Unum Group (UNM)

Nonvested Stock

Compensation cost recognized for nonvested stock awards to employees was $3.3 million ($2.1 million after tax) for the three months ended September 30, 2006 and 2005. For the nine months ended September 30, 2006 and 2005, compensation cost recognized for nonvested stock awards to employees was $11.9 million and $8.6 million ($7.7 million and $5.6 million after tax), respectively. The weighted average grant date fair values for nonvested stock awards granted in the first nine months of 2006 and 2005 were $20.95 and $17.43, respectively.

Nonvested shares vest over a two to five year service period commencing upon the date of grant, and the compensation cost is recognized ratably during the vesting period. Compensation cost for stock awards subject to accelerated vesting upon retirement is recognized over the implicit service period for grants issued subsequent to 2005 and over the explicit service period (subject to acceleration upon actual retirement) for grants issued prior to 2006. We pay cash dividend equivalents on outstanding nonvested stock. Dividend equivalents paid on nonvested stock are charged to retained earnings when paid. At September 30, 2006, we had $24.3 million of unrecognized compensation cost related to nonvested stock that will be recognized over a weighted average period of 1.3 years. Prior to the adoption of SFAS 123(R), this amount was reported as additional paid-in capital and deferred compensation, a contra equity account. The value of this contra equity account at the adoption of SFAS 123(R) was $13.8 million.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

UnumProvident Corporation and Subsidiaries

September 30, 2006

Note 4 - Accounting for Stock-Based Compensation - Continued

Nonvested share activity under the plans for the first nine months of 2006 is summarized as follows:

Nonvested Stock

Compensation cost recognized for nonvested stock awards to employees was $3.6 million and $3.5 million ($2.3 million and $2.3 million after tax) for the three months ended June 30, 2006 and 2005, respectively. For the six months ended June 30, 2006 and 2005, compensation cost recognized for nonvested stock awards to employees was $8.6 million and $5.3 million ($5.5 million and $3.5 million after tax), respectively. The weighted average grant date fair values for nonvested stock awards granted in the first six months of 2006 and 2005 were $20.95 and $17.43, respectively.

Nonvested shares vest over a two to five year service period commencing upon the date of grant, and the compensation cost is recognized ratably during the vesting period. Compensation cost for stock awards subject to accelerated vesting upon retirement is recognized over the implicit service period for grants issued subsequent to 2005 and over the explicit service period (subject to acceleration upon actual retirement) for grants issued prior to 2006. We pay cash dividend equivalents on outstanding nonvested stock. Dividend equivalents paid on nonvested stock are charged to retained earnings when paid. At June 30, 2006, we had $20.7 million of unrecognized compensation cost related to nonvested stock that will be recorded over a weighted average period of 1.5 years. Prior to the adoption of SFAS 123(R), this amount was reported as additional paid-in capital and deferred compensation, a contra equity account. The value of this contra equity account at the adoption of SFAS 123(R) was $13.8 million.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

UnumProvident Corporation and Subsidiaries

June 30, 2006

Note 4 - Accounting for Stock-Based Compensation - Continued

Nonvested share activity under the plans is summarized as follows:

Nonvested Stock

Compensation cost recognized for nonvested stock awards to employees was $5.0 million and $1.8 million ($3.2 million and $1.2 million after tax) for the three months ended March 31, 2006 and 2005, respectively. The weighted average grant date fair values for nonvested stock awards granted in the first quarter of 2006 and 2005 were $20.98 and $17.43, respectively. Nonvested shares vest over a two to five year service period commencing upon the date of grant, and the compensation cost is recognized ratably during the vesting period. Compensation cost for stock

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued

UnumProvident Corporation and Subsidiaries

March 31, 2006

Note 4 - Accounting for Stock-Based Compensation - Continued

awards subject to accelerated vesting upon retirement is recognized over the implicit service period for grants issued subsequent to 2005 and over the explicit service period (subject to acceleration upon actual retirement) for grants issued prior to 2006. We pay cash dividend equivalents on outstanding nonvested stock. Dividend equivalents paid on nonvested stock are charged to retained earnings when paid. At March 31, 2006, we had $24.8 million of unrecognized compensation cost related to nonvested stock that will be recorded over a weighted average period of 1.2 years. Prior to the adoption of SFAS 123(R), this amount was reported as additional paid-in capital and deferred compensation, a contra equity account. The value of this contra equity account at the adoption of SFAS 123(R) was $13.8 million.

Nonvested share activity under the plans is summarized as follows: