Document:

Merrill Lynch & Co., Inc. Long-Term Incentive Compensation Plan

 Exhibit 10(aaa) 
  
 MERRILL LYNCH & CO., INC. 
 LONG-TERM INCENTIVE COMPENSATION PLAN 
 (amended as of January 1, 2009) 

 MERRILL LYNCH & CO., INC. 
 LONG-TERM INCENTIVE COMPENSATION PLAN 
 ARTICLE I - GENERAL 
 Section 1.1     Purpose. 
 The purposes of the Long-Term Incentive
Compensation Plan (the “Plan”) are: (a) to enhance the growth and profitability of Merrill Lynch & Co., Inc., a Delaware corporation (“ML & Co.”), and its subsidiaries by providing the
incentive of long-term rewards to key employees who are capable of having a significant impact on the performance of ML & Co. and its subsidiaries; (b) to attract and retain employees of outstanding competence and ability; (c) to
encourage long-term stock ownership by employees; and (d) to further the identity of interests of such employees with those of stockholders of ML & Co. 
 Section 1.2     Definitions. 
 For the
purpose of the Plan, the following terms shall have the meanings indicated: 
 (a)     “Board of
Directors” or “Board” shall mean the Board of Directors of ML & Co. 
 (b)     “Code” shall mean the Internal Revenue Code of l986, as amended, including any successor law thereto. 
 (c)     “Company” shall mean ML & Co. and any corporation, partnership, or other organization of which ML & Co. owns or controls, directly or
indirectly, not less than 50% of the total combined voting power of all classes of stock or other equity interests. For purposes of this Plan, the terms “ML & Co.” and “Company” shall include any successor thereto.

 (d)     “Committee” shall mean the Management Development and Compensation
Committee of the Board of Directors, or its functional successor or any other Board committee that has been designated by the Board of Directors to administer the Plan, or the Board of Directors. The Committee shall be constituted so that at all
relevant times it meets the then applicable requirements of Rule 16b-3 (or its successor) promulgated under the Securities Exchange Act of 1934, as amended. 
 (e)     “Common Stock” shall mean the Common Stock, par value $1.33 1/3 per share, of ML & Co. and a “share of Common Stock” shall
mean one share of Common Stock together with, for so long as Rights are outstanding, one Right (whether trading with the Common Stock or separately). 
 (f)     “Disability,” unless otherwise provided herein, shall mean any physical or mental condition that, in the opinion of the Head of Human Resources of Merrill
Lynch & Co., Inc. (or his or her functional successor), renders an employee incapable of engaging in any employment or occupation for which he is suited by reason of education or training. 
  

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 (g)      “Fair Market Value” of shares of
Common Stock on any given date(s) shall be: (a) the mean of the high and low sales prices on the New York Stock Exchange—Composite Tape of such shares on the date(s) in question, or, if the shares of Common Stock shall not have been traded
on any such date(s), the mean of the high and low sales prices on the New York Stock Exchange—Composite Tape on the first day prior thereto on which the shares of Common Stock were so traded; or (b) if the shares of Common Stock are not
traded on the New York Stock Exchange, such other amount as may be determined by the Committee by any fair and reasonable means. 
           “Fair Market Value” of any Other ML & Co. Security on any given date(s) shall be: (a) the mean of the high and low sales prices of such Other
ML & Co. Security on the principal securities exchange on which such Security is traded on the date(s) in question or, if such Other ML & Co. Security shall not have been traded on any such exchange on such date(s), the mean of the
high and low sales prices on such exchange on the first day prior thereto on which such Other ML & Co. Security was so traded; or (b) if the Other ML & Co. Security is not publicly traded on a securities exchange, such other
amount as may be determined by the Committee by any fair and reasonable means. 
 (h)      “Junior Preferred Stock” shall mean ML & Co.’s Series A Junior Preferred Stock, par value $1.00 per share. 
 (i)      “Key Employee” means any employee who has been designated by ML & Co. as
one of the 50 highest paid employees (based on W-2 income) as of the most recently completed fiscal year. 
 (j)      “Other ML & Co. Security” shall mean a financial instrument issued pursuant to Article VI. 
 (k)     “Participant” shall mean any employee who has met the eligibility requirements set forth in Section 1.5 hereof and to whom a grant has been made and
is outstanding under the Plan. 
 (l)      “Performance Period” shall mean, in
relation to Performance Shares or Performance Units, any period, for which performance objectives have been established, of not less than one nor more than ten consecutive ML & Co. fiscal years, commencing with the first day of the fiscal
year in which such Performance Shares or Performance Units were granted. 
 (m)     “Performance Share” shall mean a right, granted to a Participant pursuant to Article II, that will be paid out as a share of Common Stock. 
 (n)      “Performance Unit” shall mean a right, granted to a Participant pursuant to Article
II, to receive an amount equal to the Fair Market Value of one share of Common Stock in cash. 
 (o)      “Restricted Period” shall mean, (i) in relation to shares of Common Stock receivable in payment for Performance Shares, the period beginning at the end of the applicable
Performance Period during which restrictions on the transferability of such shares of Common Stock are in effect; and (ii) in relation to Restricted Shares or Restricted Units, the period

  

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beginning with the first day of the month in which Restricted Shares or Restricted Units are granted, during which restrictions on the transferability of such Restricted Shares or Restricted
Units are in effect, which shall not be of shorter duration than the Vesting Period applicable to the same Restricted Shares or Restricted Units. 
 (p)     “Restricted Share” shall mean a share of Common Stock, granted to a Participant pursuant to Article III, subject to the restrictions set forth in
Section 3.3 hereof. 
 (q)     “Restricted Unit” shall mean the right, granted to
a Participant pursuant to Article III, as provided by the Committee at the time of grant to receive either: (1) an amount in cash equal to the Fair Market Value of one share of Common Stock, or (2) one share of Common Stock. 
 (r)     “Retirement” shall mean the cessation of employment with the Company (1) on or after
(A) having completed at least five (5) years of service and (B) reaching any age, that, when added to service with the Company (in each case, expressed as completed years and completed months), equals at least 45; or (2) as the
result of (A) becoming employed by an unconsolidated affiliate of the Company (as specified by the Head of Human Resources) or (B) being a part of a divestiture or spin-off designated by the Head of Human Resources as eligible, provided
that, in each case, termination of employment by the Company for cause, as defined in the Company’s grant document, shall not qualify as Retirement. 
 (s)     “Rights” means the Rights to Purchase Units of Junior Preferred Stock issued pursuant to the Rights Agreement. 
 (t)     “Rights Agreement” means the Rights Agreement dated as of December 16, 1987 between
ML & Co. and Manufacturers Hanover Trust Company, Rights Agent, as amended from time to time. 
 (w)    “Stock Appreciation Right” shall mean a right, granted to a Participant pursuant to Article V, to receive, in cash or shares of Common Stock, an amount equal to the increase in Fair Market Value,
over a specified period of time, of a specified number of shares of Common Stock. 
 (x)     “Stock Option” shall mean a right, granted to a Participant pursuant to Article IV, to purchase, before a specified date and at a specified price, a specified number of shares of Common
Stock. Stock Options may be “Incentive Stock Options,” which meet the definition of such in Section 422A of the Code, or “Nonqualified Stock Options,” which do not meet such definition. 
 (y)     “Vesting Period” shall mean, in relation to Restricted Shares or Restricted Units, any
period of not less than six (6) months beginning with the first day of the month in which the grant of the applicable Restricted Shares or Restricted Units is effective, during which such Restricted Shares or Restricted Units may be forfeited
if the Participant terminates employment. 
  

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 Section 1.3    Administration. 
 (a)     The Plan shall be administered by the Committee. Subject to the provisions of the Plan, the Committee shall
have sole and complete authority to: (i) subject to Section 1.5 hereof, select Participants after receiving the recommendations of the management of the Company; (ii) determine the number of Performance Shares, Performance Units,
Restricted Shares, Restricted Units, Stock Appreciation Rights, or Other ML & Co. Securities subject to each grant; (iii) determine the number of shares of Common Stock subject to each Stock Option grant; (iv) determine the time
or times when grants are to be made or are to be effective; (v) determine the terms and conditions subject to which grants may be made; (vi) extend the term of any Stock Option; (vii) provide at the time of grant that all or any
portion of any Stock Option shall be canceled upon the Participant’s exercise of any Stock Appreciation Rights; (viii) prescribe the form or forms of the instruments evidencing any grants made hereunder, provided that such forms are
consistent with the Plan; (ix) adopt, amend, and rescind such rules and regulations as, in its opinion, may be advisable for the administration of the Plan; (x) construe and interpret the Plan and all rules, regulations, and instruments
utilized thereunder; and (xi) make all determinations deemed advisable or necessary for the administration of the Plan. All determinations by the Committee shall be final and binding. 
 (b)     The Committee shall act in accordance with the procedures established for a Committee under ML &
Co.’s Certificate of Incorporation and By-Laws or under any resolution of the Board. 
 Section 1.4    Shares Subject to the Plan. 
 The total number of shares of
Common Stock that may be distributed under the Plan shall be 320,000,000 (whether granted as Restricted Shares or reserved for distribution upon grant of Restricted Units, Performance Shares, Stock Options, Stock Appreciation Rights (to the extent
they may be paid out in Common Stock), or Other ML & Co. Securities), subject to adjustment as provided in Article VII hereof. Shares of Common Stock distributed under the Plan may be treasury shares or authorized but unissued shares. To
the extent that awards of Other ML & Co. Securities are convertible into Common Stock or are otherwise equity securities (or convertible into equity securities) of ML & Co., they shall be subject to the limitation expressed above
on the number of shares of Common Stock that can be awarded under the Plan. Any shares of Common Stock that have been granted as Restricted Shares or that have been reserved for distribution in payment for Restricted Units or Performance Shares but
are later forfeited or for any other reason are not payable under the Plan may again be made the subject of grants under the Plan. If any Stock Option, Stock Appreciation Right, or Other ML & Co. Security granted under the Plan expires or
terminates, or any Restricted Unit or Stock Appreciation Right is paid out in cash, the underlying shares of Common Stock may again be made the subject of grants under the Plan. Units payable in cash that are later forfeited or for any reason are
not payable under the Plan may again be the subject of grants under the Plan. Effective January 1, 2009, no further grants shall be made under the Plan. 
  

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 Section 1.5    Eligibility and Participation.

 Participation in the Plan shall be limited to officers (who may also be members of the Board of Directors) and other
salaried, key employees of the Company or any affiliate of the Company designated by the Committee. 
  

					
	ARTICLE II	 	-	 	PROVISIONS APPLICABLE TO PERFORMANCE SHARES AND PERFORMANCE UNITS.

 Section 2.1    Performance Periods and Restricted
Periods. 
 The Committee shall establish Performance Periods applicable to Performance Shares and Performance Units and
may establish Restricted Periods applicable to Performance Shares, at its discretion. Each such Performance Period shall commence with the beginning of a fiscal year in which the Performance Shares and Performance Units are granted and have a
duration of not less than one nor more than ten consecutive fiscal years. Each such Restricted Period shall commence with the end of the Performance Period established for such Performance Shares and shall end on such date as may be determined by
the Committee at the time of grant. There shall be no limitation on the number of Performance Periods or Restricted Periods established by the Committee, and more than one Performance Period may encompass the same fiscal year. 
 Section 2.2    Performance Objectives. 
 At any time before or during a Performance Period, the Committee shall establish one or more performance objectives for such Performance
Period, provided that such performance objectives shall be established prior to the grant of any Performance Shares or Performance Units with respect to such Period. Performance objectives shall be based on one or more measures such as return on
stockholders’ equity, earnings, or any other standard deemed relevant by the Committee, measured internally or relative to other organizations and before or after extraordinary items, as may be determined by the Committee; provided,
however, that any such measure shall include all accruals for grants made under the Plan and for all other employee benefit plans of the Company. The Committee may, in its discretion, establish performance objectives for the Company as a
whole or for only that part of the Company in which a given Participant is involved, or a combination thereof. In establishing the performance objective or objectives for a Performance Period, the Committee shall determine both a minimum performance
level, below which no Performance Shares or Performance Units shall be payable, and a full performance level, at or above which 100% of the Performance Shares or Performance Units shall be payable. In addition, the Committee may, in its discretion,
establish intermediate levels at which given proportions of the Performance Shares or Performance Units shall be payable. Such performance objectives shall not thereafter be changed except as set forth in Sections 2.5 and 2.6 and Article VII hereof.

 Section 2.3    Grants of Performance Shares and Performance Units. 
 The Committee may select employees to become Participants subject to the provisions of Section 1.5 hereof and grant Performance Shares
or Performance Units to such Participants at any time prior to or during the first fiscal year of a Performance Period. Grants shall be deemed to have been made as of the beginning of the first fiscal year of the Performance Period. Before

  

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making grants, the Committee must receive the recommendations of the management of the Company, which will take into account such factors as level of responsibility, current and past performance,
and performance potential. Subject to the provisions of Section 2.7 hereof, a grant of Performance Shares or Performance Units shall be effective for the entire applicable Performance Period and may not be revoked. Each grant to a Participant
shall be evidenced by a written instrument stating the number of Performance Shares or Performance Units granted, the Performance Period, the performance objective or objectives, the proportion of payments for performance between the minimum and
full performance levels, if any, the Restricted Periods and restrictions applicable to shares of Common Stock receivable in payment for Performance Shares, and any other terms, conditions, and rights with respect to such grant. At the time of any
grant of Performance Shares, there shall be reserved out of the number of shares of Common Stock authorized for distribution under the Plan a number of shares equal to the number of Performance Shares so granted. 
 Section 2.4    Rights and Benefits During Performance Period. 
 The Committee may provide that, during a Performance Period, a Participant shall be paid cash amounts, with respect to each Performance Share
or Performance Unit held by such Participant, in the same manner, at the same time, and in the same amount paid, as a dividend on a share of Common Stock. 
 Section 2.5    Adjustment with respect to Performance Shares and Performance Units. 
 Any other provision of the Plan to the contrary notwithstanding, the Committee may at any time adjust performance objectives (up or down) and minimum or full performance levels (and any intermediate
levels and proportion of payments related thereto), adjust the way performance objectives are measured, or shorten any Performance Period or Restricted Period, if it determines that conditions, including but not limited to, changes in the economy,
changes in competitive conditions, changes in laws or governmental regulations, changes in generally accepted accounting principles, changes in the Company’s accounting policies, acquisitions or dispositions, or the occurrence of other unusual,
unforeseen, or extraordinary events, so warrant. 
 Section 2.6    Payment of Performance Shares
and Performance Units. 
 Within 90 days after the end of any Performance Period, the Company shall determine the extent
to which performance objectives established by the Committee pursuant to Section 2.2 hereof for such Performance Period have been met during such Performance Period and the resultant extent to which Performance Shares or Performance Units
granted for such Performance Period are payable. Payment for Performance Shares and Performance Units shall be as follows: 
  

	 	(a)	Performance Shares: 

 (i)     If a Restricted Period has been established in relation to the Performance Shares: 
  

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  (A)     At the end of the applicable Performance
Period, one or more certificates representing the number of shares of Common Stock equal to the number of Performance Shares payable shall be held by the Company for the employee until the end of the Restricted Period. 
  (B)     At the end of the applicable Restricted Period, all restrictions applicable to the shares of
Common Stock, and other securities or property received with respect to such shares, held by the Company for the accounts of recipients of Performance Shares granted in relation to such Restricted Period shall lapse, and one or more stock
certificates for such shares of Common Stock and securities, free of the restrictions, shall be delivered in book-entry or certificated form to the Participant, or such shares and securities shall be credited to a brokerage account if the
Participant so directs, as soon as practicable but in no event later than 45 days after the end of the Restricted Period, provided that, in the event that the end of the Restricted Period is fewer than 45 days prior to the end of the Company’s
fiscal year, the payment of the shares shall be made in the first 45 days of the next succeeding fiscal year. 
  (ii)      If a Restricted Period has not been established in relation to the Performance Shares, at the end of the applicable Performance Period, one or more stock certificates representing the
number of shares of Common Stock equal to the number of Performance Shares payable, free of restrictions, shall be registered in the name of the Participant and delivered in book-entry or certificated form to the Participant, or such shares shall be
credited to a brokerage account if the Participant so directs , as soon as practicable but in no event later than 45 days after the end of the Restricted Period, provided that, in the event that the end of the Restricted Period is fewer than 45 days
prior to the end of the Company’s fiscal year, the payment of the shares shall be made in the first 45 days of the next succeeding fiscal year. 
 (b)      Performance Units: At the end of the applicable Performance Period, a Participant shall be paid a cash amount equal to the number of Performance Units
payable, times the mean of the Fair Market Value of Common Stock during the second calendar month following the end of the Performance Period, as soon as practicable but in no event later than 45 days after the end of the Performance Period,
provided that, in the event that the end of the Performance Period is fewer than 45 days prior to the end of the Company’s fiscal year, the payment shall be made in the first 45 days of the next succeeding fiscal year, unless some other payment
date or Restricted Period is established by the Committee at the time of grant, in which case, payment to the Participant shall be made as soon as practicable but in no event later than 45 days after the applicable date, provided that, in the event
that the applicable date is fewer than 45 days prior to the end of the Company’s fiscal year, the payment shall be made in the first 45 days of next succeeding fiscal year. 
 Section 2.7    Termination of Employment. 
 Section 2.7    Termination of Employment. 
   (a)       Prior to the end of a Performance Period: 
  

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 (i)      Death: If a Participant ceases to be an
employee of the Company prior to the end of a Performance Period by reason of death, any outstanding Performance Shares or Performance Units with respect to such Participant shall become payable and be paid to such Participant’s beneficiary or
estate, as the case may be, as soon as practicable (subject to receipt of proper documentation) in the manner set forth in Sections 2.6(a)(ii) and 2.6(b) hereof, respectively. In determining the extent to which performance objectives established for
such Performance Period have been met and the resultant extent to which Performance Shares or Performance Units are payable, the Performance Period shall be deemed to end as of the end of the fiscal year in which the Participant’s death
occurred, payment shall be made as soon as practicable (but in no event later than 45 days) following the end of such fiscal year. 
 (iii)    Other Terminations: If a Participant ceases to be an employee prior to the end of a Performance Period for any reason other than death, the Participant shall immediately forfeit all Performance Shares and
Performance Units previously granted under the Plan and all right to receive any payment for such Performance Shares and Performance Units. The Committee may, however, direct payment in accordance with the provisions of Section 2.6 hereof for a
number of Performance Shares or Performance Units, as it may determine, granted under the Plan to a Participant whose employment has so terminated (but not exceeding the number of Performance Shares or Performance Units that could have been payable
had the Participant remained an employee) if it finds that the circumstances in the particular case so warrant. For purposes of the preceding sentence, the Performance Period over which performance objectives shall be measured shall be deemed to end
as of the end of the fiscal year in which termination occurred, and payment shall be made as soon as practicable (but in no event later than 45 days) following the end of such fiscal year. 
 (b)     After the end of a Performance Period but prior to the end of a Restricted Period: 
 (i)     Death, Disability, or Retirement: If a Participant ceases to be an employee of the Company by
reason of death or in the case of the Disability or Retirement of a Participant, the Restricted Period shall be deemed to have ended (subject, in the case of Retirement, to receipt of appropriate documentation from the Participant regarding the
Participant’s competitive status) and shares held by the Company shall be paid as soon as practicable following the end of the Restricted Period, in the manner set forth in Section 2.6(a)(i)(B). 
 (ii)    Other Terminations: Terminations of employment for any reason other than death after the end of a
Performance Period but prior to the end of a Restricted Period shall not have any effect on the Restricted Period, unless the Committee, in its sole discretion, finds that the circumstances so warrant and determines that the Restricted Period shall
end on an earlier date as determined by the Committee and that shares held by the Company shall be paid as soon as practicable following such earlier date in the manner set forth in Section 2.6(a)(i)(B). 
 (c)     Except as otherwise provided in this Section 2.7, termination of employment after the end of a
Performance Period but before the payment of Performance Shares or Performance Units relating to such Performance Period shall not affect the amount, if any, to be paid pursuant to Section 2.6 hereof. Approved leaves of absence of one year or
less shall not be deemed to be terminations of employment under this Section 2.7. Leaves of absence of more than one year will

  

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be deemed to be terminations of employment under this Section 2.7, unless the Committee determines otherwise. 
  

					
	ARTICLE III	 	-	 	PROVISIONS APPLICABLE TO RESTRICTED SHARES AND RESTRICTED UNITS.

 Section 3.1    Vesting Periods and Restricted
Periods. 
 The Committee shall establish one or more Vesting Periods applicable to Restricted Shares and Restricted
Units and one or more Restricted Periods applicable to Restricted Shares and Restricted Units, at its discretion. Each such Vesting Period shall have a duration of not less than six (6) months, measured from the first day of the month in which
the grant of the applicable Restricted Shares or Restricted Units is effective. Each such Restricted Period shall have a duration of six (6) or more consecutive months, measured from the first day of the month in which the grant of the
applicable Restricted Shares or Restricted Unit is effective, but in no event shall any Restricted Period be of shorter duration than the Vesting Period applicable to such Restricted Share or Restricted Unit. 
 Section 3.2    Grants of Restricted Shares and Restricted Units. 
 The Committee may select employees to become Participants (subject to the provisions of Section 1.5 hereof) and grant Restricted Shares
or Restricted Units to such Participants at any time. Before making grants, the Committee must receive the recommendations of the management of the Company, which will take into account such factors as level of responsibility, current and past
performance, and performance potential. 
 Subject to the provisions of Section 3.7 hereof, a grant of Restricted Shares or
Restricted Units shall be effective for the entire applicable Vesting and Restricted Periods and may not be revoked. Each grant to a Participant shall be evidenced by a written instrument stating the number of Restricted Shares or Restricted Units
granted, the Vesting Period, the Restricted Period, the restrictions applicable to such Restricted Shares or Restricted Units, the nature and terms of payment of consideration, if any, and the consequences of forfeiture that will apply to such
Restricted Shares and Restricted Units, and any other terms, conditions, and rights with respect to such grant. 
 Section 3.3    Rights and Restrictions Governing Restricted Shares. 
 At the
time of grant of Restricted Shares, subject to the receipt by the Company of any applicable consideration for such Restricted Shares, one or more certificates representing the appropriate number of shares of Common Stock granted to a Participant
shall be registered either in his or her name or for his or her benefit either individually or collectively with others, but shall be held by the Company for the account of the Participant. The Participant shall have all rights of a holder as to
such shares of Common Stock, including the right to receive dividends, to exercise Rights, and to vote such Common Stock and any securities issued upon exercise of Rights, subject to the following restrictions: (a) the Participant shall not be
entitled to delivery of certificates representing such shares of Common Stock and any other such securities until the expiration of the Restricted Period; (b) except as provided in Section 3.9, none of the Restricted Shares may be sold,
transferred, assigned, pledged, or otherwise encumbered or disposed of

  

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during the Restricted Period; and (c) all of the Restricted Shares shall be forfeited and all rights of the Participant to such Restricted Shares shall terminate without further obligation
on the part of the Company unless the Participant remains in the continuous employment of the Company for the entire Vesting Period in relation to which such Restricted Shares were granted, except as otherwise provided in by Section 3.7 hereof.
Any shares of Common Stock or other securities or property received with respect to such shares shall be subject to the same restrictions as such Restricted Shares. 
 Section 3.4     Rights Governing Restricted Units. 
 During the Vesting Period, or, if longer, the Restricted Period, for Restricted Units, a Participant may be paid, with respect to each such Restricted Unit, cash amounts in the same manner, at the same
time, and in the same amount paid, as a dividend on a share of Common Stock. Except as otherwise provided in Section 3.7 hereof, the Restricted Units shall be forfeited and all rights of the Participant to the Restricted Units shall terminate
without further obligation on the part of the Company unless the Participant remains in the continuous employment of the Company for the entire Vesting Period. 
 Section 3.5     Adjustment with respect to Restricted Shares and Restricted Units. 
 Any other provision of the Plan to the contrary notwithstanding, the Committee may at any time shorten any Vesting Period or Restricted Period, if it determines that conditions, including but not limited
to, changes in the economy, changes in competitive conditions, changes in laws or governmental regulations, changes in generally accepted accounting principles, changes in the Company’s accounting policies, acquisitions or dispositions, or the
occurrence of other unusual, unforeseen, or extraordinary events, so warrant. 
 Section 3.6     Payment of Restricted Shares and Restricted Units. 
 (a)     Restricted Shares: At the end of the Vesting Period (or if longer, the Restricted Period), all restrictions contained in the grant of Restricted Shares and in the Plan shall lapse, and the appropriate
number of shares of Common Stock (net of shares withheld at the end of the Vesting Period under Section 3.6(c)), shall be delivered to the Participant or his or her beneficiary or estate, as the case may be, free of restrictions, in book-entry
or certificated form or credited to a brokerage account as the Participant or his or her beneficiary or estate, as the case may be, so directs. 
 (b)     Restricted Units: At the end of the Vesting Period (or, if longer, the Restricted Period) applicable to a Participant’s Restricted Units, there shall be paid
to the Participant, or his or her beneficiary or estate, as the case may be, either: (1) an amount in cash equal to the Fair Market Value of one share of Common Stock on the last trading day of the Vesting Period (or, if longer, the Restricted
Period), or (2) one share of Common Stock for each Restricted Unit, net of shares withheld by the Company pursuant to Section 3.6(c), free of restrictions. For Restricted Units paid in Common Stock, the appropriate number of shares shall
be delivered to the Participant or his or her beneficiary or estate, as the case may be, in book-entry or certificated form or credited to a brokerage account as the Participant or his or her beneficiary or estate, as the case may be, so directs, as
soon as practicable but in no event later than 30 days after the end

  

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of the Vesting or Restricted Period, provided that, in the event that the end of such period is fewer than 10 days prior to the end of the Company’s fiscal year, the payment of the shares
shall be made in the first 10 days of the next succeeding fiscal year. 
 Section 3.7     Termination of Employment. 
 (a)     Prior to the end of a Vesting Period: 
           (i)     Death: If a Participant ceases to be an employee of the Company prior to the end of a Vesting Period by reason of death, all grants of
Restricted Shares and Restricted Units granted to such Participant are immediately payable in accordance with their terms (but in no event later than 45 days after receipt of appropriate documentation). 
           (ii)     Disability or Retirement: The
Disability or Retirement of a Participant shall not constitute a termination of employment for purposes of this Article III and such Participant shall not forfeit any Restricted Shares or Restricted Units held by him or her, provided that, during
the remainder of the applicable Vesting Period, such Participant does not engage in or assist any business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company. A Participant who does
engage in or assist any business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company shall be deemed to have terminated employment subject to the receipt of appropriate documentation
from the Participant with respect to the Participant’s competitive status. 
           (iii)     Other Terminations: Except as otherwise provided herein, if a Participant ceases to be an employee prior to the end of a Vesting Period
for any reason other than death, the Participant shall immediately forfeit all Restricted Shares and Restricted Units previously granted, unless the Committee, in its sole discretion, finds that the circumstances in the particular case so warrant
and allows a Participant whose employment has so terminated to retain any or all of the Restricted Shares or Restricted Units granted to such Participant. Notwithstanding the foregoing, with respect to any Participant holding unvested Restricted
Shares and/or Restricted Units (x) whose employment is terminated because of a reduction in staff (coded under termination code number 251 or such other code as may be equivalent to or substituted for termination code number 251), and
(y) who delivers to the Company and complies with a release of claims he or she may have against the Company or any of its subsidiaries, which will include a prohibition on solicitation of the Company’s employees and such other
restrictions as the Company may impose (a “Release”), then notwithstanding such termination, Restricted Shares and Restricted Units granted to such Participant shall continue to vest during the Vesting Period and be restricted during the
Restricted Period for such grant; provided, however, that in the event of the Employee’s death during the relevant Vesting or Restricted Periods the treatment of Restricted Shares and Restricted Units will be determined in
accordance with the provisions of Section 3.7(a)(i); 
 (b)     After the end of a Vesting Period
but prior to the end of a Restricted Period: 
           (i)     Death, Disability, or Retirement: If a Participant ceases to be an employee of the Company by reason of death, or in the case of the
Disability or Retirement of a Participant,

  

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prior to the end of a Restricted Period, all Restricted Shares and Restricted Units granted to such Participant are immediately payable in the manner set forth in Section 3.6. 
           (ii)        Other Terminations:
Terminations of employment for any reason other than death after the end of a Vesting Period but prior to the end of a Restricted Period shall not have any effect on the Restricted Period, unless (A) the Restricted Period relates to Restricted
Units that have been further deferred in which case the Restricted Units shall be paid to the Participant, or (B) the Committee, in its sole discretion, finds that the circumstances so warrant and determines that the Restricted Period shall end
on an earlier date as determined by the Committee and, in each case, the applicable Restricted Shares or Restricted Units shall be paid as soon as practicable in the manner set forth in Section 3.6. 
 Approved leaves of absence of one year or less shall not be deemed to be terminations of employment under this Section 3.7. Leaves of absence of more
than one year will be deemed to be terminations of employment under this Section 3.7, unless the Committee determines otherwise. 
 Section 3.8    Limitations on Transfer of Restricted Shares and Restricted Units. 
 Restricted Shares and Restricted Units are not transferable by a Participant except by will or the laws of descent and distribution or bequest; provided, however, that the Committee shall have the authority, in its discretion, to grant (or
to authorize) that Restricted Shares and Restricted Units may be transferred by the Participant during his or her lifetime to any member of his or her immediate family or to a trust, limited liability corporation, family limited partnership or other
equivalent vehicle, established for the exclusive benefit of one or more members of his or her immediate family. A transfer of Restricted Shares or Restricted units will not be permitted unless the Company has received evidence, to its satisfaction,
that such transfer does not trigger income or social security taxes or withholding requirements. A transfer of Restricted Shares or Restricted Units may only be effected by the Company at the written request of a Participant and shall become
effective only when recorded in the Company’s record of outstanding Restricted Shares or Restricted Units. In the event Restricted Shares or Restricted Units are transferred, such Restricted Shares or Restricted Units may not be subsequently
transferred by the transferee except by will or the laws of descent and distribution. In the event Restricted Shares or Restricted Units are transferred, such Restricted Shares or Restricted Units shall continue to be governed by and subject to the
terms and limitations of the Plan and the relevant grant and remain subject to forfeiture in the event the Participant terminates his or her employment during the Vesting Period as if no transfer had taken place. As used in this Section,
“immediate family” shall mean, with respect to any person, any child, stepchild or grandchild, and shall include relationships arising from legal adoption. 
 ARTICLE IV - PROVISIONS APPLICABLE TO STOCK OPTIONS. 
 Section 4.1     Grants of Stock Options. 
 The Committee may select
employees to become Participants (subject to Section 1.5 hereof) and grant Stock Options to such Participants at any time; provided, however, that Incentive Stock Options shall be granted within 10 years of the earlier of the date the Plan is

  

 13 

 
adopted by the Board or approved by the stockholders. Before making grants, the Committee must receive the recommendations of the management of the Company, which will take into account such
factors as level of responsibility, current and past performance, and performance potential. Subject to the provisions of the Plan, the Committee shall also determine the number of shares of Common Stock to be covered by each Stock Option. The
Committee shall have the authority, in its discretion, to grant “Incentive Stock Options” or “Nonqualified Stock Options,” or to grant both types of Stock Options. Furthermore, the Committee may grant a Stock Appreciation Right
in connection with a Stock Option, as provided in Article V. 
 Section 4.2     Option
Documentation. 
 Each Stock Option granted under the Plan shall be evidenced by written documentation containing such
terms and conditions as the Committee may deem appropriate and are not inconsistent with the provisions of the Plan. 
 Section 4.3     Exercise Price. 
 The Committee shall establish the
exercise price at the time any Stock Option is granted at such amount as the Committee shall determine, except that such exercise price shall not be less than 50% of the Fair Market Value of the underlying shares of Common Stock on the day a Stock
Option is granted and that, with respect to an Incentive Stock Option, such exercise price shall not be less than 100% of the Fair Market Value of the underlying shares of Common Stock on the day such Incentive Stock Option is granted. The exercise
price will be subject to adjustment in accordance with the provisions of Article VII of the Plan. 
 Section 4.4     Exercise of Stock Options. 
              (a)      Vesting and Exercisability: Stock Options shall become exercisable at such times and in such installments as the
Committee may provide at the time of grant. The Committee may also set a Vesting Period for grants of Stock Options. The Committee may also, in its sole discretion, accelerate the time at which a Stock Option or installment may vest or become
exercisable. A Stock Option may be exercised at any time from the time first set by the Committee until the close of business on the expiration date of the Stock Option. 
              (b)      Option Period: For each Stock Option granted, the Committee shall specify the
period during which the Stock Option may be exercised, provided that no Stock Option shall be exercisable after the expiration of 10 years from the date of grant of such Stock Option. 
              (c)      Exercise in the
Event of Termination of Employment: 
 (i)          Death: If a
Participant ceases to be an employee of the Company by reason of death prior to: (A) the end of a Vesting Period, (B) the exercise of or (C) or the expiration of Stock Options granted to him or her that remain outstanding on the date
of death, such Stock Options may be exercised to the full extent not yet exercised, regardless of whether or not then vested or fully exercisable under the terms of the grant or under the terms of Section 4.4(a) hereof, by his or her estate,
beneficiaries or transferees, as the case may be, at any time and from time to time, but in no event after the expiration date of such Stock Option. 
  

 14 

 (ii)          Disability or
Retirement: The Disability or Retirement of a Participant shall not constitute a termination of employment for purposes of this Article IV, provided that following Disability or Retirement such Participant does not engage in or assist any
business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company. A Participant who does engage in or assist any business that the Committee, in its sole discretion, determines to be
competition with business engaged in by the Company shall be deemed to have terminated employment. In the case of Incentive Stock Options, Disability shall be as defined in Code Section 22(e)(3). 
 (iii)          Other Terminations: Except as provided herein, if a Participant
ceases to be an employee for any reason other than death prior to: (a) the end of the Vesting Period, (b) the exercise of, or (c) the expiration of a Stock Option, then all outstanding Stock Options granted to such Participant,
whether in his or her name or in the name of another person as a result of a transfer in accordance with Section 4.4(d), shall expire and be forfeited on a date 30 days following the date of such termination of employment. Notwithstanding the
foregoing, with respect to any Participant who holds unvested, unexercised non-qualified Stock Options (x) whose employment is terminated because of a reduction in staff (coded under termination code number 251 or such other code as may be
equivalent to or substituted for termination code number 251), and (y) who delivers to the Company and complies with a release of claims he or she may have against the Company or any of its subsidiaries, which will include a prohibition on
solicitation of the Company’s employees and such other restrictions as the Company may impose (a “Release”), then, notwithstanding such termination, all unvested, unexercised Stock Options shall continue to be and become exercisable
in accordance with their terms until a date that is 30 days after the latest date on which any Stock Options granted to such employee have become fully exercisable, but in no event later than the original expiration date of such Stock Option, (the
“Exercise End Date”), and may be exercised at any time and from time to time during such period; provided however, that in the event of the Employee’s death, during such period, the exercisability of Stock Options will be
determined in accordance with the provisions of Section 4.4(c)(i); 
 In addition, if the Committee, in its sole
discretion, finds that the circumstances in the particular case so warrant, it may determine that the Participant, his or her transferee pursuant to Section 4.4(d), or such transferee’s estate or beneficiaries, may exercise any such
outstanding Stock Option at any time and from time to time after such termination of employment, but in no event after the expiration date of such Stock Option (the “Extended Period”). 
 Approved leaves of absence of one year or less shall not be deemed to be terminations of employment under this Section 4.4(c)(iii).
Leaves of absence of more than one year shall be deemed to be terminations of employment under this Section 4.4(c)(iii), unless the Committee determines otherwise. 
 (d)          Limitations on Transferability: Stock Options are not transferable by a Participant except by will or the laws of descent and
distribution or bequest and are exercisable during his or her lifetime only by him or her; provided, however, that the Committee shall have the authority, in its discretion, to grant (or to authorize by amendment of an existing grant) Stock Options
that may be transferred by the Participant during his or her lifetime to any member of his or her immediate family or to a trust, limited liability corporation, family limited partnership or other

  

 15 

 
equivalent vehicle, established for the exclusive benefit of one or more members of his or her immediate family. A transfer of a Stock Option pursuant to this subparagraph may only be effected by
the Company at the written request of a Participant and shall become effective only when recorded in the Company’s record of outstanding Stock Options. In the event a Stock Option is transferred as contemplated in this subparagraph, such Stock
Option may not be subsequently transferred by the transferee except by will or the laws of descent and distribution. In the event a Stock Option is transferred as contemplated in this subparagraph, such Stock Option shall continue to be governed by
and subject to the terms and limitations of the Plan and the relevant grant, and the transferee shall be entitled to the same rights as the Participant under Articles VII, VIII and X hereof, as if no transfer had taken place. As used in this
subparagraph, “immediate family” shall mean, with respect to any person, any child, stepchild or grandchild, and shall include relationships arising from legal adoption. 
 Section 4.5    Payment of Purchase Price and Tax Liability Upon Exercise; Delivery of Shares.

 (a)      Payment of Purchase Price: The purchase price of the shares as to which a
Stock Option is exercised shall be paid to the Company at the time of exercise (i) in cash, (ii) by delivering freely transferable shares of Common Stock already owned by the person exercising the Stock Option having a total real-time
market price, at the time and on the date of exercise, equal to the purchase price, (iii) a combination of cash and shares of Common Stock equal in value to the exercise price, or (iv) by such other means as the Committee, in its sole
discretion, may determine. 
 (b)      Payment of Taxes: Upon exercise, a Participant may
elect to satisfy any federal, state, local, or social security taxes required by law to be withheld that arise as a result of the exercise of a Stock Option by directing the Company to withhold from the shares of Common Stock otherwise deliverable
upon the exercise of such Stock Option, such number of shares as shall have a total real-time market price, at the time and on the date of exercise, at least equal to the amount of tax to be withheld. 
 (c)      Delivery of Shares: Upon receipt by the Company of the purchase price, stock certificate(s)
for the shares of Common Stock as to which a Stock Option is exercised (net of any shares withheld pursuant to Section 4.5(b) above) shall be delivered to the person in whose name the Stock Option is outstanding or such person’s estate or
beneficiaries, as the case may be, or such shares shall be credited to a brokerage account or otherwise delivered, in such manner as such person or such person’s estate or beneficiaries, as the case may be, may direct. 
 Section 4.6    Limitations on Shares of Common Stock Received upon Exercise of Stock Options.

 The aggregate Fair Market Value (determined at the time an Incentive Stock Option is granted) of the shares of Common
Stock with respect to which an Incentive Stock Option is exercisable for the first time by a Participant during any calendar year (under all plans of the Company) shall not exceed $100,000 or such other limit as may be established from time to time
under the Code. 
  

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 The maximum aggregate number of shares of Common Stock underlying stock options to be
granted in any one fiscal year to any individual executive officer, as such term is defined in the regulations promulgated under Section 162(m) of the Internal Revenue Code, shall be 4,000,000 (four million), which number shall be adjusted
automatically to give effect to mergers, consolidations, reorganizations, stock dividends, stock splits or combinations, reclassifications, recapitalizations, or distributions to holders of Common Stock (other than cash dividends) including, without
limitation, a merger or other reorganization event in which the Common Stock ceases to exist. 
  

					
	ARTICLE V	 	-	 	 PROVISIONS APPLICABLE TO STOCK APPRECIATION RIGHTS.

 Section 5.1    Grants of Stock Appreciation Rights.

 The Committee may select employees to become Participants (subject to the provisions of Section 1.5 hereof) and grant
Stock Appreciation Rights to such Participants at any time. Before making grants, the Committee must receive the recommendations of the management of the Company, which will take into account such factors as level of responsibility, current and past
performance, and performance potential. The Committee shall have the authority to grant Stock Appreciation Rights in connection with a Stock Option or independently. The Committee may grant Stock Appreciation Rights in connection with a Stock
Option, either at the time of grant or by amendment, in which case each such right shall be subject to the same terms and conditions as the related Stock Option and shall be exercisable only at such times and to such extent as the related Stock
Option is exercisable. A Stock Appreciation Right granted in connection with a Stock Option shall entitle the holder to surrender to the Company the related Stock Option unexercised, or any portion thereof, and receive from the Company in exchange
therefor an amount equal to the excess of the Fair Market Value of one share of the Common Stock on the day preceding the surrender of such Stock Option over the Stock Option exercise price times the number of shares underlying the Stock Option, or
portion thereof, that is surrendered. A Stock Appreciation Right granted independently of a Stock Option shall entitle the holder to receive upon exercise an amount equal to the excess of the Fair Market Value of one share of Common Stock on the day
preceding the exercise of the Stock Appreciation Right over the Fair Market Value of one share of Common Stock on the date such Stock Appreciation Right was granted, or such other price determined by the Committee at the time of grant, which shall
in no event be less than 50% of the Fair Market Value of one share of Common Stock on the date such Stock Appreciation Right was granted. Stock Appreciation Rights are not transferable by a Participant except by will or the laws of descent and
distribution and are exercisable during his or her lifetime only by him or her. 
 Section 5.2    Stock
Appreciation Rights Granted in Connection with Incentive Stock Options. 
     (a)    Stock Appreciation Rights granted in connection with Incentive Stock Options must expire no later than the last date the underlying Incentive Stock Option can be exercised. 
     (b)    Such Stock Appreciation Rights may be granted for no more than 100% of the difference
between the exercise price of the underlying Incentive Stock Option and the Fair

  

 17 

 
Market Value of the Common Stock subject to the underlying Incentive Stock Option at the time the Stock Appreciation Right is exercised. 
     (c)    Such Stock Appreciation Rights are transferable only to the extent and at the same time
and under the same conditions as the underlying Incentive Stock Options. 
     (d)    Such Stock Appreciation Rights may be exercised only when the underlying Incentive Stock Options may be exercised. 
     (e)    Such Stock Appreciation Rights may be exercised only when the Fair Market Value of the
shares of Common Stock subject to the Incentive Stock Options exceeds the exercise price of the Incentive Stock Options. 
 Section 5.3    Payment Upon Exercise of Stock Appreciation Rights. 
 The
Company’s obligation to any Participant exercising a Stock Appreciation Right may be paid in cash or shares of Common Stock, or partly in cash and partly in shares, at the sole discretion of the Committee. 
 Section 5.4    Termination of Employment. 
 (a)     Death: If a Participant ceases to be an employee of the Company prior to the exercise or expiration
of a Stock Appreciation Right outstanding in his or her name on the date of death, such Stock Appreciation Right may be exercised to the full extent not yet exercised, regardless of whether or not then fully exercisable under the terms of the grant,
by his or her estate or beneficiaries, as the case may be, at any time and from time to time within 12 months after the date of death but in no event after the expiration date of such Stock Appreciation Right. 
 (b)     Disability: The Disability of a Participant shall not constitute a termination of employment for
purposes of this Article IV, provided that following the Disability such Participant does not engage in or assist any business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company. A
Participant who does engage in or assist any business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company shall be deemed to have terminated employment. 
 (c)     Retirement: The Retirement of a Participant shall not constitute a termination of employment for
purposes of this Article IV, provided that following Retirement such Participant does not engage in or assist any business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company, and such
Participant may exercise any Stock Appreciation Right outstanding in his or her name at any time and from time to time within 5 years after the date his or her Retirement commenced but in no event after the expiration date of such Stock Appreciation
Right. A Participant who does engage in or assist any business that the Committee, in its sole discretion, determines to be in competition with business engaged in by the Company shall be deemed to have terminated employment. 
 (d)     Other Terminations: If a Participant ceases to be an employee prior to the exercise or expiration of
a Stock Appreciation Right for any reason other than death, all outstanding Stock

  

 18 

 
Appreciation Rights granted to such Participant shall expire on the date of such termination of employment, unless the Committee, in its sole discretion, determines that he may exercise any such
outstanding Stock Appreciation Right (to the extent that he was entitled to do so at the date of such termination of such employment) at any time and from time to time within up to 5 years after such termination of employment but in no event after
the expiration date of such Stock Appreciation Right. 
  

					
	ARTICLE VI	 	-	 	PROVISIONS APPLICABLE TO OTHER ML & CO. SECURITIES.

 Section 6.1    Grants of Other ML & Co.
Securities. 
 Subject to the provisions of the Plan and any necessary action by the Board of Directors, the Committee
may select employees to become Participants (subject to the provisions of Section 1.5 hereof) and grant to Participants Other ML & Co. Securities or the right or option to purchase Other ML & Co. Securities on such terms and
conditions as the Committee shall determine, including, without limitation, the period such rights or options may be exercised, the nature and terms of payment of consideration for such Other ML & Co. Securities, whether such Other
ML & Co. Securities shall be subject to any or all of the provisions of Article III of the Plan applicable to Restricted Shares and/or Restricted Units, the consequences of termination of employment, and the terms and conditions, if any,
upon which such Other ML & Co. Securities may or must be repurchased by the Company. Before making grants, the Committee must receive the recommendations of the management of the Company, which will take into account such factors as level
of responsibility, current and past performance, and performance potential. Each such Other ML & Co. Security shall be issued at a price that will not exceed the Fair Market Value thereof on the date the corresponding right or option is
granted. Other ML & Co. Securities may bear interest or pay dividends from such date and at a rate or rates or pursuant to a formula or formulas fixed by the Committee or any necessary action of the Board. Any applicable conversion or
exchange rate with respect to Other ML & Co. Securities shall be fixed by, or pursuant to a formula determined by, the Committee or any necessary action of the Board at each date of grant and may be predicated upon the attainment of
financial or other performance goals. 
 Section 6.2    Terms and Conditions of Conversion or
Exchange. 
 Each Other ML & Co. Security may be convertible or exchangeable on such date and within such period
of time as the Committee, or the Board if necessary, determines at the time of grant. Other ML & Co. Securities may be convertible into or exchangeable for (i) shares of Preferred Stock of ML & Co. or (ii) other
securities of ML & Co. or any present or future subsidiary of ML & Co., whether or not convertible into shares of Common Stock, as the Committee, or the Board if necessary, determines at the time of grant (or at any time prior to
the conversion or exchange date). 
  

					
	ARTICLE VII	 	-	 	CHANGES IN CAPITALIZATION.

 Any other provision of the Plan to the contrary notwithstanding, if any change shall
occur in or affect shares of Common Stock or Performance Units, Restricted Units, Stock Options, Stock Appreciation Rights, or Other ML & Co. Securities on account of a merger, consolidation,

  

 19 

 
reorganization, stock dividend, stock split or combination, reclassification, recapitalization, or distribution to holders of shares of Common Stock (other than cash dividends) including, without
limitation, a merger or other reorganization event in which the shares of Common Stock cease to exist, , then, without any action by the Committee, appropriate adjustments shall be made (1) the maximum number of shares of Common Stock available
for distribution under the Plan; (2) the number of shares subject to or reserved for issuance and payable under outstanding Performance Share, Restricted Unit, Restricted Share, and Stock Option grants. In addition, if in the opinion of the
Committee, after consultation with the Company’s independent public accountants, changes in the Company’s accounting policies, acquisitions, divestitures, distributions, or other unusual or extraordinary items have disproportionately and
materially affected the value of shares of Common Stock or Performance Units, Restricted Units, Stock Options, Stock Appreciation Rights, or Other ML & Co. Securities, the Committee shall make such adjustments, if any, that it may deem
necessary or equitable in the performance objectives for the Performance Periods not yet completed, including the minimum, intermediate, and full performance levels and portion of payments related thereto; and any other terms or provisions of any
outstanding grants of Performance Shares, Performance Units, Restricted Shares, Restricted Units, Stock Options, Stock Appreciation Rights, or Other ML & Co. Securities, in order to preserve the full benefits of such grants for the
Participants, taking into account inflation, interest rates, and any other factors that the Committee, in its sole discretion, considers relevant. In the event of a change in the presently authorized shares of Common Stock that is limited to a
change in the designation thereof or a change of authorized shares with par value into the same number of shares with a different par value or into the same number of shares without par value, the shares resulting from any such change shall be
deemed to be shares of Common Stock within the meaning of the Plan. In the event of any other change affecting the shares of Common Stock, Performance Units, Restricted Units, Stock Options, Stock Appreciation Rights, or Other ML & Co.
Securities, such adjustment shall be made as may be deemed equitable by the Committee to give proper effect to such event. 
  

					
	ARTICLE VIII	 	-	 	PAYMENTS UPON TERMINATION OF EMPLOYMENT AFTER A CHANGE IN CONTROL.

 Section 8.1    Value of Payments Upon Termination After
a Change in Control. 
 Any other provision of the Plan to the contrary notwithstanding and notwithstanding any election
to the contrary previously made by the Participant, in the event a Change in Control shall occur and thereafter the Company shall terminate the Participant’s employment without Cause or the Participant shall terminate his or her employment with
the Company for Good Reason, the Participant shall be paid the value of his or her Performance Shares, Performance Units, Restricted Shares, Restricted Units, Stock Options, Stock Appreciation Rights, and Other ML & Co. Securities in a lump
sum in cash, promptly after termination of his or her employment but, without limiting the foregoing, in no event later than 45 days thereafter, provided that, in the event that at the time of his or her termination, a Participant is a Key Employee,
the payment to such Participant shall be delayed until a date that is six months after the date of such Participant’s termination. Payments shall be calculated as set forth below: 
  

 20 

 (a)    Performance Shares and Performance Units. 
 Any payment for Performance Shares and Performance Units pursuant to this Section 8.1(a) shall be calculated by applying performance
objectives for any outstanding Performance Shares and Performance Units as if the applicable Performance Period and any applicable. Restricted Period had ended on the first day of the month in which the Participant’s employment is terminated.
The amount of any payment to a Participant pursuant to this Section 8.1(a) shall be reduced by the amount of any payment previously made to the Participant with respect to the Performance Shares and Performance Units, exclusive of ordinary
dividend payments, resulting by operation of law from the Change in Control, including, without limitation, payments resulting from a merger pursuant to state law. The value of the Performance Shares and Performance Units payable pursuant to this
Section 8.1(a) shall be the amount equal to the number of Performance Shares and Performance Units payable in accordance with the preceding sentence multiplied by the Fair Market Value of a share of Common Stock on the day the
Participant’s employment is terminated or, if higher, the highest Fair Market Value of a share of the Common Stock on any day during the 90-day period ending on the date of the Change in Control (the “Pre-CIC Value”). 
 (b)    Restricted Shares and Restricted Units. 
 Any payment under this Section 8.1(b) shall be calculated as if all the relevant Vesting and Restricted Periods had been fully
completed immediately prior to the date on which the Participant’s employment is terminated. The amount of any payment to a Participant pursuant to this Section 8.1(b) shall be reduced by the amount of any payment previously made to the
Participant with respect to the Restricted Shares and Restricted Units, exclusive of ordinary dividend payments, resulting by operation of law from the Change in Control, including, without limitation, payments resulting from a merger pursuant to
state law. The value of the Participant’s Restricted Shares and Restricted Units payable pursuant to this Section 8.1(b) shall be the amount equal to the number of the Restricted Shares and Restricted Units outstanding in a
Participant’s name multiplied by the Fair Market Value of a share of Common Stock on the day the Participant’s employment is terminated or, if higher, the Pre-CIC Value. 
 (c)    Stock Options and Stock Appreciation Rights. 
 Any payment for Stock Options and Stock Appreciation Rights pursuant to this Section 8.1(c) shall be calculated as if all such Stock
Options and Stock Appreciation Rights, regardless of whether or not then fully exercisable under the terms of the grant, became exercisable immediately prior to the date on which the Participant’s employment is terminated. The amount of any
payment to a Participant pursuant to this Section 8.1(c) shall be reduced by the amount of any payment previously made to a Participant with respect to the Stock Options and Stock Appreciation Rights, exclusive of any ordinary dividend
payments, resulting by operation of law from the Change in Control, including, without limitation, payments resulting from a merger pursuant to state law. The value of the Participant’s Stock Options and Stock Appreciation Rights payable
pursuant to this Section 8.1(c) shall be: 
 (i)      in the case of a Stock
Option, for each underlying share of Common Stock, the excess of the Fair Market Value of a share of Common Stock on the day the

  

 21 

 
Participant’s employment is terminated, over the per share exercise price for such Stock Option; 
 (ii)        in the case of a Stock Appreciation Right granted in tandem with a Stock Option, the Fair Market Value of a share of Common Stock on the day the
Participant’s employment is terminated, over the Stock Option exercise price; and 
 (iii)      in the case of a Stock Appreciation Right granted independently of a Stock Option, the Fair Market Value of a share of Common Stock on the day the Participant’s employment is terminated, over
the Fair Market Value of one share of Common Stock on the date such Stock Appreciation Right was granted, or such other price determined by the Committee at the time of grant. 
 (d)    Other ML & Co. Securities. 
 Any payment for Other ML & Co. Securities under this Section 8.1(d) shall be calculated as if any relevant Vesting or
Restricted Periods or other applicable conditions dependent on the passage of time and relating to the exercisability of any right or option to purchase Other ML & Co. Securities, or relating to the full and unconditional ownership of such
Other ML & Co. Securities themselves, had been met on the first day of the month in which the Participant’s employment is terminated. The amount of any payment to a Participant pursuant to this Section 8.1(d) shall be reduced by
the amount of any payment previously made to the Participant with respect to the Other ML & Co. Securities, exclusive of ordinary dividend payments, resulting by operation of law from the Change in Control, including, without limitation,
payments resulting from a merger pursuant to state law. The value of the Participant’s Other ML & Co. Securities payable pursuant to this Section 8.1(d) shall be 
 (i)        in the case of an option or right to purchase such Other ML & Co.
Security, for each underlying Other ML & Co. Security, the excess of the Fair Market Value of such Other ML & Co. Security on the day the Participant’s employment is terminated, or, if higher, the Pre-CIC Value, over the
exercise price of such option or right; and 
 (ii)      in the case of the Other
ML & Co. Security itself (where there is no outstanding option or right relating to such Other ML & Co. Security), the Fair Market Value of the Other ML & Co. Security on the day the Participant’s employment is
terminated, or, if higher, the Pre-CIC Value. 
 Section 8.2  A Change in Control. 
 A “Change in Control” shall mean a change in control of ML & Co. of a nature that would be required to be reported
in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement;
provided, however, that, without limitation, a Change in Control shall be deemed to have occurred if: 
 (a)    any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, or any syndicate or group deemed to be a person under Section

  

 22 

 
14(d)(2) of the Exchange Act, other than the Company’s employee stock ownership plan, is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the General Rules and
Regulations under the Exchange Act), directly or indirectly, of securities of ML & Co. representing 30% or more of the combined voting power of ML & Co.’s then outstanding securities entitled to vote in the election of
directors of ML & Co.; 
 (b)        during any period of two consecutive years
(not including any period prior to the Effective Date of this Plan) individuals who at the beginning of such period constituted the Board of Directors and any new directors, whose election by the Board of Directors or nomination for election by the
stockholders of ML & Co. was approved by a vote of at least three quarters of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof; or 
 (c)        all or substantially all of the assets of ML & Co. are liquidated or distributed. 
 Section 8.3      Effect of Agreement Resulting in Change in Control. 
 If ML & Co. executes an agreement, the consummation of which would result in the occurrence of a Change in Control as described in Section 8.2, then, with respect to a termination of
employment without Cause or for Good Reason occurring after the execution of such agreement (and, if such agreement expires or is terminated prior to consummation, prior to such expiration or termination of such agreement), a Change in Control shall
be deemed to have occurred as of the date of the execution of such agreement. 
 Section 8.4      Termination for Cause. 
 Termination of the
Participant’s employment by the Company for “Cause” shall mean termination upon: 
 (a)        the willful and continued failure by the Participant substantially to perform his or her duties with the Company (other than any such failure resulting from the Participant’s
incapacity due to physical or mental illness or from the Participant’s Retirement or any such actual or anticipated failure resulting from termination by the Participant for Good Reason) after a written demand for substantial performance is
delivered to him or her by the Board of Directors, which demand specifically identifies the manner in which the Board of Directors believes that he has not substantially performed his or her duties; or 
 (b)        the willful engaging by the Participant in conduct that is demonstrably and materially
injurious to the Company, monetarily or otherwise. 
 No act or failure to act by the Participant shall be deemed
“willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable belief that his or her action or omission was in the best interest of the Company. 
 Notwithstanding the foregoing, the Participant shall not be deemed to have been terminated for Cause unless and until there shall have been
delivered to him or her a copy of a resolution duly adopted by the affirmative vote of not less than three quarters of the entire

  

 23 

 
membership of the Board of Directors at a meeting of the Board called and held for such purpose (after reasonable notice to the Participant and an opportunity for him or her, together with
counsel, to be heard before the Board of Directors), finding that, in the good faith opinion of the Board of Directors, the Participant was guilty of conduct set forth above in clause (a) or (b) of the first sentence of this
Section 8.4 and specifying the particulars thereof in detail. 
 Section 8.5      
Good Reason. 
 “Good Reason” shall mean the Participant’s termination of his or her employment
with the Company if, without the Participant’s written consent, any of the following circumstances shall occur: 
 (a)        Inconsistent Duties. A meaningful and detrimental alteration in the Participant’s position or in the nature or status of his or her responsibilities (including those as a
director of ML & Co., if any) from those in effect immediately prior to the Change in Control; 
 (b)        Reduced Salary or Bonus Opportunity. A reduction by the Company in the Participant’s annual base salary as in effect immediately prior to the Change in Control; a failure by the
Company to increase the Participant’s salary at a rate commensurate with that of other key executives of the Company; or a reduction in the Participant’s annual cash bonus below the greater of (i) the annual cash bonus that he
received, or to which he was entitled, immediately prior to the Change in Control, or (ii) the average annual cash bonus paid to the Participant by the Company for the three years preceding the year in which the Change in Control occurs;

 (c)        Relocation. The relocation of the office of the Company where the
Participant is employed at the time of the Change in Control (the “CIC Location”) to a location that in his or her good faith assessment is an area not generally considered conducive to maintaining the executive offices of a company such
as ML & Co. because of hazardous or undesirable conditions including without limitation a high crime rate or inadequate facilities, or to a location that is more than twenty-five (25) miles away from the CIC Location or the
Company’s requiring the Participant to be based more than twenty-five (25) miles away from the CIC Location (except for required travel on the Company’s business to an extent substantially consistent with his or her customary business
travel obligations in the ordinary course of business prior to the Change in Control); 
 (d)        Compensation Plans. The failure by the Company to continue in effect any compensation plan in which the Participant participates, including but not limited to this Plan, the
Company’s retirement program, Employee Stock Purchase Plan, 1978 Incentive Equity Purchase Plan, Equity Capital Accumulation Plan, Canadian Capital Accumulation Plan, Management Capital Accumulation Plan, limited partnership offerings, cash
incentive compensation or any other plans adopted prior to the Change in Control, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan in connection with the Change in
Control, or the failure by the Company to continue the Participant’s participation therein on at least as favorable a basis, both in terms of the amount of benefits provided and the level of his or her participation relative to other
Participants, as existed immediately prior to the Change in Control; 
  

 24 

 (e)      Benefits and Perquisites. The failure of the
Company to continue to provide the Participant with benefits at least as favorable as those enjoyed by the Participant under any of the Company’s retirement, life insurance, medical, health and accident, disability, deferred compensation or
savings plans in which the Participant was participating immediately prior to the Change in Control; the taking of any action by the Company that would directly or indirectly materially reduce any of such benefits or deprive the Participant of any
material fringe benefit enjoyed by him or her immediately prior to the Change in Control, including, without limitation, the use of a car, secretary, office space, telephones, expense reimbursement, and club dues; or the failure by the Company to
provide the Participant with the number of paid vacation days to which the Participant is entitled on the basis of years of service with the Company in accordance with the Company’s normal vacation policy in effect immediately prior to the
Change in Control; 
 (f)      No Assumption by Successor. The failure of ML & Co.
to obtain a satisfactory agreement from any successor to assume and agree to perform a Participant’s employment agreement as contemplated thereunder or, if the business of the Company for which his or her services are principally performed is
sold at any time after a Change in Control, the purchaser of such business shall fail to agree to provide the Participant with the same or a comparable position, duties, compensation, and benefits as provided to him or her by the Company immediately
prior to the Change in Control. 
 Section 8.6    Effect on Plan Provisions. 

In the event of a Change in Control, no changes in the Plan, or in any documents evidencing grants of Performance Shares, Performance
Units, Restricted Shares, Restricted Units, Stock Options, Stock Appreciation Rights, or Other ML & Co. Securities and no adjustments, determinations or other exercises of discretion by the Committee or the Board of Directors, that were
made subsequent to the Change in Control and that would have the effect of diminishing a Participant’s rights or his or her payments under the Plan or this Article shall be effective, including, but not limited to, any changes, determinations
or other exercises of discretion made to or pursuant to the Plan. Once a Participant has received a payment pursuant to this Article VIII, shares of Common Stock that were reserved for issuance in connection with any Performance Shares, Restricted
Shares, Stock Options, or Other ML & Co. Securities for which payment is made shall no longer be reserved and shares of Common Stock that are Restricted Shares or that are restricted and held by the Company pursuant to
Section 2.6(a)(i), for which payment has been made, shall no longer be registered in the name of the Participant and shall again be available for grants under the Plan. If the Participant’s employment is terminated without Cause or for
Good Reason after a Change in Control, any election to defer payment for Performance Shares or Performance Units pursuant to Section 2.8 hereof or Restricted Shares or Restricted Units pursuant to Section 3.8 hereof shall be null and void.

 ARTICLE IX - MISCELLANEOUS. 
 Section 9.1    Designation of Beneficiary. 
 A Participant, or the transferee of a Restricted Share, Restricted Unit or Stock Option pursuant to Sections 3.9 or 4.4(d), may designate, in a writing delivered to ML & Co. before his or her death, a person or persons or entity or
entities to receive, in the event of his or her death,

  

 25 

 
any rights to which he would be entitled under the Plan. A Participant or Restricted Share, Restricted Unit or Stock Option transferee, may also designate an alternate beneficiary to receive
payments if the primary beneficiary does not survive the Participant or transferee. A Participant or transferee may designate more than one person or entity as his or her beneficiary or alternate beneficiary, in which case such beneficiaries would
receive payments as joint tenants with a right of survivorship. A beneficiary designation made under the Plan will apply to future grants unless be changed or revoked by a Participant or transferee by filing a written or electronic notification of
such change or revocation with the Company. If a Participant or Stock Option transferee fails to designate a beneficiary, then his or her estate shall be deemed to be his or her beneficiary. 
 Section 9.2    Employment Rights. 
 Neither the Plan nor any action taken hereunder shall be construed as giving any employee of the Company the right to become a Participant,
and a grant under the Plan shall not be construed as giving any Participant any right to be retained in the employ of the Company. 
 Section 9.3    Nontransferability. 
 Except as provided in Sections 3.9 and
4.4(d), a Participant’s rights under the Plan, including the right to any amounts or shares payable, may not be assigned, pledged, or otherwise transferred except, in the event of a Participant’s death, to his or her designated beneficiary
or, in the absence of such a designation, by will or the laws of descent and distribution. 
 Section 9.4    Withholding. 
 The Company shall have the right, before any
payment is made or a certificate for any shares is delivered or any shares are credited to any brokerage account, to deduct or withhold from any payment under the Plan any federal, state, local, social security or other taxes, including transfer
taxes, required by law to be withheld or to require the Participant or his or her beneficiary or estate, as the case may be, to pay any amount, or the balance of any amount, required to be withheld. 
 Section 9.5    Relationship to Other Benefits. 
 No payment under the Plan shall be taken into account in determining any benefits under any retirement, group insurance, or other employee
benefit plan of the Company. The Plan shall not preclude the stockholders of ML & Co., the Board of Directors or any committee thereof, or the Company from authorizing or approving other employee benefit plans or forms of incentive
compensation, nor shall it limit or prevent the continued operation of other incentive compensation plans or other employee benefit plans of the Company or the participation in any such plans by Participants in the Plan. 
 Section 9.6    No Trust or Fund Created. 
 Neither the Plan nor any grant made hereunder shall create or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive

  

 26 

 
payments from the Company pursuant to a grant under the Plan, such right shall be no greater than the right of any unsecured general creditor of the Company. 
 Section 9.7    Expenses. 
 The expenses of administering the Plan shall be borne by the Company. 
 Section 9.8    Indemnification. 
 Service on the Committee shall constitute service as a member of the Board of Directors so that members of the Committee shall be entitled to
indemnification and reimbursement as directors of ML & Co. pursuant to its Certificate of Incorporation, By-Laws, or resolutions of its Board of Directors or stockholders. 
 Section 9.9    Tax Litigation. 
 The Company shall have the right to contest, at its expense, any tax ruling or decision, administrative or judicial, on any issue that is
related to the Plan and that the Company believes to be important to Participants in the Plan and to conduct any such contest or any litigation arising therefrom to a final decision. 
 ARTICLE X - AMENDMENT AND TERMINATION. 
 The Board of Directors or the
Committee (but no other committee of the Board of Directors) may modify, amend or terminate the Plan at any time, except that, to the extent then required by applicable law, rule or regulation, approval of the holders of a majority of shares of
Common Stock represented in person or by proxy at a meeting of the stockholders will be required to increase the maximum number of shares of Common Stock available for distribution under the Plan (other than increases due to an adjustment in
accordance with the Plan). No modification, amendment or termination of the Plan shall have a material adverse effect on the rights of a Participant under a grant previously made to him or her without the consent of such Participant. 
 ARTICLE XI - INTERPRETATION. 
 Section 11.1    Governmental and Other Regulations. 
 The Plan and any grant
hereunder shall be subject to all applicable federal, state or local laws, rules, and regulations and to such approvals by any regulatory or governmental agency that may, in the opinion of the counsel for the Company, be required. 
 Section 11.2    Governing Law. 
 The Plan shall be construed and its provisions enforced and administered in accordance with the laws of the State of New York applicable to
contracts entered into and performed entirely in such State. 
  

 27 

 ARTICLE XII - EFFECTIVE DATE AND STOCKHOLDER APPROVAL. 
 The Plan shall not be effective unless or until approved by a majority of the votes cast at a duly held stockholders’ meeting at which a
quorum representing a majority of all outstanding voting stock is, either in person or by proxy present and voting on the Plan. 
  

 28 

 RESTRICTED UNITS/STOCK OPTIONS 
 This Grant Document sets forth the terms and conditions of your grant of Restricted Units and Stock Options under the Merrill Lynch & Co.,
Inc. (“ML&Co.”) Long-Term Incentive Compensation Plan (the “Plan”). 
 1.    The
Plan. 
 This grant is made under the Plan, the terms of which are incorporated into this Grant Document. Capitalized terms used in this
Grant Document that are not defined shall have the meanings as used or defined in the Plan, which is included in the Prospectus sent to you with this grant. Merrill Lynch, as used in the Grant Document, shall mean ML&Co., its subsidiaries
and its affiliates. References in this Grant Document to any specific Plan provision shall not be construed as limiting that provision or the applicability of any other Plan provision. 
 2.    Grant Conditions. 
 By accepting this grant, you acknowledge that
you understand that the grant is subject to all of the terms and conditions contained in the Plan and in this Grant Document and that you consent to all grant terms and conditions, including without limitation, the covenants set forth in paragraph 4
of this Grant Document (the “Covenants”). 
 2.1    RESTRICTED UNITS 
  

	 	(a)	General.    You have been awarded 1,049,997 Restricted Units. A Restricted Unit represents the right to receive a share of ML&Co.
Common Stock (the “Common Stock”) upon the expiration of the applicable Vesting Period as described below. Your Restricted Units do not have voting rights. A holder of a Restricted Unit will be paid cash amounts equal to dividends paid on
an equivalent number of shares of Common Stock on the same date that dividends are paid on the Common Stock until the Restricted Units are paid in accordance with their terms. 

  

	 	(b)	Vesting.    Except as described in paragraph 2.1(b) and in paragraph 3 of this Grant Document, your rights to Restricted Units shall
terminate and the Restricted Units will be cancelled if you terminate employment or otherwise violate any of the terms and conditions of your grant prior to the end of the applicable Vesting Period as described below. Restricted Units may not be
sold, transferred, assigned, pledged or otherwise encumbered during the applicable Vesting Period. Upon each of February 4, 2009, January 1, 2010 and January 1, 2011, the Vesting Period applicable to 34%, 33% and 33%,
respectively, of such Restricted Units will expire and such Restricted Units will vest and shares of Common Stock will be delivered to you, subject to a reduction of the number of shares to be delivered of an amount of shares necessary to satisfy
Merrill Lynch’s applicable tax withholding requirements. 

  

	 	(c)	 Termination of Rights to Restricted Units Prior to the End of the Vesting Period.    Unless the Committee determines
otherwise, rights to your unvested Restricted Units will terminate upon: (1) termination of employment for Cause (as such term is defined below); (2) your voluntary resignation in the first three years of your employment if you

	 	 
fail to observe the Covenants set forth in paragraph 4 or fail to annually certify to the Corporation that you are in compliance with such Covenants; (3) termination upon your voluntary
resignation for Good Reason (as defined below) if you fail to observe all the Covenants in paragraph 4 (other than those set forth in paragraphs 4(a) and (b)) and all unvested Restricted Units will be cancelled and shares will not be delivered to
you. Under all other circumstances, including those described in paragraph 3 below, the Restricted Units will continue to vest notwithstanding termination provided that the Participant complies with the conditions set forth above.

 Cause shall mean: (i) your engagement in (A) willful misconduct resulting in material harm to
Merrill Lynch or (B) gross negligence with the performance of your duties; or (ii) your conviction of, or plea of nolo contendere to, a felony or any other crime involving fraud, financial misconduct or misappropriation of Merrill Lynch
assets, or that would disqualify you from employment in the securities industry (other than a temporary disqualification). 
 Good Reason shall mean: (i) a meaningful and detrimental alteration in the nature of your responsibilities or authority, but only after you have notified Merrill Lynch in writing that you believe such an alteration has occurred and,
within 30 days of our receipt of such notice, we have not been able to resolve the matter to our mutual satisfaction; (ii) your reporting to an executive other than the CEO of Merrill Lynch & Co., Inc. during the three-year period
commencing on the effective date of this grant; or (iii) a material reduction in your total annual compensation (salary and VICP) that is not experienced generally by similarly situated employees of Merrill Lynch. 
  

	 	(d)	Delivery — Merrill Lynch Account Designation. 

  

	 	(i)	Once your Restricted Units have vested in accordance with the terms of this Grant Document, you will be entitled to have those shares delivered, as soon as practicable,
to a Merrill Lynch account. 

  

	 	(ii)	As a participant in the Plan, you must designate a Merrill Lynch account into which shares of Common Stock will be deposited when they are released to you. This account
cannot be a Trust Account, Individual Retirement Account or other tax-deferred account. You may use a joint account if you are the primary owner of the account. Account designations can be made on the Payroll Self Service Web Site at
http://hr.worldnet.ml.com/edf2. (From the HR Intranet homepage, click on Payroll Self Service.) If you do not designate an account, Merrill Lynch will transfer shares to Wells Fargo, Merrill Lynch’s transfer agent, to be held on your
behalf. 

 2.2 STOCK OPTIONS 
  

	 	(a)	General. You have been awarded 2,445,861 Nonqualified Stock Options (the “Stock Options”). Each Stock Option entitles you to purchase one share
of Common Stock at the exercise price described below when the stock option becomes exercisable, subject to your continued employment with Merrill Lynch (except as otherwise provided in paragraph 2.2 and/or paragraph 3). 

	 	(b)	Exercisability.   Stock Options become exercisable as follows: 

 (1) On February 4, 2009, 34% of the Stock Options shall become exercisable; 
 (2) On January 1, 2010, 33% of the Stock Options shall become exercisable; and 
 (3) On January 1, 2011, 33% of the Stock Options shall become exercisable. 
 Once exercisable, Stock Options will remain exercisable until the expiration date of the Stock Options on August 4, 2018, provided you
remain employed by Merrill Lynch (except as otherwise provided in this paragraph 2.2 and/or paragraph 3), and have complied with the terms and conditions of the Grant Document and the Covenants. 
  

	 	(c)	Exercise Price.  The exercise price of the stock options is the price at which you have the right to purchase a share of the Common Stock
regardless of the market value at the time of exercise. The exercise price is $26.395 as reflected on the Certificate of Grant. Your option exercise choices are described on the Human Resources section of the Merrill Lynch WorldNet at:

 https://myportal-ltm.worldnet.ml.com/?id=6651_54016_54336_54458_54479. 
  

	 	(d)	How to Exercise Stock Options.    You may exercise Stock Options through the Retirement Services Group. You must open a Limited
Individual Investor Account (LIIA) to exercise. You may submit exercise requests virtually 24 hours a day, seven days a week through the Interactive Voice Response Service (IVR) at 1-877-637-6767. Alternatively, participant service representatives
are available to help you from at least 8:00 a.m. to 7:00 p.m. Eastern Time, on any day the New York Stock Exchange is open. Outside of the United States, you can call 609-818-8885 collect to speak to a participant service representative from 8 a.m.
to Midnight Eastern Time on any day the New York Stock Exchange is open. You may also exercise your stock options by visiting the Benefits On Line Web-site at https://www.benefits.ml.com. 

 If you are a restricted person, you will be required to pre-clear any sale of Merrill Lynch equity securities and you will be prohibited from
exercising your Stock Options within a blackout period. This may affect your ability to exercise stock options just prior to the expiration date. If you have questions regarding your status as a restricted person and the applicable blackout period,
please contact the Corporate Secretary’s Office. 
  

	 	(e)	Transferability.  Stock Options may not be assigned, pledged or otherwise transferred in whole or in part except as noted below or, in the event
of death, to a beneficiary designated on the Designation of Beneficiary Form. A beneficiary may include a charity or trust. All or a portion of the Stock Options awarded herein may be transferred at any time after the grant date to children and
grandchildren and to trusts for their benefit. Please contact your tax or financial advisor for advice on transferring stock options. 

  

	 	(f)	 Termination of Rights Stock Options Prior to the End of the Exercisability Period.  Unless the Committee determines otherwise,
rights to Stock Options that have not been exercised will terminate upon: (1) termination of employment for Cause (as defined in paragraph 2.1(c)); (2) your voluntary resignation in the first three years of your employment if you fail to
observe the Covenants set forth in paragraph 4 or fail to annually certify to the Corporation that you are in compliance with such Covenants; (3) termination upon your voluntary resignation by the Participant for Good Reason (as

	 	 
defined in paragraph 2.1(c)) if you fail to observe all the Covenants in paragraph 4 other than those set forth in paragraphs 4(a) and (b) and, in each case, all unexercised Stock Options
will be cancelled (with respect to exercisable Stock Options 90 days after termination in the case of terminations covered under 2.2(f)(2) and (3)) and may no longer be exercised by you. Under all other circumstances, including those described
in paragraph 3 below, your Stock Options will continue to be and become exercisable in accordance with their terms provided that the Participant complies with the conditions set forth above. 

 3.    Treatment of Restricted Units and Stock Options under Certain Circumstances. 
 In the event your termination occurs in connection with the limited circumstances outlined below, your grant of Restricted Units will continue to vest and
your unvested Stock Options will continue to become and be exercisable notwithstanding termination, provided that you comply with the conditions described in paragraphs 2.1(c) and 2.2(f) and the conditions described below. 
  

	 	(a)	Death.  If your death occurs prior to the end of the applicable Vesting Period for your Restricted Units, any unvested Restricted Units will
vest immediately and shares (net of any withholding requirements) will be delivered to your designated beneficiary or estate as soon as possible. Upon your death, any unexercisable Stock Options will become immediately exercisable and may be
exercised by your designated beneficiary or estate until August 4, 2018. 

  

	 	(b)	Disability or Career Retirement.    If your employment is terminated as a result of Disability or if you qualify for Career
Retirement, your unvested Restricted Units will continue to vest and your Stock Options will continue to be and become exercisable notwithstanding your termination, in each case, on the schedule described in paragraphs 2.1(b) and 2.2(b), provided
that (1) you do not compete with, or recruit employees from, Merrill Lynch and provide Merrill Lynch with a certification upon your termination and at least annually thereafter (the “Annual Certification”) that you are not engaged in
or employed by a business which is in competition with Merrill Lynch and have not solicited or recruited employees from, Merrill Lynch and (2) you do not violate the Covenants. If you compete with the business of, or recruit employees from
Merrill Lynch, or fail to return the Annual Certification or certification at exit to Merrill Lynch, or violate the Covenants during the applicable Vesting Period for your Restricted Units or the exercisability period for your Stock Options, your
rights to your unvested Restricted Units and unvested and unexercised Stock Options will terminate and such Restricted Units and Stock Options will be cancelled. 

  

	 	(d)	Definitions: 

 To
be eligible for “Career Retirement” treatment, you must fulfill the following requirements: 
  

	 	•	 	 No determination shall have been made that there was Cause for your termination (as defined above); and 

	 	•	 	 You must have completed at least 3 years of service with Merrill Lynch; or 

  

	 	•	 	 At the request of Merrill Lynch, you become an employee (upon termination with Merrill Lynch) of, a spin-off of a Merrill Lynch company or business, or
of a non-consolidated joint venture company in which Merrill Lynch has made an investment which, in each case, is expressly approved for Career Retirement treatment by the Head of Human Resources, or his or her functional successor.

  

	 	•	 	 You will not be eligible for Career Retirement or Disability (and your unvested Restricted Units and unvested and
unexercised Stock Options will be cancelled) if: (1) following your termination, you engage in any business that is in competition with the business of Merrill Lynch, (2) prior to or following your termination you solicit or recruit any
Merrill Lynch employees, (3) you fail to certify, at termination that you are in compliance with conditions 1 and 2 or fail to sign and return the Annual Certification, or (4) prior to or following your termination, you violate any of the
Covenants. 

 “Disability” shall mean a physical or mental condition that, in the opinion of
the Head of Human Resources of Merrill Lynch (or his or her functional successor), renders you incapable of engaging in any employment or occupation for which you are suited by reason of education or training. 
 4.  Covenants. 
  

	(a)	Notice Period.  You agree that, for the remainder of your employment, you shall provide ML&Co. with at least six months advance written
notice (the “Notice Period”) prior to the termination of your employment. During this Notice Period, you shall remain employed by Merrill Lynch (and receive base salary and certain benefits, but will not receive any payments or
distributions or accrue any rights to a bonus or any payments or distributions under the Variable Incentive Compensation Program, pro-rata or otherwise) and shall not commence employment with any other employer. You further agree that during the
Notice Period, you shall not directly or indirectly induce or solicit any client of Merrill Lynch to terminate or modify its relationship with Merrill Lynch. 

  

	(b)	Employment by a Competitor.  You agree that, during the period beginning on the date of the termination of your employment and ending on the
date of vesting of 100% of your Restricted Units, or, if later, the date on which your Stock Options expire, you will not, without prior written consent from ML&Co., engage in any employment, accept or maintain any directorship or other
position, own an interest in, or, as principal, agent, employee, consultant or otherwise, provide any services to anyone, whether or not for compensation, in any business that is engaged in competition with the business of ML&Co. or its
affiliates (a “Competitive Business”). Notwithstanding the foregoing, you may have an interest constituting less than 1 percent of any class of publicly traded securities in any public company that is a competitive business.

  

	(c)	Non-Solicitation.    You agree that you will not directly or indirectly solicit for employment any person who is or was an employee of
ML&Co. or any of its affiliates at any time during the six-month period immediately preceding the date of such solicitation. 

	(d)	No Hire.  You agree that during a period of six months following your termination, you will not hire or otherwise engage, directly or indirectly
(including, without limitation, through an entity with which the you are associated), as an employee or independent contractor, any person who is or was an employee of ML&Co. or any of its affiliates and who, as of the date of your termination
of employment, had the title First Vice President or Managing Director or higher and reported directly to you or to the Chief Executive Officer or President of ML&Co. (“Executive, CEO or President Direct Reports”) or any person with
the title First Vice President or Managing Director or higher who, at the time of your termination, reported directly to the Executive, CEO or President Direct Reports, provided, however, that the hiring of any person whose employment
was involuntarily terminated by ML&Co. or any of its affiliates shall not be a violation of this covenant. 

  

	(e)	Non-Disparagement.  You agree that you will not disparage, portray in a negative light, or make any statement which would be harmful to, or lead
to unfavorable publicity for, ML&Co. or any of its affiliates, or any of its or their current or former directors, officers or employees, including without limitation, in any and all interviews, oral statements, written materials, electronically
displayed materials and materials or information displayed on internet- or intranet-related sites; provided however, nothing contained herein shall prohibit or restrict (i) providing information to, or otherwise assisting in, an investigation
by Congress, the Securities and Exchange Commission (“SEC”), or any other federal regulatory or law enforcement agency or self-regulatory organization (“SRO”); (ii) testifying, participating, or otherwise assisting in a
proceeding relating to an alleged violation of any federal law relating to fraud or any rule or regulation of the SEC or any SRO or in an internal investigation by Merrill Lynch or (iii) testifying, participating, or otherwise assisting in any
administrative investigation or proceeding relating to an alleged violation of any discrimination or wage law. 

  

	(f)	Confidential Information.  You agree that following any termination of employment, you will not without prior written consent or as otherwise
required by law, disclose or publish (directly or indirectly) any Confidential Information (as defined below) to any person or copy, transmit or remove or attempt to use, copy, transmit or remove any Confidential Information for any purpose.
“Confidential Information” means any information concerning ML&Co. or any of its affiliates’ business or affairs which is not generally known to the public and includes, but is not limited to, any file, document, book, account,
list, process, patent, specification, drawing, design, computer program or file, computer disk, method of operation, recommendation, report, plan, survey, data, manual, strategy, financial data, client information or data, or contract which comes to
your knowledge in the course of your employment or which is generated by you in the course of performing your obligations whether alone or with others provided that, nothing contained herein shall prohibit or restrict a Participant from
(i) providing information to, or otherwise assisting in, an investigation by Congress, the Securities and Exchange Commission (“SEC”), or any other federal regulatory or law enforcement agency or self-regulatory organization
(“SRO”); (ii) testifying, participating, or otherwise assisting in a proceeding relating to an alleged violation of any federal law relating to fraud or any rule or regulation of the SEC or any SRO or in an internal investigation by
Merrill Lynch or (iii) testifying, participating, or otherwise assisting in any administrative investigation or proceeding relating to an alleged violation of any discrimination or wage law. 

	(g)	Confidentiality.  You also agree that in the event your employment is terminated you will not disclose the circumstances of your termination to
any other party, except that, (i) on a confidential basis to tax, financial or legal advisors, immediate family members, or any prospective employer or business partner, provided that, in each case, such third party agrees to keep
such circumstances confidential and (ii) this provision shall not prevent a response to any inquiry about termination of employment or its underlying facts and circumstances by any self regulatory organization or regulatory or governmental
agency. 

  

	(h)	Cooperation.  You agree to (i) provide truthful and reasonable cooperation, including but not limited to your appearance at interviews and
depositions, in all legal matters, including but not limited to regulatory and litigation proceedings relating to your employment or area of responsibility at Merrill Lynch or its affiliates, whether or not such matters have already been commenced
and through the conclusion of such matters or proceedings, and (ii) to provide Merrill Lynch’s counsel all documents in your possession or control relating to such regulatory or litigation matters. 

  

	(i)	Injunctive Relief.  Without limiting any remedies available, you acknowledge and agree that a breach of the covenants contained in subparagraphs
(a) – (d), (f) and (g) of this paragraph 4 will result in material and irreparable injury to Merrill Lynch and its affiliates for which there is no adequate remedy at law and that it will not be possible to measure damages for
such injuries precisely. Therefore, you agree that, in the event of such a breach or threat thereof, Merrill Lynch shall be entitled to seek a temporary restraining order and a preliminary and permanent injunction, without bond or other security,
restraining him or her from engaging in activities prohibited by subparagraphs (a) – (d), and (f)-(h) of this paragraph 4 or such other relief as may be required specifically to enforce any of the covenants in subparagraphs
(a)–(d) and (f)-(h) of this paragraph 4, provided however, that Merrill Lynch shall be entitled to seek injunctive relief for violations of subparagraph (c) of this paragraph 4 only during the period beginning on the date of
your termination of employment and ending on the first anniversary of that date. 

 5.  Effect of a Change in Control
of ML&Co. 
 Notwithstanding Article VIII of the Plan, the treatment of the Restricted Units and Nonqualified Stock
Options, in the event of a Change in Control of ML&Co. (as defined in the Plan) followed by your termination other than for Cause or your resignation for Good Reason (in each case as defined in paragraph 2.1(c) hereof, shall be as follows:

  

	 	(a)	For Restricted Units 

 100% of all unvested Restricted Units shall immediately vest and become payable; and 
  

	 	(b)	For Stock Options 

 100%
of all unexercised Stock Options shall immediately vest and be or become exercisable and remain exercisable for the remainder of their original term;

 
provided that, in the case of paragraphs 5(a) and (b), in the event that Merrill Lynch is not a surviving company in the Change in Control transaction, your right to receive securities will be
converted, based on the terms of the Change in Control transaction, to securities of the acquiring entity.Employment Letter Dated May 1, 2008

 Exhibit 10(bbb) 
  

			
	

	  	

	  
 May 1, 2008
	  

 Thomas K. Montag 
 135 Central Park West, 11NC 
 New York, NY 10023 
 Dear Tom: 
 We are pleased to
offer you the position of Head of Global Sales and Trading, reporting to John A. Thain, Chairman and CEO. In this capacity you will also be an Executive Vice President of Merrill Lynch. We anticipate and you agree that you will commence employment
on August 4, 2008 (“the Start Date”). 
 The terms of our offer of employment are as follows: 
 1. COMPENSATION 
 a. Salary 
 Your starting salary will be at the annualized rate of $600,000.00 and will commence on the Start
Date. 
 b. Incentive Compensation 
 You will be eligible to participate in the Merrill Lynch Variable Incentive Compensation Program (VICP). In general, VICP awards are granted annually at the sole discretion of management based upon
individual performance, company financial results, and other criteria. However, for Performance Year 2008, you will receive a guaranteed VICP award of $39,400,000.00, provided you are in the continuous employment of Merrill Lynch through the
scheduled payment date in early 2009 (“your Guaranteed VICP Award”). Your Guaranteed VICP Award may consist of cash or cash and equity, at the discretion of Merrill Lynch, but any portion of your Guaranteed VICP Award granted in equity
will be at a percentage of your total compensation generally equivalent to the treatment given to similarly situated executives. Any equity portion of your Guaranteed VICP Award may consist of Merrill Lynch Restricted Units or other equity
instruments subject to the vesting and other provisions of the applicable Merrill Lynch & Co., Inc. employee stock compensation plan (“the SCP”) and grant documents. Except as otherwise specifically provided in the applicable SCP
and grant documents or in this letter, if your employment terminates for any reason or if you violate any of the terms and conditions of the grant prior to the vesting and/or distribution to you of your equity grant, your rights to the unvested
and/or undistributed portion shall be terminated and such grants will be canceled. All

 
equity grants are subject to the approval of the Management Development and Compensation Committee of the Merrill Lynch & Co., Inc. Board of Directors (“the MDCC”). 

Your performance will be reviewed periodically. Any future salary and other compensation, including any future awards under the VICP, will be based on a
consideration of a number of factors, including, but not limited to, company financial results and your individual performance, and shall be determined in Merrill Lynch’s sole discretion. 
  

	2.	 REPLACEMENT OF FORFEITED EQUITY 

 To make you whole for the value of equity awards granted by your former employer that you will lose (including the time value of options you will exercise in advance of, or within thirty days of your
Start Date, the time value of options you exercised in anticipation of your Acceptance Date, and the time value of options that are not exercisable as of the date of your written acceptance of this offer (“the Acceptance Date”)) in
connection with your employment with Merrill Lynch (the “Forfeiture”) and subject to MDCC approval at its first regularly scheduled meeting following the Start Date, with respect to the equity grants described in this paragraph, Merrill
Lynch will make cash payments and/or grants of equity to you, subject to our receiving reasonable written confirmation of a Forfeiture, in an aggregate amount to which we will agree (“the Replacement Value”). The Replacement Value will be
divided in a manner to which we will agree into cash, Restricted Units, and stock options components (“the Cash Component,” “the Restricted Unit Component,” and “the Stock Option Component,” respectively). 

 

	 	•	 	 The Cash Component will be paid to you in cash within 30 days of the Start Date and will include the time value of options you will exercise in advance
of, or within thirty days of your Start Date (including the time value of options you exercised in anticipation of your Acceptance Date). 

  

	 	•	 	 The Restricted Unit Component will be paid in the form of a grant of Merrill Lynch Restricted Units (the “Replacement Restricted Units”).
Restricted Units will vest thirty-four percent six months from the start date, thirty-three percent on January 1, 2010 and thirty-three percent on January 1, 2011. 

  

	 	•	 	 The Stock Option Component will be paid in the form of a grant of stock options to purchase shares of Merrill Lynch common stock (“the Replacement
Stock Options”). The Replacement Stock Options will have an exercise price equal to the average of the high and low prices of Merrill Lynch common stock on the New York Stock Exchange on the day the grant is approved by the MDCC or, if such
date is not a trading day, on the previous trading day. Replacement Stock Options will become exercisable thirty-four percent six months from the start date, thirty-three percent on January 1, 2010 and thirty-three percent on January 1,
2011. Exercisable Replacement Stock Options shall remain exercisable until the tenth anniversary of the Start Date. 

  

 2 

 Should the MDCC fail to approve any or all of the Replacement Restricted Units and/or Replacement Stock
Options, the value of the unapproved portion will be paid to you in cash no later than March 15, 2009. 
 3.      EFFECT OF THE TERMINATION OF YOUR EMPLOYMENT ON YOUR GUARANTEED VICP AWARD, ANY FUTURE EQUITY AND THE REPLACEMENT VALUE 
  

	a.	 Qualifying Employment Termination 

 For purposes of this letter, either the termination of your employment by Merrill Lynch without Cause or your resignation with Good Reason, each as defined below, shall be deemed a Qualifying Employment
Termination. 
  

	b.	 Your Guaranteed VICP Award and Any Future Equity Awards 

  

	 	•	 	 If a Qualifying Employment Termination occurs before you are paid the cash portion of your Guaranteed VICP Award and before you are granted any equity
portion of your Guaranteed VICP Award by the MDCC, the entire Guaranteed VICP Award will be paid to you in cash on or about the scheduled payment date in early 2009, but not later than March 15, 2009. 

  

	 	•	 	 If a Qualifying Employment Termination occurs after you are paid the cash portion of your Guaranteed VICP Award but before you are granted any equity
portion of your Guaranteed VICP Award by the MDCC, that portion of your Guaranteed VICP Award that Merrill Lynch intended to award you in the form of an equity grant will be paid in cash on or about the scheduled payment date in early 2009, but not
later than March 15, 2009. 

  

	 	•	 	 If a Qualifying Employment Termination occurs after you are paid the cash portion of your Guaranteed VICP Award and after you are granted any equity
portion of your Guaranteed VICP Award and any subsequent equity awards, such grants will continue to vest, be delivered to you, and become and remain exercisable, as the case may be, in accordance with the schedule contained in the grant, but only
on the condition that you comply with the post-employment covenants and other provisions of the SCP, the grant documents, and the covenant agreement attached hereto, except for those provisions requiring notice of your resignation and restricting
your employment by a competitor, which shall be waived. 

  

	 	•	 	 (1) If your employment is terminated by Merrill Lynch for Cause or (2) if you resign from Merrill Lynch for other than Good Reason before the
Third Anniversary of the Start Date without meeting the eligibility criteria for Career Retirement as described in the SCP and grant documents, then any undistributed and or unexercised equity awards from the equity portion of your Guaranteed VICP
Award and any subsequent equity awards will be canceled and you shall have no further rights with respect thereto. 

  

 3 

	c.	 Replacement of Forfeited Equity 

  

	 	•	 	 If a Qualifying Employment Termination occurs before you are paid the cash portion of the Replacement Value and before you are granted the equity
portion of the Replacement Value by the MDCC, the entire Replacement Value will be paid to you in cash as soon as Value by the MDCC, the entire Replacement Value will be paid to you in cash as soon as practical but not to exceed 6 months and in any
event, on or before December 31 of the year following the year in which your Qualifying Employment Termination occurs. 

  

	 	•	 	 If a Qualifying Employment Termination occurs after you are paid the cash portion of the Replacement Value but before you are granted the equity
portion of the Replacement Value by the MDCC, that portion of the Replacement Value due in the form of equity grants will be paid in cash as soon as practical but not to exceed 6 months and in any event, on or before December 31 of the year
following the year in which your Qualifying Employment Termination occurs. 

  

	 	•	 	 If a Qualifying Employment Termination occurs after you are paid the cash portion of the Replacement Value and after you are granted the equity portion
of the Replacement Value by the MDCC, such grants will continue to vest, to be delivered to you, and become and remain exercisable, as the case may be, in accordance with the schedule contained in the grant, but only on the condition that you comply
with the post employment covenants and other provisions of the SCP, the grant documents, and the covenant agreement attached hereto, except for those provisions requiring notice of your resignation and restricting your employment by a competitor,
which shall be waived. 

  

	 	•	 	 If your employment is terminated by you or by Merrill Lynch for any reason other than by Merrill Lynch for Cause and such employment termination is not
a Qualifying Employment Termination, after you are paid the cash portion of the Replacement Value and after you are granted the equity portion of the Replacement Value by the MDCC, such grants will continue to vest, be delivered to you, and become
and remain exercisable, as the case may be, in accordance with the schedule contained in the grant, but only on the condition that you comply with the post employment covenants and other provisions of the SCP, the grant documents, and the covenant
agreement attached hereto. 

  

	 	•	 	 If your employment is terminated by you or by Merrill Lynch for any reason other than by Merrill Lynch for Cause and such employment termination is not
a Qualifying Employment Termination, and such termination occurs before you have been both (a) paid the cash portion of the Replacement Value and (b) granted the equity portion of the Replacement Value by the MDCC, then the cash
equivalents of such grants, will be paid to you according the vesting and delivery schedule and/or the exercisability schedule, as the case may be, that would have been contained in the grant had it been made, on the condition that you comply with
the post employment covenants and other provisions of the SCP, the grant documents, and the covenant agreement attached hereto. 

  

 4 

	 	•	 	 If your employment terminates by Merrill Lynch for Cause after you are paid the cash portion of the Replacement Value and after you are granted the
equity portion of the Replacement Value by the MDCC, any undistributed and/or unexercised portion of the equity portion of the Replacement Value will be canceled and you shall have no further rights with respect thereto.

  

	4.	 DEFINITION OF CAUSE 

 For all purposes of this letter (except for the terms of the payments and equity grants in satisfaction of the Replacement Value, including without limitation the Replacement Restricted Units and
Replacement Stock Options), Cause shall mean: (i) any substantial violation of Merrill Lynch’s rules, regulations, policies, practices and/or procedures; (ii) any substantial violation of laws, rules or regulations of any governmental
entity or regulatory or self-regulatory organization, applicable to Merrill Lynch; (iii) criminal, illegal, dishonest, immoral, or unethical conduct reasonably related to your employment; or (iv) a substantial breach of this letter or any
of the accompanying attachments; provided, however, that the definition of “Cause” that applies to your VICP equity awards and any subsequent awards shall not include any action or event not included in any definition of “Cause”
generally applicable to similarly situated executives of Merrill Lynch as in effect from time to time. With respect to (i) and (iv) above, Cause shall exist only after you are given notice and an opportunity to correct your conduct, unless
such conduct or its consequences cannot be reasonably corrected. 
 For purposes of the terms of the payments and equity grants in satisfaction
of the Replacement Value, including without limitation the Replacement Restricted Units and Replacement Stock Options, Cause shall mean: (i) your engagement in (A) willful misconduct resulting in material harm to Merrill Lynch or
(B) gross negligence in connection with the performance of your duties; or (ii) your conviction of, or plea of nolo contendere to, a felony or any other crime involving fraud, financial misconduct or misappropriation of Company assets, or
that would disqualify you from employment in the securities industry (other than a temporary disqualification). 
  

	5.	 DEFINITION OF GOOD REASON 

 For the purpose of this letter agreement, Good Reason shall mean: (i) a meaningful and detrimental alteration in the nature your responsibilities or authority, but only after you have notified
Merrill Lynch in writing that you believe such an alteration has occurred and, within 30 days of our receipt of such notice, we have not been able to resolve the matter to our mutual satisfaction; (ii) your reporting to an executive other than
the CEO of Merrill Lynch & Co., Inc. during the three year period commencing on the Start Date; or (iii) a material reduction in your total annual compensation (salary and VICP) that is not experienced generally by similarly situated
employees of Merrill Lynch. 
 6.      TERMS RELATING TO YOUR VOLUNTARY RESIGNATION AFTER
THE THIRD ANNIVERSARY OF YOUR START DATE 
 Subject to MDCC approval, the grants under the SCP of the equity portion of your Guaranteed
VICP Award and any subsequent equity awards granted to you prior to your satisfying the

  

 5 

 
service and age requirements generally applicable to Career Retirement treatment shall provide that you will be eligible for Career Retirement treatment with respect to such grants upon
completing three years of service, without any other requirement relating to your age or service, but subject to all other requirements and conditions normally associated with Career Retirement treatment imposed by the SCP, the grant documents, and
the Covenant Agreement attached hereto. 
  

	7.	 TERMS RELATING TO CHANGE IN CONTROL 

 If following a Change in Control a Qualifying Employment Termination occurs, any equity awards granted to you (including, without limitation, any awards granted in satisfaction of Replacement Value or
your Guaranteed VICP Award or any subsequent awards) will immediately vest in full, be delivered to you and become and remain exercisable for the full original term, as the case may be, and shall not be subject to any forfeiture provisions or
covenants; provided that, in the event that Merrill Lynch is not a surviving company in the Change in Control transaction, your right to receive securities will be converted, based on the terms of the change in control transaction, to securities of
the acquiring entity. 
 The preceding sentence shall apply to your equity awards, notwithstanding any provisions in the applicable SCP or award
agreement governing the treatment of equity awards in the event of a termination of employment without Cause or for Good Reason following a Change in Control. For the avoidance of doubt, Section 8.1 of the Merrill Lynch & Co., Inc.
Long-Term Incentive Compensation Plan, and any similar provision contained in the applicable SCP, shall not apply to equity awards granted to you. 
  

	8.	 MITIGATION 

 In no event shall you be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to you under any of the provisions of this letter agreement and, such amounts shall not be reduced whether or
not you obtain other employment, except where such employment violates a condition of payment. 
  

	9.	 COVENANT AGREEMENT 

 On or prior to the Start Date, you agree to enter into Merrill Lynch’s standard covenant agreement for executives, a copy of which is attached hereto. 
  

	10.	 INDEMNIFICATION 

 During and after your employment, Merrill Lynch shall indemnify and defend you with respect to claims relating to your employment to the fullest extent permitted under applicable law and Merrill Lynch’s Certificate of Incorporation.

  

	11.	 IRC SECTION 409A COMPLIANCE 

 Notwithstanding anything herein to the contrary, if any payments of money or other benefits due to you hereunder would cause the application of an accelerated or additional tax under Section 409A of
the Internal Revenue Code of 1986, as amended, such payment or other benefits shall be

  

 6 

 
deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured in a manner that
does not cause such an accelerated or additional tax. 
  

	12.	 FEES 

 Merrill Lynch will reimburse you for your actual attorney and consultant fees incurred in the finalization of this letter agreement, up to $25,000.00. 
  

	13.	 WORK AUTHORIZATION 

 You must also be able to satisfy the requirements of the Immigration Reform and Control Act of 1986, which requires documents to prove your identity and demonstrate that you are authorized to work in the U.S., and to complete an Employment
Eligibility Verification form (Form I-9). 
 A further condition of this offer and your employment with Merrill Lynch is that you have not been
convicted of a felony or certain misdemeanors which would disqualify you from employment with Merrill Lynch under federal securities law and under the rules of the Financial Industry Regulatory Authority. (These preconditions are referenced in the
Merrill Lynch Statement of Employment Conditions and the Merrill Lynch Policy on Statutory Disqualification.) 
  

	14.	 PRE-EMPLOYMENT PREPARATION 

 Prior to your start date with Merrill Lynch, you are required to complete pre-employment screenings, which includes substance abuse screening and Form I-9 verification. The Employee Service Center will
assist you in scheduling these appointments. In addition, you must review Merrill Lynch policies and guidelines and submit a series of forms that provide required personal information. You will be receiving an email from our Employment Service
Center instructing you on how to proceed with this process. If you have any questions in the interim, or you do not receive this email, please contact me. 
 You should also carefully review the attached Statement of Employment Conditions as this offer and your employment with Merrill Lynch are subject to them. In the event of a conflict between the Statement
of Employment Conditions and this letter agreement, this letter agreement shall control. 
 Until this letter is filed with the SEC, you agree
to keep this letter and its terms strictly confidential and not to disclose them to any person or entity except your attorney, financial advisor, and immediate family members, as long as such individuals agree that they are subject to this
confidentiality provision. Nothing in this letter shall prohibit or restrict you from providing information pursuant to legal process. 
 This
offer is contingent upon the approval of the MDCC. Once that approval is obtained, Merrill Lynch represents and warrants that it is fully authorized and empowered to enter into this Agreement and to perform its obligations thereunder. Any notice to
you that is required under, or which concerns this Agreement shall be sent to you at your most recent address on file, and to your counsel: 
  

 7 

 Steven Eckhaus, Esq. 
 McCarter & English, LLP 
 245 Park Avenue 
 New York, NY 10167 
 seckhaus@mccarter.com

 This Agreement may be executed in counterparts, including by fax or PDF, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument. 
 In the event of a conflict between this letter and any other document, this letter
shall control. 
 Tom, it goes without saying that we believe you can make a significant contribution to Merrill Lynch, and we look forward to
your joining us. 
  

	
	 Sincerely,

			
		
	  /s/ Peter R. Stingj
	 	

	
	
	 Peter R. Stingj

	 SVP, Head of Global Human Resources

  

 8 

  
 Acceptance of offer 
 My signature below confirms acceptance of the offer of employment and my understanding of the terms and
conditions associated with it. This signature also confirms that there are no oral promises associated with this offer that are not reflected in this letter and I am not relying on any such promises or understandings in accepting this offer. In
signing this letter, I further acknowledge that I have received, read, and agree to all pre-employment conditions and policies referred to in this letter, specifically the enclosed Statement of Employment Conditions and Policy on Statutory
Disqualification. 
  

					
	 Signed:/s/ Thomas K. Montag                                
                                         
           
	 	 Date:
	 	            5/1/08            

 Enclosed: 
  

	 	•	 	 Statement of Employment Conditions 

  

	 	•	 	 Policy on Statutory Disqualification 

  

	 	•	 	 Covenant Agreement 

  

 9 

 

 
 Statement of Employment Conditions 
  
  
 All offers and/or contracts of employment by Merrill Lynch & Co., Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated or any of their subsidiaries, or affiliates, (“Merrill
Lynch”) are subject to the following conditions: 
 1.        Unless otherwise expressly and
specifically agreed to in writing and signed by an authorized officer of Merrill Lynch, all employment is terminable at will by either party. Written descriptions of compensation to be paid or benefits offered, including those in an employment offer
letter, do not alter the at will employment status of any employee. 
 2.        Where applicable, all
job offerees must provide documentary evidence of their right to work in the country where their position is located prior to beginning employment. In the U.S., the job offeree must provide documents necessary to meet the terms of the Immigration
Reform and Control Act of 1986, which requires that the job offeree provide documents that prove his/her identity and demonstrate that he/she is authorized to work in the U.S. 
 3.        Employment at Merrill Lynch is subject to pre-employment screening requirements, the results of which must be acceptable to Merrill Lynch. These
requirements consist of reference and background checks, including fingerprinting and criminal background searches, and, depending on job offeree’s work location, may include substance abuse screening. 
 4.        All job offerees and employees are subject to federal securities laws and the rules of the Financial
Industry Regulatory Authority (“FINRA”) that prohibit persons who are subject to “statutory disqualification” from being employed by Merrill Lynch. The job offeree must not have been convicted of a felony or certain misdemeanors
that would disqualify him/her from employment with Merrill Lynch under federal securities law and under FINRA rules. 
 5.        Unless otherwise expressly and specifically agreed to in writing, and signed by an authorized officer of Merrill Lynch, all compensation levels are within Merrill Lynch’s sole
discretion and may be modified at any time. 
 6.        Unless otherwise expressly and specifically
agreed to in writing, no compensation, either cash payments or equity awards, will be paid or awarded unless the employee is in the continuous employment of Merrill Lynch through the date of payment, except for amounts of base salary earned
prior to termination and any unused, accrued vacation as required by state law. Continued employment with Merrill Lynch until the payment or award date is a pre-condition to any compensation payment or equity award, including any bonus, and no
pro-rata payment or award will be due if employment terminates prior to the payment or award date. 
 7.        All officer titles in Merrill Lynch or any of its subsidiaries (e.g., Vice President) are subject to formal approval by the appropriate governing body. 
  

 10 

 8.        All non-public information concerning Merrill Lynch is its
property, will be held in confidence by the employee, and will be used only for Merrill Lynch’s, or the clients’ benefit. 
 9.        Any inventions, together with non-public information of its clients, and copyrightable material developed by the employee in the scope of their employment will be promptly disclosed to
Merrill Lynch and will be “works for hire” owned by Merrill Lynch, and the employee will, at Merrill Lynch’s expense, do whatever is necessary to transfer to Merrill Lynch, or document its ownership of, any such property. 

10.      Events giving rise to reports required to be filed with regulatory organizations such as the Securities and
Exchange Commission, FINRA, and any other regulatory organization in the U.S. or abroad must be reported promptly to your manager and where appropriate to the Firm’s Compliance Department or Corporate Security. These events include but are not
limited to employee arrests, indictments and convictions, misappropriations by employees, the receipt of written customer complaints, and litigation matters involving customers of Merrill Lynch. 
 11.      Employees may not open or maintain securities accounts at other broker dealers. This policy extends to accounts in
which the employee has a financial interest or has the power, directly or indirectly, to make investment decisions, including accounts of spouses and dependent children. Exceptions are rarely granted and require the written pre-approval of the
employee’s manager and the Firm’s Compliance Department. 
 12.      Employees are expected to adhere to
ethical standards of business conduct including those described in Merrill Lynch’s Guidelines for Business Conduct, its Guidelines for Electronic Communications, and its A Matter of Respect. Failure to do so can result in disciplinary action,
including termination of employment. 
 These conditions of employment may be modified only in writing by the Executive Vice President for the
business unit. 
  

 11 

 

 
 Policy on Statutory Disqualification 
  
  
 The federal securities acts and the Financial Industry Regulatory Authority rules prohibit persons who are subject to “statutory disqualification” from being employed by or associated
with any member of a self-regulatory organization including brokerage firms. A person is subject to statutory disqualification if, within the previous ten year period, he or she has been convicted of, or pled guilty or no contest to,
any felony, regardless of the crime. Thus, persons convicted of a felony involving the possession or use of drugs, domestic violence, assault, etc. are subject to this prohibition, regardless of whether the offense
related in any way to a financial institution, securities or financial transaction. In addition, the prohibition extends to any misdemeanor involving: 
  

	•	 	 Securities, commodities, banking, insurance, real estate, and purchase or sale of a security 

  

	•	 	 Burglary 

  

	•	 	 Counterfeiting 

  

	•	 	 Forgery 

  

	•	 	 Extortion 

  

	•	 	 Making a false statement to a Government Official, Law Enforcement Officer, or under oath 

	•	 	 Bribery 

  

	•	 	 Embezzlement; theft of money 

  

	•	 	 Conspiracy 

  

	•	 	 Robbery 

  

	•	 	 Petit larceny 

  

	•	 	 Theft of a credit card, including use or possession of a stolen credit card 

  

 12 

 THIS AGREEMENT, dated
                        , 2008 (the “Effective Date”) (the
“Covenant Agreement”), by and between Merrill Lynch & Co., Inc., a Delaware corporation (the “Company” or “Merrill
Lynch”), and Thomas K. Montag (the “Executive”). 
 WHEREAS,
the Company has entered into an agreement with the Executive, dated March         , 2008 (the “Agreement”), detailing the terms and conditions of his employment with the Company,
pursuant to which the Company has agreed to pay certain amounts and grant certain equity awards, and the Executive has agreed to enter into this Covenant Agreement with the Company; 
 NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth in this Covenant Agreement, the parties agree as
follows: 
  

	1.	Covenants.    The Executive agrees to the following covenants and agrees that the remedies for failure to comply with these covenants
shall be as set forth herein under the heading “Remedies”. 

  

	 	A.	Notice Period.  The Executive agrees that for the remainder of his or her employment, the Executive shall provide the Company and its affiliates (the
“Group Companies”) with at least six months advance written notice (the “Notice Period”) prior to the termination of the Executive’s employment. The Executive further agrees that during the Notice Period, he or
she shall remain employed by the Company (and receive base salary and certain benefits, but will not receive any payments or distributions or accrue any rights to a bonus or any payments or distributions under the Variable Incentive Compensation
Program, pro-rata or otherwise) and shall not commence employment with any other employer. The Executive further agrees that during the Notice Period, he or she shall not directly or indirectly induce or solicit any client of the Company to
terminate or modify its relationship with Merrill Lynch. 

  

	 	B.	Employment by a Competitor.  The Executive acknowledges that the Group Companies are engaged in a global business and that the Executive has been
involved in providing services to the Group Companies throughout the world. The Executive agrees that, during the period beginning on the date of the termination of his or her employment and ending on the date of vesting of his or her Restricted
Shares or Restricted Units and the expiration date of his or her Stock Options or Stock Appreciation Rights (as those terms are defined in the Company’s Long-Term Incentive Compensation Plans) granted by the Company, he or she will not, without
the Company’s prior written consent, engage in any employment, accept or maintain any directorship or other position, own an interest in, or, as principal, agent, employee, consultant or otherwise, provide any services to anyone, whether or not
for compensation, in any business that is engaged in competition with the business of the Group Companies or its affiliates (a “Competitive Business”). Notwithstanding the foregoing, the Executive may have an interest
consisting of publicly traded securities constituting less than 1 percent of any class of publicly traded securities in any public company that is a competing business. 

  

	 	C.	 Non-Solicitation.  The Executive agrees that the retention of the goodwill and franchise value of the Group Companies would be
seriously eroded if employees were to leave the

  

 13 

	 	 
Group Companies. Accordingly the Executive agrees that he or she will not directly or indirectly solicit for employment any person who is or was an employee of the Group Companies at any time
during the six-month period immediately preceding the date of such solicitation. 

  

	 	D.	No Hire.  The Executive agrees that during a period of six months following his or her termination, he or she will not hire or otherwise engage,
directly or indirectly (including, without limitation, through an entity with which the Executive is associated), as an employee or independent contractor of the Executive or of any entity with which the Executive is associated, any person who is or
was an employee of the Group Companies and who, as of the date of the Executive’s termination of employment, had the title First Vice President or Managing Director or higher and reported directly to the Executive, the Chief Executive Officer
or the President of the Company (“Executive, CEO or President Direct Reports”) or any person with the title First Vice President or Managing Director or higher who, at the time of the Executive’s departure, reported directly to the
Executive, CEO or President Direct Reports, provided, however, that the hiring of any person whose employment was involuntarily terminated by the Group Companies shall not be a violation of this covenant. 

  

	 	E.	Non-Disparagement.  The Executive will not disparage, portray in a negative light, or make any statement which would be harmful to, or lead to
unfavorable publicity for, any of the Group Companies, or any of its or their current or former directors, officers or employees, including without limitation, in any and all interviews, oral statements, written materials, electronically displayed
materials and materials or information displayed on internet- or intranet-related sites; provided however, that this Covenant Agreement will not apply to the extent the Executive is making truthful statements when required by law or by order of a
court or other legal body having jurisdiction or when responding to any inquiry from any governmental agency or regulatory or self-regulatory organization. 

  

	 	F.	 Confidentiality.  The Executive acknowledges that he or she has acquired experience, confidential information, trade secrets, know-how
and particular skills in the affairs, practices, client requirements and trade connections of the Group Companies. Because of the commercial importance to the Group Companies of this knowledge, information and the other matters referred to above,
the Group Companies have an important interest in ensuring that after the termination of the Executive’s employment this knowledge is not used for the personal benefit of the Executive or to the detriment of the Group Companies. Therefore, the
Executive agrees that following any termination of employment: he or she will not without prior written consent or as otherwise required by law, disclose or publish (directly or indirectly) any Confidential Information to any person or copy,
transmit or remove or attempt to use, copy, transmit or remove any Confidential Information for any purpose. “Confidential Information” means any information concerning any of the Group Companies’ business or affairs which is not
generally known to the public and includes, but is not limited to, any file, document, book, account, list, process, patent, specification, drawing, design, computer program or file, computer disk, method of operation, recommendation, report, plan,
survey, data, manual, strategy, financial data, client information or data, or contract which comes to

  

 14 

	 	 
the Executive’s knowledge in the course of his or her employment or which is generated by him or her in the course of performing his or her obligations whether alone or with others.

 The Executive agrees not to disclose the terms of this Covenant Agreement or the circumstances of his or her
termination to any other party, except that the Executive may make such disclosure: on a confidential basis to his or her tax, financial and legal advisors, his or her immediate family members, any prospective employer or business partner,
provided that, in each case, such third party agrees to keep the circumstances of the Executive’s termination and the terms of this Covenant Agreement confidential. 
  

	 	G.	Cooperation.    Executive agrees to (i) provide truthful and reasonable cooperation, including but not limited to his or her appearance
at interviews and depositions, in all legal matters, including but not limited to regulatory and litigation proceedings relating to his or her employment or area of responsibility at the Group Companies, whether or not such matters have already been
commenced and through the conclusion of such matters or proceedings, and (ii) to provide the Group Companies’ counsel all documents in Executive’s possession or control relating to such regulatory or litigation matters. The Company
will reimburse Employee for all reasonable travel expenses in connection with such cooperation. 

 The Executive agrees that the
covenants contained in paragraphs A-G of this Section 1 are reasonable and necessary to protect the legitimate business interests and goodwill of the Group Companies and that agreeing to comply with such restrictions was an inducement for the
Company to agree to enter into the Agreement with the Executive. To the extent that any of the covenants contained in paragraphs A-G of this Section 1 or any other provision of this agreement shall be deemed illegal or unenforceable by a court
or other tribunal of competent jurisdiction with respect to (i) any geographic area, (ii) any part of the time period, (iii) any activity or capacity covered by such covenant, or (iv) any other term or provision of such covenant,
the covenant shall be construed to the maximum breadth determined to be legal and enforceable and the illegality or unenforceability of any one covenant shall not effect the legality and enforceability of the other covenants. 
  

	2.	Equity Grants:    The Executive agrees that Restricted Units, Restricted Shares, Stock Options and Stock Appreciation Rights granted
to him will be subject to forfeiture in the event that the Executive breaches any of the covenants contained in this Covenant Agreement. 

  

	3.	 Remedies. 

  

	 	A.	Forfeiture of Equity Awards.  The Executive agrees that in the event of a breach of any of the covenants contained herein, that his or her outstanding
equity awards shall be forfeited. 

  

	 	B.	 Injunctive Relief.  Without limiting any remedies available, the Executive acknowledges and agrees that a breach of the covenants
contained in subparagraphs A, C, D, E, F and G of paragraph 1 hereof will result in material and irreparable injury to the Group

  

 15 

	 	 
Companies for which there is no adequate remedy at law and that it will not be possible to measure damages for such injuries precisely. Therefore the Executive agrees that, in the event of such a
breach or threat thereof, the Group Companies shall be entitled to seek and obtain a temporary restraining order and a preliminary and permanent injunction, without bond or other security, restraining him or her from engaging in activities
prohibited by subparagraphs A, C, D, E, F and G of paragraph 1 or such other relief as may he required specifically to enforce any of the covenants in subparagraphs A, C, D, E, F and G of paragraph 1, provided however, that the Group
Companies shall be entitled to seek injunctive relief for violations of subparagraph C of paragraph 1 only during the period beginning on the date of the Executive’s termination from the Group Companies and ending on the first anniversary of
that date. 

  

	 	C.	Damages.    In addition to the remedies called for by subparagraphs A and B of this paragraph 3, the Group Companies retains the right to
seek damages and other relief for any breach by the Executive of any covenant contained in this Covenant Agreement, provided however, that the Group Companies shall be entitled to seek damages for violations of subparagraph C of paragraph 1
only during the period beginning on the date of the Executive’s termination from the Group Companies and ending on the first anniversary of that date. 

  

	4.	 Legal Matters 

  

	 	A.	Governing Law.    This Covenant Agreement shall be governed by and construed in accordance with the laws of the State of New York, without
giving effect to the conflicts of laws principles thereof. 

  

	 	B.	Litigation.  The Executive and the Group Companies agree (a) to arbitrate any and all disputes arising out of or related to this Covenant
Agreement before either JAMS (under their Comprehensive Arbitration Rules and Procedures), FINRA and (b) that judgment on any arbitration award may be entered in any court of competent jurisdiction. Any arbitration shall be held in the State
and County of New York. The Executive and the Group Companies further agree that the Group Companies can seek temporary and preliminary injunctive relief in court and submit to the exclusive jurisdiction of any federal or state courts sitting in the
State of New York, County of New York for that purpose and for any purposes for which the aid of the court is required with respect to any arbitration commenced with respect to this Covenant Agreement. The Executive and the Group Companies also
agrees not to bring any action or proceeding arising out of or relating to this Covenant Agreement in any court or forum other than those specified in this paragraph 4.B. The Executive and the Group Companies waives any defense of inconvenient forum
to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of the other party with respect thereto. 

  

 16 

	5.	 Miscellaneous. 

  

	 	A.	Headings.  The section headings contained in this Covenant Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Covenant Agreement. 

  

	 	B.	Employment at Will.    Nothing in this agreement alters the at will nature of the Executive’s employment with the Company or any of the
Group Companies. The Company and any of the Group Companies remain free to terminate the Executive’s employment at any time for any reason without notice (and the notice period in paragraph 1.A of this Covenant Agreement does not apply to such
terminations). 

  

	 	C.	Voluntary Nature of Covenant Agreement.  The Executive represents that he or she is entering into this Covenant Agreement voluntarily and has had
adequate opportunity to consider whether or not to sign it and to seek such counsel as he or she deems appropriate. 

  

	 	D.	Amendment; Waiver.  This Covenant Agreement may not be changed orally; it may only be changed by a writing executed by both parties. Merrill
Lynch’s failure to enforce any provisions of this Covenant Agreement will not constitute waiver of its rights under this Covenant Agreement and shall not operate or be construed as a continuing waiver or as a consent to or waiver of any
subsequent breach hereof. 

  

	 	E.	No Reliance.    Executive is not relying on any representations, understandings, undertakings, statements, or agreements not expressly set
forth in this Covenant Agreement and disclaims any reliance on any such representations, understandings, undertakings, statements, or agreements. 

  

	 	F.	Construction.  In the event an ambiguity or question of intent or interpretation arises, this Covenant Agreement shall be construed as if drafted
jointly by the Executive and the Company, and no presumption or burden of proof shall arise favoring or disfavoring either of them by virtue of the authorship of any of the provisions of this Covenant Agreement. 

  

	 	G.	Counterparts.  This Covenant Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which
together shall constitute one and the same instrument. 

 SIGNATURE PAGE FOLLOWS 
  

 17 

 IN WITNESS WHEREOF, the parties hereto have executed this Covenant Agreement as of the day and year
indicated below. 
  

			
		 	   MERRILL LYNCH & CO., INC.

		
	 By:
	 	         /s/ Peter R.
Stingj

		 	   Name: Peter R. Stingj

		 	   Title: SVP, Head of Global Human
   Resources

		
		 	   Signed on:

		
		 	         /s/ Thomas K.
Montag

 Summary of Agreement with respect to Post-Employment Medical Coverage 
 Should your employment terminate without your attaining eligibility for coverage under Merrill Lynch’s then-current retiree medical plan, and the
termination of your employment is not for Cause, Merrill Lynch will provide access to a plan or policy that will provide coverage that is identical to or better than the coverage provided under the then-current retiree medical plan at a premium cost
to you that is no more than the premium paid by eligible employees paying a premium unsubsidized by Merrill Lynch, on the condition that you do not engage in any employment, accept or maintain any directorship or other position, own an interest in,
or, as principal, agent, employee, consultant or otherwise, provide any services to anyone, whether or not for compensation, in any business that is engaged in competition with the business of Merrill Lynch or its affiliates.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]