EX-10.1



 Exhibit 10.1 
 TORCHMARK CORPORATION 
 2013 MANAGEMENT INCENTIVE PLAN 

(Effective as of January 1, 2013) 
  

	1.	Purpose. 

 The purpose of
the Plan is to enable the Company and its Subsidiaries to attract, retain, motivate and reward qualified officers and key employees by providing them with the opportunity to earn competitive compensation directly linked to the Company’s
performance. The Plan is also designed to assure that amounts paid pursuant to the Plan to certain officers of the Company will not fail to be deductible by the Company for Federal income tax purposes because of the limitations imposed by
Section 162(m). 
  

	2.	Definitions. 

 Unless the
context requires otherwise, the following words as used in the Plan shall have the meanings ascribed to each below, it being understood that masculine, feminine and neuter pronouns are used interchangeably and that each comprehends the others.

 (a) “Affiliate” means (i) the Company or any Subsidiary, or (ii) an entity that directly or through one
or more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee. 

(b) “Board” shall mean the Board of Directors of the Company. 

(c) “Bonus Pool” shall mean the bonus pool established each year by the Committee from which Participants in the Plan may be
paid bonuses. The total amount of the Bonus Pool for a given performance period is determined by taking a percentage of the Company’s pre-tax operating income for the performance period. Such percentage will be determined each year by the
Committee and will not exceed 3.0%. 
 (d) “Cause” as a reason for a Participant’s termination of employment
shall have the meaning assigned such term in the employment, severance or similar agreement, if any, between such Participant and the Company or an Affiliate, provided, however that if there is no such employment, severance or similar agreement in
which such term is defined, “Cause” shall mean any of the following acts by the Participant, as determined by the Committee or the Board: 
 (i) gross neglect of duty; 
 (ii) prolonged absence from duty
without the consent of the Company; 
 (iii) intentionally engaging in any activity that is in conflict with or
adverse to the business or other interests of the Company; or 
 (iv) willful misconduct, misfeasance or
malfeasance of duty which is reasonably determined to be detrimental to the Company. 
 (e) “Change in Control” means
and includes the occurrence of any one of the following events: 
 (i) The acquisition by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 25% or more of the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following


  
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acquisitions shall not constitute a Change in Control: (A) any acquisition by a Person who is on the Effective Date (as defined below) the beneficial owner of 25% or more of the Outstanding
Company Voting Securities, (B) any acquisition directly from the Company, (C) any acquisition by the Company, (D) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (E) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) of this definition; 

(ii) Individuals who, as of the date that this Plan is approved by the stockholders of the Company (the “Effective
Date”), constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or
nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board; 
 (iii) Consummation of a reorganization,
merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless following such Business Combination, (A) all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or
all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Voting
Securities, and (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 25% or more of the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of
the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business
Combination; or 
 (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of
the Company. 
 (f) “Code” shall mean the Internal Revenue Code of 1986, as amended. Any reference to a section of the
Code shall be deemed to include a reference to any regulations promulgated thereunder and any written interpretations issued by the Internal Revenue Service thereunder. 
 (g) “Committee” shall mean the Compensation Committee of the Board (or such other committee of the Board that the Board shall designate from time to time) or any subcommittee thereof comprised
of two or more directors each of whom is an “outside director” within the meaning of Section 162(m). 
 (h)
“Company” shall mean Torchmark Corporation, a Delaware corporation. 
 (i) “Covered Employee” shall have the
meaning set forth in Section 162(m). 
 (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as
amended, and any rules or regulations promulgated thereunder. 

  
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 (k) “Good Reason” (or a similar term denoting constructive termination) has the
meaning, if any, assigned such term in the employment, severance or similar agreement, if any, between a Participant and the Company or an Affiliate, provided, however that if there is no such employment, severance or similar agreement in which such
term is defined, “Good Reason” shall mean the occurrence of any of the following, without the express written consent of the Participant, after the occurrence of a Change in Control: 

(i)(A) the assignment to the Participant of any duties inconsistent in any material adverse respect with the
Participant’s position, authority or responsibilities immediately prior to the date of the Change in Control, or (B) any other material adverse change in such position, including authority or responsibilities; 

(ii) any failure by the surviving entity in the Change in Control to comply with any of the provisions of this Plan,
other than an insubstantial or inadvertent failure remedied by the Company promptly after receipt of notice thereof given by the Participant; 
 (iii) the Company’s requiring the Participant to be based, or to perform a substantial portion of his or her duties with the Company, at any office or location more than 20 miles from that location
at which he performed his or her services immediately prior to the date of the Change in Control, except for travel reasonably required in the performance of the Participant’s responsibilities; or 

(iv) any failure by the Company to obtain the assumption and agreement to perform this Plan by a successor as
contemplated by Section 6(a). 
 (l) “Named Executive Officers” shall have the meaning set forth in
Item 402(a)(3) of Regulation S-K promulgated under the Exchange Act. 
 (m) “Officer” shall mean any
“officer” (as such term is defined in Rule 16a-1(f) promulgated by the Securities and Exchange Commission under the Exchange Act) or Covered Employee. 
 (n) “Participant” shall mean each Officer or other key employee of the Company or a Subsidiary who is selected by the Committee to participate in the Plan. 

(o) “Plan” shall mean the Torchmark Corporation 2013 Management Incentive Plan, as set forth herein and as may be amended from
time to time. 
 (p) “Section 162(m)” shall mean Section 162(m) of the Code. 

(q) “Section 409A” shall mean Section 409A of the Code. 

(r) “Subsidiary(ies)” shall mean any entity of which the Company possesses directly or indirectly 50% or more of the total
combined voting power of all classes of stock of such entity. 
 (s) “2 1/2 Month Period” shall mean as soon as practical after award amounts are no longer subject to a substantial risk of forfeiture, but in no event later than the period ending on the later of the 15th day
of the third month following the end of the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture (as defined in Section 409A) or the 15th day of the third month following the end of
the Company’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture; unless otherwise required by Section 409A, an amount shall be considered no longer subject to a substantial risk of forfeiture
on the last day of the applicable calendar year for which a bonus is earned. 

  
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	3.	Administration. 

 The
Committee shall administer and interpret the Plan; provided, however, that in no event shall the Plan be interpreted in a manner which would cause any amount payable under the Plan to any Covered Employee to fail to qualify as
performance-based compensation under Section 162(m). The Committee shall establish the performance objectives for any calendar year in accordance with Section 4 and certify whether and to what extent such performance objectives have been
attained. Any determination made by the Committee under the Plan shall be final and conclusive. The Committee may employ such legal counsel, consultants and agents (including counsel or agents who are employees of the Company or a Subsidiary) as it
may deem desirable for the administration of the Plan and may rely upon any opinion received from any such counsel, consultant or agent and any computation received from such counsel, consultant or agent. All expenses incurred in the administration
of the Plan, including, without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company. No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation,
construction or determination made in connection with the Plan other than as a result of such individual’s willful misconduct. 
  

	4.	Bonuses. 

 (a)
Establishment of Performance Criteria and Objectives. No later than 90 days after the commencement of each calendar year (or such other date as may be required or permitted under Section 162(m)), the Committee shall establish in writing
the performance objective or objectives that must be satisfied in order for a Participant to receive a bonus for such year, provided that the outcome is substantially uncertain at the time the objectives are established and no more than 25% of the
measuring period of service has elapsed. Any such performance objectives shall be based upon the relative or comparative achievement of one or more of the following criteria, alone or in combination, which may be expressed in terms of Company-wide
objectives or in terms of objectives that relate to the performance of a division, business unit, region, department or function within the Company or a Subsidiary, as determined by the Committee: (i) for Officers of the Company and its
Subsidiaries who are Named Executive Officers (including any Covered Employees), growth in net operating income per share, pre-tax operating income, return on equity, cash flow, premium or sales growth, stock performance, total shareholder return,
expense efficiency ratio, revenue, economic value added, shareholder value added, expense ratio, loss ratio, profit margin, investment income, return on capital, and/or return on invested capital, or growth in insurance operating income,
underwriting income and/or insurance premium, or (ii) for any other Participants in the Plan, such other criteria as may be determined by the Committee. 
 (b) Establishment of Threshold, Target and Maximum Bonus Amounts. At the time that the Committee selects the performance criteria and establishes the performance objectives under the Plan for a
particular year, it shall also establish in writing the threshold, target and maximum bonus amounts for each Participant with respect to such year. The Committee also shall describe in writing the method for computing whether all, some portion but
less than all, or none of the bonus amount for a Participant has been earned for such year based on the degree to which the performance objectives are satisfied. The threshold, target and maximum bonus amounts will be communicated to each
Participant during the first quarter of the performance period. 
 (c) Maximum Bonus Amount Payable. Notwithstanding
anything else contained in Section 4 to the contrary, (i) a principal executive officer of the Company may be paid a bonus for any calendar year not to exceed 30% of the amount of the Bonus Pool for that year and (ii) each of the
other Covered Employees who are Participants in the Plan may be paid a bonus for any calendar year not to exceed 10% of the amount of the Bonus Pool for that year; provided that, in the event that the maximum total amount of bonuses payable
to all of the Covered Employees in any calendar year under clauses (i) and (ii) of this Section 4(c) would exceed 100% of the amount of the Bonus Pool in that year based on the number of Covered Employees participating in the Plan in
that year, then the maximum bonus amount payable to each Covered Employee for that year shall be reduced pro rata among all of such Covered Employees such that the maximum total amount of bonuses payable to the Covered


  
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Employees under the Plan in that year shall equal 100% of the amount of the Bonus Pool for that year. Furthermore, notwithstanding anything else contained in Section 4 to the contrary, the
maximum bonus amount payable to any Participant hereunder for any single calendar year shall be $8,000,000. 
 (d)
Determination of Bonus Amounts. Following the end of each year, the Committee will determine the extent to which the performance objective or objectives for such Participant have been met and certify such determination in writing. Based on
such determination, the Committee shall determine the amount of the bonus payable to such Participant for such year. Except as otherwise provided in Section 5(d), no bonus amount will be payable under the Plan to any Covered Employee relative
to a performance objective if thresholds established by the Committee for such performance objective are not reached. 
 (e)
Termination of Employment. Unless the Committee shall otherwise determine and except as otherwise set forth in Section 5(d), if a Participant voluntarily resigns employment or is terminated involuntarily prior to the last day of the
calendar year for which a bonus is payable or prior to the date on which the bonus amounts are determined by the Committee for such calendar year, any bonus payable for such calendar year shall be forfeited. Unless the Committee shall otherwise
determine and except as otherwise set forth in Section 5(d), if a Participant’s employment terminates for any other reason (including, without limitation, his or her death, disability or retirement under the terms of any retirement plan
maintained by the Company or a Subsidiary) prior to the last day of the calendar year for which the bonus is payable, such Participant shall receive an annual bonus equal to the amount the Participant would have received as an annual bonus award if
such Participant had remained an employee through the end of the year multiplied by a fraction, the numerator of which is the number of days that elapsed during the calendar year in which the termination occurs prior to and including the date of the
Participant’s termination of employment and the denominator of which is 365. 
 (f) Negative Discretion.
Notwithstanding anything else contained in Section 4 to the contrary, the Committee shall have the right, in its absolute discretion, (i) to reduce or eliminate the amount otherwise payable to any Participant under Section 4 based on
individual performance or any other factors that the Committee, in its discretion, shall deem appropriate (as long as such reduction or elimination with respect to a Participant does not result in an increase in the amount payable to another
Participant) and (ii) to establish rules or procedures that have the effect of limiting the amount payable to each Participant to an amount that is less than the maximum amount otherwise authorized under Section 4. 

(g) Affirmative Discretion. Notwithstanding any other provision in the Plan to the contrary, the Committee shall have the right,
in its discretion, to pay to any Participant who is not a Covered Employee an annual bonus for such year in an amount up to the maximum bonus payable under Section 4, based on individual performance or any other criteria that the Committee
deems appropriate. 
  

	5.	Payment. 

 (a) Payment. Subject to Sections 5(b) and 5(c) below and except as otherwise provided hereunder, payment of any bonus amount determined under Section 4 shall be made to each Participant
as soon as practicable after the Committee certifies that one or more of the applicable performance objectives have been attained (or, in the case of any bonus payable under the provisions of Section 4(g), after the Committee determines the
amount of any such bonus) but in no event later than the 2 1/2 Month Period. Any such payments shall be made, at the election of the Committee, in cash, in restricted stock (to the
extent such restricted stock is available and permitted to be issued under any properly approved and adopted plan in conformance with applicable regulations), or partly in cash and partly in restricted stock, in such proportion as the Committee may
choose in its sole discretion; provided that, with respect to any payments to be made in cash, the Participant may, subject to the approval of the Committee, elect to instead receive such payments in stock options, restricted stock and/or restricted
stock units (to the extent such options, restricted stock and/or restricted stock units are available and permitted to be issued under any properly approved and adopted plan in conformance with applicable regulations); provided, however, that any
election by a Participant to receive any payments hereunder other than in cash shall submitted to the Committee in writing no later than June 30 of the calendar year to which


  
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performance period relates and such election shall be irrevocable. In the event that any bonuses are paid in the form of stock options, restricted stock and/or restricted stock units, the
terms of such stock options, restricted stock or restricted stock units, as the case may be, shall be set forth in the applicable plan and/or stock option agreement, restricted stock award agreement, restricted stock unit award agreement or other
grant document. 
 (b) Deferral of Bonuses. Each Participant who is a management or highly compensated employee
and who is entitled to participate in the Torchmark Corporation Restated Deferred Compensation Plan, as amended (the “Deferral Plan”), may elect to defer payment of any amounts payable hereunder in accordance with the Deferral Plan. To the
extent that a Participant entitled to participate in the Deferral Plan elects to defer the payment of any amounts payable hereunder, the terms of the Deferral Plan shall apply to the payment of any such deferred amounts. 

(c) Delay of Payment. Notwithstanding anything in the Plan to the contrary, the Committee may defer all or
any portion of any payment of a bonus to be made hereunder beyond the 2 1/2 Month Period as allowed under Section 409A, including but not necessarily limited to, if the Committee reasonably
anticipates that the Participant’s deduction with respect to such payment otherwise would not be permitted by application of Section 162(m), and, as of the date the legally binding right to the payment arose, a reasonable person would not
have anticipated the application of Section 162(m) at the time of the payment, and provided further that the payment is made as soon as reasonably practicable following the first date on which the Committee anticipates or reasonably should
anticipate that, if the payment were made on such date, the Participant’s deduction with respect to such payment would no longer be restricted due to the application of Section 162(m). 

(d) Acceleration of Payout of Bonus Upon Termination of Employment Following a Change in Control. If (i) the Company or the
surviving entity following the date of a Change in Control terminates a Participant’s employment other than for Cause or (ii) the Participant terminates his or her employment for Good Reason with the Company or the surviving entity
following the date of a Change in Control, then the target payout opportunities attainable under such Participant’s bonus awards under this Plan that are outstanding as of the date of the Change in Control shall be deemed to have been fully
earned as of the date of termination based upon an assumed achievement of all relevant performance goals at the “target” level, and there shall be a pro rata payout to the Participant within thirty (30) days following the date of
termination (or, if later, the first date that such payment may be made without causing a violation of Section 409A) based upon the length of time within the performance period that has elapsed prior to the date of termination. 

(e) Clawback. Notwithstanding anything else contained in the Plan to the contrary, if the Company’s financial results are
materially restated, the Committee may review the circumstances surrounding the restatement and determine whether and which Participants will be required to forfeit the right to receive any future payments under the Plan and/or repay to the Company
any prior payments determined by the Committee to have been inappropriately received by the Participant. If the Company’s financial results are restated due to fraud or material non-compliance by the Company, as a result of misconduct, with any
financial reporting requirements of the federal securities laws, any Participant who the Committee determines participated in or is responsible for the fraud or noncompliance causing the need for the restatement forfeits the right to receive any
future payments under the Plan and must repay any amounts paid in excess of the amounts that would have been paid based on the restated financial results. Any repayments required under this Section 5(e) must be made by the Participant within
ten (10) days following written demand from the Company. 
  

	6.	General Provisions. 

 (a)
Successors. This Agreement shall inure to the benefit of and be binding upon the Company and its successors. The Company shall require any successor to all or substantially all of the business and/or assets of the Company, whether direct or
indirect, by purchase, merger, consolidation, acquisition of stock or otherwise, by an agreement in form and substance satisfactory to the Participant, expressly to assume the Plan and agree to perform under the Plan in the same manner and to the
same extent as the Company would be required to perform if no such succession had taken place. 

  
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 (b) Effectiveness of the Plan. Subject to the approval by the holders of the common
stock of the Company at the 2013 Annual Meeting of Stockholders, the Plan shall be effective with respect to calendar years beginning on or after January 1, 2013, and ending on or before December 31, 2017, unless the term hereof is
extended by action of the Board. It is intended that this Plan supersede the Torchmark Corporation 2008 Management Incentive Plan for calendar years beginning January 1, 2013 and thereafter. 

(c) Amendment and Termination. Notwithstanding Section 6(b), the Board or the Committee may at any time amend, suspend,
discontinue or terminate the Plan; provided, however that, (i) except as set forth in (iii) below, no such amendment, suspension, discontinuance or termination shall adversely affect the rights of any Participant in respect of any calendar
year that has already commenced, (ii) no such action shall be effective without approval by the stockholders of the Company to the extent necessary to continue to qualify the amounts payable hereunder to Covered Employees as performance-based
compensation under Section 162(m), and (iii) subject to (ii) above, at any time the Committee determines that the Plan or any award hereunder may be subject to Section 409A, the Committee shall have the right, in its sole
discretion to amend the Plan as it may determine is necessary or desirable either for the Plan or awards to be exempt from the application of Section 409A or to satisfy the requirements of Section 409A, including by adding conditions with
respect to the vesting and/or the payment of the awards. 
 (d) Designation of Beneficiary. Each Participant may
designate a beneficiary or beneficiaries (which beneficiary may be an entity other than a natural person) to receive any payments which may be made following the Participant’s death. Such designation may be changed or canceled at any time
without the consent of any beneficiary. Any such designation, change or cancellation must be made in a form approved by the Committee and shall not be effective until received by the Committee. If no beneficiary has been named, or the designated
beneficiary or beneficiaries shall have predeceased the Participant, the beneficiary shall be the Participant’s spouse or, if no spouse survives the Participant, the Participant’s estate. If a Participant designates more than one
beneficiary, the rights of such beneficiaries shall be payable in equal shares, unless the Participant has designated otherwise. 
 (e) No Right of Continued Employment. Nothing in this Plan shall be construed as conferring upon any Participant any right to continue in the employment of the Company or any of its Subsidiaries.

 (f) Interpretation. Notwithstanding anything else contained in this Plan to the contrary, to the extent required to so
qualify any award as other performance based compensation within the meaning of Section 162(m)(4)(C) of the Code, the Committee shall not be entitled to exercise any discretion otherwise authorized under this Plan (such as the right to pay a
bonus without regard to the achievement of the relevant performance objectives) with respect to such award if the ability to exercise such discretion (as opposed to the exercise of such discretion) would cause such award to fail to qualify as other
performance based compensation under Section 162(m). It is intended that this Plan, as written and in operation, will be exempt from Section 409A; however, if payments are otherwise deemed “deferred compensation” under
Section 409A, then payment will be made within the guidelines of Section 409A to the extent possible, and the specified payment date applicable to an award shall be within ninety (90) days of the date upon which the award is
determined by the Committee to have been earned; provided however, that if the payments are deemed “deferred compensation” and a Participant is deemed to be a “specified employee” (within the meaning of Section 409A), then
amounts payable under this Plan shall not be paid until the date that is six months after the date of the Participant’s separation from service (within the meaning of Section 409A), or the date on which such Participant dies, if earlier.

 (g) No Limitation to Corporation Action. Nothing in this Plan shall preclude the Committee or the Board, as each or
either shall deem necessary or appropriate, from authorizing the payment to the eligible employees of compensation outside the parameters of the Plan, including, without limitation, base salaries, awards under any other plan of the Company and/or
its Subsidiaries (whether or not approved by stockholders), any other bonuses (whether or not based on the attainment of performance objectives) and retention or other special payments; provided, however, that if the stockholders of
the Company do not approve the Plan at the first annual meeting of stockholders following the adoption of the Plan, the Plan set forth herein shall not be implemented. 

  
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 (h) Nonalienation of Benefits. Except as expressly provided herein, no Participant or
beneficiary shall have the power or right to transfer, anticipate, or otherwise encumber the Participant’s interest under the Plan. The Company’s obligations under this Plan are not assignable or transferable except to (i) a
corporation which acquires all or substantially all of the Company’s assets, (ii) any corporation into which the Company may be merged or consolidated, or (iii) the extent required by Section 6(a) hereof. The provisions of the
Plan shall inure to the benefit of each Participant and the Participant’s beneficiaries, heirs, executors, administrators or successors in interest. 
 (i) Withholding. Any amount payable to a Participant or a beneficiary under this Plan shall be subject to any applicable Federal, state and local income and employment taxes and any other amounts
that the Company or a Subsidiary is required at law to deduct and withhold from such payment. 
 (j) Severability. If any
provision of this Plan is held unenforceable, the remainder of the Plan shall continue in full force and effect without regard to such unenforceable provision and shall be applied as though the unenforceable provision were not contained in the Plan.

 (k) Governing Law. The Plan shall be construed in accordance with and governed by the laws of the State of Delaware,
without reference to the principles of conflict of laws. 
 (l) Headings. Headings are inserted in this Plan for
convenience of reference only and are to be ignored in a construction of the provisions of the Plan. 
 (m) Rule of
Construction. Unless the context otherwise requires, any references to an “Article,” “Section” or “clause” refers to an Article, Section or clause, as the case may be, of this Plan. 

  
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