Document:

Exhibit  10.214

                         THE CHARLES SCHWAB CORPORATION
                            1992 STOCK INCENTIVE PLAN
           (Restated to include Amendments through December 13, 2000)

Article 1.     Introduction.

     The Plan was  adopted  by the Board of  Directors  on March 26,  1992.  The
purpose of the Plan is to promote the  long-term  success of the Company and the
creation  of  incremental  stockholder  value  by (a)  encouraging  Non-Employee
Directors and Key Employees to focus on long-range  objectives,  (b) encouraging
the  attraction and retention of  Non-Employee  Directors and Key Employees with
exceptional  qualifications  and  (c)  linking  Non-Employee  Directors  and Key
Employees  directly to  stockholder  interests.  The Plan seeks to achieve  this
purpose by providing  for Awards in the form of Restricted  Shares,  Performance
Share  Awards or  Options,  which may  constitute  incentive  stock  options  or
nonstatutory  stock  options.  The Plan shall be governed  by, and  construed in
accordance with, the laws of the State of Delaware.

Article 2.     Administration.

     2.1       The Committee.  The Plan shall be administered  by the Committee.
The Committee shall consist of two or more Non-Employee Directors,  who shall be
appointed by the Board.

     2.2       Committee  Responsibilities.   The  Committee  shall  select  the
Key  Employees who are to receive  Awards under the Plan,  determine the amount,
vesting  requirements  and other  conditions  of such Awards,  may interpret the
Plan,  and make all other  decisions  relating to the operation of the Plan. The
Committee  may  adopt  such  rules  or  guidelines  as it deems  appropriate  to
implement the Plan. The Committee's determinations under the Plan shall be final
and binding on all persons.

Article 3.     Limitations on Awards.

     The aggregate  number of Restricted  Shares,  Performance  Share Awards and
Options  awarded  under the Plan shall not exceed  29,150,000  (including  those
shares awarded prior to the amendment of the Plan).  If any  Restricted  Shares,
Performance  Share Awards or Options are forfeited,  or if any Performance Share
Awards terminate for any other reason without the associated Common Shares being
issued, or if any Options terminate for any other reason before being exercised,
then such  Restricted  Shares,  Performance  Share Awards or Options shall again
become available for Awards under the Plan.

     Subject to the overall limit on the aggregate  shares set forth above,  the
following limitations shall apply: (a) The maximum number of Common Shares which
may be  granted  subject to an Option to any one  Participant  in any one fiscal
year shall be  2,250,000;  and (b) The maximum  number of  Restricted  Shares or
Performance  Share Awards which may be granted to any one Participant in any one
fiscal  year  shall be  900,000.  The  limitations  set  forth in the  preceding
sentence shall be subject to adjustment pursuant to Article 10; and

     The  limitations  of this  Article 3 shall each be  subject  to  adjustment
pursuant to Article  10. Any Common  Shares  issued  pursuant to the Plan may be
authorized but unissued shares or treasury shares.

Article 4.     Eligibility.

     4.1       General  Rule.  Key Employees and Non-Employee Directors shall be
eligible for designation as Participants by the Committee.

     4.2       Non-Employee  Directors. In addition to any  awards  pursuant  to
Section 4.1,  Non-Employee  Directors shall be entitled to receive the automatic
NSOs described in this Section 4.2.

          (a)  Each  Non-Employee  Director  shall  receive a  Non-Officer Stock
          Option  covering  3,500 Common Shares for each Award Year with respect
          to which he or she serves as a Non-Employee Director on the grant date
          described in subsection (b) below; provided that the Non-Officer Stock
          Option shall cover 2,500 shares if the Exercise Price determined as of
          the grant date, is $35 or more;

          (b)  The NSO for a  particular  Award  Year  shall be  granted to each
          Non-Employee  Director as of May 15 of each Award Year,  and if May 15
          is not a business  day,  then the grant shall be made on and as of the
          next succeeding business day;

          (c)  Each NSO  shall be  exercisable  in full at all times  during its
          term;

          (d)  The term of each NSO shall be 10 years;  provided,  however, that
          any  unexercised  NSO shall expire on the earlier of the date 10 years
          after the date of grant or three (3)  months  following  the date that
          the Optionee  ceases to be a  Non-Employee  Director or a Key Employee
          for any reason other than death or disability.  If an Optionee  ceases
          to be a  Non-Employee  Director or Key Employee on account of death or
          disability,  any  unexercised  NSO shall  expire on the earlier of the
          date 10 years  after  the date of grant or one year  after the date of
          death or disability of such Director; and

          (e)  The  Exercise  Price  under  each  NSO shall be equal to the Fair
          Market  Value on the date of grant and shall be  payable in any of the
          forms described in Article 6.

     4.3       Ten-Percent Stockholders. A Key Employee who owns  more  than  10
percent of the total combined  voting power of all classes of outstanding  stock
of the Company or any of its Subsidiaries shall not be eligible for the grant of
an ISO unless (a) the  Exercise  price under such ISO is at least 110 percent of
the Fair Market Value of a Common Share on the date of grant and (b) such ISO by
its terms is not exercisable after the expiration of five years from the date of
grant.

     4.4       Attribution  Rules.  For  purposes of Section 4.3, in determining
stock ownership, a Key Employee shall be deemed to own the stock owned, directly
or  indirectly,  by or for his or her brothers,  sisters,  spouse,  ancestors or
lineal  descendants.   Stock  owned,  directly  or  indirectly,   by  or  for  a
corporation,   partnership,  estate  or  trust  shall  be  deemed  to  be  owned
proportionately  by or for its stockholders,  partners or  beneficiaries.  Stock
with respect to which the Key Employee holds an option shall not be counted.

     4.5       Outstanding  Stock.  For  purposes  of  Section 4.3, "outstanding
stock" shall include all stock actually issued and outstanding immediately after
the grant of the ISO to the Key Employee.  "Outstanding stock" shall not include
treasury shares or shares authorized for issuance under outstanding options held
by the Key Employee or by any other person.

     4.6       Options  Issued  To  Non-Employee  Directors  In  Lieu   of   Fee
Deferrals.  In  addition  to any  awards  pursuant  to  Sections  4.1 and 4.2, a
Non-Employee  Director  who elects to defer the  receipt of amounts  pursuant to
Section 5.1 of The Charles Schwab Corporation  Directors' Deferred  Compensation
Plan (the "Directors  Deferred  Compensation  Plan") and elects to receive stock
options in lieu of a Deferral  Account balance pursuant to Section 5.4(2) of the
Directors  Deferred  Compensation  Plan, shall be entitled to receive a grant of
NSOs  hereunder  on  the  date  the  amounts  would  have  been  payable  to the
Non-Employee  Director if the  Non-Employee  Director had not made such deferral
election.  Any NSOs issued  pursuant to this Section shall be issued pursuant to
the terms set forth in subsections (c), (d) and (e) of Section 4.2 hereof.

     4.7       Performance  Shares Issued To Non-Employee  Directors Pursuant to
Fee  Deferrals.  In addition to any awards  pursuant to Sections  4.1 and 4.2, a
Non-Employee  Director  who elects to defer the  receipt of amounts  pursuant to
Section 5.1 of The Directors'  Deferred  Compensation Plan and elects to receive
payment  in  Shares  pursuant  to  Section  5.4(1)  of  the  Directors  Deferred
Compensation  Plan,  shall be entitled to receive a grant of Performance  Shares
hereunder on the date the amounts  would have been  payable to the  Non-Employee
Director if the Non-Employee  Director had not made such deferral election.  For
purposes of this  section,  the term  Non-Employee  Director  shall also include
non-employee  directors  of  any  Subsidiary,  if  the  Committee  has  approved
participation in the Directors Deferred  Compensation Plan for such Subsidiary's
non-employee directors.

Article 5.     Options.

     5.1       Stock Option Agreement. Each  grant of an Option under  the  Plan
shall be  evidenced  by a Stock  Option  Agreement  between the Optionee and the
Company.  Such Option shall be subject to all applicable terms and conditions of
the Plan,  and may be subject to any other  terms and  conditions  which are not
inconsistent  with  the Plan and  which  the  Committee  deems  appropriate  for
inclusion in a Stock  Option  Agreement.  The  provisions  of the various  Stock
Option  Agreements  entered  into  under  the Plan  need not be  identical.  The
Committee  may designate all or any part of an Option as an ISO (or, in the case
of a Key Employee who is subject to the tax laws of a foreign  jurisdiction,  as
an option  qualifying for favorable tax treatment under the laws of such foreign
jurisdiction), except for Options granted to Non-Employee Directors.

     5.2       Options  Nontransferability.  No  Option  granted  under the Plan
shall be  transferable by the Optionee other than by will or the laws of descent
and distribution. An Option may be exercised during the lifetime of the Optionee
only by him or her. No Option or interest therein may be transferred,  assigned,
pledged or hypothecated  by the Optionee during his or her lifetime,  whether by
operation of law or otherwise,  or be made subject to  execution,  attachment or
similar process.

     5.3       Number of Shares.  Each  Stock Option Agreement shall specify the
number of  Common  Shares  subject  to the  Option  and  shall  provide  for the
adjustment  of such number in  accordance  with  Article  10. Each Stock  Option
Agreement shall also specify whether the Option is an ISO or an NSO.

     5.4       Exercise Price. Each  Stock  Option  Agreement  shall specify the
Exercise  Price.  The Exercise  Price under an Option shall not be less than 100
percent of the Fair Market Value of a Common Share on the date of grant,  except
as otherwise  provided in Section 4.3.  Subject to the preceding  sentence,  the
Exercise  Price  under any Option  shall be  determined  by the  Committee.  The
Exercise Price shall be payable in accordance with Article 6.

     5.5       Exercisability  and  Term.  Each  Stock  Option  Agreement  shall
specify  the  date  when  all or any  installment  of the  Option  is to  become
exercisable.  The Stock  Option  Agreement  shall also  specify  the term of the
Option.  The term of an ISO shall in no event  exceed 10 years  from the date of
grant,  and  Section 4.3 may require a shorter  term.  Subject to the  preceding
sentence,  the Committee shall determine when all or any part of an Option is to
become  exercisable  and when  such  Option  is to  expire;  provided  that,  in
appropriate  cases,  the Company shall have the discretion to extend the term of
an Option or the time within which,  following  termination  of  employment,  an
Option may be exercised,  or to accelerate the  exercisability  of an Option.  A
Stock Option  Agreement may provide for expiration  prior to the end of its term
in the event of the  termination of the Optionee's  employment and shall provide
for the  suspension  of vesting  when an employee is on a leave of absence for a
period in excess  of six  months in  appropriate  cases,  as  determined  by the
Company;  provided  that,  except  to  the  extent  otherwise  specified  by the
Committee  at the time of grant,  (i) the  exercisability  of  Options  shall be
accelerated  in the event of the  Participant's  death or Disability and (ii) in
the case of Retirement,  the exercisability of all outstanding  Options shall be
accelerated,  other than any Options that had been  granted  within two years of
the date of the Optionee's  Retirement.  Except as provided in Section 4.2, NSOs
may also be awarded in combination with Restricted Shares, and such an Award may
provide  that the NSOs will not be  exercisable  unless the  related  Restricted
Shares are  forfeited.  In addition,  NSOs  granted  under this Section 5 may be
granted  subject to forfeiture  provisions  which provide for  forfeiture of the
Option upon the exercise of tandem awards, the terms of which are established in
other programs of the Company.

     5.6       Limitation  on  Amount  of ISOs.  The aggregate fair market value
(determined at the time the ISO is granted) of the Common Shares with respect to
which  ISOs are  exercisable  for the  first  time by the  Optionee  during  any
calendar year (under all incentive  stock option plans of the Company) shall not
exceed $100,000;  provided,  however, that all or any portion of an Option which
cannot be exercised as an ISO because of such limitation  shall be treated as an
NSO.

     5.7       Effect  of  Change  in  Control.  The  Committee ( in   its  sole
discretion) may determine,  at the time of granting an Option,  that such Option
shall become fully  exercisable  as to all Common Shares  subject to such Option
immediately preceding any Change in Control with respect to the Company.

     5.8       Restrictions  on  Transfer of  Common  Shares.  Any Common Shares
issued upon  exercise of an Option shall be subject to such  special  forfeiture
conditions,  rights of  repurchase,  rights of first refusal and other  transfer
restrictions  as the Committee may  determine.  Such  restrictions  shall be set
forth in the  applicable  Stock Option  Agreement and shall apply in addition to
any general restrictions that may apply to all holders of Common Shares.

     5.9       Authorization of Replacement Options. Concurrently with the grant
of any Option to a  Participant  (other  than NSOs  granted  pursuant to Section
4.2),  the  Committee  may  authorize  the  grant  of  Replacement  Options.  If
Replacement  Options have been  authorized  by the  Committee  with respect to a
particular  award of Options (the  "Underlying  Options"),  the Option Agreement
with  respect  to the  Underlying  Options  shall so  state,  and the  terms and
conditions of the Replacement  Options shall be provided  therein.  The grant of
any  Replacement  Options  shall be  effective  only  upon the  exercise  of the
Underlying  Options  through the use of Common Shares pursuant to Section 6.2 or
Section 6.3. The number of Replacement  Options shall equal the number of Common
Shares used to exercise the Underlying Options,  and, if the Option Agreement so
provides,  the  number of Common  Shares  used to  satisfy  any tax  withholding
requirements  incident to the exercise of the  Underlying  Options in accordance
with Section 13.2. Upon the exercise of the Underlying Options,  the Replacement
Options shall be evidenced by an amendment to the Underlying  Option  Agreement.
Notwithstanding the fact that the Underlying Option may be an ISO, a Replacement
Option is not intended to qualify as an ISO. The Exercise Price of a Replacement
Option shall be no less than the Fair Market Value of a Common Share on the date
the  grant  of the  Replacement  Option  becomes  effective.  The  term  of each
Replacement  Option  shall  be  equal to the  remaining  term of the  Underlying
Option.  No Replacement  Options shall be granted to Optionees  when  Underlying
Options  are  exercised  pursuant  to the  terms of the Plan and the  Underlying
Option  Agreement  following  termination  of  the  Optionee's  employment.  The
Committee, in its sole discretion, may establish such other terms and conditions
for Replacement Options as it deems appropriate.

     5.10      Options Granted to Non-United States Key Employees.  In  the case
of Key Employees who are subject to the tax laws of a foreign jurisdiction,  the
Company may issue Options to such Key Employees  that contain terms  required to
conform with any requirements for favorable tax treatment imposed by the laws of
such foreign  jurisdiction,  or as otherwise may be required by the laws of such
foreign  jurisdiction.  The terms of any such  Options  shall be governed by the
Plan,  subject to the terms of any Addendum to the Plan specifically  applicable
to such Options.

Article 6.     Payment for Option Shares.

     6.1       General Rule.  The entire  Exercise Price of Common Shares issued
upon  exercise of Options  shall be payable in cash at the time when such Common
Shares are purchased, except as follows:

          (a)  In the case of an ISO  granted  under the Plan,  payment shall be
          made only pursuant to the express  provisions of the applicable  Stock
          Option  Agreement.  However,  the  Committee  may specify in the Stock
          Option  Agreement  that payment may be made pursuant to Section 6.2 or
          6.3.

          (b)  In the case of an  NSO,  the  Committee  may at any  time  accept
          payment pursuant to Section 6.2 or 6.3.

     6.2       Surrender of Stock. To  the  extent  that  this  Section  6.2  is
applicable,  payment for all or any part of the Exercise  Price may be made with
Common Shares which are surrendered to the Company.  Such Common Shares shall be
valued at their Fair  Market  Value on the date when the new  Common  Shares are
purchased under the Plan. In the event that the Common Shares being  surrendered
are  Restricted  Shares that have not yet become vested,  the same  restrictions
shall be imposed upon the new Common Shares being purchased.

     6.3       Exercise/Sale.  To the extent this  Section  6.3  is  applicable,
payment may be made by the delivery (on a form  prescribed by the Company) of an
irrevocable  direction  to Charles  Schwab & Co.,  Inc.  to sell  Common  Shares
(including  the Common  Shares to be issued upon exercise of the Options) and to
deliver  all or part of the sales  proceeds  to the Company in payment of all or
part of the Exercise Price and any withholding taxes.

Article 7.     Restricted Shares and Performance Share Awards.

     7.1       Time, Amount  and  Form  of  Awards.   The  Committee  may  grant
Restricted  Shares or  Performance  Share  Awards with  respect to an Award Year
during  such Award  Year or at any time  thereafter.  Each such  Award  shall be
evidenced  by a Stock  Award  Agreement  between  the  Award  recipient  and the
Company.  The amount of each Award of  Restricted  Shares or  Performance  Share
Awards  shall be  determined  by the  Committee.  Awards  under  the Plan may be
granted in the form of Restricted  Shares or Performance  Share Awards or in any
combination  thereof, as the Committee shall determine at its sole discretion at
the time of the grant. Restricted Shares or Performance Share Awards may also be
awarded  in  combination  with  NSOs,  and such an Award  may  provide  that the
Restricted  Shares or  Performance  Share  Awards will be forfeited in the event
that the related NSOs are exercised.

     7.2       Payment for Restricted  Share Awards. To the extent that an Award
is granted in the form of Restricted Shares, the Award recipient, as a condition
to the grant of such  Award,  shall be  required  to pay the  Company in cash an
amount equal to the par value of such Restricted Shares.

     7.3       Vesting or Issuance Conditions.  Each Award of Restricted  Shares
shall  become  vested,  in full or in  installments,  upon  satisfaction  of the
conditions specified in the Stock Award Agreement. Common Shares shall be issued
pursuant  to  Performance   Share  Awards  in  full  or  in  installments   upon
satisfaction of the issuance conditions  specified in the Stock Award Agreement.
The  Committee  shall select the vesting  conditions  in the case of  Restricted
Shares, or issuance  conditions in the case of Performance  Share Awards,  which
may be based upon the Participant's service, the Participant's performance,  the
Company's  performance  or such  other  criteria  as the  Committee  may  adopt;
provided  that,  in the case of an Award of  Restricted  Shares where vesting is
based  entirely on the  Participant's  service  (except to the extent  otherwise
specified  by the  Committee  at the  time  of  grant),  (i)  vesting  shall  be
accelerated in the event of the Participant's  death or Disability;  (ii) in the
case of Retirement,  vesting shall be accelerated for all Restricted Shares that
had been  granted  more  than two years  prior to the date of the  Participant's
Retirement;  and (iii) vesting shall be suspended when an employee is on a leave
of  absence  for a period in  excess of six  months  in  appropriate  cases,  as
determined by the Company. The Committee, in its sole discretion, may determine,
at the time of making an Award of  Restricted  Shares,  that  such  Award  shall
become fully vested in the event that a Change in Control occurs with respect to
the Company. The Committee,  in its sole discretion,  may determine, at the time
of making a Performance Share Award,  that the issuance  conditions set forth in
such Award  shall be waived in the event that a Change in  Control  occurs  with
respect to the Company.

     7.4       Form  of  Settlement  of  Performance Share Awards. Settlement of
Performance Share Awards shall only be made in the form of Common Shares.  Until
a Performance  Share Award is settled,  the number of  Performance  Share Awards
shall be subject to adjustment pursuant to Article 10.

     7.5       Death of Recipient. Any Common  Shares  that  are  to  be  issued
pursuant  to a  Performance  Share Award  after the  recipient's  death shall be
delivered or distributed to the recipient's  beneficiary or beneficiaries.  Each
recipient of a  Performance  Share Award under the Plan shall  designate  one or
more  beneficiaries  for this  purpose  by filing the  prescribed  form with the
Company. A beneficiary  designation may be changed by filing the prescribed form
with  the  Company  at any  time  before  the  Award  recipient's  death.  If no
beneficiary  was designated or if no designated  beneficiary  survives the Award
recipient,  then  any  Common  Shares  that  are  to  be  issued  pursuant  to a
Performance  Share  Award after the  recipient's  death  shall be  delivered  or
distributed to the recipient's  estate.  The Committee,  in its sole discretion,
shall  determine  the  form  and time of any  distribution(s)  to a  recipient's
beneficiary or estate.

Article 8.     Claims Procedures.

     Claims  for  benefits  under the Plan  shall be filed in  writing  with the
Committee on forms supplied by the Committee.  Written notice of the disposition
of a claim shall be furnished to the claimant  within 90 days after the claim is
filed.  If the claim is denied,  the notice of  disposition  shall set forth the
specific  reasons for the denial,  citations to the pertinent  provisions of the
Plan, and, where appropriate,  an explanation as to how the claimant can perfect
the claim. If the claimant wishes further consideration of his or her claim, the
claimant may appeal a denied claim to the Committee  (or to a person  designated
by the Committee) for further review. Such appeal shall be filed in writing with
the  Committee  on a form  supplied by the  Committee,  together  with a written
statement of the claimant's position, no later than 90 days following receipt by
the  claimant  of  written  notice  of the  denial of his or her  claim.  If the
claimant so requests,  the  Committee  shall  schedule a hearing.  A decision on
review  shall be made  after a full and fair  review  of the  claim and shall be
delivered in writing to the claimant no later than 60 days after the Committee's
receipt of the notice of appeal,  unless  special  circumstances  (including the
need to hold a hearing)  require an extension of time for processing the appeal,
in which case a written decision on review shall be delivered to the claimant as
soon as possible  but not later than 120 days after the  Committee's  receipt of
the  appeal  notice.  The  claimant  shall be  notified  in  writing of any such
extension of time. The written decision on review shall include specific reasons
for the  decision,  written  in a  manner  calculated  to be  understood  by the
claimant, and shall specifically refer to the pertinent Plan provisions on which
it is based. All  determinations  of the Committee shall be final and binding on
Participants and their beneficiaries.

Article 9.     Voting Rights and Dividends.

     9.1       Restricted Shares.

          (a)  All  holders  of  Restricted  Shares  who are not Named Executive
          Officers shall have the same voting, dividend, and other rights as the
          Company's other stockholders.

          (b)  During  the  period  of  restriction,  Named  Executive  Officers
          holding Restricted Shares granted hereunder shall be credited with all
          regular  cash  dividends  paid with respect to all  Restricted  Shares
          while  they are so held.  If a  dividend  is paid in the form of cash,
          such cash  dividend  shall be  credited  to Named  Executive  Officers
          subject to the same restrictions on transferability and forfeitability
          as the Restricted  Shares with respect to which they were paid. If any
          dividends or  distributions  are paid in shares of Common  Stock,  the
          shares of Common  Stock shall be subject to the same  restrictions  on
          transferability  and  forfeitability  as the  Restricted  Shares  with
          respect to which they were paid. Subject to the succeeding  paragraph,
          and to the restrictions on vesting and the forfeiture provisions,  all
          dividends  credited to a Named Executive  Officer shall be paid to the
          Named Executive Officer within forty-five (45) days following the full
          vesting of the Restricted  Shares with respect to which such dividends
          were earned.

               In  the  event  that  any  dividend   constitutes  a  "derivative
          security"  or an "equity  security"  pursuant  to Rule 16(a) under the
          Exchange Act, such dividend shall be subject to a vesting period equal
          to the longer of: (i) the remaining  vesting  period of the Restricted
          Shares with  respect to which the  dividend  is paid;  or (ii) six (6)
          months.  The Committee shall establish  procedures for the application
          of this provision.

               Named Executive Officers holding Restricted Shares shall have the
          same voting rights as the Company's other stockholders.

     9.2       Performance Share Awards. The holders of Performance Share Awards
shall have no voting or dividend rights until such time as any Common Shares are
issued pursuant thereto, at which time they shall have the same voting, dividend
and other rights as the Company's other stockholders.

Article 10.    Protection Against Dilution; Adjustment of Awards.

     10.1      General.  In the event of a subdivision of the outstanding Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend  payable  in  a  form  other  than  Common  Shares,  a  combination  or
consolidation  of  the  outstanding  Common  Shares  (by   reclassification   or
otherwise) into a lesser number of Common Shares, a recapitalization,  a spinoff
or a similar occurrence, the Committee shall make appropriate adjustments in one
or more of (a) the number of Options,  Restricted  Shares and Performance  Share
Awards  available for future  Awards under Article 3, (b) the maximum  number of
Common Shares which may be granted under Article 3 to any one Participant in any
one  fiscal  year  either  subject  to an  Option  or as  Restricted  Shares  or
Performance Share Awards, (c) the number of Performance Share Awards included in
any prior Award which has not yet been settled,  (d) the number of Common Shares
covered  by  each  outstanding  Option  or (e) the  Exercise  Price  under  each
outstanding Option.

     10.2      Reorganizations.  In  the  event that the Company is a party to a
merger or other  reorganization,  outstanding  Options,  Restricted  Shares  and
Performance  Share  Awards  shall be  subject  to the  agreement  of  merger  or
reorganization.   Such  agreement  may  provide,  without  limitation,  for  the
assumption of outstanding Awards by the surviving corporation or its parent, for
their  continuation by the Company (if the Company is a surviving  corporation),
for accelerated vesting or for settlement in cash.

     10.3      Reservation  of Rights.  Except as provided in this Article 10, a
Participant  shall have no rights by reason of any subdivision or  consolidation
of shares of stock of any class,  the payment of any stock dividend or any other
increase or decrease in the number of shares of stock of any class. Any issue by
the  Company of shares of stock of any class,  or  securities  convertible  into
shares of stock of any class,  shall not  affect,  and no  adjustment  by reason
thereof  shall be made with  respect to, the number or Exercise  Price of Common
Shares  subject to an Option.  The grant of an Award  pursuant to the Plan shall
not  affect in any way the right or power of the  Company  to make  adjustments,
reclassifications,  reorganizations  or  changes  of  its  capital  or  business
structure, to merge or consolidate or to dissolve,  liquidate,  sell or transfer
all or any part of its business or assets.

Article 11.    Limitation of Rights.

     11.1      Employment  Rights.  Neither the Plan nor any Award granted under
the Plan shall be deemed to give any  individual  a right to remain  employed by
the Company or any  Subsidiary.  The Company  and its  Subsidiaries  reserve the
right to terminate the  employment of any employee at any time,  with or without
cause, subject only to a written employment agreement (if any).

     11.2      Stockholders'  Rights.  A  Participant  shall  have  no  dividend
rights,  voting or other  rights as a  stockholder  with  respect  to any Common
Shares  covered by his or her Award prior to the issuance of such Common Shares,
whether  by  issuance  of a  certificate,  book  entry  or other  procedure.  No
adjustment shall be made for cash dividends or other rights for which the record
date is prior to the date when such  certificate is issued,  except as expressly
provided in Articles 7, 9 and 10.

     11.3      Creditors'  Rights.  A  holder  of Performance Share Awards shall
have  no  rights  other  than  those  of a  general  creditor  of  the  Company.
Performance  Share Awards  represent  unfunded and unsecured  obligations of the
Company,  subject to the terms and  conditions  of the  applicable  Stock  Award
Agreement.

     11.4      Government   Regulations.   Any   other   provision  of  the Plan
notwithstanding, the obligations of the Company with respect to Common Shares to
be issued  pursuant to the Plan shall be subject to all applicable  laws,  rules
and  regulations,  and such  approvals  by any  governmental  agencies as may be
required.  The Company reserves the right to restrict,  in whole or in part, the
delivery of Common Shares pursuant to any Award until such time as:

          (a)  Any legal  requirements or regulations  have been met relating to
          the  issuance  of  such  Common  Shares  or  to  their   registration,
          qualification or exemption from  registration or  qualification  under
          the  Securities  Act of 1933,  as  amended,  or any  applicable  state
          securities laws; and

          (b)  Satisfactory  assurances  have been  received  that  such  Common
          Shares,  when  issued,  will be duly  listed  on the  New  York  Stock
          Exchange or any other  securities  exchange on which Common Shares are
          then listed.

Article 12.    Limitation of Payments.

     12.1      Basic  Rule.  Any   provision   of   the  Plan  to  the  contrary
notwithstanding,  in the  event  that the  independent  auditors  most  recently
selected by the Board (the "Auditors") determine that any payment or transfer in
the nature of compensation to or for the benefit of a Participant,  whether paid
or payable (or transferred or  transferable)  pursuant to the terms of this Plan
or  otherwise  (a  "Payment"),  would be  nondeductible  for federal  income tax
purposes because of the provisions  concerning  "excess  parachute  payments" in
section 280G of the Code, then the aggregate present value of all Payments shall
be reduced (but not below zero) to the Reduced Amount;  provided,  however, that
the  Committee,  at the time of making an Award  under  this Plan or at any time
thereafter,  may specify in writing  that such Award shall not be so reduced and
shall not be subject to this  Article 12. For  purposes of this  Article 12, the
"Reduced  Amount"  shall be the  amount,  expressed  as a present  value,  which
maximizes  the  aggregate  present  value of the  Payments  without  causing any
Payment to be nondeductible by the Company because of section 280G of the Code.

     12.2      Reduction of Payments. If the Auditors determine that any Payment
would be  nondeductible  because of section  280G of the Code,  then the Company
shall  promptly  give the  Participant  notice to that  effect and a copy of the
detailed  calculation thereof and of the Reduced Amount, and the Participant may
then elect,  in his or her sole  discretion,  which and how much of the Payments
shall be  eliminated or reduced (as long as after such  election,  the aggregate
present  value of the Payments  equals the Reduced  Amount) and shall advise the
Company in writing of his or her  election  within 10 days of receipt of notice.
If no such election is made by the Participant  within such 10-day period,  then
the Company may elect which and how much of the Payments  shall be eliminated or
reduced  (as long as after such  election  the  aggregate  present  value of the
Payments equals the Reduced Amount) and shall notify the Participant promptly of
such  election.  For  purposes  of this  Article  12,  present  value  shall  be
determined in accordance with section 280G(d)(4) of the Code. All determinations
made by the Auditors under this Article 12 shall be binding upon the Company and
the  Participant  and  shall be made  within  60 days of the date when a Payment
becomes  payable or  transferable.  As promptly as  practicable  following  such
determination and the elections hereunder,  the Company shall pay or transfer to
or for the benefit of the Participant such amounts as are then due to him or her
under the Plan,  and shall promptly pay or transfer to or for the benefit of the
Participant  in the  future  such  amounts as become due to him or her under the
Plan.

     12.3      Overpayments  and  Underpayments.  As a result of  uncertainty in
the  application  of  section  280G  of the  Code  at  the  time  of an  initial
determination by the Auditors hereunder,  it is possible that Payments will have
been made by the Company which should not have been made (an  "Overpayment")  or
that additional Payments which will not have been made by the Company could have
been made (an  "Underpayment"),  consistent in each case with the calculation of
the Reduced  Amount  hereunder.  In the event that the Auditors,  based upon the
assertion of a deficiency by the Internal Revenue Service against the Company or
the Participant  which the Auditors  believe has a high  probability of success,
determine that an Overpayment has been made, such  Overpayment  shall be treated
for all purposes as a loan to the Participant which he or she shall repay to the
Company on  demand,  together  with  interest  at the  applicable  federal  rate
provided in section 7872(f)(2) of the Code;  provided,  however,  that no amount
shall be payable by the  Participant  to the  Company if and to the extent  that
such  payment  would not reduce the amount  which is subject to  taxation  under
section  4999 of the Code.  In the event  that the  Auditors  determine  that an
Underpayment  has  occurred,   such  Underpayment  shall  promptly  be  paid  or
transferred  by the Company to or for the benefit of the  Participant,  together
with interest at the applicable  federal rate provided in section  7872(f)(2) of
the Code.

     12.4      Related  Corporations.  For purposes of this Article 12, the term
"Company" shall include affiliated  corporations to the extent determined by the
Auditors in accordance with section 280G(d)(5) of the Code.

Article 13.    Withholding Taxes.

     13.1      General.  To  the  extent  required by applicable federal, state,
local or foreign law, the  recipient  of any payment or  distribution  under the
Plan shall make arrangements satisfactory to the Company for the satisfaction of
any  withholding  tax  obligations  that  arise by  reason  of such  payment  or
distribution.  The  Company  shall  not be  required  to make  such  payment  or
distribution until such obligations are satisfied.

     13.2      Nonstatutory  Options,  Restricted  Shares  or  Performance Share
Awards. The Committee may permit an Optionee who exercises NSOs, or who receives
Awards of Restricted Shares, or who receives Common Shares pursuant to the terms
of a Performance  Share Award,  to satisfy all or part of his or her withholding
tax  obligations  by having the Company  withhold a portion of the Common Shares
that  otherwise  would be issued to him or her under such  Awards.  Such  Common
Shares  shall be  valued  at their  Fair  Market  Value on the date  when  taxes
otherwise  would be  withheld  in cash.  The  payment  of  withholding  taxes by
surrendering Common Shares to the Company, if permitted by the Committee,  shall
be subject to such  restrictions  as the  Committee  may impose,  including  any
restrictions required by rules of the Securities and Exchange Commission.

Article 14.    Assignment or Transfer of Award.

     14.1      General  Rule.   Any  Award  granted under the Plan shall not  be
anticipated,  assigned,  attached,  garnished,  optioned,  transferred  or  made
subject to any creditor's  process,  whether  voluntarily,  involuntarily  or by
operation of law, except to the extent specifically permitted by Section 14.2.

     14.2      Exceptions to General Rule.  Notwithstanding  Section 14.1,  this
Plan shall not preclude (i) a Participant  from  designating  a  beneficiary  to
succeed,  after the Participant's  death, to those of the  Participant's  Awards
(including without limitation, the right to exercise any unexercised Options) as
may be determined by the Company from time to time in its sole discretion,  (ii)
a  transfer  of  any  Award  hereunder  by  will  or  the  laws  of  descent  or
distribution, or (iii) a voluntary transfer of an Award (other than an ISO) to a
trust or  partnership  for the  exclusive  benefit of one or more members of the
Participant's  family,  but only if the Participant has sole investment  control
over such trust or partnership.

Article 15.    Future of Plans.

     15.1      Term of the  Plan.  The  Plan,  as set forth herein, shall become
effective on May 8, 1992. The Plan shall remain in effect until it is terminated
under Section 15.2, except that no ISOs shall be granted after May 7, 2002.

     15.2      Amendment or  Termination. The Committee may, at any time and for
any reason, amend or terminate the Plan; provided,  however,  that any amendment
of the Plan shall be subject to the approval of the  Company's  stockholders  to
the extent required by applicable laws, regulations or rules.

     15.3      Effect of Amendment or Termination.  No Award shall be made under
the Plan after the  termination  thereof.  The  termination  of the Plan, or any
amendment thereof, shall not affect any Option,  Restricted Share or Performance
Share Award previously granted under the Plan.

Article 16.    Definitions.

     16.1      "Award"  means  any  award  of an Option, a Restricted Share or a
Performance Share Award under the Plan.

     16.2      "Award  Year"  means a fiscal year beginning January 1 and ending
December 31 with respect to which an Award may be granted.

     16.3      "Board" means the Company's Board of  Directors,  as  constituted
from time to time.

     16.4      "Change in  Control" means the occurrence of any of the following
events after the effective date of the Plan as set out in Section 15.1:

          (a)  A change in control required to be reported pursuant to Item 6(e)
          of Schedule 14A of Regulation 14A under the Exchange Act;

          (b)  A change in the  composition  of the  Board, as a result of which
          fewer than  two-thirds  of the  incumbent  directors are directors who
          either (i) had been  directors  of the Company 24 months prior to such
          change or (ii) were elected,  or nominated for election,  to the Board
          with the affirmative votes of at least a majority of the directors who
          had been  directors  of the Company 24 months prior to such change and
          who were still in office at the time of the election or nomination;

          (c)  Any "person" (as such term is used in sections 13(d) and 14(d) of
          the  Exchange  Act)  becomes  the   beneficial   owner,   directly  or
          indirectly,  of securities of the Company  representing  20 percent or
          more of the combined  voting power of the Company's  then  outstanding
          securities  ordinarily  (and apart from rights  accruing under special
          circumstances) having the right to vote at elections of directors (the
          "Base  Capital  Stock");  provided,  however,  that any  change in the
          relative  beneficial  ownership of securities of any person  resulting
          solely from a reduction in the aggregate number of outstanding  shares
          of Base Capital  Stock,  and any decrease  thereafter in such person's
          ownership  of  securities,  shall be  disregarded  until  such  person
          increases  in  any  manner,  directly  or  indirectly,  such  person's
          beneficial ownership of any securities of the Company.

     16.5      "Code" means the Internal Revenue Code of 1986, as amended.

     16.6      "Committee"  means  the   Compensation Committee of the Board, as
constituted from time to time.

     16.7      "Common Share"  means  one  share  of  the  common  stock  of the
Company.

     16.8      "Company"   means   The  Charles  Schwab  Corporation, a Delaware
corporation.

     16.9      "ERISA" means  the  Employee  Retirement Income  Security  Act of
1974, as amended.

     16.10     "Exchange Act"  means  the  Securities  Exchange  Act of 1934, as
amended.

     16.11     "Exercise  Price" means the amount for which one Common Share may
be purchased  upon  exercise of an Option,  as specified by the Committee in the
applicable Stock Option Agreement.

     16.12     "Fair  Market  Value"  means  the market price of a Common Share,
determined by the committee as follows:

          (a)  If the Common Share was traded on a stock exchange on the date in
          question,  then the Fair  Market  Value  shall be equal to the closing
          price  reported by the  applicable  composite-transactions  report for
          such date;

          (b)  If the  Common  Share was traded  over-the-counter on the date in
          question and was classified as a national market issue,  then the Fair
          Market  Value shall be equal to the last  transaction  price quoted by
          the NASDAQ system for such date;

          (c)  If the Common  Share was traded  over-the-counter  on the date in
          question but was not classified as a national  market issue,  then the
          Fair Market Value shall be equal to the mean between the last reported
          representative  bid and asked prices  quoted by the NASDAQ  system for
          such date; and

          (d)  If none of the foregoing  provisions is applicable, then the Fair
          Market  Value shall be  determined  by the  Committee in good faith on
          such basis as it deems appropriate.

     16.13     "ISO" means an incentive stock option described in section 422(b)
of the Code.

     16.14     "Key Employee" means (1) a key common-law employee of the Company
or any  Subsidiary,  as  determined  by  the  Committee,  or (2) a  non-employee
director of any Subsidiary, as determined by the Committee.

     16.15     "Named Executive Officer" means a Participant who, as of the date
of vesting of an Award is one of a group of "covered  employees,"  as defined in
the Regulations promulgated under Code Section 162(m), or any successor statute.

     16.16     "Non-Employee  Director"  means a member  of the Board who is not
a common-law employee.

     16.17     "NSO" means an  employee  stock  option not described in sections
422 through 424 of the Code.

     16.18     "Option" means an ISO or NSO or, in the case of  a  Key  Employee
who is subject to the tax laws of a foreign  jurisdiction,  an option qualifying
for  favorable tax treatment  under the laws of such  jurisdiction,  including a
Replacement Option,  granted under the Plan and entitling the holder to purchase
one Common Share.

     16.19     "Optionee" means an individual, or his or her  estate, legatee or
heirs at law that holds an Option.

     16.20     "Participant"  means a Non-Employee  Director or Key Employee who
has received an Award.

     16.21     "Performance Share Award" means the conditional right to  receive
in the future one Common Share, awarded to a Participant under the Plan.

     16.22     "Plan" means this 1992 Stock Incentive Plan of The Charles Schwab
Corporation, as it may be amended from time to time.

     16.23     "Replacement  Option"  means  an  Option  that  is granted when a
Participant  uses a Common  Share held or to be acquired by the  Participant  to
exercise an Option and/or to satisfy tax  withholding  requirements  incident to
the exercise of an Option.

     16.24     "Restricted  Share" means a Common Share awarded to a Participant
under the Plan.

     16.25     "Stock Award Agreement" means the agreement between  the  Company
and the  recipient  of a  Restricted  Share or  Performance  Share  Award  which
contains the terms,  conditions and  restrictions  pertaining to such Restricted
Share or Performance Share Award.

     16.26     "Stock Option  Agreement" means the agreement between the Company
and an Optionee which contains the terms, conditions and restrictions pertaining
to his or her option.

     16.27     "Subsidiary"  means  any  corporation  or  other  entity, if  the
Company  and/or one or more other  Subsidiaries  own not less than 50 percent of
the total  combined  voting  power of all classes of  outstanding  stock of such
corporation (or ownership interest of such other entity). A corporation or other
entity that attains the status of a  Subsidiary  on a date after the adoption of
the Plan shall be considered a Subsidiary commencing as of such date.

     16.28.    "Retirement" shall mean  any  termination  of  employment  of  an
Optionee  for any reason  other than  death at any time after the  Optionee  has
attained  fifty  (50),  but  only  if,  at the  time  of such  termination,  the
Participant has been credited with at least seven (7) Years of Service under the
Charles Schwab Profit Sharing and Employee Stock  Ownership  Plan. The foregoing
definition shall apply to all Stock Option  Agreements  entered into pursuant to
the Plan,  irrespective of any definition to the contrary  contained in any such
Stock Option Agreement.

     16.29     "Disability" means the inability to  engage  in  any  substantial
gainful  activity   considering  the  Participant's   age,  education  and  work
experience by reason of any medically  determined  physical or mental impairment
that has continued without  interruption for a period of at least six months and
that can be expected  to be of long,  continued  and  indefinite  duration.  All
determinations  as to whether a Participant  has incurred a Disability  shall be
made by the Employee  Benefits  Administration  Committee  of the  Company,  the
findings of which shall be final, binding and conclusive.

<PAGE>

                                   ADDENDUM A

     The  provisions  of the Plan,  as amended by the terms of this  Addendum A,
shall apply to the grant of Approved Options to Key U.K. Employees.

     1.   For purposes of this Addendum A, the following definitions shall apply
in addition to those set out in section 16 of the Plan:

          Approved  Option  Means a  stock  option  designed  to  qualify  as an
          approved executive share option under the Taxes Act;

          Inland  Revenue  means the Board of the  Inland  Revenue in the United
          Kingdom.

          Key U.K. Employee means a designated employee of Sharelink  Investment
          Services  plc or any  subsidiary  (as  that  term  is  defined  in the
          Companies  Act  1985 of the  United  Kingdom,  as  amended)  of  which
          Sharelink  Investment  Services  plc has control  for the  purposes of
          section 840 of the Taxes Act;

          Taxes Act  means  the  Income  and  Corporation  Taxes Act 1988 of the
          United Kingdom.

     2.   An Approved Option may only be granted to a Key U.K. Employee who:

          (i)  is employed on a full-time basis; and

          (ii) does  not  fall  within   the   provisions  of   paragraph  8  of
               Schedule 9 to the Taxes Act.

     For purposes of this section 2(i) of Addendum A, "full-time"  shall mean an
employee who is required to work 20 hours per week, excluding meal breaks.

     3.   No  Approved  Option may be granted to a Key U.K. Employee if it would
cause the aggregate of the exercise  price of all  subsisting  Approved  Options
granted to such employee under the Plan, or any other subsisting options granted
to such employee  under any other share option scheme  approved under Schedule 9
of the Taxes Act and  established  by the Company or an associated  company,  to
exceed the higher of (a) one hundred thousand pounds sterling and (b) four times
such  employee's  relevant  emoluments  for the  current  or  preceding  year of
assessment  (whichever is greater);  but where there were no relevant emoluments
for the  previous  year of  assessment,  the  limit  shall be the  higher of one
hundred  thousand  pounds  sterling  or  four  times  such  employee's  relevant
emoluments  for the period of twelve months  beginning with the first day during
the  current  year  of  assessment  in  respect  of  which  there  are  relevant
emoluments.  For the  purpose  of this  section  3 of  Addendum  A,  "associated
company"  means an associated  company  within the meaning of section 416 of the
Taxes Act;  "relevant  emoluments"  has the meaning given by paragraph  28(4) of
Schedule 9 to the Taxes Act and "year of  assessment"  means a year beginning on
any April 6 and ending on the following April 5.

     4.   Common Shares issued pursuant to the exercise of Approved Options must
satisfy the  conditions  specified in  paragraphs  10 to 14 of Schedule 9 to the
Taxes Act.

     5.   Notwithstanding  the  provisions  of  Section  5.4  of  the  Plan, the
exercise  price of an Approved  Option shall not be less than 100 percent of the
closing  price of a Common  Share as  reported  in the New York  Stock  Exchange
Composite Index on the date of grant.

     6.   No Approved Option may be exercised at any time by a Key U.K. Employee
when that Key U.K.  Employee  falls  within the  provisions  of  paragraph  8 of
Schedule 9 to the Taxes Act. If at any time the shares under an Approved  Option
cease to comply with the  conditions in paragraphs 10 to 14 of Schedule 9 to the
Taxes Act, then all Approved Options then  outstanding  shall lapse and cease to
be exercisable from the date of the shares ceasing so to comply, and no optionee
shall  have any  cause of  action  against  the  Company,  Sharelink  Investment
Services  plc or any  subsidiary  of the Company or any other  person in respect
thereof.

     7.   An Approved  Option  may  contain  such  other  terms,  provisions and
conditions  as may be  determined  by the  Committee  consistent  with the Plan,
provided that the approved option  otherwise  complies with the requirements for
approved executive option schemes specified in Schedule 9 of the Taxes Act.

     8.   In relation  to  an  Approved  Option, notwithstanding  the  terms  of
section 10.1 of the Plan, no  adjustment  shall be made pursuant to section 10.1
of the Plan to any  outstanding  Approved  Options without the prior approval of
the Inland Revenue.

     9.   In relation  to an  Approved  Option any Key U.K.  Employee shall make
arrangements  satisfactory  to the  Company  for  the  satisfaction  of any  tax
withholding or deduction -- at -- source obligations that arise by reason of the
grant to him or her of such option, or its subsequent exercise.

     10.  In relation to an Approved Option,  in addition to the  provisions set
out  in  section  15.2  of the  Plan,  no  amendment  which  affects  any of the
provisions  of the Plan relating to Approved  Options  shall be effective  until
approved by the Inland  Revenue,  except for such  amendment  as are required to
obtain and maintain the approval of Inland Revenue pursuant to Schedule 9 to the
Taxes Act.Exhibit 10.215

                         THE CHARLES SCHWAB CORPORATION
                      DIRECTORS' DEFERRED COMPENSATION PLAN
                     (as amended through December 13, 2000)

                         THE CHARLES SCHWAB CORPORATION
                      DIRECTORS' DEFERRED COMPENSATION PLAN

                                TABLE OF CONTENTS

    Section                                                          Page
                               Article I. Purpose

    1.1           Establishment of the Plan                             2
    1.2           Purpose of the Plan                                   2

                             Article II. Definitions

    2.1           Definitions                                           3
    2.2           Gender and Number                                     4

                           Article III. Administration

    3.1           Committee and Administrator                           5

                            Article IV. Participants

    4.1           Participants                                          6

                              Article V. Deferrals

    5.1           Deferrals                                             7
    5.2           Deferral Procedures                                   7
    5.3           Election of Time and Manner of Payment                7
    5.4           Accounts and Earnings                                 8
    5.5           Maintenance of Accounts                              10
    5.6           Change in Control                                    10
    5.7           Payment of Deferred Amounts                          14
    5.8           Acceleration of Payment                              14

    Section

                                                                     Page

                         Article VI. General Provisions

    6.1           Unfunded Obligation                                  15
    6.2           Informal Funding Vehicles                            15
    6.3           Beneficiary                                          16
    6.4           Incapacity of Participant or Beneficiary             16
    6.5           Nonassignment                                        17
    6.6           No Right to Continued Employment                     17
    6.7           Tax Withholding                                      17
    6.8           Claims Procedure and Arbitration                     17
    6.9           Termination and Amendment                            19
    6.10          Applicable Law                                       19

                         THE CHARLES SCHWAB CORPORATION
                      DIRECTORS' DEFERRED COMPENSATION PLAN

                               Article I. Purpose

     1.1       Establishment of the Plan.  Effective as of January 1, 1996,  The
Charles Schwab Corporation  (hereinafter,  the "Company") hereby establishes The
Charles Schwab Corporation  Directors' Deferred  Compensation Plan (the "Plan"),
as set forth in this document.
     1.2       Purpose of the Plan. The  Plan  permits  Directors  to  defer the
payment of directors'  fees that they may earn.  The  opportunity  to elect such
deferrals  is provided in order to help the Company  attract and retain  outside
directors.  This Plan is unfunded and is maintained primarily for the purpose of
providing deferred compensation for its outside directors.  It is intended to be
exempt from the participation,  vesting, funding, and fiduciary requirements set
forth in Title I of the Employee  Retirement  Income  Security  Act of 1974,  as
amended.

                             Article II. Definitions

     2.1       Definitions.  The following  definitions  are  in addition to any
other  definitions set forth  elsewhere in the Plan.  Whenever used in the Plan,
the  capitalized  terms in this section  shall have the meanings set forth below
unless otherwise required by the context in which they are used:
     (a)  "Administrator"  the  administrator  described  in section 3.1 that is
          selected by the Committee to assist in the administration of the Plan.
     (b)  "Beneficiary"  means a person entitled to receive any benefit payments
          that  remain to be paid after a  Participant's  death,  as  determined
          under section 6.3.
     (c)  "Board" means the Board of Directors of the Company.
     (d)  "Company"   means  The   Charles   Schwab   Corporation,   a  Delaware
          corporation.
     (e)  "Committee" means the Compensation Committee of the Board.
     (f)  "Deferral  Account" means the account  representing  deferrals of cash
          compensation,  plus investment  adjustments,  as described in sections
          5.4 and 5.5.
     (g)  "Director"  means each member of the Board of the Directors who is not
          an  employee  of the  Company  or any of its  subsidiaries.  The  term
          "Director" shall also include each member of the Board of Directors of
          any subsidiary of the Company who is not an employee of the Company or
          any of its  subsidiaries,  but  only  if the  Committee  has  approved
          participation   in  the  Plan  for  such   subsidiary's   non-employee
          directors.
     (h)  "Plan"  means  The  Charles  Schwab  Corporation  Directors'  Deferred
          Compensation Plan, as in effect from time to time.
     (i)  "Plan Year" means the calendar year.
     (j)  "Termination"  means the date a  Participant  ceases to be a Director.
     (k)  "Valuation  Date" means each December 31 and any other date designated
          from time to time by the Committee for the purpose of determining  the
          value of a Participant's  Deferral Account balance pursuant to section
          5.4.
     2.2       Gender and  Number.   Except  when  otherwise  indicated  by  the
context, any masculine or feminine terminology shall also include the neuter and
other  gender,  and the use of any term in the  singular  or plural  shall  also
include the opposite number.

                           Article III. Administration

     3.1       Committee and  Administrator. The Committee shall  administer the
Plan and may  select  one or more  persons  to serve as the  Administrator.  The
Administrator shall perform such  administrative  functions as the Committee may
delegate  to it  from  time  to  time.  Any  person  selected  to  serve  as the
Administrator may, but need not, be a Committee member or an officer or employee
of the Company. However, if a person serving as Administrator or a member of the
Committee is a Participant,  such person may not vote on a matter  affecting his
interest as a Participant.
     The  Committee  shall  have  discretionary  authority   to   construe   and
interpret  the Plan  provisions  and  resolve  any  ambiguities  thereunder;  to
prescribe,  amend,  and rescind  administrative  rules  relating to the Plan; to
determine eligibility for benefits under the Plan; and to take all other actions
that are  necessary or  appropriate  for the  administration  of the Plan.  Such
interpretations,  rules, and actions of the Committee shall be final and binding
upon all concerned  and, in the event of judicial  review,  shall be entitled to
the maximum  deference  allowable by law.  Where the Committee has delegated its
responsibility  for matters of  interpretation  and Plan  administration  to the
Administrator,  the actions of the Administrator shall constitute actions of the
Committee.

                            Article IV. Participants

     4.1       Participants.  Each Director  shall be eligible to participate in
this Plan.

                              Article V. Deferrals

     5.1       Deferrals.  Each Director may elect to defer up to 100 percent of
the fees otherwise  receivable  from the Company for service as a Director.  Any
such election must be made by entering a deferred  compensation  agreement  with
the Company, as evidenced by a form approved by and filed with the Administrator
on or before the deadline  specified by the Committee (which shall be no earlier
than one month  prior to the  beginning  of the  election  period  for which the
deferred  fees are to be earned;  provided  that for the first year in which the
Plan is in effect,  the deferral  election shall be made within the first thirty
days of the election period). For this purpose, the election period shall be the
calendar year; provided,  however,  that during periods in which the Plan is not
in effect for a full calendar year or a Director is not a Participant for a full
calendar  year,  the election  period shall be the portion of the calendar  year
during which the Plan is in effect and the Director is an eligible  Participant.
Deferrals that have been elected shall occur  throughout the election  period in
pro rata increments.
     5.2       Deferral  Procedures.  Participants  shall have an opportunity to
elect  deferrals each year.  Unless the Committee  specifies other rules for the
deferrals that may be elected, deferrals may be made in increments of 10 percent
or in a fixed dollar  amount.  If a deferral is elected,  the election  shall be
irrevocable.  Deferral  elections  shall  be  made on a form  prescribed  by the
Committee  or the  Administrator.  As provided in section  6.7,  any deferral is
subject to any applicable tax withholding measures and may be reduced to satisfy
any applicable tax withholding requirements.
     5.3       Election of Time and Manner of Payment. At the time a Participant
makes a  deferral  election  under  section  5.1,  the  Participant  shall  also
designate  the manner of payment and the date on which  payments from his or her
Deferral Account shall begin, from among the following options:
          (i)  a lump sum payable by the end of February in the year immediately
following the Participant's Termination; or
          (ii) a series of annual installments, commencing in the year following
the Participant's  Termination  and  payable  each  year on or before the end of
February,  over a period of five,  ten, or fifteen  years,  as designated by the
Participant.
     A  Participant  may  modify  an  election   of   the   time   for   payment
under  circumstances  determined by the  Committee,  provided that (i) a payment
election  may not be modified in a manner that would cause  payments to commence
earlier than the date payments  would have commenced  absent such  modification,
and (ii) all payment  elections  shall become  irrevocable one year prior to the
date on which payment will commence under the election. If payment is due in the
form of a lump sum, the payment shall equal the balance of the Deferral  Account
being paid,  determined as of the Valuation Date  coincident with or immediately
preceding the payment date. If payment is due in the form of  installments,  the
amount of each installment  payment shall be equal to the quotient determined by
dividing  (A) the value of the  portion  of the  Deferral  Account  to which the
installment  payment  election  applies  (determined  as of the  Valuation  Date
coincident with or immediately preceding the date the payment is to be made), by
(B) the number of years over which the installment payments are to be made, less
the number of years in which prior  payments  attributable  to such  installment
payment election have been made.
     Notwithstanding  the foregoing,  however,  if earnings or any other amounts
credited  to  a  Participant's  Deferral  Account  do  not  otherwise  meet  any
applicable  requirements  of the Internal  Revenue Code allowing the Company and
its Subsidiaries to receive a federal income tax deduction for such amounts upon
paying them at the time provided under the Participant's  election,  the payment
of such  amounts,  to the extent in excess of the amount that would be currently
tax deductible, shall automatically be deferred until the earliest year that the
payment can be deducted.
     5.4       Accounts and Earnings.  The Company shall  establish  a  Deferral
Account for each Participant who has elected a deferral under section 5.1 above,
and its  accounting  records for the Plan with respect to each such  Participant
shall  include a separate  Deferral  Account  or  subaccount  for each  deferral
election of the Participant  that could cause a payment made at a different time
or in a  different  form from other  payments of  deferrals  elected by the same
Participant.   Each  Deferral   Account  balance  shall  reflect  the  Company's
obligation to pay a deferred  amount to a Participant or Beneficiary as provided
in this Article V.
     Under   procedures   approved  by  the   Committee  and   communicated   to
Participants,  a Participant  shall elect between the following two alternatives
with  respect  to the  deferred  amounts  at the same time that the  Participant
elects to defer the fees payable for a calendar year  (provided  that  elections
made for the 1999  calendar  year  shall be made  within 30 days of the date the
Participant  receives  notice of the  election,  or such  shorter time as may be
specified by the Committee).  Once made, a Participant's election for the method
of payment  may not be  changed;  however,  a  Participant  may make a different
election  with  respect  to  amounts  that the  Participant  elects  to defer in
subsequent periods.
          (1)  Payment in Shares. Under this alternative, a Participant shall be
credited with an award of Performance Shares pursuant to Section 4.7 of the 1992
Stock Incentive Plan, in a number of Performance Shares equal to (i) the amounts
deferred hereunder, divided by (ii) the closing price of the Common Stock of the
Company on the date the Deferral occurred. Performance Shares credited hereunder
shall be issued to one or more  grantor  trusts  formed by the  Company  ("rabbi
trusts")  pursuant to Section 6.2 hereof.  Any  dividends  paid on shares of the
Common  Stock of the  Company  issued to a rabbi trust  shall be  reinvested  in
Common Stock of the Company, which shall be treated as having been issued to the
Participant  as  additional  Performance  Shares under the 1992 Stock  Incentive
Plan. Notwithstanding the foregoing, the crediting of assumed earnings shall not
mean that any  deferred  compensation  promise  to a  Participant  is secured by
particular  investment  assets or that the  Participant is actually  earning any
form of investment income under the Plan.
          (2)  Issuance of Stock Options Under the 1992  Stock  Incentive  Plan.
Under this alternative, a Participant  may  elect,  in  lieu  of  receiving  any
payments from the Plan, to be issued  nonqualified  stock  options  pursuant  to
Section 4.6 of The Charles Schwab  Corporation  1992  Stock  Incentive  Plan.  A
Participant who elects this alternative shall, on the  date  the  fees  deferred
pursuant to Section 5.1 hereof would otherwise have been  payable, be  issued  a
number of nonqualified stock  options  with a fair  market  value  equal to  the
amounts deferred, as determined under the valuation methods set forth in Exhibit
A hereto.
     5.5       Maintenance of Accounts. The Accounts of each  Participant  shall
be entered on the books of the Company and shall represent a liability,  payable
when due under this  Plan,  from the  general  assets of the  Company.  Prior to
benefits  becoming due  hereunder,  the Company  shall expense the liability for
such  accounts  in  accordance  with  policies  determined  appropriate  by  the
Company's  auditors.  Except  to the  extent  provided  pursuant  to the  second
paragraph of this section 5.5,  the Accounts  created for a  Participant  by the
Company shall not be funded by a trust or an insurance  contract;  nor shall any
assets of the Company be segregated or identified to such account; nor shall any
property or assets of the Company be pledged, encumbered, or otherwise subjected
to a lien or security interest for payment of benefits hereunder.
     5.6       Change in Control. In  the  event  of  a  Change  in  Control (as
defined below), the following rules shall apply:
     (a)  All Participants shall continue to have a fully vested, nonforfeitable
          interest in their Deferral Accounts.
     (b)  Deferrals of amounts for the year that  includes the Change in Control
          shall  cease  beginning  with the  first  payment  otherwise  due that
          follows the Change in Control.
     (c)  A special  allocation  of earnings on all Deferral  Accounts  shall be
          made  under  section  5.4 as of the date of the Change in Control on a
          basis no less favorable to Participants than the method being followed
          prior to the Change in Control.
     (d)  All  payments  of  deferred  amounts  following  a Change in  Control,
          whether or not they have previously begun, shall be made in a lump sum
          no later than 30 days  following the Change in Control and,  except as
          provided  in section  5.3 with  respect  to  installment  payments  in
          progress,  shall be in an amount  equal to the full  Deferral  Account
          balance,  as adjusted  pursuant to paragraph (c) above, as of the date
          of the Change in Control.
     (e)  Nothing in this Plan shall  prevent a Participant  from  enforcing any
          rules in a contract or another  plan of the Company or any  Subsidiary
          concerning the method of determining  the amount of fees or other form
          of compensation to which a Participant may become entitled following a
          change in  control,  or the time at which that  compensation  is to be
          paid in the event of a change in control. For purposes of this Plan, a
          "Change in Control" means any of the following:
          (1)  The  acquisition by any  individual,  entity or group (within the
               meaning  of  Section  13(d)  (3) or 14(d)  (2) of the  Securities
               Exchange  Act of  1934,  as  amended  (the  "Exchange  Act"))  (a
               "Person")  of  beneficial  ownership  (within the meaning of Rule
               13d-3  promulgated  under  the  Exchange  Act)  of 20% or more of
               either  (i) the then  outstanding  shares of common  stock of the
               Corporation (the "Outstanding  Corporation Common Stock") or (ii)
               the  combined  voting  power  of  the  then  outstanding   voting
               securities of the  Corporation  entitled to vote generally in the
               election  of  directors  (the  "Outstanding   Corporation  Voting
               Securities");  provided,  however,  that  for  purposes  of  this
               paragraph (1), the following  acquisitions shall not constitute a
               Change of Control: (i) any acquisition directly from the Company,
               (ii) any acquisition by the Company, (iii) any acquisition by any
               employee  benefit plan (or related trust) sponsored or maintained
               by the Company or any corporation  controlled by the Company,  or
               (iv) any acquisition by any corporation pursuant to a transaction
               which  complies with clauses (i), (ii) and (iii) of paragraph (3)
               hereof; or
          (2)  Individuals who, as of January 1, 1996, constitute the Board (the
               "Incumbent  Board") cease for any reason to constitute at least a
               majority of the Board;  provided,  however,  that any  individual
               becoming a director subsequent to January 1, 1996 whose election,
               or  nomination  for election by the Company's  shareholders,  was
               approved by a vote of at least a majority of the  directors  then
               comprising the Incumbent Board shall be considered as though such
               individual were a member of the Incumbent  Board,  but excluding,
               for this purpose, any such individual whose initial assumption of
               office  occurs as a result of an  actual or  threatened  election
               contest  with  respect to the election or removal of directors or
               other actual or threatened solicitation of proxies or consents by
               or on behalf of a Person other than the Board; or
          (3)  Consummation of a  reorganization,  merger or  consolidation,  or
               sale or  other  disposition  of all or  substantially  all of the
               assets of the Company (a "Business  Combination"),  in each case,
               unless,   following  such  Business   Combination,   (i)  all  or
               substantially  all of the  individuals  and entities who were the
               beneficial owners,  respectively,  of the Outstanding Corporation
               Common  Stock  and  Outstanding   Corporation  Voting  Securities
               immediately prior to such Business Combination  beneficially own,
               directly or indirectly, more than 50% of, respectively,  the then
               outstanding  shares of common stock and the combined voting power
               of the  then  outstanding  voting  securities  entitled  to  vote
               generally  in the election of  directors,  as the case may be, of
               the   corporation   resulting  from  such  Business   Combination
               (including,  without limitation,  a corporation which as a result
               of such transaction owns the Company or all or substantially  all
               of the Company's  assets  either  directly or through one or more
               subsidiaries)  in  substantially  the same  proportions  as their
               ownership, immediately prior to such Business Combination, of the
               Outstanding  Corporation Common Stock and Outstanding Corporation
               Voting Securities,  as the case may be, (ii) no Person (excluding
               any corporation  resulting from such Business  Combination or any
               employee  benefit plan (or related  trust) of the Company or such
               corporation    resulting   from   such   Business    Combination)
               beneficially  owns,  directly  or  indirectly,  20% or  more  of,
               respectively,  the then outstanding shares of common stock of the
               corporation  resulting  from  such  Business  Combination  or the
               combined voting power of the then outstanding  voting  securities
               of such  corporation  except to the  extent  that such  ownership
               existed  prior to the Business  Combination  and (iii) at least a
               majority  of  the  members  of  the  board  of  directors  of the
               corporation resulting from such Business Combination were members
               of the  Incumbent  Board  at the  time  of the  execution  of the
               initial agreement,  or of the action of the Board,  providing for
               such Business Combination; or
          (4)  Approval  by  the  shareholders  of  the  Company  of a  complete
               liquidation or  dissolution  of the Company.  A Change of Control
               shall  occur  on the  first  day on  which  any of the  preceding
               conditions  has  been  satisfied.  However,  notwithstanding  the
               foregoing,  this  section 5.6 shall not apply to any  Participant
               who alone or together with one or more other persons  acting as a
               partnership,  limited partnership,  syndicate, or other group for
               the purpose of  acquiring,  holding or disposing of securities of
               the Company, triggers a "Change in Control" within the meaning of
               paragraphs  (1) and (2) above.  Moreover,  no  acquisition by (i)
               Charles Schwab and/or his spouse or any of his lineal descendants
               or (ii) any trust created by or for the benefit of Charles Schwab
               and/or his spouse or any of his lineal  descendants  or (iii) the
               Schwab Family Foundation shall constitute a Change of Control.
     5.7       Payment of Deferred  Amounts.  A  Participant shall have a  fully
vested,  nonforfeitable  interest in his or her Deferral  Account balance at all
times.  However,  vesting  does not confer a right to payment  other than in the
manner  elected by the  Participant  pursuant  to section  5.3  (subject  to any
modification  that may occur  pursuant  to section  5.4,  5.6 or 5.8).  Upon the
expiration  of a deferral  period  selected  by the  Participant  in one or more
deferral  elections,  the  Company  shall  pay to  such  Participant  (or to the
Participant's  Beneficiary,  in the case of the Participant's  death), an amount
equal to the balance of the Participant's  Account attributable to such expiring
deferral  elections,  plus  any  assumed  earnings  (determined  by the  Company
pursuant to section 5.4) thereon.
     5.8       Acceleration of Payment. The Committee, in  its  discretion, upon
receipt of a written  request from a Participant,  may accelerate the payment of
all or any portion of the unpaid balance of a Participant's  Deferral Account in
the  event  of the  Participant's  death,  permanent  disability,  or  upon  its
determination that the Participant (or his Beneficiary in the case of his death)
has incurred a severe,  unforeseeable  financial  hardship creating an immediate
and heavy need for cash that cannot  reasonably be satisfied  from sources other
than an  accelerated  payment  from this  Plan.  The  Committee  in  making  its
determination may consider such factors and require such information as it deems
appropriate.

                         Article VI. General Provisions

     6.1       Unfunded  Obligation.   The  deferred  amounts  to  be  paid   to
Participants  pursuant  to this  Plan  constitute  unfunded  obligations  of the
Company.  Except to the extent specifically  provided hereunder,  the Company is
not  required to  segregate  any monies from its  general  funds,  to create any
trusts,  or to make any special deposits with respect to this obligation.  Title
to and  beneficial  ownership of any  investments,  including  any grantor trust
investments  which the Company has determined and directed the  Administrator to
make to fulfill  obligations  under  this Plan shall at all times  remain in the
Company.  Any  investments  and the  creation  or  maintenance  of any  trust or
Accounts  shall not create or  constitute  a trust or a  fiduciary  relationship
between the Administrator or the Company and a Participant,  or otherwise create
any vested or beneficial  interest in any  Participant or his or her Beneficiary
or  his  or  her  creditors  in  any  assets  of  the  Company  whatsoever.  The
Participants  shall  have no claim for any  changes  in the value of any  assets
which may be  invested  or  reinvested  by the Company in an effort to match its
liabilities under this Plan.
     6.2       Informal Funding  Vehicles.  To the extent required  pursuant  to
Section  5.4(1),  the Company shall arrange for the  establishment  and use of a
grantor trust or other  informal  funding  vehicle to facilitate  the payment of
benefits  and to  discharge  the  liability  of the  Company  and  participating
Affiliates  under this Plan to the extent of  payments  actually  made from such
trust or other informal funding vehicle. In addition,  the Company may, but need
not,  arrange  for the  establishment  and use of such a grantor  trust or other
informal funding vehicle to the extent otherwise permitted pursuant to the Plan.
     Any investments and any creation or maintenance of memorandum accounts or a
trust or other informal  funding  vehicle shall not create or constitute a trust
or a fiduciary relationship between the Committee or the Company or an affiliate
and a Participant,  or otherwise confer on any Participant or Beneficiary or his
or her creditors a vested or beneficial interest in any assets of the Company or
any Affiliate  whatsoever.  Participants and  Beneficiaries  shall have no claim
against the Company or any  Affiliate for any changes in the value of any assets
which may be invested or reinvested by the Company or any Affiliate with respect
to this Plan.
     6.3       Beneficiary.  The  term "Beneficiary" shall mean  the  person  or
persons to whom payments are to be paid pursuant to the terms of the Plan in the
event of the Participant's death. A Participant may designate a Beneficiary on a
form provided by the Administrator,  executed by the Participant,  and delivered
to  the  Administrator.  The  Administrator  may  require  the  consent  of  the
Participant's spouse to a designation if the designation specifies a Beneficiary
other than the spouse.  Subject to the  foregoing,  a  Participant  may change a
Beneficiary designation at any time. Subject to the property rights of any prior
spouse, if no Beneficiary is designated,  if the designation is ineffective,  or
if the  Beneficiary  dies before the balance of the Account is paid, the balance
shall be paid to the Participant's surviving spouse, or if there is no surviving
spouse, to the Participant's estate.
     6.4       Incapacity of Participant or  Beneficiary. Every person receiving
or  claiming  benefits  under  the Plan  shall be  conclusively  presumed  to be
mentally competent and of age until the date on which the Administrator receives
a written notice,  in a form and manner  acceptable to the  Administrator,  that
such  person is  incompetent  or a minor,  for whom a guardian  or other  person
legally  vested  with the  care of his  person  or  estate  has been  appointed;
provided,  however,  that if the  Administrator  finds that any person to whom a
benefit  is  payable  under the Plan is  unable  to care for his or her  affairs
because  of  incompetency,  or  because he or she is a minor,  any  payment  due
(unless a prior claim therefor  shall have been made by a duly  appointed  legal
representative)  may be paid to the  spouse,  a child,  a parent,  a brother  or
sister, or to any person or institution  considered by the Administrator to have
incurred  expense for such person otherwise  entitled to payment.  To the extent
permitted  by law,  any such  payment so made shall be a complete  discharge  of
liability therefor under the Plan.
     If a guardian of the estate of any person  receiving  or claiming  benefits
under  the Plan is  appointed  by a court  of  competent  jurisdiction,  benefit
payments may be made to such guardian  provided that proper proof of appointment
and continuing qualification is furnished in a form and manner acceptable to the
Administrator.  In the event a person  claiming or receiving  benefits under the
Plan is a minor,  payment  may be made to the  custodian  of an account for such
person  under the Uniform  Gifts to Minors Act. To the extent  permitted by law,
any such payment so made shall be a complete discharge of any liability therefor
under the Plan.
     6.5       Nonassignment. The right of a Participant or Beneficiary  to  the
payment of any amounts under the Plan may not be assigned, transferred,  pledged
or encumbered nor shall such right or other  interests be subject to attachment,
garnishment, execution, or other legal process.
     6.6       No Right to Continued  Service.  Nothing in  the  Plan  shall  be
construed to confer upon any  Participant any right to continue as a Director of
the Company.
     6.7       Tax Withholding.  Any appropriate taxes shall  be  withheld  from
payments  made  to  Participants  pursuant  to  the  Plan.  To  the  extent  tax
withholding is payable in connection with the  Participant's  deferral of income
rather than in connection with the payment of deferred amounts, such withholding
may be made from amounts currently payable to the Participant, or, as determined
by the Administrator,  the amount of the deferral elected by the Participant may
be reduced in order to  satisfy  required  tax  withholding  for any  applicable
taxes.
     6.8       Claims  Procedure and Arbitration.  The Company shall establish a
reasonable  claims  procedure  consistent with the  requirements of the Employee
Retirement  Income  Security  Act of 1974,  as  amended.  Following  a Change in
Control of the Company (as  determined  under section 5.6) the claims  procedure
shall include the following arbitration procedure.
     Since time will be of the essence in  determining  whether any payments are
due to the  Participant  under  this  Plan  following  a Change  in  Control,  a
Participant  may submit any claim for payment to arbitration  as follows:  On or
after the second day following the Termination or other event triggering a right
to  payment,  the claim may be filed  with an  arbitrator  of the  Participant's
choice by  submitting  the claim in writing and providing a copy to the Company.
The arbitrator must be:
     (a)  a member of the National  Academy of  Arbitrators or one who currently
          appears on  arbitration  panels  issued by the Federal  Mediation  and
          Conciliation Service or the American Arbitration Association; or
     (b)  a retired  judge of the State in which the  claimant is a resident who
          served at the appellate level or higher. The arbitration hearing shall
          be held  within 72 hours (or as soon  thereafter  as  possible)  after
          filing of the claim unless the  Participant and the Company agree to a
          later date. No  continuance  of said hearing shall be allowed  without
          the mutual consent of the Participant and the Company. Absence from or
          nonparticipation  at the hearing by either party shall not prevent the
          issuance  of an award.  Hearing  procedures  which will  expedite  the
          hearing  may  be  ordered  at the  arbitrator's  discretion,  and  the
          arbitrator  may close the hearing in his or her sole  discretion  upon
          deciding he or she has heard  sufficient  evidence to satisfy issuance
          of an award.  In reaching a  decision,  the  arbitrator  shall have no
          authority  to  ignore,  change,  modify,  add to or  delete  from  any
          provision of this Plan,  but instead is limited to  interpreting  this
          Plan. The  arbitrator's  award shall be rendered as  expeditiously  as
          possible,  and unless the arbitrator rules within seven days after the
          close of the hearing,  he will be deemed to have ruled in favor of the
          Participant.  If the  arbitrator  finds that any payment is due to the
          Participant  from the Company,  the arbitrator shall order the Company
          to pay that  amount  to the  Participant  within  48 hours  after  the
          decision is rendered.  The award of the arbitrator  shall be final and
          binding upon the Participant and the Company.  Judgment upon the award
          rendered by the arbitrator may be entered in any court in any State of
          the  United  States.  In the case of any  arbitration  regarding  this
          Agreement,  the Participant shall be awarded the Participant's  costs,
          including  attorney's  fees.  Such fee award may not be offset against
          the deferred  compensation  due  hereunder.  The Company shall pay the
          arbitrator's fee and all necessary expenses of the hearing,  including
          stenographic reporter if employed.
     6.9       Termination  and Amendment.  The  Committee may from time to time
amend,  suspend or terminate the Plan,  in whole or in part,  and if the Plan is
suspended  or  terminated,  the  Committee  may  reinstate  any  or  all  of its
provisions.  Except as otherwise  required by law, the Committee may delegate to
the  Administrator  all or any of its  foregoing  powers to amend,  suspend,  or
terminate the Plan. Any such  amendment,  suspension,  or termination may affect
future deferrals without the consent of any Participant or Beneficiary. However,
with respect to deferrals that have already occurred,  no amendment,  suspension
or termination may impair the right of a Participant or a designated Beneficiary
to receive payment of the related  deferred  compensation in accordance with the
terms of the Plan prior to the effective date of such  amendment,  suspension or
termination,  unless the affected  Participant or Beneficiary  gives his express
written consent to the change.
     6.10      Applicable Law. The Plan  shall  be  construed  and  governed  in
accordance with applicable  federal law and, to the extent not preempted by such
federal law, the laws of the State of California.

<PAGE>

                                    Exhibit A

                For purposes of determining the number of Options
                      to be granted Under the Stock Option
                   Investment Election, Options will be valued
                  under the Black-Scholes method, based on the
                             following assumptions:

o    Assumed Option Term = 5 years
o    Volatility = Actual volatility over the 3 year period immediately preceding
     the grant
o    Risk Free Interest Rate = 5 year Treasury Note Rate
o    Dividend Yield = Current Annual Dividend Yield On Option Grant Date
   (Quarterly Dividend x 4) / Market Price on Option Grant Date = Dividend Yield
   Sample Calculation: ($.028 x 4)/ $55 = .2%
o    Fair Market Value = Closing Price Of Schwab Common Stock  on  Date of Grant
     (Same as Date of Retainer and Meeting Fee Payment)
o    Exercise Price = Same as above

Sample Stock Option Calculation

o    Fees Deferred / Black Scholes Valuation = Number of Stock Option grants
     from Deferral Election

Sample Calculation: $14,250 / $23.82 = 598.2368 Stock Options, rounded up to
nearest full option, = grant of 599 Stock Options.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]