Document:

Junior Subordinate Indenture

 Exhibit 4.18 
 JUNIOR SUBORDINATED INDENTURE 
  

 THE CHARLES SCHWAB CORPORATION 
 TO 
 THE BANK OF NEW YORK TRUST COMPANY, N.A. 
 Trustee 
  

 Dated as of October 5, 2007 

 THE CHARLES SCHWAB CORPORATION 
 Reconciliation and tie between the Trust Indenture Act of 1939 (including cross-references to provisions of Sections 310 to and including 317 which,
pursuant to Section 318(c) of the Trust Indenture Act of 1939, as amended by the Trust Reform Act of 1990, are a part of and govern the Indenture whether or not physically contained therein) and the Junior Subordinated Indenture, dated as of
October 5, 2007. 
  

							
	 Trust Indenture Act Section
	  	 	  	 Indenture Section

	 (S)310
	  	(a) (1), (2) and (5)	  		  	6.9
		  	(a) (3)	  		  	Not Applicable
		  	(a) (4)	  		  	Not Applicable
		  	(b)	  		  	6.8
		  		  		  	6.10
		  	(c)	  		  	Not Applicable
	 (S)311
	  	(a)	  		  	6.13
		  	(b)	  		  	6.13
		  	(c)	  		  	Not Applicable
	 (S)312
	  	(a)	  		  	7.1
		  		  		  	7.2(a)
		  	(b)	  		  	7.2(b)
		  	(c)	  		  	7.2(c)
	 (S)313
	  	(a)	  		  	7.3(a)
		  	(b)	  		  	7.3(a)
		  	(c)	  		  	7.3(a), 7.3(b)
		  	(d)	  		  	7.3(c)
	 (S)314
	  	(a) (1), (2) and (3)	  		  	7.4
		  	(4)	  		  	10.4
		  	(b)	  		  	Not Applicable
		  	(c) (1)	  		  	1.2
		  	(c) (2)	  		  	1.2
		  	(c) (3)	  		  	Not Applicable
		  	(d)	  		  	Not Applicable
		  	(e)	  		  	1.2
		  	(f)	  		  	Not Applicable
	 (S)315
	  	(a)	  		  	6.1(a)
		  	(b)	  		  	6.2
		  		  		  	7.3(a) (6)
		  	(c)	  		  	6.1(b)
		  	(d)	  		  	6.1(c)
		  	(d) (1)	  		  	6.1(a) (1), (2)
		  	(d) (2)	  		  	6.1(c) (2)

							
		  	(d) (3)	  		  	6.1(c) (3)
		  	(e)	  		  	5.14
	 (S)316
	  	(a)	  		  	1.1
		  	(a) (1) (A)	  		  	5.12
		  	(a) (1) (B)	  		  	5.13
		  	(a) (2)	  		  	Not Applicable
		  	(b)	  		  	5.8
		  	(c)	  		  	1.4(f)
	 (S)317
	  	(a) (1)	  		  	5.3
		  	(a) (2)	  		  	5.4
		  	(b)	  		  	10.3
	 (S)318
	  	(a)	  		  	1.7

 Note: This reconciliation and tie shall not, for any
purpose, be deemed to be a part of the Junior Subordinated Indenture. 
  

 -2- 

 TABLE OF CONTENTS 
  

							
	 	  	Page
	 ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	1
				
		 	 Section 1.1
	 	Definitions	  	1
		 	 Section 1.2
	 	Compliance Certificate and Opinions of Counsel	  	12
		 	 Section 1.3
	 	Forms of Documents Delivered to Trustee	  	12
		 	 Section 1.4
	 	Acts of Holders	  	13
		 	 Section 1.5
	 	Notices, Etc. to Trustee and Company	  	15
		 	 Section 1.6
	 	Notice to Holders; Waiver	  	16
		 	 Section 1.7
	 	Conflict with Trust Indenture Act	  	16
		 	 Section 1.8
	 	Effect of Headings and Table of Contents	  	16
		 	 Section 1.9
	 	Successors and Assigns	  	16
		 	 Section 1.10
	 	Separability Clause	  	17
		 	 Section 1.11
	 	Benefits of Indenture	  	18
		 	 Section 1.12
	 	Governing Law; Jurisdiction; Waiver of Trial by Jury	  	18
		 	 Section 1.13
	 	Non-Business Days	  	18
		
	 ARTICLE II SECURITY FORMS
	  	19
				
		 	 Section 2.1
	 	Forms Generally	  	19
		 	 Section 2.2
	 	Form of Face of Security	  	19
		 	 Section 2.3
	 	Form of Reverse of Security	  	23
		 	 Section 2.4
	 	Additional Provisions Required in Global Security	  	26
		 	 Section 2.5
	 	Form of Trustee’s Certificate of Authentication	  	27
		
	 ARTICLE III THE SECURITIES
	  	27
				
		 	 Section 3.1
	 	Title and Terms	  	27
		 	 Section 3.2
	 	Denominations	  	30
		 	 Section 3.3
	 	Execution, Authentication, Delivery and Dating	  	30
		 	 Section 3.4
	 	Temporary Securities	  	31
		 	 Section 3.5
	 	Registration, Transfer and Exchange	  	32
		 	 Section 3.6
	 	Mutilated, Destroyed, Lost and Stolen Securities	  	34
		 	 Section 3.7
	 	Payment of Interest; Interest Rights Preserved	  	35
		 	 Section 3.8
	 	Persons Deemed Owners	  	36
		 	 Section 3.9
	 	Cancellation	  	36
		 	 Section 3.10
	 	Computation of Interest	  	37
		 	 Section 3.11
	 	Deferrals of Interest Payment Dates	  	37
		 	 Section 3.12
	 	Right of Set-Off	  	38
		 	 Section 3.13
	 	Agreed Tax Treatment	  	38
		 	 Section 3.14
	 	Shortening or Extension of Stated Maturity	  	39

  

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 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page
		 	 Section 3.15
	 	CUSIP Numbers	  	39
		
	 ARTICLE IV SATISFACTION AND DISCHARGE
	  	40
				
		 	 Section 4.1
	 	Satisfaction and Discharge of Indenture	  	40
		 	 Section 4.2
	 	Application of Trust Money	  	41
		
	 ARTICLE V REMEDIES
	  	41
				
		 	 Section 5.1
	 	Events of Default	  	41
		 	 Section 5.2
	 	Acceleration of Maturity; Rescission and Annulment	  	42
		 	 Section 5.3
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	  	44
		 	 Section 5.4
	 	Trustee May File Proofs of Claim	  	44
		 	 Section 5.5
	 	Trustee May Enforce Claim Without Possession of Securities	  	45
		 	 Section 5.6
	 	Application of Money Collected	  	46
		 	 Section 5.7
	 	Limitation on Suits	  	46
		 	 Section 5.8
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest; Direct Action by Holders of Preferred Securities	  	47
		 	 Section 5.9
	 	Restoration of Rights and Remedies	  	47
		 	 Section 5.10
	 	Rights and Remedies Cumulative	  	48
		 	 Section 5.11
	 	Delay or Omission Not Waiver	  	48
		 	 Section 5.12
	 	Control by Holders	  	48
		 	 Section 5.13
	 	Waiver of Past Defaults	  	48
		 	 Section 5.14
	 	Undertaking for Costs	  	49
		 	 Section 5.15
	 	Waiver of Usury, Stay or Extension Laws	  	49
		
	 ARTICLE VI THE TRUSTEE
	  	50
				
		 	 Section 6.1
	 	Certain Duties and Responsibilities	  	50
		 	 Section 6.2
	 	Notice of Defaults	  	51
		 	 Section 6.3
	 	Certain Rights of Trustee	  	51
		 	 Section 6.4
	 	Not Responsible for Recitals or Issuance of Securities	  	53
		 	 Section 6.5
	 	May Hold Securities	  	53
		 	 Section 6.6
	 	Money Held in Trust	  	53
		 	 Section 6.7
	 	Compensation and Reimbursement	  	55
		 	 Section 6.8
	 	Disqualification; Conflicting Interests	  	56
		 	 Section 6.9
	 	Corporate Trustee Required; Eligibility	  	56
		 	 Section 6.10
	 	Resignation and Removal; Appointment of Successor	  	56

  

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 TABLE OF CONTENTS 
  

							
	 	  	Page
		 	 Section 6.11
	 	Acceptance of Appointment by Successor	  	58
		 	 Section 6.12
	 	Merger, Conversion, Consolidation or Succession to Business	  	59
		 	 Section 6.13
	 	Preferential Collection of Claims Against Company	  	59
		 	 Section 6.14
	 	Appointment of Authenticating Agent	  	59
		
	 ARTICLE VII HOLDER’S LISTS AND REPORTS BY TRUSTEE AND COMPANY
	  	62
				
		 	 Section 7.1
	 	Company to Furnish Trustee Names and Addresses of Holders	  	62
		 	 Section 7.2
	 	Preservation of Information, Communications to Holders	  	62
		 	 Section 7.3
	 	Reports by Trustee	  	62
		 	 Section 7.4
	 	Reports by Company	  	63
		
	 ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	63
				
		 	 Section 8.1
	 	Company May Consolidate, Etc., Only on Certain Terms	  	63
		 	 Section 8.2
	 	Successor Corporation Substituted	  	64
		
	 ARTICLE IX SUPPLEMENTAL INDENTURES
	  	65
				
		 	 Section 9.1
	 	Supplemental Indentures without Consent of Holders	  	65
		 	 Section 9.2
	 	Supplemental Indentures with Consent of Holders	  	66
		 	 Section 9.3
	 	Execution of Supplemental Indentures	  	68
		 	 Section 9.4
	 	Effect of Supplemental Indentures	  	68
		 	 Section 9.5
	 	Conformity with Trust Indenture Act	  	68
		 	 Section 9.6
	 	Reference in Securities to Supplemental Indentures	  	68
		
	 ARTICLE X COVENANTS
	  	69
				
		 	 Section 10.1
	 	Payment of Principal, Premium and Interest	  	69
		 	 Section 10.2
	 	Maintenance of Office or Agency	  	69
		 	 Section 10.3
	 	Money for Security Payments to be Held in Trust	  	69
		 	 Section 10.4
	 	Statement as to Compliance	  	71
		 	 Section 10.5
	 	Waiver of Certain Covenants	  	71
		 	 Section 10.6
	 	Corporate Existence	  	72
		 	 Section 10.7
	 	Additional Sums	  	72
		 	 Section 10.8
	 	Additional Covenants	  	73

  

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 TABLE OF CONTENTS 
  

							
	 	  	Page
	 ARTICLE XI REDEMPTION OF SECURITIES
	  	74
				
		 	 Section 11.1
	 	Applicability of this Article	  	74
		 	 Section 11.2
	 	Election to Redeem; Notice to Trustee	  	74
		 	 Section 11.3
	 	Selection of Securities to be Redeemed	  	74
		 	 Section 11.4
	 	Notice of Redemption	  	75
		 	 Section 11.5
	 	Deposit of Redemption Price	  	76
		 	 Section 11.6
	 	Payment of Securities Called for Redemption	  	76
		 	 Section 11.7
	 	Right of Redemption of Securities	  	77
		
	 ARTICLE XII SINKING FUNDS
	  	77
				
		 	 Section 12.1
	 	Applicability of Article	  	77
		 	 Section 12.2
	 	Satisfaction of Sinking Fund Payments with Securities	  	78
		 	 Section 12.3
	 	Redemption of Securities for Sinking Fund	  	78
		
	 ARTICLE XIII SUBORDINATION OF SECURITIES
	  	80
				
		 	 Section 13.1
	 	Securities Subordinate to Senior Debt	  	80
		 	 Section 13.2
	 	Payment Over of Proceeds Upon Dissolution, Etc.	  	80
		 	 Section 13.3
	 	Prior Payment to Senior Debt Upon Acceleration of Securities	  	81
		 	 Section 13.4
	 	No Payment When Senior Debt in Default	  	82
		 	 Section 13.5
	 	Payment Permitted If No Default	  	83
		 	 Section 13.6
	 	Subrogation to Rights of Holders of Senior Debt	  	83
		 	 Section 13.7
	 	Provisions Solely to Define Relative Rights	  	84
		 	 Section 13.8
	 	Trustee to Effectuate Subordination	  	84
		 	 Section 13.9
	 	No Waiver of Subordination Provisions	  	84
		 	 Section 13.10
	 	Notice to Trustee	  	85
		 	 Section 13.11
	 	Reliance on Judicial Order or Certificate of Liquidating Agent	  	86
		 	 Section 13.12
	 	Trustee Not Fiduciary for Holders of Senior Debt	  	86
		 	 Section 13.13
	 	Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s Rights	  	86
		 	 Section 13.14
	 	Article Applicable to Paying Agents	  	86
		 	 Section 13.15
	 	Certain Conversions or Exchanges Deemed Payment	  	88
		 	 Section 13.16
	 	Trustee’s Rights to Compensation, Reimbursement of Expenses and Indemnification	  	88

  

 -iv- 

 JUNIOR SUBORDINATED INDENTURE, dated as of October 5, 2007 (the “Indenture”),
between THE CHARLES SCHWAB CORPORATION, a Delaware corporation (hereinafter called the “Company”) having its principal office at 120 Kearny Street, San Francisco, California 94108, and THE BANK OF NEW YORK TRUST COMPANY, N.A., a national
banking association, as Trustee (hereinafter called the “Trustee”). 
 RECITALS OF THE COMPANY 
 The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured junior
subordinated debt securities in series (hereinafter called the “Securities”) of substantially the tenor hereinafter provided, and to provide the terms and conditions upon which the Securities are to be authenticated, issued and delivered.

 All things necessary to make the Securities, when executed by the Company and authenticated and delivered hereunder and duly issued by the
Company, the valid and legally binding obligations of the Company, and to make this Indenture a valid and legally binding agreement of the Company, in accordance with their and its terms, have been done. 
 NOW THEREFORE, THIS INDENTURE WITNESSETH: For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities or of any series thereof, as follows: 
 ARTICLE I 
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 Section 1.1 Definitions. 
 For all purposes of
this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
 (1) The terms defined in this Article have
the meanings assigned to them in this Article, and include the plural as well as the singular; 
 (2) All other terms used herein which are
defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) All
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles, and the term “generally accepted accounting principles” with respect to any computation required

 
or permitted hereunder shall mean such accounting principles which are generally accepted at the date or time of such computation; provided, that when two or
more principles are so generally accepted, it shall mean that set of principles consistent with those in use by the Company; and 
 (4) The
words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 
 “Act,” when used with respect to any Holder has the meaning specified in Section 1.4. 
 “Additional Interest” means the interest, if any, that shall accrue on any interest on the Securities of any series the payment of which has
not been made on the applicable Interest Payment Date and which shall accrue at the rate per annum specified or determined as specified in such Security. 
 “Additional Sums” has the meaning specified in Section 10.7. 
 “Additional Taxes”
means the sum of any additional taxes, duties and other governmental charges to which a Schwab Capital Trust has become subject from time to time as a result of a Tax Event. 
 “Administrative Trustee” means, in respect of any Schwab Capital Trust, each Person identified as an “Administrative Trustee” in the
related Schwab Capital Trust Agreement, solely in such person’s capacity as Administrative Trustee of such Schwab Capital Trust under such Schwab Capital Trust Agreement and not in such Person’s individual capacity, or any successor
administrative trustee appointed as therein provided. 
 “Affiliate” of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such specified Person; provided, however, that no Schwab Capital Trust to which Securities have been issued shall be deemed to be an Affiliate of the Company.
For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.14 to act on behalf of the Trustee to authenticate Securities of one or more series. 
 “Board of Directors” means either the board of directors of the Company or any committee of that board duly authorized to act hereunder.

  

 -2- 

 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been duly adopted by the Board of Directors, or such committee of the Board of Directors or officers of the Company to which authority to act on behalf of the Board of Directors has been delegated, and to be in full
force and effect on the date of such certification, and delivered to the Trustee. 
 “Business Day” means any day other than
(i) a Saturday or Sunday, (ii) a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office of the Trustee, or,
with respect to the Securities of a series initially issued to a Schwab Capital Trust, the principal office of the Property Trustee under the related Schwab Capital Trust Agreement, is closed for business. 
 “Capital Treatment Event” means the reasonable determination by the Company that, as a result of any amendment to, or change (including any
proposed change) in, the laws (or any regulations thereunder) of the United States or any political subdivision thereof or therein, or as a result of any official or administrative pronouncement or action or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or which proposed change, pronouncement, action or decision is announced on or after the date of issuance of Preferred Securities under the relevant Schwab Capital Trust
Agreement, there is more than an insubstantial risk that the Company will not be entitled to treat an amount equal to the Liquidation Amount of such Preferred Securities as “Tier I Capital” (or the then equivalent thereof) for purposes of
the capital adequacy guidelines of the Federal Reserve, as then in effect and applicable to the Company. 
 “Commission” means the
Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the
Trust Indenture Act, then the body performing such duties at such time. 
 “Common Securities” means the common trust interests
issued by any Schwab Capital Trust. 
 “Common Stock” means the common stock, par value $.01 per share, of the Company. 

“Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person. 
  

 -3- 

 “Company Request” and “Company Order” mean, respectively, the written request or
order signed in the name of the Company by the Chairman of the Board of Directors, the Vice Chairman of the Board of Directors, its Chief Executive Officer (or any co-Chief Executive Officer if the title is allocated to more than one Person) or
President or a Vice President or Chief Financial Officer, and by its Treasurer, an Assistant or Associate Treasurer, its Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. 
 “Corporate Trust Office” means (i) the principal office of the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at 700 South Flower Street, Suite 500, Los Angeles, CA 90017, Attention: Corporate Unit, or (ii) such other address as the Trustee may designate from time to time by notice to the Holders
and the Company, or (iii) the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company). 
 “corporation” includes a corporation, association, company, limited liability company, joint-stock company or business trust. 
 “Debt” means, with respect to any Person, whether recourse is to all or a portion of the assets of such Person and whether or not contingent,
(i) every obligation of such Person for money borrowed; (ii) every obligation of such Person evidenced by bonds, debentures, notes or other similar instruments, including obligations incurred in connection with the acquisition of property,
assets or businesses; (iii) every reimbursement obligation of such Person with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of such Person; (iv) every obligation of such Person issued
or assumed as the deferred purchase price of property or services (but excluding trade accounts payable or accrued liabilities arising in the ordinary course of business), (v) every capital lease obligation of such Person; (vi) every
obligation of such Person for claims in respect of derivative products, including interest rate, foreign exchange rate and commodity forward contracts, options, swaps and similar arrangements; and (vii) every obligation of the type referred to
in clauses (i) through (vi) of another Person and all dividends of another Person the payment of which, in either case, such Person has guaranteed or is responsible or liable for, directly or indirectly, as obligor or otherwise.

 “Defaulted Interest” has the meaning specified in Section 3.7. 
 “Depositary” means, with respect to the Securities of any series issuable or issued in whole or in part in the form of one or more Global
Securities, the Person designated as Depositary by the Company pursuant to Section 3.1 with respect to such series (or any successor thereto). 
  

 -4- 

 “Discount Security” means any security which provides for an amount less than the principal
amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2. 
 “Distributions,” with respect to the securities of any Schwab Capital Trust, means amounts payable in respect of such Schwab Capital Trust securities as provided in the related Schwab Capital Trust Agreement and referred to
therein as “Distributions.” 
 “Dollar” means the currency of the United States of America that, as at the time of
payment, is legal tender for the payment of public and private debts. 
 “Event of Default” unless otherwise specified in the
supplemental indenture creating a series of Securities has the meaning specified in Article V. 
 “Exchange Act” means the
Securities Exchange Act of 1934 and any statute successor thereto, in each case as amended from time to time. 
 “Expiration Date”
has the meaning specified in Section 1.4(f). 
 “Extension Period” has the meaning specified in Section 3.11. 

“Federal Reserve” means the Board of Governors of the Federal Reserve System, as from time to time constituted, or if at any time after the
execution of this Indenture the Federal Reserve is not existing and performing the duties now assigned to it, then the body performing such duties at such time. 
 “Global Security” means a Security, in the form prescribed in Section 2.4, evidencing all or part of a series of Securities issued to the Depositary or its nominee for such series, and registered in the
name of such Depositary or its nominee. 
 “Guarantee Agreement” means a guarantee agreement substantially in the form attached
hereto as Annex A executed by the Company with respect to the Preferred Securities issued by a Schwab Capital Trust, as such may be amended from time to time. 
 “Holder” means a Person in whose name a Security is registered in the Securities Register. 
 “Indenture” means this instrument as originally executed and as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of each particular series of Securities established as contemplated by Section 3.1. 
 “Interest Payment
Date” means as to each series of Securities the Stated Maturity of an installment of interest on such Securities. 
  

 -5- 

 “Investment Company Event” means that the Property Trustee shall have been provided with an
Opinion of Counsel to the effect that, as a result of the occurrence of a change in law or regulation or a written change in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory
authority, there is a more than insubstantial risk that the Trust is or will be considered an investment company which is required to be registered under the Investment Company Act of 1940. 
 “Junior Subordinated Payment” has the meaning specified in Section 13.2. 
 “Liquidation Amount” has the meaning specified in the relevant Schwab Capital Trust Agreement. 
 “Maturity,” when used with respect to any Security means the date on which the principal of such Security becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, repurchase at the option of the Holder, call for redemption or otherwise. 
 “Moody’s” means Moody’s Investors Service, Inc. 
 “Notice of Default” means a
written notice of the kind specified in Section 6.2. 
 “Officers’ Certificate” means a certificate signed by the
Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, the Chief Executive Officer (or any co-Chief Executive Officer if the title is allocated to more than one Person), the President, the Chief Financial Officer or a Vice
President, and by the Treasurer, an Assistant or Associate Treasurer, the Controller, the Secretary or an Assistant Secretary of the Company, and delivered to the Trustee. 
 “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company. Each such opinion shall comply with
Section 314 of the Trust Indenture Act and include the statements provided for in Section 1.2 if and to the extent required by the provisions of such Section. 
 “Original Issue Date” means the date of issuance specified as such in each Security. 
 “Outstanding” means, when used in reference to any Securities, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except: 
 (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 
  

 -6- 

 (ii) Securities for whose payment money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent in trust for the Holders of such Securities; and 
 (iii) Securities in substitution for or in lieu of which
other Securities have been authenticated and delivered or which have been paid pursuant to Section 3.6, unless proof satisfactory to the Trustee is presented that any such Securities are held by Holders in whose hands such Securities are valid,
binding and legal obligations of the Company; 
 provided, however, that in determining whether the Holders of the requisite principal amount of Outstanding
Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor. Upon the written request of the Trustee, the Company shall
furnish to the Trustee promptly an Officers’ Certificate listing and identifying all Securities, if any, known by the Company to be owned or held by or for the account of the Company, or any other obligor on the Securities or any Affiliate of
the Company or such obligor, and, subject to the provisions of Section 6.1, the Trustee shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein set forth and of the fact that all Securities not
listed therein are Outstanding for the purpose of any such determination. 
 “Paying Agent” means the Trustee or any Person
authorized by the Company to pay the principal of or interest on any Securities on behalf of the Company. 
 “Person” means any
individual, corporation, partnership, joint venture, trust, company, limited liability company, unincorporated organization, joint-stock company, association or government or any agency or political subdivision thereof. 
 “Place of Payment” means, with respect to the Securities of any series, the place or places where the principal of (and premium, if any) and
interest on the Securities of such series are payable pursuant to Sections 3.1 and 3.11. 
 “Predecessor Security” of any
particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any security authenticated and delivered 

  

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under Section 3.6 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.

 “Preferred Securities” means the preferred trust interests issued by any Schwab Capital Trust. 
 “Proceeding” has the meaning specified in Section 13.2. 
 “Property Trustee” means, in respect of any Schwab Capital Trust, the commercial bank or trust company identified as the “Property Trustee” in the related Schwab Capital Trust Agreement, solely in
its capacity as Property Trustee of such Schwab Capital Trust, under such Schwab Capital Trust Agreement and not in its individual capacity, or its successor in interest in such capacity, or any successor trustee appointed as therein provided.

 “Redemption Date,” when used with respect to any Security to be redeemed, means the date fixed for such redemption by or
pursuant to this Indenture. 
 “Redemption Price,” when used with respect to any Security to be redeemed, means the price at which
it is to be redeemed pursuant to this Indenture. 
 “Regular Record Date” for the interest payable on any Interest Payment Date
with respect to the Securities of a series means, unless otherwise provided pursuant to Section 3.1 with respect to Securities of a series, (i) in the case of Securities of a series represented by one or more Global Securities, the
Business Day next preceding such Interest Payment Date and (ii) in the case of Securities of a series not represented by one or more Global Securities, the date which is fifteen days next preceding such Interest Payment Date (whether or not a
Business Day). 
 “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within the corporate trust
department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the
administration of this Indenture. 
 “Rights Plan” means a plan of the Company providing for the issuance by the Company to all
holders of its Common Stock of rights entitling the holders thereof to subscribe for or purchase shares of Common Stock or any class or series of preferred stock of the Company, which rights (i) are deemed to be transferred with such shares of
Common Stock, (ii) are not exercisable and (iii) are also issued in respect of future 

  

 -8- 

 
issuances of Common Stock, in each case until the occurrence of a specified event or events. 
 “S&P” means Standard & Poor’s Ratings Services. 
 “Schwab Capital Trust” means Schwab Capital Trust I, Schwab Capital Trust II or Schwab Capital Trust III or any other trust created for the
purposes of holding Securities delivered under this Indenture. 
 “Schwab Capital Trust Agreement” means a second amended and
restated trust agreement substantially in the form attached hereto as Annex B between the Company, the Property Trustee and another Person or Persons with regard to a Schwab Capital Trust, as such may be amended from time to time. 
 “Schwab Guarantee” means any guarantee by the Company of Distributions on the Preferred Securities to the extent provided in any Guarantee
Agreement. 
 “Securities” or “Security” means any debt securities or debt security, as the case may be, authenticated
and delivered under this Indenture. 
 “Securities Register” and “Securities Registrar” have the respective meanings
specified in Section 3.5. 
 “Senior Debt” means the principal of (and premium, if any) and interest, if any (including
interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company whether or not such claim for post-petition interest is allowed in such proceeding), on Debt of the Company, whether incurred on or
prior to the date of this Indenture or thereafter incurred, unless, in the instrument creating or evidencing the same or pursuant to which the same is outstanding, it is provided that such obligations are not superior in right of payment to the
Securities or to other Debt which is pari passu with, or subordinated to, the Securities, provided, however, that Senior Debt shall not be deemed to include (a) any Debt of the Company which, when incurred and without respect to any
election under Section 1111(b) of the Bankruptcy Reform Act of 1978, was without recourse to the Company, (b) any Debt of the Company to any of its Subsidiaries, (c) Debt to any employee of the Company, (d) Debt that by its terms
is subordinated to trade accounts payable or accrued liabilities arising in the ordinary course of business to the extent that payments made to the holders of such Debt by the holders of the Securities as a result of the subordination provisions of
this Indenture would be greater than such payments otherwise would have been (absent giving effect to this clause (d)) as a result of any obligation of such holders of such Debt to pay amounts over to the obligees on such trade accounts payable or
accrued liabilities arising in the ordinary course of business as a result of subordination provisions to which such Debt is subject and (e) any Securities. 
  

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 “Special Event” has the meaning specified in Section 2.3. 
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.7. 
 “Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon means the date specified
pursuant to the terms of such Security as the date on which the principal of such Security or such installment of interest is due and payable, in the case of such principal, as such date may be shortened or extended as provided pursuant to the terms
of such Security and this Indenture. 
 “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For purposes of this definition, “voting stock” means stock which ordinarily has voting power for the
election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 
 “Tax Event” means the receipt by a Schwab Capital Trust of an Opinion of Counsel (as defined in the relevant Schwab Capital Trust Agreement) experienced in such matters to the effect that, as a result of any amendment to, or
change (including any announced proposed change) in, the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or
judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which proposed change, pronouncement or decision is announced on or after the date of issuance of the Preferred Securities of such Schwab
Capital Trust, there is more than an insubstantial risk that (i) such Schwab Capital Trust is, or will be within 90 days of the date of such Opinion of Counsel, subject to United States Federal income tax with respect to income received or
accrued on the corresponding series of Securities issued by the Company to such Schwab Capital Trust, (ii) interest payable by the Company on such corresponding series of Securities is not, or within 90 days of the date of such Opinion of
Counsel, will not be, deductible by the Company, in whole or in part, for United States Federal income tax purposes or (iii) such Schwab Capital Trust is, or will be within 90 days of the date of such Opinion of Counsel, subject to more than a
de minimis amount of other taxes, duties or other governmental charges. 
 “Trustee” means the Person named as the
“Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person who is then
a Trustee hereunder and, if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series. 
  

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 “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbb),
as amended and as in effect on the date as of this Indenture, except as provided in Section 9.5. 
 “Vice President,” when
used with respect to the Company, means any duly appointed vice president, whether or not designated by a number or a word or words added before or after the title “vice president.” 
  

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 Section 1.2 Compliance Certificate and Opinions of Counsel. 
 Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the
Trustee an Officers’ Certificate stating that all conditions precedent (including covenants, compliance with which constitutes a condition precedent), if any, provided for in this Indenture relating to the proposed action have been complied
with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent (including covenants compliance with which constitute a condition precedent), if any, have been complied with, except that in the case of any
such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.

 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than the
certificates provided pursuant to Section 10.5) shall include: 
 (1) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein relating thereto; 
 (2) a brief statement as to the nature and scope
of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (3) a
statement that, in the opinion of each such individual, he has made or caused to be made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied
with; and 
 (4) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

 Section 1.3 Forms of Documents Delivered to Trustee. 
 In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or
give an opinion as to such matters in one or several documents. 
 Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, 

  

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counsel, unless such officer or counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with
respect to the matters upon which his certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous. 
 Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions, or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
 Section 1.4 Acts of Holders. 
 (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given to or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed
in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments is or are delivered to the Trustee, and, where it is hereby expressly required, to the Company. The Trustee shall
promptly deliver to the Company copies of such instruments or instruments delivered to the Trustee. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the
Trustee and the Company, if made in the manner provided in this Section. 
 (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof. Where such execution is by a Person acting in other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. 
 (c) The fact and date of the execution by any Person of any such instrument or writing, or the authority of the Person executing the same, may also be
proved in any other manner which the Trustee deems sufficient and in accordance with such reasonable rules as the Trustee may determine. 
 (d) The ownership of Securities shall be proved by the Securities Register. 
  

 -13- 

 (e) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder
of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such Security. 
 (f) The Company may set any
day as a record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to give, make or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders of Securities of such series, provided that the Company may not set a record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any record date is set pursuant to this paragraph, the Holders of Outstanding Securities of the relevant series on such record date, and no other Holders, shall be entitled to
take the relevant action, whether or not such Holders remain Holders after such record date, provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities of such series on such record date. Nothing in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the
requisite principal amount of Outstanding Securities of the relevant series on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date,
the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of Securities of the relevant series in the manner set forth in Section 1.6. 
 The Trustee may set any day as a record date for the purpose of determining the Holders of Outstanding Securities of any series entitled to join in the
giving or making of (i) any Notice of Default, (ii) any declaration of acceleration referred to in Section 5.2, (iii) any request to institute proceedings referred to in Section 5.7(2) or (iv) any direction referred to
in Section 5.12, in each case with respect to Securities of such series. If any record date is set pursuant to this paragraph, the Holders of Outstanding Securities of such series on such record date, and no other Holders, shall be entitled to
join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such record date, provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by
Holders of the requisite principal amount of Outstanding Securities of such series on such record date. Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date 

  

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for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the
date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be
given to the Company in writing and to each Holder of Securities of the relevant series in the manner set forth in Section 1.6. 
 With
respect to any record date set pursuant to this Section, the party hereto which sets such record date may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day, provided
that no such change shall be effective unless notice of the proposed new Expiration Date is given to the other party hereto in writing, and to each Holder of Securities of the relevant series in the manner set forth in Section 1.6, on or prior
to the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section, the party hereto which set such record date shall be deemed to have initially designated the 180th day after such
record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable
record date. 
 (g) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular
Security may do so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount.

 Section 1.5 Notices, Etc. to Trustee and Company. 
 Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, 
 (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing (or by
facsimile transmission, provided that, oral confirmation of receipt shall have been received) to or with the Trustee at its Corporate Trust Office, Attention: Corporate Unit or 
 (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose (except as otherwise provided in Section 5.1) hereunder if in
writing and mailed, first class, postage prepaid, to the Company addressed to it at the address of its principal office specified in the first paragraph of this instrument or at any other address 

  

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previously furnished in writing to the Trustee by the Company, Attention: Corporate Treasurer. 
 The Trustee agrees to accept and act upon facsimile transmission of written instructions and/or directions pursuant to this Indenture given by the
Company, provided, however that: (i) the Company, subsequent to such facsimile transmission of written instructions and/or directions, shall provide the originally executed instructions and/or directions to the Trustee in a timely manner and
(ii) such originally executed instructions and/or directions shall be signed by an Authorized “Officer” of the Company. 
 Section 1.6
Notice to Holders; Waiver. 
 Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, or delivered by hand or overnight courier to each Holder affected by such event, at the address of such Holder as it appears in the Securities
Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by mail or delivered by hand or overnight courier, neither the failure to mail
or deliver by hand or overnight courier such notice, nor any defect in any notice so mailed or delivered by hand or overnight courier, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
 Section 1.7 Conflict with Trust Indenture Act. 
 If any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by any of Sections 310 to 317, inclusive, of the Trust Indenture Act through operation of Section 318(c) thereof, such imposed duties shall control. 
 Section 1.8 Effect of Headings and Table of Contents. 
 The Article and Section headings herein
and the Table of Contents are for convenience only and shall not affect the construction hereof. 
 Section 1.9 Successors and Assigns.

 All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

  

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 Section 1.10 Separability Clause. 
 In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 
  

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 Section 1.11 Benefits of Indenture. 
 Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors and
assigns, the holders of Senior Debt and the Holders of the Securities and, to the extent expressly provided in this Indenture, the holders of the Preferred Securities, any benefit or any legal or equitable right, remedy or claim under this
Indenture. 
 Section 1.12 Governing Law; Jurisdiction; Waiver of Trial by Jury. 
 EXCEPT AS OTHERWISE SPECIFIED AS CONTEMPLATED BY SECTION 3.1 FOR THE SECURITIES OF SUCH SERIES, THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. The parties and (by their acceptance of the Securities) the Holders, agree that all actions and proceedings relating to or
arising from, directly or indirectly, this Indenture or any of the transactions contemplated hereby may be litigated in courts located within the State of New York. The parties and (by their acceptance of the Securities) the Holders, hereby submit
to the personal jurisdiction of such courts; hereby waive personal service of process upon them and consents that any such service of process may be made by certified or registered mail, return receipt requested, directed to Company at its address
last specified for notices hereunder, and service so made shall be deemed completed five (5) days after the same shall have been so mailed; and hereby waives the right to a trial by jury in any action or proceeding with Trustee. All actions and
proceedings brought by Company against the Trustee relating to or arising from, directly or indirectly, this Indenture shall be litigated only in courts located within the State of New York. In this regard, the parties agree that the courts of the
State of New York located in Manhattan are the most convenient forum to resolve such actions and, accordingly, will not argue to the contrary in such actions or proceedings. 
 Section 1.13 Non-Business Days. 
 In any case where any Interest Payment Date, Redemption Date or
Stated Maturity of any Security shall not be a Business Day, then (notwithstanding any other provision of this Indenture or the Securities) payment of interest or principal (and premium, if any) need not be made on such date, but may be made on the
next succeeding Business Day (and no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date or Stated Maturity, as the case may be, until such next succeeding Business Day except that, if such Business Day is
in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day (in each case with the same force and effect as if made on the Interest Payment Date or Redemption Date or at the Stated Maturity).

  

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 ARTICLE II 
 SECURITY FORMS 
 Section 2.1 Forms Generally. 
 The Securities of each series and the Trustee’s certificate of authentication shall be in substantially the forms set forth in this Article, or in
such other form or forms as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with applicable tax laws or the rules of any securities exchange or
automated quotation system on which the Securities may be listed or traded as may, consistently herewith, be determined by the officers executing such Securities, as conclusively evidenced by their execution of the Securities. If the form of
Securities of any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or
prior to the delivery of the Company Order contemplated by Section 3.3 with respect to the authentication and delivery of such Securities. The Trustee’s certificates of authentication shall be substantially in the form set forth in this
Article. 
 The definitive Securities shall be typewritten, printed, lithographed or engraved or produced by any combination of these
methods, if required by any securities exchange or automated quotation system on which the Securities may be listed or traded, on a steel engraved border or steel engraved borders or may be produced in any other manner permitted by the rules of any
securities exchange or automated quotation system on which the Securities may be listed or traded, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities. 
 Section 2.2 Form of Face of Security. 
 THE
CHARLES SCHWAB CORPORATION 
 (Title of Security) 
 No.             $ 
 THE CHARLES SCHWAB CORPORATION, a corporation
organized and existing under the laws of Delaware (hereinafter called the “Company”, which term 

  

 -19- 

 
includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of Dollars on
                                 , 20    ;
provided that the Company may, subject to certain conditions specified in Section 3.14 of the Indenture, (i) shorten the Stated Maturity of the principal of this Security to a date not earlier than
                                 , 200    , and
(ii) extend the Stated Maturity of the principal of this Security at any time on one or more occasions, but in no event to a date later than
                                 , 20    . The
Company further promises to pay interest on said principal sum from                     
            , 200     or from the most recent interest payment date (each such date, an “Interest Payment Date”) on which interest has been paid
or duly provided for, (subject to deferral as set forth herein) in arrears on [specify Interest Payment Dates] of each year, commencing
                                 , 200    , at
the rate of             % per annum, until the principal hereof shall have become due and payable, plus Additional Interest, until the principal hereof is paid or duly provided for
or made available for payment and on any overdue principal and (without duplication and to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at the rate of
            % per annum, compounded                     . The amount of
interest payable for any period shall be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any partial period shall be computed on the basis of the number of days elapsed in a 360-day year of twelve
30-day months. In the event that any date on which interest is payable on this Security is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day which is a Business Day (and without any
interest or other payment in respect of any such delay), except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as
if made on the date the payment was originally payable. A “Business Day” shall mean any day other than (i) a Saturday or Sunday, (ii) a day on which banking institutions in The City of New York are authorized or required by law
or executive order to remain closed or (iii) a day on which the Corporate Trust Office of the Trustee, or the principal office of the Property Trustee under the Trust Agreement hereinafter referred to on the reverse side of this Security is
closed for business. The interest installment so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date for such interest installment, which shall be the [specify Regular Record Dates] next preceding the applicable Interest Payment Date. Any such interest installment not so
punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange or automated quotation 
  

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system on which the Securities of this series may be listed or traded, and upon such notice as may be required by such exchange or automated quotation
system, all as more fully provided in said Indenture. 
 [If applicable, insert: So long as no Event of Default has occurred and is
continuing, the Company shall have the right at any time during the term of this Security to defer payment of interest on this Security, at any time or from time to time, for up to
                     consecutive
                     interest payment periods [at least five years] with respect to each deferral period (each an “Extension
Period”), during which Extension Periods the Company shall have the right to make partial payments of interest on any Interest Payment Date, and at the end of which the Company shall pay all interest then accrued and unpaid (together with
Additional Interest thereon to the extent permitted by applicable law); provided, however, that no Extension Period shall extend beyond the Stated Maturity of the principal of this Security; and provided, further, that during any such Extension
Period, the Company shall not, and shall not permit any Subsidiary of the Company to, (i) declare or pay any dividends or distributions or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company’s
capital stock or (ii) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt security of the Company that ranks pari passu with or junior in interest to this Security or make any
guarantee payments with respect to any guarantee by the Company of the debt securities of any Subsidiary of the Company if such guarantee ranks pari passu with or junior in interest to this Security (other than (a) dividends or
distributions in capital stock of the Company, (b) any declaration of a dividend in connection with the implementation of a Rights Plan, the issuance of any rights, or the redemption or repurchase of any rights distributed pursuant to a Rights
Plan, (c) payments under any Schwab Guarantee and (d) purchases of Common Stock related to the issuance of Common Stock or rights under any of the Company’s benefit plans for its directors, officers or employees, related to the
issuance of Common Stock or rights under a dividend reinvestment and stock purchase plan, or related to the issuance of Common Stock (or securities convertible into or exchangeable for Common Stock) as consideration in an acquisition transaction
that was entered into prior to the commencement of such Extension Period. Prior to the termination of any such Extension Period, the Company may further defer the payment of interest, provided that, no Extension Period shall exceed
                     consecutive
                     or extend beyond the Stated Maturity of the principal of this Security. Upon the termination of any such Extension Period
and upon the payment of all accrued and unpaid interest and any Additional Interest then due, the Company may elect to begin a new Extension Period, subject to the above requirements. No interest shall be due and payable during an Extension Period
except at the end thereof. The Company shall give the Holder of this Security and the Trustee notice of its election to begin any Extension Period at least one Business Day prior to the next succeeding Interest Payment Date on which interest on this
Security would be payable but for such deferral or, with respect to the Securities issued to a Schwab Capital Trust, so long as such Securities are held by such Schwab 

  

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Capital Trust, prior to the earlier of (i) the next succeeding date on which Distributions on the Preferred Securities would be payable but for such
deferral or (ii) the date the Administrative Trustees are required to give notice to any securities exchange or other applicable self-regulatory organization or to holders of such Preferred Securities on the record date such Distributions are
payable, but in any event not less than one Business Day prior to such record date.] 
 Payment of the principal of (and premium, if any) and
interest on this Security will be made at the office or agency of the Company maintained for that purpose in the United States, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public
and private debts; provided, however, that at the option of the Company payment of interest may be made (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Securities Register or (ii) by
wire transfer in immediately available funds at such place and to such account as may be designated by the Person entitled thereto as specified in the Securities Register. 
 The indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and subject in right of payments to the prior
payment in full of all Senior Debt, and this Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the same, (a) agrees to and shall be bound by such provisions,
(b) authorizes and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee his attorney-in-fact for any and all such purposes. Each
Holder hereof, by his acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Debt, whether now outstanding or hereafter incurred, and waives reliance by
each such holder upon said provisions. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

 -22- 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

  

			
	THE CHARLES SCHWAB CORPORATION
		
	 By:
	 	  

		 	Chief Executive Officer, President,
		 	Chief Financial Officer or Vice President

  

	
	 Attest:

	
	  

	 Secretary or Assistant Secretary

 Section 2.3 Form of Reverse of Security. 
 This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or
more series under a Junior Subordinated Indenture, dated as of                     
            , 200     (herein called the “Indenture”), between the Company and The Bank of New York Trust Company, N.A., as Trustee (herein
called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Trustee, the Company and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face
hereof, limited in aggregate principal amount to $ . 
 All terms used in this Security are defined in the Indenture or in the Amended and
Restated Trust Agreement, dated as of                                  ,
20    , as amended (the “Trust Agreement”), for Schwab Capital Trust             , among The Charles Schwab Corporation, as Depositor, and the
Trustees named therein, shall have the meanings assigned to them in the Indenture or the Trust Agreement, as the case may be. 
 The Company
may at any time, at its option, on or after                     
            , 20    , and subject to the terms and conditions of Article XI of the Indenture, redeem this Security in whole at any time or in part from
time to time, without premium or penalty, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, including Additional Interest, if any, to the Redemption Date. 
  

 -23- 

 [If applicable, insert: Subject to obtaining prior approval from the Federal Reserve if then required
under applicable capital adequacy guidelines, regulations or policies of the Federal Reserve, if at any time, a Tax Event, a Capital Treatment Event or an Investment Company Event shall occur and be continuing (each a “Special Event”) in
respect of a Schwab Capital Trust, the Company may, at its option upon not less than 30 nor more than 60 days’ notice, at any time within 90 days of the occurrence of such Special Event redeem this Security, in whole but not in part, subject to
the provisions of Article XI of the Indenture, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, including Additional Interest, if any, to the Redemption Date; provided, however, that if at the
time there is available to the Company or the Trust the opportunity to eliminate, within such 90-day period, the Special Event by taking some ministerial action, such as filing a form or making an election or pursuing some other similar reasonable
measure that will have no adverse effect on the Trust, the Company or the Holders, then the Company or the Trust will pursue such measure in lieu of redemption.] 
 The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of this Security upon compliance by the Company with certain conditions set forth in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee at any time to enter into a supplemental indenture or
indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the Securities, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of
all series to be affected by such supplemental indenture. The Indenture also contains provisions permitting Holders of specified percentages in principal amount of the Securities of all series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security. 
 [If the Security is not a Discount Security: As provided in and subject to the provisions of the Indenture, if an
Event of Default with respect to the Securities of this series at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of this
series may declare the principal amount of all the Securities of this series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), provided that, in the case of the Securities of this
series issued to a Schwab Capital Trust, if upon an Event of Default, the Trustee or the Holders 

  

 -24- 

 
of not less than 25% in principal amount of the Outstanding Securities of this series fail to declare the principal of all the Securities of this series to
be immediately due and payable, the holders of at least 25% in aggregate Liquidation Amount of the Preferred Securities then outstanding shall have the right by a notice in writing to the Company and the Trustee; and upon any such declaration the
principal amount of and the accrued interest (including any Additional Interest) on all the Securities of this series shall become immediately due and payable, provided that, the payment of principal and interest (including any Additional Interest)
on such Securities shall remain subordinated to the extent provided in Article XIII of the Indenture.] 
 [If the Security is a Discount
Security: As provided in and subject to the provisions of the Indenture, if an Event of Default with respect to the Securities of this series at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of
not less than such portion of the principal amount as may be specified in the terms of this series may declare an amount of principal of the Securities of this series to be due and payable immediately, by a notice in writing to the Company (and to
the Trustee if given by Holders), provided that, in the case of the Securities of this series issued to a Schwab Capital Trust, if upon an Event of Default, the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Securities of this series fail to declare the principal of all the Securities of this series to be immediately due and payable, the holders of at least 25% in aggregate Liquidation Amount of the Preferred Securities then outstanding shall have the
right by a notice in writing to the Company and the Trustee. Such amount shall be equal to—insert formula for determining the amount. Upon any such declaration, such amount of the principal of and the accrued interest (including any Additional
Interest) on all the Securities of this series shall become immediately due and payable, provided that the payment of principal and interest (including any Additional Interest) on such Securities shall remain subordinated to the extent provided in
Article XIII of the Indenture. Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal and overdue interest (in each case to the extent that the payment of such interest shall
be legally enforceable), all of the Company’s obligations in respect of the payment of the principal of and interest, if any, on this Security shall terminate.] 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and
premium, if any) and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 
 As provided
in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Securities Register, upon surrender of this Security for registration of transfer at the office or agency of the Company
maintained under Section 10.2 of the Indenture duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities 

  

 -25- 

 
Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series, of
authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this
Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 The Securities of this series are
issuable only in registered form without coupons in denominations of $25 and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of such series of a different authorized denomination, as requested by the Holder surrendering the same. 
 The Company and, by its acceptance of this Security or a beneficial interest therein, the Holder of, and any Person that acquires a beneficial interest in, this Security agree that for United States Federal, State and local tax purposes it
is intended that this Security constitute indebtedness. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 Section 2.4 Additional Provisions Required in
Global Security. 
 Any Global Security issued hereunder shall, in addition to the provisions contained in Sections 2.2 and 2.3, bear a
legend in substantially the following form: 
 “This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary or a nominee of a Depositary. This Security is exchangeable for Securities registered in the name of a person other than the Depositary or its nominee only in the limited
circumstances described in the Indenture and may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary.” 
  

 -26- 

 Section 2.5 Form of Trustee’s Certificate of Authentication. 
 This is one of the Securities referred to in the within mentioned Indenture. 
  

							
	 Dated:
	 		 	 THE BANK OF NEW YORK TRUST
 COMPANY, N.A.,
as Trustee

				
		 		 	By:	 	  

		 		 		 	Authorized officer

 ARTICLE III 
 THE SECURITIES 
 Section 3.1 Title and Terms. 
 The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. 
 The Securities may be issued in one or more series. There shall be established in or pursuant to a Board Resolution, and set forth in an Officers’
Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of a series: 
 (a) the title
of the Securities of such series, which shall distinguish the Securities of the series from all other Securities; 
 (b) the limit, if any,
upon the aggregate principal amount of the Securities of such series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of the series pursuant to Section 3.4, 3.5, 3.6, 9.6 or 11.6 and except for any Securities which, pursuant to Section 3.3, are deemed never to have been authenticated and delivered hereunder); provided, however, that
the authorized aggregate principal amount of such series may be increased above such amount by a Board Resolution to such effect; 
 (c) the
Stated Maturity or Maturities on which the principal of the Securities of such series is payable or the method of determination thereof; 
 (d) the rate or rates, if any, at which the Securities of such series shall bear interest, if any, the rate or rates and extent to which Additional Interest, if any, shall be payable in respect of any Securities of such series, the Interest
Payment Dates on which such interest shall be payable, the right, pursuant to Section 3.11 or as otherwise set forth 

  

 -27- 

 
therein, of the Company to defer or extend an Interest Payment Date, and the Regular Record Date for the interest payable on any Interest Payment Date or the
method by which any of the foregoing shall be determined; 
 (e) the place or places where the principal of (and premium, if any) and
interest on the Securities of such series shall be payable, the place or places where the Securities of such series may be presented for registration of transfer or exchange, and the place or places where notices and demands to or upon the Company
in respect of the Securities of such series may be made; 
 (f) the period or periods within or the date or dates on which, if any, the price
or prices at which and the terms and conditions upon which the Securities of such series may be redeemed, in whole or in part, at the option of the Company; 
 (g) the obligation or the right, if any, of the Company to redeem, repay or purchase the Securities of such series pursuant to any sinking fund, amortization or analogous provisions, or at the option of a Holder
thereof, and the period or periods within which, the price or prices at which, the currency or currencies (including currency unit or units) in which and the other terms and conditions upon which Securities of the series shall be redeemed, repaid or
purchased, in whole or in part, pursuant to such obligation; 
 (h) the denominations in which any Securities of such series shall be
issuable, if other than denominations of $25 and any integral multiple thereof; 
 (i) if other than Dollars, the currency or currencies
(including currency unit or units) in which the principal of (and premium, if any) and interest, if any, on the Securities of the series shall be payable, or in which the Securities of the series shall be denominated; 
 (j) the additions, modifications or deletions, if any, in the Events of Default or covenants of the Company set forth herein with respect to the
Securities of such series; 
 (k) if other than the principal amount thereof, the portion of the principal amount of Securities of such
series that shall be payable upon declaration of acceleration of the Maturity thereof; 
 (l) the additions or changes, if any, to this
Indenture with respect to the Securities of such series as shall be necessary to permit or facilitate the issuance of the Securities of such series in bearer form, registrable or not registrable as to principal, and with or without interest coupons;

 (m) any index or indices used to determine the amount of payments of principal of and premium, if any, on the Securities of such series or
the manner in which such amounts will be determined; 
  

 -28- 

 (n) whether the Securities of the series, or any portion thereof, shall initially be issuable in the form
of a temporary Global Security representing all or such portion of the Securities of such series and provisions for the exchange of such temporary Global Security for definitive Securities of such series; 
 (o) if applicable, that any Securities of the series shall be issuable in whole or in part in the form of one or more Global Securities and, in such
case, the respective Depositaries for such Global Securities, the form of any legend or legends which shall be borne by any such Global Security in addition to or in lieu of that set forth in Section 2.4 and any circumstances in addition to or
in lieu of those set forth in Section 3.5 in which any such Global Security may be exchanged in whole or in part for Securities registered, and any transfer of such Global Security in whole or in part may be registered, in the name or names of
Persons other than the Depositary for such Global Security or a nominee thereof; 
 (p) the appointment of any Paying Agent or Agents for the
Securities of such series; 
 (q) the terms of any right to convert or exchange Securities of such series into any other securities or
property of the Company, and the additions or changes, if any, to this Indenture with respect to the Securities of such series to permit or facilitate such conversion or exchange; 
 (r) the form or forms of the Guarantee Agreement and the Schwab Capital Trust Agreement if different from the forms attached hereto as Annexes A and B,
respectively; 
 (s) the relative degree, if any, to which the Securities of the series shall be senior to or be subordinated to other series
of Securities in right of payment, whether such other series of Securities are Outstanding or not; 
 (t) the governing law of this Indenture
and the Securities; and 
 (v) any other terms of the Securities of such series (which terms shall not be inconsistent with the provisions of
this Indenture). 
 All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise
be provided herein or in or pursuant to such Board Resolution and set forth in such Officers’ Certificate or in any such indenture supplemental hereto. 
 If any of the terms of the Securities of any series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant
Secretary of the Company and delivered to 

  

 -29- 

 
the Trustee at or prior to the delivery of the Officers’ Certificate setting forth the terms of the series. 
 The Securities shall be subordinated in right of payment to Senior Debt as provided in Article XIII. 
 Section 3.2 Denominations. 
 The Securities of
each series shall be issuable in registered form without coupons and shall be issuable in denominations of $25 and any integral multiple thereof, unless otherwise specified as contemplated by Section 3.1. 
 Section 3.3 Execution, Authentication, Delivery and Dating. 
 The Securities shall be executed on behalf of the Company by its Chairman of the Board, Vice Chairman of the Board, Chief Executive Officer (or any co-Chief Executive Officer if the title is allocated to more than one
Person), President, Chief Financial Officer or one of its Vice Presidents under its corporate seal reproduced or impressed thereon and attested by its Treasurer, Secretary or one of its Assistant or Associate Treasurers or its Assistant Secretaries.
The signature of any of these officers on the Securities may be manual or facsimile. 
 Securities bearing the manual or facsimile signatures
of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did
not hold such offices at the date of such Securities. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver such Securities. If the form or terms of the Securities of the series have been
established by or pursuant to one or more Board Resolutions as permitted by Sections 2.1 and 3.1, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall
be provided with, and (subject to Section 6.1) shall be fully protected in conclusively relying upon, an Opinion of Counsel stating, 
 (1) if the form of such Securities has been established by or pursuant to Board Resolution as permitted by Section 2.1, that such form has been established in conformity with the provisions of this Indenture; 
 (2) if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 3.1, that such terms have been
established in conformity with the provisions of this Indenture; and 
  

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 (3) that such Securities, when authenticated and delivered by the Trustee and issued by the Company in
the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. If such form or terms have been so established, the Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee. 
 Notwithstanding the provisions of Section 3.1 and of the preceding paragraph, if all Securities of a series are not to be
originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate otherwise required pursuant to Section 3.1 or the Company Order and Opinion of Counsel otherwise required pursuant to such preceding paragraph at
or prior to the authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued. 
 Each Security shall be dated the date of its authentication. 
 No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by the manual signature of one of its authorized officers, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in
Section 3.9, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture. 
 Section 3.4 Temporary Securities. 
 Pending the
preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in
any denomination, substantially of the tenor of the definitive Securities of such series in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities. 
  

 -31- 

 If temporary Securities of any series are issued, the Company will cause definitive Securities of such
series to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at the office or agency of the
Company designated for that purpose without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations having the same Original Issue Date and Stated Maturity and having the same terms as such temporary Securities. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series. 
 Section 3.5 Registration,
Transfer and Exchange. 
 The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register in which, subject to
such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. Such register is herein sometimes referred to as the “Securities Register.” The Trustee is hereby
appointed “Securities Registrar” for the purpose of registering Securities and transfers of Securities as herein provided. 
 Upon
surrender for registration of transfer of any Security at the office or agency of the Company designated for that purpose the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of the same series of any authorized denominations, of a like aggregate principal amount, of the same Original Issue Date and Stated Maturity and having the same terms. 
 At the option of the Holder, Securities may be exchanged for other Securities of the same series of any authorized denominations, of a like aggregate
principal amount, of the same Original Issue Date and Stated Maturity and having the same terms, upon surrender of the Securities to be exchanged at such office or agency. Whenever any securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 
 All
Securities issued upon any transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or
exchange. 
 Every Security presented or surrendered for transfer or exchange shall (if so required by the Company or the Securities
Registrar) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and 

  

 -32- 

 
the Securities Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing. 
 No service charge shall be made to a Holder for any transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Securities. 
 The provisions of
Clauses (1), (2), (3) and (4) below shall apply only to Global Securities: 
 (1) Each Global Security authenticated under this
Indenture shall be registered in the name of the Depositary designated for such Global Security or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture. 
 (2) Notwithstanding any other provision in this Indenture, no Global Security may be
exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any Person other than the Depositary for such Global Security or a nominee thereof unless
(A) such Depositary (i) has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be a clearing agency registered under the Exchange Act at a time when the
Depositary is required to be so registered to act as depositary, in each case unless the Company has approved a successor Depositary within 90 days, (B) there shall have occurred and be continuing an Event of Default with respect to such Global
Security, (C) the Company in its sole discretion determines that such Global Security will be so exchangeable or transferable or (D) there shall exist such circumstances, if any, in addition to or in lieu of the foregoing as have been
specified for this purpose as contemplated by Section 3.1. 
 (3) Subject to Clause (2) above, any exchange of a Global Security
for other Securities may be made in whole or in part, and all Securities issued in exchange for a Global Security or any portion thereof shall be registered in such names as the Depositary for such Global Security shall direct. 
 (4) Every Security authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Security or any portion
thereof, whether pursuant to this Section, Section 3.4, 3.6, 9.6 or 11.6 or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global Security, unless such Security is registered in the name of a Person other than
the Depositary for such Global Security or a nominee thereof. 
  

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 Neither the Company nor the Trustee shall be required, pursuant to the provisions of this Section,
(a) to issue, transfer or exchange any Security of any series during a period beginning at the opening of business 15 days before the day of selection for redemption of Securities pursuant to Article XI and ending at the close of business on
the day of mailing of notice of redemption or (b) to transfer or exchange any Security so selected for redemption in whole or in part, except, in the case of any Security to be redeemed in part, any portion thereof not to be redeemed.

 Section 3.6 Mutilated, Destroyed, Lost and Stolen Securities. 
 If any mutilated Security is surrendered to the Trustee together with such security or indemnity as may be required by the Company or the Trustee to save each of them harmless, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of the same issue and series of like tenor and principal amount, having the same Original Issue Date and Stated Maturity, and bearing a number not contemporaneously
outstanding. 
 If there shall be delivered to the Company and to the Trustee (i) evidence to their satisfaction of the destruction,
loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same issue and series of like tenor and principal amount, having the
same Original Issue Date and Stated Maturity as such destroyed, lost or stolen Security, and bearing a number not contemporaneously outstanding. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
 Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee, its agents and counsel) connected therewith. 
 Every new Security issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities duly issued hereunder. 
  

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 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights
and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 Section 3.7 Payment of Interest;
Interest Rights Preserved. 
 Interest on any Security of any series which is payable, and is punctually paid or duly provided for, on any
Interest Payment Date, shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest in respect of Securities of such series,
except that, unless otherwise provided in the Securities of such series, interest payable on the Stated Maturity of the principal of a Security shall be paid to the Person to whom principal is paid. The initial payment of interest on any Security of
any series which is issued between a Regular Record Date and the related Interest Payment Date shall be payable as provided in such Security or in the Board Resolution pursuant to Section 3.1 with respect to the related series of Securities. At
the option of the Company, interest on any series of Securities may be paid (i) by check mailed to the address of the Person entitled thereto as it shall appear on the Securities Register of such series or (ii) by wire transfer in
immediately available funds at such place and to such account as designated by the Person entitled thereto as specified in the Securities Register of such series. 
 Any interest on any Security which is payable, but is not timely paid or duly provided for, on any Interest Payment Date for Securities of such series (herein called “Defaulted Interest”), shall forthwith
cease to be payable to the registered Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in Clause (1) or
(2) below: 
 (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such
series in respect of which interest is in default (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner.
The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such 

  

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Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be mailed, first class, postage prepaid, to each Holder of a Security of such series at the address of such Holder as it appears in the Securities Register not less than 10 days prior to such Special Record Date. The Trustee
shall in the name and at the expense of the Company, cause a similar notice to be published at least once in a newspaper, customarily published in the English language on each Business Day and of general circulation in the Borough of Manhattan, The
City of New York, but such publication shall not be a condition precedent to the establishment of such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered on such Special Record Date and shall no longer be payable pursuant to the
following Clause (2). 
 (2) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any securities exchange or automated quotation system on which the Securities of the series in respect of which interest is in default may be listed or traded and, upon such notice as may be required by such exchange (or by the
Trustee if the Securities are not listed), if, after notice given by the Company to the Trustee of the proposed payment pursuant to this Clause, such payment shall be deemed practicable by the Trustee. 
 Any interest on any Security which is deferred or extended pursuant to Section 3.11 shall not be Defaulted Interest for purposes of this
Section 3.7. 
 Subject to the foregoing provisions of this Section, each Security delivered under this Indenture upon transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 
 Section 3.8 Persons Deemed Owners. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name any Security is registered as the owner of such Security for the purpose of receiving payment of principal of and (subject to Section 3.7) any interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 
 Section 3.9 Cancellation. 
 All Securities surrendered for payment, redemption, transfer or exchange shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee, and 

  

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any such Securities and Securities surrendered directly to the Trustee for any such purpose shall be promptly canceled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. All canceled Securities shall be disposed of by the Trustee in its customary manner
and the Trustee shall deliver to the Company a certificate of such disposal upon its request therefor. 
 Section 3.10 Computation of Interest. 

 Except as otherwise specified as contemplated by Section 3.1 for Securities of any series, interest on the Securities of each series
for any period shall be computed on the basis of a 360-day year of twelve 30-day months and interest on the Securities of each series for any partial period shall be computed on the basis of the number of days elapsed in a 360-day year of twelve
30-day months. 
 Section 3.11 Deferrals of Interest Payment Dates. 
 If specified as contemplated by Section 2.1 or Section 3.1 with respect to the Securities of a particular series, so long as no Event of Default has occurred and is continuing, the Company shall have the
right, at any time during the term of such series, from time to time to defer the payment of interest on such Securities for such period or periods as may be specified as contemplated by Section 3.1 (each, an “Extension Period”)
during which Extension Periods the Company shall have the right to make partial payments of interest on any Interest Payment Date. No Extension Period shall end on a date other than an Interest Payment Date. At the end of any such Extension Period
the Company shall pay all interest then accrued and unpaid on the Securities (together with Additional Interest thereon, if any, at the rate specified for the Securities of such series to the extent permitted by applicable law) to the Persons in
whose names that the Securities are registered at the close of business on the Regular Record Date with respect to the Interest Payment Date at the end of such Extension Period; provided, however, that no Extension Period shall extend beyond the
Stated Maturity of the principal of the Securities of such series; and provided, further, that during any such Extension Period, the Company shall not, and shall not permit any Subsidiary to, (i) declare or pay any dividends or distributions
on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company’s capital stock, or (ii) make any payment of principal of or interest or premium, if any, on or repay, repurchase or redeem any debt
security of the Company that ranks pari passu with or junior in interest to the Securities of such series or make any guarantee payments with respect to any guarantee by the Company of the debt securities of any Subsidiary of the Company that
by their terms rank pari passu with or junior in interest to the Securities of such series (other than (a) dividends or distributions in the capital stock of the Company, (b) any declaration of a 

  

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dividend in connection with the implementation of a Rights Plan, the issuance of any rights, or the redemption or repurchase of any rights distributed
pursuant to a Rights Plan, (c) payments under any Schwab Guarantee and (d) purchases of Common Stock related to the issuance of Common Stock or rights under any of the Company’s benefit plans for its directors, officers or employees,
related to the issuance of Common Stock or rights under a dividend reinvestment and stock purchase plan, or related to the issuance of Common Stock (or securities convertible into or exchangeable for Common Stock) as consideration in an acquisition
transaction that was entered into prior to the commencement of such Extension Period). Prior to the termination of any such Extension Period, the Company may further defer the payment of interest, provided that no Extension Period shall exceed the
period or periods specified in such Securities or extend beyond the Stated Maturity of the principal of such Securities. Upon termination of any Extension Period and upon the payment of all accrued and unpaid interest and any Additional Interest
then due on any Interest Payment Date, the Company may elect to begin a new Extension Period, subject to the above requirements. No interest shall be due and payable during an Extension Period, except at the end thereof. The Company shall give the
Holders of the Securities of such series and the Trustee notice of its election to begin any such Extension Period at least one Business Day prior to the next succeeding Interest Payment Date on which interest on Securities of such series would be
payable but for such deferral or, with respect to the Securities issued to a Schwab Capital Trust, so long as such Securities are held by such Schwab Capital Trust, prior to the earlier of (i) the next succeeding date on which Distributions on
the Preferred Securities would be payable but for such deferral or (ii) the date the Administrative Trustees of such Schwab Capital Trust are required to give notice to any securities exchange or other applicable self-regulatory organization or
to holders of such Preferred Securities on the record date such Distributions are payable, but in any event not less than one Business Day prior to such record date. 
 The Trustee shall promptly give notice of the Company’s election to begin any such Extension Period to the Holders of the Outstanding Securities of such series. 
 Section 3.12 Right of Set-Off. 
 With respect to
the Securities of a series issued to a Schwab Capital Trust, notwithstanding anything to the contrary in this Indenture, the Company shall have the right to set-off any payment it is otherwise required to make thereunder in respect of any such
Security to the extent that the Company has theretofore made, or is concurrently on the date of such payment making, a payment under the Schwab Guarantee relating to such Security or under Section 5.8 of this Indenture. 
 Section 3.13 Agreed Tax Treatment. 
 Each
Security issued hereunder shall provide that the Company and, by its acceptance of a Security or a beneficial interest therein, the Holder of, and any Person 

  

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that acquires a beneficial interest in, such Security agree that for United States Federal, State and local tax purposes it is intended that such Security
constitute indebtedness. 
 Section 3.14 Shortening or Extension of Stated Maturity. 
 If specified as contemplated by Section 2.1 or Section 3.1 with respect to the Securities of a particular series, the Company shall have the
right to (i) shorten the Stated Maturity of the principal of the Securities of such series at any time to any date not earlier than the first date on which the Company has the right to redeem the Securities of such series and (ii) extend
the Stated Maturity of the principal of the Securities of such series at any time at its election for one or more periods, but in no event to a date later than the 49th anniversary of the first Interest Payment Date following the Original Issue Date
of the Securities of such series; provided that, if the Company elects to exercise its right to extend the Stated Maturity of the principal of the Securities of such series pursuant to clause (ii), above, at the time such election is made and at the
time of extension (A) the Company is not in bankruptcy, otherwise insolvent or in liquidation, (B) the Company is not in default in the payment of any interest or principal on such Securities, (C) in the case of any series of
Securities issued to a Schwab Capital Trust, such Schwab Capital Trust is not in arrears on payments of Distributions on the Preferred Securities issued by the Schwab Capital Trust and no deferred Distributions are accumulated and (D) such
Securities are rated not less than BBB- by S&P or Baa3 by Moody’s or the equivalent by any other nationally recognized statistical rating organization. In the event the Company elects to shorten or extend the Stated Maturity of the
Securities, it shall give notice to the Trustee, and the Trustee shall give notice of such shortening or extension to the Holders, no less than 30 and no more than 60 days prior to the effectiveness thereof. 
 Section 3.15 CUSIP Numbers. 
 The Company in
issuing the Securities may use “CUSIP” and/or other similar numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” and/or other numbers in notices of redemption as a convenience to Holders; provided that
any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the “CUSIP” and/or other numbers. 
  

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 ARTICLE IV 
 SATISFACTION AND DISCHARGE 
 Section 4.1 Satisfaction and Discharge of Indenture. 
 This Indenture shall upon Company Request cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for and as otherwise provided in this Section 4.1) and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when 
 (1) either 
 (A) all Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 3.6 and (ii) Securities for whose
payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.3) have been delivered to the Trustee for
cancellation; or 
 (B) all such Securities not theretofore delivered to the Trustee for cancellation 
 (i) have become due and payable, or 
 (ii)
will become due and payable at their Stated Maturity within one year of the date of deposit, or 
 (iii) are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, 
 and the Company, in the case of Clause (B) (i), (ii) or (iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose an amount in the currency or
currencies in which the Securities of such series are payable sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest
(including any Additional Interest) to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; 
 (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 
  

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 (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each
stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. 
 Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 6.7, the obligations of the Trustee to any Authenticating Agent under Section 6.14 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the Trustee under Section 4.2 and the last paragraph of Section 10.3 shall survive such satisfaction and discharge.

 Section 4.2 Application of Trust Money. 
 Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the Trustee pursuant to Section 4.1 shall be held in trust and applied by the Trustee, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest
for the payment of which such money or obligations have been deposited with or received by the Trustee. 
 ARTICLE V 
 REMEDIES 
 Section 5.1 Events of Default. 

 “Event of Default”, wherever used herein with respect to the Securities of any series, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body): 
 (1) default in the payment of any interest upon any Security of that series, including any Additional Interest in
respect thereof, when it becomes due and payable, and continuance of such default for a period of 30 days (subject to the deferral of any interest payment date in the case of an Extension Period); or 
 (2) default in the payment of the principal of (or premium, if any, on) any Security of that series at its Maturity; or 
 (3) default in the performance, or breach, in any material respect, of any covenant or warranty of the Company in this Indenture (other than a covenant
or warranty a default in the performance of which or the breach of which is elsewhere in this 

  

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Section specifically dealt with), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied;
or 
 (4) the entry of a decree or order by a court having jurisdiction in the premises adjudging the Company a bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or appointing a
receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order
unstayed and in effect for a period of 60 consecutive days; or 
 (5) the institution by the Company of proceedings to be adjudicated a
bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of
any substantial part of its property, or the making by it of an assignment for the benefit for creditors, or the admission by it in writing of its inability to pay its debts generally as they become due and its willingness to be adjudicated a
bankrupt, or the taking of corporate action by the Company in furtherance of any such action; or 
 (6) any other Event of Default provided
with respect to Securities of that series. 
 Section 5.2 Acceleration of Maturity; Rescission and Annulment. 
 If an Event of Default (other than an Event of Default specified in Section 5.1(4) or 5.1(5)) with respect to Securities of any series at the time
Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal amount (or, if the Securities of that series
are Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of all the Securities of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), provided that, in the case of the Securities of this series issued to a Schwab Capital Trust, if upon an Event of Default, the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of this series
fail to declare the principal amount (or, if the Securities of that series are Discount Securities, such portion of the principal amount as may be specified 

  

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in the terms of the series) of all the Securities of this series to be immediately due and payable, the holders of at least 25% in aggregate Liquidation
Amount of the Preferred Securities then outstanding shall have the right by a notice in writing to the Company and the Trustee; and upon any such declaration such principal amount (or specified portion thereof) of and the accrued interest (including
any Additional Interest) on all the Securities of such series shall become immediately due and payable. Payment of principal and interest (including any Additional Interest) on such Securities shall remain subordinated to the extent provided in
Article XIII notwithstanding that such amount shall become immediately due and payable as herein provided. If an Event of Default specified in Section 5.1(4) or 5.1(5) with respect to Securities of any series at the time Outstanding occurs, the
principal amount of all the Securities of that series (or, if the Securities of that series are Discount Securities, such portion of the principal amount of such Securities as may be specified by the terms of that series) shall automatically, and
without any declaration or other action on the part of the Trustee or any Holder, become immediately due and payable. 
 At any time after
such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a
majority in principal amount of the Outstanding Securities of that series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if: 
 (1) the Company has paid or deposited with the Trustee a sum sufficient to pay: 
 (A) all overdue installments of interest (including any Additional Interest) on all Securities of that series, 
 (B) the principal of (and premium, if any, on) any Securities of that series which have become due otherwise than by such declaration of acceleration and
interest thereon at the rate borne by the Securities, and 
 (C) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and 
 (2) all Events of Default with respect to
Securities of that series, other than the non-payment of the principal of Securities of that series which has become due solely by such acceleration, have been cured or waived as provided in Section 5.13. 
 In the case of Securities of a series issued to a Schwab Capital Trust, the holders of a majority in aggregate Liquidation Amount of the related series
of Preferred Securities issued by such Schwab Capital Trust shall also have the right to rescind and 

  

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annul such declaration and its consequences by written notice to the Company and the Trustee, subject to the satisfaction of the conditions set forth in
Clauses (1) and (2) above of this Section 5.2. 
 No such rescission shall affect any subsequent default or impair any right
consequent thereon. 
 Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee. 
 The Company covenants that if: 
 (1) default
is made in the payment of any installment of interest (including any Additional Interest) on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or 
 (2) default is made in the payment of the principal of (and premium, if any, on) any Security at the Maturity thereof, the Company will, upon demand of
the Trustee, pay to the Trustee, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal, including any sinking fund payment or analogous obligations (and premium, if any) and
interest (including any Additional Interest); and, in addition thereto, all amounts owing the Trustee, its agents and counsel under Section 6.7. 
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and
unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon the Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out
of the property of the Company or any other obligor upon the Securities, wherever situated. 
 If an Event of Default with respect to
Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

Section 5.4 Trustee May File Proofs of Claim. 
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the
property of the Company or of such other obligor or their creditors, 
  

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 (a) the Trustee (irrespective of whether the principal of the Securities of any series shall then be due
and payable as therein expressed or by declaration of acceleration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal (and premium, if any) or interest (including any
Additional Interest)) shall be entitled and empowered, by intervention in such proceeding or otherwise, 
 (i) to file and prove a claim for
the whole amount of principal (or, if the Securities of that series are Discount Securities, such portion of the principal amounts as may be due and payable pursuant to a declaration in accordance with Section 6.2 and premium, if any) and
interest (including any Additional Interest) owing and unpaid in respect to the Securities and to file such other papers or documents as may be necessary or advisable and to take any and all actions as are authorized under the Trust Indenture Act in
order to have the claims of the Holders and any predecessor to the Trustee under Section 6.7 allowed in any such judicial proceedings; and 
 (ii) in particular, the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same in accordance with Section 5.6; and 
 (b) any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee for distribution in accordance with Section 5.6, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to
it and any predecessor Trustee under Section 6.7. 
 Nothing herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding; provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other similar committee. 
 Section 5.5 Trustee May Enforce Claim Without Possession of Securities. 
 All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of all the amounts owing the Trustee and any predecessor
Trustee under Section 6.7, its agents and counsel, 

  

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be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered. 
 Section 5.6 Application of Money Collected. 
 Any
money or property collected or to be applied by the Trustee with respect to a series of Securities pursuant to this Article, after reserving therefrom by the Trustee an amount sufficient, in the determination of the Trustee, to cover the expenses,
disbursements and advances of the Trustee that may be incurred thereafter, shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money or property on account of principal (or
premium, if any) or interest (including any Additional Interest), upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 
 FIRST: To the payment of all amounts due the Trustee, its agents and counsel and any predecessor Trustee, its agents and counsel under Section 6.7;

 SECOND: Subject to Article XIII, to the payment of the amounts then due and unpaid upon such series of Securities for principal (and
premium, if any) and interest (including any Additional Interest), in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such
series of Securities for principal (and premium, if any) and interest (including any Additional Interest), respectively; and 
 THIRD: The
balance, if any, to the Company. 
 Section 5.7 Limitation on Suits. 
 No Holder of any Securities of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture or for
the appointment of a receiver, assignee, trustee, liquidator, sequestrator (or other similar official) or for any other remedy hereunder, unless: 
 (1) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that series; 
 (2) the Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its
own name as Trustee hereunder; 
 (3) such Holder or Holders have offered to the Trustee security or indemnity satisfactory to it against the
costs, expenses and liabilities to be incurred in compliance with such request; 
  

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 (4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed
to institute any such proceeding; and 
 (5) no direction inconsistent with such written request has been given to the Trustee during such
60-day period by the Holders of a majority in principal amount of the Outstanding Securities of that series; 
 it being understood and intended that no one
or more of such Holders shall have any right in any manner whatever by virtue of, or by availing itself of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Securities, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders. 
 Section 5.8 Unconditional Right of Holders to Receive Principal, Premium and Interest; Direct Action by Holders of Preferred Securities. 
 Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right which is absolute and unconditional to receive
payment of the principal of (and premium, if any) and (subject to Section 3.7) interest (including any Additional Interest) on such Security on the respective Stated Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder. In the case of Securities of a series issued to a Schwab Capital Trust, any holder of the
corresponding series of Preferred Securities issued by such Schwab Capital Trust shall have the right, upon the occurrence of an Event of Default described in Section 5.1(1) or 5.1(2), to institute a suit directly against the Company for
enforcement of payment to such holder of principal of (premium, if any) and (subject to Section 3.7) interest (including any Additional Interest) of the Securities having a principal amount equal to the aggregate Liquidation Amount of such
Preferred Securities of the corresponding series held by such holder. 
 Section 5.9 Restoration of Rights and Remedies. 
 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case the Company, the Trustee and the Holders shall, subject to any determination in such proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 
  

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 Section 5.10 Rights and Remedies Cumulative. 
 Except as otherwise provided in the last paragraph of Section 3.6, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or
in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
 Section 5.11 Delay or Omission Not Waiver. 
 No
delay or omission of the Trustee, any Holder of any Security or any holder of any Preferred Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of
Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders and the right and remedy given to the holders of Preferred Securities by Section 5.8 may be exercised from time to time,
and as often as may be deemed expedient, by the Trustee, the Holders or the holders of the Preferred Securities, as the case may be. 
 Section 5.12
Control by Holders. 
 The Holders of a majority in principal amount of the Outstanding Securities of any series shall have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series, provided that: 
 (1) such direction shall not be in conflict with any rule of law or with this Indenture, 
 (2) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and 
 (3) subject to the provisions of Section 6.1, the Trustee shall have the right to decline to follow such direction if a Responsible Officer or
Officers of the Trustee shall, in good faith, determine that the proceeding so directed would involve the Trustee in personal liability or would otherwise be contrary to applicable law. 
 Section 5.13 Waiver of Past Defaults. 
 The Holders of not less than a majority in principal
amount of the Outstanding Securities of any series and, in the case of any Securities of a series issued to a Schwab Capital Trust, the holders of Preferred Securities issued by such Schwab Capital Trust, 

  

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may waive any past default hereunder and its consequences with respect to such series except a default: 
 (1) in the payment of the principal of (or premium, if any) or interest (including any Additional Interest) on any Security of such series, or 

(2) in respect of a covenant or provision hereof which under Article IX cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected. 
 Any such waiver shall be deemed to be on behalf of the Holders of all the Securities of such
series or, in the case of a waiver by holders of Preferred Securities issued by such Schwab Capital Trust, by all holders of Preferred Securities issued by such Schwab Capital Trust. 
 Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
 Section 5.14
Undertaking for Costs. 
 All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding
in the aggregate more than 10% in principal amount of the Outstanding Securities of any series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest (including any Additional
Interest) on any Security on or after the respective Stated Maturities expressed in such Security. 
 Section 5.15 Waiver of Usury, Stay or Extension
Laws. 
 The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the
extent that it may lawfully do so) hereby expressly 

  

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waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
 ARTICLE VI 

THE TRUSTEE 
 Section 6.1 Certain Duties and
Responsibilities. 
 (a) Except during the continuance of an Event of Default, 
 (1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and 
 (2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture
(but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein). 
 (b) In case an Event of
Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his own affairs. 
 (c) No provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful misconduct except that 
 (1) this Subsection
shall not be construed to limit the effect of Subsection (a) of this Section; 
 (2) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and 
 (3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of Holders pursuant to Section 5.12 relating to the time, method
and place of conducting any 

  

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proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the
Securities of such series. 
 (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it. 
 (e) Whether or not therein expressly so provided, every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section. 
 Section 6.2
Notice of Defaults. 
 Within 90 days after actual knowledge by a Responsible Officer of the Trustee of the occurrence of any default
hereunder with respect to the Securities of any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as their names and addresses appear in the Securities Register, notice of such default, unless such default shall
have been cured or waived; provided, however, that, except in the case of a default in the payment of the principal of (or premium, if any) or interest (including any Additional Interest) on any Security of such series, the Trustee shall be fully
protected in withholding such notice if and so long as a committee of Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of Securities of such series; and provided,
further, that, in the case of any default of the character specified in Section 5.1(3), no such notice to Holders of Securities of such series shall be given until at least 30 days after the occurrence thereof. For the purpose of this Section,
the term “default” means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series. 
 Section 6.3 Certain Rights of Trustee. 
 Subject to the provisions of Section 6.1:

 (a) the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, Security, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper
party or parties; 
  

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 (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company
Request or Company Order and any resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution; 
 (c) whenever
in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed)
may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
 (d) the Trustee may consult with
counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
 (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of
the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such
request or direction; 
 (f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, indenture, Security or other paper or document, but the Trustee in its discretion may make such inquiry or investigation into such facts or
matters as it may see fit, and, if the Trustee shall determine to make such inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney; 
 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys
and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 
 (h) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this
Indenture; 
 (i) the Trustee shall not be deemed to have notice or be charged with knowledge of any default or Event of Default with respect
to the Securities for which it is acting as Trustee unless written notice of such default or Event of Default, as the case may be, is received by a responsible officer of Trustee at the Corporate Trust Office of the Trustee from the Company, any
other obligor upon such Securities or by any Holder of such Securities, and such notice references the Securities and this Indenture; 
  

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 (j) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without
limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder; 
 (k) the Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any persons authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded; and 
 (l) in no event shall the Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including, but not limited to, lost profits), irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 Section 6.4 Not Responsible for Recitals or Issuance of Securities. 
 The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of the Securities or the proceeds thereof. 
 Section 6.5 May Hold Securities. 
 The Trustee, any Authenticating Agent, any Paying Agent, any Securities Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections 6.8 and 6.13, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Securities Registrar or
such other agent. 
 Subject to the limitations imposed by the Trust Indenture Act, nothing in this Indenture shall prohibit the Trustee from
becoming and acting as trustee under other indentures under which other securities, or certificates of interest of participation in other securities, of the Company are outstanding in the same manner as if it were not Trustee hereunder. 

Section 6.6 Money Held in Trust. 
 Money held
by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability 

  

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for interest on any money received by it hereunder except as otherwise agreed with the Company. 
  

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 Section 6.7 Compensation and Reimbursement. 
 The Company agrees: 
 (1) to pay to each of
the Trustee, the Securities Registrar, the Authentication Agent and any Paying Agent, as the case may be, from time to time reasonable compensation for all services rendered by them, as may be applicable, hereunder in such amounts as the Company and
the Trustee, the Securities Registrar, the Authentication Agent and any Paying Agent, as the case may be, shall agree from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust); 
 (2) to reimburse each of the Trustee, the Securities Registrar, the Authentication Agent and any Paying Agent, as the case
may be, upon their request for all reasonable expenses, disbursements and advances incurred or made by any one of them in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of
their agents and counsel), except any such expense, disbursement or advance as shall be caused by its own negligence or bad faith; and 
 (3)
to the fullest extent permitted by applicable law, to indemnify each of the Trustee, the Securities Registrar, the Authentication Agent and any Paying Agent, as the case may be, and their predecessors, their officers, directors, shareholders,
employees and agents for, and to hold it harmless against, any loss, liability, tax, penalty, claim, damage or expense (including the reasonable compensation and the expenses and disbursements of their agents and counsel) of any kind or nature
whatsoever incurred without gross negligence or willful misconduct, arising out of or in connection with the acceptance or administration of this trust or the performance of their duties hereunder, including the enforcement of this provision and the
costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties hereunder. This indemnification shall survive the termination of this Agreement. This
Section 6.7 shall survive the termination of this Indenture or the earlier resignation or removal of the Trustee. 
 To secure the
Company’s payment obligations in this Section, the Company and the Holders agree that the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee. Such lien shall survive the satisfaction and
discharge of this Indenture. 
 In addition to and without prejudice to its rights hereunder, when the Property Trustee incurs expenses or
renders services in connection with a default or Event of Default, the expenses and the compensation for the services are intended to constitute expenses of administration under any applicable federal or state bankruptcy, receivership, insolvency or
similar law. 
  

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 “Trustee” for the purposes of this Section shall include any predecessor Trustee; provided,
however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not affect the rights of any other Trustee hereunder. 
 Section 6.8 Disqualification; Conflicting Interests. 
 If the Trustee has or shall acquire a conflicting interest within
the meaning of Section 310(b) of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

 Section 6.9 Corporate Trustee Required; Eligibility. 
 There shall at all times be a Trustee hereunder which shall be: 
 (a) a corporation organized and doing
business under the laws of the United States of America or of any State or Territory or the District of Columbia, authorized under such laws to exercise corporate trust powers and subject to supervision or examination by Federal, State, Territorial
or District of Columbia authority, or 
 (b) a corporation or other Person organized and doing business under the laws of a foreign
government that is permitted to act as Trustee pursuant to a rule, regulation or order of the Commission, authorized under such laws to exercise corporate trust powers, and subject to supervision or examination by authority of such foreign
government or a political subdivision thereof substantially equivalent to supervision or examination applicable to United States institutional trustees, 
 in either case having a combined capital and surplus of at least $50,000,000, subject to supervision or examination by Federal or State authority. If such corporation publishes reports of condition at least annually, pursuant to law or to
the requirements of the aforesaid supervising or examining authority, then, for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. Neither
the Company nor any Person directly or indirectly controlling, controlled by or under common control with the Company shall serve as Trustee for the Securities of any series issued hereunder. 
 Section 6.10 Resignation and Removal; Appointment of Successor. 
 (a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee under
Section 6.11. 
  

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 (b) The Trustee may resign at any time with respect to the Securities of one or more series by giving
written notice thereof to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition at the
expense of the Company any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 
 (c) The Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee
and to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the Trustee being removed may petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 
 (d) If at
any time: 
 (1) the Trustee shall fail to comply with Section 6.8 after written request therefor by the Company or by any Holder who has
been a bona fide Holder of a Security for at least six months, or 
 (2) the Trustee shall cease to be eligible under Section 6.9 and
shall fail to resign after written request therefor by the Company or by any such Holder, or 
 (3) the Trustee shall become incapable of
acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, 
 then, in any such case, (i) the Company, acting pursuant to the authority of a Board Resolution, may remove the Trustee
with respect to all Securities or (ii) subject to Section 5.14, any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees. 
 (e) If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause with respect to the Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee with respect to the Securities of that or those series. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, no successor Trustee with respect to the Securities of any series shall
have been so appointed by the Company and accepted appointment in the manner hereinafter provided, any Holder who has been a bona fide Holder of a Security for at least six months may, subject 

  

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to Section 5.14, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series. 
 (f) The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any series by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Securities
of such series as their names and addresses appear in the Securities Register. Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office. 
 Section 6.11 Acceptance of Appointment by Successor. 
 (a) In case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers
and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject, nevertheless, to its lien provided for in Section 6.7. 

(b) In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such
Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder 

  

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administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts, and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, subject, nevertheless, to its lien provided for in Section 6.7.

 (c) Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be. 
 (d) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article. 
 Section 6.12 Merger, Conversion, Consolidation or Succession to Business. 
 Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party,
or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated, and in case any Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities in
the name of such successor Trustee, and in all cases the certificate of authentication shall have the full force which it is provided anywhere in the Securities or in this Indenture that the certificate of the Trustee shall have. 
 Section 6.13 Preferential Collection of Claims Against Company. 
 If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of
claims against the Company (or any such other obligor). 
 Section 6.14 Appointment of Authenticating Agent. 
  

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 The Trustee may appoint an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon original issue and upon exchange, registration of transfer or partial redemption thereof or pursuant to Section 3.6, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the United States of America, or of any State or Territory or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its
most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section. 
 Any corporation into which an Authenticating Agent may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of an
Authenticating Agent shall be the successor Authenticating Agent hereunder, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent. 
 An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company.
The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any
time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give notice of such appointment
in the manner provided in Section 1.6 to all Holders of Securities of the series with respect to which such Authenticating Agent will serve. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested
with all the rights, powers and duties of its predecessor hereunder, with 

  

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like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of
this Section. 
 The Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this
Section, and the Trustee shall be entitled to be reimbursed for such payments, subject to the provisions of Section 6.7. 
 If an
appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of authentication
in the following form: 
 This is one of the Securities referred to in the within mentioned Indenture. 
  

							
	Dated:	 		 	THE BANK OF NEW YORK TRUST COMPANY, N.A.,
		 		 	As Trustee
				
		 		 	By:	 	  

		 		 		 	As Authenticating Agent
				
		 		 	By:	 	  

		 		 		 	Authorized Officer

  

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 ARTICLE VII 
 HOLDER’S LISTS AND REPORTS BY TRUSTEE AND COMPANY 
 Section 7.1 Company to Furnish Trustee Names and
Addresses of Holders. 
 The Company will furnish or cause to be furnished to the Trustee: 
 (a) semi-annually, not more than 15 days after February 1 and August 1 in each year, a list, in such form as the Trustee may reasonably require,
of the names and addresses of the Holders as of such dates, and 
 (b) at such other times as the Trustee may request in writing, within 30
days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, 
 excluding from any such list names and addresses received by the Trustee in its capacity as Securities Registrar. 
 Section 7.2 Preservation of Information, Communications to Holders. 
 (a) The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity as
Securities Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.1 upon receipt of a new list so furnished. 
 (b) The rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee, shall be as provided in the Trust Indenture
Act. 
 (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company
nor the Trustee nor any agent of either of them shall be held accountable by reason of the disclosure of information as to the names and addresses of the Holders made pursuant to the Trust Indenture Act. 
 Section 7.3 Reports by Trustee. 
 (a) The Trustee
shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act, at the times and in the manner provided pursuant thereto. 
  

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 (b) Reports so required to be transmitted at stated intervals of not more than 12 months shall be
transmitted no later than May 15 in each calendar year, commencing with the first May 15 after the first issuance of Securities under this Indenture. 
 (c) A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities are listed and also with the Commission. The Company will
notify the Trustee when any Securities are listed on any stock exchange. 
 Section 7.4 Reports by Company. 
 The Company shall file with the Trustee and with the Commission, and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided in the Trust Indenture Act; provided that any such information, documents or reports required to be filed with the Commission pursuant
to Section 13 or Section 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the same is required to be filed with the Commission. Notwithstanding that the Company may not be required to remain subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall continue to file with the Commission and provide the Trustee with the annual reports and the information, documents and other reports which are specified in
Sections 13 and 15(d) of the Exchange Act. The Company also shall comply with the other provisions of Trust Indenture Act Section 314(a). Delivery of such reports, information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of same shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to
which the Trustee is entitled to rely exclusively on Officers’ Certificate). 
 ARTICLE VIII 
 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 
 Section 8.1 Company May Consolidate, Etc., Only on Certain Terms. 
 Subject to Section 3.1, the Company shall not
consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, and no Person shall consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless: 
 (1) in case the Company shall consolidate with or merge into
another Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, the Person formed by such consolidation or into which the Company is merged or 

  

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the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall be a
corporation, partnership or trust organized and existing under the laws of the United States of America or any State or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered by the successor
Person to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal of (and premium, if any) and interest (including any Additional Interest) on all the Securities and the performance of every covenant of this
Indenture on the part of the Company to be performed or observed; 
 (2) immediately after giving effect to such transaction, no Event of
Default, and no event which, after notice or lapse of time, or both, would become an Event of Default, shall have happened and be continuing; 
 (3) in the case of the Securities of a series issued to a Schwab Capital Trust, such consolidation, merger, conveyance, transfer or lease is permitted under the related Schwab Capital Trust Agreement and Schwab Guarantee and does not give
rise to any breach or violation of the related Schwab Capital Trust Agreement or Schwab Guarantee; and 
 (4) the Company has delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and any such supplemental indenture complies with this Article and that all conditions precedent herein
provided for relating to such transaction have been complied with; and the Trustee, subject to Section 6.1, may rely upon such Officers’ Certificate and Opinion of Counsel as conclusive evidence that such transaction complies with this
Section 8.1. 
 Section 8.2 Successor Corporation Substituted. 
 Upon any consolidation or merger by the Company with or into any other Person, or any conveyance, transfer or lease by the Company of its properties and assets substantially as an entirety to any Person in accordance
with Section 8.1, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein; and in the event of any such conveyance, transfer or lease the Company shall be discharged from all obligations and covenants
under the Indenture and the Securities and may be dissolved and liquidated. 
 Such successor Person may cause to be signed, and may issue
either in its own name or in the name of the Company prior to such succession, any or all of the Securities issuable hereunder which theretofore shall not have been signed by the Company and 

  

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delivered to the Trustee; and, upon the order of such successor Person instead of the Company and subject to all the terms, conditions and limitations in
this Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities which previously shall have been signed and delivered by the officers of the Company to the Trustee for authentication pursuant to such provisions and any
Securities which such successor Person thereafter shall cause to be signed and delivered to the Trustee on its behalf for the purpose pursuant to such provisions. All the Securities so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Securities had been issued at the date of the execution hereof. 
 In case of any such consolidation, merger, sale, conveyance or lease, such changes in phraseology and form may be made in the Securities thereafter to be
issued as may be appropriate. 
 ARTICLE IX 
 SUPPLEMENTAL INDENTURES 
 Section 9.1 Supplemental Indentures without Consent of Holders. 
 Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
 (1) to evidence the
succession of another Person to the Company, and the assumption by any such successor of the covenants of the Company herein and in the Securities in compliance with Article VIII; or 
 (2) to convey, transfer, assign, mortgage or pledge any property to or with the Trustee or to surrender any right or power herein conferred upon the
Company; or 
 (3) to establish the form or terms of Securities of any series as permitted by Sections 2.1 or 3.1; or 
 (4) to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the
benefit of less than all series of Securities, stating that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; or 
 (5) to add any additional Events of Default for the benefit of the Holders of all or any series of Securities (and if such additional Events of Default
are to be for the 

  

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benefit of less than all series of Securities, stating that such additional Events of Default are expressly being included solely for the benefit of such
series); or 
 (6) to change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall become
effective only when there is no Security Outstanding of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision; or 
 (7) to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising under this Indenture, provided that such action pursuant to this clause (7) shall not adversely affect the interest of the Holders of Securities of any series in any
material respect or, in the case of Securities of a series issued to a Schwab Capital Trust and for so long as any of the corresponding series of Preferred Securities issued by such Schwab Capital Trust shall remain outstanding, the holders of such
Preferred Securities; or 
 (8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to
the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 6.11(b); or 
 (9) to comply with the requirements of the Commission in order to effect or maintain the qualification of this
Indenture under the Trust Indenture Act. 
 Section 9.2 Supplemental Indentures with Consent of Holders. 
 With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security affected thereby, 
 (1) except to the extent permitted by Section 3.11
or as otherwise specified as contemplated by Section 2.1 or Section 3.1 with respect to the deferral of the payment of interest on the Securities of any series, change the Stated Maturity of the principal of, or any installment of interest
(including any Additional Interest) on, any Security, or reduce the principal amount thereof or the rate of interest thereon or reduce any premium payable upon the redemption thereof, or reduce the amount of principal of a Discount 

  

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Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2, or change the place of
payment where, or the coin or currency in which, any Security or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or
after the Redemption Date), or 
 (2) reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of
whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in
this Indenture, or 
 (3) modify any of the provisions of this Section, Section 5.13 or Section 10.5, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Security affected thereby; or 
 (4) modify the provisions in Article XIII of this Indenture with respect to the subordination of Outstanding Securities of any series in a manner adverse
to the Holders thereof; 
 provided, further, that, in the case of the Securities of a series issued to a Schwab Capital Trust, so long as any of the
corresponding series of Preferred Securities issued by such Schwab Capital Trust remains outstanding, (i) no such amendment shall be made that adversely affects the holders of such Preferred Securities in any material respect, and no
termination of this Indenture shall occur, and no waiver of any Event of Default or compliance with any covenant under this Indenture shall be effective, without the prior consent of the holders of at least a majority of the aggregate Liquidation
Amount of such Preferred Securities then outstanding unless and until the principal (and premium, if any) of the Securities of such series and all accrued and, subject to Section 3.7, unpaid interest (including any Additional Interest) thereon
have been paid in full and (ii) no amendment shall be made to Section 5.8 of this Indenture that would impair the rights of the holders of Preferred Securities provided therein without the prior consent of the holders of each Preferred
Security then outstanding unless and until the principal (and premium, if any) of the Securities of such series and all accrued and (subject to Section 3.7) unpaid interest (including any Additional Interest) thereon have been paid in full.

 A supplemental indenture that changes or eliminates any covenant or other provision of this Indenture that has expressly been included
solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series. 
  

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 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 9.3 Execution of Supplemental
Indentures. 
 In executing or accepting the additional trusts created by any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee shall be provided with, and (subject to Section 6.1) shall be fully protected in conclusively relying upon, an Officers’ Certificate and an Opinion of Counsel each
stating that the execution of such supplemental indenture is authorized or permitted by this Indenture, and that all conditions precedent have been complied with. The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
 Section 9.4 Effect of Supplemental
Indentures. 
 Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance
therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 
 Section 9.5 Conformity with Trust Indenture Act. 
 Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect. 
 Section 9.6 Reference in Securities to Supplemental Indentures. 
 Securities authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall if required by the Company, bear a notation in form approved by the Company as to any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to conform, in the opinion of the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series. 
  

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 ARTICLE X 
 COVENANTS 
 Section 10.1 Payment of Principal, Premium and Interest. 
 The Company covenants and agrees for the benefit of each series of securities that it will duly and punctually pay the principal of (and premium, if any)
and interest (including Additional Interest) on the Securities of that series in accordance with the terms of such Securities and this Indenture. 
 Section 10.2 Maintenance of Office or Agency. 
 The Company will maintain in each Place of Payment for any series of
Securities, an office or agency where Securities of that series may be presented or surrendered for payment and an office or agency where Securities of that series may be surrendered for transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may be served. The Company initially appoints the Trustee, acting through its Corporate Trust Office, as its agent for said purposes. The Company will give prompt written
notice to the Trustee of any change in the location of any such office or agency. If at any time the Company shall fail to maintain such office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands. 
 The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered for any or
all of such purposes, and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in each Place of Payment
for Securities of any series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and any change in the location of any such office or agency. 
 Section 10.3 Money for Security Payments to be Held in Trust. 
 If the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of the principal of (and premium, if any) or interest on any of the Securities
of such series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and will promptly notify the Trustee of its failure so to act. 
  

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 Whenever the Company shall have one or more Paying Agents, it will, prior to 11:00 a.m. New York City
time on each due date of the principal of or interest on any Securities, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons
entitled to such principal and premium (if any) or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its failure so to act. 
 The Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall
agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will: 
 (1) hold all sums held by it for the
payment of the principal of (and premium, if any) or interest (including Additional Interest) on Securities in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein
provided; 
 (2) give the Trustee notice of any default by the Company (or any other obligor upon the Securities) in the making of any
payment of principal (and premium, if any) or interest (including Additional Interest); 
 (3) at any time during the continuance of any such
default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent; and 
 (4)
comply with the provisions of the Trust Indenture Act applicable to it as a Paying Agent. 
 The Company may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such
money. 
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of
(and premium, if any) or interest (including Additional Interest) on any Security and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall (unless otherwise required by mandatory
provision of applicable escheat or abandoned or unclaimed property law) be paid on Company Request to the Company, or (if then held by the Company) shall (unless otherwise required by mandatory provision of applicable escheat or abandoned or
unclaimed property law) be discharged from such trust; and the 

  

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Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee,
its officers, directors, shareholders, employees and agents or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company. In the absence of a written request from the Company to return unclaimed funds to the Company, the Trustee shall from time to time deliver all unclaimed funds to or as directed by applicable escheat authorities, as determined
by the Trustee in its sole discretion, in accordance with the customary practices and procedures of the Trustee. Any unclaimed funds held by the Trustee pursuant to this Section shall be held uninvested and without any liability for interest.

 Section 10.4 Statement as to Compliance. 
 The Company shall deliver to the Trustee, within 120 days after the end of each calendar year of the Company ending after the date hereof, an Officers’ Certificate covering the preceding calendar year, stating whether or not to the
best knowledge of the signers thereof the Company is in default in the performance, observance or fulfillment of or compliance with any of the terms, provisions, covenants and conditions of this Indenture, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may have knowledge. For the purpose of this Section 10.4, compliance shall be determined without regard to any grace period or requirement of notice provided pursuant
to the terms of this Indenture. 
 The Company shall, so long as any of the Securities are Outstanding, deliver to the Trustee, forthwith
upon becoming aware of any default or Event of Default in respect of the performance or observance of any covenant, agreement or condition contained in this Indenture or the Securities, but in any event not later than five Business Days after the
occurrence thereof, an Officers’ Certificate specifying such default or Event of Default and what action the Company is taking or proposes to take with respect thereto. For the purpose of this Section 10.4, the term “default”
means any event which is, or after notice or lapse of time or both would become, an Event of Default. 
 Section 10.5 Waiver of Certain Covenants.

 The Company may omit in any particular instance to comply with any covenant or condition provided pursuant to Section 3.1, 9.1(3)
or 9.1(4) with respect to the Securities of any series, if before or after the time for such compliance the Holders of 

  

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at least a majority in principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect. 
 Section 10.6
Corporate Existence. 
 Subject to Article VIII, the Company will do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and its rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve any such right or franchise if the Company shall determine that the preservation
thereof is no longer desirable in the conduct of its business and that the loss thereof is not disadvantageous in any material respect to the Holders. 
 Section 10.7 Additional Sums. 
 In the case of Securities of a series issued to a Schwab Capital Trust, so long as no
Event of Default has occurred and is continuing and except as otherwise specified as contemplated by Section 2.1 or Section 3.1, if (i) a Schwab Capital Trust is the Holder of all of the Outstanding Securities of a series, (ii) a
Tax Event in respect of such Schwab Capital Trust shall have occurred and be continuing and (iii) the Company shall not have (A) redeemed the Securities of such series pursuant to the terms of this Indenture or (B) terminated such
Schwab Capital Trust pursuant to Section 9.2(b) of the applicable Schwab Capital Trust Agreement, the Company shall pay to such Schwab Capital Trust (and its permitted successors and assigns under the related Trust Agreement) for so long as
such Schwab Capital Trust (or its permitted successors or assignees) is the registered holder of any Securities of such series, such additional amounts as may be necessary in order that the amount of Distributions (including any Additional Amounts
(as defined in such Schwab Capital Trust Agreement)) then due and payable by such Schwab Capital Trust on the related Preferred Securities and Common Securities that at any time remain outstanding in accordance with the terms thereof shall not be
reduced as a result of any Additional Taxes (the “Additional Sums”). Whenever in this Indenture or the Securities there is a reference in any context to the payment of principal of or interest on the Securities, such mention shall be
deemed to include mention of the payments of the Additional Sums provided for in this paragraph to the extent that, in such context, Additional Sums are, were or would be payable in respect thereof pursuant to the provisions of this paragraph and
express mention of the payment of Additional Sums (if applicable) in any provisions hereof shall not be construed as excluding Additional Sums in those provisions hereof where such express mention is not made; provided, however, that the deferral of
the payment of interest pursuant to Section 3.11 or the Securities shall not defer the payment of any Additional Sums that may be due and payable. 
  

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 Section 10.8 Additional Covenants. 
 The Company covenants and agrees with each Holder of Securities of each series that it shall not, and it shall not permit any Subsidiary of the Company
to, (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any shares of the Company’s capital stock, or (b) make any payment of principal of or interest or
premium, if any, on or repay, repurchase or redeem any debt security of the Company that rank pari passu with or junior in interest to the Securities of such series or make any guarantee payments with respect to any guarantee by the Company
of debt securities of any Subsidiary of the Company if such guarantee ranks pari passu with or junior in interest to the Securities (other than (a) dividends or distributions in capital stock of the Company, (b) any declaration of a
dividend in connection with the implementation of a Rights Plan, the issuance of any rights, or the redemption or repurchase of any rights distributed pursuant to a Rights Plan, (c) payments under any Schwab Guarantee, and (d) purchases of
Common Stock related to the issuance of Common Stock or rights under any of the Company’s benefit plans for its directors, officers or employees, related to the issuance of Common Stock or rights under a dividend reinvestment and stock purchase
plan, or related to the issuance of Common Stock (or securities convertible into or exchangeable for Common Stock) as consideration in an acquisition transaction that was entered into prior to the commencement of the event referred to below) if at
such time (i) there shall have occurred any event of which the Company has actual knowledge that (A) with the giving of notice or the lapse of time or both, would constitute an Event of Default with respect to the Securities of such series
and (B) in respect of which the Company shall not have taken reasonable steps to cure, (ii) if the Securities of such series are held by a Schwab Capital Trust, the Company shall be in default with respect to its payment of any obligations
under the Schwab Guarantee relating to the Preferred Securities issued by such Schwab Capital Trust or (iii) the Company shall have given notice of its election to begin an Extension Period with respect to the Securities of such series as
provided herein and shall not have rescinded such notice, or such Extension Period, or any extension thereof, shall be continuing. 
 The
Company also covenants with each Holder of a series issued to a Schwab Capital Trust (i) to maintain directly or indirectly 100% ownership of the Common Securities of such Schwab Capital Trust; provided, however, that any permitted successor of
the Company hereunder may succeed to the Company’s ownership of such Common Securities, (ii) not to voluntarily terminate, wind-up or liquidate such Schwab Capital Trust, except (a) in connection with a distribution of the Securities
of such series to the holders of the Preferred Securities of such Schwab Capital Trust in liquidation of such Schwab Capital Trust or (b) in connection with certain mergers, consolidations or amalgamations permitted by the related Schwab
Capital Trust Agreement and (iii) to use its reasonable efforts, consistent with the terms and provisions of such Schwab Capital Trust Agreement to cause such Schwab Capital Trust to remain classified as a grantor 

  

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trust and not an association taxable as a corporation for United States Federal income tax purposes. 
 ARTICLE XI 
 REDEMPTION OF SECURITIES 
 Section 11.1 Applicability of this Article. 
 Redemption of Securities of any series (whether by operation of a sinking fund or otherwise) as permitted or required by any form of Security issued pursuant to this Indenture shall be made in accordance with such form of Security and this
Article; provided, however, that if any provision of any such form of Security shall conflict with any provision of this Article, the provision of such form of Security shall govern. Except as otherwise set forth in the form of Security for such
series, each Security of such series shall be subject to a partial redemption only in the amount of $25 or, in the case of the Securities of a series issued to a Schwab Capital Trust, $25, or integral multiples thereof. 
 Section 11.2 Election to Redeem; Notice to Trustee. 
 The election of the Company to redeem any Securities shall be evidenced by or pursuant to a Board Resolution. In case of any redemption at the election of the Company of any Securities of a series, the Company shall, not less than 30 nor
more than 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such date and of the principal amount of Securities of that series to be redeemed. In the case
of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’ Certificate and an
Opinion of Counsel evidencing compliance with such restriction. 
 Section 11.3 Selection of Securities to be Redeemed. 
 If less than all the Securities of any series are to be redeemed (unless all the Securities of such series and of a specified tenor are to be redeemed or
unless such redemption affects only a single Security), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously
called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of a portion of the principal amount of any Security of such series, provided that the unredeemed portion of
the principal amount of any Security shall be in an authorized denomination (which shall not be less than the minimum authorized denomination; provided that, Securities in denominations larger than $1,000 may be redeemed in part, but only in
integral multiples of $1,000) for such Security. If less than 

  

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all the Securities of such series and of a specified tenor are to be redeemed (unless such redemption affects only a single Security), the particular
Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series and specified tenor not previously called for redemption in accordance with the preceding
sentence. 
 The Trustee shall promptly notify the Company in writing of the Securities selected for partial redemption and the principal
amount thereof to be redeemed. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to
the portion of the principal amount of such Security which has been or is to be redeemed. If the Company shall so direct, Securities registered in the name of the Company, any Affiliate or any Subsidiary thereof shall not be included in the
Securities selected for redemption. 
 Section 11.4 Notice of Redemption. 
 Notice of redemption shall be given by first-class mail, postage prepaid, mailed not later than the thirtieth day, and not earlier than the sixtieth day,
prior to the Redemption Date, to each Holder of Securities to be redeemed, at the address of such Holder as it appears in the Securities Register. 
 With respect to Securities of each series to be redeemed, each notice of redemption shall state: 
 (a) the Redemption Date;

 (b) the Redemption Price; 
 (c) if less than all Outstanding Securities of such particular series and having the same terms are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the particular Securities
to be redeemed; 
 (d) that on the Redemption Date, the Redemption Price, and accrued interest, if any, will become due and payable upon each
such Security or portion thereof, and that interest thereon, if any, shall cease to accrue on and after said date; 
 (e) the place or places
where such Securities are to be surrendered for payment of the Redemption Price; 
 (f) that the redemption is for a sinking fund, if such is
the case; and 
 (g) the CUSIP and/or other similar number as contemplated by Section 3.15. 
  

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 Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the
Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company and shall not be irrevocable. If the latter, the Company will give the Trustee at least 15 business days’ prior written notice of such
request. The notice if mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives such notice. In any case, a failure to give such notice by mail or any defect in the notice to the
Holder of any Security designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Security. 
 Section 11.5 Deposit of Redemption Price. 
 Prior to 11:00 a.m. New York City time on the Redemption Date specified in
the notice of redemption given as provided in Section 11.4, the Company will deposit with the Trustee or with one or more Paying Agents (or if the Company is acting as its own Paying Agent, the Company will segregate and hold in trust as
provided in Section 10.3) an amount of money sufficient to pay the Redemption Price of, and any accrued interest (including Additional Interest) on, all the Securities which are to be redeemed on that date. 
 Section 11.6 Payment of Securities Called for Redemption. 
 If any notice of redemption has been given as provided in Section 11.4, the Securities or portion of Securities with respect to which such notice has been given shall become due and payable on the date and at the
place or places stated in such notice at the applicable Redemption Price and after such date (unless the Company shall default in the payment of the Redemption Price) such Security shall cease to bear interest. On presentation and surrender of such
Securities at a Place of Payment in said notice specified, the said securities or the specified portions thereof shall be paid and redeemed by the Company at the applicable Redemption Price, together with accrued interest (including any Additional
Interest) to the Redemption Date; provided, however, that, unless otherwise specified as contemplated by Section 3.1, installments of interest whose Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 3.7. 
 Upon presentation of any Security redeemed in part only, the Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof,
at the expense of the Company, a new Security or Securities of the same series, of authorized denominations, in aggregate principal amount equal to the unredeemed portion of the Security so presented and having the same Original Issue Date, Stated
Maturity and terms. If a Global Security is so surrendered, such new Security will also be a new Global Security. 
  

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 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the
principal of and premium, if any, on such Security shall, until paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security. 
 Section 11.7 Right of Redemption of Securities. 
 Subject to obtaining prior approval from the Federal Reserve if then
required under applicable capital adequacy guidelines, regulations or policies of the Federal Reserve: 
 (a) if at any time, a Special Event
in respect of a Schwab Capital Trust, the Company may, at its option upon not less than 30 nor more than 60 days’ notice, at any time within 90 days of the occurrence of such Special Event redeem the applicable Security, in whole but not in
part, subject to the provisions of this Article XI, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, including Additional Interest, if any, to the Redemption Date; provided, however, that if at
the time there is available to the Company or the Schwab Capital Trust the opportunity to eliminate, within such 90-day period, the Special Event by taking some ministerial action, such as filing a form or making an election or pursuing some other
similar reasonable measure that will have no adverse effect on the Schwab Capital Trust, the Company or the Holders, then the Company or the Schwab Capital Trust will pursue such measure in lieu of redemption; and 
 (b) in the case of the Securities of a series initially issued to a Schwab Capital Trust, except as otherwise specified as contemplated by
Section 3.1, the Company, at its option, may at any time, on or after the date that is 10 years after the Original Issue Date and subject to the terms of this Article XI redeem such Securities in whole at any time or in part from time to time.

 ARTICLE XII 
 SINKING
FUNDS 
 Section 12.1 Applicability of Article. 
 The provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of any series except as otherwise specified as contemplated by Section 3.1 for such Securities. 

The minimum amount of any sinking fund payment provided for by the terms of any Securities of any series is herein referred to as a “mandatory
sinking fund payment”, and any sinking fund payment in excess of such minimum amount which is permitted to be made by the terms of such Securities of any series is herein referred to as 

  

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an “optional sinking fund payment.” If provided for by the terms of any Securities of any series, the cash amount of any sinking fund payment may
be subject to reduction as provided in Section 12.2. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of such Securities. 
 Section 12.2 Satisfaction of Sinking Fund Payments with Securities. 
 In lieu of making all or any part of a mandatory sinking fund payment with respect to any Securities of a series in cash, the Company may at its option, at any time no more than 16 months and no less than 30 days
prior to the date on which such sinking fund payment is due, deliver to the Trustee Securities of such series (together with the unmatured coupons, if any, appertaining thereto) theretofore purchased or otherwise acquired by the Company, except
Securities of such series that have been redeemed through the application of mandatory or optional sinking fund payments pursuant to the terms of the Securities of such series, accompanied by a Company Order instructing the Trustee to credit such
obligations and stating that the Securities of such series were originally issued by the Company by way of bona fide sale or other negotiation for value; provided that the Securities to be so credited have not been previously so credited. The
Securities to be so credited shall be received and credited for such purpose by the Trustee at the redemption price for such Securities, as specified in the Securities so to be redeemed, for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly. 
 Section 12.3 Redemption of Securities for Sinking Fund. 
 Not less than 60 days prior to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers’
Certificate specifying the amount of the next ensuing sinking fund payment for such Securities pursuant to the terms of such Securities, the portion thereof, if any, which is to be satisfied by payment of cash in the currency in which the Securities
of such series are payable (except as provided pursuant to Section 3.1) and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities pursuant to Section 12.2 and will also deliver to the Trustee any
Securities to be so delivered. Such Officers’ Certificate shall be irrevocable and upon its delivery the Company shall be obligated to make the cash payment or payments therein referred to, if any, on or before the succeeding sinking fund
payment date. In the case of the failure of the Company to deliver such Officers’ Certificate (or, as required by this Indenture, the Securities and coupons, if any, specified in such Officers’ Certificate), the sinking fund payment due on
the succeeding sinking fund payment date for such series shall be paid entirely in cash and shall be sufficient to redeem the principal amount of the Securities of such series subject to a mandatory sinking fund payment without the right to deliver
or credit securities as provided in Section 12.2 and without the right to make the optional sinking fund payment with respect to such series at such time. 
  

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 Any sinking fund payment or payments (mandatory or optional) made in cash plus any unused balance of any
preceding sinking fund payments made with respect to the Securities of any particular series shall be applied by the Trustee (or by the Company if the Company is acting as its own Paying Agent) on the sinking fund payment date on which such payment
is made (or, if such payment is made before a sinking fund payment date, on the sinking fund payment date immediately following the date of such payment) to the redemption of Securities of such series at the Redemption Price specified in such
Securities with respect to the sinking fund. Any sinking fund moneys not so applied or allocated by the Trustee (or, if the Company is acting as its own Paying Agent, segregated and held in trust by the Company as provided in Section 10.3) for
such series and together with such payment (or such amount so segregated) shall be applied in accordance with the provisions of this Section 12.3. Any and all sinking fund moneys with respect to the Securities of any particular series held by
the Trustee (or if the Company is acting as its own Paying Agent, segregated and held in trust as provided in Section 10.3) on the last sinking fund payment date with respect to Securities of such series and not held for the payment or
redemption of particular Securities of such series shall be applied by the Trustee (or by the Company if the Company is acting as its own Paying Agent), together with other moneys, if necessary, to be deposited (or segregated) sufficient for the
purpose, to the payment of the principal of the Securities of such series at Maturity. The Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 11.3 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.4. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated
in Section 11.6. On or before each sinking fund payment date, the Company shall pay to the Trustee (or, if the Company is acting as its own Paying Agent, the Company shall segregate and hold in trust as provided in Section 10.3) in cash a
sum in the currency in which Securities of such series are payable (except as provided pursuant to Section 3.1) equal to the principal and any interest accrued to the Redemption Date for Securities or portions thereof to be redeemed on such
sinking fund payment date pursuant to this Section 12.3. 
 Neither the Trustee nor the Company shall redeem any Securities of a series
with sinking fund moneys or mail any notice of redemption of Securities of such series by operation of the sinking fund for such series during the continuance of a default in payment of interest, if any, on any Securities of such series or of any
Event of Default (other than an Event of Default occurring as a consequence of this paragraph) with respect to the Securities of such series, except that if the notice of redemption shall have been provided in accordance with the provisions hereof,
the Trustee (or the Company, if the Company is then acting as its own Paying Agent) shall redeem such Securities if cash sufficient for that purpose shall be deposited with the Trustee (or segregated by the Company) for that purpose in accordance
with the terms of this Article XII. Except as aforesaid, any moneys in the sinking fund for such series at the time when any such default or Event of Default shall occur and any moneys thereafter paid into such sinking 

  

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fund shall, during the continuance of such default or Event of Default, be held as security for the payment of the Securities and coupons, if any, of such
series; provided, however, that in case such default or Event of Default shall have been cured or waived herein, such moneys shall thereafter be applied on the next sinking fund payment date for the Securities of such series on which such moneys may
be applied pursuant to the provisions of this Section 12.3. 
 ARTICLE XIII 
 SUBORDINATION OF SECURITIES 
 Section 13.1
Securities Subordinate to Senior Debt. 
 The Company covenants and agrees, and each Holder of a Security, by its acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this Article, the payment of the principal of (and premium, if any) and interest (including any Additional Interest) on each and all of the Securities are
hereby expressly made subordinate and subject in right of payment to the prior payment in full of all Senior Debt. 
 Section 13.2 Payment Over of
Proceeds Upon Dissolution, Etc. 
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to the Company (each such event, if any, herein sometimes referred to as a “Proceeding”), then the holders of Senior Debt shall be entitled to receive payment in
full of all amounts due or to become due on such Senior Debt, or provision shall be made for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, before the Holders of the Securities are
entitled to receive or retain any payment or distribution of any kind or character, whether in cash, property or securities (including any payment or distribution which may be payable or deliverable by reason of the payment of any other Debt of the
Company (including any series of the Securities) subordinated to the payment of the Securities, such payment or distribution being hereinafter referred to as a “Junior Subordinated Payment”), on account of principal of (or premium, if any)
or interest (including any Additional Interest) on the Securities or on account of the purchase or other acquisition of Securities by the Company or any Subsidiary and to that end the holders of Senior Debt shall be entitled to receive, for
application to the payment thereof, any payment or distribution of any kind or character, whether in cash, property or securities, including any Junior Subordinated Payment, which may be payable or deliverable in respect of the Securities in any
such Proceeding; provided, however, that holders of Senior Debt shall not be entitled to receive payment of any such amounts to the extent that such holders would be required by the subordination provisions of such Senior Debt to pay such amounts
over to the 

  

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obligees on trade accounts payable or other liabilities arising in the ordinary course of the Company’s business. 
 In the event that, notwithstanding the foregoing provisions of this Section, the Trustee or the Holder of any Security shall have received any payment or
distribution of assets of the Company of any kind or character, whether in cash, property or securities, including any Junior Subordinated Payment, before all amounts due or to become due on all Senior Debt are paid in full or payment thereof is
provided for in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior Debt, and if such fact shall, at or prior to the time of such payment or distribution, have been made actually known to a Responsible Officer of
the Trustee or, as the case may be, such Holder, then and in such event such payment or distribution shall be paid over or delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or other Person
making payment or distribution of assets of the Company for application to the payment of all amounts due or to become due on all Senior Debt remaining unpaid, to the extent necessary to pay all amounts due or to become due on all Senior Debt in
full, after giving effect to any concurrent payment or distribution to or for the holders of Senior Debt; provided, however, that holders of Senior Debt shall not be entitled to receive payment of any such amounts to the extent that such holders
would be required by the subordination provisions of such Senior Debt to pay such amounts over to the obligees on trade accounts payable or other liabilities arising in the ordinary course of the Company’s business. 
 For purposes of this Article only, the words “any payment or distribution of any kind or character, whether in cash, property or securities”
shall not be deemed to include shares of stock of the Company as reorganized or readjusted, or securities of the Company or any other corporation provided for by a plan of reorganization or readjustment which securities are subordinated in right of
payment to all then outstanding Senior Debt to substantially the same extent as the Securities are so subordinated as provided in this Article. The consolidation of the Company with, or the merger of the Company into, another Person or the
liquidation or dissolution of the Company following the sale of all or substantially all of its properties and assets as an entirety to another Person upon the terms and conditions set forth in Article VIII shall not be deemed a Proceeding for the
purposes of this Section if the Person formed by such consolidation or into which the Company is merged or the Person which acquires by sale such properties and assets as an entirety, as the case may be, shall, as a part of such consolidation,
merger, or sale comply with the conditions set forth in Article VIII. 
 Section 13.3 Prior Payment to Senior Debt Upon Acceleration of Securities.

 In the event that any Securities are declared due and payable before their Stated Maturity, then and in such event the holders of the
Senior Debt outstanding at the time such Securities so become due and payable shall be entitled to receive payment in full of all amounts due on or in respect of such Senior Debt (including any amounts due 

  

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upon acceleration), or provision shall be made for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the holders of Senior
Debt, before the Holders of the Securities are entitled to receive any payment or distribution of any kind or character, whether in cash, properties or securities (including any Junior Subordinated Payment) by the Company on account of the principal
of (or premium, if any) or interest (including any Additional Interest) on the Securities or on account of the purchase or other acquisition of Securities by the Company or any Subsidiary; provided, however, that nothing in this Section shall
prevent the satisfaction of any sinking fund payment in accordance with this Indenture or as otherwise specified as contemplated by Section 3.1 for the Securities of any series by delivering and crediting pursuant to Section 12.2 or as
otherwise specified as contemplated by Section 3.1 for the Securities of any series Securities which have been acquired (upon redemption or otherwise) prior to such declaration of acceleration; provided, further, however, that holders of Senior
Debt shall not be entitled to receive payment of any such amounts to the extent that such holders would be required by the subordination provisions of such Senior Debt to pay such amounts over to the obligees on trade accounts payable or other
liabilities arising in the ordinary course of the Company’s business. 
 In the event that, notwithstanding the foregoing, the Company
shall make any payment to the Trustee or the Holder of any Security prohibited by the foregoing provisions of this Section, and if such fact shall, at or prior to the time of such payment, have been made actually known to a Responsible Officer of
the Trustee or, as the case may be, such Holder, then and in such event such payment shall be paid over and delivered forthwith to the Company. 
 The provisions of this Section shall not apply to any payment with respect to which Section 13.2 would be applicable. 
 Section 13.4
No Payment When Senior Debt in Default. 
 (a) In the event and during the continuation of any default in the payment of principal of (or
premium, if any) or interest on any Senior Debt, or in the event that any event of default with respect to any Senior Debt shall have occurred and be continuing and shall have resulted in such Senior Debt becoming or being declared due and payable
prior to the date on which it would otherwise have become due and payable, unless and until such event of default shall have been cured or waived or shall have ceased to exist and such acceleration shall have been rescinded or annulled; or

 (b) in the event any judicial proceeding shall be pending with respect to any such default in payment or such event or default, then no
payment or distribution of any kind or character, whether in cash, properties or securities (including any Junior Subordinated Payment) shall be made by the Company on account of principal of (or premium, if any) or interest (including any
Additional Interest), if any, on the Securities or on account of the purchase or other acquisition of Securities by the Company or any 

  

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Subsidiary, in each case unless and until all amounts due or to become due on such Senior Debt are paid in full; provided, however, that nothing in this
Section shall prevent the satisfaction of any sinking fund payment in accordance with this Indenture or as otherwise specified as contemplated by Section 3.1 for the Securities of any series by delivering and crediting pursuant to
Section 12.2 or as otherwise specified as contemplated by Section 3.1 for the Securities of any series Securities which have been acquired (upon redemption or otherwise) prior to such default in payment or event of default; and provided
further, however, that holders of Senior Debt shall not be entitled to receive payment of any such amounts to the extent that such holders would be required by the subordination provisions of such Senior Debt to pay such amounts over to the obligees
on trade accounts payable or other liabilities arising in the ordinary course of the Company’s business. 
 In the event that,
notwithstanding the foregoing, the Company shall make any payment to the Trustee or the Holder of any Security prohibited by the foregoing provisions of this Section, and if such fact shall, at or prior to the time of such payment, have been made
actually known to a Responsible Officer of the Trustee or, as the case may be, such Holder, then and in such event such payment shall be paid over and delivered forthwith to the Company. The provisions of this Section shall not apply to any payment
with respect to which Section 13.2 would be applicable. 
 Section 13.5 Payment Permitted If No Default. 
 Nothing contained in this Article or elsewhere in this Indenture or in any of the Securities shall prevent (a) the Company, at any time except during
the pendency of any Proceeding referred to in Section 13.2 or under the conditions described in Sections 13.3 and 13.4, from making payments at any time of principal of (and premium, if any) or interest (including Additional Interest) on the
Securities, or (b) the application by the Trustee of any money deposited with it hereunder to the payment of or on account of the principal of (and premium, if any) or interest (including any Additional Interest) on the Securities or the
retention of such payment by the Holders, if, at the time of such application by the Trustee, a Responsible Officer of the Trustee did not have actual knowledge that such payment would have been prohibited by the provisions of this Article.

 Section 13.6 Subrogation to Rights of Holders of Senior Debt. 
 Subject to the payment in full of all amounts due or to become due on all Senior Debt to the extent provided herein, or the provision for such payment in cash or cash equivalents or otherwise in a manner satisfactory
to the holders of Senior Debt, the Holders of the Securities shall be subrogated to the extent of the payments or distributions made to the holders of such Senior Debt pursuant to the provisions of this Article (equally and ratably with the holders
of all indebtedness of the Company which by its express terms is subordinated to Senior Debt of the Company to substantially the 

  

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same extent as the Securities are subordinated to the Senior Debt and is entitled to like rights of subrogation by reason of any payments or distributions
made to holders of such Senior Debt) to the rights of the holders of such Senior Debt to receive payments and distributions of cash, property and securities applicable to the Senior Debt until the principal of (and premium, if any) and interest
(including Additional Interest) on the Securities shall be paid in full. For purposes of such subrogation, no payments or distributions to the holders of the Senior Debt of any cash, property or securities to which the Holders of the Securities or
the Trustee would be entitled except for the provisions of this Article, and no payments over pursuant to the provisions of this Article to the holders of Senior Debt by Holders of the Securities or the Trustee, shall, as among the Company, its
creditors other than holders of Senior Debt, and the Holders of the Securities, be deemed to be a payment or distribution by the Company to or on account of the Senior Debt. 
 Section 13.7 Provisions Solely to Define Relative Rights. 
 The provisions of this Article are
and are intended solely for the purpose of defining the relative rights of the Holders of the Securities on the one hand and the holders of Senior Debt on the other hand. Nothing contained in this Article or elsewhere in this Indenture or in the
Securities is intended to or shall (a) impair, as between the Company and the Holders of the Securities, the obligations of the Company, which are absolute and unconditional, to pay to the Holders of the Securities the principal of (and
premium, if any) and interest (including any Additional Interest) on the Securities as and when the same shall become due and payable in accordance with their terms; or (b) affect the relative rights against the Company of the Holders of the
Securities and creditors of the Company other than their rights in relation to the holders of Senior Debt; or (c) prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture including, without limitation, filing and voting claims in any Proceeding, subject to the rights, if any, under this Article of the holders of Senior Debt to receive cash, property and securities otherwise payable or deliverable
to the Trustee or such Holder. 
 Section 13.8 Trustee to Effectuate Subordination. 
 Each Holder of a Security by his or her acceptance thereof authorizes and directs the Trustee on his or her behalf to take such action as may be necessary
or appropriate to acknowledge or effectuate the subordination provided in this Article and appoints the Trustee his or her attorney-in-fact for any and all such purposes. 
 Section 13.9 No Waiver of Subordination Provisions. 
 No right of any present or future holder of
any Senior Debt to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in 

  

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good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof that any such holder may have or be otherwise charged with. 
 Without in any way limiting the generality of the
immediately preceding paragraph, the holders of Senior Debt may, at any time and from to time, without the consent of or notice to the Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the Securities and
without impairing or releasing the subordination provided in this Article or the obligations hereunder of the Holders of the Securities to the holders of Senior Debt, do any one or more of the following: (i) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement in any manner Senior Debt or any instrument evidencing the same or any agreement under which Senior Debt is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt; (iii) release any Person liable in any manner for the collection of Senior Debt; and (iv) exercise or refrain from exercising any
rights against the Company and any other Person. 
 Section 13.10 Notice to Trustee. 
 The Company shall give prompt written notice to the Trustee of any fact known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this Article or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any
payment to or by the Trustee in respect of the Securities, unless and until the Trustee shall have received written notice thereof from the Company or a holder of Senior Debt or from any trustee, agent or representative therefor; provided, however,
that if the Trustee shall not have received the notice provided for in this Section at least two Business Days prior to the date upon which by the terms hereof any monies may become payable for any purpose (including, without limitation, the payment
of the principal of (and premium, if any) or interest (including any Additional Interest) on any Security), then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such monies and
to apply the same to the purpose for which they were received and shall not be affected by any notice to the contrary which may be received by it within two Business Days prior to such date. 
 Subject to the provisions of Section 6.1, the Trustee shall be entitled to conclusively rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Debt (or a trustee therefor) to establish that such notice has been given by a holder of Senior Debt (or a trustee therefor). In the event that the Trustee determines in good faith that further evidence
is required with respect to the right of any Person as a holder of Senior Debt to participate in any payment or distribution pursuant to this Article, the Trustee may request such Person to furnish evidence to the reasonable 

  

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satisfaction of the Trustee as to the amount of Senior Debt held by such Person, the extent to which such Person is entitled to participate in such payment
or distribution and any other facts pertinent to the rights of such Person under this Article, and if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to
receive such payment. 
 Section 13.11 Reliance on Judicial Order or Certificate of Liquidating Agent. 
 Upon any payment or distribution of assets of the Company referred to in this Article, the Trustee, subject to the provisions of Section 6.1, and the
Holders of the Securities shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction in which such Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person making such payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of the Senior Debt and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article.

 Section 13.12 Trustee Not Fiduciary for Holders of Senior Debt. 
 The Trustee, in its capacity as trustee under this Indenture, shall not be deemed to owe any fiduciary duty to the holders of Senior Debt and shall not be liable to any such holders if it shall in good faith
mistakenly pay over or distribute to Holders of Securities or to the Company or to any other Person cash, property or securities to which any holders of Senior Debt shall be entitled by virtue of this Article or otherwise. With respect to the
holders of the Senior Debt, the Trustee undertakes to perform or to observe only such of its covenants or obligations as are specifically set forth in this Article and no implied covenants or obligations with respect to the holders of Senior Debt
shall be read into this Indenture against the Trustee. 
 Section 13.13 Rights of Trustee as Holder of Senior Debt; Preservation of Trustee’s
Rights. 
 The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article with respect to any Senior
Debt which may at any time be held by it, to the same extent as any other holder of Senior Debt, and nothing in this Indenture shall deprive the Trustee of any of its rights as such holder. Nothing in this Article shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 6.7. 
 Section 13.14 Article Applicable to Paying Agents. 
 In case at any time any Paying Agent other than the Trustee shall have been appointed by the Company and be then acting hereunder, the term
“Trustee” as used in 

  

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this Article shall in such case (unless the context otherwise requires) be construed as extending to and including such Paying Agent within its meaning as
fully for all intents and purposes as if such Paying Agent were named in this Article in addition to or in place of the Trustee. 
  

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 Section 13.15 Certain Conversions or Exchanges Deemed Payment. 
 For the purposes of this Article only, (a) the issuance and delivery of junior securities upon conversion or exchange of Securities shall not be
deemed to constitute a payment or distribution on account of the principal of (or premium, if any) or interest (including any Additional Interest) on Securities or on account of the purchase or other acquisition of Securities, and (b) the
payment, issuance or delivery of cash, property or securities (other than junior securities) upon conversion or exchange of a Security shall be deemed to constitute payment on account of the principal of such security. For the purposes of this
Section, the term “junior securities” means (i) shares of any stock of any class of the Company and (ii) securities of the Company which are subordinated in right of payment to all Senior Debt which may be outstanding at the time
of issuance or delivery of such securities to substantially the same extent as, or to a greater extent than, the Securities are so subordinated as provided in this Article. 
 Section 13.16 Trustee’s Rights to Compensation, Reimbursement of Expenses and Indemnification. 
 The Trustee’s rights to compensation, reimbursement of expenses and indemnification under Sections 5.6 and 6.7 are not subordinated. 
 * * * * 
  

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 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 IN WITNESS WHEREOF, the parties
hereto have caused this Indenture to be duly executed all as of the day and year first above written. 
  

			
	THE CHARLES SCHWAB CORPORATION
		
	By	 	 /s/ Carrie Dolan

	Name:	 	Carrie L. Dolan
	Title:	 	Senior Vice President and Treasurer
	
	THE BANK OF NEW YORK TRUST COMPANY, N.A., As Trustee
		
	By	 	 /s/ Melonee Young

	Name:	 	Melonee Young
	Title:	 	Vice President

  

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 ANNEX A 
 FORM OF GUARANTEE AGREEMENT 
 (See Exhibit 4.16 attached to the Current Report on Form 8-K filed by
The Charles Schwab Corporation on October 5, 2007) 
  

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 ANNEX B 
 FORM OF TRUST AGREEMENT 
 (See Exhibit 4.17 attached to the Current Report on Form 8-K filed by The
Charles Schwab Corporation on October 5, 2007)First Supplemental Indenture

 Exhibit 4.19 
  

 FIRST SUPPLEMENTAL INDENTURE 
 between 
 THE CHARLES SCHWAB CORPORATION 
 and 
 THE BANK OF NEW YORK TRUST
COMPANY, N.A. 
 Dated as of October 5, 2007 
 Supplement to Junior Subordinated Indenture, 
 dated as of October 5, 2007 

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	 Page

	ARTICLE I DEFINITIONS	  	2
				
		 	Section 1.1	 	Definitions	  	2
		
	ARTICLE II GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED NOTES	  	12
				
		 	Section 2.1	 	Designation, Principal Amount and Authorized Denomination	  	12
		 	Section 2.2	 	Repayment	  	12
		 	Section 2.3	 	Form	  	15
		 	Section 2.4	 	Rate of Interest; Interest Payment Dates	  	15
		 	Section 2.5	 	Interest Deferral	  	16
		 	Section 2.6	 	Dividend and Other Payment Stoppages	  	17
		 	Section 2.7	 	Alternative Payment Mechanism	  	19
		 	Section 2.8	 	Redemption of the Junior Subordinated Notes	  	22
		 	Section 2.9	 	Events of Default	  	23
		 	Section 2.10	 	Securities Registrar; Paying Agent	  	25
		 	Section 2.11	 	Limitation on Claims in the Event of Bankruptcy, Insolvency or Receivership	  	25
		 	Section 2.12	 	Unconditional Right of Holders to Receive Principal, Premium and Interest; Direct Action by Holders of Trust Preferred Securities	  	25
		 	Section 2.13	 	Covenants	  	26
		
	ARTICLE III REPAYMENT OF JUNIOR SUBORDINATED NOTES	  	26
				
		 	Section 3.1	 	Repayments	  	26
		 	Section 3.2	 	Selection of the Junior Subordinated Notes to be Repaid	  	26
		 	Section 3.3	 	Notice of Repayment	  	27
		 	Section 3.4	 	Deposit of Repayment Amount	  	27
		 	Section 3.5	 	Repayment of Junior Subordinated Notes	  	28
		
	ARTICLE IV CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	  	28
				
		 	Section 4.1	 	Successor Corporation Substituted.	  	28
		
	ARTICLE V FORM OF JUNIOR SUBORDINATED NOTES	  	29
				
		 	Section 5.1	 	Form of Junior Subordinated Notes	  	29
		
	ARTICLE VI ORIGINAL ISSUE OF JUNIOR SUBORDINATED NOTES	  	35
				
		 	Section 6.1	 	Original Issue of Junior Subordinated Notes	  	35
		 	Section 6.2	 	Calculation of Original Issue Discount	  	36
		
	ARTICLE VII SUBORDINATION	  	36
				
		 	Section 7.1	 	Senior Debt	  	36
		 	Section 7.2	 	Compliance with Federal Reserve Rules	  	38

  

 i 

							
	ARTICLE VIII SUPPLEMENTAL INDENTURES	  	38
				
		 	Section 8.1	 	Supplemental Indentures Without Consent of Holders	  	38
		 	Section 8.2	 	Supplemental Indentures With Consent of Holders	  	39
		 	Section 8.3	 	Modifications	  	40
		
	ARTICLE IX MISCELLANEOUS	  	41
				
		 	Section 9.1	 	Effectiveness	  	41
		 	Section 9.2	 	Successors and Assigns	  	41
		 	Section 9.3	 	Further Assurances	  	41
		 	Section 9.4	 	Effect of Recitals	  	41
		 	Section 9.5	 	Ratification of Indenture	  	41
		 	Section 9.6	 	Governing Law	  	41
		 	Section 9.7	 	Force Majeure	  	41

  

 ii 

 FIRST SUPPLEMENTAL INDENTURE, dated as of October 5, 2007, between THE CHARLES SCHWAB CORPORATION, a
Delaware corporation (the “Company”), having its principal office at 120 Kearny Street, San Francisco, California 94108, and THE BANK OF NEW YORK TRUST COMPANY, N.A., a national banking association, as trustee (hereinafter called
the “Trustee”). 
 RECITALS OF THE COMPANY 
 The Company and the Trustee entered into the Junior Subordinated Indenture, dated as of October 5, 2007 (the “Indenture”). 
 Schwab Capital Trust I, a Delaware statutory trust (the “Trust”), has offered to the public its trust preferred securities known as
Fixed to Floating Rate Trust Preferred Securities (the “Trust Preferred Securities”), which are beneficial interests in the Trust, and proposes to invest the proceeds from such offering, together with the proceeds of the issuance
and sale by the Trust to the Company of its Fixed to Floating Rate Trust Common Securities (the “Trust Common Securities” and, together with the Trust Preferred Securities, the “Trust Securities”), in the Junior
Subordinated Notes (as defined herein). 
 Section 9.1 of the Indenture provides that the Company and the Trustee may, without the
consent of any Holder, enter into a supplemental indenture to establish the form or terms of securities of any series as permitted by Section 2.1 or 3.1 thereof. 
 Pursuant to Sections 2.1 and 3.1 of the Indenture, the Company desires to provide for the establishment of a new series of Securities under the Indenture, the form and substance of such Securities and the terms,
provisions and conditions thereof to be set forth as provided in the Indenture and this Supplemental Indenture. 
 The Company has delivered
to the Trustee an Opinion of Counsel and an Officers’ Certificate pursuant to Section 9.3 of the Indenture to effect the execution of this Supplemental Indenture is authorized or permitted by the Indenture. 
 The Company has requested that the Trustee execute and deliver this Supplemental Indenture and satisfy all requirements necessary to make this
Supplemental Indenture a valid and legally binding instrument in accordance with its terms, and to make the Junior Subordinated Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid and legally binding
obligations of the Company and all acts and things necessary have been done and performed to make this Supplemental Indenture enforceable in accordance with its terms, and the execution and delivery of this Supplemental Indenture has been duly
authorized in all respects. 
 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH: For and in consideration of the premises and the
purchase of the Junior Subordinated Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Junior Subordinated Notes, as follows: 

 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Definitions. For all purposes of this Supplemental Indenture, except
as otherwise expressly provided or unless the context otherwise requires: 
 (a) Terms defined in the Indenture or the Trust
Agreement (as defined herein) have the same meaning when used in this Supplemental Indenture unless otherwise specified herein. 
 (b) The terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular. 
 (c) The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other
subdivision, and any reference to an Article, Section or other subdivision refers to an Article, Section or other subdivision of this Supplemental Indenture. 
 (d) Any reference herein to “interest” includes any Additional Interest. 
 “Applicable Spread” means (i) 0.50% in the case of a redemption of all Outstanding Junior Subordinated Notes prior to
November 15, 2017 within 90 days after the occurrence of a Tax Event or Rating Agency Event; (ii) 0.50% in the case of any other redemption prior to November 15, 2017; and (iii) 0.15% in the case of a redemption after
November 15, 2017 and prior to November 15, 2037. 
 “Business Combination” means a merger, consolidation,
amalgamation or conveyance, transfer or lease of assets substantially as an entirety by one Person to any other Person. 
 “Business
Day” means a day other than a Saturday, Sunday, or any other day on which banking institutions and trust companies in New York, New York are permitted or required by any applicable law to close, or on or after November 15, 2017, a day
that is not a London Banking Day. 
 “Capital Treatment Event” means the Company’s reasonable determination that, as a
result of the occurrence of any amendment to, or change (including any announced prospective change) in, the laws (or any rules or regulations thereunder) of the United States or any political subdivision thereof or therein, or as a result of any
official or administrative pronouncement or action or judicial decision interpreting or applying such laws, rules or regulations, which amendment or change is effective or which pronouncement, action or decision is announced on or after the date of
issuance of the Trust Preferred Securities, there is more than an insubstantial risk that the Company will not be entitled to treat an amount equal to the aggregate liquidation amount of the Trust Preferred Securities as “Tier 1
Capital” (or the then equivalent thereof) for purposes of the capital adequacy guidelines of the Federal Reserve, as then in effect and applicable to the Company. A Capital Treatment Event can only occur so long as the Company is subject to
the supervision and regulation of the Federal Reserve. 
  

 2 

 “Calculation Agent” means The Bank of New York Trust Company, N.A., or any other firm
appointed by the Company, acting as calculation agent. 
 “Commercially Reasonable Efforts” means (i) with respect to
Section 2.2(a), commercially reasonable efforts to complete the offer and sale of Qualifying Capital Securities in public offerings or private placements to Persons other than Subsidiaries. The Company will not be considered to have made
Commercially Reasonable Efforts to effect a sale of Qualifying Capital Securities if it determines not to pursue or complete such sale due solely to pricing, coupon, dividend rate or dilution considerations and (ii) with respect to
Section 2.7, commercially reasonable efforts to complete the offer and sale of Qualifying APM Securities in public offerings or private placements to Persons other than Subsidiaries. The Company will not be considered to have used Commercially
Reasonable Efforts to effect a sale of Qualifying APM Securities if it determines not to pursue or complete such sale due solely to pricing, coupon, dividend rate or dilution considerations. 
 “Common Stock” means the common stock of the Company. 
 “Common Equity Issuance Cap” has the meaning specified in Section 2.7(a)(i). 
 “Company” has the meaning specified in the first paragraph of this Supplemental Indenture. 
 “Current
Stock Market Price” means, with respect to Common Stock on any date, (i) the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average
of the average bid and the average ask prices) on that date as reported in composite transactions by the Nasdaq Global Select Market or if Common Stock is not then listed on the Nasdaq Global Select Market, as reported by the principal U.S.
securities exchange on which Common Stock is traded or quoted on the relevant date, (ii) if Common Stock is not listed on any U.S. securities exchange on the relevant date, the last quoted bid price for Common Stock in the over-the-counter
market on the relevant date as reported by Pink Sheets LLC or similar organization, or (iii) if Common Stock is not so quoted, the average of the mid-point of the last bid and ask prices for Common Stock on the relevant date from each of at
least three nationally recognized independent investment banking firms selected by the Company for this purpose. 
 “Deferral
Period” means the period commencing on an Interest Payment Date with respect to which the Company elects to defer interest pursuant to Section 2.5 and ending on the earlier of (i) the tenth anniversary of such Interest Payment
Date and (ii) the next Interest Payment Date on which the Company has paid the deferred amount, all deferred amounts with respect to any subsequent period and all other accrued and unpaid interest on the Junior Subordinated Notes. 

“Eligible Proceeds” means, for each relevant Interest Payment Date, the net proceeds (after deducting underwriters’ or placement
agents’ fees, commissions or discounts and other expenses relating to the issuance or sale) the Company has received during the 180-day period prior to such Interest Payment Date from the issuance or sale of Qualifying APM Securities (excluding
sales of Common Stock in excess of the Common Equity Issuance Cap and sales of 

  

 3 

 
Qualifying Preferred Stock in excess of the Preferred Stock Issuance Cap) to Persons other than Subsidiaries. 
 “Federal Reserve” means the Board of Governors of the Federal Reserve System, together with any other federal regulatory agency having
primary jurisdiction over the Company other than the Office of Thrift Supervision. 
 “Final Repayment Date” has the meaning
specified in Section 2.2(b). 
 “Guarantee Agreement” means the Guarantee Agreement between the Company, as guarantor,
and The Bank of New York Trust Company, N.A., as guarantee trustee, dated as of October 5, 2007. 
 “Indenture” has the
meaning specified in the Recitals. 
 “Intent-Based Replacement Disclosure” has the meaning specified in the Replacement
Capital Covenant. 
 “Interest Payment Date” has the meaning specified in Section 2.4(b). 
 “Interest Period” means the period from, and including, any Interest Payment Date (or, in the case of the first Interest Period,
October 5, 2007) to but excluding the next Interest Payment Date. 
 “Investment Company Event” means the receipt by
the Trust of an opinion of counsel experienced in such matters to the effect that, as a result of any amendment to, or change (including any announced prospective change) in, the laws (or any regulations thereunder) of the United States or any
political subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which
pronouncement or decision is announced on or after the date of issuance of the Trust Preferred Securities, there is more than an insubstantial risk that the Trust is or will be considered an “investment company” that is required to be
registered under the Investment Company Act of 1940, as amended. 
 “Junior Subordinated Note” has the meaning specified in
Section 2.1. 
 “LIBOR” means, with respect to any monthly or quarterly Interest Period, the rate (expressed as a
percentage per annum) for deposits in U.S. dollars for a one- or three-month period, as applicable, commencing on the first day of that monthly or quarterly Interest Period that appears on the Reuters Screen LIBOR01 Page as of 11:00 a.m. (London
time) on the LIBOR Determination Date for that monthly or quarterly Interest Period, as the case may be. If such rate does not appear on Reuters Screen LIBOR01 Page, one- or three-month LIBOR will be determined on the basis of the rates at which
deposits in U.S. dollars for a one- or three-month period commencing on the first day of that monthly or quarterly Interest Period, as applicable, and in a principal amount of not less than $1 million are offered to prime banks in the London
interbank market by four major banks in the London interbank market selected by the Calculation Agent (after consultation with the Company), at approximately 11:00 a.m., London time, on the LIBOR Determination Date for that monthly or quarterly
Interest Period. The 

  

 4 

 
Calculation Agent will request the principal London office of each of such banks to provide a quotation of its rate. If at least two such quotations are
provided, one- or three-month LIBOR with respect to that monthly or quarterly Interest Period, as applicable, will be the arithmetic mean (rounded upward if necessary to the nearest whole multiple of 0.00001%) of such quotations. If fewer than two
quotations are provided, one- or three-month LIBOR with respect to that monthly or quarterly Interest Period, as applicable, will be the arithmetic mean (rounded upward if necessary to the nearest whole multiple of 0.00001%) of the rates quoted by
three major banks in New York City selected by the Calculation Agent (after consultation with the Company), at approximately 11:00 a.m., New York City time, on the first day of that monthly or quarterly Interest Period, as applicable, for loans in
U.S. dollars to leading European banks for a one- or three-month period, as applicable, commencing on the first day of that monthly or quarterly Interest Period and in a principal amount of not less than $1 million. However, if fewer than three
banks selected by the Calculation Agent to provide quotations are quoting as described above, LIBOR for that monthly or quarterly Interest Period will be the same as LIBOR as determined for the previous Interest Period or, in the case of the
quarterly Interest Period beginning on November 15, 2017, 5.240%. The establishment of LIBOR for each monthly or quarterly Interest Period, as applicable, by the Calculation Agent shall (in the absence of manifest error) be final and binding.

 “LIBOR Determination Date” means the second London Banking Day immediately proceeding the first day of the relevant
monthly or quarterly Interest Period. 
 “London Banking Day” means any day on which commercial banks are open for general
business (including dealings in deposits in United States dollars) in London, England. 
 “Major Subsidiary Depository
Institution” means a major subsidiary depository institution of the Company within the meaning of the Federal Reserve’s risk-based capital guidelines applicable to bank holding companies. As of the date of this Supplemental Indenture,
Schwab Bank is the Company’s only Major Subsidiary Depository Institution. 
 “Make-Whole Redemption Price” is equal to
the greater of: 
 (x) 100% of the principal amount of the Junior Subordinated Notes being redeemed, plus accrued and unpaid
interest to the Redemption Date, or 
 (y) (A) in the case of a redemption prior to November 15, 2017, the sum of
the present values of the principal amount of the Junior Subordinated Notes and each interest payment on the Junior Subordinated Notes that would have been payable from the Redemption Date to and including November 15, 2017 (not including any
portion of such payments of interest accrued as of the Redemption Date), discounted from November 15, 2017 or the applicable Interest Payment Date to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve
30-day months) at a discount rate equal to the Treasury Rate plus the Applicable Spread and, (B) in the case of a redemption after November 15, 2017 and prior to but not including November 15, 2037, the sum of the present values of
the principal amount of the Junior Subordinated Notes and each interest payment on the Junior Subordinated Notes that would have been payable from the Redemption Date to and including November 15, 2037, assuming that 

  

 5 

 
the Junior Subordinated Notes accrue interest at a rate equal to the interest rate applicable to the immediately preceding Interest Period (not including any
portion of such payments of interest accrued as of the Redemption Date), discounted from November 15, 2037 or the applicable Interest Payment Date to the Redemption Date on a quarterly basis (assuming a 360-day year consisting of twelve 30-day
months) at a discount rate equal to the three-month LIBOR rate applicable to the immediately preceding Interest Period, as calculated by the Premium Calculation Agent, minus the Applicable Spread, in each case of clauses (A) and (B) above
plus accrued and unpaid interest to the Redemption Date. 
 “Mandatorily Convertible Preferred Stock” means Preferred Stock
with (a) no prepayment obligation of the liquidation preference on the part of the issuer thereof, whether at the election of the holders or otherwise, and (b) a requirement that the Preferred Stock converts into Common Stock within three
years from the date of its issuance at a conversion ratio within a range established at the time of the issuance of the Preferred Stock, subject to customary anti-dilution adjustments. 
 “Market Disruption Event” means, with respect to the issuance or sale of Qualifying Capital Securities pursuant to Section 2.2(a)
or Qualifying APM Securities pursuant to Section 2.7, the occurrence or existence of any of the following events or sets of circumstances: 
 (i) Trading in securities generally (or in the Common Stock or Preferred Stock specifically) on the any other national securities exchange, or in the over-the-counter market, on which the Common Stock and/or Preferred
Stock is then listed or traded shall have been suspended or the settlement of such trading generally shall have been materially disrupted or minimum prices shall have been established on any such exchange or market by the relevant exchange or by any
other regulatory body or governmental agency having jurisdiction, and the establishment of such minimum prices materially disrupts or otherwise has a material adverse effect on trading in, or the issuance and sale of, Qualifying APM Securities or
Qualifying Capital Securities, as the case may be; 
 (ii) The Company would be required to obtain the consent or approval of
its stockholders or a regulatory body (including, without limitation, any securities exchange) or governmental authority to issue or sell Qualifying Capital Securities or Qualifying APM Securities, as the case may be, and such consent or approval
has not yet been obtained notwithstanding the Company’s commercially reasonable efforts to obtain such consent or approval; 
 (iii) A banking moratorium shall have been declared by the federal or state authorities of the United States and such moratorium materially disrupts or otherwise has a material adverse effect on trading in, or the issuance and sale of, the
Qualifying APM Securities or Qualifying Capital Securities, as the case may be; 
 (iv) A material disruption shall have
occurred in commercial banking or securities settlement or clearance services in the United States and such disruption materially disrupts or otherwise has a material adverse effect on trading in, or the 

  

 6 

 
issuance and sale of, the Qualifying APM Securities or Qualifying Capital Securities, as the case may be; 
 (v) The United States shall have become engaged in hostilities, there shall have been an escalation in hostilities involving the United
States, there shall have been a declaration of a national emergency or war by the United States or there shall have occurred any other national or international calamity or crisis and such event materially disrupts or otherwise has a material
adverse effect on trading in, or the issuance and sale of, the Qualifying APM Securities or Qualifying Capital Securities, as the case may be; 
 (vi) There shall have occurred such a material adverse change in general domestic or international economic, political or financial conditions, including as a result of terrorist activities, and such change materially
disrupts or otherwise has a material adverse effect on trading in, or the issuance and sale of, the Qualifying APM Securities or Qualifying Capital Securities, as the case may be; 
 (vii) An event occurs and is continuing as a result of which the offering document for such offer and sale of Qualifying APM Securities or
Qualifying Capital Securities, as the case may be, would, in the reasonable judgment of the Company, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading and either (a) the disclosure of that event at such time, in the reasonable judgment of the Company, is not otherwise required by law and would have a material adverse effect on the business of the Company or (b) the
disclosure relates to a previously undisclosed proposed or pending material business transaction, the disclosure of which would, in the reasonable judgment of the Company, impede the ability of the Company to consummate such transaction,
provided that no single suspension period contemplated by this paragraph (vii) shall exceed 90 consecutive days and multiple suspension periods contemplated by this paragraph (vii) shall not exceed an aggregate of 180 days in any
360-day period; or 
 (viii) The Company reasonably believes that the offering document for such offer and sale of Qualifying
APM Securities or Qualifying Capital Securities, as the case may be, would not be in compliance with a rule or regulation of the Commission (for reasons other than those referred to in paragraph (vii) above) and the Company is unable to comply
with such rule or regulation or such compliance is unduly burdensome, provided that no single suspension period contemplated by this paragraph (viii) shall exceed 90 consecutive days and multiple suspension periods contemplated by this
paragraph (viii) shall not exceed an aggregate of 180 days in any 360-day period. 
 “Parity Securities” means debt
securities or guarantees of the Company that rank in right of payment and upon liquidation of the Company pari passu with the Junior Subordinated Notes, and includes the Junior Subordinated Notes and the Guarantee under the Guarantee
Agreement. 
 “Paying Agent” means, with respect to the Junior Subordinated Notes, The Bank of New York Trust Company, N.A.
or any other Person, including an affiliate of the Company, authorized by the Company to pay the principal of or interest on the Junior Subordinated Notes on behalf of the Company. 
  

 7 

 “Permitted Remedies” has the meaning specified in the Replacement Capital Covenant.

 “Paying Agent Office” means the office of the applicable Paying Agent at which at any particular time its corporate
agency business will principally be administered in a Place of Payment, which office at the date hereof in the case of The Bank of New York Trust Company, N.A., in its capacity as Paying Agent with respect to the Junior Subordinated Notes under the
Indenture, is located at The Bank of New York Trust Company, N.A., 700 South Flower Street, Suite 500, Los Angeles, California 90017. 
 “Preferred Stock” means the preferred stock of the Company. 
 “Preferred Stock Issuance Cap” has
the meaning specified in Section 2.7(a)(ii). 
 “Premium Calculation Agent” means an investment banking institution of
national standing appointed by the Company. 
 “Prospectus Supplement” means the prospectus supplement dated October 2,
2007 to the prospectus dated May 5, 2004, pursuant to which the Trust Preferred Securities and the Junior Subordinated Notes were offered to investors. 
 “Qualifying APM Securities” means Common Stock, Qualifying Preferred Stock, Qualifying Warrants and Mandatorily Convertible Preferred Stock; provided, however, that such definition is subject
to modification pursuant to Section 8.3(a). 
 “Qualifying Capital Securities” has the meaning specified in the
Replacement Capital Covenant. 
 “Qualifying Preferred Stock” means non-cumulative perpetual preferred stock of the Company
(a) as to which the transaction documents provide for no remedies as a consequence of non-payment of distributions other than Permitted Remedies and (b) that (i) is either subject to Intent-Based Replacement Disclosure and has a
provision that prohibits the Company from making any distributions thereon upon its failure to satisfy one or more financial tests set forth therein or (ii) is subject to a Qualifying Replacement Capital Covenant. 
 “Qualifying Replacement Capital Covenant” has the meaning specified in the Replacement Capital Covenant. 
 “Qualifying Warrants” means net share settled warrants to purchase Common Stock that (a) have an exercise price greater than the
Current Stock Market Price as of the issuance date of such warrants; (b) the Company is not entitled to redeem for cash; and (c) the holders of which are not entitled to require the Company to repurchase for cash in any circumstances.

 “Rating Agency Event” means an amendment, clarification or change has occurred with respect to securities such as the
Junior Subordinated Notes in the equity criteria of any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act that then publishes a rating for the Company (in this definition, a
“rating agency”), which amendment, clarification or change results in a lower equity credit for the Junior Subordinated 

  

 8 

 
Notes than the then respective equity credit assigned by such rating agency or its predecessor on the date hereof. 
 “Repayment Date” means the Scheduled Maturity Date and each Interest Payment Date thereafter until the Company shall have repaid or
redeemed all of the Junior Subordinated Notes. 
 “Replacement Capital Covenant” means the Replacement Capital Covenant,
dated as of October 5, 2007, by the Company, as the same may be amended or supplemented from time to time in accordance with the provisions thereof and Section 2.2(a)(vii). 
 “Responsible Officer” means, with respect to The Bank of New York Trust Company, N.A. in its capacity as Paying Agent, any officer
within the Corporate Trust Department (or any successor department, unit or division of The Bank of New York Trust Company, N.A.) assigned to the Paying Agent Office of The Bank of New York Trust Company, N.A., in its capacity as Paying Agent,
including any vice president, assistant vice president, assistant secretary, assistant treasurer, trust officer or any other officer of The Bank of New York Trust Company, N.A who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who has direct responsibility for the
administration of the Paying Agent or other functions of the Indenture. 
 “Reuters Screen LIBOR01 Page” means the display
designated on the Reuters Screen LIBOR01 Page (or such other page as may replace the Reuters Screen LIBOR01 Page on the service or such other service as may be nominated by the British Bankers’ Association for the purpose of displaying London
interbank offered rates for United States dollar deposits). 
 “Scheduled Maturity Date” means November 15, 2037 (or,
if such day is not a Business Day, the following Business Day). 
 “Securities Registrar” means, with respect to the Junior
Subordinated Notes, The Bank of New York Trust Company, N.A., or any other firm appointed by the Company, acting as securities registrar for the Junior Subordinated Notes. 
 “Securities Registrar Office” means the office of the applicable Securities Registrar at which at any particular time its corporate
agency business will principally be administered, which office at the date hereof in the case of The Bank of New York Trust Company, N.A., in its capacity as Securities Registrar under the Indenture, is located at The Bank of New York Trust Company,
N.A., 700 South Flower Street, Suite 500, Los Angeles, California 90017. 
 “Share Cap Amount” shall have the meaning
specified in Section 2.7(a)(iii). 
 A “Supervisory Event” shall commence upon the date on which, after the Company has
notified the Federal Reserve of its intention and affirmatively requested Federal Reserve approval both to issue and sell Qualifying APM Securities and to apply the net proceeds of such sale to pay deferred interest on the Junior Subordinated Notes,
the Company has been notified that the Federal Reserve disapproves of either of these actions, and shall cease on the Business Day following the earlier to occur of (i) the tenth anniversary of the commencement of any Deferral Period (unless
such Deferral Period has terminated earlier) and (ii) the day on which the 

  

 9 

 
Federal Reserve notifies the Company in writing that it no longer disapproves of the Company’s intention to both issue and sell Qualifying APM
Securities and apply the net proceeds from such sale to pay deferred interest on the Junior Subordinated Notes. A Supervisory Event can only occur so long as the Company is subject to the supervision and regulation of the Federal Reserve.

 “Supplemental Indenture” means this instrument as originally executed or as it may from time to time be supplemented or
amended by one or more agreements supplemental hereto entered into pursuant to the applicable provisions hereof. 
 “Tax
Event” means that the Company has requested and received an opinion of counsel experienced in such matters to the effect that, as a result of any: 
 (i) amendment to or change (including any announced prospective change) in the laws or regulations of the United States or any political subdivision or taxing authority of or in the United States that is enacted or
becomes effective after the initial issuance of the Trust Preferred Securities; 
 (ii) proposed change in those laws or
regulations that is announced after the initial issuance of the Trust Preferred Securities; 
 (iii) official administrative
decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of the Trust Preferred Securities; or 
 (iv) threatened challenge asserted in writing in connection with an audit of the Trust, the Company or its Subsidiaries, or a threatened
challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the Junior Subordinated Notes or the Trust Preferred Securities; 
 there is more than an insubstantial increase in risk that: 
 (i) the Trust is or will be subject to United States federal income tax with respect to income received or accrued on the Junior Subordinated Notes; 
 (ii) interest payable by the Company on the Junior Subordinated Notes is not, or will not be, deductible by the Company, in whole or in
part, for United States federal income tax purposes; or 
 (iii) the Trust is or will be subject to more than a de
minimis amount of other taxes, duties or other governmental charges. 
 “Trading Day” means a day on which Common Stock
is traded on the Nasdaq Global Select Market, or if not then listed on the Nasdaq Global Select Market, a day on which Common Stock is traded or quoted on the principal U.S. securities exchange on which it is listed or quoted, or if not then listed
or quoted on a U.S. securities exchange, a day on which Common Stock is quoted in the over-the-counter market. 
  

 10 

 “Treasury Dealer” means UBS Securities LLC (or its successor) or, if UBS Securities LLC
(or its successor) refuses to act as treasury dealer for this purpose or ceases to be a primary U.S. Government securities dealer, another nationally recognized investment banking firm that is a primary U.S. Government securities dealer specified by
the Company for these purposes. 
 “Treasury Price” means the bid-side price for the Treasury Security as of the third
Trading Day preceding the Redemption Date, as set forth in the daily statistical release (or any successor release) published by the Federal Reserve Bank of New York on that Trading Day and designated “Composite 3:30 p.m. Quotations for U.S.
Government Securities”, except that: (i) if that release (or any successor release) is not published or does not contain that price information on that Trading Day; or (ii) if the Treasury Dealer determines that the price
information is not reasonably reflective of the actual bid-side price of the Treasury Security prevailing at 3:30 p.m., New York City time, on that Trading Day, then Treasury Price will instead mean the bid-side price for the Treasury Security at or
around 3:30 p.m., New York City time, on that Trading Day (expressed on a next trading day settlement basis) as determined by the Treasury Dealer through such alternative means as the Treasury Dealer considers to be appropriate under the
circumstances. 
 “Treasury Rate” means the semi-annual equivalent yield to maturity of the Treasury Security that
corresponds to the Treasury Price (calculated in accordance with standard market practice and computed as of the second Trading Day preceding the Redemption Date). 
 “Treasury Security” means the United States Treasury security that the Treasury Dealer determines would be appropriate to use, at the time of determination and in accordance with standard market
practice, in pricing the Junior Subordinated Notes being redeemed in a tender offer based on a spread to United States Treasury yields. 
 “Trust” has the meaning specified in the Recitals. 
 “Trust Agreement” means the Second Amended
and Restated Trust Agreement, dated as of October 5, 2007, among the Company, as Sponsor, The Bank of New York Trust Company, N.A., as the Property Trustee, The Bank of New York (Delaware) as the Delaware Trustee, and the Administrative
Trustees. 
 “Trust Common Securities” has the meaning specified in the Recitals. 
 “Trustee” has the meaning specified in the first paragraph of this Supplemental Indenture. 
 “Trust Preferred Securities” has the meaning specified in the Recitals. 
 “Trust Securities” has the meaning specified in the Recitals. 
 “Underwriting Agreement” means the Underwriting Agreement, dated as of October 2, 2007, among the Trust, the Company and the
underwriters named therein. 
  

 11 

 ARTICLE II 
 GENERAL TERMS AND CONDITIONS OF THE JUNIOR SUBORDINATED NOTES 
 Section 2.1 Designation, Principal
Amount and Authorized Denomination. There is hereby authorized a series of Securities designated the Fixed to Floating Rate Junior Subordinated Notes due 2067 (the “Junior Subordinated Notes”), the amount of which to be issued
will be as set forth in any Company Order for the authentication and delivery of Junior Subordinated Notes pursuant to the Indenture. The denominations in which Junior Subordinated Notes will be issuable are $1,000 principal amount and integral
multiples thereof. The maximum aggregate principal amount of Junior Subordinated Notes that may be authenticated and delivered under this Supplemental Indenture is $300,010,000 (except for Junior Subordinated Notes authenticated and delivered upon
registration of transfer of, or exchange for, or in lieu of, other Junior Subordinated Notes pursuant to Section 3.4, 3.5, 3.6, 9.6 or 11.6 of the Indenture or Section 3.5 of this Supplemental Indenture). 
 Section 2.2 Repayment 
  

	 	(a)	Scheduled Maturity Date. 

 (i) The
principal amount of, and all accrued and unpaid interest on, the Junior Subordinated Notes will be payable in full on the Scheduled Maturity Date; provided, however, that in the event the Company has delivered an Officers’ Certificate to
the Trustee pursuant to clause (v) of this Section 2.2(a) in connection with the Scheduled Maturity Date, (x) the principal amount of Junior Subordinated Notes payable on the Scheduled Maturity Date, if any, will be the principal
amount set forth in the notice of repayment, if any, accompanying such Officers’ Certificate, (y) such principal amount of Junior Subordinated Notes will be repaid on the Scheduled Maturity Date pursuant to Article III, and
(z) subject to clause (iii) of this Section 2.2(a), the remaining Junior Subordinated Notes will remain outstanding and will be payable on the immediately succeeding Interest Payment Date or such earlier date on which they are
redeemed pursuant to Section 2.8 or become due and payable pursuant to Section 5.2 of the Indenture, as amended by Section 2.9(b) hereof. The entire principal amount of the Junior Subordinated Notes outstanding will be due and payable
on the Scheduled Maturity Date in the event the Company does not deliver an Officers’ Certificate to the Trustee during the period from and including the 30th Business Day immediately preceding the Scheduled Maturity Date to and including the
10th Business Day immediately preceding the Scheduled Maturity Date. 
 (ii) In the event the Company has delivered an
Officers’ Certificate to the Trustee pursuant to clause (v) of this Section 2.2(a) in connection with any Interest Payment Date after the Scheduled Maturity Date, the principal amount of Junior Subordinated Notes repayable on such
Interest Payment Date will be the principal amount set forth in the notice of repayment, if any, accompanying such Officers’ Certificate, and will be repaid on such Interest Payment Date pursuant to Article III, and the remaining Junior
Subordinated Notes will remain outstanding 

  

 12 

 
and will be payable on the immediately succeeding Interest Payment Date or such earlier date on which they are redeemed pursuant to Section 2.8 or
become due and payable pursuant to Section 5.2 of the Indenture, as amended by Section 2.9(b) hereof. The entire principal amount of the Junior Subordinated Notes outstanding will be due and payable on any Interest Payment Date after the
Scheduled Maturity Date in the event the Company does not deliver an Officers’ Certificate to the Trustee during the period from and including the 30th Business Day immediately preceding such Interest Payment Date to and including the 5th
Business Day immediately preceding such Interest Payment Date. 
 (iii) The obligation of the Company to repay the Junior
Subordinated Notes pursuant to this Section 2.2(a) on any date before the Final Repayment Date will be subject to (x) its obligations under Article XIII of the Indenture to the holders of Senior Debt and (y) its obligations under
Section 2.5 with respect to the payment of deferred interest on the Junior Subordinated Notes. 
 (iv) Until the Junior
Subordinated Notes are paid in full, the Company will use Commercially Reasonable Efforts, subject to a Market Disruption Event: 
 (A) to raise sufficient net proceeds from the issuance of Qualifying Capital Securities during a 180-day period ending on the date, not more than 30 Business Days and not less than 10 Business Days before the Scheduled Maturity Date, on
which the Company delivers the notice required by clause (v) of this Section 2.2(a) and Section 3.1, to permit repayment of the Junior Subordinated Notes in full on the Scheduled Maturity Date pursuant to clause (i) of this
Section 2.2(a); and 
 (B) if the Company is unable for any reason to raise sufficient proceeds from the issuance of
Qualifying Capital Securities to permit repayment in full of the Junior Subordinated Notes on the Scheduled Maturity Date (as required by clause (A) above) or any subsequent Interest Payment Date, to raise sufficient net proceeds from the
issuance of Qualifying Capital Securities during a 30-day period ending on the date, not more than 30 and not less than 10 Business Days before the following Interest Payment Date, on which the Company delivers the notice required by clause
(v) of this Section 2.2(a) and Section 3.1, to permit repayment of the Junior Subordinated Notes in full on such following Interest Payment Date pursuant to clause (i)(z) of this Section 2.2(a). 
 (v) The Company shall, if it has not raised sufficient net proceeds from the issuance of Qualifying Capital Securities pursuant to clause
(iv) above in connection with any Repayment Date, deliver an Officers’ Certificate to the Trustee (which the Trustee shall promptly forward upon receipt to the Property Trustee) no more than 15 and no less than 10 Business Days in advance
of such Repayment Date stating the amount of net proceeds, if any, raised pursuant to clause (iv) above in connection with such Repayment Date and the corresponding principal amount of the Junior Subordinated Notes represented thereby. The

  

 13 

 
Company shall be excused from its obligation to use Commercially Reasonable Efforts to sell Qualifying Capital Securities pursuant to clause (iv) above
if such Officers’ Certificate further certifies that: (A) a Market Disruption Event was existing during the 180-day period preceding the date of such Officers’ Certificate or, in the case of any Repayment Date after the Scheduled
Maturity Date, the 30-day period preceding the date of such Officers’ Certificate; and (B) either (1) the Market Disruption Event continued for the entire 180- or 30-day period, as the case may be, or (2) the Market Disruption
Event continued for only part of the period, but the Company was unable after Commercially Reasonable Efforts to raise sufficient net proceeds during the rest of that period to permit repayment of the Junior Subordinated Notes in full pursuant to
clause (iv) above. Each Officers’ Certificate delivered pursuant to this clause (v), unless no principal amount of Junior Subordinated Notes is to be repaid on the applicable Repayment Date, will be accompanied by a notice of repayment
pursuant to Section 3.1 setting forth the principal amount of the Junior Subordinated Notes to be repaid on such Repayment Date, if any, which amount will be determined after giving effect to clause (vi) of this Section 2.2(a).

 (vi) Payments in respect of the Junior Subordinated Notes on any Repayment Date will be applied, first, to deferred
interest to the extent of Eligible Proceeds raised pursuant to Section 2.7, second, to pay current interest to the extent not paid from other sources and, third, to the principal of the Junior Subordinated Notes; provided that if the
Company is obligated to sell Qualifying Capital Securities and make payments of principal on any outstanding Parity Securities in addition to the Junior Subordinated Notes in respect thereof, then on any date and for any period the amount of net
proceeds received by the Company from those sales and available for such payments shall be applied first to Parity Securities having an earlier scheduled maturity date than the Junior Subordinated Notes, and then to the Junior Subordinated Notes and
those other Parity Securities having the same scheduled maturity date as the Junior Subordinated Notes pro rata in accordance with their respective outstanding principal amounts and no such payments will be made to any other Parity Securities
having a later scheduled maturity date until the principal of the Junior Subordinated Notes has been paid in full, except to the extent permitted by Section 2.6(a) and 2.7(c). Notwithstanding the foregoing, if the Company raises less than $5
million of net proceeds from the sale of Qualifying Capital Securities during the relevant 180- or 30-day period, the Company will not be required to repay any Junior Subordinated Notes on the applicable Repayment Date. On the next Interest Payment
Date as of which the Company has raised at least $5 million of net proceeds during the 180-day period preceding the applicable notice date (or, if shorter, the period since the Company last repaid any principal amount of Junior Subordinated Notes),
the Company shall be required to repay interest and a principal amount of the Junior Subordinated Notes equal to the entire net proceeds from the sale of Qualifying Capital Securities during such 180-day or shorter period. 
  

 14 

 (vii) The Company shall not amend the Replacement Capital Covenant to impose additional
restrictions on the type or amount of Qualifying Capital Securities that the Company may include for purposes of determining whether and to what extent repayment, redemption or purchase of the Junior Subordinated Notes or the Trust Preferred
Securities is permitted, except with the consent of holders of a majority by liquidation amount of the Trust Preferred Securities or, if the Junior Subordinated Notes have been distributed by the Trust to the holders of the Trust Preferred
Securities, a majority by principal amount of the Junior Subordinated Notes. Except as aforesaid, the Company may amend or supplement the Replacement Capital Covenant in accordance with its terms and without the consent of the holders of the Trust
Preferred Securities or the Junior Subordinated Notes. 
 (b) Final Repayment Date. The principal of, and all accrued
and unpaid interest on, all outstanding Junior Subordinated Notes will be due and payable on November 15, 2067 or, if such day is not a Business Day, the following Business Day (the “Final Repayment Date”), regardless of the
amount of Qualifying Capital Securities or Qualifying APM Securities the Company may have issued and sold by that time. 
 Section 2.3
Form. The Junior Subordinated Notes will be issued in fully registered definitive form without interest coupons. Principal of and interest on the Junior Subordinated Notes issued in definitive form will be payable, the transfer of such Junior
Subordinated Notes will be registrable and such Junior Subordinated Notes will be exchangeable for Junior Subordinated Notes bearing identical terms and provisions and notices and demands to or upon the Company in respect of the Junior Subordinated
Notes and the Indenture may be served at the Corporate Trust Office of the Trustee, and the Company appoints the Trustee as its agent for the foregoing purposes, provided that payment of interest may be made at the option of the Company by
check mailed to the Holder at such address as will appear in the Securities Register or by wire transfer in immediately available funds to the bank account number of the Holder specified in writing by the Holder not less than 10 days before the
relevant Interest Payment Date and entered in the Securities Register by the Securities Registrar, provided, further, that if the Property Trustee, on behalf of the Trust, is the sole Holder of the Junior Subordinated Notes then payment of
interest will be made by wire transfer in immediately available funds to a bank account number specified by the Property Trustee. The Junior Subordinated Notes may be presented for registration of transfer or exchange at the Securities Registrar
Office. 
 Section 2.4 Rate of Interest; Interest Payment Dates 
 (a) Rate of Interest. The Junior Subordinated Notes will bear interest at the rate of (i) 7.500% per annum, from and
including October 5, 2007 to but excluding November 15, 2017, (ii) an annual rate equal to three-month LIBOR plus 2.375%, from and including November 15, 2017 to but excluding November 15, 2037, and (iii) to the extent
the Junior Subordinated Notes are not repaid on or after the Scheduled Maturity Date, an annual rate equal to one-month LIBOR plus 3.375% to but excluding the date on which the Junior Subordinated Notes are repaid in full. The interest will accrue
from October 5, 2007 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, as the case may be, until the principal thereof is paid or made 

  

 15 

 
available for payment. Interest will be computed on the basis of (i) a 360-day year comprised of twelve 30-day months with respect to any Interest
Period ending on or prior to November 15, 2017 and (ii) a 360-day year and the actual number of days elapsed with respect to any other Interest Period. Accrued interest that is not paid on the applicable Interest Payment Date (after giving
effect to the adjustments described in the last sentence of Section 2.4(b)), including interest deferred pursuant to Section 2.5, will bear Additional Interest, to the extent permitted by law, at the then-applicable rate described in this
paragraph from the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date. 
 (b) Interest
Payment Dates. Subject to the other provisions hereof, interest on the Junior Subordinated Notes will be payable (i) semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2007,
(ii) quarterly in arrears on February 15, May 15, August 15, and November 15 of each year, beginning on February 15, 2018; and (iii) to the extent the Junior Subordinated Notes are not repaid on or after
the Scheduled Maturity Date, monthly in arrears on the first day of each month, beginning on December 1, 2037 (each such date, an “Interest Payment Date”); provided, however, if any Interest Payment Date described in
clauses (ii) or (iii) of this paragraph falls on a day that is not a Business Day, the applicable Interest Payment Date shall instead occur on the immediately succeeding Business Day. If any Interest Payment Date scheduled on or prior to
the November 15, 2017 interest payment occurs on a day that is not a Business Day, the payment of interest for such Interest Payment Date shall be made (or such interest shall be made available for payment) on the next succeeding Business Day
with the same force and effect as if such payment were made on the relevant Interest Payment Date. 
 Section 2.5 Interest
Deferral 
 (a) Option to Defer Interest Payments. The following provisions shall apply to the Junior Subordinated
Notes in lieu of Section 3.11 and Section 10.7 of the Indenture: 
 (i) The Company will have the right at any time
and from time to time, to defer the payment of interest on the Junior Subordinated Notes for one or more consecutive Interest Periods up to 10 years; provided that no Deferral Period will extend beyond the Final Repayment Date or the earlier
redemption of the Junior Subordinated Notes. Upon the payment of all deferred interest then due on any Interest Payment Date, the Company may elect to begin a new Deferral Period pursuant to this Section 2.5. 
 (ii) At the end of any Deferral Period, the Company will pay all deferred interest on the Junior Subordinated Notes to the Persons in
whose names the Junior Subordinated Notes are registered in the Securities Register at the close of business on the Regular Record Date with respect to the Interest Payment Date at the end of such Deferral Period. 
 (iii) The Company may elect to pay interest on any Interest Payment Date during any Deferral Period to the extent permitted by
Section 2.5(b). 
  

 16 

 (b) Payment of Deferred Interest. Except as provided in Section 2.5(c), the
Company will not pay deferred interest on the Junior Subordinated Notes before the Final Repayment Date or at any time an Event of Default as described under Section 2.9(a) has occurred and is continuing from any source other than Eligible
Proceeds; provided, however, that if a Supervisory Event has occurred and is continuing, then the Company may (but is not obligated to) pay deferred interest with cash from any source (applicable so long as the Company is subject to the
supervision and regulation of the Federal Reserve). In addition, if the Company sells Qualifying APM Securities pursuant to Section 2.7 but a Supervisory Event arises from the Federal Reserve disapproving the use of the proceeds to pay deferred
interest, the Company may use the proceeds for other purposes and continue to defer interest on the Junior Subordinated Notes. The Company may pay current interest during a Deferral Period or at any other time from any available funds. 

(c) Business Combination Exception. If the Company is involved in a Business Combination where immediately after its
consummation more than 50% of the voting stock of the Person formed by such Business Combination, or the Person that is the surviving entity of such Business Combination, or the Person to whom such properties and assets are conveyed, transferred or
leased in such Business Combination, is owned by the shareholders of the other party to such Business Combination, then Section 2.5(b) and Section 2.7 will not apply to any Deferral Period that is terminated on the next Interest Payment
Date following the date of consummation of such Business Combination (or if later than such Interest Payment Date, at any time within 90 days following the date of consummation of the Business Combination). The Company will establish a Special
Record Date for the payment of any deferred interest pursuant to this Section 2.5(c) on a date other than an Interest Payment Date. 
 (d) Notice of Deferral. The Company will give written notice of its election to begin or extend any Deferral Period, (x) if the Property Trustee, on behalf of the Trust, is the sole Holder of the Junior
Subordinated Notes, to the Property Trustee and the Delaware Trustee no more than 30 Business Days and no less than five Business Days before the earlier of (A) the next succeeding date on which the distributions on the Trust Preferred
Securities are payable and (B) the date on which the Property Trustee is required to give notice to holders of the Trust Preferred Securities of the record or payment date for the related distribution, or (y) if the Property Trustee, on
behalf of the Trust, is not the sole Holder of the Junior Subordinated Notes, to each Holder of the Junior Subordinated Notes and the Trustee no more than 30 Business Days and no less than five Business Days before the next Interest Payment Date.
Notice of the Company’s election of a Deferral Period will be given by the Property Trustee by first-class mail, postage prepaid, mailed not less than three Business Days after the Property Trustee receives written notice from the Company to
each holder of Trust Securities at such holder’s address appearing in the Security Register. 
 Section 2.6 Dividend and Other
Payment Stoppages 
 (a) During Deferral Period. So long as any Junior Subordinated Notes remain Outstanding, if
the Company has given notice of its election to defer interest payments on 

  

 17 

 
the Junior Subordinated Notes but the related Deferral Period has not yet commenced or a Deferral Period is continuing, the Company will not, and will not
permit any Subsidiary to: 
 (i) declare or pay any dividends or distributions, or redeem, purchase, acquire or make a
liquidation payment with respect to, any shares of capital stock of the Company; 
 (ii) make any payment of principal of or
interest or premium, if any, on or repay, purchase or redeem any Parity Securities; or 
 (iii) make any payments under any
guarantee by the Company that is a Parity Security; 
 provided, however, the restrictions in clauses (i), (ii) and
(iii) above do not apply to: (1) any purchase, redemption or other acquisition of shares of the Company’s capital stock by the Company in connection with (A) any employment contract, benefit plan or other similar arrangement with
or for the benefit of any one or more of its employees, officers, directors or consultants, (B) a dividend reinvestment or shareholder purchase plan or (C) transactions effected by or for the account of customers of the Company or any of
its affiliates or in connection with the distribution, trading or market-making in respect of the Trust Preferred Securities, (2) any exchange or conversion of any class or series of the Company’s capital stock, or the capital stock of one
of its Subsidiaries, for any other class or series of its capital stock, or of any class or series of its indebtedness for any class or series of its capital stock, (3) any purchase of fractional interests in shares of the Company’s
capital stock pursuant to the conversion or exchange provisions of such capital stock or the securities being converted or exchanged, (4) any declaration of a dividend in connection with any shareholder rights plan, or the issuance of rights,
stock or other property under any shareholder rights plan, or the redemption or purchase of rights pursuant thereto, (5) any dividend in the form of stock, warrants, options or other rights, where the dividend stock or stock issuable upon
exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock, (6) any payment of current or deferred interest on Parity Securities that is made
pro rata to the amounts due on such Parity Securities, provided that such payments are made in accordance with Section 2.7(c) to the extent it applies, and any payment of deferred interest on Parity Securities existing as of the date of
this Indenture that, if not made, would cause the Company to breach the terms of the instrument governing such Parity Securities, or (7) any payment of principal in respect of Parity Securities having an earlier scheduled maturity date as the
Scheduled Maturity Date for the Junior Subordinated Notes, as required under a provision of such other Parity Securities that is substantially the same as the provision described under Section 2.2(a), and any payment of principal in respect of
Parity Securities having the same scheduled maturity date as the Scheduled Maturity Date for the Junior Subordinated Notes, as required by such a provision, and that is made on a pro rata basis among one or more series of Parity Securities
(including the Junior Subordinated Notes) having such a provision. The distribution restrictions and exceptions in this Section 2.6 will be in lieu of the distribution restrictions and exceptions in Section 3.11 of the Indenture.

  

 18 

 (b) Additional Limitation Upon Deferral Lasting Over One Year. If any Deferral
Period lasts longer than one year, the Company will not repurchase or acquire any securities ranking junior to or pari passu with any Qualifying APM Securities that were issued and the proceeds of which were used to settle deferred interest
during the relevant Deferral Period, before the first anniversary of the date on which all deferred interest on the Junior Subordinated Notes has been paid, subject to the exceptions listed in clauses (1) through (7) of
Section 2.6(a). However, if the Company is involved in a Business Combination where, immediately after its consummation more than 50% of the voting stock of the Person formed by such Business Combination, or the Person that is the surviving
entity of such Business Combination, or the Person to whom such properties and assets are conveyed, transferred or leased in such Business Combination, is owned by the shareholders of the other party to such Business Combination, then the limitation
set forth in this Section 2.6(b) will not apply to any Deferral Period that is terminated on the next Interest Payment Date following the date of consummation of such Business Combination (or if later than such Interest Payment Date, at any
time within 90 days following the date of consummation of the Business Combination). 
 Section 2.7 Alternative Payment Mechanism

 (a) Obligation to Issue Qualifying APM Securities. Commencing on the earlier of (i) the first Interest Payment
Date following the commencement of any Deferral Period on which the Company pays any current interest on the Junior Subordinated Notes from any source of funds or (ii) the fifth anniversary of the commencement of such Deferral Period, the
Company shall, subject to the occurrence and continuation of an Event of Default as described under Section 2.9(a) or a Supervisory Event or a Market Disruption Event as described under Section 2.7(b) and subject to Section 2.5(c),
use Commercially Reasonable Efforts to issue and sell one or more types of Qualifying APM Securities until the Company has raised an amount of Eligible Proceeds at least equal to the aggregate amount of accrued and unpaid deferred interest on the
Junior Subordinated Notes and applied such Eligible Proceeds on the next Interest Payment Date to the payment of deferred interest in accordance with Section 2.5, provided that: 
 (i) the foregoing obligations will not apply to the extent that, with respect to deferred interest attributable to the first five years of
any Deferral Period, the net proceeds of any issuance of Common Stock or Qualifying Warrants applied during such Deferral Period to pay interest on the Junior Subordinated Notes pursuant to this Section 2.7, together with the net proceeds of
all prior issuances of Common Stock and Qualifying Warrants so applied during such Deferral Period, would exceed an amount equal to 2% of the product of the average of the Current Stock Market Prices of the Common Stock on the 10 consecutive Trading
Days ending on the second Trading Day immediately preceding the date of issuance of such securities multiplied by the total number of issued and outstanding shares of Common Stock as of the date of the Company’s then most recent publicly
available consolidated financial statements (the “Common Equity Issuance Cap”); provided that the Common Equity Issuance Cap will cease to apply after the fifth anniversary of the commencement of any Deferral Period, at which
point the Company must pay any deferred interest 

  

 19 

 
regardless of the time at which it was deferred, pursuant to this Section 2.7, subject to the Share Cap Amount and any Supervisory Event (applicable so
long as the Company is subject to the supervision or regulation of the Federal Reserve) or Market Disruption Event; and provided, further, that if the Common Equity Issuance Cap is reached during a Deferral Period and the Company subsequently
repays all deferred interest, the Common Equity Issuance Cap will cease to apply at the termination of such Deferral Period and will not apply again unless and until the Company starts a new Deferral Period; and provided, further, that once
the Company reaches the Common Equity Issuance Cap for a Deferral Period, the Company will not be required to issue more Common Stock (or Qualifying Warrants if the definition of Qualifying APM Securities has been modified pursuant to
Section 8.3(a) to exclude Common Stock) with respect to deferred interest attributable to the first five years of such Deferral Period pursuant to this Section 2.7, even if the amount referred to in this clause (i) subsequently
increases because of a subsequent increase in the Current Stock Market Price of the Common Stock or the number of outstanding shares of Common Stock; and 
 (ii) the Company shall not be permitted to issue Qualifying Preferred Stock and Mandatorily Convertible Preferred Stock to pay deferred interest on the Junior Subordinated Notes, and the foregoing obligations will not
apply, to the extent that the net proceeds of any issuance of Qualifying Preferred Stock and Mandatorily Convertible Preferred Stock applied together with the net proceeds of all prior issuances of Qualifying Preferred Stock and any still
outstanding Mandatorily Convertible Preferred Stock applied during the current and all prior Deferral Periods, to pay interest on the Junior Subordinated Notes pursuant to this Section 2.7, would exceed 25% of the aggregate principal amount of
the Junior Subordinated Notes issued under the Indenture (the “Preferred Stock Issuance Cap”); and 
 (iii)
notwithstanding the Common Equity Issuance Cap and the Preferred Stock Issuance Cap, for purposes of paying deferred interest, the Company shall not be permitted to sell Common Stock, Qualifying Warrants, or Mandatorily Convertible Preferred Stock
if the Common Stock to be issued (or which would be issuable upon exercise or conversion thereof) would be in excess of 100 million shares of Common Stock (the “Share Cap Amount”); provided that if the issued and
outstanding shares of Common Stock are changed into a different number of shares or a different class by reason of any stock split, reverse stock split, stock dividend, reclassification, recapitalization, split-up, combination, exchange of shares or
other similar transaction, the Share Cap Amount shall be correspondingly adjusted; provided further that if the definition of Qualifying APM Securities has been modified pursuant to Section 8.3(a) to eliminate Common Stock, the then
effective Share Cap Amount shall be increased by 100%. The Share Cap Amount limitation shall apply so long as the Junior Subordinated Notes remain outstanding. If the Share Cap Amount has been reached and it is not sufficient to allow the Company to
raise sufficient proceeds to pay deferred interest including Additional Interest, in full, the Company shall use its commercially reasonable efforts to increase the Share Cap Amount to 

  

 20 

 
permit it to raise sufficient proceeds to pay deferred interest, including Additional Interest, in full (1) only to the extent that the Company can do
so and simultaneously satisfy its future fixed or contingent obligations under other securities and derivative instruments that provide for settlement or payment in shares of Common Stock or (2) if the Company cannot increase the Share Cap
Amount pursuant to the preceding clause (1), by requesting the Company’s Board of Directors to adopt a resolution advising and submitting to a stockholder vote at the next occurring annual stockholders meeting a proposal to increase the number
of shares of the Company’s authorized Common Stock for purposes of satisfying the Company’s obligations to pay deferred interest. 
 (iv) so long as the definition of Qualifying APM Securities has not been modified to eliminate Common Stock, the sale of Qualifying Warrants to pay deferred interest is an option that may be exercised at the
Company’s sole discretion and the Company is not obligated to sell Qualifying Warrants or to apply the proceeds of any such sale to pay deferred interest on the Junior Subordinated Notes, and no class of investors of the Company’s
securities, or any other party, may require the Company to issue Qualifying Warrants; provided, however, that if the Company sells Qualifying Warrants to pay deferred interest pursuant to this Section 2.7, the Company shall use
Commercially Reasonable Efforts, subject to the Common Equity Issuance Cap, to set the terms of the Qualifying Warrants so as to raise sufficient proceeds from their issuance to pay all deferred interest on the Junior Subordinated Notes in
accordance with this Section 2.7. 
 (b) Market Disruption Event and Supervisory Event. Section 2.7(a) will
not apply with respect to any Interest Payment Date if the Company shall have provided to the Trustee (which Trustee will promptly forward upon receipt to the Property Trustee) no more than 15 Business Days and no less than 10 Business Days before
such Interest Payment Date an Officers’ Certificate stating that (i) a Market Disruption Event or (so long as the Company is subject to supervision and regulation of the Federal Reserve) a Supervisory Event existed after the immediately
preceding Interest Payment Date and (ii) any of (x) the Market Disruption Event or Supervisory Event continued for the entire period from the Business Day immediately following the preceding Interest Payment Date to the Business Day
immediately preceding the date on which such Officers’ Certificate is provided or (y) the Market Disruption Event or Supervisory Event continued for only part of such period but the Company was unable to raise sufficient Eligible Proceeds
during the rest of that period to pay all accrued and unpaid interest due on the Interest Payment Date with respect to which such Officers’ Certificate is being delivered or (z) the Supervisory Event prevents the Company from applying the
net proceeds of sales of Qualifying APM Securities to pay deferred interest on such Interest Payment Date. 
 (c) Partial
Payment of Deferred Interest. 
 (i) If the Company has raised some but not all Eligible Proceeds necessary to pay all
accrued and unpaid deferred interest on any Interest Payment 

  

 21 

 
Date pursuant to this Section 2.7, such Eligible Proceeds will be allocated to pay accrued and unpaid deferred interest on the applicable Interest
Payment Date in chronological order based on the date each payment was first deferred, subject to the Share Cap Amount, Common Equity Issuance Cap and the Preferred Stock Issuance Cap. 
 (ii) If the Company has outstanding Parity Securities under which the Company is obligated to sell securities that are Qualifying APM
Securities and apply the net proceeds to the payment of accrued and unpaid deferred interest or distributions on such Parity Securities, then on any date and for any period the amount of net proceeds received by the Company from those sales and
available for payment of the accrued and unpaid deferred interest and distributions will be applied to the Junior Subordinated Notes and those other Parity Securities on a pro rata basis up to the Share Cap Amount, the Common Equity Issuance Cap and
the Preferred Stock Issuance Cap, as applicable (or comparable provisions in the instruments governing those other Parity Securities) in proportion to the total amounts of accrued and unpaid deferred interest or distributions that are due on the
Junior Subordinated Notes and such other Parity Securities at such time, or, so long as the Company is subject to the supervision and regulation of the Federal Reserve, on such other basis as the Federal Reserve may approve. The Company may make
such pro rata payments on such Parity Securities so long as it shall have paid or deposited with the Paying Agent for the Junior Subordinated Notes or segregated and holds in trust for payment the pro rata amount of accrued and unpaid deferred
interest payable on the Junior Subordinated Notes. 
 (d) Qualifying APM Securities Definition Change. The Company will
send written notice to the Trustee (which notice the Trustee will promptly forward upon receipt to the Administrative Trustees, who will forward such notice to each holder of record of Trust Preferred Securities) prior to the effective date of any
change in the definition of Qualifying APM Securities pursuant to Section 8.3(a) to eliminate Common Stock and/or Mandatorily Convertible Preferred Stock. 
 Section 2.8 Redemption of the Junior Subordinated Notes 
 (a) Redemption.
Section 11.7 of the Indenture shall not apply to the Junior Subordinated Notes. The Junior Subordinated Notes shall be redeemable, at the Company’s option, at any time, including on or after the Scheduled Maturity Date. The redemption
price shall be 100% of the principal amount of Junior Subordinated Notes being redeemed, plus accrued and unpaid interest through the Redemption Date, in the case of any redemption (i) in whole or in part on November 15, 2017 (or if such
day is not a Business Day, on the next Business Day); (ii) in whole but not in part at any time within 90 days after the occurrence of a Capital Treatment Event (applicable only so long as the Company is subject to the regulation and
supervision of the Federal Reserve) or Investment Company Event; (iii) in whole but not in part at any time after November 15, 2017 and within 90 days after the occurrence of a Tax Event or a Rating Agency Event; or (iv) in whole or
in part at any time on or after November 15, 2037. In all other cases, the redemption price will equal the applicable Make-Whole Redemption Price. The 

  

 22 

 
Company will notify the Trust of the applicable Make-Whole Redemption Price (if applicable) promptly after the calculation thereof and the Trust, the Trustee
and the Calculation Agent will have no responsibility for calculating the Make-Whole Redemption Price. The Make-Whole Redemption Price will be calculated by the Premium Calculation Agent. The Company may not redeem the Junior Subordinated Notes in
part if the principal amount of the Junior Subordinated Notes has been accelerated and such acceleration has not been rescinded, unless all accrued and unpaid interest including deferred interest has been paid in full on all outstanding Junior
Subordinated Notes for all Interest Periods terminating on or before the Redemption Date. Notice of any redemption will be mailed at least thirty (30) days but not more than sixty (60) days before the Redemption Date to (x) the
Property Trustee and the Delaware Trustee, if the Property Trustee, on behalf of the Trust, is the sole Holder of the Junior Subordinated Notes; and (y) each holder of Junior Subordinated Notes to be redeemed at its registered address in all
other cases. In the event that payment of the Redemption Price in respect of any Junior Subordinated Notes called for redemption is improperly withheld or refused, interest on such Junior Subordinated Notes will continue to accrue at the then
applicable rate, from the Redemption Date originally established by the Company for such Junior Subordinated Notes to the date such Redemption Price is actually paid, in which case the actual payment date will be the date fixed for redemption for
purposes of calculating the Redemption Price. 
 (b) Sinking Fund. The Junior Subordinated Notes are not entitled to
any sinking fund payments or similar provisions. 
 Section 2.9 Events of Default. (a) Paragraphs (1) through (6) of
Section 5.1 of the Indenture will not apply to the Junior Subordinated Notes and such paragraphs are replaced with the following subparagraphs (i) through (iv), the occurrence of any of which shall be an Event of Default with respect to
the Junior Subordinated Notes. 
 (i) the default in the payment of interest, including Additional Interest, in full on the
Junior Subordinated Notes for a period of 30 days after the conclusion of a 10-year period following the commencement of any Deferral Period; 
 (ii) the entry of a decree or order by a court having jurisdiction in the premises adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Company or of any substantial part of its property or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days; 
 (iii) the institution by the Company of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of
bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or 

  

 23 

 
consent seeking reorganization or relief under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or the consent by
it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for
the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due and its willingness to be adjudicated a bankrupt, or the taking of corporate action by the Company in furtherance of any such
action; or 
 (iv) so long as the Company is subject to the supervision and regulation of the Federal Reserve, a receiver is
appointed for a Major Subsidiary Depository Institution. 
 (b) The first paragraph of Section 5.2 of the Indenture will
not apply to the Junior Subordinated Notes and such paragraph is replaced with the following paragraph: 
 “If an Event of Default with
respect to the Junior Subordinated Notes at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of at least 25% in principal amount of the Outstanding Junior Subordinated Notes may declare the entire
principal amount and all accrued but unpaid interest on all the Junior Subordinated Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders); provided that, in the case of the
Junior Subordinated Notes issued to and held by the Trust, or any trustee thereof or agent therefor, if upon an Event of Default, the Trustee or the Holders of at least 25% in principal amount of the Outstanding Junior Subordinated Notes fails to
declare the entire principal and all accrued but unpaid interest on all the Junior Subordinated Notes to be immediately due and payable, the Property Trustee or the holders of at least 25% in aggregate Liquidation Amount of the Trust Preferred
Securities then outstanding shall have such right by a notice in writing to the Company and the Trustee; and upon any such declaration, the principal amount of and the accrued but unpaid interest (including any Additional Interest) on all the Junior
Subordinated Notes will become immediately due and payable; provided that the payment of principal and interest (including any Additional Interest) on such Securities will remain subordinated to the extent provided in Article XIII.”

 (c) If the Holders of the Junior Subordinated Notes do not rescind and annul any declaration and its consequences under
Section 5.2 of the Indenture and the Junior Subordinated Notes are owned beneficially by the Trust or the Property Trustee, the holders of at least a majority in aggregate Liquidation Amount of the Trust Preferred Securities shall have such
right, subject to the satisfaction of clauses (1) and (2) of Section 5.2 of the Indenture. 
 (d) No waiver
under Section 5.13 of the Indenture shall be effective until the holders of a majority in aggregate liquidation amount of the Trust Preferred Securities shall have consented to such waiver. 
  

 24 

 (e) So long as any Junior Subordinated Notes are held by or on behalf of the Trust, the
Trustee will provide to the holders of the Trust Preferred Securities such notices as it will from time to time provide under Section 6.2 of the Indenture. In addition, the Trustee will provide to the holders of the Trust Preferred Securities
notice of any Event of Default or default that, with the giving of notice or lapse of time, or both, would become an Event of Default with respect to the Junior Subordinated Notes within 30 days after the actual knowledge of a Responsible Officer of
the Trustee of such Event of Default or default. 
 (f) For the avoidance of doubt, and without prejudice to any other
remedies that may be available under the Indenture to the Trustee, the Holders of the Junior Subordinated Notes or the holders of the Trust Preferred Securities, no breach by the Company of any covenant or obligation under the Indenture or the terms
of the Junior Subordinated Notes will be an Event of Default with respect to the Junior Subordinated Notes other than those specified as Events of Default in Section 2.9(a). 
 (g) The Company shall not enter into any supplemental indenture with the Trustee to add any additional event of default with respect to
the Junior Subordinated Notes without the consent of the Holders of at least a majority in aggregate principal amount of Outstanding Junior Subordinated Notes. 
 Section 2.10 Securities Registrar; Paying Agent. The Company appoints The Bank of New York Trust Company, N.A. as Securities Registrar and Paying Agent with respect to the Junior Subordinated Notes. 

Section 2.11 Limitation on Claims in the Event of Bankruptcy, Insolvency or Receivership. Each Holder, by such Holder’s acceptance of the
Junior Subordinated Notes, agrees that if a Bankruptcy Event of the Company shall occur before the redemption or repayment of such Junior Subordinated Notes, such Holder shall have no claim for, and thus no right to receive, any deferred interest
pursuant to Section 2.5 that has not been paid pursuant to Sections 2.5 and 2.7 to the extent the amount of such interest exceeds the sum of (x) interest (including Additional Interest) that relates to the earliest two years of the portion
of the Deferral Period for which interest has not been paid and (y) an amount equal to such Holder’s pro rata share of the excess, if any, of the Preferred Stock Issuance Cap over the aggregate amount of net proceeds from the sale of
Qualifying Preferred Stock and still outstanding Mandatorily Convertible Preferred Stock that the Company has applied to pay such deferred interest pursuant to Section 2.7. Each Holder of Junior Subordinated Notes shall be deemed to agree that,
to the extent the remaining claim exceeds the amount set forth in clause (x), the amount it receives in respect of such excess shall not exceed the amount it would have received the claim for such excess ranked equally with the interests of the
Holders, if any, of Qualifying Preferred Stock. 
 Section 2.12 Unconditional Right of Holders to Receive Principal, Premium and Interest;
Direct Action by Holders of Trust Preferred Securities. The following provisions shall apply to the Junior Subordinated Notes in lieu of Section 5.8 of the Indenture. 
 Notwithstanding any other provision in the Indenture, each Holder of the Junior Subordinated Notes shall have the right, which is absolute and
unconditional, to receive payment 

  

 25 

 
of the principal of (and premium, if any) and (subject to Section 3.7 of the Indenture) interest (including any Additional Interest) on the Junior
Subordinated Notes on the Final Repayment Date (or, in the case of redemption or repayment, on the Redemption Date or the Repayment Date, as the case may be) and to institute suit for the enforcement of any such payment, and such right shall not be
impaired without the consent of such Holder. So long as any Junior Subordinated Notes are held by or on behalf of the Trust, any holder of the Trust Preferred Securities issued by the Trust shall have the right, upon (i) the breach by the
Company of its obligations under Section 2.2(a) to issue Qualifying Capital Securities or Section 2.7 to issue Qualifying APM Securities, (ii) the occurrence of an Event of Default described in Section 2.9(a) or (iii) the
failure of the Company to make any payments on the Junior Subordinated Notes when due, to institute a suit directly against the Company (a) in the case of (i) above, to enforce such obligations or for such other remedies as may be
available and (b) in the case of (ii) or (iii) above, for enforcement of payment to such Holder of principal of (and premium, if any) and (subject to Section 3.7 of the Indenture) interest (including any Additional Interest) on
the Junior Subordinated Notes having a principal amount equal to the aggregate Liquidation Amount (as defined in the Trust Agreement) of such Trust Preferred Securities. This right of Direct Action cannot be amended in any manner that would impair
the rights of the holders of the Trust Preferred Securities without the consent of all such holders. 
 Section 2.13 Covenants.
Sections 10.7 and 10.8 of the Indenture shall not apply to the Junior Subordinated Notes, and in lieu of Section 10.8, the following provision shall apply to the Junior Subordinated Notes. 
 The Company covenants with each Holder of Junior Subordinated Notes that it will take no action that would be reasonably likely to cause the Trust to be
classified as other than a grantor trust for U.S. federal income tax purposes. 
 ARTICLE III 
 REPAYMENT OF JUNIOR SUBORDINATED NOTES 
 Section 3.1 Repayments. The Company will, not less than 30 nor more than 15 Business Days before each Repayment Date (unless a shorter notice will be satisfactory to the Trustee), notify the Trustee of the principal amount of Junior
Subordinated Notes to be repaid on such date pursuant to Section 2.2(a). 
 Section 3.2 Selection of the Junior Subordinated Notes to
be Repaid. If less than all the Junior Subordinated Notes are to be repaid on any Repayment Date (unless the Junior Subordinated Notes are issued in the form of a Global Security or held by the Property Trustee), the particular Junior
Subordinated Notes to be repaid will be selected not more than 60 days before such Repayment Date by the Trustee, from the Outstanding Junior Subordinated Notes not previously repaid or called for redemption, by lot or such other method as the
Trustee will deem fair and appropriate and which may provide for the selection for redemption of a portion of the principal amount of any Junior Subordinated Notes; provided that the portion of the principal amount of any Junior Subordinated
Notes not repaid will be in an authorized denomination (which will not be less than the minimum authorized denomination). 
  

 26 

 The Trustee will promptly notify the Company in writing of the Junior Subordinated Notes selected for
partial repayment and the principal amount thereof to be repaid. For all purposes hereof, unless the context otherwise requires, all provisions relating to the repayment of Junior Subordinated Notes will relate, in the case of any Junior
Subordinated Notes repaid or to be repaid only in part, to the portion of the principal amount of such Junior Subordinated Notes that has been or is to be repaid. Junior Subordinated Notes registered in the name of the Company, any Affiliate or any
Subsidiary thereof will not be included in the Junior Subordinated Notes selected for repayment except to the extent no other Junior Subordinated Notes remain or would remain outstanding. 
 Section 3.3 Notice of Repayment. Notice of repayment will be given by first-class mail, postage prepaid, mailed more than 15 Business Days and not
less than 30 Business Days before the Repayment Date, to each Holder of Junior Subordinated Notes to be repaid, at the address of such Holder as it appears in the Security Register. 
 Each notice of repayment will identify the Junior Subordinated Notes to be repaid (including CUSIP number, if a CUSIP number has been assigned to the
Junior Subordinated Notes) and will state: 
 (a) the Repayment Date; 
 (b) if less than all Outstanding Junior Subordinated Notes are to be repaid, the identification (and, in the case of partial repayment,
the respective principal amounts) of the particular Junior Subordinated Notes to be repaid; 
 (c) that on the Repayment Date,
the principal amount of the Junior Subordinated Notes to be repaid will become due and payable upon each such Junior Subordinated Notes or portion thereof, and that interest thereon, if any, will cease to accrue on and after said date; 

(d) whether any deferred interest shall remain outstanding on any Junior Subordinated Notes to be repaid, and if so, the amount of such
deferred interest and that Additional Interest shall continue to accrue on and after said date until paid; and 
 (e) the
place or places where such Junior Subordinated Notes are to be surrendered for payment of the principal amount thereof. 
 Notice of
repayment will be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company and will be irrevocable. The notice if mailed in the manner herein provided will be conclusively presumed to have
been duly given, whether or not the Holder receives such notice. In any case, a failure to give such notice by mail or any defect in the notice to the Holder of any Junior Subordinated Notes designated for repayment as a whole or in part will not
affect the validity of the proceedings for the repayment of any other Junior Subordinated Notes. 
 Section 3.4 Deposit of Repayment
Amount. Before 10:00 a.m. New York City time on the Repayment Date specified in the notice of repayment given as provided in Section 3.3, the Company will deposit with the Trustee or with one or more Paying Agents (or if the Company is

  

 27 

 
acting as its own Paying Agent, the Company will segregate and hold in trust as provided in Section 10.3 of the Indenture) an amount of money sufficient
to pay the principal amount of, and any accrued interest on, all the Junior Subordinated Notes that are to be repaid on that date. 
 Section
3.5 Repayment of Junior Subordinated Notes. If any notice of repayment has been given as provided in Section 3.3, the Junior Subordinated Notes or portion of the Junior Subordinated Notes with respect to which such notice has been given
will become due and payable on the date and at the place or places stated in such notice. On presentation and surrender of such Junior Subordinated Notes at a Place of Payment in said notice specified, the said securities or the specified portions
thereof will be paid by the Company at their principal amount, together with accrued interest to the Repayment Date; provided that, except in the case of a repayment in full of all Outstanding Junior Subordinated Notes, installments of
interest whose Stated Maturity is on or before the Repayment Date will be payable to the Holders of such Junior Subordinated Notes, or one or more Predecessor Securities, registered as such at the close of business on the relevant Regular Record
Dates according to their terms and the provisions of Section 3.8 of the Indenture. 
 Upon presentation of any Junior Subordinated Notes
repaid in part only, the Company will execute and the Trustee will authenticate and make available for delivery to the Holder thereof, at the expense of the Company, a new Junior Subordinated Notes, of authorized denominations, in aggregate
principal amount equal to the portion of the Junior Subordinated Notes not repaid and so presented and having the same Scheduled Maturity Date and other terms as such Junior Subordinated Notes. If a Global Security is so surrendered, such new Junior
Subordinated Notes will also be a new Global Security. 
 If any Junior Subordinated Notes required to be repaid will not be so repaid upon
surrender thereof, the principal of such Junior Subordinated Notes will, until paid, bear interest from the applicable Repayment Date at the rate prescribed therefore in the Junior Subordinated Notes. 
 ARTICLE IV 
 CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE 
 Section 4.1 Successor Corporation Substituted. 
 The following provision will apply to the Junior Subordinated Notes in lieu of Article 8.2 of the Indenture. 
 Upon any consolidation or merger by the Company with or into any other Person, or any conveyance, transfer or lease by the Company of its properties and
assets substantially as an entirety to any Person in accordance with Section 8.1 of the Indenture, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made
shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein; and thereafter, except in the case of a

  

 28 

 
lease of all or substantially all of its properties and assets, the Company shall be released from all liabilities and obligations under the Indenture and
the Junior Subordinated Notes. 
 ARTICLE V 
 FORM OF JUNIOR SUBORDINATED NOTES 
 Section 5.1 Form of Junior Subordinated Notes. The forms
under Sections 2.2 and 2.3 of the Indenture will not apply to the Junior Subordinated Notes and such forms are replaced with following forms. The Junior Subordinated Notes also will bear any legend required by Section 2.4 of the Indenture and
include the Trustee’s certificate of authentication in the form required by Section 2.5 of the Indenture: 
  

			
	No.	 	Principal Amount: $
	Issue Date:	 	

 THE CHARLES SCHWAB CORPORATION 
 FIXED TO FLOATING RATE JUNIOR SUBORDINATED NOTES DUE 2067 
 THE CHARLES SCHWAB
CORPORATION, a corporation organized and existing under the laws of Delaware (hereinafter called the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Schwab Capital Trust I, or registered assigns, the principal sum of Three Hundred Million Ten Thousand Dollars ($300,010,000) and all accrued and unpaid interest thereof on November 15, 2067, or if such day is not a Business
Day, the following Business Day (the “Final Repayment Date”). 
 The Company further promises to pay interest on said
principal sum from and including October 5, 2007, or from and including the most recent Interest Payment Date on which interest has been paid or duly provided for, until the principal thereof is paid or made available for payment. Interest
shall be payable (i) semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2007, (ii) quarterly in arrears on February 15, May 15, August 15 and November 15
of each year, beginning on February 15, 2018, and (iii) to the extent the Junior Subordinated Notes are not repaid on or after the Scheduled Maturity Date, monthly in arrears on the first day of each month, beginning on December 1,
2037 (each such date, an “Interest Payment Date”), at the rate of (i) 7.500% per annum, from and including October 5, 2007 to but excluding November 15, 2017, (ii) an annual rate equal to three-month LIBOR
plus 2.375%, from and including November 15, 2017 to but excluding November 15, 2037, and (iii) to the extent not repaid on or after the Scheduled Maturity Date, an annual rate equal to one-month LIBOR plus 3.375% to but excluding the
date the Junior Subordinated Notes are repaid in full (computed on the basis of (i) a 360-day year comprised of twelve 30-day months with respect to any Interest Period ending on or prior to November 15, 2017 and (ii) a 360-day year
and the actual number of days elapsed with respect to any other Interest Period), plus Additional Interest, if any; provided, however, if any Interest Payment Date described in clauses (ii) or (iii) of this paragraph falls on a day
that is not a Business Day, the applicable Interest Payment Date shall instead occur on the immediately succeeding Business Day. Accrued interest that is not 

  

 29 

 
paid on the applicable Interest Payment Date (after giving effect to the adjustments described in the last sentence of Section 2.4(b) of the
Supplemental Indenture), including interest deferred pursuant to Section 2.5 of the Supplemental Indenture, will bear Additional Interest, to the extent permitted by law, at the then-applicable rate described in the second sentence of this
paragraph, from the relevant Interest Payment Date, compounded on each subsequent Interest Payment Date. If any Interest Payment Date on or prior to November 15, 2017 occurs on a day that is not a Business Day, the payment of interest for such
Interest Payment Date shall be made (or such interest shall be made available for payment) on the next succeeding Business Day with the same force and effect as if such payment were made on the relevant Interest Payment Date. A “Business
Day” will mean any day other than a Saturday, Sunday, or any other day on which banking institutions and trust companies in New York, New York, are permitted or required by any applicable law to close, or on or after November 15, 2017,
a day that is not a London Banking Day. A “London Banking Day” means any day on which commercial banks are open for general business (including dealings in deposits in U.S. dollars) in London, England. The interest installment so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest installment, which shall be one Business Day prior to such Distribution Date. Any such interest installment not so punctually paid or duly provided for (other than interest deferred in accordance with the
next paragraph) will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof will be given to Holders of Securities of this series not less than 10 days before such Special Record Date, or be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture. 
 The Company has the right at any time or from time to time during the term of this Security to defer payment of interest on this Security for one or more
consecutive Interest Periods up to 10 years; provided, however, that no Deferral Period will extend beyond the Final Repayment Date or the earlier redemption of any Securities of this series. Upon the payment of all deferred interest then
due, the Company may elect to begin a new Deferral Period, subject to the above requirements. Except as provided in Section 2.7 of the Supplemental Indenture, no interest will be due and payable during a Deferral Period except at the end
thereof. 
 So long as any Securities remain outstanding, if the Company has given notice of its election to defer interest payments on the
Securities but the related Deferral Period has not yet commenced or a Deferral Period is continuing, the Company will be subject to Section 2.6 of the Supplemental Indenture. 
 The Company will give written notice of its election to begin or extend any Deferral Period in accordance with Section 2.5(d) of the Supplemental
Indenture. 
 Payment of the principal of and interest on this Security will be made at the office or agency of the Company maintained for
that purpose in the United States, in such coin or 

  

 30 

 
currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at
the option of the Company payment of interest may be made (i) by check mailed to the address of the Person entitled thereto as such address will appear in the Securities Register or (ii) by wire transfer in immediately available funds at
the bank account number as may be designated by the Person entitled thereto as specified in the Securities Register in writing not less than ten days before the relevant Interest Payment Date. 
 The indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Debt, and this Security is issued subject to the provisions of the Indenture with respect thereto. Each Holder of this Security, by accepting the same, (a) agrees to and will be bound by such provisions,
(b) authorizes and directs the Trustee on his behalf to take such actions as may be necessary or appropriate to effectuate the subordination so provided and (c) appoints the Trustee his attorney-in-fact for any and all such purposes. Each
Holder hereof, by his acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions. 
 Reference is hereby made to the further provisions of this Security set forth on the
reverse hereof, which further provisions will for all purposes have the same effect as if set forth at this place. 
 Unless the certificate
of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security will not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
  

			
	 THE CHARLES SCHWAB CORPORATION

		
	 By:
	 	  

 Attest: 
 Secretary or Assistant Secretary 
 Trustee’s Certificate of Authentication 
 This is one of the Securities of the series designated therein referred to in the Indenture referred to hereinafter. 
  

	
	 THE BANK OF NEW YORK TRUST
       COMPANY, N.A., as Trustee

  

 31 

			
		
	By:	 	  

		 	Authorized Officer
		
	Dated:	 	  

 (FORM OF REVERSE OF JUNIOR SUBORDINATED NOTES) 
 This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued
in one or more series under the Junior Subordinated Indenture, dated as of October 5, 2007 (herein called the “Base Indenture”), between the Company and The Bank of New York Trust Company, N.A., as trustee (the
“Trustee”), as amended and supplemented by the Supplemental Indenture, dated as of October 5, 2007, between the Company and the Trustee (the “Supplemental Indenture”, and together with the Base Indenture, the
“Indenture”), to which Indenture and all other indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Trustee, the Company
and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. By the terms of the Indenture, the Securities are issuable in series that may vary as to amount, date of maturity, rate of
interest, rank and in any other respect provided in the Indenture. 
 All terms used in this Security that are defined in the Indenture or in
the Amended and Restated Trust Agreement, dated as of October 5, 2007, as amended (the “Trust Agreement”), for Schwab Capital I among The Charles Schwab Corporation, as Sponsor, The Bank of New York Trust Company, N.A., as the
Property Trustee, The Bank of New York (Delaware) as the Delaware Trustee, and the Administrative Trustees, will have the meanings assigned to them in the Indenture or the Trust Agreement, as the case may be. 
 This Security shall be redeemable, at the Company’s option, at any time, including on or after the Scheduled Maturity Date. The Company may redeem
this Security (i) in whole or in part on November 15, 2017 (or if such date is not a Business Day, on the immediately following Business Day); (ii) in whole but not in part at any time within 90 days after the occurrence of a Capital
Treatment Event or Investment Company Event; (iii) in whole but not in part at any time after November 15, 2017 and within 90 days after the occurrence of a Tax Event or Rating Agency Event; or (iv) in whole or in part on or after
November 15, 2037, including on or after the Scheduled Maturity Date, in each case at a redemption price equal to 100% of the principal amount of this Security to be redeemed plus accrued and unpaid interest to the Redemption Date. In all other
cases, the redemption price will equal the applicable Make-Whole Redemption Price. Securities of this series shall be subject to partial redemption only in the amount of $1,000 or integral multiples thereof. 
 No sinking fund is provided for the Securities. 
 The Indenture contains provisions for satisfaction and discharge of the entire indebtedness of this Security upon compliance by the Company with certain conditions set forth in the Indenture. 
  

 32 

 The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee at any
time to enter into a supplemental indenture or indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the Securities, with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities to be affected by such supplemental indenture. The Indenture also contains provisions permitting Holders of specified percentages in principal amount of the Securities at the time Outstanding, on behalf
of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security will be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security. 
 As provided in and subject to the provisions of the Indenture, if an Event of Default with respect to the
Securities at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities may declare the entire principal amount and all accrued but
unpaid interest on all the Securities to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders); provided that, in the case of the Securities issued to and held by Schwab Capital I, or
any trustee thereof or agent therefor, if upon an Event of Default, the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities fails to declare the entire principal and all accrued but unpaid interest on all
the Securities to be immediately due and payable, the holders of at least 25% in aggregate Liquidation Amount of the Trust Preferred Securities then outstanding shall have such right by a notice in writing to the Company and the Trustee; and upon
any such declaration the principal amount of and the accrued but unpaid interest (including any Additional Interest); and on all the Securities will become immediately due and payable; provided that the payment of principal and interest
(including any Additional Interest) on such Securities will remain subordinated to the extent provided in Article XIII of the Base Indenture. 
 So long as any Securities are held by or on behalf of Schwab Capital I, any holder of the Trust Preferred Securities issued by the Schwab Capital I shall have the right, upon (i) the breach by the Company of its obligations under
Section 2.2(a) of the Supplemental Indenture to issue Qualifying Capital Securities or Section 2.7 of the Supplemental Indenture to issue Qualifying APM Securities or (ii) the occurrence of an Event of Default described in
Section 2.9(a) of the Supplemental Indenture, to institute a suit directly against the Company (a) in the case of (i) above, to enforce such obligations or for such other remedies as may be available and (b) in the case of
(ii) above, for enforcement of payment to such holder of principal of (premium, if any) and (subject to Section 3.7 of the Base Indenture) interest (including any Additional Interest) on the Securities having a principal amount equal to
the aggregate Liquidation Amount (as defined in the Trust Agreement) of such Trust Preferred Securities. 
 The Holder of this Security, by
such Holder’s acceptance hereof, agrees that if a Bankruptcy Event of the Company shall occur before the redemption or repayment of such Security, such Holder shall have no claim for, and thus no right to receive, any deferred interest pursuant
to Section 2.5 of the Supplemental Indenture that has not been paid pursuant to Sections 

  

 33 

 
2.5 and 2.7 of the Supplemental Indenture to the extent the amount of such interest exceeds the sum of (x) interest (including Additional Interest) that
relates to the earliest two years of the portion of the Deferral Period for which interest has not been paid and (y) an amount equal to such Holder’s pro rata share of the excess, if any, of the Preferred Stock Issuance Cap over the
aggregate amount of net proceeds from the sale of Qualifying Preferred Stock and still outstanding Mandatorily Convertible Preferred Stock that the Company has applied to pay such deferred interest pursuant to the Section 2.7 of the
Supplemental Indenture; provided that such Holder shall be deemed to agree that, to the extent the remaining claim exceeds the amount set forth in clause (x), the amount it receives in respect of such excess shall not exceed the amount it
would have received the claim for such excess ranked equally with the interests of the Holders, if any, of Qualifying Preferred Stock. 
 No
reference herein to the Indenture and no provision of this Security or of the Indenture will alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Security at the times,
place and rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Securities Register, upon surrender of this Security for registration of transfer at the office or agency of the Company maintained under Section 10.2 of the Base Indenture duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new
Securities, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. No service charge will be made for any such registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Before due presentment
of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee will treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent will be affected by notice to the contrary. 
 The Securities are issuable
only in registered form without coupons in minimum denominations of $1,000 and integral multiples thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities are exchangeable for a like aggregate principal
amount of Securities of a different authorized denomination, as requested by the Holder surrendering the same. 
 The Company and, by its
acceptance of this Security or a beneficial interest therein, the Holder of, and any Person that acquires a beneficial interest in, this Security agree to treat for United States federal income tax purposes (i) the Securities as indebtedness of
the Company, and (ii) the stated interest on the Securities as ordinary interest income that is includible in the Holder’s or beneficial owner’s gross income at the time the interest is paid or accrued in accordance with the
Holder’s or beneficial owner’s regular method of tax accounting, and otherwise to treat the Securities as described in the Prospectus Supplement. 
  

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 The Indenture and this Security will be governed by, and construed in accordance with, the laws of the State of
California. 
 This is one of the Securities referred to in the within mentioned Indenture. 
 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned assigns and
transfers this Security to: 
  

	
	  

	
	  

	
	  

 (Insert assignee’s social security or tax identification number) 
  

	
	  

	
	  

	
	  

 (Insert address and zip code of assignee) 
 agent to transfer this Security on the books of the Securities Registrar. The agent may substitute another to act for him or her. 
  

			
	Dated:	 	Signature:
		
		 	Signature Guarantee:

 (Sign exactly as your name appears on the other side of this Security) 
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Securities Registrar, which
requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Securities Registrar in addition
to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
 ARTICLE VI 
 ORIGINAL ISSUE OF JUNIOR SUBORDINATED NOTES 
 Section 6.1 Original Issue of Junior Subordinated Notes. Junior Subordinated Notes in the aggregate principal amount of $300,010,000 may, upon execution of this Supplemental Indenture, be executed by the Company and delivered to the
Trustee or an Authenticating Agent for authentication, and the Trustee or an Authenticating Agent will thereupon authenticate and 

  

 35 

 
deliver said Junior Subordinated Notes in accordance with a Company Order. Subject to the maximum aggregate principal amount of Junior Subordinated Notes
specified in Section 2.1, from time to time after the execution of this Supplemental Indenture, additional Junior Subordinated Notes having the same terms (provided that such Junior Subordinated Notes, if issued on or after the first
Interest Payment Date, shall bear interest from the most recent Interest Payment Date) may be executed by the Company and delivered to the Trustee or an Authenticating Agent for authentication, and the Trustee or an Authenticating Agent will
thereupon authenticate and deliver said Junior Subordinated Notes in accordance with a Company Order. Any such Junior Subordinated Notes shall become part of the same series as the Junior Subordinated Notes originally issued hereunder. 

Section 6.2 Calculation of Original Issue Discount. If during any calendar year any original issue discount shall have accrued on the Junior
Subordinated Notes, the Company will file with each Paying Agent (including the Trustee if it is a Paying Agent) promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily
rates and accrual periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as
amended from time to time. Neither the Company nor the Trust would make actual payments on the Junior Subordinated Notes, or on the Trust Preferred Securities, as the case may be, during a Deferral Period. 
 ARTICLE VII 
 SUBORDINATION 

Section 7.1 Senior Debt. (a) The subordination provisions of Article XIII of the Indenture will apply to the Junior Subordinated Notes,
except that for the purposes of the Junior Subordinated Notes (but not for the purposes of any other Securities unless specifically set forth in the terms of such Securities), the definition of “Senior Debt” will not apply to the Junior
Subordinated Notes and such definition is replaced with: “Senior Debt” means the principal, premium, if any, unpaid interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating
to the Company whether or not a claim for post-filing interest is allowed in such proceeding), fees, charges, expenses, reimbursement and indemnification obligations, and all other amounts payable under or in respect of the types of debt generally
described below: 
 (i) debt for money the Company has borrowed; 
 (ii) debt evidenced by a bond, note, debt security, or similar instrument (including purchase money obligations) whether or not given in
connection with the acquisition of any business, property or assets, whether by purchase, merger, consolidation or otherwise, but not any account payable or other obligation created or assumed in the ordinary course of business in connection with
the obtaining of materials or services; 
  

 36 

 (iii) debt which is a direct or indirect obligation which arises as a result of
banker’s acceptances or bank letters of credit issued to secure the Company’s obligations; 
 (iv) any debt of
others described in the preceding clauses (i) through (iii) hereof which the Company has guaranteed or for which the Company is otherwise liable; 
 (v) debt secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on the Company’s property; 
 (vi) the Company’s obligation as lessee under any lease of property which is reflected on the Company’s balance sheet as a
capitalized lease; 
 (vii) any deferral, amendment, renewal, extension, supplement or refunding of any liability of the kind
described in any of the preceding clauses (i) through (vi) hereof; and 
 (viii) the Company’s obligations to
make payments under the terms of financial instruments such as securities contracts, interest rate swaps, foreign currency exchange contracts, derivative instruments and other similar financial instruments. 
 Senior Debt will exclude the following: 
 (1) any indebtedness or guarantee that is by its terms subordinated to, or ranks pari passu with, the Junior Subordinated Notes and, so long as the Company is subject to the supervision and regulation of the Federal Reserve, the
issuance of which, in the case of this clause (1) only, (x) has received the concurrence or approval of the staff of the Federal Reserve or (y) does not at the time of issuance prevent the Junior Subordinated Notes from qualifying for
Tier 1 capital treatment (irrespective of any limits on the amount of the Company’s Tier 1 capital) under the applicable capital adequacy guidelines, regulations, policies or published interpretations of the Federal Reserve; and 
 (2) trade accounts payable and other accrued liabilities arising in the ordinary course of business (other than any liabilities described in clauses
(i) through (viii) above). 
 (b) Notwithstanding the foregoing or any other provision of the Indenture or of this Supplemental
Indenture, provided that the Company is not subject to a bankruptcy, insolvency, liquidation or similar proceeding, the priority of the Junior Subordinated Notes in right of payment as to Parity Securities is subject to the provisions of
Section 2.6 and the Company will be permitted to pay interest or principal on Parity Securities in accordance with Section 2.6. 
  

 37 

 Section 7.2 Compliance with Federal Reserve Rules. The Company will not incur any additional
indebtedness for borrowed money that ranks equally with or junior to the Junior Subordinated Notes (if then subject to Article XIII of the Indenture), except in compliance with applicable regulations and guidelines of the Federal Reserve. This
Section 7.2 is applicable only so long as the Company is subject to the supervision and regulation of the Federal Reserve. 
 ARTICLE
VIII 
 SUPPLEMENTAL INDENTURES 
 Section 8.1 Supplemental Indentures Without Consent of Holders. This Section 8.1 and Section 8.2 shall apply to the Junior Subordinated Notes in lieu of Article IX of the Indenture. 
 Without the consent of any Holders of the Junior Subordinated Notes, the Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more supplemental indentures, in form satisfactory to the Trustee, for any of the following purposes: 
 (a) to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company in the Indenture and in the Junior Subordinated Notes; or 
 (b) to transfer any property to the Trustee; or 
 (c) to add to the covenants of the Company for the benefit of the Holders of the Junior Subordinated Notes or to surrender any right or
power conferred in the Indenture upon the Company; or 
 (d) to add any additional Events of Default for the benefit of the
Holders of Junior Subordinated Notes; or 
 (e) to add to or change any of the provisions of the Indenture to such extent as
shall be necessary to permit or facilitate the issuance of additional Junior Subordinated Notes in bearer form, registrable or not registrable as to principal, and with or without interest coupons, or to permit or facilitate the issuance of Junior
Subordinated Notes in uncertificated form; or 
 (f) to add to or change any of the provisions of the Indenture to such extent
as shall be necessary to provide any guarantee of the Junior Subordinated Notes; or 
 (g) to add to, change, or eliminate any
of the provisions of the Indenture in respect the Junior Subordinated Notes, provided that any such addition, change, or elimination does not apply to the Junior Subordinated Notes; or 
 (h) to cure any ambiguity, to correct or supplement any provision in the Indenture that may be defective or inconsistent with any other
provision in the Indenture, provided that such action pursuant to this clause (h) shall not adversely affect the interests of the Holders of the Junior Subordinated Notes in any material respect or if the Junior 

  

 38 

 
Subordinated Notes are beneficially owned by the Trust and for so long as any of the Trust Preferred Securities shall remain outstanding, the holders of the
Trust Preferred Securities; or 
 (i) to evidence and provide for the acceptance of appointment under the Indenture by a
successor Trustee with respect to the Junior Subordinated Notes; or 
 (j) to comply with any requirements of the Commission
in connection with qualifying the Indenture under the Trust Indenture Act; or 
 (k) to enter into a supplemental indenture
for the purpose of conforming the terms of the Indenture and/or this Supplemental Indenture and the Junior Subordinated Notes to the description of the Junior Subordinated Notes contained in the Prospectus Supplement. 
 Section 8.2 Supplemental Indentures With Consent of Holders 
 With the consent of the Holders of not less than a majority in principal amount of the Junior Subordinated Notes affected by such supplemental indenture, by Act of such Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into a supplemental indenture or indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the
Indenture or of modifying in any manner the rights of the Holders of Junior Subordinated Notes under the Indenture; provided, however, that no such supplemental indenture entered into pursuant to this Section 8.2 shall, without the consent of
each Holder of Outstanding Junior Subordinated Notes affected by such supplemental indenture, 
 (a) change the Stated
Maturity of any payment of principal of, or interest (including any Additional Interest) on, the Junior Subordinated Notes, or reduce its principal amount, premium or interest on the Junior Subordinated Notes, or change the manner of calculating any
payments due on the Junior Subordinated Notes, or change any Place of Payment where, or the coin or currency unit in which, any principal, premium or interest on the Junior Subordinated Notes is payable, or impair the Holder’s right to
institute suit for the enforcement of any such payment on or after its Stated Maturity (or, in the case of redemption, on or after the Redemption Date), or modify the provisions of this Indenture with respect to the subordination of the Junior
Subordinated Notes in a manner adverse to the Holders, or reduce the requirements contained in the Indenture for quorum or voting, or 
 (b) reduce the percentage in principal amount of the Outstanding Junior Subordinated Notes, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for
any waiver of compliance with the provisions of or defaults under this Indenture and their consequences provided for in this Indenture, or 
 (c) modify any of the provisions of this Section. 
  

 39 

 If the consent of each Holder of Outstanding Junior Subordinated Notes is required for such modification
or waiver, such modification or waiver shall not be effective until each holder of the Trust Preferred Securities shall have consented to such modification or waiver. 
 The Holders of at least a majority of the aggregate principal amount of the Outstanding Junior Subordinated Notes may, on behalf of all Holders of the Outstanding Junior Subordinated Notes, waive compliance by the
Company with certain covenants or conditions contained in the Indenture. 
 So long as any of the Trust Preferred Securities remains
outstanding, no amendment shall be made to the Indenture and no supplemental indenture shall be entered into that adversely affects the holders of the Trust Preferred Securities in any material respect, and no termination of the Indenture shall
occur, and no waiver of any Event of Default or compliance with any covenant under the Indenture shall be effective, without the prior consent of the holders of at least a majority of the aggregate liquidation amount of such outstanding Trust
Preferred Securities. 
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve the substance of such supplemental indenture. 
 Section 8.3
Modifications 
 Without the consent of any Holders of the Junior Subordinated Notes or the Trust Preferred Securities, the Company,
when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may amend the Supplemental Indenture, in form satisfactory to the Trustee, for either of the following purposes: 
 (a) to eliminate Common Stock and/or Mandatorily Convertible Preferred Stock from the definition of “Qualifying APM
Securities” if, after the issue date of the Trust Preferred Securities, an accounting standard or interpretive guidance of an existing accounting standard issued by an organization or regulator that has responsibility for establishing or
interpreting accounting standards in the United States becomes effective such that there is more than an insubstantial risk that the failure to amend such definition would result in a reduction in the Company’s earnings per share as calculated
in accordance with generally accepted accounting principles in the United States; or 
 (b) to increase the Share Cap Amount
in accordance with Section 2.7(a)(iii). 
 The Company will promptly give notice to Holders, in the manner provided for in the
Indenture, of any amendment to the definition of “Qualifying APM Securities” eliminating Common Stock and/or Mandatorily Convertible Preferred Stock pursuant to Section 8.3(a). 
  

 40 

 ARTICLE IX 
 MISCELLANEOUS 
 Section 9.1 Effectiveness. This Supplemental Indenture will become effective
upon its execution and delivery. 
 Section 9.2 Successors and Assigns. All covenants and agreements in the Indenture, as supplemented
and amended by this Supplemental Indenture, by the Company will bind its successors and assigns, whether so expressed or not. 
 Section 9.3
Further Assurances. The Company will, at its own cost and expense, execute and deliver any documents or agreements, and take any other actions that the Trustee or its counsel may from time to time request in order to assure the Trustee of the
benefits of the rights granted to the Trustee under the Indenture, as supplemented and amended by this Supplemental Indenture. 
 Section 9.4
Effect of Recitals. The recitals contained herein and in the Junior Subordinated Notes, except the Trustee’s certificates of authentication, will be taken as the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or of the Junior Subordinated Notes. Neither the Trustee nor any Authenticating Agent will
be accountable for the use or application by the Company of the Junior Subordinated Notes or the proceeds thereof. 
 Section 9.5
Ratification of Indenture. The Indenture as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture will be deemed part of the Indenture in the manner and to the extent herein
and therein provided. 
 Section 9.6 Governing Law. This Supplemental Indenture and the Junior Subordinated Notes will be governed
by, and construed in accordance with, the laws of the State of California. 
 Section 9.7 Force Majeure. In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services affecting the
banking industry generally; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 
 * * * * 
  

 41 

 This instrument may be executed in any number of counterparts, each of which so executed will be deemed
to be an original, but all such counterparts will together constitute but one and the same instrument. 
  

 42 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of
the day and year first above written. 
  

			
	THE CHARLES SCHWAB CORPORATION
		
	By:	 	 /s/ Carrie Dolan

	Name:	 	Carrie L. Dolan
	Title:	 	Senior Vice President and Treasurer
	
	 THE BANK OF NEW YORK TRUST
       COMPANY, N.A., as Trustee

		
	By:	 	 /s/ Melonee Young

	Name:	 	Melonee Young
	Title:	 	Vice President

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