X0303 5 2009-12-31 0 0 0 0000865058 NATIONAL SECURITY GROUP INC NSEC 0001250132 BROOKS FLEMING G 1 0 0 0 Common Stock 13550 D Phantom Stock Units 11.10 2010-02-15 5 J 0 29 11.1 A Phantom Stock Units 29 385 D The phantom stock units were awarded under the nonqualified deferred compensation plan in which directors could elect to defer their directors fees by receiving phantom stock units payable in cash upon separation from service from the board. The plan was frozen on 12/31/2004. These shares were acquired during the fiscal year pursuant to the dividend reinvestment component of the nonqualified deferred compensation plan which was frozen 12/31/2004. Upon separation from service from the Board, phantom stock units will be settled in cash at the then current market price of common stock. Pertains to phantom stock plan in which election to defer fees is not a reportable event under Section 16, however acquisitions of phantom stock pursuant to the election are reportable. These deferrals are exempt transactions for purposes of Section 16b-3(d). Brian R. McLeod, Attorney-in-fact 2010-02-16