exhibit10bv.htm


    EXHIBIT
10(bv)

    


    National Western Life
Insurance Company

    2008 SENIOR VICE PRESIDENT
BONUS PROGRAM

    


    


    The Bonus
Program (“Program”) is designed to reward selected senior vice president
officers of the Company for their performance in assisting the Company to
achieve pre-determined profit criteria. The Program incorporates one measurable
performance factor: overall Company profitability. Participants in the 2008
Program are Paul D. Facey, Chief Actuary; Patricia L. Scheuer, Chief Investment
Officer; Charles D. Milos, Mortgage Loans and Real Estate; and James P. Payne,
Secretary.

    


    The above
performance factor will have an assigned target level for purposes of the
Program. Assuming a “par” performance (i.e. achieving the desired target level),
the bonus (applied to base salary) is 10%.   Actual results
compared to the target may be less as explained in the following section.
However, the total bonus percentage cannot exceed 10% of base
salary.

    


    Company
Profitability:

    


    Company
profitability is based upon GAAP operating earnings as a percentage of beginning
stockholders’ equity. GAAP operating earnings are net of federal income taxes
and exclude realized gains and losses on investments. The amounts used for
purposes of the bonus calculation will be the figures audited by the Company’s
independent auditors.

    


    The bonus
percentage corresponding with the actual GAAP operating earnings achieved in
2008 relative to beginning of the year stockholders’ equity will be applied to
100% of each selected senior vice president’s base salary at the time of payment
in accordance with the following grid:

    


    
      
        	
                GAAP
      Profitability

              	
                Bonus
      %

              
	
                7.5%
      of Stockholders’ Equity

              	
                6.00%

              
	
                8.5%
      of Stockholders’ Equity

              	
                8.00%

              
	
                9.5%
      of Stockholders’ Equity

              	
                10.00%

              


      

    

    


    Example:

    


    
      	
              Ø  

            	
              GAAP
      operating
      earnings                                       $85,000,000

            


    

    


    
      	
              Ø  

            	
              Beginning
      GAAP stockholders’
      equity                $975,000,000

            


    

    


    Based
upon the above chart, the senior vice president’s 2008 bonus would be calculated
as follows:

    


    GAAP
operating earnings/ Beginning GAAP stockholders’ equity

    


    $85,000,000/$975,000,000
=    8.72%        Company
profitability bonus =    8.00%


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    Administration:

    


    Bonus
amounts under the Program will be earned and paid at the end of the Company’s
calendar year upon the availability of audited GAAP financial statements. The
Company’s independent auditors will also review the calculation of the bonus %
for compliance with the details of this Program as part of the Company’s audited
financial statements.

    


    If
employment with the Company is terminated for any reason other than “termination
for cause”, the bonus amount paid at termination will be based upon the pro
rated percentage of the calendar year that services were rendered to the
Company. In the event of death, the bonus amount will be paid to the
individual’s spouse, and if the individual’s spouse is also not living at that
time, then to the individual’s children.

    


    Participants
in the Program are designated by the Compensation Committee. The Program, its
terms, and its administration are at the complete discretion of the Compensation
Committee and may be changed or revoked at any time without the consent of the
participants. This includes, among other things, amendment of the terms,
targets, and other features of the Program as the Compensation Committee sees
fit. Accordingly, this Program does not constitute a legal and binding
obligation of the Company to perform.

    


    


    


    


    


    


    


    


    April
2008