{"id":40199,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/notice-of-restricted-stock-unit-award-schwab.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"notice-of-restricted-stock-unit-award-schwab","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/notice-of-restricted-stock-unit-award-schwab.html","title":{"rendered":"Notice of 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 RESTRICTED STOCK UNIT AWARD <\/strong><\/p>\n<p align=\"justify\">You have been granted Restricted Stock Units. A Restricted<br \/>\nStock Unit represents the right to receive, subject to certain conditions, a<br \/>\nshare of Common Stock of The Charles Schwab Corporation (&#8220;<em>Schwab<\/em>&#8220;),<br \/>\nunder The Charles Schwab Corporation 2004 Stock Incentive Plan (the<br \/>\n&#8220;<em>Plan<\/em>&#8220;). Your Restricted Stock Units are granted subject to the<br \/>\nfollowing terms:<\/p>\n<\/p>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"75%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\"><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=\"bottom\">\n<p><strong>Total Number of <br \/>\nRestricted  Stock  Units<\/strong><\/p>\n<p><strong>Granted:<\/strong><\/p>\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=\"bottom\">\n<p><strong>Fair  Market  Value  per<\/strong><\/p>\n<p><strong>Restricted  Stock  Unit:<\/strong><\/p>\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=\"bottom\"><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 align=\"justify\">So long as you remain in service in good standing and subject<br \/>\nto the terms of the Restricted Stock Unit Agreement, the Restricted Stock Units<br \/>\nsubject to this award will become vested and distributable on the following<br \/>\ndates and in the following amounts, subject to the restrictions below:<\/p>\n<p align=\"justify\"><u>Number of Restricted Stock Units on Vesting Date<\/u>:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"justify\">Restricted Stock Units are an unfunded and unsecured<br \/>\nobligation of Schwab. Any vested Restricted Stock Units will be paid in shares<br \/>\nof Common Stock of The Charles Schwab Corporation (&#8220;<em>Shares<\/em>&#8220;) as<br \/>\nprovided in the Restricted Stock Unit Agreement.<\/p>\n<p align=\"justify\">You and Schwab agree that this award is granted under and<br \/>\ngoverned by the terms and conditions of the Plan and the Restricted Stock Unit<br \/>\nAgreement, both of which are made a part of this notice. Please review the<br \/>\nRestricted Stock Unit Agreement and the Plan carefully, as they explain the<br \/>\nterms and conditions of this award. You agree that Schwab may deliver<br \/>\nelectronically all documents relating to the Plan or this award (including,<br \/>\nwithout limitation, prospectuses required by the Securities and Exchange<br \/>\nCommission) and all other documents that Schwab is required to deliver to its<br \/>\nstockholders. By accepting this award, you agree to all of the terms and<br \/>\nconditions described above, in<\/p>\n<\/p>\n<hr>\n<p align=\"justify\">the Restricted Stock Unit Agreement and in the Plan, and you<br \/>\nhave no right whatsoever to change or negotiate such terms and conditions.<\/p>\n<\/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>RESTRICTED STOCK UNIT AGREEMENT <\/strong><\/p>\n<\/p>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"2%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"72%\"><\/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=\"bottom\">\n<p align=\"justify\">No payment is required for the Restricted Stock Units that<br \/>\nyou 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=\"bottom\">\n<p align=\"justify\">Subject to the provisions of this Agreement, a Restricted<br \/>\nStock 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 align=\"justify\">(1)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">The applicable Vesting Date for the Restricted Stock Unit<br \/>\nindicated 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 align=\"justify\">(2)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">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 align=\"justify\">(3)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">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 align=\"justify\">(4)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">Your separation from service, if the separation qualifies as<br \/>\na retirement or a <br \/>\nseverance eligible termination (provided that vesting shall occur upon a <br \/>\nseverance eligible termination only to the extent provided in The Charles <br \/>\nSchwab Severance Pay Plan (or any successor plan)).<\/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 align=\"justify\">(5)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">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=\"bottom\">\n<p align=\"justify\">Unvested units will be considered &#8220;<u><em>Restricted Stock<br \/>\nUnits.<\/em><\/u>&#8221; If your service terminates for any reason, then your Restricted<br \/>\nStock Units will be forfeited to the extent that they have not vested before the<br \/>\ntermination date and do not vest as a result of the termination. This means that<br \/>\nthe Restricted Stock Units will immediately revert to Schwab. You will receive<br \/>\nno payment for Restricted Stock Units that are forfeited. Schwab determines when<br \/>\nyour service terminates for this purpose. For all purposes of this Agreement,<br \/>\n&#8220;<u><em>service<\/em><\/u>&#8221; means continuous employment as a common-law employee<br \/>\nof Schwab or a parent corporation or 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;).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Definition of Fair<\/strong><\/p>\n<p><strong>Market Value<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"bottom\">\n<p align=\"justify\">Fair market value means the average of the high and low price<br \/>\nof a Share (as defined below) as reported on the New York<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"2%\" valign=\"bottom\"><\/td>\n<td><\/td>\n<td width=\"2%\" valign=\"bottom\"><\/td>\n<td width=\"72%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"bottom\">\n<p align=\"justify\">Stock Exchange on the applicable determination date.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Definition of<\/strong><\/p>\n<p><strong>Disability<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">For all purposes of this Agreement,<br \/>\n&#8220;<u><em>disability<\/em><\/u>&#8221; means that you have a disability that qualifies as<br \/>\nsuch under section 409A of the Code and due to which you have been determined to<br \/>\nbe eligible for benefits under Schwab153s long-term disability plan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Definition of<\/strong><\/p>\n<p><strong>Retirement<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">If you are an employee of Schwab and its subsidiaries,<br \/>\n&#8220;<u><em>retirement<\/em><\/u>&#8221; means a separation from service for any reason<br \/>\nother than death at any time after you attain age 55, but only if, at the time<br \/>\nof your separation, you have been credited with at least 10 years of service and<br \/>\nhave completed at least two years of service after the Grant Date indicated in<br \/>\nthe Notice of Restricted Stock Unit Award.<\/p>\n<p align=\"justify\">The phrase &#8220;<u><em>years of service<\/em><\/u>&#8221; above has the<br \/>\nsame meaning given to it under The SchwabPlan Retirement Savings and Investment<br \/>\nPlan (or any successor plan).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Definition  of  Severance<\/strong><\/p>\n<p><strong>Eligible  Termination<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">For all purposes of this Agreement, &#8220;<em><u>severance<br \/>\neligible termination<\/u><\/em>&#8221; means a separation from service entitling you to<br \/>\nseverance benefits under The Charles Schwab Severance Pay Plan (or any successor<br \/>\nplan).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Definition of Change in<\/strong><\/p>\n<p><strong>Control<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">For all purposes of this Agreement, &#8220;<em><u>change in<br \/>\ncontrol<\/u><\/em>&#8221; means an event that qualifies as a change in control event<br \/>\nunder section 409A of the Code and as a change in control as defined in the<br \/>\nPlan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Definition of<\/strong><\/p>\n<p><strong>Separation From<\/strong><\/p>\n<p><strong>Service<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">For all purposes of this Agreement, <em>&#8220;<u>separation from<br \/>\nservice<\/u>&#8220;<\/em> 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 align=\"justify\">Any vested Restricted Stock Units will be paid in shares of<br \/>\nCommon Stock of The Charles Schwab Corporation (&#8220;<em>Shares<\/em>&#8220;) as provided<br \/>\nherein. Shares that have become vested and distributable under this Agreement<br \/>\nshall be distributed 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 align=\"justify\">(1)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">Shares that vest and become distributable on a Vesting Date<br \/>\nshall be distributed 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 align=\"justify\">(2)<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">Shares that vest and become distributable on death,<br \/>\ndisability or a change in control, shall be distributable within 90 days of such<br \/>\nevent.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"74%\"><\/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 align=\"justify\">Shares that vest and become distributable on a separation<br \/>\nfrom service (either a retirement or a severance eligible termination) shall be<br \/>\ndistributed within 90 days of the separation from service. Generally, for<br \/>\nseverance eligible terminations, the distribution date shall be the &#8220;termination<br \/>\ndate&#8221; specified in the notice under The Charles Schwab Severance Pay Plan.<br \/>\nNotwithstanding the foregoing, if at the time of your separation from service,<br \/>\nyou are a &#8220;specified employee&#8221;, you will receive your Shares six months after<br \/>\nyour separation from service. &#8220;Specified Employee&#8221; means a &#8220;specified employee&#8221;<br \/>\nwithin the meaning of section 409A of the Code and any regulatory guidance<br \/>\npromulgated thereunder, provided that in determining the compensation of<br \/>\nindividuals for this purpose, the definition of compensation in Treas. Reg.<br \/>\n \u00a7  1.415(c)-2(d)(2) shall be used.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"4\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Restrictions  on<\/strong><\/p>\n<p><strong>Restricted  Stock  Units<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">You may not sell, transfer, pledge or otherwise dispose of<br \/>\nany Restricted Stock Units without Schwab153s written consent. Schwab will deliver<br \/>\nShares to you only after the Restricted Stock Units vest and after all other<br \/>\nterms and conditions in this Agreement have been satisfied.<\/p>\n<p align=\"justify\">You may make a gift of Restricted Stock Units to your spouse,<br \/>\nchildren or grandchildren or to a trust established by you for the benefit of<br \/>\nyourself or your spouse, children or grandchildren. However, a transferee of<br \/>\nRestricted Stock Units must agree in writing on a form prescribed by Schwab to<br \/>\nbe bound by all provisions of this Agreement as a condition for the transfer<br \/>\nprior to the Restricted 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\">\n<p><strong>Delivery of Shares<\/strong><\/p>\n<p><strong>After Death<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td colspan=\"3\" valign=\"top\">\n<p align=\"justify\">In the event that Shares are distributable upon your death,<br \/>\nthe Shares will be delivered to your beneficiary or beneficiaries. You may<br \/>\ndesignate one or more beneficiaries by filing a beneficiary designation form.<br \/>\nYou may change your beneficiary designation by filing a new form with Schwab at<br \/>\nany time prior to your death. If you do not designate a beneficiary or if your<br \/>\ndesignated beneficiary predeceases you, then your Shares will be delivered to<br \/>\nyour estate.<\/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 align=\"justify\">You agree not to sell any Shares at a time when applicable<br \/>\nlaws, Schwab153s policies or an agreement between Schwab and its underwriters<br \/>\nprohibit a sale. This restriction will apply as<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"75%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">long as your service continues and for such period of time<br \/>\nafter the termination of <br \/>\nyour service as Schwab may specify.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Withholding Taxes<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">Shares will not be distributed unless you have made<br \/>\nacceptable arrangements to pay any applicable withholding taxes that may be due<br \/>\nas a result of the distribution. With Schwab153s consent, these arrangements may<br \/>\ninclude without limitation withholding Shares that otherwise would be<br \/>\ndistributed to you. In its sole discretion, Schwab may withhold the minimum<br \/>\nnumber of whole Shares, valued at the fair market value on the Vesting Date,<br \/>\nrequired to satisfy such applicable withholding taxes. Any residual amount of<br \/>\napplicable withholding taxes, i.e., amounts of less than the fair market value<br \/>\nof a Share, may be deducted from your pay. Notwithstanding the foregoing, any<br \/>\nwithholding taxes due prior to distribution of Shares (e.g., under section<br \/>\n3121(v)(2) of the Code) shall be automatically deducted from your pay, and you<br \/>\nmay not make any election as to how these withholding taxes are paid. If<br \/>\nwithholding taxes are due and you have terminated employment, applicable<br \/>\nwithholding taxes will be deducted from your Schwab brokerage account. You are<br \/>\nresponsible for having sufficient funds in your Schwab brokerage account to<br \/>\ncover these withholding taxes at the time they are due.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>No  Stockholder  Rights<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">Your Restricted Stock Units carry no voting or other<br \/>\nstockholder rights. You have no rights as a Schwab stockholder until your<br \/>\nRestricted Stock Units are settled by issuing Shares.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Contribution  of  Par<\/strong><\/p>\n<p><strong>Value<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">On your behalf, Schwab will contribute to its capital an<br \/>\namount equal to the par value of the Shares issued to you.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Dividend  Equivalent<\/strong><\/p>\n<p><strong>Rights<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">If Schwab pays cash dividends on Shares, you will receive<br \/>\ncash equal to the dividend per Share multiplied by the number of unvested<br \/>\nRestricted Stock Units. Each such payment shall be made as soon as practicable<br \/>\nfollowing the payment of the actual dividend, but in no event beyond March<br \/>\n15<sup>th<\/sup> of the year following the year the actual dividend is paid.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>No  Right  to  Remain<\/strong><\/p>\n<p><strong>Employee<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p align=\"justify\">Nothing in this Agreement will be construed as giving you the<br \/>\nright to be retained as an employee, contingent worker or director of Schwab and<br \/>\nits subsidiaries for any specific duration or at all.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"75%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>Limitation on<\/strong><\/p>\n<p><strong>Payments<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">If a payment from the Plan would constitute an excess<br \/>\nparachute payment under 280G of the Code or if there have been certain<br \/>\nsecurities law violations, then your award may be reduced or forfeited and you<br \/>\nmay be required to disgorge any profit that you have realized from your award.\n<\/p>\n<p align=\"justify\">If a disqualified individual receives a payment or transfer<br \/>\nunder the Plan that would constitute an excess parachute payment under 280G of<br \/>\nthe Code, such payment will be reduced, as described below. Generally, someone<br \/>\nis a &#8220;<em><u>disqualified individual<\/u><\/em>&#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<p align=\"justify\">In the event that the Auditors determine that any payment or<br \/>\ntransfer in the nature of compensation to or for your benefit, whether paid or<br \/>\npayable (or transferred or transferable) pursuant to the terms of the Plan or<br \/>\notherwise (a &#8220;<u><em>Payment<\/em><\/u>&#8220;), would be nondeductible for federal<br \/>\nincome tax purposes because of the provisions concerning &#8220;excess parachute<br \/>\npayments&#8221; in section 280G of the Code, then the aggregate present value of all<br \/>\nPayments will be reduced (but not below zero) to the Reduced Amount; provided,<br \/>\nhowever, that the Compensation Committee may specify in writing that the award<br \/>\nwill not be so reduced and will not be subject to reduction under this section.\n<\/p>\n<p align=\"justify\">For this purpose, the &#8220;<em><u>Reduced Amount<\/u><\/em>&#8221; will<br \/>\nbe the amount, expressed as a present value, which maximizes the aggregate<br \/>\npresent value of the Payments without causing any Payment to be nondeductible by<br \/>\nSchwab because of section 280G of the Code.<\/p>\n<p align=\"justify\">If the Auditors determine that any Payment would be<br \/>\nnondeductible because of section 280G of the Code, then Schwab will promptly<br \/>\ngive you notice to that effect and a copy of the detailed calculation of the<br \/>\nReduced Amount. The Auditors will determine which and how much of the Payments<br \/>\nwill be eliminated or reduced (such that the aggregate present value of the<br \/>\nPayments equals the Reduced<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"75%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">Amount). Schwab will notify you promptly of the Auditor153s<br \/>\ndetermination. Present value will be determined in accordance with section<br \/>\n280G(d)(4) of the Code. The Auditors153 determinations will be binding upon you<br \/>\nand Schwab and will be made within 60 days of the date when a Payment becomes<br \/>\npayable or transferable.<\/p>\n<p align=\"justify\">As a result of uncertainty in the application of section 280G<br \/>\nof the Code at the time of an initial determination by the Auditors, it is<br \/>\npossible that Payments will have been made by Schwab which should not have been<br \/>\nmade (an &#8220;<em><u>Overpayment<\/u><\/em>&#8220;) or that additional Payments which will<br \/>\nnot have been made by Schwab could have been made (an<br \/>\n&#8220;<em><u>Underpayment<\/u><\/em>&#8220;), consistent in each case with the calculation of<br \/>\nthe Reduced Amount. In the event that the Auditors, based upon the assertion of<br \/>\na deficiency by the Internal Revenue Service against you or Schwab which the<br \/>\nAuditors believe has a high probability of success, determine that an<br \/>\nOverpayment has been made, the amount of such Overpayment will be paid by you to<br \/>\nSchwab on demand, together with interest at the applicable federal rate provided<br \/>\nin section 7872(f)(2) of the Code. However, no amount will be payable by you to<br \/>\nSchwab if and to the extent that such payment would not reduce the amount which<br \/>\nis subject to taxation under section 4999 of the Code. In the event that the<br \/>\nAuditors determine that an Underpayment has occurred, such Underpayment will<br \/>\npromptly be paid or transferred by Schwab to or for your benefit, together with<br \/>\ninterest at the applicable federal rate provided in section 7872(f)(2) of the<br \/>\nCode, provided that no such Underpayment related to Shares distributable under<br \/>\nthis Agreement shall be paid beyond the deadline for making such payments under<br \/>\nsection 409A of the Code.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Claims Procedure<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">You may file a claim for benefits under the Plan by following<br \/>\nthe procedures prescribed by Schwab. If your claim is denied, generally you will<br \/>\nreceive written or electronic notification of the denial within 90 days of the<br \/>\ndate on which you filed the claim. If special circumstances require more time to<br \/>\nmake a decision about your claim, you will receive notification of when you may<br \/>\nexpect a decision. You may appeal the denial by submitting to the Plan<br \/>\nAdministrator a written request for review within 30 days of receiving<br \/>\nnotification of the denial. Your request should include all facts upon which<br \/>\nyour appeal is based. Generally, the Plan Administrator will provide you with<br \/>\nwritten or electronic notification of its decision within 90 days after<br \/>\nreceiving the review request. If special<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<table align=\"center\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"24%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"75%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">circumstances require more time to make a decision about your<br \/>\nrequest, you will <br \/>\nreceive notification of when you may expect a decision.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Plan  Administration<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">The Plan Administrator has discretionary authority to make<br \/>\nall determinations related to this award and to construe the terms of the Plan,<br \/>\nthe Notice of Restricted Stock Unit Award and this Agreement. The Plan<br \/>\nAdministrator153s determinations are conclusive and binding on all persons.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Adjustments<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">In the event of a stock split, a stock dividend or a similar<br \/>\nchange in Schwab stock, the number of Restricted Stock Units that remain subject<br \/>\nto forfeiture will be adjusted accordingly.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Severability<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">In the event that any provision of this Agreement is held<br \/>\ninvalid or unenforceable, the provision will be severable from, and such<br \/>\ninvalidity or unenforceability will not be construed to have any effect on, the<br \/>\nremaining provisions of this Agreement.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><strong>Applicable Law<\/strong><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">This Agreement will be interpreted and enforced under the<br \/>\nlaws of the State of Delaware (without regard to their choice-of-law<br \/>\nprovisions), as such laws are applied to contracts entered into and performed in<br \/>\nDelaware.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p><strong>The  Plan  and  Other<\/strong><\/p>\n<p><strong>Agreements<\/strong><\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p align=\"justify\">The text of the Plan is incorporated in this Agreement by<br \/>\nreference. This Agreement, the Notice of Restricted Stock Unit Award and the<br \/>\nPlan constitute the entire understanding between you and Schwab regarding this<br \/>\naward. Any prior agreements, commitments or negotiations concerning this award<br \/>\nare superseded. This Agreement may be amended only by another written agreement,<br \/>\nsigned by both parties and approved by the Compensation Committee. If there is<br \/>\nany inconsistency or conflict between any provision of this Agreement and the<br \/>\nPlan, the terms of the Plan will control.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\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-40199","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\/40199","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=40199"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40199"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40199"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}