APPENDIX I 

PPLUS Minimum ServicingStandards intended    for use in connection withthe Annual    Accountants Report (“AAR”) 

Below is Merrill Lynch Depositor, Inc.’s (“theDepositor”) together with Merrill Lynch Structured Credit Derivatives and theMerrill Lynch Credit Derivatives Operations Group, minimum servicing standardsfor the PreferredPlus Program (“PPlus”). The Bank of New York Mellon (“theBank”) acts as Trustee, Custodian, Paying Agent, and Transfer Agent on behalfof the PPlus Program and has agreed to comply with these minimum servicingstandards. 

MERRILL LYNCH DEPOSITOR, INC.’S MINIMUM SERVICINGSTANDARDS 

1. CUSTODIAL BANK ACCOUNT RECONCILIATIONS** **

**•**The Bank must reconcile all related custodial bankaccounts. 

**•**The Bank will include the Distribution report asExhibit 99.1 in the Form 8-Ks filed with the SEC. 

2. VERIFICATION OF INCOMING TRUST COLLATERALINTEREST PAYMENTS** **

**•**The Bank must have a tickler system in place so thatthey will be expecting and monitoring the custodial bank account for receipt ofthe collateral coupon interest. Each of the tickler systems shall be updated onan on-going basis as each new trust series is created. 

**•**The Bank will ensure all interest payments aredeposited into the custodial bank accounts and related bank clearing accountson the day the Bank is in receipt of the funds. 

**•**The Bank must prove the arithmetic accuracy of theamount of interest received by the Trust from the underlying securities andensure that the face amount, description, coupon rate, and maturity date of thesecurities held in the Trust agree to the PPM Supplement dated Date XX, 20XX. 

3. TRUST DISBURSEMENTS 

**•**The Bank must prove the arithmetic accuracy of theamount of interest to be paid by the Trust to the Debt Unit holders byreferring to the PPM Supplement dated Date XX, 20XX. 

**•**The Bank will make all disbursements via wiretransfer to The Depository Trust Company (“DTC”) on the scheduled trustdistribution date as soon as the amount of interest received from theunderlying collateral into the custodial bank account has been received andverified for accuracy. 

 

4. PARTIAL REDEMPTIONS** **

**•**If there is a partial redemption of the trustcertificates the Bank and the Depositor must ensure that the redemptionproceeds received by the trust and distributed by the Bank are in accordancewith the series supplement. 

5. DEFAULTS 

**•**If the Bank has actual knowledge of an event ofdefault on the underlying securities that did not cause the trust to liquidate,the Bank must distribute a formal notice of default to the Depositor, thecertificateholders, the rating agencies and Merrill Lynch Structured CreditDerivatives/Merrill Lynch Credit Derivatives Operations Group.** **

**•**If the Bank has actual knowledge of an event ofdefault on the underlying securities that did not cause the Trust to liquidate,the procedures for a vote or consent of the certificateholders as set forth inthe Standard Terms and series Supplement must be complied with. 

6. CALL WARRANT EXERCISES AND OPTIONAL EXCHANGES 

**•**If there is an exercise of call warrants or anoptional exchange of trust certificates for underlying securities that did notcause the trust to liquidate, the Bank must give the Depositor and the affectedcertificateholders notice of any exercise of call warrants or optionalexchange. Such notice must contain the amount of certificates to be purchased,the call price, and any other relevant information.** **

**•**If there is an exercise of call warrants or anoptional exchange of trust certificates for underlying securities that did notcause the trust to liquidate, the Bank must notify the rating agencies of thecall exercise or optional exchange. 

**•**If there is an exercise of call warrants or anoptional exchange of trust certificates for underlying securities that did not causethe trust to liquidate, the Bank must give notice of exercise or optionalexchange to the Depositor and certificate registrar of any certificates thatwere called. 

7. COMMUNICATIONS WITH CERTIFICATEHOLDERS 

**•**If there was any occasion for the exercise of votingrights or giving consents by the certificateholders, the Bank must providenotice to the certificateholders within 5 business days of the Trust’s receiptof notice of the occasion and the Bank must vote or give consents as directedby certificateholders.