Document:

Exhibit 10.5

                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

This Agreement is made as of the Grant Date,  (the "Grant Date") as set forth on
the Certificate of Stock Option Grant available from the Smith Barney Stock Plan
Services website  (WWW.ASTSTOCKPLAN.COM) (the "Certificate") between UnionBanCal
Corporation (the "Company") and the Optionee.

                                   WITNESSETH:

WHEREAS,  the  Company  has  adopted  the  Year  2000  UnionBanCal   Corporation
Management  Stock  Plan (the  "Plan") as an  amendment  and  restatement  of the
predecessor  UnionBanCal  Corporation  Management  Stock  Plan  authorizing  the
issuance of options to purchase  the common  stock of the Company  ("Stock")  to
eligible  individuals  in connection  with the  performance  of services for the
Company and its  Subsidiaries (as defined in the Plan). The Plan is administered
by the  Executive  Compensation  and  Benefits  Committee  ("Committee")  of the
Company's  Board of Directors and is incorporated in this Agreement by reference
and made a part of it; and

WHEREAS,  the Company regards Optionee as a valuable contributor to the Company,
and has determined that it would be to the advantage and interest of the Company
and its  shareholders  to grant the options  provided  for in this  Agreement to
Optionee as an incentive for increased efforts during such service;

NOW,  THEREFORE,  in  consideration  of the foregoing  premises,  and the mutual
covenants  herein  contained,  the  parties to this  Agreement  hereby  agree as
follows:

1.   (a)  OPTION  GRANT.  The Company  hereby  grants to Optionee  the right and
          option to  purchase  from the  Company  on the  terms  and  conditions
          hereinafter set forth and in the applicable  Certificate and the Plan,
          all or any part of an aggregate number of Shares of Stock shown on the
          Certificate.  This option is not intended to satisfy the  requirements
          of Section 422 of the Internal  Revenue Code of 1986,  as amended (the
          "Code").

     (b)  OPTION PRICE.  The purchase  price of the Stock subject to this option
          shall be the  Option  Price per  share,  as shown on the  Certificate,
          which  price  is not less  than the per  share  Fair  Market  Value as
          defined  in the Plan of such  Stock  as of the  Grant  Date.  The term
          "Option Price" as used in this Agreement  refers to the purchase price
          of the Stock subject to option.

2.   OPTION  PERIOD.  This  option  will be  exercisable  only during the Option
     Period,  and during such Option Period,  the  exercisability  of the option
     shall be subject to the  limitations  of  paragraph  3 and the  vesting and
     exercise provisions of paragraph 4. The Option Period

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                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

     shall  commence on the Grant Date and except as provided  in  paragraph  3,
     shall end on the  Terminal  Date  which  shall be ten years  from the Grant
     Date.

3.   LIMITS ON OPTION  PERIOD.  The Option  Period  may end before the  Terminal
     Date, as follows:

     (a)  If Optionee ceases to be a Non-Employee Director of the Company or any
          of its Subsidiaries for any reason other than cause, retirement, death
          or disability (as each is defined in this section 3) during the Option
          Period,  the Option Period shall  terminate three (3) months after the
          date of such  cessation  of Board  service  or on the  Terminal  Date,
          whichever shall first occur, and Optionee may exercise the option only
          to the extent  exercisable under paragraph 4 on the date of Optionee's
          cessation of Board service.

     (b)  If Optionee  retires as  prescribed  by the Board of  Directors of the
          Company or a  Subsidiary,  the Option Period shall end three (3) years
          after such  retirement or on the Terminal Date,  whichever shall first
          occur,  and Optionee may  exercise the entire  unexercised  portion of
          this option (or any lesser amount).

     (c)  If Optionee  dies or becomes  disabled  (within the meaning of Section
          22(e)(3) of the Code) while a Non-Employee  Director of the Company or
          its  Subsidiary,  the  Option  Period  shall end one year  after  such
          termination of Board service or on the Terminal Date,  whichever shall
          first  occur,  and Optionee (or  Optionee's  executor,  administrator,
          trustee or the person or persons to whom Optionee's  rights under this
          option  shall  pass by  will or the  applicable  laws of  descent  and
          distribution)  may  exercise  the entire  unexercised  portion of this
          option (or any lesser amount).

     (d)  If  Optionee's   Board  service  with  the  Company  or  a  Subsidiary
          terminates for cause during the Option Period, the Option Period shall
          terminate on the date of such  termination  of Board service and shall
          not thereafter be exercisable to any extent.  Optionee's Board service
          shall be terminated "for cause" if it is because of:

               (i)    theft or  embezzlement  by  Optionee  from,  or common law
                      fraud  committed by Optionee  against,  the Company or its
                      Subsidiaries;

               (ii)   conviction  of  Optionee  of  a  felony   involving  moral
                      turpitude;

               (iii)  material  breach by Optionee of any  obligation  he or she
                      may  have  as  a   director   of  the   Company   (or  its
                      Subsidiaries)  with respect to

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                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

                      confidential  information,   unfair  competition,  or  the
                      ownership of intellectual property; or

               (iv)   material breach by Optionee of any other  obligation he or
                      she  may  have  as  a  director  of  the  Company  or  its
                      Subsidiaries.

4.   VESTING AND RIGHT TO EXERCISE  OPTIONS.  The shares  covered by this option
     shall be fully vested and  immediately  exercisable  as of the option Grant
     Date. Any portion of the option that is not exercised shall  accumulate and
     may be exercised at any time during the Option Period prior to the Terminal
     Date.  No partial  exercise  of this  option may be for less than 5 percent
     (5%) of the total number of shares then available under this option.  In no
     event shall the Company be required to issue fractional shares.

5.   METHOD OF EXERCISE. Optionee may exercise the option with respect to all or
     any part of the shares of Stock then subject to such exercise as follows:

     (a)  By giving the Company or its designated  representative written notice
          of such  exercise,  specifying  the number of such  shares as to which
          this option is  exercised.  Such  notice  shall be  accompanied  by an
          amount equal to the Option  Price of such shares,  in the form of: (i)
          cash; a certified  check,  bank draft,  postal or express  money order
          payable  to the order of the  Company  in lawful  money of the  United
          States; (ii) by delivery (on a form prescribed by the Committee) of an
          irrevocable direction to a securities broker approved by the Committee
          to sell  shares and  deliver  all or a portion of the  proceeds to the
          Company in payment for the Common Stock;  (iii) Common Stock;  or (iv)
          in any combination of the foregoing.

     (b)  In the  event  that the  shares  are  subject  to any  obligations  or
          restrictions,  the Optionee (and Optionee's  spouse,  if any) shall be
          required, as a condition precedent to acquiring Stock through exercise
          of  the  option,  to  execute  one  or  more  agreements  relating  to
          obligations in connection  with ownership of the Stock or restrictions
          on transfer of the Stock no less  restrictive than the obligations and
          restrictions  to which  the  other  shareholders  of the  Company  are
          subject at the time of such exercise.

     (c)  If  required  by  the  Company,   Optionee   shall  give  the  Company
          satisfactory assurance in writing, signed by the Optionee or his legal
          representative,  as the  case  may be,  that  such  shares  are  being
          purchased  for  investment  and not  with a view  to the  distribution
          thereof,  provided that such assurance shall be deemed inapplicable to
          (i) any sale of such shares by such Optionee  made in accordance  with
          the terms of a registration  statement  covering such sale,  which may
          hereafter

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                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

          be filed and become  effective  under the  Securities  Act of 1933, as
          amended,  and  with  respect  to which no stop  order  suspending  the
          effectiveness thereof has been issued, and (ii) any other sale of such
          shares  with  respect to which,  in the  opinion  of  counsel  for the
          Company, such assurance is not required to be given in order to comply
          with the provisions of the Securities Act of 1933, as amended.

          As soon  as  practicable  after  receipt  of the  notice  required  in
          paragraph  5(a)  and  satisfaction  of the  conditions  set  forth  in
          paragraphs 5(b) and 5(c), if applicable, the Company or its designated
          representative  shall, without transfer or issue tax and without other
          incidental  expense to Optionee,  deliver to Optionee at the office of
          the Company,  at 400 California  Street,  San  Francisco,  California,
          attention  of the  Secretary,  or such other  place as may be mutually
          acceptable to the Company and Optionee,  a certificate or certificates
          of such  shares of  Stock;  provided,  however,  that the time of such
          delivery  may be  postponed  by the  Company for such period as may be
          required for it with  reasonable  diligence to comply with  applicable
          registration  requirements  under  the  Securities  Act  of  1933,  as
          amended,  the  Securities  Exchange  Act  of  1934,  as  amended,  any
          applicable listing  requirements of any national securities  exchange,
          and requirements  under any other law or regulation  applicable to the
          issuance or transfer of such shares.

6.   CORPORATE  TRANSACTIONS.  If there should be any change in a class of Stock
     subject to this  option,  through  merger,  consolidation,  reorganization,
     recapitalization,  reincorporation,  stock split, stock dividend (in excess
     of 2 percent) or other  change in the  corporate  structure of the Company,
     the Board and the Committee shall make appropriate  adjustments in order to
     preserve,  but  not  to  increase,  the  benefit  to  Optionee,   including
     adjustments  in the number of shares of such Stock  subject to this  option
     and in the price per share.  Any adjustment made pursuant to this paragraph
     6 as a consequence  of a change in the  corporate  structure of the Company
     shall not  entitle  Optionee to acquire a number of shares of such Stock of
     the Company or shares of stock of any  successor  company  greater than the
     number of shares Optionee would receive if, prior to such change,  Optionee
     had  actually  held a number of shares of such Stock equal to the number of
     shares  subject  to  this  option.  If the  Company  is not  the  surviving
     corporation  in any  merger,  consolidation,  reorganization,  dissolution,
     liquidation,  or similar  event,  Optionee shall have the right to exercise
     this  option for a  reasonable  period of time prior to such event  without
     regard  to  the  vesting  provisions  of  paragraph  4,  and  every  option
     outstanding at the close of such event shall terminate. Notwithstanding the
     preceding sentence, if the agreement governing the merger, consolidation or
     other  transaction  provides  that  the  option  shall  be  assumed  by the
     surviving   corporation  or  exchanged  for  an  option  in  the  surviving
     corporation, the Optionee's right to exercise this option shall continue to
     be governed by the provisions of paragraphs 3 and 4.

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<PAGE>

                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

7.   LIMITATIONS ON TRANSFER.  In general,  this option shall, during Optionee's
     lifetime, be exercisable only by Optionee,  and neither this option nor any
     right  hereunder  shall be  transferable  by Optionee except as provided by
     law, or with the consent of the Company,  or by will or the laws of descent
     and distribution;  provided, however, that the option may be transferred to
     a trust established by the Optionee for the primary benefit of the Optionee
     and  Optionee's  spouse,  if married,  provided that the trust is revocable
     during the  lifetime of the  Optionee and that the trustee on behalf of the
     trust  agrees in  writing to be bound by the terms and  conditions  of this
     Agreement.  In the  event of any  attempt  by  Optionee  or the  Optionee's
     transferee to gift, transfer,  alienate,  assign, pledge,  hypothecate,  or
     otherwise  dispose  of this  option  or of any right  hereunder,  except as
     provided  for in  this  Agreement,  or in the  event  of  the  levy  of any
     attachment,  execution,  or similar  process  upon the  rights or  interest
     hereby conferred,  the Company at its election may terminate this option by
     notice to Optionee and this option shall thereupon become null and void.

8.   NO SHAREHOLDER RIGHTS. Neither Optionee nor any person entitled to exercise
     Optionee's rights in the event of his death shall have any of the rights of
     a  shareholder  with respect to the shares of Stock  subject to this option
     except to the  extent  the  certificates  for such  shares  shall have been
     issued upon the exercise of this option.

9.   NO EFFECT ON OTHER PLANS. In the year in which Optionee exercises an option
     or disposes of his or her  interest  in shares of Stock  acquired  under an
     option,  benefits  received under this Plan shall not affect  participation
     in, or the  computation  of benefits  under any other  benefit  plan of the
     Company or its Subsidiaries.

10.  NOTICE.  Any notice or other paper required to be given or sent pursuant to
     the terms of this Agreement shall be sufficiently given or served hereunder
     to any party when  transmitted  by  registered or certified  mail,  postage
     prepaid, addressed to the party to be served as follows:

     Company:    Executive Vice President and Director of Human Resources
                 UnionBanCal Corporation
                 400 California Street, 10th Floor
                 San Francisco, CA  94104

     Optionee:   At Optionee's address in the Company's files,  or to such other
                 address as Optionee may specify in writing to the Company.

      Plan Administrator:   Smith Barney Stock Plan Services
                            333 West 34th Street, 9th Floor

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                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

                            New York, NY  10001
                            WWW.ASTSTOCKPLAN.COM

     Any party may designate  another  address for receipt of notices so long as
     notice is given in accordance with this paragraph.

11.  COMMITTEE   DECISIONS   CONCLUSIVE.   All  decisions,   determinations  and
     interpretations  of the Committee upon any question  arising under the Plan
     or under this Agreement shall be conclusive and binding on all parties.

12.  MANDATORY  ARBITRATION.  Any  dispute  arising  out of or  relating to this
     Agreement  or the  Certificate,  including  its meaning or  interpretation,
     shall be resolved  solely by arbitration  before an arbitrator  selected in
     accordance  with the rules of the  American  Arbitration  Association.  The
     location for the arbitration shall be in San Francisco,  Los Angeles or San
     Diego as  selected  by the  Company in good  faith.  Judgment  on the award
     rendered  may be entered in any court  having  jurisdiction.  The party the
     arbitrator determines is the prevailing party shall be entitled to have the
     other party pay the expenses of the  prevailing  party,  and in this regard
     the arbitrator  shall have the power to award  recovery to such  prevailing
     party of all  costs and fees  (including  attorneys  fees and a  reasonable
     allocation for the costs of the Company's in-house counsel), administrative
     fees,  arbitrator's  fees  and  court  costs,  all  as  determined  by  the
     arbitrator.  Absent such award of the  arbitrator,  each party shall pay an
     equal share of the  arbitrator's  fees.  All statutes of  limitation  which
     would  otherwise be applicable  shall apply to any  arbitration  proceeding
     under this  paragraph.  The  provisions  of this  paragraph are intended by
     Optionee and the Company to be exclusive for all purposes and applicable to
     any and all disputes  arising out of or relating to this  Agreement and the
     Certificate.  The  arbitrator  who hears and decides any dispute shall have
     jurisdiction and authority only to award compensatory damages to make whole
     a person or entity sustaining  foreseeable  economic damages, and shall not
     have  jurisdiction  and  authority  to make any  other  award of any  type,
     including  without  limitation,  punitive damages,  unforeseeable  economic
     damages,  damages for pain,  suffering or emotional distress,  or any other
     kind or form of damages.  The  remedy,  if any,  awarded by the  arbitrator
     shall be the sole and exclusive  remedy for any dispute which is subject to
     arbitration under this paragraph.

13.  SUCCESSORS.  This  Agreement  shall be binding  upon and shall inure to the
     benefit  of the  parties  hereto  and their  respective  heirs,  executors,
     administrators,   successors  and  assigns.   Where  the  context  permits,
     "Optionee" as used in this Agreement shall include Optionee's transferee or
     executor,  administrator  or other  legal  representative  or the person or
     persons to whom  Optionee's  rights pass by will or the applicable  laws of
     descent and  distribution.  Nothing contained in the Plan or this Agreement
     shall be

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<PAGE>

                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

     interpreted  as imposing any  liability on the Company or the  Committee in
     favor of any  Optionee or  transferee  of options with respect to any loss,
     cost or expense which such  Optionee or transferee  may incur in connection
     with,  or arising out of any  transaction  involving  any  options  granted
     hereunder.

14.  INTEGRATION.  The terms of the Plan, this Agreement and the Certificate are
     intended by the Company and  Optionee to be the final  expression  of their
     contract with respect to the options and other amounts  received  hereunder
     and may not be  contradicted  by evidence  of any prior or  contemporaneous
     agreement.  The Company and  Optionee  further  intend that the Plan,  this
     Agreement and the Certificate  shall  constitute the complete and exclusive
     statement of their terms and that no extrinsic  evidence  whatsoever may be
     introduced  in any  arbitration,  judicial,  administrative  or other legal
     proceeding   involving  the  Plan,  this  Agreement  or  the   Certificate.
     Accordingly,  the Plan,  this  Agreement  and the  Certificate  contain the
     entire  understanding  between the parties  and  supersede  all prior oral,
     written and implied agreements,  understandings,  commitments and practices
     among the parties. In the event of any conflict among the provisions of the
     Plan document, this Agreement and the Certificate,  the Plan document shall
     prevail.  The  Company  and  Optionee  shall  have the right to amend  this
     Agreement in writing as they mutually agree.

15.  WAIVERS.  Any failure to enforce any terms or conditions of the Plan,  this
     Agreement or the Certificate by the Company or Optionee shall not be deemed
     a waiver of that term or condition,  nor shall any waiver or relinquishment
     of any  right or power  at any one  time or  times  be  deemed a waiver  or
     relinquishment of that right or power for all or any other times.

16.  SEVERABILITY OF PROVISIONS. If any provision of the Plan, this Agreement or
     the Certificate shall be held invalid or unenforceable,  such invalidity or
     unenforceability  shall not affect  any other  provision  thereof;  and the
     Plan, this Agreement and the Certificate shall be construed and enforced as
     if none of them included such provision.

17.  CALIFORNIA  LAW. The Plan,  this  Agreement  and the  Certificate  shall be
     construed and enforced  according to the laws of the State of California to
     the extent  not  preempted  by the  federal  laws of the  United  States of
     America.  In the event of any  arbitration  proceedings,  actions at law or
     suits in equity in relation to the Plan, this Agreement or the Certificate,
     the prevailing party in such proceeding,  action or suit shall receive from
     the losing  party its  attorneys'  fees and all other costs and expenses of
     such proceeding, action or suit.

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<PAGE>

                        YEAR 2000 UNIONBANCAL CORPORATION
                              MANAGEMENT STOCK PLAN
                      NON-QUALIFIED STOCK OPTION AGREEMENT
                             NON-EMPLOYEE DIRECTORS

By accepting the Option Grant on the Smith Barney Stock Plan  Services  website,
the  Participant  accepts  the  terms  of the  Management  Stock  Plan  and this
Non-Qualified  Stock Option Agreement.  The Participant also hereby acknowledges
receipt of a copy of the  Prospectus and the Year 2000  UnionBanCal  Corporation
Management Stock Plan, effective January 1, 2000.

                             UNIONBANCAL CORPORATION

                    By           /S/ PAUL FEARER
                      -----------------------------------------
                        Paul Fearer, Executive Vice President

                                       8Exhibit 10.6

                  UNIONBANCAL CORPORATION MANAGEMENT STOCK PLAN
                       TERMS AND CONDITIONS APPLICABLE TO
                     NON-EMPLOYEE DIRECTOR STOCK UNIT AWARDS

     The Executive  Compensation and Benefits Committee (the "Committee") of the
Board of Directors (the "Board") of  UnionBanCal  Corporation  (the  "Company"),
pursuant to its authority under the Year 2000 UnionBanCal Corporation Management
Stock  Plan (the  "Plan"),  has  approved  the  following  Terms and  Conditions
Applicable  to  Non-Employee  Director  Stock  Unit  Awards  (these  "Terms  and
Conditions"),  which  shall  apply to the award of Stock  Units to  Non-Employee
Directors in lieu of certain fees pursuant to deferral elections under the Plan.
Capitalized  terms used but not otherwise defined herein shall have the meanings
attributed thereto in the Plan, the provisions of which are incorporated  herein
by reference.

     1.   ELIGIBILITY.   All  Non-Employee   Directors  are  eligible  to  elect
irrevocably to defer all or a portion of their Retainer Fees or Meeting Fees (as
defined below), or both, and instead receive Stock Units pursuant to these Terms
and  Conditions  and the Plan. An eligible  Director who executes a Non-Employee
Director Stock Unit Award  Agreement or who has  previously  deferred fees under
the Plan and who continues to have an account  balance greater than zero will be
considered a  "Participant"  for purposes of these Terms and  Conditions and the
Plan.

     2.   DEFERRAL ELECTION.

          (a) ELECTIONS.  A Non-Employee Director may irrevocably elect to defer
a portion of his or her annual retainer for services to be rendered on the Board
of Directors of the Company and its Subsidiaries, including additional fees paid
to committee  chairpersons  (together,  "Retainer  Fees"),  during the following
calendar  year in Stock Units by making an election on or before the December 31
preceding such calendar year, in accordance with  procedures  established by the
Committee. A Non-Employee Director may also irrevocably elect to defer a portion
of his or her fees for  attendance  at meetings of the Board of Directors of the
Company and its Subsidiaries,  and committees thereof (together, "Meeting Fees")
during the  following  calendar  year in Stock Units by making an election on or
before the  December  31  preceding  such  calendar  year,  in  accordance  with
procedures   established  by  the  Committee.   The  Committee  may  permit  any
Non-Employee  Director who first becomes  eligible to participate in the Plan on
or after  the  first  day of any  calendar  year to make a Stock  Unit  deferral
election within thirty (30) days following his or her eligibility. The Committee
may also permit any  Non-Employee  Director who first becomes  eligible to defer
Retainer  and/or Meeting Fees in Stock Units upon the initial  adoption of these
Terms and Conditions by the Committee, to make a Stock Unit deferral election on
or before September 30, 2003, with respect to Retainer and/or Meeting Fees to be
earned after that date. Under no circumstances may a Non-Employee Director elect
to defer fees that have already been earned.

          (b) NON-EMPLOYEE  DIRECTOR STOCK UNIT AWARD  AGREEMENT.  All elections
shall be in writing in the form of the  Non-Employee  Director  Stock Unit Award
Agreement  attached

                                       -1-
<PAGE>

hereto  or such  other  form as  provided  by the  Committee  (the  "Stock  Unit
Agreement").  To be effective,  the Stock Unit Agreement must be received by the
Company's  Human  Resources  Department  on or before the deadline  specified in
Section  2(a)  above,  and must be signed and dated by the  Participant  and the
Company's  Director of Human  Resources or his or her  designee.  The Stock Unit
Agreement  shall specify the  percentage  of Retainer  Fees and/or  Meeting Fees
subject to deferral in 5% increments up to a maximum of 100%,  and shall specify
the time and method of  distribution of deferred  amounts  pursuant to Section 7
below. The Stock Unit Agreement shall  incorporate these Terms and Conditions by
reference.

     3.   STOCK UNITS; STOCK UNIT ACCOUNTS.

          (a) CREDITING TO STOCK UNIT ACCOUNTS. If a Participant elects to defer
a portion of his or her Retainer or Meeting Fees, the Company  shall,  as of the
last day of the month in which such fees otherwise would have been paid,  credit
to an account in the name of the Participant (the "Stock Unit Account") a number
of Stock Units  determined by dividing the  applicable  deferred  portion of the
Participant's  fees by the Fair Market  Value of a share of Common Stock on such
date. If the Participant has entered into more than one Stock Unit Agreement and
they  specify  different  times or methods of  distribution  pursuant to Section
7(b), the Company shall establish, within such Participant's Stock Unit Account,
such subaccounts as are necessary or convenient (the "Distribution Subaccounts")
to account  separately for deferrals,  including dividend  equivalents  credited
pursuant  to  Section  6 below,  which are  subject  to  different  distribution
elections.

          (b) STATEMENTS.  The Company shall submit to each Participant,  within
one hundred twenty (120) days after the close of each calendar year, a statement
in such form as the Committee or its delegate deems desirable  setting forth the
balance of each Participant's Stock Unit Account.

     4. VESTING OF STOCK UNITS.  Stock Units credited to a  Participant's  Stock
Unit Account with respect to deferred Retainer Fees and/or Meeting Fees shall be
fully vested at all times.  Units  representing  dividend  equivalents  credited
pursuant to Section 6 below shall also be fully vested at all times.

     5. LIMITATIONS ON RIGHTS ASSOCIATED WITH STOCK UNITS. A Participant's Stock
Unit  Account  shall be a memorandum  account on the books of the  Company.  The
Stock Units credited to a Participant's  Stock Unit Account shall be used solely
as a device for the  determination of the number of shares of Common Stock to be
distributed  eventually to the Participant under the Plan pursuant to Section 7.
The Stock Units shall not be treated as property or as a trust fund of any kind.
No Participant shall be entitled to any voting or other stockholder  rights with
respect to Stock Units granted or credited  under the Plan.  The number of Stock
Units  credited (and the Common Stock to which the  Participant is entitled upon
distribution  under the Plan) shall be subject to adjustment in accordance  with
Section 8 hereof and  Section  3(b) of the Plan.  The Stock Unit  Agreement  and
these Terms and  Conditions  shall create only a  contractual  obligation on the
part of the Company as to such  amounts and shall not be construed as creating a
trust. The Plan, in and of itself,  has no assets. A Participant shall have only
the  rights of a general  unsecured  creditor  of the  Company  with  respect to
amounts  credited  and  rights no

                                      -2-
<PAGE>

greater  than the right to receive the Common Stock (or  equivalent  value) as a
general unsecured creditor.

     6. DIVIDEND  EQUIVALENT  CREDITS TO STOCK UNIT ACCOUNT.  As of each date on
which dividends are paid with respect to the Common Stock, a Participant's Stock
Unit Account shall be credited with additional Stock Units in an amount equal to
(i) the amount of the  dividends  paid on that number of shares of Common  Stock
equal to the  aggregate  number of Stock Units  allocated  to the  Participant's
Stock Unit  Account as of that date  divided by (ii) the Fair Market  Value of a
share of Common Stock as of such date.

     7. DISTRIBUTION OF STOCK.

          (a) TIME AND METHOD OF DISTRIBUTION.  A Participant  shall be entitled
to receive a distribution of whole shares of Common Stock equal to the number of
Stock  Units  allocated  to his or her Stock Unit  Account,  including  dividend
equivalents credited pursuant to Section 6, in accordance with the Participant's
election made pursuant to the Participant's Stock Unit Agreement. Any fractional
share of Common Stock shall be distributed in cash.

          (b) TIME OF DISTRIBUTION.  Each  Participant  shall elect on the Stock
Unit Agreement the date as of which the  distribution  shall be made or commence
(the "Payment Date"), which shall be either:

               (i) the Participant's  termination of service for any reason as a
member of the Board of Directors of the Company and its Subsidiaries, or

               (ii) January 31 of any year  subsequent  to the year in which the
Retainer and/or Meeting Fees would have been paid absent the deferral  election,
provided that the deferral period must be at least 36 months.

          A  Participant  may not change  the  election  of a Payment  Date with
respect to any Retainer  and/or Meeting Fees deferred  under Section 2(a).  Such
election shall be irrevocable.

          (c) METHOD OF  DISTRIBUTION.  Each Stock Unit Agreement  shall specify
the  method  in  which  the  distribution  shall  be  made,  as  elected  by the
Participant, which shall be either:

               (i) in a  single  lump  sum  on  the  Payment  Date  (or as  soon
thereafter as administratively feasible),

               (ii) in four substantially equal annual installments,  commencing
on the Payment Date (or as soon thereafter as administratively feasible) or

               (iii) in ten substantially equal annual installments,  commencing
on the Payment Date (or as soon thereafter as administratively feasible).

          A Participant may not change the method of any  distribution  election
with respect to any Retainer  Fees and/or  Meeting Fees  deferred  under Section
2(a). Such election shall be irrevocable.

                                      -3-
<PAGE>

          (d) EFFECT OF DEATH, DISABILITY OR CHANGE IN CONTROL.  Notwithstanding
Sections  7(a),  (b) or (c) hereof,  if a Participant  dies or becomes  disabled
(within the meaning of Section  22(e)(3) of the Code), or if a Change in Control
(as defined below) occurs,  the  Participant's  Stock Unit Account to the extent
then credited shall be distributed as soon as administratively  practicable in a
lump sum.

          (e) CHANGE IN CONTROL.  For purposes of these Terms and Conditions,  a
"Change in  Control" of the Company  shall be deemed to have  occurred  upon the
happening of any of the  following  events:  consummation  of a  reorganization,
merger or consolidation or sale or other disposition of all or substantially all
of the assets or stock of the Company or the  acquisition of the assets or stock
of another entity ("Business Combination");  excluding, however, such a Business
Combination  pursuant to which a  Permitted  Holder (a) will  beneficially  own,
directly or indirectly,  30% of, respectively,  the outstanding shares of common
stock, and the combined voting power of the then outstanding  voting  securities
entitled to vote generally in the election of directors (together,  the "Company
Stock"),  as the case may be, of the  corporation  resulting  from such Business
Combination (including,  without limitation,  a corporation which as a result of
such transaction  owns the Company or all or substantially  all of the Company's
assets  either  directly  or  through  one or  more  subsidiaries),  and  (b) no
individual,  entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the  Securities  Exchange Act of 1934, as amended,  has a greater  beneficial
interest,  directly or indirectly, in the Company Stock than a Permitted Holder.
For purposes of this definition,  "Permitted  Holder" shall mean (i) The Bank of
Tokyo-Mitsubishi,  Ltd.  or any  successor  thereto  ("BTM"),  (ii) an  employee
benefit plan of BTM or (iii) a corporation controlled by BTM.

          (f) FORM OF  DISTRIBUTION.  Stock Units  credited  to a  Participant's
Stock Unit Account shall be distributed in an equivalent  whole number of shares
of the  Company's  Common  Stock.  Fractions  of shares shall be paid in cash in
connection with any distribution.

     8.  ADJUSTMENTS IN CASE OF CORPORATE  TRANSACTIONS.  If there should be any
change  in  the   Company's   Common  Stock   through   merger,   consolidation,
reorganization,  recapitalization,  reincorporation, stock split, stock dividend
(in excess of 2  percent)  or other  change in the  corporate  structure  of the
Company, the Board and the Committee shall make appropriate adjustments in order
to  preserve  but not to  duplicate  or  otherwise  increase  the benefit to the
Participant (taking into account any dividend  equivalents  credited pursuant to
Section 6),  including  adjustments  in the number of Stock Units  credited to a
Participant's Stock Unit Account. Any adjustment made pursuant to this Section 8
as a consequence of a change in the corporate structure of the Company shall not
entitle  the  Participant  to receive a number of shares of Common  Stock of the
Company or shares of stock of any successor  company  greater than the number of
shares the Participant  would receive if, prior to such change,  the Participant
had  actually  held a number of shares of Common  Stock  equal to the  number of
Stock Units then credited to his or her Stock Unit Account.

     9.  COMPANY'S  RIGHT TO WITHHOLD.  The Company shall satisfy any income tax
withholding  obligation arising upon distribution of a Participant's  Stock Unit
Account by reducing the number of shares of Common Stock  otherwise  deliverable
to the  Participant.  The  appropriate  number of shares required to satisfy any
such tax withholding  obligation in the case of Stock Units will be based on the
Fair Market  Value of a share of Common  Stock on the

                                      -4-
<PAGE>

business day prior to the date of distribution.  If the Company, for any reason,
cannot  satisfy the  withholding  obligation  in  accordance  with the preceding
sentence, the Participant shall pay or provide for payment in cash of the amount
of any taxes which the Company may be required to withhold  with  respect to the
benefits hereunder.

     10. LIMITATION ON ELIGIBLE  DIRECTORS.  Participation in the Plan shall not
give any person the right to  continue  to serve as a member of the Board or any
rights or interests other than as herein provided.

     11. BENEFICIARIES.

          (a)  BENEFICIARY  DESIGNATION.  Upon forms  provided by and subject to
conditions  imposed by the Committee,  each Participant may designate in writing
the  Beneficiary  or  Beneficiaries  (as  defined  in Section  11(b))  whom such
Participant  desires to receive any amounts  payable under the Plan after his or
her death. A Beneficiary designation must be signed and dated by the Participant
and  delivered  to the  Committee  to  become  effective.  The  Company  and the
Committee  may  rely  on  the  Participant's  designation  of a  Beneficiary  or
Beneficiaries  last filed in accordance  with these Terms and Conditions and the
Plan.

          (b)  DEFINITION  OF  BENEFICIARY.  A  Participant's  "Beneficiary"  or
"Beneficiaries"  shall be the person(s)  (including the trust(s))  designated in
writing by the  Participant to receive his or her benefits under the Plan if the
Participant dies before receiving all of his or her benefits.  In the absence of
a valid or effective Beneficiary designation, the Participant's surviving spouse
shall be the  Beneficiary  or if there is  none,  the  Beneficiary  shall be the
Participant's estate.

     12.  MANDATORY  ARBITRATION.  Any  dispute  arising out of or relating to a
Stock Unit Agreement, including its meaning or interpretation, shall be resolved
solely by arbitration before an arbitrator selected in accordance with the rules
of the American Arbitration Association.  The location for the arbitration shall
be in San Francisco,  Los Angeles,  San Diego,  Portland,  Seattle, and New York
City, as selected by Company in good faith.  Judgment on the award  rendered may
be entered in any court having jurisdiction. The party the arbitrator determines
is the  prevailing  party  shall  be  entitled  to have the  other  part pay the
expenses of the prevailing  party,  and in this regard the arbitrator shall have
the  power to award  recovery  to such  prevailing  party of all  costs and fees
(including  attorneys  fees and a  reasonable  allocation  for the  costs of the
Company's in-house counsel),  administrative  fees,  arbitrator's fees and court
costs, all as determined by the arbitrator. Absent such award of the arbitrator,
each party shall pay an equal share of the  arbitrator's  fees.  All statutes of
limitation  which would  otherwise be applicable  shall apply to any arbitration
proceeding  under this paragraph.  The provisions of this paragraph are intended
to be exclusive for all purposes and applicable to any and all disputes  arising
out of or  relating  to a Stock Unit  Agreement.  The  arbitrator  who hears and
decides  any  dispute  shall  have  jurisdiction  and  authority  only to  award
compensatory  damages  to make whole a person or entity  sustaining  foreseeable
economic  damages,  and, shall not have  jurisdiction  and authority to make any
other  award  of any  type,  including  without  limitation,  punitive  damages,
unforeseeable  economic  damages,  damages  for  pain,  suffering  or  emotional
distress,  or any other kind or form of damages.  The remedy, if any, awarded by
the arbitrator  shall be the sole and exclusive  remedy for any dispute which is
subject to arbitration under this paragraph.

                                      -5-
<PAGE>

     13. OTHER PROVISIONS.

          (a)  ADMINISTRATION.  The Committee shall have the sole authority,  in
its  discretion,  to adopt,  amend and rescind such rules and  regulations as it
deems advisable in the  administration of the Stock Unit awards, to construe and
interpret these Terms and Conditions, the rules and regulations,  and Stock Unit
Agreements,  and to make  all  other  determinations  and  interpretations  with
respect  to  the  Stock  Unit  awards.   All   decisions,   determinations   and
interpretations  of the Committee shall be final,  binding and conclusive on all
persons. Committee members who are Participants shall abstain from voting on any
Plan  matters  that would  cause them to be in  constructive  receipt of amounts
credited  to  their  Stock  Unit  Accounts.   The  Committee  may  delegate  its
responsibilities as it sees fit.

          (b) NOTICES.  Any notices to be given under these Terms and Conditions
or a Stock Unit  Agreement  shall be in writing and  addressed to the Company at
its principal  executive office, to the attention of the head of Company's Human
Resources  Corporate  Benefits  Department and to the Participant at the address
given beneath the Participant's  signature on the Stock Unit Agreement or to his
or her last address of record in the records of the Company.

          (c)  AMENDMENTS.  The  Committee  shall have the right to amend  these
Terms and Conditions in whole or in part from time to time;  provided,  however,
that no such amendment  shall adversely  affect the amount of outstanding  Stock
Units credited to a Participant's Stock Unit Account prior to the effective date
of such amendment without the Participant's written consent.

          (d) GOVERNING LAW; ATTORNEYS' FEES; SEVERABILITY.  The validity of the
Plan,  these Terms and  Conditions,  the Stock Unit Agreement and any provisions
thereof,  shall be construed,  administered,  and governed in all respects under
and by the laws of the State of  California  to the extent not  preempted by the
federal laws of the United  States of America.  In the event of any  arbitration
proceedings,  actions at law or suits in equity in relation  to the Plan,  these
Terms and Conditions or the Stock Unit Agreement,  the prevailing  party in such
proceeding,  action or suit shall  receive from the losing party its  attorneys'
fees and all other costs and expenses of such proceeding, action or suit. If any
provisions of the Plan,  these Terms and  Conditions or the Stock Unit Agreement
shall  be  held  by  a  court  of  competent   jurisdiction  to  be  invalid  or
unenforceable,  the  remaining  provisions  thereof  shall  continue to be fully
effective.

          (e) COMPLIANCE WITH LAWS. The Plan,  these Terms and  Conditions,  the
Stock Unit Agreement and the offer,  issuance,  and delivery of shares of Common
Stock  through the deferral of  compensation  under the Plan and these Terms and
Conditions are subject to compliance with all applicable federal and state laws,
rules,  and  regulations  (including  but  not  limited  to  state  and  federal
securities law) and to such approvals by any listing,  agency,  or regulatory or
governmental  authority  as may, in the opinion of counsel for the  Company,  be
necessary or advisable in connection  therewith.  Any securities delivered under
the Plan and these Terms and Conditions  shall be subject to such  restrictions,
and the person  acquiring such  securities  shall,  if requested by the Company,
provide such  assurances and  representations  to the Company as the Company may
deem necessary or desirable to assure compliance with all applicable  securities
laws and other legal requirements.

                                      -6-
<PAGE>

          (f)  RESTRICTIONS  ON  TRANSFER.  Neither  the  Stock  Units,  nor any
interest  therein,  nor amount  payable or Common Stock  deliverable  in respect
thereof, may be sold, assigned, transferred,  pledged, or otherwise disposed of,
alienated,  or encumbered,  either  voluntarily or involuntarily,  other than by
will or the laws of descent  and  distribution,  and in the event  thereof,  the
Committee at its election may terminate a Stock Unit Award.  This restriction on
transfer  shall  not be deemed  to  prohibit,  to the  extent  permitted  by the
Committee,  transfers to a trust or otherwise  without  consideration for estate
and  financial  planning  purposes.  Common Stock issued upon payment of a Stock
Unit  Account  shall be  subject  to such  restrictions  on  transfer  as may be
necessary  or  advisable,  in the opinion of legal  counsel to the  Company,  to
assure compliance with applicable securities laws.

          (g) SUCCESSORS.  These Terms and Conditions  shall be binding upon and
shall  inure to the benefit of the parties  hereto and their  respective  heirs,
executors,  administrators,  successors and assigns.  Where the context permits,
"Participant" as used in these Terms and Conditions shall include  Participant's
executor, administrator,  trustee or other legal representative or the person or
persons to whom  Participant's  rights  pass by will or the  applicable  laws of
descent  and  distribution.  Nothing  contained  in the  Plan,  these  Terms and
Conditions  or the Stock Unit  Agreement  shall be  interpreted  as imposing any
liability  on the  Company  or the  Committee  in  favor of any  Participant  or
transferee  of Stock Units with respect to any loss,  cost or expense which such
Participant  or transferee  may incur in connection  with, or arising out of any
transaction involving any Stock Units granted hereunder.

          (h) INTEGRATION.  By signing the Stock Unit Agreement, the Participant
agrees that the terms of the Plan, these Terms and Conditions and the Stock Unit
Agreement are intended by the Company and Participant to be the final expression
of their  contract  with respect to the Stock Units and other  amounts  received
hereunder   and  may  not  be   contradicted   by   evidence  of  any  prior  or
contemporaneous  agreement,  and shall  constitute  the complete  and  exclusive
statement  of their  terms,  and that no extrinsic  evidence  whatsoever  may be
introduced  in  any  arbitration,   judicial,   administrative  or  other  legal
proceeding  involving  the Plan,  these Terms and  Conditions  or the Stock Unit
Agreement.  Accordingly, the Plan, these Terms and Conditions and the Stock Unit
Agreement contain the entire understanding between the parties and supersede all
prior oral,  written and implied  agreements,  understandings,  commitments  and
practices  among the parties.  In the event of any conflict among the provisions
of the Plan,  these Terms and Conditions and the Stock Unit Agreement,  the Plan
shall  prevail.  The Company and  Participant  shall have the right to amend the
Stock Unit Agreement in writing as they mutually agree.

          (i) WAIVERS.  Any failure to enforce any provisions of the Plan, these
Terms and  Conditions or the Stock Unit  Agreement by the Company or Participant
shall  not be  deemed a waiver  of that  provision,  nor  shall  any  waiver  or
relinquishment of any right or power at any one time or times be deemed a waiver
or relinquishment of that right or power for all or any other times.

                                      -7-

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