Document:

Exhibit 4.2

 

FORM OF SERIES
SUPPLEMENT

TRUST
CERTIFICATES SERIES [   ]

SERIES
SUPPLEMENT

between

MERRILL
LYNCH DEPOSITOR, INC.,

as
Depositor,

and

THE
BANK OF NEW YORK MELLON,

as
Trustee and Securities Intermediary

Dated
as of [   ]

 

 

    	 

    	 

    

Table of Contents

	 	 	Page
	Section 1.	Incorporation of Standard Terms	1
	Section 2.	Designation of Trust and Certificates	7
	Section 3.	Satisfaction of Conditions to Initial Execution and Delivery of Certificates	8
	Section 4.	Distributions	9
	Section 5.	Trustee’s Fees and Limitation of Liability; Escrow Agent’s Fees	11
	Section 6.	Optional Exchange	11
	Section 7.	Events of Default	14
	Section 8.	Miscellaneous	14
	Section 9.	Notices	15
	Section 10.	Governing Law	16
	Section 11.	Counterparts	16
	Section 12.	Termination of the Trust	16
	Section 13.	Sale; Redemption of Underlying Securities; Call Rights	16
	Section 14.	Voting of Underlying Securities, Modification of Indenture	20
	Section 15.	Call Right Documentation	21
	Section 16.	Third Party Beneficiary	21
	Section 17.	Nonpetition Covenant	21

 

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SERIES SUPPLEMENT, dated as of [   ] (the
“Supplement”), by and between MERRILL LYNCH DEPOSITOR, INC., a Delaware corporation (the “Depositor”),
THE BANK OF NEW YORK MELLON, a New York corporation, ( the “Trustee”) and (the “Securities Intermediary”).

W I
T N E S S E T H:

WHEREAS, the Depositor desires to create
the Trust designated herein (the “Trust”) by executing and delivering this Supplement, which shall incorporate
the terms of the Standard Terms for Trust Agreements, dated as of [   ], 2012 (the “Standard Terms” and, together
with this Supplement, the “Trust Agreement”), by and between the Depositor and the Trustee and Securities Intermediary,
as modified by this Supplement;

WHEREAS, the Depositor desires to deposit
the Underlying Securities set forth on Schedule I attached hereto into the Trust;

WHEREAS, in connection with the creation
of the Trust and the deposit therein of the Underlying Securities, it is desired to provide for (a) the issuance of (i) the
Certificates evidencing undivided interests in the Trust and (ii) Call Rights and (b) entering into a swap transaction in
the form of an ISDA Master Agreement and schedule with the Swap Counterparty (the “Swap Agreement”) attached
as Schedule II;

WHEREAS, the Trustee has joined in the
execution of the Standard Terms and this Supplement to evidence the acceptance by the Trustee of the Trust;

WHEREAS, the Securities Intermediary has
joined in the execution of the Standard Terms and this Supplement to evidence the acceptance by the Securities Intermediary of
its obligations thereunder and hereunder; and

WHEREAS, the Depositor and the Trust agree
that the Trust should enter into the Swap Agreement with the Swap Counterparty identified herein on the terms and conditions specified
on Schedule II;

NOW, THEREFORE, in consideration of the
foregoing premises and the mutual covenants expressed herein, it is hereby agreed by and between the Depositor and the Trustee
and Securities Intermediary as follows:

Section 1.             
Incorporation of Standard Terms. (a) All of the provisions of the Standard
Terms are hereby incorporated herein by reference in their entirety and this Supplement and the Standard Terms shall form a single
agreement among the parties. In the event of any inconsistency between the provisions of this Supplement and the provisions of
the Standard Terms, the provisions of this Supplement will control with respect to the transactions described herein.

(b)                
Definitions. Except as otherwise specified herein or as the context may otherwise require,
the following terms shall have the respective meanings set forth below for all purposes under this Supplement. Capitalized terms
used but not defined herein shall have the meanings assigned to them in the Standard Terms.

    	 

    	 

    

[“Allocation Ratio”:
The ratio of the Class A Allocation to the Class B Allocation. Voting Rights, Liquidation Proceeds, Realized Losses and Extraordinary
Trust Expenses shall be allocated between Class A Certificateholders and Class B Certificateholders in accordance with the Allocation
Ratio and, within each Class, each of the foregoing rights and obligations shall be allocated to Certificateholders in accordance
with their pro rata interests in such Class.]

“Authorized Denomination”:
With respect to Certificates, an aggregate stated and/or notional principal amount of $[1,000], as applicable.

“Business Day”: Any
day that is not a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies in the City of
New York are authorized or obligated by law, regulation or executive order to close and, if applicable, that also is specified
as a Business Day with respect to the Underlying Securities.

“Calculation Agent”:
[   ]

[“Call Agent”: As defined
in the Call Terms.]

[“Call Agreement”: As
defined in the Call Terms.]

[“Call Date”: As defined
in the Call Terms.]

[“Call Holder”: As defined in the
Call Terms.]

[“Call Notice Period”:
As defined in the Call Terms.

[“Call Price”: As defined
in the Call Terms.]

[“Call Right”: As defined in the Call
Terms.]

[“Call Terms”: The call terms set
forth on Schedule III.]

[“Certificates”: All
[   ] Class A Certificates and [   ] Class B Certificates.]

[“Class A Allocation”:
The present value calculated by the Calculation Agent (discounted at the rate of [   ]% per annum) of (i) the unpaid interest, except
for the Class B Payments, due or to become due on the Underlying Securities on or prior to the Final Scheduled Distribution Date
and (ii) the principal amount of the Underlying Securities (in each case assuming that the Underlying Securities are paid in full
when due and are not accelerated or redeemed prior to their stated maturity).]

“[[Class A] Call Right”:
As defined in the Call Terms.]

[“Class A Certificate Account”:
The Certificate Account established for the Class A Certificateholders.]

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“[Class A] Certificates”:
The Certificates issued by the Trust in a stated amount of $25 per trust certificate, entitled to receive on each Distribution
Date until and including the Final Scheduled Distribution Date, distributions at a rate of [   ]% per annum on the
stated amount of the [Class A] Certificates and a cash distribution of the principal amount of the Underlying Securities on the
Final Scheduled Distribution Date and such other distributions as described herein.

[“Class B Allocation”:
An amount equal to the Class B Present Value Amount.]

[Class B Call Right”: As defined
in the Call Terms.]

[“Class B Certificate Account”:
The Certificate Account established for the Class B Certificateholders.]

[“Class B Certificates”:
The Certificates issued by the Trust with the right to receive, on each Distribution Date, commencing on [   ], [   ] and ending on
the Final Scheduled Distribution Date, a distribution of [   ]% per annum of the aggregate notional principal amount of the Class
B Certificates and such other distributions as described herein.]

[“Class B Payments”:
An amount equal to the Pass-Through Rate multiplied by the notional principal amount of the Class B Certificates.

[“Class B Present Value Amount”:
As of any date, the sum of the present values calculated by the Calculation Agent (discounted at a rate of [   ]% per annum) of the
Class B Payments (assuming for purposes hereof, that the Underlying Securities are paid in full on their stated maturity date,
and no portion thereof is accelerated or redeemed prior to such date).]

“Closing Date”: [   ].

“Collection Period”:
(i) With respect to each [   ] Distribution Date, the period beginning on and including the [   ]
Distribution Date of the current year and ending on the day immediately preceding the [   ] Distribution Date, and
(ii) with respect to each [   ] Distribution Date, the period beginning on the [   ] Distribution
Date of the prior year and ending on the day immediately preceding the [   ] Distribution Date, inclusive, except
for the [   ] Distribution Date, as to which the Collection Period shall be the period beginning on the [Cut-off]/[Closing]
Date and ending on the day immediately preceding [   ] Distribution Date, inclusive; provided, however,
that clauses (i) and (ii) shall be subject to Section 8(b) hereof.

“Commission”: The United
States Securities and Exchange Commission.

“Comparable Treasury Issue”:
With respect to any redemption date, the United States Treasury security selected by an Independent Investment Banker as having
a maturity comparable to the remaining term of the Underlying Securities to be redeemed that would be used, at the time of selection
and in accordance with customary financial

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practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining term of the Underlying Securities.

“Comparable Treasury Price”:
With respect to any redemption date, (1) the average of the Reference Treasury Dealer Quotations for the redemption date after
excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Underlying Securities trustee
is provided fewer than five Reference Treasury Dealer Quotations, the average of all quotations obtained.

“Corporate Trust Office”:
The office of the Trustee located at [Corporate Trust Dealing & Trading Group, 101 Barclay Street, Floor 7W, New York, NY 10286],
Attention: [Trust Series [   ]]; provided, however, that the office at which certificated securities are delivered
for registration of transfer, cancellation or exchange shall be the office of the Trustee, located at [●].

[Cut-off Date”: [   ].]

“Delivery Certificates”:
The meaning given to it in the Call Agreement.

“Depository”: The Depository
Trust Company, its nominees and their respective successors.

“Distribution Date”:
(a) [   ] and [   ] of each year (or if such date is not a Business Day, the next succeeding Business Day), commencing on [   ] and ending
on the Final Scheduled Distribution Date, (b) any date on which a distribution is made in connection with a Liquidation Event or
a Trust Wind-Up Event or (c) any date on which a Redemption Amount is distributed.

“Distribution Election”:
The meaning specified in Section 4.

“Eligible Investments”:
As defined in the Standard Terms; provided, however, that (i) the minimum required rating for long-term instruments
will be equal to the lower of the rating of the Underlying Securities or the Certificates, and (ii) the rating of any short-term
instruments will be “A-1+” by S&P; and provided, further, that any such investment matures no later than
the Business Day prior to the next succeeding Distribution Date.

“Escrow Agent”: As will
be set forth in the Escrow Agreement.

“Escrow Agreement”:
The escrow agreement to be entered into on the Exercise Date among a given Call Holder and the Escrow Agent pursuant to Section 13(c)(ii)(2) hereof.

“Event of Default”:
(i) A default in the payment of any interest on any Underlying Security after the same becomes due and payable (subject to
any applicable grace period), (ii) a default in the payment of the principal of or any installment of principal of any Underlying
Security when the same becomes due and payable, and (iii) any other event specified as an event of default in the Underlying
Securities Indenture. For a

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summary of certain events of default in
the Underlying Securities Indenture, please refer to the Prospectus Supplement.

“Exercise Date”: Any
date on which a Call Holder notifies the Trustee of its intention to exercise its Call Right in accordance with the provision of
Section 13(c)(ii) hereof, any date a Call Holder is deemed to have exercised its Call Right pursuant to the Call Agreement,
or any date following the acceleration of the maturity of the Underlying Securities and payment in full of all amounts when due
by the Underlying Securities Issuer.

“Final Scheduled Distribution
Date”: [   ] (or if such date is not a Business Day, the next succeeding Business Day).

“Fixed Pass-Through Rate”:
[With respect to the Class A Certificates, [·]% per annum and with respect to the
Class B Certificates,] [·]% per annum.

[“Floating Pass Through Rate”:
[With respect to the Class A Certificates, [   ] plus [·]% per annum
and with respect to the Class B Certificates,] [   ] plus [·]% per annum.

“Independent Investment Banker”:
One of the Reference Treasury Dealers appointed by the Underlying Securities Issuer, which may have other business relationships
with the Underlying Securities Issuer.

“Interest Day Count”:
[   ].

“Interest Payment Amount”:
On any Distribution Date, with respect to the [Class A] Certificates, an amount equal to the Pass-Through Rate multiplied by the
stated amount of the [Class A] Certificates and the Interest Day Count.

“Optional Exchange Date”:
Any date as is designated pursuant to Section 6 hereof.

“Ordinary Expenses”:
The Trustee’s customary fee for its services as Trustee, including but not limited to (i) the costs and expenses of
preparing, sending and receiving all reports, statements, notices, returns, filings, solicitation of consent or instructions, or
other communications required by this Trust Agreement, (ii) the costs and expenses of holding and making ordinary collection
or payments on the assets of the Trust and of determining and making distributions, (iii) the costs and expenses of the Trust’s
or Trustee’s counsel, accountants and other experts for ordinary or routine consultation or advice in connection with the
establishment, administration and termination of the Trust, and (iv) any other costs and expenses that are, or reasonably
should have been, expected to be incurred in the ordinary course of administration of the Trust, which, with respect to Ordinary
Expenses other than those referred to in clause (iii) and other than the costs of converting to EDGAR format the periodic reports required for the Trust under the
Exchange Act, in the amount set forth in the expense reimbursement agreement with the Depositor.

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“Pass-Through Rate”:
[For each Class of Certificates, the associated]/[The] [Fixed]/[Floating] Pass-Through Rate.

“Payment Default”: An
Event of Default (as defined in the Underlying Securities Indenture) on the Underlying Securities under clauses (1) or (2) of the
definition in Section 5.01 of the Underlying Securities Indenture.

“Prospectus Supplement[s]”:
The Prospectus Supplement dated [   ], relating to the [Class A Certificates and the Prospectus Supplement dated [   ].relating to
the Class B] Certificates.

“Rating”: One or more
rating agencies is expected to assign a rating to the Certificates and any such rating will depend on the ratings of the Underlying
Security Issuer [and the Swap Counterparty].

“Rating Agency”: [S&P].

“Record Date”: The Business
Day immediately preceding each Distribution Date.

“Redemption Amount”:
The meaning specified in Section 13.

“Reference Treasury Dealer”:
Each of [   ], [   ] and [   ] and two other primary U.S. Government securities
dealers (each a “Primary Treasury Dealer”) selected by the Underlying Securities Issuer and their respective
successors. If any of the foregoing ceases to be a Primary Treasury Dealer, the Underlying Securities Issuer will replace such
Reference Treasury Dealer with another nationally recognized investment banking firm that is a Primary Treasury Dealer.

“Reference Treasury Dealer Quotations”:
With respect to each Reference Treasury Dealer and any redemption date, the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Underlying Securities
Issuer and the Underlying Securities trustee by that Reference Treasury Dealer at [   ][a.m.]/[p.m.]., New York
City time, on the third Business Day preceding the redemption date.

“Related Assets”: [   ].

“Remaining Scheduled Payments”:
With respect to each Underlying Security to be redeemed on any redemption date, the aggregate amount of the payments of principal
of and interest on such Underlying Security that would be due after the redemption date but for the redemption. If the redemption
date is not an interest payment date with respect to the Underlying Securities, then the Remaining Scheduled Payments will be reduced
by the amount of interest accrued on the Underlying Securities to such redemption date.

“Series”: Trust Series
[   ].

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[“Series [   ] Certificate Account”:
The Certificate Account established for the Certificateholders.]

[“Swap Agreement”: The
ISDA Master Agreement between the Trust and the Swap Counterparty on or after [   ].]

[“Swap Counterparty”:
[   ], which is the Buyer in the Swap Agreement attached as Schedule II, or any assignee permitted thereunder.]

[“Swap Guarantee”: [   ].]

[“Swap Guarantor”: [   ].]

[“Swap Notional Amount”:
$[   ].]

[“Swap Payment Dates”:
The Swap Counterparty will make payments on the Business Day prior to each [   ] and [   ], beginning on the Business Day prior to
[      ]. The Trust will make payments on each [   ] and [   ], beginning [       ]
and ending on [the earlier of] [   ] [and any [Call Date]].]

[“Swap Payments”: The
Trust will make to the Swap Counterparty [semiannual] payments equal to the Swap Notional Amount times (i) [   ]% per annum on each
Swap Payment Date, up to but excluding [   ] and (ii) [   ]% per annum on each Swap Payment Date from and including [   ] to but excluding
[   ].]

[“Swap Rate”: [   ].]

“Treasury Rate”: With
respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity (computed as of the second
Business Day immediately preceding the redemption date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date.

“Underlying Securities”:
The [   ] aggregate principal amount of [   ]% Notes due [   ] issued by the Underlying Securities Issuer, as described
in Schedule I hereto.

[“Underlying Securities Guarantor[s]”:
[   ] [and [   ]].

“Underlying Securities Indenture”:
As set forth in Schedule I.

“Underlying Securities Issuer”:
[   ].

“Underlying Securities Prospectus”:
The prospectus dated [   ] filed with the Securities and Exchange Commission by the Underlying Securities Issuer with respect to
the Underlying Securities.

Section 2.             
Designation of Trust and Certificates

.   

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(a)                
The Trust created hereby shall be known as the “Trust Series [   ]”. The [Class
A and Class B] Certificates evidencing certain undivided ownership interests therein shall be known as the “[Class A] [·]%
Callable Trust Certificates Series [   ] [and the “[Class B] [·]% Callable Trust
Certificates Series [   ],” respectively].

(b)                
The [Class A Certificates and the Class B] Certificates shall be held through the Depository
in book-entry form and shall be substantially in the form attached hereto as Exhibit A. The [Class A] Certificates shall be issued
in Authorized Denominations and integral multiples thereof [and the Class B Certificates shall be issued in Authorized Denominations
and integral multiples thereof]. Except as provided in the Standard Terms, the Trust shall not issue additional Certificates or
incur any indebtedness. Notwithstanding anything to the contrary in the Trust Agreement, the Depositor may not increase the amount
of the Underlying Securities in the Trust and the Trust may not issue a corresponding amount of additional Certificates.

(c)                
The [Class A] Certificates will be entitled to receive (i) on each Distribution Date,
commencing on [   ] and ending on the Final Scheduled Distribution Date, or such earlier date if the Underlying Securities are redeemed
prior to the Final Scheduled Distribution Date, the Interest Payment Amount and (ii) on the Final Scheduled Distribution Date,
a distribution of the aggregate principal amount of the Underlying Securities.

(d)                
[On each Distribution Date, the Class B Certificates will be entitled to receive the Class
B Payments [and in connection with a redemption of the Underlying Securities, the Class B Present Value Amount.]

(e)                
Any reference to the principal amount of the Certificates shall be construed as a reference
to the stated amount of the [Class A Certificates and/or the notional principal amount of the Class B] Certificates, unless otherwise
indicated.

Section 3.             
Satisfaction of Conditions to Initial Execution and Delivery of Certificates. The
Trustee hereby acknowledges receipt, on or prior to the Closing Date, of:

(i)                  
the Underlying Securities set forth on Schedule I hereto; and

(ii)                
all documents set forth in Section 5.12 of the Standard Terms.

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Section 4.             
Distributions. Distributions will be made in accordance with clauses (a) through (e),
as applicable (such applicable clause, the “Distribution Election”)

[(a)Unless any of clauses (b) through
(e) is applicable, on each Distribution Date , the Trustee shall apply the Available Funds in the [Series [   ]] Certificate Account
in the following order of priorities:

(i)                  
first, to the Trustee, reimbursement for any approved Extraordinary Trust Expenses
incurred by the Trustee in accordance with Section 5(b) hereof and approved by 100% of the Certificateholders;

(ii)                
[second, to the payment of the net amount (if any) payable by the Trust under the Swap
Agreement;

(iii)               
third,] pro rata to the [Class A] Certificateholders, the Interest Payment Amount
[and the Class B Certificateholders, the Class B Payment];

(iv)              
fourth, pro rata to the [Class A] Certificateholders [and the Class B Certificateholders],
any delayed interest payments on the Underlying Securities and any additional distributions owed and paid by the Underlying Securities
Issuer as a result of a delay in the receipt by the Trustee of any interest payment on the Underlying Securities;

(v)                
fifth, pro rata to the [Class A] Certificateholders, on the Final Scheduled
Distribution Date only, a distribution of the aggregate principal amount of the Underlying Securities;

(vi)              
sixth, to the extent there remain Available Funds in the [Series [   ]] Certificate Account,
to the Trustee for any Ordinary Expenses or Extraordinary Expenses and then to any creditors of the Trust in satisfaction of liabilities
thereto; and

(vii)             
seventh, to the extent there remain Available Funds in the [Series [   ]] Certificate
Account, to Merrill Lynch, Pierce, Fenner & Smith Incorporated or any of its Affiliates.

Subject to Section 8(b) hereof, to the extent
Available Funds are insufficient to make any required distributions due to [the Swap Counterparty or the] Certificates on any
Distribution Date, any shortfall will be carried over and will be distributed on the next Distribution Date on which
sufficient funds are available on the Available Funds to pay such shortfall. Neither Merrill Lynch, Pierce,
Fenner & Smith Incorporated nor any of its Affiliates will have any claim against the Trust pursuant to
Section 4(a)(vii) if the Trust fails to make a distribution on a Distribution Date to such person because no Available
Funds remain in the [Series [   ]] Certificate Account on such Distribution Date.

(b)                
On any Distribution Date occurring in connection with a Trust Wind-Up Event or Liquidation
Event, in each case that is also a Counterparty 

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Subordination Event, the Trustee shall
apply the Available Funds (including the Redemption Amount from a partial redemption of the Underlying Securities) in the [Series
[   ]] Certificate Account in the following order of priorities:

(i)first, to the Trustee
for Unpaid Expenses;

(ii)second, pro rata
to the [Class A] Certificateholders, the Interest Payment Amount [and the Class B Certificateholders, the Class B Payment];

(iii)third, pro rata
to the [Class A] Certificateholders, a distribution of the stated principal amount of the [Class A] Certificates [and the Class
B Certificateholders, the Class B Present Value Amount];

(iv)fourth, to the payment
of all amounts payable by the Trust under the Swap Agreement; provided that if a Counterparty Subordination Event occurs
and prior to final payment of the Certificates another Trust Wind-Up Event or Liquidation Event that is not a Counterparty Subordination
Event, such as a failure to pay the accelerated amounts due on the underlying securities, has occurred, then the termination payment
to the Swap Counterparty will not be subordinated in the payment priorities and will be paid to prior any payments on the Certificates;

(v)fifth, if such Distribution
Date is occurring in connection with a redemption of Underlying Securities, any remaining Redemption Amount to any Call Holder
that has exercised its Call Rights proportionately to such Call Holder’s interest in the Certificates; and

(vi)sixth, if such Distribution
Date is occurring in connection with a redemption of Underlying Securities, any remaining Redemption Amount to the Swap Counterparty.

(c)                
On any Distribution Date occurring in connection with a Trust Wind-Up Event or Liquidation
Event, in each case that is not also either a Counterparty Subordination Event or a Failure to File Event, the Trustee shall apply
the Available Funds in the [Series [   ]] Certificate Account in the following order of priorities: 

(i)first, to the Trustee
for Unpaid Expenses;

(ii)[second, to the payment
of all amounts payable by the Trust under the Swap Agreement;]

(iii)third, pro rata
to the [Class A] Certificateholders, the Interest Payment Amount [and the Class B Certificateholders, the Class B Payment];
and

(iv)fourth, pro rata
to the [Class A] Certificateholders, a distribution of the aggregate stated amount of the [Class A] Certificates [and the

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Class B Certificateholders, the Class
B Present Value Amount], to the extent available.

(d)                
On any Distribution Date occurring in connection with a Failure to File Event, the Trustee
shall apply the amounts available to:

(i)first,
in the case of a Trust Wind-Up Event, the payment of any Unpaid Expenses;

(ii) second,
[to the payment of all amounts payable by the Trust under the Swap Agreement; and

(iii) third,]
[distribute (x) a principal amount of the remaining Affected Underlying Securities equal to the aggregate stated amount of
the outstanding Class A Certificates and a pro rata portion of the Related Assets in accordance with the Class A Allocation
to the Class A Certificateholders and (y) a pro rata portion of the Related Assets in accordance with the Class B Allocation
to the Class B Certificateholders]/[distribute the Underlying Securities and Related Assets to the Certificateholders pro rata]
within three Business Days of receiving such notice.

(e)                
On an Optional Exchange Date, the Trustee shall distribute to Merrill Lynch, Pierce, Fenner
& Smith Incorporated or any of its Affiliates, other than the Depositor, or any other Person exercising an optional exchange
pursuant to Section 6 hereof, as the case may be, Underlying Securities in accordance with Section 6 hereof and the
Swap Termination Payment (if any) paid to the Trustee by the Swap Counterparty in connection with the Optional Exchange.

Section 5.             
Trustee’s Fees and Limitation of Liability; Escrow Agent’s Fees

(a)  Payment to the Trustee
of Ordinary Expenses shall be as set forth in a separate agreement between the Trustee and the Depositor or one of its Affiliates.
The Trustee agrees that in the event Ordinary Expenses are not paid in accordance with such agreement, it shall (i) unless
otherwise provided herein, not have any claim or recourse against the Trust or the property of the Trust with respect thereto and
(ii) continue to perform all of its services as set forth herein unless it elects to resign as Trustee in accordance with
Section 7.08 of the Standard Terms.

(b)                
If the conditions in Section 7.06 of the Standard Terms are not satisfied, the Trustee shall
not be obligated to incur any Extraordinary Trust Expense.

(c)                
In the event that one or more Call Holders is required to deposit the [applicable] Call Price
with the Escrow Agent on the Exercise Date pursuant to Section 13(c)(ii)(2) hereof, the Depositor and the Escrow Agent shall
enter into an agreement reasonably acceptable to both parties thereto whereby the Depositor shall pay to the Escrow Agent a fee
in consideration for its services under the Escrow Agreement or Escrow Agreements, as applicable.

Section 6.             
Optional Exchange. (a) Either:

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(A)Merrill Lynch, Pierce, Fenner &
Smith Incorporated or any of its Affiliates (other than the Depositor), if it holds Certificates, or

(B)any other (x) Person or (y) group
of Affiliated Persons (in each case other than the Depositor) holding [Class A] Certificates with an aggregate stated amount of
$5 million or more [and an equal aggregate notional principal amount of Class B]/[, such] Certificates [all] acquired by such
Person or group of Affiliated Persons pursuant to the exercise of [Class A Call Rights and Class B] Call Rights held by it (provided
that, in the case of a group of Affiliated Persons, no single Affiliated Person holds [Class A] Certificates with an aggregate
stated amount of less than $500,000 [and Class B Certificates with a notional principal amount of less than $500,000] acquired
pursuant to the exercise of [Class A Call Rights or Class B] Call Rights[,as applicable,] held by it), may notify the Trustee,
not less than [30] days but not more than [60] days, or not less than [5] days but not more than [60] days when a tender offer
for the Underlying Securities is pending, prior to:

(1)in the case of Merrill Lynch, Pierce,
Fenner & Smith Incorporated or when a tender offer for the Underlying Securities is pending, any Business Day, or

(2)in the case of such Person or group
of Affiliated Persons, the 15th day of any month (or if such date is not a Business Day, the next succeeding Business Day), in
each case to be designated as an Optional Exchange Date, in each case that:

(i)                  
such Person intends or Affiliated Persons intend to tender an Authorized Denomination of [Class
A Certificates and an equal number of Class B] Certificates that it holds or they hold to the Trustee on such Optional Exchange
Date in exchange for a proportional amount of Underlying Securities;

(ii)                
such exchange will not cause the Trust or Depositor to fail to satisfy the applicable requirements
for exemption under Rule 3a-7 under the Investment Company Act of 1940, as amended;

(iii)               
such exchange will not affect the characterization of the Trust as a “grantor trust”
under the Code;

(iv)              
in the case of an exchange of less than all outstanding Certificates, such exchange will
not cause a failure to satisfy the minimum requirements for the Certificates to remain listed on the New York Stock Exchange,
unless the Person or Affiliated Persons tendering such Certificates will hold all remaining outstanding Certificates upon completion
of the exchange of such Certificates pursuant to this Section 6;

(v)                
[such exchange has been consented to by any Swap Counterparty to such exchange and a Swap
Termination Payment in respect of the portion of the Swap Agreement corresponding to the portion of the Underlying Securities to
be distributed by the Trustee has been tendered to the Swap Counterparty;]

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(vi)              
such exchange will not be made with respect to Certificates subject to outstanding Call Rights
held by any Person or Affiliated Persons other than the Person or Affiliated Persons exercising such exchange; and

(vii)             
in the case of an exchange by a person other than Merrill Lynch, Pierce, Fenner & Smith
Incorporated or any of its Affiliates (other than the Depositor), such exchange will be made with respect to an aggregate stated
amount of [Class A] Certificates equal to the aggregate stated amount of [Class A] Certificates acquired by such Person pursuant
to the exercise of the applicable Call Rights held by it or them.

Upon tender of such [Class A Certificates and Class B] Certificates
on such Optional Exchange Date, the Trustee will deliver to the Person or Affiliated Persons tendering such Certificates [(x)]
an amount of Underlying Securities having a principal amount equal to the aggregate principal amount of Underlying Securities then
held by the Trust times the aggregate stated amount of [Class A] Certificates being tendered divided by the aggregate stated amount
of [Class A] Certificates then outstanding [minus (y) an amount equal to any Swap Termination Payment payable by the Trust to the
Swap Counterparty], and in the case of an exchange by Merrill Lynch, Pierce, Fenner & Smith Incorporated or any of
its Affiliates, where such Person or Affiliated Person holds unexercised [Class A] Call Rights respecting the exchanged [Class
A Certificates and a corresponding number of unexercised Class B Call Rights respecting the exchanged Class B] Certificates, such
unexercised [Class A Call Rights and Class B] Call Rights held by such Person or Affiliated Person shall be cancelled. Any Call
Holder that has properly provided notice of exercise to the [Warrant Agent] and has deposited the Call Price with the Escrow Agent
may concurrently designate an Optional Exchange Date, and such Optional Exchange Date shall be specified in the notice of exercise,
provided, however, that such Optional Exchange Date shall not occur prior to the applicable Call Date.

(b)                
The requirements set forth in Section 4.07 of the Standard Terms [(other than (a)(ii),
(a)(v), (a)(vi) and (a)(vii))], including the requirement for an Opinion of Counsel at the request of the Trustee pursuant to
Section 4.07(a) apply to an Optional Exchange pursuant to this Section 6.

(c)                
Any costs associated with the exercise of the rights granted under paragraphs (a) and
(b) of this Section 6 will be borne by the Person or Affiliated Persons exercising such rights and not by the Trust.

(d)                
[In no event can an Optional Exchange be made unless an equal number of Class A Certificates
and Class B Certificates are tendered for exchange by each Holder exercising this Optional Exchange right.]/[The Trustee may conclusively
presume that any tender of Certificates for a proportional amount of Underlying Securities is in accordance with all the terms
and limitations of this Section 6 other than paragraph (a)(iv).]

(e)                
[Depositor Optional Exchange does not apply to this Series of Certificates.]/[For the avoidance
of doubt, in connection with a Depositor Optional Exchange pursuant to Section 4.07(d) of the Standard Terms, any termination payment
for 

    	13

    	 

    

termination of the portion of the Swap
Agreement corresponding to the portion of the Underlying Securities to be exchanged shall be the obligation of the Depositor as
exchanging Certificateholder.]

Section 7.             
Events of Default. (a) Within 30 days after its receipt of written notice of
the occurrence of an Event of Default, the Trustee will give notice to the Certificateholders, transmitted by mail, of all such
uncured or unwaived Events of Default specified in the written notice received by the Trustee. However, unless there is an Event
of Default relating to the payment of principal of or interest on any of the Underlying Securities, the Trustee will be protected
in withholding such notice if in good faith it determines that the withholding of such notice is not contrary to the best interests
of the Certificateholders.

(b)[Upon receiving notice of any Swap
Default by the Swap Counterparty or other circumstances giving rise to the right of the Trust to designate an Early Termination
Event in respect of the Swap Agreement, the Trustee is required to designate an Early Termination Event in respect of the Swap
Agreement.]

Section 8.             
Miscellaneous.

(a)[The provisions of Section 4.04,
Advances, of the Standard Terms shall [not apply to the Certificates]/[be replaced with the following:

Provisional Credits. In the event that
the Trustee provisionally credits to the Certificate Account any amounts in respect of the Underlying Securities prior to receipt
of final payment therefor, such final payment is not promptly received in the ordinary course and the Trustee determines such amount
is nonrecoverable from related late collections, Credit Support proceeds, if any, [Swap Agreement, Swap Guarantee] or Liquidation
Proceeds, the Trustee may apply amounts on deposit in the Certificate Amount for such Series allocable to any of such Underlying
Securities prior to the distributions of interest, premium (if any) and principal with respect to the Certificates of such Series
or Class to reimburse itself.]

(b)                
If the Trustee has not received payment with respect to a Collection Period on the Underlying
Securities on or prior to the related Distribution Date, such distribution will be made promptly upon receipt of such payment.
No additional amounts shall accrue on the Certificates or be owed to Certificateholders as a result of such delay; provided,
however, that any additional interest owed and paid by the Underlying Securities Issuer as a result of such delay shall
be applied to the order of priorities set forth in Section 4.

(c)                
The outstanding principal balance of the [Class A Certificates and the aggregate principal
notional amount of the Class B] Certificates shall not be reduced by the amount of any Realized Loss.

(d)                
Merrill Lynch, Pierce, Fenner & Smith Incorporated shall act as the Market Agent and shall
serve in such capacity in accordance with the terms of the Market Agent Agreement attached hereto as Exhibit B.

    	14

    	 

    

Section 9.             
Notices. (a)  All directions, demands and notices hereunder or under the
Standard Terms shall be in writing and shall be delivered as set forth below (unless written notice is otherwise provided to the
Trustee).

If to the Depositor, to:

Merrill Lynch Depositor, Inc.

c/o Merrill Lynch Pierce, Fenner & Smith Incorporated

One Bryant Park, 3rd Floor

New York, NY 10036

Attention:Structured Credit Trading

Telephone:(646) 855-6745

Facsimile: (646) 855-0104

Email:[   ]

If to the Trustee, to:

The Bank of New York Mellon

Corporate Trust Dealing & Trading Group

101 Barclay Street, Floor 7W

New York, NY 10286

Attention:Trust Series [   ]

Telephone:(212) 815-2896

Facsimile:(212) 815-2830

Email:[   ]

 

If to the Securities Intermediary, to:

The Bank of New York Mellon

Corporate Trust Dealing & Trading Group

101 Barclay Street, Floor 7W

New York, NY 10286

Attention:Trust Series [   ]

Telephone:(212) 815-2896

Facsimile:(212) 815-2830

Email:[   ]

 

[If to the [Warrant] Agent, to

The Bank of New York Mellon

Corporate Trust Dealing & Trading Group

101 Barclay Street, Floor 7W

New York, NY 10286

Attention:Trust Series [   ]

Telephone:(212) 815-2896

Facsimile:(212) 815-2830

Email:[   ]]

 

    	15

    	 

    

If to the Rating Agency, to:

[Standard & Poor’s Ratings Services

55 Water Street, 41st Floor

New York, NY 10041-0003

Attention:RRS/Synthetic Surveillance

Telephone:[(212) 438-2482]

Facsimile: [(212) 438-2664]

Email:[   ]]

 

(b)                
Copies of any tender offer materials and all directions, demands and notices required to be
given to the Certificateholders hereunder or under the Standard Terms will be given to the [Warrant] Agent by facsimile transmission
and by mail. In addition, the Trustee shall notify the [Warrant] Agent within two Business Days of (i) receipt of notice from the
Underlying Securities Issuer or the Paying Agent of a redemption or any other unscheduled payment or (ii) an election to terminate
the Trust pursuant to Section 12(b) hereof. 

(c)                
The Trustee shall inform each Rating Agency of any Payment Default.

Section 10.          
Governing Law. This Supplement and the transactions described herein shall be construed
in accordance with and governed by the laws of the State of New York.

Section 11.          
Counterparts. This Supplement may be executed in any number of counterparts, each
of which shall be deemed to be an original, and all such counterparts shall constitute but one and the same instrument.

Section 12.          
Termination of the Trust. (a)  The Trust shall terminate upon the earlier
of (i) the sale by the Trust after a Liquidation Event or Trust Wind-Up Event and the distribution in full of all amounts
due to the Certificateholders, (ii) the distribution to the Certificateholders of all Underlying Securities in accordance
with Section 4(d), (iii) the Final Scheduled Distribution Date, [(iv) any additional or specified Trust Wind-Up Event
in this Supplement] and (vi) the holders of all, but not less than all, of the Certificates exercising their election in accordance
with Section 11.01(d) of the Standard Terms.

(b)                 To
the extent that the provisions of this Section 12 conflict with Section 11.01 of the Standard Terms, the
latter shall control.

Section 13.          
Sale; Redemption of Underlying Securities; Call Rights.

(a)In the case of Extraordinary Trust
Expenses approved by 100% of the Certificateholders [of each Class], pursuant to Section 5(b) hereof, the Trustee may,

    	16

    	 

    

upon prior written notice to each Rating
Agency, elect to sell all or a portion of the Underlying Securities to pay such Extraordinary Trust Expenses.

(b)                
As a holder of the Underlying Securities, the Trust may receive redemption proceeds (the “Redemption
Amount”) upon the redemption of the Underlying Securities, in whole or in part, by the Underlying Securities Issuer pursuant
to the Underlying Securities Indenture and the Underlying Securities Prospectus.

(i)                  
Upon the redemption of the Underlying Securities in whole, but not in part, (A) on [   ] or (B) at the option of the Underlying Securities Issuer, upon prior notice pursuant to the Underlying Securities Indenture,
the Redemption Amount will be distributed in accordance with Section 4(b). 

			Such distribution[s] shall be made upon the date such Redemption Amount is received in immediately available funds by the Trust
if such Redemption Amount is received prior to 1:00 p.m. local time at the office of the Trustee and otherwise on the next
Business Day.

(ii)                
Upon any redemption of the Underlying Securities in part at the option of the Underlying Securities
Issuer upon prior notice pursuant to the Underlying Securities Indenture, the Redemption Amount will be distributed in accordance
with Section 4(b). 

Upon any such redemption in
part, the Trustee shall select the Certificates to be purchased on a pro rata basis, by lot or by such other method as the
Trustee in its sole discretion shall deem to be fair and appropriate (or, in the case of Global Certificates, the Trustee will
direct the Depository to select Certificates based on the Depository's method that most nearly approximates pro rata selection)
a stated amount of [Class A Certificates and an equal notional principal amount of Class B] Certificates equal to the aggregate
amount of [each such Class] Certificates then outstanding multiplied by the aggregate principal amount of Underlying Securities
subject to redemption and then held by the Trust divided by the aggregate principal amount of Underlying Securities then held by
the Trust; provided that the amount of [each Class of] Certificates being selected may be reduced by the aggregate stated
amount of [Class A Certificates or notional principal amount of Class B Certificates, as applicable,]/[Certificates] called pursuant
to the exercise of Call Rights prior to such redemption in accordance with the terms of the Call Agreement.

Such Redemption Amount will
be distributed upon the date such Redemption Amount is received in immediately available funds by the Trust if such Redemption
Amount is received prior to 1:00 p.m. local time at the office of the Trustee and otherwise on the next Business Day. Upon distribution
of the Redemption Amount by the Trustee, the Certificates called pursuant to the exercise of Call Rights and the Certificates selected
pursuant to this subsection (ii) shall be deemed to have been surrendered for cancellation by the Trust, and the aggregate stated amount of
the outstanding [Class A Certificates and the aggregate notional principal amount of the

    	17

    	 

    

outstanding Class B] Certificates
shall be reduced by the aggregate stated amount of such [Class A Certificates and the aggregate notional principal amount of such
Class B Certificates, as applicable]/[Certificates]; provided that the right of a Certificateholder to receive the Call
Price will not be affected by any such deemed surrender. Payment of the Redemption Amount with respect to the Certificates will
be made to the Call Holder exercising the Call Rights in accordance with Section 4(b).1

(c)                
The Call Terms are set forth on Schedule III:

(i)                  
A Call Holder that has met the exercise requirements set forth in paragraph (c)(ii)
of this Section 13 may, on the Call Date, exercise its option to purchase, in whole or in part, a principal [or notional]
amount of [Class A or Class B] Certificates, [as applicable,] proportionate to such Call Holder’s exercised Call Rights,
in Authorized Denominations at the applicable Call Price;

(ii)                
In order to exercise its Call Right on a Call Date, a Call Holder must, satisfy the following
conditions within the Call Notice Period:

(1)                
notify the Trustee in writing of its intention to exercise such Call Right and whether such
exercise is in connection with a tender offer for the Underlying Securities. In the event that such notice is provided in connection
with a tender offer for the Underlying Securities, if the exercising Holder did not receive from the Call Agent notice of a tender
offer, then such Holder shall also provide the Call Agent with any information the Holder may have from a third-party source indicating
that such tender offer is pending.

(2)                
deposit the [applicable] Call Price with the Escrow Agent (the “Escrow Deposit”),
in lawful money of the United States of America by wire transfer of immediately available funds, to be held in escrow pursuant
to an Escrow Agreement reasonably satisfactory to the Trustee and substantially in the form attached hereto as Exhibit C
(to be entered into immediately preceding delivery of the applicable Call Price by such Call Holder to the Escrow Agent) until
[such]/[the] Call Price is paid by the Trustee to the Certificateholders in accordance with paragraph (d) of this Section 13
or returned to the exercising Holders pursuant to the Call Agreement; provided, that if (a) all of the outstanding
Certificates [of a given Class] are to be purchased pursuant to the exercise of the Call Rights on an Exercise Date and the exercising
Call Holder at such time holds [Class A Certificates or Class B] Certificates that are subject to Call Rights, the Call Holder
may deposit such [Class A Certificates or Class B] Certificates with the Escrow Agent in lieu of the portion of the Call Price
that would relate thereto, and (b) fewer than all of the outstanding [Class B] Certificates are to be purchased pursuant to the
exercise of the Call Rights on an

 

		1	Redemption terms to conform to those provided in Underlying Securities.

    	18

    	 

    

Exercise Date and the exercising Call
Holder at such time holds [Class B] Certificates that are subject to Call Rights, the Call Holder may deposit such [Class B] Certificates
with the Escrow Agent in lieu of the portion of the Call Price that would relate thereto; and

(3)                
provide the Trustee and the Call Agent with any other documents customary for a transaction
of this nature, including a certificate of the Call Holder certifying the solvency of such Call Holder on such date; provided
that the Call Holder need not provide any such solvency certificate if the rating of the senior, unsecured long-term debt of the
Call Holder, or the Call Holder’s credit support provider, if applicable, by [S&P] is in one of the investment grade
categories of [S&P] on such date.

The provisions of this Section 13(c)(ii)(1) through
(3) shall not apply if Call Rights are being exercised automatically upon an acceleration of the maturity of the Underlying Securities
and payment in full by the Underlying Securities Issuer of all amounts due upon such acceleration.

(d)                
In connection with any exercise of the [Class A Call Rights or Class B] Call Rights, the Trustee
shall select the Certificates [of the class] to be purchased on a pro rata basis, by lot or by such other method as the
Trustee in its sole discretion shall deem to be fair and appropriate (or, in the case of Global Certificates, the Trustee will
direct the Depository to select such Certificates based on the Depository’s method that most nearly approximates pro rata
selection) a stated amount of the outstanding Certificates [of the class] to be surrendered by the Certificateholders thereof to
the Trustee upon any such exercise (other than Certificates held by any Person to whom a Delivery Certificate, as evidenced by
the registration of such Delivery Certificate in the Delivery Register in accordance with the Call Agreement), deliver such Certificates
to the exercising Call Holder and the proceeds of the Call Price shall be distributed pro rata among such Certificateholders
on the Call Date in accordance with the Call Agreement. Upon distribution of the Call Price, the Certificates called pursuant to
the exercise of Call Rights shall be deemed to have been surrendered and such Certificates shall be transferred to the Call Holder;
provided that the right of a Certificateholder to receive the Call Price will not be affected by any such deemed surrender.

(e)                
The rights of the Certificateholders under the Trust Agreement and the Certificates are limited
by the terms, provisions and conditions of the Trust Agreement[, the Swap Agreement] and the Call Agreement with respect to the
exercise of the Call Rights by the Call Holder. The Certificateholders, by their acceptance of Certificates, covenant and agree
to tender any and all Certificates to the Call Agent upon the Call Holder’s exercise of Call Rights and deposit of the Call
Price with the Escrow Agent for such Certificates in accordance with the applicable procedures in the Call Agreement.

(f)                 
Upon receipt of a notice of a tender offer for the Underlying Securities, the Trustee shall
deliver notice of the tender offer to the Call Agent[, the Swap Counterparty] and holders of Delivery Certificates (as defined
in Section 2.02(d) of the 

    	19

    	 

    

Warrant Agreement) within two Business
Days after receipt of notice from the [Tender Offeror] (as defined in the Call Agreement). Within two Business Days of the expiration
of the period for validly delivering tender offer exercise notices pursuant to the Call Agreement, the Trustee shall, after giving
effect to the exercise of Call Rights with respect to Certificates already held by the Call Holder, as set forth in the Call Agreement,
(A) select by lot (or by such other reasonable procedure as may be established by the Trustee) a stated amount of Certificates
[of the class being called] equal to the aggregate stated amount of [Class A Certificates or Class B] Certificates [as applicable]
not subject to Delivery Certificates then outstanding multiplied by the aggregate principal amount of the Call Rights being exercised
divided by the aggregate principal amount of the outstanding [Class A Call Rights or Class B] Call Rights [as applicable], and
(B) notify the Certificateholders of the selected Certificates that, subject to Section 2.02(i) of the Warrant Agreement,
such Certificates will be purchased on the Call Date. Upon the Trustee’s receipt of the tender offer proceeds, the Call Price
will be distributed pursuant to the Call Agreement pro rata to the Certificateholders whose Certificates have been purchased
and the tender offer proceeds will be distributed by the Trustee pro rata to the exercising Call Holders pursuant to the
Call Agreement. Upon distribution of the Call Price and tender offer proceeds, the Certificates called pursuant to the exercise
of Call Rights shall be deemed to have been surrendered for cancellation by the Trustee and the aggregate stated amount of the
outstanding Certificates shall be reduced by the aggregate stated amount of such Certificates; provided that the right of
a Certificateholder to receive the Call Price will not be affected by any such deemed surrender.

Section 14.          
Voting of Underlying Securities, Modification of Indenture. The Trustee, as holder
of the Underlying Securities, has the right to vote and give consents and waivers in respect of the Underlying Securities as permitted
by the Depository and except as otherwise limited by the Trust Agreement. In the event that the Trustee receives a request from
the Depository, the Underlying Securities trustee or the Underlying Securities Issuer for its consent to any amendment, modification
or waiver of the Underlying Securities, the Underlying Securities Indenture or any other document thereunder or relating thereto,
or receives any other solicitation for any action with respect to the Underlying Securities, the Trustee shall mail a notice of
such proposed amendment, modification, waiver or solicitation to each Certificateholder of record as of such date. The Trustee
shall request instructions from the Certificateholders as to whether or not to consent to or vote to accept such amendment, modification,
waiver or solicitation. The Trustee shall consent or vote, or refrain from consenting or voting, in the same proportion (based
on the relative outstanding principal balances of the Certificates) as the Certificates of the Trust were actually voted or not
voted by the Certificateholders thereof as of a date determined by the Trustee prior to the date on which such consent or vote
is required [after weighing the votes of the Class A Certificateholders and the Class B Certificateholders in accordance with
the Allocation Ratio]; provided, however, that, notwithstanding anything in the Trust Agreement to the contrary,
the Trustee shall at no time vote on or consent to any matter (i) unless such vote or consent would not (based on an Opinion
of Counsel) alter the status of the Trust as a “grantor trust” for federal income tax purposes or result in the imposition
of tax upon the Certificateholders, or (ii) that would alter the timing or amount of any payment on the Underlying Securities,
including, without limitation, any demand to accelerate the Underlying Securities, except in the event of a default under the
Underlying

    	20

    	 

    

Securities or an event that with the passage
of time would become an event of default under the Underlying Securities and with the consent of 100% of the Certificateholders
and 100% of the Call Holders, or (iii) except as provided in the following paragraph, that would result in the exchange or
substitution of any of the outstanding Underlying Securities pursuant to a plan for the refunding or refinancing of such Underlying
Securities except in the event of a default under the Underlying Securities Indenture and only with the consent of 100% of the
Certificateholders and 100% of the Call Holders. The Trustee shall have no liability for any failure to act resulting from Certificateholders’
or Call Holders’ late return of, or failure to return, directions requested by the Trustee from the Certificateholders and
Call Holders.

If an offer is made by the Underlying
Securities Issuer to issue new obligations in exchange and substitution for any of the Underlying Securities, pursuant to a plan
for the refunding or refinancing of the outstanding Underlying Securities or any other offer is made for the Underlying Securities,
the Trustee shall notify the Certificateholders, the Call Holders and each Rating Agency of such offer promptly. Subject to Sections
6 (b) and 13 in connection with a tender offer and the exercise of Call Rights or Optional Exchange rights, the Trustee must reject
any such offer unless the Trustee is directed by the affirmative vote of 100% of the Certificateholders and 100% of the Call Holders
to accept such offer, the Trustee has received the tax opinion described above and if the Trustee is so directed, the Trustee
shall promptly notify each Rating Agency of such direction accompanied by evidence of the affirmative vote of such Certificateholders
and Call Holders.

If an event of default under the Underlying
Securities Indenture occurs and is continuing, and if directed by 100% of the Certificateholders, the Trustee shall vote the Underlying
Securities in favor of directing, or take such other action as may be appropriate to direct, the Underlying Securities trustee
to declare the unpaid principal amount of the Underlying Securities and any accrued and unpaid interest thereon to be due and payable.

Section 15.          
Call Right Documentation. Simultaneously with the execution hereof, the Depositor
hereby directs the Trustee, in the name of and on behalf of the Trust, to enter into a Call Agreement [and any related Warrant
Certificates (as defined in the Call Agreement)] evidencing the Call Rights and to make representations contained therein on behalf
of the Trust. At the direction of the Depositor, the Trustee shall execute such further documents as may be required to evidence
any transfer of any or all of the rights, interests or obligations under the Call Agreement [and any related Warrant Certificates].

Section 16.          
Third Party Beneficiary. The Escrow Agent and each Call Holder shall be third party
beneficiaries of this Trust Agreement.

Section 17.          
Nonpetition Covenant. Notwithstanding any prior termination of this Trust Agreement,
each of the Trustee (including any Administrative Agent, Authenticating Agent and Paying Agent) and the Depositor agrees that
it shall not, until the date which is one year (or, if longer, the applicable preference period) plus one day after the termination
of the Trust Series [   ], acquiesce, petition or otherwise invoke

    	21

    	 

    

or cause the Trust to invoke the process
of the United States, any State or other political subdivision thereof or any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government for the purpose of commencing or sustaining a case by or
against the Trust under a Federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of such Trust or all or any part of the property or assets of such Trust
or ordering the winding up or liquidation of the affairs of such Trust.

 

 

    	22

    	 

    

IN WITNESS WHEREOF, the parties hereto
have caused this Supplement to be duly executed by their respective authorized officers as of the date first written above.

Merrill Lynch Depositor,
Inc.,

as Depositor

By: ___________________________________

Name:

Title:

The Bank of New York Mellon,

not in its individual capacity

but as Trustee

By: ___________________________________

Name:

Title:Authorized Signatory

The Bank of New York Mellon,

as Securities Intermediary

By: ___________________________________

Name:

Title:Authorized Signatory

 

 

[SERIES SUPPLEMENT
SIGNATURE PAGE]

 

    	 

    	 

    

SCHEDULE I

TRUST
CERTIFICATES, SERIES [   ]

UNDERLYING SECURITIES SCHEDULE

	Underlying Securities:	[     ]% [Debentures]/[Notes] due [      ] issued by the Underlying Securities Issuer.
	Underlying Securities Issuer:	[       ].
	Underlying Securities Guarantor[s]	[       ] [and [       ]].
	Underlying Securities Indenture	Indenture dated as of [      ], between the Underlying Securities Issuer, [Underlying Securities Guarantor[s]] and the Underlying Securities Trustee.
	Underlying Securities
 CUSIP Number:	[       ].
	Underlying Securities
 Original Issue Date:	[       ].
	Underlying Securities
 Original Amount Issued:	[       ].
	Underlying Securities
 Commission Filing Number:	[       ].
	Underlying Securities
 Maturity Date:	[       ].
	Underlying Securities
 Principal Payment Date:	[       ].
	Underlying Securities
 Interest Payment Dates:	[       ] and [       ], or if any such date is not a business day, then the next succeeding business day.
	Underlying Securities
 Interest Rate:	[   ]% per annum.
	Underlying Securities
 Record Dates:	The close of business on the fifteenth calendar day, immediately prior to the relevant interest payment date.

    	 

    	 

    

 

	Underlying Securities
 Redemption:	The Underlying Securities will be redeemable, as a whole or in part, at the option of the Underlying Securities issuer, at any time or from time to time, on prior notice mailed to the registered address of each holder of the Underlying Securities.  The redemption price for the Underlying Securities will be equal to the greater of (1) 100% of the principal amount of the securities to be redeemed, and (2) the sum of the present values of the Remaining Scheduled Payments, discounted, on a semi-annual basis, (assuming a 360-day year consisting of twelve 30 day months), at a rate equal to the sum of the Treasury Rate plus [   ] basis points.  Accrued interest will be payable to the redemption date.
	Underlying Securities
 Collateral:	[       ].
	Underlying Securities
 Amortization:	[       ].
	Underlying Securities
 Accrual Periods:	[       ].
	Underlying Securities
 Authorized Denomination
 and Specified Currency:	The Underlying Securities are denominated and payable in U.S. dollars and are available in minimum denominations of $[       ] and integral multiples of $[       ] in excess of $[       ].
	[Underlying Securities
 Rating as of Closing:]	“[       ]” by S&P
	Underlying Securities Form:	Book entry security with DTC[, Clearstream and Euroclear].

    	 

    	 

    

SCHEDULE II

ISDA Master Agreement, Schedule and Confirm

 

(begins on next page)

    	 

 	 

    
(Multicurrency—Cross
Border)

ISDAÒ

International Swap Dealers Association,
Inc.

MASTER AGREEMENT

dated as of......... ...................

between

.............and...................,
as Issuer

have entered and/or anticipate entering
into one or more transactions (each a “Transaction”) that are or will
be governed by this Master Agreement, which includes the schedule (the “Schedule”), and the documents
and other confirming evidence (each a “Confirmation”) exchanged between the parties confirming those
Transactions.

Accordingly, the parties agree as follows:—

1.Interpretation

(a)Definitions.
The terms defined in Section 14 and in the Schedule will have the meanings therein
specified for the purpose of this Master Agreement.

(b)Inconsistency.
In the event of any inconsistency between the provisions of the Schedule and the
other provisions of this Master Agreement, the Schedule will prevail. In the event of any inconsistency
between the provisions of any Confirmation and this Master Agreement (including the Schedule), such
Confirmation will prevail for the purpose of the relevant Transaction.

(c)Single Agreement.
All Transactions are entered into in reliance on the fact that this Master
Agreement and all Confirmations form a single agreement between the parties (collectively referred to as
this “Agreement”), and the parties would not otherwise enter into any Transactions.

2.Obligations

(a)General Conditions.

(i)Each party will make each
payment or delivery specified in each Confirmation to be made by
it, subject to the other provisions of this Agreement.

(ii)Payments under this Agreement
will be made on the due date for value on that date in the place
of the account specified in the relevant Confirmation or otherwise pursuant to this Agreement, in
freely transferable funds and in the manner customary for payments in the required currency. Where
settlement is by delivery (that is, other than by payment), such delivery will be made for receipt on
the due date in the manner customary for the relevant obligation unless otherwise specified in the
relevant Confirmation or elsewhere in this Agreement.

(iii)Each obligation of
each party under Section 2(a)(i) is subject to (1) the condition precedent
that no Event of Default or Potential Event of Default with respect to the other party has occurred
and is continuing, (2) the condition precedent that no Early Termination Date in respect of the

    	1

    	 

    

relevant Transaction has occurred
or been effectively designated and (3) each other applicable
condition precedent specified in this Agreement.

(b)Change of Account.
Either party may change its account for receiving a payment or delivery by
giving notice to the other party at least five Local Business Days prior to the scheduled date for the payment
or delivery to which such change applies unless such other party gives timely notice of a reasonable objection
to such change.

(c)Netting. If
on any date amounts would otherwise be payable:—

(i)in the same currency;
and

(ii)in respect of the same
Transaction,

by each party to the other, then, on
such date, each party’s obligation to make payment of any such amount
will be automatically satisfied and discharged and, if the aggregate amount that would otherwise have been
payable by one party exceeds the aggregate amount that would otherwise have been payable by the other
party, replaced by an obligation upon the party by whom the larger aggregate amount would have been
payable to pay to the other party the excess of the larger aggregate amount over the smaller aggregate amount.

The parties may elect in respect of
two or more Transactions that a net amount will be determined in respect
of all amounts payable on the same date in the same currency in respect of such Transactions, regardless of
whether such amounts are payable in respect of the same Transaction. The election may be made in the
Schedule or a Confirmation by specifying that subparagraph (ii) above will not apply to the Transactions
identified as being subject to the election, together with the starting date (in which case subparagraph (ii)
above will not, or will cease to, apply to such Transactions from such date). This election may be made
separately for different groups of Transactions and will apply separately to each pairing of Offices through
which the parties make and receive payments or deliveries.

(d)Deduction or Withholding
for Tax.

(i)Gross-Up. All
payments under this Agreement will be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding is required by any
applicable law, as modified by the practice of any relevant governmental revenue authority, then in
effect. If a party is so required to deduct or withhold, then that party (“X”) will:—

(1)promptly notify
the other party (“Y”) of such requirement;

(2)pay to the relevant
authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any additional amount
paid by X to Y under this Section 2(d)) promptly upon the earlier of determining that such
deduction or withholding is required or receiving notice that such amount has been assessed
against Y;

(3)promptly forward
to Y an official receipt (or a certified copy), or other documentation
reasonably acceptable to Y, evidencing such payment to such authorities; and

(4)if such Tax is
an Indemnifiable Tax, pay to Y, in addition to the payment to which Y is
otherwise entitled under this Agreement, such additional amount as is necessary to ensure that
the net amount actually received by Y (free and clear of Indemnifiable Taxes, whether assessed
against X or Y) will equal the full amount Y would have received had no such deduction or
withholding been required. However, X will not be required to pay any additional amount to
Y to the extent that it would not be required to be paid but for:—

(A)the failure by
Y to comply with or perform any agreement contained in
Section 4(a)(i), 4(a)(iii) or 4(d); or

(B)the failure of
a representation made by Y pursuant to Section 3(f) to be accurate and
true unless such failure would not have occurred but for (I) any action taken by a taxing
authority, or brought in a court of competent jurisdiction, on or after the date on which a

    	2

    	 

    

Transaction is entered
into (regardless of whether such action is taken or brought with
respect to a party to this Agreement) or (II) a Change in Tax Law.

(ii)Liability.
If:—

(1)X is required by
any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect of which X
would not be required to pay an additional amount to Y under Section 2(d)(i)(4);

(2)X does not so deduct
or withhold; and

(3)a liability resulting
from such Tax is assessed directly against X,

then, except to the extent Y
has satisfied or then satisfies the liability resulting from such Tax, Y
will promptly pay to X the amount of such liability (including any related liability for interest, but
including any related liability for penalties only if Y has failed to comply with or perform any
agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

(e)Default Interest; Other
Amounts. Prior to the occurrence or effective designation of an Early
Termination Date in respect of the relevant Transaction, a party that defaults in the performance of any
payment obligation will, to the extent permitted by law and subject to Section 6(c), be required to pay interest
(before as well as after judgment) on the overdue amount to the other party on demand in the same currency
as such overdue amount, for the period from (and including) the original due date for payment to (but
excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of
daily compounding and the actual number of days elapsed. If, prior to the occurrence or effective designation
of an Early Termination Date in respect of the relevant Transaction, a party defaults in the performance of
any obligation required to be settled by delivery, it will compensate the other party on demand if and to the
extent provided for in the relevant Confirmation or elsewhere in this Agreement.

3.Representations

Each party represents to the other
party (which representations will be deemed to be repeated by each party
on each date on which a Transaction is entered into and, in the case of the representations in Section 3(f), at
all times until the termination of this Agreement) that:—

(a)Basic Representations.

(i)Status.
It is duly organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good standing;

(ii)Powers.
It has the power to execute this Agreement and any other documentation relating to
this Agreement to which it is a party, to deliver this Agreement and any other documentation relating
to this Agreement that it is required by this Agreement to deliver and to perform its obligations
under this Agreement and any obligations it has under any Credit Support Document to which it is
a party and has taken all necessary action to authorise such execution, delivery and performance;

(iii)No Violation or
Conflict. Such execution, delivery and performance do not violate or conflict
with any law applicable to it, any provision of its constitutional documents, any order or judgment
of any court or other agency of government applicable to it or any of its assets or any contractual
restriction binding on or affecting it or any of its assets;

(iv)Consents.
All governmental and other consents that are required to have been obtained by it
with respect to this Agreement or any Credit Support Document to which it is a party have been
obtained and are in full force and effect and all conditions of any such consents have been complied
with; and

(v)Obligations Binding.
Its obligations under this Agreement and any Credit Support Document
to which it is a party constitute its legal, valid and binding obligations, enforceable in accordance
with their respective terms (subject to applicable bankruptcy, reorganisation, insolvency,
moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to

    	3

    	 

    

equitable principles of general
application (regardless of whether enforcement is sought in a
proceeding in equity or at law)).

(b)Absence of Certain Events.
No Event of Default or Potential Event of Default or, to its knowledge,
Termination Event with respect to it has occurred and is continuing and no such event or circumstance would
occur as a result of its entering into or performing its obligations under this Agreement or any Credit Support
Document to which it is a party.

(c)Absence of Litigation.
There is not pending or, to its knowledge, threatened against it or any of its
Affiliates any action, suit or proceeding at law or in equity or before any court, tribunal, governmental body,
agency or official or any arbitrator that is likely to affect the legality, validity or enforceability against it of
this Agreement or any Credit Support Document to which it is a party or its ability to perform its obligations
under this Agreement or such Credit Support Document.

(d)Accuracy of Specified
Information. All applicable information that is furnished in writing by or on
behalf of it to the other party and is identified for the purpose of this Section 3(d) in the Schedule is, as of
the date of the information, true, accurate and complete in every material respect.

(e)Payer Tax Representation.
Each representation specified in the Schedule as being made by it for
the purpose of this Section 3(e) is accurate and true.

(f)Payee Tax Representations.
Each representation specified in the Schedule as being made by it for
the purpose of this Section 3(f) is accurate and true.

4.Agreements

Each party agrees with the other that,
so long as either party has or may have any obligation under this
Agreement or under any Credit Support Document to which it is a party:—

(a)Furnish Specified Information.
It will deliver to the other party or, in certain cases under
subparagraph (iii) below, to such government or taxing authority as the other party reasonably directs:—

(i)any forms, documents or
certificates relating to taxation specified in the Schedule or any
Confirmation;

(ii)any other documents specified
in the Schedule or any Confirmation; and

(iii)upon reasonable demand
by such other party, any form or document that may be required or
reasonably requested in writing in order to allow such other party or its Credit Support Provider to
make a payment under this Agreement or any applicable Credit Support Document without any
deduction or withholding for or on account of any Tax or with such deduction or withholding at a
reduced rate (so long as the completion, execution or submission of such form or document would
not materially prejudice the legal or commercial position of the party in receipt of such demand),
with any such form or document to be accurate and completed in a manner reasonably satisfactory
to such other party and to be executed and to be delivered with any reasonably required certification,

in each case by the date specified
in the Schedule or such Confirmation or, if none is specified, as soon as
reasonably practicable.

(b)Maintain Authorisations.
It will use all reasonable efforts to maintain in full force and effect all
consents of any governmental or other authority that are required to be obtained by it with respect to this
Agreement or any Credit Support Document to which it is a party and will use all reasonable efforts to obtain
any that may become necessary in the future.

(c)Comply with Laws.
It will comply in all material respects with all applicable laws and orders to
which it may be subject if failure so to comply would materially impair its ability to perform its obligations
under this Agreement or any Credit Support Document to which it is a party.

(d)Tax Agreement.
It will give notice of any failure of a representation made by it under Section 3(f)
to be accurate and true promptly upon learning of such failure.

    	4

    	 

    

(e)Payment of Stamp Tax.
Subject to Section 11, it will pay any Stamp Tax levied or imposed upon
it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is incorporated,
organised, managed and controlled, or considered to have its seat, or in which a branch or office through
which it is acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will indemnify
the other party against any Stamp Tax levied or imposed upon the other party or in respect of the other party’s
execution or performance of this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp
Tax Jurisdiction with respect to the other party.

5.Events of Default and Termination Events

(a)Events of Default.
The occurrence at any time with respect to a party or, if applicable, any Credit
Support Provider of such party or any Specified Entity of such party of any of the following events constitutes
an event of default (an “Event of Default”) with respect to such party:—

(i)Failure to Pay
or Deliver. Failure by the party to make, when due, any payment under this
Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such failure is not
remedied on or before the third Local Business Day after notice of such failure is given to the party;

(ii)Breach of
Agreement. Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement or delivery under
Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or obligation
under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the party in accordance
with this Agreement if such failure is not remedied on or before the thirtieth day after notice of
such failure is given to the party;

(iii)Credit Support
Default.

(1)Failure by the
party or any Credit Support Provider of such party to comply with or
perform any agreement or obligation to be complied with or performed by it in accordance
with any Credit Support Document if such failure is continuing after any applicable grace
period has elapsed;

(2)the expiration
or termination of such Credit Support Document or the failing or ceasing
of such Credit Support Document to be in full force and effect for the purpose of this Agreement
(in either case other than in accordance with its terms) prior to the satisfaction of all obligations
of such party under each Transaction to which such Credit Support Document relates without
the written consent of the other party; or

(3)the party or such
Credit Support Provider disaffirms, disclaims, repudiates or rejects, in
whole or in part, or challenges the validity of, such Credit Support Document;

(iv)Misrepresentation.
A representation (other than a representation under Section 3(e) or (f))
made or repeated or deemed to have been made or repeated by the party or any Credit Support
Provider of such party in this Agreement or any Credit Support Document proves to have been
incorrect or misleading in any material respect when made or repeated or deemed to have been made
or repeated;

(v)Default under
Specified Transaction. The party, any Credit Support Provider of such party or
any applicable Specified Entity of such party (1) defaults under a Specified Transaction and, after
giving effect to any applicable notice requirement or grace period, there occurs a liquidation of, an acceleration of obligations
under, or an early termination of, that Specified Transaction, (2) defaults,
after giving effect to any applicable notice requirement or grace period, in making any payment or
delivery due on the last payment, delivery or exchange date of, or any payment on early termination
of, a Specified Transaction (or such default continues for at least three Local Business Days if there
is no applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or
rejects, in whole or in part, a Specified Transaction (or such action is taken by any person or entity
appointed or empowered to operate it or act on its behalf);

(vi)Cross Default.
If “Cross Default” is specified in the Schedule
as applying to the party, the
occurrence or existence of (1) a default, event of default or other similar condition or event (however

    	5

    	 

    

described) in respect of
such party, any Credit Support Provider of such party or any applicable
Specified Entity of such party under one or more agreements or instruments relating to Specified
Indebtedness of any of them (individually or collectively) in an aggregate amount of not less than
the applicable Threshold Amount (as specified in the Schedule) which has resulted in such Specified
Indebtedness becoming, or becoming capable at such time of being declared, due and payable under
such agreements or instruments, before it would otherwise have been due and payable or (2) a default
by such party, such Credit Support Provider or such Specified Entity (individually or collectively)
in making one or more payments on the due date thereof in an aggregate amount of not less than the
applicable Threshold Amount under such agreements or instruments (after giving effect to any
applicable notice requirement or grace period);

(vii)Bankruptcy.
The party, any Credit Support Provider of such party or any applicable Specified
Entity of such party:—

(1) is dissolved (other
than pursuant to a consolidation, amalgamation or merger); (2) becomes
insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay
its debts as they become due; (3) makes a general assignment, arrangement or composition
with or for the benefit of its creditors; (4) institutes or has instituted against it a proceeding
seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or
insolvency law or other similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition instituted or
presented against it, such proceeding or petition (A) results in a judgment of insolvency or
bankruptcy or the entry of an order for relief or the making of an order for its winding-up or
liquidation or (B) is not dismissed, discharged, stayed or restrained in each case within 30 days
of the institution or presentation thereof; (5) has a resolution passed for its winding-up, official
management or liquidation (other than pursuant to a consolidation, amalgamation or merger);
(6) seeks or becomes subject to the appointment of an administrator, provisional liquidator,
conservator, receiver, trustee, custodian or other similar official for it or for all or substantially
all its assets; (7) has a secured party take possession of all or substantially all its assets or has
a distress, execution, attachment, sequestration or other legal process levied, enforced or sued
on or against all or substantially all its assets and such secured party maintains possession, or
any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days
thereafter; (8) causes or is subject to any event with respect to it which, under the applicable
laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1)
to (7) inclusive); or (9) takes any action in furtherance of, or indicating its consent to, approval
of, or acquiescence in, any of the foregoing acts; or

(viii)Merger Without
Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets
to, another entity and, at the time of such consolidation, amalgamation, merger or transfer:—

(1)the resulting,
surviving or transferee entity fails to assume all the obligations of such party
or such Credit Support Provider under this Agreement or any Credit Support Document to
which it or its predecessor was a party by operation of law or pursuant to an agreement
reasonably satisfactory to the other party to this Agreement; or

(2)the benefits of
any Credit Support Document fail to extend (without the consent of the
other party) to the performance by such resulting, surviving or transferee entity of its obligations
under this Agreement.

(b)Termination Events.
The occurrence at any time with respect to a party or, if applicable, any Credit
Support Provider of such party or any Specified Entity of such party of any event specified below constitutes
an Illegality if the event is specified in (i) below, a Tax Event if the event is specified in (ii) below or a Tax
Event Upon Merger if the event is specified in (iii) below, and, if specified to be applicable, a Credit Event

    	6

    	 

    

Upon Merger if the event is specified
pursuant to (iv) below or an Additional Termination Event if the event
is specified pursuant to (v) below:—

(i)Illegality.
Due to the adoption of, or any change in, any applicable law after the date on which
a Transaction is entered into, or due to the promulgation of, or any change in, the interpretation by
any court, tribunal or regulatory authority with competent jurisdiction of any applicable law after
such date, it becomes unlawful (other than as a result of a breach by the party of Section 4(b)) for
such party (which will be the Affected Party):—

(1)to perform any
absolute or contingent obligation to make a payment or delivery or to
receive a payment or delivery in respect of such Transaction or to comply with any other
material provision of this Agreement relating to such Transaction; or

(2)to perform, or
for any Credit Support Provider of such party to perform, any contingent
or other obligation which the party (or such Credit Support Provider) has under any Credit
Support Document relating to such Transaction;

(ii)Tax Event.
Due to (x) any action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into (regardless of whether such
action is taken or brought with respect to a party to this Agreement) or (y) a Change in Tax Law,
the party (which will be the Affected Party) will, or there is a substantial likelihood that it will, on
the next succeeding Scheduled Payment Date (1) be required to pay to the other party an additional
amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to
be deducted or withheld for or on account of a Tax (except in respect of interest under Section 2(e),
6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect of such Tax under
Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));

(iii)Tax Event
Upon Merger. The party (the “Burdened Party”) on the next succeeding Scheduled
Payment Date will either (1) be required to pay an additional amount in respect of an Indemnifiable
Tax under Section 2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or
(2) receive a payment from which an amount has been deducted or withheld for or on account of
any Indemnifiable Tax in respect of which the other party is not required to pay an additional amount
(other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party
consolidating or amalgamating with, or merging with or into, or transferring all or substantially all
its assets to, another entity (which will be the Affected Party) where such action does not constitute
an event described in Section 5(a)(viii);

(iv)Credit Event Upon
Merger. If “Credit Event Upon Merger” is specified in the Schedule as applying
to the party, such party (“X”), any Credit Support Provider of X or any applicable Specified Entity of X
consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets
to, another entity and such action does not constitute an event described in Section 5(a)(viii) but the
creditworthiness of the resulting, surviving or transferee entity is materially weaker than that of X, such
Credit Support Provider or such Specified Entity, as the case may be, immediately prior to such action
(and, in such event, X or its successor or transferee, as appropriate, will be the Affected Party); or

(v)Additional Termination
Event. If any “Additional Termination Event” is specified in the
Schedule or any Confirmation as applying, the occurrence of such event (and, in such event, the
Affected Party or Affected Parties shall be as specified for such Additional Termination Event in
the Schedule or such Confirmation).

(c)Event of Default and Illegality.
If an event or circumstance which would otherwise constitute or
give rise to an Event of Default also constitutes an Illegality, it will be treated as an Illegality and will not
constitute an Event of Default.

    	7

    	 

    

6.Early Termination

(a)Right to Terminate
Following Event of Default. If at any time an Event of Default with respect to
a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the “Non-defaulting
Party” may, by not more than 20 days notice to the Defaulting Party specifying the relevant Event of Default,
designate a day not earlier than the day such notice is effective as an Early Termination Date in respect of
all outstanding Transactions. If, however, “Automatic Early Termination” is specified in the Schedule as
applying to a party, then an Early Termination Date in respect of all outstanding Transactions will occur
immediately upon the occurrence with respect to such party of an Event of Default specified in
Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately
preceding the institution of the relevant proceeding or the presentation of the relevant petition upon the
occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent
analogous thereto, (8).

(b)Right to Terminate Following
Termination Event.

(i)Notice.
If a Termination Event occurs, an Affected Party will, promptly upon becoming aware of
it, notify the other party, specifying the nature of that Termination Event and each Affected Transaction
and will also give such other information about that Termination Event as the other party may reasonably
require.

(ii)Transfer to Avoid
Termination Event. If either an Illegality under Section 5(b)(i)(1) or a Tax
Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger occurs and the
Burdened Party is the Affected Party, the Affected Party will, as a condition to its right to designate
an Early Termination Date under Section 6(b)(iv), use all reasonable efforts (which will not require
such party to incur a loss, excluding immaterial, incidental expenses) to transfer within 20 days after
it gives notice under Section 6(b)(i) all its rights and obligations under this Agreement in respect of
the Affected Transactions to another of its Offices or Affiliates so that such Termination Event
ceases to exist.

If the Affected Party is not
able to make such a transfer it will give notice to the other party to that
effect within such 20 day period, whereupon the other party may effect such a transfer within
30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party
under this Section 6(b)(ii) will be subject to and conditional upon the
prior written consent of the other party, which consent will not be withheld if such other party’s
policies in effect at such time would permit it to enter into transactions with the transferee on the
terms proposed.

(iii)Two Affected Parties.
If an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two Affected Parties, each party will use all reasonable
efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to avoid that Termination
Event.

(iv)Right to Terminate.
If:—

(1)a transfer under
Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the case may
be, has not been effected with respect to all Affected Transactions within 30 days after an
Affected Party gives notice under Section 6(b)(i); or

(2)an Illegality under
Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened Party is not
the Affected Party,

either party in the case of an
Illegality, the Burdened Party in the case of a Tax Event Upon Merger,
any Affected Party in the case of a Tax Event or an Additional Termination Event if there is more
than one Affected Party, or the party which is not the Affected Party in the case of a Credit Event
Upon Merger or an Additional Termination Event if there is only one Affected Party may, by not
more than 20 days notice to the other party and provided that the relevant Termination Event is then

    	8

    	 

    
continuing, designate a day not earlier than the day such notice is effective as an Early Termination
Date in respect of all Affected Transactions.

(c)Effect of Designation.

(i)If notice designating
an Early Termination Date is given under Section 6(a) or (b), the Early
Termination Date will occur on the date so designated, whether or not the relevant Event of Default
or Termination Event is then continuing.

(ii)Upon the occurrence or
effective designation of an Early Termination Date, no further
payments or deliveries under Section 2(a)(i) or 2(e) in respect of the Terminated Transactions will
be required to be made, but without prejudice to the other provisions of this Agreement. The amount,
if any, payable in respect of an Early Termination Date shall be determined pursuant to Section 6(e).

(d)Calculations.

(i)Statement.
On or as soon as reasonably practicable following the occurrence of an Early
Termination Date, each party will make the calculations on its part, if any, contemplated by Section 6(e)
and will provide to the other party a statement (1) showing, in reasonable detail, such calculations
(including all relevant quotations and specifying any amount payable under Section 6(e)) and (2) giving
details of the relevant account to which any amount payable to it is to be paid. In the absence of written
confirmation from the source of a quotation obtained in determining a Market Quotation, the records of
the party obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation.

(ii)Payment Date.
An amount calculated as being due in respect of any Early Termination Date
under Section 6(e) will be payable on the day that notice of the amount payable is effective (in the
case of an Early Termination Date which is designated or occurs as a result of an Event of Default)
and on the day which is two Local Business Days after the day on which notice of the amount payable
is effective (in the case of an Early Termination Date which is designated as a result of a Termination
Event). Such amount will be paid together with (to the extent permitted under applicable law)
interest thereon (before as well as after judgment) in the Termination Currency, from (and including)
the relevant Early Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate. Such interest will be calculated on the basis of daily compounding and the actual
number of days elapsed.

(e)Payments on Early Termination.
If an Early Termination Date occurs, the following provisions
shall apply based on the parties’ election in the Schedule of a payment measure, either “Market Quotation”
or “Loss”, and a payment method, either the “First Method” or the “Second Method”. If the parties
fail to
designate a payment measure or payment method in the Schedule, it will be deemed that “Market Quotation”
or the “Second Method”, as the case may be, shall apply. The amount, if any, payable in respect of an Early
Termination Date and determined pursuant to this Section will be subject to any Set-off.

(i)Events of Default.
If the Early Termination Date results from an Event of Default:—

(1)First Method
and Market Quotation. If the First Method and Market Quotation apply, the
Defaulting Party will pay to the Non-defaulting Party the excess, if a positive number, of (A) the
sum of the Settlement Amount (determined by the Non-defaulting Party) in respect of the
Terminated Transactions and the Termination Currency Equivalent of the Unpaid Amounts owing
to the Non-defaulting Party over (B) the Termination Currency Equivalent of the Unpaid Amounts
owing to the Defaulting Party.

(2)First Method
and Loss. If the First Method and Loss apply, the Defaulting Party will pay
to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s Loss in respect
of this Agreement.

(3)Second Method
and Market Quotation. If the Second Method and Market Quotation apply,
an amount will be payable equal to (A) the sum of the Settlement Amount (determined by the

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Non-defaulting Party)
in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is
a positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting
Party.

(4)Second Method
and Loss. If the Second Method and Loss apply, an amount will be payable
equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to the Defaulting
Party.

(ii)Termination Events.
If the Early Termination Date results from a Termination Event:—

(1)One Affected
Party. If there is one Affected Party, the amount payable will be determined
in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
applies, except that, in either case, references to the Defaulting Party and to the Non-defaulting
Party will be deemed to be references to the Affected Party and the party which is not the
Affected Party, respectively, and, if Loss applies and fewer than all the Transactions are being
terminated, Loss shall be calculated in respect of all Terminated Transactions.

(2)Two Affected
Parties. If there are two Affected Parties:—

(A)if Market Quotation
applies, each party will determine a Settlement Amount in
respect of the Terminated Transactions, and an amount will be payable equal to (I) the
sum of (a) one-half of the difference between the Settlement Amount of the party with
the higher Settlement Amount (“X”) and the Settlement Amount of the party with the
lower Settlement Amount (“Y”) and (b) the Termination Currency Equivalent of the
Unpaid Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid
Amounts owing to Y; and

(B)if Loss applies,
each party will determine its Loss in respect of this Agreement (or,
if fewer than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference between
the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower
Loss (“Y”).

If the amount payable
is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of that amount to Y.

(iii)Adjustment for
Bankruptcy. In circumstances where an Early Termination Date occurs
because “Automatic Early Termination” applies in respect of a party, the amount determined under
this Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to
reflect any payments or deliveries made by one party to the other under this Agreement (and retained
by such other party) during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

(iv)Pre-Estimate.
The parties agree that if Market Quotation applies an amount recoverable under
this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable for
the loss of bargain and the loss of protection against future risks and except as otherwise provided
in this Agreement neither party will be entitled to recover any additional damages as a consequence
of such losses.

    	10

    	 

    

7.Transfer

Subject to Section 6(b)(ii), neither
this Agreement nor any interest or obligation in or under this Agreement
may be transferred (whether by way of security or otherwise) by either party without the prior written consent
of the other party, except that:—

(a)a party may make such a transfer
of this Agreement pursuant to a consolidation or amalgamation
with, or merger with or into, or transfer of all or substantially all its assets to, another entity (but without
prejudice to any other right or remedy under this Agreement); and

(b)a party may make such a transfer
of all or any part of its interest in any amount payable to it from
a Defaulting Party under Section 6(e).

Any purported transfer that is not
in compliance with this Section will be void.

8.Contractual Currency

(a)Payment in the Contractual
Currency. Each payment under this Agreement will be made in the
relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the extent
permitted by applicable law, any obligation to make payments under this Agreement in the Contractual
Currency will not be discharged or satisfied by any tender in any currency other than the Contractual
Currency, except to the extent such tender results in the actual receipt by the party to which payment is owed,
acting in a reasonable manner and in good faith in converting the currency so tendered into the Contractual
Currency, of the full amount in the Contractual Currency of all amounts payable in respect of this Agreement.
If for any reason the amount in the Contractual Currency so received falls short of the amount in the
Contractual Currency payable in respect of this Agreement, the party required to make the payment will, to
the extent permitted by applicable law, immediately pay such additional amount in the Contractual Currency
as may be necessary to compensate for the shortfall. If for any reason the amount in the Contractual Currency
so received exceeds the amount in the Contractual Currency payable in respect of this Agreement, the party
receiving the payment will refund promptly the amount of such excess.

(b)Judgments.
To the extent permitted by applicable law, if any judgment or order expressed in a
currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in respect
of this Agreement, (ii) for the payment of any amount relating to any early termination in respect of this
Agreement or (iii) in respect of a judgment or order of another court for the payment of any amount described
in (i) or (ii) above, the party seeking recovery, after recovery in full of the aggregate amount to which such
party is entitled pursuant to the judgment or order, will be entitled to receive immediately from the other
party the amount of any shortfall of the Contractual Currency received by such party as a consequence of
sums paid in such other currency and will refund promptly to the other party any excess of the Contractual
Currency received by such party as a consequence of sums paid in such other currency if such shortfall or
such excess arises or results from any variation between the rate of exchange at which the Contractual
Currency is converted into the currency of the judgment or order
for the purposes of such judgment or order
and the rate of exchange at which such party is able, acting in a reasonable manner and in good faith in
converting the currency received into the Contractual Currency, to purchase the Contractual Currency with
the amount of the currency of the judgment or order actually received by such party. The term “rate of
exchange” includes, without limitation, any premiums and costs of exchange payable in connection with the
purchase of or conversion into the Contractual Currency.

(c)Separate Indemnities.
To the extent permitted by applicable law, these indemnities constitute
separate and independent obligations from the other obligations in this Agreement, will be enforceable as
separate and independent causes of action, will apply notwithstanding any indulgence granted by the party
to which any payment is owed and will not be affected by judgment being obtained or claim or proof being
made for any other sums payable in respect of this Agreement.

(d)Evidence of Loss.
For the purpose of this Section 8, it will be sufficient for a party to demonstrate
that it would have suffered a loss had an actual exchange or purchase been made.

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9.Miscellaneous

(a)Entire Agreement.
This Agreement constitutes the entire agreement and understanding of the parties
with respect to its subject matter and supersedes all oral communication and prior writings with respect
thereto.

(b)Amendments.
No amendment, modification or waiver in respect of this Agreement will be effective
unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging system.

(c)Survival of Obligations.
Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the
parties under this Agreement will survive the termination of any Transaction.

(d)Remedies Cumulative.
Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies
and privileges provided by law.

(e)Counterparts and Confirmations.

(i)This Agreement (and each
amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission), each of which will be
deemed an original.

(ii)The parties intend that
they are legally bound by the terms of each Transaction from the moment
they agree to those terms (whether orally or otherwise). A Confirmation shall be entered into as
soon as practicable and may be executed and delivered in counterparts (including by facsimile
transmission) or be created by an exchange of telexes or by an exchange of electronic messages on
an electronic messaging system, which in each case will be sufficient for all purposes to evidence
a binding supplement to this Agreement. The parties will specify therein or through another effective
means that any such counterpart, telex or electronic message constitutes a Confirmation.

(f)No Waiver of Rights.
A failure or delay in exercising any right, power or privilege in respect of this
Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power
or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or
privilege or the exercise of any other right, power or privilege.

(g)Headings.
The headings used in this Agreement are for convenience of reference only and are not
to affect the construction of or to be taken into consideration in interpreting this Agreement.

10.Offices; Multibranch Parties

(a)If Section 10(a) is specified
in the Schedule as applying, each party that enters into a Transaction
through an Office other than its head or home office represents to the other party that, notwithstanding the
place of booking office or jurisdiction of incorporation or organisation of such party, the obligations of such
party are the same as if it had entered into the Transaction through its head or home office. This representation
will be deemed to be repeated by such party on each date on which a Transaction is entered into.

(b)Neither party may change the
Office through which it makes and receives payments or deliveries
for the purpose of a Transaction without the prior written consent of the other party.

(c)If a party is specified as a
Multibranch Party in the Schedule, such Multibranch Party may make
and receive payments or deliveries under any Transaction through any Office listed in the Schedule, and the
Office through which it makes and receives payments or deliveries with respect to a Transaction will be
specified in the relevant Confirmation.

11.Expenses

A Defaulting Party will, on demand,
indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party by
reason of the enforcement and protection of its rights under this Agreement or any Credit Support Document

    	12

    	 

    
to which the Defaulting Party is a party or by reason of the early termination of any Transaction, including,
but not limited to, costs of collection.

12.Notices

(a)Effectiveness.
Any notice or other communication in respect of this Agreement may be given in any
manner set forth below (except that a notice or other communication under Section 5 or 6 may not be given
by facsimile transmission or electronic messaging system) to the address or number or in accordance with
the electronic messaging system details provided (see the Schedule) and will be deemed effective as
indicated:—

(i)if in writing and delivered
in person or by courier, on the date it is delivered;

(ii)if sent by telex, on
the date the recipient’s answerback is received;

(iii)if sent by facsimile
transmission, on the date that transmission is received by a responsible
employee of the recipient in legible form (it being agreed that the burden of proving receipt will be
on the sender and will not be met by a transmission report generated by the sender’s facsimile
machine);

(iv)if sent by certified
or registered mail (airmail, if overseas) or the equivalent (return receipt
requested), on the date that mail is delivered or its delivery is attempted;
or

(v)if sent by electronic
messaging system, on the date that electronic message is received,

unless the date of that delivery (or
attempted delivery) or that receipt, as applicable, is not a Local Business
Day or that communication is delivered (or attempted) or received, as applicable, after the close of business
on a Local Business Day, in which case that communication shall be deemed given and effective on the first
following day that is a Local Business Day.

(b)Change of Addresses.
Either party may by notice to the other change the address, telex or facsimile
number or electronic messaging system details at which notices or other communications are to be given to
it.

13.Governing Law and Jurisdiction

(a)Governing Law.
This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

(b)Jurisdiction.
With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably:—

(i)submits to the jurisdiction
of the English courts, if this Agreement is expressed to be governed
by English law, or to the non-exclusive jurisdiction of the courts of the State of New York and the
United States District Court located in the Borough of Manhattan in New York City, if this
Agreement is expressed to be governed by the laws of the State of New York; and

(ii)waives any objection
which it may have at any time to the laying of venue of any Proceedings
brought in any such court, waives any claim that such Proceedings have been brought in an
inconvenient forum and further waives the right to object, with respect to such Proceedings, that
such court does not have any jurisdiction over such party.

Nothing in this Agreement precludes
either party from bringing Proceedings in any other jurisdiction
(outside, if this Agreement is expressed to be governed by English law, the Contracting States, as defined
in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of Proceedings in any one or more
jurisdictions preclude the bringing of Proceedings in any other jurisdiction.

(c)Service of Process.
Each party irrevocably appoints the Process Agent (if any) specified opposite
its name in the Schedule to receive, for it and on its behalf, service of process in any Proceedings. If for any

    	13

    	 

    

reason any party’s Process Agent
is unable to act as such, such party will promptly notify the other party
and within 30 days appoint a substitute process agent acceptable to the other party. The parties irrevocably
consent to service of process given in the manner provided for notices in Section 12. Nothing in this
Agreement will affect the right of either party to serve process in any other manner permitted by law.

(d)Waiver of Immunities.
Each party irrevocably waives, to the fullest extent permitted by applicable
law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity
on the grounds of sovereignty or other similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief
by way of injunction, order for specific performance or for recovery of property, (iv) attachment of its assets
(whether before or after judgment) and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts of any jurisdiction and
irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such immunity in any
Proceedings.

14.Definitions

As used in this Agreement:—

“Additional Termination
Event” has the meaning specified in Section 5(b).

“Affected Party”
has the meaning specified in Section 5(b).

“Affected Transactions”
means (a) with respect to any Termination Event consisting of an Illegality, Tax
Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such Termination Event
and (b) with respect to any other Termination Event, all Transactions.

“Affiliate”
means, subject to the Schedule, in relation to any person, any entity controlled, directly or
indirectly, by the person, any entity that controls, directly or indirectly, the person or any entity directly or
indirectly under common control with the person. For this purpose, “control” of any entity or person means
ownership of a majority of the voting power of the entity or person.

“Applicable Rate”
means:—

(a)in respect of obligations payable
or deliverable (or which would have been but for Section 2(a)(iii))
by a Defaulting Party, the Default Rate;

(b)in respect of an obligation
to pay an amount under Section 6(e) of either party from and after the date
(determined in accordance with Section 6(d)(ii)) on which that amount is payable, the Default Rate;

(c)in respect of all other obligations
payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

(d)in all other cases, the Termination
Rate.

“Burdened Party”
has the meaning specified in Section 5(b).

“Change in Tax Law”
means the enactment, promulgation, execution or ratification of, or any change in or
amendment to, any law (or in the application or official interpretation of any law) that occurs on or after the
date on which the relevant Transaction is entered into.

“consent”
includes a consent, approval, action, authorisation, exemption, notice, filing, registration or
exchange control consent.

“Credit Event Upon Merger”
has the meaning specified in Section 5(b).

“Credit Support Document”
means any agreement or instrument that is specified as such in this Agreement.

“Credit Support Provider”
has the meaning specified in the Schedule.

“Default Rate”
means a rate per annum equal to the cost (without proof or evidence of any actual cost) to
the relevant payee (as certified by it) if it were to fund or of funding the relevant amount plus 1 % per annum.

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“Defaulting Party”
has the meaning specified in Section 6(a).

“Early Termination Date”
means the date determined in accordance with Section 6(a) or 6(b)(iv).

“Event of Default”
has the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Illegality”
has the meaning specified in Section 5(b).

“Indemnifiable Tax”
means any Tax other than a Tax that would not be imposed in respect of a payment
under this Agreement but for a present or former connection between the jurisdiction of the government or
taxation authority imposing such Tax and the recipient of such payment or a person related to such recipient
(including, without limitation, a connection arising from such recipient or related person being or having
been a citizen or resident of such jurisdiction, or being or having been organised, present or engaged in a
trade or business in such jurisdiction, or having or having had a permanent establishment or fixed place of
business in such jurisdiction, but excluding a connection arising solely from such recipient or related person
having executed, delivered, performed its obligations or received a payment under, or enforced, this
Agreement or a Credit Support Document).

“law” includes
any treaty, law, rule or regulation (as modified, in the case of tax matters, by the practice of
any relevant governmental revenue authority) and “lawful” and “unlawful” will
be construed accordingly.

“Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to any
obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if not so specified,
as otherwise agreed by the parties in writing or determined pursuant to provisions contained, or incorporated
by reference, in this Agreement, (b) in relation to any other payment, in the place where the relevant account
is located and, if different, in the principal financial centre, if any, of the currency of such payment, (c) in
relation to any notice or other communication, including notice contemplated under Section 5(a)(i), in the
city specified in the address for notice provided by the recipient and, in the case of a notice contemplated
by Section 2(b), in the place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to such Specified Transaction.

“Loss” means,
with respect to this Agreement or one or more Terminated Transactions, as the case may be, and
a party, the Termination Currency Equivalent of an amount that party reasonably determines in good faith to be
its total losses and costs (or gain, in which case expressed as a negative number) in connection with this Agreement
or that Terminated Transaction or group of Terminated Transactions, as the case may be, including any loss of
bargain, cost of funding or, at the election of such party but without duplication, loss or cost incurred as a result
of its terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or any gain
resulting from any of them). Loss includes losses and costs (or gains) in respect of any payment or delivery
required to have been made (assuming satisfaction of each applicable condition precedent) on or before the
relevant Early Termination Date and not made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or
6(c)(ii)(2)(A) applies. Loss does not include a party’s legal fees and out-of-pocket expenses referred to under
Section 11. A party will determine its Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A party may (but need not) determine
its Loss by reference to quotations of relevant rates or prices from one or more leading dealers in the relevant
markets.

“Market Quotation”
means, with respect to one or more Terminated Transactions and a party making the
determination, an amount determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party (expressed as a negative number)
or by such party (expressed as a positive number) in consideration of an agreement between such party (taking
into account any existing Credit Support Document with respect to the obligations of such party) and the
quoting Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would
have the effect of preserving for such party the economic equivalent of any payment or delivery (whether
the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable
condition precedent) by the parties under Section 2(a)(i) in respect of such Terminated Transaction or group
of Terminated Transactions that would, but for the occurrence of the relevant Early Termination Date, have

    	15

    	 

    

been required after that date. For
this purpose, Unpaid Amounts in respect of the Terminated Transaction or
group of Terminated Transactions are to be excluded but, without limitation, any payment or delivery that
would, but for the relevant Early Termination Date, have been required (assuming satisfaction of each
applicable condition precedent) after that Early Termination Date is to be included. The Replacement
Transaction would be subject to such documentation as such party and the Reference Market-maker may, in
good faith, agree. The party making the determination (or its agent) will request each Reference
Market-maker to provide its quotation to the extent reasonably practicable as of the same day and time
(without regard to different time zones) on or as soon as reasonably practicable after the relevant Early
Termination Date. The day and time as of which those quotations are to be obtained will be selected in good
faith by the party obliged to make a determination under Section 6(e), and, if each party is so obliged, after
consultation with the other. If more than three quotations are provided, the Market Quotation will be the
arithmetic mean of the quotations, without regard to the quotations having the highest and lowest values. If
exactly three such quotations are provided, the Market Quotation will be the quotation remaining after
disregarding the highest and lowest quotations. For this purpose, if more than one quotation has the same
highest value or lowest value, then one of such quotations shall be disregarded. If fewer than three quotations
are provided, it will be deemed that the Market Quotation in respect of such Terminated Transaction or group
of Terminated Transactions cannot be determined.

“Non-default Rate”
means a rate per annum equal to the cost (without proof or evidence of any actual cost)
to the Non-defaulting Party (as certified by it) if it were to fund the relevant amount.

“Non-defaulting Party”
has the meaning specified in Section 6(a).

“Office”
means a branch or office of a party, which may be such party’s head or home office.

“Potential Event of Default”
means any event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

“Reference Market-makers”
means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing which
satisfy all the criteria that such party applies generally at the time in deciding whether to offer or to make
an extension of credit and (b) to the extent practicable, from among such dealers having an office in the same
city.

“Relevant Jurisdiction”
means, with respect to a party, the jurisdictions (a) in which the party is
incorporated, organised, managed and controlled or considered to have its seat, (b) where an Office through
which the party is acting for purposes of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such payment is made.

“Scheduled Payment Date”
means a date on which a payment or delivery is to be made under Section 2(a)(i)
with respect to a Transaction.

“Set-off”
means set-off, offset, combination of accounts, right of retention or withholding or similar right
or requirement to which the payer of an amount under Section 6 is entitled or subject (whether arising under
this Agreement, another contract, applicable law or otherwise) that is exercised by, or imposed on, such
payer.

“Settlement Amount”
means, with respect to a party and any Early Termination Date, the sum of:—

(a)the Termination Currency Equivalent
of the Market Quotations (whether positive or negative) for each
Terminated Transaction or group of Terminated Transactions for which a Market Quotation is determined;
and

(b)such party’s Loss (whether
positive or negative and without reference to any Unpaid Amounts) for
each Terminated Transaction or group of Terminated Transactions for which a Market Quotation cannot be
determined or would not (in the reasonable belief of the party making the determination) produce a
commercially reasonable result.

“Specified Entity”
has the meaning specified in the Schedule.

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“Specified Indebtedness”
means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.

“Specified Transaction”
means, subject to the Schedule, (a) any transaction (including an agreement with respect
thereto) now existing or hereafter entered into between one party to this Agreement (or any Credit Support
Provider of such party or any applicable Specified Entity of such party) and the other party to this Agreement (or
any Credit Support Provider of such other party or any applicable Specified Entity of such other party) which is
a rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction,
cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any option with respect to any of these
transactions), (b) any combination of these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

“Stamp Tax”
means any stamp, registration, documentation or similar tax.

“Tax” means
any present or future tax, levy, impost, duty, charge, assessment or fee of any nature (including
interest, penalties and additions thereto) that is imposed by any government or other taxing authority in
respect of any payment under this Agreement other than a stamp, registration, documentation or similar tax.

“Tax Event”
has the meaning specified in Section 5(b).

“Tax Event Upon Merger”
has the meaning specified in Section 5(b).

“Terminated Transactions”
means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all Transactions
(in either case) in effect immediately before the effectiveness of the notice designating that Early Termination
Date (or, if “Automatic Early Termination” applies, immediately before that Early Termination Date).

“Termination Currency”
has the meaning specified in the Schedule.

“Termination Currency Equivalent”
means, in respect of any amount denominated in the Termination
Currency, such Termination Currency amount and, in respect of any amount denominated in a currency other
than the Termination Currency (the “Other Currency”), the amount in the Termination Currency determined
by the party making the relevant determination as being required to purchase such amount of such Other
Currency as at the relevant Early Termination Date, or, if the relevant Market Quotation or Loss (as the case
may be), is determined as of a later date, that later date, with the Termination Currency at the rate equal to
the spot exchange rate of the foreign exchange agent (selected as provided below) for the purchase of such
Other Currency with the Termination Currency at or about 11:00 a.m. (in the city in which such foreign
exchange agent is located) on such date as would be customary for the determination of such a rate for the
purchase of such Other Currency for value on the relevant Early Termination Date or that later date. The
foreign exchange agent will, if only one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the parties.

“Termination Event”
means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be
applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate”
means a rate per annum equal to the arithmetic mean of the cost (without proof or
evidence of any actual cost) to each party (as certified by such party) if it were to fund or of funding such
amounts.

“Unpaid Amounts”
owing to any party means, with respect to an Early Termination Date, the aggregate of
(a) in respect of all Terminated Transactions, the amounts that became payable (or that would have become
payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to such Early Termination
Date and which remain unpaid as at such Early Termination Date and (b) in respect of each Terminated
Transaction, for each obligation under Section 2(a)(i) which was (or would have been but for
Section 2(a)(iii)) required to be settled by delivery to such party on or prior to such Early Termination Date
and which has not been so settled as at such Early Termination Date, an amount equal to the fair market

    	17

    	 

    

value of that which was (or would have
been) required to be delivered as of the originally scheduled date
for delivery, in each case together with (to the extent permitted under applicable law) interest, in the currency,
of such amounts, from (and including) the date such amounts or obligations were or would have been required
to have been paid or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such
amounts of interest will be calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above shall be reasonably
determined by the party obliged to make the determination under Section 6(e) or, if each party is so obliged,
it shall be the average of the Termination Currency Equivalents of the fair market values reasonably
determined by both parties.

IN WITNESS WHEREOF the parties have
executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	
         

        ....................
        

(Name of Party)
	 	
         

        ..................
        

(Name of Party)

	 	 	 
	
        By: .......................................................................

        Name:
        

Title:
        

Date:
	 	
        By: .......................................................................

        Name:
        

Title:
        

Date:

	
        By: .......................................................................

        Name:
        

Title:
        

Date:
	 	
        By: .......................................................................

        Name:
        

Title:
        

Date:

 

    	18

    	 

    SCHEDULE

TO THE

MASTER AGREEMENT

 

dated as of ________, 20__

 

between

 

[MERRILL LYNCH]

 

(“Party A”)

 

And

 

PPLUS TRUST SERIES ______

 

(“Party B” or the “Trust”),
a trust created pursuant to the Standard Terms for Trust Agreements,

dated as of _________, 20__ between Party B
and The Bank of New York Mellon (the “Trustee”), as amended and supplemented by the Series ____ Supplement dated as
of ________, 20__ (collectively, the “Trust Agreement”).

 

All references herein to the Transaction shall mean the Transaction
to be evidenced by the Confirmation of even date herewith. Capitalized terms used and not otherwise defined in this Agreement have
the meanings specified in the Trust Agreement.

 

Part 1.Termination Provisions.

 

(a)“Specified Entity” means, in relation
to Party A, for the purpose of: -

Section 5(a)(v), Not Applicable

Section 5(a)(vi), Not Applicable

Section 5(a)(vii), Not Applicable

Section 5(b)(iv), Not Applicable

and in relation to Party B, for the purpose of: -

Section 5(a)(v), Not Applicable

Section 5(a)(vi), Not Applicable

Section 5(a)(vii), Not Applicable

Section 5(b)(iv), Not Applicable

(b)“Specified Transaction” will have the
meaning specified in Section 14

of this Agreement.

(c)Events of Default. Notwithstanding Section 5(a) of
the Agreement, only

the following Events of Default shall apply to the
Transaction:

    	 

    	 

    

(i) Section 5(a)(i) (“Failure to Pay”),
as amended below, which shall apply to both parties.

(ii) Section 5(a)(vii) (“Bankruptcy”), which
shall apply to both parties.

No other Section 5(a) Events of Default shall apply
to either party.

Section 5(a)(i) (“Failure to Pay”) shall
be amended by replacing “third” where it occurs in the third line thereof with “fifth”.

	(d)		Termination Events. Section 5(b) shall be amended as follows:

(i) The “Credit Event Upon Merger” provisions
of Section 5(b)(iv) will not apply to Party A or to Party B.

		(e)	The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A or to Party B.

 

		(f)	Payments on Early Termination. For purposes of Section 6(e) of this Agreement (i) Market Quotation will apply, and (ii)
the Second Method will apply.

	(g)		“Termination Currency” means United States Dollars.

		(h)	“Additional Termination Event” means the occurrence of any of the following events:

			Any “Trust Wind-Up Event” under the Trust Agreement, other than (vii) of Section 10.01(a) of the Standard Terms
for Trust Agreements, shall constitute an Additional Termination Event. Party B shall be the sole Affected Party and all Transactions
shall be Affected Transactions.

			If a Trust Wind-Up Event has occurred and Party A has not designated an Early Termination Date in accordance with Section 6(b)
of the Master Agreement, as applicable, within three Business Days after receiving written notice from Party B, then Party B shall
be entitled to designate an Early Termination Date.

			Any event of default in the “Underlying Securities Indenture” (as defined in the Trust Agreement) other than an
“Underlying Security Default” (as defined in the Trust Agreement). Party B shall be the sole Affected Party and all
Transactions shall be Affected Transactions.

 

    	2

    	 

    

Part 2.Tax Representations.

		(a)	Payer Representation. For the purpose of Section 3(e) of this Agreement, Party A and Party B will each make the following
representation: -

It is not required by any applicable law, as modified
by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding
for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be
made by it to the other party under this Agreement. In making this representation, it may rely on:-

		(i)	the accuracy of any representation made by the other party pursuant to Section 3(f) of this Agreement;

		(ii)	the satisfaction of the agreement of the other party contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy
and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement; and

		(iii)	the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement;

provided that it shall not be a breach of
this representation where reliance is placed on clause (ii) and the other party does not deliver a form or document under Section
4(a)(iii) of this Agreement by reason of material prejudice to its legal or commercial position.

(b)Payee Representations. Party A and Party B
make no Payee Tax Representations.

Part 3.Agreement to Deliver Documents.

 

For the purpose of Section 4(a)(i) and 4(a)(ii) of this Agreement,
Party A and Party B each agree to deliver the following documents to the other as applicable:-

 

		(a)	Tax forms, documents or certificates to be delivered are:
- See Part 5(a) below.

		(b)	Other documents to be delivered are: -

	Party required to deliver document	
        Form/Document/

        Certificate
	Date by which to be delivered	Covered by Section

3(d) Representation
	Party A  and Trust	
        Any form or document reasonably requested by
        the other party to permit payments without (or with minimal) withholding for or account of any Tax as specified in Section 4(a)(iii)
        of this Agreement

         
	As soon as practicable after request.	Yes

    	3

    	 

    

 

	 	
        specified in Section 4(a)(iii) of this Agreement

         
	 	 
	Party A and Trust	
        Certificate of Incumbency and Signing Authority of each person executing
        any document on its behalf in connection with this Agreement

         
	Upon execution of this Agreement.	Yes
	Party A	
        Duly executed copy of the Credit Support Document

         
	At or within 3 days of execution of this Agreement.	No
	Trust	Trust Agreement	Upon execution of this Agreement.	Yes

 

 

Part 4.Miscellaneous.

 

		(a)	Addresses for Notices. For the purpose of Party A:

 

Address:                  _____

Attention:                 _____

Facsimile
No.:          _____

Telephone No.:        _____

(with copy to)

Address:                 [Merrill Lynch & Co., Inc.]

[                                       ]

[                                       ]

New York, NY [                 ]

Attention: [                         ]

Facsimile No.: [                  ]

Telephone No.: [                 ]

Email: [                              ]

    	4

    	 

    

Additionally, a copy of all notices pursuant
of Sections 5, 6 and 7 as well any changes to Party B’s address, telephone number or
facsimile number should be sent to:

[                                       ]

[                                       ]

[                                       ]

Attention: [                         ]

Facsimile No.: [                  ]

[Telephone No.:
[                ]

Facsimile No.: [                  ]

Email: [                              ]

Address for notices or communications
to Party B:

Address:               The Bank of New York Mellon

[101 Barclay Street, 7W]

[New York, NY 10007]

Attention: [                                ]

[Telephone No.: [                       ]

Facsimile No.: [                          ]

Email: [                                      ]

		(b)	Process Agent. For the purpose of Section 13(c) of
this Agreement:

Party A appoints as its Process Agent: Not Applicable

Party B appoints as its Process Agent: Not Applicable.

		(c)	Offices. The provisions of Section 10(a) will apply
to this Agreement.

		(d)	Multibranch Party. For the purpose of Section 10(c)
of this Agreement:-

Party A is not a Multibranch Party.

Party B is not a Multibranch Party.

		(e)	Calculation Agent. The Calculation Agent is Party A, unless otherwise specified in the Confirmation. The failure of
Party A to perform its obligations as Calculation Agent hereunder shall not be construed as an Event of Default or Termination
Event.

		(f)	Credit Support Document.

With respect to Party A: [None] [Guarantee of Merrill
Lynch & Co., Inc. (the “Guarantor”) in the form attached hereto as Exhibit A.]

With respect to Party B: None.

		(g)	Credit Support Provider.

With respect to Party A: [None.] [the Guarantor.]

    	5

    	 

    

With respect to Party B: None.

		(h)	Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York.

		(i)	Netting of Payments. Sub-paragraph (ii) of Section 2(c) of this Agreement will apply to all Transactions hereunder.

		(j)	“Affiliate” will have the meaning specified
in Section 14 of this Agreement.

		Part 5.	Other Provisions.

		(a)	Indemnifiable Tax. If a Tax in respect of payments under this Agreement is required to be paid pursuant to Section 2(d),
neither Party A nor Party B will in any circumstances be required to pay additional amounts in respect of any Indemnifiable Tax
or be under any obligation to pay to the other any amount in respect of any liability of the other party for or on account of such
Tax and accordingly Section 2(d)(i)(4) and Section 2(d)(ii) of this Agreement shall not apply.

		(b)	Additional Representations. Section 3 of the Agreement is hereby amended by adding the following, which shall constitute
additional representations by Party B for all purposes of the Agreement, including, without limitation, Sections 3, 4, 5(a)(ii)
and 5(a)(iv):

			(i) Eligible Contract Participant. Party B is an “eligible contract participant” as such term is defined in Section
1a(18) of the Commodity Exchange Act, as amended (the “CEA”), by virtue of being a trust with total assets exceeding
$10,000,000.

			(ii) No Trading Facility. Neither this Agreement nor any Transaction has been executed or traded on a “trading facility,”
as such term is defined in the CEA.

			(iii) Transactions are Arm’s Length. Party B is entering into this Agreement and each Transaction in reliance upon its
own judgment and upon any tax, accounting, regulatory and financial advice as it has deemed necessary and not upon any view expressed
by the other party, and all trading decisions are and will be the result of arm’s length negotiations between the parties.

			(iv) Risks are Fully Understood. Party B is entering into this Agreement and each Transaction with full understanding of all
materials risks thereof, and it is capable (including having the financial wherewithal) of assuming and willing to assume those
risks and it has relied upon such tax, accounting, regulatory, legal and financial advice as it deems necessary and not upon any
view expressed by the other party.

			[(v) Party B is exercising independent judgment in evaluating any recommendations of Party A with regard to each relevant swap
or trading strategy involving a swap hereunder.

    	6

    	 

    

			(vi) Party B acknowledges receipt from Party A of the material information and clearing disclosures required by 17 C.F.R. Sections
431 and 432.]

		(c)	Change of Account. Section 2(b) of this Agreement is hereby amended by the addition of the following after the word
“delivery” in the first line thereof:

“to another account in the same legal and tax
jurisdiction as the original account”

		(d)	Consent to Telephonic Recording. Each party hereto consents to the monitoring or recording, at any time and from time
to time, by the other party of any and all communications between officers or employees of the parties, waives any further notice
of such monitoring or recording, agrees to notify its officers and employees of any such monitoring or recording, and agrees that
any such tape recordings may be submitted in evidence in any Proceedings relating to this Agreement and any Transaction hereunder.

		(e)	Replacement Swap Counterparty. “Replacement Swap Counterparty” means a counterparty (A)(i) as to which Party
A has agreed to transfer all of its rights and obligations under the Swap Agreement (including with respect to acting as Calculation
Agent hereunder) and (ii) that has agreed to assume all such rights and obligations (including with respect to acting as Calculation
Agent hereunder), and (B) at the time such Replacement Swap Counterparty is selected by Party A in accordance with the terms hereof,
either the Replacement Swap Counterparty or its guarantor must have an S&P rating no lower than the higher of the S&P rating
of the Party A or its guarantor under this Agreement at that time. In addition, any Replacement Swap Counterparty must be a person
who regularly offers to enter into, assume, offset, assign, or otherwise terminate positions in interest rate swaps with customers
in the ordinary course of a trade or business.

		(f)	Transfer/Assignment. Party A agrees that it will transfer its rights and obligations with respect to Transactions under
this Agreement only to a Replacement Swap Counterparty and will provide notice of any such transfer to Standard & Poor's Ratings
Services, a division of the McGraw Hill Companies (“S&P”), or any successor to the rating business thereto, within
five Business Days of such transfer. Any cost related to a transfer by Party A will be borne by Party A.

			Notwithstanding Section 7 of the ISDA Master Agreement, at any time, Party A may transfer all its rights and obligations (at
Party A’s expense) under all transactions under the Swap Agreement to any wholly-owned subsidiary of Merrill Lynch, provided
that such transfer will not cause the Swap Counterparty to become a Disqualified Swap Counterparty and such transfer is to a Replacement
Swap Counterparty.

		(g)	Depositor Optional Exchange. If the Depositor has exercised its right of Depositor Optional
Exchange (as defined in the Trust Agreement) in part, Party A consents to assign to the Depositor a portion of the Swap Agreement
proportionate to the portion of the Units being exchanged or, in lieu of such assignment, at the option of the Depositor, to agree
to a partial termination of the related Transaction. The parties agree that any such assignment or termination shall not constitute
an “amendment, modification,

    	7

    	 

    

waiver, or other change of the
Swap Agreement” for purposes of Section 5.23(a) of the Trust Agreement.

		(h)	Calculation of Significance Percentage. On or about the date that is 45 days prior to each
Distribution Date (as defined in the Trust Agreement), Party A will calculate its “significance percentage” as determined
in accordance with Item 1115 of Regulation AB under the Securities Act of 1933. Party A will promptly notify Party B (a “Reporting
Threshold Notice”) if the significance percentage of Party A is, or is reasonably expected to become, equal to or greater
than 10% and Party A would fall within the definition of Disqualified Swap Counterparty (as defined in the Trust Agreement). If
following such Reporting Threshold Notice, Party A would continue to fall within the definition of Disqualified Swap Counterparty,
Party A shall transfer, at its cost, all of its rights and obligations under all Transactions under this Agreement to a Replacement
Swap Counterparty (which may be an affiliate of Party A) that would not be a Disqualified Swap Counterparty, such transfer to be
effected prior to the next Distribution Date.

		(i)	Method of Notice. Section 12(a)(ii) of the Master
Agreement is deleted in its entirety.

		(i)	Trustee Liability. It is expressly understood and agreed by the parties hereto that (a) this Agreement is executed and
delivered by The Bank of New York Mellon as Trustee not individually or personally but solely as trustee of the Trust, in the exercise
of the powers and authority conferred and vested in the Trustee, (b) each representation, undertaking and agreement made herein
by the Trustee is made and intended not as a personal representation, undertaking and agreement on the part of the Trustee but
is made and intended for the purpose of binding only the Trust, (c) nothing herein contained herein shall be construed as creating
any liability on the Trustee, individually or personally, to perform any covenant either expressed or implied contained herein,
all such liability, if any, being expressly waived by Party A, and (d) under no circumstances shall the Trustee be personally liable
for the payment of any indebtedness or expenses of the Trust or be liable for the breach failure of any obligation, representation,
warranty or covenant made or undertaken by the Trust under this Agreement; provided, however, that clauses (c) and (d) above shall
in no way exculpate or otherwise relieve the Trustee from any liability resulting from the Trustee’s failure to perform the
Trustee’s duties as trustee under the Trust Agreement. This provision shall survive the termination of this Agreement.

		(j)	Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
of the Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. The parties hereto shall
endeavor in good faith negotiations to replace the prohibited or unenforceable provision with a valid provision, the economic effect
of which comes as close as possible to that of the prohibited or unenforceable provision.

		(k)	Waiver of Jury Trial. Each party hereby irrevocably waives any and all right to trial by jury with respect to any legal
proceeding arising out of or relating to this Agreement or any Transaction contemplated hereunder.

    	8

    	 

    

		(l)	Limited Recourse. Party A agrees that the obligations of Party B hereunder to make payments to Party A shall be satisfied
solely out of the Trust Property.

		(m)	No Petition for Bankruptcy. Party A shall not, prior to one year and one day after the Trust has paid in full to the
Holders all amounts due in respect of the Trust Certificates, (i) commence or sustain an action against the Trust or cause or join
in any action against the Trust under any federal or state bankruptcy, insolvency or similar law, or (ii) appoint a receiver or
other similar official of the Trust, or (iii) make an assignment for the benefit of creditors, or (iv) order the winding up or
liquidation of the Trust; provided that the foregoing shall not prevent Party A from filing any proof of claim or taking any similar
action if any other parties initiate any of the foregoing actions.

		(n)	Set-Off. Set-Off shall not apply to any Transaction
under this Agreement.

		(o)	Amendments. Each of the parties agrees that it will not amend this Agreement unless Holders holding 100% of the Trust
Certificates consent to such amendment and each Rating Agency, if any, has been notified of such amendment.

		(p)	Jurisdiction. Section 13(b) of the Agreement is amended to read in its entirety as follows:

“Jurisdiction. With respect to any suit, action or
proceedings relating to any dispute arising out of or in connection with this Agreement (“Proceedings”), each party
irrevocably submits to the jurisdiction of the courts of the United States District Court located in the Borough of Manhattan in
New York City, which submission shall be exclusive unless none of such courts has lawful jurisdiction over such Proceedings.”

    	9

    	 

    

IN WITNESS WHEREOF, the parties
have executed this Schedule by their duly authorized officers as of the date hereof.

[MERRILL LYNCH]

By: ____________________________

Name:

Title:Authorized Signatory

Date:

PPLUS TRUST SERIES ______

By: The Bank of New York Mellon,
as Trustee

By: ____________________________

Name:

Title:

Date:

 

    	 

    	 

    

SCHEDULE III

CALL TERMS

 

	Term	Definition
	“Call Agent”: 	The [Warrant Agent] as defined in the Call Agreement. 
	“Call Agreement”: 	The [Warrant Agreement, dated as of [      ], by and between the Trust and the Warrant Agent (as defined in the Warrant Agreement)].
	“Call Date”: 	
        Any Business Day that a Call Holder
        designates as a Call Date

        (i)on or after [             ];

        (ii)at any time after the announcement
        of any redemption or any other unscheduled payment of the Underlying Securities; provided that if a Call Right is to be
        exercised after the announcement of any redemption or any other unscheduled payment of the Underlying Securities and prior to such
        redemption or any other unscheduled payment, then the Call Date designated by the Call Holder must be the second Business Day prior
        to such redemption of the Underlying Securities or unscheduled payment;

        (iii)at any time after receipt by
        the Call Holder of notice of the termination of the Trust;

        (iv)[at any time during the ten days
        following receipt by the Call Holder of notice from the Trustee that a Failure to File Event has occurred;]

        (v)at any time during the 27 days
        following the date upon which there has occurred a Payment Default;

        (vi)at any time in the case of a
        tender offer for the Underlying Securities, a Call Holder is deemed to designate as a Call Date pursuant to the Call Agreement;
        or

    	 

    	 

    

 

	 	(vii)  at any time upon an acceleration of the maturity of the Underlying Securities and payment in full or in part by the Underlying Securities Issuer [or [each of] the Underlying Securities Guarantor[s]] of all amounts when due, including at any time deemed a Call Date in connection with an automatic exercise of Call Rights.
	“Call Holder”: 	The holder of a [Class A] Call Right [or a Class B Right], [initially [               ]].
	“Call Price”: 	With respect to any [(a)] [Class A]  Certificate being called, the stated amount of such Certificate plus any accrued and unpaid interest on such Certificate to the Call Date and [(b) any Class B Certificates, the Class B Present Value Amount plus any accrued and unpaid interest on such Certificate to the Call Date.  Any payments of interest on the Call Date by the Trust to the applicable Certificateholder will be excluded.
	
        [“Call Right”:

         
	The Class A Call Right and the Class B Call Right.]
	[“Class A] Call Right”: 	The right, but not the obligation, pursuant to the Call Agreement and any related [Warrant Certificates] (as defined in the Call Agreement)] of one or more Call Holders to purchase from the [Class A] Certificateholders on a Call Date some or all, of the [Class A] Certificates for the Call Price.
	[“Class B Call Right”: 	The right, but not the obligation, pursuant to the Call Agreement and any related [Warrant Certificates] (as defined in the Call Agreement)] of one or more Call Holders to purchase from the Class B Certificateholders on a Call Date some or all of the Class B Certificates for the Call Price.]
	“Authorized Denominations”:	Certificate Principal Balance or Notional Amount of each Certificate being purchased pursuant to the Call Right [is] [is not] required to be an Authorized Denomination.

    	 

    	 

    

 

	
        “Call Notice Period:

         
	
        Not less than

        (x)[15] days in the case of the exercise of a Call Right
        pursuant to [Section 2.01(a)(i)] of the Call Agreement,

        (y)[three] Business Days in the case of the exercise
        of a Call Right [pursuant to clause (ii), (iii), (iv) or (v) of Section 2.01(a)] of the Call Agreement, or

        (z)[five] Business Days prior to the expiration of a
        tender offer for the Underlying Securities in the case of the exercise of a Call Right pursuant to [Section 2.01(b)] of the
        Call Agreement,

        but in each case not more than [60] days, prior to such Call
        Date

 

    	 

    	 

    

EXHIBIT A

Forms of Certificate

(begins on next page)

    	 

 	 

    

FORM OF TRUST CERTIFICATE

	No. [A]/[B]-[      ]	$[      ]	CUSIP NO. [      ]

SEE REVERSE FOR CERTAIN DEFINITIONS

UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR THE INDIVIDUAL CERTIFICATES REPRESENTED HEREBY, THIS CERTIFICATE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY DTC TO CEDE & CO. OR BY CEDE & CO. TO DTC OR TO ANOTHER NOMINEE OF DTC OR BY DTC OR CEDE & CO. TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

THIS CERTIFICATE REPRESENTS A FRACTIONAL
UNDIVIDED INTEREST IN THE TRUST AND DOES NOT EVIDENCE AN OBLIGATION OF, OR AN INTEREST IN, AND IS NOT GUARANTEED BY THE DEPOSITOR
OR THE TRUSTEE OR ANY OF THEIR RESPECTIVE AFFILIATES. NEITHER THIS CERTIFICATE NOR THE DEPOSITED ASSETS ARE INSURED OR GUARANTEED
BY ANY GOVERNMENTAL AGENCY OR ANY OTHER PERSON.

THE HOLDER OF THIS CERTIFICATE SHALL
HAVE NO DIRECT RIGHT TO [PRINCIPAL OR] INTEREST PAYMENTS IN RESPECT OF THE UNDERLYING SECURITIES. THE REGISTERED HOLDER HEREOF,
BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL LOOK SOLELY TO THE ASSETS DEPOSITED IN THE TRUST, TO THE EXTENT OF ITS RIGHTS THEREIN,
FOR DISTRIBUTIONS HEREUNDER.

 

    	 

    	 

    

TRUST SERIES [      ]

[      ] CLASS [A]/[B] [      ]% TRUST [CALLABLE] CERTIFICATES SERIES [      ]

$[      ] STATED AMOUNT TRUST CERTIFICATES

($[      ] STATED AMOUNT PER TRUST CERTIFICATE)

evidencing a fractional undivided beneficial ownership
interest in the Trust, as defined below, the property of which consists principally of $[      ] aggregate principal amount of [      ] (the
“Underlying Securities”) due [      ] issued by [      ], a [Delaware corporation] and all payments received thereon, deposited
in trust by Merrill Lynch Depositor, Inc. (the “Depositor”).

THIS CERTIFIES THAT CEDE &
CO. is the registered owner of a nonassessable, fully-paid, fractional undivided interest in the Trust Series [      ] formed by the
Depositor. Under the Trust Agreement, the Class [A]/[B] Certificateholders are entitled to receive on each Distribution Date until
[      ], the distributions, if any, received on the Underlying Securities [in accordance with the Allocation Ratio], which will represent
distributions at a rate of [      ]% per annum on the Stated Amount of the Certificates.

The Trust was created pursuant
to a Standard Terms for Trust Agreements, dated as of [      ] (the “Standard Terms”), among the Depositor, The Bank of
New York Mellon, a New York corporation, as Trustee (the “Trustee”) and The Bank of New York Mellon, as securities
intermediary (the “Securities Intermediary”), as supplemented by the Trust Series [      ] Supplement, dated as of [      ] (the
“Series Supplement” and, together with the Standard Terms, the “Trust Agreement”), between the Depositor
and the Trustee and the Securities Intermediary. This Certificate does not purport to summarize the Trust Agreement and reference
is hereby made to the Trust Agreement for information with respect to the interests, rights, benefits, obligations, proceeds and
duties evidenced hereby and the rights, duties and obligations of the Trustee with respect hereto. A copy of the Trust Agreement
may, be obtained from the Trustee by written request sent to the Corporate Trust Office. Capitalized terms used but
not defined herein have the meanings assigned to them in the Trust Agreement.

This Certificate is one of the
duly authorized Certificates designated as the Class [A]/[B] [      ]% [Callable] Trust Certificates Series [      ] (herein called the “Certificates”).
This Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, to which Trust
Agreement the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound. [Further,
subject to the terms, provisions and conditions of the Trust Agreement, the Trust will issue Call Rights, which will be sold in
one or more privately negotiated transactions. The rights of the Certificateholders under the Trust Agreement and this Certificate
are limited by the terms, provisions and conditions of the Trust Agreement and the Warrant Agreement with respect to the exercise
of Call Rights by the holders of Call Rights. The Certificateholders, by their acceptance of the Certificates, covenant and agree
to tender any and all Certificates to the Warrant Agent upon the holder’s exercise of Call Rights and deposit of the Call
Price with the Escrow Agent for such Certificates in accordance with the applicable procedures in the Warrant Agreement.] The property
of the Trust consists of the Underlying Securities, all payments received or receivable on the Underlying Securities accrued on
or after the [Cut-off]/[Closing] Date, and the other Deposited Assets, if any, all as more fully specified in the Trust Agreement.

    	 

    	 

    
Subject to the terms and conditions
of the Trust Agreement (including the availability of funds for distributions) and until the obligation created by the Trust
Agreement shall have terminated in accordance therewith, distributions will be made on each Distribution Date to the Person in
whose name this Certificate is registered on the applicable Record Date, in an amount equal to such Certificateholder’s fractional
undivided interest in the amount required to be distributed to the Holders of the Certificates on such Distribution Date. The Record
Date applicable to any Distribution Date is the close of business on the day immediately preceding such Distribution Date.

Each Certificateholder, by
its acceptance of a Certificate, covenants and agrees that such Certificateholder will not at any time institute against the Trust,
or join in any institution against the Trust of, any bankruptcy proceedings under any United States federal or state bankruptcy
or similar law in connection with any obligations relating to the Certificates or the Trust Agreement.

Distributions made on this Certificate
will be made as provided in the Trust Agreement by the Trustee by check mailed to the Certificateholder of record in the Certificate
Register or by wire transfer to an account designated by such Holder without the presentation or surrender of this Certificate
or the making of any notation hereon of, except that with respect to Certificates registered on the Record Date in the name of
the nominee of the Clearing Agency (initially, such nominee shall be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Except as otherwise provided in the Trust Agreement and
notwithstanding the above, the final distribution on this Certificate will be made after due notice by the Trustee of the pendency
of such distribution and only upon presentation and surrender of this Certificate at the Corporate Trust Office or such other location
as may be specified in such notice.

Reference is hereby made to the further
provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect
as if set forth at this place.

The Trustee does not assume
responsibility for the accuracy of the statements in the Certificate (and the reverse hereof).

Unless the certificate of authentication
hereon has been executed by or on behalf of the Trustee, this Certificate shall not entitle the Holder hereof to any benefit under
the Trust Agreement or be valid for any purpose.

THIS CERTIFICATE SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

    	 

    	 

    

IN WITNESS WHEREOF, the
Trustee has caused this Class [A]/[B] Certificate to be duly executed as of the date set forth below.

	 	 TRUST SERIES [      ]
	 	 
	 	 By:	THE BANK OF NEW YORK MELLON,
	 	 	solely in its capacity as Trustee under
	 	 	the Trust Agreement and not in its
	 	 	individual capacity
	 	 	 
	 	 	 
	 Dated: [      ]	 By:	 
	 	 	 Authorized Signatory

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

This is one of the Class [A]/[B]
Certificates described in the Trust Agreement referred to herein.

	 	 TRUST SERIES [      ]
	 	 
	 	 By:	THE BANK OF NEW YORK MELLON,
	 	 	solely in its capacity as Trustee under
	 	 	the Trust Agreement and not in its
	 	 	individual capacity
	 	 	 
	 	 	 
	 Dated: [      ]	 By:	 
	 	 	 Authorized Signatory

 

     

     

    

(REVERSE OF CERTIFICATE)

The Certificates are limited
in right of distribution to certain payments and collections respecting the Underlying Securities [and the Allocation Ratio], all
as more specifically set forth herein and in the Trust Agreement. The registered Holder hereof, by its acceptance hereof, agrees
that it will look solely to the Deposited Assets (to the extent of its rights therein) for interest distributions hereunder. [[Both
the]/[The] Underlying Securities [and Call Holders that exercise their Call Rights] may be [a source]/[sources] of principal distributions
on the Certificates.] The rights of the Certificateholders under the Trust Agreement and this Certificate are limited by the terms,
provisions and conditions of the Trust Agreement [and the Warrant Agreement with respect to the exercise of Call Rights by the
holders of Call Rights. The Certificateholders, by their acceptance of the Certificates, covenant and agree to tender any and all
Certificates to the Warrant Agent upon the holder’s exercise of Call Rights and deposit of the Call Price with the Escrow
Agent for such Certificates in accordance with the applicable procedures in the Warrant Agreement].

The Trust Agreement permits, with certain
exceptions therein provided, the amendment thereof and the modification of the rights and obligations of the Depositor and the
Trustee and the rights of the Certificateholders under the Trust Agreement at any time by the Depositor and the Trustee with the
consent of the Holders of Certificates evidencing greater than 66 2/3% of the aggregate Voting Rights of the Certificates subject
to certain provisions set forth in the Trust Agreement. Any such consent by the Holder of this Certificate (or any predecessor
Certificate) shall be conclusive and binding on such Holder and upon all future Holders of this Certificate and of any Certificate
issued upon the transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this
Certificate. The Trust Agreement also permits the amendment thereof, in certain limited circumstances, without the consent of the
Holders of any of the Certificates.

As provided in the Trust Agreement and
subject to certain limitations therein set forth, the transfer of this Certificate is registrable in the Certificate Register upon
surrender of this Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained by
the Trustee in the Borough of Manhattan, The City of New York, duly endorsed by, or accompanied by an assignment in the form below
and by such other documents as required by the Trust Agreement signed by, the Holder hereof, and thereupon one or more new Certificates
of the same class in Authorized Denominations evidencing the same [principal]/[notional] amount will be issued to the designated
transferee or transferees. The initial Certificate Registrar appointed under the Trust Agreement is The Bank of New York Mellon.

No service charge will be made
for any registration of transfer or exchange, but the Trustee may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Certificates.

The Depositor, the Trustee and
the Securities Intermediary and any agent of the Depositor, the Trustee or the Securities Intermediary may treat the Person in
whose name this Certificate is registered as the owner hereof for all purposes, and neither the Depositor, the Trustee, or the
Securities Intermediary nor any such agent shall be affected by any notice to the contrary.

    	 

    	 

    

It is the intention of the parties to the
Trust Agreement that the Trust created thereunder shall constitute a fixed investment trust for United States federal income tax
purposes under Treasury Regulation Section 301.7701-4, and the Certificateholder, by its acceptance of this Certificate, agrees
to treat the certificates, the distributions from the Trust and its beneficial interest in the Trust consistently with such characterization.

The Trust may not engage in any business or
activities other than in connection with, or relating to, the holding protecting and preserving the Deposited Assets and the issuance
of the Certificates [and the Call Rights], and other than those required or authorized by the Trust Agreement or incidental and
necessary to accomplish such activities. The Trust may not issue or sell any certificates or other obligations other than the Certificates
[and the Call Right] or otherwise incur, assume or guarantee any indebtedness for money borrowed.

The Trust and the obligations of the Depositor,
the Trustee and the Securities Intermediary created by the Trust Agreement with respect to the Certificates shall terminate upon
the earlier of (i) the payment in full at maturity or sale by the Trust after Trust Wind-Up Event and the distribution in full
of all amounts due in respect to the Certificates and (ii) [      ].

If an employee benefit plan subject to the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), including an individual retirement account or
Keogh plan (each, a “Plan”), purchases Certificates, certain aspects of such investment, including the operation of
the Trust, might be subject to the prohibited transaction provisions under ERISA and the Internal Revenue Code of 1986, as amended
(the “CODE”), unless certain exemptions apply. A Plan should consult its advisors concerning the ability of such Plan
to purchase Certificates under ERISA or the Code.

 

    	 

    	 

    

ASSIGNMENT

FOR VALUE RECEIVED the undersigned
hereby sells, assigns and transfers unto

(PLEASE INSERT SOCIAL SECURITY
OR TAXPAYER IDENTIFICATION OR OTHER IDENTIFYING NUMBER OF ASSIGNEE)

 

(PLEASE
PRINT OR TYPE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE, OF ASSIGNEE)

the within Certificate, and all rights thereunder, hereby
irrevocably constituting and appointing_________________ Attorney to transfer said Certificate on the books of the
Certificate Registrar, with full power of substitution in the premises.

Dated:

Signature : _______________________________________*

Signature Guarantee: _______________________________________*

* NOTICE: The signature to this assignment must correspond with
the name as it appears upon the face of the within Certificate in every particular, without alteration, enlargement or any change
whatever. Such signature must be guaranteed by a brokerage firm or financial institution that is a member of a Securities Approved
Medallion Program such as Securities Transfer Agents Medallion Program (STAMP), Stock Exchange Medallion Program (SEMP) or New
York Stock Exchange Inc. Medallion Signature Program (MSP).

    	 

    	 

    

OPTION TO ELECT EXCHANGE

If you wish to have this Certificate, or
a portion thereof, exchanged by the Trustee pursuant to Section 4.07 of the Standard Terms, check the Box:

If you wish to have less than all of this Certificate
exchanged, state the amount:

Date:

	 Your Signature:  	 (Sign exactly as your name appears on the other side of this Certificate)
	 	 
	 Signature Guarantee:  	 
	 	 

  

    	

 	 

    

EXHIBIT B

Market Agent Agreement

(begins on next page)

 

    	

 	 

    

FORM OF MARKET AGENT AGREEMENT

 

MARKET AGENT AGREEMENT, dated as
of [      ] (the “Agreement”), by and between Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch,
Pierce, Fenner & Smith Incorporated”) and the Trust Series [      ] (the “Trust”), a New York trust created under
the Standard Terms for Trust Agreements, dated as of [●], 2012 (the “Standard Terms”), between Merrill Lynch
Depositor, Inc., as depositor (the “Depositor”) and The Bank of New York Mellon, as trustee (the “Trustee”)
and as securities intermediary (the “Securities Intermediary”), as amended and supplemented by the Series Supplement,
dated as of the date hereof, between the Depositor and the Trustee and Securities Intermediary (the Standard Terms, together with
the Series Supplement, the “Trust Agreement”). Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Trust Agreement. This Agreement shall constitute the “Market Agent Agreement” as defined in
the Trust Agreement.

W I T N E S S E T H:

WHEREAS, the Trust desires to retain
Merrill Lynch, Pierce, Fenner & Smith Incorporated to render certain services to the Trust in the manner and on the terms hereinafter
set forth;

WHEREAS, Merrill Lynch, Pierce, Fenner
& Smith Incorporated is a recognized broker dealer meeting the qualifications for a Market Agent set forth in the Trust Agreement
and desires to provide such services to the Trust on the terms and conditions hereinafter set forth; and

WHEREAS, the Trustee has been directed
to enter into and execute this Market Agent Agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated as the initial
Market Agent pursuant to Section 8.01 of the Standard Terms;

NOW, THEREFORE, in consideration of the
premises and the covenants hereinafter contained, Merrill Lynch, Pierce, Fenner & Smith Incorporated and the Trust hereby agree
as follows:

Section 1. Duties of the Market Agent.
The Trust hereby employs Merrill Lynch, Pierce, Fenner & Smith Incorporated to act as the Market Agent for the Trust and to
furnish to the Trust all of the services of the Market Agent set forth herein and in the Trust Agreement, including but not limited
to acting on behalf of the Trust in connection with the sale and purchase of Underlying Securities as provided in the Trust Agreement.
The Market Agent may solicit and accept bids from Certificateholders for the Underlying Securities. Merrill Lynch, Pierce, Fenner
& Smith Incorporated hereby accepts such employment and agrees during the term of the Certificates to render such services
and to assume the obligations of the Market Agent under the Trust Agreement under the terms and conditions herein set forth.

Section 2. Compensation of Merrill Lynch,
Pierce, Fenner & Smith Incorporated. The Depositor shall pay Merrill Lynch, Pierce, Fenner & Smith Incorporated a fee
as shall be separately agreed between the Depositor and Merrill Lynch, Pierce, Fenner & Smith Incorporated. It shall be the
sole responsibility of the Depositor to pay such fee and the Trust 

    	 

    	 

    
shall have no obligation to compensate Merrill Lynch, Pierce,
Fenner & Smith Incorporated for the services it renders pursuant to the terms of this Market Agent Agreement, except that the
Trust shall pay Merrill Lynch, Pierce, Fenner & Smith Incorporated a fee for any sale of the Underlying Securities in an amount
that is customary for such a sale at the time of such sale.

Section 3. Limitation of Liability of
the Market Agent. The Market Agent shall not be liable in contract, tort or otherwise to the Trust for any losses, costs or
damages arising out of its performance of its obligations and duties hereunder except for willful misconduct or negligence in the
performance of its duties, or by reason of reckless disregard of its obligations and duties hereunder.

Section 4. Term of this Agreement.
This Agreement, which shall be a binding agreement as of the date hereof and shall inure to the benefit of the respective successors
and permitted assigns of the parties hereto, shall terminate upon the earlier to occur of (a) the termination of the Trust Agreement,
(b) the removal of the Market Agent by the Trustee in accordance with the Trust Agreement or (c) 30 days after written notice of
Merrill Lynch, Pierce, Fenner & Smith Incorporated’s resignation as Market Agent is delivered to the Trustee.

Section 5. Amendments. No amendment
or waiver of any provision of this Agreement nor consent to any departure herefrom by any party hereto shall in any event be effective
unless the same shall be in writing and signed by the party against which enforcement of such amendment or waiver or consent is
sought, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which
it is given.

Section 6. Notice Addresses. Except
as otherwise expressly provided herein, all notices and other communications provided for hereunder shall be deemed to have been
duly given if sent by facsimile transmission (a) if to the Market Agent, as set forth below and (b) if to the Trustee, as set forth
in the Trust Agreement;

If to Merrill Lynch, Pierce, Fenner & Smith
Incorporated:

 

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

One Bryant Park

New York, NY 10036

Attention: [●]

Facsimile: [●]

Telephone confirmation: [●]

 

Section 7. Assignment. Except as
provided in this Section 7, this Agreement may not be assigned by the Market Agent without the prior consent of the Trustee in
accordance with the Trust Agreement.

The Market Agent shall have the right to
transfer and assign all of its rights, duties, obligations and liabilities under this Agreement to an Affiliate of the Market Agent;
provided, however, that such transfer and assignment shall be on the condition that the due and punctual performance
and observance of all the terms and conditions of this Agreement to be performed by the Market Agent shall, by an agreement supplemental
hereto, be assumed by such 

    	2

    	 

    
Affiliate just as fully and effectually as if such Affiliate had been the original party of the first
part to this Agreement.

Section 8. Applicable Law. This
Agreement shall be governed by the laws of the State of New York.

Section 9. Entire Agreement. This
Agreement embodies the entire agreement and understanding between Merrill Lynch, Pierce, Fenner & Smith Incorporated and the
Trust and supersedes any and all prior agreements and understandings between Merrill Lynch, Pierce, Fenner & Smith Incorporated
and the Trust relating to the subject matter hereof.

Section 10. Counterparts. This Agreement
may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.

Section 11. Severability of Provisions.
If one or more of the provisions of this Agreement shall be for any reason whatsoever held invalid or unenforceable, such provisions
shall be deemed severable from the remaining covenants, agreements and provisions of this Agreement and such invalidity or unenforceability
shall in no way affect the validity or enforceability of such remaining provisions or the rights of any parties thereunder. To
the extent permitted by law, the parties hereto hereby waive any provision of law that renders any provision of this Agreement
invalid or unenforceable in any respect.

Section 12. Nonpetition Covenant.
Notwithstanding any prior termination of this Agreement, Merrill Lynch, Pierce, Fenner & Smith Incorporated agrees that it
shall not, until the date which is one year (or, if longer, the applicable preference period then in effect) plus one day after
the termination of the Trust Series [      ] pursuant to the terms of Section 12 of the Series Supplement, acquiesce, petition or otherwise
invoke or cause the Trust to invoke the process of the United States, any State or other political subdivision thereof or any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government for the purpose
of commencing or sustaining a case by or against the Trust under a Federal or state bankruptcy, insolvency or similar law or appointing
a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Trust or all or any part of
the property or assets of the Trust or ordering the winding up or liquidation of the affairs of the Trust.

Section 13. No Recourse. Merrill
Lynch, Pierce, Fenner & Smith Incorporated shall have no recourse to the Underlying Securities with respect to any fees owed
to Merrill Lynch, Pierce, Fenner & Smith Incorporated under Section 2 of this agreement. This Section 13 shall not be read
as limiting any right Merrill Lynch, Pierce, Fenner & Smith Incorporated may have to the Underlying Securities pursuant to
any security, call right or other instrument, obligation or agreement the Trust may issue or enter into from time to time.

Section 14. Trustee Liability. It is
expressly understood and agreed by the parties hereto that (a) this Agreement is executed and delivered by The Bank of New York
Mellon as Trustee not individually or personally but solely as trustee of the Trust, in the exercise of the 

    	3

    	 

    
powers and authority
conferred and vested in the Trustee, (b) each representation, undertaking and agreement made herein by the Trustee is made and
intended not as a personal representation, undertaking and agreement on the part of the Trustee but is made and intended for the
purpose of binding only the Trust, (c) nothing contained herein shall be construed as creating any liability on the Trustee, individually
or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly
waived by the Market Agent, and (d) under no circumstances shall the Trustee be personally liable for the payment of any indebtedness
or expenses of the Trust or be liable for the breach failure of any obligation, representation, warranty or covenant made or undertaken
by the Trust under this Agreement; provided, however, that clauses (c) and (d) above shall in no way exculpate or
otherwise relieve the Trustee from any liability resulting from the Trustee’s failure to perform the Trustee’s duties
as trustee under the Trust Agreement. This provision shall survive the termination of this Agreement.

 

Section 15. Waiver of Jury Trial. Each
party hereby irrevocably waives any and all right to trial by jury with respect to any legal proceeding arising out of or relating
to this Agreement or any transaction contemplated hereunder.

 

 

 

 

    	4

    	 

    

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

 

 

 

	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title: Authorized Signatory
	 	 	 
	 	 	 
	 	TRUST SERIES [       ]
	 	 	 
	 	By:	THE BANK OF NEW YORK MELLON, solely in its capacity as Trustee under the Trust Agreement and not in its individual capacity
	 	 	 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title: Authorized Signatory

 

 

 

    	[MARKET AGREEMENT SIGNATURE PAGE]

    	 

    

EXHIBIT C

Form of Escrow Agreement

(begins on next page)

 

 

 

    	 

    	 

    
 

 

 

 

 

 

ESCROW AGREEMENT

 

between

 

 

[ ]

 

and

 

[THE BANK OF NEW YORK MELLON]

 

 

 

Dated as of [ ]

  

 

 

ACCOUNT NUMBER(S)
[ ]

 

 

SHORT TITLE OF ACCOUNT: [ ] WARRANT ESCROW ACCOUNT

 

 

 

Form of Escrow Deposit Agreement

    	 

    	 

    
 

ESCROW AGREEMENT made this [ ] day of [ ] by and between
[THE BANK OF NEW YORK MELLON] ("Escrow Agent") and [ ] a _____________ corporation (the "Call Holder").

 

Call Holder and Escrow Agent hereby agree that, in consideration
of the mutual promises and covenants contained herein, Escrow Agent shall hold in escrow and shall distribute Escrow Property (as
defined herein) in accordance with and subject to the following Instructions and Terms and Conditions:

 

 

I.
INSTRUCTIONS:

 

		1.	Escrow Property

The
property and/or funds in the amount of $[ ] deposited or to be deposited with Escrow Agent by Call Holder shall be as follows:

The
foregoing property and/or funds, plus all interest, dividends and other distributions and payments thereon (collectively the "Distributions")
received by Escrow Agent, less any property and/or funds distributed or paid in accordance with this Escrow Agreement, are collectively
referred to herein as "Escrow Property."

 

		2.	Investment of Escrow Property.

 

Upon
written directions from the Call Holder the Escrow Agent shall invest or reinvest Escrow Property without distinction between
principal and income, in the following:

 

One
or more short-term market instruments including but not limited to marketable obligations issued or guaranteed by the U.S. Government,
its agencies or instrumentalities, bank instruments, corporate debt securities issued by U.S. or foreign companies, commercial
paper, demand instruments, adjustable rate obligations, asset-backed securities, restricted securities, fully collateralized repurchase
agreements or money market funds subject to the requirements of the Investment Company Act of 1940, as amended, invested in any
one or more of the aforementioned types of instruments.

 

Escrow
Agent shall have no liability for any loss arising from or related to any such investment other than in accordance with paragraph
4 of the Terms and Conditions.

 

		3.	Distribution of Escrow Property

 

Escrow
Agent is directed to hold and distribute the Escrow Property until the termination of the Escrow Agreement as described in Section
5(a) below.

 

		4.	Addresses

Notices,
instructions and other communications shall be sent to Call Holder

 

Form of Escrow Deposit Agreement

    	 

    	 

    

		(a)	If to the Holder at:

[        ]

Telecopy: [ ]

Telephone: [ ]

 

		(b)	If to the Trust, at:

 

Trust Series [ ]

[c/o The Bank of New York Mellon

101 Barclay Street, 7W

New York, NY 10286

Attn: Corporate Trust Department -
Trust Series [ ]]

Telecopy: [(212) 815-2896]

Telephone: [(212) 815-2830]

 

		(c)	If to the Escrow Agent, at:

 

[The Bank of New York Mellon

101 Barclay Street, 7W

New York, NY 10286]

Attn: Corporate Trust Department -
Trust Series [ ]]

Telecopy [(212) 815-2896]

Telephone [(212) 815-2830]

 

		5.	Distribution of Escrow Property Upon Termination

Upon termination of this Escrow Agreement, Escrow Property then held hereunder shall be distributed as follows:

 

		(a)	On [ ], $[ ] to be transferred to the wire instructions
listed below:

 

[
]

 

		(b)	Any funds remaining after the completion of 5(a) above
shall be returned to the Call Holder to the instructions listed below:

 

[Name
of Bank]

ABA#: [ ]

GLA: [ ]

F/F/C: [ ]

 

 

II. TERMS AND CONDITIONS:

 

		1.	The duties, responsibilities and obligations of Escrow
Agent shall be limited to those expressly set forth herein and no duties, responsibilities or obligations shall be inferred or
implied. Escrow Agent shall not be subject to, nor required to comply with, any other agreement between or among any or all of
the Call Holder or to which any Call Holder is a party, even though reference thereto may be made herein, or to comply with any
direction or instruction (other than those contained herein or delivered in accordance with 

 

Form of Escrow Deposit Agreement

    	 

    	 

    

 

this
Escrow Agreement) from any Call Holder or any entity acting on its behalf. Escrow Agent shall not be required to, and shall not,
expend or risk any of its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder.

 

		2.	This Agreement is for the exclusive benefit of the parties
hereto and their respective successors hereunder, and shall not be deemed to give, either express or implied, any legal or equitable
right, remedy, or claim to any other entity or person whatsoever.

 

		3.	If at any time Escrow Agent is served with any judicial
or administrative order, judgment, decree, writ or other form of judicial or administrative process which in any way affects Escrow
Property (including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating
to the transfer of Escrow Property), Escrow Agent is authorized to comply therewith in any manner as it or its legal counsel of
its own choosing deems appropriate; and if Escrow Agent complies with any such judicial or administrative order, judgment, decree,
writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any of the parties hereto or to
any other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or
otherwise determined to have been without legal force or effect.

 

		4.	(a) Escrow Agent shall not be liable for any action
taken or omitted or for any loss or injury resulting from its actions or its performance or lack of performance of its duties
hereunder in the absence of gross negligence or willful misconduct on its part. In no event shall Escrow Agent be liable (i) for
acting in accordance with or relying upon any instruction, notice, demand, certificate or document from any Call Holder or any
entity acting on behalf of any Call Holder, (ii) for any consequential, punitive or special damages, (iii) for the acts or omissions
of its nominees, correspondents, designees, subagents or subcustodians, or (iv) for an amount in excess of the value of the Escrow
Property, valued as of the date of deposit.

 

(b)
If any fees, expenses or costs incurred by, or any obligations owed to, Escrow Agent hereunder are not promptly paid when due,
Escrow Agent may reimburse itself therefor from the Escrow Property and may sell, convey or otherwise dispose of any Escrow Property
for such purpose.

 

(c)
As security for the due and punctual performance of any and all of Call Holder's obligations to Escrow Agent hereunder, now
or hereafter arising, Call Holder, individually and collectively, hereby pledge, assign and grant to Escrow Agent a continuing
security interest in, and a lien on, the Escrow Property and all Distributions thereon or additions thereto (whether such additions
are the result of deposits by Call Holder or the investment of Escrow Property). The security interest of Escrow Agent shall at
all times be valid, perfected and enforceable by Escrow Agent against Call Holder and all third parties in accordance with the
terms of this Escrow Agreement.

 

(d)
Escrow Agent may consult with legal counsel at the expense of the Call Holder as to any matter relating to this Escrow Agreement,
and Escrow Agent shall not incur any liability in acting in good faith in accordance with any advice from such counsel.

 

(e)
Escrow Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility
hereunder by reason of any occurrence beyond the control of Escrow Agent (including but not limited to any act or provision of
any present or future law or regulation or governmental authority, any act of God or war, or the 

Form of Escrow Deposit Agreement

    	 

    	 

    
unavailability
of the Federal Reserve Bank wire or telex or other wire or communication facility).

 

		5.	Unless otherwise specifically set forth herein, Escrow
Agent shall proceed as soon as practicable to collect any checks or other collection items at any time deposited hereunder. All
such collections shall be subject to Escrow Agent's usual collection practices or terms regarding items received by Escrow Agent
for deposit or collection. Escrow Agent shall not be required, or have any duty, to notify anyone of any payment or maturity under
the terms of any instrument deposited hereunder, nor to take any legal action to enforce payment of any check, note or security
deposited hereunder or to exercise any right or privilege which may be afforded to the holder of any such security.

 

		6.	Escrow Agent shall provide to Call Holder monthly statements
identifying transactions, transfers or holdings of Escrow Property and each such statement shall be deemed to be correct and final
upon receipt thereof by the Call Holder unless Escrow Agent is notified in writing to the contrary within thirty (30) business
days of the date of such statement.

 

		7.	Escrow Agent shall not be responsible in any respect for
the form, execution, validity, value or genuineness of documents or securities deposited hereunder, or for any description therein,
or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document,
security or endorsement.

 

		8.	Notices, instructions or other communications shall be
in writing and shall be given to the address set forth in the "Addresses" provision herein (or to such other address
as may be substituted therefor by written notification to Escrow Agent or Call Holder). Notices to Escrow Agent shall be deemed
to be given when actually received by Escrow Agent's Insurance Trust and Escrow Unit of the Corporate Trust Division. Escrow
Agent is authorized to comply with and rely upon any notices, instructions or other communications believed by it to have been
sent or given by Call Holder or by a person or persons authorized by Call Holder. Whenever under the terms hereof the time for
giving a notice or performing an act falls upon a Saturday, Sunday, or banking holiday, such time shall be extended to the next
day on which Escrow Agent is open for business.

 

		9.	Call Holder shall be liable for and shall reimburse and
indemnify Escrow Agent and hold Escrow Agent harmless from and against any and all claims, losses, liabilities, costs, damages
or expenses (including reasonable attorneys' fees and expenses) (collectively, "Losses") arising from or in connection
with or related to this Escrow Agreement or being Escrow Agent hereunder (including but not limited to Losses incurred by Escrow
Agent in connection with its successful defense, in whole or in part, of any claim of gross negligence or willful misconduct on
its part), provided, however, that nothing contained herein shall require Escrow Agent to be indemnified for Losses caused by
its gross negligence or willful misconduct.

 

		10.	(a) Call Holder may remove Escrow Agent at any time
by giving to Escrow Agent thirty (30) calendar days' prior notice in writing signed by all Call Holder. Escrow Agent may resign
at any time by giving to calendar days' prior written notice thereof.

 

(b)
Within ten (10) calendar days after giving the foregoing notice of removal to Escrow Agent or receiving the foregoing notice
of resignation from Escrow Agent, Call Holder shall jointly agree on and appoint a successor Escrow Agent. If a successor Escrow
Agent has not accepted such appointment by the end of such 10-day period, Escrow Agent may, in its sole discretion, deliver the
Escrow Property to the Call Holder 

Form of Escrow Deposit Agreement

    	 

    	 

    
at the address provided herein or may apply to a court of competent jurisdiction for the appointment
of a successor Escrow Agent or for other appropriate relief. The costs and expenses (including reasonable attorneys' fees and
expenses) incurred by Escrow Agent in connection with such proceeding shall be paid by, and be deemed a joint and several obligation
of, the Call Holder.

 

(c)
Upon receipt of the identity of the successor Escrow Agent, Escrow Agent shall either deliver the Escrow Property then held
hereunder to the successor Escrow Agent, less Escrow Agent's fees, costs and expenses or other obligations owed to Escrow Agent,
or hold such Escrow Property (or any portion thereof), pending distribution, until all such fees, costs and expenses or other
obligations are paid.

 

(d)
Upon delivery of the Escrow Property to successor Escrow Agent, Escrow Agent shall have no further duties, responsibilities
or obligations hereunder.

 

		11.	(a) In the event of any ambiguity or uncertainty hereunder
or in any notice, instruction or other communication received by Escrow Agent hereunder, Escrow Agent may, in its sole discretion,
refrain from taking any action other than retain possession of the Escrow Property, unless Escrow Agent receives written instructions,
signed by Call Holder, which eliminates such ambiguity or uncertainty.

 

(b)
In the event of any dispute between or conflicting claims by or among the Call Holder and/or any other person or entity with
respect to any Escrow Property, Escrow Agent shall be entitled, in its sole discretion, to refuse to comply with any and all claims,
demands or instructions with respect to such Escrow Property so long as such dispute or conflict shall continue, and Escrow Agent
shall not be or become liable in any way to the Call Holder for failure or refusal to comply with such conflicting claims, demands
or instructions. Escrow Agent shall be entitled to refuse to act until, in its sole discretion, either (i) such conflicting or
adverse claims or demands shall have been determined by a final order, judgment or decree of a court of competent jurisdiction,
which order, judgment or decree is not subject to appeal, or settled by agreement between the conflicting parties as evidenced
in a writing satisfactory to Escrow Agent or (ii) Escrow Agent shall have received security or an indemnity satisfactory to it
sufficient to hold it harmless from and against any and all Losses which it may incur by reason of so acting. Escrow Agent may,
in addition, elect, in its sole discretion, to commence an interpleader action or seek other judicial relief or orders as it may
deem, in its sole discretion, necessary. The costs and expenses (including reasonable attorneys' fees and expenses) incurred in
connection with such proceeding shall be paid by the Call Holder.

 

		12.	This Agreement shall be interpreted, construed, enforced
and administered in accordance with the internal substantive laws (and not the choice of law rules) of the State of New York.
Call Holder hereby submits to the personal jurisdiction of and agrees that all proceedings relating hereto shall be brought in
courts located within the City and State of New York or elsewhere as Escrow Agent may select. Call Holder hereby waives the right
to trial by jury and to assert counterclaims in any such proceedings. To the extent that in any jurisdiction Call Holder may be
entitled to claim, for itself or its assets, immunity from suit, execution, attachment (whether before or after judgment) or other
legal process, it hereby irrevocably agrees not to claim, and hereby waives, such immunity. Call Holder waives personal service
of process and consents to service of process by certified or registered mail, return receipt requested, directed to it at the
address last specified for notices hereunder, and such service shall be deemed completed ten (10) calendar days after the same
is so mailed.

 

Form of Escrow Deposit Agreement

    	 

    	 

    

		13.	Except as otherwise permitted herein, this Escrow Agreement
may be modified only by a written amendment signed by all the parties hereto, and no waiver of any provision hereof shall be effective
unless expressed in a writing signed by the party to be charged.

 

		14.	The rights and remedies conferred upon the parties hereto
shall be cumulative, and the exercise or waiver of any such right or remedy shall not preclude or inhibit the exercise of any
additional rights or remedies. The waiver of any right or remedy hereunder shall not preclude the subsequent exercise of such
right or remedy.

 

		15.	Call Holder hereby represents and warrants (a) that this
Escrow Agreement has been duly authorized, executed and delivered on its behalf and constitutes its legal, valid and binding obligation
and (b) that the execution, delivery and performance of this Escrow Agreement by Call Holder do not and will not violate any applicable
law or regulation.

 

		16.	The invalidity, illegality or unenforceability of any provision
of this Agreement shall in no way affect the validity, legality or enforceability of any other provision; and if any provision
is held to be enforceable as a matter of law, the other provisions shall not be affected thereby and shall remain in full force
and effect.

 

		17.	This Agreement shall constitute the entire agreement of
the parties with respect to the subject matter and supersedes all prior oral or written agreements in regard thereto.

 

		18.	This Agreement shall terminate upon the distribution of
all Escrow Property from the Account. The provisions of these Terms and Conditions shall survive termination of this Escrow Agreement
and/or the resignation or removal of the Escrow Agent.

 

		19.	No printed or other material in any language, including
prospectuses, notices, reports, and promotional material which mentions "The Bank of New York Mellon" by name or the
rights, powers, or duties of the Escrow Agent under this Agreement shall be issued by any other parties hereto, or on such party's
behalf, without the prior written consent of Escrow Agent.

 

		20.	The headings contained in this Agreement are for convenience
of reference only and shall have no effect on the interpretation or operation hereof.

 

		21.	This Escrow Agreement may be executed by each of the parties
hereto in any number of counterparts, each of which counterpart, when so executed and delivered, shall be deemed to be an original
and all such counterparts shall together constitute one and the same agreement.

 

		22.	The Escrow Agent does not have any interest in the Escrow
Property deposited hereunder but is serving as escrow holder only and having only possession thereof. The Call Holder shall pay
or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrow Property incurred in connection
herewith and shall indemnify and hold harmless the Escrow Agent any amounts that it is obligated to pay in the way of such taxes.
Any payments of income from this Escrow Account shall be subject to withholding regulations then in force with respect to United
States taxes. The parties hereto will provide the Escrow Agent with appropriate W-9 forms for tax I.D., number certifications,
or W-8 forms for non-resident alien certifications. It is understood that the Escrow Agent shall be responsible for income reporting
only with respect to income earned on investment of funds which are a part of the Escrow Property and is not responsible for any
other reporting. This paragraph and paragraph (9) shall survive

Form of Escrow Deposit Agreement

    	 

    	 

    
notwithstanding
any termination of this Escrow Agreement or the resignation of the Escrow Agent.

 

		23.	Call Holder agrees to indemnify and hold harmless the Escrow
Agent against any and all claims, losses, damages, liabilities, judgments, costs and expenses (including reasonable attorneys
fees ) (collectively, “Losses”) incurred or sustained by the Escrow Agent as a result of or in connection with the
Escrow Agent’s reliance upon and compliance with instructions or directions given by facsimile or electronic transmission;
provided, however, that such losses have not arisen from the gross negligence or willful misconduct of the Escrow Agent, it being
understood that the failure of the Escrow Agent to verify or confirm that the person giving the instructions or directions, is
in fact, an authorized person, does not constitute gross negligence or willful misconduct.

Form of Escrow Deposit Agreement

    	 

    	 

    
IN WITNESS WHEREOF, each of the parties has caused
this Escrow Agreement to be executed by a duly authorized officer as of the day and year first written above.

 

 

 

 

 

[            ], as Call Holder

 

By:____________________________

Name: 

Title:

 

 

 

[THE BANK OF NEW YORK MELLON], as Escrow Agent

 

 

By:______________________________

Name:

Title:

 

Form of Escrow Deposit Agreementex10-16.htm

Exhibit 10.16

USA TECHNOLOGIES, INC.

2012 STOCK INCENTIVE PLAN

 

1.             Purpose. The purpose of the USA Technologies, Inc. 2012 Stock Incentive Plan is to provide an incentive to Employees, Consultants and Directors of the Company who are in a position to contribute materially to the long-term success of the Company, to increase their interest in the Company’s welfare, and to aid in gaining the services of Employees, Consultants and Directors of outstanding ability who will contribute to the Company’s success.

 

2.             Definitions.

 

2.1            “Award” means an award of Stock under the Plan.

2.2            “Board” means the Board of Directors of USA.

2.3            “Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code shall include any successor to such section.

2.4            “Committee” means the Compensation Committee of the Board; provided, however, that if an Award is to be made to an Employee who is an executive officer of USA or to a Director of USA, any award to be made to any such executive officer or Director shall also be approved by the Directors of USA.

2.5            “Common Stock” means USA common stock, no par value per share, or such other class or kind of shares of capital stock or other securities as may result from the application of Section 7 hereof.

2.6            “Company” means USA and any successor thereof.

2.7            “Consultant” means a consultant retained to provide bona fide services to, and who is not an employee of USA.

2.8            “Director” means each director of USA who is not an employee of USA.

2.9            “Employee” means an officer or employee of the Company including a director who is such an employee.

2.10          “Fair Market Value” means, on any given date, the mean between the high and low prices of actual sales of Common Stock on the principal national securities exchange on which the Common Stock is listed on such date, or, if the Common Stock was not so listed, the average closing bid price of the stock for each of the five trading days prior to such date.

2.11          “Holder” means an Employee, Director or Consultant to whom an Award is made.

2.12          “USA” means USA Technologies, Inc., a Pennsylvania corporation and any successor thereto.

2.13          “1933 Act” means the Securities Act of 1933, as amended.

2.14          “Plan” means the USA 2011 Stock Incentive Plan herein set forth, as amended from time to time.

2.15          “Stock” means Common Stock awarded by the Committee under Section 6 of the Plan.

2.16          “SEC” means the United States Securities and Exchange Commission.

2.17          “Stock Award Agreement” means a Stock Award Agreement evidencing an Award granted under the Plan.

 

3.             Eligibility. Any Employee, Director or Consultant is eligible to receive an Award.

 

4.             Administration of Plan.

 

4.1            The Plan shall be administered and interpreted by the Committee, which shall have full authority to act in selecting Employees, Directors and Consultants to whom Awards will be made, in determining the type and amount of Awards to be granted to each such Holder, the terms and conditions of Awards and the terms of agreements which will be entered into with Holders in connection with Awards.

4.2            The Committee’s powers shall include, but not be limited to, the power to determine whether, to what extent and under what circumstances an Award is made.

4.3            The Committee shall have the power to adopt regulations for carrying out the Plan and to make such changes in such regulations as it shall from time to time deem advisable. The Committee shall have the power unilaterally and without approval of a Holder to amend any existing Award in order to carry out the purposes of the Plan so long as such amendment does not deprive the Holder of any benefit granted by the Award and so long as the amended Award comports with the terms of the Plan. Amendments adverse to the interests of the Holder must be approved by the Holder. Any interpretation by the Committee of the terms and provisions of the Plan and the administration thereof, and all action taken by the Committee, shall be final and binding on Plan participants.

 

5.             Shares of Stock Subject to the Plan.

 

5.1            Subject to adjustment as provided in Section 7, the total number of shares of Common Stock available for Awards under the Plan shall be 500,000 shares.

5.2            Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares subject to any Award granted hereunder are forfeited or such Award otherwise terminates without the issuance of such shares, the shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for Awards under the Plan.

 

 

 

 

 

6.             Stock.

 

An Award of Stock is a grant by the Company of a specified number of shares of Common Stock to the Holder, which shares may be subject to forfeiture upon the happening of specified events. Such an Award may be subject to the following terms and conditions:

6.1            An Award of Stock may be evidenced by a Stock Award Agreement. Such agreements shall conform to the requirements of the Plan and may contain such other provisions as the Committee shall deem advisable.

6.2            Upon determination of the number of shares of Stock to be granted to the Holder, the Committee shall direct that a certificate or certificates representing the number of shares of Common Stock be issued to the Holder with the Holder designated as the registered owner.

6.3            The Committee may condition the grant of an Award of Stock upon the Holder’s achievement of one or more performance goal(s) specified in the Stock Award Agreement. If the Holder fails to achieve the specified performance goal(s), the Committee shall not grant the Stock to the Holder, or the Holder shall forfeit the Award of Stock and the Common Stock shall be forfeited to the Company.

6.4            The Stock Award Agreement, if any, shall specify the performance, employment or other conditions (including termination of employment on account of death, disability, retirement or other cause) under which the Stock may be forfeited to the Company.

6.5            The Stock Award Agreement may also contain (a) an agreement not to compete with the Company and its subsidiaries which shall become effective as of the date of the grant of the Award and remain in effect for a specified period of time following termination of the Holder’s employment with or affiliation with the Company; (b) an agreement to cancel any employment agreement, fringe benefit or compensation arrangement in effect between the Company and the Holder; and (c) an agreement to retain the confidentiality of certain information.

 

7.             Adjustments Upon Changes in Capitalization. In the event of a reorganization, recapitalization, stock split, spin-off, split-off, split-up, stock dividend, issuance of stock rights, combination of shares, merger, consolidation or any other change in the corporate structure of USA affecting the Common Stock, or any distribution to shareholders other than a cash dividend, the Board shall make appropriate adjustment in the number and kind of shares authorized by the Plan as it determines appropriate. No fractional shares of stock shall be issued pursuant to such an adjustment, but an amount equivalent to the portion of Fair Market Value attributable to any such fractional shares shall, where appropriate, be paid in cash to the Holder.

 

8.             Termination and Amendment. The Plan shall remain in full force and effect until terminated by the Board. The Board shall have the power to amend, suspend or terminate the Plan at any time without the approval of the shareholders of the Company, unless such approval is required by applicable law, regulation or rule of any stock exchange on which the shares of Common Stock are listed.

 

9.             Form S-8.

 

9.1            Promptly upon the approval of this Plan by the Board of Directors of USA and the shareholders, the Company shall, at its cost and expense, register all of the Stock under the 1933 Act pursuant a to Form S-8 registration statement.

9.2            Notwithstanding anything else set forth herein, an Award shall not be made to any Director, Consultant or Employee unless such person is eligible to receive Stock which has been registered under a Form S-8 registration statement. In this regard, any Stock issuable to a Consultant or Director shall be issued to an individual who provided bona fide services to USA and such services shall not be in connection with the offer or sale of securities in a capital-raising transaction, and shall not directly or indirectly promote or maintain a market for USA’s securities.

9.3            In connection with the issuance of any Stock pursuant to the Plan, USA shall at its expense, use its best efforts to have any such Stock exempted from the registration requirements under applicable state securities laws.

9.4            The documents incorporated by reference in Item 3 of Part II of the Form S-8 registration statement, and any additional information about the Company, the Plan and the Plan administrators may be obtained, without charge, upon written request made to the Company at 100 Deerfield Lane, Suite 140, Malvern, PA 19355, Attn: Stephen P. Herbert, Chief Executive Officer, or by calling 610-989-0340.

 

10.           General Provisions.

 

10.1          The Plan shall become effective upon its approval by the Board, subject to the approval of the Plan by the shareholders of the Company at the Company’s annual meeting of shareholders held on June 28, 2012, and any adjournment or postponement thereof.

10.2          Nothing contained in the Plan, or an Award granted pursuant to the Plan, shall confer upon an Employee any right with respect to continuance of employment by the Company or upon any Director or Consultant any right with respect to continuance of Board service or the consulting arrangement (as the case may be), nor interfere in any way with the right of the Company to terminate such relationships at any time.

10.3          Holders shall be responsible to make appropriate provision for all taxes required to be withheld in connection with any Award. Such responsibility shall extend to all applicable federal, state, local or foreign withholding taxes. Stock Award Agreements evidencing Awards may contain appropriate provisions to effect withholding, including providing for the withholding of Stock by USA otherwise deliverable to a Holder having a Fair Market Value equal to the minimum amount required to be withheld by the Company. The Plan is not qualified under Section 401(a) of the Code.

10.4          To the extent that federal laws (such as the 1934 Act, the Code or the Employee Retirement Income Security Act of 1974) do not otherwise control, the Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the Commonwealth of Pennsylvania and construed accordingly.

 

 

2

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