National Western Life Insurance Company Retirement Bonus Program for Robert L. Moody

1.

Name . This bonus program shall be known as the National Western Life Insurance Company (the "Company") Retirement Bonus Program for Robert L. Moody (the "Program").

2.

Effective Date . The Program is effective as of January 1, 2005.

3.

Purpose . The Program is intended to provide current bonus compensation to Robert L. Moody, the Chairman of the Company (the "Chairman"), to reward him for contributing materially to the financial and strategic success of the Company and to provide a benefit in lieu of his participation in the Company's nonqualified deferred compensation plan. This Program is intended to be a payroll practice of the Company that is not subject to the Employee Retirement Income Security Act of 1974, as amended. Bonuses payable hereunder may not be deferred by the Chairman and shall not be considered deferred compensation under section 409A of the Internal Revenue Code of 1986, as amended (the "Code").

4.

Annual Bonus Award . For each calendar year on or after the Effective Date, the bonus payable to the Chairman under the Program shall be equal to two percent (2%) of his compensation from the Company for the calendar year that exceeds the applicable limitation under Code section 401(a)(17)(A), as adjusted in accordance with Code section 401(a)(17)(B). For this purpose, "compensation" shall be the total remuneration reported as taxable income on Internal Revenue Service Form W-2 or its subsequent equivalent; provided that "compensation" shall include director's fees; amounts deferred under Code sections 125, 132(f)(4), or 401(k); and nonqualified elective deferrals and further provided that "compensation" shall exclude reimbursements or other expense allowances, moving expenses, welfare benefits, imputed value of insurance, stock option income, commissions, bonuses, nonqualified retirement benefits, and any other extraordinary remuneration.

5.

Distributions of Awards . The bonus award for a year will be paid to the Chairman in the form of a single