any
"person," as such term is used in sections 13(d) and 14(d) of the Exchange Act
(other than the Company, any trustee or other fiduciary holding securities under
any employee benefit plan of the Company, or any company owned, directly or
indirectly, by the shareholders in substantially the same proportions as their
ownership of stock of the Company), is or becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the
combined voting power of the Company's then outstanding securities;
(ii)                 During
any period of two (2) consecutive years, individuals who at the beginning of
such period constitute the Board cease for any reason to constitute at least a
majority thereof, unless the election by the Board or the nomination for
election by the shareholders was approved by a vote of at least two-thirds
(
_
) of the directors
then still in office who either were directors at the beginning of the two (2)
year period or whose election or nomination for election was previously
approved;
(iii)                 The
shareholders approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation that would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty percent (50%) of
the combined voting power of the voting securities of the surviving entity
outstanding immediately after such merger or consolidation; provided, however,
that a merger or consolidation effected to implement a reorganization in which
no "person" acquires more than twenty percent (20%) of the combined voting power
of the Company's then outstanding securities shall not constitute a Change of
Control of the Company; or
(iv)                 The
shareholders approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially all
of the Company's assets.
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24
Adjustments Upon Changes in
Capitalization or Reorganization
The value
of an award in shares, the number of shares available for issuance hereunder,
the number of shares issuable to directors , and the maximum number of shares
that may be awarded to a participant during a calendar year shall be adjusted
from time to time as follows:
(i)                 Subject
to any required action by shareholders, the number of shares covered by each
outstanding award, the exercise price of such award, the shares available for
issuance as awards hereunder, the number of shares issuable to directors, and
the maximum number of shares that may be awarded to a participant during a
calendar year, shall be proportionately adjusted for any increase or decrease in
the number of issued shares of the Company resulting from a subdivision or
consolidation of shares or the payment of a stock dividend (but only in shares)
or any other increase or decrease in the number of shares affected without
receipt of consideration by the Company.
(ii)                 Subject
to any required action by shareholders, if the Company shall be the surviving
corporation in any reorganization, merger or consolidation (or if the Company is
not the surviving corporation in such a transaction, but the transaction does
not constitute a change in control), each outstanding award shall pertain to and
apply to the securities to which a holder of the number of shares subject to the
award would have been entitled, and if a plan or agreement reflecting any such
event is in effect that specifically provides for the change, conversion or
exchange of shares, then any adjustment to shares or value relating to an award
hereunder shall not be inconsistent with the terms of any such plan or
agreement, and, in appropriate cases, corresponding proportionate adjustments
shall be made to the number of shares available for issuance hereunder, the
number of shares issuable to directors, and the maximum number of shares that
may be awarded to a participant during a calendar year.
(iii)                 In
the event of a change in the shares of the Company as presently constituted,
which is limited to a change of par value into the same number of shares with a
different par value or without par value, the shares resulting from any such
change shall be deemed to be the shares within the meaning of the
Plan.
To the
extent that the foregoing adjustments relate to stock or securities of the
Company, such adjustments shall occur automatically without any other required
action by the Board, the Committee, or any other person, provided that the Board
shall have the authority to make or confirm such adjustments, and its
determination in that regard shall be final, binding and
conclusive.
Except as
heretofore expressly provided in the Plan, any person to whom an award is
granted shall have no rights by reason of any subdivision or consolidation of
stock of any class or the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class or by reason of any
dissolution, liquidation, reorganization, merger or consolidation or spin-off of
assets or stock of another corporation, and any issue by the Company of shares
of stock of any class, or securities convertible into shares of stock of any
class, shall not affect and no adjustment by reason thereof shall be made with
respect to, the number or exercise price of shares subject to an
award.  The grant of an award pursuant to the Plan shall not affect in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell or
transfer all or any part of its business or assets.
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Amendment or Termination of
the Plan
Amendment of the
Plan
.  Notwithstanding anything contained in the Plan to the
contrary, all provisions of the Plan may at any time or from time to time be
modified or amended by the Board; provided, however, that
(i)                 no
award at any time outstanding under the Plan may be modified, impaired or
canceled adversely to the holder of the award without the consent of such
holder;
(ii)                 to
the extent required by section 422 of the Code to qualify stock options granted
hereunder as incentive stock options, any amendment which (i) increases the
maximum number of shares that may be issued through incentive stock options
(other than an increase merely reflecting a change in the number of outstanding
shares, such a stock dividend or stock split), (ii) modifies the individuals or
classes of individuals eligible to receive awards, (iii) changes the corporation
with respect to which "shares" are defined, or (iv) modifies the definition of
"Company' to refer to another entity (other than a successor to National Western
Life Insurance Company) must be approved by the shareholders within the
twenty-four (24) month period beginning twelve (12) months before the date the
amendment is adopted; and
(iii)                 to
the extent the Company is subject to the listing requirements of NASDAQ, as they
may be amended from time to time, any amendment which constitutes a material
revision of the Plan must be approved by the shareholders in accordance with and
to the extent required by such listing requirements.
Termination of the Plan;
Maximum Plan Term
(i)                 The
Board may suspend or terminate the Plan at any time, and such suspension or
termination may be retroactive or prospective.
(ii)                 The
maximum term of the Plan shall be ten years from the initial effective date, and
no award may be granted on or after such tenth anniversary.  However,
if the Plan is amended or restated and the Plan as so amended or restated is
approved by the shareholders, the Plan shall be deemed to be a new Plan, and the
date on which the amendment or restatement is adopted by the Board (or the date
of approval by the shareholders, if earlier) shall be substituted for the
initial effective date in the immediately preceding sentence of this subsection
(ii).
(iii)                 The
termination of the Plan shall not impair or affect any award previously granted
hereunder and the rights of the holder of the award shall remain in effect until
the award has been exercised in its entirety or has expired or otherwise has
been terminated in accordance with the terms of such award.
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Amendments and adjustments
to awards
The
Committee may amend, modify or terminate any outstanding award with the
participant's consent at any time prior to payment or exercise in any manner not
inconsistent with the terms of the Plan, including, without limitation, to
change the date or dates as of which (i) an option becomes exercisable or (ii) a
performance-based award is deemed earned; provided, however, that the Committee
shall not amend or modify any award in any manner that is contrary to the
Plan.  The Committee is authorized to made adjustments in the terms
and conditions of, and the criteria included in, awards in recognition of
unusual or non-recurring events affecting the Company, or the financial
statements of the Company or any affiliate, or of changes in applicable laws,
regulations or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent reduction or enlargement of
the benefits or potential benefits intended to be made available under the
Plan.  Notwithstanding any provision of the Plan or any agreement
regarding an award to the contrary, the Committee may cause any award granted
(including an "underwater" award with an exercise or purchase price less than
the fair market value of any related shares as of the effective date of
Committee action) to be canceled in consideration of a cash payment or
alternative award made to the holder of such canceled award in an amount equal
to the value of such canceled award. The determinations of value under this
section shall be made by the Committee in its sole discretion.
Additional
information about the Plan may be obtained from James P. Payne, Senior Vice
President and Corporate Secretary, National Western Life Insurance Company, 850
East Anderson Lane, Austin, Texas 78752-1602, telephone number
512-836-1010.
(b)
Securities to be
Offered
The Plan
provides a total of 300,000 shares of the Company's authorized but unissued
Class A Common, $1.00 par value, non-cumulative stock ("Common Stock") to be
made available for the awards under the Plan.  The maximum number of
shares (or cash equivalent value) with respect to which stock option or stock
appreciation rights may be granted under the Plan to any one participant during
any single calendar year may not exceed 25,000 shares, subject to adjustment as
provided in the Plan.
The
Company has authorized and outstanding two classes of Common Stock, Class A and
Class B.  As of June 20, 2008, the number of Registrant's outstanding
Class A Common Stock shares was 3,425,966 and the number of outstanding Class B
Common Stock shares was 200,000.  The Class A shares are publicly held
and traded, whereas the Class B shares are privately held and not publicly
traded.  The Class A and Class B shares are alike in all respects
except that:
(1)                 The
Class A Common Stock has the exclusive right to elect one-third (1/3) of the
total number of directors constituting the whole Board of Directors (treating
any fraction as an additional director) and the Class B Common Stock has the
exclusive right to elect the remaining directors.
(2)                 The
cash or in-kind dividends are without a fixed rate, non-cumulative and subject
to declaration by the Board of Directors, but any dividend that may be paid on
each share of Class A Common Stock must be twice the amount of any such dividend
that may be paid on each share of the Class B Common Stock.
(3)                 In
the event of the dissolution or winding up of the corporation, whether voluntary
or involuntary, the assets shall be distributed among the Class A and Class B
stockholders in the following manner:
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(i)                 the
Class A stockholders shall first receive the $1.00 par value for each of the
Class A shares validly issued, held and outstanding;
(ii)                 the
Class B stockholders shall then receive the $1.00 par value for each of the
Class B shares validly issued, held and outstanding;
(iii)                 the
remaining assets of the Corporation shall then be divided and distributed to and
among the stockholders of all of the stock of the Corporation in proportion to
the number of shares of stock held by each such stockholder without preference
of any one class of stock over any other class.
(4)                 In
the event of any spin-off or distribution in-kind of the shares of a subsidiary
corporation of the Company, and which subsidiary corporation has only one class
of stock issued and outstanding, each share of Class B Common Stock shall
receive only one-half (½) of the number of shares of the subsidiary corporation
as are to be received by each share of the Class A Common Stock; and, in the
event that such subsidiary corporation has two classes of stock which are
similar in rights and privileges to the Class A Common Stock and Class B Common
Stock of the Company described herein, then the Class A Common Stock shall
receive in-kind only that class of shares of the subsidiary corporation which is
similar to the Class A Common Stock shares, and the Class B Common Stock shares
shall receive in-kind only that class of shares of the subsidiary corporation
which is similar to the Class B Common Stock shares.
(5)                 One-half
(½) of all shares entitled to vote on an issue constitutes a quorum at any
meeting of the shareholders, and an affirmative majority of those shares
represented at the meeting and entitled to vote on the subject matter
constitutes an act by that class of shareholders, unless a greater number of
shares is required by law.
Cumulative
voting by shareholders is not permitted, and shareholders do not have preemptive
rights to subscribe to additional shares that may be offered by the
Company.
The
issued shares are deemed fully paid and are non-assessable for any corporate
liabilities.
Under the
provisions of Section 10-3-120 of the Colorado Insurance Code, and Section 16(b)
of the Securities Exchange Act of 1934, the receipt of any of the stock shares
under the Plan will be treated the same as the purchase of any other Class A
Common Shares of the Company, and such shares will be subject to the "insider
trading short-swing" profits liability tests imposed by such statutes upon any
purchase and sale, or any sale and purchase, of any Class A Common Shares of the
Company by the employee within any period of less than six months, and any
profits realized by such employee from any such transaction will inure to and be
recoverable by the Company.
(c)
Employees Who May
Participate in the Plan
An
individual shall be eligible to participate in the Plan and receive awards
thereunder if the individual is an employee or director of the Company; provided
that incentive stock options may only be awarded to individuals who are
employees.  In making any determination as to persons to whom awards
shall be granted, the type of award, and/or the number of shares to be covered
by the award, the Committee shall consider the position and responsibilities of
the participant; his or her importance to the Company and its subsidiaries; and
duties of such person; his or her past, present and potential contributions to
the growth and success of the Company and its subsidiaries; and such other
factors as the Committee shall deem relevant in connection with accomplishing
the purpose of the Plan.
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(d)
Purchase of Securities
Pursuant to the Plan and Payment for Securities Offered
Stock
Options
Grants.  The
Committee may grant stock options alone or in addition to other awards granted
under the Plan to any participant.  Each person so selected shall be
offered an option to purchase the number of shares determined by the
Committee.  The Committee shall specify whether such option is an
incentive stock option or nonqualified stock option and any other terms and
conditions relating to such award, including whether the option is exercisable
for restricted stock rather than unrestricted shares.  Each such
person so selected shall have a reasonable period of time within which to accept
or reject the offered option.  Failure to accept within the period so
fixed by the Committee may be treated as a rejection.  Each person who
accepts an option shall enter into a written agreement with the Company, in such
form as the Committee may prescribe, setting forth the terms and conditions of
the option (including the extent to which the option is an incentive stock
option or nonqualified stock option), consistent with the provisions of the
Plan.
(i)                 To
the extent that any stock option does not qualify as an incentive stock option
(whether because of its provision or the time or manner of its exercise or
otherwise), such stock option or the portion thereof which does not qualify
shall automatically constitute a separate nonqualified stock option without any
further action and notwithstanding the original designation of the option as an
incentive stock option.  Nothing in the Plan shall be interpreted as a
representation, guarantee, or other understanding on the part of the Company
that any particular option will be determined to be an incentive stock option
under Code section 422.  At any time and from time to time, the
optionee and the Company may agree to modify an option agreement so that an
incentive stock option may be converted to a nonqualified stock
option.
(ii)                 The
Committee may require that an optionee meet certain conditions before the option
or a portion thereof may vest or be exercised, as, for example, that the
optionee remain in the employ or active service of the Company for a stated
period or periods of time before the option, or stated portions thereof, may
vest or be exercised.
(iii)                 In
addition to options granted at the discretion of the Committee to employees and
Directors, each current Director of the Company received on the date of adoption
of the Plan a non-discretionary option for 1,000 shares of Class A Common Stock
at the fair market value thereof on such date.
Option
Price
.  The option exercise price of the shares covered by each
stock option shall be determined by the Committee, provided, however, that the
option exercise price shall not be less than the greater of (i) the par value of
such shares and (ii) one hundred percent (100%) of the fair market value of such
shares on the date of grant of the stock option.  Subject to the
provisions of "Adjustments Upon Changes in Capitalization or Reorganization"
above, the exercise price of a stock option issued in accordance with the Plan
shall not be adjusted or amended following the issuance of such stock
option.
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Incentive Stock Options
Limitations
.  (i) To the extent required to comply with
Internal Revenue Code section 422, in no event shall any person be granted
incentive stock options to the extent that the shares covered by such options
(and any incentive stock options granted under any other plans of the Company
and its subsidiaries) that may be exercised for the first time by such person in
any calendar year have an aggregate fair market value in excess of
$100,000.  For this purpose, the fair market value of the shares shall
be determined as of the dates on which the incentive stock options are
granted.  It is intended that the limitation on incentive stock
options provided in the Plan be the maximum limitation on options which may be
considered incentive stock options under the Code, and this subsection shall be
construed and applied in accordance with Code section 422.
(ii)                 Notwithstanding
anything herein to the contrary, in no event shall any participant owning more
than ten percent (10%) of the total combined voting power of the Company or any
subsidiary be granted an incentive stock option hereunder unless (1) the option
exercise price shall be at least one hundred ten percent (110%) of the fair
market value of the shares subject to such incentive stock option at the time
that the incentive stock option is granted, and (2) the term of such incentive
stock option shall not exceed five (5) years.
Option
Term
.  Subject to item (2) above, the term of a stock option
shall be for such period of months or years from the date of its grant as may be
determined by the Committee; provided, however, that no stock option shall be
exercisable later than ten (10) years from the date of its grant.  The
extent to which a stock option that is granted to a participant who is an
employee may be exercised by the participant or the participant's designated
beneficiary after the participant's termination of employment with the Company
and all subsidiaries (including by reason of death or disability) shall be
determined by the Committee and incorporated into the terms of the applicable
option agreement.
Vesting of Stock
Options
.  Each stock option granted hereunder may only be
exercised to the extent that the optionee is vested in such
option.  Each stock option shall vest separately in accordance with
the option vesting schedule, if any, determined by the Committee in its sole
discretion, which will be incorporated in the award agreement entered into
between the Company and each optionee and only to the extent that the optionee
remains in the continuous employ or service of the Company or a
subsidiary.  The option vesting schedule will be accelerated if, in
the sole discretion of the Committee, the Committee determines that acceleration
of the option vesting schedule would be desirable for the Company.
Exercise of
Options
Stock
options may be exercised as to shares only in amounts and at intervals of time
specified in the written option agreement between the Company and the
optionee.  Each exercise of a stock option, or any part thereof, shall
be evidenced by a written notice to the Company.  The purchase price
of the shares as to which an option shall be exercised shall be paid in full at
the time of exercise.  Without limiting the authority of the
Committee, the Company in its sole and absolute discretion and at or about the
time of exercise of a stock option may pay a bonus to the optionee or, to the
extent permitted by applicable law, make a loan available to the
optionee.
Formula Awards for
Directors
(i)                 The
provisions of the Plan supersede the National Western Life Insurance Company
1995 Stock and Incentive Plan with respect to individuals who become directors
on or after the effective date of the Plan.  No options shall be
granted to such directors under the prior plan after the effective date of the
Plan on June 20, 2008.
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(ii)                 Each
director serving as of the close of the shareholders' meeting on the effective
date of the Plan on June 20, 2008 shall receive a nonqualified stock option to
purchase 1,000 shares.
(iii)                 An
option awarded to directors pursuant to the Plan shall (1) have an exercise
price equal to 100% of the fair market value of the shares on the date of grant;
(2) not have tandem stock appreciation rights granted in connection therewith;
(3) have a maximum term of ten (10) years from the date of grant, subject to
early termination if the optionee ceases to be a director prior to the end of
such period; (4) cease to be exercisable after the date which is three (3)
months after the termination of such individual's service as a director for any
reason other than death and which is four (4) months after the termination of
such individual's service as a director due to death; (5) vest and become
exercisable at the rate of 20% of the total shares subject to the option on each
of the first five (5) anniversaries of the date of grant (subject to accelerated
vesting in accordance with the Plan; (6) have such other terms as are specified
by the Committee in the option agreement; and (7) be subject to other applicable
provisions of this section.
Stock Appreciation
Rights
(i)                 Grant
of Stock Appreciation Rights.  The Committee may grant to any
participant either non-tandem stock appreciation rights or tandem stock
appreciation rights subject to such terms and conditions as the Committee shall
impose.  A stock appreciation right shall entitle the holder, within
the specified exercise period, to exercise the stock appreciation right and
receive in exchange therefor a payment having an aggregate value equal to the
amount by which the fair market value of the share on the exercise date exceeds
the specified exercise price, times the number of shares with respect to which
the stock appreciation right is exercised.  The Committee may provide
in the award agreement for automatic exercise on a certain date, for payment of
the proceeds on a certain date, for accelerated vesting and other rights upon
the occurrence of events specified in the award agreement, and/or for exercise
periods that do not begin until after a change in control or the occurrence of
such other event as the Committee may designate.  Each stock
appreciation right grant shall be evidenced by an agreement that shall specify
the exercise price, the exercise period, the number of shares to which the stock
appreciation right pertains and such other provisions as the Committee shall
determine.
(ii)                 Exercise
Period.  Each stock appreciation shall expire and cease to be
exercisable at such time as the Committee shall determine at the time of grant;
provided, however, that no stock appreciation right shall be exercisable later
than the tenth (10th) anniversary of its grant date.  If an award
agreement does not specify an expiration date, the stock appreciation right
shall expire on the 10th anniversary of its grant date, provided that the stock
appreciation right may expire earlier as provided in the award agreement or in
the Plan.  The extent to which a stock appreciation right that is
granted to a participant who is an employee may be exercised by the participant
or the participant's designated beneficiary after the participant's termination
of employment with the Company and all subsidiaries (including by reason of
disability) shall be determined by the Committee and incorporated into the terms
of the applicable award agreement.
(iii)                 Exercise
Price.  The exercise price for each grant of a stock appreciation
right shall be determined by the Committee; provided, however, that the exercise
price for each share subject to a stock appreciation right shall not be less
than one hundred percent (100%) of the fair market value of a share on the date
of grant of the stock appreciation right (or, if greater, 100% of the exercise
price of the related stock option in the case of a tandem stock appreciation
right).  The exercise price of a stock appreciation right shall not be
adjusted or amended following issuance.
(iv)                 Vesting
and Termination.  Stock appreciation rights shall be subject to
acceleration of vesting or immediate termination in certain circumstances in the
same manner as stock options pursuant to the Plan.
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Tandem Stock Appreciation
Rights
A tandem
stock appreciation right shall entitle the holder of the related stock option,
within the period specified for the exercise of the stock option, to surrender
the unexercised stock option, or a portion thereof, and to receive in exchange
therefor a payment having an aggregate value equal to the amount by which the
fair market value of a share on the exercise date exceeds the stock option
exercise price per share, times the number of shares subject to the option, or
portion thereof, which is surrendered.
(i)                 Each
tandem stock appreciation right shall be subject to the same terms and
conditions as the related stock option, including limitations on transferability
and vesting, and shall be exercisable only to the extent such option is
exercisable and shall terminate or lapse and cease to be exercisable when the
related option terminates or lapses.  A tandem stock appreciation
right may be granted at the time of the grant of the related stock option or, if
the related stock option is a nonqualified stock option, at any time thereafter
during the term of the stock option.
(ii)                 A
tandem stock appreciation right granted in connection with an incentive stock
option (1) may be exercised at, and only at, the times and to the extent the
related incentive stock option is exercisable; (2) expires upon the termination
of the related incentive stock option; (3) may not exceed 100% of the difference
between the exercise price of the related incentive stock option and the fair
market value of the shares subject to the related incentive stock option at the
time the tandem stock appreciation right is exercised (and otherwise does not
have economic and tax consequences upon exercise that are more favorable than
exercise of the option followed by an immediate sale of the related shares); (4)
may be exercised at, and only at, such times as the fair market value of the
shares subject to the related incentive stock options exceeds the exercise price
of the related incentive stock option; and (5) may be transferred at, and only
at, the times and to the extent the related stock option is
transferable.  If a tandem stock appreciation right is granted, there
shall be surrendered and canceled from the related option at the time of
exercise of the tandem stock appreciation right, in lieu of such exercise under
the related option, that number of shares as shall equal the number of shares as
to which the tandem stock appreciation right shall have been
exercised.
Payment
.  The
Committee shall have sole discretion to determine in each award agreement
whether the payment with respect to the exercise of a stock appreciation right
will be in the form of all cash, shares, or any combination
thereof.  In the event of the exercise of a stock appreciation right
payable in shares, the holder of the stock appreciation right shall receive that
number of whole shares of stock of the Company having an aggregate fair market
value on the date of exercise equal to the value obtained by multiplying (x) the
excess of the fair market value of a share on the date of exercise over the
exercise price for the stock appreciation right by (y) the number of shares as
to which the stock appreciation right is exercised.  However,
notwithstanding the foregoing, the Committee, in its sole discretion, may place
a ceiling on the amount payable upon exercise of a stock appreciation right, but
any such limitation shall be specified at the time that the stock appreciation
right is granted.
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Exercise of Stock
Appreciation Rights
.  All stock appreciation rights shall be
exercised automatically on the last day prior to the expiration date of the
stock appreciation right or, in the case of tandem stock appreciation rights,
any related stock option, so long as the fair market value of a share on that
date exceeds the exercise price per share of the stock appreciation right or any
related stock option, as applicable.  A participant who receives a
stock appreciation right shall not have any of the rights of a shareholder with
respect to the shares covered by the right except, in the case of a stock
appreciation right settled in shares, to the extent that one or more
certificates representing such shares shall have been delivered to the
participant, or the participant has been determined to be a shareholder of
record by the Company's transfer agent, upon due exercise of the
right.
Restricted
Stock
Grants.
The
committee may grant awards of restricted stock for no cash consideration, for
such minimum consideration as may be required by applicable law, or for such
other consideration as may be specified by the grant. The terms and conditions
of the restricted stock shall be specified by the grant
agreement.  The Committee, in its sole discretion, may specify any
particular rights which the person to whom an award of restricted stock is made
shall have in the restricted stock during the restriction period and the
restrictions applicable to the particular award, the vesting schedule (which may
be based on service, performance or other factors) and rights to acceleration of
vesting (including, without limitation, whether non-vested shares are forfeited
or vested upon termination of employment or service).  Further, the
Committee may award performance-based restricted stock by conditioning the grant
or vesting or such other factors, such as the release, expiration or lapse of
restrictions upon any such award (including the acceleration of any such
conditions or terms) of such restricted stock, upon the attainment of specified
performance goals or such other factors as the Committee may
determine.  The Committee shall also determine when the restrictions
shall lapse or expire and the conditions, if any, under which the restricted
stock will be forfeited or sold back to the Company.  Each award of
restricted stock may have different restrictions and conditions.  The
Committee, in its discretion, may prospectively change the restriction period
and the restrictions applicable to any particular award of restricted
stock.  Unless otherwise set forth in the Plan, restricted stock may
not be disposed of by the recipient until the restrictions specified in the
award expire.
Awards and
Certificates
.  Any restricted stock issued hereunder may be
evidenced in such manner as the Committee, in its sole discretion, shall deem
appropriate including, without limitation, book-entry registration or issuance
of a stock certificate or certificates.  In the event any stock
certificate is issued in respect of shares of restricted stock awarded
hereunder, such certificate shall bear an appropriate legend with respect to the
restrictions applicable to such award.  The Company may retain, at its
option, the physical custody of any stock certificate representing any awards of
restricted stock during the restriction period or require that the restricted
stock be placed in escrow or trust, along with a stock power endorsed in blank,
until all restrictions are removed or expire.
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Performance
Awards
Grants
.  A
performance award may consist of either or both, as the Committee may determine,
(i) "performance shares" or the right to receive shares, restricted stock or
cash of an equivalent value, or any combination thereof as the Committee may
determine, or (ii) "performance units,"' or the right to receive a fixed dollar
amount payable in cash, shares, restricted stock or any combination thereof, as
the Committee may determine.  The Committee may grant performance
awards to any participant for no cash consideration, for such minimum
consideration as may be required by applicable law or for such other
consideration as may be specified at the time of the grant.  The terms
and conditions of performance awards shall be specified at the time of the grant
and may include provisions establishing the performance period, the performance
criteria to be achieved during a performance period, the criteria used to
determine vesting (including the acceleration thereof), whether performance
awards are forfeited or vest upon termination of employment or service during a
performance period and the maximum or minimum settlement values.  Each
performance award shall have its own terms and conditions, which shall be
determined at the discretion of the Committee.  If the Committee
determines, in its sole discretion, that the established performance measures or
objectives are no longer suitable because of a change in the Company's business,
operations, corporate structure or for other reasons that the Committee deems
satisfactory, the Committee may modify the performance measures or objectives
and/or the performance period.
Terms and
Conditions
.  Performance awards may be valued by reference to
the fair market value of a share or according to any formula or method deemed
appropriate by the Committee, in its sole discretion, including, but not limited
to, achievement of specific financial, production, sales, cost or earnings
performance objectives that the Committee believes to be relevant to the
Company's business and for remaining in the employ or active service of the
Company for a specified period of time, or the Company's performance or the
performance of its shares measured against the performance of the market, the
Company's industry segment or its direct competitors.  Performance
awards may be paid in cash, shares (including restricted stock) or other
consideration, or any combination thereof.  If payable in shares, the
consideration for the issuance of the shares may be the achievement of the
performance objective established at the time of the grant of the performance
award.  Performance awards may be payable in a single payment or in
installments and may be payable at a specified date or dates upon attaining the
performance objective, all at the Committee's discretion.  The extent
to which any applicable performance objection has been achieved shall be
conclusively determined by the Committee.
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Dividend Equivalent
Rights
The
Committee may grant a dividend equivalent right either as a component of another
award or as a separate award, and, in general, each such holder of a dividend
equivalent right that is outstanding on a dividend record date for the Company's
Common Stock shall be credited with an amount equal to the cash or stock
dividends or other distributions that would have been received had the shares
covered by the award been issued and outstanding on the dividend record
date.  The terms and conditions of the dividend equivalent right shall
be specified by the grant.  Dividend equivalents credited to the
holder of a dividend equivalent right may be paid currently or may be deemed to
be reinvested in additional shares (which may thereafter accrue additional
dividend equivalent rights).  Any such reinvestment shall be at the
fair market value of the shares at the time thereof.  Dividend
equivalent rights may be settled in cash or shares, or a combination thereof, in
a single payment or in installments.  A dividend equivalent right
granted as a component of another award may provide that such dividend
equivalent right shall be settled upon exercise, settlement, or payment for or
lapse of restrictions on such other award and that such dividend equivalent
right shall expire or be forfeited or annulled under the same conditions as such
other award.  A dividend equivalent right granted as a component of
another award may also contain terms and conditions different from such other
award.
Other
Awards
.  The Committee may grant to any participant other forms
of awards based upon, payable in or otherwise related to, in whole or in part,
shares of Common Stock, if the Committee in its sole discretion, determined that
such other form of award is consistent with the purposes and restrictions of the
Plan.  The terms and conditions of such other form of award shall be
specific by the grant including, but not limited to, the price, if any, and the
vesting schedule, if any.  Such awards may be granted for no cash
consideration, for such minimum consideration as may be required by applicable
law or for such other consideration as may be specified by the award agreement
evidencing the grant.
Shares
shall be deemed to be issued under the Plan only to the extent actually issued
pursuant to an award.  To the extent that an award lapses or is
forfeited prior to the issuance of the shares subject to such awards, any shares
subject to such award shall again be made available for grant.  In the
event of any increases or decreases in the number of issued and outstanding
shares of Common Stock pursuant to stock splits, mergers, reorganizations,
recapitalizations, stock dividends, or other events described under the terms of
the Plan, the Committee shall make appropriate adjustments to the aggregate
number of shares available for issuance under the Plan and the number of shares
subject to outstanding grants or awards in the exercise price per share of
outstanding stock options and in the appreciation rights, restricted stock,
incentive and performance awards shall also be subject to adjustments by the
Committee to reflect changes in the Company's capitalization.
(e)
Resale
Restrictions
The
Committee is authorized to determine the timing, form, amount or value, and
terms of grants and awards, and the conditions and restrictions, if any, subject
to which grants and awards will be made under the Plan (other than the
non-discretionary stock options for non-employee Directors).  Once
awards are exercised and shares are received, there is no Plan restriction on
the resale of such shares.
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(f)
Federal Income Tax
Consequences
The
federal income tax consequences, in general, of the plan are as
follows:
Non-Qualified
Options
Assuming
that the non-qualified options are not readily tradable and are not transferable
(which is generally the case), a participant will not recognize taxable income
and the Company will not be allowed a deduction at the time a non-qualified
option is granted. When a participant exercises a non-qualified option, the
difference between the option exercise price and any higher fair market value of
the Common Stock shares on the date of exercise will be treated as compensation
taxable as ordinary income to the participant and will be deductible by the
Company for federal income tax purposes. The participant's tax basis for stock
acquired under a non-qualified option will be equal to the option exercise price
paid for such stock plus any amounts included in the participant's income as
compensation. When a participant disposes of Common Stock shares acquired by the
exercise of a non-qualified option, any amount received in excess of the
participant's tax basis for such shares will be treated as short-term or
long-term capital gain, depending upon how long the participant has held the
Common Stock shares. If the amount received is less than the participant's tax
basis for such shares, the loss will be treated as short-term or long-term
capital loss, depending upon how long the participant has held the
shares.
Incentive Stock
Options
A
participant will not recognize taxable income at the time an incentive stock
option is granted. Generally, the exercise of an incentive stock option will not
result in any income tax consequences to a participant if the incentive stock
option is exercised by the participant during his employment or within a
specified period after termination of employment. However, the excess of the
fair market value of such shares as of the date of exercise over the option
exercise price is a tax preference item for purposes of determining a
participant's alternative minimum tax. A participant who sells shares acquired
from the exercise of an incentive stock option after the expiration of (i) two
years from the date of grant of the incentive stock option, or (ii) one year
from the date of exercise of the incentive stock option will generally recognize
long term capital gain or loss on such sale. A participant who sells his
incentive stock option shares prior to the expiration of the waiting period
(referred to as a "Disqualifying Disposition") generally will recognize taxable
ordinary income in the year of sale in an amount equal to the excess, if any, of
(a) the lesser of (i) the fair market value of such shares as of the date of
exercise or (ii) the amount realized on such sale, over (b) the option exercise
price. Any additional amount realized upon a Disqualifying Disposition would be
treated as a capital gain to the participant, short or long term, depending on
such participant's holding period for the shares. If the shares are sold for
less than the option exercise price, the participant will not recognize any
ordinary income but will recognize a capital loss, short or long term, depending
on the holding period. Absent a Disqualifying Disposition, the Company will not
be entitled to a deduction either as a result of the grant of an incentive stock
option, the exercise of an incentive stock option, or the sale of incentive
stock option shares by the participant. If there is a Disqualifying Disposition
of incentive stock option shares, the Company will be able to deduct the amount
of taxable ordinary income recognized by the participant with respect to such
sale.
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Special rule if option
exercise price is paid for in Common Stock shares
If a
participant pays the exercise price of a non-qualified option with
previously-owned shares of the Company's Common Stock and the transaction is not
a disqualifying disposition of stock previously acquired under an incentive
stock option, the Common Stock shares received equal to the number of Common
Stock shares surrendered are treated as having been received in a tax-free
(deferred) exchange. The participant's tax basis and holding period for this
number of Common Stock shares received will be equal to the participant's tax
basis and holding period for the Common Stock shares surrendered. The Common
Stock shares received in excess of the number of Common Stock shares surrendered
will be treated as compensation taxable as ordinary income to the participant to
the extent of their fair market value (and the Company will be allowed a
deduction to the same extent). The participant's tax basis in these Common Stock
shares exceeding the number of shares surrendered will be equal to their fair
market value on the date of exercise, and the participant's holding period for
such shares will begin on the day after the date of exercise.
To the
extent that the use of previously acquired Common Stock shares to pay the
exercise price of a non-qualified option constitutes a disqualifying disposition
of the stock previously acquired from exercise of an incentive stock option, the
participant will have ordinary income as a result of the disqualifying
disposition in an amount equal to the excess of the fair market value of the
Common Stock shares surrendered, determined at the time such stock was
originally acquired, over the aggregate option exercise price paid for such
stock. The other tax results from paying the exercise price with
previously-owned shares are as described above, except that the participant's
tax basis in the Common Stock shares that are treated as having been received in
a tax-free exchange will be increased by the amount of ordinary income
recognized by the participant as a result of the disqualifying
disposition.
Stock Appreciation
Rights
A
participant will not recognize income and the Company will not be allowed a
deduction at the time a stock appreciation right is granted. When the
participant exercises a stock appreciation right, the amount of any cash
received plus the fair market value of any Common Stock shares or other property
received, as determined on the date of exercise, will be treated as compensation
taxable to the participant as ordinary income, and will be deductible by the
Company for federal income tax purposes. The participant's tax basis for any
shares received will be equal to the fair market value of such shares on the
date of exercise, and the participant's holding period for such shares will
begin on the day after the date of exercise.
Restricted
Stock
Unless a
participant makes a Section 83(b) tax election as described below, the
participant receiving a grant of restricted stock that is subject to a
substantial risk of forfeiture will not recognize income, and the Company will
not be allowed a deduction, at the time the shares are granted. While the shares
remain subject to a substantial risk of forfeiture, the participant will
recognize ordinary compensation income equal to the amount of any dividends
received and the Company will be allowed a deduction in a like amount. When the
shares vest (cease to be subject to a substantial risk of forfeiture), the
excess of the fair market value of the shares on the vesting date over the
amount paid, if any, by the participant for the shares will be ordinary income
taxable to the participant, and will be deductible by the Company for federal
income tax purposes. Upon disposition of the shares, the gain or loss recognized
by the participant will be treated as capital gain or loss, and the capital gain
or loss will be short-term or long-term depending upon the period of time the
shares are held by the participant following the date of
vesting.
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If the
participant so chooses, he may file a Section 83(b) election with the
Internal Revenue Service within 30 days after the date of grant of restricted
stock. If the participant files such an election, he will recognize ordinary
taxable income on the date of grant (without regard to the fact that the shares
may be subject to a substantial risk of forfeiture) and his holding period for
the stock will commence on the day after that date. When the participant files a
Section 83(b) election, the amount of ordinary income recognized by the
participant and deductible by the Company will be equal to the excess of the
fair market value of the shares as of the date of grant over the amount paid, if
any, by the participant for the shares. If the election is made, the participant
will not recognize any income and the Company will not be allowed a deduction
when the restricted stock vests. Upon disposition of such restricted stock, the
gain or loss recognized by the participant will be treated as capital gain or
loss, and the capital gain or loss will be short-term or long-term depending
upon the period of time the shares are held by the participant following the
date of grant.  If the election is made and the participant thereafter
forfeits his or her stock, no refund or deduction will be allowed for tax
purposes for the amount previously included in the participant's
income.
Performance
Awards
A
participant who has been granted a performance award will not realize taxable
income at the time of grant, and the Company will not be entitled to a
corresponding deduction.  Generally, the participant will recognize
ordinary compensation income at the time of distribution or payment under the
award in an amount equal to the amount of cash and the fair market value of any
Common Stock shares received.  The Company will be entitled to a
corresponding deduction at such time.  Payment under a performance
award may be delayed for six months to the extent required to comply with
Section 409A of the Internal Revenue Code.
Dividend Equivalent
Rights
A
participant will not recognize taxable income upon the grant of a dividend
equivalent right.  When cash or Common Stock shares are paid or made
available pursuant to dividend equivalent right, the participant will recognize
ordinary compensation income and the Company will be allowed a deduction equal
to the amount of cash and the fair market value of the Common Stock shares so
paid or made available.
Federal and State Tax
Withholding
Taxable
income recognized by an employee who is a participant upon the exercise,
transfer, or payment of an award is subject to withholding of federal and state
income tax at statutory rates and to withholding of the participant's share of
any employment taxes due under the Federal Insurance Contribution Act (FICA) and
the Federal Unemployment Tax Act (FUTA). Because the withholding requirement
applies only to employees, a non-employee participating in the plan (for
example, a non-employee director) who exercises an award generally is not
subject to tax withholding.  Ordinary income recognized upon the
Disqualifying Disposition of an incentive stock option is not subject
to  federal income tax withholding or FICA or FUTA taxes.
To
satisfy tax withholding requirements, the Company has the right to require that,
as a condition to delivery of any certificate for Common Stock shares, the
participant remit to the Company an amount sufficient to satisfy the withholding
requirements.  The Company may also withhold Common Stock shares that
are otherwise payable or transferable to the participant and that have a fair
market value equal to the participant's tax withholding liability.
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Withholding
does not represent an increase in the participant's total income tax obligation,
since it is fully credited toward his or her tax liability for the year.
Additionally, withholding does not affect the participant's tax basis in the
Common Stock shares. Compensation income realized and tax withheld will be
reflected on Forms W-2 supplied by the Company to employees by January 31 of the
succeeding year.
Notwithstanding
the above, all tax consequences resulting from an award under the Plan shall be
the sole responsibility of the employee to whom the award is made and the
employee should seek independent tax advice.
(g)
Investment of
Funds
Under the
terms of the Plan there are no assets or funds to be invested under the
Plan.
(h)
Withdrawal From the Plan;
Assignment of Interest
Except as
otherwise stated herein or as provided in the Plan, the Committee has the
authority under the Plan to establish the terms, conditions and restrictions as
to disposition of all shares to which an employee may be entitled upon the
occurrence of (i) death, (ii) retirement, (iii) resignation, (iv) permanent and
total disability, (v) layoff, or (vi) change in control of the
Company.
There is
no provision in the Plan to otherwise withdraw, terminate, assign or hypothecate
an employee's interest in the Plan.
(i)
Forfeitures and
Penalties
An
employee forfeits his/her rights to non-vested shares by resignation or
termination for cause by the Company.
(j)
Charges and Deductions and
Liens Therefor
The Plan
does not make charges or deductions against the participating employees, nor
does the plan provide for the creation of any lien upon the shares in the
Plan.
Item
2.                      Registrant
Information and Employee Plan Annual Information
All
participants in the Plan may obtain without charge from the Registrant, upon
written or oral request, any of the documents referred to and incorporated by
reference in Item 3 of Part II of the Registration Statement, and such documents
are incorporated by reference in the Section 10(a) Prospectus.  Also
available without charge, upon written or oral request, to the Plan participants
are (i) the Prospectus, Part I, and (ii) Registrant's annual report on Form 10-K
for its latest fiscal year, or for the fiscal year preceding the latest fiscal
year if the latest fiscal year ended within 120 days prior to the delivery of
the documents to the participant.  Additional information about the
Plan may be obtained from James P. Payne, Senior Vice President and Corporate
Secretary, National Western Life Insurance Company, 850 East Anderson Lane,
Austin, Texas 78752-1602, telephone number 512-836-1010.
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Part
II
Information
Required in the Registration Statement
Item
3.                      Incorporation
of Documents by Reference
The
Registrant hereby incorporates by reference (i) Form 10-K, Annual Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the
year ended December 31, 2007, (ii) Forms 10-Q, Quarterly Reports Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 for each of the
calendar quarters ended March 31 and June 30, 2008, (iii) all other reports
filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
since December 31, 2007, and (iv) all documents subsequently filed by Registrant
pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act
of 1934, prior to filing of a post-effective amendment which indicates that all
securities offered by Registrant hereunder have been issued or which deregisters
all of such securities then remaining unsold, and all of such documents shall be
a part hereof from the date of filing of such documents.
Item
4.                      Description
of Securities
The Plan
makes available a total of 300,000 shares of the Company's authorized but
unissued Class A Common, $1.00 par value, non-cumulative stock.  The
Company has authorized and outstanding two classes of Common Stock, Class A and
Class B.  The Class A shares are publicly held and traded, whereas the
Class B shares are privately held and not publicly traded.  The Class
A and Class B shares are alike in all respects except that:
(a)                 The
Class A Common Stock has the exclusive right to elect one-third (1/3) of the
total number of directors constituting the whole Board of Directors (treating
any fraction as an additional director) and the Class B Common stock has the
exclusive right to elect the remaining directors.
(b)                 The
cash or in-kind dividends are without fixed rate, non-cumulative and subject to
decision by the Board of Directors, but any dividend that may be paid on each
share of Class A Common Stock must be twice the amount of any such dividend that
may be paid on each share of the Class B Common Stock.
(c)                 In
the event of the dissolution or winding up of the corporation, whether voluntary
or involuntary, the assets shall be distributed among the Class A and Class B
stockholders in the following manner:
(i)           the
Class A stockholders shall first receive the $1.00 par value for each of the
Class A shares validly issued, held and outstanding;
(ii)           the
Class B stockholders shall then receive the $1.00 par value for each of the
Class B shares validly issued, held and outstanding;
(iii)           the
remaining assets of the corporation shall then be divided and distributed to and
among the stockholders of all of the stock of the corporation in proportion to
the number of shares of stock held by each such stockholder without preference
of any one class of stock over any other class.
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(d)                 In
the event of any spin-off or distribution in-kind of the shares of a subsidiary
corporation of the Company, and which subsidiary corporation has only one class
of stock issued and outstanding, each share of Class B Common Stock shall
receive only one-half (½) of the number of shares of the subsidiary corporation
as are to be received by each share of the Class A Common Stock; and, in the
event that such subsidiary corporation has two classes of stock which are
similar in rights and privileges to the Class A Common Stock and Class B Common
Stock of the Company described herein, then the Class A Common Stock shall
receive in-kind only that class of shares of the subsidiary corporation which is
similar to the Class A Common Stock, and the Class B Common Stock shall receive
in-kind only that class of shares of the subsidiary corporation which is similar
to the Class B Common Stock.
One-half
(½) of all shares entitled to vote on an issue constitutes a quorum at any
meeting of the shareholders, and an affirmative majority of those shares
represented at the meeting and entitled to vote on the subject matter
constitutes an act by that class of shareholders, unless a greater number of
shares is required by law.
Cumulative
voting by shareholders is not permitted, and shareholders do not have preemptive
rights to subscribe to additional shares that may be offered by the
Company.
The
issued shares are deemed fully paid and are non-assessable for any corporate
liabilities.
Under the
provisions of Section 10-3-120 of the Colorado Insurance Code, and Section 16(b)
of the Securities Exchange Act of 1934, the receipt of these stock shares under
the Plan will be treated the same as the purchase of any other Class A Common
Stock of the Company, and such shares will be subject to the "insider trading
short-swing" profits liability tests imposed by such statutes upon any purchase
and sale, or any sale and purchase, of any Class A Common Stock of the Company
by the employee within any period of less than six months, and any profits
realized by such employee from any such transaction will inure to and be
recoverable by the Company.
Item
5.                      Interests
of Named Experts and Counsel
None.
Item
6.                      Indemnification
of Directors and Officers
The
Bylaws of the Company provide indemnification of its officers and directors
against all judgments, fines, penalties, expenses and other similar liabilities
incurred by them in connection with any proceeding in which he/she is exposed to
such liabilities by reason of having served in such official capacity on behalf
of the Company, if such officer or director (i) acted in good faith, (ii)
reasonably believed his/her conduct was in the Company's best interest, and
(iii) had no reasonable cause to believe that his/her conduct was
unlawful.
Item
7.                      Exemption
from Registration Claimed
No
restricted securities are being reoffered or resold pursuant to this
registration statement, and no exemption from registration is
claimed.
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Item
8.                      Exhibits
The
      following exhibits are attached hereto:
Exhibit
      4
Instruments
      defining the rights of security holders, including the relevant portion of
      the Company's Articles of Incorporation.
Exhibit
      5
Opinion
      of Heath, Davis & McCalla, P.C. on legality.
Exhibit
      10
National
      Western Life Insurance Company 2008 Incentive Plan (incorporated by
      reference to Exhibit 10(e) to the Company's Form 10-K for the year ended
      December 31, 2007).
Exhibit
      15
regarding
      Unaudited Interim Financial Information.  Not
      applicable
Exhibit
      23
Consent
      of KPMG LLP.
Exhibit
      24
Power
      of Attorney.  None
used.
Item
9.                      Undertakings
(a)                 The
undersigned Registrant hereby undertakes:
(i)           To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement, to include any material
information with respect to the plan of distribution not previously disclosed in
the registration statement or any material change to such information in the
registration statement.
(ii)           That,
for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
(iii)           To
remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the
offering.
(b)                 The
undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Registrant's
annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act
of 1934 (and, where applicable, each filing of an employee benefit plan's annual
report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
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(c)                 Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may
be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable.  In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
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Signatures
The
Registrant.  Pursuant to the requirements of the Securities Act of
1933, the Registrant certifies that it has reasonable grounds to believe that it
meets all of the requirements for filing on Form S-8 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Austin, State of Texas, on August 22,
2008.
NATIONAL WESTERN LIFE
INSURANCE COMPANY
(Registrant)
Pursuant
to the requirements of the Securities Act of 1933, this registration statement
has been signed by the following persons in the capacities and on the date
indicated.
/S/
      Robert L. Moody
Chairman
      of the Board and Director
August
      22, 2008
Robert
      L. Moody
/S/
      Ross R. Moody
President
      and Director
August
      22, 2008
Ross
      R. Moody
/S/
      Brian M. Pribyl
Senior
      Vice President, Treasurer,
August
      22, 2008
Brian
      Pribyl
Chief
      Financial Officer, and
Chief
      Administrative Officer
/S/
      Stephen E. Glasgow
Director
August
      22, 2008
Stephen
      Glasgow
/S/
      E. Douglas McLeod
Director
August
      22, 2008
E.
      Douglas McLeod
/S/
      Charles D. Milos Jr.
Director
August
      22, 2008
Charles
      D. Milos, Jr.
/S/
      Frances A. Moody
Director
August
      22, 2008
Frances
      A. Moody
/S/
      Russell S. Moody
Director
August
      22, 2008
Russell
      S. Moody
/S/
      Louis E. Pauls, Jr.
Director
August
      22, 2008
Louis
      E. Pauls, Jr.
/S/
      E.J. Pederson
Director
August
      22, 2008
E.J.
      Pederson
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