Document:

Amended Executive Change in Control and Severance Benefit Plan

 Exhibit 10.67 
 NUVELO, INC. 
 EXECUTIVE CHANGE IN CONTROL AND SEVERANCE BENEFIT PLAN 
 As Amended August 1, 2007 (the “Amendment Date”). 
  

	1.	INTRODUCTION 

 The Nuvelo, Inc.
Executive Change in Control and Severance Benefit Plan (the “Plan”), as established effective December 14, 2004 (the “Effective Date”) and amended from time to time, is intended to provide for the payment of severance
benefits and/or change in control benefits to certain eligible employees of Nuvelo, Inc. and its wholly owned subsidiaries (collectively, “Nuvelo”). The Plan supersedes and replaces in its entirety any change in control and/or severance
arrangement adopted by Nuvelo. This Plan also is intended to supersede any unwritten severance plan, policy, or practice of Nuvelo and any unwritten change of control plan, policy or practice of Nuvelo. However, except as provided herein, this Plan
does not supersede any written agreement between Nuvelo and any employee that provides for payments or benefits in the event of termination of employment or a change in control of Nuvelo. This Plan may, however, provide for certain offsets or
reduction of benefits under this Plan on account of such other benefits. This document also is the Summary Plan Description for the Plan. 
  

	2.	DEFINITIONS. 

 For purposes of the
Plan, the following terms are defined as follows: 
 (a) “Alternative Benefits” means Covered Benefits that are provided by
a program, plan, agreement, or arrangement other than this Plan. Accordingly, for example, an “Alternative Cash Severance Benefit” means a Cash Severance Benefit that is an Alternative Benefit and an “Alternative Continued Medical
Benefit” means a Continued Medical Benefit that is an Alternative Benefit. Notwithstanding the foregoing, a benefit that is designated an Alternative Benefit in a Participant’s Participation Notice shall be deemed to be an Alternative
Benefit with respect to such Participant, and a benefit that is designated as not an Alternative Benefit in a Participant’s Participation Notice shall not be deemed to be an Alternative Benefit with respect to such Participant. Any benefit
provided to a Participant other than by this Plan which is not addressed in the Participant’s Participation Notice shall be deemed to be an Alternative Benefit if such benefit is described in the first sentence of this Section 2(a).

 (b) “Base Salary Amount” means the greater of (i) the Participant’s base salary as determined on a monthly
basis at the time of the Covered Termination multiplied by twelve (12), or (ii) the greatest amount of base salary received by the Participant in any consecutive twelve (12) month period that occurred within the thirty-six (36) month
period immediately preceding the Covered Termination. For clarity purposes, any amount that a Participant elects to have withheld from the Participant’s base salary, for example, contributions to any current or future plan qualified under
Section 401(k) of the Code or any nonqualified deferred compensation plan (collectively “Elective Deferral Plans”) shall not reduce the Participant’s Base Salary Amount. 

 (c) “Base Severance Benefit” means the Participant’s Base Salary Amount. Except as
may be set forth in the Participant’s Participation Notice, in the event the Participant has received, or is entitled to and has not waived, an Alternative Cash Severance Benefit, the Base Severance Benefit shall be reduced (but not below zero)
by the amount of the Alternative Cash Severance Benefit. 
 (d) “Board” means the Board of Directors of Nuvelo. 

(e) “Bonus Amount” means the highest level of Bonuses Received by the Participant in any consecutive eleven (11) month period
that occurred within the thirty-six (36) month period immediately preceding the Covered Termination. “Bonuses Received” means any cash bonuses paid to a Participant pursuant to a cash bonus plan or program and shall not include, for
example, amounts received pursuant to restricted stock, restricted stock units, or stock appreciation rights whether or not such awards are paid or settled in cash. 
 (f) “Bonus Severance Benefit” means the Participant’s Bonus Amount. Except as may be set forth in the Participant’s Participation Notice, in the event the Participant has received, or is
entitled to and has not waived, an Alternative Cash Severance Benefit, the Bonus Severance Benefit shall be reduced (but not below zero) by the amount of the excess, if any, of Alternative Cash Severance Benefit over the Base Severance Benefit.

 (g) “Change in Control” is defined as one or more of the following events: 
 (i) there is consummated a sale or other disposition of all or substantially all of the assets of Nuvelo, as determined on a
consolidated basis (other than a sale to an entity where at least fifty percent (50%) of the combined voting power of the voting securities of such entity are owned by the stockholders of Nuvelo immediately after such sale or other disposition
in substantially the same proportions as their ownership of Nuvelo immediately prior to such sale or other disposition); or 
 (ii) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) Nuvelo, and, immediately after the consummation of such transaction, the stockholders of Nuvelo immediately prior to the
consummation of such transaction do not directly or indirectly own, immediately after the consummation of such transaction, outstanding voting securities representing at least fifty percent (50%) of the combined outstanding voting power of the
surviving entity in such transaction or at least fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such transaction, in each case in substantially the same proportions as their ownership of
Nuvelo immediately prior to such transaction; or 
 (iii) any person, entity or group (other than Nuvelo, a subsidiary
or affiliate of Nuvelo, or a Nuvelo employee benefit plan, including any trustee of such plan acting as trustee) becomes the beneficial owner, directly or indirectly, of securities of Nuvelo representing at least fifty percent (50%) of the
combined voting power of Nuvelo’s then-outstanding securities, other than by virtue of a merger, consolidation or similar transaction; or 

 (iv) the individuals who, at the beginning of any period of twelve
(12) months or less, constituted the Board of Directors of Nuvelo cease, for any reason, to constitute at least a majority thereof, unless the election or nomination for election of each new director was approved by the vote of at least a
majority of the directors then still in office who were directors at the beginning of such period. 
 (h) “Change in Control
Severance” means any Covered Termination of a Participant that occurs during the one (1) month prior to or during the twelve (12) months after a Change in Control. 
 (i) “Code” means the Internal Revenue Code of 1986, as amended. 
 (j) “Constructive Termination” means the Participant’s resignation from all positions he or she then holds with Nuvelo if one or
more of the following events occur without the Participant’s express written consent: 
 (i) the assignment to the
Participant of duties or responsibilities that results in a material diminution in the Participant’s authority, duties, position, status, or responsibilities with Nuvelo as in effect at any time during the twelve (12) month period
preceding such assignment; 
 (ii) a material reduction in the Participant’s base salary; 
 (iii) a change in the Participant’s business location that results in a round trip increase in the Participant’s daily
commute of more than 35 miles, except for required travel for Nuvelo’s business to an extent substantially consistent with Participant’s prior business travel obligations; 
 (iv) a material breach by Nuvelo of any provisions of the Plan or any enforceable written agreement between Nuvelo and the
Participant; or 
 (v) any failure by Nuvelo to obtain assumption of the Plan by any successor to, or assignee of,
Nuvelo. 
 Notwithstanding the foregoing, a voluntary termination shall not be deemed a Constructive Termination unless (x) the
Participant provides Nuvelo with written notice (the “Constructive Termination Notice”) that the Participant believes that an event described in this Section 2(j) has occurred, (y) the Constructive Termination Notice is given
within thirty (30) days after the date the event occurred, and (z) Nuvelo does not rescind or cure the conduct giving rise to the event described in this Section 2(j) within thirty (30) days of receipt by Nuvelo of the
Constructive Termination Notice, in which case the date of Constructive Termination shall be deemed the date on which that thirty (30) day period expires. 
 (k) “Continuation Period” means the twelve (12) month period running from the date of the Covered Termination. 
 (l) “Continued Medical Benefits” means the Nuvelo’s contributions toward the cost of continuation coverage under COBRA as provided under Sections 5(c) and 6(d). 

 (m) “Covered Benefits” means the following benefits: (i) Base Severance Benefit,
(ii) Bonus Severance Benefit, (iii) Continued Medical Benefits and (iv) accelerated vesting of Nuvelo Stock Awards. 
 (n)
“Covered Termination” means an Involuntary Termination Without Cause or a Constructive Termination. Termination of employment of a Participant due to death or disability shall not constitute a Covered Termination unless a voluntary
termination of employment by the Participant immediately prior to the Participant’s death or disability would have qualified as a Constructive Termination. 
 (o) “Eligible Employee” means all executive employees at the level of Vice President of Nuvelo or above. In addition to the foregoing, “Eligible Employee” means any other current or former
employee of Nuvelo (x) who has been designated by the Board as eligible for benefits under the Plan and (y) whose highest seniority level was at least the equivalent of a Vice President; provided, however, that the Board shall not
designate more than ninety-nine (99) persons as Eligible Employees at any one time. 
 (p) “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended. 
 (q) “Involuntary Termination Without Cause” means an involuntary
termination of employment by Nuvelo other than for one of the following reasons: 
 (i) a refusal or failure to follow
the lawful and reasonable directions of the Board or individual to whom the Participant reports, which refusal or failure is not cured within 30 days following delivery of written notice of such conduct to the Participant; 
 (ii) a material failure by the Participant to perform his or her duties in a manner reasonably satisfactory to the Board that is
not cured within 30 days following delivery of written notice of such failure to the Participant; or 
 (iii)
participation in, a conviction of, or a plea of guilty or nolo contendere to a felony or any crime involving moral turpitude, fraud, or dishonesty that is likely to have or has had a material adverse effect on Nuvelo. 
 Termination of employment of a Participant due to death or disability shall not constitute an Involuntary Termination. 
 (r) “Option” means any and all options granted to a Participant by Nuvelo, in exchange for the performance of services, to acquire
common stock of Nuvelo, other than any options granted to a Participant which expressly provide that this Plan shall not apply to such option. 
 (s) “Participant” means an Eligible Employee who has received a Participation Notice that the employee is eligible to receive benefits pursuant to this Plan. 
 (t) “Participation Notice” means the latest notice delivered by Nuvelo to an Eligible Employee informing the employee that the employee
is eligible for Covered Benefits. A Participation Notice shall be in such form as may be determined by Nuvelo. Notwithstanding the 

 
foregoing, neither Nuvelo nor any successor may amend a Participation Notice in any way that is adverse to a Participant, without the written consent of the
Participant, unless (x) the amendment is made more than six (6) months prior to an applicable Covered Termination or Change in Control and (y) the amendment does not reduce any benefits the Participant would receive under the Plan to
an amount that is less than the benefits the Participant would receive if the amended Participation Notice did not address such benefit. 
 (u) “Plan Administrator” means the Board or any committee duly authorized by the Board to administer the Plan. The Plan Administrator may be, but is not required to be, the Compensation Committee of the Board. The Board may
at any time administer the Plan, in whole or in part, notwithstanding that the Board has previously appointed a committee to act as the Plan Administrator. 
 (v) “Regular Severance” means any Covered Termination that is not a Change in Control Severance. 
 (w) “Stock Award” means any and all compensatory stock awards (including Options) and stock rights (including, without limitation, restricted stock, restricted stock units and stock appreciation rights) granted to a
Participant with respect to Nuvelo stock in exchange for services rendered or to be rendered to Nuvelo and which entitle the Participant to receive either common stock of Nuvelo or some other pecuniary benefit determined by reference to Nuvelo
common stock, other than any stock awards granted to a Participant which expressly provide that this Plan shall not apply to such Stock Awards. 
 (x) “Vested” means that the Stock Award is, in the case of an Option, exercisable in full and, in the case of all other Stock Awards, that the Stock Award is not subject to Nuvelo’s right (whether conditional or
unconditional) to reacquire the Stock Award due to forfeiture or repurchase at less than the fair market value of the stock or Stock Award. 
  

	3.	ELIGIBILITY FOR BENEFITS. 

 (a) General Rules. Subject to the provisions set forth in this Section and Section 7, in the event of a Change in Control, Nuvelo will provide the Change in Control benefits described in Sections 4 and 5
of the Plan to the affected Participants. Subject to the provisions set forth in this Section and Section 7, in the event of a Regular Severance, Nuvelo will provide the severance benefits described in Section 6 of the Plan to the affected
Participant. 
 (b) Exceptions to Benefit Entitlement. An employee who otherwise is a Participant will not receive benefits under the
Plan in any of the following circumstances, as determined by Nuvelo in its sole discretion: 
 (i) The employee
voluntarily terminates employment with Nuvelo in order to accept employment with another entity that is controlled (directly or indirectly) by Nuvelo or is otherwise an affiliate of Nuvelo. 
 (ii) The Participant does not confirm in writing that Participant shall be subject to Nuvelo’s Confidential Information
Agreement (and any other proprietary information or confidentiality agreement of similar effect). 

 (iii) Except as may be set forth in a Participant’s Participation Notice, the
Participant shall not be entitled to receive the benefits set forth in Sections 5(c) or 6(d) if the Participant has either (i) previously received an Alternative Continued Medical Benefit or (ii) is eligible for and has not waived an
Alternative Continued Medical Benefit. 
 (iv) The Participant refuses to execute and let become effective, within the
time period provided by Nuvelo, the release of claims described in Section 7 below. 
 (v) The Participant has not
returned all Nuvelo property which he or she has had in his or her possession at any time, including but not limited to any materials which contain or embody any Nuvelo proprietary or confidential information and any computers, mobile telephones and
other physical property. 
 (c) Termination of Benefits. A Participant’s right to receive the payment of benefits under this Plan
shall terminate immediately if, at any time prior to, or during, the Continuation Period, the Participant, without the prior written approval of Nuvelo: 
 (i) willfully breaches a material provision of the Participant’s Confidential Information Agreement (or any other proprietary information or confidentiality agreement of similar effect); 
 (ii) encourages or solicits any of Nuvelo’s then-current employees to leave Nuvelo’s employ for any reason or interferes
in any other manner with employment relationships at the time existing between Nuvelo and its then-current employees; 
 (iii) induces any of Nuvelo’s then-current clients, customers, suppliers, vendors, distributors, licensors, licensees, or other third parties to terminate their existing business relationship with Nuvelo or interferes in any
other manner with any existing business relationship between Nuvelo and any then-current client, customer, supplier, vendor, distributor, licensor, licensee or other third party. 
  

	4.	CHANGE IN CONTROL STOCK AWARD VESTING BENEFITS

 In the event of a Change in Control, a Participant shall receive the following benefits in respect of any Stock Awards
which remain outstanding as of immediately prior to the effective time of the Change in Control (the “Effective Time”): 
 (a)
Change in Control Vesting Benefit. If the Participant is still employed as of the Effective Time, to the extent the Participant holds any Stock Award that is not fully Vested, one hundred percent (100%) of each Stock Award shall become
Vested as of immediately prior to the Effective Time. 
 (b) Vesting Benefit for Covered Termination Preceding Change in Control. If
the Participant is not employed as of the Effective Time but the Participant’s employment terminated pursuant to a Covered Termination during the one (1) month period ending on the Effective Time, the Stock Awards held by the Participant
that were not Vested on the date of the Participant’s Covered Termination shall become Vested as of immediately prior to the Effective Time. 

 (c) Coordination with Outstanding Stock Awards. In the event the provisions of this Section 4
would adversely affect a Stock Award outstanding on the Amendment Date, this Section 4 shall not apply to such Stock Award without the consent of the Participant. 
  

	5.	CHANGE IN CONTROL SEVERANCE BENEFITS 

 (a) Change in Control Severance Benefits. Upon a Change in Control Severance, and subject to the conditions described in Section 3, such
Participant shall receive the benefits described in Sections 5(b) and 5(c). Any amounts paid pursuant to this Section 5 shall be subject to all income tax and employment tax withholding requirements as well as any other applicable withholding
requirements. 
 (b) Cash Severance Benefits. The Participant who incurred such Change in Control Severance shall receive the Base
Severance Benefit and the Bonus Severance Benefit. 
 (c) Continued Medical Benefits. Provided that the Participant timely elects
continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (together with any state laws of similar effect, “COBRA”), Nuvelo shall pay for the Continuation Period (or such earlier date as the Participant and his or
her dependents are no longer eligible for COBRA coverage) the portion of premiums of the Participant’s group medical, dental, and vision coverage, including coverage for the Participant’s eligible dependents, that Nuvelo paid prior to the
Change in Control Severance; provided, however, that no such premium payments (or any other payments for medical, dental or vision coverage by Nuvelo) shall be made following the effective date of the Participant’s coverage by a medical,
dental or vision insurance plan of a subsequent employer or after the date the Participant or his or her eligible dependents otherwise cease to be eligible for COBRA coverage. Each Participant shall be required to notify Nuvelo immediately if the
Participant becomes covered by a medical, dental or vision insurance plan of a subsequent employer. No provision of this Plan will affect the continuation coverage rules under COBRA, except that Nuvelo’s payment of any applicable insurance
premiums during the Continuation Period will be credited as payment by the Participant for purposes of the Participant’s payment required under COBRA. Therefore, the period during which a Participant may elect whether or not to continue
Nuvelo’s group medical, dental or vision coverage under COBRA, the length of time during which COBRA continuation coverage will be made available to the Participant, and all other rights and obligations of the Participant under COBRA will be
applied in the same manner that such rules would apply in the absence of this Plan. At the conclusion of the Continuation Period, the Participant will be responsible for the entire payment of premiums required under COBRA for the remainder, if any,
of the COBRA continuation period. For purposes of this Section 5(c), applicable premiums paid by Nuvelo during the Continuation Period shall not include any amounts payable by the Participant under a Section 125 health care reimbursement
plan, which amounts, if any, are the sole responsibility of the Participant. Nuvelo’s sole obligation pursuant to this Section 5(c) is to pay the portion of the premium described above for any COBRA coverage during the Continuation Period.
If the Participant or his spouse or his dependents cannot remain eligible for continued COBRA coverage for the entire Continuation Period, Nuvelo shall have no obligation to provide individual medical, dental, and vision coverage for the
individual(s) who cease to be so eligible for the remainder of the Continuation Period. 

	6.	REGULAR SEVERANCE BENEFITS. 

 (a) Regular Severance Benefit. Upon a Regular Severance, and subject to the conditions described in Section 3, such Participant shall receive the benefits described in Sections 6(b) – 6(d), below. Any
amounts paid pursuant to this Section 6 shall be subject to all income tax and employment tax withholding requirements as well as any other applicable withholding requirements. 
 (b) Base Severance Benefit. The Participant who incurred the Regular Severance shall begin to receive from Nuvelo the Base Severance Benefit.

 (c) Credit Toward Vesting Requirements. With respect to any Stock Awards that are outstanding on the date of the Regular Severance,
the Participant shall be immediately credited with an additional twelve (12) months of service for the purposes of determining the portions of such Stock Awards that are Vested. 
 (d) Continued Medical Benefits. Provided that the Participant timely elects continued coverage under COBRA, Nuvelo shall pay for the Continuation
Period (or such earlier date as the Participant and his or her dependents are no longer eligible for COBRA coverage) the portion of premiums of the Participant’s group medical, dental, and vision coverage, including coverage for the
Participant’s eligible dependents, that Nuvelo paid prior to the Change in Control Severance; provided, however, that no such premium payments (or any other payments for medical, dental or vision coverage by Nuvelo) shall be made
following the effective date of the Participant’s coverage by a medical, dental or vision insurance plan of a subsequent employer or after the date the Participant or his or her eligible dependents otherwise cease to be eligible for COBRA
coverage. Each Participant shall be required to notify Nuvelo immediately if the Participant becomes covered by a medical, dental or vision insurance plan of a subsequent employer. No provision of this Plan will affect the continuation coverage
rules under COBRA, except that Nuvelo’s payment of any applicable insurance premiums during the Continuation Period will be credited as payment by the Participant for purposes of the Participant’s payment required under COBRA. Therefore,
the period during which a Participant may elect whether or not to continue Nuvelo’s group medical, dental or vision coverage under COBRA, the length of time during which COBRA continuation coverage will be made available to the Participant, and
all other rights and obligations of the Participant under COBRA will be applied in the same manner that such rules would apply in the absence of this Plan. At the conclusion of the Continuation Period, the Participant will be responsible for the
entire payment of premiums required under COBRA for the remainder, if any, of the COBRA continuation period. For purposes of this Section 6(d), applicable premiums paid by Nuvelo during the Continuation Period shall not include any amounts
payable by the Participant under a Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Participant. Nuvelo’s sole obligation pursuant to this Section 6(d) is to pay the portion of the
premium described above for any COBRA coverage during the Continuation Period. If the Participant or his spouse or his dependents cannot remain eligible for continued COBRA coverage for the entire Continuation Period, Nuvelo shall have no obligation
to provide individual medical, dental, and vision coverage for the individual(s) who cease to be so eligible for the remainder of the Continuation Period. 

	7.	LIMITATIONS ON BENEFITS 

 (a) Release. In order to be eligible to receive benefits under Sections 3, 4, 5, and 6 of the Plan, a Participant (or, in the case of the Participant’s death or disability, the Participant’s legal
representative) must execute a general waiver and release in the form generally in use by Nuvelo at the time of such Covered Termination or Change in Control within the time provided by the Company (which time period shall generally not exceed 45
days from the date on which the Participant receives the form of release) and allow such release to become effective in accordance with its terms (such effective date, the “Release Date”). Nuvelo, in its sole discretion, may modify the
form of the required release to comply with applicable federal and state law and shall determine the form of the required release. 
 (b)
Timing of Payments. Any Base Severance Benefit and Bonus Severance Benefit to which a Participant is entitled shall be paid in substantially equal installments over the Continuation Period in accordance with Nuvelo’s normal payroll pay
cycle, commencing with the first regular payroll pay date after the date of termination; provided, however, that no installments shall be paid prior to the Release Date (as defined below), and any installments that would have been paid
through the Release Date shall instead be paid in a lump sum on the first regular payroll pay date on or after the Release Date, with the balance of the installments paid in accordance with the regular payroll pay cycle thereafter. 
 (c) Certain Reductions and Offsets. Notwithstanding any other provision of the Plan to the contrary, a Covered Benefit payable to a Participant
under this Plan shall be reduced (but not below zero) by any Alternative Benefit to such Covered Benefit payable by Nuvelo to such individual under any other policy, plan, program or arrangement, including, without limitation, a contract between the
Participant and any entity, covering such individual. Furthermore, to the extent that any federal, state or local laws, including, without limitation, so-called “plant closing” laws or statutory severance requirements, require Nuvelo to
give advance notice or make a payment of any kind to a Participant because of that Participant’s involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of business, change in control, or any other similar
event or reason, the benefits payable under this Plan shall be paid in satisfaction of any and all such statutory obligations. The benefits provided under this Plan are intended to satisfy any and all statutory obligations that may arise out of a
Participant’s involuntary termination of employment for the foregoing reasons, and the Plan Administrator shall so construe and implement the terms of the Plan. 
 (d) Mitigation. Except as otherwise specifically provided herein, a Participant shall not be required to mitigate damages or the amount of any payment provided under this Plan by seeking other employment or
otherwise, nor shall the amount of any payment provided for under this Plan (other than the Continued Medical Benefits) be reduced by any compensation earned by a Participant as a result of employment by another employer or any retirement benefits
received by such Participant after the date of the Participant’s termination of employment with Nuvelo. 
 (e) Non-Duplication of
Benefits. Except as otherwise specifically provided for herein, no Participant is eligible to receive benefits under this Plan more than one time. This Plan is designed to provide certain severance pay and change of control benefits to
Participants pursuant to the terms and conditions set forth in this Plan and any associated Participation Notice. The 

 
payments pursuant to this Plan are in addition to, and not in lieu of, any unpaid earned salary, bonuses or benefits to which a Participant may be entitled
for the period ending with the Participant’s Covered Termination and/or a Change in Control. 
 (f) Indebtedness of Participants.
If a terminating employee is indebted to Nuvelo or an affiliate of Nuvelo at his or her termination date, Nuvelo reserves the right to offset any Covered Benefits under the Plan by the amount of such indebtedness. 
 (g) Parachute Payments. 
 (i) Best-After Tax Result. If any payment or benefit a Participant would receive, from Nuvelo or otherwise, whether or not pursuant to this Plan, in connection with a Change in Control (a “Payment”), would be subject to the
excise tax imposed by Section 4999 of the Code, or any comparable federal, state, or local excise tax (such excise taxes, together with any related interest and penalties, are hereinafter collectively referred to as the “Excise Tax”),
then the Participant shall be entitled to receive the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or
(y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest
applicable marginal rate), results in the Participant’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or
benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless the Participant elects in writing a different order (provided, however, that
such election shall be subject to Company approval if made on or after the date on which the event that triggers the Payment occurs): reduction of cash payments; cancellation of accelerated vesting of stock awards; and reduction of employee
benefits. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Participant’s stock awards unless the Participant
elects in writing a different order for cancellation. 
 (ii) Use of Third Party Expert. The accounting firm engaged by
Nuvelo for the purpose of rendering general tax advice as of the day prior to the effective date of the Change in Control shall perform the calculations required by this Section 7(g). If the accounting firm so engaged by Nuvelo is serving as
accountant or auditor for the individual, entity, or group effecting the Change in Control, Nuvelo shall appoint a nationally recognized accounting firm to make the determinations required hereunder. Nuvelo shall bear all expenses with respect to
the determinations by such accounting firm required to be made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to Nuvelo and the Participant
within fifteen (15) calendar days after the date on which the Participant’s right to a Payment is triggered (if requested at that time by Nuvelo or the Participant) or such other time as requested by Nuvelo or the Participant. If the
accounting firm determines that no Excise Tax is payable with respect to a Payment to a Participant, it shall furnish Nuvelo and the Participant with an opinion reasonably acceptable to Participant that no Excise Tax will be imposed with respect to
such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding, and conclusive upon Nuvelo and the Participant. 

 (h) Application of Section 409A. If Nuvelo (or, if applicable, the successor entity thereto)
determines that the payments and benefits provided under the Plan (the “Plan Payments”) constitute “deferred compensation” under Code Section 409A (together, with any state law of similar effect,
“Section 409A”) and a Participant is a “specified employee” of Nuvelo or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”), then,
solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Plan Payments shall be delayed as follows: on the earliest to occur of (i) the date that is six months
and one day after the termination date, (ii) the date of the Participant’s death, or (iii) such earlier date, as reasonably determined in good faith by Nuvelo (or any successor entity thereto), as would not result in any of the Plan
Payments being subject to adverse personal tax consequences under Section 409A, (such earliest date, the “Delayed Initial Payment Date”), Nuvelo (or the successor entity thereto, as applicable) shall (A) pay to the
Participant a lump sum amount equal to the sum of the Plan Payments that the Participant would otherwise have received through the Delayed Initial Payment Date (including reimbursement for any premiums paid by the Participant for health insurance
coverage under COBRA) if the commencement of the payment of the Plan Payments had not been delayed pursuant to this Section 7(h) and (B) commence paying the balance of the Plan Payments in accordance with the applicable payment schedules
set forth above. For the avoidance of doubt, it is intended that (1) each installment of Covered Benefits is a separate “payment” for purposes of Section 409A, (2) all Plan Payments satisfy, to the greatest extent possible,
the exemptions from the application of Section 409A provided under of Treasury Regulation 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii), (3) the Plan Payments constituting accelerated vesting satisfy, to the greatest extent possible, the
exemptions from the application of Section 409A provided under Treasury Regulation 1.409A-1(b)(5)(i)(A) and (ii), and (4) the Plan Payments constituting Continued Medical Benefits also satisfy, to the greatest extent possible, the
exemptions from the application of Section 409A provided under Treasury Regulation 1.409A-1(b)(9)(v). 
  

	8.	RIGHT TO INTERPRET PLAN; AMENDMENT AND TERMINATION.

 (a) Exclusive Discretion. The Plan Administrator shall have the exclusive discretion and authority to establish
rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of
the Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations, and other actions of the Plan Administrator shall be binding and conclusive on
all persons. 
 (b) Amendment or Termination. Nuvelo reserves the right to amend or terminate this Plan or the benefits provided
hereunder at any time; provided, however, that no such amendment or termination shall occur following a Change in Control or a Covered Termination as to any Participant who would be adversely affected by such amendment or termination unless
such Participant consents in writing to such amendment or termination. Any action amending or terminating the Plan shall be in writing and executed by a duly authorized officer of Nuvelo. Unless otherwise required by law, no approval of the
shareholders of Nuvelo shall be required for any amendment or termination including any amendment that increases the benefits provided under any Stock Award. 

	9.	TERMINATION OF CERTAIN EMPLOYEE BENEFITS. 

 Except as provided herein, all employee benefits other than health insurance and life insurance (such as disability and 401(k) plan coverage) terminate as
of a Participant’s employment termination date (except to the extent that a conversion privilege may be available thereunder). 
  

	10.	NO IMPLIED EMPLOYMENT CONTRACT. 

 The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ of Nuvelo or (ii) to interfere with
the right of Nuvelo to discharge any employee or other person at any time, with or without cause, which right is hereby reserved. 
  

	11.	LEGAL CONSTRUCTION. 

 This Plan shall be governed by and construed under the laws of the State of California (without regard to principles of conflict of laws), except to the extent preempted by ERISA. 
  

	12.	CLAIMS, INQUIRIES AND APPEALS. 

 (a) Applications for Benefits and Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights
under the Plan must be submitted to the Plan Administrator in writing. The Plan Administrator is: 
 Nuvelo, Inc. 
 Attn: Vice President - Human Resources 
 201
Industrial Road, Suite 310 
 San Carlos, CA 94070-6211 
 (b) Denial of Claims. In the event that any application for benefits is denied in whole or in part, the Plan Administrator must provide the applicant with written or electronic notice of the denial of the
application, and of the applicant’s right to review the denial. Any electronic notice will comply with the regulations of the U.S. Department of Labor. The notice of denial will be set forth in a manner designed to be understood by the
applicant and will include the following: 
 (1) the specific reason or reasons for the denial; 
 (2) references to the specific Plan provisions upon which the denial is based; 
 (3) a description of any additional information or material that the Plan Administrator needs to complete the review and an
explanation of why such information or material is necessary; and 

 (4) an explanation of the Plan’s review procedures and the time limits
applicable to such procedures, including a statement of the applicant’s right, if applicable, to bring a civil action under section 502(a) of ERISA following a denial on review of the claim, as described in Section 12(c) –
(f) below. 
 This notice of denial will be given to the applicant within ninety (90) days after the Plan Administrator receives
the application, unless special circumstances require an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required,
written notice of the extension will be furnished to the applicant before the end of the initial ninety (90) day period. 
 This notice
of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application. 
 (c) Request for a Review. Any person (or that person’s authorized representative) for whom an application for benefits is denied may appeal
the denial by submitting a request for a review to the Review Panel (defined below) within sixty (60) days after the application is denied. A request for a review shall be in writing and shall be addressed to: 
 Review Panel 
 Nuvelo, Inc. 
 Attn: Vice President - Human Resources 
 201
Industrial Road, Suite 310 
 San Carlos, CA 94070-6211 
 The Review Panel shall be comprised of two (2) or more persons to be appointed by Nuvelo. The applicant (or his or her
representative) must submit the appeal within sixty (60) days after the application is denied (or deemed denied). The Review Panel will give the applicant (or his or her representative) an opportunity to review pertinent documents in preparing
a request for a review. 
 A request for review must set forth all of the grounds on which it is based, all facts in support
of the request and any other matters that the applicant feels are pertinent. The applicant (or his or her representative) shall have the opportunity to submit (or the Plan Administrator may require the applicant, or his or her representative, to
submit) written comments, documents, records, and other information relating to his or her claim. The applicant (or his or her representative) shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant to his or her claim. The review shall take into account all comments, documents, records and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit determination. 

 (d) Decision on Review. The Review Panel will act on each request for review within sixty
(60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review. If an extension for review is required, written
notice of the extension will be furnished to the applicant within the initial sixty (60) day period. This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Review Panel is to
render its decision on the review. The Review Panel will give prompt, written or electronic notice of its decision to the applicant. Any electronic notice will comply with the regulations of the U.S. Department of Labor. In the event that the Review
Panel confirms the denial of the application for benefits in whole or in part, the notice will set forth, in a manner calculated to be understood by the applicant, the following: 
 (1) the specific reason or reasons for the denial; 
 (2) references to the specific Plan provisions upon which the denial is based; 
 (3) a statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of,
all documents, records and other information relevant to his or her claim; and 
 (4) a statement of the
applicant’s right, if applicable, to bring a civil action under section 502(a) of ERISA. 
 (e) Rules and Procedures. The Plan
Administrator and/or the Review Panel may establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims. If the applicant wishes to submit
additional information in connection with an appeal from the denial of benefits, he or she may be required to do so at his or her own expense. 
 (f) Exhaustion of Remedies. No legal action for benefits under the Plan may be brought until the claimant (i) has submitted a written application for benefits in accordance with the procedures described by Section 12(a)
above, (ii) has been notified by the Plan Administrator that the application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 12(c) above, and
(iv) has been notified that the Review Panel has denied the appeal. Notwithstanding the foregoing, if the Review Panel does not respond to a Participant’s claim or appeal within the relevant time limits specified in this Section 12,
the Participant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA. 
  

	13.	BASIS OF PAYMENTS TO AND FROM PLAN. 

 All benefits under the Plan shall be paid by Nuvelo. The Plan shall be unfunded, and benefits hereunder shall be paid only from the general assets of
Nuvelo. 
  

	14.	OTHER PLAN INFORMATION. 

 (a) Employer and Plan Identification Numbers. The Employer Identification Number assigned to Nuvelo (which is the “Plan Sponsor” as that term is used in ERISA) by the Internal Revenue Service is
36-3855489. The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the instructions of the Internal Revenue Service is 506. 

 (b) Ending Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the
purpose of maintaining the Plan’s records is December 31. 
 (c) Agent for the Service of Legal Process. The agent for the
service of legal process with respect to the Plan is Nuvelo, Inc., Attn: Vice President of Human Resources. 
 (d) Plan Sponsor and
Administrator. The “Plan Sponsor” and the “Plan Administrator” of the Plan is Nuvelo, Inc., Attn: Vice President - Human Resources, 201 Industrial Road, Suite 310, San Carlos, CA 94070-6211. The Plan Sponsor’s and Plan
Administrator’s telephone number is (650) 517-8000. The Plan Administrator is the named fiduciary charged with the responsibility for administering the Plan. 
  

	15.	STATEMENT OF ERISA RIGHTS. 

 Participants in this Plan (which is a welfare benefit plan sponsored by Nuvelo, Inc.) are entitled to certain rights and protections under ERISA. If you are an Eligible Employee, you are considered a participant in
the Plan for the purposes of this Section 15 and, under ERISA, you are entitled with respect to benefits covered by ERISA to: 
 Receive Information
About Your Plan And Benefits 
 (a) Examine, without charge, at the Plan Administrator’s office and at other specified
locations, such as worksites, all documents governing the Plan and a copy of the latest annual report (Form 5500 Series), if applicable, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension
and Welfare Benefit Administration; 
 (b) Obtain, upon written request to the Plan Administrator, copies of documents governing the
operation of the Plan and copies of the latest annual report (Form 5500 Series), if applicable, and an updated (as necessary) Summary Plan Description. The Administrator may make a reasonable charge for the copies; and 
 (c) Receive a summary of the Plan’s annual financial report, if applicable. The Plan Administrator is required by law to furnish each
participant with a copy of this summary annual report, if applicable. 
 Prudent Actions By Plan Fiduciaries 
 In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit
plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union or any other
person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under ERISA. 

 Enforce Your Rights 
 If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial,
all within certain time schedules. 
 Under ERISA, there are steps you can take to
enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan, if applicable,1 and do not
receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent
because of reasons beyond the control of the Administrator. 
 If you have a claim for benefits which is denied or ignored, in whole
or in part, you may file suit in a state or Federal court. In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of a domestic relations order or a medical child support order, you may file suit
in a state or Federal court. 
 If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department
of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you
to pay these costs and fees, for example, if it finds your claim is frivolous. 
 Assistance With Your Questions 
 If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights
under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the
Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and
responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 
  

	16.	GENERAL PROVISIONS. 

 (a) Notices. Any notice, demand or request required or permitted to be given by either Nuvelo or a Participant pursuant to the terms of this Plan shall be in writing and shall be deemed given when delivered personally or deposited in
the U.S. mail, First Class with postage prepaid, and addressed to the parties, in the case of Nuvelo, at the address set forth in Section 12(a) and, in the case of a Participant, at the address as set forth in Nuvelo’s employment file
maintained for the Participant as previously furnished by the Participant or such other address as a Party may request by notifying the other in writing. 
  

	 1
	 Note: the Plan, as of the date of its adoption, is not subject to the requirement
of filing such an annual report. 

 (b) Transfer and Assignment. The rights and obligations of Participant under this Plan may not be
transferred or assigned without the prior written consent of Nuvelo. This Plan shall be binding upon any surviving entity resulting from a Change in Control and upon any other person who is a successor by merger, acquisition, consolidation or
otherwise to the business formerly carried on by Nuvelo without regard to whether or not such person or entity actively assumes the obligations hereunder. 
 (c) Waiver. Any Party’s failure to enforce any provision or provisions of this Plan shall not in any way be construed as a waiver of any such provision or provisions, nor prevent any Party from thereafter
enforcing each and every other provision of this Plan. The rights granted the Parties herein are cumulative and shall not constitute a waiver of any Party’s right to assert all other legal remedies available to it under the circumstances.

 (d) Severability. Should any provision of this Plan be declared or determined to be invalid, illegal or unenforceable, the
validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired. 
 (e) Section
Headings. Section headings in this Plan are included for convenience of reference only and shall not be considered part of this Plan for any other purpose. 
  

	17.	CIRCULAR 230 DISCLAIMER. 

 THE FOLLOWING DISCLAIMER IS PROVIDED IN ACCORDANCE WITH THE INTERNAL REVENUE SERVICE’S CIRCULAR 230 (21 CFR PART 10). ANY ADVICE IN THIS PLAN IS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED BY YOU FOR THE PURPOSE OF
AVOIDING ANY PENALTIES THAT MAY BE IMPOSED ON YOU. ANY ADVICE IN THIS PLAN WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF PARTICIPATION IN THE COMPANY’S SEVERANCE BENEFIT PLAN. YOU SHOULD SEEK ADVICE BASED ON YOUR PARTICULAR CIRCUMSTANCES
FROM AN INDEPENDENT TAX ADVISOR. 
  

	18.	EXECUTION. 

 To record the amendment
and restatement of the Plan as set forth herein, Nuvelo, Inc. has caused its duly authorized officer to execute the same as of August 1, 2007. 
  

			
	NUVELO, INC.
		
	By:	 	/s/ Lee Bendekgey
		 	Lee Bendekgey
	Title:	 	Senior Vice President1987 Stock Option Plan, amended and restated as of September 25, 2002

 Exhibit 10.242 
 THE CHARLES SCHWAB CORPORATION 
 1987 STOCK OPTION PLAN 
 (Restated to include Amendments through September 25, 2002) 
  
  
 Article 1.    Introduction. 
 The purpose of the 1987 Stock Option Plan, as Amended and Restated (the “Plan”) is to enable The Charles Schwab Corporation and
its subsidiaries to attract and retain directors, officers, and other key employees and to provide such persons with additional incentive to advance the interests of the Company. The Plan was initially adopted on March 24, 1987, and was amended
on July 29, 1987, April 17, 1989, September 17, 1996 and October 22, 1997. The Plan is hereby restated and amended as of October 22, 1997, and the terms of this Restatement shall apply to all awards granted under the Plan on or after
such date. The Plan shall terminate not more than ten (10) years from the date the Plan initially was adopted. The Plan will provide for Awards in the form of Restricted Shares, Performance Share Awards or Options, which may constitute
incentive stock options or nonstatutory stock options. The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware. 
 Article 2.    Administration. 
 2.1 The
Committee.    The Plan shall be administered by the Committee. The Committee shall consist of two or more Non-Employee Directors, who shall be appointed by the Board. 
 2.2    Committee Responsibilities.    The Committee shall select the Key Employees who are to
receive Awards under the Plan, determine the amount, vesting requirements and other conditions of such Awards, may interpret the Plan, and make all other decisions relating to the operation of the Plan. The Committee may adopt such rules or
guidelines as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
 Article 3.    Limitation on Awards. 
 The aggregate number of Restricted
Shares, Performance Share Awards and Options awarded under the Plan shall not exceed 1,616,000 (including those shares awarded prior to the amendment of the Plan). If any Restricted Shares, Performance Share Awards or Options are forfeited, or if
any Performance Share Awards terminate for any other reason without the associated Common Shares being issued, or if any Options terminate for any other reason before being exercised, then such Restricted Shares, Performance Share Awards or Options
shall again become available for Awards under the Plan. The limitation of this Article 3 shall be subject to adjustment pursuant to Article 10. Any Common Shares issued pursuant to the Plan may be authorized but unissued shares or treasury shares.

 Article 4.    Eligibility. 
 4.1 General Rule.    Key Employees shall be eligible for designation as Participants by the Committee. 

 4.2 Ten-Percent Stockholders.    A Key Employee who owns more than 10
percent of the total combined voting power of all classes of outstanding stock of the Company or any of its Subsidiaries shall not be eligible for the grant of an ISO unless (a) the Exercise price under such ISO is at least 110 percent of the
Fair Market Value of a Common Share on the date of grant and (b) such ISO by its terms is not exercisable after the expiration of five years from the date of grant. 
 4.3 Attribution Rules.    For purposes of Section 4.2, in determining stock ownership, a Key Employee shall be deemed to own the stock owned, directly or indirectly, by
or for his or her brothers, sisters, spouse, ancestors or lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners
or beneficiaries. Stock with respect to which the Key Employee holds an option shall not be counted. 
 4.4 Outstanding
Stock.    For purposes of Section 4.2, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant of the ISO to the Key Employee. “Outstanding stock” shall not
include treasury shares or shares authorized for issuance under outstanding options held by the Key Employee or by any other person. 
 Article 5. Options. 
 5.1 Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a
Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan, and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the
Committee deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. The Committee may designate all or any part of an Option as an ISO. The
Committee may designate all or any part of an Option as an ISO (or, in the case of a Key Employee who is subject to the tax laws of a foreign jurisdiction, as an option qualifying for favorable tax treatment under the laws of such foreign
jurisdiction). 
 5.2 Options Nontransferability.    No Option granted under the Plan shall be
transferable by the Optionee other than by will or the laws of descent and distribution. An Option may be exercised during the lifetime of the Optionee only by him or her. No Option or interest therein may be transferred, assigned, pledged or
hypothecated by the Optionee during his or her lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
 5.3 Number of Shares.    Each Stock Option Agreement shall specify the number of Common Shares subject to the Option and shall provide for the adjustment of such number in
accordance with Article 10. Each Stock Option Agreement shall also specify whether the Option is an ISO or an NSO. 
 5.4
Exercise Price.    Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price under an Option shall not be less than 100 percent of the Fair Market Value of a Common Share on the date of grant, except as
otherwise provided in Section 4.2. Subject to the preceding sentence, the Exercise Price under any Option shall be determined by the Committee. The Exercise Price shall be payable in accordance with Article 6. 

 5.5    Exercisability and Term. Each Stock Option Agreement shall
specify the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option. The term of an ISO shall in no event exceed 10 years from the date of grant, and
Section 4.2 may require a shorter term. Subject to the preceding sentence, the Committee shall determine when all or any part of an Option is to become exercisable and when such Option is to expire; provided that, in appropriate cases, the
Company shall have the discretion to extend the term of an Option or the time within which, following termination of employment, an Option may be exercised, or to accelerate the exercisability of an Option. A Stock Option Agreement may provide for
expiration prior to the end of its term in the event of the termination of the Optionee’s employment and shall provide for the suspension of vesting when an employee is on a leave of absence for a period in excess of six months in appropriate
cases, as determined by the Company; provided that the exercisability of Options shall be accelerated in the event of the Participant’s death or Disability and, in the case of Retirement, the exercisability of all outstanding Options shall be
accelerated, other than any Options that had been granted within two years of the date of the Optionee’s Retirement. NSOs may also be awarded in combination with Restricted Shares, and such an Award may provide that the NSOs will not be
exercisable unless the related Restricted Shares are forfeited. In addition, NSOs granted under this Section 5 may be granted subject to forfeiture provisions which provide for forfeiture of the Option upon the exercise of tandem awards, the
terms of which are established in other programs of the Company. 
 5.6    Limitation on Amount of
ISOs.    The aggregate fair market value (determined at the time the ISO is granted) of the Common Shares with respect to which ISOs are exercisable for the first time by the Optionee during any calendar year (under all incentive
stock option plans of the Company) shall not exceed $100,000; provided, however, that all or any portion of an Option which cannot be exercised as an ISO because of such limitation shall be treated as an NSO. 
 5.7    Effect of Change in Control. The Committee (in its sole discretion) may determine, at the time of granting an
Option, that such Option shall become fully exercisable as to all Common Shares subject to such Option immediately preceding any Change in Control with respect to the Company. 
 5.8    Restrictions on Transfer of Common Shares.    Any Common Shares issued upon exercise of an Option shall be subject to such special forfeiture
conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general
restrictions that may apply to all holders of Common Shares. 
 5.9    Authorization of Replacement
Options.    Concurrently with the grant of any Option to a Participant, the Committee may authorize the grant of Replacement Options. If Replacement Options have been authorized by the Committee with respect to a particular award
of Options (the “Underlying Options”), the Option Agreement with respect to the Underlying Options shall so state, and the terms and conditions of the Replacement Options shall be provided therein. The grant of any Replacement Options
shall be effective only upon the exercise of the Underlying Options through the use of Common Shares pursuant to Section 6.2 or Section 6.3. The number of Replacement Options shall equal the number of Common Shares used to exercise the
Underlying Options, and, if the Option Agreement so provides, the number of Common Shares used to satisfy any tax withholding requirements incident to the exercise of the Underlying Options 

 
in accordance with Section 12.2. Upon the exercise of the Underlying Options, the Replacement Options shall be evidenced by an amendment to the
Underlying Option Agreement. Notwithstanding the fact that the Underlying Option may be an ISO, a Replacement Option is not intended to qualify as an ISO. The Exercise Price of a Replacement Option shall be no less than the Fair Market Value of a
Common Share on the date the grant of the Replacement Option becomes effective. The term of each Replacement Option shall be equal to the remaining term of the Underlying Option. No Replacement Options shall be granted to Optionees when Underlying
Options are exercised pursuant to the terms of the Plan and the Underlying Option Agreement following termination of the Optionee’s employment. The Committee, in its sole discretion, may establish such other terms and conditions for Replacement
Options as it deems appropriate. 
 5.10 Options Granted to Non-United States Key Employees. In the case of Key Employees who
are subject to the tax laws of a foreign jurisdiction, the Company may issue Options to such Key Employees that contain terms required to conform with any requirements for favorable tax treatment imposed by the laws of such foreign jurisdiction, or
as otherwise may be required by the laws of such foreign jurisdiction. The terms of any such Options shall be governed by the Plan, subject to the terms of any Addendum to the Plan specifically applicable to such Options. 
 5.11 Effect of Job Elimination. Notwithstanding anything to the contrary contained in the Plan or in any Stock Option Agreement or Stock
Award Agreement entered into with respect to an Award pursuant to the Plan, in the case of a Participant who is an Officer, and who becomes entitled to receive payments with respect to a Severance Period pursuant to the Charles Schwab Severance Pay
Plan (the “Severance Plan”) on account of a Job Elimination, the terms of the Plan and any Stock Option Agreement or Stock Award Agreement entered into with respect to an Award shall be applied by treating the Participant as if the
Participant had terminated employment on the Participant’s Termination Date. For purposes of applying this Section, the terms Officer, Severance Period, Termination Date, and Job Elimination shall have the meanings set forth in the Severance
Plan. 
 Article 6.    Payment for Option Shares. 
 6.1 General Rule.    The entire Exercise Price of Common Shares issued upon exercise of Options shall be payable in
cash at the time when such Common Shares are purchased, except as follows: 
 (a) In the case of an ISO granted under the
Plan, payment shall be made only pursuant to the express provisions of the applicable Stock Option Agreement. However, the Committee may specify in the Stock Option Agreement that payment may be made pursuant to Section 6.2 or 6.3. 

(b) In the case of an NSO, the Committee may at any time accept payment pursuant to Section 6.2 or 6.3. 
 6.2 Surrender of Stock.    To the extent that this Section 6.2 is applicable, payment for all or any part of the
Exercise Price may be made with Common Shares which are surrendered to the Company. Such Common Shares shall be valued at their Fair Market Value on the date when the new Common Shares are purchased under the Plan. In the event that the Common
Shares being surrendered are Restricted Shares that have not yet become vested, the same restrictions shall be imposed upon the new Common Shares being purchased. 

 6.3    Exercise/Sale.    To the extent this
Section 6.3 is applicable, payment may be made by the delivery (on a form prescribed by the Company) of an irrevocable direction to Charles Schwab & Co., Inc. to sell Common Shares (including the Common Shares to be issued upon
exercise of the Options) and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 
 Article 7.    Restricted Shares and Performance Share Awards. 
 7.1
Time, Amount and Form of Awards.    The Committee may grant Restricted Shares or Performance Share Awards with respect to an Award Year during such Award Year or at any time thereafter. Each such Award shall be evidenced by a
Stock Award Agreement between the Award recipient and the Company. The amount of each Award of Restricted Shares or Performance Share Awards shall be determined by the Committee. Awards under the Plan may be granted in the form of Restricted Shares
or Performance Share Awards or in any combination thereof, as the Committee shall determine at its sole discretion at the time of the grant. Restricted Shares or Performance Share Awards may also be awarded in combination with NSOs, and such an
Award may provide that the Restricted Shares or Performance Share Awards will be forfeited in the event that the related NSOs are exercised. 
 7.2 Payment for Restricted Share Awards.    To the extent that an Award is granted in the form of Restricted Shares, the Award recipient, as a condition to the grant of such Award, shall be
required to pay the Company in cash an amount equal to the par value of such Restricted Shares. 
 7.3 Vesting or Issuance
Conditions.    Each Award of Restricted Shares shall become vested, in full or in installments, upon satisfaction of the conditions specified in the Stock Award Agreement. Common Shares shall be issued pursuant to Performance
Share Awards in full or in installments upon satisfaction of the issuance conditions specified in the Stock Award Agreement. The Committee shall select the vesting conditions in the case of Restricted Shares, or issuance conditions in the case of
Performance Share Awards, which may be based upon the Participant’s service, the Participant’s performance, the Company’s performance or such other criteria as the Committee may adopt; provided that, in the case of an Award of
Restricted Shares where vesting is based entirely on the Participant’s service, (i) vesting shall be accelerated in the event of the Participant’s death or Disability; (ii) in the case of Retirement, vesting shall be accelerated
for all Restricted Shares that had been granted more than two years prior to the date of the Participant’s Retirement; and (iii) vesting shall be suspended when an employee is on a leave of absence for a period in excess of six months in
appropriate cases, as determined by the Company. The Committee, in its sole discretion, may determine, at the time of making an Award of Restricted Shares, that such Award shall become fully vested in the event that a Change in Control occurs with
respect to the Company. The Committee, in its sole discretion, may determine, at the time of making a Performance Share Award, that the issuance conditions set forth in such Award shall be waived in the event that a Change in Control occurs with
respect to the Company. 
 7.4 Form of Settlement of Performance Share Awards.    Settlement of
Performance Share Awards shall only be made in the form of Common Shares. Until a Performance Share Award is settled, the number of Performance Share Awards shall be subject to adjustment pursuant to Article 10. 

 7.5 Death of Recipient. Any Common Shares that are to be issued pursuant to a Performance
Share Award after the recipient’s death shall be delivered or distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Performance Share Award under the Plan shall designate one or more beneficiaries for this
purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated
beneficiary survives the Award recipient, then any Common Shares that are to be issued pursuant to a Performance Share Award after the recipient’s death shall be delivered or distributed to the recipient’s estate. The Committee, in its
sole discretion, shall determine the form and time of any distribution(s) to a recipient’s beneficiary or estate. 
 Article
8.    Claims Procedures. 
 Claims for benefits under the Plan shall be filed in writing with the
Committee on forms supplied by the Committee. Written notice of the disposition of a claim shall be furnished to the claimant within 90 days after the claim is filed. If the claim is denied, the notice of disposition shall set forth the specific
reasons for the denial, citations to the pertinent provisions of the Plan, and, where appropriate, an explanation as to how the claimant can perfect the claim. If the claimant wishes further consideration of his or her claim, the claimant may appeal
a denied claim to the Committee (or to a person designated by the Committee) for further review. Such appeal shall be filed in writing with the Committee on a form supplied by the Committee, together with a written statement of the claimant’s
position, no later than 90 days following receipt by the claimant of written notice of the denial of his or her claim. If the claimant so requests, the Committee shall schedule a hearing. A decision on review shall be made after a full and fair
review of the claim and shall be delivered in writing to the claimant no later than 60 days after the Committee’s receipt of the notice of appeal, unless special circumstances (including the need to hold a hearing) require an extension of time
for processing the appeal, in which case a written decision on review shall be delivered to the claimant as soon as possible but not later than 120 days after the Committee’s receipt of the appeal notice. The claimant shall be notified in
writing of any such extension of time. The written decision on review shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, and shall specifically refer to the pertinent Plan provisions on
which it is based. All determinations of the Committee shall be final and binding on Participants and their beneficiaries. 
 Article
9.    Voting Rights and Dividends. 
 9.1 Restricted Shares. 
 (a) All holders of Restricted Shares who are not Named Executive Officers shall have the same voting, dividend, and other rights as the
Company’s other stockholders. 
 (b) During the period of restriction, Named Executive Officers holding Restricted
Shares granted hereunder shall be credited with all regular cash dividends paid with respect to all Restricted Shares while they are so held. If a dividend is paid in the form of cash, such cash dividend shall be credited to Named Executive Officers
subject to the same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid. If any dividends or distributions are paid in shares of Common Stock, the shares of Common Stock shall be subject
to the same 

 
restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid. Subject to the succeeding paragraph, and to
the restrictions on vesting and the forfeiture provisions, all dividends credited to a Named Executive Officer shall be paid to the Named Executive Officer within forty-five (45) days following the full vesting of the Restricted Shares with
respect to which such dividends were earned. 
 In the event that any dividend constitutes a “derivative
security” or an “equity security” pursuant to Rule 16(a) under the Exchange Act, such dividend shall be subject to a vesting period equal to the longer of: (i) the remaining vesting period of the Restricted Shares with respect to
which the dividend is paid; or (ii) six (6) months. The Committee shall establish procedures for the application of this provision. 
 Named Executive Officers holding Restricted Shares shall have the same voting rights as the Company’s other stockholders. 
 9.2 Performance Share Awards. The holders of Performance Share Awards shall have no voting or dividend rights until such time as any
Common Shares are issued pursuant thereto, at which time they shall have the same voting, dividend and other rights as the Company’s other stockholders. 
 Article 10.    Protection Against Dilution; Adjustment of Awards. 
 10.1    General.    In the event of a subdivision of the outstanding Common Shares, a declaration of a dividend payable in Common Shares, a declaration of a dividend payable in a form other than
Common Shares, a combination or consolidation of the outstanding Common Shares (by reclassification or otherwise) into a lesser number of Common Shares, a recapitalization, a spinoff or a similar occurrence, the Committee shall make appropriate
adjustments in one or more of (a) the number of Options, Restricted Shares and Performance Share Awards available for future Awards under Article 3, (b) the number of Performance Share Awards included in any prior Award which has not yet
been settled, (c) the number of Common Shares covered by each outstanding Option or (d) the Exercise Price under each outstanding Option. 
 10.2 Reorganizations.    In the event that the Company is a party to a merger or other reorganization, outstanding Options, Restricted Shares and Performance Share Awards shall be subject to the
agreement of merger or reorganization. Such agreement may provide, without limitation, for the assumption of outstanding Awards by the surviving corporation or its parent, for their continuation by the Company (if the Company is a surviving
corporation), for accelerated vesting or for settlement in cash. 
 10.3    Reservation of
Rights.    Except as provided in this Article 10, a Participant shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or
decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or Exercise Price of Common Shares subject to an Option. The grant of an Award pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 

 Article 11. Limitation of Rights. 
 11.1    Employment Rights.    Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain employed by
the Company or any Subsidiary. The Company and its Subsidiaries reserve the right to terminate the employment of any employee at any time, with or without cause, subject only to a written employment agreement (if any). 
 11.2    Stockholders’ Rights.    A Participant shall have no dividend rights, voting rights
or other rights as a stockholder with respect to any Common Shares covered by his or her Award prior to the issuance of a stock certificate for such Common Shares. No adjustment shall be made for cash dividends or other rights for which the record
date is prior to the date when such certificate is issued, except as expressly provided in Articles 7, 9 and 10. 
 11.3
Creditors’ Rights. A holder of Performance Share Awards shall have no rights other than those of a general creditor of the Company. Performance Share Awards represent unfunded and unsecured obligations of the Company, subject to the terms and
conditions of the applicable Stock Award Agreement. 
 11.4    Government    Regulations.    Any other provision of the Plan notwithstanding, the obligations of the Company with respect to Common Shares to be issued pursuant to the
Plan shall be subject to all applicable laws, rules and regulations, and such approvals by any governmental agencies as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Common Shares pursuant to any
Award until such time as: 
 (a) Any legal requirements or regulations have been met relating to the issuance of such Common
Shares or to their registration, qualification or exemption from registration or qualification under the Securities Act of 1933, as amended, or any applicable state securities laws; and 
 (b) Satisfactory assurances have been received that such Common Shares, when issued, will be duly listed on the New York Stock Exchange
or any other securities exchange on which Common Shares are then listed. 
 Article 12. Withholding Taxes. 
 12.1 General. To the extent required by applicable federal, state, local or foreign law, the recipient of any payment or distribution
under the Plan shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise by reason of such payment or distribution. The Company shall not be required to make such payment or distribution
until such obligations are satisfied. 
 12.2 Nonstatutory Options, Restricted Shares or Performance Share Awards. The
Committee may permit an Optionee who exercises NSOs, or who receives Awards of Restricted Shares, or who receives Common Shares pursuant to the terms of a Performance Share Award, to satisfy all or part of his or her withholding tax obligations by
having the Company withhold a portion of the Common Shares that otherwise would be issued to him or her under such Awards. Such Common Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. The
payment of withholding taxes by surrendering Common Shares to the Company, if permitted by the Committee, shall be subject to such restrictions as the Committee may impose, including any restrictions required by rules of the Securities and Exchange
Commission. 

 Article 13.    Assignment or Transfer of Award. 
 13.1    General Rule.    Any Award granted under the Plan shall not be anticipated, assigned,
attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law, except to the extent specifically permitted by Section 13.2. 
 13.2    Exceptions to General Rule.    Notwithstanding Section 13.1, this Plan shall not
preclude (i) a Participant from designating a beneficiary to succeed, after the Participant’s death, to those of the Participant’s Awards (including without limitation, the right to exercise any unexercised Options) as may be
determined by the Company from time to time in its sole discretion, (ii) a transfer of any Award hereunder by will or the laws of descent or distribution, or (iii) a voluntary transfer of an Award (other than an ISO) to a trust,
partnership or limited liability company for the benefit of one or more members of the Participant’s family, subject to the prior approval of the Committee or its designee; provided that, in the case of an Award granted prior to
September 25, 2002, such approval shall not be required for a transfer to a trust or partnership if the Participant has sole investment control over such trust or partnership. 
 Article 14.    Future of Plans. 
 14.1    Term of the Plan.    The Plan, as set forth herein, shall become effective on February 26, 1997. The Plan shall remain in effect until it is terminated under Section 15.2, except that no
Awards shall be made after March 24, 1997. 
 14.2    Amendment or
Termination.    The Board may at any time terminate this Plan, and the Board or the Committee make such modifications of the Plan as it shall deem advisable; provided, however, that any amendment of the Plan shall be subject to
the approval of the Company’s stockholders to the extent required by applicable laws, regulations or rules. 
 14.3
Effect of Amendment or Termination.    No Award shall be made under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect any Option, Restricted Share or Performance Share
Award previously granted under the Plan. 
 Article 15.    Definitions. 
 15.1    “Award” means any award of an Option, a Restricted Share or a Performance Share Award under the
Plan. 
 15.2    “Award Year” means a fiscal year beginning January 1 and ending
December 31 with respect to which an Award may be granted. 
 15.3    “Board” means the
Company’s Board of Directors, as constituted from time to time. 
 15.4    “Change in
Control” means the occurrence of any of the following events after the effective date of the Plan as set out in Section 15.1: 
 (a) A change in control required to be reported pursuant to Item 6(e) of Schedule 14A of Regulation 14A under the Exchange Act; 
 (b) A change in the composition of the Board, as a result of which fewer 

 
than two-thirds of the incumbent directors are directors who either (i) had been directors of the Company 24 months prior to such change or
(ii) were elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the directors who had been directors of the Company 24 months prior to such change and who were still in office at the time of the
election or nomination; 
 (c) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act)
becomes the beneficial owner, directly or indirectly, of securities of the Company representing 20 percent or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under
special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); provided, however, that any change in the relative beneficial ownership of securities of any person resulting solely from a reduction in
the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s
beneficial ownership of any securities of the Company. 
 15.5 “Code” means the Internal Revenue Code of 1986, as
amended. 
 15.6 “Committee” means the Compensation Committee of the Board, as constituted from time to time.

 15.7 “Common Share” means one share of the common stock of the Company. 
 15.8    “Company” means The Charles Schwab Corporation, a Delaware corporation. 
 15.9 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
 15.10 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 15.11    “Exercise Price” means the amount for which one Common Share may be purchased upon exercise of an
Option, as specified by the Committee in the applicable Stock Option Agreement. 
 15.12    “Fair
Market Value” means the market price of a Common Share, determined by the committee as follows: 
 (a) If the Common
Share was traded on a stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported by the applicable composite-transactions report for such date; 
 (b) If the Common Share was traded over-the-counter on the date in question and was classified as a national market issue, then the Fair
Market Value shall be equal to the last transaction price quoted by the NASDAQ system for such date; 
 (c) If the Common
Share was traded over-the-counter on the date in question but was not classified as a national market issue, then the Fair Market Value shall be equal to the mean between the last reported representative bid and asked prices quoted by the NASDAQ
system for such date; and 
 (d) If none of the foregoing provisions is applicable, then the Fair Market 

 Value shall be determined by the Committee in good faith on such basis as it deems
appropriate. 
 15.13 “ISO” means an incentive stock option described in section 422(b) of the Code. 
 15.14 “Key Employee” means a key common-law employee of the Company or any Subsidiary, as determined by the Committee.

 15.15 “Named Executive Officer” means a Participant who, as of the date of vesting of an Award is one of a group
of “covered employees,” as defined in the Regulations promulgated under Code Section 162(m), or any successor statute. 
 15.16    ”Non-Employee Director” means a member of the Board who is not a common-law employee. 
 15.17 “NSO” means an employee stock option not described in sections 422 through 424 of the Code. 
 15.18 “Option” means an ISO or NSO or, in the case of a Key Employee who is subject to the tax laws of a foreign jurisdiction, an option qualifying for favorable tax treatment under the
laws of such jurisdiction, including a Replacement Option, granted under the Plan and entitling the holder to purchase one Common Share. 
 15.19 “Optionee” means an individual, or his or her estate, legatee or heirs at law that holds an Option. 
 15.20 “Participant” means a Non-Employee Director or Key Employee who has received an Award. 
 15.21    “Performance Share Award” means the conditional right to receive in the future one Common Share, awarded to a Participant under the Plan. 
 15.22    “Plan” means this 1987 Stock Option Plan of The Charles Schwab Corporation, as it may be amended
from time to time. 
 15.23    “Replacement Option” means an Option that is granted when a
Participant uses a Common Share held or to be acquired by the Participant to exercise an Option and/or to satisfy tax withholding requirements incident to the exercise of an Option. 
 15.24    “Restricted Share” means a Common SIhare awarded to a Participant under the Plan. 
 15.25 “Stock Award Agreement” means the agreement between the Company and the recipient of a Restricted Share or Performance
Share Award which contains the terms, conditions and restrictions pertaining to such Restricted Share or Performance Share Award. 
 15.26 “Stock Option Agreement” means the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her option. 
 15.27 “Subsidiary” means any corporation, if the Company and/or one or more other Subsidiaries own not less than 50 percent of
the total combined voting power of all classes of outstanding stock of such corporation. A corporation 

 
that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
 15.28. “Retirement” shall mean any termination of employment of an Optionee for any reason other than death at any time after
the Optionee has attained fifty (50), but only if, at the time of such termination, the Participant has been credited with at least seven (7) Years of Service under the Charles Schwab Profit Sharing and Employee Stock Ownership Plan. The
foregoing definition shall apply to all Stock Option Agreements entered into pursuant to the Plan, irrespective of any definition to the contrary contained in any such Stock Option Agreement. 
 15.29 “Disability” means the inability to engage in any substantial gainful activity considering the Participant’s age,
education and work experience by reason of any medically determined physical or mental impairment that has continued without interruption for a period of at least six months and that can be expected to be of long, continued and indefinite duration.
All determinations as to whether a Participant has incurred a Disability shall be made by the Employee Benefits Administration Committee of the Company, the findings of which shall be final, binding and conclusive. 
 ADDENDUM A 
 The provisions
of the Plan, as amended by the terms of this Addendum A, shall apply to the grant of Approved Options to Key U.K. Employees. 
 1. For purposes of this Addendum A, the following definitions shall apply in addition to those set out in section 16 of the Plan: 
 Approved Option Means a stock option designed to qualify as an approved executive share option under the Taxes Act; 
 Inland Revenue means the Board of the Inland Revenue in the United Kingdom. 
 Key U.K.
Employee means a designated employee of Sharelink Investment Services plc or any subsidiary (as that term is defined in the Companies Act 1985 of the United Kingdom, as amended) of which Sharelink Investment Services plc has control for the purposes
of section 840 of the Taxes Act; 
 Taxes Act means the Income and Corporation Taxes Act 1988 of the United Kingdom.

 2. An Approved Option may only be granted to a Key U.K. Employee who: 
 (i) is employed on a full-time basis; and 
 (ii) does not fall within the provisions of paragraph 8 of Schedule 9 to the Taxes Act. 
 For purposes of this section 2(i) of Addendum A, “full-time” shall mean an employee who is required to work 20 hours per week, excluding meal breaks. 
 3. No Approved Option may be granted to a Key U.K. Employee if it would cause the aggregate of the exercise price of all subsisting Approved Options granted to such employee under the Plan, or
any other subsisting options granted to such employee under any other share option scheme approved under Schedule 9 of the Taxes Act and established by the Company or an associated company, to 

 
exceed the higher of (a) one hundred thousand pounds sterling and (b) four times such employee’s relevant emoluments for the current or
preceding year of assessment (whichever is greater); but where there were no relevant emoluments for the previous year of assessment, the limit shall be the higher of one hundred thousand pounds sterling) or four times such employee’s relevant
emoluments for the period of twelve months beginning with the first day during the current year of assessment in respect of which there are relevant emoluments. For the purpose of this section 3 of Addendum A, “associated company” means an
associated company within the meaning of section 416 of the Taxes Act; “relevant emoluments” has the meaning given by paragraph 28(4) of Schedule 9 to the Taxes Act and “year of assessment” means a year beginning on any
April 6 and ending on the following April 5. 
 4. Common Shares issued pursuant to the exercise of Approved
Options must satisfy the conditions specified in paragraphs 10 to 14 of Schedule 9 to the Taxes Act. 
 5. Notwithstanding
the provisions of Section 5.4 of the Plan, the exercise price of an Approved Option shall not be less than 100 percent of the closing price of a Common Share as reported in the New York Stock Exchange Composite Index on the date of grant.

 6. No Approved Option may be exercised at any time by a Key U.K. Employee when that Key U.K. Employee falls within the
provisions of paragraph 8 of Schedule 9 to the Taxes Act. If at any time the shares under an Approved Option cease to comply with the conditions in paragraphs 10 to 14 of Schedule 9 to the Taxes Act, then all Approved Options then outstanding shall
lapse and cease to be exercisable from the date of the shares ceasing so to comply, and no optionee shall have any cause of action against the Company, Sharelink Investment Services plc or any subsidiary of the Company or any other person in respect
thereof. 
 7. An Approved Option may contain such other terms, provisions and conditions as may be determined by the
Committee consistent with the Plan, provided that the approved option otherwise complies with the requirements for approved executive option schemes specified in Schedule 9 of the Taxes Act. 
 8. In relation to an Approved Option, notwithstanding the terms of section 10.1 of the Plan, no adjustment shall be made pursuant to
section 10.1 of the Plan to any outstanding Approved Options without the prior approval of the Inland Revenue. 
 9. In
relation to an Approved Option any Key U.K. Employee shall make arrangements satisfactory to the Company for the satisfaction of any tax withholding or deduction - - at - - source obligations that arise by reason of the grant to him or her of such
option, or its subsequent exercise. 
 10. In relation to an Approved Option, in addition to the provisions set out in
section 15.2 of the Plan, no amendment which affects any of the provisions of the Plan relating to Approved Options shall be effective until approved by the Inland Revenue, except for such amendment as are required to obtain and maintain the
approval of Inland Revenue pursuant to Schedule 9 to the Taxes Act. 

 NON-OUALIFIED STOCK OPTION AGREEMENT 
 (1987 Stock Option Plan, as first amended) 
  
  

THIS AGREEMENT, made as of this              of
                , 19    , by and between The Charles Schwab Corporation a Delaware corporation (“Company”), and
                         (“Optionee”). 
 WITNESSETH: 
 WHEREAS, there has been granted to Optionee, effective as
of                     , 19    , a non-qualified stock option under the 1987 Stock Option Plan, as first amended,
of the Company (“Option Plan”); 
 NOW, THEREFORE, it is mutually agreed as follows: 
 1. The Optionee shall have a non-qualified stock option to acquire
             shares of common stock of the Company (the “Shares”), at a price of $
                 per share. 
 2.
Optionee acknowledges that paragraph 5(a) of the Option Plan imposes significant restrictions on Optionee’s ability to exercise this option. 
 3. This is a non-statutory stock option and the provisions of paragraph 5(b) of the Option Plan are inapplicable to this Option. With that exception and except as provided in paragraphs 4, 5 and 6 below, the other
terms of this option shall be the same as without limitation, vesting of Shares, limitations on exercise and transfer, and other restrictions. The Option Plan is attached hereto as Exhibit A and is incorporated herein by this reference. Optionee has
read the Option Plan and, other than for the provisions of paragraph 5(b) of the Option Plan and as provided in paragraphs 4, 5 and 6 below, agrees to be bound by its terms. Without limitation, Optionee specifically acknowledges the representations,
warranties and agreements contained in paragraph 6(e) of the Option Plan. 
 4. Notwithstanding paragraph 6(b) of the Option
Plan, in the event Optionee’s employment, service as a director or provision of independent contractor services with or for the Company and its subsidiaries terminates by reason of Optionee’s death or permanent disability, all shares then
not deemed to be Vested thereupon will be deemed immediately Vested. For this purpose, “permanent disability” will mean the reasonable determination by a qualified physician acceptable to the Company that the Optionee has an illness or
incapacity that has disabled, or will disable, the Optionee from rendering his or her normal services to the company and its subsidiaries for a period of more than six (6) consecutive months in any consecutive twelve (12) month period.

 5. If the Company fails to timely exercise its right to repurchase Unvested Shares, those Shares will be treated as Vested
Shares. Options underlying Unvested Shares may not be exercised once vesting ceases. 
 6. Any notice to be given by the
Optionee under the terms of the Option Plan shall be deemed to have been duly given, and effective upon receipt, if sent by Certified Mail, postage and certification prepaid, to The Charles Schwab Corporation, 101 Montgomery Street, San Francisco,
California 94104, Attention: Corporate Secretary, except as superseded by a different address noticed to 

 
Optionee. 
 IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed as of the day and year referred to above. 
  

			
	BY:	 	 
		 	 on Behalf of

		 	 The Charles Schwab Corporation

		 	 (“Company”)

		
		 	 
		 	 Optionee

  

					
	Attachments:	    	(1)	  	Spousal Consent
		    	(2)	  	Exhibit A: 1987 Stock Option Plan, as first amended.

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