Document:

Agreement and Plan of Merger

 Exhibit 4(a) 
  
 EXECUTION VERSION 
  
 AGREEMENT AND PLAN OF MERGER 
  
 among 
  
 UNIONBANCAL CORPORATION, 
  
 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. 
  
 and 
  
 MERGER SUB 

 (as herein defined) 
  
 Dated as of August 18, 2008 
  
  
  

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 ARTICLE I The Offer and the Merger; Closing; Effective Time
	  	2
	 1.1    The Offer
	  	2
	 1.2    The Offer Documents
	  	3
	 1.3    Company Actions
	  	3
	 1.4    Schedule 13E-3
	  	4
	 1.5    The Merger
	  	4
	 1.6    Effective Time
	  	4
	 1.7    Closing
	  	5
	 1.8    Company Directors Prior to the Effective Time
	  	5
		
	 ARTICLE II Certificate of Incorporation and By-Laws of the Surviving Corporation
	  	5
	 2.1    The Certificate of Incorporation
	  	5
	 2.2    The By-Laws
	  	5
		
	 ARTICLE III Directors and Officers of the Surviving Corporation
	  	5
	 3.1    Directors
	  	5
	 3.2    Officers
	  	6
		
	 ARTICLE IV Effect of the Merger on Capital Stock; Exchange of Certificates
	  	6
	 4.1    Effect on Capital Stock
	  	6
	 4.2    Exchange of Certificates
	  	6
	 4.3    Treatment of Stock Plans
	  	8
	 4.4    Adjustments to Prevent Dilution
	  	9
		
	 ARTICLE V Representations and Warranties
	  	9
	 5.1    Standard
	  	9
	 5.2    Representations and Warranties of the Company
	  	9
	 5.3    Representations and Warranties of Parent and Merger Sub
	  	13
		
	 ARTICLE VI Covenants
	  	14
	 6.1    Interim Operations
	  	14
	 6.2    No Change in Recommendation
	  	17
	 6.3    Proxy Statement
	  	17
	 6.4    Stockholders Meeting
	  	17
	 6.5    Information Statement
	  	17
	 6.6    Filings; Other Actions; Notification
	  	17
	 6.7    Access and Reports
	  	19
	 6.8    Stock Exchange Delisting
	  	19
	 6.9    Publicity
	  	19
	 6.10    Expenses
	  	19
	 6.11    Indemnification; Directors’ and Officers’ Insurance
	  	20
	 6.12    Takeover Statutes
	  	21
	 6.13    Tail Period
	  	21
	 6.14    Tax Certificate
	  	21
	 6.15    Formation of Merger Sub; Accession
	  	22
		
	 ARTICLE VII Conditions of the Merger
	  	22
	 7.1    Conditions to Each Party’s Obligation to Effect the Merger
	  	22
	 7.2    Conditions to Parent’s and Merger Sub’s Obligation to Effect the Merger
	  	22
	 7.3    Conditions to the Company’s Obligation to Effect the Merger
	  	23

  

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	 	  	Page
	 ARTICLE VIII Termination
	  	23
	 8.1    Termination
	  	23
	 8.2    Effect of Termination and Abandonment
	  	24
		
	 ARTICLE IX Miscellaneous and General
	  	24
	 9.1    Survival
	  	24
	 9.2    Modification or Amendment
	  	24
	 9.3    Waiver of Conditions
	  	25
	 9.4    Counterparts
	  	25
	 9.5    GOVERNING LAW AND VENUE; WAIVER OF JURY TRIAL; SPECIFIC PERFORMANCE
	  	25
	 9.6    Notices
	  	26
	 9.7    Entire Agreement
	  	27
	 9.8    No Third Party Beneficiaries
	  	27
	 9.9    Obligations of Parent and of the Company
	  	27
	 9.10    Definitions
	  	27
	 9.11    Severability
	  	27
	 9.12    Interpretation; Construction
	  	28
	 9.13    Assignment
	  	28
		
	 Annex A    Defined Terms
	  	A-1
	 Exhibit 1    Certain Conditions of the Offer
	  	E1-1
	 Appendix A    Charter of Surviving Corporation
	  	Appendix A-1
	 Appendix B    Bylaws of Surviving Corporation
	  	Appendix B-1

  

 ii 

 AGREEMENT AND PLAN OF MERGER 
  
 AGREEMENT AND PLAN OF MERGER (hereinafter called this “Agreement”), dated as of August 18, 2008,
among UnionBanCal Corporation, a Delaware corporation (the “Company”), The Bank of Tokyo-Mitsubishi UFJ, Ltd., a Japanese joint stock corporation (“Parent”), and, from and after its accession to this Agreement in
accordance with Section 6.15 of this Agreement, Merger Sub (as that term is defined in Section 6.15 of this Agreement), a Delaware corporation (the Company and Merger Sub sometimes being hereinafter collectively referred to as the
“Constituent Corporations”). 
  
 RECITALS 

  
 WHEREAS, as of the date hereof, Parent and its affiliates
beneficially and of record own 90,255,980 shares of common stock, par value $1.00 per share, of the Company (the “Common Stock”), constituting approximately 64.9% of the issued and outstanding shares of Common Stock; 
  
 WHEREAS, Parent and Mitsubishi UFJ Financial Group, Inc., a Japanese
joint stock corporation and the parent company of Parent (“MUFG”), have proposed to the board of directors of the Company (the “Company Board”) that Parent or one of its wholly owned direct or indirect Subsidiaries
acquire all of the shares of Common Stock not held in a proprietary (rather than a fiduciary or bailee) capacity by MUFG or one of its Subsidiaries other than the Company and its Subsidiaries (the “Public Shares”); 
  
 WHEREAS, the Company Board has established a special committee (the
“Special Committee”) consisting of independent directors to consider, among other things, the Offer, the Merger and the other transactions contemplated by this Agreement (collectively, the “Transactions”) and to
make a recommendation to the Company Board with respect thereto; 
  
 WHEREAS, the Special Committee has unanimously (with one member absent) (i) determined that the terms of this Agreement and the Transactions are fair to and in the best interests of the Company and the holders of the Public Shares,
(ii) approved and declared advisable this Agreement and the Transactions, and (iii) recommended to the Company Board that the Company Board adopt resolutions approving and declaring advisable this Agreement and the Transactions and
recommending that the holders of Public Shares accept the Offer, tender their Public Shares to Parent pursuant to the Offer and, to the extent any such holders do not tender their Public Shares, adopt this Agreement (such recommendation by the
Special Committee, the “Special Committee Recommendation”); 
  
 WHEREAS, the Company Board, based on the Special Committee Recommendation, has (i) determined that the terms of this Agreement and the Transactions are fair to and in the best interests of the Company and the
holders of Public Shares, (ii) approved and declared advisable this Agreement and the Transactions, and (iii) resolved to recommend to the holders of Public Shares that they accept the Offer, tender their Public Shares to Parent pursuant
to the Offer and adopt, to the extent any such holders do not tender their Public Shares, this Agreement (such recommendation, the “Company Board Recommendation”); 
  
 WHEREAS, the respective boards of directors of each of Parent and Merger Sub have (i) determined that the Transactions
are fair to and in the best interests of Parent and Merger Sub, respectively, and (ii) approved and declared advisable this Agreement and the Transactions, in each case to the extent they are a party to such Transactions; 
  
 WHEREAS, Parent is willing and intends, on the terms and subject to the
conditions set forth in this Agreement, to commence a tender offer (the “Offer”) to purchase all of the outstanding Public Shares, in cash at a price per Public Share of $73.50 (such price or any higher price per Public Share that
may be offered to be paid pursuant to the Offer being hereinafter referred to as the “Offer Price”), net to the seller but subject to any required withholding of Taxes; 

 WHEREAS, following the consummation of the Offer, on the terms and subject to the conditions set forth in
this Agreement (including the Company Requisite Vote), Merger Sub will be merged with and into the Company with the Company as the Surviving Corporation (the “Merger”); and 
  
 WHEREAS, the Company, Parent and Merger Sub desire to make certain
representations, warranties, covenants and agreements in connection with this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 THE OFFER AND THE MERGER; CLOSING; EFFECTIVE TIME 
  
 1.1 The Offer.    (a) Subject to the conditions
of this Agreement, Parent shall, as promptly as practicable and in no event later than ten business days after the date hereof, commence (within the meaning of Rule 14d-2 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) the Offer at the Offer Price, net to the seller but subject to any required withholding of Taxes. 
  
 (b) The initial expiration date of the Offer shall be midnight (New York City time) on the date that is 20 business days from the date on
which the Offer was commenced (determined as provided in Rule 14d-1(g)(3) under the Exchange Act) (the initial “Expiration Date” and any expiration time and date established pursuant to an extension of the Offer as so
extended, also an “Expiration Date”). 
  
 (c) The obligations of Parent to commence the Offer and accept for payment, and pay for, any Public Shares tendered pursuant to the Offer are subject only to (i) the conditions set forth in Exhibit 1 and (ii) the
non-waivable condition that pursuant to the Offer, prior to the Expiration Date, there shall have been validly tendered and not properly withdrawn a number of Public Shares which constitutes at least a majority of the outstanding Public Shares
(assuming the exercise of all options, warrants and other rights to purchase shares of Common Stock and excluding from the numerator of such calculation any shares held by stockholders that are affiliated with the Company, including directors and
officers of the Company, as of the Acceptance Time) (the “Majority-of-the-Minority Condition”). 
  
 (d) Parent expressly reserves the right (x) to increase the Offer Price and (y) to waive any condition to the Offer or modify
the terms of the Offer, except that, without the consent of the Company, Parent shall not (i) reduce the number of Public Shares subject to the Offer, (ii) except as provided in Section 4.4, reduce the Offer Price, (iii) add to
the conditions set forth in Exhibit 1 or modify any condition set forth in Exhibit 1 in any manner adverse to the holders of Public Shares, (iv) except as otherwise provided in this Section 1.1(d), extend the Offer,
(v) waive or modify the Majority-of-the-Minority Condition, or (vi) change the form of consideration payable in the Offer. Notwithstanding the foregoing, Parent may, in its discretion, without the consent of the Company,
(i) extend the Offer for one or more consecutive increments of not more than ten business days each, if at any otherwise scheduled Expiration Date of the Offer any of the conditions to Parent’s obligation to purchase Public Shares are not
satisfied or waived, (ii) extend the Offer for the minimum period required by any rule, regulation, interpretation or position of the Securities and Exchange Commission (the “SEC”) or the staff thereof applicable to the Offer
or (iii) make available a “subsequent offering period” in accordance with Exchange Act Rule 14d-11. In addition, if at any otherwise scheduled Expiration Date of the Offer any condition to the Offer is not satisfied or
waived, Parent shall extend the Offer at the request of the Company for one or more consecutive increments of not more than ten business days each until the earlier of the date that is 40 business days after commencement of the Offer (the
“Outside Date”) and the termination of this Agreement in accordance with its terms. In addition, Parent shall, if requested by the Company, make available a subsequent offering period in accordance with Exchange Act
Rule 14d-11 of not less than ten business days; provided that Parent shall not be required to 

  

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make available such a subsequent offering period in the event that, prior to the commencement of such subsequent offering period, MUFG and its Subsidiaries
collectively hold at least 90% of the outstanding shares of Common Stock (the requirement that MUFG and its Subsidiaries collectively hold at least 90% of the outstanding shares of Common Stock being the “90% Requirement”).

  
 (e) On the terms and subject to the
conditions of the Offer and this Agreement, Parent shall accept and pay for all Public Shares validly tendered and not withdrawn pursuant to the Offer that Parent becomes obligated to purchase pursuant to the Offer as soon as practicable after the
expiration of the Offer. 
  
 For purposes of this
Agreement, the term “business day” shall have the meaning assigned to such term in Rule 14d-1(g)(3) under the Exchange Act. 
  
 1.2 The Offer Documents.    On the date of commencement of the Offer, Parent and, to the extent required by Law, its affiliates
shall file with the SEC, pursuant to and in accordance with Rule 14d-3 and Regulation M-A under the Exchange Act (“Regulation M-A”), a Tender Offer Statement on Schedule TO with respect to the Offer, which shall
contain an offer to purchase and a related letter of transmittal and summary advertisement (such Schedule TO and the documents included therein pursuant to which the Offer will be made, together with any supplements or amendments thereto, the
“Offer Documents”) and shall cause the Offer Documents to be disseminated to holders of Public Shares as and to the extent required by the applicable federal securities laws, including for the avoidance of doubt the Sarbanes-Oxley
Act of 2002, as amended (the “Sarbanes-Oxley Act”), and the rules and regulations of the SEC thereunder (collectively, the “Securities Laws”). Prior to the filing of the Offer Documents with the SEC,
Parent shall deliver copies of the proposed form of the Offer Documents to the Company and the Special Committee, and their respective counsel, within a reasonable time for review and comment by the Company and the Special Committee, and their
respective counsel. Each of Parent and the Company agrees to use reasonable best efforts to respond promptly to any comments of the SEC or its staff with respect to the Offer Documents or the Offer and to promptly correct any information provided by
it for use in the Offer Documents if and to the extent that such information shall become false or misleading in any material respect or as otherwise required by the Securities Laws. Parent shall take all steps necessary to amend or supplement
the Offer Documents and to cause the Offer Documents, as so amended or supplemented, to be filed with the SEC and to be disseminated to the holders of Public Shares, in each case as and to the extent required by the Securities Laws. The Company
and the Special Committee, and their respective counsel, shall be given reasonable opportunity under the circumstances to review and comment on the Offer Documents (including any amendments or supplements thereto) before they are filed with the SEC
or disseminated to the stockholders of the Company. Parent shall provide the Company and the Special Committee, and their respective counsel, with copies of any written comments, and shall inform them of any oral comments, that Parent or its
counsel receives from the SEC or its staff with respect to the Offer Documents promptly after the receipt of such comments and shall give the Company and the Special Committee, and their respective counsel, a reasonable opportunity under the
circumstances to review and comment on any written or oral responses to such comments. The Company hereby consents to the inclusion in the Offer Documents of the Special Committee Recommendation and the Company Board Recommendation, as such
recommendations may be amended and until such recommendations may be withdrawn, in each case as permitted by this Agreement. 
  
 1.3 Company Actions.    (a) On the date the Offer Documents are first filed with the SEC, the Company shall file with the SEC a
Tender Offer Solicitation/Recommendation Statement on Schedule 14D-9 with respect to the Offer containing the Special Committee Recommendation and the Company Board Recommendation (together with all amendments, supplements and exhibits thereto,
the “Schedule 14D-9”) and shall cause the Schedule 14D-9 to be disseminated to the holders of Public Shares with the Offer Documents, in each case in a manner that complies with Rule 14d-9 under the Exchange Act and
the Securities Laws. The Company shall deliver copies of the proposed form of the Schedule 14D-9 to Parent within a reasonable time prior to the filing thereof with the SEC for review and comment by Parent and its counsel. Each of the
Company, Parent and Merger Sub shall use reasonable best efforts promptly to correct any information provided by it for use in the Schedule 14D-9 if and to the extent that such information shall have become false or misleading in any material
respect or as otherwise required by the Securities Laws. The Company shall take all steps necessary to amend or 

  

 3 

 
supplement the Schedule 14D-9 and to cause the Schedule 14D-9, as so amended or supplemented, to be filed with the SEC and to be disseminated to
the holders of Public Shares, in each case as and to the extent required by the Securities Laws. The Company shall provide Parent and its counsel with copies of any written comments, and shall inform them of any oral comments, that the Company
or the Special Committee, or their respective counsel, receive from the SEC or its staff with respect to the Schedule 14D-9 promptly after the receipt of such comments and shall give Parent and its counsel a reasonable opportunity under the
circumstances to review and comment on any written or oral responses to such comments. The Company agrees to use reasonable best efforts to respond promptly to any comments of the SEC or its staff with respect to the Schedule 14D-9.

  
 (b) In connection with the Offer, the
Company shall promptly furnish or cause to be furnished to Parent (i) a list of the names and addresses of the record holders of Public Shares as of the most recent practicable date, as well as mailing labels containing such names and addresses
and (ii) security position lists, computer files and any other information identifying the beneficial owners of Public Shares as of the most recent practicable date that the Company or the transfer agent have in their possession or control or
can obtain without unreasonable effort or expense. The Company will furnish or cause to be furnished to Parent such additional information (including updates of the items provided pursuant to the preceding sentence) and such other assistance as
Parent may reasonably request in communicating the Offer to the record and beneficial owners of Public Shares. 
  
 1.4 Schedule 13E-3.    On the date of commencement of the Offer, the Company, Parent, Merger Sub and such other
affiliates of Parent as may be required under applicable Law shall file with the SEC, pursuant to and in accordance with Rule 13e-3 and Regulation M-A, a joint Rule 13e-3 Transaction Statement on Schedule 13E-3 with respect to
the Transactions (the “Schedule 13E-3”); provided that, at their option, subject to applicable Law, Parent and Merger Sub may include the Schedule 13E-3 in the Schedule TO included in the Offer
Documents. Each of Parent, Merger Sub and the Company agrees to use reasonable best efforts promptly to respond to any comments of the SEC or its staff with respect to the Schedule 13E-3 and promptly to correct any information provided by
it for use in the Schedule 13E-3 if and to the extent that such information shall become false or misleading in any material respect or as otherwise required by the Securities Laws. Each party shall take all steps necessary to amend or
supplement the Schedule 13E-3 and to cause the Schedule 13E-3, as so amended or supplemented, to be filed with the SEC, in each case as and to the extent required by the Securities Laws. Each of Parent, the Company and the Special
Committee and its respective counsel shall be given reasonable opportunity under the circumstances to review and comment on the Schedule 13E-3 (including any amendments or supplements thereto) before it is filed with the SEC. Each of
Parent, the Company and the Special Committee shall provide the others and their respective counsel with copies of any written comments, and shall inform them of any oral comments, such Person or its counsel receives from the SEC or its staff with
respect to the Schedule 13E-3 promptly after the receipt of such comments and shall give the others a reasonable opportunity under the circumstances to review and comment on any written or oral responses to such comments. The Company
hereby consents to the inclusion in the Schedule 13E-3 of the Special Committee Recommendation and the Company Board Recommendation as such recommendations may be amended and until such recommendations may be withdrawn, in each case as
permitted by this Agreement. 
  
 1.5 The
Merger.    Upon the terms and subject to the conditions set forth in this Agreement, at the Effective Time, Merger Sub shall be merged with and into the Company and the separate corporate existence of Merger Sub shall
thereupon cease. The Company shall be the surviving corporation in the Merger (sometimes hereinafter referred to as the “Surviving Corporation”), and the separate corporate existence of the Company, with all its rights,
privileges, immunities, powers and franchises, shall continue unaffected by the Merger, except as set forth in Article II. The Merger shall have the effects specified in the DGCL. 
  
 1.6 Effective Time.    The Merger shall
become effective at such time that a Certificate of Merger with respect to the Merger (the “Delaware Certificate of Merger”) has been executed, acknowledged and filed with the Secretary of State of the State of Delaware, as provided
in Section 251 of the DGCL, or at such later time as may be agreed by the parties in writing and specified in the Delaware Certificate of Merger (the “Effective Time”). Subject to the terms and conditions of this
Agreement, the Company and Parent will cause the Merger to 

  

 4 

 
be effective on the third business day (the “Closing Date”) following the day on which the last to be satisfied or waived of the conditions
set forth in Article VII shall be satisfied or waived in accordance with this Agreement (other than those conditions that by their nature are to be satisfied on the Closing Date, but subject to the fulfillment or waiver of those conditions).

  
 1.7 Closing.    Unless
otherwise mutually agreed in writing between the Company and Parent, the closing for the Merger (the “Closing”) shall take place at the offices of Sullivan & Cromwell LLP, 125 Broad Street, New York, New York, at
9:00 A.M. on the Closing Date. 
  
 1.8 Company
Directors Prior to the Effective Time.    If the 90% Requirement is not satisfied immediately after such time that Parent accepts for payment the Public Shares tendered pursuant to the Offer (the “Acceptance
Time”), then, from and after the Acceptance Time until the earlier of (a) the Effective Time and (b) such time that the 90% Requirement is satisfied, Parent shall use reasonable best efforts to cause the directors of the
Company who are “independent” within the meaning of the corporate governance rules of the New York Stock Exchange (the “NYSE”) (the “Existing Independent Directors”) to remain as directors on the
Company Board. If any Existing Independent Director is unable to serve due to death, disability or resignation, Parent shall use reasonable best efforts to ensure that such other Person (or Persons) as may be designated by the remaining
Existing Independent Directors shall be elected or designated to fill such vacancy in accordance with the Company’s by-laws and each such Person shall be deemed to be an Existing Independent Director for purposes of this
Agreement. Notwithstanding anything in this Agreement to the contrary, at any time prior to the Effective Time, Parent shall use its reasonable best efforts to cause its designees on the Company Board not to approve any amendment or termination
by the Company of, or any waiver by the Company of any of its rights under, this Agreement that would adversely affect the holders of Public Shares or extend the time for performance of Parent’s or Merger Sub’s obligations under this
Agreement, unless such action is approved by the Existing Independent Directors. Parent agrees that, from and after the date of this Agreement, subject to applicable Law, at all times prior to the earlier of (i) the Effective Time and
(ii) the termination of this Agreement, it shall not authorize its designees on the Company Board to terminate the existence of the Special Committee or materially change its duties or authority or its current membership (so long as its
existing members are willing to serve and have not been removed for cause). 
  
 ARTICLE II 
  
 CERTIFICATE OF INCORPORATION AND BY-LAWS OF THE SURVIVING CORPORATION 
  
 2.1 The Certificate of Incorporation.    The certificate of incorporation of the Surviving Corporation shall be as set forth in Appendix A (the “Charter”), until
thereafter duly amended as provided therein or by applicable Laws. “Law” means any federal, state, local or foreign law, statute or ordinance, common law, or any rule, regulation, standard, judgment, order, writ, injunction,
decree, arbitration award, agency requirement, license or permit of any Governmental Entity. 
  
 2.2 The By-Laws.    The by-laws of the Surviving Corporation shall be as set forth in Appendix B (the “By-Laws”), until thereafter duly amended as provided therein
or by applicable law. 
  
 ARTICLE III 
  
 DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION 

 
 3.1 Directors.    The board of directors
of the Company at the Effective Time shall, from and after the Effective Time, be the directors of the Surviving Corporation until their successors have been duly elected or appointed and qualified or until their earlier death, resignation or
removal in accordance with the Charter and the By-Laws. 
  

 5 

 3.2 Officers.    The officers of the Company at the Effective Time shall,
from and after the Effective Time, be the officers of the Surviving Corporation until their successors have been duly chosen or until their earlier death, resignation or resignation in accordance with the Charter and the By-Laws. 
  
 ARTICLE IV 
  
 EFFECT OF THE MERGER ON CAPITAL STOCK; 
 EXCHANGE OF CERTIFICATES 
  
 4.1 Effect on Capital Stock.    At the Effective Time, as a result of the Merger and without any action on the part of the
holder of any capital stock of the Company: 
  
 (a) Merger Consideration.    Each Public Share issued and outstanding immediately prior to the Effective Time other than (i) Public Shares owned by the Company or any direct or indirect wholly owned
Subsidiary of the Company, and in each case not held on behalf of third parties, and (ii) Public Shares that are owned by stockholders (“Dissenting Stockholders”) who have properly perfected and not withdrawn a demand for
appraisal rights pursuant to Section 262 of the DGCL (each, an “Excluded Share” and collectively, “Excluded Shares”) shall be converted into the right to receive an amount in cash equal to the Offer Price (the
“Per Share Merger Consideration”). At the Effective Time, all such Public Shares shall cease to be outstanding, shall be cancelled and shall cease to exist, and each certificate (a “Certificate”) formerly
representing such Public Shares shall thereafter represent only the right to receive the Per Share Merger Consideration, without interest. 
  
 (b) Cancellation of Excluded Shares; Parent-Owned Common Stock to Remain Outstanding.    Each Excluded
Share shall, by virtue of the Merger and without any action on the part of the holder thereof, cease to be outstanding, shall be cancelled without payment of any consideration therefor and shall cease to exist, subject to any rights the holder
thereof may have under Section 4.2(f). Each share of Common Stock owned by MUFG or any of its Subsidiaries, other than shares of Common Stock held by MUFG or any of its Subsidiaries in a fiduciary or bailee capacity (which shall be deemed
to be Public Shares in accordance with the definition thereof), shall remain outstanding as shares of the Surviving Corporation without change resulting from the Merger. 
  

 (c) Merger Sub.    At the Effective Time, each share of common stock, par value
$0.01 per share, of Merger Sub issued and outstanding immediately prior to the Effective Time shall be cancelled without payment of any consideration therefor and shall cease to exist. 
  
 4.2 Exchange of Certificates. 
  
 (a) Paying Agent.    From
and after the Effective Time, Parent shall make available or cause to be made available to a paying agent selected by Parent with the Company’s prior approval, which shall not be unreasonably withheld (the “Paying Agent”),
amounts sufficient in the aggregate to provide all funds necessary for the Paying Agent to make payments of the Per Share Merger Consideration pursuant to Section 4.1(a) (such cash hereinafter referred to as the “Exchange
Fund”). 
  
 (b) Exchange
Procedures.    Promptly after the Effective Time (and in any event within three business days), the Surviving Corporation shall cause the Paying Agent to mail to each holder of record of Public Shares (other than holders of
Excluded Shares) (i) a letter of transmittal in customary form specifying that delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates (or affidavits of loss in lieu thereof
as provided in Section 4.2(e)) to the Paying Agent, such letter of transmittal to be in such form and have such other provisions as Parent and the Company may reasonably agree, and (ii) instructions for use in effecting the surrender of
the Certificates (or affidavits of loss in lieu thereof as provided in Section 4.2(e)) in exchange for the Per Share Merger Consideration. Upon surrender of a Certificate (or affidavit of loss in lieu thereof as provided in
Section 4.2(e)) to the Paying Agent in accordance with the terms of such letter of transmittal, duly executed, the holder of such 

  

 6 

 
Certificate shall be entitled to receive in exchange therefor a cash amount in immediately available funds (after giving effect to any required tax
withholdings as provided in Section 4.2(g)) equal to (x) the number of Public Shares represented by such Certificate (or affidavit of loss in lieu thereof as provided in Section 4.2(e)) multiplied by (y) the Per Share Merger
Consideration, and the Certificate so surrendered shall forthwith be cancelled. No interest will be paid or accrued on any amount payable upon due surrender of the Certificates. In the event of a transfer of ownership of Public Shares that
is not registered in the transfer records of the Company, a check for any cash to be exchanged upon due surrender of the Certificate may be issued to such transferee if the Certificate formerly representing such Public Shares is presented to the
Paying Agent, accompanied by all documents required to evidence and effect such transfer and to evidence that any applicable stock transfer taxes have been paid or are not applicable. 
  
 (c) Transfers.    From and after the Effective Time, there shall be no
transfers on the stock transfer books of the Company of the Public Shares that were outstanding immediately prior to the Effective Time. If, after the Effective Time, any Certificate is presented to the Surviving Corporation, Parent or the
Paying Agent for transfer, it shall be cancelled and exchanged for the cash amount in immediately available funds to which the holder thereof is entitled pursuant to this Article IV. 
  
 (d) Termination of Exchange
Fund.    Any portion of the Exchange Fund (including the proceeds of any investments thereof) that remains unclaimed by the stockholders of the Company for 180 days after the Effective Time shall be delivered to the Surviving
Corporation. Any holder of Public Shares (other than Excluded Shares) who has not theretofore complied with this Article IV shall thereafter look only to the Surviving Corporation for payment of the Per Share Merger Consideration (after
giving effect to any required tax withholdings as provided in Section 4.2(g)) upon due surrender of its Certificates (or affidavits of loss in lieu thereof as provided in Section 4.2(e)), without any interest thereon. Notwithstanding
the foregoing, none of the Surviving Corporation, Parent, the Paying Agent or any other Person shall be liable to any former holder of Public Shares for any amount properly delivered to a public official pursuant to applicable abandoned property,
escheat or similar Laws. For the purposes of this Agreement, the term “Person” shall mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate,
trust, association, organization, Governmental Entity or other entity of any kind or nature. 
  
 (e) Lost, Stolen or Destroyed Certificates.    In the event any Certificate shall have been lost, stolen
or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by Parent, the posting by such Person of a bond in customary amount and upon such terms as may be
required by Parent as indemnity against any claim that may be made against it or the Surviving Corporation with respect to such Certificate, the Paying Agent will issue a check in the amount (after giving effect to any required tax withholdings)
equal to the number of Public Shares represented by such lost, stolen or destroyed Certificate multiplied by the Per Share Merger Consideration. 
  
 (f) Appraisal Rights.    Notwithstanding anything in this Agreement to the contrary, Public Shares held by
Dissenting Stockholders shall not be converted into the right to receive the Per Share Merger Consideration with respect to the Public Shares owned by such Dissenting Stockholders, but instead shall be automatically cancelled and cease to exist, and
each such Dissenting Stockholder shall be entitled to receive only the payment provided by Section 262 of the DGCL for such shares. Notwithstanding the foregoing, if any Person shall have effectively waived, withdrawn or lost such
Person’s right to appraisal under Section 262 of the DGCL, then the Public Shares held by such Person shall be deemed to have been converted at the Effective Time into the Per Share Merger Consideration set forth in Section 4.1(a),
without interest. The Company shall give Parent (i) prompt notice of any written demands for appraisal, attempted withdrawals of such demands, and any other instruments served pursuant to applicable law that are received by the Company
relating to stockholders’ rights of appraisal and (ii) the opportunity to direct all negotiations and proceedings with respect to demand for appraisal under the DGCL. The Company shall not, except with the prior written consent of
Parent, voluntarily make any payment with respect to any demands for appraisal, offer to settle or settle any such demands or approve any withdrawal of any such demands. 
  

 7 

 (g) Withholding Rights.    Each of Parent and the
Surviving Corporation shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to any holder of Public Shares such amounts as it is required to deduct and withhold with respect to the making of
such payment under the Internal Revenue Code of 1986 (the “Code”), as amended, or any other applicable state, local or foreign Tax Law. To the extent that amounts are so withheld by the Surviving Corporation or Parent, as the
case may be, such withheld amounts (i) shall be remitted by Parent or the Surviving Corporation, as applicable, to the applicable Governmental Entity, and (ii) shall be treated for all purposes of this Agreement as having been paid to the
holder of Public Shares in respect of which such deduction and withholding was made by the Surviving Corporation or Parent, as the case may be. 
  
 As used in this Agreement, (i) the term “Tax” (including, with correlative meaning, the term
“Taxes”) includes all federal, state, local and foreign income, profits, franchise, gross receipts, environmental, customs duty, capital stock, severances, stamp, payroll, sales, employment, unemployment, disability, use, property,
withholding, excise, production, value added, occupancy and other taxes, duties or assessments of any nature whatsoever, together with all interest, penalties and additions imposed with respect to such amounts and any interest in respect of such
penalties and additions, and (ii) the term “Tax Return” includes all returns and reports (including elections, declarations, disclosures, schedules, estimates and information returns) required to be supplied to a Tax authority
relating to Taxes. 
  
 4.3 Treatment of Stock Plans.

  
 (a) Treatment of
Options.    At the Effective Time each outstanding option to purchase Common Stock (a “Company Option”) under the Stock Plans, vested or unvested, shall be cancelled and shall only entitle the holder thereof
to receive, as soon as reasonably practicable after the Effective Time, an amount in cash equal to the product of (x) the total number of shares of Common Stock subject to the Company Option times (y) the excess, if any, of the Per Share
Merger Consideration over the exercise price per share of Common Stock under such Company Option less applicable Taxes required to be deducted and withheld with respect to such payment. 
  
 (b) Company Awards.    At the Effective Time, each right of any kind,
contingent or accrued, to acquire or receive shares of Common Stock or benefits measured by the value of shares of Common Stock, and each award of any kind consisting of shares of Common Stock that may be held, awarded, outstanding, payable or
reserved for issuance under the Stock Plans and any other Compensation Agreements and Benefit Plans, other than Company Options and any warrants (the “Company Awards”), shall be cancelled and shall only entitle the holder thereof to
receive, as soon as reasonably practicable after the Effective Time, an amount in cash equal to (x) the number of shares of Common Stock subject to such Company Award immediately prior to the Effective Time times (y) the Per Share Merger
Consideration (or, if the Company Award provides for payments to the extent the value of the shares of Common Stock exceed a specified reference price, the amount, if any, which is the excess of the Per Share Merger Consideration over such reference
price), less applicable Taxes required to be deducted and withheld with respect to such payment. “Compensation Agreements and Benefit Plans” shall mean all benefit and compensation plans, contracts, policies or arrangements
covering current or former directors, officers or employees of the Company or its Subsidiaries. 
  
 (c) Corporate Actions.    At or prior to the Effective Time, the Company, the Company Board and the
compensation committee of the Company Board (the “Compensation Committee”), as applicable, shall adopt any resolutions and take any actions which are necessary to effectuate the provisions of Sections 4.3(a) and
4.3(b). The Company shall take all actions necessary to ensure that from and after the Effective Time neither Parent nor the Surviving Corporation will be required to deliver shares of Common Stock or other capital stock of the Company to any
Person pursuant to or in settlement of Company Options or Company Awards. 
  

 8 

 4.4 Adjustments to Prevent Dilution.    In the event that the Company
changes the number of shares of Common Stock or securities convertible or exchangeable into or exercisable for Common Stock issued and outstanding prior to the Effective Time as a result of a reclassification, stock split (including a reverse stock
split), stock dividend or distribution, recapitalization, merger, issuer tender or exchange offer, or other similar transaction, the Offer Price and the Per Share Merger Consideration shall be equitably adjusted. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES 
  

 5.1 Standard.    No representation or warranty of the Company contained in Section 5.2 (other than
Sections 5.2(b), 5.2(c), 5.2(d)(ii)(A), 5.2(e), 5.2(f) and 5.2(g), which shall be true and correct in all respects) shall be considered untrue or incorrect, and the Company shall not be deemed to have breached a representation or warranty,
as a consequence of the existence or absence of any fact, event or circumstance unless such fact, event or circumstance, individually or taken together with all other facts, events or circumstances inconsistent with any representation or warranty
contained in Section 5.2, has had or would reasonably be expected to have a Material Adverse Effect. 
  
 As used in this Agreement, the term “Material Adverse Effect” with respect to the Company means (x) a material
adverse effect on the financial condition, business or results of operations of the Company and its Subsidiaries taken as a whole or (y) any change or effect that would prevent, materially delay or materially impair the consummation of the
Transactions; provided, however, that none of the following, in and of itself or themselves, shall constitute a Material Adverse Effect: 
  
 (A) changes in general U.S. economic conditions; 
  
 (B) events, conditions, changes or trends in economic, business or financial conditions generally
affecting the U.S. banking industry, including changes in interest rates or exchange rates; 
  
 (C) changes in any banking laws or regulations unrelated to the Merger and of general applicability after the date of this Agreement
and changes in the interpretation thereof by any domestic or foreign governmental or regulatory authority, agency, commission, body, court or other legislative, executive or judicial governmental entity (each a “Governmental
Entity”); 
  
 (D) changes in United
States generally accepted accounting principles applicable to bank holding companies generally; 
  
 (E) changes that arise out of the announcement of this Agreement or arise out of actions required by this Agreement; 
  
 (F) any actions, suits, claims, hearings, arbitrations,
investigations or other proceedings relating to this Agreement, the Offer, the Merger or the transactions contemplated by this Agreement by or before any Governmental Entity; and 
  
 (G) changes in the market price or trading volume of securities of the Company; 
  
 provided, further, that, with respect to
clauses (A), (B), (C) and (D), such change, event, circumstance or development does not (i) primarily relate to (or have the effect of primarily relating to) the Company and its Subsidiaries or (ii) disproportionately adversely
affect the Company and its Subsidiaries compared to other bank holding companies. 
  
 5.2 Representations and Warranties of the Company.    Except as set forth in the corresponding sections of the disclosure letter delivered to Parent by the Company prior to entering
into this Agreement (the “Company Disclosure Letter”), the Company hereby represents and warrants to Parent and Merger Sub that: 
  
 (a) Organization, Good Standing and Qualification.    Each of the Company and its Subsidiaries is a legal
entity duly organized, validly existing and in good standing under the Laws of its respective 

  

 9 

 
jurisdiction of organization and has all requisite corporate or similar power and authority to own, lease and operate its properties and assets and to carry
on its business as currently conducted and is qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of its business requires
such qualification. 
  
 As used in this
Agreement, the term “Subsidiary” means, with respect to any Person, any other Person (other than a natural person) that is either a “subsidiary” as defined in Regulation 1-02 of Regulation S-X of the SEC or a
“subsidiary” as defined in Section 225.2(o) of Title Twelve of the Code of Federal Regulations; provided that for all purposes under this Agreement, the Company shall not be deemed to be a Subsidiary of Parent or
MUFG. 
  
 (b) Capital Structure.

  
 (i) As of August 14, 2008, the
authorized capital stock of the Company consists of 300,000,000 shares of Common Stock, of which 139,009,259 shares are outstanding, and 5,000,000 shares of $1.00 par value preferred stock, none of which are outstanding. All of the
outstanding shares of Common Stock have been duly authorized and are validly issued, fully paid and nonassessable. As of August 14, 2008, based on the assumptions set forth in Section 5.1(b)(i) of the Company Disclosure Letter,
other than (i) 9,616,270 shares of Common Stock reserved for issuance under the Year 2000 UnionBanCal Corporation Management Stock Plan, as amended, and the UnionBanCal Corporation Management Stock Plan, restated effective June 1, 1997
(the “Stock Plans”) and (ii) any dividend equivalents for the September 5, 2008 record date dividend, the Company has no shares of Common Stock reserved for issuance. Each of the outstanding shares of capital stock or
other securities of each of the Company’s Subsidiaries is duly authorized, validly issued, fully paid and nonassessable and owned by the Company or by a direct or indirect wholly owned Subsidiary of the Company, free and clear of any lien,
charge, pledge, restriction, security interest, claim or other encumbrance of any nature (each, a “Lien”). Except as set forth above, there are no preemptive or other outstanding rights, options, warrants, conversion rights,
stock appreciation rights, redemption rights, repurchase rights, agreements, arrangements, calls, commitments or other rights of any kind that obligate the Company or any of its Subsidiaries to issue or sell any shares of capital stock or other
securities of the Company or any of its Subsidiaries or any securities or obligations convertible or exchangeable into or exercisable for, or giving any Person a right to subscribe for or acquire, any securities of the Company or any of its
Subsidiaries, and no securities or obligations evidencing such rights are authorized, issued or outstanding. Upon any issuance of any shares of Common Stock in accordance with the terms of the Stock Plans, such shares will be duly authorized,
validly issued, fully paid and nonassessable and free and clear of any Liens. The Company does not have outstanding any bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible into or
exercisable for securities having the right to vote) with the stockholders of the Company on any matter. 
  
 (ii) Union Bank of California, N.A., is a wholly-owned Subsidiary of the Company. 
  
 (c) Corporate Authority; Approval and Fairness.

  
 (i) The Company has all requisite
corporate power and authority and has taken all corporate action necessary in order to execute, deliver and perform its obligations under this Agreement and to consummate the Transactions, subject only, with respect to the Merger, to adoption of
this Agreement by the holders of 90% or more of the outstanding shares of Common Stock (the “Company Requisite Vote”). This Agreement has been duly executed and delivered by the Company and constitutes a valid and binding
agreement of the Company enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting
creditors’ rights and to general equity principles (the “Bankruptcy and Equity Exception”). 
  
 (ii) The Special Committee has unanimously (with one member absent) adopted resolutions (A) determining that the terms of this
Agreement and the Transactions are fair to and in the best 

  

 10 

 
interest of the Company and the holders of the Public Shares, (B) approving and declaring advisable this Agreement and the Transactions, and
(C) making the Special Committee Recommendation. 
  
 (iii) The Company Board, based on the Special Committee Recommendation, has adopted resolutions (A) determining that the terms of this Agreement and the Transactions are fair to and in the best interests of the Company and the
holders of the shares of Public Shares, (B) approving and declaring advisable this Agreement and the Transactions, and (C) making the Company Board Recommendation. 
  
 (iv) The Special Committee has received the written opinion of its financial advisor, Credit Suisse
Securities (USA) LLC (“Credit Suisse”), to the effect that, subject to the assumptions, qualifications, limitations and other matters stated therein, the $73.50 per share of Common Stock to be received by the holders of the Common
Stock in the Offer and the Merger, is fair from a financial point of view to such holders, other than Parent and its affiliates, a copy of which opinion will promptly be delivered to Parent, it being agreed that Parent and its affiliates (not
including the Special Committee) have no right to rely on such opinion. 
  
 (d) Governmental Filings; No Violations; Certain Contracts. 
  
 (i) Other than the filing of the Certificate of Merger pursuant to Section 1.6, no notices, reports or other filings are
required to be made by the Company with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by the Company from, any Governmental Entity, in connection with the execution, delivery and performance of
this Agreement by the Company and the consummation of the Transactions, or in connection with the continuing operation of the business of the Company and its Subsidiaries following the Effective Time. 
  
 (ii) The execution, delivery and performance of this
Agreement by the Company do not, and the consummation of the Transactions will not, constitute or result in (A) a breach or violation of, or a default under, the certificate of incorporation or by-laws of the Company or the comparable governing
instruments of any of its Subsidiaries, (B) with or without notice, lapse of time or both, a breach or violation of, a termination (or right of termination) or a default under, the creation or acceleration of any obligations under, or the
creation of a Lien on any of the assets of the Company or any of its Subsidiaries pursuant to, any agreement, lease, license, contract, note, mortgage, indenture, arrangement or other obligation, whether oral or in writing (each, a
“Contract”), binding upon the Company or any of its Subsidiaries or, assuming (solely with respect to performance of this Agreement and consummation of the Transactions) compliance with the matters referred to in
Section 5.2(d)(i), under any Law to which the Company or any of its Subsidiaries is subject, or (C) any change in the rights or obligations of any party under any Contract binding on the Company or any of its
Subsidiaries. Section 5.2(d)(ii) of the Company Disclosure Letter sets forth a correct and complete list of Contracts that would be required to be filed by the Company as a “material contract” pursuant to
Item 601(b)(10) of Regulation S-K under the Securities Act of 1933, as amended, pursuant to which consents or waivers are or may be required prior to consummation of the Transactions (whether or not subject to the exception set forth
with respect to clauses (B) and (C) above). 
  
 (e) Company Reports; Financial Statements. 
  
 (i) The Company has filed or furnished, as applicable, on a timely basis all forms, statements, certifications, reports and documents
required to be filed or furnished by it with the SEC pursuant to the Securities Laws since December 31, 2005 (the “Applicable Date”) (the forms, statements, reports and documents filed or furnished since the Applicable Date and
those filed or furnished subsequent to the date hereof, including any amendments thereto, the “Company Reports”). Each of the Company Reports, at the time of its filing or being furnished complied or, if not yet filed or
furnished, will comply in all material respects with the applicable requirements of the Securities Laws, and any rules and regulations promulgated thereunder applicable to the Company Reports. As of their 

  

 11 

 
respective dates (or, if amended prior to the date hereof, as of the date of such amendment), the Company Reports did not, and any Company Reports filed with
or furnished to the SEC subsequent to the date hereof will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the
circumstances in which they were made, not misleading. 
  
 (ii) The Company is in compliance in all material respects with the applicable listing and corporate governance rules and regulations of the NYSE. Except as permitted by the Exchange Act, including
Sections 13(k)(2) and (3), or by rules of the SEC, since the enactment of the Sarbanes-Oxley Act, neither the Company nor any of its affiliates has made, arranged or modified (in any material way) any extensions of credit in the form
of a personal loan to any executive officer or director of the Company. 
  
 (iii) Each of the consolidated balance sheets included in or incorporated by reference into the Company Reports (including the related notes and schedules) fairly presents, or, in the case of Company Reports
filed after the date hereof, will fairly present the consolidated financial position of the Company and its consolidated Subsidiaries as of its date and each of the consolidated statements of income, changes in stockholders’ equity (deficit)
and cash flows included in or incorporated by reference into the Company Reports (including any related notes and schedules) fairly presents, or in the case of Company Reports filed after the date hereof, will fairly present the results of
operations, retained earnings (loss) and changes in financial position, as the case may be, of such companies for the periods set forth therein, in each case in accordance with U.S. generally accepted accounting principles (“GAAP”)
consistently applied during the periods involved, except as may be noted therein (subject, in the case of unaudited statements, to notes and normal year-end audit adjustments that will not be material in amount or effect). 
  
 (f) Information
Supplied.    None of the information supplied or to be supplied by the Company for inclusion or incorporation by reference in (a) the Offer Documents, the Schedule 13E-3 (insofar as it relates to the Company and its
Subsidiaries) or the Schedule 14D-9 will, at the time such document is filed with the SEC, at any time it is amended or supplemented or at the time it is first published, sent or given to the Company’s stockholders, contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or (b) the Proxy Statement will, at the date it is first mailed to the Company’s
stockholders and at the time of the Company Stockholders Meeting, or, if the Company disseminates an Information Statement in lieu of a Proxy Statement in accordance with Section 6.5, the Information Statement will, at the date it is first
mailed to the Company’s stockholders and on the date the Written Consent is effective, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they are made, not misleading. The Schedule 13E-3, the Schedule 14D-9 and the Proxy Statement or the Information Statement, as the case may be, will comply in all material respects
with the Securities Laws, except that no representation or warranty is made by the Company with respect to statements made or incorporated by reference therein based on information derived from Parent’s public SEC filings or supplied by Parent
or Merger Sub for inclusion or incorporation by reference therein. 
  
 (g) Takeover Statutes.    No “business combination”, “fair price”, “moratorium”, “control share acquisition” or other similar anti-takeover
statute or regulation (each, a “Takeover Statute”) or any anti-takeover provision in the Company’s certificate of incorporation or by-laws is applicable to the Company, the Public Shares, the Merger or the other Transactions.

  
 (h) Brokers and
Finders.    Neither the Company nor any of its officers, directors or employees has employed any broker or finder or incurred any liability for any brokerage fees, commissions or finders, fees in connection with the Offer,
the Merger or the other Transactions except that the Company has employed Credit Suisse as the Special Committee’s financial advisor, for which services Credit Suisse shall be paid, subject to the terms and conditions of the engagement letter
between the Company, the Special Committee and Credit Suisse, the fees set forth in Section 5.2(h) of the Company Disclosure Letter. 
  

 12 

 5.3 Representations and Warranties of Parent and Merger Sub.    Parent
and Merger Sub (subject to Section 6.15 of this Agreement) each hereby represents and warrants to the Company that: 
  
 (a) Organization, Good Standing and Qualification.    Each of Parent and Merger Sub is a legal entity duly
organized, validly existing and in good standing under the Laws of its respective jurisdiction of organization and has all requisite corporate or similar power and authority to own, lease and operate its properties and assets and to carry on its
business as presently conducted and is qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the ownership, leasing or operation of its assets or properties or conduct of its business requires such
qualification, except where the failure to be so organized, qualified or in such good standing, or to have such power or authority, would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or impair the
ability of Parent and Merger Sub to consummate the Transactions. Parent has made available to the Company a complete and correct copy of the organizational documents of Merger Sub as in effect on the date of this Agreement. 
  
 (b) Corporate
Authority.    (i) No vote of holders of capital stock of Parent is necessary to approve this Agreement and the Transactions. Each of Parent and Merger Sub has all requisite power and authority and has taken all
action necessary in order to execute, deliver and perform its obligations under this Agreement, subject only to the adoption of this Agreement by Parent as the sole stockholder of Merger Sub, and to consummate the Transactions that this Agreement
requires it to consummate. This Agreement has been duly executed and delivered by each of Parent and Merger Sub and is a valid and binding agreement of Parent and Merger Sub, enforceable against each of Parent and Merger Sub in accordance with
its terms, subject to the Bankruptcy and Equity Exception. 
  
 (c) Governmental Filings; No Violations; Etc. 
  
 (i) Other than the filing of the Certificate of Merger pursuant to Section 1.6, no notices, reports or other filings are
required to be made by MUFG, Parent or Merger Sub with, nor are any consents, registrations, approvals, permits or authorizations required to be obtained by MUFG, Parent or Merger Sub from, any Governmental Entity in connection with the execution,
delivery and performance of this Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub of the Offer, the Merger and the other Transactions that this Agreement requires it to consummate, except those that the failure to
make or obtain would not, individually or in the aggregate, reasonably be expected to prevent or materially delay the ability of Parent or Merger Sub to consummate the Offer, the Merger and the other Transactions. 
  
 (ii) The execution, delivery and performance of this
Agreement by Parent and Merger Sub do not, and the consummation by Parent and Merger Sub of the Offer, the Merger and the other Transactions that this Agreement requires it to consummate will not, constitute or result in (A) a breach or
violation of, or a default under, the articles of incorporation or by-laws of MUFG, Parent or Merger Sub or the comparable governing instruments of any of its Subsidiaries, (B) with or without notice, lapse of time or both, a breach or
violation of, a termination (or right of termination) or a default under, the creation or acceleration of any obligations or the creation of a Lien on any of the assets of MUFG, Parent or any of its Subsidiaries pursuant to, any Contracts binding
upon MUFG, Parent or any of its Subsidiaries or any Laws or governmental or non-governmental permit or license to which MUFG, Parent or any of its Subsidiaries is subject; or (C) any change in the rights or obligations of any party under any of
such Contracts, except, in the case of clause (B) or (C) above, for any breach, violation, termination, default, creation, acceleration or change that would not, individually or in the aggregate, reasonably be expected to prevent or
materially delay the ability of Parent or Merger Sub to consummate the Offer, the Merger and the other Transactions that this Agreement requires it to consummate. 
  
 (d) Information Supplied.    None of the information supplied or to be
supplied in writing by Parent or Merger Sub or any affiliate of Parent for inclusion or incorporation by reference in (a) Offer Documents, the Schedule 13E-3 or the Schedule 14D-9 will, at the time such document is filed with the SEC,
at any time it is amended or supplemented or at the time it is first published, sent or given to the Company’s stockholders, 

  

 13 

 
contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they are made, not misleading, or (b) the Proxy Statement will, at the date it is first mailed to the Company’s stockholders and at the time of the Company Stockholders Meeting, or, if the Company
disseminates an Information Statement in lieu of a Proxy Statement in accordance with Section 6.5, the Information Statement will, at the date it is first mailed to the Company’s stockholders and on the date the Written Consent is
effective, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not
misleading. The Offer Documents and the Schedule 13E-3 (insofar as it relates to Parent or its affiliates) will comply in all material respects with the Securities Laws. Notwithstanding the foregoing, no representation is made by
Parent or Merger Sub with respect to statements made or incorporated by reference in any of the foregoing documents based on information supplied by the Company for inclusion or incorporation by reference therein. 
  
 (e) Available
Funds.    Parent will have available to it all funds necessary to permit Parent and Merger Sub to satisfy all of their respective obligations under this Agreement, including acquiring all of the outstanding Public Shares in
the Offer and the Merger. 
  
 (f) Capitalization and Operations of Merger Sub.    The authorized capital stock of Merger Sub consists solely of 1,000 shares of Common Stock, par value $0.01 per share, all of which are validly issued
and outstanding. All of the issued and outstanding capital stock of Merger Sub is, and at the Effective Time will be, owned by Parent or a direct or indirect wholly owned Subsidiary of Parent. Merger Sub was formed solely for the purpose
of engaging in the Transactions and has not engaged in any business prior to the date hereof other than those incident to its formation and pursuant to this Agreement, the Offer and the Merger and the other Transactions. 
  
 ARTICLE VI 
  
 COVENANTS 
  
 6.1 Interim Operations. 
  
 (a) The Company covenants and agrees as to itself and
its Subsidiaries that, after the date hereof and prior to the Effective Time (unless Parent shall otherwise approve in writing, and except as otherwise expressly authorized by this Agreement or as set forth in Section 6.1 of the Company
Disclosure Letter) and except as required by applicable Laws, the business of it and its Subsidiaries shall be conducted in the ordinary and usual course and, to the extent consistent therewith, it and its Subsidiaries shall use their respective
reasonable best efforts to preserve their business organizations intact and maintain existing relations and goodwill with Governmental Entities, customers, suppliers, creditors, lessors, employees and business associates and keep available the
services of its and its Subsidiaries’ current employees and agents. 
  
 (b) Without limiting the generality of Section 6.1(a) and in furtherance thereof, from and after the date hereof until the Acceptance Time and, if the 90% Requirement is satisfied at any time from and
after the Acceptance Time, from and after such time that the 90% Requirement is satisfied until the Effective Time, except (A) as otherwise expressly required by this Agreement, (B) as Parent may approve in writing, or (C) as set
forth in Section 6.1 of the Company Disclosure Letter, the Company will not and will not permit its Subsidiaries to: 
  
 (i) adopt any change in the certificate of incorporation or by-laws or other applicable governing instruments of any Subsidiary of
the Company; 
  
 (ii) merge or consolidate
any Subsidiary of the Company with any other Person, or restructure, reorganize or completely or partially liquidate or otherwise enter into any agreements or arrangements imposing material changes or restrictions on the Company’s or any of its
Subsidiaries’ assets, operations or businesses; 
  

 14 

 (iii) issue, sell, pledge, dispose of, grant, transfer, encumber, or authorize the
issuance, sale, pledge, disposition, grant, transfer, or encumbrance of, any shares of capital stock of the Company or any of its Subsidiaries, or securities convertible or exchangeable into or exercisable for any shares of such capital stock, or
any options, warrants or other rights of any kind to acquire any shares of such capital stock or such convertible or exchangeable securities, except in accordance with the terms of the grant of any outstanding and exercisable Company Option that was
issued prior to the date of this Agreement; 
  
 (iv) except for the Company’s declaration and payment of regular quarterly cash dividends consistent with past practice and in any event not in excess of $0.52 per share with usual record and payment dates for such dividends in
accordance with past dividend practice of the Company, declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock; 
  
 (v) reclassify, split, combine, subdivide or redeem,
purchase or otherwise acquire, directly or indirectly, any of its capital stock or securities convertible or exchangeable into or exercisable for any shares of its capital stock; 
  
 (vi) make any changes with respect to accounting policies or procedures, except as required by changes
in GAAP; 
  
 (vii) settle any material
litigation or other material proceedings before a Governmental Entity; 
  
 (viii) (A) make or rescind any material election relating to Taxes; (B) file any amended income Tax Return or material claim for refund; (C) make any material change in any method of accounting,
keeping of books of account or accounting practices or in any method of Tax accounting of the Company or any of its Subsidiary unless required by GAAP or applicable Law; (D) enter into or agree to any private letter ruling, closing agreement or
similar ruling or agreement with the IRS or any other taxing authority or settle any audit or proceeding with respect to any material amount of Taxes owed; or (E) file its federal income Tax Return for any fiscal year ending on or after
December 31, 2007 without providing Parent reasonable opportunity to review and comment on such Tax Return; 
  
 (ix) except as required pursuant to existing written, binding agreements in effect prior to the date of this Agreement, or as
otherwise required by applicable Law, (i) grant or provide any severance or termination payments or benefits to any director, officer or employee of the Company or any of its Subsidiaries, (ii) increase the compensation, bonus or pension,
welfare, severance or other benefits of, pay any bonus to, or make any new equity awards to any director, officer or employee of the Company or any of its Subsidiaries, (iii) establish, adopt, amend or terminate any Compensation Agreements and
Benefit Plans or amend the terms of any outstanding equity-based awards, (iv) take any action to accelerate the vesting or payment, or fund or in any other way secure the payment, of compensation or benefits under any Compensation Agreements
and Benefit Plans, to the extent not already provided in any such Compensation Agreements and Benefit Plans, (v) change any actuarial or other assumptions used to calculate funding obligations with respect to any Compensation Agreements and
Benefit Plans or to change the manner in which contributions to such plans are made or the basis on which such contributions are determined, except as may be required by GAAP; or (vi) forgive, grant a waiver or extension under, or amend in any
manner adverse to the Company or one of its Subsidiaries, any extension of credit to directors or executive officers of the Company or any of its Subsidiaries; 
  

(x) take any action or omit to take any action that is reasonably likely to result in any of the conditions to the Offer set forth
in Exhibit 1 or the conditions to the Merger set forth in Article VII not being satisfied; or 
  
 (xi) agree, authorize or commit to do any of the foregoing. 
  
 (c) Without limiting the generality of Section 6.1(a) and in furtherance thereof, during any
period from and after the Acceptance Time and prior to the Effective Time during which the 90% Requirement is not 

  

 15 

 
satisfied, except (A) as otherwise expressly required by this Agreement, (B) as Parent may approve in writing, or (C) as set forth in
Section 6.1 of the Company Disclosure Letter, the Company will not and will not permit its Subsidiaries to: 
  
 (i) adopt any change in the certificate of incorporation or by-laws or other applicable governing instruments of any Subsidiary of
the Company; 
  
 (ii) merge or consolidate
any Subsidiary of the Company with any other Person, or restructure, reorganize or completely or partially liquidate or otherwise enter into any agreements or arrangements imposing material changes or restrictions on the Company’s or any of its
Subsidiaries’ assets, operations or businesses; 
  
 (iii) issue, sell, pledge, dispose of, grant, transfer, encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, or encumbrance of, any shares of capital stock of the Company or any of its Subsidiaries (other
than the issuance of shares by a wholly owned Subsidiary of the Company to the Company or another wholly owned Subsidiary), or securities convertible or exchangeable into or exercisable for any shares of such capital stock, or any options, warrants
or other rights of any kind to acquire any shares of such capital stock or such convertible or exchangeable securities, except in accordance with the terms of the grant of any outstanding and exercisable Company Option that was issued prior to the
date of this Agreement; 
  
 (iv) except for
the Company’s declaration and payment of regular quarterly cash dividends consistent with past practice and in any event not in excess of $0.52 per share with usual record and payment dates for such dividends in accordance with past dividend
practice of the Company, declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock; 
  
 (v) reclassify, split, combine, subdivide or redeem, purchase or otherwise acquire, directly or
indirectly, any of its capital stock or securities convertible or exchangeable into or exercisable for any shares of its capital stock; 
  
 (vi) make any changes with respect to accounting policies or procedures, except as required by changes in GAAP; 
  
 (vii) settle any material litigation or other material
proceedings, in each case relating to any of the Transactions before a Governmental Entity; 
  
 (viii) except as required pursuant to existing written, binding agreements in effect prior to the date of this Agreement, or as
otherwise required by applicable Law, (i) grant or provide any severance or termination payments or benefits to any director, officer or employee of the Company or any of its Subsidiaries, (ii) increase the compensation, bonus or pension,
welfare, severance or other benefits of, pay any bonus to, or make any new equity awards to any director, officer or employee of the Company or any of its Subsidiaries, (iii) establish, adopt, amend or terminate any Compensation Agreements and
Benefit Plans or amend the terms of any outstanding equity-based awards, (iv) take any action to accelerate the vesting or payment, or fund or in any other way secure the payment, of compensation or benefits under any Compensation Agreements
and Benefit Plans, to the extent not already provided in any such Compensation Agreements and Benefit Plans, (v) change any actuarial or other assumptions used to calculate funding obligations with respect to any Compensation Agreements and
Benefit Plans or to change the manner in which contributions to such plans are made or the basis on which such contributions are determined, except as may be required by GAAP; or (vi) forgive, grant a waiver of extension under, or amend in any
manner adverse to the Company or one of its Subsidiaries, any extension of credit to directors or executive officers of the Company or any of its Subsidiaries; 
  

(ix) take any action or omit to take any action that is reasonably likely to result in any of the conditions to the Merger set forth in
Article VII not being satisfied; or 
  
 (x)
agree, authorize or commit to do any of the foregoing. 
  

 16 

 (d) Prior to making any written or oral communications to the directors, officers or
employees of the Company or any of its Subsidiaries pertaining to compensation or benefit matters that are affected by the Transactions, the Company shall provide Parent with a copy of the intended communication, Parent shall have a reasonable
period of time to review and comment on the communication, and Parent and the Company shall cooperate in providing any such mutually agreeable communication. 
  

(e) Parent shall not knowingly take or permit any of its Subsidiaries to take any action that is reasonably likely to prevent or
materially delay the consummation of the Transactions. 
  
 6.2 No Change in Recommendation.    The Special Committee, the Company Board and each other committee thereof shall not withhold, withdraw, qualify or modify (or publicly propose or resolve to withhold,
withdraw, qualify or modify), in a manner adverse to Parent, either the Special Committee Recommendation or the Company Board Recommendation except to the extent the Special Committee or the Company Board, as the case may be, determines in good
faith, after consultation with outside counsel, that such action is necessary in order for such directors to comply with their fiduciary obligations under applicable Law (a “Change of Recommendation”); provided,
however, that no Change of Recommendation may be made until after at least 48 hours following Parent’s receipt of notice from the Company advising that the Special Committee and/or the Company Board intends to take such action and
the basis therefor. 
  
 6.3 Proxy
Statement.    Subject to Section 6.5, upon Parent’s written request from and after the Acceptance Time, the Company shall, and at any time from and after the Acceptance Time, the Company may, prepare and file with
the SEC, as promptly as reasonably practicable, a proxy statement in preliminary form relating to the Stockholders Meeting (such proxy statement, including any amendment or supplement thereto, the “Proxy Statement”). The
Company agrees, as to itself and its Subsidiaries, that the Proxy Statement will comply with applicable Law, including the applicable provisions of the Exchange Act and the rules and regulations thereunder. 
  
 6.4 Stockholders Meeting.    Subject to
Section 6.5, upon Parent’s written request from and after the Acceptance Time, then the Company shall, and at any time from and after the Acceptance Time, the Company may, take, in accordance with applicable Law and its certificate of
incorporation and by-laws, all action reasonably necessary to convene a meeting of holders of Public Shares (the “Stockholders Meeting”) as promptly as reasonably practicable to consider and vote upon this Agreement and the Merger
and shall not postpone or adjourn such meeting except to the extent required by Law. 
  
 6.5 Information Statement.    At Parent’s option, this Agreement and the Merger may be approved by an irrevocable written consent (the “Written Consent”) executed by
the holders of the requisite number of shares of Common Stock. In the event that Parent elects to obtain the Written Consent in lieu of obtaining stockholder approval at a Stockholders Meeting, Parent shall so notify the Company in writing and
the Company shall prepare, file with the SEC and transmit to the holders of Public Shares a preliminary information statement of the Company relating to the Merger in accordance with the Company’s certificate of incorporation and by-laws, and
in accordance with applicable Law, including Regulation 14C promulgated under the Exchange Act (the “Information Statement”). 
  
 6.6 Filings; Other Actions; Notification. 
  
 (a) Proxy Statement/Information Statement.    The Company shall promptly notify Parent of the receipt of
all comments of the SEC with respect to the Proxy Statement and/or the Information Statement and of any request by the SEC for any amendment or supplement thereto or for additional information and shall promptly provide to Parent copies of all
correspondence between the Company and/or any of its representatives and the SEC with respect to the Proxy Statement and/or the Information Statement. Each of the Company and Parent shall use its reasonable best efforts promptly to provide
responses to the SEC with respect to all comments received on the Proxy Statement and/or the Information Statement by the SEC and the Company shall cause the definitive Proxy Statement or Information Statement to be mailed as promptly 

  

 17 

 
as possible after the date the SEC staff advises that it has no further comments thereon or that the Company may commence mailing the Proxy Statement or the
Information Statement. 
  
 (b) Cooperation.    Subject to the terms and conditions set forth in this Agreement (including Section 6.13 of this Agreement), the Company and Parent shall cooperate with each other and use (and shall
cause their respective Subsidiaries to use) their respective reasonable best efforts to take or cause to be taken all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under this Agreement and
applicable Laws to consummate the Offer, the Merger and the other Transactions as soon as practicable, including preparing and filing as promptly as practicable all documentation to effect all necessary notices, reports and other filings and to
obtain as promptly as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third party and/or any Governmental Entity in order to consummate the Offer, the Merger or any of the
other Transactions. Subject to applicable Laws relating to the exchange of information, Parent shall have the right to direct all matters with any Governmental Entity consistent with its obligations hereunder; provided that Parent and
the Company shall have the right to review in advance, and to the extent practicable each will consult with the other on and consider in good faith the views of the other in connection with, all of the information relating to Parent or the Company,
as the case may be, and any of their respective Subsidiaries, that appears in any filing made with, or written materials submitted to, the SEC in connection with the Offer, the Merger and the other Transactions (including the Offer Documents, the
Schedule 13E-3, and the Information Statement or the Proxy Statement, as the case may be); provided further that, with respect to any filing made with, or written materials submitted to, any third party and/or any Governmental
Entity other than the SEC in connection with the Offer, the Merger and the other Transactions, Parent shall have the right to review in advance, and to the extent practical the Company will consult with Parent on and consider in good faith the views
of Parent in connection with, all of the information relating to Parent that appears in any such filing or submission. In exercising the foregoing rights, each of the Company and Parent shall act reasonably and as promptly as
practicable. Subject to applicable Law, in the event that any administrative or judicial action or proceeding is instituted (or threatened to be instituted) by a private party against the Company or any of its Subsidiaries or their respective
directors challenging the Transactions, the Company shall cooperate in all respects with Parent and use its reasonable best efforts to contest and resist any such action or proceeding and to have vacated, lifted, reversed or overturned any decree,
judgment, injunction or other order, whether temporary, preliminary or permanent, that is in effect and that prohibits, prevents or restricts consummation of the Transactions; provided that, in no event shall the Company be required to take
any such actions that would reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 
  
 (c) Information.    The Company and Parent each shall, upon request by the other, furnish the other with
all information concerning itself, its Subsidiaries, directors, officers and stockholders and such other matters as may be reasonably necessary or advisable in connection with the Offer Documents, the Schedule 13E-3 and the Information
Statement or the Proxy Statement, as the case may be, or any other statement, filing, notice or application made by or on behalf of Parent, the Company or any of their respective Subsidiaries to any third party and/or any Governmental Entity in
connection with the Offer, the Merger and the other Transactions; it being understood that in no event shall Parent be required to provide confidential information concerning Parent or any of its affiliates to the Company or any of its
affiliates pursuant to this Section 6.6 or any subsection hereof. 
  
 (d) Status.    Subject to applicable Laws and as required by any Governmental Entity, the Company and Parent each shall keep the other apprised of the status of matters relating to
completion of the Offer, the Merger and the other Transactions, including promptly furnishing the other with copies of notices or other communications received by Parent or the Company, as the case may be, or any of its Subsidiaries, from any third
party and/or any Governmental Entity with respect to the Offer, the Merger and the other Transactions. The Company shall give prompt notice to Parent of any change, fact or condition that is reasonably expected to result in a Material Adverse
Effect or of any failure of any condition in Exhibit 1 or Article VII. The Company shall not permit any of its officers or any other representatives or agents to 

  

 18 

 
participate in any meeting with any Governmental Entity in respect of any filings, investigation or other inquiry relating to the Offer, the Merger and the
other Transactions unless it consults with Parent in advance and, to the extent permitted by such Governmental Entity, gives Parent the opportunity to attend and participate thereat. 
  
 (e) Rule 14d-10(c) Matters.    Prior to the Expiration Date, the
Compensation Committee will, to the extent it has not previously taken such action, (i) approve and/or ratify all Compensation Agreements and Benefit Plans as an “employment compensation, severance or other employee benefit
arrangement” within the meaning of Rule 14d-10(d)(2) under the Exchange Act, and (ii) take all other actions necessary or advisable to satisfy the requirements of the non-exclusive safe harbor with respect to such Compensation
Agreements and Benefit Plans in accordance with Rule 14d-10(d)(2) under the Exchange Act. 
  
 6.7 Access and Reports.    Subject to applicable Law, upon reasonable notice, the Company shall (and shall cause its
Subsidiaries to) afford Parent’s officers and other authorized representatives reasonable access, during normal business hours throughout the period prior to the Effective Time, to its employees, properties, books, contracts and records and,
during such period, the Company shall (and shall cause its Subsidiaries to) furnish promptly to Parent all information concerning its business, properties and personnel as may reasonably be requested, provided that no investigation pursuant to this
Section 6.7 shall affect or be deemed to modify any representation or warranty made by the Company herein, and provided, further, that the foregoing shall not require the Company (i) to permit any inspection, or to disclose any
information, that in the reasonable judgment of the Company would result in the disclosure of any trade secrets of third parties or violate any of its obligations with respect to confidentiality if the Company shall have used reasonable best efforts
to obtain the consent of such third party to such inspection or disclosure or (ii) to disclose any privileged information of the Company or any of its Subsidiaries. All requests for information made pursuant to this Section 6.7 shall
be directed to the executive officer or other Person designated by the Company. All such information shall be governed by the terms of the Confidentiality Agreement. 
  

 6.8 Stock Exchange Delisting.    Prior to the Closing Date, the Company shall cooperate with Parent and use
reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under applicable Laws and rules and policies of the NYSE to enable the delisting by
the Surviving Corporation of the Common Stock from the NYSE and the deregistration of the Common Stock under the Exchange Act as promptly as practicable after the earlier of (i) the Effective Time and (ii) such time as the Company
qualifies for an issuer-initiated delisting under applicable Law and the rules and policies of the NYSE, and in any event no more than ten (10) days after the Closing Date. 
  
 6.9 Publicity.    The initial press release regarding the Transactions shall be a joint
press release and thereafter the Company and Parent each shall consult with each other prior to issuing any press releases or otherwise making public announcements with respect to the Transactions and prior to making any filings with any third party
and/or any Governmental Entity (including any national securities exchange or interdealer quotation service) with respect thereto, except as may be required by Law or by obligations pursuant to any listing agreement with or rules of any
national securities exchange or interdealer quotation service or by the request of any Governmental Entity; provided that in no event shall Parent be required to consult with the Company in connection with any filing with any Japanese
Governmental Entity or the Tokyo Stock Exchange or in connection with providing any confidential information concerning Parent or any of its affiliates to any third party or Governmental Entity. 
  
 6.10 Expenses.    Whether or not the Public
Shares are purchased pursuant to the Offer, all costs and expenses incurred in connection with the Transactions shall be paid by the party incurring such expense, except that expenses incurred in connection with the filing fee for the
Schedule TO and the publishing, printing and/or mailing of the Offer Documents shall be borne by Purchaser, and expenses incurred in connection with the Schedule 13E-3 and the Information Statement or the Proxy Statement, as the case may
be (but not the attorney’s fees related thereto, which shall be paid by the party incurring such expense), shall be shared equally by Parent and the Company. 
  

 19 

 6.11 Indemnification; Directors’ and Officers’
Insurance.    (a) From and after the Acceptance Time, and for a period of six years after the later of the Acceptance Time and the Effective Time, each of Parent and the Surviving Corporation agrees that, to the fullest
extent permitted by Law, it will indemnify and hold harmless each present and former director and officer of the Company or any of its Subsidiaries (in each case, when acting in such capacity), determined as of the Acceptance Time (the
“Indemnified Parties”), against any costs or expenses (including reasonable attorneys’ fees), judgments, settlements, fines, losses, claims, damages or liabilities (collectively, “Costs”) incurred in connection
with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of matters existing or occurring at or prior to the Effective Time, whether asserted or claimed prior to, at or after
the Effective Time, (and Parent or the Surviving Corporation shall also advance expenses as incurred to the fullest extent permitted under applicable Law, provided that the Person to whom expenses are advanced provides an undertaking to repay
such advances if it is ultimately determined that such Person is not entitled to indemnification). 
  
 (b) Any Indemnified Party wishing to claim indemnification under Section 6.11(a), upon learning of any such claim, action, suit,
proceeding or investigation, shall promptly notify Parent and the Surviving Corporation thereof, but the failure to so notify shall not relieve Parent or the Surviving Corporation of any liability it may have to such Indemnified Party except to the
extent such failure materially prejudices the indemnifying party. In the event of any such claim, action, suit, proceeding or investigation (whether arising before or after the Effective Time), (i) Parent or the Surviving Corporation shall
have the right to assume the defense thereof and Parent and the Surviving Corporation shall not be liable to such Indemnified Parties for any legal expenses of other counsel or any other expenses subsequently incurred by such Indemnified Parties in
connection with the defense thereof, except that if Parent or the Surviving Corporation elects not to assume such defense or counsel for the Indemnified Parties advises that there are issues that raise conflicts of interest between Parent or the
Surviving Corporation, on the other hand, and the Indemnified Parties, on the other, the Indemnified Parties may retain counsel satisfactory to them, and Parent or the Surviving Corporation shall pay all reasonable fees and expenses of such counsel
for the Indemnified Parties promptly as statements therefor are received; provided, however, that Parent and the Surviving Corporation shall be obligated pursuant to this paragraph (b) to pay for only one firm of counsel for
all Indemnified Parties in any jurisdiction unless the use of one counsel for such Indemnified Parties would present such counsel with a conflict of interest; provided that the fewest number of counsels necessary to avoid conflicts of
interest shall be used; (ii) the Indemnified Parties will cooperate in the defense of any such matter, and (iii) Parent and the Surviving Corporation shall not be liable for any settlement effected without their prior written consent; and
provided, further, that Parent and the Surviving Corporation shall not have any obligation hereunder to any Indemnified Party if and when a court of competent jurisdiction shall ultimately determine, and such determination shall have
become final, that the indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by applicable Law. If such indemnity is not available with respect to any Indemnified Party, then the Surviving Corporation and the
Indemnified Party shall contribute to the amount payable in such proportion as is appropriate to reflect relative faults and benefits. 
  
 (c) Parent shall use its reasonable best efforts to cause the individuals serving as officers and directors of the Company or any of
its Subsidiaries immediately prior to the Acceptance Time to be covered for a period of six (6) years from the Effective Time by the directors’ and officers’ liability insurance policy maintained by the Company (provided that
Parent may substitute therefor policies of at least the same coverage and amounts containing terms and conditions which are not less advantageous than such policy) with respect to acts or omissions occurring prior to the Effective Time which were
committed by such officers and directors in their capacity as such; provided, however, that in no event shall Parent be required to expend on an annual basis more than 300% of the current amount expended by the Company (the
“Insurance Amount”) to maintain or procure insurance coverage, and further provided that if Parent is unable to maintain or obtain the insurance called for by this Section 6.11(c) Parent shall use all reasonable
efforts to obtain as much comparable insurance as is available for the Insurance Amount. 
  
 (d) If Parent or the Surviving Corporation or any of their respective successors or assigns (i) shall consolidate with or merge
into any other corporation or entity and shall not be the continuing or surviving 

  

 20 

 
corporation or entity of such consolidation or merger or (ii) shall transfer all or substantially all of its properties and assets to any individual,
corporation or other entity, then, and in each such case, proper provisions shall be made so that the successors and assigns of Parent or the Surviving Corporation shall assume all of the obligations set forth in this Section 6.11. 

 
 (e) The provisions of this Section 6.11 are
intended to be for the benefit of, and shall be enforceable by, each of the Indemnified Parties. 
  
 (f) Parent and Merger Sub agree that all rights to exculpation, indemnification and advancement of expenses for acts or omissions
occurring at or prior to the Effective Time, whether asserted or claimed prior to, at or after the Effective Time, now existing in favor of the current or former directors or officers of the Company or its Subsidiaries as provided in their
respective certificates of incorporation or by-laws or similar organizational documents shall survive the Merger and shall continue in full force and effect to the fullest extent permitted by Law. For a period of six (6) years from the
Effective Time, to the fullest extent permitted by Law, Parent shall cause the Surviving Corporation to maintain in effect any and all exculpation, indemnification and advancement of expenses provisions of the Company’s and any of its
Subsidiaries’ certificate of incorporation and by-laws or similar organizational documents in effect as of the date hereof or in any indemnification agreements of the Company or its Subsidiaries with any of their respective current or former
directors or officers in effect as of the date hereof, and shall not amend, repeal or otherwise modify any such provisions in any manner that would adversely affect the rights thereunder of any individuals who at the Acceptance Time were current or
former directors or officers of the Company or any of its Subsidiaries; provided, however, that all rights to indemnification in respect of any action, litigation, investigation, suit, arbitration or proceeding pending or asserted or
any claim made within such period shall continue until the disposition of such action, litigation, investigation, suit, arbitration or proceeding or resolution of such claim. 
  
 6.12 Takeover Statutes.    If any Takeover Statute is or may become applicable to the Offer,
the Merger or the other Transactions, the Company and the Company Board shall grant such approvals and take such actions as are necessary so that such Transactions may be consummated as promptly as practicable on the terms contemplated by this
Agreement and otherwise act to eliminate or minimize the effects of such statute or regulation on such Transactions. 
  
 6.13 Tail Period.    Notwithstanding anything to the contrary in this Agreement, the Company acknowledges and agrees that,
during the six months from and after the Acceptance Time (the “Tail Period”) if and for so long as the 90% Requirement is not satisfied, Parent is not required to take any action to acquire Public Shares. Without limiting the
foregoing, during the Tail Period, Parent and its affiliates may (but are not required to) purchase Public Shares on the open market and in privately negotiated transactions in accordance with applicable Law; provided that neither Parent nor
any of its affiliates may commence a “tender offer” (within the meaning of the Exchange Act and the rules and regulations promulgated thereunder) during the Tail Period without the Company’s consent. During the Tail Period,
Parent shall notify the Company in writing promptly after the 90% Requirement is satisfied. For the avoidance of doubt, if and when the 90% Requirement is satisfied at any time during the Tail Period, (i) consistent with
Section 6.6(b) of this Agreement but without limiting Section 8.1(f) of this Agreement, the Company and Parent shall use (and shall cause their respective Subsidiaries to use) their respective reasonable best efforts to take or
cause to be taken all actions, and do or cause to be done all things, reasonably necessary, proper or advisable on its part under this Agreement and applicable Laws to consummate the Merger and the other Transactions as soon as practicable and
(ii) consistent with Section 4.1(a) of this Agreement, the Per Share Merger Consideration payable in connection with the Merger shall be equal to the Offer Price. 
  
 6.14 Tax Certificate.    The Company shall use its reasonable best efforts to provide to
Parent immediately prior to the Closing a statement pursuant to Treasury Regulation Section 1.1445-2(c)(3) certifying that the Company is not a U.S. real property interest (as defined by the Code). 
  

 21 

 6.15 Formation of Merger Sub; Accession.    As promptly as reasonably
practicable after the date hereof, and in any event within ten business days after the date hereof, Parent shall form a Delaware corporation as a direct wholly owned Subsidiary of Parent (“Merger Sub”). As promptly as
reasonably practicable after incorporating Merger Sub, (x) Parent, in its capacity as the sole shareholder of Merger Sub, shall approve and adopt this Agreement and (y) Parent shall cause Merger Sub to accede to this Agreement by executing
a signature page to this Agreement, after which time Merger Sub shall be a party hereto for all purposes set forth herein. Notwithstanding any provision herein to the contrary, (i) the obligations of Merger Sub to perform its
covenants hereunder shall commence only at the time of its incorporation and (ii) the representations and warranties of Merger Sub set forth in Section 5.3 shall be deemed to have been made as though Merger Sub had been a party to this
Agreement as of the date hereof. Prior to the Effective Time, Parent shall take such actions as are reasonably necessary to cause the Board of Directors of Merger Sub to unanimously approve this Agreement and declare it advisable for Merger Sub
to enter into this Agreement. Notwithstanding anything to the contrary in this Agreement, Parent and its Affiliates may amend, or cause to be amended, the by-laws of Merger Sub at any time prior to the Effective Time so long as such amendment
would not impair, delay or prevent the Closing. 
  
 ARTICLE VII

  
 CONDITIONS OF THE MERGER 
  
 7.1 Conditions to Each Party’s Obligation to Effect the
Merger.    The respective obligation of each party to effect the Merger is subject to the satisfaction or waiver at or prior to the Effective Time of each of the following conditions: 
  
 (a) Stockholder
Approval.    The Merger shall have been adopted by the Company Requisite Vote. 
  
 (b) No Restraints.    No Law, judgment, order, writ, injunction, decree or award (whether temporary,
preliminary or permanent) enacted, issued, promulgated, enforced or entered by any Governmental Entity is in effect and restrains, enjoins or otherwise prohibits consummation of the Merger or the other Transactions (collectively, an
“Order”). 
  
 (c) Purchase of Public Shares in Offer.    Parent shall have accepted for payment and purchased, or caused to be accepted for payment and purchased, all Public Shares validly tendered and not withdrawn
pursuant to the Offer (provided that the purchase of Public Shares pursuant to the Offer shall not be a condition to the obligations of Parent hereunder if Parent shall fail to accept payment and pay for Public Shares pursuant to the Offer in
violation of the terms of this Agreement). 
  
 7.2 Conditions to Parent’s and Merger Sub’s Obligation to Effect the Merger.    In addition to the conditions set forth above in this Article VII, the obligation of Parent and Merger Sub to
effect the Merger is subject to the satisfaction or waiver at or prior to the Effective Time of the following conditions: 
  
 (a) Representations and Warranties.    The representations and warranties of the Company contained in this
Agreement that (i) are not made as of a specific date shall have been true and correct as of the date of the Agreement and shall be true and correct as of the Effective Time, and (ii) are made as of a specific date shall have been true and
correct as of such date, in each case, except where such inaccuracy would not reasonably be expected to have a Material Adverse Effect on the Company; provided that, for purposes of this Section 7.2(a), any qualifications as to
materiality or Material Adverse Effect included in such representation and warranty (including, for avoidance of doubt, the qualifications as to Material Adverse Effect in Section 5.1 of this Agreement) shall be disregarded for purposes of
determining whether the condition contained in this Section 7.2(a) has been satisfied. 
  
 (b) Covenants.    The Company shall not have failed to perform and comply with, in any material respect,
its obligations, agreements and covenants under the Agreement on or prior to the Effective Time. 
  
 (c) Certificate.    The Company shall have delivered to Parent a certificate signed by the Chief Operating
Officer or the Chief Financial Officer of the Company and certifying as to the satisfaction by the Company of the conditions described in Sections 7.2(a) and (b). 
  

 22 

 (d) Material Adverse Effect.    Since June 30, 2008,
there shall have occurred no Material Adverse Effect. 
  
 7.3 Conditions to the Company’s Obligation to Effect the Merger.    In addition to the conditions set forth above in this Article VII, the obligation of the Company to effect the Merger is subject
to the satisfaction or waiver at or prior to the Effective Time of the following conditions: 
  
 (a) Representations and Warranties.    The representations and warranties of Parent and Merger Sub
contained in this Agreement that (i) are not made as of a specific date shall have been true and correct in all material respects as of the date of the Agreement and shall be true and correct in all material respects as of the Effective Time,
and (ii) are made as of a specific date shall have been true and correct in all material respects as of such date. 
  
 (b) Covenants.    Each of Parent and Merger Sub shall not have failed to perform and comply with, in any
material respect, their respective obligations, agreements and covenants under the Agreement on or prior to the Effective Time. 
  
 (c) Certificate.    Parent shall have delivered to the Company a certificate signed by an executive offer
of Parent and certifying as to the satisfaction by Parent and Merger Sub of the conditions described in Sections 7.3(a) and (b). 
  
 ARTICLE VIII 
  
 TERMINATION 
  
 8.1 Termination.    This Agreement may be terminated and the Transactions may be abandoned at any time prior to the Effective Time, whether before or after Stockholder Approval,

  
 (a) by mutual written consent of Parent,
Merger Sub and the Company (with respect to the Company, only with the approval of the Special Committee); 
  
 (b) by either Parent or the Company by action of its board of directors (with respect to the Company, only with the approval of the
Special Committee): (i) if Parent has not accepted Public Shares for payment pursuant to the Offer on or before 5 p.m. New York City time on the Outside Date; (ii) if any Order permanently enjoining, restraining or otherwise
prohibiting the Merger exists and such Order shall have become final and nonappealable or (iii) if the Offer shall have terminated or expired in accordance with its terms without Parent having purchased any Public Shares pursuant to the Offer;
provided, that the right to terminate this Agreement pursuant to this Section 8.1(b) shall not be available to any party that has breached its obligations under this Agreement in any manner that shall have proximately contributed to
the occurrence of the event which gave rise to the termination right under this Section 8.1(b); 
  
 (c) by Parent, if the Company Board or the Special Committee shall have made a Change in Recommendation; 
  
 (d) by Parent, if there has been a breach of any
representation, warranty, covenant or agreement made by the Company in this Agreement, or any such representation or warranty shall have become untrue or incorrect on any date subsequent to the date of this Agreement, in each case in a manner that
would: 
  
 (i) if such breach or failure to
be true and correct occurs prior to the expiration of the Offer, cause any condition in Exhibit 1 or Article VII hereto not to be satisfied and such breach or failure to be true or correct is not curable or, if curable, has not been
cured before 5:00 p.m. New York City time on the 30th day after written notice thereof has been given by Parent to the Company, or 
  
 (ii) if such breach occurs after the Acceptance Time but prior to the expiration of the Tail Period, cause any condition in
Article VII hereto not to be satisfied and such breach or failure to be true or correct is not curable or, if curable, has not been cured before 5:00 p.m. New York City time on the 30th day after written notice thereof has been given by
Parent to the Company; 
  

 23 

 provided, however, that Parent shall not have the right to terminate this
Agreement pursuant to this Section 8.1(d) if the Parent is the primary cause of the breach by the Company giving rise to Parent’s right to terminate this Agreement pursuant to Section 8.1(d) or its inability to cure such
breach. 
  
 (e) by the Company (only with
the approval of the Special Committee), if there has been a breach of any representation, warranty, covenant or agreement made by Parent or Merger Sub in this Agreement, or any such representation or warranty shall have become untrue or incorrect on
any date subsequent to the date of this Agreement, in each case in a manner that 
  
 (i) if such breach occurs prior to the expiration of the Offer, would,
individually or in the aggregate, reasonably be expected to prevent, materially delay or impair the ability of Parent or Merger Sub to consummate the Offer and such breach or failure to be true or correct is not curable or, if curable, has not been
cured before 5:00 p.m. New York City time on the 30th day after written notice thereof has been given by the Company to Parent, or

  
 (ii) if such breach or failure to be true occurs after the Acceptance Time but prior to the expiration of the Tail Period, would, individually or in the aggregate, reasonably be expected to prevent, materially delay or impair the
ability of Parent and Merger Sub to consummate the Merger and such breach or failure to be true or correct is not curable or, if curable, has not been cured before 5:00 p.m. New York City time on the 30th day after written notice thereof has been given by the Company to Parent. 
  
 (f) by Parent or the Company (with respect to the Company, only with the approval of the Special Committee), at any time after the
expiration of the Tail Period, whether or not Parent has previously accepted Public Shares for payment pursuant to the Offer. 
  
 8.2 Effect of Termination and Abandonment.    In the event of termination of this Agreement and the abandonment of the
Merger pursuant to this Article VIII, this Agreement shall become void and of no effect with no liability to any Person on the part of any party hereto (or of any of its representatives or affiliates); provided, however, and
notwithstanding anything in the foregoing to the contrary, that (i) no such termination shall relieve any party hereto of any liability or damages to the other parties hereto resulting from any willful or intentional breach of this Agreement
and (ii) the provisions set forth in this Section 8.2 (Effect of Termination and Abandonment), Section 6.10 (Expenses), Section 6.11 (Indemnification; Directors’ and Officers’ Insurance) and the first sentence of
Section 9.1 (Survival) shall survive the termination of this Agreement. 
  
 ARTICLE IX 
  
 MISCELLANEOUS AND GENERAL 
  
 9.1 Survival.    This Article IX and the agreements of the Company, Parent and Merger Sub contained in Article IV and Section 6.10 (Expenses) shall survive the consummation of the Merger and
Section 6.11 (Indemnification; Directors’ and Officers’ Insurance) shall survive each of the Acceptance Time and the consummation of the Merger. This Article IX and the agreements of the Company, Parent and Merger Sub
contained in Section 6.10 (Expenses), Section 6.11(f) (Indemnification; Directors’ and Officers’ Insurance) and Section 8.2 (Effect of Termination and Abandonment) and the Confidentiality Agreement shall survive the
termination of this Agreement. All other representations, warranties, covenants and agreements in this Agreement shall not survive the consummation of the Merger or the termination of this Agreement. 
  
 9.2 Modification or Amendment.    Subject to
the provisions of the applicable Laws, at any time prior to the Effective Time, the parties hereto may modify or amend this Agreement, by written agreement executed and delivered by duly authorized officers of the respective parties (and, in the
case of the Company, approved by the Special Committee). 
  

 24 

 9.3 Waiver of Conditions.    The conditions to each of the parties’
obligations to consummate the Merger are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable Laws. No consent of or waiver by the Company under this Agreement shall be
enforceable unless such consent or waiver is approved by the Special Committee. 
  
 9.4 Counterparts.    This Agreement may be executed in any number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall
together constitute the same agreement. 
  
 9.5 GOVERNING LAW AND VENUE; WAIVER OF JURY TRIAL; SPECIFIC PERFORMANCE. (a) THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED, CONSTRUED AND GOVERNED BY AND IN
ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND WHOLLY TO BE PERFORMED IN SUCH STATE.    The parties hereby irrevocably submit to the personal jurisdiction of the Court of Chancery of the
State of Delaware solely in respect of the interpretation and enforcement of the provisions of this Agreement and of the documents referred to in this Agreement, and in respect of the Transactions, and hereby waive, and agree not to assert, as a
defense in any action, suit or proceeding for the interpretation or enforcement hereof or of any such document, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that
the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action or proceeding shall be heard and
determined in the Court of Chancery of the State of Delaware. The parties hereby consent to and grant any such court jurisdiction over the person of such parties and, to the extent permitted by Law, over the subject matter of such dispute and
agree that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 9.6 or in such other manner as may be permitted by Law shall be valid and sufficient service thereof. 

 
 (b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY
CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY MAKES THIS WAIVER VOLUNTARILY,
AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.5. 
  

(c) The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement in the Court of Chancery of the State of Delaware, this being in addition to any other remedy to which such party is entitled at Law or in equity. 
  

 25 

 9.6 Notices.    Any notice, request, instruction or other document to be
given hereunder by any party to the others shall be in writing and delivered personally or sent by registered or certified mail, postage prepaid, by facsimile or overnight courier: 
  
 If to Parent or Merger Sub: 
  

 The Bank of Tokyo-Mitsubishi UFJ, Ltd., 
 7-1 Maranouchi 2-chome 
 Chiyodo-ku, Tokyo 
 100-8388, Japan 
 Attention: Mitsuo Yamada 
 fax:+1-81-3-3240-5448 
 email: mitsuo_2_yamada@mufg.jp 
  
 with a copy to: 
  
 Sullivan & Cromwell LLP 
 125 Broad Street 
 New York, NY 10004 
 Attention: Donald J. Toumey 
 fax:+1-(212)-558-3588 
 email: toumeyd@sullcrom.com 
  
 If to
the Company: 
  
 UnionBanCal Corporation

 400 California Street 
 San Francisco, California, 94104-1302 
 Attention: General Counsel 
 fax:+1-(415)-765-3391 
 email: morris.hirsch@uboc.com 
  
 with
copies to: 
  
 Pillsbury Winthrop Shaw Pittman
LLP 
 50 Fremont Street 
 San Francisco, California 94105-2228 
 Attention: Rodney R. Peck 
 fax:+1-(415)-983-1200 
 email: rodney.peck@pillsburylaw.com 
  
 and 
  
 Richard D. Farman 
 Chairman of the Special Committee of the Board of Directors 
 UnionBanCal Corporation 
 400 California Street 
 San Francisco, California 94104-1302 
 fax:+1-(415)-765-3391 
 email: morris.hirsch@uboc.com 
  
 and

  
 Skadden, Arps, Slate, Meagher & Flom
LLP 
 Four Times Square 
 New York, NY 10036 
 Attention: William S. Rubenstein 
 fax:+1-(212)-735-2000 
 email: william.rubenstein@skadden.com 
  

 26 

 or to such other persons or addresses as may be designated in writing by the party to receive such notice as provided
above. Any notice, request, instruction or other document given as provided above shall be deemed given to the receiving party upon actual receipt, if delivered personally; three business days after deposit in the mail, if sent by registered or
certified mail; upon confirmation of successful transmission if sent by facsimile or email; or on the next business day after deposit with an overnight courier, if sent by an overnight courier. 
  
 9.7 Entire Agreement.    This Agreement
(including any exhibits hereto), the Company Disclosure Letter and the Confidentiality Agreement, dated July 2, 2008, between Parent and the Company (the “Confidentiality Agreement”) constitute the entire agreement, and
supersede all other prior agreements, understandings, representations and warranties both written and oral, among the parties, with respect to the subject matter hereof. 
  

 9.8 No Third Party Beneficiaries.    Except as provided in Section 6.11 (Indemnification;
Directors’ and Officers’ Insurance) only, Parent, Merger Sub and the Company hereby agree that their respective representations, warranties and covenants set forth herein are solely for the benefit of the other parties hereto, in
accordance with and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any Person other than the parties hereto any rights or remedies hereunder, including, without limitation, the right to rely
upon the representations and warranties set forth herein. Except for Section 6.11(f) with respect to which rights of third party beneficiaries arise as of the date of this Agreement, the parties hereto further agree that the rights of
third party beneficiaries under Section 6.11 shall not arise unless and until the Acceptance Time occurs. The representations and warranties in this Agreement are the product of negotiations among the parties hereto and are for the sole benefit
of the parties hereto. Any inaccuracies in such representations and warranties are subject to waiver by the parties hereto in accordance with Section 9.3 without notice or liability to any other Person. In some instances, the representations
and warranties in this Agreement may represent an allocation among the parties hereto of risks associated with particular matters regardless of the knowledge of any of the parties hereto. Consequently, Persons other than the parties hereto may not
rely upon the representations and warranties in this Agreement as characterizations of actual facts or circumstances as of the date of this Agreement or as of any other date. 
  
 9.9 Obligations of Parent and of the Company.    Whenever this Agreement requires a
Subsidiary of Parent to take any action, such requirement shall be deemed to include an undertaking on the part of Parent to cause such Subsidiary to take such action. Whenever this Agreement requires a Subsidiary of the Company to take any action,
such requirement shall be deemed to include an undertaking on the part of the Company to cause such Subsidiary to take such action and, after the Effective Time, on the part of the Surviving Corporation to cause such Subsidiary to take such action.

  
 9.10 Definitions.    Each of
the terms set forth in Annex A is defined in the Section of this Agreement set forth opposite such term, and such definitions shall apply regardless of where the terms appear in this Agreement. As used in this Agreement, the terms
“beneficial ownership” (and its correlative terms) and “affiliate” shall have the meanings assigned to such terms in Rule 13d-3 and Rule 12b-2 under the Exchange Act, respectively. 
  
 9.11 Severability.    The provisions of this
Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person
or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable
provision and, so long as the effect of substituting such provision in accordance with the foregoing is no more adverse to any party than this Agreement in the form executed as of the date hereof, (b) the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application
thereof, in any other jurisdiction. 
  

 27 

 9.12 Interpretation; Construction.    (a) The table of contents and
headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof. Where a reference in this Agreement is made to a Section or
Exhibit, such reference shall be to a Section of or Exhibit to this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be
deemed to be followed by the words “without limitation.” 
  
 (b) The parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if
drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 
  
 (c) Each party hereto has or may have set forth information in its respective Disclosure Letter in a
section thereof that corresponds to the section of this Agreement to which it relates. The fact that any item of information is disclosed in a Disclosure Letter to this Agreement shall not be construed to mean that such information is required to be
disclosed by this Agreement. 
  
 9.13 Assignment.    This Agreement shall not be assignable other than by operation of law; provided, however, that Parent may designate, by written notice to the Company, another wholly owned
direct or indirect Subsidiary to be a Constituent Corporation in lieu of Merger Sub, in which event all references herein to Merger Sub shall be deemed references to such other Subsidiary, except that all representations and warranties made herein
with respect to Merger Sub as of the date of this Agreement shall be deemed representations and warranties made with respect to such other Subsidiary as of the date of such designation; provided that any such designation shall not materially
impede or delay the consummation of the Transactions or otherwise materially impede the rights of the stockholders of the Company under this Agreement. Any purported assignment in violation of this Agreement shall be null and void. 
  
 [The next page is the signature page] 
  

 28 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers
of the parties hereto as of the date first written above. 
  

			
	 UNIONBANCAL CORPORATION

		
	 By:
	 	 /s/    MASAAKI TANAKA

		 	 Name: Masaaki Tanaka

		 	 Title: President and Chief Executive Officer

	
	 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

		
	 By:
	 	 /s/    TATSUO TANAKA

		 	 Name: Tatsuo Tanaka

		 	 Title: Deputy President

  
 Acceded to as of                     , 2008 
  
                     , as Merger Sub

  
 By: 
  

 29 

 ANNEX A 
  

 DEFINED TERMS 
  

			
	 Terms
	  	Section
	 90% Requirement
	  	1.1(d)
	 Acceptance Time
	  	1.8
	 affiliate
	  	9.10
	 Agreement
	  	Preamble
	 Applicable Date
	  	5.2(e)(i)
	 Bankruptcy and Equity Exception
	  	5.2(c)(i)
	 beneficial ownership
	  	9.10
	 business day
	  	1.1(e)
	 By-Laws
	  	2.2
	 Certificate
	  	4.1(a)
	 Change of Recommendation
	  	6.2
	 Charter
	  	2.1
	 Closing
	  	1.7
	 Closing Date
	  	1.6
	 Code
	  	4.2(g)
	 Common Stock
	  	Recitals
	 Company
	  	Preamble
	 Company Awards
	  	4.3(b)
	 Company Board
	  	Recitals
	 Company Board Recommendation
	  	Recitals
	 Company Disclosure Letter
	  	5.2
	 Company Option
	  	4.3(a)
	 Company Reports
	  	5.2(e)(i)
	 Company Requisite Vote
	  	5.2(c)(i)
	 Compensation Agreements and Benefit Plans
	  	4.3(b)
	 Compensation Committee
	  	4.3(c)
	 Confidentiality Agreement
	  	9.7
	 Constituent Corporations
	  	Preamble
	 Contract
	  	5.2(d)(ii)
	 Costs
	  	6.11(a)
	 Credit Suisse
	  	5.2(c)(iv)
	 Delaware Certificate of Merger
	  	1.6
	 Dissenting Stockholders
	  	4.1(a)
	 Effective Time
	  	1.6
	 Exchange Act
	  	1.1(a)
	 Exchange Fund
	  	4.2(a)
	 Excluded Share
	  	4.1(a)
	 Excluded Shares
	  	4.1(a)
	 Existing Independent Directors
	  	1.8
	 Expiration Date
	  	1.1(b)
	 GAAP
	  	5.2(e)(iii)
	 Governmental Entity
	  	5.1(C)
	 Indemnified Parties
	  	6.11(a)
	 Information Statement
	  	6.5
	 Insurance Amount
	  	6.11(c)
	 Law
	  	2.1
	 Lien
	  	5.2(b)(i)

  

 A-1 

			
	 Terms
	  	Section
	 Majority-of-the-Minority Condition
	  	1.1(c)
	 Material Adverse Effect
	  	5.1
	 Material Contracts
	  	5.2(d)(ii)
	 Merger
	  	Recitals
	 Merger Sub
	  	6.15
	 MUFG
	  	Recitals
	 NYSE
	  	1.8
	 Offer
	  	Recitals
	 Offer Documents
	  	1.2
	 Offer Price
	  	Recitals
	 Order
	  	7.1(b)
	 Outside Date
	  	1.1(d)
	 Parent
	  	Preamble
	 Parent Approvals
	  	5.3(c)(i)
	 Paying Agent
	  	4.2(a)
	 Per Share Merger Consideration
	  	4.1(a)
	 Person
	  	4.2(d)
	 Proxy Statement
	  	6.3
	 Public Shares
	  	Recitals
	 Regulation M-A
	  	1.2
	 Sarbanes-Oxley Act
	  	1.2
	 Schedule 13E-3
	  	1.4
	 Schedule 14D-9
	  	1.3(a)
	 SEC
	  	1.1(d)
	 Securities Laws
	  	1.2
	 Special Committee
	  	Recitals
	 Special Committee Recommendation
	  	Recitals
	 Stock Plans
	  	5.2(b)(i)
	 Stockholders Meeting
	  	6.4
	 Subsidiary
	  	5.2(a)
	 Surviving Corporation
	  	1.5
	 Tail Period
	  	6.13
	 Takeover Statute
	  	5.2(g)
	 Tax
	  	4.2(g)
	 Tax Return
	  	4.2(g)
	 Taxes
	  	4.2(g)
	 Transactions
	  	Recitals
	 Written Consent
	  	6.5

  

 A-2 

 EXHIBIT 1 
 CERTAIN CONDITIONS OF THE OFFER 
  
 (1) Notwithstanding any other provision of the Offer, Parent will not be obligated to accept for payment, and subject to the rules and regulations of the SEC, including Rule 14e-1(c) under the Exchange Act relating to
Parent’s obligation to pay for or return the tendered Public Shares promptly after termination or withdrawal of the Offer, will not be obligated to pay for, or may delay the acceptance or payment for, any Public Shares tendered pursuant to the
Offer if: 
  
 (i) the
Majority-of-the-Minority Condition has not been satisfied; 
  
 (ii) the Special Committee and/or the Company Board have withdrawn or modified in any manner adverse to Parent or Merger Sub the Special Committee Recommendation and/or the Company Board Recommendation, as the
case may be; 
  
 (iii) the representations
and warranties of the Company contained in the Agreement that (i) are not made as of a specific date are not true and correct as of the date of the Agreement and as of the Acceptance Time, and (ii) are made as of a specific date are not
true and correct as of such date, in each case, except where such inaccuracy would not reasonably be expected to have a Material Adverse Effect on the Company; provided that, for purposes of this Section (1)(ii) of Exhibit 1,
any qualifications as to materiality or Material Adverse Effect included in such representation and warranty (including, for avoidance of doubt, the qualifications as to Material Adverse Effect in Section 5.1 of this Agreement) shall be
disregarded for purposes of determining whether this condition has been satisfied; 
  
 (iv) the Company has failed to perform and comply with, in any material respect, its obligations, agreements and covenants under the
Agreement on or prior to the Acceptance Time and such breach has not been cured; 
  
 (v) the Company has failed to deliver to Parent a certificate signed by the Chief Executive Officer, Chief Operating Officer or the
Chief Financial Officer of the Company and certifying as to the satisfaction by the Company, of the conditions described in (ii) and (iii) above; 
  
 (vi) any Order has been enacted, issued, promulgated, enforced or entered by any Governmental Entity and is in effect and restrains,
enjoins or otherwise prohibits consummation of the Merger; 
  
 (vii) there shall be in effect (a) any general suspension of, or limitation on trading in securities on, the NYSE (other than a shortening of trading hours or any coordinated trading halt triggered solely as
a result of a specified increase or decrease in a market index), (b) a declaration of a banking moratorium or any suspension of payments in respect of banks in the United States or (c) any material limitation by any Governmental Entity on
the extension of credit by banks or other lending institutions that, in each case, shall prevent the payment of the Offer Price; or 
  
 (viii) since June 30, 2008, there has occurred any Material Adverse Effect. 
  

 E1-1Amended and Restated Employment Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 AGREEMENT by and between Unum Group, a Delaware
corporation having its principal executive offices in Chattanooga, Tennessee (the “Company”), and Thomas R. Watjen (the “Executive”) dated as of December 16, 2005. 
 WHEREAS, the Executive currently serves as a senior executive officer of the Company pursuant to this Agreement as first entered into effective
January 1, 2002; 
 WHEREAS, the Company recognizes the Executive’s substantial contribution to the growth and success of the
Company, desires to provide for the continued employment of the Executive and to make certain changes in the Executive’s employment arrangements with the Company, which the Board has determined will reinforce and encourage the continued
attention and dedication to the Company of the Executive as a member of the Company’s senior management in the best interests of the Company and its shareholders; 
 WHEREAS, the Executive is willing to continue to serve the Company on the terms and conditions set forth below; 
 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 
 1. Term of Agreement. The Company hereby agrees to continue to employ the
Executive, and the Executive hereby agrees to continue in the employ of the Company subject to the terms and conditions of this Agreement, for the period commencing on the date hereof (the “Effective Date”) and ending on the second
anniversary of the Effective Date (the “Agreement Term”). Beginning on the first anniversary of the Effective Date and on each successive anniversary thereof, the Agreement Term shall be automatically extended for successive
one-year terms unless either the Company or the Executive shall give (in accordance with Section 11(b)) the other party written notice (a “Notice of Non-Renewal”) at least sixty (60) days prior to the extension date of
intention not to extend this Agreement. For the avoidance of doubt, a Notice of Non-Renewal would need to be given at least one year and 60 days prior to the expiration of the then-current Agreement Term. Notwithstanding the foregoing, any Notice of
Non-Renewal given during the two-year period after a Change in Control (such two-year period being hereafter referred to as the “CIC Period”) shall be effective only at the expiration of the CIC Period; and further provided that if
the Company enters into an agreement for a transaction that would constitute a Change in Control if consummated (the date of such agreement being a “Potential Change in Control”) then any Notice of Non-Renewal provided after such
Potential Change in Control or within three (3) months prior to such Potential Change in Control shall not be effective until the expiration of the CIC Period or, if no Change in Control occurs within twelve (12) months of a Potential
Change in Control, the expiration of such twelve (12) month period. 

 2. Terms of Employment. 
 (a) Position and Duties. 
 (i) The Executive shall serve as President and Chief Executive Officer of the Company, with the appropriate authority, duties and responsibilities attendant to such positions. 
 (ii) Excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote substantially all
of his business attention and time to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use the Executive’s reasonable best efforts to perform such
responsibilities. It shall not be a violation of this Agreement for the Executive to (A) serve, with prior approval of the Board, on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this
Agreement. It is expressly understood and agreed that to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature
and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the Company. 
 (b) Compensation. 
 (i) Annual Base Salary. The Executive shall receive an annual base salary (“Annual Base Salary”) of $1,100,000, effective March 1, 2008. Any increase in Annual Base Salary shall not serve to limit or reduce any
other obligation to the Executive under this Agreement, and the term Annual Base Salary as utilized in this Agreement shall refer to Annual Base Salary as so increased. 
 (ii) Annual Bonus. The Executive shall be eligible to receive an annual bonus (“Annual Bonus”) with a target level
of not less than 150% of Annual Base Salary, or such greater amount as determined from time to time by the Human Capital Committee of the Company’s Board of Directors (the “Human Capital Committee”) (the “Target Bonus
Amount”). Each such Annual Bonus shall be paid no later than two and a half months after the end of the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual Bonus pursuant
to an arrangement established by the Company, if any, that meets the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). It is understood that “Annual Bonus” does not include
any special or supplemental bonuses that may be awarded from time to time by the Company. 
  

 -2- 

 (iii) Incentive Awards. The Executive shall be eligible for annual equity grants
and/or cash-based awards, as determined by the Human Capital Committee based upon competitive market analyses and such other factors it may deem appropriate, including the Executive’s current position in equity of the Company. 
 (iv) Other Employee Benefit Plans. Except as otherwise expressly provided herein, the Executive shall be entitled to participate in
all employee benefit, welfare and other plans, practices, policies and programs (including relocation programs and policies intended to reimburse the Executive in respect of state and local income taxes imposed by jurisdictions where the Executive
does not reside and attributable to compensation paid by the Company) (collectively, “Employee Benefit Plans”) applicable to senior executive officers of the Company. 
 (v) Retirement Benefit. The Executive shall be entitled to a minimum annual retirement benefit from the Company payable monthly
(the “Retirement Benefit”) determined as set forth in Attachment A. In addition, the Executive shall be entitled to post-retirement welfare benefit plan coverage pursuant to the terms of the applicable Company plans to the extent
such coverage is provided by the Company. In determining the Executive’s eligibility for and entitlements to post-retirement welfare benefits, the Executive shall receive full credit for all of his years of service with the Company for all
purposes; provided, however, that for purposes of the Company’s postretirement medical plans, the Executive shall receive credit for his years of service with the Company pursuant to the terms of such plans. 
 (vi) Expenses. During the Agreement Term, the Executive shall be entitled to receive reimbursement, as incurred, of all reasonable
expenses incurred by the Executive in the course of performing his duties and responsibilities under this Agreement, in accordance with the policies, practices and procedures of the Company to the extent available to other senior executive officers
with respect to travel, entertainment and other business expenses. In no event shall the payments by the Company under this Section 2(b)(vi) be made later than the end of the calendar year next following the calendar year in which such expenses
were incurred. The amount of such expenses that the Company is obligated to pay in any given calendar year shall not affect the expenses that the Company is obligated to pay in any other calendar year, and the Executive’s right to have the
Company pay such expenses may not be liquidated or exchanged for any other benefit. 
 (vii) Fringe Benefits. During
the Employment Period, the Executive shall be entitled to fringe benefits in accordance with the plans, practices, programs and policies of the Company available to senior executive officers of the Company and any additional benefits as may be
granted to the Executive by the Human Capital Committee. The Human Capital Committee of the Board will periodically review and monitor the fringe benefit program for senior executive officers, including the Executive. 
  

 -3- 

 3. Termination of Employment. 
 (a) Death, Retirement or Disability. The Executive’s employment shall terminate automatically upon the Executive’s death or Retirement
during the term of this Agreement. For purposes of this Agreement, “Retirement” means a voluntary termination of employment that qualifies as normal or early retirement under the Company’s then-current retirement plan, or if
there is no such retirement plan, “Retirement” shall mean voluntary separation from service, as defined pursuant to Internal Revenue Code Section 409A, after age 65 with ten years of service. As of the Effective Date, the
Company’s retirement plan defines early retirement as voluntary termination after age 55 with five years of service, and normal retirement as voluntary termination after age 65. If the Company determines in good faith that the Disability of the
Executive has occurred (pursuant to the definition of Disability set forth below), it may give to the Executive written notice in accordance with Section 11(b) of this Agreement of its intention to terminate the Executive’s employment. In
such event, the Executive’s employment with the Company shall terminate effective on the 90th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within the 90 days after such
receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement, “Disability” means the Executive is (1) unable to engage in any substantial gainful
activity by reason of 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 12 months, as determined by a physician selected by the
Company or its insurers and acceptable to the Executive, or (2) by reason of 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 12
months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company, whichever is more favorable to the Executive. 
 (b) Cause. The Company may terminate the Executive’s employment for Cause. For purposes of this Agreement, “Cause” shall
mean: 
 (i) the continued failure of the Executive to perform substantially the Executive’s duties hereunder (other than
any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board which specifically identifies the manner in which the Board believes that
the Executive has not substantially performed the Executive’s duties, or 
 (ii) the willful engaging by the Executive in
illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company, or 
 (iii) conviction of a
felony or a guilty or nolo contendere plea by the Executive with respect thereto. 
  

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 For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board (or any committee of the Board) or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith
and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote
of not less than two-thirds of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to
be heard before the Board) finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct described in subparagraph (i) or (ii) above, and specifying the particulars thereof in detail. 
 (c) Good Reason. The Executive’s employment may be terminated by the Executive for Good Reason. In order to invoke a termination for Good
Reason, the Executive shall provide written notice to the Company of one or more of the conditions described in clauses (i) through (vii) below within 90 days following the Executive’s actual knowledge of the initial existence of such
condition, specifying in reasonable detail the conditions constituting Good Reason, and the Company shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition. In the
event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, the Executive’s “separation from service” (within the meaning of Internal Revenue Code Section 409A) must occur, if
at all, within two years following such Cure Period in order for such termination as a result of such condition to constitute a termination for Good Reason. Furthermore, in the event that the party to whom notice is given by Mr. Watjen pursuant
to Section 3(c) asserts or wishes to assert that such notice is untimely, the party making such an assertion that the notice is untimely must show that he, she or it was actually prejudiced by the late notice. For purposes of this Agreement,
“Good Reason” shall mean the following events: 
 (i) the assignment to the Executive of any duties
materially inconsistent with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 2(a)(i) of this Agreement, or any other action by the
Company which results in a material diminution in such position, authority, duties or responsibilities or the budget over which the Executive retains authority, excluding for this purpose an isolated, insubstantial and inadvertent action not taken
in bad faith; 
 (ii) any material failure by the Company to comply with any of the provisions of Section 2(b) of this
Agreement (including, but not limited to, any reduction in Annual Base Salary), other than an isolated, insubstantial and inadvertent failure not occurring in bad faith; 
  

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 (iii) any purported termination by the Company of the Executive’s employment
otherwise than as expressly permitted by this Agreement; 
 (iv) any material failure by the Company to comply with and
satisfy Section 9(c) of this Agreement; 
 (v) any required relocation of the Executive to a location more than 35 miles
from the Executive’s location as of immediately prior to the Effective Date, other than if such relocation is to the Company’s headquarters; 
 (vi) any required relocation of the Executive (whether or not to the Company’s headquarters) of more than 35 miles from the Executive’s location as of immediately prior to the Effective Date, if such
required relocation occurs during the CIC Period; or 
 (vii) any material diminution in the authority, duties, or
responsibilities of those to whom the Executive is required to report, including without limitation any requirement that the Executive report to a corporate officer or employee instead of reporting directly to the Board of Directors of the Company.

 Notwithstanding the foregoing, (x) placing the Executive on a paid leave for up to 30 days, pending the determination of whether there is a basis to
terminate the Executive for Cause, shall not constitute a Good Reason event (but if the Executive is subsequently terminated for Cause, then the Executive shall repay any amounts paid by the Company to the Executive during such paid leave period);
and (y) a Notice of Termination for Good Reason given by the Executive shall constitute a notice of resignation of all elected positions the Executive may hold with the Company or any of its subsidiaries or affiliates (including, but not
limited to, all directorships), effective as of the Date of Termination (regardless of whether the Notice of Termination expressly states that the Executive is resigning from such elected positions). 
 (d) Change in Control. For purposes of this Agreement, “Change in Control” shall mean the occurrence of any one of the following
events: 
 (i) during any period of two consecutive years, individuals who, at the beginning of such period, constitute the
Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director and whose election or nomination for election was approved by a vote of at least
two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be
an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest (as described in Rule 14a-11 under the Securities Exchange Act of 1934
(the “Act”)) (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (as such term is defined in Section 3(a)(9) of the Act and as used
in Sections 13(d)(3) and 14(d)(2) of the Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election or Contest or Proxy Contest, shall be deemed an Incumbent Director;

  

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 (ii) any person is or becomes a “beneficial owner” (as defined in Rule
13d-3 under the Act), directly or indirectly, of securities of the Company representing 20% (30% with respect to deferred compensation subject to Internal Revenue Code Section 409A) or more of the combined voting power of the Company’s
then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this paragraph (ii) shall not be deemed to be a Change in Control of
the Company by virtue of any of the following acquisitions: (A) by the Company of any subsidiary, (B) by any employee benefit plan (or related trust) sponsored or maintained by the Company or any subsidiary, (C) by an underwriter
temporarily holding securities pursuant to an offering of such securities, (D) pursuant to a Non-Qualifying Transaction (as defined in paragraph (iii)) or (E) a transaction (other than one described in (iii) below) in which Company
Voting Securities are acquired from the Company, if a majority of the Incumbent Directors approve a resolution providing expressly that the acquisition pursuant to this clause (E) does not constitute a Change in Control of the Company under
this paragraph (ii); 
 (iii) the consummation of a merger, consolidation, statutory share exchange or similar form of
corporate transaction involving the Company or any of its subsidiaries that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a
“Reorganization”), or sale or other disposition of all or substantially all of the Company’s assets to an entity that is not an affiliate of the Company (a “Sale”), unless immediately following such
Reorganization or Sale: (A) more than 50% of the total voting power of (x) the corporation resulting from such Reorganization or the corporation which has acquired all or substantially all of the assets of the Company (in either case, the
“Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the
“Parent Corporation”), is represented by the Company Voting Securities that were outstanding immediately prior to such Reorganization or Sale (or, if applicable, is represented by shares into which such Company Voting Securities
were converted pursuant to such Reorganization or Sale), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the
Reorganization or Sale, (B) no person (other than any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation) is or becomes the beneficial owner, directly or indirectly, of 20%
(30% with respect to deferred compensation subject to Internal Revenue Code Section 409A) or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the
Reorganization or Sale were Incumbent Directors at the time of the Board’s approval of the execution of the 

  

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initial agreement providing for such Reorganization or Sale (any Reorganization or Sale which satisfies all of the criteria specified in (A), (B) and
(C) above shall be deemed to be a “Non-Qualifying Transaction”); or 
 (iv) the stockholders of the
Company approve a plan of complete liquidation or dissolution of the Company. 
 Notwithstanding the foregoing, a Change in Control of the Company shall not
be deemed to occur solely because any person acquires beneficial ownership of more than 20% (30% with respect to deferred compensation subject to Internal Revenue Code Section 409A) of the Company Voting Securities as a result of the
acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding; provided, that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting
Securities that increases the percentage of outstanding Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur. 
 (e) Notice of Termination. Any termination by the Company or by the Executive shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11(b) of this
Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and (iii) specifies the Date of Termination (as defined below). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. 
 (f) Date of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, the date of receipt of the Notice of Termination or any
later date specified therein within 90 days of such notice, (ii) if the Executive’s employment is terminated by reason of death or Disability, the date of death of the Executive or the Disability Effective Date, as the case may be,
(iii) if the Executive’s employment is terminated by the Company other than for Cause, death or Disability, 90 days after giving such notice, (iv) if the Executive’s employment is terminated by the Executive, 90 days after the
giving of such notice by the Executive (or such shorter period as may be specified in the Notice of Termination) provided that the Company may elect to place the Executive on paid leave for all or any part of such up-to 90-day period or accelerate
the Date of Termination, and (v) if the Executive’s employment is terminated pursuant to a Notice of Non-Renewal, the date specified in Section 1 as the end of the term in which such notice is provided or any other mutually agreed
upon date. The Company and the Executive shall take all steps necessary (including with regard to any post-termination services by the Executive) to ensure that any termination described in this Section 3 constitutes a “separation from
service” within the meaning of Internal Revenue Code Section 409A, and notwithstanding anything contained herein to the contrary, the date on which such separation from service takes place shall be the “Date of Termination.”

  

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 4. Obligations of the Company upon Termination. 
 (a) Good Reason; Other Than for Cause or Disability. If, the Company shall terminate the Executive’s employment during the Agreement Term
other than for Cause or Disability, or the Executive shall terminate employment for Good Reason, this Agreement shall terminate without further obligation to the Executive other than as follows: 
 (i) except as otherwise provided below, the Company shall pay to the Executive in a lump sum in cash within ten (10) days, subject to
the Executive’s execution and nonrevocation, within thirty (30) days after the Date of Termination, of a general release substantially in the form attached hereto as Attachment B: 
 A. the product of three (3) times the sum of (x) the average of the annual bonuses paid (or payable but deferred) to the
Executive for the three (3) completed calendar years prior to the year in which the Date of Termination occurs (the “Recent Annual Bonus”) and (y) the Executive’s Annual Base Salary (disregarding any decrease in
Annual Base Salary constituting Good Reason); and 
 B. the sum of (x) the Executive’s Annual Base Salary through
the Date of Termination to the extent not theretofore paid (disregarding any decrease in Annual Base Salary constituting Good Reason), (y) subject to the attainment of any performance goal designed to comply with the requirements of the
performance based compensation exception of Internal Revenue Code Section 162(m) (a “Section 162(m) Performance Goal”) that (i) has been established by the Human Capital Committee of the Board of Directors of the Company as of
the Date of Termination for any bonus plan in which the Executive is eligible to participate as of the Date of Termination and (ii) is applicable to the Executive, the product of (1) the Recent Annual Bonus multiplied by (2) a
fraction, the numerator of which is the number of days in the fiscal year in which the Date of Termination occurs through the Date of Termination and the denominator of which is 365 (such product, the “Pro Rata Bonus”), provided that, if
(A) a Section 162(m) Performance Goal has not been established as of the Date of Termination for a bonus plan in which the Executive is eligible to participate as of the Date of Termination, (B) such a performance goal has been
established for such a plan but is not intended to apply to the Executive or (C) the Date of Termination occurs on or following a Change of Control, the Executive shall be paid the Pro Rata Bonus, regardless of the attainment of any
Section 162(m) Performance Goal (the sum of the amounts described in clauses (x) and (y) shall be hereinafter referred to as the “Accrued Obligations”); 
  

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 C. an amount equal to the excess of (x) the actuarial present value of the
Retirement Benefit determined using the actuarial assumptions prescribed under the tax-qualified defined benefit plan under which the Executive was eligible for participation at the time of termination of employment, assuming the Executive had
accumulated three (3) additional years of age and three (3) additional years of employment, over (y) the actuarial present value of the Retirement Benefit determined using the actuarial assumptions prescribed under the tax-qualified
defined benefit plan under which the Executive was eligible for participation at the time of termination of employment; 
 Notwithstanding the
foregoing provisions of Section 4(a)(i), any payment of a Pro Rata Bonus to be made to the Executive under Section 4(a)(i)(B)(y) based upon the achievement of any Section 162(m) Performance Goal shall not be made until the Human
Capital Committee of the Board of Directors of the Company has certified the achievement of the Section 162(m) Performance Goal, which certification shall occur no later than two months following the end of the applicable performance period.

 (ii) for a period of three (3) years following the Executive’s Date of Termination (the “Welfare Benefits
Continuation Period”), the Company shall continue to provide to the Executive (and the Executive’s dependents, if applicable): (A) if the Date of Termination occurs during the CIC Period or during the twelve (12) month period
after a Potential Change in Control (the “Potential CIC Period”), the same level of health care and life benefits which would have been provided to the Executive (and his dependents, if applicable) in accordance with the benefit
plans described in Section 2(b)(iv) of this Agreement, upon substantially similar terms and conditions (including contributions required by the Executive for such benefits) as existed immediately prior to the Date of Termination (or, if more
favorable to the Executive, as such benefits and terms and conditions existed immediately prior to the Change in Control or Potential Change in Control); provided that, if the Executive cannot continue to participate in the Company plans providing
such benefits, the Company shall otherwise provide such benefits on the same after-tax basis as if continued participation had been permitted, or (B) if the Date of Termination occurs outside of the CIC Period or Potential CIC Period, benefits
substantially equivalent to those health and welfare benefits which would have been provided to the Executive (and his dependents, if applicable) in accordance with the benefit plans described in Section 2(b)(iv) of this Agreement if the
Executive’s employment had not been terminated; provided, however, that the health care benefits provided during the Welfare Benefits Continuation Period shall be provided in such a manner that such benefits (and the costs and premiums thereof)
are excluded from the Executive’s income for federal income tax purposes and, if the Company reasonably determines that providing continued coverage under one or more of its health care benefit plans contemplated herein could be taxable to
Executive, the Company shall provide such benefits at the level required hereby through the purchase of individual insurance coverage. Notwithstanding the foregoing, (x) if and to the extent required to prevent a violation of Internal Revenue
Code Section 409A, the Executive will pay the entire cost of such coverage for the 

  

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first six (6) months after the Date of Termination and the Company will reimburse Executive for the Company’s share of such costs on the six-month
anniversary of Executive’s “separation from service” as defined in Section 409A of the Code, and (y) if the Executive becomes reemployed with another employer and becomes eligible to receive group health and benefits from
such employer, the Company’s obligation to provide the health and welfare benefits described herein shall cease, except as otherwise provided by law. The Welfare Benefits Continuation Period shall run concurrently with any period for which
Executive is eligible to elect health coverage under COBRA. 
 (iii) if
the Date of Termination occurs during the CIC Period or Potential CIC Period, all of the Executive’s stock options, restricted stock awards and other equity based awards granted after July 1, 1999 (the “Post-Merger Equity
Awards”) shall vest in full as of the Date of Termination, and such options shall remain exercisable until the later of (x) the post-termination expiration date specified in the original option agreement, (y) December 31 of
the year in which the Date of Termination occurs, or (z) the 15th day of the third month following the Date of Termination, but not exceeding
the expiration of their initial term (the “Post-Termination Exercise Period”), and the Executive’s other equity awards (excluding the Post-Merger Equity Awards) will remain subject to the terms of their applicable agreements or
applicable Company policy and shall not be affected by the provisions of this Section 4(a); and 
 (iv) if the Date of
Termination occurs other than during the CIC Period or Potential CIC Period, the Executive’s Post-Merger Equity Awards shall vest as of the Date of Termination to the extent such awards would have vested if the Executive had remained
continuously employed by the Company through the expiration of the Agreement Term then existing immediately prior to the Date of Termination, and such options shall remain exercisable during the Post-Termination Exercise Period; and 
 (iv) to the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or
benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and its affiliated companies through the Date of Termination (such other
amounts and benefits shall be hereinafter referred to as the “Other Benefits”). 
 (b) Death, Retirement or
Disability. If the Executive’s employment is terminated by reason of the Executive’s death, Retirement or Disability, this Agreement shall terminate without further obligations to the Executive’s legal representatives or to the
Executive, as the case may be, under this Agreement, other than for payment of the Accrued Obligations, the timely payment or provision of Other Benefits, and the Retirement Benefit (including the other retirement benefits provided in
Section 2(b)(v), if applicable). In addition, the Post-Merger Equity Awards shall vest immediately and such stock options shall remain exercisable during the Post-Termination Exercise Period; and the Executive’s other equity awards
(excluding the Post-Merger Equity Awards) will remain subject to the terms of their applicable agreements or applicable Company policy 

  

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and shall not be affected by the provisions of this Section 4(b). Accrued Obligations shall be paid to the Executive, the Executive’s legal
representatives, as applicable, in a lump sum in cash within 30 days after the Date of Termination. If, however, the Executive’s employment is terminated by reason of death after a Notice of Termination given either by the Executive for Good
Reason or by the Company other than for Cause, the Company shall also pay to the Executive’s legal representatives in one lump sum the amounts specified in Sections 4(a)(i)(A) and (B). 
 (c) Cause; Other than for Good Reason; Non-Renewal by the Executive. If the Executive’s employment shall be terminated for Cause or the
Executive terminates his employment either without Good Reason or upon expiration of the Agreement Term by reason of Executive giving a Notice of Non-Renewal under Section 1, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (i) his Annual Base Salary through the Date of Termination to the extent theretofore unpaid, and (ii) the Other Benefits. 
 (d) Non-Renewal by the Company. If the Agreement Term expires pursuant to a Notice of Non-Renewal given by the Company under Section 1, and
if the Executive’s employment with the Company terminates as of the last day of the Agreement Term or during the twenty-four (24) months following such expiration of the Agreement Term (the “Non-Renewal Severance Period”)
under circumstances that would have been a termination without Cause or a resignation by the Executive for Good Reason if the Agreement Term had not expired, then the Executive shall be entitled to the payments and benefits described in
Section 4(a) of this Agreement; provided that any such payments and benefits will be conditioned on the Executive signing a general form of release within 30 days of the Date of Termination substantially in the form attached hereto as
Attachment B. For the avoidance of doubt, a termination of the Executive’s employment during the Non-Renewal Severance Period for any other reason, including, without limitation, by reason of death, Disability or Retirement, shall not entitle
him to benefits under this Section 4(d) or Section 4(a). 
 5. Non-exclusivity of Rights. Except as specifically provided,
nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of its affiliated companies and for which the Executive may qualify,
nor, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or any of its affiliated companies. Amounts which are vested benefits or which
the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement; provided that the Executive shall not be eligible for severance benefits under any other program or policy of the Company.

  

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 6. Full Settlement. Except as provided in this Section 6, the Company’s obligation to
make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement. 
 7. Certain Additional Payments by the Company. 
 (a) Anything in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment, benefit or distribution by the Company to or for the benefit of the
Executive (whether paid or payable, provided or to be provided, or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 7) (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up
Payment, but excluding any income taxes and penalties imposed pursuant to Internal Revenue Code Section 409A, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the
foregoing provisions of this Section 7(a), if it shall be determined that the Executive is entitled to a Gross-Up Payment, but that the Payments do not exceed 110% of the greatest amount that could be paid to the Executive such that the receipt
of Payments would not give rise to any Excise Tax (the “Reduced Amount”), then no Gross-Up Payment shall be made to the Executive and the amounts payable under this Agreement shall be reduced so that the value of all Payments, in
the aggregate, shall be reduced to the Reduced Amount. The reduction of payments hereunder, if applicable, shall be made by reducing the payments and benefits under the following sections in the following order: (i) Section 4(a)(i)(A),
(ii) Section 4(a)(i)(C), (iii) Section 4(a)(i)(B) and (iv) Section 4(a)(ii). For purposes of reducing the Payments to the Reduced Amount, only amounts payable under this Agreement (and no other Payments) shall be
reduced. If the reduction of the amount payable under this Agreement would not result in a reduction of the Payments to the Reduced Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 7(a). The
Company’s obligation to make Gross-Up Payments under this Section 7 shall not be conditioned upon the Executive’s termination of employment. 
 (b) Subject to the provisions of Section 7(c), all determinations required to be made under this Section 7, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment
and the assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized certified public accounting firm as may be designated by the Company prior to a Change 

  

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in Control and reasonably acceptable to the Executive (the “Accounting Firm”) which shall provide detailed supporting calculations both to
the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as
the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 7, shall be paid by the Company to the Executive within five
(5) days of the receipt of the Accounting Firm’s determination; provided that the Gross-Up payment shall in all events be paid no later than the end of the Executive’s taxable year next following the Executive’s taxable year in
which the Excise Tax (and any income or other related taxes or interest or penalties thereon) on a Payment are remitted to the Internal Revenue Service or any other applicable taxing authority or, in the case of amounts relating to a claim described
in Section 8(c) that does not result in the remittance of any federal, state, local and foreign income, excise, social security and other taxes, the calendar year in which the claim is finally settled or otherwise resolved. Any final
determination by the Accounting Firm shall be binding upon the Company and the Executive except in the case of manifest error. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to Section 7(c) and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 
 (c) The Executive shall
notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten
(10) business days after the Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing
prior to the expiration of such period that the Company desires to contest such claim, the Executive shall: 
 (i) give the
Company any information reasonably requested by the Company relating to such claim, 
 (ii) take such action in connection
with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 

 

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 (iii) cooperate with the Company in good faith in order effectively to contest such
claim, and 
 (iv) permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and
expenses. Without limitation on the foregoing provisions of this Section 7(c), the Company shall control all proceedings taken in connection with such contest and, at its sole discretion, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the applicable taxing authority in respect of such claim and may, at its sole discretion, either pay the tax claimed to the appropriate taxing authority on behalf of the Executive and direct the Executive
to sue for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided, however, that, if the Company directs the Executive to pay such claim and sue for a refund, the Company shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties) imposed with respect to such payment or with respect to any imputed income with respect to such payment; and further provided that any extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) If, after the receipt by the Executive of an amount paid by the Company on the Executive’s behalf pursuant to Section 7(c), the Executive
becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section 7(c), if applicable) promptly pay to the Company the amount of such refund
(together with any interest paid or credited thereon after taxes applicable thereto). If, after payment by the Company of an amount on the Executive’s behalf pursuant to Section 7(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such payment shall not be
required to be repaid and the amount of such payment shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
  

 -15- 

 8. Competition; Confidential Information. 
 (a) During the Agreement Term and for the eighteen month period following a termination of the Executive’s employment that entitles the Executive to
a lump sum payment pursuant to Section 4(a)(i) or Section 4(d) (the “Restricted Period”), the Executive shall not directly or indirectly, own, manage, operate, join, control, or participate in the ownership, management, operation
or control of, or be employed by or connected in any manner with, any competing business, whether for compensation or otherwise, without the prior written consent of the Company. Notwithstanding the preceding sentence, the Executive shall not be
prohibited from owning less than one (1%) percent of any publicly traded corporation, whether or not such corporation is deemed to be a competing business. For the purposes of this Agreement, a “competing business” shall be any
business which is a significant competitor of the Company or any of its subsidiaries, unless the Executive’s primary duties and responsibilities with respect to such business are not related to the management or operation of disability
insurance or complementary special risk products and services in any country where the Company or any of its subsidiaries is conducting business. This Section 8(a) shall cease to apply upon the occurrence of a Change in Control. 
 (b) During the Restricted Period, the Executive shall not, directly or indirectly, either for Executive’s own benefit or purpose or for the benefit
or purpose of any other person, employ, or offer to employ, call on, or actively interfere with the Company’s relationship with any Covered Employee, provided that this Section 8(b) shall not prohibit general solicitations in the form of
classified advertisements or the like in newspapers, on the internet, or in other media. This Section 8(b) shall cease to apply upon the occurrence of a Change in Control. For purposes of this Agreement, “Covered Employee”
means an employee of the Company who was a vice president or more senior officer of the Company as of the date of the Executive’s termination of employment with the Company. 
 (c) The Executive hereby acknowledges that, as an employee of the Company, he will be making use of, acquiring and adding to confidential information of
a special and unique nature and value relating to the Company and its strategic plan and financial operations. The Executive further recognizes and acknowledges that all confidential information is the exclusive property of the Company, is material
and confidential, and is critical to the successful conduct of the business of the Company. Accordingly, the Executive hereby covenants and agrees that he will use confidential information for the benefit of the Company only and shall not at any
time, directly or indirectly, during the Agreement Term and thereafter, divulge, reveal or communicate any confidential information to any person, firm, corporation or entity whatsoever, or use any confidential information for his own benefit or for
the benefit of others, other than as required by law or legal process. For purposes of the foregoing, confidential information shall not include information that becomes generally available to the public, other than as a result of disclosure by the
Executive. 
 (d) Any termination of the Executive’s employment or of this Agreement shall have no effect on the continuing operation of
this Section 8 or the Agreement Term. 
  

 -16- 

 (e) The Executive acknowledges and agrees that the Company will have no adequate remedy at law, and could
be irreparably harmed, if the Executive breaches or threatens to breach any of the provisions of Section 8(a), (b) or (c). The Executive agrees that the Company shall be entitled to equitable and/or injunctive relief to prevent any breach
or threatened breach of such provisions, and to specific performance of each of the terms thereof in addition to any other legal or equitable remedies that the Company may have. The Executive further agrees that he shall not, in any equity
proceeding relating to the enforcement of the terms of this Section 8, raise the defense that the Company has an adequate remedy at law. Without limiting the foregoing, if the Executive violates Section 8(a) or has knowledge of the conduct
that results in a violation of Section 8(b) (any such violation being a “Forfeiture Event”), then all of the Executive’s outstanding equity awards shall terminate and cease to be exercisable as of that date and the Executive
shall remit to the Company, in cash, an amount equal to the income recognized by the Executive on the exercise of any stock options during the 90-day period prior to such Forfeiture Event. In addition, if the Executive violates Section 8(a),
then, in lieu of any other monetary damages other than the forfeiture of option gains described in the immediately preceding sentence, the Executive shall remit to the Company, in cash, the lump sum payment made to him under Section 4(a)(i) or
Section 4(d) (excluding accrued Annual Base Salary earned through the Date of Termination). 
 (f) The terms and provisions of this
Section 8 are intended to be separate and divisible provisions and if, for any reason, any one or more of them is held to be invalid or unenforceable, neither the validity nor the enforceability of any other provision of this Agreement shall
thereby be affected. The parties hereto acknowledge that the potential restrictions on the Executive’s future employment imposed by this Section 8 are reasonable in both duration and geographic scope and in all other respects. If for any
reason any court of competent jurisdiction shall find any provisions of this Section 8 unreasonable in duration or geographic scope or otherwise, the Executive and the Company agree that the restrictions and prohibitions contained herein shall
be effective to the fullest extent allowed under applicable law in such jurisdiction. 
 (g) The parties acknowledge that this Agreement
would not have been entered into and the benefits described in Sections 2 or 4 would not have been promised in the absence of the Executive’s promises under this Section 8. 
 9. Successors. 
 (a) This Agreement is
personal to the Executive and without the prior written consent of the Company shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable
by the Executive’s legal representatives. 
 (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns. 
  

 -17- 

 (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it
if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise. 
 10. Disputes. 
 (a) Arbitration. The Executive and the Company shall attempt in good faith to resolve any controversy or claim between the Executive and the
Company arising out of or relating to or concerning this Agreement or any aspect of the Executive’s employment with the Company or the termination of that employment (together, an “Employment Matter”). Failing such agreement,
then prior to the occurrence of a Change in Control, and subject to the provisions of this Section 10, any such Employment Matter will be finally settled by arbitration in the County of New York administered by the American Arbitration
Association (the “AAA”) under its Commercial Arbitration Rules then in effect. However, the AAA’s Commercial Arbitration Rules will be modified in the following ways: (i) each arbitrator will agree to treat as confidential
evidence and other information presented to them, (ii) there will be no authority to award punitive damages (and the Executive and the Company agree not to request any such award), (iii) the proceeding shall be expedited as much as
practical consistent with the AAA’s Commercial Arbitration Rules, and (iv) a decision must be rendered within 10 business days of the parties’ closing statements or submission of post-hearing briefs. Notwithstanding the foregoing, any
controversy or claim between the Executive and the Company that relates to an Employment Matter and arises after the occurrence of a Change in Control or as to which an arbitration proceeding had not been initiated prior to a Change in Control shall
not be subject to mandatory arbitration under this Section 10, and the Executive or the Company may bring an action or special proceeding in a state or federal court of competent jurisdiction to resolve such controversy or claim. 
 (b) Injunctions and Enforcement of Arbitration Awards. The Executive or the Company may bring an action or special proceeding in a state or
federal court of competent jurisdiction to enforce any arbitration award under Section 10(a). Also, the Company may bring such an action or proceeding, in addition to its rights under Section 10(a) and whether or not an arbitration
proceeding has been or is ever initiated, to temporarily, preliminarily or permanently enforce any part of Section 8. The Executive agrees that (i) violating any part of Section 8(a), 8(b) or 8(c) would cause damage to the Company
that cannot be measured or repaired, (ii) the Company therefore is entitled to an injunction, restraining order or other equitable relief restraining any actual or threatened violation of Section 8(a), 8(b) or 8(c), (iii) no bond will
need to be posted for the Company to receive such an injunction, order or other relief and (iv) no proof will be required that monetary damages for violations of Section 8(a) or Section 8(c) would be difficult to calculate and that
remedies at law would be inadequate. 
  

 -18- 

 (c) Waiver of Jury Trial. To the extent permitted by law, the Executive and the Company waive any
and all rights to a jury trial with respect to any Employment Matter. 
 (d) Payment of Enforcement Costs. Subject to the last
sentence of this Section 10(d), the Company agrees to pay as incurred, (within 10 days following the Company’s receipt of an invoice from the Executive), at any time from the Effective Date through the Executive’s remaining lifetime
(or, if longer, through the 20th anniversary of the Effective Date) to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) pursued or
defended against in good faith by the Executive regarding the validity or enforceability of, or liability under, any provision of this Agreement or in seeking to obtain or enforce any right or benefit under this Agreement (including as a result of
any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code. In order to comply
with Section 409A of the Code, in no event shall the payments by the Company under this Section 10(d) be made later than the end of the calendar year next following the calendar year in which such fees and expenses were incurred, provided
that the Executive shall have submitted an invoice for such fees and expenses at least 10 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred. The amount of such legal fees and
expenses that the Company is obligated to pay in any given calendar year shall not affect the legal fees and expenses that the Company is obligated to pay in any other calendar year, and the Executive’s right to have the Company pay such legal
fees and expenses may not be liquidated or exchanged for any other benefit. With respect to any such contest occurring prior to the occurrence of a Change in Control, the Company’s obligations to the Executive under this Section 10(d)
shall not exceed $50,000; provided that such $50,000 limit shall not apply if the arbitrator or court, as the case may be, determines that the Company’s position in such dispute was frivolous or not in good faith. 
 11. Miscellaneous. 
 (a) This
Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or
effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives. 
 (b) All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to the Executive: 
 Thomas R. Watjen 
 P.O. Box 281 
 Lookout Mountain, TN 37350 
  

 -19- 

 If to the Company: 
 Unum Group 
 1 Fountain Square 
 Chattanooga, TN 37402 
 Attention: SVP, Human Resources 
 or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually
received by the addressee. 
 (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. 
 (d) The Company may withhold from any amounts payable under this Agreement such
Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 (e) The
Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the
Executive to terminate employment for Good Reason pursuant to Section 3(c)(i)-(v) of this Agreement, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
 (f) From and after the Effective Date this Agreement shall supersede any other employment, severance or change of control agreement between the parties
with respect to the subject matter hereof. 
 12. General Release. All payments under Section 4(a)(i) or 4(d) of this Agreement
will be conditioned on the Executive signing prior to the commencement of payments a general form of release substantially in the form attached hereto as Attachment B. 
 13. Continuing Obligations. Notwithstanding any expiration of the Agreement Term or anything in this Agreement to the contrary, this Agreement shall continue in effect until expiration of the Non-Renewal
Severance Period if the Agreement Term expires pursuant to a Notice of Non-Renewal given by the Company and until full satisfaction of all obligations of the Company hereunder. 
  

 -20- 

 IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written. 
  

			
		 	EXECUTIVE
		
		 	 /s/ Thomas R. Watjen

		 	Thomas R. Watjen
		
		 	UNUM GROUP
		
		 	 /s/ Eileen C. Farrar

		 	Name: Eileen C. Farrar
		 	Title: SVP, Corporate Human Resources
		
	Date: September 17, 2008	 	

  

 -21- 

 ATTACHMENT A 
 RETIREMENT BENEFIT 
 The Retirement Benefit shall be the benefit provided under the Unum Group Senior Executive
Retirement Plan (the “Plan”) as amended and restated effective January 1, 2005 with the following modifications: 
  

	 	•	 	 To the extent that any portion of the Plan incorporates by reference a provision of the Qualified Plan (as such term is defined under the Plan), including the
definition of actuarial equivalency in the Qualified Plan, such provision of the Qualified Plan as in effect from time to time shall be applied in determining the Retirement Benefit. In the event such provision includes any grandfathering,
protection of accrued benefits or any special transition provision, these modifications should also be applied. 

  

	 	•	 	 For purposes of calculating the Retirement Benefit, the Executive shall be considered to be fully vested in his benefit regardless of his age upon termination, and
for purposes of the computation of the lump-sum benefit payable in accordance with Section 4(a)(i)(C) of this Employment Agreement, it shall be assumed that his retirement date is the later of his age upon termination or the earliest retirement
date specified under the Plan. 

 For the avoidance of doubt the Retirement Benefit (including the lump-sum benefit payable in accordance
with Section 4(a)(i)(C)) of this Employment Agreement) shall be calculated according to the following methodology: 

 Thomas R. Watjen 
 Employment Agreement Retirement Benefit 
 Employee Data: 
 Date of Birth 
 Employment Date 
 Date of Termination 
 Age at Termination 
 Benefit Commencement Date (of Annual Retirement Benefit) 
 Age at Benefit
Commencement (not earlier than age 55) 
 Earnings (based on qualified plan pensionable earnings, but without regard to IRC 401(a)(17) limit on compensation,
plus amounts deferred under any nonqualified deferred compensation plan) 
 Five Year Final Average Earnings (FAE) 
 (based on qualified plan definition; current definition is highest five calendar year earnings during the last ten consecutive calendar years of employment) 

Service 
 Maximum service recognized is 20 years. 
 Retirement Benefit: 
  

			
	(1)	  	 Gross Annual Retirement Benefit
 (2.5% x Service (max
20 years) x FAE)

		
	(2)	  	 Early Retirement Reduction Factor at Benefit Commencement Age
 (5% reduction per year from age 60)

		
	(3)	  	 Gross Annual Retirement Benefit, Reduced for Early Retirement
 (1) x [100%-(2)]

  

 -2- 

 Two Components of Retirement Benefit: 
  

	(A)	Grandfathered Benefit: The amount deferred under the plan before January 1, 2005, as determined in accordance with regulations under Section 409A and the terms of
the plan as in effect on October 3, 2004; as reduced by the annual Social Security benefit at age 65 in accordance with the plan terms. 

  

	(B)	409A Benefit: Gross Annual Retirement Benefit as of participant’s retirement; reduced by the: 

  

	 	(i)	Grandfathered Benefit; 

  

	 	(ii)	Annual Pension Plan Benefit (Qualified); and 

  

	 	(iii)	Annual Supplemental Plan Benefit (Nonqualified). 

 Commencement of
Benefits: 
 To the extent required by Section 409A of the Internal Revenue Code, payment of the 409A Benefit shall commence no
sooner than the expiration of six months after the Date of Termination. In addition, payments under this Agreement may be delayed if timely payment is administratively impracticable and the impracticability was unforeseeable, if making a timely
payment would jeopardize the ability of Company to continue as a going concern, or if deduction of the payment is restricted by Code Section 162(m) and a reasonable person would not have anticipated that restriction at the time the legally
binding right to the payment arose. In each case, payment must be made as soon as the reason for the delay ceases to exist. 
  

 -3- 

 ATTACHMENT B 
 GENERAL RELEASE 
 For and in consideration of the payment, mutual promises, covenants, and
agreements made by and between you and Unum Group in the Agreement originally dated as of March 31, 2003, as subsequently amended, to which this General Release is attached as Attachment B, you unconditionally and generally release Unum Group
from each and every action, claim, right, liability or demand of any kind and nature, and from any claims which may be derived therefrom, that you had, have, or might hereafter claim to have against Unum Group or any employee, agent, successor or
predecessor of Unum Group at common law, public policy or otherwise, particularly including, but not by way of limitation, the following: all claims for personal injury, including negligent infliction of emotional distress; any claim arising under
the Age Discrimination in Employment Act of 1967, as amended; Title VII of the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; the Rehabilitation Act of 1973; the Fair Labor Standards Act; the National Labor Relations Act;
Sections 1981 through 1988 of Title 42 of the United States Code; the Immigration Reform and Control Act; the False Claims Act; the Occupational Safety and Health Act; the Worker Adjustment and Retraining Notification Act; the Employment Retirement
Income Security Act of 1974 (save for a benefit claim as provided below); any other federal, state or local law dealing with discrimination in employment on the basis of sex, race, color, national origin, religion, disability, age, sexual
orientation or any other grounds; any claim for unpaid compensation or unpaid bonus; any claim for wrongful discharge or breach of contract; and any other claims based on tort, whether based on common law, public policy or otherwise. It is your
intent to release all claims of every nature and kind whether known or unknown, accrued or unaccrued, which you may have against Unum Group as of the date of the execution of this General Release. 
 It is expressly understood and agreed by you that this General Release does not include your vested rights, if any, in the Unum Group Senior Executive
Retirement Plan, Unum Group Supplemental Pension Plan, Unum Group Pension Equity Plan or in the Unum Group 401(k) Retirement Plan, any other rights you may have to benefits under Unum Group’s welfare benefit plans, and rights you may have to
coverage under Unum Group’s professional liability insurance policies, including any directors and officers liability insurance, or any vested rights you may have under a stock option or long term incentive plan, or any rights to deferred
compensation. Such retirement plan, welfare plan, stock options or deferred compensation rights survive unaffected by this release, subject to the laws and plan documents governing those plans. 

 This General Release does not include any rights or claims against Unum Group or those associated with
Unum Group that you may have which arise after the date you sign the General Release, or any claim that you may have to unemployment compensation or workers’ compensation benefits, or any claim you may have to indemnification in accordance with
the provisions of the Unum Group Certificate of Incorporation or Bylaws. 
  

	
	EXECUTIVE
	
	 /s/ Thomas R. Watjen

	Thomas R. Watjen
	
	Date: September 17, 2008
	
	UNUM GROUP
	
	 /s/ Eileen C. Farrar

	Name: Eileen C. Farrar
	Title: SVP, Corporate Human Resources
	
	Date: September 17, 2008

  

 -2-

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