Document:

Exhibit 10.34

 Exhibit 10.34 
 LOCKHEED MARTIN CORPORATION 
 NONQUALIFIED CAPITAL ACCUMULATION PLAN 
 (Effective Date – January 1, 2007 ) 
 ARTICLE I 
 PURPOSES OF THE PLAN 
 The purposes of the Lockheed Martin Corporation Nonqualified Capital Accumulation Plan (the “NCAP” or the “Plan”) are (i) to provide contributions for certain key management employees of
Lockheed Martin Corporation and its subsidiaries (the “Company”) in circumstances where the Company cannot make contributions on behalf of employees under the Lockheed Martin Salaried Corporation Capital Accumulation Plan (the
“Qualified CAP”) because of the limitations of Code section 401(a)(17) or 415(c)(1)(A); and (ii) to provide a company contribution based on amounts awarded under Lockheed Martin Corporation Management Incentive Compensation Plan
(“MICP”). This Plan is also intended to comply with the requirements of Code section 409A. 
 ARTICLE II 
 DEFINITIONS 
 Unless the context
indicates otherwise, the following words and phrases shall have the meanings hereinafter indicated: 
 1. ACCOUNT — The bookkeeping
account maintained by the Company for each Participant which is credited with Contributions made on behalf of the Participant, and earnings (or losses) attributable to the Investment Options selected by the Participant, and which is debited to
reflect distributions. The portions of a Participant’s Account allocated to different Investment Options will be accounted for separately. 
 2. ACCOUNT BALANCE — The total amount credited to a Participant’s Account at any time, including the portions of the Account allocated to each Investment Option. 
 3. BENEFICIARY — The person or persons designated by the Participant as his or her beneficiary under the Qualified CAP. 
 4. BOARD — The Board of Directors of Lockheed Martin Corporation. 
 5. CODE — The Internal Revenue Code of 1986, as amended. 
  

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 6. COMMITTEE — The committee described in Section 1 of Article IX. 
 7. COMPANY — Lockheed Martin Corporation and its subsidiaries. 
 8. COMPANY STOCK INVESTMENT OPTION — The Investment Option under which the Participant’s Account is credited as if invested under the investment option in the Qualified CAP for the common stock of the
Company. 
 9. COMPENSATION — An employee’s “Compensation” from the Company, as defined in the Qualified CAP. 

10. CONTRIBUTIONS – Contributions made by the Company pursuant to Article IV of this NCAP. 
 11. DMICP – The Lockheed Martin Corporation Deferred Management Incentive Compensation Plan or any successor plan. 
 12. ELIGIBLE EMPLOYEE – An employee of the Company who participates in the Qualified CAP and either (i) accrues benefits under the Qualified
CAP in excess of the Code section 415 limits for a Year ($45,000 in 2007); (ii) earns Compensation in excess of the Code section 401(a)(17) limit for a Year ($225,000 in 2007); or (iii) is eligible to receive Incentive Compensation with
respect to a Year (which may be payable in the following Year); provided that such employee satisfies such additional requirements for participation in this NCAP as the Committee may from time to time establish; provided further that employees who
are designated by the Company as eligible to participant in a defined benefit-type nonqualified deferred compensation plan or who are Section 16 Persons shall not be eligible to participate in this NCAP. In the exercise of its authority under
this provision, the Committee shall limit participation in the Plan to employees whom the Committee believes to be a select group of management or highly compensated employees within the meaning of Title I of the Employee Retirement Income Security
Act of 1974, as amended. 
 13. EXCHANGE ACT — The Securities Exchange Act of 1934. 
 13A. INCENTIVE COMPENSATION – The MICP amount granted to an employee by the Company for an Award Year (as defined in the MICP), regardless of
amounts deferred pursuant to the DMICP. 
 14. INVESTMENT OPTION — A measure of investment return pursuant to which Contributions
credited to a Participant’s Account shall be further credited with earnings (or losses). The Investment Options available under this NCAP shall correspond to the investment options available under the Qualified CAP (other than the ESOP Fund or
the Self-Managed Account, which are not available under this Plan). 
  

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 15. MICP – The Lockheed Martin Corporation Management Incentive Compensation Plan or the Lockheed
Martin Corporation 2006 Management Incentive Compensation Plan (for Incentive Compensation awarded after February 1, 2006) or any successor plan. 
 16. PARTICIPANT — An employee of the Company who is an Eligible Employee and with respect to whom Contributions have been credited to his Account; the term shall include a former employee whose Account Balance
has not been fully distributed. 
 17. QUALIFIED CAP — The Lockheed Martin Corporation Capital Accumulation Plan or any successor plan.

 18. SECTION 16 PERSON — A Participant who at the relevant time is subject to the reporting and short-swing liability provisions of
Section 16 of the Exchange Act. 
 19. NCAP – The Lockheed Martin Corporation Non-Qualified Capital Accumulation Plan, as adopted
by the Board of Directors of Lockheed Martin Corporation, effective January 1, 2007, and as further amended from time to time. 
 19A.
WEEKLY RATE OF COMPENSATION – A Participant’s “Weekly Rate of Compensation” as defined in the Qualified CAP. 
 20. YEAR
— The calendar year. 
 ARTICLE III 
 ELIGIBILITY 
 1. Commencement of Participation. An employee of the Company shall become a
Participant in the Plan effective on the first of January following the Year (beginning with 2006) in which he or she first became an Eligible Employee. For example, if an employee becomes an Eligible Employee in 2006, he or she shall become a
Participant in the Plan effective January 1, 2007. If an employee of the Company terminates employment during the Year in which he or she first became an Eligible Employee, he or she shall not become a Participant in the Plan for the following
Year. 
 2. Cessation of Eligibility While Still An Employee. A Participant who has not terminated employment with the Company will
nevertheless cease to be an Eligible Employee on the first to occur of (i) the employee is no longer eligible to participate in the Qualified CAP; (ii) the employee is designated by the Company as eligible to participate in a defined
benefit-type nonqualified deferred compensation plan; or (iii) the employee becomes a Section 16 Person. Following cessation of eligibility, the employee will continue to be a Participant in the NCAP but will no longer be eligible to be
credited with Contributions under Article IV. 
  

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 ARTICLE IV 
 CONTRIBUTIONS 
 1. Amount of Contributions. The Company shall make annual Contributions on
behalf of a Participant equal to: 
 a. an amount based on the same percentage of the Participant’s Weekly Rate of Compensation that
would have been contributed to the Qualified CAP on behalf of the Participant for the Year if not for the application of the limits under Code sections 415 and 401(a)(17) for the Year; 
 b. with respect to the Participant’s first year of participation, an amount based on the same percentage of the Participant’s Weekly Rate of
Compensation for the preceding Year that would have been contributed to the Qualified CAP on behalf of the Participant for such Year if not for the application of the limits under Code sections 415 and 401(a)(17) for such Year; and 
 c. an amount equal to a Participant’s Incentive Compensation for the Year multiplied by the percentage that is used for calculating Company
contributions to the Participant’s account in the Qualified CAP in the Year in which the Incentive Compensation is earned (as opposed to paid). 
 2. Crediting of Contributions. Contributions made pursuant to Article IV(1)(a) shall be credited to a Participant’s Account as of the day on which such amount would have been credited to the
Participant’s account under the Qualified CAP if the Participant’s Contributions had been contributed to the Qualified CAP. Contributions made pursuant to Article IV(1)(b) shall be credited to a Participant’s Account Contributions no
later than March 15 of the Participant’s first year of participation in the Plan. Contributions credited pursuant to Article IV(1)(c) shall be credited to a Participant’s Account on the same day that Incentive Compensation is credited
to the DMICP on behalf of the Participant. 
 3. Vesting of Contributions. A Participant shall be vested in the following percentage
of his Account based on his “Years of Service,” based upon the definition of “Years of Service” in the Qualified CAP applicable to the Participant, including those Years of Service prior to the Year in which the employee became a
Participant: 
  

			
	Less than 5 Years of Service	 	0%
	At least 5 Years of Service	 	100%

 Notwithstanding the foregoing, a Participant shall be 100% vested in his Account upon his termination of
employment after age 55, layoff or on account of death or permanent disability. A 

  

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Participant shall be permanently disabled if the Participant would be considered disabled for purposes of qualifying for long term disability benefits under
the Company’s long term disability plan in which the Participant is eligible to participate A Participant shall be considered to have been laid off if the Participant’s employment is terminated by the Company due to lack of work and the
Participant is considered to have terminated employment for distribution purposes under Section 409A of the Code. In the event legislative changes require the vesting of account balances in the Qualified Cap in a period shorter than five Years
of Service, then the period required to vest under the NCAP shall be shortened so as to be consistent with the vesting period in the Qualified CAP applicable to the Participant. 
 4. Crediting of Earnings. Earnings shall be credited to a Participant’s Account based on the Investment Option or Options to which his or her
Account has been allocated, beginning with the day as of which any amounts (or any reallocation of amounts) are credited to the Participant’s Account. Any amount distributed from a Participant’s Account shall be credited with earnings
through the day on which the distribution is processed. The manner in which earnings are credited under each of the Investment Options shall be determined in the same manner as under the Qualified CAP. 
 5. Selection of Investment Options. A Participant may elect to allocate his or her Account among the Investment Options available under the
Qualified CAP (other than the options designated as the ESOP Fund or the Self Managed Account). The procedures for directing allocation and reallocations among the Investment Options in the NCAP shall be the same as the procedures for making
allocations under the Qualified CAP. In the event a Participant does not make an investment allocation for the NCAP, his elections will be deemed to be the elections made by the Participant in the Qualified CAP (except that an election for the ESOP
Fund or the Self Managed Account shall be disregarded), if no election exists, the default election used for the Qualified CAP. Notwithstanding the foregoing, no investment election by a Section 16 Person to re-allocate all or a portion of his
or her Account to, or from, a Company stock investment option shall be effective unless the reallocation would be exempt from the short-swing profit recovery rules of Section 16 of the Exchange Act. 
 ARTICLE V 
 PAYMENT OF BENEFITS

 1. General. The Company’s liability to pay benefits to a Participant or Beneficiary under this NCAP shall be measured by
and shall in no event exceed the Participant’s Account Balance, which shall be fully vested and nonforfeitable at all times. All benefit payments shall be made in cash and, except as otherwise provided, shall reduce allocations to the
Investment Options in the same proportions that the Participant’s Account Balance is allocated among those Investment Options. 
 2.
Commencement of Payment. The payment of benefits to a Participant shall commence as soon as administratively feasible following the Participant’s termination of 

  

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employment with the Company. Notwithstanding the foregoing, (i) benefits paid under this Plan to a Participant who is reasonably determined by the
Company to be a “specified employee” within the meaning of Code section 409A(2)(B)(i), shall not commence before six (6) months following the month in which the Participant terminates employment; and (ii) benefits payable to a
Section 16 Person that would result in a nonexempt short-swing transaction under Section 16 of the Exchange Act shall be delayed until the earliest date upon which the distribution would not result in a nonexempt short-swing transaction..

 3. Form of Payment. By December 31 of the later of the 2007 or the Year in which an employee of the Company first satisfies
the definition of Eligible Employee, he or she shall irrevocably elect the form of payment of his or her Account Balance from among the following options: 
  

	 	(a)	A lump sum. 

  

	 	(b)	Annual payments for a period of 5, 10, 15, or 20 years, as designated by the Participant. The amount of each annual payment shall be determined by dividing the Participant’s
Account Balance on the date such payment is processed by the number of years remaining in the designated installment period. 

 Such election shall be made in writing in the form and manner designated by the Company. If no election is made, a Participant’s Account Balance shall be payable in a lump sum. Notwithstanding the foregoing, if the Account Balance of a
Participant who is entitled to begin payment equals $10,000 or less, the Participant’s Account Balance shall be paid in a single lump sum payment as soon as administratively practicable in full discharge of all liabilities with respect to such
benefits. 
 4. Prospective Change of Payment Election. A Participant may modify his or her payment election with respect to all
amounts credited to the Participant’s Account under this NCAP by filing a new written election with the Company. No such modification will be effective if made within 12 months of the date of the first payment under the
Participant’s previous payment election, and the first payment must be delayed by at least 60 months from the date of the Participant’s previous payment election. 
 5. Death Benefits. Upon the death of a Participant before a complete distribution of his or her Account Balance, the Account Balance will be paid
to the Participant’s Beneficiary in an immediate lump sum. 
 6. Acceleration Upon Conflict of Interest. Subject to the
provisions of Section 2 of Article VIII, notwithstanding a Participant’s form of payment election under Section 3 of this Article V, if following a Participant’s termination of employment with the Company, the Participant takes a
position (or accepts a position) with a governmental entity, agency, or instrumentality and that employer has determined or indicated that the Participant’s continued 

  

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participation in the Plan may constitute a conflict of interest precluding the Participant from continuing in his position (or from accepting an offered
position) with that employer or subjecting the Participant to penalty, sanction, or otherwise limiting the Participant’s responsibilities for that employer, then the Participant’s Account Balance shall be distributed to him or her in a
lump sum as soon as practical following the later of (i) the date on which the Participant commences employment with the government employer; or (ii) the date on which it is determined that the conflict of interest may exist. 

7. Acceleration upon Change in Control. 
 (a) Notwithstanding any other provision of this NCAP, the Account Balance of each Participant shall be distributed in a single lump sum within fifteen (15) calendar days following a “Change in Control.” 
 (b) For purposes of this NCAP, a Change in Control shall include and be deemed to occur upon the following events: 
 (1) A tender offer or exchange offer is consummated for the ownership of securities of the Company representing 25% or more of the
combined voting power of the Company’s then outstanding voting securities entitled to vote in the election of directors of the Company. 
 (2) The Company is merged, combined, consolidated, recapitalized or otherwise reorganized with one or more other entities that are not Subsidiaries and, as a result of the merger, combination, consolidation,
recapitalization or other reorganization, less than 75% of the outstanding voting securities of the surviving or resulting corporation shall immediately after the event be owned in the aggregate by the stockholders of the Company (directly or
indirectly), determined on the basis of record ownership as of the date of determination of holders entitled to vote on the action (or in the absence of a vote, the day immediately prior to the event). 
 (3) Any person (as this term is used in Sections 3(a)(9) and 13(d)(3) of the Exchange Act, but excluding any person described in and
satisfying the conditions of Rule 13d-1(b)(1) thereunder), becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of
the Company’s then outstanding securities entitled to vote in the election of directors of the Company. 
  

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 (4) At any time within any period of two years after a tender offer, merger, combination,
consolidation, recapitalization, or other reorganization or a contested election, or any combination of these events, the “Incumbent Directors” shall cease to constitute at least a majority of the authorized number of members of the Board.
For purposes hereof, “Incumbent Directors” shall mean the persons who were members of the Board immediately before the first of these events and the persons who were elected or nominated as their successors or pursuant to increases in the
size of the Board by a vote of at least three-fourths of the Board members who were then Board members (or successors or additional members so elected or nominated). 
 (5) The stockholders of the Company approve a plan of liquidation and dissolution or the sale or transfer of substantially all of the
Company’s business and/or assets as an entirety to an entity that is not a Subsidiary. 
 Notwithstanding the foregoing,
no distribution shall be made solely on account of a Change in Control and prior to the benefit commencement date specified in Section 2 of Article V unless the Change in Control is an event qualifying for a distribution of deferred
compensation under both the definition of Change in Control in the Plan and in Section 409A(a)(2)(A)(v) of the Code. 
 (c) Notwithstanding the provisions of Section 7(a), if a distribution in accordance with the provisions of Section 7(a) would result in a nonexempt transaction under Section 16(b) of the Exchange Act with respect to any
Section 16 Person, then the date of distribution to such Section 16 Person shall be delayed until the earliest date upon which the distribution either would not result in a nonexempt transaction or would otherwise not result in liability
under Section 16(b) of the Exchange Act. 
 (d) This Section 7 shall apply only to a Change in Control of Lockheed
Martin Corporation and shall not cause immediate payout of an Account Balance in any transaction involving the Company’s sale, liquidation, merger, or other disposition of any subsidiary. 
 (e) The Committee may cancel or modify this Section 7 at any time prior to a Change in Control. In the event of a Change in Control,
this Section 7 shall remain in force and effect, and shall not be subject to cancellation or modification for a period of five years, and any defined term used in Section 7 shall not, for purposes of Section 7, be subject to
cancellation or modification during the five year period. 
 8. Deductibility of Payments. Subject to the provisions of Section 1
of Article VIII, in the event that the payment of benefits in accordance with the Participant’s election under Section 3 of this Article V would prevent the Company from claiming an income tax deduction with respect to any portion of the
benefits paid, the Committee shall have the right to modify the timing of distributions from the Participant’s Account as necessary to maximize the Company’s 

  

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tax deductions. In the exercise of its discretion to adopt a modified distribution schedule, the Committee shall undertake to have distributions made at such
times and in such amounts as most closely approximate the Participant’s election, consistent with the objective of maximum deductibility for the Company. The Committee shall have no authority to reduce a Participant’s Account Balance or to
pay aggregate benefits less than the Participant’s Account Balance in the event that all or a portion thereof would not be deductible by the Company. 
 9. Change of Law. Notwithstanding anything to the contrary herein, subject to the provisions of Section 1 of Article VIII, if the Committee determines in good faith, based on consultation with counsel,
that the federal income tax treatment or legal status of this NCAP has or may be adversely affected by a change in the Internal Revenue Code, Title I of the Employee Retirement Income Security Act of 1974, or other applicable law or by an
administrative or judicial construction thereof, the Committee may direct that the Accounts of affected Participants or of all Participants be distributed as soon as practicable after such determination is made, to the extent deemed necessary or
advisable by the Committee to cure or mitigate the consequences, or possible consequences of, such change in law or interpretation thereof. 
 10. Tax Withholding. To the extent required by law, the Company shall withhold from benefit payments hereunder, or with respect to any amounts credited to a Participant’s Account hereunder, any Federal, state, or local income or
payroll taxes required to be withheld and shall furnish the recipient and the applicable government agency or agencies with such reports, statements, or information as may be legally required. However, the amount of Contributions to be credited to a
Participant’s Account will not be reduced or adjusted by the amount of any tax that the Company is required to withhold with respect thereto. 
 ARTICLE VI 
 EXTENT OF PARTICIPANTS’ RIGHTS 
 1. Unfunded Status of Plan. This NCAP constitutes a mere contractual promise by the Company to make payments in the future, and each
Participant’s rights shall be those of a general, unsecured creditor of the Company. No Participant shall have any beneficial interest in any specific assets that the Company may hold or set aside in connection with this NCAP. Notwithstanding
the foregoing, to assist the Company in meeting its obligations under this NCAP, the Company may set aside assets in a trust or trusts described in Revenue Procedure 92-64, 1992-2 C.B. 422 (generally known as a “rabbi trust”), and the
Company may direct that its obligations under this NCAP be satisfied by payments out of such trust or trusts. It is the Company’s intention that this NCAP be unfunded for federal income tax purposes and for purposes of Title I of the Employee
Retirement Income Security Act of 1974. 
 2. Nonalienability of Benefits. A Participant’s rights under this Plan shall not be
assignable or transferable and any purported transfer, assignment, pledge or other encumbrance or attachment of any payments or benefits under this Plan, or any interest therein shall not be 

  

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permitted or recognized, other than the designation of, or passage of payment rights to, a Beneficiary. Notwithstanding, any portion of a Participant’s
benefit under this Plan may be paid to a spouse or former spouse pursuant to the terms of a domestic relations order (as defined in Code section 414(p)(1)(B)), provided that the form of payment designated in such order is one that is provided for
under the Qualified CAP. 
 ARTICLE VII 
 AMENDMENT OR TERMINATION 
 1. Amendment. The Board may amend, modify, suspend or discontinue
this NCAP at any time subject to any shareholder approval that may be required under applicable law, provided, however, that no such amendment shall have the effect of reducing a Participant’s Account Balance or postponing the time when a
Participant is entitled to receive a distribution of his or her Account Balance. 
 2. Termination. Subject to the provisions of
Section 1 of Article VIII, the Board reserves the right to terminate this NCAP at any time and to pay all Participants their Account Balances in a lump sum immediately following such termination or at such time thereafter as the Board may
determine; provided, however, that if a distribution in accordance with the provisions of this Section 2 would otherwise result in a nonexempt transaction under Section 16(b) of the Exchange Act, the date of distribution with respect to
any Section 16 Person shall be delayed until the earliest date upon which the distribution either would not result in a nonexempt transaction or would otherwise not result in liability under Section 16(b) of the Exchange Act. 

 

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 ARTICLE VIII 
 ADMINISTRATION 
 1. The Committee. This NCAP shall be administered by the Management
Development and Compensation Committee of the Board or such other committee of the Board as may be designated by the Board and constituted so as to permit this NCAP to comply with the requirements of Rule 16b-3 of the Exchange Act. The members of
the Committee shall be designated by the Board. A majority of the members of the Committee (but not fewer than two) shall constitute a quorum. The vote of a majority of a quorum or the unanimous written consent of the Committee shall constitute
action by the Committee. The Committee shall have full authority to interpret the Plan, and interpretations of the Plan by the Committee shall be final and binding on all parties. Notwithstanding anything contained in the Plan or in any document
issued under the Plan, it is intended that the Plan will at all times conform to the requirements of Code section 409A and any regulations or other guidance issued thereunder, and that the provisions of the Plan will be interpreted to meet such
requirements. If any provision of the Plan is determined not to conform to such requirements, the Plan shall be interpreted to omit such offending provision. 
 2. Delegation and Reliance. The Committee may delegate to the officers or employees of the Company the authority to execute and deliver those instruments and documents, to do all acts and things, and to take
all other steps deemed necessary, advisable or convenient for the effective administration of this NCAP in accordance with its terms and purpose, except that the Committee may not delegate any authority the delegation of which would cause this NCAP
to fail to satisfy the applicable requirements of Rule 16b-3. In making any determination or in taking or not taking any action under this NCAP, the Committee may obtain and rely upon the advice of experts, including professional advisors to the
Company. No member of the Committee or officer of the Company who is a Participant hereunder may participate in any decision specifically relating to his or her individual rights or benefits under the NCAP. 
 3. Exculpation and Indemnity. Neither the Company nor any member of the Board or of the Committee, nor any other person participating in any
determination of any question under this NCAP, or in the interpretation, administration or application thereof, shall have any liability to any party for any action taken or not taken in good faith under this NCAP or for the failure of the NCAP or
any Participant’s rights under the NCAP to achieve intended tax consequences, to qualify for exemption or relief under Section 16 of the Exchange Act and the rules thereunder, or to comply with any other law, compliance with which is not
required on the part of the Company. 
 4. Facility of Payment. If a minor, person declared incompetent, or person incapable of
handling the disposition of his or her property is entitled to receive a benefit, make an application, or make an election hereunder, the Committee may direct that such benefits be paid to, or such application or election be made by, the guardian,
legal representative, or person 

  

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having the care and custody of such minor, incompetent, or incapable person. Any payment made, application allowed, or election implemented in accordance
with this Section shall completely discharge the Company and the Committee from all liability with respect thereto. 
 5. Proof of
Claims. The Committee may require proof of the death, disability, incompetency, minority, or incapacity of any Participant or Beneficiary and of the right of a person to receive any benefit or make any application or election. 
 6. Claim Procedures. The procedures when a claim under this Plan is wholly or partially denied by the Committee or its delegate, as applicable
(the “Claims Administrator”) are as follows: 
  

	 	(a)	The Claims Administrator shall, within 90 days after receipt of a claim, furnish to claimant a written notice setting forth, in a manner calculated to be understood by claimant:
(1) the specific reason or reasons for the denial; (2) specific reference to pertinent Plan provisions on which the denial is based; (3) a description of any additional materials or information necessary for the claimant to perfect
the claim and an explanation of why such material or information is necessary; (4) an explanation of the steps to be taken if the claimant wishes to have the denial reviewed; and (5) a statement of the claimant’s right to bring a
civil action under section 502(a) of ERISA following an adverse determination on review. The 90 day period may be extended for not more than an additional 90 days if special circumstances make such an extension necessary. The Claims Administrator
shall give the claimant, before the end of the initial 90 day period, a written notice of such extension, stating such special circumstances and the date by which the Claims Administrator expects to render a decision. 

  

	 	(b)	By a written application filed with the Claims Administrator within 60 days after receipt by claimant of the written notice described in paragraph (a), the claimant or his duly
authorized representative may request review of the denial of his claim. 

  

	 	(c)	In connection with such review, the claimant or his duly authorized representative may submit issues, comments, documents, records and other information relating to the claim for
benefits to the Claims Administrator. In addition, the claimant will be provided, upon request and free of charge, reasonable access to and copies of all documents, records, or other information “relevant” to claimant’s claim for
benefits. A document, record, or other information is “relevant” if it: (1) was relied upon in making the benefit determination; (2) was submitted, considered or generated in the course of making the benefit determination,
without regard to whether such document, record or information was relied upon in making the benefit determination; or (3) demonstrates compliance with administrative processes and safeguards required under federal law.

  

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	 	(d)	The Plan will provide an impartial review that takes into account all comments, records and other information submitted by the claimant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit determination. The Claims Administrator shall make a decision and furnish such decision in writing to the claimant within 60 days after receipt by the Claims Administrator
of the request for review. This period may be extended to not more than 120 days after such receipt if special circumstances make such an extension necessary. The claimant will be notified in writing prior to the expiration of the original 60 day
period if such an extension is required, and such notice will include the reason for the extension and the date by which it is expected that a decision will be reached. The decision on review shall be in writing, set forth in a manner calculated to
be understood by the claimant and shall include: (1) the specific reasons for the decision; (2) specific reference to the pertinent Plan provisions on which the decision is based; (3) a statement that the claimant is entitled to
receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information “relevant” to the claimant’s claim for benefits; (4) a description of any additional material or
information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; (5) a statement describing any voluntary appeal procedures and the claimant’s right to obtain information
about such procedures, if any; and (6) a statement of the claimant’s right to bring a civil action under section 502(a) of ERISA following an adverse benefit determination on review. If in the event that the reviewing committee must make a
determination of disability in order to decide a claim, the reviewing committee shall follow the special claims procedures for disability benefits described in Department of Labor Regulation section 2560.503-1(d). The reviewing committee shall
render a decision within a reasonable time (not to exceed 90 days) after the claimant’s request for review, rather than within 120 days as set forth in the above paragraph. 

  

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 ARTICLE IX 
 GENERAL AND MISCELLANEOUS PROVISIONS 
 1. Neither this NCAP nor a Participant’s elections under
this NCAP, either singly or collectively, shall in any way obligate the Company to continue the employment of a Participant with the Company, nor does either this NCAP or a Participant’s elections limit the right of the Company at any time and
for any reason to terminate the Participant’s employment. In no event shall this Plan or a Participant’s elections, either singly or collectively, by their terms or implications constitute an employment contract of any nature whatsoever
between the Company and a Participant. In no event shall this Plan or a Participant’s elections, either singly or collectively, by their terms or implications in any way limit the right of the Company to change an Eligible Employee’s
compensation or other benefits. 
 2. Any amount credited to a Participant’s Account under this NCAP shall not be treated as
compensation for purposes of calculating the amount of a Participant’s benefits or contributions under any pension, retirement, or other plan maintained by the Company, except as provided in such other plan. 
 3. Any written notice to the Company referred to herein shall be made by mailing or delivering such notice to the Company at 6801 Rockledge Drive,
Bethesda, Maryland 20817, to the attention of the Senior Vice President, Human Resources. Any written notice to a Participant shall be made by delivery to the Participant in person, through electronic transmission, or by mailing such notice to the
Participant at his or her place of residence or business address. 
 4. In the event it should become impossible for the Company or the
Committee to perform any act required by this Plan, the Company or the Committee may perform such other act as it in good faith determines will most nearly carry out the intent and the purpose of this NCAP. 
 5. By electing to become a Participant hereunder, each Eligible Employee shall be deemed conclusively to have accepted and consented to all the terms of
this NCAP and all actions or decisions made by the Company, the Board, or Committee with regard to the NCAP. 
 6. The provisions of this
NCAP shall be binding upon and inure to the benefit of the Company, its successors, and its assigns, and to the Participants and their heirs, executors, administrators, and legal representatives. 
 7. A copy of this NCAP shall be available for inspection by Participants or other persons entitled to benefits under the Plan at reasonable times at the
offices of the Company. 
  

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 8. The validity of this NCAP or any of its provisions shall be construed, administered, and governed in
all respects under and by the laws of the State of Maryland, except as to matters of federal law. If any provisions of this instrument shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof
shall continue to be fully effective. 
 9. This NCAP and its operation, including but not limited to, the mechanics of payment elections,
the issuance of securities, if any, or the payment of cash hereunder is subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal insider trading, registration, reporting
and other securities laws) and such other approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. 
 10. It is the intent of the Company that this NCAP satisfy and be interpreted in a manner, that, in the case of Participants who are or may be
Section 16 Persons, satisfies any applicable requirements of Rule 16b-3 of the Exchange Act or other exemptive rules under Section 16 of the Exchange Act and will not subject Section 16 Persons to short-swing profit liability
thereunder. If any provision of this NCAP would otherwise frustrate or conflict with the intent expressed in this Section 10, that provision to the extent possible shall be interpreted and deemed amended so as to avoid such conflict. To the
extent of any remaining irreconcilable conflict with this intent, the provision shall be deemed disregarded. Similarly, any action or election by a Section 16 Person with respect to the NCAP to the extent possible shall be interpreted and
deemed amended so as to avoid liability under Section 16 or, if this is not possible, to the extent necessary to avoid liability under Section 16, shall be deemed ineffective. Notwithstanding anything to the contrary in this NCAP, the
provisions of this NCAP may at any time be bifurcated by the Board or the Committee in any manner so that certain provisions of this NCAP are applicable solely to Section 16 Persons. Notwithstanding any other provision of this NCAP to the
contrary, if a distribution which would otherwise occur is prohibited or proposed to be delayed because of the provisions of Section 16 of the Exchange Act or the provisions of the NCAP designed to ensure compliance with Section 16, the
Section 16 Person involved may affirmatively elect in writing to have the distribution occur in any event; provided that the Section 16 Person shall concurrently enter into arrangements satisfactory to the Committee in its sole discretion
for the satisfaction of any and all liabilities, costs and expenses arising from this election. 
  

 15 

 ARTICLE X 
 EFFECTIVE DATE 
 This NCAP shall generally become effective on January 1, 2007. Subsequent
amendments to the NCAP are effective as of the date stated in the amendment or the adopting resolution. 
  
  

 16Deferred Compensation Plan for Safeway Non-Employee Directors II

 Exhibit 10(iii).26 
 DEFERRED COMPENSATION PLAN FOR SAFEWAY 
 NON-EMPLOYEE DIRECTORS II 
 (Effective January 1, 2005) 
 ARTICLE I 
 1.1 Introduction. 
  

	 	(a)	The name of this plan is the “Deferred Compensation Plan for Safeway Non-Employee Directors II” (the “Plan”). Its purpose is to provide non-employee Directors of the
Company with increased flexibility in timing the receipt of board service fees and to assist the Company in attracting and retaining qualified individuals to serve as Directors. The Plan is effective as of January 1, 2005.

  

	 	(b)	The Plan is the successor plan to the Deferred Compensation Plan for Safeway Non-Employee Directors (the “Prior Plan”). Effective December 31, 2004, the Prior Plan was frozen
and no new deferrals will be made under it; provided, however, that any deferrals made under the Prior Plan before January 1, 2005 will continue to be governed by the terms and conditions of the Prior Plan as in effect on December 31, 2004
or on the date of any later amendment, provided that such amendment is not a material modification of the Prior Plan under Section 409A of the Code and regulations promulgated thereunder. 

  

	 	(c)	Any deferrals made under the Prior Plan after December 31, 2004 are deemed to have been made under the Plan and all such deferrals are governed by the terms and conditions of the Plan as
it may be amended from time to time. 

  

	 	(d)	The Plan is intended to comply with the requirements of Section 409A of the Code. 

 1.2 Definitions. Whenever used in this Plan, the following terms shall have the meaning set forth below: 
  

	 	(a)	“Automatic Deferral” means the automatic deferral of fifty percent of a Director’s Compensation as described in Section 3.1 below. 

  

	 	(b)	“Board” means the Board of Directors of the Company. 

  

	 	(c)	“Closing Price” means the closing price of the Company’s Common Stock as reported in The Wall Street Journal. 

  

	 	(d)	“Code” means the Internal Revenue Code of 1986, as amended. 

	 	(e)	“Common Stock” means the Common Stock, par value $.01 per share, of Safeway Inc. 

  

	 	(f)	“Company” means Safeway Inc. 

  

	 	(g)	“Compensation” means all remuneration paid to a Director for services as a Director other than reimbursement for expenses and shall include, but not be limited to, monthly fees for
service and fees for attendance at meetings. 

  

	 	(h)	“Director” means any individual serving on the Board who is not an employee of the Company or any of its direct or indirect subsidiaries. 

  

	 	(i)	“Elective Deferral” means a Participant’s elective deferral as described in Section 3.2 below. 

  

	 	(j)	“Participant” means a Director who receives Compensation from the Company in any Plan Year. 

  

	 	(k)	“Plan Administrator” means a committee consisting of one or more senior executives of the Company designated by the Chief Executive Officer of the Company. 

 

	 	(l)	“Plan” means the Deferred Compensation Plan for Safeway Non-Employee Directors II, effective as of January 1, 2005 

  

	 	(m)	“Plan Year” means the calendar year. 

  

	 	(n)	“Prior Plan” means Deferred Compensation Plan for Safeway Non-Employee Directors. 

  

	 	(o)	“Separation from Service” means termination of a Director’s service as a non-employee member of the Board consistent with Code Section 409A and the regulations promulgated
thereunder. 

 ARTICLE II 
 2.1
Participation in the Plan. Any individual who is a Director as defined in Section 1.2(h) shall participate in the Plan. 
 ARTICLE III

 3.1 Automatic Deferrals. Payment of fifty percent of a Director’s Compensation for each Plan Year shall automatically be deferred
under the Plan, beginning with the 2005 Plan Year for Directors serving on the Board as of June 3, 2004 and with the 2004 Plan Year for Directors who are first elected or appointed to the Board after June 3, 2004. 
  

 2 

 3.2 Election to Defer. Each Director may elect annually to have payment of all or any portion of his or her
Compensation, in excess of the amount subject to the Automatic Deferral, for that Plan Year deferred. No election to defer Compensation under this Plan may be made after December 31 of the year preceding the Plan Year during which Compensation
is earned. An election to defer any Compensation shall be in writing and shall be delivered to the Plan Administrator. An election to defer shall be irrevocable after the beginning of the Plan Year for which the election is applicable and shall be
effective for the Plan Year or Plan Years immediately following the date on which it was filed as set forth in the written election to defer. In the absence of a written election to defer filed by a Director with the Plan Administrator, his or her
Compensation remaining after the Automatic Deferral will be paid directly to the Director. Notwithstanding the foregoing, a Director who is first appointed or elected to the Board in a Plan Year may elect to defer under the Plan all or a portion of
his or her Compensation, in excess of the amount subject to the Automatic Deferral, with respect to such Compensation earned on and after the first day of the month next following the date such Director completes and returns the written election to
defer to the Company, provided that such election is made within 30 days after the date the Director is first elected or appointed to the Board. 
 3.3
Special Distribution Election. 
  

	 	(a)	At the time the Participant elects to defer Compensation in accordance with Section 3.2, the Participant may elect that Compensation deferred pursuant to an Elective Deferral will be
paid in January of a specified year in the future that is at least twelve months from the last day of the Plan Year in which the deferred Compensation is earned; provided, however, that if the Participant Separates from Service prior to such
specified year, the Participant’s account will be paid as soon as practicable but within 60 days following the end of the Plan Year in which the Participant Separates from Service. 

  

	 	(b)	Compensation deferred pursuant to an Automatic Deferral is payable only upon the Participant’s Separation from Service with the Company as a Director. 

  

	 	(c)	A Participant who makes a special distribution election pursuant to Section 3.3.(a) above may elect to amend such an election to further defer the payment, provided that such election is
made in writing and delivered to the Plan Administrator at least twelve months in advance of the originally scheduled special distribution date and the new distribution date elected by the Participant is at least five years from the originally
scheduled special distribution date. 

 3.4 Transition Distribution Election. Notwithstanding any other provision of the Plan to
the contrary, a Participant may elect an in-service account distribution or change the time of an in-service account distribution as elected in accordance with Section 3.3 above, provided that the election is made at least twelve months prior
to the 

  

 3 

 
originally scheduled distribution date and the election is made not later than December 31, 2006. An election made pursuant to this Section 3.4 shall be treated as an
initial special distribution election and shall be subject to any administrative rules imposed by the Plan Administrator including rules intended to comply with Section 409A of the Code and Notice 2005-1, A-19. No election under this Section 3.4
shall (i) change the payment date of any distribution otherwise scheduled to be paid in 2006 or cause a payment to be paid in 2006, or (ii) be permitted after December 31, 2006. 
 3.5 Mode of Deferral. Payment of a Participant’s Compensation deferred pursuant to an Automatic Deferral shall be deferred by means of a stock credit.
Payment of a Participant’s Compensation deferred pursuant to an Elective Deferral may be deferred by means of a cash credit, a stock credit or a combination of the two as the Participant shall elect in writing at the same time as the election
provided for in Section 3.2. If a Participant fails to make an election as to the mode of deferral of his or her Elective Deferral, he or she shall be deemed to have elected deferral by means of a cash credit. Cash credits and stock credits shall be
recorded in accounts established in Participants’ names on the books of the Company. 
  

	 	(a)	Cash Credits. If the Elective Deferral is deferred wholly or partly by means of a cash credit, the Participant’s cash credit account shall be credited, as of the last day of the
calendar quarter, with the dollar amount of Compensation deferred during the quarter by means of a cash credit. As of the last day of each calendar quarter, the Participant’s cash credit account shall also be credited with an interest
equivalent in an amount determined by applying to the balance in the account as of the first day of the quarter (less any distributions during the quarter) an interest rate for such quarter which, when annualized, shall be the prime rate of Bankers
Trust Company or such other rate as the Plan Administrator may designate, as of the first business day of the quarter. Interest shall be calculated on the actual number of days in the quarter based upon a 360-day year. 

  

	 	(b)	Stock Credits. The Participant’s stock credit account shall be credited, as of the last day of the calendar quarter with a Common Stock equivalent equal to the number of shares of
Common Stock (including fractions of a share) that could have been purchased at the average of the Closing Price of Common Stock on each business day during the last month of the calendar quarter with the amount of the Compensation deferred during
the quarter by means of a stock credit. As of the date any dividend is paid to holders of Common Stock, the Participant’s stock credit account shall also be credited with additional Common Stock equivalents equal to the number of shares of
Common Stock (including fractions of a share) that could have been purchased at the Closing Price of Common Stock on such date with the dividend paid on the number of shares of Common Stock to which the Participant’s stock credit account is
then equivalent. In case of dividends paid in property, the dividend shall be deemed to be the fair market value of the property at the time of distribution of the dividend, as determined by the Plan Administrator. 

  

 4 

 3.6 Distribution of Credits. 
  

	 	(a)	If a Participant has elected payment in a specified year under Section 3.3, distribution of his or her accounts will only be made in a single lump sum payment. Otherwise, unless a Participant
has elected to receive installment payments as provided below or if the Participant fails to make any election with respect to distribution of his or her accounts, payment of a Participant’s accounts shall be made in a single lump sum as soon
as practicable but within 60 days following the end of the Plan Year in which the Participant Separates from Service. 

  

	 	(b)	At the election of the Participant made in writing and delivered to the Plan Administrator at the same time the Participant elects to defer Compensation in accordance with Section 3.2,
distribution of his or her accounts, commencing as soon as practicable but within 60 days following the end of the Plan Year in which the Participant Separates from Service, shall be made in the number of annual installments elected by the Director
not exceeding ten. Any such election is irrevocable; provided, however, that with respect to amount deferred in 2005 and 2006, a Participant may make a transition election in accordance with Section 3.4. 

  

	 	(c)	Distribution of a Participant’s cash credit and stock credit accounts shall be made in cash. The amount of the distribution for stock credit accounts shall be determined by multiplying
the number of shares of Common Stock attributable to the distribution by the average of the Closing Price of Common Stock on each business day in the month of December immediately prior to the Plan Year in which the installment is to be paid.

 3.7 Adjustment. If at any time the number of outstanding shares of Common Stock shall be increased as the result of any stock
dividend, subdivision or reclassification of shares, the number of shares of Common Stock to which each Participant’s stock credit account is equivalent shall be increased in the same proportion as the outstanding number of shares of Common
Stock is increased, or if the number of outstanding shares of Common Stock shall at any time be decreased as the result of any combination or reclassification of shares, the number of shares of Common Stock to which each Participant’s stock
credit account is equivalent shall be decreased in the same proportion as the outstanding number of shares of Common Stock is decreased. In the event the Company shall at any time be consolidated with or merged into any other corporation and holders
of the Company’s Common Stock receive common shares of the resulting or surviving corporation, there shall be credited to each Participant’s stock credit account, in place of the shares then credited thereto, a stock equivalent determined
by multiplying the number of common shares of stock given in exchange for a share of Common Stock upon such consolidation or merger, by the number of shares of Common Stock to which the Participant’s account is then equivalent. If in such a
consolidation or 

  

 5 

 
merger, holders of the Company’s Common Stock shall receive any consideration other than common shares of the resulting or surviving corporation, the Plan
Administrator, in its sole discretion, shall determine the appropriate change in Participants’ stock credit accounts. 
 3.8 Installment
Amount. In the event a Participant has elected to receive distribution of his or her accounts in more than one installment, the amount of each installment shall be determined by multiplying the current balance (denominated in cash units for the
portion elected to be deferred as cash credits and denominated in stock units for the portion deferred or elected to be deferred in stock credits) in the accounts as determined under Section 3.5, by a fraction, the numerator of which is one, and the
denominator of which is the number of installments yet to be paid. With respect to cash credits, interest shall continue to be credited in accordance with Section 3.5 during the payment period. For purposes of the Plan, installment payments shall be
treated as a single distribution under Section 409A of the Code. 
 3.9 Distribution upon Death. In the event of the death of a Participant,
whether before or after ceasing to serve as a Director, any cash credit account and stock credit account to which he or she was entitled, shall be converted to cash and distributed in a single lump sum to such person or persons or the survivors
thereof, including corporations, unincorporated associations or trusts, as the Participant may have designated. All such designations shall be made in writing signed by the Participant and delivered to the Plan Administrator. A Participant may from
time to time revoke or change any such designation by written notice to the Plan Administrator. If there is no unrevoked designation on file with the Plan Administrator at the time of the Participant’s death, or if the person or persons
designated therein shall have all predeceased the Participant or otherwise ceased to exist, such distributions shall be made in accordance with the Participant’s will or in the absence of a will, to the administrator of the Participant’s
estate. Any distribution under this Section 3.9 shall be made as soon as practicable following the end of the fiscal quarter in which the Plan Administrator is notified of the Participant’s death but not later than twelve months following the
date of the Participant’s death. In this case, a Participant’s stock credit account shall be converted to cash by multiplying the number of whole and fractional shares of Common Stock to which the Participant’s stock credit account is
equivalent by the average of the Closing Price of Common Stock on each business day during the last month of the calendar quarter prior to the date of death. 
 3.10 Prohibition on Acceleration. Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an impermissible acceleration of payment as defined in Section
409A(a)(3) of the Code and the regulations promulgated thereunder. 
 3.11 Withholding Taxes. The Company shall deduct from all distributions
under the Plan any taxes required to be withheld by federal, state or local governments. 
  

 6 

 ARTICLE IV 
 4.1 Plan Administrator. The Plan Administrator shall have full power and authority to administer the Plan including the power to promulgate forms to be used with regard to the Plan, the power to promulgate rules of Plan
administration, the power to settle any disputes as to rights or benefits arising from the Plan, and the power to make such decisions or take such actions as the Plan Administrator, in its sole discretion, deems necessary or advisable to aid in the
proper maintenance of the Plan. 
 ARTICLE V 
 5.1 Funding. No promise hereunder shall be secured by any specific assets of the Company, nor shall any assets of the Company be designated as attributable or allocated to the satisfaction of such promises. In addition, amounts
deferred pursuant to the terms of the Plan and income attributable to such amounts shall remain (until distributed in accordance with the terms of the Plan) solely the property of the Company, subject to the claims of the Company’s general
creditors. 
 ARTICLE VI 
 6.1
Non-alienation of Benefits. No benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, or charge; and any attempt to do so shall be void. No such benefit shall, prior
to receipt thereof by the Participant, be in any manner liable for or subject to the debts, contracts, liabilities, engagements, or torts of the Participant. 
 6.2 Domestic Relations Orders. If a court of competent jurisdiction determines pursuant to a judgment, order or approval of a marital property settlement agreement that all or any portion of the benefits payable under the Plan to a
Participant constitute community property of the Participant and his or her spouse or former spouse (hereafter, the “Alternate Payee”) or property which is otherwise subject to division by the Participant and the Alternate Payee, a
division of such property shall not constitute a violation of Section 6.1, and any portion of such property may be paid or set aside for payment to the Alternate Payee. The preceding sentence of this Section 6.2, however, shall not create any
additional rights and privileges for the Alternate Payee (or the Participant) not already provided under the Plan; in this regard, the Administrator shall have the right to refuse to recognize any judgment, order or approval of a marital property
settlement agreement that the Administrator in its sole discretion determines provides for any additional rights and privileges not provided under the Plan, including without limitation provisions relating to form and time of payment. 
 ARTICLE VII 
 7.1 Delegation of Administrative
Duties. Administrative duties imposed by this Plan may be delegated by the Plan Administrator or the individual charged with such duties. 
  

 7 

 7.2 Governing Law. This Plan shall be governed by the laws of the State of Delaware. 
 7.3 Amendment, Modification and Termination of the Plan. 
  

	 	(a)	The Plan Administrator may amend or modify the Plan at any time and in any respect. 

  

	 	(b)	The Board may terminate the Plan at any time. In the event of termination of the Plan, any deferred amounts may be distributed within the period beginning twelve months after the date the
Plan was terminated and ending twenty-four months after the date the Plan was terminated, or pursuant to Article III, if earlier. If the Plan is terminated and deferred amounts are distributed, the Company shall terminate all account balance
non-qualified deferred compensation plans with respect to all participants and shall not adopt a new account balance non-qualified deferred compensation plan for at least five years after the date the Plan was terminated. 

 

	 	(c)	The Board may terminate the Plan upon a dissolution of the Company that is taxed under Code section 331 or with the approval of a bankruptcy court pursuant to 11 U.S.C. section 503(b)(1(A),
provided that the deferred amounts are distributed and included in the gross income of the Participants by the latest of (i) the calendar year in which the Plan terminates or (ii) the first calendar year in which payment of the deferred
amounts is administratively practicable. 

 IN WITNESS WHEREOF, the Board has caused this amended and restated Plan to be executed by a
duly authorized officer of the Company this 6th day of December 2006. 
  

			
	 SAFEWAY INC.

		
	 By:
	 	 /s/ Robert A. Gordon

		
	 Its:
	 	 SVP

  

 8

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