Document:

Exhibit 10.4

 

UNION BANK OF

CALIFORNIA, N.A.

 

 

SUPPLEMENTAL EXECUTIVE

RETIREMENT PLAN

 

 

As Amended and Restated Effective

September 18, 2008

 

 

ESTABLISHMENT AND

PURPOSE

 

Effective January 1,
1988, Union Bank established the Union Bank Supplemental Executive Retirement
Plan to provide certain executives with retirement benefits in excess of those
benefits provided under the Company’s Retirement Plan.

 

Effective April 1,
1996, the Union Bank and The Bank of California, National Association merged. The
combined corporate entity is named the Union Bank of California, National
Association (the “Bank”).

 

Effective January 1,
1997, the Bank amended and restated the Union Bank Supplemental Executive
Retirement Plan (the “Plan”) in its entirety.

 

Using an earnings
definition based on base pay but excluding bonuses, incentive payments and
other forms of compensation, the Plan supplements benefits under the Retirement
Plan to the extent such benefits are reduced due to the limits of Sections
401(a)(17) and 415 of the Code. The Plan is intended to be an unfunded plan
maintained primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees, as described in
Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.

 

The Bank hereby further
amends and restates the Plan in its entirety effective September 18, 2008.

 

ARTICLE 1

DEFINITIONS

 

Except as follows, all
capitalized terms used in this Plan have the same meaning as in the Retirement
Plan:

 

1.1                                 “Bank” means Union Bank of California,
National Association, a national banking association organized under the laws
of the United States, or any successor in interest. Prior to April 1, 1996
the Bank was known as Union Bank.

 

1.2                                 “Board” means the Board of Directors of
the Bank.

 

1.3                                 “Company” means the Bank and any other
corporation, trade or business which is authorized to participate in the Plan
by the Board and which constitutes a controlled group or an affiliated service
group of which the Bank is a member, or are under common control with the Bank,
within the meaning of Code Section 414(b), (c), (m), or (o), but only for
the period during which the relationship exists.

 

1.3A                       “Domestic
Partner” means Domestic Partner, as defined in the Union Bank of California
Retirement Plan.

 

1.4                                 “Participant” means an executive of the
Company who participates in the Plan pursuant to Article 2.

 

2

 

1.5                                 “Plan” means this Union Bank of
California N.A. Supplemental Executive Retirement Plan.

 

1.6                                 “Plan Earnings” means, notwithstanding
the Retirement Plan’s definition of Earnings, for purposes of determining a
Participant’s accrued benefit under the Plan, a Participant’s regular base
salary or wages received for services rendered to the Company, including base
salary deferred under the Company’s Senior Management Deferred Compensation
Plan, and amounts deferred pursuant to Code Section 125, 401(k),
402(e)(3), 402(h) or 403(b) which if paid, would have been Plan
Earnings. Plan Earnings do not include commissions, overtime, bonuses, premium
payments, incentive payments, restricted stock awards, bargain element on stock
options (which, for purposes of clarification, includes payment of the bargain
element upon the cancellation of stock options), special amounts or payments,
indemnities, or Separation Pay Plan payments.

 

1.7                                 “Retirement Plan” means the Union Bank
of California Retirement Plan. References in the Plan to sections of the Retirement Plan shall be
deemed to refer to any sections adopted as successors to those sections
pursuant to an amendment of the Retirement Plan.

 

1.8                                 “Vested Termination Benefit” means a
vested benefit payable under Section 3.9 of the Retirement Plan.

 

ARTICLE 2

PARTICIPATION

 

The Participants in the
Plan shall be those Company employees who are selected for Plan participation
by the Bank and (1) who completed a benefit agreement with the Company on
or after January 1, 1988 and before January 1, 1995, or (2) those
Company employees who are Senior Vice Presidents or who have a more senior job
title.

 

ARTICLE 3

RETIREMENT AND DISABILITY BENEFITS

 

A Participant shall be
entitled to a benefit under this Plan only if he or she is vested in and is
eligible for: (1) a vested termination benefit under Section 3.9 of
the Retirement Plan, (2) a Normal Retirement Benefit under Section 3.1
of the Retirement Plan, (3) an Early Retirement Benefit under Sections 3.2
to 3.7 or 3.9A of the Retirement Plan, or (4) a Deferred Retirement
Benefit under Section 3.10 of the Retirement Plan. No benefits shall be
paid under this Plan with respect to a Participant who is not entitled to a
benefit under the sections of the Retirement Plan referenced in the preceding
sentence; in particular, no benefits shall be paid under this Plan with respect
to a Participant who is only entitled to benefits under the Retirement Plan
pursuant to Article V (Death Benefits), or Article VI (Disability
Benefits), except as set forth in Sections 4.5 or 4.7 of this Plan.

 

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ARTICLE 4

BENEFIT CALCULATION AND DISTRIBUTION

 

4.1                                 Normal Retirement. A Participant who is eligible for a
Normal Retirement Benefit under the Retirement Plan shall receive a normal
retirement benefit hereunder equal to the excess of (1) the Participant’s
Normal Retirement Benefit under the Retirement Plan, calculated using Plan
Earnings as defined in Section 1.6 but without regard to the limits of
Code Sections 401(a)(17) and 415, over (2) the Participant’s Normal
Retirement Benefit under the Retirement Plan. A normal retirement benefit
hereunder shall be calculated as of the date that the Participant’s employment
terminates and shall commence on the first day of the next calendar month,
without regard to the date that benefits commence under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her employment terminates, then the normal retirement
benefit hereunder shall be paid to the Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner as the
joint annuitant. If the Participant is unmarried and, effective May 1,
2006, does not have a Domestic Partner when his or her employment terminates,
then the normal retirement benefit hereunder shall be paid to the Participant
in the form of a single life annuity.

 

4.2                                 Early Retirement. A Participant who is eligible for an
Early Retirement Benefit under the Retirement Plan shall receive an early
retirement benefit hereunder equal to the excess of (1) the Participant’s
Early Retirement Benefit under the Retirement Plan, calculated using Plan Earnings
as defined in Section 1.6 but without regard to the limits of Code
Sections 401(a)(17) and 415, over (2) the Participant’s Early Retirement
Benefit under the Retirement Plan. An early retirement benefit hereunder shall
be calculated as of the date that the Participant’s employment terminates and
shall commence on the first day of the next calendar month, even if the
Participant elects a later Early Retirement Date under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her employment terminates, then the early retirement
benefit hereunder shall be paid to the Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner
designated as the joint annuitant. If the Participant is unmarried and,
effective May 1, 2006, does not have a Domestic Partner when his or her
employment terminates, then the early retirement benefit hereunder shall be
paid to the Participant in the form of a single life annuity.

 

4.3                                 Deferred Retirement. A Participant who is eligible for a
Deferred Retirement Benefit under the Retirement Plan shall receive a deferred
retirement benefit hereunder equal to the excess of (1) the Participant’s
Deferred Retirement Benefit under the Retirement Plan, calculated using Plan Earnings
as defined in Section 1.6 but without regard to the limits of Code
Sections 401(a)(17) and 415, over (2) the Participant’s Deferred
Retirement Benefit under the Retirement Plan. A deferred retirement benefit
hereunder shall be calculated as of the date that the Participant’s employment
terminates and shall commence on the first day of the next calendar month, without
regard to the date that benefits commence under the Retirement Plan. If the
Participant is married or, effective May 1, 2006, has a Domestic Partner,
when his or her employment terminates, then the deferred retirement benefit
hereunder shall be paid to the Participant in the form of a 50% joint and
survivor annuity with the Participant’s spouse or Domestic Partner as the joint
annuitant. If the Participant is unmarried and, effective May 1, 2006,
does not have a Domestic Partner, when his or her employment terminates, then
the

 

4

 

deferred
retirement benefit hereunder shall be paid to the Participant in the form of a
single life annuity.

 

4.4           Vested Termination Benefit. A
Participant who is entitled to benefits only under Section 3.9 of the
Retirement Plan (Vested Terminated Participants) shall receive a vested
termination benefit hereunder equal to the excess of (1) the Participant’s
Vested Termination Benefit under the Retirement Plan, calculated using Plan
Earnings as defined in Section 1.6 but without regard to the limits of
Code Sections 401(a)(17) and 415, over (2) the Participant’s Vested
Termination Benefit under the Retirement Plan. A vested termination benefit
hereunder shall be calculated as of the date that the Participant’s employment
terminates and shall commence on the first date of the calendar month following
the date the Participant’s employment terminates or, if later, the first date
of the calendar month following the date the Participant attains age 55,
without regard to the date that benefits commence under the Retirement Plan.
The vested termination benefit will be reduced for early payment based upon the
same reduction factors that would apply under the Retirement Plan for a Vested
Termination Benefit using the Participant’s age and service at the date of
termination of employment. If the Participant is married or, effective May 1,
2006, has a Domestic Partner, when his or her benefit commences, then the
vested termination benefit hereunder shall be paid to the Participant in the
form of a 50% joint and survivor annuity with the Participant’s spouse or
Domestic Partner as the joint annuitant. If the Participant is unmarried and,
effective May 1, 2006, does not have a Domestic Partner when his or her
benefit commences, then the vested termination benefit hereunder shall be paid
to the Participant in the form of a single life annuity.

 

4.5                                 Disability Benefits. A Participant who becomes Disabled (as
defined below) shall be entitled to a benefit under this Plan only under the
following circumstances:

 

(a)                                  If on or before becoming Disabled, the
Participant had become vested in and eligible for: (1)  a Normal
Retirement Benefit under Section 3.1 of the Retirement Plan, (2) an
Early Retirement Benefit under Sections 3.2 to 3.7 or 3.9A of the Retirement
Plan, or (3) a Deferred Retirement Benefit under Section 3.10 of the
Retirement Plan, the Participant shall receive a disability retirement benefit
hereunder calculated in the same manner as if the Disability were a termination
of employment.

 

(b)                                 If on or before becoming Disabled, the
Participant had become vested in and eligible for benefits under the Retirement
Plan only pursuant to Section 3.9 (Vested Terminated Participants), the
Participant shall receive a disability retirement benefit hereunder, calculated
as of the date that the Participant becomes Disabled, equal to the excess of (1) the
Participant’s Vested Termination Benefit under the Retirement Plan, calculated
using Plan Earnings as defined in Section 1.6 but without regard to the
limits of Code Sections 401(a)(17) and 415, over (2) the Participant’s
Vested Termination Benefit under the Retirement Plan; provided, however, that
no disability retirement benefit shall be payable pursuant to this Section 4.5(b) unless
the Participant continues to be Disabled through the date that the benefit is
scheduled to commence pursuant to Section 4.5(c). If the Participant
recovers from the Disability prior to the date the disability retirement
benefit is scheduled to commence, no disability retirement benefit is payable
under this Section 4.5(b). The disability retirement benefit will be
reduced for early payment based upon the same reduction factors that would
apply under the Retirement Plan for a

 

5

 

Vested Termination Benefit using the
Participant’s age at commencement of payment and service at the date of
Disability.

 

(c)                                  A disability retirement benefit
hereunder shall commence on the first date of the calendar month following the
date the Participant becomes Disabled or, if later, the first date of the
calendar month following the date the Participant attains age 55, without
regard to the date that benefits commence under the Retirement Plan. A
Participant will not continue to accrue benefits under this Plan while Disabled
notwithstanding any continued accrual of benefits under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her benefit commences, then the disability retirement
benefit hereunder shall be paid to the Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner as the
joint annuitant. If the Participant is unmarried and, effective May 1,
2006, does not have a Domestic Partner when his or her benefit commences, then
the disability retirement benefit hereunder shall be paid to the Participant in
the form of a single life annuity.

 

(d)                                 For purposes of this Plan, a Participant
will be considered Disabled if determined to be disabled under the Company’s
long-term disability plan, provided that the Participant is determined to be
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.

 

4.6                                 Small Benefits. If the Actuarial Equivalent lump sum
value of any benefit payable hereunder is $10,000 or less ($5,000 or less for
benefits payable before October 23, 2007), payment of the benefit shall be
made in a single lump sum in cash on the date the benefit would otherwise
commence, provided that, to the extent required under Section 409A of the
Code, the payment results in the termination and liquidation of the entirety of
the Participant’s interest under the Plan and all other deferred compensation
arrangements which, together with the Plan, are treated as a single plan under Section 409A
of the Code.

 

4.7                                 Preretirement Death Benefit For
Surviving Spouse Or Domestic Partner. Effective May 1, 2006, upon the death of a Participant who, on
the date of such death, (1) is an employee of the Company, (2) has
not received any benefits under this Plan, and (3) is eligible to retire
from the Company and receive a Vested Termination Benefit, a Normal Retirement
Benefit, an Early Retirement Benefit, or a Deferred Retirement Benefit from the
Retirement Plan, his or her surviving spouse or surviving Domestic Partner, if
any, shall be entitled to the monthly benefit that would have been payable to
such spouse or Domestic Partner under this Article 4, if the Participant
had:

 

(a)                                  terminated employment on the date of
death,

 

(b)                                 commenced receiving a 50% joint and
survivor annuity with the Participant’s spouse or Domestic Partner designated
as the joint annuitant on the date of death or, if later, the date the
Participant would have attained age 55, and

 

(c)                                  died on the following day.

 

6

 

If the Participant was
eligible only for a Vested Termination Benefit under the Retirement Plan, the
benefit payable to the surviving spouse or surviving Domestic Partner shall
commence on the first date of the calendar month following the date of the Participant’s
death or, if later, the first date of the calendar month following the date the
Participant would have attained age 55.

 

4.8                                 Election of Actuarially Equivalent Life
Annuities. Effective
upon the date of adoption of this amendment and restatement, in accordance with
such procedures as the Committee may promulgate from time to time, a
Participant may elect to change the form of payment of his or her benefit to a
single life annuity, or to a 50%, 66-2/3%, 75% or 100% joint and survivor
annuity with the Participant’s spouse or Domestic Partner as the joint
annuitant, before any annuity payment has been made, provided that the
annuities are actuarially equivalent applying reasonable actuarial assumptions,
and that the change complies with the requirements of Section 409A of the
Code.

 

4.9                                 Distributions
to a Specified Employee. Notwithstanding any other provision of the Plan,
payments otherwise required to be made or commence upon the termination of
employment of a Participant who is a “specified employee” (within the meaning
of Section 409A of the Code and applicable regulations thereunder, as
determined by the Committee) at the time of such termination shall be delayed
and paid, without interest, upon the earlier of (i) the first business day
which is at least six months and one day following the date of such termination
of employment, or (ii) the death of the Participant, to the extent that
the Committee determines that such delayed payment is required in order to
avoid a violation of Section 409A of the Code.

 

4.10                           Delayed
Payments. To the extent permitted under Section 409A of the Code, the
Committee may, in its discretion, delay the payment of any benefit hereunder
beyond the date otherwise provided under the Plan in the following
circumstances:

 

(a)                                  Violation of Applicable Laws. Payment of a benefit may be delayed in
the event the Committee reasonably anticipates that the payment will violate
federal securities laws or other applicable law. Payment of the amounts delayed
under this Section 4.9(a) will be made at the earliest date at which
the Committee reasonably anticipates that making the payment will not cause a
violation of federal securities laws or other applicable law.

 

(b)                                 Other. Payment may be delayed under such
other circumstances permitted under applicable guidance under Section 409A
of the Code.

 

4.11                           Accelerated Payments. The acceleration of the time or
schedule of any payment prior to the date or dates otherwise provided under the
Plan is prohibited except as permitted under Section 409A of the Code. To
the extent permitted under Section 409A of the Code, the Committee may, in
its discretion, accelerate payment under the following circumstances:

 

(a)                                  Divestiture. A Participant’s benefit may be
accelerated to the extent necessary to for any Federal officer or employee in
the executive branch to comply with any ethics agreement with the Federal
government, or to the extent reasonably necessary to avoid the violation of an
applicable Federal, state, local or foreign ethics law or conflicts of interest
law.

 

(b)                                 Income Inclusion Under Code Section 409A. If the Plan fails to meet the
requirements of Section 409A of the Code and applicable regulations
thereunder, a payment may

 

7

 

be made to the Participant in the amount
required to be included in income as a result of the failure to comply with
such requirements.

 

(c)                                  Other. Payment may be accelerated under such
other circumstances permitted under applicable guidance under Section 409A
of the Code.

 

4.12                           Separation From Service. Notwithstanding any provision of the
Plan to the contrary, references to “termination of employment” shall mean a “separation
from service” which qualifies as a permitted payment event for purposes of Section 409A
of the Code.

 

ARTICLE 5

 

AMENDMENT AND TERMINATION

 

The Board reserves the
right at any time to modify or amend by a duly adopted resolution of the Board
or a duly delegated committee of the Board any or all of the provisions of the
Plan (including a retroactive amendment required to comply with Code Section 409A). Notwithstanding the preceding
sentence, no such modification or amendment will reduce the benefits earned by
a Participant prior to the date of the amendment or modification, except that
such benefits may be reduced because of an increase in benefits payable under
the Retirement Plan. No distributions will be made prior to the date or dates
otherwise provided under the Plan, unless earlier distribution is permitted
under Code Section 409A.

 

ARTICLE 6

 

MISCELLANEOUS PROVISIONS

 

6.1                                 Plan Administration. The Bank shall be the plan
administrator and the named fiduciary within the meaning of ERISA. In
administering the Plan, the Bank shall act through the Employee Deferred
Compensation and Benefit Plans Administrative Committee, which shall be
delegated the full power, discretion and authority to interpret, construe and
administer the Plan and any part thereof. The Committee’s interpretation and
construction of the Plan, and actions thereunder, shall be binding and
conclusive on all persons for all purposes. All actuarial determinations shall
be made by the actuary for the Retirement Plan, and the Committee shall be
entitled to rely on the good faith determinations of such actuary. The
Committee shall make appropriate arrangements for satisfaction of any federal
or state payroll withholding tax required upon the accrual or payment of any
Plan benefits.

 

6.2                                 Claims Procedures. Claims for benefits under this Plan
shall be brought in accordance with the claims procedures set forth in Article X
of the Retirement Plan, which is hereby incorporated herein by reference.

 

6.3                                 No Employment Contract. Nothing in this Plan shall be
construed to limit in any way the rights of a Company to terminate an employee’s
employment at any time for any reason whatsoever; nor shall it be evidence of
any agreement or understanding, express or implied, that 

 

8

 

a Company will employ an employee in any
particular position or permit an employee to participate in any compensation or
benefit programs.

 

6.4                                 Non-Alienation of Benefits. No benefit payable under this Plan may
be assigned, pledged, mortgaged, or hypothecated, or shall be subject to legal
process or attachment for the payment of claims of any creditor of a
Participant or the surviving spouse of a Participant.

 

6.5                                 No Funding Obligation. This Plan shall not be construed to require
the Bank to fund any of the benefits payable under this Plan nor to require the
establishment of a trust. The Bank, in its sole discretion, may make such
arrangements as it desires to provide for the payment of any benefits
hereunder, and no person shall have any claim against a particular fund or
asset owned by the Bank or in which it has an interest to secure the payment of
a Company’s obligations hereunder.

 

6.6                                 Entire Agreement. This Plan document contains the entire
obligation of the Bank to provide benefits described herein. The Plan document
may not be modified by any oral statement or agreement and may be modified only
by a written amendment executed by a duly authorized officer of the Bank.

 

6.7                                 Governing Law. This Plan and all rights hereunder
shall be governed by and construed in accordance with ERISA applicable to Top
Hat plans, and laws of the State of California to the extent not preempted.

 

6.8                                 Section 409A. This Plan is intended to
comply, in form and operation, with Section 409A of the Code, and its
provisions shall be interpreted consistent therewith. Notwithstanding any
provision of the Plan to the contrary, no distributions will be made under the
Plan earlier or later than permitted under the requirements of Code Section 409A.

 

 

	
   

  	
  Dated: September 18, 2008

  
	
   

  	
   

  
	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Fearer

  
	
   

  	
   

  
	
   

  	
  As Its: Director of Human Resources

  

 

9Exhibit
10.5

 

UNION BANK OF

CALIFORNIA, N.A.

 

 

SUPPLEMENTAL EXECUTIVE

RETIREMENT PLAN FOR

POLICY MAKING OFFICERS

 

 

As Amended and Restated Effective

September 18, 2008

 

 

ESTABLISHMENT AND

PURPOSE

 

Effective January 1,
1999, Union Bank of California, National Association established the Union Bank
Supplemental Executive Retirement Plan for Policy Making Officers to provide
certain executives with retirement benefits in excess of those benefits
provided under the Company’s Retirement Plan.

 

Using an earnings
definition based on base pay, and bonuses and incentive payments and based on
service completed on or after January 1, 1997, but excluding other forms
of compensation, the Plan supplements benefits under the Retirement Plan to the
extent such benefits are reduced due to the limits of Sections 401(a)(17) and
415 of the Code. The Plan is intended to be an unfunded plan maintained
primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees, as described in Sections 201(2),
301(a)(3) and 401(a)(1) of ERISA.

 

The Bank hereby amends
and restates the Plan in its entirety effective September 18, 2008.

 

ARTICLE 1

DEFINITIONS

 

Except as follows, all
capitalized terms used in this Plan have the same meaning as in the Retirement
Plan:

 

1.1                                 “Bank” means Union Bank of California,
National Association, a national banking association organized under the laws
of the United States, or any successor in interest. Prior to April 1, 1996
the Bank was known as Union Bank.

 

1.2                                 “Board” means the Board of Directors of
the Bank.

 

1.3                                 “Company” means the Bank and any other
corporation, trade or business which is authorized to participate in the Plan
by the Board and which constitutes a controlled group or an affiliated service
group of which the Bank is a member, or are under common control with the Bank,
within the meaning of Code Section 414(b), (c), (m), or (o), but only for
the period during which the relationship exists.

 

1.3A                       “Domestic
Partner” means Domestic Partner, as defined in the Union Bank of California
Retirement Plan.

 

1.4                                 “Involuntary Termination” means a
termination of employment under circumstances which render the Participant
eligible for severance benefits from the Company (provided the Participant has
executed a release agreement).

 

1.5                                 “Participant” means an executive of the
Company who participates in the Plan pursuant to Article 2.

 

2

 

1.6                                 “Plan” means this Union Bank of
California N.A. Supplemental Executive Retirement Plan for Policy Making
Officers.

 

1.7                                 “Plan Earnings” means, notwithstanding
the Retirement Plan’s definition of Earnings, for purposes of determining a
Participant’s accrued benefit under the Plan, a Participant’s regular base
salary or wages received for services rendered to the Company, including
bonuses and incentive payments based on services completed on or after January 1,
1997, base salary deferred under the Company’s Senior Management Deferred
Compensation Plan, Separation Pay Plan payments, and amounts deferred pursuant
to Code Section 125, 401(k), 402(e)(3), 402(h) or 403(b) which
if paid, would have been Plan Earnings. Plan Earnings do not include
commissions, overtime, premium payments, restricted stock awards, bargain element
on stock options (which, for purposes of clarification, includes payment of the
bargain element upon the cancellation of stock options), special amounts or
payments, or indemnities.

 

1.8                                 “Retirement Plan” means the Union Bank
of California Retirement Plan. References in the Plan to sections of the
Retirement Plan shall be deemed to refer to any sections adopted as successors
to those sections pursuant to an amendment of the Retirement Plan.

 

1.9                                 “Vested Termination Benefit” means a
vested benefit payable under Section 3.9 of the Retirement Plan.

 

ARTICLE 2

PARTICIPATION

 

The Participants in the
Plan shall be those Company employees who are policy making officers and who
are selected for Plan participation by the Bank. The Bank’s chief executive
officer shall recommend Company employees for consideration to the Executive
Compensation and Benefits Committee of the Board (the “Committee”), and the
Committee shall approve the employees who will be allowed to participate in the
Plan.

 

ARTICLE 3

RETIREMENT AND DISABILITY BENEFITS

 

A Participant shall be
entitled to a benefit under this Plan only if he or she is vested in and is
eligible for: (1) a vested termination benefit under Section 3.9 of
the Retirement Plan, (2) a Normal Retirement Benefit under Section 3.1
of the Retirement Plan, (3) an Early Retirement Benefit under Sections 3.2
to 3.7 or 3.9A of the Retirement Plan, or (4) a Deferred Retirement
Benefit under Section 3.10 of the Retirement Plan. No benefits shall be
paid under this Plan with respect to a Participant who is not entitled to a
benefit under the sections of the Retirement Plan referenced in the preceding
sentence; in particular, no benefits shall be paid under this Plan with respect
to a Participant who is only entitled to benefits under the Retirement Plan
pursuant to

 

3

 

Article V (Death Benefits), or Article VI
(Disability Benefits), except as set forth in Sections 4.5 or 4.7 of this Plan.

 

ARTICLE 4

BENEFIT CALCULATION AND DISTRIBUTION

 

4.1                                 Normal Retirement. A Participant who is eligible for a
Normal Retirement Benefit under the Retirement Plan shall receive a normal
retirement benefit hereunder equal to the excess of (1) the Participant’s
Normal Retirement Benefit under the Retirement Plan, calculated using Plan
Earnings as defined in Section 1.7 but without regard to the limits of
Code Sections 401(a)(17) and 415, over (2) the Participant’s Normal
Retirement Benefit under the Retirement Plan. A normal retirement benefit
hereunder shall be calculated as of the date that the Participant’s employment
terminates and shall commence on the first day of the next calendar month,
without regard to the date that benefits commence under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her employment terminates, then the normal retirement
benefit hereunder shall be paid to the Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner as the
joint annuitant. If the Participant is unmarried and, effective May 1,
2006, does not have a Domestic Partner when his or her employment terminates,
then the normal retirement benefit hereunder shall be paid to the Participant
in the form of a single life annuity.

 

4.2                                 Early Retirement. A Participant who is eligible for an
Early Retirement Benefit under the Retirement Plan shall receive an early
retirement benefit hereunder equal to the excess of (1) the Participant’s
Early Retirement Benefit under the Retirement Plan, calculated using Plan
Earnings as defined in Section 1.7 but without regard to the limits of
Code Sections 401(a)(17) and 415, over (2) the Participant’s Early
Retirement Benefit under the Retirement Plan. An early retirement benefit hereunder
shall be calculated as of the date that the Participant’s employment terminates
and shall commence on the first day of the next calendar month, even if the
Participant elects a later Early Retirement Date under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her employment terminates, then the early retirement
benefit hereunder shall be paid to the Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner
designated as the joint annuitant. If the Participant is unmarried and,
effective May 1, 2006, does not have a Domestic Partner when his or her
employment terminates, then the early retirement benefit hereunder shall be
paid to the Participant in the form of a single life annuity.

 

4.3                                 Deferred Retirement. A Participant who is eligible for a
Deferred Retirement Benefit under the Retirement Plan shall receive a deferred
retirement benefit hereunder equal to the excess of (1) the Participant’s
Deferred Retirement Benefit under the Retirement Plan, calculated using Plan
Earnings as defined in Section 1.7 but without regard to the limits of
Code Sections 401(a)(17) and 415, over (2) the Participant’s Deferred
Retirement Benefit under the Retirement Plan. A deferred retirement benefit
hereunder shall be calculated as of the date that the Participant’s employment
terminates and shall commence on the first day of the next calendar month,
without regard to the date that benefits commence under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her employment terminates, then the deferred retirement
benefit hereunder shall be paid to the 

 

4

 

Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner as the
joint annuitant. If the Participant is unmarried and, effective May 1,
2006, does not have a Domestic Partner, when his or her employment terminates,
then the deferred retirement benefit hereunder shall be paid to the Participant
in the form of a single life annuity.

 

4.4                                 Vested Termination Benefit. A Participant who is entitled to
benefits only under Section 3.9 of the Retirement Plan (Vested Terminated
Participants) shall receive a vested termination benefit hereunder equal to the
excess of (1) the Participant’s Vested Termination Benefit under the
Retirement Plan, calculated using Plan Earnings as defined in Section 1.7
but without regard to the limits of Code Sections 401(a)(17) and 415, over (2) the
Participant’s Vested Termination Benefit under the Retirement Plan. A vested
termination benefit hereunder shall be calculated as of the date that the
Participant’s employment terminates and shall commence on the first date of the
calendar month following the date the Participant’s employment terminates or,
if later, the first date of the calendar month following the date the
Participant attains age 55, without regard to the date that benefits commence
under the Retirement Plan. The vested termination benefit will be reduced for
early payment based upon the same reduction factors that would apply under the
Retirement Plan for a Vested Termination Benefit using the Participant’s age
and service at the date of termination of employment; provided, however, that
if the Participant’s employment terminated due to an Involuntary Termination,
the vested termination benefit will be reduced for early payment based upon the
reduction factors that would apply under Section 3.4 of the Retirement
Plan if the Participant is eligible, and if not, then under Section 3.5 of
the Retirement Plan. If the Participant is married or, effective May 1,
2006, has a Domestic Partner, when his or her benefit commences, then the vested
termination benefit hereunder shall be paid to the Participant in the form of a
50% joint and survivor annuity with the Participant’s spouse or Domestic
Partner as the joint annuitant. If the Participant is unmarried and, effective May 1,
2006, does not have a Domestic Partner when his or her benefit commences, then
the vested termination benefit hereunder shall be paid to the Participant in
the form of a single life annuity.

 

4.5                                 Disability Benefits. A Participant who becomes Disabled (as
defined below) shall be entitled to a benefit under this Plan only under the
following circumstances:

 

(a)                                  If on or before becoming Disabled, the
Participant had become vested in and eligible for: (1)  a Normal
Retirement Benefit under Section 3.1 of the Retirement Plan, (2) an
Early Retirement Benefit under Sections 3.2 to 3.7 or 3.9A of the Retirement
Plan, or (3) a Deferred Retirement Benefit under Section 3.10 of the
Retirement Plan, the Participant shall receive a disability retirement benefit
hereunder calculated in the same manner as if the Disability were a termination
of employment.

 

(b)                                 If on or before becoming Disabled, the
Participant had become vested in and eligible for benefits under the Retirement
Plan only pursuant to Section 3.9 (Vested Terminated Participants), the
Participant shall receive a disability retirement benefit hereunder, calculated
as of the date that the Participant becomes Disabled, equal to the excess of (1) the
Participant’s Vested Termination Benefit under the Retirement Plan, calculated
using Plan Earnings as defined in Section 1.7 but without regard to the
limits of Code Sections 401(a)(17) and 415, over (2) the Participant’s
Vested Termination Benefit under the Retirement Plan; provided, however,

 

5

 

that no disability retirement benefit
shall be payable pursuant to this Section 4.5(b) unless the
Participant continues to be Disabled through the date that the benefit is
scheduled to commence pursuant to Section 4.5(c). If the Participant
recovers from the Disability prior to the date the disability retirement
benefit is scheduled to commence, no disability retirement benefit is payable
under this Section 4.5(b). The disability retirement benefit will be
reduced for early payment based upon the same reduction factors that would
apply under the Retirement Plan for a Vested Termination Benefit using the
Participant’s age at commencement of payment and service at the date of
Disability.

 

(c)                                  A disability retirement benefit
hereunder shall commence on the first date of the calendar month following the
date the Participant becomes Disabled or, if later, the first date of the
calendar month following the date the Participant attains age 55, without
regard to the date that benefits commence under the Retirement Plan. A
Participant will not continue to accrue benefits under this Plan while Disabled
notwithstanding any continued accrual of benefits under the Retirement Plan. If
the Participant is married or, effective May 1, 2006, has a Domestic
Partner, when his or her benefit commences, then the disability retirement
benefit hereunder shall be paid to the Participant in the form of a 50% joint
and survivor annuity with the Participant’s spouse or Domestic Partner as the
joint annuitant. If the Participant is unmarried and, effective May 1,
2006, does not have a Domestic Partner when his or her benefit commences, then
the disability retirement benefit hereunder shall be paid to the Participant in
the form of a single life annuity.

 

(d)                                 For purposes of this Plan, a Participant
will be considered Disabled if determined to be disabled under the Company’s
long-term disability plan, provided that the Participant is determined to be
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.

 

4.6                                 Small Benefits. If the Actuarial Equivalent lump sum
value of any benefit payable hereunder is $10,000 or less ($5,000 or less for
benefits payable before October 23, 2007), payment of the benefit shall be
made in a single lump sum in cash on the date the benefit would otherwise
commence, provided that, to the extent required under Section 409A of the
Code, the payment results in the termination and liquidation of the entirety of
the Participant’s interest under the Plan and all other deferred compensation
arrangements which, together with the Plan, are treated as a single plan under Section 409A
of the Code.

 

4.7                                 Preretirement Death Benefit For
Surviving Spouse Or Domestic Partner. Effective May 1, 2006, upon the death of a Participant who, on
the date of such death, (1) is an employee of the Company, (2) has
not received any benefits under this Plan, and (3) is eligible to retire
from the Company and receive a Vested Termination Benefit, a Normal Retirement
Benefit, an Early Retirement Benefit, or a Deferred Retirement Benefit from the
Retirement Plan, his or her surviving spouse or surviving Domestic Partner, if
any, shall be entitled to the monthly benefit that would have been payable to
such spouse or Domestic Partner under this Article 4, if the Participant
had:

 

(a)                                  terminated employment on the date of
death,

 

6

 

(b)                                 commenced receiving a 50% joint and
survivor annuity with the Participant’s spouse or Domestic Partner designated
as the joint annuitant on the date of death or, if later, the date the
Participant would have attained age 55, and

 

(c)                                  died on the following day.

 

If the Participant was
eligible only for a Vested Termination Benefit under the Retirement Plan, the
benefit payable to the surviving spouse or surviving Domestic Partner shall
commence on the first date of the calendar month following the date of the
Participant’s death or, if later, the first date of the calendar month
following the date the Participant would have attained age 55.

 

4.8                                 Election of Actuarially Equivalent Life
Annuities. Effective
upon the date of adoption of this amendment and restatement, in accordance with
such procedures as the Committee may promulgate from time to time, a
Participant may elect to change the form of payment of his or her benefit to a single
life annuity, or to a 50%, 66-2/3%, 75% or 100% joint and survivor annuity with
the Participant’s spouse or Domestic Partner as the joint annuitant, before any
annuity payment has been made, provided that the annuities are actuarially
equivalent applying reasonable actuarial assumptions, and that the change
complies with the requirements of Section 409A of the Code.

 

4.9                                 Distributions
to a Specified Employee. Notwithstanding any other provision of the Plan,
payments otherwise required to be made or commence upon the termination of employment
of a Participant who is a “specified employee” (within the meaning of Section 409A
of the Code and applicable regulations thereunder, as determined by the
Committee) at the time of such termination shall be delayed and paid, without
interest, upon the earlier of (i) the first business day which is at least
six months and one day following the date of such termination of employment, or
(ii) the death of the Participant, to the extent that the Committee
determines that such delayed payment is required in order to avoid a violation
of Section 409A of the Code.

 

4.10                           Delayed
Payments. To the extent permitted under Section 409A of the Code, the
Committee may, in its discretion, delay the payment of any benefit hereunder
beyond the date otherwise provided under the Plan in the following
circumstances:

 

(a)                                  Violation of Applicable Laws. Payment of a benefit may be delayed in
the event the Committee reasonably anticipates that the payment will violate
federal securities laws or other applicable law. Payment of the amounts delayed
under this Section 4.9(a) will be made at the earliest date at which
the Committee reasonably anticipates that making the payment will not cause a
violation of federal securities laws or other applicable law.

 

(b)                                 Other. Payment may be delayed under such
other circumstances permitted under applicable guidance under Section 409A
of the Code.

 

4.11                           Accelerated Payments. The acceleration of the time or
schedule of any payment prior to the date or dates otherwise provided under the
Plan is prohibited except as permitted under Section 409A of the Code. To
the extent permitted under Section 409A of the Code, the Committee may, in
its discretion, accelerate payment under the following circumstances:

 

7

 

(a)                                  Divestiture. A Participant’s benefit may be
accelerated to the extent necessary to for any Federal officer or employee in
the executive branch to comply with any ethics agreement with the Federal
government, or to the extent reasonably necessary to avoid the violation of an
applicable Federal, state, local or foreign ethics law or conflicts of interest
law.

 

(b)                                 Income Inclusion Under Code Section 409A. If the Plan fails to meet the
requirements of Section 409A of the Code and applicable regulations
thereunder, a payment may be made to the Participant in the amount required to
be included in income as a result of the failure to comply with such
requirements.

 

(c)                                  Other. Payment may be accelerated under such
other circumstances permitted under applicable guidance under Section 409A
of the Code.

 

4.12                           Separation From Service. Notwithstanding any provision of the
Plan to the contrary, references to “termination of employment” shall mean a “separation
from service” which qualifies as a permitted payment event for purposes of Section 409A
of the Code.

 

ARTICLE 5

AMENDMENT AND TERMINATION

 

The Board reserves the
right at any time to modify or amend by a duly adopted resolution of the Board
or a duly delegated committee of the Board any or all of the provisions of the
Plan (including a retroactive amendment required to comply with Code Section 409A). Notwithstanding the preceding
sentence, no such modification or amendment will reduce the benefits earned by
a Participant prior to the date of the amendment or modification, except that
such benefits may be reduced because of an increase in benefits payable under
the Retirement Plan. No distributions will be made prior to the date or dates
otherwise provided under the Plan, unless earlier distribution is permitted
under Code Section 409A.

 

ARTICLE 6

MISCELLANEOUS PROVISIONS

 

6.1                                 Plan Administration. The Bank shall be the plan
administrator and the named fiduciary within the meaning of ERISA. In
administering the Plan, the Bank shall act through the Employee Deferred Compensation
and Benefit Plans Administrative Committee, which shall be delegated the full
power, discretion and authority to interpret, construe and administer the Plan
and any part thereof. The Committee’s interpretation and construction of the
Plan, and actions thereunder, shall be binding and conclusive on all persons
for all purposes. All actuarial determinations shall be made by the actuary for
the Retirement Plan, and the Committee shall be entitled to rely on the good
faith determinations of such actuary. The Committee shall make appropriate
arrangements for satisfaction of any federal or state payroll withholding tax
required upon the accrual or payment of any Plan benefits.

 

8

 

6.2                                 Claims Procedures. Claims for benefits under this Plan
shall be brought in accordance with the claims procedures set forth in Article X
of the Retirement Plan, which is hereby incorporated herein by reference.

 

6.3                                 No Employment Contract. Nothing in this Plan shall be
construed to limit in any way the rights of a Company to terminate an employee’s
employment at any time for any reason whatsoever; nor shall it be evidence of
any agreement or understanding, express or implied, that a Company will employ
an employee in any particular position or permit an employee to participate in
any compensation or benefit programs.

 

6.4                                 Non-Alienation of Benefits. No benefit payable under this Plan may
be assigned, pledged, mortgaged, or hypothecated, or shall be subject to legal
process or attachment for the payment of claims of any creditor of a
Participant or the surviving spouse of a Participant.

 

6.5                                 No Funding Obligation. This Plan shall not be construed to require
the Bank to fund any of the benefits payable under this Plan nor to require the
establishment of a trust. The Bank, in its sole discretion, may make such
arrangements as it desires to provide for the payment of any benefits
hereunder, and no person shall have any claim against a particular fund or
asset owned by the Bank or in which it has an interest to secure the payment of
a Company’s obligations hereunder.

 

6.6                                 Entire Agreement. This Plan document contains the entire
obligation of the Bank to provide benefits described herein. The Plan document
may not be modified by any oral statement or agreement and may be modified only
by a written amendment executed by a duly authorized officer of the Bank.

 

6.7                                 Governing Law. This Plan and all rights hereunder
shall be governed by and construed in accordance with ERISA applicable to Top
Hat plans, and laws of the State of California to the extent not preempted.

 

6.8                                 Section 409A. This Plan is intended to
comply, in form and operation, with Section 409A of the Code, and its
provisions shall be interpreted consistent therewith. Notwithstanding any
provision of the Plan to the contrary, no distributions will be made under the
Plan earlier or later than permitted under the requirements of Code Section 409A.

 

 

	
   

  	
  Dated: September 18, 2008

  
	
   

  	
   

  
	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Fearer

  
	
   

  	
   

  
	
   

  	
  As Its: Director of Human Resources

  

 

9

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