Document:

The Charles Schwab Corporation Long Term Incentive Plan.

 Exhibit 10.321 
 The Charles Schwab Corporation 
 Long Term Incentive Plan 
 (Amended and Restated December 12, 2007) 
 (Amended and Restated October 23, 2008) 
 Section 1. PURPOSE 
 The Charles Schwab Corporation Long Term Incentive Plan (the “Plan”) is intended to provide financial incentives to selected management employees to contribute to the long-term success of The Charles Schwab
Corporation and its affiliated companies (collectively the “Company”). 
 Section 2. DEFINITIONS 
 As used in this Plan, the following capitalized terms shall have the meanings set forth below: 
 a) “Administrative Committee” means the committee of the Plan, which shall consist of the individuals occupying the following three offices of the Corporation: 
 Chairman of the Board of Directors 
 Chief
Executive Officer and President 
 Chief Financial Officer 
 b) “Award” means the cash amount payable to a Participant pursuant to the provisions of this Plan. 
 c)
“Board” means the Board of Directors of The Charles Schwab Corporation. 
 d) “Change in Control” means the occurrence of any of the
following events after the effective date of the Plan but only to the extent that such change in control transaction is a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets
of the Company as defined in the regulations promulgated under section 409A of the Code: 
  

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

  

	 	(2)	 A change in the composition of the Board, as a result of which fewer than fifty percent (50%) of the incumbent directors are directors who either (i) had
been directors of the Company twelve (12) 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
twelve (12) months prior to such change and who were 

  

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still in office at the time of the election or nomination; 

  

	 	(3)	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 thirty percent (30%) 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.

 e) “Committee” means the Compensation Committee of the Board of Directors of The Charles Schwab Corporation. 
 f) “Covered Employees” means a Participant who, as of the date of payment of an Award is one of a group of “covered employees,” as defined in the
Regulations promulgated under Section 162(m) of the Internal Revenue Code of 1986, or any successor statute. 
 g) “Determination Date” means
the date on which the Participants, Performance Goals and Target Awards are determined for any Performance Period. 
 h) “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. 
 i) “Participant” means an eligible employee of the Company who has been designated
as a Participant in accordance with section 3 hereof. 
 j) “Performance Goal” shall mean a measure of corporate performance (such as cumulative
earnings per share), that shall be selected by the Committee to be used as the basis for determining the amounts payable pursuant to the Plan for a Performance Period. Performance goals shall be selected from among the following: revenue growth, net
revenue growth, operating revenue growth, consolidated pretax profit margin, consolidated pretax operating margin, consolidated after-tax profit margin, consolidated after-tax operating profit margin, customer net new asset growth, stockholder
return, return on assets, earnings per share, return on equity, and return on investment. 
  

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 k) “Performance Period” means a period of four fiscal years of the Company, or such other period as may be
specified by the Committee, which has been designated by the Committee as a period for which Awards may be paid pursuant to the Plan. The Committee may authorize more than one Performance Period to be in effect at any one time. 
 l) “Retirement” shall mean any termination of employment of a Participant for any reason other than death at any time after the Participant has attained
Retirement Age. For awards granted prior to October 23, 2008, Retirement Age shall mean age 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
Schwab Plan Retirement Savings and Investment Plan. For awards granted on or after October 23, 2008, Retirement Age shall mean age fifty-five (55), but only if, at the time of such termination, the Participant has been credited with at least
ten (10) Years of Service under the Schwab Plan Retirement Savings and Investment Plan. 
 m) “Target Award” has the meaning assigned thereto
in Section 5 (a) hereof. 
 Section 3. ELIGIBILITY 
 a) Participation in the Plan is limited to officers (and officer equivalents) of the Company, as may be selected for participation in the Plan by the Committee as of each Determination Date. 
 b) Participants generally shall be selected at the beginning of the Performance Period. After the Performance Period has commenced, the Committee shall have the
authority to designate additional Eligible Participants under this Plan, and the amount of the Award payable to such individuals who become Participants after the Determination Date for that Performance Period shall be pro-rated to reflect the
portion of the Performance Period during which such Eligible Participant was a Participant in the Plan. 
 Section 4. PLAN TERM 
 The Plan shall become effective as of January 1, 2003, and shall continue in effect until terminated by the Committee. 
 Section 5. PERFORMANCE CRITERIA AND TARGET AWARDS 
 a) Performance
Period and Target Awards. The length of each Performance Period shall be the four year period commencing as of any Determination Date, or such other period as may be specified by the Committee. On the Determination Date for a Performance Period, the
Committee shall determine for each Participant an amount, which may be expressed in Plan Units, that shall be payable to the Participant as an Award for that Performance Period if the Performance Goal for that Performance Period is achieved (the
“Target Award”). The Committee shall have the authority to delegate to the Company’s executive management the authority to issue Target Awards to Participants, other than executive officers. 
  

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 b) Performance Goals. As of the Determination Date for a Performance Period, the Committee shall establish a Performance
Goal for the Performance Period. The Committee may specify that the Performance Goal may include a threshold level of performance below which no Award shall be payable, levels of performance at which specified percentages or multiples of the Target
Award shall be payable, and a maximum level of performance above which no additional Award shall be paid; provided that in calculating the value of an Award, the maximum multiple shall be 400% of the Target Award. 
 c) Equitable Adjustment. The Committee shall have the discretion to make equitable adjustments to Performance Goals in recognition of unusual or non-recurring events
affecting the Company, its financial statements or its shares, in response to changes in applicable laws or regulations, or to account for items of gain, loss or expense determined to be extraordinary or unusual in nature or infrequent in occurrence
or related to the acquisition, disposition or discontinuance of a business or a segment of a business, or related to a change in accounting principles, or to reflect capital changes. 
 d) Certification and Restrictions on Amount of Awards. Following the end of each Performance Period, the Committee shall be required to certify whether and the extent to which the Performance Goal for the Performance
Period was satisfied before any Award is paid to any Participant. 
 With respect to any Performance Period, at any time before an Award for such Performance
Period is paid, the Committee may establish a ceiling on the aggregate amount which may be paid out in Awards for such Performance Period. In the event that such a limit is established for any Performance Period, the Awards otherwise payable to all
Participants for such Performance Period shall be reduced pro-rata. 
 The amount of any Award may be pro-rated for any period of time during which the
Participant was not an active employee of the Company or any of its Subsidiaries, including leaves of absence and other periods as may be determined by the Company in its discretion. 
 e) Maximum Target Award. In no event shall the total amount of Target Awards granted to any Participant pursuant to the Plan in any calendar year exceed $3,000,000. 
 f) Delegation to Management. The Committee shall have the authority to delegate to the executive officers of the Company the authority to issue Target Awards to
Participants, other than executive officers. 
 Section 6. CALCULATION OF AMOUNT OF AWARDS 
 The amount of Awards payable for a Performance Period will be calculated as soon as practicable following the close of each Performance Period, in accordance with the provisions of Section 8 of this plan.

 Section 7. VESTING 
 Subject to the remaining provisions
of the Plan, and subject to the authority of the Committee to authorize a different vesting schedule at 

  

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the time it authorizes the granting of a Target Award, Awards shall become vested only if the Participant remains continuously employed with the Company from
the date the Participant receives a Target Award, in accordance with the following schedule: 
  

				
	 Vesting Date
	  	Vested Percentage % of
Award (Cumulative)	 
	 1st Anniversary of Target Award
	  	0	%
	 2nd Anniversary of Target Award
	  	25	%
	 3rd Anniversary of Target Award
	  	50	%
	 4th Anniversary of Target Award
	  	100	%

 Section 8. PAYMENT OF AWARDS 
 Awards will be paid in cash on or after January 1st
 and on or before March 15th of the calendar year immediately following the end of the last fiscal
year on which the award is based, but not prior to certification of the Company’s results by its independent auditors for all years of the Performance Period. Subject to the provisions of Section 9, a Participant will be entitled to
payment of an Award only if the Participant has been continuously employed by the Company throughout the Performance Period and is still in the employ of (and has not delivered notice of resignation to) the Company on the date of payment of the
Award). The Company will withhold from payments all applicable taxes as may be required by applicable law. 
 Section 9. TERMINATION OF EMPLOYMENT
DURING A PERFORMANCE PERIOD 
 (a) Death or Disability. Effective for target awards made before July 19, 2004, if a Participant’s employment is
terminated as a result of death or disability at any time after the first two years of a Performance Period (and before completion of the Performance Period), such Participant or Participant’s estate shall be entitled to receive the Award such
Participant would have been entitled to receive, pro-rated to reflect the actual amount of time that such person was a Participant in the Plan for such Performance Period, valued and payable as determined by the Administrative Committee as soon as
practicable following the end of the calendar quarter that includes the date of the Participant’s date of death. Effective for target awards made on or after July 19, 2004, if a Participant’s employment is terminated as a result of
death or disability at any time after the first two years of a Performance Period (and before completion of the Performance Period), such Participant or Participant’s estate shall be entitled to receive the entire Award such Participant would
have been entitled to, based on Company performance and payable at the time Awards are paid to all other Participants for such Performance Period. If a Participant’s employment is terminated as a result of death or disability at any time during
the first two years of a Performance Period (and before completion of the Performance Period), such Participant shall be entitled to receive a pro-rated Award, based on the number of whole months in the Performance Period prior to the
Participant’s termination, based on Company performance and payable at the time Awards are paid to all other Participants for such Performance Period. 
 (b) Retirement after first two years of a Performance Period. If a 
  

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 Participant’s employment is terminated on account of Retirement at any time after the first two years of a
Performance Period (and before completion of the Performance Period), such Participant shall be entitled to receive the entire Award such Participant would have been entitled to, based on Company performance and payable at the time Awards are paid
to all other Participants for such Performance Period. 
 (c) Other Termination of Employment. If a Participant’s employment is terminated for any
reason other than death, disability or Retirement at any time after the first two years of a Performance Period (and before completion of the Performance Period), such Participant shall be entitled to receive the Award such Participant would have
been entitled to, multiplied by the Participant’s vested percentage at the time of termination, based on Company performance and payable at the time Awards are paid to all other Participants for such Performance Period. 
 (d) Termination of Employment After the End of a Performance Period but Prior to Payment. If, after the completion of a Performance Period and before the payment of an
Award, a Participant’s employment with the Company terminates by reason of the Participant’s death, Disability or Retirement, the Participant shall be entitled to the payment of any Award for such Performance Period. Any Award payable to a
deceased Participant shall be paid to the Participant’s estate. 
 Section 10. AMENDMENTS, MODIFICATIONS, AND TERMINATION OF THE PLAN 

The Committee may terminate, modify or amend the Plan at any time, provided that such action shall not affect the rights of the Plan Participants to awards that were
granted prior to the date of such termination, modification or amendment. 
 Section 11. NO RIGHT TO CONTINUED EMPLOYMENT 
 The designation of an employee as a Participant for any Performance Period or the receipt of an award by a Participant shall not give the Participant any right to
continued employment by the Company for any period of time, and the right to dismiss any employee is specifically reserved by the Company. 
 Section 12. CHANGE IN CONTROL 
 In the event of a Change in Control, all Awards shall become fully payable within seventy (70) days
following such Change in Control, and the value of all Awards shall be determined by the Committee as soon as practicable following the end of the calendar quarter immediately preceding the Change in Control. 
 Section 13. GOVERNING LAW 
 The Plan shall be construed and its
provisions enforced and administered in accordance with the laws of the State of California. 
  

 6The Charles Schwab Corporation Deferred Compensation Plan II.

 Exhibit 10.322 
 THE CHARLES SCHWAB CORPORATION 
 DEFERRED COMPENSATION PLAN II 
 (Effective December 9, 2004) 
 (Amended
and Restated December 12, 2007) 
 (Amended and Restated October 23, 2008) 
  
  
 Table of Contents 
  

					
	ARTICLE 1:	  	 PURPOSE
	  	1
	1.1  	  	Establishment of the Plan	  	1
	1.2  	  	Purpose of the Plan	  	1
	ARTICLE 2:	  	 DEFINITIONS
	  	1
	2.1  	  	Definitions	  	1
	2.2  	  	Gender and Number	  	3
	ARTICLE 3:	  	 ADMINISTRATION
	  	3
	3.1  	  	Committee and Administrator	  	3
	ARTICLE 4:	  	 PARTICIPANTS
	  	3
	4.1  	  	Participants	  	3
	ARTICLE 5:	  	 DEFERRALS
	  	4
	5.1  	  	Salary Deferrals	  	4
	5.2  	  	Deferrals of Bonuses, Commissions and Other Cash Incentive Compensation	  	4
	5.3  	  	Timing of Elections	  	4
	5.4  	  	Deferral Procedures	  	5
	5.5  	  	Election of Time and Manner of Payment	  	5
	5.6  	  	Accounts and Earnings	  	7
	5.7  	  	Maintenance of Accounts	  	8
	5.8  	  	Change in Control	  	8
	5.9  	  	Payment of Deferred Amounts	  	10
	5.10	  	Payment on Certain Events	  	10
	ARTICLE 6:	  	 GENERAL PROVISIONS
	  	10
	6.1  	  	Unfunded Obligation	  	10
	6.2  	  	Informal Funding Vehicles	  	11
	6.3  	  	Beneficiary	  	11
	6.4  	  	Incapacity of Participant or Beneficiary	  	11
	6.5  	  	Nonassignment	  	12
	6.6  	  	No Right to Continued Employment	  	12
	6.7  	  	Tax Withholding	  	12
	6.8  	  	Claims Procedure and Arbitration	  	12
	6.9  	  	Termination and Amendment	  	13
	6.10	  	Applicable Law	  	14

  

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 THE CHARLES SCHWAB CORPORATION 
 DEFERRED COMPENSATION PLAN II 
 ARTICLE 1: PURPOSE 
 1.1 Establishment of the Plan. 
 Effective as
of December 9, 2004, The Charles Schwab Corporation (hereinafter, the “Company”) established The Charles Schwab Corporation Deferred Compensation Plan II (the “Plan”), as set forth in this document. This Plan shall apply to
cash compensation that is earned, deferred and accrued by eligible Participants after December 31, 2004. 
 1.2 Purpose of the Plan.

 The Plan permits participating employees to defer the payment of certain cash compensation that they may earn. The opportunity to elect
such deferrals is provided in order to help the Company attract and retain key employees. This Plan is unfunded and is maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated
employees. It is accordingly intended to be exempt from the participation, vesting, funding, and fiduciary requirements set forth in Title I of the Employee Retirement Income Security Act of 1974. The Plan also is intended to meet the requirements
of section 409A of the Internal Revenue Code of 1986, as amended, (the “Code”) and is to be construed in accordance with that section and any regulatory guidance issued thereunder. 
 ARTICLE 2: DEFINITIONS 
 2.1 Definitions. 
 The following definitions are in addition to any other definitions set forth elsewhere in the Plan. Whenever used in the Plan, the capitalized terms in
this Section 2.1 shall have the meanings set forth below unless otherwise required by the context in which they are used: 
 (a)
“Administrator” the administrator described in Section 3.1 that is selected by the Committee to assist in the administration of the Plan. 
 (b) “Beneficiary” means a person entitled to receive any payments that remain to be paid after a Participant’s death, as determined under Section 6.3. 
 (c) “Board” means the Board of Directors of the Company. 
 (d) “Company” means The Charles Schwab Corporation, a Delaware corporation. 
 (e) “Category 1
Participant” and “Category 2 Participant” each refer to a specific Participant group and have the meaning set forth in Section 4.1. 
 (f) “Committee” means the Compensation Committee of the Board. 
  

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 (g) “Deferral Account” means the account representing deferrals of cash compensation, plus
investment adjustments, as described in Sections 5.6 and 5.7. 
 (h) “Disability” means a condition such that an individual is
“disabled” within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder. Generally, an individual who is disabled (a) is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (b) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the Company or its Subsidiaries. 
 (i) “Participant” means any employee who meets the eligibility
requirements of the Plan, as set forth in Article 4, and includes, where appropriate to the context, any former employee who is entitled to payments under this Plan. 
 (j) “Plan” means The Charles Schwab Corporation Deferred Compensation Plan II, as in effect from time to time. 
 (k) “Plan Year” means the calendar year. 
 (l) “Retirement” shall mean: a Separation
from Service with respect to the Company and its Subsidiaries for any reason other than death at any time after the Participant has attained age fifty (50), but only if, at the time of such termination, the Participant has been credited with at
least seven (7) Years of Service for deferrals elected prior to October 23, 2008. For deferrals elected on or after October 23, 2008, “Retirement” shall mean: a Separation from Service with respect to the Company and its
Subsidiaries for any reason other than death at any time after the Participant has attained age fifty-five (55), but only if, at the time of such termination, the Participant has been credited with at least ten (10) Years of Service.

 For purpose of this subparagraph (l), the term “Years of Service” shall have the same meaning given to it under the SchwabPlan
Retirement Savings and Investment Plan (or any successor plan). 
 (m) “Separation from Service” or “Separate(s) from
Service” means “Separation from Service” within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder. Generally, a separation from service occurs when an individual ceases to provide services for
the Company and its affiliates. 
 (n) “Specified Employee” means a “specified employee” within the meaning of section
409A of the Code and any regulatory guidance promulgated thereunder, provided that in determining the compensation of individuals for this purpose, the definition of compensation in Treas. Reg. § 1.415(c)-2(d)(2) shall be used. 

 

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 (o) “Subsidiary” means a corporation or other business entity in which the Company owns,
directly or indirectly, securities with more than 80 percent of the total voting power. 
 (p) “Unforeseeable Emergency” means a
severe financial hardship to the Participant resulting from (i) an illness or accident of the Participant, the Participant’s spouse, or the Participant’s dependent (as defined in section 152(a) of the Code); (ii) loss of the
Participant’s property due to casualty; or (iii) other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, as determined in the sole discretion of the Administrator in
accordance with section 409A of the Code. 
 (q) “Valuation Date” means each December 31 and any other date designated from
time to time by the Committee for the purpose of determining the value of a Participant’s Deferral Account balance pursuant to Section 5.6. 
 2.2 Gender and Number. 
 Except when otherwise indicated by the context, any masculine or feminine
terminology shall also include the neuter and other gender, and the use of any term in the singular or plural shall also include the opposite number. 
 ARTICLE 3: ADMINISTRATION 
 3.1 Committee and Administrator. 
 The Committee shall administer the Plan and may select one or more persons to serve as the Administrator. The Administrator shall perform such
administrative functions as the Committee may delegate to it from time to time. Any person selected to serve as the Administrator may, but need not, be a Committee member or an officer or employee of the Company. However, if a person serving as
Administrator or a member of the Committee is a Participant, such person may not vote on a matter affecting his or her interest as a Participant. 
 The Committee shall have discretionary authority to construe and interpret the Plan provisions and resolve any ambiguities thereunder; to prescribe, amend, and rescind administrative rules relating to the Plan; to select the employees who
may participate and to terminate the future participation of any such employees; to determine eligibility for benefits under the Plan; and to take all other actions that are necessary or appropriate for the administration of the Plan. Such
interpretations, rules, and actions of the Committee shall be final and binding upon all concerned and, in the event of judicial review, shall be entitled to the maximum deference allowable by law. Where the Committee has delegated its
responsibility for matters of interpretation and Plan administration to the Administrator, the actions of the Administrator shall constitute actions of the Committee. 
 ARTICLE 4: PARTICIPANTS 
 4.1 Participants. 
  

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 Officers and other key employees of the Company and each of its Subsidiaries shall be eligible to
participate in this Plan upon selection by the Administrator. To be nominated for participation, an employee must be a member of a select group of management or highly compensated employees. Directors of the Company who are full-time employees of
the Company shall be eligible to participate in the Plan. Participating employees of the Company in the position of Executive Vice President or above shall be “Category 1 Participants.” All other participating employees shall be
“Category 2 Participants.” 
 ARTICLE 5: DEFERRALS 
 5.1 Salary Deferrals. 
 Each Category 2 Participant selected under Section 4.1 may elect to defer up to
50 percent of his or her regular base salary (subject to the provisions of this Article 5). Any such election must be made by entering into a deferred compensation agreement with the employer in accordance with procedures established by the
Administrator on or before the applicable deadline under Section 5.3 for the election period during which the services for which the deferred salary is to be earned are performed. Deferral elections shall apply only to a single Plan Year and
new deferral elections must be made with respect to each Plan Year. 
 5.2 Deferrals of Bonuses, Commissions and Other Cash Incentive
Compensation. 
 Each Category 1 Participant and each Category 2 Participant may elect to defer all or any portion (subject to the provisions
of this Article 5) of (a) his or her commissions (if permitted by the Administrator for the applicable Plan Year); and (b) any amount that he or she subsequently earns under an annual cash bonus program and/or a long-term cash incentive
compensation program of the Company or a participating Subsidiary. Any such election must be made by entering into a deferred compensation agreement with the employer in accordance with procedures established by the Administrator on or before the
applicable deadline under Section 5.3. Deferral elections shall apply only to a single Plan Year and new deferral elections must be made with respect to each Plan Year. 
 5.3 Timing of Elections. 
 (a) Except as
otherwise provided under subparagraph (b) or (c) or (d) below, compensation for services performed during a Plan Year may be deferred at the Participant’s election only if the election to defer such compensation is made not later
than the close of the preceding Plan Year or, if permitted by the Administrator in its sole discretion, at such other time permitted under the Code. 
 (b) To the extent permitted under section 409A of the Code and any regulatory guidance promulgated thereunder, in the case of the first Plan Year in which a Participant becomes eligible to participate in the Plan, the
Administrator may, in its sole discretion, provide that the Participant may make an election to defer compensation for services to be performed subsequent to the election provided that such 

  

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election is made not later than 30 days after the date the Participant becomes eligible to participate in the Plan. The election shall only apply to
compensation earned after the effective date of the election. 
 (c) In the case of “performance-based compensation” within the
meaning of section 409A of the Code and any regulatory guidance promulgated thereunder that is based on services performed over a period of at least 12 months, the Administrator may, in its sole discretion, provide that the Participant may make an
election to defer such performance-based compensation provided that such election is made not later than 6 months before the end of such performance period. 
 (d) In the case of “sales commission compensation” and “investment commission compensation” within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder, the
Administrator may, in its sole discretion, provide that the Participant may make an election to defer such commission compensation at such other time permitted under the Code and any regulatory guidance promulgated thereunder. 
 5.4 Deferral Procedures. 
 Subject to
Section 5.3, Participants eligible to elect salary deferrals under Section 5.1 shall have an opportunity to do so with respect to each Plan Year. Participants eligible to elect deferrals under Section 5.2 shall have a separate
opportunity to do so for each (a) cash bonus under an annual bonus program; (b) cash bonus or incentive payment under a long-term incentive plan; and (c) if permitted by the Administrator, commission that they may earn. The
Administrator shall specify the rules for the deferrals that may be elected. If a deferral is elected, the election shall be irrevocable with respect to the particular compensation that is subject to the election after the deadline for such
deferrals as set forth in Section 5.3. Deferral elections shall be made on a form prescribed by the Committee or the Administrator. As provided in Section 6.7, any deferral is subject to appropriate tax withholding measures and may be
reduced to satisfy tax withholding requirements. 
 5.5 Election of Time and Manner of Payment. 
 (a) At the time a Participant makes a deferral election under Section 5.1 or 5.2, the Participant shall also designate the manner of payment and the
date on which payments from his or her Deferral Account shall begin. Subject to Section 5.5(b), a Participant may elect from among the following options: 
 (i) a lump sum payable in the month of February of any year that the Participant specifies; 
 (ii) a lump
sum payable in the month of February in the year immediately following the Participant’s Retirement; 
 (iii) a series of annual
installments, commencing in any year selected by the Participant and payable each year in February, over a period of four years; or 
  

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 (iv) a series of annual installments, commencing in the year following the Participant’s Retirement
and payable each year in February, over a period of five, ten, or fifteen years, as designated by the Participant. 
 Notwithstanding the
terms of a Participant’s election regarding the manner and date of payment, if a Participant incurs a Separation from Service for any reason other than Retirement or if the Participant does not have a valid election in place, the payment of the
Participant’s entire Deferral Account, including any unpaid installments pursuant to subparagraph (iii) above, shall be made in a single lump sum in the year following the Participant’s Separation from Service in February.
Notwithstanding anything in the Plan to the contrary, if (i) a payment is to commence upon a Participant’s Retirement or other Separation from Service, (ii) the Participant is a Specified Employee at the time of the Separation from
Service, and (iii) the Separation from Service occurs after July, such payment shall commence in the year following the Participant’s Separation from Service in July. 
 Any election of a specified payment date pursuant to subparagraphs (i) or (iii), above, shall be subject to any restrictions that the Committee may,
in its sole discretion, choose to establish in order to limit the number of different payment dates that a Participant may have in effect at one time. 
 (b) Notwithstanding anything to the contrary in this Plan, except as otherwise permitted under section 409A of the Code, a Participant’s Deferral Account shall not be distributed earlier than (i) Separation
from Service or, in the case of a Specified Employee, the date that is at least six (6) months after Separation from Service; (ii) Disability; (iii) death; (iv) the specified time or schedule elected under Section 5.5(a)(i)
or (iii); (v) to the extent permitted under section 409A of the Code and any regulatory guidance promulgated thereunder, a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets
of the Company; or (vi) the occurrence of an Unforeseeable Emergency. 
 (c) The acceleration of the time or schedule of any payment
under the Plan shall not be permitted unless permitted by the Administrator in accordance with the requirements of section 409A of the Code and any regulatory guidance promulgated thereunder. An election made in accordance with
Section 5.5(a)(ii) or (iv) to receive a distribution of a Deferral Account in a lump sum or installments following Retirement may only be changed once. In accordance with the procedures established by the Administrator, a Participant may
elect to delay the timing and or change the form of payment elected provided that (i) the election shall not take effect until at least 12 months after the date on which the election is made; (ii) the first payment with respect to which
such election is made is deferred for a period of not less than five years from the date such payment would otherwise have been made; and (iii) the election shall be made at least 12 months prior to the date of the first scheduled payment.

 (d) If payment is due in the form of a lump sum, the payment shall equal the balance of the Deferral Account being paid, determined as of
the Valuation Date coincident with or immediately preceding the 

  

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payment date. If payment is due in the form of installments, the amount of each installment payment shall be equal to the quotient determined by dividing
(i) the value of the portion of the Deferral Account to which the installment payment election applies (determined as of the Valuation Date coincident with or immediately preceding the date the payment is to be made), by (ii) the number of
years over which the installment payments are to be made, less the number of years in which prior payments attributable to such installment payment election have been made. For purposes of the Plan, installment payments shall be treated as a single
distribution under section 409A of the Code. 
 (e) Notwithstanding the foregoing, however, if earnings or losses or any other amounts
credited to a Participant’s Deferral Account would not be deductible under section 162(m) of the Code if paid at the time provided under the Participant’s election, the payment of such amounts, to the extent in excess of the amount that
would be currently tax deductible, shall automatically be deferred until the earliest year that the payment can be deducted, to the extent such deferral is permitted under section 409A of the Code. 
 5.6 Accounts and Earnings. 
 The Company
shall establish a Deferral Account for each Participant who has elected a deferral under Section 5.1 or 5.2 above, and its accounting records for the Plan with respect to each such Participant shall include a separate Deferral Account or
subaccount for each deferral election of the Participant that could cause a payment made at a different time or in a different form from other payments of deferrals elected by the same Participant. Each Deferral Account balance shall reflect the
Company’s obligation to pay a deferred amount to a Participant or Beneficiary as provided in this Article 5. 
 Under procedures
approved by the Committee and communicated to Participants, a Participant’s Deferral Account balance shall be increased periodically (not less frequently than annually) to reflect an assumed earnings increment, based on an interest rate or
other benchmark selected by the Committee and in effect at the time. Until the time for determining the amount to be paid to the Participant or Beneficiary, such assumed earnings shall accrue from each Valuation Date on the Deferral Account balance
as of that date and shall be credited to the account as of the next Valuation Date. The rate of earnings may, but need not, be determined with reference to the actual rate of earnings on assets held under any existing grantor trust or other informal
funding vehicle that is in effect pursuant to Section 6.2. Any method of crediting earnings that is followed from time to time may, with reasonable advance notice to affected Participants, be revoked or revised prospectively as of the beginning
of any new Plan Year. Earnings that have been credited for any Plan Year, like deferred amounts that have been previously credited to a Participant, shall not be reduced or eliminated retroactively unless they were credited in error. The crediting
of assumed earnings shall not mean that any deferred compensation promise to a Participant is secured by particular investment assets or that the Participant is actually earning interest or any other form of investment income under the Plan.
Consistent with the foregoing authority to exercise flexibility in establishing a method for crediting assumed earnings on account balances, the Committee may, but need not, consult with Participants about their 

  

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investment preferences and may, but need not, institute a program of assumed earnings that tracks the investment performance in a Participant’s
qualified defined contribution plan account or in an assumed participant-directed investment arrangement. 
 5.7 Maintenance of Accounts.

 The Accounts of each Participant shall be entered on the books of the Company and shall represent a liability, payable when due under this
Plan, out of the general assets of the Company. Prior to benefits becoming due hereunder, the Company shall expense the liability for such accounts in accordance with policies determined appropriate by the Company’s auditors. Except to the
extent provided pursuant to the second paragraph of this Section 5.7, the Accounts created for a Participant by the Company shall not be funded by a trust or an insurance contract; nor shall any assets of the Company be segregated or identified
to such account; nor shall any property or assets of the Company be pledged, encumbered, or otherwise subjected to a lien or security interest for payment of benefits hereunder. 
 Notwithstanding that the amounts to be paid hereunder to Participants constitute an unfunded obligation of the Company, the Company may direct that an
amount equal to any portion of the Accounts shall be invested by the Company as the Company, in its sole discretion, shall determine. The Committee may in its sole discretion determine that all or any portion of an amount equal to the Accounts shall
be paid into one or more grantor trusts that may be established by the Company for the purpose of providing a potential source of funds to pay Plan benefits. The Company may designate an investment advisor to direct the investment of funds that may
be used to pay benefits, including the investment of the assets of any grantor trusts hereunder. 
 5.8 Change in Control. 
 In the event of a Change in Control (as defined below), the following rules shall apply: 
 (a) All Participants shall continue to have a fully vested, non-forfeitable interest in their Deferral Accounts. 
 (b) To the extent permitted under section 409A of the Code and any regulatory guidance issued thereunder when the Plan is terminated within 30 days
preceding the Change in Control or the 12 months following the Change in Control, deferrals of amounts for the year that includes the Change in Control shall cease beginning with the first payroll period that follows the termination of the Plan.

 (c) A special allocation of earnings on all Deferral Accounts shall be made under Section 5.6 as of the date of the Change in Control
(such that the date of the Change in Control is a Valuation Date) on a basis no less favorable to Participants than the method being followed prior to the Change in Control. 
 (d) To the extent permitted under section 409A of the Code and any regulatory guidance issued thereunder and not withstanding any election made pursuant
to Section 5.5(a), the unpaid balance of a Participant’s Deferral Account, including any unpaid installments, 

  

 8 

 
shall be distributed in a cash lump sum no later than 30 days following the Change in Control and shall be in an amount equal to the full Deferral Account
balance, as adjusted pursuant to subparagraph (c) above, as of the date of the Change in Control. 
 (e) Subject to section 409A and any
regulatory guidance promulgated thereunder, nothing in this Plan shall prevent a Participant from enforcing any rules in a contract or another plan of the Company or any Subsidiary concerning the method of determining the amount of a bonus,
incentive compensation, or other form of compensation to which a Participant may become entitled following a change in control, or the time at which that compensation is to be paid in the event of a change in control. 
 (f) For purposes of this Plan, a “Change in Control” means any of the Following but only to the extent that such change in control transaction
is a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as defined in the regulations promulgated under section 409A of the Code: 
 (1) Any “person” who, alone or together with all “affiliates” and “associates” of such person, is or becomes (A) an
“acquiring person” or (B) the “beneficial owner” of 35% of the outstanding voting securities of the Company (the terms “acquiring person”, “person”, “affiliates”, “associates” and
“beneficial owner” are used as such terms are used in the Securities Exchange Act of 1934 and the General Rules and Regulations thereunder); provided, however, that a “Change in Control” shall not be deemed to have occurred if
such “person” is Charles R. Schwab, the Company, any subsidiary or any employee benefit plan or employee stock plan of the Company or of any Subsidiary, or any trust or other entity organized, established or holding shares of such voting
securities by, for or pursuant to, the terms of any such plan; or 
 (2) Individuals who at the beginning of any one year period constitute
the Board cease for any reason, during such period, to constitute at least a majority thereof, unless the election, or the nomination for election by the Company’s Shareholders, of each new Board Member was approved by a vote of a majority of
the Board members then still in office who were Board members at the beginning of such one year period; or 
 (3) Approval by the
shareholders of the Company of: 
 (A) the sale or transfer of substantially all of the Company’s business and/or assets to a person or
entity which is not a “subsidiary” (any corporation or other entity a majority or more of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company); or 
 (B) an agreement to merge or consolidate, or otherwise reorganize, with one or more entities which are not subsidiaries (as defined in (A) above),
as a result of which less than 50% of the outstanding voting securities of the surviving or resulting entity are, or are to be, owned by former shareholders of the Company. 
  

 9 

 A Change in Control shall occur on the first day on which any of the preceding conditions has been
satisfied. However, notwithstanding the foregoing, this Section 5.8 shall not apply to any Participant who alone or together with one or more other persons acting as a partnership, limited partnership, syndicate, or other group for the purpose
of acquiring, holding or disposing of securities of the Company, triggers a “Change in Control” within the meaning of paragraphs (1) or (2) above. 
 5.9 Payment of Deferred Amounts. 
 A Participant shall have a fully vested, non-forfeitable interest in his
or her Deferral Account balance at all times. However, vesting does not confer a right to payment other than in the manner elected by the Participant pursuant to Section 5.5 (subject to any modification that may occur pursuant to
Section 5.6 or 5.8). Upon the expiration of a deferral period selected by the Participant in one or more deferral elections or at such earlier time as provided for in Section 5.5, the Company shall pay to such Participant (or to the
Participant’s Beneficiary, in the case of the Participant’s death) an amount equal to the balance of the Participant’s Account attributable to such expiring deferral elections, plus assumed earnings (determined by the Company pursuant
to Section 5.6) thereon. 
 5.10 Payment on Certain Events. 
 Notwithstanding any elections that have been made under Section 5.5, the unpaid balance of a Participant’s Deferral Account, including any
unpaid installments, shall be paid in a lump sum within sixty (60) days in the event of the Participant’s death, Disability, or upon receipt of a written request from a Participant and the Administrator’s determination that the
Participant has incurred an Unforeseeable Emergency; provided, that the amounts distributed because of an Unforeseeable Emergency shall not exceed the amounts necessary to satisfy such Unforeseeable Emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into account the extent to which such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the
individual’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). 
 ARTICLE 6: GENERAL PROVISIONS

 6.1 Unfunded Obligation. 
 The
deferred amounts to be paid to Participants pursuant to this Plan constitute unfunded obligations of the Company. Except to the extent specifically provided hereunder, the Company is not required to segregate any monies from its general funds, to
create any trusts, or to make any special deposits with respect to this obligation. Title to and beneficial ownership of any investments, including any grantor trust investments which the Company has determined and directed the Administrator to make
to fulfill obligations under this Plan shall at all times remain in the Company. Any investments and the creation or maintenance of any trust or Accounts shall not create or constitute a trust or a fiduciary relationship between the Administrator or
the 

  

 10 

 
Company and a Participant, or otherwise create any vested or beneficial interest in any Participant or his or her Beneficiary or his or her creditors in any
assets of the Company whatsoever. The Participants shall have no claim for any changes in the value of any assets which may be invested or reinvested by the Company in an effort to match its liabilities under this Plan. 
 6.2 Informal Funding Vehicles. 
 Notwithstanding Section 6.1, the Company may, but need not, arrange for the establishment and use of a grantor trust or other informal funding vehicle to facilitate the payment of benefits and to discharge the liability of the Company
under this Plan to the extent of payments actually made from such trust or other informal funding vehicle. Any investments and any creation or maintenance of memorandum accounts or a trust or other informal funding vehicle shall not create or
constitute a trust or a fiduciary relationship between the Committee or the Company and a Participant, or otherwise confer on any Participant or Beneficiary or his or her creditors a vested or beneficial interest in any assets of the Company
whatsoever. Participants and Beneficiaries shall have no claim against the Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to this Plan. 
 6.3 Beneficiary. 
 The term
“Beneficiary” shall mean the person or persons to whom payments are to be paid pursuant to the terms of the Plan in the event of the Participant’s death. A Participant may designate a Beneficiary on a form provided by the
Administrator, executed by the Participant, and delivered to the Administrator. The Administrator may require the consent of the Participant’s spouse to a designation if the designation specifies a Beneficiary other than the spouse. Subject to
the foregoing, a Participant may change a Beneficiary designation at any time. Subject to the property rights of any prior spouse, if no Beneficiary is designated, if the designation is ineffective, or if the Beneficiary dies before the balance of
the Account is paid, the balance shall be paid to the Participant’s surviving spouse, or if there is no surviving spouse, to the Participant’s estate. 
 6.4 Incapacity of Participant or Beneficiary. 
 Every person receiving or claiming benefits under the Plan
shall be conclusively presumed to be mentally competent and of age until the date on which the Administrator receives a written notice, in a form and manner acceptable to the Administrator, that such person is incompetent or a minor, for whom a
guardian or other person legally vested with the care of his or her person or estate has been appointed; provided, however, that if the Administrator finds that any person to whom a benefit is payable under the Plan is unable to care for his or her
affairs because of incompetency, or because he or she is a minor, any payment due (unless a prior claim therefor shall have been made by a duly appointed legal representative) may be paid to the spouse, a child, a parent, a brother or sister, or to
any person or institution considered by the Administrator to have incurred expense for such person otherwise entitled to payment. To the extent permitted by law, 

  

 11 

 
any such payment so made shall be a complete discharge of liability therefor under the Plan. 
 If a guardian of the estate of any person receiving or claiming benefits under the Plan is appointed by a court of competent jurisdiction, benefit
payments may be made to such guardian provided that proper proof of appointment and continuing qualification is furnished in a form and manner acceptable to the Administrator. In the event a person claiming or receiving benefits under the Plan is a
minor, payment may be made to the custodian of an account for such person under the Uniform Gifts to Minors Act. To the extent permitted by law, any such payment so made shall be a complete discharge of any liability therefore under the Plan.

 6.5 Nonassignment. 
 The right
of a Participant or Beneficiary to the payment of any amounts under the Plan may not be assigned, transferred, pledged or encumbered nor shall such right or other interests be subject to attachment, garnishment, execution, or other legal process.

 6.6 No Right to Continued Employment. 
 Nothing in the Plan shall be construed to confer upon any Participant any right to continued employment with the Company, nor shall the Plan interfere in any way with the right of the Company to terminate the employment of such Participant
at any time without assigning any reason therefor. 
 6.7 Tax Withholding. 
 Appropriate taxes shall be withheld from cash payments made to Participants pursuant to the Plan. To the extent tax withholding is payable in connection
with the Participant’s deferral of income rather than in connection with the payment of deferred amounts, such withholding may be made from other wages and salary currently payable to the Participant, or, as determined by the Administrator, the
amount of the deferral elected by the Participant may be reduced in order to satisfy required tax withholding for employment taxes and any other taxes. 
 6.8 Claims Procedure and Arbitration. 
 The Administrator shall establish a reasonable claims procedure
consistent with the requirements of the Employee Retirement Income Security Act of 1974, as amended. Following a Change in Control of the Company (as determined under Section 5.8) the claims procedure shall include the following arbitration
procedure. 
 Following a Change in Control of the Company (as determined under Section 5.8) the claims procedure shall include the
following arbitration procedure. Since time will be of the essence in determining whether any payments are due to the Participant under this Plan following a Change in Control, a Participant may submit any claim for payment to arbitration as
follows: On or after the second day following the Change in Control or other event triggering a right to payment, the claim may be filed with an arbitrator of the Participant’s 

  

 12 

 
choice by submitting the claim in writing and providing a copy to the Company. The arbitrator must be 
  

	 	(a)	a member of the National Academy of Arbitrators or one who currently appears on arbitration panels issued by the Federal Mediation and Conciliation Service or the American
Arbitration Association; or 

  

	 	(b)	a retired judge of the State in which the claimant is a resident who served at the appellate level or higher. 

 The arbitration hearing shall be held within 72 hours (or as soon thereafter as possible) after filing of the claim unless the Participant and the
Company agree to a later date. No continuance of said hearing shall be allowed without the mutual consent of the Participant and the Company. Absence from or nonparticipation at the hearing by either party shall not prevent the issuance of an award.
Hearing procedures which will expedite the hearing may be ordered at the arbitrator’s discretion, and the arbitrator may close the hearing in his or her sole discretion upon deciding he or she has heard sufficient evidence to satisfy issuance
of an award. In reaching a decision, the arbitrator shall have no authority to ignore, change, modify, add to or delete from any provision of this Plan, but instead is limited to interpreting this Plan. The arbitrator’s award shall be rendered
as expeditiously as possible, and unless the arbitrator rules within seven days after the close of the hearing, he will be deemed to have ruled in favor of the Participant. If the arbitrator finds that any payment is due to the Participant from the
Company, the arbitrator shall order the Company to pay that amount to the Participant within 48 hours after the decision is rendered. The award of the arbitrator shall be final and binding upon the Participant and the Company. 
 Judgment upon the award rendered by the arbitrator may be entered in any court in any State of the United States. In the case of any arbitration
regarding this Agreement, the Participant shall be awarded the Participant’s costs, including attorney’s fees. Such fee award may not be offset against the deferred compensation due hereunder. The Company shall pay the arbitrator’s
fee and all necessary expenses of the hearing, including stenographic reporter if employed. 
 6.9 Termination and Amendment. 
 The Committee may from time to time amend, suspend or terminate the Plan, in whole or in part, and if the Plan is suspended, the Committee may reinstate
any or all of its provisions. The Executive Vice President – Human Resources has the authority to amend the Plan to comply with the requirements of the Code, to avoid a plan failure under section 409A of the Code and to facilitate
administration of the Plan to the extent that any such amendments will not materially increase the cost of the Plan. Except as otherwise required by law, the Committee may delegate to the Administrator all or any of its foregoing powers to amend or
suspend the Plan. Any such amendment or suspension may affect future deferrals without the consent of any Participant or Beneficiary. However, with respect to deferrals that have already occurred, no amendment or suspension may impair the right of a
Participant or a designated Beneficiary to receive payment of the related deferred compensation in accordance with the terms of the Plan prior to the 

  

 13 

 
effective date of such amendment or suspension, unless the affected Participant or Beneficiary gives his or her express written consent to the change;
provided that such consent shall not be required if an amendment is required to avoid a plan failure under section 409A of the Code. 
 Subject to the requirements of section 409A of the Code and any regulatory guidance promulgated thereunder, the Committee may terminate the Plan at any time and in the Committee’s discretion the Deferral Accounts of Participants may be
distributed within the period beginning twelve months after the date the Plan was terminated and ending twenty-four months after the date the Plan was terminated, or pursuant to Section 5.5. 5.8 or 5.10, if earlier. If the Plan is terminated
and Deferral Accounts are distributed, the Company shall terminate all account balance non-qualified deferred compensation plans that are aggregated with the Plan under section 409A of the Code with respect to all participants and shall not adopt a
new account balance non-qualified deferred compensation plan that is aggregated with the Plan under section 409A of the Code for at least three years after the date the Plan was terminated. 
 The Committee, in its discretion, may terminate the Plan upon a corporate dissolution of the Company that is taxed under section 331 of the Code or with
the approval of a bankruptcy court pursuant to 11 U.S.C. section 503(b)(1(A), provided that the Participants’ Deferral Accounts are distributed and included in the gross income of the Participants at the time required under section 409A of the
Code. 
 6.10 Applicable Law. 
 The Plan shall be construed and governed in accordance with applicable federal law and, to the extent not preempted by such federal law, the laws of the State of California to the extent the application of such state laws would not result
in the taxation of amounts deferred under the Plan until such amounts are distributed to participants under the Plan. 
  

 14

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