Document:

Form of Amended and Restated Change of Control Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED CHANGE OF CONTROL AGREEMENT 
 Amended and Restated August 16, 2006

 This Change of Control Severance Agreement (the “Agreement”) is entered into this
             day of             , 2006 (the “Effective Date”) between
            (“Executive”) and SumTotal Systems, Inc., a Delaware corporation (the “Company”). This Agreement is intended to provide Executive with
the compensation and benefits described herein upon the occurrence of specific events following a change of control of the ownership of the Company (defined as “Change of Control”). 
 RECITALS 
 A. As is the case with most, if not all, publicly traded
businesses, it is expected that the Company from time to time may consider or may be presented with the need to consider the possibility of an acquisition by another company or other change in control of the ownership of the Company. The Board of
Directors of the Company (the “Board”) recognizes that such considerations can be a distraction to Executive and can cause Executive to consider alternative employment opportunities or to be influenced by the impact of a possible change in
control of the ownership of the Company on Executive’s personal circumstances in evaluating such possibilities. The Board has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have
the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of a Change of Control of the Company. 
 B. The Board believes that it is in the best interests of the Company and its shareholders to provide Executive with an incentive to continue his or her employment and to motivate Executive to maximize the value of the Company upon a
Change of Control for the benefit of its shareholders. 
 C. The Board believes that it is important to provide Executive with certain
benefits upon Executive’s termination of employment in certain instances upon or following a Change of Control that provide Executive with enhanced financial security and incentive and encouragement to Executive to remain with the Company
notwithstanding the possibility of a Change of Control. 
 D. At the same time, the Board expects the Company to receive certain
benefits in exchange for providing Executive with this measure of financial security and incentive under the Agreement. Therefore, the Board believes that Executive should provide various specific commitments which are intended to assure the Company
that Executive will not direct Executive’s skills, experience and knowledge to the detriment of the Company or its successor for a period not to exceed the period during which payments are being made to Executive under this Agreement.

 E. Certain capitalized terms used in this Agreement are defined in Article VII. 
  

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 The Company and Executive hereby agree as follows: 
 ARTICLE I. 
 EMPLOYMENT BY THE
COMPANY 
 1.1 Executive is currently employed as              of the Company.

 1.2 This Agreement shall remain in full force and effect commencing on the Effective Date so long as Executive is employed by Company; provided,
however, that the rights and obligations of the parties hereto contained in Articles III through VIII shall survive any termination for the longer of (i) twelve (12) months following a Termination Event (as hereinafter defined) (the
“Term”) or (ii) such longer period provided for in this Agreement. 
 1.3 The Company and Executive each agree and acknowledge that
Executive is employed by the Company as an “at-will” employee and that either Executive or the Company has the right at any time to terminate Executive’s employment with the Company, with or without cause or advance notice, for any
reason or for no reason. The Company and Executive wish to set forth the compensation and benefits which Executive shall be entitled to receive in the event that Executive’s employment with the Company terminates under the circumstances
described in Article II of this Agreement. 
 1.4 The duties and obligations of the Company to Executive under this Agreement shall be in
consideration for Executive’s past services to the Company, Executive’s continued employment with the Company, Executive’s compliance with the obligations described in Section 4.2, and Executive’s execution of the general
waiver and release described in Section 4.3. The Company and Executive agree that Executive’s compliance with the obligations described in Section 4.2 and Executive’s execution of the general waiver and release described in
Section 4.3 are preconditions to Executive’s entitlement to the receipt of benefits under this Agreement and that these benefits shall not be earned unless all such conditions have been satisfied through the scheduled date of payment. The
Company hereby declares that it has relied upon Executive’s commitments under this Agreement to comply with the requirements of Article IV, and would not have been induced to enter into this Agreement or to execute this Agreement in the absence
of such commitments. 
 ARTICLE II. 
 TERMINATION EVENTS 
 2.1 Involuntary Termination Upon or Following Change of Control. 
 (a) In the event Executive’s employment with the Company and its subsidiaries is involuntarily terminated at any time by the Company without Cause
either at the time of or within twelve (12) months following the occurrence of a Change of Control, such termination of employment will be a Termination Event and the Company shall pay Executive the compensation and benefits described in
Article III. 
  

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 (b) In the event Executive’s employment with the Company and its subsidiaries is either
involuntarily terminated by the Company with Cause at any time, or is involuntarily terminated by the Company without Cause at any time other than either at the time of or within twelve (12) months following the occurrence of a Change of
Control, then such termination of employment will not be a Termination Event, Executive will not be entitled to receive any payments or benefits under the provisions of this Agreement. 
 2.2 Voluntary Termination Upon or Following Change of Control. 
 (a) Executive may voluntarily terminate his employment with the Company and its subsidiaries at any time. In the event Executive voluntarily terminates his employment within three (3) months of the occurrence of
an event constituting Good Reason and on account of an event constituting Good Reason, which event occurs either at the time of or within twelve (12) months following the occurrence of a Change of Control, then such termination of employment
will be a Termination Event and the Company shall pay Executive the compensation and benefits described in Article III. 
 (b) In the event
(i) Executive voluntarily terminates his employment for any reason other than on account of an event constituting Good Reason under the circumstances described in Section 2.2(a), or (ii) Executive’s employment terminates on
account of either death or physical or mental disability, then such termination of employment will not be a Termination Event, Executive will not be entitled to receive any payments or benefits under the provisions of this Agreement.

 ARTICLE III. 
 COMPENSATION AND BENEFITS PAYABLE 
 3.1 Right to Benefits. If a Termination Event occurs, Executive shall be entitled to
receive the benefits described in this Agreement so long as Executive complies with the restrictions and limitations set forth in Article IV. If a Termination Event does not occur, Executive shall not be entitled to receive any benefits described in
this Agreement, except as otherwise specifically set forth herein. 
 3.2 Salary Continuation. Upon the occurrence of a Termination Event,
Executive shall receive twelve (12) months worth of Executive’s Base Salary, less any applicable withholding of federal, state or local taxes. Such salary continuation shall be paid in equal semi-monthly installments over the one
(1) year period following the date of the Termination Event. Notwithstanding the foregoing, to the extent required to avoid imposition of any additional tax or income recognition under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), such awards shall be paid or settled as indicated in Section 4.6 below. 
 3.3 Target Bonus. Upon the occurrence
of a Termination Event, Executive shall receive, in one lump sum payment within five (5) days of the Termination Event, 100% of Executive’s Target Bonus, as defined in section 7 herein, less any applicable withholding of federal, state or
local taxes. Notwithstanding the foregoing, to the extent required to avoid imposition of any additional tax or income recognition under Section 409A of the Code, such awards shall be paid or settled as indicated in Section 4.6 below.

  

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 3.4 Health Insurance Coverage. Following the occurrence of a Termination Event, to the extent permitted by the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) and by the Company’s group health insurance policies, Executive and his covered dependents will be eligible to continue their health insurance benefits at their own
expense. If Executive elects COBRA continuation, the Company shall reimburse Executive and his covered dependents’ COBRA continuation premiums for twelve (12) months following the date of the Termination Event, provided that the
Company’s obligation to make such payments shall cease immediately to the extent that Executive and/or his covered dependents are no longer entitled to receive COBRA continuation coverage. Executive agrees to notify a duly authorized officer of
the Company, in writing, immediately upon Executive or a covered dependent beginning to receive health benefits from another source, at which point the Company’s obligation to provide payment for COBRA continuation for that particular newly
covered individual shall cease. 
 This Section 3.4 provides only for the Company’s payment of COBRA continuation premiums for the
periods specified above. This Section 3.4 does not affect the rights of Executive or Executive’s covered dependents under any applicable law with respect to health insurance continuation coverage. 
 3.5 Stock Award Acceleration. Executive’s stock options which are outstanding as of the date of the Termination Event (the “Stock Options”)
shall become fully vested upon the occurrence of the Termination Event and exercisable so long as Executive complies with the restrictions and limitations set forth in Article IV. The maximum period of time during which the Stock Options shall
remain exercisable, and all other terms and conditions of the Stock Options, shall be as specified in the relevant Stock Option agreements and relevant stock plans under which the Stock Options were granted. The term “Stock Options” shall
not include any rights of Executive under the Company’s employee stock purchase plan. 
 In the event Company grants Executive
restrictive stock, Executive’s restricted stock awards that are outstanding as of the date of the Termination Event (“Restricted Stock”) shall become fully vested and free from any contractual rights of the Company to repurchase or
otherwise reacquire the Restricted Stock as a result of Executive’s termination of employment. All shares of Restricted Stock which have not yet been delivered to Executive or his designee (whether because subject to joint escrow instructions
or otherwise) shall be promptly delivered to Executive or his designee upon the occurrence of a Termination Event. 
 3.6 Mitigation. Except as
otherwise specifically provided herein in section 3.4, Executive shall not be required to mitigate damages or the amount of any payment provided under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment
provided for under this Agreement be reduced by any compensation earned by Executive as a result of consulting work for the Company or third party, employment by another employer or by retirement benefits after the date of the Termination Event, or
otherwise. 
  

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 ARTICLE IV. 
 LIMITATIONS AND CONDITIONS ON BENEFITS; AMENDMENT OF AGREEMENT 
 4.1 Reduction in Payments and Benefits;
Withholding Taxes. The benefits provided under this Agreement are in lieu of any benefit provided under any other severance plan, program or arrangement of the Company in effect at the time of a Termination Event. The Company shall withhold
appropriate federal, state or local income, employment and other applicable taxes from any payments hereunder. 
 4.2
Obligations of Executive. 
 (a) For one (1) year following the Termination Event, Executive agrees not to, either directly or
indirectly, solicit, attempt to solicit or cause to be solicited any employee or contractor of the Company to leave his/her employment, terminate his or her work for the Company, or refrain from providing services to the Company, or any of its
subsidiaries or affiliates. 
 (b) Following the occurrence of a Termination Event, Executive agrees to continue to satisfy his or her
obligations under the terms of the Company’s standard form of proprietary information agreement previously executed by Executive (or any comparable agreement subsequently executed by Executive in substitution or supplement thereto).
Executive’s obligations under this Section 4.2(b) shall not be limited to the Term. 
 (c) Executive acknowledges and recognizes
the highly competitive nature of the businesses of the Company and its affiliates and accordingly agrees that for one (1) year following the Termination Event, Executive will not, whether on Executive’s own behalf or on behalf of or in
conjunction with any person, company, business entity or other organization whatsoever, directly or indirectly, perform the same or similar services for any Competitor of the Company or any such entity or person that has a business line that, if a
standalone business, would be considered a Competitor (“Competitive Business Line”). Nothing in this Agreement shall preclude Executive from working for a person or entity that has a Competitive Business Line, so long as (i) the
Competitive Business Line represents less than 10% of the overall business entity’s current or proposed revenues, and (ii) Executive does not work, directly or indirectly, in, for, or with the Competitive Business Line during the one-year
period following the Termination Event. For purposes of this Agreement, the term “Competitor” means any company, partnership, sole proprietorship, organization or other entity which is, or proposes to be, competitive with the Company, or
any of the Company’s lines of business or proposed lines of business. 
 Notwithstanding any provision in this Agreement to the
contrary, it shall not be a violation of this Section 4.2(c) for Executive to own, directly or indirectly, solely as a passive investment, securities of any person engaged in a Competitor, which securities are publicly traded on a national or
regional stock exchange or on the over-the-counter market if Executive (A) is not a controlling person of, or a member of a group which controls, such person, and (B) does not, directly or indirectly, own 5% or more of any class of
securities of such person. 
  

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 (d) It is expressly understood and agreed that although Executive and the Company consider the
restrictions contained in this Section 4 to be reasonable, if a final determination is made that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of
this Agreement shall not be rendered void, but shall be deemed amended to apply as to such maximum time or territory and to such maximum extent as may be enforceable. Alternatively, if any restriction contained in this Agreement is unenforceable,
and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein. In the event that the restrictions in Section 4 are determined to be in
conflict with the restrictions set forth in Executive’s proprietary information agreement, the provisions of this Agreement shall govern so long as Executive is receiving compensation and/or other benefits under this Agreement. 
 (e) Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of
Section 4.2(a), Section 4.2(b), or Section 4.2(c) would be inadequate and, in recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company,
without posting any bond, shall be entitled to cease making any payments or providing any benefit, and recover from Executive all payments or the cost of benefits provided to Executive, required by this Agreement and, with respect to a breach or
threatened breach of Section 4.2(a), Section 4.2(b) or Section 4.2(c) only, obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction, or any other equitable remedy
which may then be available. 
 4.3 Employee Release Prior to Receipt of Benefits. Upon the occurrence of a Termination Event, and prior to the
receipt of any benefits under this Agreement on account of the occurrence of a Termination Event, Executive shall, as of the date of a Termination Event, execute the Company’s then current standard form of employee release, wherein Executive
shall release the Company of any and all claims, known and unknown, she or he may have, including without limitation, all statutory, administrative and tort claims. Such employee release shall specifically relate to all of Executive’s rights
and claims in existence at the time of such execution relating to Executive’s employment with the Company, but shall not include (i) Executive’s rights under this Agreement; (ii) Executive’s rights under any employee benefit
plan sponsored by the Company; or (iii) Executive’s rights to indemnification under the Company’s bylaws or other governing instruments or under any agreement addressing such subject matter between Executive and the Company. If
Executive is over forty (40) years of age on the Termination Date, Executive shall have twenty-one (21) days to consider whether to execute such employee release and Executive may revoke such employee release within seven (7) business
days after execution of such employee release. In the event Executive does not execute such employee release within the twenty-one (21) day period, or if Executive revokes such employee release within the seven (7) business day period, no
benefits shall be payable under this Agreement and this Agreement shall be null and void. Nothing in this Agreement shall limit the scope or time of applicability of such release once it is executed and not timely revoked. 
  

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 4.4 Certain Reductions in Payments. 
 (a) In the event that any payment received or to be received by Executive pursuant to this Agreement (“Payment”) would (i) constitute a “parachute payment” within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this subsection (a), be subject to the excise tax imposed by Section 4999 of the Code, or any comparable federal, state, local or
foreign excise tax (such excise tax, together with any interest and penalties, is hereinafter referred to as the “Excise Tax”), then, subject to the provisions of subsection (b) hereof, such Payment shall be either (A) delivered
in full pursuant to the terms of this Agreement, or (B) delivered as to such lesser extent which would result in no portion of such severance payments and other benefits being subject to the Excise Tax (“Reduced Amount”), whichever of
the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by
Executive, on an after-tax basis, of the greatest amount of severance payments and benefits provided for hereunder, notwithstanding that all or some portion of such severance payments and benefits may be subject to the Excise Tax. Unless the Company
and Executive otherwise agree in writing, any determination required under this Section 4.4 shall be made by independent tax counsel designated by the Company and reasonably acceptable to Executive (“Independent Tax Counsel”), whose
determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required under this Section 4.4, Independent Tax Counsel may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to Independent Tax Counsel such information and documents as
Independent Tax Counsel may reasonably request in order to make a determination under this Section 4.4. The Company shall bear all costs that Independent Tax Counsel may reasonably incur in connection with any calculations contemplated by this
Section 4.4. In the event that Section 4.4(a)(ii)(B) above applies, then based on the information provided to Executive and the Company by Independent Tax Counsel, Executive may, in Executive’s sole discretion and within thirty
(30) days of the date which Executive is provided with the information prepared by Independent Tax Counsel, determine which and how much of the Payments to be otherwise received by Executive shall be eliminated or reduced (as long as after such
determination the value (as calculated by Independent Tax Counsel in accordance with the provisions of Sections 280G and 4999 of the Code) of the amounts payable or distributable to Executive hereunder equals the Reduced Amount). If the Internal
Revenue Service (the “IRS”) determines that a Payment is subject to the Excise Tax, then subsection (b) hereof shall apply, and the enforcement of subsection (b) shall be the exclusive remedy to the Company. 
 (b) If, notwithstanding any reduction described in subsection (a) hereof (or in the absence of any such reduction), the IRS determines that
Executive is liable for the Excise Tax as a result of the receipt of one or more Payments, then Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination, an amount of such Payments equal
to the “Repayment Amount.” The Repayment Amount with respect to such Payments shall be the smallest such amount, if any, as shall be required to be paid to the Company so that Executive’s net proceeds with respect to such Payments
(after taking into account the payment of the Excise Tax imposed on such Payments) shall be maximized. Notwithstanding the foregoing, 
  

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 the Repayment Amount with respect to such Payments shall be zero ($0.00) if a Repayment Amount of more than zero ($0.00)
would not eliminate the Excise Tax imposed on such Payments. If the Excise Tax is not eliminated pursuant to this subsection (b), Executive shall pay the Excise Tax. 
 4.5 Amendment or Termination of This Agreement. This Agreement may be changed or terminated only upon the mutual written consent of the Company and Executive. The written consent of the Company to a
change or termination of this Agreement must be signed by an authorized officer of the Company, after such change or termination has been approved by the Company’s Board of Directors or the Compensation Committee of the Company’s Board of
Directors. 
 4.6 Internal Revenue Code Section 409A. 
 (a) Notwithstanding anything to the contrary in this Agreement, if the Company determines, in its good faith judgment, that Section 409A of the Code will result in the imposition of additional tax to an earlier
payment of any severance payment otherwise due to the Executive on or within the six (6) month period following the Executive’s termination, the severance payment will accrue during such six (6) month period and will become payable in
a lump sum payment on the date six (6) months and one (1) day following the date of the Executive’s termination. All subsequent payments, if any, will be payable as provided in this Agreement. 
 (b) The Executive agrees to work in good faith with the Company to consider amendments to this Agreement, if required by further guidance, which are
necessary or appropriate to avoid imposition of any additional tax or income recognition under Section 409A of the Code prior to the actual payment to the Executive of payments or benefits under this Agreement. 
 ARTICLE V. 
 OTHER RIGHTS AND
BENEFITS NOT AFFECTED 
 5.1 Nonexclusivity. Nothing in the Agreement shall prevent or limit Executive’s continuing or future
participation in any benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company and for which Executive may otherwise qualify, nor shall anything herein limit or otherwise affect such rights as Executive may
have under any stock option or other agreements with the Company; provided, however, that in accordance with Section 4.1, any benefits provided hereunder shall be in lieu of any other severance benefits to which Executive may
otherwise be entitled, including without limitation, under any employment contract or severance plan. Except as otherwise expressly provided herein, amounts which are vested benefits or which Executive is otherwise entitled to receive under any
plan, policy, practice or program of the Company at or subsequent to the date of a Termination Event shall be payable in accordance with such plan, policy, practice or program. 
  

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 5.2 Employment Status. This Agreement does not constitute a contract of employment or impose on Executive
any obligation to remain as an employee, or impose on the Company any obligation (i) to retain Executive as an employee, (ii) to change the status of Executive as an at-will employee, or (iii) to change the Company’s policies
regarding termination of employment. 
 ARTICLE VI. 
 NON-ALIENATION OF BENEFITS 
 No benefit hereunder shall be subject to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void. 
 ARTICLE VII. 
 DEFINITIONS 
 For purposes of the
Agreement, the following terms shall have the meanings set forth below: 
 7.1 “Agreement” means this
Change of Control Severance Agreement. 
 7.2 “Base Salary” means Executive’s annual salary (excluding bonus, any other
incentive or other payments and stock option exercises) from the Company at the time of the occurrence of the Change of Control or a Termination Event, whichever is greater. 
 7.3 “Cause” means misconduct, including but not limited to: (i) conviction of any felony or any crime involving moral turpitude or dishonesty which has a material adverse effect on the
Company’s business or reputation; (ii) repeated unexplained or unjustified absences from the Company; (iii) refusal or willful failure to act in accordance with any specific lawful direction or order of the Company or stated written
policy of the Company which has a material adverse effect on the Company’s business or reputation; (iv) a material and willful violation of any state or federal law which if made public would materially injure the business or reputation of
the Company as reasonably determined by the Board; (v) willful participation in a fraud or act of dishonesty against the Company which has a material adverse effect on the Company’s business or reputation; (vi) willful conduct by
Executive which the Board determines demonstrates gross unfitness to serve; or (vii) intentional, material violation by Executive of any contract between Executive and the Company or any statutory duty of Executive to the Company that is not
corrected within thirty (30) days after written notice to Executive thereof. Whether or not the actions or omissions of Executive constitute “Cause” within the meaning of this Section 7.3 shall be decided by the Board based upon
a reasonable good faith investigation and determination. Physical or mental disability shall not constitute “Cause.” 
  

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 7.4 “Change of Control” means the occurrence of any of the following events: 
 (i) The sale, exchange, lease or other disposition or transfer of all or substantially all of the consolidated assets of the Company to a person or group
(as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) which will continue the business of the Company in the future; or 
 (ii) A merger or consolidation involving the Company in which the shareholders of the Company immediately prior to such merger or consolidation are not
the beneficial owners (within the meaning of Rules 13d-3 and 13d-5 promulgated under the Exchange Act) of more than 50% of the total voting power of the outstanding voting securities of the corporation resulting from such transaction in
substantially the same proportion as their ownership of the total voting power of the outstanding voting securities of the Company immediately prior to such merger or consolidation; or 
 (iii) The acquisition of beneficial ownership (within the meaning of Rules 13d-3 and 13d-5 promulgated under the Exchange Act) of at least 50% of the
total voting power of the outstanding voting securities of the Company by a person or group (as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Exchange Act). 
 7.5 “Company” means SumTotal Systems, Inc., a Delaware corporation, and any successor thereto. 
 7.6 “Good Reason” means (i) reduction of Executive’s rate of compensation as in effect immediately prior to the Effective Date of this Agreement or in effect immediately prior to the occurrence of a Change of
Control, whichever is greater, other than reductions in Base Salary that apply broadly to employees of the Company or reductions due to varying metrics and achievement of performance goals for different periods under variable pay programs;
(ii) either (A) failure to provide a package of benefits which, taken as a whole, provides substantially similar benefits to those in which Executive is entitled to participate immediately prior to the occurrence of the Termination Event
(except that employee contributions may be raised to the extent of any cost increases imposed by third parties) or (B) any action by the Company which would materially and adversely affect Executive’s participation or reduce
Executive’s benefits under any of such plans, other than changes that apply broadly to employees of the Company; (iii) change in Executive’s duties, responsibilities, authority, job title, or reporting relationships resulting in a
material diminution of position, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith which is remedied by the Company promptly after notice thereof is given by Executive; (iv) request that
Executive relocate to a worksite that is more than twenty-five (25) miles from his prior worksite, unless Executive accepts such relocation opportunity; (v) failure or refusal of a successor to the Company to assume the Company’s
obligations under this Agreement, as provided in Section 8.7; or (vi) material breach by the Company or any successor to the Company of any of the material provisions of this Agreement or any other employment related agreement or plan.

 7.7 “Target Bonus” means that amount (expressed as a percentage of Executive’s Base Salary) equal to Executive’s
“target bonus” (including Company-wide performance and individual 
  

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 performance) as defined under the terms of the Company’s Executive Incentive Compensation Plan (or the comparable
term or standard under the Company’s cash incentive plan in effect at the time of Executive’s Termination Event if the Executive Incentive Compensation Plan is no longer in effect at such time) as set for Executive by the Compensation
Committee of the Board of Directors or other authorized body covering the twelve month period ending at the end of the performance period during which Executive’s Termination Event occurs, regardless of whether or not, or to what degree, the
actual performance, either personal or Company-wide, objectives have been met. 
 7.8 “Termination Event” means an involuntary termination
of employment described in Section 2.1(a) or a voluntary termination of employment described in Section 2.2(a). No other event shall be a Termination Event for purposes of this Agreement. 
 ARTICLE VIII. 
 GENERAL PROVISIONS

 8.1 Notices. Any notices provided hereunder must be in writing and such notices or any other written communication shall be deemed
effective upon the earlier of personal delivery (including personal delivery by telex or facsimile) or the third day after mailing by first class mail, to the Company at its primary office location and to Executive at Executive’s address as
listed in the Company’s payroll records. Any payments made by the Company to Executive under the terms of this Agreement shall be delivered to Executive either in person or at such address as listed in the Company’s payroll records.

 8.2 Severability. It is the intent of the parties to this Agreement that whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, the court of
competent jurisdiction shall modify such invalid, illegal or unenforceable term to valid, legal, and enforceable term that most accurately reflects the parties’ intentions, and such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein. 
 8.3 Waiver. If either party should waive any breach of any provisions of this Agreement, that party shall not thereby be deemed to have waived any
preceding or succeeding breach of the same or any other provision of this Agreement. 
 8.4 Complete Agreement. This Agreement constitutes the
entire agreement between Executive and the Company and it is the complete, final, and exclusive embodiment of their agreement with regard to this subject matter, and supersedes all other agreements, if any, Executive may have had with the Company or
its predecessor regarding severance and/or benefits upon a Change of Control. 
 8.5 Counterparts. This Agreement may be executed in separate
counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement. 
  

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 8.6 Headings. The headings of the Articles and Sections hereof are inserted for convenience only and shall
neither be deemed to constitute a part hereof nor to affect the meaning thereof. 
 8.7 Successors and Assigns. This Agreement is intended to
bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not delegate any of Executive’s duties hereunder and may
not assign any of Executive’s rights hereunder without the written consent of the Company, which consent shall not be withheld unreasonably. Any successor to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the Company’s obligations under this Agreement in the same manner and to the same extent as the Company would be
required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets, whether or not such successor executes
and delivers an assumption agreement referred to in the preceding sentence or becomes bound by the terms of this Agreement by operation of law or otherwise. 
 8.8 Mediation and Arbitration. Executive and the Company agree that any dispute arising out of or relating to this Agreement will be resolved, to the fullest extent permitted by law, by final, binding and confidential
arbitration in San Francisco, California conducted by Judicial Arbitration and Mediation Services (“JAMS”) under its then-existing rules and procedures, after the Company and Executive have attempted to resolve such disputes through
mediation at JAMS. Executive acknowledges that by agreeing to this arbitration procedure, both Executive and the Company waive the right to resolve any such dispute through a trial by jury or judge or by administrative proceeding. In addition
to and notwithstanding those rules, Executive and the Company agree that the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by
law; and (b) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. The Company shall pay all of the JAMS arbitration fees in excess of those administrative fees
Executive would be required to pay if the dispute were decided in a court of law. Nothing in this Agreement is intended to prevent either Executive or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the
conclusion of any such mediation or arbitration. The venue for such mediation and arbitration, and, if applicable, court proceeding, shall be the San Francisco Bay area. The prevailing party in any such action shall be entitled to recover such
party’s reasonable attorneys’ fees and costs incurred in connection with such action. 
 8.9 Choice of Law. All questions concerning
the construction, validity and interpretation of this Agreement will be governed by the laws of the State of California, without giving effect to principles of conflict of law. 
 8.10 Construction of Plan. In the event of a conflict between the text of the Agreement and any summary, description or other information regarding the Agreement, the text of the Agreement shall control.

  

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 IN WITNESS WHEREOF, the parties have
executed this Agreement on the day and year written above. 
  

									
	 SumTotal Systems, Inc.,
 a
Delaware corporation
	 	 	 	Executive
					
	By:	 	  
	 		 	Name:	 	  

	Name:	 	  
	 		 	Signature:	 	  

	Title:	 	  
	 		 	Date:	 	  

	Date:	 	  
	 		 		 	

  

 13Form of Global Distribution Agreement

 Exhibit 10.4 
 GLOBAL DISTRIBUTION AGREEMENT 
 THIS GLOBAL DISTRIBUTION AGREEMENT dated as of
[                    ], 2006, is made by and between New BlackRock, Inc., a Delaware corporation (“BlackRock”), and Merrill
Lynch & Co., Inc., a Delaware corporation (“Merrill Lynch” and, together with BlackRock, the “Parties” and each, a “Party”). 
 RECITALS: 
 WHEREAS, BlackRock, through its Affiliates (as defined below),
provides asset management, risk management, investment analytics and enterprise investment system services and other related financial products and services; 
 WHEREAS, Merrill Lynch is a diversified global financial services company that, itself and through its Affiliates, provides a broad range of financial services and products to consumer and corporate customers,
including asset management, investment analytics, securities brokerage, investment banking and other related financial products and services; 
 WHEREAS, Merrill Lynch, BlackRock, Inc. (“Old BlackRock”), BlackRock and [BlackRock Merger Sub] entered into a Transaction Agreement and Plan of Merger, dated as of February 15, 2006 (the “Transaction
Agreement”), pursuant to which Old BlackRock would become a wholly owned Subsidiary of BlackRock and Merrill Lynch would sell to BlackRock certain asset management businesses currently operated as Merrill Lynch Investment Managers
(“MLIM”) in exchange for shares of common stock and preferred stock of BlackRock (collectively, the “Transaction”); 
 WHEREAS, the execution and delivery of this Agreement is a condition to the closing of the Transaction; 
 WHEREAS, existing MLIM Products (as defined below) currently have access to the Merrill Lynch Distributors (as defined below) of Merrill Lynch; and 
 WHEREAS, in connection with the Transaction, the Parties desire to enter into a general relationship providing for the distribution by Merrill Lynch, through its Affiliates, of MLIM Products and BlackRock Products (as
defined below) within the United States and internationally pursuant to the terms of this Agreement. 
 NOW THEREFORE, in consideration of
the mutual covenants, agreements and promises contained in this Agreement, the Parties agree as follows: 
 Section
1    Definitions. 
 (a) For purposes of this Agreement, unless the context requires otherwise, the following terms will
have the following meanings: 

 “1940 Act” means the Investment Company Act of 1940, as amended from time to time, and
the rules and regulations promulgated under such Act by the SEC. 
 “Advisers Act” means the Investment Advisers Act of
1940, as amended from time to time, and the rules and regulations promulgated under such Act by the SEC. 
 “Access to
BlackRock” has the meaning set out in Section 6(b) of this Agreement. 
 “Access to Merrill Lynch
Distributors” has the meaning set out in Section 6(a) of this Agreement. 
 “Affiliate” means, with respect to
any specified Person, any other Person that at the time of determination, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such specified Person. 
 “Agreement” means this Agreement and the schedules hereto, as amended from time to time. 
 “Applicable Standards and Practices” means, for Merrill Lynch or BlackRock or any of their respective Affiliates, the client service and
relationship standards, business practices standards, ethical standards, confidentiality obligations and policies, customer privacy and protection policies, general service quality standards, product due diligence review and selection standards,
reputational considerations, industry standards and requirements of such Person as are applied by such Person in good faith on a consistent and nondiscriminatory basis during the period in question. 
 “BlackRock” has the meaning set out in the preamble to this Agreement. 
 “BlackRock Products” means all proprietary investment products or services offered, sponsored, advised or subadvised by BlackRock or any
of its Controlled Affiliates during the term of this Agreement, including any such investment products that are RICs or other pooled investment vehicles, wrap fee programs (as defined in Rule 204-3 under the Advisers Act) and separately managed
accounts, including without limitation, after the date of the closing of the Transaction, any MLIM Product. 
 “Business
Day” means any day other than a Saturday, Sunday or day on which banking institutions in New York, New York are authorized or obligated pursuant to the Requirements of Law or executive order to be closed. 
 “Confidential Information” means all confidential, proprietary or non-public information disclosed by either Party, its Affiliates or
their respective representatives to the other Party, its Affiliates or their respective representatives in connection with the arrangements contemplated by this Agreement, provided, however, that this term shall not include any
information independently developed or obtained by 

  

 2 

 
the receiving Party or its Affiliates without violating any obligation under this Agreement, so long as such information was not obtained from a third party
where the receiving Party knew or should have known that such information was misappropriated or otherwise wrongfully obtained. 
 “Control” (including its correlative meanings “Controlled by” and “under common Control with”) means the possession, directly or indirectly, of power to direct or cause the direction of the
management or policies (whether through ownership of securities or partnership or other ownership interest, by contract or otherwise). 
 “Controlled Affiliate” of any Person means a Person that is directly or indirectly Controlled by such other Person. 
 “Covered Products” means the BlackRock Products and the MLIM Products. 
 “Distribute” (including
its correlative meaning “Distribution”) with respect to any Product means offering, selling or recommending such Product or providing advice to consumers of investment products and services with respect to such Product. 

“Governmental Authority” means any federal, national, supranational, state, provincial, local, or similar government, governmental,
regulatory or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral body, including the SEC and any SRO within or outside the United States. 
 “Merrill Lynch” has the meaning set out in the preamble to this Agreement. 
 “Merrill Lynch Distributor” means any Affiliate of Merrill Lynch that at any time during the term hereof Distributes Products, whether
domestically or internationally. 
 “MLIM” has the meaning set forth in the recitals to this Agreement. 
 “MLIM Products” means all of the investment advisory products offered, sponsored, advised or subadvised by MLIM or any of its Controlled
Affiliates at any time on or after the date of this Agreement, including any such products acquired by BlackRock pursuant to or after the Transaction, including any of such investment products as are RICs, or other pooled investment vehicles, wrap
fee programs (as defined in Rule 204-3 under the Advisers Act) or separately managed accounts. 
 “NASD” means the National
Association of Securities Dealers, Inc. 
 “Party” and “Parties” have the meanings set forth in the
preamble to this Agreement. 
  

 3 

 “Person” means any individual, corporation, business trust, partnership, association,
limited liability company, unincorporated organization or similar organization, or any Governmental Authority. 
 “Products”
are investment advisory products and services such as RICs or other pooled investment vehicles, wrap fee programs (as defined in Rule 204-3 under the Advisers Act) or separately managed accounts. 
 “Representatives” means directors, officers, employees, agents, advisors and other representatives of a Party. 
 “Requirement of Law” means, with respect to any Person, any domestic or foreign federal or state statute, law, ordinance, rule,
administrative code, administrative interpretation, regulation, order, consent, writ, injunction, directive, judgment, decree, policy, ordinance, decision, guideline or other requirement of (or agreement with) any Governmental Authority (including
any memorandum of understanding or similar arrangement with any Governmental Authority), in each case binding on that Person or its property or assets. 
 “Restart Date” has the meaning set forth in Section 4(a)(iv) of this Agreement. 
 “RIC” means an U.S. investment management company registered under the 1940 Act and any class, series or portfolio thereof. 
 “Sales Force” means, with respect to any Merrill Lynch Distributor, the Global Private Client group point of sale personnel and their direct supervisors utilized by such Merrill Lynch Distributor or
any of its Affiliates, whose job responsibility includes the Distribution directly to clients of the Covered Products in question or Products of the type that would generally be viewed as competitive with the applicable Covered Products in the
channel in question. 
 “SEC” means the Securities and Exchange Commission. 
 “Selling Agreement” has the meaning set forth in Section 7 of this Agreement. 
 “SRO” means the NASD, the New York Stock Exchange, Inc., the National Futures Association, each national securities exchange in the
United States and each other board or body, whether United States or foreign, that is charged with the supervision or regulation of brokers, dealers, commodity pool operators, commodity trading advisors, futures commission merchants, securities
underwriting or trading, stock exchanges, commodities exchanges, insurance companies or agents, investment companies or investment advisers. 
  

 4 

 “Stockholder Agreement” has the meaning given to such term in the Transaction Agreement.

 “Transaction” has the meaning set forth in the recitals to this Agreement. 
 “Transaction Agreement” has the meaning set forth in the recitals of this Agreement. 
 Any capitalized term used but not otherwise defined herein shall have the meaning given to such term in the Transaction Agreement. 
 Section 2    Representations and Warranties of Merrill Lynch. 
 Merrill Lynch represents to BlackRock as follows: 
 (a) Each of Merrill Lynch and each Merrill Lynch Distributor (i) is duly organized, validly existing and, to the extent applicable, in good standing under the laws of its jurisdiction of organization; (ii) has the power and
authority, and the legal right, to own its assets and to transact the business in which it is engaged; and (iii) is duly qualified to do business and, to the extent applicable, is in good standing under the laws of each jurisdiction in which
its ownership or lease of property or the conduct of its business requires such qualification; and (iv) is in compliance with all Requirements of Law, except for any failures of compliance, individually or in the aggregate, that would not have
a material adverse effect on the performance by Merrill Lynch of its obligations under this Agreement. 
 (b) Each of Merrill Lynch and each
Merrill Lynch Distributor has all necessary power and authority to make, execute, deliver and perform this Agreement (in the case of Merrill Lynch) and each Selling Agreement to which it is or becomes a party and to perform all of the obligations to
be performed by it under this Agreement or under such Selling Agreement, as applicable. The making, execution, delivery and performance by Merrill Lynch and each Merrill Lynch Distributor of this Agreement (in the case of Merrill Lynch) and each
Selling Agreement to which it is or will become a party, and the consummation by Merrill Lynch and such Merrill Lynch Distributor of the transactions contemplated by this Agreement (in the case of Merrill Lynch) and by such Selling Agreement to
which it is or will become a party, have been, or will be, duly and validly authorized by all necessary corporate action on the part of Merrill Lynch and such Merrill Lynch Distributor. Except as shall have been obtained or made prior to the
execution thereof, no consent or authorization of, filing with, or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability by or
against Merrill Lynch of this Agreement and by or against Merrill Lynch or any Merrill Lynch Distributor of each Selling Agreement to which it is, or will become, a Party. 
 (c) This Agreement has been duly and validly executed and delivered by Merrill Lynch, and assuming the due authorization, execution and delivery by

  

 5 

 
BlackRock, this Agreement constitutes the valid, legal and binding obligation of Merrill Lynch, enforceable against it in accordance with its terms, except
as may be subject to applicable bankruptcy, insolvency, moratorium or other similar Requirement of Law, now or hereafter in effect, affecting the enforcement of rights of creditors generally and by legal and equitable limitations on the
enforceability of specific remedies. 
 (d) Upon execution and delivery, and assuming the due authorization, execution and delivery by
BlackRock or any of its Affiliates, each Selling Agreement will constitute the valid, legal and binding obligation of the respective Merrill Lynch Distributor which is a party thereto, enforceable against it in accordance with its terms, except as
may be subject to applicable bankruptcy, insolvency, moratorium or other similar Requirement of Law now or hereafter in effect, affecting the enforcement of rights of creditors generally and by legal and equitable limitations on the enforceability
of specific remedies. 
 (e) Neither the execution and delivery of this Agreement nor any Selling Agreement by Merrill Lynch or any Merrill
Lynch Distributor which is an Affiliate of Merrill Lynch as of the date of this Agreement, respectively, nor the consummation of the transactions contemplated by this Agreement or by any such Selling Agreement, respectively, will (i) violate or
conflict with any provision of the articles of incorporation or bylaws or other organizational documents of Merrill Lynch or any such Merrill Lynch Distributor, (ii) violate any of the terms, conditions, or provisions of any Requirement of Law
or license to which Merrill Lynch or any such Merrill Lynch Distributor is subject or by which either one or any of their assets are bound, or (iii) violate, breach or constitute a default under any contract to which Merrill Lynch or any such
Merrill Lynch Distributor is a party or by which either one or any of their assets is bound. 
 Section
3    Representations and Warranties of BlackRock. 
 BlackRock represents to Merrill Lynch as follows:

 (a) BlackRock and each of its Affiliates identified on Schedule A to this Agreement (i) is duly organized, validly existing
and, to the extent applicable, in good standing under the laws of its jurisdiction of organization; (ii) has the power and authority, and the legal right, to own its assets and to transact the business in which it is engaged; and (iii) is
duly qualified to do business and, to the extent applicable, is in good standing under the laws of each jurisdiction in which its ownership or lease of property or the conduct of its business requires such qualification; and (iv) is in
compliance with all Requirements of Law, except for such failures of compliance, individually or in the aggregate, that would not have a material adverse effect on the performance by BlackRock of its obligations under this Agreement. 
 (b) BlackRock and each of its Affiliates identified on Schedule A to this Agreement have all necessary power and authority to make, execute, deliver and
perform this Agreement and each Selling Agreement, respectively, and to perform all of 

  

 6 

 
the obligations to be performed by it under this Agreement or under each such Selling Agreement. The making, execution, delivery and performance by BlackRock
and each such Affiliate of this Agreement and each Selling Agreement, respectively, and the consummation by BlackRock and each such Affiliate of the transactions contemplated by this Agreement and by each such Selling Agreement, respectively, have
been, or will be, duly and validly authorized by all necessary corporate action on the part of BlackRock and each such Affiliate. Except as shall have been obtained prior to execution thereof, no consent or authorization of, filing with, or other
act by or in respect of, any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability by or against BlackRock or any of such Affiliates of this Agreement and each
Selling Agreement to which it is, or will become, a Party. 
 (c) This Agreement has been duly and validly executed and delivered by
BlackRock, and assuming the due authorization, execution and delivery by Merrill Lynch, this Agreement constitutes the valid, legal and binding obligation of BlackRock, enforceable against it in accordance with its terms, except as may be subject to
applicable bankruptcy, insolvency, moratorium or other similar Requirement of Law, now or hereafter in effect, affecting the enforcement of rights of creditors generally and by legal and equitable limitations on the enforceability of specific
remedies. 
 (d) Upon execution and delivery, and assuming the due authorization, execution and delivery by the respective Merrill Lynch
Distributor, each Selling Agreement will constitute the valid, legal and binding obligation of the respective Affiliate of BlackRock which is a party thereto, enforceable against it in accordance with its terms, except as may be subject to
applicable bankruptcy, insolvency, moratorium or other similar Requirement of Law now or hereafter in effect, affecting the enforcement of rights of creditors generally and by legal and equitable limitations on the enforceability of specific
remedies. 
 (e) Neither the execution and delivery of this Agreement nor any Selling Agreement by BlackRock or any of its Affiliates, nor
the consummation of the transactions contemplated by this Agreement or by any such Selling Agreement, respectively, will (i) violate or conflict with any provision of the articles of incorporation or bylaws or other organizational documents of
BlackRock or any such Affiliate, (ii) violate any of the terms, conditions, or provisions of any Requirement of Law or license to which BlackRock or any such Affiliate is subject or by which either one or any of their assets are bound, or
(iii) violate, breach or constitute a default under any contract to which BlackRock or any such Affiliate is a party or by which either one or any of their assets is bound. 
 Section 4    Product Distribution Arrangements. 
 (a) Except as otherwise agreed to by the Parties, with respect to any Covered Products, Merrill Lynch shall cause each Merrill Lynch Distributor to continue to provide BlackRock and its Affiliates (including, after
the closing of the Transaction, 

  

 7 

 
MLIM) Distribution by Merrill Lynch Distributors with respect to each Covered Product Distributed by such Merrill Lynch Distributor as of the date of the
Transaction Agreement or on the date hereof, subject to Requirements of Law and the Applicable Standards and Practices of the applicable Merrill Lynch Distributor with respect to Covered Products Distributed by such Merrill Lynch Distributor. For
the avoidance of doubt, in accordance with Applicable Standards and Practices, prior to terminating Distribution of any Covered Product as a result of the application of Applicable Standards and Practices, consistent with current Merrill Lynch
operating practice the applicable Merrill Lynch Distributor shall, as early as reasonably practicable, discuss with BlackRock the reasons therefor and to the extent practicable give BlackRock the opportunity to bring the Covered Product back into
compliance with Applicable Standards and Practices and, in the event of termination, discuss with BlackRock and consider the substitution of another Covered Product for the terminated Product, consistent with Requirements of Law and Applicable
Standards and Practices. 
 (i) The economic terms between the Parties for Distribution by the Merrill Lynch Distributors
with respect to each Covered Product in effect as of the date of the Transaction Agreement shall remain the same as those in effect on such date, except as the parties may otherwise agree, and the economic terms between the Parties for Distribution
by the Merrill Lynch Distributors with respect to each other Covered Product in effect as of the date of this Agreement shall remain the same as those in effect as of the date of this Agreement (collectively, the “Current Terms”). A
summary of the Current Terms (the “Summary”) has been developed by Merrill Lynch and BlackRock. With respect to any Covered Product first Distributed by a Merrill Lynch Distributor after the date hereof that falls within a category, type
or platform set forth in the Summary and for which the Current Terms includes the relevant economic terms, such economic terms shall apply equally to the newly introduced Covered Product. 
 (ii) With respect to any Covered Product first Distributed by a Merrill Lynch Distributor after the date hereof and also distributed
through non Merrill Lynch Distributors, the Merrill Lynch Distributors shall be offered the most favorable economic terms offered by BlackRock to other distributors of such Product. If any Covered Product, other than any Covered Product that falls
within a category, type or platform to which the Current Terms apply in accordance with Section 4(a)(i), becomes part of a group or program of similar products distributed by the Merrill Lynch Distributors, some of which Products are sponsored
by managers other than BlackRock, the economic terms offered by the Merrill Lynch Distributor to BlackRock for the Distribution of such Covered Product shall be at least as favorable to BlackRock and the Covered Product as the most favorable
economic terms to which any of such Products is entitled. Notwithstanding the foregoing provisions of this clause (ii), no Merrill Lynch Distributor shall be required to extend to a Covered Product, and BlackRock shall not be required to extend to
the Merrill Lynch Distributors, the most favorable economic terms that the Merrill Lynch Distributors or BlackRock, respectively, 

  

 8 

 
may provide to managers or Distributors, as the case may be, with respect to a Product that a Merrill Lynch Distributor or BlackRock, as the case may be,
reasonably determines represents a unique or substantially differentiated opportunity relative to the relevant Covered Product or the Distribution, respectively, offered by BlackRock or Merrill Lynch. 
 (iii) With respect to any Merrill Lynch Distributor that does not at the time in question Distribute a particular Covered Product,
Merrill Lynch will, upon the request of BlackRock, use all commercially reasonable efforts to obtain Distribution of any Covered Products by such Merrill Lynch Distributor as so requested by BlackRock on the same terms as provided above in Section
4(a)(i) and (ii), subject to Requirements of Law, the Applicable Standards and Practices and the applicable Merrill Lynch Distributor. 
 (iv) Subject to Requirements of Law and to Applicable Standards and Practices, the economic terms attaching to each Covered Product as referred to in Section 4(a)(i) shall remain in effect until at least
January 1, 2009 (the “Restart Date”). 
 (v) Prior to the Restart Date, BlackRock and Merrill Lynch
shall each appoint a committee of senior representatives of BlackRock and its Controlled Affiliates, on the one hand, and Merrill Lynch Distributors, on the other hand, to (i) identify and discuss any economic terms relating to distribution
that either Party may wish to amend on and after the Restart Date, and (ii) prior to the Restart Date, reach agreements on any mutually agreeable changes to existing economic terms for distribution with respect to each MLIM Product and
BlackRock Product to be effective as of January 1, 2009. Subject to Requirements of Law and Applicable Standards and Practices, the economic terms shall stay in effect from year to year thereafter, being similarly reviewed once annually.

 (vi) In the event that any economic terms with respect to Covered Products (excluding any Covered Product that falls
within a category, type or platform to which the Current Terms apply in accordance with Section 4(a)(ii)) are modified as a result of Requirements of Law or Applicable Standards and Policies, the modified economics shall be, to the maximum
extent permitted by Requirements of Law, at least as favorable to such Covered Products and BlackRock as the most favorable economic terms then offered by the applicable Merrill Lynch Distributor to other Products that would generally be viewed as
competitive with the Covered Product in question (including, to the extent relevant, product type and/or class and asset class and style). 
 (b) Merrill Lynch will not, and will cause any Merrill Lynch Distributor that enters into a Selling Agreement with respect to a Covered Product pursuant to Section 7 of this Agreement not to, provide to its Sales Force for the sale of

  

 9 

 
Products that are not Covered Products and that would generally be viewed as competitive with the applicable Covered Products (including, to the extent
relevant, product type and/or class and asset class and style) in the channel in question any compensation or economic inducement or benefit that is greater than that provided to such Sales Force for the sale of such Covered Products in such
channel, provided, that this provision is not intended to prohibit a Merrill Lynch Distributor from selling Products that provide for different rates of sales load, placement, Rule 12b-1, trailing commissions or other related fees
(e.g., Class A shares for different Products or funds that have different sales compensation structures). For the avoidance of doubt, as an example of the foregoing, the Parties agree that any more favorable compensation or economic
inducement or benefit shall not have occurred if a Covered Product and such competitive Product that have the same pricing structure, and members of such Sales Force are entitled to varying dollar amounts of compensation as a result of the
application of such pricing structure’s breakpoints to different purchase amounts or the application of different payout ratios among the members of such Sales Force in accordance with the predetermined formula for payout ratio to the sales
resulting from such purchase amounts. 
 (c) Subject to Requirements of Law and Applicable Standards and Practices, until January 1,
2009, Merrill Lynch expects to maintain its current arrangements with respect to the existing money market funds sponsored or managed by MLIM (which funds are identified on Schedule 4(c) hereto). In addition, Merrill Lynch will not implement or
execute a business program that is intentionally designed to cause multiple Merrill Lynch customers holding such MLIM money market fund shares to redeem such shares for transfers to bank deposit products of the Merrill Lynch banks. 
 (d) Notwithstanding the foregoing provisions, in case of a direct or indirect acquisition by Merrill Lynch of the assets or business of another entity
engaged in the Distribution of Products whether or not competitive with the applicable Covered Products in the channel in question, (i) no such acquisition will limit or restrict any obligation of any Merrill Lynch Distributor to Distribute
Covered Products pursuant to the terms of this Agreement or any Selling Agreement, as applicable, and (ii) at the request of BlackRock, Merrill Lynch shall use all commercially reasonable efforts to cause such newly acquired Merrill Lynch
Distributor to Distribute Covered Products on the same basis as set forth in Section 4(a), subject to Requirements of Law, Applicable Standards and Practices and any contractual provisions such acquired business is subject to immediately prior
to the execution of the related acquisition agreement, (provided that such contractual provision was not entered into in connection with, as a part of or in preparation for, such acquisition). 
 (e) In the event that BlackRock determines to recommend the merger or combination of any MLIM Product that is a RIC or other pooled investment vehicle
with any BlackRock Product that is a RIC or other pooled investment vehicle, such merger or combination shall be, subject to applicable fiduciary duties and applicable Requirements of Law, effected in a manner designed to preserve for each Party the

  

 10 

 
benefits of the economic arrangements set forth in this Section 4 and in any Selling Agreement related to such Products (e.g., commission/share
class structure, 12b-1 fee, shareholder servicing or subadministration fee and marketing support or other distribution related payments). For the avoidance of doubt, in the event of the merger or combination of any MLIM Product with respect to which
BlackRock is required to make such payments under a Selling Agreement into a BlackRock Product with respect to which BlackRock is required to make similar payments at differing rates, BlackRock shall, until the expiration of this Agreement and the
existing terms and conditions pertaining to such payments and subject to applicable fiduciary duties and Requirements of Law, make payments at a weighted average rate determined by the ratio of the net asset value of the relevant MLIM Product
immediately prior to the merger or combination and the net asset value of the relevant BlackRock Product immediately after the merger or combination immediately after giving effect to the merger or combination. For purposes of any such relevant
payments that are asset-based payments, such weighted average rate shall be applied to all assets under management of the BlackRock Product, whether such assets were under management before or are under management after the merger or combination.
BlackRock will give reasonable prior notice to Merrill Lynch of such determination to enable the Parties to plan for any such merger or combination. 
 Section 5    Product Availability. 
 (a) During the term of this Agreement,
subject to Requirements of Law and Applicable Standards and Practices, BlackRock shall permit, and shall cause its Controlled Affiliates to permit, each Merrill Lynch Distributor to Distribute, and each such Merrill Lynch Distributor shall have the
right to Distribute, any existing MLIM Products, on a basis not less favorable than that on which any Merrill Lynch Distributor currently Distributes such MLIM Products. For any other Covered Product or range of Covered Products for which a Merrill
Lynch Distributor expresses an interest to BlackRock, upon request of such Merrill Lynch Distributor, BlackRock will use all commercially reasonable efforts to cause each Merrill Lynch Distributor to have the right to Distribute such products on a
basis not less favorable than that on which any Merrill Lynch Distributor currently distributes comparable MLIM Products in the channel in question or other Products that would generally be viewed as competitive with such Covered Product in the
channel in question, subject to Requirements of Law and Applicable Standard and Practices. The economic terms will conform with Section 4(a)(ii) and (iv). 
 (b) Notwithstanding the foregoing provisions, in case of a direct or indirect acquisition by BlackRock of the assets or business of another entity engaged in offering, sponsoring or providing investment advisory or
subadvisory services with respect to any Product, (i) no such acquisition will limit or restrict any obligation of BlackRock to provide the Merrill Lynch Distributors the ability to Distribute Covered Products other than the Covered Products of
such acquired business pursuant to the terms of this Agreement or any Selling Agreement, as applicable, and (ii) at the request of Merrill Lynch, BlackRock will use all commercially reasonable efforts to cause, subject 

  

 11 

 
to Requirements of Law and to Applicable Standards and Practices and any contractual provisions such acquired business is subject to immediately prior to the
execution of the related acquisition agreement causing such acquired business to provide the Merrill Lynch Distributors with the ability to Distribute the investment products of such acquired business on the same basis as set forth in
Section 5(a). 
 Section 6    Support. 
 (a) Merrill Lynch will cause each Merrill Lynch Distributor which is a party to a Selling Agreement from time to time to provide BlackRock and any of its
Affiliates with Access to Merrill Lynch Distributors in connection with the Distribution of the Covered Products covered thereby. For purposes of this Agreement, “Access to Merrill Lynch Distributors” means that Merrill Lynch and
the Merrill Lynch Distributors will seek to provide the personnel of BlackRock and its Affiliates the same degree of access to and contact and interaction with the Sales Force and management and the general distribution network, infrastructure and
systems of the applicable Merrill Lynch Distributor as provided to MLIM by such Distributor as of the date of the Transaction Agreement, subject to compliance with Requirements of Law, including, but not limited to, contact directly, by telephone
and in person, through written materials and electronic mail to such Sales Force and management, and access to certain management information systems and data bases, for purposes of providing or obtaining information, resources, communications,
training and education, including, with respect to Covered Products, information regarding sales of Covered Products, market trends and analysis, product development and similar matters relating to the sale of the Covered Products, in all cases
subject to the detailed protocol referred to in the next succeeding sentence. For the avoidance of doubt, Merrill Lynch and BlackRock shall develop a detailed protocol covering access, identifying any limitations on aspects of existing access
required by Requirements of Law and such other matters as may otherwise be agreed by the parties. Upon completion of such detailed protocol and the mutual determination and listing of specific support and access venues and notwithstanding anything
contrary in the definition of “Access to Merrill Lynch Distributors” set forth above in this Section 6(a), Merrill Lynch and the Merrill Lynch Distributors will provide the personnel of BlackRock and its Affiliates with the specific
support, access and interaction contained in such list. Such detailed protocol shall include the terms and conditions of information exchange and system security for all information provided by Merrill Lynch to BlackRock. 
 (b) BlackRock will and will cause each of its Controlled Affiliates which is a party to a Selling Agreement from time to time to provide to any Merrill
Lynch Distributor which is a party to such Selling Agreement with Access to BlackRock in connection with the distribution of the Covered Products covered thereby. For purposes of this Agreement, “Access to BlackRock” means that
BlackRock will seek to provide personnel of each Merrill Lynch Distributor the same degree of access to and contact and interaction with the employees of BlackRock and its Controlled Affiliates as provided by MLIM and its Controlled Affiliates to
personnel of the applicable Merrill 

  

 12 

 
Lynch Distributors prior to the date of this Agreement, subject to compliance with Requirements of Law and the Applicable Standards and Practices of
BlackRock and its Controlled Affiliates, including, but not limited to, contact directly, by telephone (including access to call center facilities as currently exist), through written materials, electronic mail or otherwise for purposes of providing
or obtaining information, resources, communications, training and education, including information regarding investment objectives and strategies, portfolio contents and characteristics, performance, outlook, market commentary, product development
and similar matters relating to the management and sale of the Covered Products. BlackRock agrees to use commercially reasonable efforts to support the sales of BlackRock Products and provide reasonable sales support for Covered Products.

 (c) In order to facilitate the Access to Merrill Lynch Distributors for BlackRock, Merrill Lynch and BlackRock agree, subject to the
requirements of Applicable Law, to cooperate to implement a plan for locating certain BlackRock employees in or near branch office locations of Merrill Lynch Distributors, the principal terms of which plan shall be as agreed to by the Parties.

 Section 7    Selling Agreements. 
 (a) To effectuate this Agreement, BlackRock will, or will cause a Controlled Affiliate of BlackRock to, and Merrill Lynch will cause one or more of the Merrill Lynch Distributors to, enter into, effective as of the
date of the closing of the Transaction with respect to Covered Products existing as of such date, and from time to time thereafter with respect to all other Covered Products (subject to Section 8(a)), distribution, service or other necessary
and appropriate agreements (collectively, “Selling Agreements”) that implement the terms and conditions of this Agreement and are otherwise consistent with industry practice, applicable Requirements of Law, Applicable Standards and
Practices and the provisions of this Agreement. Subject to applicable Requirements of Law, the Parties agree to cooperate with each other from the date hereof with respect to seeking any approvals that may be required by a board of
directors/trustees of any RIC that is a Covered Product. 
 (b) Subject to applicable Requirements of Law and Applicable Standards and
Practices, a Merrill Lynch Distributor that enters into a Selling Agreement with respect to a Covered Product will be entitled to receive compensation (including, as applicable, sales loads and other fees in accordance with applicable rules and
regulations of the SEC and NASD and other Requirements of Law) with respect to the sale of such Covered Product as set forth in Section 4(a) of this Agreement. Merrill Lynch and BlackRock shall work together to develop a detailed understanding
of the existing payment practices. 
 (c) BlackRock and Merrill Lynch agree that this Agreement is intended to set out the principal business
terms upon which they will enter into Selling 

  

 13 

 
Agreements during the term of this Agreement and that nothing in this Agreement creates a Selling Agreement with respect to any product or service.

 (d) In the event that the terms of a Selling Agreement conflict with the terms of this Agreement, the terms of this Agreement will control
for purposes of the Selling Agreement. 
 Section 8    New BlackRock Products. 
 (a) At any time during the term of this Agreement, subject to the Applicable Standards and Practices and to Requirements of Law, Merrill Lynch will, upon
notice from BlackRock, use all commercially reasonable efforts to provide Distribution services and Access to Merrill Lynch Distributors with respect to any BlackRock Product introduced after the date hereof on the terms as provided by
Section 4(a). In connection with the exercise of such right by BlackRock, such Merrill Lynch Distributors will enter into in accordance with Section 7 or amend in accordance with Section 18 one or more Selling Agreements. 

(b) Neither Merrill Lynch nor any Merrill Lynch Distributor may require BlackRock or any of its Affiliates, and BlackRock and its Affiliates will not
be required to, offer any new Covered Product. In addition, neither Merrill Lynch nor any Merrill Lynch Distributor will have the right to limit BlackRock or any of its Affiliates from developing or launching any new Covered Products. 
 Section 9    Trademarks. 
 (a) Merrill Lynch hereby grants to BlackRock a non-exclusive, nontransferable, world wide limited license to use the marks set forth on Exhibit
[            ] (the “Merrill Lynch Licensed Marks”) [note, this schedule will include the primary trademarks that BR will use, such as MERRILL LYNCH, etc.] for use solely
in connection with the sale and distribution of certain designated MLIM Products (set forth on Exhibit [ ] [and any other products mutually agreed by Merrill Lynch and BlackRock from time to time]) for the term of this Agreement. The foregoing
license is conditioned upon conformance by BlackRock with any reasonable written usage guidelines provided by Merrill Lynch from time to time, which may include matters such as the appearance, placement, attribution requirements, approvals for
advertising and other published materials, and association with other marks, with respect to any of the Merrill Lynch Licensed Marks and upon BlackRock’s adherence to quality control standards for the provision of goods and services in
connection with the Merrill Lynch Licensed Marks that Merrill Lynch notifies to BlackRock in writing. 
 (b) BlackRock hereby grants to
Merrill Lynch a non-exclusive, nontransferable, world wide limited license to use the marks set forth on Exhibit [            ] (the “BlackRock Licensed Marks”)[same concept as
above but using the BlackRock marks] in connection with the sale and distribution of certain designated BlackRock Products set forth on Exhibit [ ] [and any other products mutually agreed by Merrill Lynch and 

  

 14 

 
BlackRock from time to time] for the term of this Agreement. The foregoing license is conditioned upon conformance by Merrill Lynch with any usage guidelines
provided by BlackRock from time to time, which may include matters such as the appearance, placement, attribution requirements, approvals for advertising and other published materials, and association with other marks, with respect to any of the
BlackRock Licensed Marks and upon Merrill Lynch’s adherence to quality control standards for the provision of goods and services in connection with the BlackRock Licensed Marks that BlackRock notifies to Merrill Lynch in writing. 
 (c) Each Party reserves the right to terminate all or any of the licenses granted in Sections 9(a) and (b) above with respect to any mark
and/or any jurisdiction in which it is used in the event that it determines in its reasonable discretion that (i) use by the other party results in (A) a breach or violation of Applicable Law, (B) dilution, tarnishment or any other
damage to the marks (or goodwill associated therewith) licensed by such Party hereunder, as determined in the reasonable discretion of the Party granting the license, or (C) a royalty being payable or reasonably likely to be payable to a third
party or (ii) the other party has (A) violated any of the conditions of use contained in Section 9(a) or (b), respectively, (B) in any way impuned, diluted, tranished or damaged the ownership by such party or goodwill in any of
the marks licensed by such Party, including without limitation, by claiming ownership of such marks or any confusingly similar mark or using any of such marks in a manner not authorized under this Agreement or other written agreement between the
Parties or makes any use whatsoever of any confusingly similar marks. Such termination shall be subject to notice and the ability to cure only to the extent that the licensing party in its sole discretion, deems appropriate after giving regard to
the reason for termination. 
 EACH PARTY HEREBY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ALL WARRANTIES
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT AND THE LIKE TO THE EXTENT PERMITTED UNDER ANY APPLICABLE LAW; AND THE LICENSES GRANTED UNDER THIS AGREEMENT ARE GRANTED ON AN “AS IS” BASIS, AND EACH PARTY ASSUMES ALL
RISKS OF USING THE OTHER PARTY’S MARKS. 
 Section 10    Other Agreements. 
 (a) Each Party shall be responsible for complying with all applicable Requirements of Law then in effect in carrying out such Party’s obligations
under this Agreement. 
 (b) Each Party will disclose, and will cause its Affiliates to disclose, any information concerning this Agreement
and the arrangements contemplated by this Agreement to its customers to the extent required by any Requirement of Law and any applicable obligations to customers. 
  

 15 

 (c) During the term of this Agreement, each Party shall be entitled to review in advance and comment on
any public disclosure that the other Party or any of its Affiliates may propose to make regarding this Agreement, any other understandings between the Parties with respect to the arrangements contemplated hereby or the performance by a Party or any
of its Affiliates of the provisions of this Agreement, including in any reports or other filings to be made by either Party under the federal securities laws. 
 (d) BlackRock and Merrill Lynch will establish a committee consisting of senior representatives of BlackRock and its Controlled Affiliates, on the one hand, and Merrill Lynch Distributors, on the other hand, to
coordinate implementation of the distribution and access provisions of Sections 4 through 10 of this Agreement. Such committee shall meet quarterly or at such other periods as Merrill Lynch and BlackRock may agree and seek to refine the application
of the principles and agreements set forth herein, to resolve issues and disputes arising hereunder and to seek ways of working together to enhance the business of each Party. Such committee shall operate by consensus insofar as possible and its
determinations shall be implemented by the Parties and their Affiliates only to that extent. 
 (e) Subject to applicable Requirements of
Law, upon Merrill Lynch’s request, BlackRock will cooperate with any efforts by Merrill Lynch to seek approval by the board of directors or trustees of those BlackRock Products that are RICs that one or more Merrill Lynch Distributors
identified by Merrill Lynch be appointed to act as an additional principal underwriter of such products. 
 (f) Prior to and after the
closing of the Transaction, Merrill Lynch will, and will cause the Merrill Lynch Distributors, upon BlackRock’s request, to use reasonable best efforts to make available to BlackRock and its Affiliates any information regarding agreements and
arrangements for the Distribution of then existing MLIM Products. 
 Section 11    Confidentiality. 
 (a) Following the closing of the Transaction, each Party shall keep confidential, and use its reasonable best efforts to cause its Controlled Affiliates
and their officers, directors, employees and advisors to keep confidential, all Confidential Information in its possession provided by the other party hereto relating to Merrill Lynch and its Affiliates and BlackRock and its Affiliates, except
(i) as required by a Requirement of Law, (ii) for information that is or becomes known or available to the public at the time of disclosure, or thereafter becomes known to the public other than as a result of a breach of this
Section 11(a) or (iii) for information that is or was received from a third party that, to the knowledge of such Party to this Agreement, is or was (at the relevant time) not in breach of a confidentiality obligation with regard to such
information. 
  

 16 

 (b) Inasmuch as any breach of this Section 11 may result in immediate and irreparable injury, it is
recognized and agreed that each of the Parties shall be entitled to equitable relief, including injunctive relief and specific performance, without any requirement for the posting of bond. 
 (c) BlackRock and Merrill Lynch shall work together to develop the terms and conditions applicable to BlackRock’s receipt and use of personal
information of any individual. 
 Section 12    Effectiveness; Duration and Termination of this Agreement.

 (a) This Agreement will become effective as of the date hereof and will have an initial term of three years. After such initial term,
unless otherwise agreed by the Parties, this Agreement shall automatically renew for additional one-year terms so long as all of the following conditions apply: 
 The Stockholder Agreement continues to be in full force and effect and neither BlackRock nor any of its Affiliates is in material breach
of this Agreement or the Stockholder Agreement; 
 (i) None of BlackRock’s investment adviser subsidiaries or
BlackRock’s registered broker-dealer subsidiaries is subject to a statutory disqualification from serving as investment adviser or principal underwriter to a registered investment company pursuant to Section 9(a) or 9(b) of the 1940 Act;

 (ii) None of BlackRock’s investment adviser subsidiaries is subject to revocation of its registration as, or
otherwise is ineligible to serve as, an investment adviser pursuant to Section 203 of the Advisers Act; 
 provided, however, that provisions (a)(ii)
and (a)(iii) shall not apply to any such disqualification or revocation resulting from acts by Merrill Lynch, its Affiliates or employees prior to Closing. 
 (iii) Merrill Lynch continues to own at least 20% of the Capital Stock of BlackRock; 
 (iv) Merrill Lynch has not communicated to BlackRock its intent to reduce its ownership of Capital Stock of BlackRock below 20%; and

 (v) There has been no Change of Control of BlackRock. 
 If at any time after the three-year initial term, any one of the above conditions is not met, Merrill Lynch will have the right to terminate this
Agreement upon written notice to BlackRock. 
  

 17 

 (b) Notwithstanding the foregoing, (i) the termination of this Agreement will not (A) reduce or
curtail the term of any Selling Agreement that extends beyond the end of the term of this Agreement or (B) prejudice or otherwise affect any rights or obligations of any Person existing at the time of such termination under the terms of any
Selling Agreement entered into hereunder and (ii) the provisions of Sections 1, 11, 12(b) and 13 through 21 shall survive termination of this Agreement. 
 Section 13    Relationship Between the Parties. 
 Nothing contained in this
Agreement will be deemed to be construed by the Parties or any third party as creating a partnership, an agency relationship or joint venture between the Parties or any of their respective employees, representatives or agents. 
 Section 14    Assignment. 
 No Party may assign or transfer all or part of its rights or obligations under this Agreement without the prior written consent of the other Party, and any purported assignment without such consent will be void;
provided, that such prior written consent will not be required in the event that BlackRock or Merrill Lynch sells, transfers, divests or otherwise disposes of all or substantially all of its business to one or more of its Controlled
Affiliates. This Agreement shall be binding on the successors and permitted assigns of each Party hereto; provided, that dispositions of assets or entities to unaffiliated third parties representing not more than 20% of assets under
management in the case of BlackRock or 20% of sales force in the case of Merrill Lynch may be made free from the foregoing limitations. In order to implement the purposes and intentions of this Agreement, in the event of a sale by Merrill Lynch of
any business or entity that represents or controls the placement of a material amount of the assets of Covered Products in the Merrill Lynch system, Merrill Lynch will work with BlackRock to obtain assurances from such business or entity and/or the
purchaser thereof to the effect that after the sale Covered Products will not be systemically replaced by products sponsored by asset management firms other than BlackRock. 
 Section 15    Costs and Expenses. 
 Except as otherwise provided herein, each Party agrees to bear its own costs and other expenses incurred by it in connection with the negotiation, preparation or performance of the obligations set out in this
Agreement. 
 Section 16    Severability. 
 Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction. If any provision of 

  

 18 

 
this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 
 Section 17    Entire Agreement. 
 This Agreement, the Transaction Agreement and the Selling Agreements represent the entire understanding between the Parties in relation to the matters contemplated by this Agreement and supersede all prior discussions
and agreements among the Parties with respect to the subject matter of this Agreement. 
 Section 18    Application of
Agreement. 
 None of the arrangements provided for in Section 4,5,6,7 or 8 of this Agreement shall apply to any activities of
Merrill Lynch or its Affiliates as a clearing broker or similar activities for other broker-dealers, banks or other financial intermediaries or their clients. 
 Section 19    Amendments and Waivers. 
 No amendment to this Agreement will be
effective unless it is in writing and signed by each Party. Any failure of a Party to comply with any obligation, covenant, agreement or condition contained in this Agreement may be waived by the Party entitled to the benefits of the provision only
by a written instrument duly executed and delivered by the Party granting the waiver, but the waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition will not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure of compliance. 
 Section 20    Notices. 
 All notices and other communications hereunder shall be in writing in the English language and shall be addressed as follows (or at such other address
for a party as shall be specified by like notice): 
 If to BlackRock: 
 BlackRock, Inc. 
 40 East 52nd Street 
 New York,
NY 10022 
 Fax: (212) 754-8787 
 Attention: Ms. Susan Wagner 
  

 19 

 With copies to: 
 BlackRock, Inc. 
 40 East 52nd Street 
 New York, NY 10022 
 Fax: (212) 409-3744 
 Attention: Robert
P. Connolly, Esq. 
 and 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 Four Times Square 
 New York, New York 10036 
 Fax:
(212) 735-2000 
 Attention: Richard Prins, Esq. 
 If to Merrill Lynch: 
 Merrill Lynch & Co., Inc. 
 222 Broadway 
 New York, New York 10038

 Fax: (212) 670-4518 
 Attention: Mr. Richard E. Alsop 
 With copies to: 
 Sullivan & Cromwell LLP 
 125 Broad
Street 
 New York, New York 10004 
 Fax: (212) 558-3588 
 Attention: Mitchell S. Eitel, Esq. 
 All such notices or communications shall be deemed to have been delivered and received: (a) if delivered in person, on the day of such delivery,
(b) if by fax, on the day on which such fax was sent, provided that receipt is personally confirmed by telephone, (c) if by certified or registered mail (return receipt requested), on the seventh Business Day after the mailing thereof or
(d) if by reputable overnight delivery service, on the second Business Day after the sending thereof. Each notice, written communication, certificate, instrument and other document required to be delivered under this Agreement shall be in the
English language, except to the extent that such notice, written communication, certificate, instrument and other document is required by Applicable Law to be in a language other than English. 
  

 20 

 Section 21    Governing Law. 
 THIS AGREEMENT, THE LEGAL RELATIONS BETWEEN THE PARTIES AND THE ADJUDICATION AND THE ENFORCEMENT THEREOF, SHALL BE GOVERNED BY AND INTERPRETED AND
CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED WHOLLY WITHIN THAT JURISDICTION. 
 Section 22    Consent to Jurisdiction. 
 Each party to this Agreement, by its
execution hereof, (a) hereby irrevocably submits to the non-exclusive jurisdiction of the State Courts of the State of New York, New York County or the United States District Court located in the State of New York, New York County for the
purpose of any and all actions, suits or proceedings arising in whole or in part out of, related to, based upon or in connection with this Agreement or the subject matter hereof, (b) hereby waives to the extent not prohibited by Applicable Law,
and agrees not to assert, by way of motion, as a defense or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution,
that any such action brought in one of the above-named courts should be dismissed on grounds of forum non conveniens, should be transferred to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some
other proceeding in any other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to commence any such action other than before
one of the above-named courts nor to make any motion or take any other action seeking or intending to cause the transfer or removal of any such action to any court other than one of the above-named courts whether on the grounds of inconvenient forum
or otherwise. Each party hereby (i) consents to service of process in any such action in any manner permitted by New York law; (ii) agrees that service of process made in accordance with clause (i) or made by registered or certified
mail, return receipt requested, at its address specified pursuant to Section 18, shall constitute good and valid service of process in any such action and (iii) waives and agrees not to assert (by way of motion, as a defense, or otherwise)
in any such action any claim that service of process made in accordance with clause (i) or (ii) does not constitute good and valid service of process. 
 Section 23    Hold Harmless. (a) In the event that at any time prior to the first anniversary of the Closing (i) Merrill Lynch materially breaches its obligations under this
Agreement, (ii) such breach shall not have been cured within 30 days after the date that Merrill Lynch or any of its Controlled Affiliates shall have first become aware of such breach (by becoming aware of such breach as a result of a
notice received from BlackRock) by returning BlackRock to the financial position it would have been in but for such breach and (iii) BlackRock shall not be in material default under this Agreement 

  

 21 

 
at such time, then Merrill Lynch agrees to pay to BlackRock, subject to the other provisions of this Section 23, an amount (not less than zero) equal to
the sum of: 
 [(i) the product of (A) the Decline Amount in respect of the Liquidity Client Accounts and (B) 7.1,
plus 
 (ii) the product of (A) the Decline Amount in respect of the Long Term Asset Accounts and (B) 4.9,
less 
 (iii) the product of (A) the sum of the Decline Amounts for the Liquidity Client Accounts and the Long
Term Asset Accounts and (B) 0.02.] 
 (b) For purposes of this Section 23: 
 (i) “Adjusted Assets Under Management” as of any date means, for each Product Class included in the Specified Client
Accounts in question as of such date, the amount (expressed in U.S. dollars) of assets under management by BlackRock and its Affiliates (including for this purpose the [MLIM] Business) in such accounts as of such date, valued (a) for purposes
of calculating the Closing Revenue Run-Rate, as of the Closing Measurement Date and (b) for purposes of calculating the First Anniversary Revenue Run-Rate, as of the First Anniversary Measurement Date, at the amount calculated pursuant to
clause (a) above, but (i) increased by the positive and decreased by the negative excess of (A) additions and contributions (including reinvestments of distributions) actually funded to such accounts after the Closing Measurement Date
and on or prior to the First Anniversary Measurement Date over (B) terminations, withdrawals, redemptions and repurchases actually funded out of such accounts after the Closing Measurement Date and on or prior to the First Anniversary
Measurement Date and (ii) increased, with respect to any new accounts of such Persons opened on or prior to the First Anniversary Measurement Date, by the amount of additions and contributions (net of terminations, withdrawals, redemptions and
repurchases) actually funded to such accounts after the Closing Measurement Date and on or prior to the First Anniversary Measurement Date; provided, in each case, that: 
  

	 	(I)	withdrawals, redemptions and repurchases shall be taken into account on the date, if any, on which the applicable Person receives notice communicating an intention to withdraw any
assets from or terminate an existing account (unless such notice has been revoked prior to the applicable date); 

  

	 	(II)	any assets under management for any account for which the applicable Person or an Affiliate acts as investment adviser and sub-adviser shall be counted only once; and

  

 22 

	 	(III)	any assets under management for any set of accounts one of which invests in the other shall be counted only once if the applicable Person or an Affiliate acts as investment adviser
to both. 

 (ii) “Applicable Fee Rate” means, with respect to each Product Class comprising
any Specified Client Accounts, (A) as of the Closing Measurement Date, the applicable aggregate annualized fee rate set forth for such Product Class on Exhibit [    ] hereto and (B) as of the First
Anniversary Measurement Date, the same fee rate, as it may be adjusted by BlackRock to reflect changes in the actual aggregate fee rate experience of BlackRock in the period from the Closing Measurement Date up to the First Anniversary Measurement
Date. Any such adjustment referred to in clause (B) shall take effect only if it is proposed by BlackRock to Merrill Lynch in writing, accompanied by reasonably detailed support for the adjustment, and approved by Merrill Lynch, such approval
not to be unreasonably withheld. For purposes of this definition, the “applicable annualized fee rate” for each Product Class shall not include the effect of any performance-based fees or adjustments thereto or any extraordinary revenue
items, and shall be reduced to take account of any then applicable fee waiver, expense reimbursement or rebate, or any reallowance of administration or sub- or co-administration fees, shareholder servicing or other such fees to any Person in
connection with such Product Class. 
 (iii) “Closing Revenue Run-Rate” means, for any Specified Client
Accounts, the Revenue Run-Rate of BlackRock and its Affiliates (including for this purpose the [MLIM] Business) as of the Closing Measurement Date for such Specified Client Accounts. 
 (iv) “Decline Amount” means, with respect to either the Liquidity Client Accounts or Long Term Asset Accounts, as
applicable, the excess, if any, expressed in dollars, of (A) the Closing Revenue Run-Rate with respect to such Specified Client Accounts over (B) the First Anniversary Revenue Run-Rate with respect to such Specified Client Accounts.

 (v) “First Anniversary Measurement Date” [insert the one-year anniversary of the Closing Date].

 (vi) “First Anniversary Revenue Run-Rate” means, for any Specified Client Accounts, the Revenue Run-Rate
of BlackRock and its Affiliates (including for this purpose the [MLIM] Business) as of the First Anniversary Measurement Date for such Specified Client Accounts. 
 (vii) “Liquidity Client Accounts” means all assets under management in Covered Products that are comprised of money
market Funds and similar cash management vehicles or other similar assets held in cash management separate accounts, but excluding the institutional funds set forth on 

  

 23 

 
Schedule 23(b)(vii) and, in each case, that are attributable to Distribution through the Global Private Client segment of Merrill Lynch. 
 (viii) “Long Term Asset Accounts” means all assets under management in Covered Products that are attributable to
Distribution through the Global Private Client segment of Merrill Lynch, other than Liquidity Client Accounts and the institutional funds set forth on Schedule 23(b)(vii). 
 (ix) “Product Class” means each category, type or platform of Covered Products that is set forth in
Exhibit [    ] hereto. 
 (x) “Revenue Run-Rate” means, with respect to any
Specified Client Accounts as of any date, the aggregate annualized investment advisory, subadvisory, administration, sub- or co-administration, shareholder servicing, 12b-1 Plan and similar fees computed primarily by reference to assets under
management that are payable to BlackRock or any of its Affiliates (including for this purpose the [MLIM] Business) in respect of all such Specified Client Accounts as to which such Persons provide any of the foregoing services, equals the sum of the
following amounts: for each Product Class included in such Specified Client Accounts, multiplying the Adjusted Assets Under Management in such Product Class as of such date by the Applicable Fee Rate for such Product Class as of such date and, in
the case of any Person that is not a wholly-owned Subsidiary of BlackRock, by multiplying the foregoing product by the direct and indirect percentage participation of BlackRock in the revenues or income, as applicable, of such Person. 
 (xi) “Specified Client Accounts” means either the Liquidity Client Accounts or the Long Term Asset Accounts or both of
them, as the context requires. 
 [Remainder of Page Intentionally Left Blank.] 
  

 24 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. This Agreement may be executed by the parties hereto in any number of counterparts, all of which will constitute one and the same instrument. 
  

			
	MERRILL LYNCH & CO., INC.
		
	By:	 	  
		 	 Name:
 Title:

  

			
	NEW BLACKROCK, INC.
		
	By:	 	  
		 	 Name:
 Title:

  

 25

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