Document:

EX-4.1

 Exhibit 4.1 
 FIRST AMERICAN FINANCIAL CORPORATION 
 2010 EMPLOYEE STOCK PURCHASE PLAN

 As Amended and Restated effective July 1, 2013 

 

	1.	Purpose. 

 The purpose of
the Plan is to provide employees of the Corporation and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Corporation through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify
as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent
with the requirements of that section of the Code. 
  

	2.	Definitions. 

 (a)
      “Board” shall mean the Board of Directors of the Corporation. 
 (b)
      “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (c)
      “Common Stock” shall mean the Common Stock of the Corporation. 
 (d)
      “Committee” shall mean the Corporation’s Administrative Benefits Plan Committee. 
 (e)       “Company” shall mean the Corporation, and any Designated Subsidiary of the Company. 

(f)       “Corporation” shall mean First American Financial Corporation, a Delaware
corporation. 
 (g)       “Compensation” shall mean an Employee’s base pay,
inclusive of overtime and any employer paid leave, and all types of cash bonuses or commissions. Compensation also includes any amounts contributed as salary reduction contributions to a plan qualifying under Section 401(k), 125 or 129 of the
Code. Any other form of remuneration is excluded from Compensation, including (but not limited to) the following: severance pay, prizes, relocation or housing allowances, stock option exercises, stock appreciation right payments, the vesting or
grant of restricted stock, the payment of stock units, performance awards, auto allowances, tuition reimbursement, perquisites, non-cash compensation and other forms of imputed income. Notwithstanding the foregoing, Compensation shall not include
any amounts deferred under or paid from any nonqualified deferred compensation plan maintained by the Company. The Committee shall have the authority to determine and approve all forms of pay to be included in the definition of Compensation,
including the forms of pay to be included in Compensation for Designated Subsidiaries and Employees outside of the United States, and may change the definition of Compensation on a prospective basis, so long as any such determination, approval or
change is consistent with Section 423(b)(5) of the Code. 

 (h)       “Designated Subsidiary” shall mean
any Subsidiary which has been designated by the Committee from time to time in its sole discretion as eligible to participate in the Plan. 
 (i)       “Employee” shall mean any individual who is an employee of the Company for tax purposes on the first day of an Offering Period, or who becomes such
an employee of the Company during an Offering Period prior to the Exercise Date of the Offering Period. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on military leave, sick leave
or other bona fide leave of absence approved by the Company. Where the period of leave exceeds ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship
shall be deemed to have terminated on the 91st day of such leave. 
 (j)       “Exercise
Date” shall mean the last day of each Offering Period. 
 (k)       “Fair Market
Value” shall mean, unless otherwise determined or provided by the Committee in the circumstances consistent with Section 423(b)(5) of the Code, the closing price (in regular trading) for a share of Common Stock as furnished by the New
York Stock Exchange for the Exercise Date (or any other applicable date) or, if no sales of Common Stock were reported by the New York Stock Exchange on that date, the closing price (in regular trading) for a share of Common Stock as furnished by
the New York Stock Exchange for the next preceding day on which sales of Common Stock were reported by the New York Stock Exchange. 
 (l)       “Grant Date” shall mean the first day of the applicable Offering Period. 
 (m)       “Offering Period” shall mean a period of approximately one (1) calendar quarter during which an option granted pursuant to the Plan may be
exercised. The first Offering Period under the amended and restated Plan will commence on July 1, 2013 and terminate on the last Trading Day in the quarter ended September 30, 2013. Thereafter, subsequent Offering Periods, if any, will
commence on the first Trading Day of each calendar quarter and terminate on the last Trading Day of that quarter. The duration of Offering Periods may be changed pursuant to Section 4 of this Plan. 

(n)       “Plan” shall mean this 2010 Employee Stock Purchase Plan, as amended and
restated. 
 (o)       “Purchase Price” shall mean an amount equal to 85% of the
lesser of the Fair Market Value of a share of Common Stock on the Grant Date of that Offering Period or the Fair Market Value of a share of Common Stock on the Exercise Date of that Offering Period, provided, however, that the Board,
the Committee or Corporation’s Chief Executive Officer may provide prior to the start of any Offering Period that the Purchase Price for that Offering Period shall be determined by applying a discount amount (not to exceed 15%) to either
(1) the Fair Market Value of a share of Common Stock on the Grant Date of that Offering Period, or (2) the Fair Market Value of a share of Common Stock on the Exercise Date of that Offering Period, or (3) the lesser of the Fair Market
Value of a share of Common Stock on the Grant Date of that Offering Period or the Fair Market Value of a share of Common Stock on the Exercise Date of that Offering Period. The Purchase Price may be adjusted by the Board, the Committee or the
Corporation’s Chief Executive Officer pursuant to Section 19. 

  
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 (p)       “Subsidiary” shall mean a
corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Corporation or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Corporation or a Subsidiary. In
all cases the determination of whether an entity is a Subsidiary shall be made in accordance with Section 424(f) of the Code. 
 (q)       “Trading Day” shall mean a day on which national stock exchanges are open for trading. 

 

	3.	Eligibility. 

 (a)
      Any Employee who is at least eighteen (18) years of age and who shall be employed by the Company on the Grant Date shall be eligible to participate in the Plan for that Offering Period. The Committee may, in
its discretion, determine that, Employees whose customary employment is for not more than twenty (20) hours per week and/or five (5) months in any calendar year are not eligible to participate in the Plan. In addition, the Committee may
also exclude Employees who are citizens or residents of a foreign jurisdiction (without regard to whether they are also citizens of the United States or resident aliens) from participating in the Plan for any applicable Offering Period if the grant
of an option to such an Employee is prohibited under the laws of the foreign jurisdiction or if compliance with the laws of the foreign jurisdiction would cause the Plan to violate the provisions of Section 423 of the Code. 

(b)       Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an
option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock and/or hold
outstanding options to purchase capital stock of the Corporation or of any Subsidiary possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Corporation or of any Subsidiary
then issued and outstanding, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans of the Corporation or of any Subsidiary accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000)
worth of stock (determined at the Fair Market Value of the shares at the time such option is granted (generally, the Grant Date)) for each calendar year in which such option is outstanding at any time, in accordance with Section 423(b)(8) of
the Code. 
  

	4.	Offering Periods. 

 The
Plan shall be implemented by consecutive quarterly Offering Periods with the first offering period under the amended and restated Plan commencing on July 1, 2013, or on such other date as the Committee shall determine, and continuing thereafter
until terminated in accordance with Section 19 hereof. The Committee or Corporation’s Chief Executive Officer shall have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future
offerings without stockholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter and the duration of the Offering Period complies with
Section 423(b)(7) of the Code. 

  
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	5.	Participation. 

 (a)
      An eligible Employee may become a participant in the Plan by completing such electronic or written enrollment form(s) or procedure(s) as the Committee may require from time to time, on or before the date
designated by the Committee. 
 (b)       Payroll deductions for a participant shall commence on
the first payroll following the first day of the Offering Period and shall end on the last payroll in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof.

  

	6.	Payroll Deductions. 

 (a)
      At the time a participant enrolls in the Plan, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amount not exceeding fifteen percent (15%) (or such other
limit as the Committee or Corporation’s Chief Executive Officer may establish prior to the start of the applicable Offering Period) of the Compensation which he or she receives on each pay day during the Offering Period. Unless otherwise
provided by the Committee, payroll deductions may be made on the basis of a percentage of compensation (in whole percentages only). The Committee may, however, require or permit deductions to be expressed as flat dollar contributions, which
contributions shall not exceed $7,000 per Offering Period (or such other limit as the Committee or Corporation’s Chief Executive Officer may establish prior to the start of the applicable Offering Period). 

(b)       All payroll deductions made for a participant shall be credited to his or her account under the
Plan. A participant may not make any additional payments into such account. 
 (c)       A
participant may discontinue his or her participation in the Plan as provided in Section 10 hereof, or may increase or decrease the rate of his or her payroll deductions by completing or filing with the Committee, pursuant to such administrative
procedures as may be implemented by the Committee from time to time, a new enrollment form authorizing a change in payroll deduction rate. The Committee may, in its discretion and in a uniform manner applied to all participants, limit the number of
participation rate changes during any Offering Period. The change in rate shall be effective with the first full payroll period following the administrative deadline established by the Committee. A participant’s enrollment in the Plan shall
remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof. 
 (d)
      Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be refunded to the participant, or
decreased to zero percent (0%), at any time. 
 (e)       At the time the option is exercised, in
whole or in part, or at the time some or all of the Corporation’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if
any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet
applicable withholding obligations, if any. 

  
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	7.	Grant of Option. 

 On the
Grant Date, each participant shall be granted an option to purchase on the Exercise Date of such Offering Period (at the applicable Purchase Price) up to a number of shares of the Corporation’s Common Stock determined by dividing such
Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that (a) the maximum number of shares that may
be purchased by an Employee with respect to an Offering Period is 1,000 shares and (b) such purchase shall also be subject to the limitations set forth in Sections 3(b) and 13 hereof. The Committee or Corporation’s Chief Executive
Officer shall have the power to amend, in a uniform manner applicable to all participants, the individual award limit contained in clause (a) of the preceding sentence without stockholder approval effective no earlier than the first Offering
Period commencing after the adoption of such amendment. All participants shall receive an option with the same rights and privileges within the meaning of Section 423(b)(5) of the Code. Exercise of the option shall occur as provided in
Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof. The Option shall expire on the last day of the Offering Period (including any shortened Offering Period pursuant to Section 18). 

 

	8.	Exercise of Option. 

Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of shares subject to the option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. Shares
purchased shall be full or fractional shares as determined by the Committee. If the Committee determines not to permit the issuance of fractional shares, unless the Committee elects to refund any amounts representing a fractional share, any amounts
representing a fractional share that have been credited to a participant’s account shall be carried forward to the next Offering Period, subject to the participant’s right to withdraw from the Plan as provided in Section 10 hereof.
During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  

	9.	Delivery. 

 As promptly
as practicable after each Exercise Date on which a purchase of shares occurs, the Corporation shall arrange the delivery to each participant, as appropriate, of the shares purchased upon exercise of his or her option. Delivery of such shares shall
be made either by delivering one or more certificates for such shares or by entering such shares in book entry form, as determined by the Corporation in its discretion. 

 

	10.	Withdrawal. 

 (a)
      A participant may withdraw from the Plan and receive a refund of the payroll deductions credited to his or her account at any time by giving notice to the Committee on the form designated by the Committee, or
pursuant to such administrative procedures as may be implemented by the Committee from time to time, on or before the date designated by the Committee. If a participant withdraws from the Plan, payroll deductions shall not resume at the

  
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beginning of the succeeding Offering Period unless the participant delivers to the Committee a new enrollment form as provided in Section 5. 

(b)       A participant’s withdrawal from the Plan shall not have any effect upon his or her
eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws. 

 

	11.	Termination of Employment. 

 Upon a participant’s ceasing to be an eligible Employee for any reason, he or she shall, subject to Section 10, continue to participate in the Offering Period during which such cessation occurs
until the earlier of the next Exercise Date following such cessation or the date that is three months following such cessation, provided, however, that no additional payroll deductions or other amounts shall be credited to such participant’s
account following the date the participant ceases to be an eligible Employee. If as a result of the three month limitation in the preceding sentence, a participant ceases to be eligible to participate in an Offering Period before the Exercise Date
for that Offering Period, the participant shall receive a refund of the payroll deductions credited to his or her account and the participant’s outstanding options shall terminate. Such cessation shall occur immediately upon the date a
participant ceases to be an eligible Employee if the end of the Offering Period then in effect is scheduled to occur more than three months after the date a participant ceases to be an eligible Employee. For purposes of the Plan, if a Designated
Subsidiary ceases to be a Subsidiary, each person employed by that Subsidiary will be deemed to have terminated employment for purposes of the Plan on the date that the Designated Subsidiary ceased to be a Subsidiary, unless the person continues as
an employee of the Corporation or another Designated Subsidiary. 
  

	12.	Interest. 

 No interest
shall accrue on the payroll deductions of a participant in the Plan. 
  

	13.	Stock. 

 (a)
      Subject to adjustment upon changes in capitalization of the Corporation as provided in Section 18 hereof, the maximum number of shares of the Corporation’s Common Stock which shall be made available for
sale under the Plan shall be five million (5,000,000) shares. If, on a given Exercise Date, the number of shares with respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Corporation shall
make a pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable. 
 (b)       The participant shall have no interest or dividend or voting rights with respect to shares covered by his or her option until such option has been exercised and
shares have been delivered pursuant to Section 9 hereof. 
 (c)       Shares to be delivered
to a participant under the Plan shall be registered in the name of the participant. 

  
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	14.	Administration. 

 The
Plan shall be administered by the Committee. The Committee shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the
Plan. Every finding, decision and determination made by the Committee shall, to the full extent permitted by law, be final and binding upon all parties. The Committee may delegate the routine day-to-day administration of the Plan to other persons or
organizations, including to any employee of the Company. Notwithstanding the foregoing, any rights or responsibilities given to the Committee under the Plan may be exercised by the Board, in its discretion. 

 

	15.	Transferability. 

Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will or the laws of descent and distribution) by the participant. Any such attempt at assignment, transfer, pledge or other disposition
shall be without effect, except that the Corporation or Committee may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10 hereof. 

 

	16.	Use of Funds. 

 All
payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 

 

	17.	Reports. 

 Individual
accounts shall be maintained for each participant in the Plan. Electronic or written statements of account, as determined by the Committee or its designee from time to time, shall be given to participating Employees at least annually, which
statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any. 
  

	18.	Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale. 

(a)       Changes in Capitalization. Upon (or, as may be necessary to effect the adjustment,
immediately prior to): any reclassification, recapitalization, stock split (including a stock split in the form of a stock dividend) or reverse stock split; any merger, combination, consolidation, or other reorganization; any spin-off, split-up, or
similar extraordinary dividend distribution in respect of the Common Stock; or any exchange of Common Stock or other securities of the Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the Common Stock; then
the Committee shall equitably and proportionately adjust (1) the number and type of shares of Common Stock (or other stock) that thereafter may be made the subject of options (including the share limit set forth in Section 13 and the
maximum number of shares each participant may purchase per Offering Period set forth in Section 7), (2) the number, amount and type of shares of Common Stock (or other stock) subject to any outstanding options,

  
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(3) the Purchase Price of any outstanding options, and/or (4) the stock deliverable upon exercise of any outstanding options, in each case to the extent necessary to preserve (but not
increase) the level of incentives intended by the Plan and the then-outstanding options. It is intended that any adjustments contemplated by this paragraph be made in a manner that satisfies applicable U.S. legal, tax (including, without limitation,
Section 424 of the Code) and accounting (so as to not trigger any charge to earnings with respect to such adjustment) requirements. Without limiting the generality of Section 14, any good faith determination by the Committee as to whether
an adjustment is required in the circumstances pursuant to this Section 18(a), and the extent and nature of any such adjustment, shall be conclusive and binding on all persons. 

(b)       Dissolution or Liquidation. Upon the occurrence of the proposed dissolution or liquidation
of the Corporation, the Offering Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless provided otherwise by the Committee. The New Exercise Date shall be before the date of the Corporation’s proposed dissolution or liquidation. The Committee shall notify each participant, at least ten (10) days prior to
the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10 hereof. 
 (c)
      Corporate Transactions. Upon the occurrence of any of the following: any merger, combination, consolidation, or other reorganization in connection with which the Corporation does not survive (or does not
survive as a public company in respect of its Common Stock); any exchange of Common Stock or other securities of the Corporation in connection with which the Corporation does not survive (or does not survive as a public company in respect of its
Common Stock); a sale of all or substantially all the business, stock or assets of the Corporation in connection with which the Corporation does not survive (or does not survive as a public company in respect of its Common Stock); or any other
similar event in which the Corporation does not survive (or does not survive as a public company in respect of its Common Stock), the Committee may make provision for the assumption, substitution, or exchange of the outstanding options based upon,
to the extent relevant under the circumstances, the distribution or consideration payable to holders of the Common Stock upon or in respect of such event. Upon the occurrence of any event described in the preceding sentence, unless the Committee has
made a provision for the assumption, substitution, exchange or other continuation or settlement of the outstanding options or the outstanding options would otherwise continue in accordance with their terms in the circumstances, the Offering Period
then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”). The New Exercise Date shall be before the date of the transaction described in this Section 18(c). The Committee shall notify each
participant, at least ten (10) days prior to the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on
the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

  
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	19.	Amendment or Termination. 

(a)       The Board, Chief Executive Officer and/or the Committee may at any time and for any reason
suspend, terminate or amend the Plan. Except as provided in Section 18, no such termination shall adversely affect options previously granted, provided that an Offering Period may be terminated by the Board, Committee or Corporation’s
Chief Executive Officer on any Exercise Date if the Board, Committee or Corporation’s Chief Executive Officer determines that the termination of the Offering Period or the Plan is in the best interests of the Corporation and its stockholders.
Except as provided in Section 18 and Section 19, no amendment may make any change in any option theretofore granted which materially adversely affects the rights of any participant. To the extent necessary to comply with Section 423
of the Code (or any other applicable law, regulation or stock exchange rule), the Corporation shall obtain shareholder approval of any suspension, termination, or amendment of the Plan in such a manner and to such a degree as required. 

(b)       Without stockholder consent and without regard to whether any participant rights may be
considered to have been “adversely affected”: 
 (i)       the Committee shall be
entitled to add or delete Designated Subsidiaries to be eligible to participate in the Plan, exclude Employees from being eligible to participate in the Plan pursuant to Section 3, limit the frequency and/or number of changes in the amount
withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or
mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Committee determines in its sole discretion advisable which are consistent with the
Plan; and 
 (ii)       prior to the start of any Offering Period, the Committee or the
Corporation’s Chief Executive Officer may change the Offering Periods, change the Purchase Price, change the maximum number of shares that may be purchased by an Employee with respect to an Offering Period, and may add, change or eliminate any
holding period. 
 (c)       In the event the Board, Committee or Corporation’s Chief
Executive Officer determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board, Committee or Corporation’s Chief Executive Officer may, in its discretion and, to the extent necessary
or desirable in a manner consistent with the requirements of Section 423 of the Code, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited to: 

(i)       alter the Purchase Price for any Offering Period including an Offering Period underway at the
time of the change in Purchase Price; 
 (ii)       shorten any Offering Period so that Offering
Period ends on a new Exercise Date, including an Offering Period underway at the time of the action; and/or 

  
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 (iii)       allocate shares. 

Such modifications or amendments shall not require stockholder approval or the consent of any Plan participants. 

 

	20.	Notices. 

 All notices or
other communications by a participant to the Company or Committee under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Committee pursuant to such administrative procedures as may be
implemented by the Committee from time to time (or in writing to the extent no other applicable notice procedures are then in effect). 
  

	21.	Conditions Upon Issuance of Shares. 

 (a)       Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply
with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of counsel for the Corporation with respect to such compliance if such approval is determined to be necessary or advisable by
the Corporation. 
 (b)       Holding Period after Exercise of Option. The Committee or the
Corporation’s Chief Executive Officer, at its sole discretion, may add, change or eliminate a holding period prior to the start of any Offering Period. 
  

	22.	Term of Plan. 

 This
amendment and restatement of the Plan shall become effective July 1, 2013, subject to approval by the stockholders of the Corporation within twelve months after this amendment and restatement is adopted. It shall continue in effect for a term
of ten (10) years unless sooner terminated under Section 19 hereof. An Offering Period may commence under the Plan prior to the approval of the Plan by the stockholders of the Corporation, provided that all options granted in any such
Offering Period shall be subject to the approval of the Plan by the stockholders of the Corporation and such options shall terminate (and payroll deductions previously credited shall be refunded) if such stockholder approval is not obtained.

  

	23.	Governing Law. 

 This
Plan shall be governed by the laws of the State of Delaware. 
  

	24.	No Enlargement of Employee Rights. 

 Nothing contained in this Plan shall be deemed to give any Employee the right to be retained in the employ of the Corporation or any Designated Subsidiary, or to interfere with the right of the
Corporation or Designated Subsidiary to discharge any Employee at any time. 

  
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	25.	Rules for Foreign Jurisdictions. 

 The Committee may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures, consistent with the requirements
under Section 423(b)(5) of the Code. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions, payment of interest, conversion of local
currency, payroll tax, withholding procedures and handling of stock certificates which vary with local requirements. 
 The
Committee may also adopt sub-plans applicable to particular Subsidiaries, which sub-plans may be designed to be outside the scope of Code section 423. The rules of such sub-plans may take precedence over other provisions of this Plan, with the
exception of Section 13, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan. 
  

	26.	Separate Offerings 

 To
the extent that employees of the Corporation and one or more Subsidiaries are eligible to participate in any Offering Period, the offering of options to the eligible employees of the Corporation and each Subsidiary shall be treated as separate
offerings under the Plan. 
  

	27.	Notice of Sale 

 Any
person who has acquired shares under the Plan shall give prompt written notice to the Corporation of any sale or other transfer of the shares if such sale or transfer occurs (1) within the two-year period after the Grant Date of the option with
respect to which such shares were acquired, or (2) within the twelve-month period after the Exercise Date of the Offering Period with respect to which such shares were acquired. 

 

	28.	Additional Restrictions of Rule 16b-3. 

 The terms and conditions of options granted hereunder to, and the purchase of shares of Common Stock by, persons subject to Section 16 of the Securities Exchange Act of 1934, as amended, shall comply
with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall contain, and the shares of Common Stock issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may
be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Securities Exchange Act of 1934, as amended, with respect to Plan transactions. 

 

	29.	Equal Rights and Privileges. 

 All eligible Employees shall have equal rights and privileges with respect to the Plan so that the Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 of
the Code and the related Treasury regulations. Any provision of the Plan which is inconsistent with Section 423 of the Code shall without further act or amendment by the Corporation or the Committee be reformed to comply with the requirements
of Section 423. This Section shall take precedence over all other provisions of the Plan. 

  
 11EX-4.31

 Exhibit 4.31 
 THE CHARLES SCHWAB CORPORATION, as Issuer 
 and 

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

 
  

2.20% Senior Notes due 2018 
  

 
 Fifth
Supplemental Indenture 
 Dated as of July 25, 2013 

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	  

  
 i 

 FIFTH SUPPLEMENTAL INDENTURE, dated as of July 25, 2013 (“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 2.20% Senior Notes due 2018 (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. 

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

“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 to be
redeemed, 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) Credit Suisse Securities (USA) LLC (or its successor) or any affiliate that is a Primary Treasury Dealer, (ii) J.P. Morgan Securities LLC
(or its successor) or any affiliate that is a Primary Treasury Dealer and (iii) up to two other Primary Treasury Dealers that are selected by the Company; provided, however, that if any of the foregoing or their affiliates 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 “2.20% Senior Notes Due 2018”. 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 $275,000,000 (the “Initial Notes”), subject to increase as set forth in Section 3.04 of this
Supplemental Indenture. 
 (c) The Stated Maturity of the Notes shall be July 25, 2018. 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 2.20% per annum from and including July 25, 2013, 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 25 and July 25 of each year, commencing on January 25, 2014, 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 10 and July 10, 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 of this Supplemental Indenture 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 Chief Executive Officer, 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 provided with 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 this Supplemental Indenture,
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

  
 5 

 
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. 

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 the Chairman of the Board of Directors of the Company, the Chief Executive Officer, the Chief Financial Officer or the Treasurer
of the Company 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, the first Interest Payment Date, the amount of interest accrued and payable on 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) Prior to June 25, 2018, 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 15 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. 

(c) On or after June 25, 2018, 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 100% of the principal amount of the notes to be redeemed plus accrued and unpaid interest to,
but not including, the Redemption Date for such Notes. 

  
 6 

 (d) 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 in accordance with the procedures of the Depositary; provided, however, that in no event, shall Notes of a principal amount of $1,000 or less be redeemed in part. 
 (e) 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) or (c), 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 

  
 7 

 
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. 

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 

2.20% Senior Notes due 2018 
  

			
	 No. [    ]
	  	 CUSIP No.: 808513 AJ4
 ISIN No.: US808513AJ47

 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 25, 2018. 
 Interest Payment Dates: January 25 and July 25 of each year
(each, an “Interest Payment Date”), commencing on January 25, 2014.  
 Interest Record Dates:
January 10 and July 10 (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: Joseph R. Martinetto
		 	Title: Executive Vice President and Chief
		 	          Financial Officer

  

	
	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 
 2.20% Senior Notes due 2018 

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 25, 2013. 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 25, 2014. 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 2.20% Senior Notes
due 2018 (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 Fifth Supplemental Indenture dated as of July 25, 2013, 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 

  
 A-5

 
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. 

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”). 

 If any or all of the Notes are redeemed before June 25, 2018, 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 

  
 A-6

 
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 15 basis points, 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. 
 If any or all of the Notes are redeemed on or after June 25,
2018, the redemption price will be equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but not including, the Redemption Date for such Notes. 

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 in accordance with the procedures of the
Depositary; 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. 

  
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 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. 
 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. 

This Note and the Indenture shall be governed by, and construed in accordance with, the laws of the State of California. 

  
 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                     as 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. 

  
 A-9

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