SUPPLEMENTAL INFORMATION MEMORANDUM XENON ...

PROVISIONS RELATING TO SECURITY
be construed accordingly) will apply to such
Deliverable Obligations comprising both Bonds
and Loans.
On the Alternative Cash Settlement Date, the
Issuer will pay the Alternative Cash Settlement
Amount, to be apportioned pro rata among all
Securityholders, in full satisfaction of its payment
obligations in respect of the Securities.
Alternative Cash Settlement is more fully
described in Condition CL7 (Physical Settlement)
of the Credit-Linked Conditions Module, June
2007 Edition as modified by this paragraph (l).
8. Initial Charged Assets: Subject to paragraph 9 below, EUR15,000,000 in
aggregate principal amount of the
EUR1,500,000,000 Floating Rate Notes due
September, 2010 of Merrill Lynch S.A. (ISIN and
Common Code XS0231029868 and 023102986,
respectively).
9. Substitution of Initial Charged
Assets:
(a)
(b)
At the direction of the
Counterparty pursuant to
Condition 4(b)(i)
(Substitution at direction of
Counterparty):
At the direction of the
Securityholders pursuant to
Condition 4(b)(ii)
(Substitution at the request
of Securityholders):
Not Applicable.
Not Applicable.
10. Charged Agreements:
(a) Counterparty: Merrill Lynch International of Merrill Lynch
Financial Centre, 2 King Edward Street, London
EC1A 1HQ.
(b) Swap Agreement: A 1992 ISDA Master Agreement (Multicurrency –
Cross Border) and Schedule thereto (in the form of
the Swap Schedule Terms Module, June 2007
Edition) dated as of 11th September, 2007 as
supplemented by a confirmation (comprising both
20