{"id":39970,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/form-of-notice-and-restricted-stock-unit-award-schwab.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"form-of-notice-and-restricted-stock-unit-award-schwab","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/form-of-notice-and-restricted-stock-unit-award-schwab.html","title":{"rendered":"Form of Notice and Restricted Stock Unit Award &#8211; Schwab"},"content":{"rendered":"<p align=\"center\"><strong>THE CHARLES SCHWAB CORPORATION <\/strong><\/p>\n<p align=\"center\"><strong>2004 STOCK INCENTIVE PLAN <\/strong><\/p>\n<p align=\"center\"><strong>NOTICE OF NON-EMPLOYEE DIRECTOR <\/strong><\/p>\n<p align=\"center\"><strong>RETAINER RESTRICTED STOCK UNIT AWARD <\/strong><\/p>\n<\/p>\n<p>You have been granted Restricted Stock Units. A Restricted Stock Unit<br \/>\nrepresents the right to receive, subject to certain conditions, a share of<br \/>\nCommon Stock of The Charles Schwab Corporation (&#8220;<em>Schwab<\/em>&#8220;), under The<br \/>\nCharles Schwab Corporation 2004 Stock Incentive Plan (the &#8220;<em>Plan<\/em>&#8220;). Your<br \/>\nRestricted Stock Units are granted subject to the following terms:<\/p>\n<\/p>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"2%\" valign=\"bottom\"><\/td>\n<td width=\"80%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Name of Recipient:<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Total Number of Restricted Stock Units<br \/>\nGranted:<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Fair Market Value per Restricted Stock Unit:<\/strong>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Fair Market Value of the Award:<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Grant Date:<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Vesting Schedule:<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>So long as you remain in service in good standing and subject to the terms of<br \/>\nthe Restricted Stock Unit Agreement, the Restricted Stock Units subject to this<br \/>\naward will become vested and distributable on the following dates and in the<br \/>\nfollowing amounts, subject to the restrictions below:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table align=\"center\" width=\"68%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"74%\"><\/td>\n<td width=\"25%\" valign=\"bottom\"><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\">\n<p align=\"center\">Vesting Date<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Percentage of the Total <br \/>\nNumber of Restricted <br \/>\nStock Units Granted under <br \/>\nthis Award That Will Vest<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p align=\"center\">1<sup>st<\/sup> Anniversary of Grant Date<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>25%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p align=\"center\">2<sup>nd<\/sup> Anniversary of Grant Date<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>25%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p align=\"center\">3<sup>rd<\/sup> Anniversary of Grant Date<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>50%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<p>Restricted Stock Units are an unfunded and unsecured obligation of Schwab.<br \/>\nAny vested Restricted Stock Units will be paid in shares of Common Stock of The<br \/>\nCharles Schwab Corporation (&#8220;<em>Shares<\/em>&#8220;) as provided in the Restricted<br \/>\nStock Unit Agreement.<\/p>\n<\/p>\n<p>You and Schwab agree that this award is granted under and governed by the<br \/>\nterms and conditions of the Plan and the Restricted Stock Unit Agreement, both<br \/>\nof which are made a part of this notice. Please review the Restricted Stock Unit<br \/>\nAgreement and the Plan carefully, as they explain the terms and conditions of<br \/>\nthis award. You agree that Schwab may deliver electronically all documents<br \/>\nrelating to the Plan or this award (including, without limitation, prospectuses<br \/>\nrequired by the Securities and Exchange Commission) and all other documents that<br \/>\nSchwab is required to deliver to its stockholders. By accepting this award, you<br \/>\nagree to all of the terms and conditions described above, in the Restricted<br \/>\nStock Unit Agreement and in the Plan.<\/p>\n<\/p>\n<p align=\"center\">2<\/p>\n<hr>\n<p align=\"center\"><strong>THE CHARLES SCHWAB CORPORATION <\/strong><\/p>\n<p align=\"center\"><strong>2004 STOCK INCENTIVE PLAN <\/strong><\/p>\n<p align=\"center\"><strong>NON-EMPLOYEE DIRECTOR RESTRICTED STOCK UNIT AGREEMENT<br \/>\n<\/strong><\/p>\n<\/p>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"78%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Payment for Units<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>No payment is required for the Restricted Stock Units that you are receiving.<br \/>\nRestricted Stock Units are an unfunded and unsecured obligation of Schwab.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Vesting<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>Subject to the provisions of this Agreement, a Restricted Stock Unit becomes<br \/>\nvested and distributable as of the earliest of the following:<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(1)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>The applicable Vesting Date for the Restricted Stock Unit indicated in the<br \/>\nNotice of Restricted Stock Unit Award.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(2)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Your death.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(3)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Your disability.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(4)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Your separation from service, if the separation qualifies as a retirement.\n<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(5)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>A change in control.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>If you become a common-law employee of Schwab or a subsidiary of Schwab (and<br \/>\n&#8220;<u><em>subsidiary<\/em><\/u>&#8221; means a subsidiary corporation as defined in<br \/>\nsection 424(f) of the Internal Revenue Code of 1986, as amended (the<br \/>\n&#8220;<u><em>Code<\/em><\/u>&#8220;)), then the Restricted Stock Units will continue to vest<br \/>\nas described in the Notice of Restricted Stock Unit Award so long as you<br \/>\ncontinue as either a non-employee director or an employee of Schwab or its<br \/>\nsubsidiaries.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>Unvested units will be considered &#8220;<u><em>Restricted Stock Units<\/em>.<\/u>&#8221;<br \/>\nIf your service terminates for any reason, then your Restricted Stock Units will<br \/>\nbe forfeited to the extent that they have not vested before the termination date<br \/>\nand do not vest as a result of the termination. This means that the Restricted<br \/>\nStock Units will immediately revert to Schwab. You will receive no payment for<br \/>\nRestricted Stock Units that are forfeited. Schwab determines when your service<br \/>\nterminates for this purpose.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Definition of Fair Market Value<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>Fair market value means the average of the high and low price of a Share (as<br \/>\ndefined below) as reported on NASDAQ on the applicable determination date.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">3<\/p>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"78%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Definition of Disability<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>For all purposes of this Agreement, &#8220;<u><em>disability<\/em><\/u>&#8221; means that<br \/>\nyou have a disability that qualifies as such under section 409A of the Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Definition of Retirement<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>For all purposes of this Agreement, <em>&#8220;<u>retirement<\/u>&#8220;<\/em> means your<br \/>\nresignation or removal from the Board at any time after you have attained age 70<br \/>\nor completed 5 years of service as a non-employee director.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Definition of Change in Control<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>For all purposes of this Agreement, &#8220;<em><u>change in control<\/u><\/em>&#8221; means<br \/>\nan event that qualifies as a change in control event under section 409A of the<br \/>\nCode and as a change in control as defined in the Plan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Definition of Separation From Service<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>For all purposes of this Agreement, &#8220;<em><u>separation from<br \/>\nservice<\/u><\/em>&#8221; means a separation from service as defined under section 409A<br \/>\nof the Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Payment of Shares<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>Any vested Restricted Stock Units will be paid in shares of common stock of<br \/>\nThe Charles Schwab Corporation (&#8220;<em>Shares<\/em>&#8220;) as provided herein. Shares<br \/>\nthat have become vested and distributable under this Agreement shall be<br \/>\ndistributed as follows:<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(1)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>Shares that vest and become distributable on a Vesting Date shall be<br \/>\ndistributed within 30 days of the Vesting Date.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(2)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>Shares that vest and become distributable on death, disability or a change in<br \/>\ncontrol shall be distributable within 90 days of such event.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>(3)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>Shares that vest and become distributable on a separation from service that<br \/>\nqualifies as a retirement shall be distributed within 90 days of the separation<br \/>\nfrom service. Notwithstanding the foregoing, if at the time of your separation<br \/>\nfrom service, you are a &#8220;specified employee&#8221;, you will receive your Shares six<br \/>\nmonths after your separation from service. &#8220;Specified Employee&#8221; means a<br \/>\n&#8220;specified employee&#8221; within the meaning of section 409A of the Code and any<br \/>\nregulatory guidance promulgated thereunder, provided that in determining the<br \/>\ncompensation of individuals for this purpose, the definition of compensation in<br \/>\nTreas. Reg.  \u00a7 1.415(c)-2(d)(2) shall be used.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">4<\/p>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"78%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Restrictions on Restricted Stock Units<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>You may not sell, transfer, pledge or otherwise dispose of any Restricted<br \/>\nStock Units without Schwab153s written consent. Schwab will deliver Shares to you<br \/>\nonly after the Restricted Stock Units vest and after all other terms and<br \/>\nconditions in this Agreement have been satisfied.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>You may make a gift of Restricted Stock Units to your spouse, children or<br \/>\ngrandchildren or to a trust established by you for the benefit of yourself or<br \/>\nyour spouse, children or grandchildren. However, a transferee of Restricted<br \/>\nStock Units must agree in writing on a form prescribed by Schwab to be bound by<br \/>\nall provisions of this Agreement as a condition for the transfer prior to the<br \/>\nRestricted Stock Units becoming vested.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Delivery of Shares After Death<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>In the event that Shares are distributable upon your death, the Shares will<br \/>\nbe delivered to your beneficiary or beneficiaries. You may designate one or more<br \/>\nbeneficiaries by filing a beneficiary designation form. You may change your<br \/>\nbeneficiary designation by filing a new form with Schwab at any time prior to<br \/>\nyour death. If you do not designate a beneficiary or if your designated<br \/>\nbeneficiary predeceases you, then your Shares will be delivered to your estate.\n<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Restrictions on Resale<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>You agree not to sell any Shares at a time when applicable laws, Schwab153s<br \/>\npolicies or an agreement between Schwab and its underwriters prohibit a sale.<br \/>\nThis restriction will apply as long as your service continues and for such<br \/>\nperiod of time after the termination of your service as Schwab may specify.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>No Stockholder Rights<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>Your Restricted Stock Units carry no voting or other stockholder rights. You<br \/>\nhave no rights as a Schwab stockholder until your Restricted Stock Units are<br \/>\nsettled by issuing Shares.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Contribution of Par Value<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>On your behalf, Schwab will contribute to its capital an amount equal to the<br \/>\npar value of the Shares issued to you.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Dividend Equivalent Rights<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>If Schwab pays cash dividends on Shares, you will receive cash equal to the<br \/>\ndividend per Share multiplied by the number of unvested Restricted Stock Units.<br \/>\nEach such payment shall be made as soon as practicable following the payment of<br \/>\nthe actual dividend, but in no event beyond March 15<sup>th<\/sup> of the year<br \/>\nfollowing the year the actual dividend is paid.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">5<\/p>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"78%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>No Right to Remain Employee or Director<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>Nothing in this Agreement will be construed as giving you the right to be<br \/>\nretained as an employee, contingent worker or director of Schwab and its<br \/>\nsubsidiaries for any specific duration or at all.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Limitation on Payments<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>If a payment from the Plan would constitute an excess parachute payment under<br \/>\n280G of the Code or if there have been certain securities law violations, then<br \/>\nyour award may be reduced or forfeited and you may be required to disgorge any<br \/>\nprofit that you have realized from your award.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>If a disqualified individual receives a payment or transfer under the Plan<br \/>\nthat would constitute an excess parachute payment under 280G of the Code, such<br \/>\npayment will be reduced, as described below. Generally, someone is a<br \/>\n&#8220;<u><em>disqualified individual<\/em><\/u>&#8221; if he or she is (a) an officer of<br \/>\nSchwab, (b) a member of the group consisting of the highest paid 1% of the<br \/>\nemployees of Schwab or, if less, the highest paid 250 employees of Schwab, or<br \/>\n(c) a 1% stockholder of Schwab. For purposes of the section on &#8220;Limitation on<br \/>\nPayments,&#8221; the term &#8220;<em><u>Schwab<\/u><\/em>&#8221; will include affiliated<br \/>\ncorporations to the extent determined by the independent auditors most recently<br \/>\nselected by the Schwab Board of Directors (the &#8220;<em><u>Auditors<\/u><\/em>&#8220;) in<br \/>\naccordance with section 280G(d)(5) of the Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>In the event that the Auditors determine that any payment or transfer in the<br \/>\nnature of compensation to or for your benefit, whether paid or payable (or<br \/>\ntransferred or transferable) pursuant to the terms of the Plan or otherwise (a<br \/>\n&#8220;<u><em>Payment<\/em><\/u>&#8220;), would be nondeductible for federal income tax<br \/>\npurposes because of the provisions concerning &#8220;excess parachute payments&#8221; in<br \/>\nsection 280G of the Code, then the aggregate present value of all Payments will<br \/>\nbe reduced (but not below zero) to the Reduced Amount; provided, however, that<br \/>\nthe Compensation Committee may specify in writing that the award will not be so<br \/>\nreduced and will not be subject to reduction under this section.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>For this purpose, the &#8220;<u><em>Reduced Amount<\/em><\/u>&#8221; will be the amount,<br \/>\nexpressed as a present value, which maximizes the aggregate present value of the<br \/>\nPayments without causing any Payment to be nondeductible by Schwab because of<br \/>\nsection 280G of the Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>If the Auditors determine that any Payment would be nondeductible because of<br \/>\nsection 280G of the Code, then Schwab will promptly give you notice to that<br \/>\neffect and a copy of the detailed calculation of the Reduced Amount. The<br \/>\nAuditors will determine which and how much of the Payments will be eliminated or<br \/>\nreduced (such that the aggregate present value of<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">6<\/p>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"78%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>the Payments equals the Reduced Amount). Schwab will notify you promptly of<br \/>\nthe Auditor153s determination. Present value will be determined in accordance with<br \/>\nsection 280G(d)(4) of the Code. The Auditors153 determinations will be binding<br \/>\nupon you and Schwab and will be made within 60 days of the date when a Payment<br \/>\nbecomes payable or transferable.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>As a result of uncertainty in the application of section 280G of the Code at<br \/>\nthe time of an initial determination by the Auditors, it is possible that<br \/>\nPayments will have been made by Schwab which should not have been made (an<br \/>\n&#8220;<u><em>Overpayment<\/em><\/u>&#8220;) or that additional Payments which will not have<br \/>\nbeen made by Schwab could have been made (an &#8220;<u><em>Underpayment<\/em><\/u>&#8220;),<br \/>\nconsistent in each case with the calculation of the Reduced Amount. In the event<br \/>\nthat the Auditors, based upon the assertion of a deficiency by the Internal<br \/>\nRevenue Service against you or Schwab which the Auditors believe has a high<br \/>\nprobability of success, determine that an Overpayment has been made, the amount<br \/>\nof such Overpayment will be paid by you to Schwab on demand, together with<br \/>\ninterest at the applicable federal rate provided in section 7872(f)(2) of the<br \/>\nCode. However, no amount will be payable by you to Schwab if and to the extent<br \/>\nthat such payment would not reduce the amount which is subject to taxation under<br \/>\nsection 4999 of the Code. In the event that the Auditors determine that an<br \/>\nUnderpayment has occurred, such Underpayment will promptly be paid or<br \/>\ntransferred by Schwab to or for your benefit, together with interest at the<br \/>\napplicable federal rate provided in section 7872(f)(2) of the Code, provided<br \/>\nthat no such Underpayment related to Shares distributable under this Agreement<br \/>\nshall be paid beyond the deadline for making such payments under section 409A of<br \/>\nthe Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Claims Procedure<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>You may file a claim for benefits under the Plan by following the procedures<br \/>\nprescribed by Schwab. If your claim is denied, generally you will receive<br \/>\nwritten or electronic notification of the denial within 90 days of the date on<br \/>\nwhich you filed the claim. If special circumstances require more time to make a<br \/>\ndecision about your claim, you will receive notification of when you may expect<br \/>\na decision. You may appeal the denial by submitting to the Plan Administrator a<br \/>\nwritten request for review within 30 days of receiving notification of the<br \/>\ndenial. Your request should include all facts upon which your appeal is based.<br \/>\nGenerally, the Plan Administrator will provide you with written or electronic<br \/>\nnotification of its decision within 90 days after receiving the review request.<br \/>\nIf special circumstances require more time to make a decision about your<br \/>\nrequest, you will receive notification<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">7<\/p>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"18%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"78%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>of when you may expect a decision.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Plan Administration<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>The Plan Administrator has discretionary authority to make all determinations<br \/>\nrelated to this award and to construe the terms of the Plan, the Notice of<br \/>\nRestricted Stock Unit Award and this Agreement. The Plan Administrator153s<br \/>\ndeterminations are conclusive and binding on all persons.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Adjustments<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>In the event of a stock split, a stock dividend or a similar change in Schwab<br \/>\nstock, the number of Restricted Stock Units that remain subject to forfeiture<br \/>\nwill be adjusted accordingly.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Severability<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>In the event that any provision of this Agreement is held invalid or<br \/>\nunenforceable, the provision will be severable from, and such invalidity or<br \/>\nunenforceability will not be construed to have any effect on, the remaining<br \/>\nprovisions of this Agreement.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Applicable Law<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>This Agreement will be interpreted and enforced under the laws of the State<br \/>\nof Delaware (without regard to their choice-of-law provisions), as such laws are<br \/>\napplied to contracts entered into and performed in Delaware.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>The Plan and Other Agreements<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p>The text of the Plan is incorporated in this Agreement by reference. This<br \/>\nAgreement, the Notice of Restricted Stock Unit Award and the Plan constitute the<br \/>\nentire understanding between you and Schwab regarding this award. Any prior<br \/>\nagreements, commitments or negotiations concerning this award are superseded.<br \/>\nThis Agreement may be amended only by another written agreement, signed by both<br \/>\nparties and approved by the Compensation Committee. If there is any<br \/>\ninconsistency or conflict between any provision of this Agreement and the Plan,<br \/>\nthe terms of the Plan will control.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\"><strong>BY ACCEPTING THIS AWARD, YOU AGREE TO ALL OF THE TERMS<br \/>\nAND<\/strong> <strong>CONDITIONS DESCRIBED ABOVE AND IN THE PLAN. <\/strong><\/p>\n<\/p>\n<p align=\"center\">8<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8775],"corporate_contracts_industries":[9418],"corporate_contracts_types":[9539,9545],"class_list":["post-39970","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-schwab-charles-corp","corporate_contracts_industries-financial__securities","corporate_contracts_types-compensation","corporate_contracts_types-compensation__esp"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39970"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39970"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39970"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}