Document:

Amendment No. 1 to Demand Promissory Note

 Exhibit 4.2 
 AMENDMENT NO. 1 
 TO 
 DEMAND PROMISSORY NOTE 
 Dated February 23, 2009 
 REFERENCE IS MADE TO THE DEMAND PROMISSORY NOTE (the “Note”) dated September 24, 2007 and effective as of August 10,
2007 by PREFERRED INVESTMENT SOLUTIONS CORP., a Delaware corporation (the “Maker”) to KENMAR GLOBAL TRUST, a Delaware business trust (the “Holder”). 
 Pursuant to the terms of the Note, any portion of the principal amount of the Note which has not been demanded by the Holder prior to August 31,
2009 shall be due and payable by the Maker, along with all accrued and unpaid interest thereon on August 31, 2009, unless Maker and Holder agree to an extension thereof. 
 By this Amendment No. 1, Maker and Holder agree to modify the terms of the Note such that portion of the principal amount of the Note which has not
been demanded by the Holder prior to August 31, 2010 shall be due and payable by the Maker, along with all accrued and unpaid interest thereon on August 31, 2010, unless Maker and Holder agree to an extension thereof. 
 All other terms and provisions of the Note shall remain unchanged and in full force and effect. 
 This Amendment is made in the State of New York and shall be governed by and construed in accordance with the laws of said State, without regard to
conflict of laws principles. 
 [Signature Page to Follow] 
  

 1 

 IN WITNESS WHEREOF, the Maker and the Holder have executed this Amendment as of the date first
written above. 
  

			
	PREFERRED INVESTMENT SOLUTIONS CORP.
		
	By:	 	/s/ Kenneth A. Shewer
		 	Name: Kenneth A. Shewer
		 	Title: Chairman

  
  

			
	KENMAR GLOBAL TRUST
		
	By:	 	 Preferred Investment Solutions Corp.,
 its
Managing Owner

		
		 	
		
	By:	 	/s/ Marc S. Goodman
		 	Name: Marc S. Goodman
		 	Title: President

  

 2Form of Notice and Performance-Based Restricted Stock Agreement.

 Exhibit 10.318 
 THE CHARLES SCHWAB CORPORATION 
 2004 STOCK INCENTIVE PLAN 
 NOTICE OF RESTRICTED STOCK AWARD 
 (PERFORMANCE-BASED VESTING) 
 You have been granted restricted shares of Common Stock of The Charles Schwab Corporation
(“Schwab”) under the Charles Schwab Corporation 2004 Stock Incentive Plan (the “Plan”) on the following terms: 
  

			
	Name of Recipient:	  	
		
	Total Number of Shares Granted:	  	
		
	Fair Market Value per Share:	  	
		
	Total Fair Market Value of Award:	  	
		
	Grant Date:	  	
		
	Vesting Schedule:	  	So long as you remain in service in good standing and subject to the terms of the Restricted Stock Agreement and certification of the Performance Goal by Schwab’s Compensation Committee,
this award vests on the following Vesting Dates, as follows:

 Number of Shares on Vesting Date 
  

			
	 Percentage of the Total Number of
 Shares Granted under this Award
 That Will Vest
	  	 Vesting Date

	25%	  	
	25%	  	
	25%	  	
	25%	  	

 The number of shares indicated will vest only if Schwab’s
Compensation Committee certifies that as of the Vesting Date next to the number of shares, Schwab has satisfied the Performance Goal for the applicable one-year period from October 1st
 to September 30th ending prior to such Vesting Date. 
 The Performance Goal shall be: [    ] 
 Except as otherwise provided in the Restricted Stock Agreement, if the Performance Goal is not met for any one-year period, the number of shares that otherwise would vest as of the Vesting Date for such one-year period will automatically
and permanently be forfeited. Any vested shares will be paid as soon as administratively possible. 
 You and Schwab agree that this award is granted under
and governed by the terms and conditions of the Plan and the Restricted Stock Agreement, both of which are made a part of this notice. Please review the Restricted Stock Agreement and the Plan carefully, as they explain the terms and conditions of
this award. You agree that Schwab may deliver electronically all documents relating to the Plan or this award (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that Schwab is
required to deliver to its stockholders. By accepting this award, you agree to all of the terms and conditions described above, in the Restricted Stock Agreement and in the Plan, and you have no right whatsoever to change or negotiate such terms and
conditions. 
 THE CHARLES SCHWAB CORPORATION 
 2004 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
 (PERFORMANCE-BASED VESTING) 
  

			
	Payment for Shares	  	No payment is required for the shares that you are receiving.
		
	Vesting	  	Subject to the provisions of this Agreement, this award becomes vested as described in the Notice of Restricted Stock Award, of which this Restricted Stock Agreement is a part. Unvested
shares will be considered “Restricted Shares.” If your service terminates for any reason, then your shares will automatically and permanently be forfeited to the extent that they have not vested before the termination date
and do not vest as a result of the termination, unless otherwise noted below. This means that the Restricted Shares will immediately revert to Schwab. You will receive no payment for Restricted Shares that are forfeited. Schwab determines when your
service terminates for this purpose. For all purposes of this

			
		  	Agreement, “service” means continuous employment as a common-law employee of Schwab or a parent company or subsidiary of Schwab, and
“subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”).
		
	Accelerated Vesting	  	This award, to the extent not already forfeited, will become fully vested if your service terminates on account of your death or disability. If, prior to the date your service terminates,
Schwab is subject to a “change in control” (as defined in the Plan document), this award, to the extent not already forfeited, will become fully vested as of the date that the change in control occurs.
		
	Continued Vesting	  	 If your service terminates on account of your retirement and your retirement occurs at least two years after the Grant Date indicated in the
Notice of Restricted Stock Award, you will be treated as in service in good standing for purposes of determining further vesting of the award.
  
 If you are entitled to severance benefits under The Charles Schwab Severance Pay Plan (or any successor plan), then you may be treated as in service in good standing
during your Severance Period for purposes of determining further vesting of the award under the terms of that plan.

		
	Definition of Disability	  	For all purposes of this Agreement, “disability” means that you have a disability such that you have been determined to be eligible for benefits under Schwab’s
long-term disability plan.
		
	Definition of Retirement	  	 If you are an employee of Schwab and its subsidiaries, “retirement” means termination of service for any reason other than
death at any time after you attain age 55, but only if, at the time of your termination, you have been credited with at least 10 years of service.
  
 The phrase “years of service” above has the same meaning given to it under the SchwabPlan Retirement Savings and Investment Plan (or any successor
plan).

		
	Section 83(b) Election	  	You may make an election pursuant to Section 83(b) of the Code within 30 days of the Grant Date to be taxed on the Restricted Shares prior to vesting.
		
	Shares Restricted	  	You may not sell, transfer, pledge or otherwise dispose of any Restricted Shares without Schwab’s written consent until they are vested. Restricted Shares will be issued in your name but
held by the Schwab Corporate Secretary as escrow agent. Schwab may instruct the transfer agent for its stock to place a legend on the certificates representing the Restricted Shares or may note in its records the applicable restrictions. The escrow

			
		  	 agent will deliver Restricted Shares to you only after they become vested and after all other terms and conditions in this Agreement have been
satisfied.
  
 You may make a gift of Restricted Shares to your spouse, children or
grandchildren or to a trust established by you for the benefit of yourself or your spouse, children or grandchildren. However, a transferee of Restricted Shares must agree in writing on a form prescribed by Schwab to be bound by all provisions of
this Agreement as a condition for the transfer prior to the Restricted Shares becoming vested.

		
	Delivery of Shares After Death	  	In the event of your death prior to the date your service terminates, your shares will be delivered to your beneficiary or beneficiaries. You may designate one or more beneficiaries by filing a
beneficiary designation form. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then, your shares
will be delivered to your estate. The Compensation Committee, in its sole discretion, will determine the form and time of the distribution of shares to your estate.
		
	Restrictions on Resale	  	You agree not to sell any shares at a time when applicable laws, Schwab’s policies or an agreement between Schwab and its underwriters prohibit a sale. This restriction will apply as long
as your service continues and for such period of time after the termination of your service as Schwab may specify.
		
	Withholding Taxes	  	The Restricted Shares will not be released to you unless you have made acceptable arrangements to pay any applicable withholding of income and employment taxes that may be due as a result of
this award or the vesting of the shares. With Schwab’s consent, these arrangements may include without limitation withholding shares of Schwab stock that otherwise would be issued to you when they vest. In its sole discretion, Schwab may
withhold the minimum number of whole shares of Schwab stock, valued at the fair market value on the vesting date, required to satisfy such applicable withholding taxes. Any residual amount of applicable withholding taxes, i.e., amounts of less than
the fair market value of a share, may be deducted from your pay.
		
	Stockholder Rights	  	As a holder of Restricted Shares, you have the same voting, dividend and other rights as Schwab’s stockholders. Dividends paid in cash shall not be eligible for The Dividend Reinvestment
& Stock Purchase Plan.

			
	Contribution of Par Value	  	On your behalf Schwab will contribute to its capital an amount equal to the par value of the Restricted Shares issued to you.
		
	No Right to Remain Employee	  	Nothing in this Agreement will be construed as giving you the right to be retained as an employee, contingent worker or director of Schwab and its subsidiaries for any specific duration or at
all.
		
	Limitation on Payments	  	 If a payment from the Plan would constitute an excess parachute payment under section 280G of the Code or if there have been certain securities law
violations, then your award may be reduced or forfeited and you may be required to disgorge any profit that you have realized from your award.
  
 If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under 280G of the Code, such payment will be
reduced, as described below. Generally, someone is a “disqualified individual” if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, the
highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of the section on “Limitation on Payments,” the term “Schwab” will include affiliated corporations to the extent determined by
the Auditors in accordance with section 280G(d)(5) of the Code.
  
 In the event that the
independent auditors most recently selected by the Schwab Board of Directors (the “Auditors”) determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or
transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment ”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in
section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount; provided, however, that the Compensation Committee may specify in writing that the award will not be so reduced
and will not be subject to reduction under this section.
  
 For this purpose, the
“Reduced Amount ” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of the Code.

  
 If the Auditors determine that any Payment would be nondeductible because of section
280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation and of the Reduced Amount. You may then elect, in your discretion, which and how much of the Payments will be eliminated or reduced (as
long as after such

			
		  	 election, the aggregate present value of the Payments equals the Reduced Amount). You will advise Schwab in writing of your election within 10 days
of receipt of the notice.
  
 If you do not make such an election within the 10-day period,
then Schwab may elect which and how much of the Payments will be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount). Schwab will notify you promptly of its election. Present
value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable.

 
 As promptly as practicable following these determination and elections, Schwab will pay or
transfer to or for your benefit such amounts as are then due to you under the Plan, and will promptly pay or transfer to or for your benefit in the future such amounts as become due to you under the Plan.
  
 As a result of uncertainty in the application of section 280G of the Code at the time of an initial
determination by the Auditors, it is possible that Payments will have been made by Schwab which should not have been made (an “Overpayment”) or that additional Payments which will not have been made by Schwab could have been
made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount. In the event that the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab
which the Auditors believe has a high probability of success, determine that an Overpayment has been made, such Overpayment will be treated for all purposes as a loan to you which you will repay to Schwab on demand, together with interest at the
applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount which is subject to taxation under section 4999 of the Code.
In the event that the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2)
of the Code.

		
	Claims Procedure	  	You may file a claim for benefits under the Plan by following the procedures prescribed by Schwab. If your claim is denied, generally you will receive written or electronic notification of the
denial within 90 days of the date on which you filed the claim. If special circumstances require more time to make a decision about your claim, you will receive

			
		  	notification of when you may expect a decision. You may appeal the denial by submitting to the Plan Administrator a written request for review within 30 days of receiving notification of the
denial. Your request should include all facts upon which your appeal is based. Generally, the Plan Administrator will provide you with written or electronic notification of its decision within 90 days after receiving the review request. If special
circumstances require more time to make a decision about your request, you will receive notification of when you may expect a decision.
		
	Plan Administration	  	The Plan Administrator has discretionary authority to make all determinations related to this award and to construe the terms of the Plan, the Notice of Restricted Stock Award and this
Agreement. The Plan Administrator’s determinations are conclusive and binding on all persons.
		
	Adjustments	  	In the event of a stock split, a stock dividend or a similar change in Schwab stock, the number of Restricted Shares that remain subject to forfeiture shall be adjusted
accordingly.
		
	Severability	  	In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have
any effect on, the remaining provisions of this Agreement.
		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and
performed in Delaware.
		
	The Plan and Other Agreements	  	The text of the Plan is incorporated in this Agreement by reference. This Agreement, the Notice of Restricted Stock Award and the Plan constitute the entire understanding between you and Schwab
regarding this award. Any prior agreements, commitments or negotiations concerning this award are superseded. This Agreement may be amended only by another written agreement, signed by both parties and approved by the Compensation Committee. If
there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control.

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