8-K

                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C.  20549



	                           FORM 8-K

	                       CURRENT REPORT
	            Pursuant to Section 13 or 15 (d) of the
	               Securities Exchange Act of 1934


             Date of Report (Date of earliest event reported):
                    February 27, 2006 (February 21, 2006)



	                       Thomas Nelson, Inc.
- -------------------------------------------------------------------------------
	        (Exact Name of Registrant as Specified in Charter)


      Tennessee                  1-13788                    62-0679364
- -------------------------------------------------------------------------------
  (State or other        (Commission File Number)        (I.R.S. Employer
  Jurisdiction of                                        Identification No.)
  Incorporation)


               501 Nelson Place
               Nashville, Tennessee                  37214-1000
- -------------------------------------------------------------------------------
              (Address of Principal                  (Zip Code)
                Executive Offices)

                                 Not Applicable
- -------------------------------------------------------------------------------
         (Former name or former address, if changed, since last report)


Registrant's telephone number, including area code:  615/889-9000

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[  ]  Written communications pursuant to Rule 425 under the Securities Act
      (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14.a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))




                              TABLE OF CONTENTS

Item 1.01.  Entry into a Material Definitive Agreement
Item 9.01.  Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EX 10.1.    Thomas Nelson, Inc. Discretionary Bonus Plan




Item 1.01.  Entry into a Material Definitive Agreement.

Discretionary Bonus Plan
- ------------------------

     On February 21, 2006, the Compensation Committee of the Board of Directors
of Thomas Nelson, Inc. (the "Compensation Committee") approved a Discretionary
Bonus Plan (the "Plan") as an employee incentive and retention program to help
retain the services of employees critical to the Company's success. The
Compensation Committee will administer the Plan.  Under the Plan, the
Compensation Committee has approved an aggregate of $494,000 in cash bonus
payments to the following three management employees:



                                   Bonus Payment Date
                                 -----------------------     Total Bonus
      Employee                   4/01/2006     4/01/2007       Payments
      ------------------------------------------------------------------
                                                     
      Mark Schoenwald             $ 95,000      $ 95,000      $190,000
      Tami Heim                    114,000       114,000       228,000
      Jerry Park                    38,000        38,000        76,000
      ------------------------------------------------------------------
      Totals                      $247,000      $247,000      $494,000



      Fifty percent of the bonus awards to each individual is to be paid on
April 1, 2006, with the remainder of such awards to be paid on April 1, 2007,
subject to the recipient's continued employment with the Company on a full-time
basis through the date of payment.

     The discretionary bonuses may be paid in addition to any other compensation
awards approved by the Compensation Committee, including cash incentives paid to
the Company's Named Executive Officers pursuant to the Company's annual cash
incentive program.

     The Plan is filed with this report as Exhibit 10.1 and is incorporated
herein by reference.

Item 9.01.  Financial Statements and Exhibits.

     (d) Exhibits.

         The following exhibits are filed with this Current Report on Form 8-K:

Exhibit No.       Description
- -----------       -----------

    10.1          Thomas Nelson, Inc. Discretionary Bonus Plan


                             SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                        THOMAS NELSON, INC.


                                   By: /s/ Joe L. Powers
                                       -----------------------------
                                   Name:   Joe L. Powers
                                   Title:  Executive Vice President,
                                           Secretary and Chief Financial Officer


Date:  February 27, 2006



                             EXHIBIT INDEX

Exhibit No.       Description
- -----------       -----------

    10.1          Thomas Nelson, Inc. Discretionary Bonus Plan

EX-10.1

                              EXHIBIT 10.1


                          THOMAS NELSON, INC.

                        DISCRETIONARY BONUS PLAN

                        I. PURPOSES OF THE PLAN

Section 1.01     Thomas Nelson, Inc. (the "Company") hereby establishes this
Discretionary Bonus Plan ("Plan") as an incentive program pursuant to which
discretionary or other retention-based bonuses may be awarded for one or more
fiscal years in order to retain the services of those employees critical to the
Company's financial success.

Section 1.02     The Company's compensation programs are designed to retain and
motivate employees through the delivery of competitive cash compensation each
year.  Accordingly, the Committee (as herein defined) as plan administrator
shall, with the assistance of the Company's management and such outside
compensation specialists as the Committee may deem appropriate, establish a
separate bonus pool to reward those employees who contribute significantly to
the Company's performance.  The bonus distribution will be targeted to those
employees considered essential to the Company's continued financial success who
would otherwise be vulnerable to competitor recruiting by offers of more
attractive compensation.


                     II. ADMINISTRATION OF THE PLAN

Section 2.01     The Plan is hereby adopted by the Company's Compensation
Committee (the "Committee") effective February 21, 2006.  It shall be
administered by the Committee.

Section 2.02     The Committee shall interpret the Plan and in connection
therewith may adopt rules and regulations for administering the Plan. Decisions
of the Committee shall be final and binding on all parties who have an interest
in the Plan.


                      III. DISCRETIONARY BONUS POOL

Section 3.01     In determining the amount of any discretionary bonus payment,
the Committee may consider objective factors such as Company performance or
performance of a particular segment of the Company's business.  In addition,
the Committee may consider factors such as individual performance,
responsibility and position with the Company, competitive compensation for like
positions in the industry, and any other factors the Committee deems relevant.
The bonus pool shall be in such dollar amount as the Committee deems appropriate
and shall be distributed to selected employees as an incentive for them to
remain in the Company's employ.


                    IV. DETERMINATION OF PARTICIPANTS

Section 4.01     Those individuals in the employ of the Company or any
subsidiary who are significant contributors to the continued and future success
of the Company's business shall be eligible to be selected to receive a
distribution from one or more of the bonus pools established over the term of
the Plan. The Company's Chief Executive Officer shall provide the Committee
with recommendations as to the employees who should receive bonus awards under
the Plan and the amount to be allocated to each designated employee. The
Committee shall have authority to accept, modify or reject such recommendations.
Alternatively, the Committee, in its sole discretion, may approve a pool of
dollars to be allocated by the CEO among employees rather than specific amounts
for each designated employee.  The Committee may also recommend bonus payments
under the Plan to the Company's Chief Executive Officer.  The Committee shall
have the ultimate discretion and authority to determine all participants and
bonus amounts.


                         V. PAYMENT OF BONUS AWARDS

Section 5.01     The individual bonus awarded to each employee will be paid in
two payments with 50% being paid on the last day of the fiscal year in which the
bonus grant is made (or, in the discretion of the Committee, on the first day of
the next fiscal year) and the balance paid on the following anniversary of the
initial payment.  A bonus award payment shall not be paid to any individual who
does not continue in the Company's employ on a full-time basis through the bonus
payment date. Accordingly, any remaining amount of bonus payable may be
forfeited if the employee is not employed by the Company on a full-time basis
prior to the full distribution of the award.  Any payment to which an employee
becomes entitled under the Plan shall be made in the form of a lump sum cash
distribution, subject to the Company's collection of all applicable federal and
state income and employment withholding taxes.

Section 5.02     Payments under the Plan will not be taken into account in
determining any other benefits of the Company.


                           VI. GENERAL PROVISIONS

Section 6.01     The Committee may at any time amend, suspend or terminate the
Plan. Neither the implementation of the Plan nor any amendment to the Plan shall
require shareholder approval.

Section 6.02     No bonuses awarded under the Plan shall actually be funded,
set aside or otherwise segregated prior to payment. The obligation to pay the
bonuses awarded hereunder shall at all times be an unfunded and unsecured
obligation of the Company.

Section 6.03     No Plan participant shall have the right to alienate, pledge
or encumber his/her interest in any bonus award payment to which he/she may
become entitled under the Plan, and such interest shall not (to the extent
permitted by law) be subject in any way to the claims of the employee's
creditors or to attachment, execution or other process of law.

Section 6.04     Neither the action of the Company in establishing the Plan,
nor any action taken under the Plan by the Committee, nor any provision of the
Plan shall be construed so as to grant any person the right to remain in the
employ of the Company or its subsidiaries for any period of specific duration.