Document:

EXHIBIT 10.25
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                              EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement"), is made and entered into as
of the Effective Date (as hereinafter defined), by and between Clark/Bardes Inc.
and/or its successors ("Company"), a Delaware corporation, and Leslie N.
Brockhurst, a resident of California (the "Employee").

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS, Clark/Bardes, Inc. ("CBI") and its affiliates (including the
Company) (collectively "CBI Affiliates" and individually "CBI Affiliate") are
engaged in business in the State of Illinois and throughout the United States;
and

     WHEREAS, the Company desires to employ the Employee in the capacity of
President of the Executive Benefits Practice (the "Division") of the Company,
upon the terms and conditions hereinafter set forth; and

     WHEREAS, the Employee is willing to enter into this Agreement with respect
to his employment and services upon the terms and conditions hereinafter set
forth.

     NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, the Company hereby employs the Employee and the Employee
hereby accepts such employment upon the terms and conditions hereinafter set
forth:

     1. Term of Employment. The term of employment under this Agreement shall
commence on March 21, 2003 (the "Effective Date") and shall extend through
December 31, 2004. Absent notice of termination (described below), commencing on
January 1, 2005 and continuing on each subsequent January l, the term of the
Employee's employment shall automatically be extended for an additional 12
months. To cause the Employee's employment to terminate at the end of the
original or an extended term, either party, at least 30 days prior to such date,
shall give written notice to the other party that the Agreement will terminate.

     2. Duties of the Employee. The Employee agrees that during the term of this
Agreement, he will devote substantially all his full professional and
business-related time, skills and best efforts to the businesses of the Company.
The Employee shall report to the Chief Operating Officer of Clark/Bardes Inc. or
such other manager as the Board of the Company may from time to time determine.
The Employee may engage in personal investment activities provided such
activities do not interfere with the performance of his duties hereunder or
violate the noncompetition and confidential information provisions set forth
herein. Nothing herein, however, will prevent the Employee, (i) upon approval of
Chief Executive Officer and Chief Operating Officer of CBI, from service as a
director or trustee of other corporations or businesses which are not directly
or indirectly in competition with the business of the Company or in competition
with any present or future CBI Affiliate, (ii) from service on civic or
charitable boards or committees, or (iii) from engaging in personal, passive,
investment activities; provided such activities do not interfere with the
performance of his duties hereunder or violate the noncompetition and
confidential information provisions set forth herein. Employee shall be
indemnified for actions performed in the course of his employment to the same
extent as other similarly situated employees of the CBI Affiliates.

<PAGE>

     3. Compensation.

        (a) Base Salary. The Company shall pay the Employee an annual base
salary of Three Hundred and Thirty Thousand Dollars ($330,000), for each year of
this Agreement (or fraction for portions of a year) ("Base Salary"). After March
21, 2004, such Base Salary may be adjusted upwards in accordance with the
Company's standard salary adjustment guidelines based upon the Employee's
performance. The Employee's Base Salary shall be subject to all appropriate
federal and state withholding taxes and shall be payable in accordance with the
normal payroll procedures of the Company.

        (b) Perquisite Allowance. The Company shall pay the Employee an annual
executive perquisite allowance of Twenty Thousand Dollars ($20,000), for each
year of this Agreement (or fraction for portions of a year) (the "Allowance").
The Allowance shall be in lieu of all other executive perquisites and subject to
all appropriate federal and state withholding taxes and shall be payable in
accordance with the normal payroll procedures of the Company.

        (c) Annual Bonus. In addition to the Base Salary and Allowance set forth
in Section 3(a) and 3(b) hereof, the Employee shall receive an annual bonus
opportunity (the "Annual Bonus") each year during his employment equal to 125%
of his Base Salary. For the Annual Bonus attributable to the fiscal year ending
December 31, 2003, the bonus targets will be based on the successful completion
of non-financial goals which will be communicated to the Employee by the Chief
Operating Officer of Clark/Bardes, Inc and one-half of this amount will be
guaranteed to the Employee. The remaining one-half of the 2003 bonus target will
be based on the successful completion of changes to the compensation structure
of commission-based employees within the Division. This determination of whether
these changes have been successfully implemented is at the discretion of the
Chief Operating Officer of Clark/Bardes Inc. but will not be more than ninety
(90) days after this Agreement is executed by the Company. For the Annual Bonus
in subsequent years, no part of which will be guaranteed, the Annual Bonus will
be based on financial and/or non-financial goals which will be communicated to
the Employee by the Chief Operating Officer of Clark/Bardes Inc. on an annual
basis. Generally, subject to the discretion of the Company, 80% of the Annual
Bonus opportunity is paid if approved budget levels are met. The Annual Bonus
shall be paid on or before March 15 of the year following the year to which the
bonus relates. The Employee must be employed by the Company or a CBI Affiliate
on the date of payment in order to receive his Annual Bonus. The Annual Bonus,
if any, shall be subject to all appropriate federal and state withholding taxes
and shall be paid in accordance with the normal payroll procedures of the
Company.

        (d) First Option Grant. The Employee will receive an option to purchase
15,000 shares of common stock of Clark/Bardes, Inc. ("CBI") at an exercise price
per share equal to the fair market value of such common stock on the date of
grant, which grant will be made under CBI's 1998 Stock Option Plan or a
substantially equivalent stock option plan (the "Option Plan") pursuant to a
stock option purchase agreement substantially in the form attached hereto as
Exhibit B. The date of the grant will be the date on which this Agreement is
executed by the Company. Twenty percent (20%) of such options will vest on the
date of the grant and the remaining 80% will vest annually (20% per year) over a
period of four years from the date of the grant subject to the Employee's
continuing employment with the Company. Such options are otherwise subject to
the terms of the Option Plan. The Employee shall be entitled to receive such

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<PAGE>

additional options on such terms and conditions as the Board of Directors may
determine from time to time for other Practice Presidents in a similar fashion.

        (e) Second Option Grant. The Employee will also receive an option to
purchase 20,000 shares of common stock of Clark/Bardes, Inc. ("CBI") at an
exercise price per share equal to the fair market value of such common stock on
the date of grant, which grant will be made under CBI's 1998 Stock Option Plan
or a substantially equivalent stock option plan (the "Option Plan") pursuant to
a stock option purchase agreement substantially in the form attached hereto as
Exhibit C. The date of the grant will be January 2, 2004. Twenty percent (20%)
of such options will vest on the date of the grant and the remaining 80% will
vest annually (20% per year) over a period of four years from the date of the
grant subject to the Employee's continuing employment with the Company. Such
options are otherwise subject to the terms of the Option Plan.

     4. Loan Repayment. The Employee is currently party to a Promissory Note
dated April 17, 1998 between himself and the Company (successor to Compensation
Resource Group, the "Holder") which is attached hereto as Exhibit D. As of March
21, 2003, the balance of this Promissory Note is $142,000. The Employee agrees
to pay $100,000 in cash to Clark/Bardes Consulting within thirty (30) days
following the effective date of this Agreement as a partial prepayment on the
outstanding balance of this Promissory Note. The Company agrees to amend the
terms of this Promissory Note so that the remaining outstanding principal
amount, together with accrued interest through December 31, 2003 will be
deducted from the amount of the Employee's 2003 Annual Bonus, if any, which will
be payable in March 2004. To the extent that the 2003 Annual Bonus is
insufficient to repay the Company the outstanding Promissory Note balance, the
Employee must repay the Company from his personal funds, no later than April 1,
2004.

     5. EBS Termination. The Employee is currently party to an agreement with
the Company known as the Amended and Restated Executive Benefit Specialist
Agreement dated April 15, 2000 (the "EBS Contract") which is attached hereto as
Exhibit E. Pursuant to Section 7.1 of the EBS Contract, the Company will
terminate the EBS Contract on the effective date of this Agreement. All First
Year commission pursuant to section 3.1(a) of the EBS Contract will immediately
cease on the date that this Agreement becomes effective with the exception of
any First Year commissions on the clients Wisconsin Energy or CNF which would
have otherwise been paid under the EBS Contract pursuant to section 3.1(a)
within 90 days of the effective date of this Agreement. The Chief Operating
Officer of Clark/Bardes, Inc. will be the sole arbiter as to whether this 90 day
period is extended. The purchase of the Employee's vested renewal compensation,
pursuant to Section 5.4 of the EBS Contract, will be per the attached Purchase
Agreement (Exhibit F). The renewal commissions, if any, on the clients Wisconsin
Energy and CNF which are generated based on first year premiums paid after the
effective date of the Agreement, will be purchased in a manner similar to and
formulas consistent with that of the Purchase Agreement.

     6. Employee Benefits. The Employee and his eligible dependents shall be
eligible to participate in the qualified employee benefit programs made
available generally to other employees of the CBI Affiliates as well as any
other programs made available generally to other Presidents of Divisions of the
Company; provided, however, that the Employee and his eligible

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dependents must meet any and all eligibility provisions required under such
qualified employee benefit programs. The Employee will be also eligible for
participation in the Clark/Bardes, Consulting, Inc. Execu-flex Benefit Plan,
beginning in the 2003 plan year, which will provide the Employee with a $15,000
contribution each plan year for so long as this Plan is offered to other
employees and for as long as the Employee remains as President of the Division.

     7. Vacations. The Employee shall be entitled to up to twenty (25) days paid
vacation during each full calendar year, and may carry over up to thirty (30)
days of unused vacation to the next succeeding calendar year; provided, however,
that at no time may the Employee have accumulated more than thirty (30) days of
vacation.

     8. Reimbursement of Expenses. The Company recognizes that the Employee will
incur legitimate business expenses in the course of rendering services to the
Company hereunder. Accordingly, the Company shall reimburse the Employee, upon
presentation of receipts or other adequate documentation, for all necessary and
reasonable business expenses incurred by the Employee in the course of rendering
services to the Company under this Agreement consistent with the Company's
Travel Policy then in effect.

     9. Working Facilities. The Employee shall be furnished an office,
administrative assistance and such other facilities and services suitable to his
position and adequate for the performance of his duties ("Working Facilities"),
which shall be consistent with the reasonable policies of the Company. During
the term of this Agreement, the Employee must spend a minimum of eight (8) to
ten (10) days each month in the headquarters of the Division, currently in
Dallas, Texas.

     10. Termination. The employment relationship between the Employee and the
Company created hereunder shall terminate before the expiration of the then
current term upon the occurrence of any one of the following events:

         (a) Death or Permanent Disability. The death or permanent disability of
the Employee. For the purpose of this Agreement, "permanent disability" of the
Employee shall mean "disability" as defined under Clark/Bardes Consulting,
Inc.'s long-term disability plan.

         (b) Termination for Cause. The following events, actions or inactions
by the Employee shall constitute "Cause" for termination of this Agreement:

             (i) Substantial refusal or failure to perform duties or any
     reasonable obligation or substantial poor performance by the Employee that
     is repeated or continued following thirty (30) days written notice to the
     Employee of such refusal or failure to perform or of substantial poor
     performance given by the Chief Operating Officer of CBI to the Employee;

             (ii) Employee's failure to rectify any material breach of
     contract under this Agreement within 30 days after written notice of such
     breach is given by the President of the Division to the Employee;

             (iii) any gross misconduct or gross negligence in the performance
     of his duties that materially and adversely affects the Company;

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<PAGE>

             (iv) a material breach of the Intellectual Property and
     Confidentiality Agreement with the Company;

             (v) the intentional diversion of a material financial opportunity
     away from the CBI Affiliates;

             (vi) beginning July 1, 2004 and every month thereafter, financial
     performance of the Division that is 20% less than budgeted based on
     Division earnings before interest, taxes and amortization (EBITA) on a six
     month trailing basis;

             (vii) the commission of an act of dishonesty or fraud that is of a
     material nature and involves a material breach of trust with respect to the
     interests of the Company; and

             (viii) the conviction of Employee for any felony or of a crime
     involving moral turpitude.

Any notice of discharge shall describe with reasonable specificity the cause or
causes for the termination of the Employee's employment, as well as the
effective date of the termination (which effective date may be the date of such
notice). If the Company terminates the Employee's employment for any of the
reasons set forth above, the Company shall have no further obligations hereunder
from and after the effective date of termination (other than as set forth below)
and shall have all other rights and remedies available under this Agreement or
any other agreement and at law or in equity.

         (c) Constructive Termination. In the event of a material reduction in
(or a failure to pay or provide) Employee's earned Base Salary, earned
Allowance, earned Annual Bonus, benefits, vacation time other than as permitted
by this Agreement, or a downward revision in the Employee's title and/or
responsibilities unless mutually agreed upon between the Employee and the Chief
Operating Officer of Clark/Bardes, Inc., the Employee shall have the right to
terminate his employment and such termination shall be treated in all respects
as if it had been a termination of employment by the Company without Cause.

         (d) Termination by the Employee with Notice. The Employee may terminate
this Agreement at any time without liability to the Company arising from the
resignation of the Employee upon thirty (30) days prior written notice to the
Company. The Company retains the right after proper notice of the Employee's
voluntary termination to require the Employee to cease his employment
immediately; provided, however, in such event, the Company shall remain
obligated to pay the Employee his salary during the thirty (30) day notice
period. During such thirty (30) day notice period, the Employee shall provide
such consulting services to the Company as the Company may reasonably request
and shall assist the Company in training his successor and generally preparing
for an orderly transition.

         (e) Termination by the Company with Notice. After December 31, 2004, or
prior to such anniversary in connection with a general restructuring of the
Company as a whole, the Company may terminate this Agreement at any time without
liability other than as set forth in Section 10(e) upon thirty (30) days prior
written notice to the Employee. The Company retains the right after proper
notice has been given to the Employee to require the Employee to

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<PAGE>

cease his employment immediately; provided, however, in such event, the Company
shall remain obligated to pay the Employee his salary during the thirty (30) day
notice period. During such thirty (30) day notice period, the Employee shall
provide such consulting services to the Company as the Company may reasonably
request and shall assist the Company in training his successor and generally
preparing for an orderly transition.

     11. Compensation Upon Termination.

         (a) Accrued Obligations. Upon termination of the Employee's employment
under this Agreement for any reason (provided, however, that the Company may not
terminate the Employee without Cause or take actions that would result in a
Constructive Termination of the Employee prior to December 31, 2004, unless the
Company terminates the Employee without Cause prior to such anniversary in
connection with a general restructuring of the Company as a whole), the Employee
shall be entitled to:

             (i) the Base Salary earned by him before the effective date of
     termination, as provided in Section 3(a) hereof, prorated on the basis of
     the number of full days of service rendered by the Employee during the year
     to the effective date of termination;

             (ii) the Allowance earned by him before the effective date of
     termination, as provided in Section 3(b) hereof, prorated on the basis of
     the number of full days of service rendered by the Employee during the year
     to the effective date of termination;

             (iii) any accrued, but unpaid, vacation (up to thirty (30) days);

             (iv) any authorized but unreimbursed business expenses; and

             (v) any benefits to which the Employee is entitled under the
     employee benefit programs maintained by the CBI Affiliates in which the
     Company participates.

         The sum of the amounts described in clauses (i) through (v) will be
hereinafter referred to as the "Accrued Obligations." The Accrued Obligations
will be paid to the Employee or his estate or beneficiary, as applicable, in a
lump sum in cash within thirty (30) days of the date of termination; provided
that the benefits under clause (v) will be paid or provided in accordance with
the terms of the applicable employee benefit programs.

         (b) Compensation for any termination other than Cause or termination
by the Employee. Upon termination of the Employee's employment under this
Agreement for any reason other those specified pursuant to Sections 10(b) or
10(d) of the Agreement, the Employee will receive 1 year of Base Salary,
pursuant to Section 3(a) to be paid over the course of 12 months consistent with
the company's normal payroll practices. The Employee's Base Salary shall be
subject to all appropriate federal and state withholding taxes. The Employee
will also receive a pro-rata share of the Annual Bonus, pursuant to Section 3(c)
based on the Employee's base salary for the fiscal year through the date of
termination and not to include any base salary paid after the Employee's date of
termination.

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<PAGE>

         (c) Withholding; Offset. Amounts payable under this Section 11 shall be
subject to all appropriate federal and state withholding taxes, and shall be
offset by any amounts due the Company under this Agreement or pursuant to the
promissory note evidencing the sign-on loan.

     12. Noncompetition; Nonsolicitation.

         (a) The Employee acknowledges that he occupies a position of special
trust and confidence with respect to the Company, and that the position imposes
the obligation to act in a stewardship capacity with respect to the preservation
and development of the Company and its resources for the benefit of future, as
well as present, shareholders, officers, directors and employees. In recognition
of his special relationship with the Company, and to protect the Company's
legitimate business interests without unnecessarily or unreasonably restricting
his professional opportunities in the event of his termination from the Company
and all CBI Affiliates:

             (i) The Employee shall not, for a period of thirteen (13) months
     following his termination of employment with the Company and all CBI
     Affiliates for any reason, for himself or as agent, partner or employee of
     any person, corporation or firm, directly or indirectly, engage in services
     of the type provided by the Company for:

                 (1) any client of the Company or a CBI Affiliate for whom the
         Employee performed services, as determined by the Chief Operating
         Officer of Clark/Bardes, Inc., or supervised the performance of
         services,

                 (2) any prospective client of the Company or a CBI Affiliate to
         whom the Employee submitted, or assisted in the submission of, a
         proposal, during the eighteen (18) month period preceding his
         termination, or

                 (3) any client about whom Employee learned Confidential
         Information.

             (ii) The Employee shall not, at any time during which he is an
     employee of the Company or another CBI Affiliate and for thirteen (13)
     months after his termination with the Company and all CBI Affiliates for
     any reason, whether for his own account or for the account of any person
     other than a CBI Affiliate, directly or indirectly, endeavor to solicit
     away from the Company or a CBI Affiliate, or facilitate the solicitation
     away from the Company or a CBI Affiliate of, any client of the Company or a
     CBI Affiliate or induce same to limit, alter or reduce its relationship
     with the Company.

             (iii) The Employee shall not, at any time during which he is an
     employee of the Company or another CBI Affiliate and for thirteen (13)
     months after his termination for any reason from the Company and all CBI
     Affiliates, whether for his own account or for the account of any person
     other than a CBI Affiliate, directly or indirectly, induce away from the
     Company or a CBI Affiliate, or facilitate the inducement away from the
     Company or a CBI Affiliate of, any personnel of the Company or a CBI
     Affiliate or interfere with the faithful discharge by such personnel of
     their contractual and

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<PAGE>

     fiduciary obligations to serve the Company's or a CBI Affiliate's interests
     and those of its clients of undivided loyalty.

             (iv) The Employee agrees that, for a period of five (5) years after
     the Closing Date of the Purchase Agreement (Exhibit F), the Employee shall
     not promote, market, solicit, or sell any product or service, including
     without any limitation, any life insurance or other insurance product or
     policy, similar to or competitive with CBI or any of its divisions'
     programs ("CBI Program") to any of the clients listed on Exhibit G hereto.

         (b) "Client" as used in this Section 12 shall mean any person or
entity for whom the Company or a CBI Affiliate performed services or provided
products within the twelve (12) months immediately preceding the termination of
the Employee's employment with the Company and all CBI Affiliates.

     13. Confidential Information. Employee shall abide by the terms of the
Company's standard Intellectual Property and Confidentiality Agreement, which is
attached hereto as Exhibit A.

     14. Property of the Company. The Employee acknowledges that from time to
time in the course of providing services pursuant to this Agreement he shall
create or have the opportunity to inspect and use certain property, both
tangible and intangible, of the Company and the Employee hereby agrees that such
property shall remain the exclusive property of the Company, and the Employee
shall have no right or proprietary interest in such property, whether tangible
or intangible, including, without limitation, the Employee's customer and
supplier lists, contract forms, books of account, computer programs and similar
property.

     15. Equitable Relief. The Employee acknowledges that the services to be
rendered by him are of a special, unique, unusual, extraordinary, and
intellectual character, which gives them a peculiar value, and the loss of which
cannot reasonably or adequately be compensated in damages in an action at law,
and that a breach by him of any of the provisions contained in this Agreement
will cause the Company irreparable injury and damage. The Employee further
acknowledges that he possesses unique skills, knowledge and ability and that
competition by him in violation of this Agreement or any other breach of the
provisions of this Agreement would be extremely detrimental to the Company. By
reason thereof, the Employee agrees that the Company shall be entitled, in
addition to any other remedies it may have under this Agreement or otherwise, to
injunctive and other equitable relief to prevent or curtail any breach of this
Agreement by him.

     16. Assignment. The Company may assign its rights under this Agreement to
any successor in interest, whether by merger, consolidation, sale of assets or
otherwise. This Agreement is personal to the Employee and may not be assigned in
any way by the Employee without the prior written consent of the Company.

     17. Severability and Reformation. The parties hereto intend all provisions
of this Agreement to be enforced to the fullest extent permitted by law. If,
however, any provision of this Agreement is held to be illegal, invalid, or
unenforceable under present or future law, such

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<PAGE>

provision shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid, or unenforceable provision were never a
part hereof, and the remaining provisions shall remain in full force and effect
and shall not be affected by the illegal, invalid, or unenforceable provision or
by its severance. Further, if any provision is held to be overbroad, a court may
modify that provision to the extent necessary to make the provision enforceable
according to applicable law and enforce the provision as modified.

     18. Integrated Agreement. This Agreement constitutes the entire Agreement
between the parties hereto with regard to the subject matter hereof, and there
are no agreements, understandings, specific restrictions, warranties or
representations relating to said subject matter between the parties other than
those set forth herein, specifically referenced herein or otherwise herein
provided for.

     19. Notices. All notices and other communications required or permitted to
be given hereunder shall be in writing and shall be deemed to have been duly
given if delivered personally, mailed by certified mail (return receipt
requested) or sent by overnight delivery service, cable, telegram, facsimile
transmission or telex to the parties at the following addresses or at such other
addresses as shall be specified by the parties by like notice:

     If to the Company:

         Clark/Bardes, Inc.
         102 South Wynstone Park Drive
         North Barrington, Illinois 60010
         Attn:  Mr. Thomas M. Pyra
         Chief Operating Officer and Chief Financial Officer

     With a copy in the event of notice to the Company or CBI to:

         Vedder, Price, Kaufman and Kammholz, P.C.
         222 N. LaSalle Street
         Chicago, Illinois 60601
         Attn:  Lane R. Moyer, Esq.

     If to Employee:

         Leslie N. Brockhurst
         104 Bradbury Hills Lane
         Bradbury, CA 91010

     Notice so given shall, in the case of notice so given by mail, be deemed to
be given and received on the fourth calendar day after posting, in the case of
notice so given by overnight delivery service, on the date of actual delivery
and, in the case of notice so given by cable, telegram, facsimile transmission,
telex or personal delivery, on the date of actual transmission or, as the case
may be, personal delivery.

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<PAGE>

     20. Further Actions. Whether or not specifically required under the terms
of this Agreement, each party hereto shall execute and deliver such documents
and take such further actions as shall be necessary in order for such party to
perform all of his or its obligations specified herein or reasonably implied
from the terms hereof.

     21. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAW, AND NOT THE LAW OF CONFLICTS, OF THE STATE OF
ILLINOIS.

     22. Application of Terms. Whenever used herein the terms Clark/Bardes, Inc.
Clark/Bardes Consulting, Inc., (or any abbreviations thereof) shall include all
affiliates and successors thereof.

     23. Counterparts. This Agreement may be executed in counterparts, each of
which will take effect as an original and all of which shall evidence one and
the same Agreement.

     24. Arbitration. Without limiting the right of the Company or the Employee
to seek equitable relief to prevent irreparable injury, any dispute arising out
of or relating to this Agreement or the breach, termination or validity thereof,
which has not been resolved by agreement within 60 days after written notice
thereof by the affected Party shall be settled by arbitration in accordance with
the then current Center for Public Resources Rules for Non-Administered
Arbitration of Business Disputes, by a sole arbitrator. The arbitration shall be
governed by the United States Arbitration Act, 9 U.S.C. ss. 1-16, and judgment
upon the award rendered by the arbitrator may be entered by any court having
jurisdiction thereof. The place of arbitration shall be Chicago, Illinois. The
arbitrator is not empowered to award damages in excess of compensatory damages
and each Party hereby irrevocably waives any right to recover such damages with
respect to any dispute resolved by arbitration.

                            [signature page follows]

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<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the Effective Date.

                                                    CLARK/BARDES, INC.

                                                    By:  /s/ Thomas M. Pyra
                                                         -----------------------
                                                         Thomas M. Pyra
                                                         Chief Operating Officer

                                                    Dated:
                                                          ----------------------

                                                    EMPLOYEE:

                                                    /s/ Leslie N. Brockhurst
                                                    ------------------------
                                                    Leslie N. Brockhurst

                                       11Exhibit 4.2       Form of Series Supplement.

                    PUBLIC STEERS(R) SERIES 1998 TRV-C1 TRUST

                                SERIES SUPPLEMENT

                                      among

                         MERRILL LYNCH DEPOSITOR, INC.,

                                  as Depositor,

                    UNITED STATES TRUST COMPANY OF NEW YORK,

                                   as Trustee,

                                       and

                    UNITED STATES TRUST COMPANY OF NEW YORK,

                           as Securities Intermediary

                           Dated as of March __, 1998

<PAGE>

                                        1

                  SERIES 1998 TRV-C1 SUPPLEMENT, dated as of March __, 1998 (the
"Supplement"), by and between MERRILL LYNCH DEPOSITOR, INC., a Delaware
corporation, as Depositor, UNITED STATES TRUST COMPANY OF NEW YORK, a New York
corporation, as Trustee and as 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
February 20, 1998 (the "Standard Terms" and, together with this Supplement, the
"Trust Agreement"), by and among the Depositor, the Trustee and the 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 the
issuance of the Certificates evidencing undivided interests in the Trust; and

                  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;

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

                  Section 1. Incorporation of Standard Terms. (a) All of the
provisions of the Standard Terms, a copy of which is attached hereto as Exhibit
A, 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.

                  Section 2. 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
(Section 2(b) hereof sets forth terms listed in the Standard

<PAGE>

                                        2

Terms that are not applicable to this Series). Capitalized terms used but not
defined herein shall have the meanings assigned to them in the Standard Terms.

                  "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 that also is specified as a Business Day with respect to the
Underlying Securities.

                  "Certificates": The Certificates issued in a stated amount of
$10 each, entitled to receive on each Distribution Date until the Final
Scheduled Distribution Date, distributions at a rate of 7.75% per annum on the
stated amount of such Certificates.

                  "Closing Date": March __, 1998.

                  "Collection Period": (i) With respect to each June 1
Distribution Date, the period beginning on the day after the December 1
Distribution Date of the previous year and ending on such June 1 Distribution
Date, inclusive, except for the June 1, 1998 Distribution Date, as to which the
Collection Period shall be the period beginning on the Cut-off Date and ending
on such June 1, 1998 Distribution Date, inclusive and (ii) with respect to each
December 1 Distribution Date, the period beginning on the day after the June 1
Distribution Date of that year and ending on such December 1 Distribution Date,
inclusive; provided, however, that clauses (i) and (ii) shall be subject to
Section 9(c) hereof.

                  "Corporate Trust Office": The office of the Trustee located at
114 West 47th Street, 25th Floor, New York, New York 10036, Attention: Corporate
Trust Department; 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 111 Broadway, Lower Level, New
York, New York 10006.

                  "Cut-off Date": ________ __, 1998.

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

                  "Distribution Date": June 1 and December 1 of each year (or if
such date is not a Business Day, the next succeeding Business Day), commencing
on June 1, 1998 and ending on the Final Scheduled Distribution Date.

                  "Distribution Election": Upon notice of the events set forth
in Section 3.04 of the Standard Terms, the Trustee shall exercise the remedy set
forth in clause (i) of such Section.

<PAGE>

                                        3

                  "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 Trust Certificates, and (ii) the rating of any short-term
instruments will be [A-1+] by S&P and [P1] by Moody's; and provided, further,
that any such investment matures no later than the Business Day prior to the
next succeeding Distribution Date.

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

                  "Final Scheduled Distribution Date": December 1, 2036.

                  "Fixed Pass-Through Rate": 7.75% per annum.

                  "Optional Exchange Date": Any Distribution Date.

                  "Ordinary Expenses": The compensation due to the Trustee for
Ordinary Expenses as defined in the Standard Terms, which, with respect to
Ordinary Expenses other than those referred to in clause (iii) of such
definition and other than the costs of converting to EDGAR format the periodic
reports required for the Trust under the Exchange Act, shall be fixed at
[$2,000] per annum (payable in semi-annual installments of [$1,000]).

                  "Pass-Through Rate": The Fixed Pass-Through Rate.

                  "Prepaid Ordinary Expenses": Zero (0).

                  "Prospectus Supplement": The Prospectus Supplement, dated
March __, 1998, relating to the Certificates.

                  "Rating Agency": Moody's and S&P.

                  "Record Date": The day immediately preceding each Distribution
Date.

                  "Series": Public STEERS(R) Trust Certificates, Series 1998
TRV-C1.

                  "Underlying Securities": The 25,000 7 3/4% Trust Preferred
Securities (liquidation value $1,000 per Trust Preferred Security) issued by the
Underlying Securities Issuer, as described in Schedule I hereto.

<PAGE>

                                        4

                  "Underlying Securities Guarantor": Travelers Group Inc., a
Delaware corporation.

                  "Underlying Securities Issuer": Travelers Capital II, a
Delaware statutory business trust.

                  (b) The terms listed below are not applicable to this Series.

                  "Accounting Date"

                  "Administration Account"

                  "Administrative Agent"

                  "Administration Agreement"

                  "Administrative Agent Termination Event"

                  "Advance"

                  "Allocation Ratio"

                  "Calculation Agent"

                  "Credit Support"

                  "Credit Support Instrument"

                  "Credit Support Provider"

                  "Eligible Expense"

                  "Exchange Rate Agent"

                  "Floating Pass-Through Rate"

                  "Letter of Credit"

                  "Limited Guarantor"

                  "Limited Guaranty"

<PAGE>

                                        5

                  "Notional Amount"

                  "Related Assets"

                  "Reserve Account"

                  "Requisite Reserve Amount"

                  "Retained Interest"

                  "Surety Bond"

                  "Swap Agreement"

                  "Swap Counterparty"

                  "Swap Distribution Amount"

                  "Swap Guarantee"

                  "Swap Guarantor"

                  "Swap Receipt Amount"

                  "Swap Termination Payment"

                  Section 3. Designation of Trust and Certificates. (a) The
Trust created hereby shall be known as the "Public STEERS(R) Series 1998 TRV-C1
Trust". The Certificates evidencing certain undivided ownership interests
therein shall be known as the "Public STEERS(R) Trust Certificates, Series 1998
TRV-C1".

                  (b) The Certificates shall be held through the Depository in
book-entry form and shall be substantially in the form attached hereto as
Exhibit B. The Certificates shall be issued in authorized denominations of $10
(the "Authorized Denomination") and integral multiples thereof. Except as
provided in the Standard Terms, the Trust shall not issue additional
Certificates or incur any indebtedness.

                  (c) On each Distribution Date, commencing on June 1, 1998 and
ending on the Final Scheduled Distribution Date (or such earlier date if the
maturity of the Underlying Securities is advanced), the Certificates will be
entitled to receive distributions at a rate of 7.75% per annum on the stated
amount of the Certificates.

<PAGE>

                                        6

                  (d) On the Final Scheduled Distribution Date, the Certificates
will be entitled to a distribution of the stated amount of such Certificates.

                  (e) Any reference to the principal amount of the Certificates
shall be construed as a reference to the stated amount of the Certificates,
unless otherwise indicated.

                  Section 4. Satisfaction of Conditions to Initial Execution and
Delivery of Trust 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 except that clauses (v), (vi) and (vii) of Section 5.12(a) shall
          not apply to this Series.

                  Section 5. Distributions. On each Distribution Date, the
Trustee shall apply solely to the extent of Available Funds in the Certificate
Account as follows:

                  (i) first, to the Trustee, reimbursement for any approved
          Extraordinary Trust Expenses incurred by the Trustee in accordance
          with Section 6(b) hereof and approved by not less than 100% of the
          Certificateholders;

                  (ii) second, to the Certificateholders, distributions accrued
          during the related Collection Period at the rate of 7.75% per annum on
          the stated amount of such Certificates and distributable on such
          Certificates on such Distribution Date;

                  (iii) third, to the Certificateholders, if available, any
          additional distribution owed and paid by the Underlying Securities
          Issuer as a result of a delay in the receipt by the Trustee of any
          payment on the Underlying Securities;

                  (iv) fourth, to the Certificateholders, on the Final Scheduled
          Distribution Date only, a distribution of the stated amount of the
          Certificates;

                  (v) fifth, to the Trustee, the Ordinary Expenses; and

                  (vi) sixth, to the extent there remain Available Funds in the
          Certificate Account, to any creditors of the Trust in satisfaction of
          liabilities thereto.

Subject to Section 9(f) hereof, to the extent Available Funds are insufficient
to make any required distributions due to 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.

<PAGE>

                                        7

                  Section 6. Trustee'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. The Trustee agrees that in the event Ordinary
Expenses are not paid in accordance with such agreement, it shall (i) 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) Extraordinary Trust Expenses shall not be paid out of the
Deposited Assets unless (i) the Trustee is satisfied that it will have adequate
security or indemnity in respect of such costs, expenses and liabilities, and
(ii) all the Certificateholders of Certificates then outstanding have voted to
require the Trustee to incur such Extraordinary Trust Expenses. If Extraordinary
Trust Expenses are not approved unanimously as set forth in clause (ii), such
Extraordinary Trust Expenses shall not be an obligation of the Trust, and the
Trustee shall not file any claim against the Trust therefor notwithstanding
failure of Certificateholders to reimburse the Trustee. In addition, if the
conditions in (i) and (ii) are not both satisfied, the Trustee shall not be
obligated to incur any Extraordinary Trust Expense.

                  Section 7.   Optional Exchange.  [Intentionally Omitted]

                  Section 8. Events of Default. Within 30 days of its receipt of
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 actually known to it. 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 in the
interest of the Certificateholders.

                  Section 9. Miscellaneous. (a) The provisions of Section 4.04,
Advances, of the Standard Terms shall not apply to the Certificates.

                  (b) The Certificateholders shall not be entitled to terminate
the Trust or cause the sale or other disposition of the Underlying Securities.

                  (c) 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 paid to the Certificateholders, proportionately to
the ratio of their respective entitlements to interest payments.

<PAGE>

                                        8

                  (d) The outstanding principal balance of the Certificates
shall not be reduced by the amount of any Realized Loss.

                  (e) The Trust may not engage in any business or activities
other than in connection with, or relating to, the holding, protecting and
preserving of the Deposited Assets and the issuance of the Certificates, 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 or otherwise
incur, assume or guarantee any indebtedness for money borrowed.

                  (f) Notwithstanding anything in the Trust Agreement to the
contrary, the Trustee may be removed upon 60 days prior written notice delivered
by the Holders of Certificates representing the Required Percentage--Removal.

                  (g) Merrill Lynch & Co. 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 C.

                  Section 10. Notices. 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 & Co.
                  World Financial Center
                  New York, NY  10281
                  Attention:        Frank D. Ronan
                  Telephone:        (212) 449-6177
                  Facsimile:        (212) 449-9054

                  If to the Trustee, to:

                  United States Trust Company of New York
                  114 West 47th Street
                  25th Floor
                  New York, New York  10036
                  Attention:        Corporate Trust Department
                                    -- Public STEERS(R), Series 1998 TRV-C1
                  Telephone:        (212) 852-1667
                  Facsimile:        (212) 852-1625

<PAGE>

                                        9

                  If to the Securities Intermediary, to:

                  United States Trust Company of New York
                  114 West 47th Street
                  25th Floor
                  New York, New York  10036
                  Attention:        Corporate Trust Department
                                    -- Public STEERS(R), Series 1998 TRV-C1
                  Telephone:        (212) 852-1667
                  Facsimile:        (212) 852-1625

                  If to the Rating Agencies, to:

                  Moody's Investors Service, Inc.
                  99 Church Street 21W
                  New York, New York  10007
                  Attention:        CBO/CLO Monitoring Department
                  Telephone:        (212) 553-1494
                  Facsimile:        (212) 553-0355

                  and to:

                  Standard & Poor's
                  26 Broadway
                  New York, New York  10004
                  Attention:        Structured Finance Surveillance Group
                  Telephone:        (212) 208-1191
                  Facsimile:        (212) 208-0030

                  Section 11. Governing Law. This Supplement and the
transactions described herein shall be construed in accordance with and governed
by the law of the State of New York.

                  Section 12. 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 13. Termination of the Trust. The Trust shall
terminate upon the earlier of (i) the payment in full at maturity or sale by the
Trust after a payment default on or an acceleration or other early payment of
the Underlying Securities and the distribution in full of all amounts due to the
Certificateholders and (ii) the Final Scheduled Distribution Date. To the extent
that the provisions of this Section 13 conflict with Section 9.01 of the
Standard Terms, the latter shall control.

<PAGE>

                                       10

                  Section 14. Sale of Underlying Securities, Tax Event, Optional
Redemption.

                  (a) In the case of Extraordinary Trust Expenses approved by
100% of the Certificateholders of a given Class, pursuant to Section 6(b)
hereof, the Trustee may sell the Underlying Securities to pay such Extraordinary
Trust Expenses.

                  (b) If the Underlying Securities Guarantor exercises its right
to an Optional Redemption of the Underlying Securities in whole or in part on or
after December 1, 2006, or at any time upon the occurrence a Tax Event, the Call
Terms are as follows:

                  (i) the Certificates of each Holder shall be subject to the
         Call Right to the extent of the ratio of (A) the principal amount of
         the Underlying Securities subject to the Optional Redemption over (B)
         the aggregate Certificate Principal Balance of the Certificates
         Outstanding;

                  (ii) the Call Date shall be the earliest practicable date
         following notice to the Trustee of an Optional Redemption by the
         Underlying Securities Guarantor or the Underlying Securities trustee;
         and

                  (iii) the Call Price for any exercise of the Call Right in
         connection with an Optional Redemption shall be the redemption price
         paid by the Underlying Securities Guarantor in accordance with the
         terms of the Underlying Securities Indenture.

                  Section 15. Amendments. Notwithstanding anything in the Trust
Agreement to the contrary, in addition to the other restrictions on modification
and amendment contained herein, the Trustee shall not enter into any amendment
or modification of the Trust Agreement that would adversely affect in any
material respect the interests of the Certificateholders without the consent of
100% of such Certificateholders; provided, however, that no such amendment or
modification will be permitted if the Trustee has been advised by the Depositor
that such amendment or modification would alter the status of the Trust as a
"grantor trust" for federal income tax purposes. Further, no amendment shall be
permitted that would adversely affect in any material respect the interests of
the Certificateholders without confirmation by each Rating Agency that such
amendment will not result in a downgrading or withdrawal of its rating of the
Certificates. The Trustee may consult with counsel and shall be entitled to rely
upon an Opinion of Counsel for purposes of determining compliance with the
provisions of this Section 15.

                  Section 16. 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

<PAGE>

                                       11

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; 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, (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 Securities or an event that with the passage of time would
become an event of default under the Underlying Securities and with the
unanimous consent of all outstanding Certificateholders, or (iii) 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. The Trustee shall have no liability for any failure to act
resulting from Certificateholders' late return of, or failure to return,
directions requested by the Trustee from the Certificateholders.

                  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 and the Rating
Agencies of such offer promptly. The Trustee must reject any such offer unless
the Trustee is directed by the affirmative vote of the Certificateholders to
accept such offer and the Trustee has received the tax opinion described above.

                  If an event of default under the Underlying Securities
Indenture occurs and is continuing, and if directed by all of the outstanding
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.

<PAGE>

                                       12

                  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:

                                    United States Trust Company of New York,
                                      as Trustee

                                    By: _______________________________
                                        Name:
                                        Title:

                                    United States Trust Company of New York,
                                      as Securities Intermediary

                                    By: _______________________________
                                        Name:
                                        Title:

<PAGE>

                                       I-1

                                                                      SCHEDULE I

             PUBLIC STEERS(R) TRUST CERTIFICATES, SERIES 1998 TRV-C1
                         UNDERLYING SECURITIES SCHEDULE

Underlying Securities:                  7 3/4% Trust Preferred Securities.

Underlying Securities [Indenture]:      The declaration of trust dated as of
                                        September 19, 1996, executed by the
                                        Underlying Securities Guarantor and the
                                        trustees of the Underlying Securities
                                        Issuer.

Underlying Securities Issuer:           Travelers Capital II, a Delaware
                                        statutory business trust.

Underlying Securities Guarantor:        Travelers Group Inc., a Delaware
                                        corporation.

Underlying Securities Trustees:         The Underlying Securities Guarantor and
                                        the trustees of the Underlying
                                        Securities Issuer.

Underlying Securities
CUSIP Number:                           893937AA0.

Underlying Securities
Original Issue Date:                    November 27, 1996.

Underlying Securities
Original Issue Price:                   $1,000.

Underlying Securities
Original Amount Issued:                 400,000 Trust Preferred Securities
                                        (liquidation amount $1,000 per Trust
                                        Preferred Security)

Underlying Securities
Listing:                                Listed on the New York Stock Exchange,
                                        Inc. under the symbol "TRV".

Underlying Securities
Registration:                           333-12439.

Amount of Underlying Securities
not Granted to the Trust:               375,000.

Underlying Securities
Maturity Date:                          December 1, 2036.

<PAGE>

                                       I-2

Underlying Securities
Principal Payment Date:                 December 1, 2036.

Underlying Securities
Distribution Rate:                      7 3/4% per annum.

Underlying Securities
Distribution Dates:                     June 1 and December 1, commencing June
                                        1, 1997.

Underlying Securities
Record Dates:                           One business day prior to the relevant
                                        payment dates.

Optional Redemption:                    On or after December 1, 2006 or at any
                                        time in certain circumstances upon the
                                        occurrence of a Tax Event (as defined in
                                        the Underlying Securities Prospectus),
                                        the Underlying Securities Guarantor may
                                        redeem the Underlying Securities in
                                        whole or in part, from time to time,
                                        on not less than 30 or more than 60
                                        days' prior notice mailed to holders of
                                        the Underlying Securities at the
                                        redemption price set out in the
                                        Underlying Securities Prospectus.

Underlying Securities
Ranking and Guarantee:                  The Underlying Securities are guaranteed
                                        by the Underlying Securities Guarantor,
                                        but are subordinate and junior in right
                                        of payment to all present and future
                                        Senior Indebtedness (as defined in the
                                        Underlying Securities Prospectus) of the
                                        Underlying Securities Guarantor.

Underlying Securities
Collateral:                             None.

Underlying Securities
Amortization:                           None.

Underlying Securities
Accrual Periods:                        Semi-annual.

Underlying Securities
Authorized Denomination
and Specified Currency:                 $1,000

<PAGE>

                                       I-3

Underlying Securities
Rating as of Closing:                   ["Aa3"] by Moody's and ["A+"] by S&P.

Underlying Securities Form:             Book-entry security with DTC.

<PAGE>

                                                                       EXHIBIT A

                       Standard Terms for Trust Agreements

                              (begins on next page)

<PAGE>

                                                                       EXHIBIT B

                               Form of Certificate

                              (begins on next page)

<PAGE>

XXXXXXXXXXXX
                                TRUST CERTIFICATE

No. ________                      $[          ]              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 RIGHT TO
PRINCIPAL PAYMENTS IN RESPECT OF THE UNDERLYING SECURITIES. 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 DISTRIBUTIONS
HEREUNDER.

                    PUBLIC STEERS(R) SERIES 1998 TRV-C1 TRUST

                      PUBLIC STEERS(R) TRUST CERTIFICATES,

<PAGE>

                                        2

                               SERIES 1998 TRV-C1

                             [ ] TRUST CERTIFICATES

evidencing a fractional undivided beneficial ownership interest in the Trust, as
defined below, the property of which consists principally of 25,000 7 3/4% Trust
Preferred Securities (the "Underlying Securities") of Travelers Capital II, a
statutory business trust formed under Delaware law (the "Underlying Securities
Issuer"), 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 Public STEERS(R)
Series 1998 TRV-C1 Trust formed by the Depositor. Under the Trust Agreement, the
Certificates are entitled to receive on each Distribution Date until December 1,
2036, the distributions, if any, received on the Underlying Securities, which
will represent distributions at a rate of 7 3/4% per annum on the stated amount
of the Certificates.

                  The Trust was created pursuant to a Standard Terms for Trust
Agreements, dated as of February 20, 1998 (the "Standard Terms"), among the
Depositor, United States Trust Company of New York, a New York corporation, not
in its individual capacity but solely as Trustee (the "Trustee"), and United
States Trust Company of New York, a New York corporation, not in its individual
capacity but solely as securities intermediary (the "Securities Intermediary"),
as supplemented by the Public STEERS(R) Series 1998 TRV-C1 Supplement, dated as
of March [__], 1998 (the "Supplement" and, together with the Standard Terms, the
"Trust Agreement"), among the Depositor, 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 "Public STEERS(R) Trust Certificates, Series 1998 TRV-C1,
Trust Certificates" (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. 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 Date,
and the other Deposited Assets, all as more fully specified in the Trust
Agreement.

<PAGE>

                                        3

                  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.

<PAGE>

                                        4

                  IN WITNESS WHEREOF, the Trustee has caused this Certificate to
be duly executed as of the date set forth below.

                                             UNITED STATES TRUST COMPANY OF NEW
                                             YORK, not in its individual
                                             capacity but solely as Trustee

                                             By:  _________________________
                                                   Authorized Signatory

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

                  This is one of the Certificates described in the Trust
Agreement referred to herein.

                                             UNITED STATES TRUST COMPANY OF NEW
                                             YORK, not in its individual
                                             capacity but solely as Trustee

Dated:                                       By:  _________________________
                                                   Authorized Signatory

<PAGE>

                                        5

                            (REVERSE OF CERTIFICATE)

                  The Certificates are limited in right of distribution to
certain payments and collections respecting the Underlying Securities, 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 distributions
hereunder.

                  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 662/3% 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.

                  The Certificates are issuable in fully registered form only in
minimum original stated amounts of $10 and integral multiples thereof.

                  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 amount will be issued to the
designated transferee or transferees. The initial Certificate Registrar
appointed under the Trust Agreement is United States Trust Company of New York.

                  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 of 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,

<PAGE>

                                        6

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
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
of the Deposited Assets and the issuance of the Certificates, 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 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 a payment default on or an acceleration or
other early payment of the Underlying Securities and the distribution in full of
all amounts due in respect of the Certificates and (ii) December 1, 2036.

                  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.

<PAGE>

                                        7

                                   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 Guaranteed:

                                             _____________________________*

* 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).

<PAGE>

                                        8

                            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:  ______________________________

<PAGE>

                                                                       EXHIBIT C

                             Market Agent Agreement

                              (begins on next page)
<PAGE>
                             MARKET AGENT AGREEMENT

                  MARKET AGENT AGREEMENT, dated as of March __, 1998 (the
"Agreement"), by and between Merrill Lynch & Co. ("Merrill Lynch & Co.") and the
Public STEERS(R) Series 1998 TRV-C1 Trust (the "Trust"), a New York trust
created under the Standard Terms for Trust Agreements, dated as of the date
hereof (the "Standard Terms"), among Merrill Lynch Depositor, Inc., as depositor
(the "Depositor"), the United States Trust Company of New York, as trustee (the
"Trustee"), and the United States Trust Company of New York, as securities
intermediary (the "Securities Intermediary"), as amended and supplemented by the
Series Supplement, dated as of the date hereof, among the Depositor, the Trustee
and the 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 & Co. to
render certain services to the Trust in the manner and on the terms hereinafter
set forth;

                  WHEREAS, Merrill Lynch & Co. 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 & Co. 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 & Co. and the Trust hereby agree
as follows:

                  Section 1. Duties of the Market Agent. The Trust hereby
employs Merrill Lynch & Co. 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 & Co.
hereby accepts such employment and agrees during the term of the Certificates to
render such services and to

                                        1

<PAGE>

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 & Co. The Depositor
shall pay Merrill Lynch & Co. a fee as shall be separately agreed between the
Depositor and Merrill Lynch & Co. It shall be the sole responsibility of the
Depositor to pay such fee and the Trust shall have no obligation to compensate
Merrill Lynch & Co. for the services it renders pursuant to the terms of this
Market Agent Agreement, except that the Trust shall pay Merrill Lynch & Co. 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 & Co.'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 & Co.:   Merrill Lynch & Co.
                                      World Financial Center
                                      New York, New York  10281
                                      Attention:  Frank D. Ronan
                                      Facsimile:  (212) 449-9054
                                      Telephone confirmation no.: (212) 449-6177

                                        2

<PAGE>

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

                  Section 8. Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York applicable to agreements made
and to be performed in such state (without reference to choice of law doctrine).

                  Section 9. Entire Agreement. This Agreement embodies the
entire agreement and understanding between Merrill Lynch & Co. and the Trust and
supersedes any and all prior agreements and understandings between Merrill Lynch
& Co. 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.

                                        3

<PAGE>

                  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 & CO.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                      UNITED STATES TRUST COMPANY OF
                                      NEW YORK, not in its individual capacity
                                      but as Trustee

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                        4

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