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EXHIBIT 10.31    
    

 
 

AMENDMENT TO CHANGE-OF-CONTROL AGREEMENT    
    

        THIS AMENDMENT to the Change-of-Control Agreement between UnionBanCal Corporation, a California corporation (the "Company") and
                                     (the "Executive") dated as
of                                      (the "Agreement") is
entered into by and between the Company and the Executive
effective as of January 1, 2005. 

        WHEREAS,
the parties wish to make certain modifications to the Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A); 

        NOW,
THEREFORE, in consideration of the foregoing and of the material promises and conditions contained in the Agreement and in this Amendment, the parties agree as follows: 

        1.     The
Agreement is hereby incorporated by reference herein and made a part hereof, subject to the specified modifications set forth herein. 

        2.     Section 3(b)(2)
is hereby amended by replacing the last sentence thereof with the following sentence: 

        "Each
such Annual Bonus shall be paid within 21/2 months after the end of the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer
the receipt of such Annual Bonus." 

        3.     Section 5(a)(3)
is hereby amended and restated in its entirety as follows: 

        "(3)
the Company shall, at its sole expense as incurred, provide the Executive with reasonable outplacement services the scope and provider of which shall be selected by the Executive in
the Executive's sole discretion, provided that the cost of such outplacement shall not exceed 15% of the Executive's Annual Base Salary and the period
during which the services are provided shall not extend beyond the end of the second full calendar year following the calendar year in which the Executive's employment terminates; and" 

        4.     A
new Section 5A is hereby added to the Agreement, immediately following Section 5, as follows: 

        "SECTION 5A.
Section 409A. 

        (a)   Notwithstanding
any provision to the contrary in this Agreement, the Company shall delay the commencement of payments or benefits coverage to which the Executive would
otherwise become entitled under the Agreement in connection with the Executive's termination of employment until the earlier of (i) the expiration of the six-month period measured
from the date of the Executive's "separation from service" with the Company (as such term is defined in Treasury Regulations issued under Section 409A of the Code (defined below)) or
(ii) the date of the Executive's death, if the Company in good faith determines that the Executive is a "specified employee" within the meaning of that term under Code Section 409A at
the time of such separation from service and that such delayed commencement is otherwise required in order to avoid a prohibited distribution under Section 409A(a)(2) of the Code. Upon the
expiration of the applicable Code Section 409A(a)(2) deferral period, all payments and benefits deferred pursuant to this Section 5A (whether they would have otherwise been payable in a
single sum or in installments in the absence of such deferral) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under the Agreement shall be paid
or provided in accordance with the normal payment dates specified for them herein. If a benefit subject to the delayed payment rules of this Section 5A is to be provided other than by the
payment of money to the Executive, then continuation of such benefit during the deferral period is conditioned on pre-payment by the Executive to the Company of the full taxable value of
the benefit and following the end of the deferral period, the Bank shall repay the Executive for the payments made by the Executive pursuant to the terms of this sentence which would otherwise not
have been required of the Executive. 

 

        (b)   In
addition, to the extent the Company is required pursuant to this Agreement to reimburse expenses incurred by the Executive, and such reimbursement obligation is
subject to Section 409A of the Code, the Company shall reimburse any such eligible expenses by the end of the calendar year next following the calendar year in which the expense was incurred,
subject to any earlier required deadline for payment otherwise applicable under this Agreement; provided, however, that the following sentence shall
apply to any tax gross-up payment and related expense reimbursement obligation, including any payment obligations described in Section 8, to the extent subject to
Section 409A. Any such tax gross-up payment will be made by the end of the calendar year next following the calendar year in which the Executive remits the related taxes, and any
required reimbursement of expenses incurred due to a tax audit or litigation addressing the existence or amount of a tax liability will be made by the end of the calendar year next following the
calendar year in which the taxes that are the subject of the audit or litigation are remitted to the taxing authority, or where as a result of such audit or litigation no taxes are remitted, the end
of the calendar year next following the calendar year in which such audit is completed or there is a final and nonappealable settlement or other resolution of the litigation, in each case subject to
any earlier required deadline for payment otherwise applicable under this Agreement. 

        (c)   The
provisions of this Agreement which require commencement of payments or benefits coverage subject to Section 409A upon a termination of employment shall be
interpreted to require that the Executive have a "separation from service" with the Company (as such term is defined in Treasury Regulations issued under Code Section 409A). 

        (d)   The
provisions of Section 5 which require the acceleration of payment of any compensation previously deferred by the Executive (together with any accrued interest
or earnings thereon) to the extent not theretofore paid, upon a termination of employment, shall apply only if the termination of employment occurs within two years following the Change of Control,
and the Change of Control constitutes a "change in control" as such term is defined in Treasury Regulations issued under Code Section 409A. 

        (e)   Any
series of payments (including in-kind benefits) provided under this Agreement shall for all purposes of Code Section 409A be treated as a series
of separate payments and not as single payments. 

        (f)    The
provisions of this Section 5A are intended to comply with Code Section 409A and shall be interpreted consistent with such section." 

        5.     Except
as expressly modified by this Amendment, the terms and provisions of the Agreement shall remain unchanged and in full force and effect. 

        6.     Any
modification to this Amendment shall be effective only if it is in writing and signed by the parties to be bound thereby. 

        7.     This
Amendment (including the Agreement incorporated herein by reference) constitutes the entire agreement between the parties hereto with respect to the changes to the
Agreement provided for in this Amendment and supersedes all prior or contemporaneous written or verbal agreements and understandings among the parties in connection with the subject matter thereof. 

2

 

        IN
WITNESS WHEREOF, the parties have executed this Amendment by their duly authorized officers or agents. 

	Dated:	                                    	 	UNIONBANCAL CORPORATION
	

 	

 	
 	

By:	

  
 Paul E. Fearer
	 	 	 	Executive Vice President
	

Dated:	

                                    	
 	

                                    

3

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EXHIBIT 10.31

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EXHIBIT 10.32    
    

 
 

UNION BANK OF CALIFORNIA, N.A.
  
    SEPARATION PAY PLAN
  
    (Effective January 1, 2008)    
    

 

	 
	 	Page

	ARTICLE I. DEFINITIONS	 	1
	 	1.1 "Administrative Committee"	 	1
	 	1.2 "Affiliated Group"	 	1
	 	1.3 "Base Pay"	 	1
	 	1.4 "Code"	 	2
	 	1.5 "Comparable Position"	 	2
	 	1.6 "Eligible Employee"	 	2
	 	1.7 "Employer"	 	4
	 	1.8 "Employment"	 	4
	 	1.9 "ERISA"	 	4
	 	1.10 "Guaranteed Reinstatement Period"	 	4
	 	1.11 "Job Elimination"	 	4
	 	1.12 "Non-Benefits Eligible Employee"	 	5
	 	1.13 "Participant"	 	5
	 	1.14 "Participating Employer"	 	5
	 	1.15 "Plan"	 	6
	 	1.16 "Plan Year"	 	6
	 	1.17 "Retirement Benefits"	 	6
	 	1.18 "Retirement Eligible Participant"	 	6
	 	1.19 "Separation Pay"	 	6
	 	1.20 "Separation Pay Allowance"	 	6
	 	1.21 "Termination Date"	 	6
	 	1.22 "Year of Service"	 	6
	ARTICLE II. PARTICIPATION	 	7
	 	2.1 Participation	 	7
	 	2.2 Persons Who Shall Not Participate	 	7
	 	2.3 Settlement and Release Agreement	 	9
	ARTICLE III. SEPARATION BENEFITS	 	9
	 	3.1 Separation Pay Allowance	 	9
	 	3.2 Payment of Separation Pay Allowance	 	10
	 	3.3 Interest	 	10
	 	3.4 Deductions	 	10
	 	3.5 Repayment or Forfeiture of Separation Pay Allowance	 	10
	 	3.6 Effect of the Participant's Leave of Absence	 	10
	 	3.7 Effect of the Participant's Commencement of Retirement Benefits	 	11
	 	3.8 Effect of the Participant's Death	 	12
	 	3.9 Limitation on Separation Pay	 	12
	 	3.10 Section 409A	 	12
	ARTICLE IV. WELFARE BENEFITS	 	13
	 	4.1 Continuation of Coverage	 	13
	ARTICLE V. SOURCE OF PAYMENTS AND EXPENSES	 	13
	 	5.1 Source of Payments	 	13
	 	5.2 Expenses	 	14
	ARTICLE VI. ADMINISTRATION AND PLAN FIDUCIARIES	 	14
	 	6.1 Plan Sponsor	 	14
	 	6.2 Plan Administrator	 	14
	 	6.3 Administrative Responsibility	 	14
	 	6.4 Review of Denied Claims	 	14
	 	6.5 Named Fiduciaries	 	14
	 	6.6 Allocation and Delegation of Responsibilities	 	15

i

 

	 	6.7 Indemnification	 	15
	ARTICLE VII. CLAIMS AND APPEALS	 	16
	 	7.1 Claims for Benefits	 	16
	 	7.2 Review of Denied Claims	 	17
	 	7.3 Exhaustion of Remedies	 	19
	ARTICLE VIII. GENERAL PROVISIONS	 	19
	 	8.1 Legal Construction of the Plan	 	19
	 	8.2 No Rights Created or Accrued	 	19
	 	8.3 Benefits Not Contingent Upon Retirement	 	20
	 	8.4 Relation of the Plan to Descriptive Matter	 	20
	 	8.5 Nonalienation of Benefits	 	20
	ARTICLE IX. AMENDMENT, SUSPENSION AND TERMINATION	 	20
	 	9.1 Amendment, Suspension and Termination	 	20
	 	9.2 Participating Employer Withdrawal	 	20
	 	9.3 Effect of Amendment, Suspension, Termination or Withdrawal	 	20
	ARTICLE X. EXECUTION	 	21

ii

 
 
 

UNION BANK OF CALIFORNIA, N.A.
  
    SEPARATION PAY PLAN
  
    INTRODUCTION    
    

        The Union Bank of California, N.A. Separation Pay Plan (the "Plan") was established to provide severance benefits to Eligible Employees who become Participants in
the Plan. The Plan is intended to be, and shall be maintained and operated as, an employee welfare benefit plan under ERISA. 

        The
Plan is effective as of January 1, 2008. The Plan supersedes any plan, program or practice previously in effect, with respect to a Participating Employer other than any
written employment contract or separate severance agreement that expressly provides such benefits and the Union Bank of California, N.A. Termination Pay Plan (the "Basic Plan"). 

 
 

ARTICLE I.
  
    DEFINITIONS    
    

        When used in this Plan, the following capitalized words and phrases shall have the following meanings, unless the context clearly indicates otherwise. 

        1.1    "Administrative Committee"    means the Employee Deferred Compensation and Benefit
Plans Administrative Committee appointed by the Employer to exercise the duties and responsibilities of plan administrator in accordance with Article VI. 

        1.2    "Affiliated Group"    means the Employer, each Participating Employer and any other
direct or indirect subsidiary or affiliate of the Employer or a Participating Employer. 

        1.3    "Base Pay"    means an Eligible Employee's base rate of pay with the Participating
Employer and includes shift differentials. Base Pay does not include any other special payment, such as overtime, bonuses or expense reimbursements. With respect to an Eligible Employee the primary
component of whose Base Pay is commission-based under a variable pay plan, Base Pay shall be the Eligible Employee's adjusted Base Pay, determined in accordance with the written procedures of the
Employer. 

        1.4    "Code"    means the Internal Revenue Code of 1986, as amended, and includes regulations
promulgated thereunder by the Secretary of Treasury. 

        1.5    "Comparable Position"    means a job involving the use of generally similar skills in
the performance of the functions of the position and having generally similar responsibilities with any member of the Affiliated Group or an employer described in Section 2.2(g), provided that
the salary of full-time employees in such job would be at least 90% of his or her Base Pay immediately prior to the Termination Date, and the scheduled hours of part-time
employees would be at least 80% of his or her scheduled hours immediately prior to the Termination Date and that the location of the job is within a 35-mile radius of the person's
residence or results in a greater commuting distance if the person's commute from his or her residence immediately prior to the Termination Date exceeds 35 miles. Notwithstanding any other provision
of
this Plan to the contrary, the determination as to whether a position is a Comparable Position under this Section 1.5 shall be made by the Employer in its sole discretion. 

        1.6    "Eligible Employee"    means a regular employee of a Participating Employer scheduled
to work at least 171/2 hours each week in a position designated by the Employer as benefits-eligible, and whose job performance meets the minimum job performance criteria established by
the Participating 

1

 

Employer,
as determined by the Participating Employer in its sole discretion. Notwithstanding the preceding sentence, the following employees shall not be Eligible Employees under any circumstances: 

	(a)
	Any
person who is classified by the Participating Employer as a Non-Benefits Eligible Employee;

	(b)
	Any
person who performs services for the Participating Employer as an independent contractor or as a leased employee (within the meaning of section 414(n) of the Code);

	(c)
	Any
person who has not completed three (3) months of service with the Participating Employer as of the date he or she is provided notice of termination under
Section 2.1(a);

	(d)
	Any
person who is a nonresident alien and provides temporary services to a Participating Employer on an intra-company transfer visa or a similar visa classification; and

	(e)
	Any
person who is a party to a written employment contract with a Participating Employer expressly providing such person with severance benefits; and

	(f)
	Any
person who is a participant in or who may be eligible to receive severance benefits under any other severance plan or arrangement established by a Participating Employer. 

The
term Eligible Employee includes an employee on an approved leave of absence for which the Participating Employer's leave of absence policy provides for guaranteed reinstatement of employment to
such employee's prior position or an equivalent position, and if such employee is not described in (a), (b), (c),(d), (e) or (f). The term Eligible Employee shall not include any individual
whose compensation from a Participating Employer is reported on Form 1099 or who performs services for a Participating Employer pursuant to an agreement between the Participating Employer and a
third party leasing or professional employment organization, staffing firm or other similar third party organization. Individuals not classified as employees on the payroll records of a Participating
Employer for a particular period shall not be considered Eligible Employees for the period even if a court or administrative agency determines that such individuals are or were employees of a
Participating Employer during such period for purposes of payroll taxes, labor or employment law or any other non-Plan purpose. 

        1.7    "Employer"    means Union Bank of California, N.A., a national banking association, or
any successor thereof. 

        1.8    "Employment"    means employment with any member of the Affiliated Group. 

        1.9    "ERISA"    means the Employee Retirement Income Security Act of 1974, as amended, and
includes regulations promulgated thereunder by the Secretary of Labor. 

        1.10    "Guaranteed Reinstatement Period"    means the period of time during which an Eligible
Employee is guaranteed reinstatement to his or her prior position or an equivalent position in accordance with the Participating Employer's written leave of absence policies. 

        1.11    "Job Elimination"    means, with respect to an Eligible Employee a termination of
employment with the Participating Employer resulting from restructure or elimination of the employee's group, division, department, branch or position because of any one of the following events, as
determined by the Employer in its sole discretion: 

	(a)
	the
sale of stock or assets of the Participating Employer;

	(b)
	the
internal reorganization of the operations of the Participating Employer;

	(c)
	a
change in technology used by or in the business conducted by the Participating Employer; or

	(d)
	a
reduced work volume. 

2

 

        1.12    "Non-Benefits Eligible Employee"    means an employee of a Participating
Employer scheduled to work less than 171/2 hours each week in a position designated by the Employer in its sole discretion as non-benefits eligible and who is not eligible
under the Participating Employer's policies to participate in the health and welfare and retirement benefit plans of the Participating Employer. For purposes of this Plan, Non-Benefits
Eligible Employee shall also include an employee who is a temporary employee or who performs services for a Participating Employer as a term employee without regard to the number of hours he or she is
scheduled to work each week or whether he or she participates in the Participating Employer's health and welfare and retirement benefit plans. 

        1.13    "Participant"    means an Eligible Employee who participates in the Plan pursuant to
Article II. 

        1.14    "Participating Employer"    means, with respect to an Eligible Employee, the
Participating Employer with which he or she is employed. The Participating Employers include the Employer and any subsidiary or affiliate of the Employer which has been designated by the Employer as a
Participating Employer and whose board or other governing body also has adopted the Plan. An entity that becomes a Participating Employer after the Effective Date shall only be treated as a
Participating Employer as of that later date. As of the date on which any subsidiary or affiliate of the Employer becomes a Participating Employer after the Effective Date, this Plan shall supersede
any plan, program or practice under which such Participating Employer may have provided severance benefits prior to the effective date of its adoption of this Plan, other than any written employment
contract or separate severance agreement that expressly provides for such benefits and other than the Basic Plan. 

        1.15    "Plan"    means the Union Bank of California, N.A. Separation Pay Plan, as set forth
herein and as amended from time to time hereafter. 

        1.16    "Plan Year"    means the calendar year, except that the first Plan Year shall be the
short Plan Year commencing on the Effective Date and ending December 31, 2006. 

        1.17    "Retirement Benefits"    means those benefits available to a Participant on account of
the Participant's participation in a qualified defined benefit retirement plan and/or a nonqualified supplemental defined benefit retirement plan of a Participating Employer. 

        1.18    "Retirement Eligible Participant"    means a Participant who is eligible or becomes
eligible to commence receiving Retirement Benefits during any time period when the Participant is receiving Separation Pay. 

        1.19    "Separation Pay"    means amounts payable under the Plan to a Participant on account
of termination of his or her Employment under the conditions described in Article II. 

        1.20    "Separation Pay Allowance"    means the total amount of Separation Pay that a
Participant may receive under the Plan. 

        1.21    "Termination Date"    means, with respect to an Eligible Employee, the date selected
by the Participating Employer on which the Eligible Employee's employment with the Participating Employer is to cease. An Eligible Employee's Termination Date shall be at least 60 days from the
date on which notice is given under Section 2.1(a). 

        1.22    "Year of Service"    means each complete 12-consecutive months of service
with the Participating Employer in the period elapsed from the Participant's first day of employment to his or her Termination Date, including any period of approved leave of absence, as determined by
the Employer in its sole discretion. Service prior to a break in service shall not be added to service after the break in service in determining a Participant's Years of Service. For this purpose, a
Participant experienced a break in service if he or she previously resigned or otherwise terminated employment with a Participating Employer or was terminated by a Participating Employer for any
reason, and later 

3

 

was
re-employed by a Participating Employer. A break in service is measured from the date of termination to the day the Participant is re-employed. 

 
 

ARTICLE II.
  
    PARTICIPATION    
    

        2.1    Participation.    An Eligible Employee shall become a Participant in the Plan if: 

	(a)
	The
Participating Employer provides a written notice to the Eligible Employee notifying him or her that his or her Employment is to be terminated on account of Job Elimination and
setting the Eligible Employee's Termination Date for purposes of this Plan;

	(b)
	The
Eligible Employee voluntarily elects in writing to participate in this Plan (thereby waiving participation in the Basic Plan) by executing the "Settlement and Release Agreement"
required under Section 2.3 prior to his or her Termination Date;

	(c)
	The
Eligible Employee's job performance continues to meet the minimum job performance criteria established by the Participating Employer in its sole discretion until his or her
Termination Date; and

	(d)
	The
Eligible Employee actually terminates his or her Employment as of the Termination Date, or becomes a Participant in accordance with Section 3.7. 

        2.2    Persons Who Shall Not Participate.    Notwithstanding any contrary provision of this
Plan, an Eligible Employee shall not become a Participant and shall not be eligible for Separation Pay if he or she: 

	(a)
	Is
terminated due to poor performance, dishonesty or other misconduct, or failure to comply with the law or with the policies of the Participating Employer;

	(b)
	Is
terminated for any reason other than Job Elimination;

	(c)
	Is
on a leave of absence without a Guaranteed Reinstatement Period or has exceeded the Guaranteed Reinstatement Period;

	(d)
	Is
a participant in the Basic Plan or has an employment or separate severance agreement with the Participating Employer providing for termination pay benefits;

	(e)
	Is
a participant in any other severance plan or arrangement established by a Participating Employer;

	(f)
	Is
offered continued employment with the Affiliated Group in a Comparable Position to the one held by the Eligible Employee immediately prior to his or her Termination Date or
declines an interview for such a Comparable Position; or

	(g)
	Is
terminated as a result of the acquisition, sale or spin-off of the Participating Employer or any facility or branch of the Participating Employer and is offered
employment in a Comparable Position with the purchaser or other surviving entity within 90 days of the Eligible Employee's Termination Date. If an Eligible Employee initially became a
Participant and received Separation Pay during such 90 day period (because the purchaser or the surviving entity did not offer employment in a Comparable Position) and later the Eligible
Employee is offered employment in a Comparable Position or becomes employed in a Comparable Position within such 90 day period, the forfeiture and repayment provisions of Section 3.5
shall apply. 

        2.3    Settlement and Release Agreement.    Each Eligible Employee shall execute a "Settlement
and Release Agreement" as a condition of participation in the Plan. An Eligible Employee shall not 

4

 

become
a Participant and shall not be eligible for Separation Pay under this Plan unless he or she properly completes and executes the Settlement and Release Agreement in exactly the form provided to
the Eligible Employee by the Employer, without altering or adding to the Settlement and Release Agreement in any way, and he or she does not revoke or rescind the Settlement and Release Agreement. The
Settlement and Release Agreement shall provide that execution of such Settlement and Release Agreement by the Eligible Employee will constitute a waiver and release of every claim the Eligible
Employee might otherwise have arising out of his or her employment or the termination of his or her employment. If an Eligible Employee fails to execute the Settlement and Release Agreement by his or
her Termination Date, or executes but later revokes or rescinds the Settlement and Release Agreement, such Eligible Employee shall fail to qualify as a Participant under the Plan. 

 
 

ARTICLE III.
  
    SEPARATION BENEFITS    
    

        3.1    Separation Pay Allowance.    Upon termination of Employment, a Participant shall be
eligible to receive a Separation Pay Allowance equal to the amount designated for his or her job classification on the Benefits Exhibit, for his or her status as an exempt or nonexempt employee; and
for exempt employees further based on salary and corporate title. The Participant's job classification is the classification he or she held immediately prior to the notice of the Termination Date. The
Employer reserves the right to alter, reduce or eliminate this formula, in whole or in part, pursuant to Section 9.1. 

        3.2    Payment of Separation Pay Allowance.    The normal form of payment of a Participant's
Separation Pay Allowance shall be as salary continuation on the same bi-weekly basis as the Participant's salary was paid immediately prior to the Termination Date or such other pay period
basis as the Participating Employer implements with respect to active employees. Notwithstanding the preceding sentence, an Eligible Employee who becomes a Participant as described in
Section 3.10 may receive payment of some or all of his or her Separation Pay Allowance as a lump sum in accordance with Section 3.10. 

        3.3    Interest.    No interest shall accrue or be paid with respect to any portion of the
Participant's Separation Pay Allowance. 

        3.4    Deductions.    The Participating Employer will make such deductions from the
Participant's Separation Pay Allowance as required to cover withholding taxes and the voluntary deductions covering any employee benefits that are continued, in the sole discretion of the
Participating Employer, during the salary continuation period. 

        3.5    Repayment or Forfeiture of Separation Pay Allowance.    If a Participant is reemployed
with a member of the Affiliated Group as described in Section 2.2(f), or if, as described in Section 2.2(g), a Participant is offered employment or becomes employed with the purchaser
prior to the end of the salary continuation period, such Participant shall be required to repay or forfeit (as applicable) to the Participating Employer a pro-rata amount of such
Separation Pay Allowance, as established by the Employer in its sole discretion. 

        3.6    Effect of the Participant's Leave of Absence.    The Termination Date of an Eligible
Employee who commences a leave of absence approved by the Participating Employer and in accordance with the Participating Employer's written leave of absence policies after being given notice under
Section 2.1(a) will be the date specified in such notice. In the case of an Eligible Employee on a leave of absence described in the foregoing sentence, he or she shall become a Participant as
of the first day following the Termination Date, and he or she shall receive Separation Pay equal to the amount designated for his or her job classification on the Benefits Exhibit reduced by any pay
received by the Participant after the date he or she becomes a Participant and determined in accordance with the Participating 

5

 

Employer's
written leave of absence policies, so that the aggregate pay received by such Participant does not exceed the Separation Pay amount. Separation Pay provided under this Section 3.6
shall be paid in the form of Separation Pay Allowance. 

        An
Eligible Employee who commences a leave of absence approved by the Participating Employer and in accordance with the Participating Employer's written leave of absence policies prior
to receiving notice under Section 2.1(a) but who returns within his or her Guaranteed Reinstatement Period may be provided notice under Section 2.1(a) as soon as administratively
practicable following the date he or she returns to employment with the Participating Employer, unless otherwise determined by the Employer. If such Eligible Employee becomes a Participant as provided
in Section 2.1, he or she shall receive Separation Pay equal to the amount designated for his or her job classification on the Benefits Exhibit. 

        An
Eligible Employee who commences a leave of absence approved by the Participating Employer and in accordance with the Participating Employer's written leave of absence policies prior
to receiving notice under Section 2.1(a), but who is not eligible for a Guaranteed Reinstatement Period or who returns after his or her Guaranteed Reinstatement Period, shall no longer be an
Eligible Employee and shall not become a Participant as provided in Section 2.2(c). 

        3.7    Effect of the Participant's Commencement of Retirement Benefits.    If a Participant
who also is a Retirement Eligible Participant receives Retirement Benefits during any time period when the Participant also is receiving Separation Pay, the Participant's Separation Pay shall be
reduced by the amount of the Retirement Benefits received by the Participant during such time period, so that the aggregate pay received by such Participant does not exceed the Separation Pay
Allowance. 

        3.8    Effect of the Participant's Death.    If a Participant dies before he or she receives
the entire balance of his or her Separation Pay Allowance, any unpaid balance of such Separation Pay Allowance shall be paid in an immediate lump sum to the Participant's spouse or domestic partner if
then living or, if not (or none), to the Participant's then living children in equal shares or, if none, to the Participant's estate. 

        3.9    Limitation on Separation Pay.    Nothing in this Article III shall require a
Participating Employer to make a payment under this Plan, if such payment either alone or in the aggregate with other payments to the
Participant from the Participating Employer (or any other Affiliated Group member) would be nondeductible to the Participating Employer for purposes of federal income taxes under section 280G
of the Code or otherwise. Any such payment or portion of a payment that the Employer in its sole discretion determines is nondeductible shall be forfeited by the Participant, and, if already paid, it
shall be returned to Participating Employer by the Participant. 

        3.10    Section 409A.    If the Participant is treated as a "key employee" (within the
meaning of Section 409A of the Code and applicable regulations thereunder, as determined by the Plan Administrator) at the time of his or her separation from service (within the meaning of 409A
of the Code), and if any amount(s) of nonqualified deferred compensation (within the meaning of Section 409A of the Code) are payable under the Plan by reason of the Participant's separation
from service, then payment of the amounts so treated as nonqualified deferred compensation which would otherwise be payable during the six-month period following the Participant's
separation from service will be delayed until the earliest of (i) the first business day which is at least six months and one day following the date of such separation from service,
(ii) the death of the Participant, or (iii) any date on which payment would be permitted under Section 409A, and then without interest. Any series of payments due under this Plan
shall for all purposes of Section 409A be treated as a series of separate payments and not as a single payment. 

6

 
 
 

ARTICLE IV.
  
    WELFARE BENEFITS    
    

        4.1    Continuation of Coverage.    If a Participant is covered by medical, dental or vision
insurance on his or her Termination Date, the Participating Employer, in its sole discretion, may elect to continue employer contributions toward such coverage for a period to be determined by the
Participating Employer. Any such coverage shall not be counted as part of the period of the continuation coverage required by section 4980B(f) of the Code and section 602 of ERISA. If
the Participating Employer does not elect to continue employer contributions, or discontinues employer contributions, the Participant may purchase such coverage, at his or her own expense, during the
period for which continuation coverage is required to be offered under section 4980B(f) of the Code or section 602 of ERISA. 

 
 

ARTICLE V.
  
    SOURCE OF PAYMENTS AND EXPENSES    
    

        5.1    Source of Payments.    Any benefits payable under the Plan shall be unfunded and shall
be payable only from the general assets of the Participating Employers. 

        5.2    Expenses.    The expenses of operating and administering the Plan shall be borne
entirely by the Participating Employers. 

 
 

ARTICLE VI.
  
    ADMINISTRATION AND PLAN FIDUCIARIES    
    

        6.1    Plan Sponsor.    The Employer is the "plan sponsor" within the meaning of ERISA. 

        6.2    Plan Administrator.    The Administrative Committee is the "administrator" of the Plan
(the "Plan Administrator") within the meaning of ERISA. 

        6.3    Administrative Responsibility.    The Plan Administrator shall be the named fiduciary
with the power and sole discretion to determine who is eligible for benefits under the Plan, to interpret the Plan and to prescribe such forms, make such rules, regulations, interpretations and
computations and prescribe such guidelines as it may determine are necessary or appropriate for the operation and administration of the Plan, to change the terms of such rules, regulations or
guidelines, and to rescind such rules, regulations or guidelines. Such determinations of eligibility, rules, regulations, interpretations, computations and guidelines shall be conclusive and binding
upon all persons. 

        6.4    Review of Denied Claims.    The Plan Administrator shall have the discretionary
authority to review an appeal from a denial of benefits under the Plan in accordance with Section 7.2. The Plan Administrator shall determine conclusively for all parties all questions arising
with respect to an appeal from a denial
of benefits under the Plan, and any decision of the Plan Administrator shall not be subject to further review. 

        6.5    Named Fiduciaries.    The Plan Administrator is the "named fiduciary" of the Plan
within the meaning of ERISA. 

        6.6    Allocation and Delegation of Responsibilities.    The Plan Administrator may allocate
any of its responsibilities for the operation and administration of the Plan among the officers, employees and agents of the Participating Employers. It may also delegate any of its responsibilities
under the Plan by designating, in writing, another person to carry out such responsibilities. Any such written delegation shall become effective when executed by the Plan Administrator, and the
designated person shall then be responsible for carrying out the responsibilities described in such writing. 

7

 

        6.7    Indemnification.    To the extent permitted by law, the applicable Participating
Employer shall, and hereby does, indemnify and hold harmless the members of the Board of Directors of the Participating Employer, the officers of the Participating Employer, the members of the
Administrative Committee as Plan Administrator, and any other employees or representative of the Participating Employer who may be deemed to be fiduciaries of the Plan, from and against any and all
losses, claims, damages or liabilities (including attorney's fees and amounts paid, with the approval of the Board of Directors of the Employer, in settlement of any claim) arising out of or resulting
from the implementation of a duty, act or decision with respect to the Plan, so long as such duty, act or decision does not involve gross negligence or willful misconduct on the part of any such
individual. Any individual person so indemnified shall, within 60 days after receipt of notice of any action, suit or proceeding, notify the Employer and offer in writing to the Employer the
opportunity at its own expense, to handle and defend such action, suit or proceeding, and the Employer shall have the right, but not the obligation, to conduct the defense in any such action, suit or
proceeding. Failure to give the Employer such notice shall relieve the Employer of any liability under this Section 6.7. The Participating Employers may satisfy their obligations under this
provision (in whole or in part) by the purchase of a policy or policies of insurance. 

 
 

ARTICLE VII.
  
    CLAIMS AND APPEALS    
    

        7.1    Claims for Benefits.    Any claimant (or his or her authorized representative) who
believes himself or herself to be entitled to receive benefits under the Plan, or benefits that are different from the benefits that he or she has received, may submit a claim for such benefits by
writing to the Director of Human Resources of the Employer (the "Claims Reviewer"). 

	(a)
	Time Limits for Submission of Initial Claim.    No claim shall be valid unless it is submitted within 90 days
following the receipt of any disputed benefit.

	(b)
	Time Limits for Decision on Initial Claim.    If any claim is denied, in whole or in part, written notice of such denial
shall be given to the claimant within 90 days, except that, if special circumstances require that the time for consideration of the claim be extended, notice of the extension shall be given in
writing within 90 days, and notice of such denial shall thereafter be given within 180 days. Each period of 90 or 180 days referred to in the preceding sentence shall begin to run
on the day the claim is received by the Claims Reviewer. A written notice of denial shall set forth, in a manner calculated to be understood by the claimant, specific reasons for the denial, specific
references to the Plan provisions on which it is based, a description of any information or material necessary to perfect the claim and an explanation of why such material is necessary, an explanation
of the Plan's review procedure and a statement regarding the claimant's right to bring a civil action under section 502(a) of ERISA following the denial of an appeal under Section 7.2. A
notice that additional time is necessary for consideration of a claim shall indicate the special circumstances requiring the extension of time and the date by which the Claims Reviewer expects to
render his or her decision on the claim. 

        7.2    Review of Denied Claims.    Whenever a claim for benefits has been denied, in whole or
in part, pursuant to Section 7.1, the claimant shall have the right to request a full and fair review of the claim and denial by submitting a written request for review to the Plan
Administrator, at the following address: "Plan Administrator, Union Bank of California, N.A. Separation Pay Plan, c/o Director of Human Resources, Union Bank of California, N.A., 400 California
Street, San Francisco, California 94104." A request for review shall set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the claimant
deems pertinent. The Plan Administrator may require the claimant to submit such additional facts, documents or other material it may deem 

8

 

necessary
or appropriate in making its review. The claimant may submit written comments, documents, records and other information related to the benefit claim on appeal. The claimant must be provided,
upon request and free of charge, reasonable access to and copies of all documents, records and other information relevant to the benefit claim that are not privileged. A document is considered
relevant to the claim if it (i) was relied upon in making the benefit determination; (ii) was submitted, considered or generated in the course of making the benefit determination,
without regard as to whether it was relied upon making the decision; or (iii) demonstrates compliance in making the benefit decision with the requirement that the benefit determination must
follow the terms of the Plan and be consistent when applied to similarly situated claimants. 

	(a)
	Time Limits for Submission of Request for Review.    The Plan Administrator shall have no obligation to provide a review of
any claim that has been denied under Section 7.1, unless a written request for review is submitted within 90 days following the initial denial.

	(b)
	Decision on Review.    If the Plan Administrator affirms the denial of a claim, in whole or in part, it shall give written
notice of its decision to the claimant within 60 days, except that, if special circumstances require that the time for consideration of the request for review be extended, notice of the
extension shall be given in writing within 60 days, and notice of such decision shall be given within 120 days. This notice of extension shall indicate the special circumstances
requiring the extension of time and the date by which the Plan Administrator expects to render its decision on the application for benefits. Each period of 60 or 120 days referred to in this
paragraph shall begin to run on the day the claim is received by the Plan Administrator. A written notice affirming the denial of a claim shall set forth, in a manner calculated to be understood by
the claimant, the specific reasons for the denial, specific references to the Plan provisions on which it is based, a statement that the claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of all documents, records and other information relevant to the benefit claim and a statement regarding the claimant's right to bring a civil action under
section 502(a) of ERISA following the denial of the appeal. A document is considered relevant to the claim if it (i) was relied upon in making the benefit determination; (ii) was
submitted, considered or generated in the course of making the benefit determination, without regard as to whether it was relied upon making the decision; or (iii) demonstrates compliance in
making the benefit decision with the requirement that the benefit determination must follow the terms of the Plan and be consistent when applied to similarly situated claimants, and a statement
regarding the claimant's right to bring a civil action under section 502(a) of ERISA following the denial of the appeal. 

        7.3    Exhaustion of Remedies.    No legal action for benefits under the Plan shall be brought
unless and until the claimant (i) has submitted a written claim in accordance with this Section 7.1(a), (ii) has been notified that the claim is denied, (iii) has filed a
written request for review of the claim in accordance with Section 7.2, and (iv) has been notified in writing that the Plan Administrator has affirmed the denial of the claim. 

 
 

ARTICLE VIII.
  
    GENERAL PROVISIONS    
    

        8.1    Legal Construction of the Plan.    The Plan shall be governed and construed in
accordance with ERISA. 

        8.2    No Rights Created or Accrued.    Nothing in the Plan shall be construed as giving to an
employee of any Participating Employer a right to receive any benefit other than the benefits specifically provided under the terms of the Plan. Nothing in the Plan shall be construed to limit in any
manner the right of any Participating Employer to discharge, demote, downgrade, transfer, relocate, or in any other manner treat or deal with any person in its employ, without regard to the effect
such 

9

 

treatment
or dealing may have upon such person as someone who might otherwise have become (or remained) a Participant in the Plan, which right is hereby reserved. No benefits shall be deemed to accrue
under the Plan at any time except the time at which they become payable under the Plan, no right to a benefit under the Plan shall be deemed to vest prior to the Participant's Termination Date, and
any vested benefit is subject to such forfeiture conditions established by the Employer in its sole discretion under this Plan or pursuant to written guidelines. 

        8.3    Benefits Not Contingent Upon Retirement.    No right to a benefit under the Plan shall
depend (or shall be deemed to depend) upon whether a Participant retires or elects to receive retirement benefits under the terms of any employee pension benefit plan. 

        8.4    Relation of the Plan to Descriptive Matter.    The Plan shall contain no terms or
provisions except those set forth herein, or as hereafter amended in accordance with the provisions of Article IX. If any description made in any other document is deemed to be in conflict with
any provision of the Plan, the provisions of the Plan shall control. 

        8.5    Nonalienation of Benefits.    No benefits payable under the Plan shall be subject to
anticipation, alienation, sale, transfer, assignment, pledge or other encumbrance, and any attempt to do so shall be void and unenforceable. 

 
 

ARTICLE IX.
  
    AMENDMENT, SUSPENSION AND TERMINATION    
    

        9.1    Amendment, Suspension and Termination.    The Employer reserves the right to amend,
suspend or terminate the Plan, in whole or in part, and for any reason by action of its Board of Directors. 

        9.2    Participating Employer Withdrawal.    Each Participating Employer may withdraw its
participation in the Plan by action of its board of directors and, as of withdrawal date set by the board of directors, the employees of the Participating Employer shall not be Eligible Employees
under the Plan. 

        9.3    Effect of Amendment, Suspension, Termination or Withdrawal.    If a Participant's
Termination Date has occurred and the Participant is entitled to receive benefits under the Plan, no amendment to the Plan, no suspension of the Plan, no termination of the Plan, and no withdrawal
from the Plan shall thereafter operate to diminish or eliminate such Participant's entitlement to such benefits. 

 
 

ARTICLE X.
  
    EXECUTION    
    

        To record the adoption of the Plan, the Director of Human Resources of the Employer has executed this document on this 23rd day of October, 2007. 

	 	 	UNION BANK OF CALIFORNIA, N.A.
	

 	
 	
By:	

/s/ Paul E. Fearer
 Paul E. Fearer, Executive Vice President
 Director of Human Resources

10

 

 

 
 

SEPARATION PAY PLAN (ENHANCED PLAN)
  
    BENEFITS EXHIBIT    
    

POLICY MAKING OFFICER LEVEL:  

	

	POLICY MAKING OFFICER LEVEL
	

	 
	

	All Policy-Making Officers will be eligible to receive 104 weeks of Salary Continuation regardless of number of years of service
	

	 
	

 
 

ADDITIONAL BENEFITS FOR POLICY MAKING OFFICERS    
    

        Policy Making Officers may receive a pro rata share of incentive or bonus pay for which they normally would have been eligible, but only for services performed up
to the Termination Date and for that calendar year. For example, if a Policy Making Officer participates in a departmental incentive pay plan and his/her Termination Date falls on October 31 of
the applicable calendar year, he/she shall be
eligible for a prorated incentive payment of 10/12 of the individual amount which could have been awarded under the incentive plan for that calendar year, in the absence of a
termination of employment. 

        In
addition, for Policy Making Officers who are participants in an incentive pay plan, or the Senior Management Bonus Plan, an amount of 1/52 of the average of the last 3
annual bonuses/payments the employee actually received, will be added to the employee's weekly base pay for each week the employee receives salary continuation. For those affected employees who have
actually received bonuses/payments for fewer than the three years, an average will be calculated for the number of years they have actually received a bonus/payment, and then 1/52 of
this amount will be added to the base pay to calculate the amount of weekly salary continuation. For example, if a Policy Making Officer received bonuses over the last three years of $10,000, $5,000
and $15,000, the average bonus for that period is $10,000. This number is then divided by 52 (weeks) to arrive at the amount to be added to the weekly base pay for the employee. However, in no
instance will the bonus average used to calculate the amount to be added to base pay on a pro-rated basis exceed 100% of annual base pay. 

A-1

QuickLinks

EXHIBIT 10.32

UNION BANK OF CALIFORNIA, N.A. SEPARATION PAY PLAN (Effective January 1, 2008)

UNION BANK OF CALIFORNIA, N.A. SEPARATION PAY PLAN INTRODUCTION

ARTICLE I. DEFINITIONS

ARTICLE II. PARTICIPATION

ARTICLE III. SEPARATION BENEFITS

ARTICLE IV. WELFARE BENEFITS

ARTICLE V. SOURCE OF PAYMENTS AND EXPENSES

ARTICLE VI. ADMINISTRATION AND PLAN FIDUCIARIES

ARTICLE VII. CLAIMS AND APPEALS

ARTICLE VIII. GENERAL PROVISIONS

ARTICLE IX. AMENDMENT, SUSPENSION AND TERMINATION

ARTICLE X. EXECUTION

SEPARATION PAY PLAN (ENHANCED PLAN) BENEFITS EXHIBIT

ADDITIONAL BENEFITS FOR POLICY MAKING OFFICERS

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