Document:

Employment Agreement

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

EMPLOYMENT AGREEMENT (this “Agreement”) dated as of the sixteenth day of July, 2010 between QUALITY
DISTRIBUTION, INC., a Florida corporation (the “Company”), and Joseph J. Troy the (“Employee”). 

The Employee and the Company wish to enter into an employment relationship on the terms and conditions set forth in this Agreement.

 Accordingly, the Company and the Employee hereby agree as follows: 

1. Employment, Duties and Acceptance. 

1.1. Employment. The Company hereby agrees to employ the Employee for the Term (as defined in
Section 2.1), to render exclusive and full-time services to the Company, in the capacity of Executive Vice President and Chief Financial Officer of the Company and to perform such other duties consistent with such position (including service as
a director or officer of any affiliate of the Company if elected) as may be assigned by the Company. It is agreed and understood that, if applicable, the Employee shall resign as an officer of the Company or any subsidiary immediately upon
termination of his employment hereunder for any reason. 
 1.1.1. Duties and Authority. During the Term,
the Employee shall serve as the Executive Vice President and Chief Financial Officer and shall have the normal duties, responsibilities, functions and authority of the position but subject to the power and authority of the Chief Executive Officer
and/or the Company’s Board of Directors (the “Board”) to expand or limit such duties, responsibilities, functions and authority, consistent with the foregoing, and to overrule the actions of employees and officers of the
Company. During the Term, the Employee shall report to the Company’s Chief Executive Officer. 
 1.2.
Acceptance. The Employee hereby accepts such employment and agrees to render the services described above. During the Term, and consistent with the above, the Employee agrees to serve the Company faithfully and to the best of the
Employee’s ability, to devote the Employee’s entire business time, energy and skill to such employment, and to use the Employee’s best efforts, skill and ability to promote the Company’s interests. It is understood that, during
the Term, subject to any conflict-of-interest policies of the Company and Section 5.1, the Employee may (x) serve in any capacity with any civic, charitable, educational or professional organization provided that such service does not
interfere with his duties hereunder, (y) make and manage investments of his choice, and (z) serve on the board of directors of up to two non-competing for-profit organizations provided that such board service does not interfere with his
duties hereunder as determined by the Company’s Chief Executive Officer. Further, the Employee agrees not to serve as a board audit committee chair for any non-competing for profit organization, due to the extensive incremental workload created
by this type of role. For the avoidance of doubt, Employee currently serves on the board of directors of two non-competing for-profit organizations and will retain the right to serve in such capacities. 

 1.3. Location. The duties to be performed by the Employee
hereunder shall be performed primarily at the location specified by the Company, subject to reasonable travel requirements consistent with the nature of the Employee’s duties from time to time on behalf of the Company. 

1.4. Fiduciary Relationship. The Employee acknowledges and fully understands that, by entering into this
Agreement, he undertakes a fiduciary relationship with the Company, and, as a fiduciary, has the obligation to use due care and act in the best interests of the Company at all times. Employee shall be candid in all reports and responses to inquiries
and shall include in any report or response all information known or then available to the Employee, even if not specifically requested, which Employee reasonably believes is material, relevant and reasonably required for the understanding of the
matter in question sufficient to inform the person to whom such report or response is provided. Failure of the Employee to fulfill all fiduciary obligations ordinarily imposed by law on similarly situated employees in a fiduciary relationship will
be deemed a material breach of this Agreement by the Employee. 
 2. Term of Employment. 

2.1. Term. The term of the Employee’s employment under this Agreement (the “Term”) shall
commence on August 2, 2010 (the “Effective Date”), and shall end on the date on which the Term is terminated pursuant to Section 4. 

3. Compensation; Benefits. 

3.1. Salary. As compensation for all services to be rendered pursuant to this Agreement, the Company agrees
to pay to the Employee during the Term a base salary, payable bi-weekly, at the initial annual rate of $250,000 (the “Base Salary”). On each anniversary of the Effective Date, or such other appropriate date during each year of the
Term when the salaries of the Company’s employees are normally reviewed, the Company and/or the Board shall review the recommendation of the Company regarding the Employee’s Base Salary and determine if, and by how much, the Base Salary
should be increased. 
 3.2. Bonus. The Employee shall be eligible to receive a cash bonus for the
achievement of the Company’s Board-approved business plan. The annual cash bonus target opportunity shall be 50% of Base Salary. The Employee’s annual cash bonus, if any, shall be paid in a single lump sum cash payment at the same time as
annual bonuses are normally paid to similarly situated employees of the Company. Bonus awards shall be prorated during the first fiscal year of the Employee’s employment. 

3.3. Stock Options. The Company agrees to grant Employee options to acquire 135,000 shares of the
Company’s common stock pursuant to the Quality Distribution, Inc. 2003 Stock Option Plan (“Option Plan”), such grant to be effective as of the Effective Date. These options will vest in equal annual installments over
four years. Future grants will be at the discretion of the Company’s Compensation Committee. The foregoing grant is subject to the provisions set forth in the Option Plan and the Stock Option Agreement to be executed by Employee. 

 

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 3.4. Business Expenses. The Company shall pay or reimburse the
Employee for all reasonable expenses actually incurred or paid by the Employee during the Term in the performance of the Employee’s services under this Agreement, subject to and in accordance with applicable expense-reimbursement and related
policies and procedures as in effect from time to time. 
 3.5. Paid Time Off. During the Term, the
Employee shall be entitled to twenty (20) days of paid time off per fiscal year, with a carryover of up to ten (10) days each fiscal year, but at no time an aggregate of more than ten (10) days’ carryover. Days carried over may
only be used for the purpose of Family Medical Leave or Short Term Disability. Paid time off shall be prorated for the first fiscal year of Employee’s employment in accordance with the published Paid Time Off policy. 

3.6. Benefits and Perquisites. During the Term, the Employee shall be eligible to participate in those
defined contribution, salary deferral, group insurance, medical, dental, disability and other benefit plans and such perquisites of the Company as from time to time in effect and on a basis no less favorable than any other similarly situated
Employee of the Company. 
 4. Termination. 

4.1. Termination Events. 

4.1.1. Employee’s employment and the Term shall terminate immediately upon the occurrence of any of the following:

 (i) the death of the Employee; 

(ii) the physical or mental disability of the Employee, whether totally or partially, such that, with or without
reasonable accommodation, the Employee is unable to perform the Employee’s material duties, for a period equal to the greater of three months or the eligibility waiting period under the Company’s long-term disability insurance policy; or

 (iii) notice of termination for “Cause.” As used herein, “Cause” means
(a) a good faith finding by the Company of the Employee’s failure to satisfactorily perform Employee’s assigned duties for the Company as a result of Employee’s material dishonesty, gross negligence or intentional misconduct
(including intentionally violating any law, rule or regulation or any policy or guideline of the Company); (b) Employee’s conviction of, or the entry of a pleading of guilty or nolo contendere by Employee to, any crime involving
moral turpitude or any felony; or (c) a material breach of this Agreement by the Employee not cured to the reasonable satisfaction of the Chief Executive Officer within thirty days after written notice to the Employee by the Chief Executive
Officer. 
  

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 4.1.2. The Employee may immediately resign the Employee’s position for
Good Reason, and, in such event, the Term shall terminate. As used herein, “Good Reason” means without the Employee’s consent (i) material breach of this Agreement by the Company not cured to the Employee’s reasonable
satisfaction within thirty days after written notice to the Chief Executive Officer by the Employee; (ii) a material diminution of Employee’s duties or authority caused by the Company; (iii) a change in Employee’s reporting
assignment so that Employee does not report directly to the Company’s Chief Executive Officer; or (iv) an involuntary relocation of more than 50 miles of Employee’s principal place of business as it exists as of the Effective Date.

 4.1.3. The Company may terminate the Employee’s employment following notice of termination without Cause
given by the Company and, in such event, the Term shall terminate. 
 4.1.4. The Employee may voluntarily resign
the Employee’s position following notice to the Company of the Employee’s intent to voluntarily resign without Good Reason and, in such event, the Term shall terminate. 

4.1.5. The date upon which Employee’s employment and the Term terminate pursuant to this Section 4.1 shall be
the Employee’s “Termination Date” for all purposes of this Agreement. 
 4.2.
Payments Upon a Termination Event. 
 4.2.1. Following any termination of the Employee’s employment,
the Company shall pay or provide to the Employee, or the Employee’s estate or beneficiary, as the case may be: (i) Base Salary earned through the Termination Date; (ii) the balance of any awarded but as yet unpaid, annual cash bonus
or other incentive awards for any fiscal year prior to the fiscal year during which the Employee’s Termination Date occurs; (iii) any vested, but not forfeited benefits on the Termination Date, under the Company’s employee benefit
plans in accordance with the terms of such plans; and (iv) benefit continuation and conversion rights to which the Employee is entitled under the Company’s employee benefit plans. 

4.2.2. Following termination of Employee’s employment and the Term by reason of Section 4.1.1(i) or (ii), for
the fiscal year during which the Termination Date shall occur, the Employee, or his or her estate or representative, as applicable, shall receive in addition to the payments in Section 4.2.1 above, an annual cash bonus at target prorated from
the first day of such fiscal year through the Termination Date. Such annual cash bonus shall be paid in a lump sum at the same time such annual cash bonuses are normally paid to similarly situated employees of the Company. 

4.2.3. Following a termination by the Company without Cause or by the Employee for Good Reason, the Company shall pay or
provide to the Employee in addition to the payments in Section 4.2.1 above, (i) an annual cash bonus at target prorated from the first day of such fiscal year through the Termination Date which shall be paid in a lump sum at the same time
as annual cash bonuses are normally paid to similarly situated Employees of the Company; (ii) Base Salary payable in accordance with the normal payroll cycles of the 

 

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Company for fifty-two weeks following the Termination Date; and (iii) if participating in the Company’s medical benefits at the time of termination, Company provided medical benefits
for the Employee (and his or her eligible dependents) at active employee contribution rates for fifty-two weeks following the Termination Date. COBRA coverage eligibility will be reduced during the period of severance coverage. If, and only if,
required by law, the Company shall not commence payment of the amount described in Section 4.2.3(ii) above until six months after the Termination Date. 

4.3. General Release. 

4.3.1. The receipt of any payment as set forth in Section 4.2.3 shall be contingent upon the Employee’s
execution of a general release agreement reasonably acceptable to the Employee and Company that (i) waives any rights the Employee may otherwise have against the Company and its Affiliates, and its and their directors, officers, employees and
agents, and (ii) releases the Company and its Affiliates from actions, suits, claims, proceedings and demands related to the period of Employee’s employment and/or the termination of Employee’s employment. For purposes of this
Agreement, “Affiliates” means any individual, corporation, partnership, association, joint-stock company, trust, unincorporated association or other entity (other than the Company) that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with the Company. Notwithstanding the foregoing, said general release agreement shall not negate or in any way diminish Employee’s right to enforce this Agreement, and
Employee’s vested benefits and benefit continuation/conversion rights under the Company’s employee benefit plans, and Employee’s right to indemnification under Section 6 of this Agreement. 

5. Restrictive Covenant. 

5.1. Restrictive Covenant. Employee agrees to be bound by the Restrictive Covenant agreement set forth on
Annex A and the Intellectual Property Protection Agreement set forth on Annex B, both of which are attached hereto and herein incorporated by reference. 

6. Indemnification. 

The Company shall indemnify, defend, and hold harmless Employee in accordance with the provisions of Article VI of the
Company’s By-Laws. 
 7. No Duty to Mitigate. 

The Employee shall have no duty to mitigate any amounts payable to him or her hereunder, and such amounts shall not be
subject to reduction for any compensation received by Employee from employment in any capacity or other source following the termination of Employee’s employment with the Company and its subsidiaries. 

 

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 8. Prior Agreements; Amendments; No Waiver. 

This Agreement contains the entire understanding between the parties hereto with respect to the subject matter hereof.
This Agreement may not be changed orally, but only by an instrument in writing signed by each party hereto. No failure on the part of either party to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor
shall any partial exercise of any right hereunder preclude any further exercise thereof. Without limiting the generality of the first sentence of this Section 8 any and all prior agreements or purported agreements between the Company and
Employee are hereby terminated on and as of the Effective Date. In the event of any difference between this Agreement and any other document referred to in this Agreement, this Agreement shall control. 

9. Withholding. 

The Company shall be entitled to withhold from any and all amounts payable to Employee hereunder such amounts as may, from
time to time, be required to be withheld pursuant to applicable tax laws and regulations. 
 10. Succession; Assignability;
Binding Effect. 
 10.1. The Company may assign all of its rights and obligations hereunder to any
successor or successors (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company; provided, however, that the Company will require each such successor or
successors expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place, and further provided that nothing contained herein
shall act as a release of the Company of its obligations hereunder. 
 10.2. This Agreement shall inure
to the benefit of and shall be binding upon the Company and its successors and assigns. Employee may not assign, transfer, pledge, encumber, hypothecate or otherwise dispose of this Agreement or any of his rights or obligations hereunder without the
prior written consent of the Company, and any such attempted assignment, transfer, pledge, encumbrance, hypothecation or other disposition without such consent shall be null and void and without effect. Notwithstanding the foregoing, it is expressly
understood and agreed that the Employee’s estate shall be entitled to all monies due to Employee hereunder in the event Employee dies at, or subsequent to, the termination of his employment, but prior to the receipt by Employee of monies due
him pursuant to the terms hereof. 
 11. Headings. 

The Section and subsection headings contained herein are included solely for convenience of reference and shall not
control or affect the meaning or interpretation of any of the provisions of this Agreement. 
  

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 12. Notices. 

Notice hereunder will be addressed to a party at Employee’s home address in accordance with the Corporation’s
personnel records or its corporate headquarters address. Either party may change its address for notice purposes by written notice to the other party in accordance with this Section 12. 

13. Governing Law. 

This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida
applicable to contracts made and to be performed wholly in that state, without giving effect to the principles thereof relating to conflicts or choice of laws. 

14. Execution in Counterparts. 

This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed to be an original, but
all such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart. 

15. Construction. 

The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties
each afforded the opportunity to utilize representation by legal counsel. Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of same, and any rule of construction that a document
shall be construed against the drafting party shall not be applicable to this Agreement. 
 16. Dispute Resolution.

 Subject to the rights of the Company pursuant to Exhibits A and B herein, any controversy, claim or dispute
arising out of or relating to this Agreement, the breach thereof, or the Employee’s employment by the Company shall be settled by arbitration before one arbitrator. The arbitration will be administered by the American Arbitration Association in
accordance with its National Rules for Resolution of Employment Disputes. The arbitration proceeding shall be confidential, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction. Any such arbitration
shall take place in the Tampa, Florida area, or in any other mutually agreeable location. In the event any judicial action is necessary to enforce the arbitration provisions of this Agreement, sole jurisdiction shall be in the federal and state
courts, as applicable, located in Florida. Any request for interim injunctive relief or other provisional remedies or opposition thereto shall not be deemed to be a waiver of the right or obligation to arbitrate hereunder. The arbitrator shall have
the discretion to award reasonable attorneys’ fees, costs and expenses to the prevailing party. To the extent a party prevails in any dispute arising out of this Agreement or any of its terms and provisions, all reasonable costs, fees and
expenses relating to such dispute, including the parties’ reasonable legal fees, shall be borne by the party not prevailing in the resolution of such dispute, but only to the extent that the arbitrator or court, as the case may be, deems
reasonable and appropriate given the merits of the claims and defenses asserted. 
  

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 17. Corporate Opportunity. 

During the Term, Employee shall submit to the Board all business, commercial and investment opportunities or offers
presented to Employee or of which Employee becomes aware, which relate to the business of the Company at any time during the Term (“Corporate Opportunities”). Unless approved by the Board in writing after full disclosure, Employee
shall not accept or pursue, directly or indirectly, any Corporate Opportunities on Employee’s own behalf. 
 18.
Insurance. 
 The Company may, at its discretion, apply for and procure in its own name and for its own
benefit life and/or disability insurance on Employee in any amount or amounts considered advisable. Employee agrees to cooperate in any medical or other examination, supply any information and execute and deliver any applications or other
instruments in writing as may be reasonably necessary to obtain and constitute such insurance. Employee hereby represents that he has no reason to believe that his life is not insurable at rates now prevailing for healthy men of his age. 

19. Employee’s Representations. 

Employee hereby represents and warrants to the Company that: (i) the execution, delivery and performance of this
Agreement by Employee do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Employee is a party or by which he is bound; (ii) Employee is not a party
to or bound by any employment agreement, non-compete agreement or confidentiality agreement with any other person or entity except as disclosed to the Company prior to the date hereof; and (iii) upon the execution and delivery of this Agreement
by the Company, this Agreement shall be the valid and binding obligation of Employee, enforceable in accordance with its terms. Employee hereby acknowledges and represents that he understands his rights and obligations under this Agreement and that
he fully understands the terms and conditions contained herein. 
  

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 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written. 
  

			
	QUALITY DISTRIBUTION, INC.
		
	By:	 	 /s/ Gary R. Enzor

		 	Gary R. Enzor
		 	Chief Executive Officer
	
	EMPLOYEE:
	
	 /s/ Joseph J. Troy

	Joseph J. Troy

  

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 ANNEX A 

RESTRICTIVE COVENANT 

In consideration of Employee’s employment with the Company, the provision by the Company of trade secrets and confidential
information to Employee, the Company’s introduction to Employee of its clients and customers, and other good and valuable consideration, Employee and Company agree as follows: 

For a period of twelve months after Employee’s employment with the Company terminates, Employee will not engage, either individually
or on behalf of any other person, firm, or entity, in the bulk trucking business, trans-loading, bulk tank cleaning business, logistics business or the transportation brokerage business in any geographic area in which the Company participated in
those businesses during the last twenty-four months prior to Employee’s Termination Date. 
 The above restriction does not
preclude Employee from: (i) owning, operating or managing any business, or being employed by any person, firm or entity in a non-competing organization, or (ii) owning no more than five percent of the equity of any publicly traded entity
in a non-competing organization with respect to which Employee is not an officer, director, employee, consultant, advisor, or agent. 

In addition, Employee acknowledges that irreparable damage would occur in the event of a breach of the provisions of this Restrictive
Covenant by Employee. Therefore, in addition to any other remedy to which it is entitled at law or in equity, the Company shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Restrictive Covenant and to
enforce specifically the terms of such provisions. 
 If any provision of this Restrictive Covenant is found
by any court of competent jurisdiction to be invalid or unenforceable for any reason, such finding shall not affect, impair or invalidate the remainder of this Covenant. Furthermore, if the scope of any restriction or requirement contained in this
Covenant is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted by
law; and any court of competent jurisdiction may so modify
such scope in any proceeding brought to enforce such restriction or requirement. 
 Nothing in this Restrictive Covenant
promises or guarantees Employee employment with the Company and the Company and Employee retain the right to terminate Employee’s employment as provided in the Agreement to which this is an exhibit. 

 

	
	AGREED:
	
	 /s/ Joseph J. Troy

 

			
	DATE:	 	 7-16-2010

 ANNEX B 

INTELLECTUAL PROPERTY PROTECTION AGREEMENT 

In consideration of Employee’s employment with the Company, the provision by the Company of trade secrets and confidential
information to Employee, the Company’s introduction to Employee of its clients and customers, and other good and valuable consideration, Employee and Company agree as follows: 

ARTICLE I 

CONFIDENTIALITY 

Employee will not use or disclose, except (i) on behalf of the Company and in accordance with Employee’s job responsibilities,
or (ii) as required by applicable laws, as ordered by a court or an arbitration tribunal of competent jurisdiction, as required by the SEC or other regulatory organization or agency, or pursuant to a duly authorized and executed subpoena, any
Confidential Information belonging to the Company, including its affiliates and subsidiaries. “Confidential Information” means information or data in written, electronic, or any other form, tangible or intangible, which is not generally
known outside the Company. Confidential Information includes, but is not limited to, 
 (i) business, financial
and strategic information, such as sales and earnings information and trends, material, overhead and other costs, profit margins, accounting information, banking and financing information, pricing policies, capital expenditure/investment plans and
budgets, forecasts, strategies, plans and prospects. 
 (ii) organizational and operational information, such as
personnel and salary data, information concerning the utilization or capabilities of personnel, facilities or equipment, logistics management techniques, methodologies and systems, methods of operation data and facilities plans, and including
specifically the same information with respect to owner/operators and affiliate or Company terminals; 
 (iii)
advertising, marketing and sales information, such as marketing and advertising data, plans, programs, techniques, strategies, results and budgets, pricing and volume strategies, catalog, licensing or other agreements or arrangements, and market
research and forecasts and marketing and sales training and development courses, aids, techniques, instruction and materials. 

(iv) product and merchandising information, such as information concerning offered or proposed products or services and
the sourcing of the same, product or services specifications, data, drawings, designs, performance characteristics, features, capabilities and plans and development and delivery schedules. 

(v) information about existing or prospective customers, suppliers, such as customer and supplier lists and contact
information, customer preference data, purchasing habits, authority levels and business methodologies, sales history, pricing and rebate levels, credit information and contracts. 

 (vi) technical information, such as information regarding plant and
equipment organization, performance and design, information technology and logistics systems and related designs, integration, capabilities, performance and plans, computer hardware and software, research and development objectives, budgets and
results, intellectual property applications, and other design and performance data. 
 (vii) Further, anything
created by the Employee while working for the Company will be property of the Company and be considered as confidential information for the purpose of this article. 

Employee will return to the Company upon termination of employment all property belonging to the Company, including all Confidential Information in a
tangible form. The restriction in this paragraph on using or disclosing Confidential Information extends beyond Employee’s employment with the Company, so long as the Confidential Information is not generally known outside of the Company.

 ARTICLE II 

NON-SOLICITATION 
  

	2.1	Employee will not, for a period of twelve months after Employee’s employment with the Company terminates (the “Non-Solicitation Expiration”), solicit or
make any other contact with, directly or indirectly, any customer of the Company or any of its subsidiaries, who or which was a customer at any time during the twenty-four months prior to Employee’s Termination Date, with respect to the
provision of any service to any such customer that is the same or substantially similar to any offered or provided to such customer by the Company or any of its subsidiaries. 

 

	2.2	Employee will not, prior to the Non-Solicitation Expiration, solicit or make any other contact regarding the Company or any of its subsidiaries with any union or
similar organization which has a collective bargaining agreement, union contract or similar agreement with the Company or any Subsidiary or affiliate or which is seeking to organize employees of the Company or any Subsidiary, with respect to any
employee of the Company or such union’s or similar organization’s relationship or arrangements with the Company or any subsidiary. 

  

	2.3	Employee will not, prior to the Non-Solicitation Expiration, solicit or make any other contact with, directly or indirectly, any person who is an employee or
independent contractor (including, without limitation, any of the Company’s truck drivers, owner/operators, or affiliate terminal operators, or the employees or fleet owners associated with any affiliate terminal operator) of the Company or any
of its subsidiaries or affiliates as or the Employee’s Termination Date (or any person who was employed by the Company or any of its subsidiaries or affiliates at any time during the three-month period prior to the Employee’s Termination
Date) with respect to any employment services or other business relationship. 

  

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 ARTICLE III 

NON-DISPARAGEMENT 
 Employee will
not make or publish, or cause to be made or published, any statement or information that disparages or defames the Company or any of its subsidiaries or affiliates, or any employees or representatives thereof. 

The Company agrees not to make or publish, or cause to be made or published, any statement or information that disparages or defames Employee.

 ARTICLE IV 

MISCELLANEOUS 
  

	4.1	Remedies 

 The parties
acknowledge that irreparable damage would occur in the event of a breach of any of the provisions of this Intellectual Property Protection Agreement. Therefore, in addition to any other remedy to which they are entitled at law or in equity, the
parties shall be entitled to an injunction or injunctions to prevent breaches of such sections of this Intellectual Property Protection Agreement and to enforce specifically the terms and provisions of such sections. 

 

	4.2	Jurisdiction and Governing Law 

This Intellectual Property Protection Agreement shall be governed in accordance with the laws of the State of Florida and the exclusive
jurisdiction for enforcing this agreement shall be the federal or state courts located in Florida. 
  

	4.3	Severability 

 If any
provision of this Intellectual Property Protection Agreement is found by any court of competent jurisdiction to be invalid or unenforceable for any reason, such judgment shall not affect, impair or invalidate the remainder of this Agreement.
Furthermore, if the scope of any restriction contained in this Agreement is too broad to permit enforcement of such restriction or requirement to its full extent, then such restriction or requirement shall be enforced to the maximum extent permitted
by law, and the Employee consents and agrees that any court of competent jurisdiction may so modify such scope in any proceeding brought to enforce such restriction or requirement. 

 

	4.4	Amendments 

 No change,
alteration or modification hereof may be made except in writing, signed by each of the parties hereto. 
  

	4.5	Interpretation 

 The
headings in this Intellectual Property Protection Agreement are for convenience and reference only and shall not be construed as part of this Agreement or to limit or 

 

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otherwise affect the meaning hereof. This Agreement contains all of the terms and conditions agreed upon by the parties and no other agreements, oral or otherwise, exist or shall be binding upon
the parties as to the subject matter hereof. 
  

	4.6	Nothing in this Intellectual Property Protection Agreement promises or guarantees Employee employment with the Company and the Company and Employee retain the right to
terminate Employee’s employment, as provided in the Agreement to which this is an exhibit. 

  

	
	AGREED:
	
	 /s/ Joseph J. Troy

 

			
	 DATE:
	 	 7-16-2010

  

 4Second Supplemental Indenture, dated as of July 22, 2010

 Exhibit 4.23 

THE CHARLES SCHWAB CORPORATION, as Issuer 

and 

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

 
  

4.45% Senior Notes due 2020 
  

 
 Second
Supplemental Indenture 
 Dated as of July 22, 2010 

to 

Senior Indenture dated as of June 5, 2009 

 Table of Contents 

 

					
	 	  	 	  	Page
	 ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	1
	Section 1.01	  	Definitions	  	1
	Section 1.02	  	Conflicts with Base Indenture	  	3
		
	 ARTICLE II FORM OF NOTES
	  	3
	Section 2.01	  	Form of Notes	  	3
		
	 ARTICLE III THE NOTES
	  	4
	Section 3.01	  	Amount; Series; Terms	  	4
	Section 3.02	  	Denominations	  	5
	Section 3.03	  	Execution, Authentication, Delivery and Dating	  	5
	Section 3.04	  	Additional Notes	  	5
		
	 ARTICLE IV OPTIONAL REDEMPTION OF SECURITIES
	  	6
	Section 4.01	  	Optional Redemption	  	6
		
	 ARTICLE V COVENANTS AND REMEDIES
	  	7
	Section 5.01	  	Limitations on Liens	  	7
		
	 ARTICLE VI SUPPLEMENTAL INDENTURES
	  	8
	Section 6.01	  	Supplemental Indentures with Consent of Holders	  	8
		
	 ARTICLE VII MISCELLANEOUS
	  	8
	Section 7.01	  	Sinking Funds	  	8
	Section 7.02	  	Conversion of Notes	  	8
	Section 7.03	  	Confirmation of Indenture	  	8
	Section 7.04	  	Counterparts	  	8
	Section 7.05	  	Governing Law	  	8
	Section 7.06	  	Trustee	  	8
			
	Exhibit A	  	Form of Note	  	A-1

  

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 SECOND SUPPLEMENTAL INDENTURE, dated as of July 22, 2010 (“Supplemental
Indenture”), to the Indenture dated as of June 5, 2009 (as amended, modified or supplemented from time to time in accordance therewith, other than with respect to a particular series of debt securities, the “Base
Indenture” and, as amended, modified and supplemented by this Supplemental Indenture, the “Indenture”), by and among THE CHARLES SCHWAB CORPORATION (the “Company”), and THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as trustee (the “Trustee”). 
 Each party agrees as follows for the benefit of the other party
and for the equal and ratable benefit of the Holders of the Notes: 
 WHEREAS, the Company has duly authorized the execution and
delivery of the Base Indenture to provide for the issuance from time to time of senior debt securities to be issued in one or more series as provided in the Base Indenture; 

WHEREAS, the Company has duly authorized the execution and delivery, and desires and has requested the Trustee to join it in the
execution and delivery, of this Supplemental Indenture in order to establish and provide for the issuance by the Company of a series of Securities designated as its 4.45% Senior Notes due 2020 (the “Notes”), on the terms set forth
herein; 
 WHEREAS, Article IX of the Base Indenture provides that a supplemental indenture may be entered into by the parties
for such purpose provided certain conditions are met; 
 WHEREAS, the conditions set forth in the Base Indenture for the
execution and delivery of this Supplemental Indenture have been met; and 
 WHEREAS, all things necessary to make this
Supplemental Indenture a valid and legally binding agreement of the parties, in accordance with its terms, and a valid and legally binding amendment of, and supplement to, the Base Indenture with respect to the Notes have been done; 

NOW, THEREFORE: 

ARTICLE I 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

Section 1.01 Definitions. Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them
in the Base Indenture. The words “herein”, “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section
hereof. 
 As used herein, the following terms have the specified meanings: 

“Additional Notes” has the meaning specified in Section 3.04 of this Supplemental Indenture. 

 

 1 

 “Base Indenture” has the meaning specified in the recitals of this
Supplemental Indenture. 
 “Business Day” means any day other than (i) a Saturday or Sunday or (ii) a
day on which banking institutions in Los Angeles, California or New York, New York are authorized or obligated by law or executive order to close. 

“Company” has the meaning specified in the recitals of this Supplemental Indenture. 

“Comparable Treasury Issue” means the United States Treasury security or securities selected by the Quotation Agent as
having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt
securities of a comparable maturity to the remaining term of such Notes. 
 “Comparable Treasury Price” means,
with respect to any Redemption Date pursuant to Section 4.01 of this Supplemental Indenture, (A) the arithmetic average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such
Reference Treasury Dealer Quotations, or (B) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the arithmetic average of all such quotations for such Redemption Date. 

“Depositary” means The Depository Trust Company or such other Depositary designated by the Company from time to time.

 “Initial Notes” has the meaning set forth in Section 3.01(b) of this Supplemental Indenture.

 “Interest Payment Date” has the meaning set forth in Section 3.01(d) of this Supplemental Indenture.

 “ISIN” means International Securities Identifying Number. 

“Notes” has the meaning specified in the recitals of this Supplemental Indenture. 

“Permitted Liens” has the meaning set forth in Section 5.01 of this Supplemental Indenture. 

“Primary Treasury Dealer” means a primary U.S. Government securities dealer in the United States. 

“Quotation Agent” means the Reference Treasury Dealer that is selected by the Company in connection with an optional
redemption pursuant to Article IV hereof to act as Quotation Agent in addition to acting as a Reference Treasury Dealer; provided, however, that if such Reference Treasury Dealer ceases to be a Primary Treasury Dealer, the Company will
substitute another Primary Treasury Dealer. 
  

 2 

 “Redemption Date,” when used with respect to any Note, means the date
specified for redemption by the Company. 
 “Redemption Price” means, when used with respect to any Note to be
redeemed, the price at which it is to be redeemed pursuant to this Supplemental Indenture. 
 “Reference Treasury
Dealer” means (i) J.P. Morgan Securities Inc. (or its successor) or any affiliate that is a Primary Treasury Dealer, and (ii) up to two other Primary Treasury Dealers that are selected by the Company; provided,
however, that if any of the foregoing or their affiliates shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date,
the arithmetic average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference
Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Regular
Record Date” has the meaning set forth in Section 3.01(d) of this Supplemental Indenture. 
 “Supplemental
Indenture” has the meaning specified in the recitals of this Supplemental Indenture. 
 “Treasury
Rate” means, with respect to any Redemption Date pursuant to Section 4.01 of this Supplemental Indenture, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated (on a day count basis) of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 

“Voting Securities” has the meaning specified in Section 5.01 of this Supplemental Indenture. 

Section 1.02 Conflicts with Base Indenture. In the event that any provision of this Supplemental Indenture limits, qualifies
or conflicts with a provision of the Base Indenture, such provision of this Supplemental Indenture shall control. 
 ARTICLE II

 FORM OF NOTES 

Section 2.01 Form of Notes. The Notes shall be substantially in the form of Exhibit A hereto which is hereby incorporated in
and expressly made a part of this Indenture. 
  

 3 

 ARTICLE III 

THE NOTES 

Section 3.01 Amount; Series; Terms. (a) There is hereby created and designated a series of Securities under the Base
Indenture: the title of the Notes shall be “4.45% Senior Notes Due 2020”. The changes, modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and govern the
terms of, the Notes and shall not apply to any other series of Securities that may be issued under the Base Indenture unless a supplemental indenture with respect to such other series of Securities specifically incorporates such changes,
modifications and supplements. 
 (b) The aggregate principal amount of Notes that initially may be authenticated and delivered
under this Supplemental Indenture shall be limited to $600,000,000 (the “Initial Notes”), subject to increase as set forth in Section 3.04. 

(c) The Stated Maturity of the Notes shall be July 22, 2020. The Notes shall be payable and may be presented for payment,
redemption, registration of transfer and exchange, without service charge, at the Corporate Trust Office. 
 (d) The Notes shall
bear interest at the rate of 4.45% per annum from and including July 22, 2010, or from the most recent date to which interest has been paid or duly provided for, as further provided in the form of Note annexed hereto as Exhibit A. Interest
shall be computed on the basis of a 360-day year composed of twelve 30-day months. The dates on which such interest shall be payable (each, an “Interest Payment Date”) shall be January 22 and July 22 of each year,
beginning on January 22, 2011, and the “Regular Record Date” for any interest payable on each such Interest Payment Date shall be the close of business on the immediately preceding January 7 and July 7, respectively,
whether or not a Business Day. Interest will be payable to the Holder of record on the Regular Record Date, provided, however, interest payable on the Stated Maturity will be paid to the person to whom the principal will be payable. 

(e) If any Interest Payment Date or the Stated Maturity of the Notes is not a Business Day, then the related payment of interest or
principal payable, as applicable, on such date will be paid on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date or Stated Maturity and no further interest will accrue as a result of such delay.

 (f) The Notes will be issued in the form of one or more Global Securities, duly executed by the Company and authenticated by
the Trustee as provided in Section 3.03 and the Base Indenture and deposited with the Trustee as custodian for the Depositary or its nominee. 

(g) Initially, the Trustee will act as Paying Agent. The Company may change any Paying Agent without notice to the Holders. 

 

 4 

 Section 3.02 Denominations. The Notes shall be issuable only in registered form
without coupons and only in denominations of $1,000 and any multiple of $1,000 in excess thereof. 
 Section 3.03
Execution, Authentication, Delivery and Dating. The Notes shall be executed on behalf of the Company by its Chairman of the Board, its Vice Chairman of the Board, its Chief Executive Officer (or any Co-Chief Executive Officer if the title is
allocated to more than one person), its President, its Chief Financial Officer or its Treasurer, and attested by its Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Notes may be manual or facsimile and
shall not be required to be under the Company’s corporate seal. 
 Notes bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes. 
 Pursuant to a Company Order, the Trustee shall authenticate for original issue Notes
in an aggregate principal amount specified in the Company Order. The Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of Counsel of the Company that it may reasonably request in connection with such authentication of
Notes. Such Company Order shall specify the amount of Notes to be authenticated and the date on which the original issue of Notes is to be authenticated. 

Each Note shall be dated the date of its authentication. 

No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Note
a certificate of authentication substantially in the form provided for in the Base Indenture executed by the Trustee by manual or facsimile signature, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such
Note has been duly authenticated and delivered hereunder. 
 Section 3.04 Additional Notes. The Company may, from
time to time, subject to compliance with any other applicable provisions of this Indenture, without notice to or consent of the Holders of the Notes, create and issue pursuant to this Indenture additional Notes (“Additional Notes”)
having terms and conditions set forth in Exhibit A, identical to the Notes issued on the date hereof, except that Additional Notes may: 

(i) have a different issue date than other Outstanding Notes; 

(ii) have a different issue price than other Outstanding Notes; and 

(iii) have a different amount of interest payable on the first Interest Payment Date after issuance than is payable on
other Outstanding Notes of such series; 
 provided, no Additional Notes shall be issued unless such Additional Notes will be fungible
for U.S. federal income tax and securities law purposes with Notes issued on the date hereof; and provided further, the Additional Notes have the same CUSIP number as the Notes issued on the date hereof. No Additional Notes may be issued if on the
issue date therefor, any Event of Default has occurred and is continuing. 
  

 5 

 The Notes issued on the date hereof and any Additional Notes shall be treated as a single
class for all purposes under this Indenture, including waivers, amendments and United States federal tax purposes. 
 With
respect to any issuance of Additional Notes, the Company shall deliver to the Trustee a resolution of the Board of Directors or, if applicable, a certificate signed by a Designated Officer (as defined in the resolutions of the Board of Directors of
the Company with respect to the December 11, 2008 meeting, as may be amended or supplemented) and an Officers’ Certificate in respect of such Additional Notes, which shall together provide the following information: 

(i) the aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to this Indenture; and 

(ii) the issue date, issue price, amount of interest accrued and payable on the first Interest Payment Date, the first Interest Payment
Date, the CUSIP number and corresponding ISIN of such Additional Notes. 
 ARTICLE IV 

OPTIONAL REDEMPTION OF SECURITIES 

Section 4.01 Optional Redemption. (a) The provisions of Article XI of the Base Indenture, as supplemented by the
provisions of this Supplemental Indenture, shall apply to the Notes. 
 (b) At any time and from time to time, the Notes shall
be redeemable, as a whole or in part, at the Company’s option, on at least 30 days, but not more than 60 days, prior notice mailed to the registered address of each Holder of the Notes to be redeemed, at a Redemption Price equal to the greater
of (i) 100% of the principal amount of the Notes to be redeemed, or (ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of interest and principal thereon (exclusive of interest
accrued and unpaid to, but not including, the Redemption Date) discounted to the Redemption Date on a semiannual basis, assuming a 360-day year consisting of twelve 30-day months, at the Treasury Rate plus 25 basis points, plus, in either case,
accrued and unpaid interest to, but not including, the Redemption Date for such Notes; provided, however, if the Redemption Date is after a Regular Record Date and on or prior to a corresponding Interest Payment Date, such accrued and unpaid
interest will be paid on the Redemption Date to the holder of record on the Regular Record Date. 
  

 6 

 (c) On and after the Redemption Date for such Notes, interest will cease to accrue on such
Notes or any portion thereof called for redemption, unless the Company defaults in the payment of the Redemption Price and accrued interest, if any. On or before the Redemption Date for the Notes, the Company shall deposit with the Trustee or a
Paying Agent, funds sufficient to pay the Redemption Price of the Notes to be redeemed on the Redemption Date, and accrued and unpaid interest, if any, on such Notes. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall
be selected by the Trustee by such method as the Trustee deems fair and appropriate; provided, however, that in no event, shall Notes of a principal amount of $1,000 or less be redeemed in part. 

(d) Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of the
Notes to be redeemed; provided, however, that if the Trustee is asked to give such notice it shall be notified in writing of such request at least 15 days prior to the date of the giving of such notice (unless a shorter notice shall be
satisfactory to the Trustee). Such notice shall state the Redemption Price (if known) or the formula pursuant to which the Redemption Price is to be determined if the Redemption Price cannot be determined at the time the notice is given. If the
Redemption Price cannot be determined at the time such notice is to be given, the actual Redemption Price, calculated as described above in clause (b), shall be set forth in an Officer’s Certificate of the Company delivered to the Trustee no
later than two Business Days prior to the Redemption Date. Notice of redemption having been given as provided in the Indenture, the Notes called for redemption shall become due and payable on the Redemption Date and at the applicable Redemption
Price, plus accrued and unpaid interest, if any, to, but not including, the Redemption Date. 
 ARTICLE V 

COVENANTS AND REMEDIES 

Section 5.01 Limitations on Liens. The Company (or any successor corporation) will not, and will not permit any Subsidiary
to, create, assume, incur or guarantee any indebtedness for borrowed money secured by a pledge, lien or other encumbrance, except for Permitted Liens (defined below), on the Voting Securities (defined below) of Charles Schwab & Co., Inc.,
Charles Schwab Bank, Charles Schwab Investment Management, Inc., or Schwab Holdings, Inc. unless the Company shall cause the Notes to be secured equally and ratably with (or, at the Company’s option, prior to) any indebtedness secured thereby.
“Permitted Liens” means (i) liens for taxes or assessment or governmental charges or levies (a) that are not then due and delinquent, (b) the validity of which is being contested in good faith or (c) which
are less than $1,000,000 in amount; (ii) liens created by or resulting from any litigation or legal proceedings which are currently being contested in good faith by appropriate proceedings or which involve claims of less than $1,000,000;
(iii) deposits to secure (or in lieu of) surety, stay, appeal or customs bonds; and (iv) such other liens as the Board of Directors of the Company determines do not materially detract from or interfere with the present value or control of
the Voting Securities subject thereto or affected thereby. “Voting Securities” means stock of any class or classes having general voting power under ordinary circumstances to elect a majority of the board of directors,
managers or trustees of the corporation in question, provided that, for the purposes hereof, stock which carries only the right to vote conditionally on the happening of an event shall not be considered voting stock whether or not such event
shall have happened. 
  

 7 

 ARTICLE VI 

SUPPLEMENTAL INDENTURES 

Section 6.01 Supplemental Indentures with Consent of Holders. The terms of this Supplemental Indenture may be modified as set
forth in Article IX of the Base Indenture. For the avoidance of doubt, no supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby, reduce the Redemption Price of any Note. 

ARTICLE VII 

MISCELLANEOUS 

Section 7.01 Sinking Funds. Article XII of the Base Indenture shall have no application. The Notes shall not have the benefit
of a sinking fund. 
 Section 7.02 Conversion of Notes. Article XIV of the Base Indenture shall have no application.
The Notes shall not be convertible into shares of Common Stock of the Company. 
 Section 7.03 Confirmation of
Indenture. The Base Indenture, as supplemented and amended by this Supplemental Indenture and all other indentures supplemental thereto, is in all respects ratified and confirmed, and the Base Indenture, this Supplemental Indenture and all
indentures supplemental thereto shall be read, taken and construed as one and the same instrument. 
 Section 7.04
Counterparts. The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement. 

Section 7.05 Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF CALIFORNIA. 
 Section 7.06 Trustee. The Trustee makes no representations as to the
validity or sufficiency of this Supplemental Indenture. The recitals herein are deemed to be those of the Company and not of the Trustee. 
  

 8 

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

					
	
	 THE CHARLES SCHWAB CORPORATION,

as Issuer

		
	By:	 	 /s/ Joseph R. Martinetto

	Name:	 	Joseph R. Martinetto
	Title:	 	Executive Vice President and
Chief Financial Officer
	
	 THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A., as Trustee

		
	 By:
	 	 /s/ Melonee Young

	 Name:
	 	Melonee Young
	Title:	 	Vice President

  

 9 

 EXHIBIT A 

FORM OF NOTE 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN. 

TRANSFERS OF THIS NOTE ARE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 

 

 A-1 

 THE CHARLES SCHWAB CORPORATION 

4.45% Senior Notes due 2020 
  

			
	 No. [    ]
	  	CUSIP No.: 808513AD7
		  	ISIN No.: US808513AD76

 THE
CHARLES SCHWAB CORPORATION, a Delaware corporation (the “Issuer”), for value received promises to pay to CEDE & CO., or its registered assigns, the principal sum of [        ]
DOLLARS, or such lesser amount as is indicated in the records of the Trustee and Depositary, on July 22, 2020. 
 Interest
Payment Dates: January 22 and July 22 (each, an “Interest Payment Date”), commencing on January 22, 2011. 

Interest Record Dates: January 7 and July 7 (each, a “Regular Record Date”). 

Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set
forth at this place. 
 Dated:
[                    ] 
  

 A-2 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officers. 
  

			
	THE CHARLES SCHWAB CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	 Attest:
	 	
	  
  

	 Name:
	 	
	 Title:
	 	

  

 A-3 

 This is one of the Notes of the series designated herein and referred to in the within-mentioned Indenture.

 Dated: 
  

			
	 THE BANK OF NEW YORK MELLON

TRUST COMPANY, N.A., as Trustee

		
	By:	 	  

		 	Authorized Signatory

  

 A-4 

 (REVERSE OF NOTE) 

THE CHARLES SCHWAB CORPORATION 

4.45% Senior Notes due 2020 

1. Interest. 

The Charles Schwab Corporation (the “Issuer”) promises to pay interest on the principal amount of this Note at the rate
per annum described above. Cash interest on the Notes will accrue from the most recent date to which interest has been paid; or, if no interest has been paid, from and including July 22, 2010. Interest on this Note will be paid to but excluding
the relevant Interest Payment Date or on such earlier date as the principal amount shall become due in accordance with the provisions hereof. Interest will be payable to the Holder of record on the Regular Record Date, provided, however, interest
payable on the Stated Maturity will be paid to the person to whom the principal will be payable. The Issuer will pay interest semi-annually in arrears on each Interest Payment Date, commencing January 22, 2011. If any Interest Payment Date or
the Stated Maturity of the Notes is not a Business Day, then the related payment of interest or principal payable, as applicable, on such date will be paid on the next succeeding Business Day with the same force and effect as if made on such
Interest Payment Date or Stated Maturity and no further interest will accrue as a result of such delay. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. 

The Issuer shall pay interest on overdue principal from time to time on demand by the Trustee pursuant to Section 5.3 of the Base
Indenture (defined below) at the rate borne by the Notes and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 

2. Paying Agent. 

Initially, The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) will act as paying agent. The Issuer may
change any paying agent without notice to the Holders. 
 3. Indenture; Defined Terms. 

This Note is one of the 4.45% Senior Notes due 2020 (the “Notes”) issued under the Senior Indenture dated as of
June 5, 2009 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture” and, as amended, modified and supplemented by the Second Supplemental Indenture dated as of July 22, 2010,
the “Indenture”) by and between the Issuer and the Trustee, as trustee. This Note is a “Global Security” and the Notes are “Global Securities” under the Indenture. 

For purposes of this Note, unless otherwise defined herein, capitalized terms herein are used as defined in the Indenture. The terms of
the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”) as in effect on the date on which the Indenture was
qualified under the TIA. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and holders of Notes are referred to the Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and
this Note are inconsistent, the terms of the Indenture shall govern. 
  

 A-5 

 4. Denominations; Transfer; Exchange. 

The Notes are in registered form, without coupons, in denominations of $1,000 and multiples of $1,000 thereafter. A Holder shall register
the transfer or exchange of Notes in accordance with the Indenture. The Issuer may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture. The Issuer need not issue, authenticate, register the transfer of or exchange any Notes or portions thereof for a period of fifteen (15) days before the mailing of a notice of
redemption, nor need the Issuer register the transfer or exchange of any Note selected for redemption in whole or in part, except the unredeemed portion of any Security being redeemed in part. 

5. Amendment; Modification; Waiver. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Securities of all series affected under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount
of the Securities of all series at the time Outstanding affected thereby (voting together as a single class). The Indenture contains provisions permitting the Holders of not less than a majority in aggregate principal amount of the Securities of all
series at the time Outstanding with respect to which an Event of Default under the Indenture shall have occurred and be continuing (voting together as a single class), on behalf of the Holders of all Securities of such affected series, to waive,
with certain exceptions, such past default with respect to all such series and its consequences. The Indenture also permits the Holders of not less than a majority in aggregate principal amount of the Securities of each series at the time
Outstanding affected thereby (voting together as a single class), on behalf of the Holders of all Securities of such affected series, to waive compliance by the Issuer with certain provisions of the Indenture. Any such consent or waiver by the
Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Security issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Note. 
 6. Optional Redemption. 

The Issuer may redeem the Notes in whole or in part, at its option, at any time or from time to time prior to maturity on at least 30
days, but not more than 60 days, prior notice mailed to the registered address of each Holder of the Notes (the “Redemption Date”). The redemption price will be equal to the greater of: 

(i) 100% of the principal amount of the Notes to be redeemed; or 

(ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of interest and principal
thereon (exclusive of interest accrued and unpaid to, but not including, the Redemption Date) discounted to the Redemption Date, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at a rate equal to the sum of the
Treasury Rate plus 25 basis points, 
  

 A-6 

 plus, in either case, accrued interest thereon to, but not including, the Redemption Date; provided,
however, if the Redemption Date is after a Regular Record Date and on or prior to a corresponding Interest Payment Date, such accrued and unpaid interest will be paid on the Redemption Date to the holder of record on the Regular Record Date.

 On and after the Redemption Date for the Notes, interest will cease to accrue on the Notes or any portion thereof called for
redemption, unless the Issuer defaults in the payment of the Redemption Price and accrued interest, if any. On or before the Redemption Date for the Notes, the Issuer shall deposit with the Trustee or a Paying Agent, funds sufficient to pay the
Redemption Price of the Notes to be redeemed on the Redemption Date, and accrued and unpaid interest, if any, on such Notes. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by such method
as the Trustee deems fair and appropriate; provided, however, that in no event, shall Notes of a principal amount of $1,000 or less be redeemed in part. 

Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of the
Notes to be redeemed; provided, however, that if the Trustee is asked to give such notice it shall be notified in writing of such request at least 15 days prior to the date of the giving of such notice (unless a shorter notice shall be
satisfactory to the Trustee). Such notice shall state the Redemption Price (if known) or the formula pursuant to which the Redemption Price is to be determined if the Redemption Price cannot be determined at the time the notice is given. If the
Redemption Price cannot be determined at the time such notice is to be given, the actual Redemption Price, calculated as described above, shall be set forth in an Officer’s Certificate of the Issuer delivered to the Trustee no later than two
Business Days prior to the Redemption Date. Notice of redemption having been given as provided in the Indenture, the Notes called for redemption shall become due and payable on the Redemption Date and at the applicable Redemption Price, plus accrued
and unpaid interest, if any, to, but not including, the Redemption Date. 
 7. Defaults and Remedies. 

If an Event of Default with respect to Notes at the time Outstanding occurs and is continuing, then in every such case the Trustee or the
Holders of not less than 25% in aggregate principal amount of the Securities of all affected series then Outstanding (voting together as a single class) may declare the principal amount of all the Securities of the affected series to be due and
payable immediately, by a notice in writing to the Issuer (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) of and the accrued interest on all the Securities of such affected series
shall become immediately due and payable. 
 The Indenture permits, subject to certain limitations therein provided, Holders of
not less than a majority in aggregate principal amount of the Securities of all affected series (voting together as a single class) at the time Outstanding, to direct the time, method and place of conducting any proceeding for any remedy available
to the Trustee or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series. 
  

 A-7 

 8. Authentication. 

This Note shall not be valid until the Trustee manually or by facsimile signs the certificate of authentication on this Note. 

9. Abbreviations and Defined Terms. 

Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

10. CUSIP Numbers. 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP
numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed hereon.

 11. Governing Law. 

The laws of the State of California shall govern the Indenture and this Note. 

 

 A-8 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

I or we assign and transfer this Note to 

(Print or type assignee’s name, address and zip code) 

(Insert assignee’s soc. sec. or tax I.D. No.) 

and irrevocably appoint                      agent to
transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 
  

 

Date:                        
                                Your
Signature:                             

 
  

Sign exactly as your name appears on the other side of this Note. 
  

					
		  		  	  

	Signature Guarantee:	  		  	Signature
			
	  
	  		  	  

	Signature must be guaranteed	  		  	Signature

 Signatures must be guaranteed
by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the United States Securities Exchange Act of 1934, as amended. 

 

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