Document:

Exhibit

Aflac Incorporated 3rd Quarter 2015 10-Q
EXHIBIT 10.5

AFLAC INCORPORATED

EXECUTIVE DEFERRED COMPENSATION PLAN

As amended and restated
effective September 1, 2015

AFLAC INCORPORATED

EXECUTIVE DEFERRED COMPENSATION PLAN

Effective as of the 1st day of September, 2015, Aflac Incorporated (the “Controlling Company”) hereby amends and restates the Aflac Incorporated Executive Deferred Compensation Plan (the “Plan”).

BACKGROUND AND PURPOSE

A.    Background.  The Plan was initially adopted effective as of January 1, 1999, and was subsequently amended.  Effective September 1, 2015, the Plan, as set forth in this document, is intended and should be construed as a restatement and continuation of the Plan as previously in effect.

B.    Goal.  The Controlling Company desires to provide to key management employees of the participating companies one or more of the following benefits: (i) an opportunity to defer the receipt and income taxation of a portion of such employees’ annual compensation; (ii) additional retirement benefits; and (iii) additional deferred compensation.

C.    Purpose.  The purpose of the Plan document is to set forth the terms and conditions pursuant to which these deferrals may be made and to describe the nature and extent of the employees’ rights to their deferred amounts.

D.    Type of Plan.  The Plan constitutes an unfunded, nonqualified deferred compensation plan that benefits certain designated employees who are within a select group of key management or highly compensated employees.  It is intended that this Plan comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.  

STATEMENT OF AGREEMENT

To amend and restate the Plan with the purposes and goals as hereinabove described, the Controlling Company hereby sets forth the terms and provisions of the Plan as follows:

AFLAC INCORPORATED
EXECUTIVE DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS
	
					
	 
	 
	 
	Page

	 
	 
	 
	 
	 

	ARTICLE I DEFINITIONS
	1

	 
	1.1
	Account
	1

	 
	1.2
	Administrative Committee
	1

	 
	1.3
	Affiliate
	1

	 
	1.4
	Annual Bonus
	1

	 
	1.5
	Annual Bonus Contributions
	1

	 
	1.6
	Annual Bonus Election
	1

	 
	1.7
	Annual Compensation
	1

	 
	1.8
	Base Salary
	2

	 
	1.9
	Base Salary Contributions
	2

	 
	1.10
	Beneficiary
	2

	 
	1.11
	Board
	2

	 
	1.12
	Business Day
	2

	 
	1.13
	Cause
	2

	 
	1.14
	Change in Control
	2

	 
	 
	(a)         General Definition
	2

	 
	 
	(b)         Payment Definition Under Code Section 409A
	3

	 
	1.15
	Code
	6

	 
	1.16
	Company Stock
	6

	 
	1.17
	Company Stock Fund
	6

	 
	1.18
	Company Stock Unit
	6

	 
	1.19
	Compensation Committee
	6

	 
	1.20
	Controlling Company
	6

	 
	1.21
	Deferral Contributions
	6

	 
	1.22
	Director
	6

	 
	1.23
	Disability or Disabled
	7

	 
	1.24
	Discretionary Contributions
	7

	 
	1.25
	Effective Date
	7

	 
	1.26
	Eligible Employee
	7

	 
	1.27
	ERISA
	7

	 
	1.28
	Executive Employer Contribution
	7

	 
	1.29
	FICA Tax
	7

	 
	1.30
	Financial Hardship
	7

	 
	1.31
	Investment Election
	8

	 
	1.32
	Investment Funds
	8

	 
	1.33
	Key Employee
	8

	 
	1.34
	Matching Contributions
	8

	 
	1.35
	Participant
	8

i

	
					
	 
	1.36
	Participating Company
	8

	 
	1.37
	Payment Date
	8

	 
	1.38
	Plan
	8

	 
	1.39
	Plan Year
	8

	 
	1.40
	Post 409A Account
	8

	 
	1.41
	Pre-409A Account
	8

	 
	1.42
	Retirement Plans Investment Committee
	9

	 
	1.43
	Salary Deferral Election
	9

	 
	1.44
	Separate from Service or Separation from Service
	9

	 
	 
	(a)         Leaves of Absence
	9

	 
	 
	(b)         Status Change
	9

	 
	 
	(c)         Termination of Employment
	9

	 
	1.45
	Surviving Spouse
	10

	 
	1.46
	Trust or Trust Agreement
	10

	 
	1.47
	Trust Fund
	10

	 
	1.48
	Trustee
	10

	 
	1.49
	Valuation Date
	10

	 
	1.50
	Years of Employment
	10

	 
	1.51
	Years of Participation
	10

	 
	 
	 
	 

	ARTICLE II ELIGIBILITY AND PARTICIPATION
	11

	 
	2.1
	Eligibility for Deferral Contributions
	11

	 
	 
	(a)         Annual Participation
	11

	 
	 
	(b)         Interim Plan Year Participation
	11

	 
	2.2
	Procedure for Admission
	11

	 
	2.3
	Eligibility for Discretionary Contributions
	11

	 
	2.4
	Eligibility for Executive Employer Contributions
	11

	 
	2.5
	Cessation of Eligibility
	11

	 
	 
	 
	 

	ARTICLE III PARTICIPANTS’ ACCOUNTS; DEFERRALS AND CREDITING
	13

	 
	3.1
	Participants’ Accounts
	13

	 
	 
	(a)         Establishment of Accounts
	13

	 
	 
	(b)         Nature of Contributions and Accounts
	13

	 
	 
	(c)         Several Liabilities
	13

	 
	 
	(d)         General Creditors
	13

	 
	3.2
	Deferral Contributions
	13

	 
	 
	(a)         Effective Date
	14

	 
	 
	(b)         Term and Irrevocability of Election
	14

	 
	 
	(c)         Amount
	15

	 
	 
	(d)         Crediting of Deferral Contributions
	15

	 
	3.3
	Matching Contributions
	15

	 
	3.4
	Discretionary Contributions
	16

	 
	3.5
	Executive Employer Contributions
	16

	 
	3.6
	Debiting of Distributions
	16

	 
	3.7
	Crediting of Earnings
	16

	 
	 
	(a)         General Rule
	16

	 
	 
	(b)         Cash Dividends
	17

ii

	
					
	 
	 
	(c)         Adjustments for Stock Dividends and Splits
	17

	 
	3.8
	Value of Account
	17

	 
	 
	(a)         General Rule
	17

	 
	 
	(b)         Value of Company Stock
	17

	 
	3.9
	Vesting
	18

	 
	 
	(a)         General
	18

	 
	 
	(b)         Executive Employer Contributions
	18

	 
	 
	(c)         Change in Control
	20

	 
	 
	(d)         Other Vesting Schedules
	20

	 
	3.10
	Notice to Participants of Account Balances
	20

	 
	3.11
	Good Faith Valuation Binding
	21

	 
	3.12
	Errors and Omissions in Accounts
	21

	 
	 
	 
	 

	ARTICLE IV INVESTMENT FUNDS
	22

	 
	4.1
	Selection by Retirement Plans Investment Committee
	22

	 
	4.2
	Participant Direction of Deemed Investments
	22

	 
	 
	(a)         Nature of Participant Direction
	22

	 
	 
	(b)         Investment of Contributions
	22

	 
	 
	(c)         Investment of Existing Account Balances
	22

	 
	 
	(d)         Administrative Committee Discretion
	23

	 
	 
	 
	 

	ARTICLE V PAYMENT OF POST-409A ACCOUNT BALANCES
	24

	 
	5.1
	Amount of Benefit Payments for Post-409A Account
	24

	 
	5.2
	Timing and Form of Distribution of Post-409A Account
	24

	 
	 
	(a)         Timing of Distributions
	24

	 
	 
	(b)         Form of Distribution for Post-409A Account Balances
	24

	 
	 
	(c)         Modifications of Form and Timing
	25

	 
	 
	(d)         Medium of Payment
	26

	 
	 
	(e)         Order of Distribution
	26

	 
	 
	(f)          Cash-out
	26

	 
	5.3
	Change in Control
	27

	 
	5.4
	Death Benefits
	27

	 
	5.5
	Distribution of Post-409A Account Discretionary Contributions
	27

	 
	 
	(a)         Determination by Grantor
	27

	 
	 
	(b)         Participant Election in Absence of Designation by Grantor
	27

	 
	 
	(c)         Default Payment
	28

	 
	5.6
	Distribution of Executive Employer Contributions
	28

	 
	 
	(a)         Generally
	28

	 
	 
	(b)         Installment Election
	28

	 
	 
	(c)         Change in Form of Payments
	28

	 
	 
	(d)         Other Distribution Rules
	28

	 
	5.7
	Hardship Withdrawals
	29

	 
	5.8
	Taxes
	29

	 
	 
	(a)          Amounts Payable Whether or Not Account is in Pay Status
	29

	 
	 
	(b)          Amounts Payable Only if Account is in Pay Status
	29

	 
	5.9
	Offset of Post-409A Account by Amounts Owed to the Affiliates
	29

	 
	5.10
	No Acceleration of Post-409A Account Payments
	30

iii

	
					
	ARTICLE VI PAYMENT OF PRE-409A ACCOUNT BALANCES
	31

	 
	6.1
	Benefit Payments of Pre-409A Accounts Upon Termination of Service for
	 

	Reasons Other than Death
	31

	 
	 
	(a)         General Rule Concerning Benefit Payments
	31

	 
	 
	(b)         Timing of Distribution
	31

	 
	6.2
	Form of Distribution for Pre-409A Account
	32

	 
	 
	(a)         Single-Sum Payment
	32

	 
	 
	(b)         Annual Installments
	32

	 
	 
	(c)         Multiple Forms of Distribution
	32

	 
	 
	(d)         Change in Control
	32

	 
	 
	(e)         Form of Assets
	33

	 
	 
	(f)         Order of Distribution
	33

	 
	6.3
	Death Benefits
	33

	 
	6.4
	In-Service Distributions
	33

	 
	 
	(a)         Hardship Distributions
	33

	 
	 
	(b)         Distributions with Forfeiture
	33

	 
	6.5
	Taxes
	34

	 
	 
	 
	 

	ARTICLE VII CLAIMS
	35

	 
	7.1
	Rights
	35

	 
	7.2
	Claim Procedure
	35

	 
	 
	(a)         Initial Claim
	35

	 
	 
	(b)         Appeal
	35

	 
	7.3
	Satisfaction of Claims
	36

	 
	 
	 
	 

	ARTICLE VIII SOURCE OF FUNDS; TRUST
	37

	 
	8.1
	Source of Funds
	37

	 
	8.2
	Trust
	37

	 
	 
	(a)         Establishment
	37

	 
	 
	(b)         Distributions
	37

	 
	 
	(c)         Status of the Trust
	37

	 
	 
	(d)         Change in Control
	37

	 
	8.3
	Funding Prohibition under Certain Circumstances
	38

	 
	 
	 
	 

	ARTICLE IX ADMINISTRATIVE AND RETIREMENT PLANS INVESTMENT
	 

	COMMITTEES
	39

	 
	9.1
	Action of Administrative Committee
	39

	 
	9.2
	Rights and Duties of Administrative Committee
	39

	 
	9.3
	Compensation, Indemnity and Liability
	40

	 
	9.4
	Retirement Plans Investment Committee
	40

	 
	 
	(a)         Appointment
	40

	 
	 
	(b)         Duties
	40

	 
	9.5
	Delegation and Discretion
	40

	 
	 
	(a)         Delegation
	40

	 
	 
	(b)         Discretion
	40

iv

	
					
	ARTICLE X AMENDMENT AND TERMINATION
	42

	 
	10.1
	Amendments
	42

	 
	10.2
	Termination of Plan
	42

	 
	 
	(a)         Freezing
	42

	 
	 
	(b)         Termination
	42

	 
	 
	 
	 

	ARTICLE XI MISCELLANEOUS
	43

	 
	11.1
	Beneficiary Designation
	43

	 
	 
	(a)         General
	43

	 
	 
	(b)         No Designation or Designee Dead or Missing
	43

	 
	11.2
	Distribution Pursuant to Domestic Relations Order
	43

	 
	11.3
	Taxation
	43

	 
	11.4
	Elections Prior to 2009
	44

	 
	11.5
	No Employment Contract
	44

	 
	11.6
	Headings
	44

	 
	11.7
	Gender and Number
	44

	 
	11.8
	Assignment of Benefits
	44

	 
	11.9
	Legally Incompetent
	44

	 
	11.10
	Governing Law
	45

	
					
	EXHIBIT A
	A-1

v

ARTICLE I
DEFINITIONS

For purposes of the Plan, the following terms, when used with an initial capital letter, will have the meaning set forth below unless a different meaning plainly is required by the context.

1.1    Account means, with respect to a Participant or Beneficiary, the total dollar amount or value evidenced by the last balance posted in accordance with the terms of the Plan to the account record established for such Participant or Beneficiary.  As determined by the Administrative Committee, an Account may be divided into separate subaccounts.

1.2    Administrative Committee means the committee designated by the Compensation Committee to act on behalf of the Controlling Company to administer the Plan.  If at any time the Compensation Committee has not designated an Administrative Committee, the Compensation Committee will serve as the Administrative Committee.  Subject to the limitation in Section 9.1 relating to decisions that affect solely their own benefits under the Plan, individuals who are management level employees and/or Participants may serve as members of the Administrative Committee.  The Administrative Committee will act on behalf of the Controlling Company to administer the Plan, all as provided in Article IX.

1.3    Affiliate means the Controlling Company and any corporation or other entity that is required to be aggregated with the Controlling Company under Code Sections 414(b) or (c).  Notwithstanding the foregoing, for purposes of determining whether a Separation from Service has occurred with any Participating Company, the term “Affiliate” will include such Participating Company and all entities that would be treated as a single employer with such Participating Company under Code Sections 414(b) or (c), but substituting “at least 50 percent” instead of “at least 80 percent” each place it appears in applying such rules.

1.4    Annual Bonus means, for a Participant for any Plan Year, that portion of an Eligible Employee’s compensation for that Plan Year payable before the Participant’s Separation from Service as an annual bonus under (i) the Aflac Management Incentive Plan or any successor plan thereto; and (ii) any annual sales-based bonus plan.

1.5    Annual Bonus Contributions means, for a Participant for any Plan Year, that portion of such Participant’s Annual Bonus deferred under the Plan pursuant to Section 3.2.

1.6    Annual Bonus Election means a written, electronic or other form of election permitted by the Administrative Committee, pursuant to which a Participant may elect to defer under the Plan all or a portion of his Annual Bonus.

1.7    Annual Compensation means, for purposes of the Executive Employer Contributions, the amount earned by a Participant from the Affiliates for services performed as an employee (but not as a consultant) during a relevant calendar year as wages, salaries for professional services, and cash bonuses.  For clarification, “Annual Compensation” for a relevant calendar year will include all such earned compensation whether or not paid to the Participant, including (i) such earned compensation contributed by the Affiliates on behalf of a Participant 

1

pursuant to a salary reduction agreement which is not includable in the gross income of the Participant under Code Sections 125, 402(a)(8) or 402(h); (ii) such earned compensation deferred by the Affiliates under the Plan either (A) on behalf of a Participant pursuant to a salary reduction agreement, or (B) as a result of the Affiliates’ specific decision to make a deferral of base salary in lieu of paying current cash compensation to the Participant; and (iii) such earned compensation that is comprised of bonuses that would have been paid in cash to the Participant if he had not voluntarily waived them. 
1.8    Base Salary means, for a Participant for any Plan Year, the total of such Participant’s base salary, prior to any deductions, for such Plan Year payable before the Participant’s Separation from Service.

1.9    Base Salary Contributions means, for a Participant for each Plan Year, the portion of such Participant’s Base Salary deferred under the plan pursuant to Section 3.2.

1.10    Beneficiary means, with respect to a Participant, the person(s) designated in accordance with Section 11.1 to receive any death benefits that may be payable under the Plan upon the death of the Participant.

1.11    Board means the Board of Directors of the Controlling Company.

1.12    Business Day means each day on which the Trustee operates, and is open to the public, for its business.

1.13    Cause means a Participant’s involuntary termination of employment by the Affiliates, or a Participant’s voluntary termination of employment with the Affiliates in anticipation that the Participant will be terminated, in any case, for what the Compensation Committee or the Controlling Company’s Chief Executive Officer determines is due to the Participant’s:  (i) continued failure to substantially perform his duties with the Affiliates (other than due to his incapacity due to physical or mental illness) after a written demand to do so by the Board, the Controlling Company’s Chief Executive Officer, or the Controlling Company’s Senior Human Resources Officer; (ii) engaging in conduct that is injurious to the Controlling Company or any Affiliate; or (iii) conviction of, or plea of guilty or no contest to, a felony or a crime of moral turpitude. 

1.14    Change in Control.

(a)    General Definition.  For purposes of a Participant’s Pre-409A Account, Change in
Control means the occurrence of any of the following events:

(i)    Any Person is or becomes the beneficial owner, directly or indirectly, of securities of the Controlling Company representing 30% or more of the combined voting power of the Controlling Company’s then outstanding securities; provided, for purposes of this subsection (i), securities acquired directly from the Controlling Company or its Affiliates will not be taken into account as securities beneficially owned by such Person;

2

(ii)    During any period of 2 consecutive years, individuals who at the beginning of such period constitute the Board and any new director (other than a director designated by a Person who has entered into an agreement with the Controlling Company to effect a transaction described in subsection (i), (iii) or (iv) hereof) whose election by the Board or nomination for election by the Controlling Company’s shareholders was approved by a vote of at least 2/3 of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof;

(iii)    The shareholders of the Controlling Company approve a merger or consolidation of the Controlling Company with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Controlling Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Controlling Company, at least 75% of the combined voting power of the voting securities of the Controlling Company or such surviving entity outstanding immediately after such merger or consolidation; or (B) a merger or consolidation effected to implement a recapitalization of the Controlling Company (or similar transaction) in which no Person acquires more than 50% of the combined voting power of the Controlling Company’s then outstanding securities; or

(iv)    The shareholders of the Controlling Company approve a plan of complete liquidation of the Controlling Company or an agreement for the sale or disposition by the Controlling Company of all or substantially all of the Controlling Company’s assets.

As used herein, the term “Person” will have the meaning given in Section 3(a)(9) of the Securities Exchange Act of 1934, as modified and used in Sections 13(d) and 14(d) thereof; provided, a Person will not include (A) the Controlling Company or any of its subsidiaries; (B) a trustee or other fiduciary holding securities under an employee benefit plan of the Controlling Company or any of its subsidiaries; (C) an underwriter temporarily holding securities pursuant to an offering of such securities; or (D) a corporation owned, directly or indirectly, by the shareholders of the Controlling Company in substantially the same proportions as their ownership of stock of the Controlling Company. 

(b)    Payment Definition Under Code Section 409A. For purposes of a Participant’s Post-409A Account, “Change in Control” means any of the events specified in (i), (ii), (iii) or (iv) below, subject to the rules described in subsection (v) below:

(i)    Any one person, or more than one person acting as a group (as described below), acquires ownership of stock of the Controlling Company that, together with stock held by such person or group constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Controlling Company.  However, if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of the Controlling Company, the acquisition of additional stock by the same person or persons 

3

is not considered to cause a Change in Control.  An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which the Controlling Company acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this subsection.  This subsection applies only when there is a transfer of stock of the Controlling Company (or issuance of stock of the Controlling Company) and stock in the Controlling Company remains outstanding after the transaction.

(ii)    Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Controlling Company possessing 30 percent or more of the total voting power of the stock of the Controlling Company.  However, if any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of the Controlling Company, the acquisition of additional stock by the same person or persons is not considered to cause a Change in Control.

(iii)    A majority of members of the Controlling Company’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Controlling Company’s board of directors before the date of the appointment or election.
  
(iv)    Any one person, or more than one person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Controlling Company that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Controlling Company immediately before such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the Controlling Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

(A)    There is no Change in Control under this subsection (iv) when there is a transfer to an entity that is controlled by the shareholders of the Controlling Company immediately after the transfer, as provided in this subsection.  A transfer of assets by the Controlling Company is not treated as a change in the ownership of such assets if the assets are transferred to:
(1)    A shareholder of the Controlling Company (immediately before the asset transfer) in exchange for or with respect to its stock;

(2)    An entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Controlling Company;

(3)    A person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total 

4

value or voting power of all the outstanding stock of the Controlling Company; or

(4)    An entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in subsection (3) above.

(B)    For purposes of this subsection (iv) and except as otherwise provided in Treasury Regulations, a person’s status is determined immediately after the transfer of the assets.  For example, a transfer to a company in which the Controlling Company has no ownership interest before the transaction, but that is a majority-owned subsidiary of the Controlling Company after the transaction, is not treated as a Change in Control.

(v)    Additional Rules.

(A)    Persons Acting as a Group.  Persons will not be considered to be acting as a group solely because they purchase assets of the same corporation at the same time with respect to subsection (iv), or solely because they purchase or own stock of the same corporation at the same time with respect to subsections (i), (ii) and (iii).  However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets (with respect to subsection (iv)) or stock (with respect to subsections (i), (ii) and (iii)), or similar business transaction with the Controlling Company.  If a person, including an entity shareholder, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of assets (with respect to subsection (iv)) or stock (with respect to subsections (i), (ii) and (iii)), or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only to the extent of the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.  

5

(B)    Attribution of Stock Ownership.  For purposes of this section, Code Section 318(a) applies to determine stock ownership.  Stock underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option).  For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined by Treasury Regulations Section 1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option.

(C)    Acquisition of Additional Control.  If any one person, or more than one person acting as a group, is considered to effectively control the Controlling Company (as determined under subsections (ii) and (iii)), the acquisition of additional control of the Controlling Company by the same person or persons is not considered to cause a Change in Control under subsections (i), (ii) or (iii).

1.15    Code means the Internal Revenue Code of 1986, as amended, and any succeeding federal tax provisions.

1.16    Company Stock means the $.10 par value common stock of the Controlling Company.

1.17    Company Stock Fund means an Investment Fund, the rate of return of which will be determined as if the amounts deemed invested therein have been invested in shares of Company Stock.  The aggregate of all Company Stock Units under the Plan will constitute the Company Stock Fund.

1.18    Company Stock Unit means an accounting entry that is equal in value at any time to the current fair market value of one share of Company Stock, and that represents an unsecured obligation to pay that amount to a Participant in accordance with the terms of the Plan.  A Company Stock Unit will not carry any voting, dividend or other similar rights and will not constitute an option or any other right to acquire any equity securities of the Controlling Company.  

1.19    Compensation Committee means the Compensation Committee of the Board.  

1.20    Controlling Company means Aflac Incorporated, a Georgia corporation with its principal place of business in Columbus, Georgia.

1.21    Deferral Contributions means, for each Plan Year, a Participant’s Base Salary Contributions and Annual Bonus Contributions deferred under the Plan pursuant to Section 3.2.

1.22    Director means an individual employed by a Participating Company who is classified by the Participating Company as, and has the job title of, Director, but who does not have the job title of Market Director, Co-Market Director or Assistant Market Director.

6

1.23    Disability or Disabled means that a Participant has been determined to be disabled under the group long-term disability plan maintained by the Affiliates in which the Participant participates. 

1.24    Discretionary Contributions means the amount (if any) credited to a Participant’s Account pursuant to Section 3.4.

1.25    Effective Date means September 1, 2015, the date that this amendment and restatement of the Plan will be effective.  The Plan was initially effective on January 1, 1999.

1.26    Eligible Employee means, for a Plan Year, an individual who is a U.S.-based employee of a Participating Company and who is either an officer (other than an Assistant Vice President) or a Director of such Participating Company (other than a Market Director, Co-Market Director or Assistant Market Director of such Participating Company).  The Compensation Committee, from time to time and in its sole discretion, may designate such other individuals, on an individual basis or as part of a specified group, as eligible to participate in the Plan.  To be an “Eligible Employee”, such an employee must be a member of a select group of key management or highly compensated employees of the Affiliates.

1.27    ERISA means the Employee Retirement Income Security Act of 1974, as amended.

1.28    Executive Employer Contribution means the amount (if any) credited to an Executive Participant’s Account pursuant to Section 3.5.

1.29    FICA Tax means the Federal Insurance Contributions Act tax imposed under Code Sections 3101, 3121(a) and 3121(v)(2).  

1.30    Financial Hardship means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of the Participant’s dependent [as defined in Code Section 152(a)] or, with respect to distributions upon Financial Hardship from a Participant’s Post-409A Account, the Participant’s Beneficiary, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  Financial Hardship will be determined by the Administrative Committee on the basis of the facts of each case, including information supplied by the Participant in accordance with uniform guidelines prescribed from time to time by the Administrative Committee; provided, the Participant will be deemed not to have a Financial Hardship to the extent that such hardship is or may be relieved:

(a)    Through reimbursement or compensation by insurance or otherwise;

(b)    By liquidation of the Participant’s assets, to the extent the liquidation of assets would not itself cause severe financial hardship; or

(c)    By cessation of deferrals under the Plan.

Examples of what are not considered Financial Hardships include the need to send a Participant’s child to college or the desire to purchase a home.

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1.31    Investment Election means an election, made in such form as the Administrative Committee may direct, pursuant to which a Participant may elect the Investment Funds in which the amounts credited to his Account will be deemed to be invested.

1.32    Investment Funds means the investment funds selected from time to time by the Retirement Plans Investment Committee for purposes of determining the rate of return on amounts deemed invested pursuant to the terms of the Plan.

1.33    Key Employee means a Participant who is a “specified employee” as defined in Code Section 409A as of:  (i) for a Participant who Separates from Service on or after the first day of a calendar year and before the first day of the fourth month of such calendar year, the December 31 of the second calendar year preceding the calendar year in which such Participant Separates from Service; or (ii) for any other Participant, the preceding December 31.  For purposes of identifying Key Employees, the Participant’s compensation means all of the items listed in Treasury Regulations Section 1.415(c)-2(b), and excluding all of the items listed in Treasury Regulations Section 1.415(c)-2(c).

1.34    Matching Contributions means the amount (if any) credited to a Participant’s Account pursuant to Section 3.3.

1.35    Participant means any person who has been admitted to, and has not been removed from, participation in the Plan pursuant to the provisions of Article II.

1.36    Participating Company means, as of the Effective Date, each of (i) the Controlling Company, and (ii) each of its Affiliates that are designated by the Controlling Company on Exhibit A hereto as Participating Companies herein.  In addition, any other Affiliate in the future may adopt the Plan with the consent of the Compensation Committee, and such Affiliate’s name will be added to Exhibit A without the necessity of amending the Plan. 

1.37    Payment Date means the date on which all or a portion of the Participant’s benefit is scheduled to be paid (in the case of a lump-sum payment) or commenced (in the case of installment payments) pursuant to the terms of the Plan.

1.38    Plan means the Aflac Incorporated Executive Deferred Compensation Plan, as contained herein and all amendments hereto.  For tax purposes and purposes of Title I of ERISA, the Plan is intended to be an unfunded, nonqualified deferred compensation plan covering certain designated employees who are within a select group of key management or highly compensated employees.

1.39    Plan Year means the 12-consecutive-month period ending on December 31 of each year.

1.40    Post 409A Account means the portion of a Participant’s Account that is not the Participant’s Pre-409A Account.

1.41    Pre-409A Account means the portion of a Participant’s Account attributable to the balance of the Participant’s Account that was earned and vested as of December 31, 2004. 

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1.42    Retirement Plans Investment Committee means the committee that will make and effect investment decisions, as provided in Article IX.  To the extent that a Retirement Plans Investment Committee is not appointed, any other person or committee appointed by the Compensation Committee may act in lieu thereof.

1.43    Salary Deferral Election means a written, electronic or other form of election permitted by the Administrative Committee, pursuant to which a Participant may elect to defer under the Plan a portion of his Base Salary.

1.44    Separate from Service or Separation from Service means that a Participant separates from service with the Participating Company that is his employer and its Affiliates, as defined in Code Section 409A and guidance issued thereunder.  Generally, a Participant Separates from Service if the Participant dies, retires or otherwise has a termination of employment with all Affiliates, determined in accordance with the following:  

(a)    Leaves of Absence.  The employment relationship is treated as continuing intact while the Participant is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed 6 months, or, if longer, so long as the Participant retains a right to reemployment with an Affiliate under an applicable statute or by contract.  A leave of absence constitutes a bona fide leave of absence only while there is a reasonable expectation that the Participant will return to perform services for an Affiliate.  If the period of leave exceeds 6 months and the Participant does not retain a right to reemployment under an applicable statute or by contract, the employment relationship is deemed to terminate on the first date immediately following such 6-month period.  Notwithstanding the foregoing, where a leave of absence is due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, where such impairment causes the Participant to be unable to perform the duties of his or her position of employment or any substantially similar position of employment, a 29-month period of absence will be substituted for such 6-month period.

(b)    Status Change.  Generally, if a Participant performs services both as an employee and an independent contractor, such Participant must Separate from Service both as an employee, and as an independent contractor pursuant to standards set forth in Treasury Regulations, to be treated as having a Separation from Service.  However, if a Participant provides services to Affiliates as an employee and as a member of the Board of Directors, the services provided as a director are not taken into account in determining whether the Participant has a Separation from Service as an employee for purposes of this Plan.

(c)    Termination of Employment.  Whether a termination of employment has occurred is determined based on whether the facts and circumstances indicate that the Affiliates and the Participant reasonably anticipate that (i) no further services will be performed after a certain date, or (ii) the level of bona fide services the Participant will perform after such date (whether as an employee or as an independent contractor) will permanently decrease to less than 50 percent of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to all Affiliates if the Participant has been providing services to all Affiliates less than 36 months).  Facts and circumstances to be considered in making this determination include, but 

9

are not limited to, whether the Participant continues to be treated as an employee for other purposes (such as continuation of salary and participation in employee benefit programs), whether similarly situated service providers have been treated consistently, and whether the Participant is permitted, and realistically available, to perform services for other service recipients in the same line of business.  For periods during which a Participant is on a paid bona fide leave of absence and has not otherwise terminated employment as described in subsection (a) above, for purposes of this subsection the Participant is treated as providing bona fide services at a level equal to the level of services that the Participant would have been required to perform to receive the compensation paid with respect to such leave of absence.  Periods during which a Participant is on an unpaid bona fide leave of absence and has not otherwise terminated employment are disregarded for purposes of this subsection (including for purposes of determining the applicable 36-month (or shorter) period).
1.45    Surviving Spouse means, with respect to a Participant, the person who is treated as married to such Participant under the laws of any U.S. or foreign jurisdiction that has the legal authority to sanction marriages.  The determination of a Participant’s Surviving Spouse will be made as of the date of such Participant’s death.  

1.46    Trust or Trust Agreement means the separate agreement or agreements between the Controlling Company and the Trustee governing the Trust Fund, and all amendments thereto.

1.47    Trust Fund means the total amount of cash and other property held by the Trustee (or any nominee thereof) at any time under the Trust Agreement.

1.48    Trustee means the party or parties so designated from time to time pursuant to the terms of the Trust Agreement.

1.49    Valuation Date means each Business Day; provided, the value of an Account on a day other than a Valuation Date will be the value determined as of the immediately preceding Valuation Date.

1.50    Years of Employment means the calendar years in which the Participant is employed by the Affiliates for the entire calendar year.  If a Participant terminates employment with the Affiliates and is later rehired, previous Years of Employment will only be taken into account to the extent determined by the Compensation Committee.  The Compensation Committee may grant a Participant additional Years of Employment in its discretion at any time.

1.51    Years of Participation means the calendar years in which the Participant is participating in the Executive Employer Contributions portion of the Plan for the entire calendar year.  If a Participant terminates employment with the Affiliates and is later rehired, previous Years of Participation will only be taken into account to the extent determined by the Compensation Committee.  The Compensation Committee may grant a Participant additional Years of Participation at its discretion at any time.

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ARTICLE II
ELIGIBILITY AND PARTICIPATION

2.1    Eligibility for Deferral Contributions.

(a)    Annual Participation.  Each individual who is an Eligible Employee as of the first day of a Plan Year will be eligible to participate in the Plan with respect to Deferral Contributions for the entire Plan Year.  

(b)    Interim Plan Year Participation.  Each individual who becomes an Eligible Employee during a Plan Year will be eligible to participate in the Plan with respect to Deferral Contributions for a portion of such Plan Year.  Such individual’s participation will become effective as of the first day of the calendar month coinciding with or next following the date he becomes an Eligible Employee. 

2.2    Procedure for Admission.  The Administrative Committee may require a Participant to complete such forms and provide such data as the Administrative Committee determines in its sole discretion.  Such forms and data may include, without limitation, a Salary Deferral Election, an Annual Bonus Election, the Eligible Employee’s acceptance of the terms and conditions of the Plan, and the designation of a Beneficiary to receive any death benefits payable hereunder.

2.3    Eligibility for Discretionary Contributions. 

The Compensation Committee, the Chief Executive Officer of the Controlling Company or his duly authorized designee, or the Senior Human Resources Officer of the Controlling Company may select at any time or times any employee of the Affiliates who is a member of a select group of key management or highly compensated employees of the Affiliates for participation in the Plan with respect to Discretionary Contributions.
2.4    Eligibility for Executive Employer Contributions.  
The Compensation Committee may select at any time any Eligible Employee for participation in the Plan with respect to Executive Employer Contributions.  
2.5    Cessation of Eligibility. 

The Administrative Committee may remove a Participant from active participation in the Plan with respect to Deferral Contributions if he ceases to satisfy the criteria which qualified him as an Eligible Employee, in which case his Deferral Contributions under the Plan will not apply to compensation earned in any Plan Year after the Plan Year in which he ceases to satisfy the criteria which qualified him as an Eligible Employee.  A Participant’s active participation in the Plan with respect to Executive Employer Contributions will end upon the earliest of: (i) the date of his Separation from Service; (ii) the date he incurs a reduction or elimination of officer status; or (iii) the date the Compensation Committee removes such Eligible Employee from active participation in the Plan with respect to Executive Employer 

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Contributions, which the Compensation Committee may do at any time.  Even if his active participation in the Plan ends, a current or former Eligible Employee will remain an inactive Participant in the Plan until the earlier of (i) the date the full amount of his vested Account (if any) is distributed from the Plan, or (ii) the date he again becomes an Eligible Employee and recommences active participation in the Plan.  During the period of time that a current or former Eligible Employee is an inactive Participant in the Plan, his Account will continue to be credited with earnings as provided for in Section 3.6.  

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ARTICLE III
PARTICIPANTS' ACCOUNTS; DEFERRALS AND CREDITING

3.1    Participants’ Accounts.

(a)    Establishment of Accounts.  The Administrative Committee will establish and maintain an Account on behalf of each Participant.  Each Account will be credited with (i) Deferral Contributions (separated as necessary or helpful into Base Salary Contributions and Annual Bonus Contributions), (ii) Matching Contributions, (iii) Discretionary Contributions, (iv) Executive Employer Contributions, and (v) earnings attributable to such Account, and will be debited by the amount of all distributions.  Each Account will be subdivided into a Pre-409A Account and a Post-409A Account, which will be separately accounted for under the Plan.  Each Account of a Participant will be maintained until the value thereof has been distributed to or on behalf of such Participant or his Beneficiary.

(b)    Nature of Contributions and Accounts.  The amounts credited to a Participant’s Account will be represented solely by bookkeeping entries.   Except as provided in Article VIII, no monies or other assets will actually be set aside for such Participant, and all payments to a Participant under the Plan will be made from the general assets of the Participating Companies.

(c)    Several Liabilities.  Each Participating Company will be severally (and not jointly) liable for the payment of benefits under the Plan in an amount equal to the total of (i) all undistributed Deferral Contributions, (ii) all undistributed Matching Contributions, (iii) all undistributed Discretionary Contributions, (iv) all undistributed Executive Employer Contributions, and (v) all investment earnings attributable to the amounts described in clauses (i)-(iv) hereof.  The Administrative Committee will allocate the total liability to pay benefits under the Plan among the Participating Companies, and the Administrative Committee’s determination will be final and binding.

(d)    General Creditors.  Any assets which may be acquired by a Participating Company in anticipation of its obligations under the Plan will be part of the general assets of such Participating Company.  A Participating Company’s obligation to pay benefits under the Plan constitutes a mere promise of such Participating Company to pay such benefits, and a Participant or Beneficiary will be and remain no more than an unsecured, general creditor of such Participating Company.

3.2    Deferral Contributions.

Subject to the suspension period provided in Section 6.4(b), each Eligible Employee who is eligible to participate in the Plan for all or any portion of a Plan Year may elect to have Deferral Contributions made on his behalf for such Plan Year by completing and delivering to the Administrative Committee (or its designee) a Salary Deferral Election and/or an Annual Bonus Election, setting forth the terms of his election(s).  Subject to the terms and conditions set forth below, a Salary Deferral Election may provide for the reduction of an Eligible Employee’s Base Salary earned during the Plan Year for which the Salary Deferral 

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Election is in effect, and an Annual Bonus Election will provide for the reduction of an Eligible Employee’s Annual Bonus earned during the Plan Year for which the Annual Bonus Election is in effect.  The following terms will apply to such elections:
(a)    Effective Date.

(i)    General Deadline.  A Participant’s Salary Deferral Election and Annual Bonus Election for the compensation earned during a Plan Year must be made before the first day of such Plan Year, except as provided in subsection (ii) below.

(ii)    Special Rule for New Participants.  

(A)    Salary Deferrals.  If a Participant initially becomes an Eligible Employee (determined in accordance with Code Section 409A) and does not make an initial Salary Deferral Election within the time period set forth in subsection (i) above, such Participant may make a prospective Salary Deferral Election (but not an Annual Bonus Election) either before or within 30 days after the date on which his participation becomes effective.  Such election will apply to the Participant’s Base Salary for services performed after the Salary Deferral Election is made, starting with the second payroll period that begins after the 30-day period commencing on the date on which the Participant’s participation becomes effective.  

(B)    Newly Eligible.  If a former Eligible Employee again becomes an Eligible Employee under the Plan within 24 months after he ceased to be eligible under the Plan, such individual will not be treated as newly eligible under the Plan upon return to eligible status for purposes of this subsection (ii).  If a former participant in the Aflac Incorporated Market Director Deferred Compensation Plan (the “MDDCP”) becomes an Eligible Employee under the Plan within 24 months after he ceased to be eligible under the MDDCP, such individual will not be treated as newly eligible under the Plan upon so becoming an Eligible Employee, for purposes of this subsection (ii).  

(b)    Term and Irrevocability of Election.  An Eligible Employee may change his Salary Deferral Election and/or Annual Bonus Election for the Plan Year any time prior to the deadlines specified in subsections (a)(i) or (a)(ii) above (as applicable to the Participant), only to the extent (if any) permitted by, and subject to any restrictions or procedures determined by, the Administrative Committee.  Upon the latest of the deadlines specified in (a)(i) or (a)(ii) above that applies to a Participant, such Participant’s Salary Deferral Election and/or Annual Bonus Election, or failure to elect, will become irrevocable for the Plan Year except as provided under this subsection (b).  Each Participant’s Salary Deferral Election and Annual Bonus Election will remain in effect only for the Plan Year for which it is made.  A Participant’s Salary Deferral Election and Annual Bonus Election will be cancelled on the date the Participant receives a hardship distribution under an Affiliate’s tax-qualified retirement plan, but only to the extent that plan provides that a hardship distribution will be deemed necessary to satisfy an immediate and heavy financial need if the employee is prohibited from making elective contributions and employee contributions to all plans maintained by his employer for a period 

14

following the hardship distribution.  A Participant’s Salary Deferral Election and Annual Bonus Election will also be cancelled on the date the Participant Separates from Service.  A Participant’s Salary Deferral Election and Annual Bonus Election may be cancelled in the discretion of the Administrative Committee as permitted under Code Section 409A (for example, on the date the Participant receives an unforeseeable emergency distribution pursuant to Code Section 409A, or hardship distribution under Treasury Regulations Section 1.401(k)-1(d)(3), under any plan maintained by the Affiliates).  If a Participant is transferred from the employment of one participating company to the employment of another participating company, his Salary Deferral Election and Annual Bonus Election with the first participating company will remain in effect and will apply to his compensation from the second participating company until terminated in accordance with this subsection.  
(c)    Amount.  

(i)    Salary Deferrals.  A Participant may elect to defer his Base Salary payable in each regular paycheck up to a maximum of 75% (or such other maximum percentage and/or amount, if any, established by the Administrative Committee from Plan Year to Plan Year).  Notwithstanding the foregoing, a Participant’s deferral for a paycheck will not exceed the amount of his Base Salary payable in such paycheck equal to the amount remaining after required withholdings under Federal Insurance Contributions Act.  

(ii)    Bonus Deferrals.  The Participant may elect to defer his Annual Bonus up to 100% (or such other maximum percentage and/or amount, if any, established by the Administrative Committee from Plan Year to Plan Year).  Any election will be applied to the Participant’s gross Annual Bonus without reduction for any FICA Tax applicable to the Annual Bonus, but the deferral amount will be deducted after any FICA Tax applicable to the Annual Bonus and other tax withholding related to the amount of such FICA Taxes as permitted under Code Section 409A, and the deferral amount will not exceed the amount of the Annual Bonus after reduction for FICA Taxes and such related tax withholding.

(d)    Crediting of Deferral Contributions.  For each Plan Year that a Participant has a Salary Deferral Election or Annual Bonus Election in effect, the Administrative Committee will credit the amount of such Participant’s Deferral Contributions to his Account on, or as soon as practicable after, the Valuation Date on which such amount would have been paid to him but for his Salary Deferral Election or Annual Bonus Election.

3.3    Matching Contributions.  

If and to the extent the Chief Executive Officer of the Controlling Company, his duly authorized designee, the Senior Human Resources Officer of the Controlling Company, or the Compensation Committee determines that the Controlling Company will make Matching Contributions for some or all Participants, then as of the end of each payroll period (or such other date or time as the Administrative Committee, in its sole discretion, determines from time-to-time), the Administrative Committee will credit to each Participant’s Account for such period a Matching Contribution equal to the amount of the Matching Contribution so determined.

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3.4    Discretionary Contributions. 

The amount of a Discretionary Contribution (if any) will be determined by the Chief Executive Officer of the Controlling Company or his duly authorized designee, the Senior Human Resources Officer of the Controlling Company, or the Compensation Committee, in his or its sole discretion.  The Administrative Committee will credit any such Discretionary Contribution to the Account of a Participant as of any Valuation Date.
3.5    Executive Employer Contributions. 

With respect to an Eligible Employee who has been selected for active participation in the Plan with respect to Executive Employer Contributions, the amount of such Participant’s Executive Employer Contribution (if any) will be determined by the Compensation Committee in its sole discretion from time to time.  The Executive Employer Contribution for a Participant for a particular Plan Year will generally be equal to a percentage of the Participant’s Annual Compensation earned during the Plan Year.  For a Participant to receive an Executive Employer Contribution for a Plan Year, he must either (i) have been employed on the last day of that Plan Year; or (ii) have terminated employment during the Plan Year due to (A) his death, (B) his Disability, or (C) his retirement after having attained (1) 15 Years of Employment, or (2) age 65.  The Administrative Committee will credit any such Executive Employer Contribution to the Participant’s Account in the Plan Year following the Plan Year for which it is made as of the later of (i) the Valuation Date determined by the Compensation Committee, or (ii) the date the Recordkeeper credits such contribution to the Participant’s account.
3.6    Debiting of Distributions. 
 
As of each Valuation Date, the Administrative Committee will debit each Participant’s Account for any amount distributed from such Account since the immediately preceding Valuation Date.
3.7    Crediting of Earnings. 

As of each Valuation Date, the Administrative Committee will credit to each Participant’s Account the amount of earnings and/or losses applicable thereto for the period since the immediately preceding Valuation Date.  Such crediting of earnings and/or losses will be effected as of each Valuation Date, as follows:
(a)    General Rule.

(i)    Rate of Return.  The Administrative Committee will first determine a rate of return for the period since the immediately preceding Valuation Date for each of the Investment Funds;

(ii)    Amount Invested.  The Administrative Committee next will determine the amount of (i) each Participant’s Account that was deemed invested in each Investment Fund as of the immediately preceding Valuation Date; minus (ii) the amount of any distributions debited from the amount determined in clause (i) since the immediately preceding Valuation Date; and

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(iii)    Determination of Amount.  The Administrative Committee will then apply the rate of return for each Investment Fund for such Valuation Date (as determined in subsection (a) hereof) to the amount of the Participant’s Account deemed invested in such Investment Fund for such Valuation Date (as determined in subsection (b) hereof), and the total amount of earnings and/or losses resulting therefrom will be credited to such Participant’s Account as of the applicable Valuation Date.

(b)    Cash Dividends.  For Company Stock Units that have been credited to a Participant’s Account on or before a record date for Company Stock cash dividends and that remain credited to his Account through the corresponding dividend payment date, the Administrative Committee will credit to such Participant’s Account (in the subaccount where the related Company Stock Units are held) a dollar amount equal to the amount of cash dividends that would have been paid on his Company Stock Units if each Company Stock Unit constituted one share of Company Stock.  Such dollar amount then will be deemed invested as directed by the Investment Committee.

(c)    Adjustments for Stock Dividends and Splits.  In the event of any subdivision or combination of the outstanding shares of Company Stock, by reclassification, stock split, reverse stock split or otherwise, or in the event of the payment of a stock dividend on Company Stock, or in the event of any other increase or decrease in the number of outstanding shares of Company Stock, other than the issuance of shares for value received by the Controlling Company or the redemption of shares for value, the number of Company Stock Units credited to a Participant’s Account will be adjusted upward or downward, as the case may be, to reflect the subdivision or combination of the outstanding shares.  The amount of increase or decrease in the number of Company Stock Units in such event will be equal to the adjustment that would have been made if each Company Stock Unit credited to a Participant’s Account immediately prior to the event constituted one share of Company Stock.

3.8    Value of Account.
  
(a)    General Rule.  The value of a Participant’s Account as of any date will be equal to the aggregate value of all contributions and all investment earnings deemed credited to his Account as of such date, determined in accordance with this Article III.

(b)    Value of Company Stock.

(i)    New York Stock Exchange.  For all purposes under the Plan for which the value of Company Stock must be determined as of any particular date as of which Company Stock is trading on the New York Stock Exchange, the fair market value per share of Company Stock on such date will be the closing price of Company Stock on the New York Stock Exchange on such date.  If, for any reason, the fair market value per share of Company Stock cannot be ascertained or is unavailable for a particular date, the fair market value of Company Stock on such date will be determined as of the nearest preceding date on which the fair market value can be ascertained pursuant to the terms hereof.

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(ii)    Other Exchange.  For all purposes under the Plan for which the value of Company Stock must be determined as of any particular date on which Company Stock is not trading on the New York Stock Exchange but on which Company Stock is trading on another national securities exchange in the United States, the fair market value per share of Company Stock will be the closing price of the Company Stock on such national securities exchange on such date.  If Company Stock is trading on such other national securities exchange in the United States on such date but no sales of shares of Company Stock occurred thereon, the fair market value per share of Company Stock will be the closing price of the Company Stock on the nearest preceding date.  If on any particular date a public market will exist for Company Stock but Company Stock is not trading on a national securities exchange in the United States, then, if Company Stock is listed on the National Market List by the National Association of Securities Dealers, Inc. (the “NASD”), the fair market value per share of Company Stock will be the last sale price for such shares reflected on said market list for such date, and if Company Stock is not listed on the National Market List of the NASD, then the fair market value per share of Company Stock will be the mean between the bid and asked quotations in the over-the-counter market for such shares on such date.  If there is no bid and asked quotation for Company Stock on such date, the fair market value per share of Company Stock will be the mean between the bid and asked quotations in the over-the-counter market for such shares on the nearest preceding date.  If the fair market value per share of Company Stock cannot otherwise be determined under this Section as of a particular date, such value will be determined by the Administrative Committee, in its sole discretion, based on all relevant available facts.

3.9    Vesting.

(a)    General.  A Participant will at all times be fully vested in his Deferral Contributions and his Matching Contributions to the extent such Matching Contributions were made with respect to deferrals of Base Salary and/or Annual Bonuses considered earned before January 1, 2015, and the earnings credited to his Account with respect to such Deferral and Matching Contributions.  Except as otherwise provided by the Chief Executive Officer of the Controlling Company, his designee, the Senior Human Resources Officer of the Controlling Company, or the Compensation Committee before or at the time such contributions are made, a Participant will at all times be fully vested in his Discretionary Contributions and other Matching Contributions, and the earnings thereon.  

(b)    Executive Employer Contributions.  

(i)    Vesting Date.  Subject to subsection (ii) below, the portion of a Participant’s Account that is attributable to Executive Employer Contributions will be 100% vested on the earliest of: (A) December 31 of the Plan Year in which the Participant completes 15 Years of Employment or 5 Years of Participation, whichever occurs later; (B) the date a Change in Control occurs with respect to the Controlling Company while the Participant is employed by the Affiliates; (C) the date the Participant attains age 65 while employed by the Affiliates; (D) the date of the Participant’s death while employed by the Affiliates; or (E) the date the Participant’s Disability occurs while 

18

employed by the Affiliates; provided, the Compensation Committee may determine a different vesting schedule and/or criteria for any Participant.  

(ii)    Forfeiture.  If a Participant terminates employment with the Affiliates before becoming vested as provided in subsection (i), the portion of such Participant’s Account that is attributable to Executive Employer Contributions will be immediately forfeited.  In addition, notwithstanding the provisions of subsection (i), whether or not the Participant’s Executive Employer Contributions are 100% vested, any remaining balance in a Participant’s Executive Employer Contributions subaccount will be immediately forfeited upon:

(A)    Termination due to Cause of (1) the Participant’s active participation in the Executive Employer Contribution portion of the Plan, or (2) his employment with the Affiliates; or

(B)    The Participant’s violation of the noncompetition and confidentiality restrictions in subsection (iii) below.

(iii)    Noncompetition and Confidentiality.

(A)    Noncompetition.  Any amounts otherwise payable to a Participant under the Plan attributable to Executive Employer Contributions will be immediately forfeited if the Compensation Committee determines that the Participant, without the prior consent of the Board, the Compensation Committee or the Controlling Company’s Chief Executive Officer, directly or indirectly has rendered advisory or any other services to, or has become employed by, or participated or engaged in any business competitive with, any of the business activities of the Controlling Company or any Affiliate in any states, the District of Columbia, any territories, or any foreign countries, in which the Controlling Company or any of its Affiliates do business.  For purposes of this Section, “participated or engaged in” means that the Participant has acted as an agent, consultant, representative, officer, director, member, independent contractor or employee; or as an owner, partner, limited partner, joint venturer, creditor or shareholder (except as a shareholder holding no more than a 1% interest in a publicly traded entity).  As a condition to receiving benefits attributable to Executive Employer Contributions, the Compensation Committee or the Controlling Company’s Chief Executive Officer, in its or his sole discretion and at any time, may require any Participant to enter into a noncompete and/or nonsolicitation agreement with such terms and provisions as the Compensation Committee, or the Controlling Company’s Chief Executive Officer, may dictate; and if the Participant does not execute such agreement in a sufficiently timely manner to permit a payment attributable to Executive Employer Contributions to be made hereunder on the applicable Payment Date, such payment will be forfeited.  

(B)    Confidentiality.  Any amounts otherwise payable to a Participant under the Plan attributable to Executive Employer Contributions will 

19

be immediately forfeited if the Compensation Committee or the Controlling Company’s Chief Executive Officer determines that the Participant, at any time during or following the Participant’s employment with the Affiliates, has disclosed any Confidential Information to any other person or entity (except employees of the Affiliates) without the prior written consent of the Board, the Compensation Committee, or the Controlling Company’s Chief Executive Officer.  For this purpose, “Confidential Information” means (i) all information of or about the Affiliates that would be considered a trade secret under Georgia law; namely, that information which (A) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, other persons who can obtain economic value from its disclosure or use, and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy (this may include, but will not be limited to, technical or nontechnical data, a formula, pattern, compilation, program, device, method, technique, drawing or process, financial data or plans, product plans, or a list of actual or potential customers or suppliers); and (ii) any other information that is material to the Affiliates and not generally available to the public, including, without limitation, information concerning the Affiliates’ methods and plans of operation, production processes, marketing and sales strategies, research and development, know-how, computer programming, style and design technology and plans, non-published product specifications, patent applications, product and raw material costs, pricing strategies, business plans, financial data, personnel records, suppliers and customers (whether or not such information constitutes a trade secret).

(c)    Change in Control.  If a Change in Control occurs with respect to the Controlling Company, Participants will be or become immediately 100% vested in the Matching Contributions and Discretionary Contributions that are not otherwise vested as of the date of such Change in Control.  Matching Contributions and Discretionary Contributions that the Chief Executive Officer of the Controlling Company, his designee, the Senior Human Resources Officer of the Controlling Company, or the Compensation Committee determines are not immediately vested and that are credited to Participants’ Account after the date of a Change in Control will continue to vest in accordance with the applicable vesting schedules as applied to such Matching and Discretionary before the Change in Control.

(d)    Other Vesting Schedules.  In addition to the vesting dates provided in subsections (a) and (c), a Participant’s Matching Contributions and/or Discretionary Contributions, and the earnings credited with respect thereto, will vest at the time or times provided in any employment agreement, offer letter or other valid written agreement between the Participant and the Affiliates.

3.10    Notice to Participants of Account Balances.  

At least once for each Plan Year, the Administrative Committee will cause a written statement of a Participant’s Account balance to be distributed to the Participant.

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3.11    Good Faith Valuation Binding.
  
In determining the value of the Accounts, the Administrative Committee will exercise its best judgment, and all such determinations of value (in the absence of bad faith) will be binding upon all Participants and their Beneficiaries.
3.12    Errors and Omissions in Accounts.
  
If an error or omission is discovered in the Account of a Participant, the Administrative Committee, in its sole discretion, will cause appropriate, equitable adjustments to be made as soon as administratively practicable following the discovery of such error or omission.

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ARTICLE IV
INVESTMENT FUNDS
4.1    Selection by Retirement Plans Investment Committee.  

From time to time, the Retirement Plans Investment Committee will select two or more Investment Funds for purposes of determining the rate of return on amounts deemed invested in accordance with the terms of the Plan.  The Retirement Plans Investment Committee may change, add or remove Investment Funds on a prospective basis at any time(s) and in any manner it deems appropriate.
4.2    Participant Direction of Deemed Investments.
  
Each Participant generally may direct the manner in which his Account will be deemed invested in and among the Investment Funds; provided, any amounts credited to the Company Stock Fund will at all times remain credited to such fund until the date such amount is distributed to the Participant or his Beneficiary.  Any Participant investment directions permitted hereunder will be made in accordance with the following terms:
(a)    Nature of Participant Direction.  The selection of Investment Funds by a Participant will be for the sole purpose of determining the rate of return to be credited to his Account, and will not be treated or interpreted in any manner whatsoever as a requirement or direction to actually invest assets in any Investment Fund or any other investment media.  The Plan, as an unfunded, nonqualified deferred compensation plan, at no time will have any actual investment of assets relative to the benefits or Accounts hereunder.

(b)    Investment of Contributions.  Each Participant may make an Investment Election prescribing the percentage of the future contributions that will be deemed invested in each Investment Fund.  An initial Investment Election of a Participant will be made as of the date the Participant commences participation in the Plan and will apply to all contributions credited to such Participant’s Account after such date.  Such Participant may make subsequent Investment Elections as of any Business Day, and each such election will apply to all such specified contributions credited to such Participant’s Account after the Administrative Committee (or its designee) has a reasonable opportunity to process such election pursuant to such procedures as the Administrative Committee may determine from time-to-time.  Any Investment Election made pursuant to this subsection with respect to future contributions will remain effective until changed by the Participant.

(c)    Investment of Existing Account Balances.  Each Participant may make an Investment Election prescribing the percentage of his existing Account balance that will be deemed invested in each Investment Fund.  Such Participant may make such Investment Elections as of any Business Day, and each such election will be effective after the Administrative Committee (or its designee) has a reasonable opportunity to process such election.  Each such election will remain in effect until changed by such Participant.

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(d)    Administrative Committee Discretion.  The Administrative Committee will have complete discretion to adopt and revise procedures to be followed in making such Investment Elections.  Such procedures may include, but are not limited to, the process of making elections, the permitted frequency of making elections, the incremental size of elections, the deadline for making elections and the effective date of such elections.  Any procedures adopted by the Administrative Committee that are inconsistent with the deadlines or procedures specified in this Section will supersede such provisions of this Section without the necessity of a Plan amendment.

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ARTICLE V
PAYMENT OF POST-409A ACCOUNT BALANCES

5.1    Amount of Benefit Payments for Post-409A Account.

Payment of a benefit amount from a Participant’s Post-409A Account as of any Payment Date hereunder will be calculated by determining the vested amount credited to the Participant’s Post-409A Account that is payable on such Payment Date, determined as of the Valuation Date on which the distribution is processed.  For purposes of this subsection, the “Valuation Date on which such distribution is processed” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.  
5.2    Timing and Form of Distribution of Post-409A Account.

(a)    Timing of Distributions.

(i)    Default Timing of Distribution.  Except as provided in Sections 5.3, 5.4, 5.5 and 5.6, and subsections (a)(ii), (a)(iii) and (c) hereof, the Payment Date for a Participant’s Post-409A Account will be:  (i) within 90 days after the date the Participant Separates from Service, in the case of a Participant who is not a Key Employee on the date he Separates from Service; or (ii) 6 months after the date the Participant Separates from Service, in the case of a Participant who is a Key Employee on the date he Separates from Service.  

(ii)    Payment Date Election.  A Participant may elect, at the time he makes a Salary Deferral Election or Annual Bonus Election, to have the Payment Date for the portion of his Post-409A Account balance attributable to such election (including any vested Matching Contributions related to Deferral Contributions made pursuant to such Salary Deferral Election or Annual Bonus Election, respectively) be a specified date that is after the one-year period following the end of the Plan Year to which the election applies.  Notwithstanding the foregoing election timing requirements, if the Participant elected a Payment Date before January 1, 2009, such Payment Date election will apply.  A Participant may elect a different Payment Date with respect to his Salary Deferral Election and with respect to his Annual Bonus Election for each Plan Year.  

(iii)    Matching Contributions Made after Separation.  Notwithstanding subsections (i) and (ii), the Payment Date with respect to Matching Contributions, which are credited to the Participant’s Account after the last day of the Plan Year in which the Participant Separates from Service or dies, will be the later of (A) the date determined under subsections (i) and (ii) or Section 5.4 (as applicable), or (B) a date within the calendar year following the calendar year in which the Participant incurs a Separation from Service or dies, respectively; provided, it generally is anticipated that such Payment Date will occur, within 60 days following the date such Matching Contributions are credited to the Participant’s Account.

(b)    Form of Distribution for Post-409A Account Balances. 

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(i)    Single-Sum Payment.  Except as provided in Section 5.5 and 5.6 and subsections (b)(ii) and (c) hereof, the portion of a Participant’s Post-409A Account payable on a given Payment Date will be distributed in the form of a single lump-sum payment.  

(ii)    Annual Installments.

(A)    Election of Annual Installments.  A Participant may elect, at the time he makes a Salary Deferral Election or Annual Bonus Election, to receive the benefit attributable to such election (including any vested Matching Contributions related to Deferral Contributions made pursuant to the Salary Deferral Election or Annual Bonus Election) in the form of annual installments.  A Participant may elect a different form of payment with respect to his Salary Deferral Election and with respect to his Annual Bonus Election for each Plan Year.  Notwithstanding the foregoing election timing requirements, if the Participant elected a form of payment before January 1, 2009, such election will apply.

(B)    Installment Periods.  The installment payments will be made in substantially equal annual installments over a period of not less than 2 years and not more than 10 years (adjusted for earnings between payments in the manner described in Section 3.7), beginning on the applicable Payment Date.  The number of annual installment payments elected by the Participant will be specified at the time the Participant makes the deferral election in which the installment payments are elected.  

(c)    Modifications of Form and Timing.
  
(i)    Availability of Election.  A Participant may make one or more elections to (i) delay the payment (or commencement) of the portion of his Post-409A Account attributable to a selected Plan Year’s Salary Deferral Election or Annual Bonus Election, and/or (ii) change the form of payment to:  (A) have the portion of his Post-409A Account attributable to such election paid in the form of annual installment payments as described above, (B) change the number of installment payments elected, or (C) change installments to a lump sum.  Any election under this subsection will specify the number of installment payments elected, if any.

(ii)    Delay in Payment Date.  In the event of an election under subsection (i), the Payment Date for the portion of the Participant’s Post-409A Account attributable to such election will be delayed to 5 years after the date of payment that applied prior to the election, or such later date as may be elected by the Participant under subsection (i).   

(iii)    Restrictions.  Any election under this subsection (c) will not take effect until 12 months after the date on which the election is made, and, if made within 12 months before the payment was scheduled to begin or be made under the previous payment terms, will not be effective.  In the case of an amount payable on a specified 

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date selected under Section 5.2(a)(ii) or subsection (c)(i), an election under this subsection (c) will be made at least 1 year before such specified date. 

(d)    Medium of Payment.  All distributions will be made in the form of cash, except for amounts deemed invested in the Company Stock Fund, which will be distributed in whole shares of Company Stock with fractional shares paid in cash.

(e)    Order of Distribution.  If any portion of a Participant’s Post-409A Account is deemed invested in the Company Stock Fund, any partial distributions from such Participant’s Post-409A Account will be made first from such amounts.  After all amounts deemed invested in the Company Stock Fund have been distributed, any remaining amounts will be distributed in cash.  

(f)    Cash-out.

(i)    Employee Deferral Cashout.  Except as provided in subsection (v) below, if at any time a Participant’s Post-409A Account balance attributable to the aggregate of his Deferral Contributions does not exceed the applicable dollar amount under Code Section 402(g)(1)(B), the Administrative Committee may elect, in its sole discretion, to pay the Participant’s entire Post-409A Account balance attributable to Deferral Contributions in an immediate single-sum payment.  For purposes of determining the amount of Deferral Contributions in a Participant’s Post-409A Account in order to apply this provision, any deferrals of compensation that the Participant has elected under this or any other nonqualified deferred compensation plan maintained by an Affiliate that is an “account balance plan” subject to Code Section 409A will be considered as part of the Participant’s Post-409A Account balance attributable to Deferral Contributions hereunder.

(ii)    Cashout of Employer Contributions.  Except as provided in subsection (v) below, if at any time a Participant’s Post-409A Account balance, other than amounts attributable to Deferral Contributions, does not exceed the applicable dollar amount under Code Section 402(g)(1)(B), the Administrative Committee may elect, in its sole discretion, to pay such portion of the Participant’s Post-409A Account balance in an immediate single-sum payment.  For purposes of determining the amount of a Participant’s Post-409A Account other than Deferral Contributions in order to apply this provision, any deferrals of compensation other than Participant elective deferrals under this or any other nonqualified deferred compensation plan maintained by an Affiliate that is an “account balance plan” subject to Code Section 409A will be considered as part of the Participant’s Post-409A Account balance other than amounts attributable to Deferral Contributions hereunder.

(iii)    Documentation of Determination.  Any exercise of the Administrative Committee’s discretion pursuant to subsections (i) and (ii) will be evidenced in writing no later than the date of the distribution.

(iv)    Mandatory Cash-Out.  Notwithstanding anything in this section 5.2 or a Participant’s election to the contrary, subject to subsection (v) below, if a 

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Participant’s total vested Post-409A Account balance is less than $25,000 on the date of the Participant’s Separation from Service, such Participant’s Post-409A Account will be distributed in a single lump-sum payment within 90 days after the date of the Participant’s Separation from Service.

(v)    Six Month Delay for Key Employees.  Notwithstanding the foregoing, to the extent provided by Code Section 409A, with respect to a Participant who is a Key Employee on the date he Separates from Service, no payment under this subsection (f) made on account of such Participant’s Separation from Service will be made within 6 months after the date the Participant Separates from Service.

5.3    Change in Control.

If a Participant who is employed by the Affiliates Separates from Service during the 1-year period immediately following a Change in Control, such Participant’s Post-409A Account will be paid in a single lump sum, and the Payment Date for such Participant’s Post-409A Benefit will be (i) the date the Participant Separates from Service, in the case of a Participant who is not a Key Employee on the date he Separates from Service; or (ii) 6 months after the date the Participant Separates from Service, in the case of a Participant who is a Key Employee on the date he Separates from Service.
5.4    Death Benefits.

If a Participant dies before full payment of his Post-409A Account is made, his Beneficiary or Beneficiaries will be entitled to receive a distribution of the entire vested amount credited to such Participant’s Post-409A Account.  The Post-409A Account will be distributed to such Beneficiary or Beneficiaries in the form of a single-sum payment, and the Payment Date will be the 60th day after the date of the Participant’s death. 
5.5    Distribution of Post-409A Account Discretionary Contributions.

(a)    Determination by Grantor.  Subject to Sections 5.2(f), 5.3 and 5.4, distribution of any Discretionary Contributions from a Participant’s Post-409A Account will be made in the form and at the time specified by the Chief Executive Officer of the Controlling Company (to the extent duly authorized) or his duly authorized designee, the Senior Human Resources Officer of the Controlling Company, or the Compensation Committee, as applicable, when such Discretionary Contribution is declared.

(b)    Participant Election in Absence of Designation by Grantor.  If the Chief Executive Officer of the Controlling Company (to the extent duly authorized) or his duly authorized designee, the Senior Human Resources Officer of the Controlling Company, or the Compensation Committee, as applicable, does not designate a time and form of payment for Discretionary Contributions as provided in subsection (a), then such Discretionary Contribution will be distributed at the same time and in the same form of payment applicable to such Participant’s Salary Deferral Election, if any (including any modifications thereafter made in accordance with the provisions of this Article), applicable to the Plan Year in which the Discretionary Contribution is made, but only if either (i) such Salary Deferral Election was made before the first day of the first Plan Year in which services to which the Discretionary 

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Contribution are attributable are performed, or (ii) such Salary Deferral Election was made pursuant to Section 3.2(a)(ii) and was made before the first day on which services to which the Discretionary Contribution are attributable are performed.  
(c)    Default Payment.  If no payment elections apply under subsections (a) and (b) for a particular Discretionary Contribution, such Discretionary Contributions will be distributed in the form provided in Section 5.2(b)(i), and the Payment Date for such Discretionary Contributions will be determined under Section 5.2(a)(i), subject to Sections 5.2(f), 5.3 and 5.4.

5.6    Distribution of Executive Employer Contributions.
  
(a)    Generally.  Except as provided in Sections 5.2(f), 5.3 and 5.4, the Payment Date for the portion of a Participant’s Account that is attributable to Executive Employer Contributions will be the date that is 6 months after the date of the Participant’s Separation from Service.  Except as provided in subsection (b) below, such benefit will be paid in a single lump sum in cash.

(b)    Installment Election.  Subject to Sections 5.2(f), 5.3 and 5.4, a Participant may elect, in accordance with procedures established by the Administrative Committee in its sole discretion, with respect to a given Plan Year, to receive payment of the portion of his Account attributable to Executive Employer Contributions related to services performed during such Plan Year in the form of substantially equal annual installments over a period of not less than 2 years and not more than 20 years (adjusted for earnings between payments in the manner described in Section 3.7), beginning on the applicable Payment Date.  Such election must be made before the beginning of the Plan Year to which it relates.  A Participant may make a separate election as to form of payment for each Plan Year for which he receives Executive Employer Contributions.

(c)    Change in Form of Payments.  A Participant may make a one-time election to change a form of payment otherwise applicable under subsections (a) and (b) to any other form permitted under this Section, only if such election is made at least 12 months before the Payment Date described in subsection (a) hereof; provided, to the extent any such change in payment form is effective, the Payment Date for the applicable benefit will be delayed 5 years; and provided further, no such election will be effective if any portion of the payment(s) would thereby be delayed beyond 20 years from the 6-month anniversary of the Participant’s Separation from Service.

(d)    Other Distribution Rules.  If a Participant’s last Executive Employer Contribution is to be credited to his Account after his Separation from Service or death, the Payment Date for such amount will be the later of (i) the date determined in subsection (a) or (c) hereof or Section 5.4 (as applicable), or (ii) the calendar year following the calendar year in which the Participant incurs a Separation from Service or dies, respectively; provided, it generally is anticipated that such Payment Date will occur both within such calendar year and within 60 days after such Executed Employer Contribution is credited to the Participant’s Account.  Sections 5.2(d) and (f) and Sections 5.3 and 5.4 will apply to the distribution of a Participant’s Executive Employer Contributions.

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5.7    Hardship Withdrawals.

Upon receipt of an application for an in-service hardship distribution and the Administrative Committee’s decision, made in its sole discretion, that a Participant has suffered a Financial Hardship, the Administrative Committee will cause the applicable Participating Company to pay an in-service distribution to such Participant from the Participant’s vested Post-409A Account, excluding any portion of such Account that is attributable to Executive Employer Contributions.  Such distribution will be paid in a lump sum payment within 90 days after the date that the Administrative Committee makes its determination that the Participant has suffered a Financial Hardship (assuming that the Financial Hardship exists on that date), which must be prior to the Participant’s Separation from Service.  The amount of such lump sum payment will be limited to the amount of such Participant’s vested Post-409A Account reasonably necessary to meet the Participant’s requirements resulting from the Financial Hardship.  Determinations of amounts reasonably necessary to satisfy the emergency need will take into account any additional compensation that is available under the Plan due to cancellation of a deferral election upon a payment due to a Financial Hardship.  However, the determination of amounts reasonably necessary to satisfy the emergency need will not take into account any additional compensation that due to the Financial Hardship is available under the Plan or another nonqualified deferred compensation plan but has not actually been paid.  If payment is made hereunder upon a Financial Hardship, it will be so designated at the time of payment.  The amount of such distribution will reduce the Participant’s Post-409A Account balance as provided in Section 3.5.
5.8    Taxes.

(a)    Amounts Payable Whether or Not Account is in Pay Status.  If the whole or any part of any Participant’s or Beneficiary’s Post-409A Account hereunder will become subject to FICA Tax or any state, local or foreign tax obligations, which a Participating Company will be required to pay or withhold prior to the time the Participant’s Post-409A Account becomes payable hereunder, the Participating Company will have the full power and authority to withhold and pay such tax and related taxes as permitted under Code Section 409A.

(b)    Amounts Payable Only if Account is in Pay Status.  If the whole or any part of any Participant’s or Beneficiary’s Post-409A Account hereunder is subject to any taxes which a Participating Company will be required to pay or withhold at the time the Post-409A Account becomes payable hereunder, the Participating Company will have the full power and authority to withhold and pay such tax out of any monies or other property that the Participating Company holds for the account of the Participant or Beneficiary, excluding, except as provided in this Section, any portion of the Participant’s Post-409A Account that is not then payable.

5.9    Offset of Post-409A Account by Amounts Owed to the Affiliates.

Notwithstanding anything in the Plan to the contrary, the Administrative Committee may, in its sole discretion, offset any benefit payment or payments of a Participant’s or Beneficiary’s Post-409A Account under the Plan by any amount owed by such Participant or Beneficiary (whether or not such obligation is related to the Plan) to the Affiliates.  Notwithstanding the foregoing, no such offset will apply before the Post-409A Account is otherwise payable under the Plan, unless the following requirements are satisfied: (i) the debt 

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owed to the Affiliates was incurred in the ordinary course of the relationship between the Participant and the Affiliates, (ii) the entire amount of offset under this sentence and any similar provision in the Aflac Incorporated Market Director Deferred Compensation Plan in a single taxable year does not exceed $5,000, and (iii) the offset occurs at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant or Beneficiary.
5.10    No Acceleration of Post-409A Account Payments.

Except as otherwise provided in this Section, no payment scheduled to be made under this Article V may be accelerated.  Notwithstanding the foregoing, the Administrative Committee, in its sole discretion, may accelerate any payment scheduled to be made under this Article V in accordance with Code Section 409A (for example, upon certain terminations of the Plan, limited cashouts or to avoid certain conflicts of interest); provided, a Participant may not elect whether his scheduled payment will be accelerated pursuant to this sentence.

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ARTICLE VI
PAYMENT OF PRE-409A ACCOUNT BALANCES

6.1    Benefit Payments of Pre-409A Accounts Upon Termination of Service for Reasons Other Than Death.

(a)    General Rule Concerning Benefit Payments.  In accordance with the terms of subsection (b) hereof, if a Participant terminates his employment with the Controlling Company and all of its Affiliates for any reason other than death, he (or his Beneficiary, if he dies after such termination of employment but before distribution of his Account) will be entitled to receive or begin receiving a distribution of the entire vested amount credited to his Pre-409A Account, determined as of the Valuation Date on which such distribution is processed.  For purposes of this subsection, the “Valuation Date on which such distribution is processed” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.

(b)    Timing of Distribution.

(i)    Except as provided in subsection (b)(ii) hereof, the Pre-409A Account payable to a Participant under this Section will be distributed as soon as administratively feasible after the date the Participant terminates his employment with the Controlling Company and all of its Affiliates for any reason other than death.

(ii)    A Participant was permitted to elect, at the time he made his initial Salary Deferral or Annual Bonus Election or other deferral election under the Plan, to have his Pre-409A Account payable under this Section paid (or commenced) on any date (whether before or after the date his employment terminates, but not earlier than 1 year after the end of the Plan Year for which such election applies) specified in such election.  A Participant was permitted to elect a different benefit commencement date with respect to his Salary Deferral and Annual Bonus Elections; provided, unless determined otherwise by the Administrative Committee, a Participant may elect no more than 2 different benefit commencement dates with respect to his Salary Deferral and Annual Bonus Elections.  The Administrative Committee will pay (or commence the payment of) the Participant’s Pre-409A Account as soon as administratively feasible after the time specified in such election; provided, with respect to each initial scheduled benefit commencement date, (as determined in accordance with the preceding sentence or subsection (b)(i) hereof), the Participant may make a one-time election in writing, at least 1 year before such initial scheduled benefit commencement date, to delay the payment (or commencement) of his total benefit payable on such date to a later date, and such total benefit will be paid (or commenced) as soon as administratively feasible after such delayed date.

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6.2    Form of Distribution for Pre-409A Account.

(a)    Single-Sum Payment.  Except as provided in subsection (b) hereof, the Pre-409A Account payable to a Participant under Section 6.1 will be distributed in the form of a single-sum payment. 
 
(b)    Annual Installments.  A Participant was permitted to elect, at the time he made his initial Salary Deferral or Annual Bonus Election or other deferral election under the Plan, to have his Pre-409A Account payable under Section 6.1 paid in the form of annual installment payments.  If a Participant did not initially elect the installment form of distribution for any portion of his benefit, that portion of his benefit will be paid in the form of a lump sum payment unless, at least 1 year before his initial scheduled benefit commencement date (as determined in accordance with Section 6.1), the Participant makes a one-time election in writing to receive such benefit in the form of installment payments (in accordance with the terms of this subsection).  The following terms and conditions will apply to installment payments made with respect to a Participant’s Pre-409A Account under the Plan:

(i)    The installment payments will be made in substantially equal annual installments (adjusted for investment income between payments in the manner described in Section 3.6); provided, in no event will such payments be made over a period in excess of 10 years.  The initial value of the obligation for the installment payments will be equal to the amount of the Participant’s Pre-409A Account balance calculated in accordance with the terms of Section 6.1(a).

(ii)    If a Participant dies after payment of his benefit from the Plan has begun, but before his entire benefit has been distributed, the remaining amount of his Pre-409A Account balance will be distributed to the Participant’s designated Beneficiary in the form of a single-sum payment.

(iii)    Notwithstanding any election under this Section 6.2(b) to the contrary, with respect to any Participant whose Pre-409A Account distribution as of the date it is scheduled to commence in accordance with Section 6.1(b) is less than $10,000 per year, or such other minimum amount as may be determined by the Administrative Committee in its sole discretion, such benefit will be paid in a lump sum payment.

(c)    Multiple Forms of Distribution.  To the extent a Participant elects multiple benefit commencement dates in accordance with Section 6.1(b)(ii), such Participant may elect, with respect to the total benefit corresponding to each benefit commencement date, to receive such total benefit in the form of either a single-sum payment or annual installments as set forth above.

(d)    Change in Control.  Notwithstanding anything in Section 6.1 or this Section 6.2 or any election made by the Participant to the contrary, any Participant (i) who terminates employment with all Affiliates for a reason other than his death within the 12 month period beginning on the date a Change in Control occurs,  or (ii) whose installment payments as elected under Section 6.2(b) have commenced or are scheduled to commence as of the date of the Change in Control, will receive a full distribution of the Pre-409A Account payable under 

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Section 6.1(a) in the form of a lump sum payment.  Such payment will be made as soon as administratively feasible after the date the Participant terminates employment with all Affiliates for any reason other than death or the date of the Change in Control, as applicable. 
(e)    Form of Assets.  All distributions will be made in the form of cash, except for amounts deemed invested in the Company Stock Fund (which will be distributed in whole shares of Company Stock with fractional shares paid in cash).

(f)    Order of Distribution.  If any portion of a Participant’s Pre-409A Account is deemed invested in the Company Stock Fund, any partial distributions from such Participant’s Pre-409A Account will be made first from such amounts.  After all amounts deemed invested in the Company Stock Fund have been distributed, any remaining amounts will be distributed in cash, as provided for in subsection (e) hereof.

6.3    Death Benefits.

If a Participant dies before payment of his Pre-409A Account from the Plan is made or commenced, the Beneficiary or Beneficiaries designated by such Participant in his latest beneficiary designation form filed with the Administrative Committee will be entitled to receive a distribution of the total of the entire vested amount credited to such Participant’s Pre-409A Account, determined as of the Valuation Date on which such distribution is processed.  For purposes of this Section, the “Valuation Date on which such distribution is processed” refers to the Valuation Date established for such purpose by administrative practice, even if actual payment is made or commenced at a later date due to delays in valuation, administration or any other procedure.  The Pre-409A Account will be distributed to such Beneficiary or Beneficiaries, as soon as administratively feasible after the date of the Participant’s death, in the form of a single-sum payment in cash or Company Stock as prescribed in Section 6.2(e).
6.4    In-Service Distributions.

(a)    Hardship Distributions.  Upon receipt of an application for an in-service hardship distribution and the Administrative Committee’s decision, made in its sole discretion, that a Participant has suffered a Financial Hardship, the Administrative Committee will cause the Controlling Company to pay an in service distribution to such Participant from such Participant’s Pre-409A Account.  Such distribution will be paid in a lump sum payment, in cash or Company Stock as prescribed in Section 6.2(e), as soon as administratively feasible after the Administrative Committee determines that the Participant has incurred a Financial Hardship.  The amount of such lump sum payment will be limited to the amount reasonably necessary to meet the Participant’s requirements resulting from the Financial Hardship.  The amount of such distribution will reduce the Participant’s Pre-409A Account balance as provided in Section 3.5.

(b)    Distributions with Forfeiture.  Notwithstanding any other provision of this Article VI to the contrary, a Participant may elect, at any time prior to termination of his employment with the Controlling Company and all of its Affiliates, to receive a distribution of a portion of the total of the entire vested amount credited to his Pre-409A Account, determined as of the Valuation Date on which such distribution is processed.  Such distribution will be made in the form of a single-sum payment, in cash or Company Stock as prescribed in Section 6.2(e), as 

33

soon as administratively feasible after the date of the Participant’s election under this subsection (b).  At the time such distribution is made, an amount equal to 10% of the amount distributed will be permanently and irrevocably forfeited (and, if the distribution request is for 90% or more of such Participant’s Pre-409A Account, the forfeiture amount will be deducted from his distribution amount to the extent there otherwise will be an insufficient remaining Pre-409A Account balance from which to deduct this forfeiture).  In addition, the Participant receiving such distribution will not be eligible to actively participate in the Plan during the Plan Year next following the Plan Year in which the distribution is made.  
6.5    Taxes.

If the whole or any part of any Participant’s or Beneficiary’s Pre-409A Account hereunder will become subject to any estate, inheritance, income or other tax which the Participating Company will be required to pay or withhold, the Participating Company will have the full power and authority to withhold and pay such tax out of any monies or other property in its hand for the account of the Participant or Beneficiary whose interests hereunder are so affected, except any portion of the Post-409A Account that is not then payable.  Prior to making any payment, the Participating Company may require such releases or other documents from any lawful taxing authority as it will deem necessary.

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ARTICLE VII
CLAIMS

7.1    Rights.
  
If a Participant or Beneficiary has any grievance, complaint or claim concerning any aspect of the operation or administration of the Plan, including but not limited to claims for benefits (collectively referred to herein as “claim” or “claims”), such claimant will submit the claim in accordance with the procedures set forth in this Article.  All such claims must be submitted within the “applicable limitations period.”  The “applicable limitations period” will be 2 years, beginning on (i) in the case of any lump-sum payment, the date on which the payment was made, (ii) in the case of a periodic payment, the date of the first in the series of payments, or (iii) for all other claims, the date on which the action complained of occurred.  Additionally, upon denial of an appeal pursuant to Section 7.2(b), a Participant or Beneficiary will have 90 days within which to bring suit for any claim related to such denied appeal; any such suit initiated after such 90-day period will be precluded.
7.2    Claim Procedure.
  
(a)    Initial Claim.  Claims for benefits under the Plan may be filed in writing with the Administrative Committee on forms or in such other written documents (if any) as the Administrative Committee may prescribe.  The Administrative Committee will furnish to the claimant written notice of the disposition of a claim within 90 days after the application therefor is filed; provided, if special circumstances require an extension, the Administrative Committee may extend such 90-day period by up to an additional 90 days, by providing a notice of such extension to the claimant before the end of the initial 90-day period.  In the event the claim is denied, the notice of the disposition of the claim will provide the specific reasons for the denial, citations of the pertinent provisions of the Plan, and, where appropriate, an explanation as to how the claimant can perfect the claim and/or submit the claim for review (where appropriate), and a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse determination on review.

(b)    Appeal.  Any Participant or Beneficiary who has been denied a benefit, or his duly authorized representative, will be entitled, upon request to the Administrative Committee, to appeal the denial of his claim.  The claimant (or his duly authorized representative) may review pertinent documents related to the Plan and in the Administrative Committee’s possession in order to prepare the appeal.  The request for review, together with a written statement of the claimant’s position, must be filed with the Administrative Committee no later than 60 days after receipt of the written notification of denial of a claim provided for in subsection (a).  The Administrative Committee’s decision will be made within 60 days following the filing of the request for review; provided, if special circumstances require an extension, the Administrative Committee may extend such 60-day period by up to an additional 60 days, by providing a notice of such extension to the claimant before the end of the initial 60-day period.  If unfavorable, the notice of decision will explain the reasons for denial, indicate the provisions 

35

of the Plan or other documents used to arrive at the decision, and state the claimant’s right to bring a civil action under ERISA Section 502(a).
7.3    Satisfaction of Claims.
  
Any payment to a Participant or Beneficiary will to the extent thereof be in full satisfaction of all claims hereunder against the Administrative Committee and the Participating Companies, any of whom may require such Participant or Beneficiary, as a condition to such payment, to execute a receipt and release therefor in such form as will be determined by the Administrative Committee or the Participating Companies.  If receipt and release is required but the Participant or Beneficiary (as applicable) does not provide such receipt and release in a timely enough manner to permit a timely distribution in accordance with the general timing of distribution provisions in the Plan, such payment will be forfeited.  

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ARTICLE VIII
SOURCE OF FUNDS; TRUST

8.1    Source of Funds.
  
Except as provided in this Section and Section 8.2 (relating to the Trust), each Participating Company will provide the benefits described in the Plan from its general assets.  However, to the extent that funds in such Trust allocable to the benefits payable under the Plan are sufficient, the Trust assets may be used to pay benefits under the Plan.  If such Trust assets are not sufficient to pay all benefits due under the Plan, then the appropriate Participating Company will have the obligation, and the Participant or Beneficiary who is due such benefits will look to such Participating Company to provide such benefits. 
8.2    Trust.
  
(a)    Establishment.  To the extent determined by the Controlling Company, the Participating Companies will transfer the funds necessary to fund benefits accrued hereunder to the Trustee to be held and administered by the Trustee pursuant to the terms of the Trust Agreement.  Except as otherwise provided in the Trust Agreement, each transfer into the Trust Fund will be irrevocable as long as a Participating Company has any liability or obligations under the Plan to pay benefits, such that the Trust property is in no way subject to use by the Participating Company; provided, it is the intent of the Controlling Company that the assets held by the Trust are and will remain at all times subject to the claims of the general creditors of the Participating Companies. 

(b)    Distributions.  Pursuant to the Trust Agreement, the Trustee will make payments to Plan Participants and Beneficiaries in accordance with a payment schedule provided by the Participating Company.  The Participating Company will make provisions for the reporting and withholding of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the terms of the Plan and will pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been reported, withheld and paid by the Participating Company.

(c)    Status of the Trust.  No Participant or Beneficiary will have any interest in the assets held by the Trust or in the general assets of the Participating Companies other than as a general, unsecured creditor.  Accordingly, a Participating Company will not grant a security interest in the assets held by the Trust in favor of the Participants, Beneficiaries or any creditor.

(d)    Change in Control.  Notwithstanding anything in this Article to the contrary, in the event of a Change in Control, each of the Participating Companies will immediately transfer to the Trustee an amount equal to the aggregate of all benefit amounts (determined as of the Valuation Date as of which the Change in Control occurs) of all Participants for which such Participating Company is liable for payment in accordance with the terms of Section 3.1(c).  The funds so transferred will be held and administered by the Trustee pursuant to the terms of the Trust Agreement and the foregoing provisions of this Section.

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8.3    Funding Prohibition under Certain Circumstances.

Notwithstanding anything in this Article to the contrary, no assets will be set aside to fund benefits under the Plan if such setting aside would be treated as a transfer of property under Code Section 83 pursuant to Code Section 409A(b).  

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ARTICLE IX
ADMINISTRATIVE AND RETIREMENT PLANS INVESTMENT   COMMITTEES

9.1    Action of Administrative Committee.
  
Action of the Administrative Committee may be taken with or without a meeting of committee members; provided, action will be taken only upon the vote or other affirmative expression of a majority of the committee members qualified to vote with respect to such action.  If a member of the committee is a Participant or Beneficiary, he will not participate in any decision which solely affects his own benefit under the Plan.  For purposes of administering the Plan, the Administrative Committee will choose a secretary who will keep minutes of the committee’s proceedings and all records and documents pertaining to the administration of the Plan.  The secretary may execute any certificate or any other written direction on behalf of the Administrative Committee.
9.2    Rights and Duties of Administrative Committee.
  
The Administrative Committee will administer the Plan and will have all the powers necessary to accomplish that purpose, including (but not limited to) the following:
(a)    To construe, interpret and administer the Plan;

(b)    To make determinations required by the Plan, and to maintain records regarding Participants’ and Beneficiaries’ benefits hereunder;

(c)    To compute and certify to the Participating Company the amount and kinds of benefits payable to Participants and Beneficiaries, and to determine the time and manner in which such benefits are to be paid;

(d)    To authorize all disbursements by the Participating Company pursuant to the Plan;

(e)    To maintain all the necessary records of the administration of the Plan;

(f)    To make and publish such rules for the regulation of the Plan as are not inconsistent with the terms hereof;

(g)    To delegate to other individuals or entities from time to time the performance of any of its duties or responsibilities hereunder;

(h)    To have all powers elsewhere conferred upon it; and

(i)    To hire agents, accountants, actuaries, consultants and legal counsel to assist in operating and administering the Plan.

39

The Administrative Committee will have the exclusive right in its discretion to construe and interpret the Plan, to decide all questions of eligibility for benefits and to determine the amount of such benefits, and its decisions on such matters will be final and conclusive on all parties.

9.3    Compensation, Indemnity and Liability.
  
The Administrative Committee and the Retirement Plans Investment Committee and their members will serve as such without bond and without compensation for services hereunder.  All expenses of the Administrative Committee and Retirement Plans Investment Committee will be paid by the Participating Companies.  No member of the committees will be liable for any act or omission of any other member of the committees, nor for any act or omission on his own part, except with regard to his own willful misconduct.  The Participating Companies will indemnify and hold harmless the Administrative Committee and the Retirement Plans Investment Committee, and each member thereof, against any and all expenses and liabilities, including reasonable legal fees and expenses, arising out of his membership on the Administrative Committee and/or Retirement Plans Investment Committee, excepting only expenses and liabilities arising out of his own willful misconduct.
9.4    Retirement Plans Investment Committee.

(a)    Appointment.  The Retirement Plans Investment Committee will initially consist of those individuals who have been so appointed by the Board or one of its Committees.  A member may resign at any time by written resignation to the remaining members of the Retirement Plans Investment Committee.  Members of the Retirement Plans Investment Committee may be added, removed and/or replaced pursuant to the membership procedures that are established for the Retirement Plans Investment Committee from time to time. 

(b)    Duties.  The Retirement Plans Investment Committee will have the following responsibility and authority:

(i)    To appoint one or more persons to serve as investment manager with respect to all or part of the Trust, if any; and

(ii)    To provide the Trustee with general investment policy guidelines and directions to assist the Trustee respecting investments made pursuant to the terms of the Plan.

9.5    Delegation and Discretion.

(a)    Delegation.  The Board, the Compensation Committee, the Controlling Company’s Chief Executive Officer, the Controlling Company’s Senior Human Resources Officer, the Administrative Committee, and Retirement Plans Investment Committee may delegate any authority or responsibilities they may have under the Plan to any other person.

(b)    Discretion.  The Board, the Compensation Committee, the Controlling Company’s Chief Executive Officer, the Controlling Company’s Senior Human Resources Officer, the Administrative Committee, and Retirement Plans Investment Committee (and their designees) shall have full and complete discretion to exercise all authority and carry out all 

40

responsibilities given to them under the Plan, and their decisions and actions shall be binding on all Participants, Beneficiaries and other persons.

41

ARTICLE X
AMENDMENT AND TERMINATION

10.1    Amendments.
  
The Administrative Committee will have the right, in its sole discretion, to amend the Plan in whole or in part at any time and from time to time; provided, any amendment that may result in significantly increased expenses under the Plan must be approved by the Compensation Committee.  Any amendment will be in writing and executed by a duly authorized officer of the Controlling Company.  An amendment to the Plan may modify its terms in any respect whatsoever; provided, no such action may reduce the amount already credited to a Participant’s Account without the affected Participant’s written consent.  All Participants and Beneficiaries will be bound by such amendment.
10.2    Termination of Plan.
  
(a)    Freezing.  The Controlling Company, through action of the Board or the Compensation Committee, reserves the right to discontinue and freeze the Plan at any time, for any reason.  Any action to freeze the Plan will be taken by the Board in the form of a written Plan amendment executed by a duly authorized officer of the Controlling Company.  Upon the freezing of the Plan, Salary Deferral Elections and Annual Bonus Elections will not apply to Base Salary or Annual Bonuses earned after the Plan Year in which the Plan is frozen.  

(b)    Termination.  The Controlling Company expects to continue the Plan but reserves the right to terminate the Plan and fully distribute all Accounts under the Plan at any time, for any reason; provided, the distribution of Post-409A Accounts will be subject to the restrictions provided under Code Section 409A (including, to the extent required by Code Section 409A, the 6-month delay that applies to distributions to Key Employees following Separation from Service).  Any action to terminate the Plan will be taken by the Board or the Compensation Committee in the form of a written Plan amendment executed by a duly authorized officer of the Controlling Company.  If the Plan is terminated, each Participant will become 100 percent vested in his Account.  Such termination will be binding on all Participants and Beneficiaries.

42

ARTICLE XI
MISCELLANEOUS

11.1    Beneficiary Designation.

(a)    General.  Participants will designate and from time to time may redesignate their Beneficiaries in such form and manner as the Administrative Committee may determine. 

(b)    No Designation or Designee Dead or Missing.  In the event that:

(i)    a Participant dies without designating a Beneficiary;

(ii)    the Beneficiary designated by a Participant is not surviving when a payment is to be made to such person under the Plan, and no contingent Beneficiary has been designated; or

(iii)    the Beneficiary designated by a Participant cannot be located by the Administrative Committee within the maximum time limit for payment of benefits to such person (or within 1 year from the date benefits are to be paid to such person in the case of the Participant’s Pre-409A Account);

then, in any of such events, the Beneficiary of such Participant with respect to any benefits that remain payable under the Plan will be the Participant’s Surviving Spouse, if any, and if not, the estate of the Participant.

11.2    Distribution Pursuant to Domestic Relations Order.
  
Upon receipt of a valid domestic relations order (determined in accordance with the rules applicable to a tax-qualified retirement plan under Code Section 401(a)) requiring the distribution of all or a portion of a Participant’s vested Account to an alternate payee, the Administrative Committee will cause the Controlling Company to pay a distribution to such alternate payee.  
11.3    Taxation.
 
It is the intention of the Controlling Company that the benefits payable hereunder will not be deductible by the Participating Companies nor taxable for federal income tax purposes to Participants or Beneficiaries until such benefits are paid by the Participating Company, or the Trust, as the case may be, to such Participants or Beneficiaries.  When such benefits are so paid, it is the intention of the Controlling Company that they will be deductible by the Participating Companies under Code Section 162.  The Plan is intended to satisfy the requirements of Code Section 409A with respect to Post-409A Accounts, the Plan will be interpreted in all ways consistent with such intention, and the Administrative Committee will use its reasonable best efforts to interpret and administer the Plan in accordance with such requirements.  

43

11.4    Elections Prior to 2009.

To the extent not consistent with the terms of this Plan, Salary Deferral Election forms and Annual Bonus Election forms submitted under the Plan prior to the Effective Date for Plan Years beginning after December 31, 2004, will be deemed modified to conform to the provisions of this document.  Without limiting the generality of the foregoing, (i) any reference to payment as soon as administratively feasible following separation from service will be deemed to mean within 90 days following separation from service; (ii) any statement that the election will remain in effect for all future years until changed will be deemed modified to conform to subsection 3.2(b); (iii) any statement that if payments are less than $10,000 annually they will be paid in a single lump sum will be modified to provide for the cash-out distributions described in subsection 5.2(f) instead; and (iv) any statement that benefits will be paid beginning on the first day of the calendar quarter following Separation from Service will be deemed to provide for payment within 90 days after Separation from Service instead.
11.5    No Employment Contract.

Nothing herein contained is intended to be nor will be construed as constituting a contract or other arrangement between a Participating Company and any Participant to the effect that the Participant will be employed by the Participating Company for any specific period of time.
11.6    Headings.
 
The headings of the various articles and sections in the Plan are solely for convenience and will not be relied upon in construing any provisions hereof.  Any reference to a section will refer to a section of the Plan unless specified otherwise.
11.7    Gender and Number.
 
Use of any gender in the Plan will be deemed to include all genders when appropriate, and use of the singular number will be deemed to include the plural when appropriate, and vice versa in each instance.
11.8    Assignment of Benefits. 

The right of a Participant or his Beneficiary to receive payments under the Plan may not be anticipated, alienated, sold, transferred, pledged, encumbered, attached or garnished by creditors of such Participant or Beneficiary, except:  (i) by will or by the laws of descent and distribution and then only to the extent permitted under the terms of the Plan; or (ii) pursuant to a valid domestic relations order, in accordance with Section 11.2.
11.9    Legally Incompetent.
 
The Administrative Committee, in its sole discretion, may direct that payment be made to an incompetent or disabled person, whether because of minority or mental or physical disability, to the guardian of such person or to the person having custody of such person, without 

44

further liability on the part of the Participating Company for the amount of such payment to the person on whose account such payment is made.
11.10    Governing Law.
  
The Plan will be construed, administered and governed in all respects in accordance with applicable federal law (including ERISA) and, to the extent not preempted by federal law, in accordance with the laws of the State of Georgia.  If any provisions of this instrument are held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof will continue to be fully effective.  

IN WITNESS WHEREOF, the Controlling Company has caused the Plan to be executed by its duly authorized officer on the  20th  day of August, 2015.

	
			
	AFLAC INCORPORATED

	 
	 
	 

	By:
	 /s/ Daniel P. Amos

	 
	 
	 

	Title:
	 Chairman and CEO

45

EXHIBIT A

Participating Companies
(See §1.36)

	
					
	Company Names
	 
	Effective Date

	 
	 
	 
	 
	 

	Communicorp, Inc.
	 
	Original Effective Date of the Plan

	 
	 
	 
	 
	 

	American   Family   Life   Assurance 
	 
	Original Effective Date of the Plan

	Company of New York
	 
	 
	 

	 
	 
	 
	 
	 

	American   Family   Life   Assurance
	 
	Original Effective Date of the Plan

	Company of Columbus
	 
	 
	 

	 
	 
	 
	 
	 

	AFLAC International, Inc.
	 
	Original Effective Date of the Plan

	 
	 
	 
	 
	 

	Continental    American    Insurance
	 
	August 1, 2010

	Company
	 
	 
	 

	 
	 
	 
	 
	 

	Aflac Benefit Advisors, Inc.
	 
	February 2, 2012

	(formerly Aflac Benefit Solutions, Inc.)
	 
	 
	 

A-1Exhibit

Aflac Incorporated 3rd Quarter 2015 10-Q
EXHIBIT 10.29

STATE OF GEORGIA
COUNTY OF MUSCOGEE
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT
THIS AGREEMENT, made and entered into as of the 20th day of August, 2015, by and between AFLAC INCORPORATED, a Georgia corporation, hereinafter referred to as “Corporation,” and DANIEL P. AMOS, a resident of said State and county, hereinafter referred to as “Employee”; 
W I T N E S S E T H  T H A T:
WHEREAS, Employee and Corporation previously entered into an employment agreement dated August 1, 1993, as subsequently amended (the “Original Agreement”), and Employee is currently employed by Corporation as its Chief Executive Officer; and 
WHEREAS, Corporation and Employee desire to amend and restate the Original Agreement and to set forth the existing and continuing terms and conditions of Employee’s employment by Corporation as its Chief Executive Officer;
NOW, THEREFORE, the parties, for and in consideration of the mutual covenants and agreements hereinafter contained, do contract and agree as follows, to-wit:
1.Purpose and employment.  The purpose of this Agreement is to define the relationship between Corporation as an employer and Employee as an employee and Chief Executive Officer of Corporation. 

2.Duties.  Employee agrees to continue to provide executive management services as Chief Executive Officer of Corporation to Corporation and its subsidiaries and affiliates on a full-time and exclusive basis; provided, however, nothing shall preclude Employee from serving on boards of directors of other corporations; engaging in charitable and community affairs or managing his own or his family’s personal investments.

3.Performance.  Employee agrees to devote all necessary time and his best efforts in the performance of his duties as Chief Executive Officer of Corporation on behalf of Corporation and its subsidiaries and affiliates.

4.Term.  The term of employment under the Original Agreement began on August 1, 1993, for a period of three (3) years until July 31, 1996.  Under the Original Agreement, effective each August 1, beginning effective August 1, 1994, the scheduled term of the Original Agreement was automatically extended for successive one (1)-year periods.  Most recently, the term was automatically extended on August 1, 2015, such that the current term is through July 31, 2018.  Under this Agreement, the term shall continue to be extended for one (1)-year periods as of each August 1, beginning August 1, 2016, unless written notice of termination is given prior to such annual date by one party to the other party that the Agreement will not be extended by its terms. 

5.Base Salary.  For all the services rendered by Employee, Corporation shall continue to pay Employee a base salary of one million four hundred forty one thousand one hundred dollars ($1,441,100.00) per year commencing January 1, 2015.  The Compensation Committee of the Board may determine to defer and contribute to the Aflac, Inc. Executive Deferred Compensation Plan any portion of said base salary, and the amount of said salary that is not so deferred will be payable to Employee in accordance with Corporation’s normal payroll procedures.  Employee’s base salary may be changed annually during the term of this Agreement and any extensions hereof as determined by the Compensation Committee of the Board of Directors (the “Compensation Committee of the Board”).  

6.Documentation of increase in base salary. Any increase in base salary determined by the Compensation Committee of the Board under Paragraph 5 shall be documented in Corporation’s records and communicated to the Employee, as the Compensation Committee of the Board may determine. 

7.Management Incentive Plan.  In addition to the base salary paid to Employee in accordance with Paragraph 5, Corporation shall for each calendar year of Employee’s employment by Corporation, beginning (for purposes of this Agreement) with the calendar year 2015, continue to pay Employee, as performance bonus compensation, an amount determined each year under Corporation’s current Management Incentive Plan (i.e., short-term incentive program) with a target level based on at least two hundred and twenty percent (220%)  of base salary.  Nothing in this Paragraph shall preclude Employee from receiving additional discretionary bonuses approved by the Compensation Committee of the Board.  Amounts payable to Employee under the Management Incentive Plan (or any successor or other executive bonus program) shall be payable in such manner, at such times and in such forms, as prescribed by the terms of the Management Incentive Plan (or successor or other program).

8.Employee Benefits.  Employee shall be eligible to participate with other employees of Corporation in all fringe benefit programs applicable to similarly-situated employees generally which may be authorized and adopted from time to time by the Board, including without limitation:  a qualified pension plan, a qualified 401(k) and profit sharing plan, a disability income or sick pay plan, an accident and health plan (including medical reimbursement and hospitalization and major medical benefits), and a group life insurance plan.  In addition, Corporation shall furnish to Employee such other “fringe” or employee benefits as are provided to similarly-situated key executive employees of Corporation and such additional employee benefits which the Compensation Committee of the Board shall determine to be appropriate to Employee’s duties and responsibilities as Chief Executive Officer of Corporation, including, without limitation, reimbursement of legal and accounting expenses incurred by Employee in connection with the preparation of his employment or other agreements with Corporation and any expenses for legal, accounting or financial services incurred by Employee in connection with his employment.  Any reimbursements made pursuant to the preceding sentence shall be paid as soon as practicable but no later than ninety (90) days after Employee submits evidence of such expenses to Corporation (which payment date shall in no event be later than the last day of the calendar year following the calendar year in which the expense was incurred).  The amount of such reimbursements during any calendar year shall not affect the benefits provided in any other calendar year, and the right to any such benefits shall not be subject to liquidation or exchange for another benefit.

2

9.Retirement plan for senior officers.  Employee shall continue to participate in Corporation’s Retirement Plan for Senior Officers which provides retirement, medical, and other benefits to certain senior officers of Corporation, upon all of the terms and conditions of the Plan, said Plan being entitled “Retirement Plan for Senior Officers (as amended and restated January 1, 2009).”

10.Equity award plans.  Employee shall be eligible to be awarded stock options, restricted stock awards, and other equity awards (collectively, “Equity Awards”) to purchase Corporation’s common stock under Corporation’s Long-Term Incentive Plans for selected key employees and directors during the term of this Agreement.

11.Working Facilities and Expenses.  Employee shall continue to be provided with an office, books, periodicals, stenographic and technical help, ground and air transportation, and such other facilities, equipment, supplies and services suitable to his position and adequate for the performance of his duties.  Corporation shall continue to pay Employee’s dues in such social and country clubs, civic clubs and business societies and associations as shall be appropriate in facilitating Employee’s job performance and in the best interest of Corporation.  Corporation shall also continue to pay all appropriate business liability insurance and any business licenses and fees pertaining to the services rendered by Employee hereunder. Employee is encouraged and is expected, from time to time to incur reasonable expenses for promoting the business of Corporation, including expenses for social and civic club memberships and participation, entertainment, travel and other activities associated with Employee’s duties.  The cost of all such activities shall be the expense of Corporation unless the Compensation Committee of the Board shall determine in advance that any such expense of Employee should be paid by Employee.

Any expense reimbursements made to satisfy the terms of this Paragraph 11 shall be paid as soon as practicable but no later than ninety (90) days after Employee submits evidence of such expenses to Corporation (which payment date shall in no event be later than the last day of the calendar year following the calendar year in which the expense was incurred).  The amount of such reimbursements during any calendar year shall not affect the benefits provided in any other calendar year, and the right to any benefits under this Paragraph shall not be subject to liquidation or exchange for another benefit.  
12.Vacation.  Employee shall continue to be entitled to his vacation time with pay during each calendar year in accordance with Corporation’s vacation policy for senior executive employees.  In addition, Employee shall be entitled to such holidays as Corporation shall recognize for its employees generally.

13.Sickness and total disability.  Employee’s absence from work because of sickness or accident (not resulting in Employee becoming “totally disabled,” as that term is hereinafter defined) shall not result in any adjustment in Employee’s compensation or other benefits under this Agreement.

Should Employee become totally disabled as a result of sickness or accident and unable to adequately perform his regular duties prescribed under this Agreement, his base salary (which shall continue to be adjusted as provided for in Paragraph 5), together with incentive bonuses under Corporation’s Management Incentive Plan and his participation in Corporation’s employee

3

benefit programs and retirement plans shall continue without reduction except as hereinafter provided, during the continuance of such disability for a period not exceeding the earlier of (1) the end of the term of this Agreement or any extension hereof or (2) a period of five hundred and forty-seven (547) calendar days for each continuous disability.  Payments pursuant to this Paragraph 13 shall be reduced by any amounts paid to Employee during any such period of disability from time to time under any disability programs, plans or policies maintained by Corporation, its subsidiaries or affiliates.
Should Employee’s total disability continue for a period beyond the end of the term of this Agreement or in excess of five hundred and forty-seven (547) calendar days, this Agreement shall, at the end of such period which first occurs, be automatically terminated.  If, however, prior to such time, Employee’s total disability shall have ceased and he shall have resumed the adequate performance of his duties hereunder, this Agreement shall continue in full force and effect and Employee shall be entitled to continue his employment hereunder and to receive his full compensation and other benefits as though he had not been disabled; provided, however, unless Employee shall adequately perform his duties hereunder for a continuous period of at least sixty (60) calendar days following a period of total disability before Employee again becomes totally disabled, he shall not be entitled to start a new five hundred and forty-seven (547)-day period under this Paragraph, but instead may only continue under the remaining portion of the original five hundred and forty-seven (547)-day period of total disability.  In the event Employee shall not adequately perform his duties hereunder for a continuous period of at least sixty (60) calendar days following a period of total disability, the running of the original five hundred and forty-seven (547)-day period shall cease during the time of Employee’s adequate performance of his duties hereunder before Employee again becomes totally disabled.
It is understood that for purposes of this Paragraph 13, Employee shall, upon his becoming totally disabled, be given such additional “credited service” if necessary to fully qualify Employee under Corporation’s Retirement Plan for Senior Officers and to provide a survivor annuity to Employee’s spouse under the Plan; provided, these provisions shall not affect the timing or form of his distributions under said plan, which shall be determined solely under the terms of said plan.

For the purpose of this Agreement, the term “totally disabled” or “total disability” shall mean Employee’s inability to adequately perform his executive and management duties hereunder on account of accident or illness.  It is understood that Employee’s occasional sickness or other incapacity of short duration may not result in his being or becoming “totally disabled;” however, such illness or incapacity could constitute Employee’s being or becoming “totally disabled” if such illness or incapacity is prolonged or recurring.
		
	14.
	Termination of employment.

A.    Termination by Corporation.  Corporation may, when acting in accordance with resolutions adopted by a two-third’s (2/3) majority vote of its entire Board acting at a meeting called for the purpose of considering Employee’s termination, terminate this Agreement and Employee’s employment (the date thereof being referred to as his “Actual Termination Date”), at any time, with or without “good cause” (“good cause” being hereinafter defined), by giving at least thirty (30) days’ written notice to Employee of its intention to terminate Employee’s

4

employment without “good cause” or immediately upon giving written notice to Employee of its intention to terminate Employee’s employment for “good cause”; provided, however, with respect to termination without “good cause,” Corporation may, at its election, terminate Employee’s actual employment (so that Employee no longer renders services on behalf of Corporation) at any time during said thirty (30)-day period.
B.    Termination by employee.  Employee may terminate this Agreement, at any time either for good reason (being hereinafter defined) or without good reason, by giving at least sixty (60) days’ written notice to Corporation of his intention to terminate his employment.
C.    Pay and benefits.  In the event of any termination of Employee’s employment hereunder, Corporation shall be obligated to:
(1)    Pay Employee his base salary (as provided for in Paragraph 5 of this Agreement) earned through his Actual Termination Date;
(2)    Unless Employee’s employment has been terminated by Corporation for good cause, pay Employee his performance bonus compensation (as provided for in Paragraph 7 of this Agreement) that has accrued and vested but not been paid as of his Actual Termination Date;
(3)    Unless Employee’s employment has been terminated by Corporation for good cause, continue to honor all Equity Awards, subject to the terms thereof, granted to Employee prior to the termination date stated in said written notice; provided, in the event Employee’s termination is (i) by Corporation without good cause (and not by Corporation for good cause), or (ii) by Employee for good reason (but not by Employee without good reason) and not by Employee with the intention to enter a business competitive with that of Corporation, and if Employee timely signs and does not revoke a release as provided in subparagraph H of this Paragraph 14, all of said Equity Awards not already vested shall become fully vested as of the last day of his employment; provided, any Equity Awards that vest based on performance will remain subject to the applicable performance criteria, and Employee’s performance will be deemed to be at target while actual vesting based on performance of Corporation will be applied in the manner and at the time provided in the agreements for such Equity Awards;
(4)    Continue to pay or provide to Employee all of the retirement, health, life and disability benefits, as are provided for in this Agreement or under any programs, plans or policies covering Employee at the time of any notice of termination, through his Actual Termination Date; and
(5)    Pay Employee and/or his wife such benefits as provided for in the Retirement Plan for Senior Officers (see Paragraph 9 above), in a manner and in such forms and at such times, as provided under the terms of said plan.
D.    Good cause.  For purposes of this Agreement, “good cause” shall mean: that, in the sole discretion of the Board, any of the following have occurred or exist: (i) the willful and deliberate failure of Employee to substantially perform his executive and management duties 

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hereunder for reasons other than Employee’s sickness, injury or disability; (ii) the willful and deliberate conduct by Employee which results in substantial injury or damage to Corporation; or (iii) the conviction or plea of guilty by Employee of a felony crime. A termination of Employee for “good cause” based on clause (i) or (ii) of the preceding sentence will take effect immediately, unless the Board, in its sole discretion, allows Employee a right to cure, in which case such termination for “good cause” will take effect thirty (30) days (or such shorter period as determined by the Board) after Employee receives from Corporation written notice of its intent to terminate Employee’s employment and Corporation’s description of the alleged cause, unless Employee, in the opinion of the Board, during such permitted cure period, makes significant progress toward remedying (and as soon as practicable thereafter, substantially completes the remedy of) the events or circumstances constituting “good cause;” a termination of Employee for “good cause” based on clause (iii) of the preceding sentence will take effect immediately.
E.    Good reason.  For purposes of this Paragraph 14, “good reason” shall mean the termination of employment by Employee upon the occurrence of any one or more of the following events:
(1)    Any breach by Corporation of the terms and conditions of this Agreement affecting Employee’s salary and bonus compensation, any employee benefit, Equity Awards or the loss of any of Employee’s titles or positions with Corporation; 
(2)    A significant diminution of Employee’s duties and responsibilities;
(3)    The assignment to Employee of any duties inconsistent with or significantly different from his duties and responsibilities existing at the time of such assignment;
(4)    A purported termination of Employee’s employment by Corporation other than as permitted by this Agreement; 
(5)    The relocation of Corporation’s principal office or of Employee’s own office to any place beyond twenty-five (25) miles from the current principal office of Corporation in Columbus, Georgia; or
(6)    The failure of any successor to Corporation to expressly assume and agree to discharge Corporation’s obligations to Employee under this Agreement, in form and substance satisfactory to Employee.
F.    Termination while disabled.  If Employee is totally disabled at the time any such notice of termination is given, then, notwithstanding the provisions of this Paragraph 14, Corporation shall nevertheless continue to pay Employee, as his sole compensation hereunder, the compensation and other benefits for the remaining period of Employee’s total disability as provided for in Paragraph 13 hereinabove.  It is understood that in no event shall such disabled Employee be entitled to compensation under this Paragraph 14 in addition to the continuation of his compensation under Paragraph 13.
G.    Separate Payments.  Each payment made to Employee pursuant to this Paragraph 14 shall be treated as a separate payment for purposes of Code Section 409A.

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H.    Release Requirement.  As a condition to Employee receiving any benefits under subparagraph C(3) of this Paragraph 14, Employee must sign (and not revoke) a written release agreement (“Release”) containing any terms specified by Corporation for (i) Employee’s release of Corporation and its affiliates from all claims arising from Employee’s employment or termination, (ii) Employee’s non-revocation of that release during the seven (7)-day period applicable to age-based claims, and (iii) Employee’s promise to comply with specified confidentiality, noncompetition and/or nonsolicitation provisions.  Corporation will terminate Employee’s eligibility for severance pay and benefits if he fails to sign, if he revokes, or if he fails to follow the terms of this Release and if it is not signed and returned to Corporation within the earlier of (i) the deadline specified by Corporation, or (ii) sixty (60) days after Employee’s Actual Termination Date.  Employee must sign the Release after his Actual Termination Date.  In the event that any payment under subparagraph C(3) of this Paragraph 14 is not exempt from Code Section 409A, the payment timing is based on the signing of this Release, and the period in which Employee could timely sign and return the release spans two (2) calendar years, such payment shall in all events be made in the second such calendar year.  Notwithstanding the foregoing, if the payment timing of any portion of payments or benefits, which rely solely on the short-term deferral rule to be exempt from Code Section 409A, would be delayed beyond the short-term deferral rule period due to Employee’s late signing of the Release, such portion shall be forfeited.
15.Cooperation after notice of termination.  Following any such notice of termination, Employee shall fully cooperate with Corporation in all matters relating to the winding up of his pending work on behalf of Corporation and the orderly transfer of any such pending work to other employees of Corporation as may be designated by the Board; and to that end, Corporation shall be entitled to full-time services of Employee through his actual termination date and such full-time or part-time services of Employee as Corporation may reasonably require during all or any part of the sixty (60)-day period that both follows any such notice of termination and his actual termination date; provided, the parties acknowledge that, depending on the level of services so required, the provision of such services may delay the timing of Employee’s separation from service.
16.Death of employee.  In the event of Employee’s death during the term of this Agreement or any extension hereof, this Agreement shall terminate immediately, and Employee’s estate shall be entitled to receive terminal pay in an amount equal to the amount of Employee’s base salary and any performance bonus compensation actually paid by Corporation to Employee during the last thirty-six (36) months of his life, said terminal pay to be paid in thirty-six (36) equal monthly installments beginning on the first day of the month next following the month during which Employee’s death occurs.  Terminal pay as herein provided for in this Paragraph shall be in addition to amounts otherwise receivable by Employee or his estate under this or any other agreements with Corporation or under any employee benefit or retirement plans established by Corporation and in which Employee is participating at the time of his death.  In addition, Corporation shall honor all Equity Awards, subject to the terms thereof, granted to Employee prior to his death and Employee or his estate shall, if not otherwise vested, become fully vested in said options as of the date of Employee’s death.  For purposes of this Paragraph, Employee shall, upon his death, be given such additional “credited service” as necessary to fully qualify Employee under Corporation’s Retirement Plan for Senior Officers and to provide a survivor annuity to Employee’s spouse under the Plan; provided, these provisions shall not affect the 

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timing or form of his distributions from such Plan, which shall be determined solely under the terms of such Plan.  
17.Covenants not to compete and not to disclose confidential information and trade secrets

A.    Covenant against competition.  During employment and for a twenty-four (24)-month period after Employee’s Actual Termination Date resulting from (i) Employee’s voluntary termination without “good reason” (as defined in Paragraph 14), or (ii) Corporation’s termination of Employee for “good cause” (as defined in Paragraph 14), Employee will not, on his own behalf, or on behalf of any other person or entity, compete with Aflac and its affiliated companies (the “Aflac Companies”) by providing in the Restricted Territory (as defined in subparagraph A(3) of this Paragraph 17) to any Competing Business (as defined in subparagraph A(2) of this Paragraph 17), services similar to those Employee provided to the Aflac Companies with respect to the Aflac Business (as defined in subparagraph A(1) of this Paragraph 17), in circumstances in which Employee’s responsibilities and duties are substantially similar to those performed by him during the 24-month period ending on his Actual Termination Date.
(1)    “Aflac Business” means the Aflac Companies’ insurance company business, which the Aflac Companies operate throughout the United States (including the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam) and throughout Japan, and which includes but is not limited to (i) the development, underwriting marketing, distribution and sale of individual and group voluntary insurance products, including accident, cancer and other specified diseases, dental, hospital confinement indemnity, hospital confinement sickness indemnity, hospital intensive care, life, annuities, lump sum cancer, lump sum cancer critical illness, specified health event, short term disability and vision; (ii) the offering of un-reimbursed medical, dependent care, and transportation flexible spending accounts; and (iii) operating a private medical and insurance product exchange and similar enrollment services.  “Aflac Business” will also include any additional insurance and reimbursement account products and services, which become part of the business conducted by the Aflac Companies, whether through acquisition and/or development, and in which or to which Employee has had direct exposure in his position with the Aflac Companies.  Similarly, “Aflac Business” will not include any business operation, which formerly was part of the business conducted by the Aflac Companies and which ceased being a part thereof due to divestiture or discontinuation of that part of the business.
(2)    “Competing Business” means any person, concern or entity, which is engaged in, or conducts a business substantially the same as, the Aflac Business or any part thereof.
(3)    “Restricted Territory” means the area within the United States (including the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam) and Japan.
B.    Covenant against disclosure of confidential information and trade secrets.  Employee acknowledges that, during the term of his employment under this Agreement, Employee will be privy to (i) certain confidential and proprietary information of Aflac Companies, which constitutes trade secrets as defined in the Georgia Trade Secret Act of 1990 (the “Trade Secret Act”), and (ii) certain other confidential and proprietary information of 

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Corporation that may not constitute trade secrets as so defined.  With respect to such Trade Secrets and other confidential and proprietary information, Employee covenants and agrees, as follows:
(1)    Employee agrees to not disclose to any third party, without the prior written consent of the Board or unless necessary to perform his duties and responsibilities hereunder, the processes, machines, technical documentation, computer programs, customer lists, identity of customers, business plans, marketing plans and techniques, pricing data, financial data, marketing programs, customer files, financial institution files, technical expertise and know how, and other confidential and proprietary information and trade secrets, whether as defined in the Trade Secret Act or which may lie beyond it (collectively, the “Property”), which have been or will be provided to Employee by any of the Aflac Companies and are confidential and proprietary property of any of the Aflac Companies.  Employee further agrees not to use any Property to his personal benefit or the benefit of any third party.  Employee also agrees to return to Corporation all such Property which is tangible upon or before his Actual Termination Date.  Notwithstanding the foregoing, the Property protected hereunder will not include any data or information that has been disclosed to the public (except where such public disclosure has been made by Employee without authorization), that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.  The restrictions in this Paragraph are in addition to, and not in lieu of, any rights or remedies Corporation may have available pursuant to the laws of the State of Georgia to prevent the disclosure of trade secrets and proprietary information, with such laws including but not limited to the Trade Secrets Act.
(2)    Employee’s obligations under the nondisclosure provisions in this Paragraph 17.B (i) will apply to Property that does not constitute trade secrets during the term of Employee’s employment hereunder and for as long as the Property remains confidential, and (ii) will apply to Property that constitutes trade secrets until such Property no longer constitutes trade secrets and is no longer confidential.
18.Enforcement of restrictive covenants.

A.    Blue Penciling.  The parties agree that if any court finds that any provision in Paragraph 17 or this Paragraph 18 is overly broad such that it is unenforceable under applicable state law, the court may reform that provision to narrow its scope to the extent necessary to render it enforceable.
B.    Severability.  Employee acknowledges and agrees that the covenant against competition and the covenant against disclosure contained in Paragraphs 17.A and 17.B, respectively, are reasonable and valid and do not impose limitations greater than those that are necessary to protect the business interests and confidential information of the Aflac Companies.  The parties agree that the invalidity or unenforceability of any one or more of such covenants, other provisions, or parts thereof (collectively the “Covenants”) will not affect the validity or enforceability of the other Covenants, all of which are inserted conditionally on their being valid in law.  In the event one or more Covenants contained herein are ruled invalid (after application of subparagraph A of this Paragraph), this Agreement will be construed as if such invalid Covenant had not been inserted.  The parties hereto agree that the Covenants contained in this Agreement are severable and divisible; that none of such Covenants depends on any other

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Covenant for its enforceability; that such Covenants constitute enforceable obligations between the parties; that each such Covenant will be construed as an agreement independent of any other Covenant of this Agreement; and that the existence of any claim or cause of action by one party to this Agreement against the other party to this Agreement, whether predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by any party to this Agreement of any such Covenant.
C.    Injunctive Relief.  Employee hereby agrees that any remedy at law for any breach of the Covenants will be inadequate and that any of the Aflac Companies will be entitled to apply for injunctive relief in addition to any other remedy the Aflac Companies might have under this Agreement.
D.    Claim for Damages.  Employee acknowledges that, in addition to seeking injunctive relief, any of the Aflac Companies may bring a cause of action against him for any and all losses, liabilities, damages, deficiencies, costs (including, without limitation, court costs), and expenses (including, without limitation, reasonable attorneys’ fees), incurred by the Aflac Companies and arising out of or due to his breach of any Covenant or agreement contained in Paragraph 17.  Notwithstanding anything herein to the contrary, the breach of the nondisclosure Covenant set forth in Paragraph 17.B will cause Employee to forfeit any rights to the vesting of Equity Awards under subparagraph (C)(3) of Paragraph 14; and Employee agrees to repay to the Aflac Companies any amount already paid under such subparagraph.  
E.    Survival.  Paragraph 17 and this Paragraph 18, to the extent applicable, will survive the termination of this Agreement and Employee’s employment.  In addition, neither the termination of this Agreement nor Employee’s employment will terminate any other obligations or rights that, by the specific terms of this Agreement, extend beyond such termination.
19.Right to acquire insurance.  If Employee shall terminate his employment hereunder for any reason other than death, he may, at his election, acquire any insurance policies upon his life owned by Corporation by giving written notice of his election to Corporation within ninety (90) days after his termination of employment.  Such policies shall be transferred to the employee upon his payment to Corporation of the then interpolated terminal reserve value of said insurance.  In the event any policies transferred to Employee as herein provided shall not have an interpolated terminal reserve value, then the amount to be paid by Employee shall be its then fair market value. 

20.No requirement to seek employment and no offset.  Corporation agrees that, if Employee’s employment is terminated by Corporation during the term of this Agreement, Employee is not required to seek other employment or attempt in any way to reduce the amounts payable to Employee by Corporation pursuant to the applicable terms of this Agreement; it being understood and agreed that the amount of any payment or benefit to Employee provided for hereunder shall not be reduced by any compensation or other benefits earned by Employee as a result of his employment by another employer or by Corporation’s attempt to offset any amount claimed to be owed by Employee to Corporation or otherwise.

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21.Waiver of breach or violation not deemed continuing.  The waiver by either party of a breach or violation of any provisions of this Agreement shall not operate as or be construed to be a waiver of any subsequent breach hereof.

22.Notices.  Any and all notices required or permitted to be given under this Agreement will be sufficient if furnished in writing, sent by registered or certified mail to his last known residence in the case of Employee or to its principal office in Columbus, Georgia, in the case of Corporation.

23.Authority.  The provisions of this Agreement required to be approved by the Board of Directors of Corporation or the appropriate committee thereof have been so approved and authorized. 

24.Arbitration.  From time-to-time, Employee agrees to sign and become a party to any arbitration agreement with such terms as Corporation may provide, and the terms of such arbitration agreement shall be incorporated herein by this reference and shall apply to all claims under this Agreement; provided, notwithstanding the foregoing, any claims or actions, whether for damages, injunctive relief or other relief, for any violation or breach of the Covenants set forth in Paragraphs 17 and 18, including but not limited to the actions described in subparagraphs C and D of Paragraph 18, (i) shall be excluded from the arbitration agreement and its applicability, and (ii) shall be subject to the jurisdiction of the applicable court as set forth in Paragraph 25.

           /s/ KC                                    /s/ DPA            
Initials for Corporation         Initials of Employee 

25.Governing Law.  This Agreement shall be interpreted, construed and governed according to the laws of the State of Georgia.  Any legal action brought in regard to this Agreement, which is not subject to arbitration as provided in Paragraph 23 or is brought to enforce the finding of the arbitrator, shall be brought in the Superior Court of Muscogee County, Georgia, or the United States District Court of the Southern District of Georgia, whichever applies, and the parties waive jurisdiction and venue in any other court.  

26.Paragraph Headings.  The paragraph headings contained in this Agreement are for convenience only and shall in no manner be construed as part of this Agreement.

27.Two originals.  This Agreement is executed in two (2) originals, each of which shall be deemed an original and together shall constitute one and the same Agreement, with one original being delivered to each party hereto.

28.Code Section 409A.  This Agreement is intended to comply with the requirements of Code Section 409A and shall be construed accordingly.  Any payments or distributions to be made to Employee under this Agreement upon a “separation from service” (as defined above) of amounts classified as “nonqualified deferred compensation” for purposes of Code Section 409A, payable due to a separation from service and not exempt from Section 409A, shall in no event be made or commence until six (6) months after such separation from service.  Each payment of 

11

nonqualified deferred compensation under this Agreement shall be treated as a separate payment for purposes of Code Section 409A.  Notwithstanding the foregoing, Corporation shall not be liable to Employee or any other person if the Internal Revenue Service or any court determines for any reason that any payments under this Agreement are subject to taxes or penalties under Section 409A.

29.Tax Withholding.  Corporation shall withhold all applicable taxes from any amounts payable under this Agreement, including, but not limited to, any federal, foreign, state and local taxes; and all such amounts described in this Agreement shall be paid net of such taxes.

30.Amendments and Waivers.  Except as otherwise specified herein, this Agreement may be amended, and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of Corporation and Employee.

IN WITNESS WHEREOF, Corporation has hereunto caused its name to be signed and its seal to be affixed by its duly authorized officers, and Employee has hereunto set his hand and seal, all being done in duplication original with one original being delivered to each party as of the 20th day of August, 2015.
                                                                                    

                                                                                                           	
		
	Daniel P. Amos

	 
	 

	 /s/ Daniel P. Amos

	   Employee

	 
	 

	AFLAC INCORPORATED

	 
	 

	/s/ Kriss Cloninger, III

	By:    
	Kriss Cloninger, III

	 
	President and Treasurer

	 
	 

	Attest: J. Matthew Loudermilk

	 

	/s/ J. Matthew Loudermilk

	Vice President, Corporate Secretary

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