Health SavingsAccount

A New Way to Look at

Health Care Expenses

Disclosures and Account Agreement

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Funding Your Health care CostsWith a Merrill Lynch HSA. . . . . . . . . . . . . . . . . . . . 2

Merrill Lynch Health Savings AccountDisclosure Statement . . . . . . . . . . . . . . . . . . . . . . 3

Opening an Account. . . . . . . . . . . . . . . . . . . . . . . . . . 4

Your Right to Revoke Within Seven days . . . . . . . . . . 5

I. Ways to Contribute to your HSA . . . . . . . . . . . . . . . . 5

II. Who Can Make Annual HSA ContributionsA. General Eligibility. . . . . . . . . . . . . . . . . . . . . . . . 6B. High-Deductible Health Plans . . . . . . . . . . . . . . 7

III. Annual Contribution Restrictions and LimitsA. Contribution Limits and Restrictions . . . . . . . . . 7B. Contributions if You are Married. . . . . . . . . . . . . 8C. Deductible Contributions and Income

Exclusion Limits . . . . . . . . . . . . . . . . . . . . . . . . 8D. Deadlines for HSA Contributions . . . . . . . . . . . . 9E. Reports of Contributions . . . . . . . . . . . . . . . . . . 9F. Your Right to Your HSA. . . . . . . . . . . . . . . . . . . . 9

IV. Transfer and Rollover ContributionsA. Transfer of Assets to or From Your HSA . . . . . . . 9B. Rollover Contributions to or From

Your HSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9C. Special Direct Rollovers From Your IRA

to Your HSA . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

V. HSA ServicesA. Three Services . . . . . . . . . . . . . . . . . . . . . . . . 10B. Securities Account. . . . . . . . . . . . . . . . . . . . . . 10C. Money Account available through

the Sweep Program. . . . . . . . . . . . . . . . . . . . . 11• Investing• Cash Management • Primary money account-Merrill Lynch Bank Deposit Program

D. Debit Card/Check Account. . . . . . . . . . . . . . . . 13• Check Writing• Charges made abroad

E. Overdrafts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14• Billing rights and overdrafts

F. Prohibited Transactions . . . . . . . . . . . . . . . . . . 15G. Investor Protection . . . . . . . . . . . . . . . . . . . . . 15H. Altering or Waiving Conditions of the

HSA Services. . . . . . . . . . . . . . . . . . . . . . . . . . 15

VI. Rules Governing Distributions. . . . . . . . . . . . . . . . 15A. General RulesB. Distributions to Pay “Qualified” Medical ExpensesC. Distributions Before and After Age 65,

Disability or DeathD. Distributions Due to Your Death

E. Federal Estate and Gift Tax ConsiderationsF. Mistaken Distributions

VII. Excess Contributions . . . . . . . . . . . . . . . . . . . . . . 18

VIII. Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

IX. Disclosures about the HSA Debit Card and Electronic Transfers . . . . . . . . . . . . . . . . . . . . 19A. General RulesB. Liability for Unauthorized HSA Debit

Card UseC. Types of Electronic TransfersD. Limitations on Electronic TransfersE. Right to Receive DocumentationF. Liability for Unauthorized Electronic TransfersG. ChargesH. Finding Out About a Recurring Electronic TransferI. Stopping Electronic PaymentsJ. Liability for Failure to Make Electronic TransfersK. In Case of Errors or Questions About

Electronic TransfersL. Disclosing Information About Your HSAM. Changing These Rights and ResponsibilitiesN. Account InformationO. About Optional Services

• Historical Pricing and Valuation Service• Account Statement Linking

• Automated Investing• Direct Deposit• Direct Reinvestment• Funds Transfer Service• MyMerrill.com• Inter-company Transfer of Funds• Additional Notes on Electronic Transfers• Electronic Transfers Include• Your Liability

• Limits on Electronic Transfers• Transaction Information• Recurring Transfers

• Reporting Errors or Questions

X. IRS Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

XI. IRS Can Provide More Information . . . . . . . . . . . . 25

Merrill Lynch Health Savings Account Custodial Agreement . . . . . . . . . . . . . . . . . . . . . . 25

Section 1: Establishing Your HSA. . . . . . . . . . . . . . . . 261.1 When Your HSA is Established1.2 Your Legal Responsibility

Section 2: Contributions to Your HSA . . . . . . . . . . . . . 262.1 Types of Contributions Accepted2.2 Annual HSA Contributions2.3 Rollovers and Transfers from Other

HSAs or Archer MSA

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2.4 Special Direct Rollovers from IRAs2.5 Employer Contributions2.6 Method of Making Contributions2.7 Maximum Contributions2.8 Timing of Contributions

Section 3: Integrated Financial Service . . . . . . . . . . . 273.1 Description of Your HSA3.2 Securities Account3.3 Debit Cards and Checks3.4 Purchasing Power3.5 Account Inquiries3.6 Your Right to Distribution3.7 Directing a Distribution3.8 Mistaken Distributions

Section 4: Death and Beneficiaries . . . . . . . . . . . . . . 304.1 Effect of Death on HSA4.2 Naming a Beneficiary

Section 5: Your and Our Rights and Responsibilities . . . 315.1 Fees and Other Expenses5.2 Records and Reports5.3 Taxes5.4 Limits on Our Responsibility as Custodian5.5 Termination of HSA Services and

Resignation of Custodian

Section 6: Other Rules Governing Your HSA. . . . . . . . 326.1 Your Right to Your HSA Balance6.2 Restrictions on the Sale or Transfer

of Your HSA6.3 Presumption of Receipt of

Communications6.4 Credit Information 6.5 Indemnification and Lawsuits Involving

Your HSA6.6 Account Inquiries6.7 Applicable Rules and Regulations6.8 Arbitration6.9 Governing Law6.10 Headings are Descriptive6.11 Separability and Right to Amend6.12 Extraordinary Events6.13 Binding Effect on Successors6.14 Investments in non-US securities6.15 Referral Policy

About the Merrill Lynch Bank Deposit ProgramEligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35How the Program Works . . . . . . . . . . . . . . . . . . . . 35

• Deposits for single account holders• Important deposit insurance considerations

• Transfers and Withdrawals• Interest• Account statements and information

• Your relationship with Merrill Lynch• Benefits to Merrill Lynch

About Deposit Insurance . . . . . . . . . . . . . . . . . . . . . . 38• FDIC Insurance• Health Savings Account• Individual customer accounts• Joint accounts• Revocable trust accounts• Irrevocable trust accounts.• Certain Retirement Accounts.• Employee Benefit Plans• Other Employee Benefit Plans• Treatment of accounts upon death of owner• Payments under adverse circumstances• Additional information from the FDIC

Funding Your Health CareCosts With a Merrill LynchHSA

A Health Savings Account (HSA) enables you tosave for payment of qualified unreimbursedhealth care expenses on a tax-advantaged basis.

An HSA can be an attractive means ofaccumulating tax-advantaged assets for thepayment of unreimbursed health care expenses.Today, more than ever, budgeting for your healthcare is critical to your health care coverageplanning. Here’s why:

• You may incur expenses for health care thatare not covered by your health plan, or youmay find yourself in the future without anyhealth care coverage at all.

• As the cost of health care increases, coveragemay be less predictable. Employers areshiing from plans that provide full coveragewithout deductibles to those that providepartial coverage with higher deductibles andhigher out-of-pocket expenses.

• Your own resources may fund a majority ofyour health care expenses. Medicare todaycomprises only a fraction of the total healthcare coverage of retired individuals, and therole of Medicare may change in the years tocome.

In fact, today your health care expenses couldconsume a large portion of your budget,particularly if you do not have employersponsored health coverage. Investing through an

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HSA may help you to significantly strengthen yourlong-term health care security, enhance yourretirement security and decrease your current taxliabilities.1

If you make eligible contributions to your HSA(whether as an employee or as a self-employedindividual), the contributions may be deductibleon your federal income tax return, depending onyour overall tax situation. If your employer makescontributions for you or if you make pre-taxcontributions through your employer’s cafeteriaplan, your employer’s contributions and your pre-tax contributions are made before taxes arewithheld. If you use your HSA funds to pay“qualified” medical expenses, they will not betaxed when you make withdrawals. մեat meansyou have the opportunity to reduce your currenttaxes, you have the potential to achieve earningson your contributions and you pay no taxes onamounts withdrawn to pay qualified medicalexpenses.

If you take a distribution from your HSA and do notuse it to pay qualified medical expenses, you willbe responsible for taxes on the withdrawnamounts and may be subject to an additional 20%tax. Amounts invested in an HSA may bewithdrawn on a taxable basis, without the 20%additional tax, aer you reach the age required tobe eligible for Medicare (usually age 65), becomedisabled or die.

Merrill Lynch offers access to a broad range ofinvestment options for your HSA—includingcertain bond types, mutual funds, and ETFs. մեisgives you the flexibility to shi your assets to meetchanging goals or economic conditionsconsidering your short-term and/or long-termmedical needs. Also, to allow you to make promptwithdrawals for qualified medical expenses fromyour HSA, Merrill Lynch offers you access to yourliquid assets with your HSA Checks and a VisaDebit Card. So, not only can you pay your healthcare provider directly from your HSA, but you’llalso have a record of the medical expenses.

No matter what your current or future health careneeds are or will be, or what income sources youforesee, a Merrill Lynch HSA can complement yourhigh-deductible health plan and help to design ahealth care coverage plan to fit your needs. Startearly, make regular contributions, invest wiselyand your HSA can help with your health care

coverage planning.

Investing involves risk. For more completeinformation on any mutual fund or exchange-traded fund, please request a prospectus and/or, ifavailable, a summary prospectus from your Merrill Lynch Financial Advisor and read itcarefully. Before investing, carefully consider theinvestment objectives, risks, and charges andexpenses of the fund. մեis and other informationcan be found in the fund’s prospectus and/or, ifavailable, summary prospectus.

An investment in a money market fund is not abank deposit, and is not insured or guaranteedby Bank of America, N. A., Merrill Lynch or anybank or affiliate of Merrill Lynch, the FederalDeposit Insurance Corporation (FDIC) or anyother government agency. Although a moneymarket fund seeks to preserve the value of yourinvestment at $1.00 per share, it is possible tolose money by investing in a money marketfund. Yields may vary daily.

Upon your purchase of any security, including amoney market mutual fund, Merrill Lynch andyour Financial Advisor will receive compensationin accordance with the particular instrument(s)you purchased.

Merrill Lynch Health Savings Account Disclosure Statement

մեe basic rules and benefits of your Merrill LynchHSA, as well as important legal and taxinformation, are provided in this DisclosureStatement. However, the HSA AdoptionAgreement, which you must complete to open aMerrill Lynch HSA, and the Merrill Lynch HealthSavings Account Custodial Agreement are theprimary documents governing your Merrill LynchHSA and will govern in the case of any differencebetween these documents.

Definitions:• մեroughout this Disclosure Statement, the

words you and your refer to the person forwhom your HSA is established or maintained.Merrill Lynch, we, us and our refers to Merrill

1 Merrill Lynch does not provide tax, legal, investment or benefits consulting advice. Any tax statements contained herein were notintended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. մեis materialshould be regarded as general information on health care considerations and is not intended to provide specific health care advice.

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Lynch, Pierce, Fenner & Smith Incorporated, aregistered broker-dealer and wholly ownedsubsidiary of Bank of America Corporation.Merrill Lynch is the custodian of your HSA.Merrill Lynch is not a bank and is separatefrom its FDIC-insured affiliates, which includeBank of America California, N.A. (BA-CA), Bankof America, N.A. (BANA), or other depositoryinstitutions.

• Bank of America California, N.A., and Bank ofAmerica, N.A. are referred to as the “MerrillLynch Affiliated Banks”. Securities Accountrefers to the Merrill Lynch cash securitiesaccount established when you establish yourHSA.

• Debit Card/Check Account refers to theaccount(s) established for you by the Banks.

• Checks and HSA Checks refer to checksissued to you by Bank of America, N.A. for usewith your Debit Card/Check account.

• Debit Card or Debit Cards refer to one ormore Visa debit cards issued to you by BANAfor use with your Debit Card/Check account.

• Money Account or Money Accounts refer toany FDIC-insured deposit accounts opened onyour behalf through the Merrill Lynch BankDeposit Program (MLBDP). (մեis does notrefer to a money market mutual fund)

• Sweep Program refers to the automaticdeposit of available cash balances into theMoney Account(s).

• Tax Code refers to the Internal Revenue Codeof 1986 and the regulations adopted under it,both as amended at any applicable time.

• IRS refers to the Internal Revenue Service.

• HSA and account refer to a Health SavingsAccount, which is a Merrill Lynch HSA or anHSA with another financial institution.

Merrill Lynch does not act as your tax or legaladvisor with respect to your HSA. Werecommend that you consult your lawyer,accountant or other tax advisor if you havequestions beyond the scope of the informationcontained in this Disclosure Statement,especially in regard to how your HSA affectsyour estate or tax planning. You should alsoconsult your tax advisor regarding the taxconsequences involving your HSA for the lawsof a particular state, locality or foreign countrywhere you live, as this Disclosure Statement

covers only U. S. federal tax matters; certainstates, localities and foreign countries mayhave significantly different tax rules. You mayalso refer to the appropriate year’s edition of IRSPublication 969 “Health Savings Accounts andOther Tax-Favored Health Plans” (or anyreplacement publication). To obtain moreinformation on the services your Merrill Lynch HSAprovides to you, please contact your Merrill LynchFinancial Advisor or Service Representative.

Merrill Lynch does not offer high-deductible healthplans. By establishing an HSA, you are notpurchasing health insurance. As outlined in thisDisclosure Statement, you must be covered by aqualifying high-deductible health plan in order tomake annual HSA contributions, make annual pre-tax contributions through your employer’scafeteria plan or have annual contributions madeon your behalf by your employer or any otherperson.

With the Merrill Lynch Bank Deposit Program(MLBDP), Merrill Lynch opens deposit accounts onbehalf of HSA clients at two Merrill Lynch AffiliatedBanks which are FDIC-insured institutions, Bankof America, N.A. and Bank of America California,N.A.

For current yields on the Merrill Lynch BankDeposit Program, call your Financial Advisor orvisit MyMerrill.com

Merrill Lynch, Pierce, Fenner & Smith Incorporatedis not a bank and is separate from these FDICinsured affiliates. Except where indicated,securities sold, offered or recommended by MerrillLynch are not insured by the Federal DepositInsurance Corporation (FDIC), may fluctuate in orlose value, and are not obligations of, or endorsedor guaranteed in any way by, any bank. MerrillLynch is solely responsible for its own contractualobligations and commitments.

All Securities and Other Property will be treated asfinancial assets under Article 8 of the New YorkUniform Commercial Code.

Opening an Account

To open an HSA account, you must provide certaininformation about yourself and other accountholders.

Merrill Lynch, like all U. S. financial institutions, is

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required to follow federal regulations to assist thegovernment in its efforts to fight moneylaundering and other financial crimes, and tocounter terrorist financing efforts in the U. S. andglobally. Merrill Lynch obtains specific personalinformation from you in order to verify youridentity, and you may be required to presentdocumentary evidence of your identity in the formof government-issued identification. Merrill Lynchalso uses third-party vendors to verify customerinformation. Foreign nationals who are permanentlegal residents of the U.S. may be required topresent a Permanent Resident Card (i. e. “greencard”) and a Social Security number to open anaccount in a U.S. -based Merrill Lynch office. Non-individuals (e.g. a business, trust or estate) mustsubmit sufficient evidence of legal status.

In addition to verifying the identity of ourcustomers, Merrill Lynch captures personalinformation on all customers and relatedauthorized parties who have the ability totransact, control, influence or manage anaccount, whether directly or indirectly. MerrillLynch, at its discretion, may elect not to accept anaccount, or to terminate the account agreementand the account agreements of any relatedparties.

Once you have provided this information andcompleted an Adoption Agreement, you may beeligible to open or activate new accounts orcertain services without completing additionaldocumentation. If you need a copy of our HSAAdoption Agreement, call your Financial Advisor or(800) MERRILL (637-7455), or visit your nearestMerrill Lynch branch office.

Your Right to Revoke Within Seven Days

You have the right to cancel your Merrill LynchHSA and receive a full refund of any amountsgiven to us for your HSA within seven days aeryou first open a Merrill Lynch HSA and receive aMerrill Lynch HSA Disclosure Statement, or 14days from the mailing date of the DisclosureStatement and Custodial Agreement. If you cancelyour HSA within this period, the amount returnedto you would not include an adjustment for anysales commissions, administrative expenses orother fees or fluctuations in market value.

To cancel, you must send us a signed writtennotice stating that you wish to cancel your HSA.Mail your cancellation notice to us, postmarked(or certified or registered, if sent by certified orregistered mail) no later than the seventh day ofthe cancellation period.

Mail your notice to:Manager, Retirement Plan New AccountsMerrill Lynch, Pierce, Fenner & Smith Incorporated1400 American Boulevard MSC 0401Pennington, NJ 08534-4128

If you have any questions about canceling, pleasecontact your Merrill Lynch Financial Advisor orService Representative.

I. WAYS To CoNTRIBUTe To YoUR HSA

Your HSA will accept the following types ofcontributions:

• Contributions from you that are intended tobe deductible contributions made by check,money order or electronic funds transferacceptable to us (securities will not beaccepted).

• Contributions made by you through youremployer’s cafeteria plan or made by youremployer on your behalf that are intended tobe excludable from your gross income asemployer-provided coverage for medicalexpenses made by check, money order orelectronic funds transfer acceptable to us(securities will not be accepted).

• Contributions on your behalf by any otherperson that are intended to be deductiblecontributions made by check, money order orelectronic funds transfer acceptable to us(securities will not be accepted).

• Transfers or rollovers of cash, securities orother assets from another HSA, inaccordance with the requirements of the TaxCode.

• Transfers or rollovers of cash, securities orother assets from an Archer MSA, inaccordance with the requirements of the TaxCode.

• A once in a lifetime direct rollover of cash,securities or other assets up to your annualcontribution limit from your Traditional IRA orRoth IRA in accordance with the requirementsof the Tax Code.

Your HSA will not accept transfers or rollovers

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from a qualified employer retirement plan (suchas a pension, profit-sharing or 401(k) plan), taxsheltered annuity contract or deferredcompensation plan of a state or an agency,instrumentality or political subdivision of a state.

II. WHo CAN MAke ANNUAL HSACoNTRIBUTIoNS

A. General eligibility You are eligible to have new contributions (asopposed to rollover contributions discussed inPart IV) made to your HSA, as long as you meeteach of the requirements listed below.

You and your spouse may not have a joint HSA towhich you both contribute, even if you are botheligible individuals. You must open separate HSAs,thus only one person may be the account ownerof an HSA.

You may establish more than one HSA and maycontribute to more than one HSA. մեe same rulesgoverning HSAs apply (e. g. maximum contributionlimit), regardless of the number of HSAs you haveestablished.

Except as provided below, you must meet each ofthe following requirements as of the first day of acalendar month to be eligible to have newcontributions made to your HSA for that calendarmonth:

1. You are covered under a “high-deductiblehealth plan” as an employee or self-employedindividual, spouse or dependent. (Except asprovided below, if you begin coverage under thehigh-deductible health plan aer the first day ofa month (for example, coverage begins on thefirst day of a biweekly payroll period), you willhave to wait until the first day of the next monthto satisfy this requirement.)

2. You are not enrolled in Medicare Part A or B.

3. You may not be claimed as a dependent onanother person’s federal income tax return.

4. If you are also covered under another healthplan that is not a high-deductible health plan(whether as an individual, spouse ordependent), that plan does not providecoverage for benefits (other than “permittedcoverage”) already covered under the high-deductible health plan.

Certain permitted coverage can overlap coverageprovided in the high-deductible health plan

without affecting HSA eligibility. For this purpose,permitted coverage includes the following:

• Coverage (whether through insurance orotherwise) for accidents, disability, dentalcare, vision care or long-term care

• Insurance where substantially all thecoverage relates to liabilities incurred underworkers’ compensation laws (if workers’compensation benefits are required bystatute, coverage may also be self insured),tort liabilities or liabilities relating toownership or use of property (such as autoinsurance) and any resulting benefits frommedical care are secondary or incidental toother benefits

• Insurance for a specific disease or illness(such as cancer, diabetes, asthma, orcongestive heart failure) as long as theprincipal health coverage is provided by thehigh-deductible health plan

• Insurance providing a fixed amount per day(or other period) for hospitalization

• Coverage for preventive care. մեe IRS hasidentified the following types of coverage forpreventive care: periodic health evaluations,including tests and diagnostic proceduresordered in connection with routineexaminations such as annual physicals;routine prenatal and well-child care; child andadult immunizations; tobacco cessationprograms; obesity weight-loss programs;screening services; and drugs or medicationswhen taken by a person who has developedrisk factors for a disease that has not yetmanifested itself or not yet become clinicallyapparent (but not services, benefits, drugs ormedication intended to treat an existingillness, injury or condition). մեis list is notintended to be exhaustive but is intended togive examples of the types of coverage thatwould constitute preventive care coverage.

• Discount cards for discounts on health careservices or products at managed caremarket rates, if you are required to pay thecosts of the health care (taking into accountthe discount) until the deductible of thehigh-deductible health plan is satisfied

• Coverage under an Employee AssistanceProgram (EAP), disease managementprogram or wellness program if the program

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does not provide significant benefits in thenature of medical care or treatment

• Coverage under an employer self-insuredmedical reimbursement plan with aqualifying high-deductible plan

“Permitted coverage” includes medical coveragethrough the Department of Veterans Affairs (VA),as long as you have not received any benefitsthrough the VA during the last three months.“Permitted coverage” does not include coverageunder TRlCARE (the health care program for activeduty and retired members of the uniformedservices, their families and survivors).

If you are covered under a health flexiblespending arrangement (“Health FSA”) or a healthreimbursement arrangement (“HRA”), yougenerally will not be eligible to make HSAcontributions. However, certain types of healthFSA coverage or HRA coverage—including limitedscope, post-deductible, suspended or retiree-onlycoverage—will not make you ineligible. Pleaseconsult your tax advisor for more details.

You may make the maximum HSA contribution fora tax year even if you do not meet the eligibilityrequirements described above for each monthduring the year, as long as you meet the eligibilityrequirements during the last month of the taxyear.

However, if you do not meet the eligibilityrequirements described above at any time duringthe 13-month period beginning with the lastmonth of that tax year, HSA contributions madeunder this special eligibility rule will becometaxable in the tax year you first do not meet theeligibility requirements and will also becomesubject to a 20% additional tax.

If you fail to meet the eligibility requirementsduring the 13-month period on account of yourdisability or death, the contributions will notbecome taxable or subject to the additional 20%tax. Please consult your tax advisor for moredetails about this special new rule, including themeaning of “disability” and any future guidancefrom the IRS.

B. High-Deductible Health Plans Generally, a “high-deductible health plan” is ahealth plan that meets the following deductibleand out-of-pocket expense requirements:

Self-only coverage:

• մեe annual deductible is at least $1,300 for2015 ($1,300 for 2016)

• մեe annual out-of-pocket expenserequirement is not more than $6,450 for2015 ($6,550 for 2016)

Family coverage:

• մեe annual deductible is at least$2,600 for2015 ($2,600 for 2016)

• մեe annual out-of-pocket expenserequirement is not more than $12,900 for2015 ($13,100 for 2016)

Dollar limits may be adjusted in subsequent yearsto reflect cost-of-living adjustments announced bythe IRS. Any adjustments may be applied as of therenewal date of the high-deductible health plan incases where the renewal date is aer thebeginning of the calendar year, but in no eventlonger than a 12-month period ending on therenewal date. մեus, a fiscal year plan that satisfiesthe minimum annual deductible on the first day ofthe first month of its fiscal year may apply thatdeductible for the entire fiscal year, even if theminimum annual deductible increases on January1 of the next calendar year.

Out-of-pocket expenses include deductibles, co-payments and other amounts you must pay forcovered benefits, but do not include premiums,financial penalties or amounts paid fornoncovered benefits.

Besides the general rules outlined above, the IRShas issued various special rules for determiningwhether a health plan is a high-deductible healthplan. մեese special rules cover areas such asembedded deductibles, annual deductibles coveringmore than 12 months, FSA participation during agrace period, annual and lifetime limits andtransitional rules. If you are not sure whether yourhealth plan coverage is considered to be providedunder a high-deductible health plan or would likeadditional information about high-deductible healthplans, we suggest you contact your insuranceprovider, employer or tax advisor for more detailsbefore setting up and contributing to an HSA..

III. ANNUAL CoNTRIBUTIoN ReSTRICTIoNS AND LIMITS

A. Contribution Limits and RestrictionsEach tax year any person (you, your employer, afamily member or any other person) may makecontributions (up to the maximum amountdescribed below) to your HSA. Contributions may

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be made to your HSA even if you do not have anycompensation. մեe maximum amount iscalculated on a monthly basis so that yourcontribution for a tax year is equal to the totalmonthly amounts you have accrued throughoutthe tax year. Although the annual limitation iscalculated using monthly data, the contributionfor a year can be made in one or more payments,at your convenience or the convenience of youremployer.

You are entitled to contribute a monthly amountfor each month that you satisfy the eligibilityrequirements for making contributions to an HSA,as described in Part II, as of the first day of themonth. You may also be treated as satisfying theeligibility requirements for the entire tax year ifyou satisfy the requirements during the lastmonth of the tax year. See Part II or speak to yourtax advisor for more information about this specialrule. մեe monthly amount for any month isdetermined according to the rules describedbelow. Dollar limits will be adjusted in subsequentyears to reflect cost-of-living adjustmentsannounced by the IRS.

Your monthly contribution amount is a flat dollarlimit set by the IRS.

• Self-only coverage: you have single coverageas of the first day of the month, the monthlyamount is 1/12 of $3,350 for 2015 ($3,350for 2016).

• Family coverage: If you have family coverageas of the first day of the month, the monthlyamount is 1/12 of $6,650 for 2015 ($6,750for 2016).

• Catch-up contribution: If you are age 55 orolder and have not enrolled in Medicare PartA or B, the catch-up contribution limit is$1,000 in 2015 ($1,000 in 2016). մեe catch-up contribution is also calculated on amonthly basis. Once you enroll in MedicarePart A or B, no more contributions, includingcatch-up contributions, may be made to yourHSA.

You must have your HSA eligible high-deductiblehealth plan coverage established by the first dayof the month in order to make a qualifiedcontribution for that month. If you are treated assatisfying the eligibility requirements for the entiretax year under the special rule described above,you will be treated as if you had timely establishedHSA eligible high-deductible health plan coverage.

մեe maximum amount of contributions made toyour HSA is reduced by any other contributions(other than rollover contributions, tax-freetransfers and catch-up contributions) made forthe same tax year to any other HSA or Archer MSAthat you maintain.

մեe once in a lifetime direct rollover of funds fromyour Traditional IRA or Roth IRA to your HSA alsoreduces the maximum amount of contribution toyour HSA for a tax year.

B. Contributions if You Are MarriedIf you are married and both you and your spouseare covered under separate HDHPs and you oryour spouse has family coverage under a high-deductible health plan, both of you will be treatedas having only family coverage.

մեe amount you and your spouse may eachcontribute to an HSA is divided evenly, unless youboth agree to divide your contributions differently.You may choose any split including allocatingnothing to one spouse. մեe amount you cancontribute to an HSA is reduced by contributions(other than rollover contributions, tax-freetransfers and catch-up contributions) made to youor your spouse’s Archer MSA. մեe once in alifetime direct rollover of funds from your IRA toyour HSA also reduces the maximum amount ofcontribution to your HSA for a tax year. Consultyour tax advisor about the effect of the once in alifetime IRA direct rollover on your spouse’s HSA.Both you and your spouse may make catch-upcontributions if you are both age 55 or overwithout exceeding the family coverage limit.

If your spouse is not an eligible individual as well,he or she may not contribute to an HSA(notwithstanding that the Tax Code treats youboth as having only family coverage). If you areotherwise eligible to make HSA contributions andyour spouse is covered under a non HDHP, you willstill be able to make HSA contributions, as long asyou are not covered by your spouse’s non HDHP.

C. Deductible Contributions and Income exclusion Limits

For federal income tax purposes, you may deductHSA contributions from your adjusted grossincome (i. e., “above-the-line”) that meet therequirements set forth above, whether made byyou or by someone on your behalf, (but not by youremployer) for the tax year with respect to whichthe contributions are made. մեese contributionsare deductible whether or not you itemizedeductions. You cannot, however, also deduct the

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contributions as medical expense deductionsunder section 213 of the Tax Code.

Pre-tax contributions made under your employer’scafeteria plan or by your employer during the taxyear to your HSA will generally be excluded fromyour gross income for the tax year, are not subjectto withholding for income tax and are not subjectto Social Security, Medicare or the RailroadRetirement Tax Act taxes. You cannot deduct yourpre-tax contributions to your employer’s cafeteriaplan or employer contributions to your HSA onyour federal income tax return as HSAcontributions or as medical expense deductionsunder section 213 of the Tax Code. Special rulesmay apply if you are a partner in a partnership ora shareholder in an S corporation. Consult yourtax advisor for more information. State income taxtreatment may differ from the federal tax rules.

D. Deadlines for HSA ContributionsYou can make contributions to your HSA for a taxyear at any time during the year and up until yourfederal income tax return deadline (generally April15 of the following year), not including extensions.Although the annual limitation is calculated usingmonthly data, the contribution for a year can bemade in one or more payments, at yourconvenience or the convenience of your employer.For example, this means that any individual whoexpects to be covered under a high-deductiblehealth plan for all of 2014 may make an HSAcontribution for that year on January 1, 2014, oron any later date through the due date of theindividual’s 2014 income tax return (generally,April 15, 2015). Section VII discusses the return of excess contributions if your expectations of full-year coverage are not fulfilled.

Contributions made during a calendar year aregenerally treated as contributions for thatcalendar year. However, if you make acontribution between January 1 and April 15 anddesignate in written instructions that it is for theprior year, Merrill Lynch will treat the contributionas being for the prior year.

e. Reports of ContributionsYou are responsible for reporting your and youremployer’s contributions to your HSA to the IRSon IRS Form 8889, “Health Savings Accounts(HSAs).” You file IRS Form 8889 along with yourIRS Form 1040. Rollover contributions,distributions and your allowable deductions arealso reported on IRS Form 8889.

We will record and report all HSA contributions astax-deductible contributions, unless we receive acertification from your employer that contributionsare excludable for income-tax purposes or youcertify to us that a contribution is a rollover ortransfer contribution.

Each year we will send to you (or to your spousebeneficiary aer your death) and to the IRS an IRSForm 5498-SA, “HSA, Archer MSA, or MedicareAdvantage MSA Information” reporting your year-end market value and any contributions androllover contributions that you have made for theapplicable tax year. If you did not make anycontributions for the applicable tax year, Form5498-SA will only be sent to the IRS. You may referto your Merrill Lynch year-end account statementfor the market value that was reported to the IRS.

F. Your Right to Your HSAYour right to the balance of your HSA cannot beforfeited at any time.

IV. TRANSFeRS AND RoLLoVeRCoNTRIBUTIoNS

A. Transfers of Assets to or from your HSAYou may authorize a direct “transfer” of money orsecurities from any other HSA or Archer MSA youmaintain to a Merrill Lynch HSA on a tax-freebasis. մեe rules regarding direct transfers of HSAassets also apply to direct transfer from yourMerrill Lynch HSA into another HSA.

A direct transfer of assets between HSAcustodians or trustees, where you do not receivethe assets in your name, is to be distinguishedfrom a “rollover.” A rollover is a distribution ofcash, securities or other property that youphysically receive from another HSA or ArcherMSA that you deposit into your HSA. մեere is not alimit on the number of transfers allowed during ayear.

B. Rollover Contributions to or from your HSAYou can roll over to your Merrill Lynch HSA all orpart of the assets you withdraw from another HSAor Archer MSA. Rollovers are permitted even if youare not covered by a high-deductible health plan.By following these Tax Code rules, you cancontinue to preserve the tax-favored status of theassets you roll over to you Merrill Lynch HSA:

• You must complete the rollover within 60days of the initial withdrawal or distribution.

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• You can roll over assets received from anArcher MSA or an HSA to another HSA onlyonce within any one-year period beginning onthe date you receive the money or assets.

• Rollovers need not be in cash and are notsubject to the annual contribution limits.

You are required to report rollovers from one HSAto another HSA or from an Archer MSA to an HSAon a form specified by the IRS and file it with yourIRS Form 1040 for the year in which the rolled-over distribution was made.

մեe rules regarding rollovers from other HSAs alsoapply if you roll over assets from your MerrillLynch HSA into another HSA. You may not roll overassets from an HSA to an Archer MSA.

C. Special Direct Rollovers From Your IRA to Your HSA

If you are otherwise eligible to make HSAcontributions (as described in Section II) you mayelect to make a once in a lifetime direct rolloverfrom your Traditional IRA or Roth IRA to your HSAon a tax-free basis, if permitted by your IRA. մեedirect rollover election is irrevocable.

մեis special direct rollover only applies to amountsin your IRA that would otherwise be taxable ifdistributed. Special rules apply to determine theamount that may be transferred. Special directrollovers from SEP IRAs and SIMPLE IRAs to HSAsare not permitted.

մեe special direct rollover amount is limited to themaximum HSA contribution amount for the taxyear for your type of HDHP coverage (i.e., self onlyor family coverage) and reduces the amount ofHSA contributions that you may make for thesame tax year. In the year in which you make aspecial direct rollover from your Traditional IRA orRoth IRA, you may make a second special directrollover, but only if the second special directrollover is a result of converting from single tofamily coverage under the HDHP.

մեis special direct rollover of cash from your IRA toyour HSA is accomplished through a directtransfer of cash from your IRA custodian ortrustee to your HSA custodian or trustee. Unlike aregular rollover of cash between your HSAs, youare not permitted to receive the cash (or a checkmade out in your name) from your IRA and laterroll it over to your HSA within a 60-day period.Your IRA custodian or trustee must transfer thecash directly to your HSA custodian or trustee tomake a special direct rollover contribution from

your IRA to your HSA.

You must remain eligible to make HSA contributions(as described in Section II above) for the 13-monthperiod beginning with the month in which thetransfer is made to your HSA to avoid income tax anda 20% additional tax on the amount transferred. մեeincome tax and 20% additional tax is waived if yourloss of coverage under the high-deductible healthplan is due to your death or disability. Please consultyour tax advisor for more details about this specialrule, including the timing rules for special directrollovers found in IRS Notice 2007-22, the meaningof “disability,” determining the amount that may berolled over and any future guidance from the IRS.

V. HSA SeRVICeS

A. մեree Servicesմեe HSA services consist of three parts: (1) theSecurities Account, which is a cash securitiesaccount through which you can buy, sell and holdsecurities; (2) the Money Account, availablethrough the Sweep Program, which is any bankdeposit account(s) established through the MerrillLynch Bank Deposit Program; and (3) the DebitCard/ Check Account through which Bank ofAmerica, N.A. processes your Checks and BANAprocesses your Visa Debit Card transactions.

You will receive a monthly transaction statement(the “HSA Monthly Statement”) detailing all HSAactivity during the preceding month. մեe HSAMonthly Statement will describe (i) securitiesbought and sold in the Securities Account; (ii)other types of transactions effected in theSecurities Account; (iii) Money Accounttransactions, including interest earned for theperiod at each bank; and (iv) purchases ofmerchandise or services made with the DebitCard and Checks.

B. Securities Accountմեe Securities Account is self-directed, whichmeans you have the responsibility of managingthe investments in your account. While yourMerrill Lynch Financial Advisor or a ServiceRepresentative can provide information on theinvestment alternatives currently available to you,the decision is ultimately yours, and you mustmake an independent decision as to whether aninvestment is consistent with your personalsavings goals and investment objectives,considering various factors such as investmentrisk and your short-term and/or long term medicalneeds. Since you may purchase for the Securities

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Account investments that fluctuate in marketvalue and have varying rates of return, the valueof the Securities Account can neither beguaranteed nor projected. We will invest andreinvest the contributions and earnings in yourSecurities Account only aer receiving properinstructions from you or, as appropriate, yourbeneficiary, your estate’s legal representative orany other person authorized to give suchdirections.

If we cannot locate you or your beneficiary, MerrillLynch can, with no responsibility for theconsequences, sell any or all the assets in yourHSA. We may then, if not already invested ordeposited through a sweep option in effect foryour account, invest in a money market fund ordeposit the proceeds in an interest-bearingaccount. We will do so only aer waiting at leasttwo months from the date we attempt to locateyou or your beneficiary by sending a written noticeto the last address shown for you or yourbeneficiary in our records.

In no event may the assets in your account beinvested in life insurance contracts, in collectibles(e. g. any work of art, antique, metal, gem, stamp,alcoholic beverage or other tangible personalproperty specified in section 408(m) of the TaxCode), or commingled with other property exceptin a common trust fund or a common investmentfund. If you have any questions regardinginvestment alternatives, please contact yourMerrill Lynch Financial Advisor or a ServiceRepresentative.

A very important feature of the Securities Accountcomponent of your HSA is the broad range ofinvestments available. With this flexibility you maystructure your account to best suit your particularneeds. մեrough the Securities Account, you mayacquire any allowable investment obtainablethrough Merrill Lynch and its affiliates, includingsecurities traded on recognized exchanges or“over the counter,” shares of selected mutualfunds, government securities and exchangetraded funds. You can also write listed coveredcall options and buy put options against longpositions.

All investments must, however, be compatiblewith Merrill Lynch’s administrative andoperational requirements and procedures of theaccount system through which your SecuritiesAccount is administered. For more informationabout permissible investments for your Securities

Account, contact your Merrill Lynch FinancialAdvisor or a Service Representative.

մեe following are examples of investments andtransactions that are not generally permitted inyour Securities Account: investments acquired onmargin, commodities transactions (including thepurchase or sale of futures contracts), optionsstrategies not described above, and investmentsin Series E and Series EE U. S. savings bonds,foreign currency, chattel paper, notarial stock,most shares of “restricted” stock, and one ounceAmerican Gold or Silver Eagle Coins issued by theUnited States.

Careful consideration should be given to taxadvantaged investments held in your HSA. Youmay find it preferable to hold tax-exempt orforeign investments in a taxable investmentportfolio, should you have one, instead of yourHSA. Please consult your tax advisor if you havequestions regarding tax advantaged investmentsand your specific tax situation.

Except where indicated, securities offered orrecommended by us are not insured by the FDIC,may fluctuate in value, and are not obligations of,or endorsed or guaranteed in any way by, anybank. Merrill Lynch is solely responsible for itsown contractual obligations and commitments.

C. Money Account available through the SweepProgramOnce you complete and return the HSA AdoptionAgreement to us, available cash balances in theSecurities Account (such as interest, dividendsand contributions received in your account) of $1or more will be automatically deposited in one ormore interest bearing bank deposit accountsinsured by the FDIC and opened through theMerrill Lynch Bank Deposit Program. You agreethat Merrill Lynch may, from time to time and at itsdiscretion, change the products or choicesavailable as Money Account options through theSweep Program upon prior notice.

InvestingYour account is used to buy, sell and holdsecurities. Trades are made through yourFinancial Advisor.

Please note that your account is debited on thesettlement date of a securities transaction and noton the trade date.

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Trades must be conducted on a “fully paid basis,”meaning they must be paid in full on thesettlement date.

Cash ManagementAvailable cash balances in your account areautomatically swept into bank deposit accountswith Bank of America, N.A. and/or Bank ofAmerica California, N.A. (under the Merrill LynchBank Deposit Program).

We reserve the right not to affect redemptions orwithdrawals of Money Account balances within 15days of the receipt of checks and, subject toapplicable law, within six days of the receipt offunds credited to your account electronically.However, funds from electronic fund transfers,other than debits to third party bank accountsoriginated through Merrill Lynch, and funds fromdeposits of many types of checks frequently canbe withdrawn the next business day following theirreceipt by Merrill Lynch. Longer delays generallyapply, among other things, to larger dollardeposits and deposits to new accounts. You canrequest more specific information aboutavailability by calling your Financial Advisor or(800) MERRILL. A business day is defined as onein which both the New York Stock Exchange andNew York banks are open for business.

If we cease to offer a particular Money Account, weare authorized (but not obligated) to place cashbalances automatically in another comparableMoney Account. .

Primary money account—Merrill Lynch Bank Deposit Programմեe Money Account available through the SweepProgram is the Merrill Lynch Bank DepositProgram (MLBDP).

մեe MLBDP sweeps available cash balances toseparate deposit accounts at Bank of America,N.A. and Bank of America California, N.A.(Members FDIC). Funds held in these accountsare protected by FDIC insurance for up to$250,000 per depositor holder, per ownershipcategory, per bank.

Since there are two banks in the MLBD Program,each individual depositor receives up to twice theStandard Maximum Deposit Insurance Amount(SMDIA) of FDIC insurance, and each joint accountwith two depositors receives up to four times theSMDIA of FDIC insurance.

Interest rates on bank deposit accountsmaintained through the MLBD Program are tieredbased on the value of those accounts. In general,accounts assigned to higher asset tiers will earnhigher interest rates on their MLBD Programbalances than those assigned to lower tiers(although accounts enrolled in the Merrill LynchConsults®, Merrill Lynch Strategic PortfolioAdvisor® and Merrill Lynch Personal InvestmentAdvisory® programs are entitled to the sameinterest rate paid to accounts in Tier 4).

մեe current asset tiers appear below. We maychange the current asset tiers or add additionalasset tiers at any time, which may result in higheror lower interest rates for your deposit balances.

• Tier 4: $10 million or more

• Tier 3: $1,000,000–$9,999,999

• Tier 2: $250,000–$999,999

• Tier 1: Less than $250,000

Your account will automatically default to Tier 2 inthe first month and will be changed accordinglystarting in month 2.

մեe asset tier for any of your accounts will notchange between valuation dates, even if you opennew accounts or link accounts. New accounts arenot used to determine asset tiers until the nextapplicable valuation date.

For regulatory or other reasons, the followingaccounts are not included when determining yourasset tier, even if linked for statement deliverypurposes:

• Working Capital Management Account

• Medical Savings Accounts

• Retirement Cash Management AccountSM

• BasicSM Accounts

• 401(k) Accounts (including SIMPLE 401(k)accounts)

• Retirement Selector Accounts (403(b)accounts)

Interest rates for the MLBDP accounts aredetermined at the discretion of BANA and BA-CAbased on economic and business conditions and aresubject to change. Your Financial Advisor will beavailable to discuss alternatives for your cash orbank deposit account balances. However, neitheryour Financial Advisor nor Merrill Lynch undertakes

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any obligation to ensure you receive any particularrate of interest or to advise you to invest your cash orbank deposit balances in higher yielding cashalternatives. մեe interest rates for the bank depositaccounts will be different from (and may be lowerthan) yields on money market funds and other cashalternatives. For current yields on bank depositbalances, call your Financial Advisor or visitMyMerrill.com (see the “Deposit Account & MoneyFund Rates” link at the bottom of each page).

Interest on bank deposit accounts maintainedthrough the MLBDP will be compounded on adaily basis and credited monthly.

For additional information about the MLBDP,including information about FDIC insurance andthe way bank deposits benefit Merrill Lynch andthe Merrill Lynch Affiliated Banks, see “About theMerrill Lynch Bank Deposit Program.”

D. Debit Card/Check AccountYou will be issued HSA Checks and a Debit Card orDebit Cards, which are intended to be used to paythe qualified medical expenses of you, yourspouse or dependents (or, to the extent permittedby section 223 of the Tax Code, to reimburseyourself for such expenses).

Check writingChecks should be written in U.S. dollars only.Checks may not be used to purchase securities inthe Securities Account or to make deposits to theMoney Account. մեe Visa debit card cannot beused to purchase over the counter medicationwithout a prescription.

մեe amount available (the “Purchasing Power”) forVisa Debit Card and Check transactions at anytime is the total of (i) any available free creditbalances in the Securities Account and (ii) theavailable Money Account balances. YourPurchasing Power is instantaneously reduced atthe time BANA is notified of the use of the DebitCard, not at the time the applicable sales dra orcash advance is paid. However, Money Accountamounts are not withdrawn until the item ispresented to BANA for payment. Securitiestransactions in the Securities Account reduce thePurchasing Power on the trade date, not thesettlement date, of such transactions. However,Money Account amounts are not withdrawn untilthe settlement date of securities purchasetransactions.

Your purchasing power may not be increased toreflect the proceeds of checks credited to yourHSA for up to 7 days following their receipt and,except as otherwise required by applicable law, forup to four days following the receipt of fundscredited electronically to your HSA. մեe actualtime period for holds on check deposits dependson several factors, including check type, age ofaccount, value of check vs. value of the account,etc. During this time period, the investment in theMoney Account will not be delayed. All checksreceived by us must be in U. S. funds and drawnon a U. S. bank or other financial institution, andare subject to final collection.

Unlike standard credit card procedures, wherebills are rendered monthly and free credit may beextended for a period of up to 25 days thereaer,we will be notified daily of any charges that arebeing presented against the Debit Card/CheckAccount, whether by use of the Debit Card,Checks or other means. We will make payment onbehalf of your HSA on the day the charge ispresented for payment. Payments for suchcharges will be made in the following order ofpriority: first, from available free credit balances, if any, held in the Securities Account and, second,from the proceeds of withdrawals of availableMoney Account amounts.

Charges made abroadAn international transaction fee equal to 2%applies to the U. S. dollar amount of alltransactions that occur outside of the UnitedStates, including purchases, and credits. մեis feewill only apply to transactions submitted to Visa ina currency other than U. S. dollars and will be inaddition to any other applicable transaction fees.

Visa transactions in a foreign currency areconverted by Visa into a U. S. dollar amount inaccordance with Visa’s operating regulations andconversion procedures in effect at the time thetransaction is processed. Visa’s regulations andprocedures currently provide that the currencyconversion rate used is a rate selected by Visa fromthe range of rates available in wholesale currencymarkets, which rate may vary from the rate Visaitself receives, or a government-mandated rate. մեemethod of currency conversion is subject to changeby Visa without notice.

մեe currency conversion rate in effect on theprocessing date may also differ from the rate ineffect on the transaction date or posting date.

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Transactions made in a foreign currency that aresubmitted to Visa in U. S. dollars will be posted toyour account in that U. S. dollar amount.

You can view, download or print copies of yourcancelled checks through MyMerrill.com, or youcan request copies by calling your FinancialAdvisor or (800) MERRILL. Original checks will notbe returned to you, although you can obtain anoriginal check by calling your Financial Advisor or(800) MERRILL.

You may request that payment of Checks bestopped. In order to stop payment, you must notifyMerrill Lynch of the exact amount of the Check,the number, date and payee of the Check, andyour account number. մեere may be a fee for thisservice. If you provide information that is incorrect oruntimely, or you do not comply promptly with arequest for other reasonable information, neitherMerrill Lynch nor the bank through which checks areprocessed will be responsible if payment cannot bestopped. If, for any reason, Merrill Lynch fails to stoppayment on a check, we may without liability delayre-crediting your account while we determine therights of parties involved. In addition, neither MerrillLynch nor the bank processing your checks will beliable if, through inadvertent payment contrary to arequest to stop payment, other items are returnedunpaid. մեe bank through which your checks areprocessed and Merrill Lynch reserve the right topay post-dated checks, although it and we are notobligated to do so. մեe bank and we also reservethe right not to pay checks that it or we determine,in our sole discretion, are incomplete orimproperly completed. Any checks that exceedyour purchasing power or spending limit may alsonot be honored.

If you request checks be signed with a signaturestamp or signature plate, you agree that suchrequirements are for your internal purposes only,and neither Merrill Lynch or the bank throughwhich your checks are processed shall have anyresponsibility or liability for the payment of anycheck signed with a signature stamp/plate.

If you have questions about your account,including your purchasing power, current chargesor fees, call the special toll-free number: (800) MERRILL. (մեis telephone number is notavailable outside the United States.)

Current charges will be debited to your account onthe next business day and new items will bedebited on receipt.

e. overdrasYou have no borrowing privileges in or through theDebit Card/Check Account. You agree that you willnot exceed your Purchasing Power. If you exceedyour Purchasing Power, you will be in default.Default may result in, among other things,termination of your subscription to the HSAServices.

Billing rights and overdrasYOUR BILLING RIGHTSKEEP THIS NOTICE FOR FUTURE USE

մեis notice contains important information aboutyour rights and our responsibilities under the FairCredit Billing Act.

Notify us in case of errors or questionsIf you think any transactions on your accountstatement or a BANA overdra notice is wrong, orif you need more information about a transaction,you should write to Bank of America, N.A. (BANA)as soon as possible at:

Retirement & Distribution Services NJ2-140-01-021400 1400 American Boulevard Pennington NJ 08534 2

In your letter, provide the following information:

• Your name, address and account number;

• մեe dollar amount of the suspected error;

• A description of the item in question; and

• Why you believe there is an error.

BANA must hear from you no later than 60 days aer we send you the first accountstatement or overdra notice on which the erroror problem appeared. You may also call us at(800) MERRILL (637-7455), but doing so will notpreserve your rights. Outside the U.S., call collect(609) 818-8000.

Your rights and our responsibilities aer wereceive your written notice:

BANA must acknowledge your letter within 30days unless it has corrected the error by then.Within 90 days, it must either correct the error orexplain why it believes the statement or overdranotice was correct.

Aer BANA receives your letter, it cannot try tocollect an amount you question or report you asdelinquent. It can continue to bill you for theamount, including finance charges, and can apply

12598.qxp_v5 4/12/16 4:08 PM Page 14

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any unpaid amount against your purchasingpower. You do not have to pay any questionedamount while BANA is investigating, but you arestill obligated to pay any amount that is not inquestion.

If it is found that a mistake was made on youroverdra notice, you will not have to pay anyrelated finance charges. If the bank finds that amistake was not made on your statement oroverdra notice, you will have to pay thequestioned amount, including any overdrafinance charges. մեe bank will notify you throughus in writing of the amount owed and due date forpayment.

If you fail to pay the amount that BANA thinks thatyou owe, it may report you as delinquent.However, if BANA’s explanation does not satisfyyou and you write to it within ten days telling itthat you still refuse to pay, it must tell anyone itreports you to that you have a question about yourmonthly transaction statement or overdranotice. And, BANA must tell you the name ofanyone it reported you to. BANA must tell anyoneit reports you to that the matter has been settledwith you when it finally is.

If the bank does not follow these rules, it cannotcollect the first $50 of the questioned amount,even if your statement or overdra notice iscorrect.

F. Prohibited Transactionsմեe Tax Code prohibits you from using your HSA toengage in certain transactions under penalty oflosing your HSA’s tax-favored status. For example,you cannot borrow from your account, sellproperty to it or buy property from it. If your HSAwere to lose its tax-favored status, you would haveto include the entire HSA balance in your grossincome for the year in which the tax-favoredstatus of your HSA was lost. Further, thatdistribution may be subject to the 20% additionaltax on certain distributions before age 65.

If you were to borrow all or any part of the assetsof your HSA, the entire value of your accountwould be treated as though distributed to you. Ifyou were to pledge all or part of your HSA assecurity (collateral) for a loan, the part pledgedwill be considered to have been distributed to youfor the year it is pledged. In both cases, you would

have to include those amounts in your grossincome and possibly be subject to the 20%additional tax.

G. Investor ProtectionSIPC Insurance and additional coverageմեe securities and cash we hold in your accountare protected by the Securities Investor ProtectionCorporation (SIPC), for up to $500,000 (inclusiveof up to a maximum of $250,000 for cash).

In addition, Merrill Lynch has obtained “excess-SIPC” coverage from a Lloyd’s of Londonsyndicate. մեe Lloyd’s policy provides furtherprotection for each customer (including up to $1.9million for cash), subject to an aggregate loss limitof $1 billion for all customer claims.

Each account held by a separate customer (asdefined by applicable law) is treated separately forpurposes of the above protection.

Neither SIPC protection nor the additional“excess-SIPC” coverage applies to deposits madethrough a bank deposit program or to otherassets that are not securities, nor does it protectyou against fluctuations in the market value ofsecurities.

You may obtain further information about SIPC,including the SIPC Brochure, via SIPC’s website athttp://www.sipc.org or by calling SIPC at (202) 371-8300.

H. Altering or Waiving Conditions of the HSA Services

We reserve the right to alter or waive theconditions of the HSA Services. We also reservethe right to reject any application to adopt an HSAor to subscribe to any of its features for anyreason.

VI. RULeS GoVeRNING DISTRIBUTIoNS

A. General RulesAmounts in cash, securities or other assets whichhave been withdrawn from your HSA for you oryour beneficiaries, whether by Debit Card, Checkor written direction to Merrill Lynch, are called“distributions.” Distributions are subject to therules contained in the Tax Code and to the termsof the Merrill Lynch HSA Custodial Agreement.(մեe Visa debit card cannot be used to purchaseover the counter medication without aprescription or to withdraw cash from an ATM.)

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B. Distributions to Pay “Qualified” Medical expenses

You may take distributions from your HSA at anytime and in any amount. Such distributions will bewithout taxation and without penalties, as long asthe entire amount distributed is used to pay (or, to the extent permitted by the Tax Code, toreimburse you for) the “qualified” medicalexpenses of you, your spouse or dependents,even if you are not currently eligible to makecontributions to the HSA. However, any portion ofthe distribution not used exclusively to pay thequalified medical expenses of you, your spouse ordependents is includable in your gross incomeand is subject to an additional 20% tax, except inthe case of distributions made aer your death ordisability or aer you attain the age required to beeligible for Medicare. մեe qualified medicalexpenses must be incurred only aer the HSA hasbeen established.

Dependents include individuals you claim asdependents on your federal income tax return,and individuals you could have claimed asdependents on your tax return if they had notreceived the specified amount of gross income orhad not filed a joint return. Dependents alsoinclude individuals you could have claimed asdependents on your individual federal tax return,except that you or your spouse, if filing jointly,were claimed as dependents on someone else’sfederal tax return. (Please note that certain “adultchildren” may now be covered under your high-deductible health plan on a tax-free basis but arenot considered dependents for purposes of tax-free HSA distributions).

“Qualified” medical expenses are expenses (thathave not been compensated or reimbursed byinsurance or otherwise) for medical care(generally as defined in section 213(d) of the TaxCode). Examples of qualified medical expensesinclude hospital costs, doctor’s office visits,prescription drugs, lab tests, eyeglasses, hearingaids, health insurance deductibles and co-payments. Non-prescription (or over the counter)drugs or medicines are qualified medicalexpenses only if such drugs or medicines areprescribed in accordance with applicable statelaw.

Premiums for health insurance generally do notconstitute “qualified” medical expenses, exceptfor the following: continuation coverage provided

under COBRA, qualified long-term care coverageprovided through a qualified long term carecontract under section 7702B (b) of the Tax Code,and health coverage provided while the individualis receiving unemployment compensation underany federal or state law. In addition, for Medicareeligible individuals, premiums for Medicare Part Aor B, Medicare HMO, and the employee share ofpremiums for employer-sponsored healthinsurance, including premiums for employer-sponsored retiree health insurance, can be paidfrom an HSA. Premiums for Medigap policies arenot qualified medical expenses.

IRS Publication 502, “Medical and DentalExpenses,” which can be found on the IRSwebsite, www.irs.gov, generally describes thetypes of medical expenses that may be paid orreimbursed with distributions from your HSA, withthe exceptions described above. You should notecarefully that the range of qualified medicalexpenses for which tax-favored HSA distributionsare allowed may be broader than the expensesthat count toward the deductible under your high-deductible health plan. For example, expenses foreyeglasses that are a qualified medical expenseunder HSA rules may not count toward your high-deductible health insurance policy deductible.

You are responsible for determining if expensesare “qualified” medical expenses and you shouldmaintain records of your medical expensessufficient to show that the distributions have beenmade exclusively for qualified medical expensesand are therefore excludable from gross income.

If both you and your spouse have HSAs and onespouse uses distributions for his or her HSA to payor reimburse a qualified medical expense of theother spouse, such amounts may be excludedfrom gross income, however both HSAs may notreimburse the same expense amounts.

You may defer to later taxable years’ distributionsfrom HSAs to pay or reimburse qualified medicalexpenses incurred in the current year as long asthe expenses were incurred aer the HSA wasestablished. Similarly, a distribution from an HSAin the current year can be used to pay orreimburse expenses incurred in any prior year aslong as the expenses were incurred aer the HSAwas established. մեere is no time limit on whenthe distributions must occur. To be excludablefrom your gross income, however, you must keep

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records sufficient to later show that thedistributions were exclusively to pay or reimbursequalified medical expenses, that the qualifiedmedical expenses have not been previously paidor reimbursed from another source, and thatmedical expenses have not been taken as anitemized deduction in any prior year.

You may pay qualified long-term care insurancepremiums with distributions from an HSA whereyou make contributions to the HSA by salaryreduction through a cafeteria plan, even though acafeteria plan is not allowed to cover long-termcare insurance as a “qualified benefit” under thecafeteria plan.

Additionally, an HSA distribution used to pay orreimburse qualified long-term care insurancepremiums is limited to the annual adjustedamount found in section 213(d) (1) of the TaxCode that also limits the “eligible long-term carepremiums” that are deductible medical expenses.Any excess premium reimbursements above thislimit are includable in gross income and may alsobe subject to the 20% additional tax.

You are responsible for properly reporting alldistributions on your tax return. You also areresponsible for completing IRS Form 8889,“Health Savings Accounts (HSAs),” and submittingit along with your IRS Form 1040 to the IRS. IRSForm 8889 includes information aboutdistributions from your HSA, including rolloversfrom your HSA to another HSA. Rollovers fromyour Archer MSA to an HSA should be reported onIRS Form 8853, “Archer MSAs and Long-Term CareInsurance Contracts.” Contact your tax advisor orconsult IRS Publication 969, “Health SavingsAccounts and Other Tax-Favored Health Plans” formore information on these reportingrequirements.

Merrill Lynch is responsible for reporting theamount of distributions from an HSA, but is notresponsible for determining whether or notdistributions are excludable from income or aresubject to the additional 20% tax describedbelow. Merrill Lynch will report any distribution toyou and the IRS on IRS Form 1099-SA,“Distributions From an HSA, Archer MSA, orMedicare Advantage MSA.”

C. Distributions Before and Aer Age 65, Disabilityor Death

մեe Tax Code encourages the use of HSAs to savefor health care costs by imposing ordinary incometax on distributions from your account that are notused exclusively to pay (or to reimburse) qualifiedmedical expenses. մեere are some exceptions tothis rule. For example, if you make a distributionto remove an excess contribution or if youwithdraw assets from one HSA to consolidatethem with another, you may not have to report thedistribution in your income. No HSA distributions,regardless of when made, are eligible for eithercapital gains treatment or the special forwardaveraging computation that may be available forcertain lump-sum distributions from tax-qualifiedretirement plans. An additional 20% tax alsoapplies to a distribution that is includable in grossincome, unless the distribution is made aer youhave reached the age required to be eligible forMedicare or become disabled. In addition, the20% tax does not apply to amounts distributed orotherwise taxed on account of your death. Youreport the additional tax on IRS Form 8889 andon your IRS Form 1040 where indicated.

D. Distributions Due to Your DeathYou can name one or more beneficiaries toreceive any balance remaining in your HSA at yourdeath. If you have not designated a beneficiary, orif no beneficiary survives you, your HSA balancewill be paid to your surviving spouse, or, if you arenot survived by your spouse, to your estate.

If the designated beneficiary is your survivingspouse, the spouse will be treated as if the HSA ishis or her own HSA at your death. Your survivingspouse is not required to include any amount inincome as a result of your death, and the generalrules applicable to HSAs apply to your survivingspouse’s HSA. For example, your spouse will notbe subject to income tax on HSA distributions forqualified medical expenses and, for this purpose,your surviving spouse can exclude from incomeHSA distributions that are used to pay “qualified”medical expenses you incurred prior to yourdeath, if paid within one year aer your death.

If you are married and you fail to name yourspouse as the beneficiary of your HSA, significantincome tax consequences may result. If anyperson other than your surviving spouse is thedesignated beneficiary, or any person otherwiseacquires your interest in the HSA on account ofyour death, the HSA will cease to be an HSA as ofthe date of your death. If this occurs, the fairmarket value of the assets held in the HSA as of

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the date of your death will be includable in thegross income of the person who acquires the HSA,or (if there is no named beneficiary) in your grossincome for the year of your death and reportableon your final return if the HSA passes to yourestate. մեe person (other than your estate) whoacquires your HSA may reduce the amountincludable in income by the amount of qualifiedmedical expenses which you incur before deathand that are paid by such person within one yearaer your death.

e. Federal estate and Gi Tax ConsiderationsIn addition to the federal income taxconsequences associated with HSA distributionsand excess contributions discussed elsewhere inthis Disclosure Statement, there are also federalestate tax consequences to consider. Generally, ifthere is a balance le in your HSA at your deaththe total value of the assets in your account isincluded in your gross estate for federal estate taxpurposes.

If your beneficiary is your spouse, the maritaldeduction may be taken and your estate willgenerally not owe estate taxes. You shouldconsult your tax advisor concerning this estatetax.

Generally, naming a beneficiary to receivepayments from your HSA is not considered a gisubject to federal gi tax, even if the designationis irrevocable. մեis is because the account ownertypically retains the right to direct distributions,including rollovers and transfers.

F. Mistaken DistributionsIf there is clear and convincing evidence that youreceived an HSA distribution as the result of amistake due to reasonable cause (e. g. youreasonably, but mistakenly, believed that anexpense was a qualified medical expense and youwere reimbursed for the expense from the HSA),you may repay the mistaken distribution at anytime before the end of the calendar year in whichthe distribution was made. մեe mistakendistribution will not be included in income and willnot be subject to the 20% additional tax fornonqualified distributions or the excise tax onexcess contributions (as discussed below insection VII). Merrill Lynch may rely on yourrepresentation that the distribution was, in fact, amistake.

VII. exCeSS CoNTRIBUTIoNS

An excess contribution is the portion of yourannual contribution that exceeds the amount ofyour permissible contribution. If you do not correctan excess contribution, you will be subject to a 6%additional tax. For more information on theadditional tax, including how to calculate theadditional tax, see IRS Form 5329, “AdditionalTaxes on Qualified Plans (Including IRAs) andOther Tax-Favored Accounts.” If you owe the 6%additional tax or if you had an excess contributionshown on your prior year’s IRS Form 5329, youmay be required to file IRS Form 5329 or someother form specified by the IRS.

Excess contributions can occur because of amistake of fact or a change in your circumstances.For example, if you have contributed to an HSA fora full year, but change jobs in the middle of theyear and begin to receive coverage under a healthplan that is not a high-deductible health planprovided by your new employer, you may havemade excess contributions to your HSA withrespect to the months for which you are no longereligible for an HSA.

You can make corrections prior to your tax-filingdeadline to avoid the 6% additional tax by:

• Withdrawing the excess contribution and anyrelated earnings prior to your tax filingdeadline (including extensions) for the taxyear for which the excess contribution wasmade

• Including the withdrawn earnings on theexcess contributions in your gross income forthe year you withdraw the contribution andearnings and not deducting any portion of theexcess contribution from your gross income.մեe net income (earnings) that is required tobe withdrawn is calculated by multiplying thecontribution by a fraction, the numerator ofwhich is the difference between the adjustedclosing balance and the adjusted openingbalance and the denominator of which is theadjusted opening balance. մեe adjustedopening balance is the fair market value ofthe HSA at the beginning of the computationperiod plus the amount of any contributionsor transfers made to the HSA during thecomputation period. մեe adjusted closingbalance is the fair market value of the HSA atthe end of the computation period plus theamount of any distributions or transfers madefrom the HSA during the computation period.մեe computation period is the period

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beginning immediately before the time thatthe contribution being returned was made tothe HSA and ending immediately before theremoval of the contribution. For moreinformation about the calculation of netincome, consult your tax advisor.

You are responsible for computing the earningsattributable to excess contributions and indicatingthe amount to be withdrawn on a distribution formprovided by Merrill Lynch. մեose distributions mayalso be taxable when withdrawn (and could besubject to the 20% additional tax), even if they areused to pay qualified medical expenses. մեe 6%additional tax is charged again on the excess ineach subsequent year the excess contributionremains in your account. If you correct only aportion of an excess contribution, you willcontinue to be liable for the additional tax on theportion not corrected.

You should not use your HSA Checks or DebitCard(s) to distribute excess contributions.

At this time it is not clear how the excess contributionrules are intended to interact with the special one-time direct rollover rules for direct rollovers fromcertain lRAs described in Section IV.C or the specialeligibility rules described in Section II. Contact yourtax advisor for more information.

VIII. FeeS

Merrill Lynch charges an annual custodial fee forits services as custodian of your HSA. As of theprinting of this document, the annual custodialfee for your account is $50. մեe initial custodialfee will be charged 90 days from the accountopening date and annually on or around theanniversary date of the initial fee. If your accountis closed or transferred, we will charge a $50account closeout fee. մեe account closeout feewill be charged in addition to any pendingcustodial fees due on your account. մեese feeswill be deducted from your HSA. If your HSA isenrolled in certain services that may be offeredthrough Merrill Lynch and your account meets theprescribed terms and conditions of such a service,your custodial fee may be waived.

A late fee may be assessed to accounts with pastdue fee amounts. Brokerage commissions, salescharges, asset-based fees and other routinecharges for transactions in, or the investment of,the assets in your Securities Account will be

assessed when applicable. Merrill Lynch also mayreceive compensation from certain providers ofinvestment alternatives for your HSA.

Our fees, commissions, and other charges withrespect to your HSA may change from time totime. We are not required to notify you of suchchanges. We may modify the conditions of theHSA for certain group plans and differentcategories of clients. We may charge suchaccount holders a different annual fee from thatcharged to other account holders or we may waivesuch fee.

If the account is transferred to another financialinstitution, we will charge a $50 account transferfee. Merrill Lynch will charge the account transferfee to your HSA.

Currently, no per-check processing charges areimposed on HSA Checks. Charges may beimposed for stop-payment orders and for Checksthat are returned because they have exceededthe Purchasing Power described above. A chargemay also be imposed for providing you with theoriginal or copies of canceled Checks, and we willimpose charges for any Checks credited to yourHSA that are returned unpaid by the bank uponwhich they were drawn. In connection with theDebit Card/Check Account, our affiliates mayreceive fees from other than HSA subscribers.

Amounts deducted from your HSA foradministration and account maintenance fees, asdescribed above, will not be treated as a taxabledistribution and will not be included in your grossincome. Additionally, amounts withdrawn fromyour HSA to pay such fees do not increase yourmaximum annual HSA contribution limit. Forexample, if your maximum annual contributionlimit is $2,000 and the $50 custodial fee iswithdrawn from your HSA, the annual contributionlimit is still $2,000 not $2,050.

Ix. DISCLoSUReS ABoUT THe HSA DeBIT CARDAND eLeCTRoNIC TRANSFeRS

A. General RulesYour HSA is subject to the federal law onelectronic fund transfers if you have establishedyour account primarily for personal, household orfamily purposes.

If so, you may have certain rights andresponsibilities depending on the type of transfer

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you make. Federal law requires us to make certaindisclosures to you regarding electronic transferseffected with your HSA Debit Card throughmerchant transactions, preauthorized creditsthrough our Direct Deposit Service andpreauthorized debits through a program offeredby a third party or us. For purposes of thesedisclosures, transfers are made “electronically” ifthey are made by Automated Clearing Housetransfer with parties outside Merrill Lynch or bytransfers between Merrill Lynch central assetaccounts. Transfers by Federal Reserve Systemwire transfer are not covered by these disclosures.

B. Liability for Unauthorized HSA Debit Card UseYour HSA will not be liable for the unauthorizeduse of your Debit Card. Your HSA will not be liablefor any unauthorized use that occurs aer we orBANA have been notified orally or in writing ofloss, the or possible unauthorized use. If fundsinvested in or deposited through the HSA arewithdrawn due to unauthorized use of the DebitCard for which your HSA is not liable, suchamounts will be reinstated as if never withdrawn.If a Debit Card is lost or stolen, you shouldimmediately report the loss by calling 1(800)262 -5678, which can be reached 24 hours a day,seven days a week (outside the United States youcan place a collect call to (609)818-8000, whichcan be reached 24 hours a day, seven days aweek), or by writing to Retirement & DistributionServices, NJ2-140-01-021400, 1400 AmericanBoulevard, Pennington NJ 08534. Telephoning isthe best way to minimize possible losses.

C. Types of electronic Transfersմեe Debit Card issued to you is designed to beused to pay “qualified” medical expenses (or toreimburse yourself for such expenses) atparticipating Visa establishments. մեesetransactions will be referred to as “electronictransfers.” In addition, from time to time, you mayauthorize someone other than us to transfermoney electronically to your HSA or, through aprogram offered by us, authorize us to transfermoney electronically from your HSA to a thirdparty. All such transfers from an HSA will bereferred to as “electronic transfers.” (մեe Visadebit card cannot be used to purchase over thecounter medication without a prescription or towithdraw cash from an ATM.)

D. Limitations on electronic Transfersմեe number of electronic transfers that may bemade is not limited. However, some Debit Card

transactions may be limited or not completed forsecurity reasons.

e. Right to Receive DocumentationA monthly transaction statement will be sent inconnection with your HSA, which will include allthe electronic transfers for the preceding month.

F. Liability for Unauthorized electronic Transfersմեe section above titled “Liability for UnauthorizedHSA Debit Card Use” applies to unauthorizedelectronic transfers.

G. Chargesմեere are no charges for electronic transfers.

H. Finding out About a Recurring electronic Transfer

If you have arranged to have electronic transfersmade to your HSA at least once every 60 daysfrom the same third party, you can call 1(800)MERRILL (637-7455) to find out whether thetransfer has been made. մեis confirmationprocess is not available, however, if the third partymaking the electronic transfer tells you every timean electronic transfer is sent.

I. Stopping electronic PaymentsAny electronic payments that you have arrangedto be made regularly from your HSA to a thirdparty may be stopped. You can call 1(800)MERRILL (637-7455) or write to Retirement &Distribution Services, NJ2-140-01-021400, 1400American Boulevard, Pennington NJ 08534, in timefor us to receive the request three business days ormore before the electronic payment is made. Youmay be required to put the stop-payment requestin writing and ensure that we receive it within 14days aer a telephone call. You will be chargedthe standard charge for stop-payment orders.Once a request has been processed, all electronicpayments initiated by the third party named in therequest will be stopped until written notice isreceived from you to cease stopping them. If yourequest that we stop any of these regularelectronic payments three business days or morebefore the electronic payment is scheduled andwe do not do so, we will be liable for your losses ordamages. If you have arranged with a third partyfor electronic payments that vary in amount to bepaid regularly from your HSA, the third party willtell you 10 days before each electronic paymentwhen the electronic payment will be made andhow much it will be. You may choose instead toget this notice only when the electronic paymentwould differ by more than a certain amount from

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the previous one, or when the amount would falloutside certain limits that you set.

J. Liability for Failure to Make electronic TransfersIf an electronic transfer is not completed on timeor in the correct amount according to theagreements governing your HSA and itscomponents, we or BANA may be liable for theresulting losses or damages. We or BANA will notbe liable, for instance, if (i) through no fault on ouror their part, the amount of the transfer willexceed your Purchasing Power (as defined abovein section V. D.), or (ii) circumstances beyond ouror their control (such as fire or flood) prevent thetransfer, despite reasonable precautions thatwere taken. մեere may be other exceptions statedin the agreements governing the HSA and itscomponents, or provided by applicable law.

k. In Case of errors or Questions About electronicTransfersYou should telephone 1(800) MERRILL (637 7455)or write to Retirement & Distribution Services,NJ2-140-01-021400, 1400 American Boulevard,Pennington NJ 08534, as soon as possible if themonthly transaction statement or a receipt for anelectronic transfer is incorrect, or if you needmore information about an electronic transferlisted on the statement or receipt. Notice must bereceived from you no later than 60 days aer thefirst statement was sent on which the problem orerror appeared. մեe notice should:

• State your name and account number.

• Describe the error or the electronic transferyou are unsure about and explain as clearlyas possible why you believe it is an error orwhy more information is needed.

• State the dollar amount of the suspectederror. If the notice was given orally, you maybe required to send the complaint orquestions in writing within 10 business days.If the electronic transfer in question involvedobtaining cash at a financial institution or wasa preauthorized electronic transfer, thequestion or complaint will be resolvedpromptly but no later than 45 calendar daysaer notice is received, and any error will bepromptly corrected. If the electronic transferin question took place in a foreign country orinvolved a point of sale transfer made withthe Debit Card, the question or complaint willbe resolved no later than 90 calendar daysaer notice is received, and any error will be

promptly corrected. If it is decided that noerror occurred, you will be sent a writtenexplanation within three business days aerthe investigation is finished. You may ask forcopies of the documents used in theinvestigation.

L. Disclosing Information About Your HSA• Where it is necessary to complete a

transaction.

• To third parties who have a business purposefor requesting information regarding theaccount or the Debit Card.

• To credit bureaus and other consumer-reporting agencies.

• In order to comply with governmental agencyor court orders.

• If you have given written permission.

For the purposes of this section of the HSADisclosure Statement, business days are Mondaythrough Friday. Holidays are not included.

M. Changing մեese Rights and ResponsibilitiesFrom time to time, the rights and responsibilitieswith respect to electronic transfers may change.You will be notified of any changes as required byapplicable law. If the change is necessary forsecurity reasons, you do not have to be notified inadvance.

N. Account InformationYou can obtain account information in four ways:through your Financial Advisor, through our 24-hour client service number, (800) MERRILL(637-7455), on your account statements, andthrough MyMerrill.com (once activated).

For deaf or hearing-impaired clients, the TTYnumber is (866) ML7-DEAF (657-3323). Hours are8:30 A.M. to 4:30 P.M., Monday through Friday,Eastern Time.

Monthly transaction statementsHSA statements are sent each month. Monthlystatements for your account will be mailed to theprimary HSA account holder’s address.

Your statement(s) will include details of:

• Securities bought, sold and held in youraccount

• Other types of transactions in your account,including credit interest charges, if any

• Money account transactions

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• Dividends or interest received on moneyaccount balances

• Visa card purchases and cash advances

• Checks drawn on your account

• Pre-authorized electronic transfers

• Other fund transfers

• ATM withdrawals and deposits

MyMerrill.comYou may access your account information online,together with Merrill Lynch research andinvestment information, market data and news.

o. About optional ServicesTo enhance the capabilities of the HSA financialservice, Merrill Lynch offers several optionalservices. Optional services may entail additionalfees or charges (see About Fees).

You may enroll in these services when you openyour account. Once you have established anaccount and we have your signature on file, youmay be eligible to enroll in these services at alater date without completing a new applicationform.

Historical Pricing and Valuation ServiceYou may request a report showing the securitiesheld in your HSA as of a specific date. You mayalso request that we provide historical values forpublicly traded securities for gi, estate tax orother planning purposes.

Call your Financial Advisor for more informationabout this service.

Account Statement Linkingմեe Statement Link Service allows Merrill Lynchaccounts to be “linked” together for statementdelivery purposes.

For regulatory or other reasons, certain types ofaccounts that can be linked for statement deliverypurposes cannot be linked for the purpose ofdetermining your total eligible client assets. If youhave any questions about linking your accounts orlinking eligibility, please contact your FinancialAdvisor.

Statements for linked accounts are sent to one ofthe account holders, who has been appointed asthe other account holders’ “agent” to receive theirmonthly statements and related notices orcommunications. Please note, all account holders

remain responsible for verifying the accuracy of theirindividual statements, reading notices and directingactivity in their accounts.

մեe assets of linked accounts are not commingledand each account holder retains control over hisor her account.

Automated InvestingWhen you enroll in automated investing, we willautomatically buy shares on your behalf in amutual fund according to a predeterminedschedule. You may enroll to invest through youraccounts or transfer funds from your accounts forinvestment through another Merrill Lynchaccount. All mutual fund purchases are subject tothe eligibility terms in the mutual fund’sprospectus or statement of additionalinformation. մեe availability of certain mutualfunds and/or share classes offered by a mutualfund may be limited at Merrill Lynch to specificservice models.

Your Financial Advisor can provide you withfurther information about this service.

Direct Depositմեrough the direct deposit service you can havepayroll sent electronically into your account onyour payroll date or on the effective date of thepayment and those payments will be swept intoyour primary Money Account on the business dayaer the funds and data necessary to identify youraccount are received.

Call your Financial Advisor or (800) MERRILL (637-7455) for information about enrolling in thisservice. Or visit www.mymerrill.com.

Direct ReinvestmentBy enrolling in the direct reinvestment service, youcan have dividends from all New York StockExchange, American Stock Exchange and NASDAQStock Market-listed stocks and most mutual fundsautomatically reinvested into more shares of thesame stock or fund without commission charges.

Call your Financial Advisor or (800) MERRILL (637-7455) for more information on this service.

Funds Transfer ServiceYou can transfer funds electronically to accountsoutside Merrill Lynch or to other central accountswithin Merrill Lynch by enrolling in the FundsTransfer Service (FTS). մեere is a $100 minimumfor electronic fund transfers.

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You can arrange a funds transfer online at www. mymerrill.com or by calling (800) MERRILL(637 7455). Transfers will be completed as soonas the next business day (or the same day ifbetween Merrill Lynch accounts). You can also setup recurring transfers.

Your accounts will be debited in the same order ofpriority described under Debit Card/CheckAccount, and the transfer will not be completed ifit exceeds your purchasing power or spendinglimit. Fund transfers to your account will not bereflected in your purchasing power or spendinglimit for up to six days, subject to applicable laws.

Restrictions apply on funds transfers from certainfiduciary accounts. Call your Financial Advisor or(800) MERRILL (637-7455) for details.

Please note, you will be prompted to call us to set upa password for use in initiating transfers. You shouldsafeguard this password and not share it withanyone.

In the event of erroneous fund transfers, we areauthorized to credit or debit your account to correctsuch transactions, subject to applicable laws, rulesand regulations.

MYMeRRILL.CoM (www.mymerrill.com)All account holders may enroll in MyMerrill.com.մեis Internet-based service provides 24-houraccess to your account information, Merrill Lynchresearch and investment information, marketdata, news and e-mail.

To activate this service, a User ID and password isrequired. It is important to safeguard thisinformation.

If you have not received a User ID or password, orhave forgotten either of them, you can requestthis information online at www.mymerrill.com orby calling (800) MERRILL (637-7455).

Inter-company Transfer of FundsIf you have both a Bank of America checking orsavings account and a Merrill Lynch brokerageaccount, you may be able to transfer fundsbetween these accounts usingBankofAmerica.com or MyMerrill.com. In order totransfer funds, your online profiles must be linked.To link your online profiles, log onto eitherBankofAmerica.com or MyMerrill.com and follow

the instructions to link your accounts. If you haveany questions, please contact (800) MERRILL(637-7455) or (800) 432- 1000.

Additional Notes on electronic TransfersYour account may be subject to the federal law onelectronic fund transfers if you maintain theaccount as a natural person (as opposed to atrustee or in another capacity). Your rights andresponsibilities will depend on the type of electronictransfer. From time to time, these rights andresponsibilities may change. You will be notified ofany changes as required by applicable law. If thechange is necessary for security reasons, you do nothave to be notified in advance.

electronic transfers include:• Visa point of sale transactions for qualified

medical expenses

• Transfers through a direct deposit service

• Transfers through our Funds Transfer Service

• Pre-authorized debits through a programoffered by a third party or us

• Transfers to and from your account under abank deposit program

Your liability You are liable for no more than $50 forunauthorized use of your Funds Transfer Servicepassword. You are not liable for unauthorizedpurchases using your Visa card or for theunauthorized use of your Visa card PIN. You arealso not liable for any amount for the loss, the orpossible unauthorized transaction once you havenotified us or the issuer of the card.

Call immediately if a Visa card is lost or stolen or ifyou think someone has transferred or maytransfer funds from your account withoutpermission:

• (800) 262-LOST Toll-free

• (609) 818-8000 From outside U. S. (collectcalls accepted)

Telephoning is the best way of minimizing yourlosses, but you may also notify us in writing at:

Retirement & Distribution Services NJ2-140-01-021400 1400 American Boulevard Pennington NJ 08534

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Any funds that are withdrawn in connection with atransaction for which you are not liable will becredited back to you or your account.

Limits on electronic transfers:

Transaction informationYou will be sent a monthly statement listing allelectronic transfers for the preceding month.

You may also check on the status of transfers atany time by calling (800) MERRILL (637 7455) or your Financial Advisor at the number providedon your account statement. Information about transfers is also available online atwww.mymerrill.com.

Recurring transfersTo stop recurring electronic payments or transfers,call (800) MERRILL (637-7455) or your FinancialAdvisor at the number provided on your monthlystatement. If you prefer, you may write to us at:

Retirement & Distribution Services NJ2-140-01-021400 1400 American Boulevard Pennington NJ 08534

Your notice to cease payments should be timed toarrive at least three business days before thepayment is due to be made. If you have beenasked to put a stop payment request in writing,you must write to us at the above address within14 days of your telephone call.

Once stopped, recurring payments will not resumeuntil we receive notice from you. Any request tochange the title of an account will be treated as arequest to stop payment of electronic transfers.

If you request that we stop a regular payment atleast three business days before the electronicpayment is scheduled and we do not do so, we willbe liable for your losses or damages.

You may be charged a fee for stop paymentrequests.

If you have arranged with a third party forrecurring transfers from your account of variableamounts, the third party will notify you 10 daysbefore each electronic payment of the amountand date of payment. If you prefer, you maychoose to get this notice only when the amountfalls outside certain limits.

If you have a Visa card, you will receive advancenotice of the varying amounts of the monthly debitif the amount of the debit exceeds $500,000.

our liability for failure to make transfersIf an electronic transfer is not completed on timeor in the correct amount according to agreementsgoverning the HSA financial service, we or the Visacard issuer may be liable for the resulting lossesor damages.

մեere are some exceptions. Merrill Lynch and theVisa card issuer will not be liable, for instance, if:

• մեrough no fault on our or its part, thetransfer amount will exceed your purchasingpower or spending limit;

• Circumstances beyond our or its control (suchas fire or flood) prevent the transfer, despitereasonable precautions that were taken;

մեere may be other exceptions stated in theagreement governing the HSA financial service orprovided by applicable law.

Reporting errors or questionsIf you see an error or have a question call (800) MERRILL (637-7455) or write to us at theaddress below. We must receive notice of problemsor errors within 60 days aer the first statement orreceipt was sent on which the problem or errorappeared.

If you call us, we may ask you to report the erroror problem in writing within 10 business days.

Report errors or problems in writing to:Retirement & Distribution Services NJ2-140-01-021400 1400 American Boulevard Pennington NJ 08534

Include the following information:• Your name, address and account number

• A description of the error or the electronictransfer you are unsure about

• մեe amount of the suspected error

If the electronic transfer in question involvedobtaining cash at a financial institution or was apre-authorized electronic transfer, the question orcomplaint will be resolved promptly but no morethan 45 calendar days aer the notice is received.If the electronic transfer in question took place ina foreign country or involved a point of saletransfer made with a Visa card, the question orcomplaint will be resolved promptly but no later

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than 90 calendar days aer notice is received. If itis decided that no error occurred, you will be senta written explanation within three business daysaer the investigation is finished. You may ask forcopies of the documents used in the investigation.

Disclosure of Account Information Subject to applicable law, we, the Visa card issueror banks holding your deposit accounts willdisclose information to third parties about yourHSA account and Visa card only:

• Where it is necessary to complete atransaction;

• To third parties, including our affiliates, whohave a business purpose for requestinginformation regarding the account or card;

• To credit bureaus and other consumer-reporting agencies;

• To comply with a government agency or courtorders;

• If you have given written permission; or

• If you authorize a merchant to automaticallyinitiate recurring payments

x. IRS APPRoVAL

մեe IRS has not established a program forapproval of HSAs as “prototype” plans. If such aprogram is established, it is intended that theMerrill Lynch HSA Custodial Agreement set forth inthis booklet would be submitted to the IRS forapproval as a “prototype” plan. Approval by theIRS, however, is a determination as to the form,not the merits, of a prototype plan.

xI. IRS CAN PRoVIDe MoRe INFoRMATIoN

For more information about HSAs, you shouldobtain a copy of IRS Publication 969, “HealthSavings Accounts and Other Tax- Favored HealthPlans” (or any replacement publication) or contactany IRS office.

Merrill Lynch Health Savings Account Custodial Agreement

մեis Disclosure Statement and CustodialAgreement, along with the Merrill Lynch HealthSavings Account Adoption Agreement that you

have completed and signed, governs yourHealth Savings Account (“HSA”) of which MerrillLynch is custodian.

Your HSA is being established for, and thisAgreement shall be interpreted in accordancewith, the purpose of providing you with funds topay the “qualified medical expenses” of you, yourspouse and dependents pursuant to section 223of the Tax Code, through contributions by anyperson (you, your employer, a family member orany other person), rollover contributions ortransfer deposits received from another HSA orArcher MSA or special limited direct rollovers fromyour traditional individual retirement account(“Traditional IRA”), or your Roth individualretirement account (“Roth IRA”).

You represent that, unless this account is usedsolely to hold rollover contributions, you areeligible to contribute to this HSA, specifically, thatyou: (1) are covered under a high-deductiblehealth plan (an “HDHP”); (2) are not also coveredby any other health plan that is not an HDHP (withcertain exceptions for plans providing preventivecare and limited types of permitted insurance andpermitted coverage); (3) are not enrolled inMedicare; and (4) cannot be claimed as adependent on another person’s tax return.

Definitions:• մեroughout this Agreement, the words you

and your refer to the person for whom yourHSA is established or maintained. MerrillLynch, we, us, and our refer to Merrill Lynch,Pierce, Fenner & Smith Incorporated, aregistered broker-dealer and wholly ownedsubsidiary of Bank of America Corporation.Merrill Lynch is the custodian of your HSA.

• Bank of America California, N.A., and Bank ofAmerica, N.A. are referred to as the MerrillLynch Affiliated Banks. Securities Accountrefers to the Merrill Lynch cash securitiesaccount established when you establish yourHSA.

• Debit Card/Check Account refers to theaccount(s) established for you by the Banks.

• Checks refers to checks issued to you byBank of America, N.A. for use with your DebitCard/Check Account.

• Debit Card or Debit Cards refer to one ormore Visa debit cards issued to you by Bank

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of America, N.A. (BANA) for use with yourDebit Card/Check account.

• Money Account or Money Accounts refer toany FDIC-insured deposit account(s) openedfor you through the Merrill Lynch BankDeposit Program (MLBDP).

• Sweep Program refers to the automaticdeposit of available cash balances into theMoney Account(s).

• Tax Code refers to the Internal Revenue Codeof 1986 and the regulations adopted under it,both as amended.

• IRS refers to the Internal Revenue Service.

• HSA and Account refer to a Health SavingsAccount which is a Merrill Lynch HSA or anHSA with another financial institution.

In connection with the establishment of yourMerrill Lynch HSA, you will receive a copy of theMLBDP Fact Sheet and the HSA DisclosureStatement and Custodial Agreement. մեesedocuments shall be referred to in this Agreementas the Documents. մեe Documents containadditional terms governing your HSA. You agreethat these Documents are incorporated into thisAgreement as though they were fully set out inthis Agreement. As set forth in greater detailherein, we have the right to amend theDocuments. Unless the context otherwiserequires, the term Agreement shall include theDocuments, as amended from time to time. Youagree that we and the Merrill Lynch AffiliatedBanks shall have the right to amend thisAgreement, by modifying or rescinding any of itsexisting provisions or by adding any newprovision, at any time. Any such amendment shallbe effective as of a date to be established by usand the Merrill Lynch Affiliate Banks subject toapplicable law. You understand there may beadditional documentation required by applicablelaw or the policies and procedures of Merrill Lynchor the Merrill Lynch Affiliated Banks. You agree topromptly comply with any such requests foradditional documents. You acknowledge andagree that nothing in these Documents orotherwise will be construed to confer fiduciarystatus on us for any purpose. We are not requiredto perform any additional or supplementalservices not specifically allocated to us in theDocuments unless specifically agreed to by us in aseparate written agreement.

SeCTIoN 1: eSTABLISHING YoUR HSA

1. 1 When Your HSA Is establishedYou must receive the Merrill Lynch Health SavingsAccount Disclosure Statement and CustodialAgreement. An account is considered to beestablished aer the client has completed andsigned the Merrill Lynch Health Savings AccountAdoption Agreement and Merrill Lynch hasdetermined that all documentation for accountopening is in order and complete.

1. 2 Your Legal ResponsibilityYou agree to comply with all legal requirementsgoverning your HSA. մեis means that each timeyou make a contribution to your HSA or request adistribution from it, you will be affirming that youraction complies with all applicable legalrequirements. We will rely on your instructions asto any actions you may request us to takeconcerning your HSA.

SeCTIoN 2: CoNTRIBUTIoNS To YoUR HSA

2. 1 Types of Contributions AcceptedWe can accept several types of contributions toyour HSA under this Agreement:

• Annual cash contributions

• Tax-free rollovers or transfers of assets fromother HSAs or Archer MSAs

• Special tax-free direct rollovers of assets fromyour Traditional IRA or Roth IRA.

You are responsible for reporting contributions toyour HSA to the IRS on IRS Form 8889, “HealthSavings Accounts (HSAs).” You file the IRS Form8889 along with your IRS Form 1040. You are alsoresponsible for reporting your rollovercontributions, distributions and your allowabledeductions on IRS Form 8889. You will beresponsible for reporting tax-free special directrollovers from your Traditional IRA or Roth IRA toyour HSA on the applicable forms identified by theIRS.

2. 2 Annual HSA ContributionsWe will accept cash contributions for the tax yearmade by you or on your behalf (by your employer,family member or any other person). We will notknowingly accept cash contributions (other thantax-free rollovers and transfers from other HSAs orArcher MSAs and special direct rollovers fromIRAs) that exceed the maximum amount for familycoverage plus the catch-up contribution as anannual contribution (as adjusted for cost-of livingincreases) made by you or on your behalf to your

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HSA for any calendar year.

It is your responsibility to determine whethercontributions to the HSA have exceeded themaximum annual contribution limit. Ifcontributions to this HSA exceed the maximumannual contribution limit, it is your responsibilityto request the withdrawal of the excesscontribution and any net income attributable tosuch excess contribution. Should we discover thatwe have received an excess contribution, we willreturn the excess contribution to you only aerreceiving specific written authorization from you.

2. 3 Rollovers and Transfers from other HSAs orArcher MSAWe may accept all or part of the assets distributedfrom another HSA or Archer MSA as rollovercontributions to your HSA as described in ortreated under Tax Code section 223. We may alsoaccept all or part of the assets of another HSA orArcher MSA as a tax-free transfer to your HSA. Arollover or transfer can be in assets other thancash. However, all noncash assets must becompatible with our administrative andoperational requirements and framework. It isyour responsibility to determine whether rolloversor transfers to your HSAs are permissible underapplicable law.

2. 4 Special Direct Rollovers from lRAsWe may accept cash directly from your traditionalIRA or Roth IRA as a one-time tax-free directrollover to your HSA as described in or treatedunder Tax Code Section 223.

It is your responsibility to determine whether thespecial direct rollovers to your HSA arepermissible under applicable law and remainpermissible during the period determined underSection 408 (d) (9) of the Tax Code with respect toa special direct rollover from your Traditional IRAor Roth IRA.

2. 5 employer ContributionsWe will accept contributions made on your behalfby your employer for deposit into your HSA. We willnot knowingly accept contributions from youremployer that exceed the maximum amount forfamily coverage plus the catch-up contribution asan annual contribution (as adjusted for cost-of -living increases). However, you and your employerare responsible for determining whether thecontribution is within the limits set by the TaxCode and whether the employer’s contributionmeets the requirements of section 106(d) of the

Tax Code.

2. 6 Method of Making ContributionsAll contributions under Sections 2.2, 2.4 and 2.5(but not rollover contributions or transfersdescribed in Section 2.3) must be made by check,money order or electronic funds transferacceptable to us.

2. 7 Maximum ContributionsFor calendar year 2014, the maximum annualcontribution limit for an account owner with singlecoverage is $3,300. For calendar year 2014, themaximum annual contribution limit for an accountowner with family coverage is $6,550. մեeselimits may be subject to cost-of-living adjustmentsaer 2006. Eligibility and contribution limits aredetermined on a month by month basis.

You will be treated as eligible for the entire taxyear if you satisfy the eligibility requirementsduring the last month of the tax year. Under thisspecial rule you may make the maximumannual contribution to your HSA for the taxyear. It is your responsibility to determinewhether you are eligible to make HSAcontributions under this special rule andwhether you remain eligible for the perioddetermined under Section 223(b)(8) of the TaxCode.

Contributions to Archer MSAs or other HSAs andthe special one-time direct rollover from yourTraditional or Roth IRA count toward the maximumannual contribution limit to this HSA.

An additional $1000 catch-up contribution maybe made for an account owner who is at least 55or older and not enrolled in Medicare.

Contributions in excess of the maximum annualcontribution limit are subject to an excise tax.However, the catch-up contributions are notsubject to an excise tax.

2. 8 Timing of ContributionsContributions for any tax year may be made at anytime before the deadline for filing your federalincome tax return for that year (usually April 15 ofthe following year) without extensions.

SeCTIoN 3: INTeGRATeD FINANCIAL SeRVICe

3. 1 Description of Your HSAYour HSA consists of three parts: (I) the SecuritiesAccount, which is a cash securities accountthrough which you can buy, sell and hold

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securities; (2) the Money Account, availablethrough the Sweep Program, which is any FDIC-insured deposit account(s) established throughthe MLBDP; and (3) the Debit Card/ CheckAccount by which Bank of America, N.A. processesyour Checks and BANA processes your Visa DebitCard transactions. Once you complete and returnthe HSA Adoption Agreement to us, available freecredit balances in your Securities Account will beautomatically invested in one or more interest-bearing, bank deposit account(s) insured by theFDIC and opened through the MLBDP. We mayreasonably withhold access to your MoneyAccount balances until we are satisfied thatchecks credited to your Securities Account havebeen collected. We may satisfy amounts that youowe in connection with your HSA (such as debitbalances in the Securities Account and amountsowing in your Debit Card/Check Account) fromfunds obtained by withdrawals from your MoneyAccount or from your Securities Account. Certainfees, including the HSA custodial fee, which issubject to change, will be charged to your accountfor the HSA services provided to you. մեe DebitCard remains the property of BANA and may becanceled by BANA at any time without prior notice.(մեe Visa debit card cannot be used to purchaseover the counter medication without aprescription to or withdraw cash from an ATM.)

3. 2 Securities AccountYou will direct the investment of contributions toyour HSA and any earnings on the assetspurchased with those contributions.

You can request us to place each contribution inone or more of the investment alternatives weoffer for the Securities Account, subject to anyrules we may reasonably establish. Allinvestments must be compatible with theadministrative and operational requirements andprocedures of the Merrill Lynch account systemthrough which your Securities Account isadministered (as reflected in the Terms andConditions printed on the reverse side of your HSAstatements).

Assets in your HSA may not be commingled withother property except in a common trust fund or acommon investment fund. In addition, your HSAcannot be invested in life insurance contracts orin collectibles as defined in section 408(m) of theTax Code. One ounce American Gold or SilverEagle coins issued by the United States are notpermissible investments. մեe Tax Code prohibits

you from using your HSA to engage in certainprohibited transactions with respect to thisaccount (such as borrowing or pledging theaccount or engaging in any other prohibitedtransaction as defined in section 4975 of the TaxCode).

In implementing your investment directions (i) wemay hold securities in your HSA in our name orthe name of any nominee we select, withoutqualification or description of ownership; (ii) wemay make, sign and deliver any written contracts,waivers, releases or other documents necessaryto carry out your instructions; (iii) we mayestablish subaccounts for permitted investmentpurposes if compatible with the administrativeand operational requirements and procedures ofthe account system through which your HSA isadministered; and (iv) if you do not give usinvestment directions as provided by thisAgreement, we may hold assets uninvested untilreceiving proper instructions.

We will provide you with all notices, prospectuses,financial statements, proxies and proxysolicitation materials we receive concerninginvestments in your HSA. We will follow yourwritten instructions for voting shares andexercising other rights of ownership with respectto such investments. Subject to, and except aspermitted by, any applicable rules of theSecurities and Exchange Commission and anynational securities exchange, in the absence ofwritten instructions from you, we will not exerciseany rights concerning the investments in your HSAand will not be responsible for the consequencesof failing to take action.

You may appoint an investment advisor or personto act as your representative with authority todirect the investment of any assets in your HSA.Your appointment, however, will be effective only if(i) we have received a signed copy of anagreement between you and such person, whichis acceptable to us and which specifies that suchperson may act on your behalf and direct us as tohow to invest your assets, and (ii) we do not objectto acting on the directions of that person, whichobjection we may assert at any time for anyreason. If you have appointed an investmentadvisor or other person pursuant to thisparagraph, the words “you” and “your” in thisSection 3.2 (other than this paragraph) and in

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Section 5.4 refer to that investment advisor orother person with respect to the actions andassets involved. However, the words you and yourin any reference to ownership of your HSA and themaking of contributions to that HSA refer only toyou.

3. 3 Debit Cards and ChecksYour HSA will be liable for all authorizedtransactions arising through the use of the DebitCard(s) and Checks in connection with your DebitCard/Check Account. You will be responsible, on a continuing basis, for the safekeeping of yourDebit Card(s) and Checks and shall not permitunauthorized persons to have access to yourDebit Card(s) or Checks. You also will beresponsible for reviewing your HSA monthlystatement in order to discover and report toMerrill Lynch the possible unauthorized use ofyour Debit Card(s) and Checks.

You agree to notify Merrill Lynch immediately ifyou believe or have reason to believe that yourDebit Card(s) or Checks have been or may be usedby an unauthorized person. Unless limited by law,you will be responsible for any and all losses anddamages that arise from any breach of yourundertakings to safeguard your Debit Card(s) andChecks, to review your HSA monthly statement forpossible unauthorized activity, and to promptlyreport any unauthorized activity to Merrill Lynch.You also agree that your HSA must pay thereasonable costs and expenses of collection ofany unpaid balance due, including any accruedfinance charges, as a result of any overdra(s),including but not limited to attorney’s fees, to theextent allowed by law, involved in such collection.You understand that the Merrill Lynch AffiliatedBanks have not taken a security interest in any ofthe assets in your Securities Account or in yourMoney Account balances pursuant to thisAgreement.

3. 4 Purchasing PowerYou agree that you will not incur charges to yourDebit Card/Check Account in excess of yourPurchasing Power. մեe Purchasing Power for yourDebit Card/Check Account will be the total of anyavailable free credit balance in your SecuritiesAccount and the available Money Accountbalances. If you exceed your Purchasing Power,you will be in default, which may result intermination of your subscription to the HSAServices.

3. 5 Account InquiriesYou understand that inquiries and errorallegations concerning your Debit Card/CheckAccount and your monthly statement should bedirected through Merrill Lynch.

3. 6 Your Right to DistributionAny amount you or your beneficiaries receive fromyour HSA is called a “distribution.” You canwithdraw all or any part of the assets in your HSAat any time.

3. 7 Directing a DistributionDistributions will be made from your HSA aer:

(i) items are presented to Bank of America, N.A.or BANA for payment from your DebitCard/Check Account or

(ii) your proper completion of an HSAdistribution form

We may decline to accept an HSA distributionform in accordance with our established policies.Distributions may be made directly to you or,subject to our rules and procedures, to your otherMerrill Lynch nonmedical and nonretirementaccount. When you request a cash distribution,you must inform us as to which assets should besold to make the distribution.

With noncash distributions and distributionsinvolving certain types of investments, you shouldbe aware of the following: the distribution ofnoncash investments from your HSA, such asstocks or mutual fund shares, involves thereregistration of these assets and can frequentlytake several weeks. Additionally, certaininvestments are not readily salable and/or maybe transferred into another owner’s name only atspecified times. You should consider these issuesand allow extra time for processing yourdistributions if any of these situations apply toyou.

You are responsible for determining if distributionsare for “qualified” medical expenses and properlyreporting all distributions on your tax return. Youare responsible for substantiating that thedistribution is for a qualified medical expense andmaintaining records sufficient to show, if required,that the distribution is tax-free. You are alsoresponsible for completing IRS Form 8889,“Health Savings Accounts (HSAs),” and submittingit along with IRS Form 1040 and your taxes to theIRS. Merrill Lynch is responsible for reporting theamount of distributions in a year from the HSA, inaccordance with IRS reporting requirements, but

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is not responsible for determining whether or notdistributions are excludable from income (or aresubject to any additional taxes).

3. 8 Mistaken DistributionsIf there is clear and convincing evidence that youreceived an HSA distribution as the result of amistake due to reasonable cause (e. g. youreasonably, but mistakenly, believed that anexpense was a qualified medical expense and youwere reimbursed for the expense from the HSA)you may repay the mistaken distribution at anytime before the end of the calendar year in whichthe distribution was made. մեe mistakendistribution will not be included in income and willnot be subject to the 20% additional tax fornonqualified distributions nor the excise tax onexcess contributions. Merrill Lynch may rely onyour representation that the distribution was, infact, a mistake.

SeCTIoN 4: DeATH AND BeNeFICIARIeS

4. 1 effect of Death on HSAIf the designated beneficiary is your survivingspouse, we will treat the HSA as his or her ownHSA at your death. մեis Agreement shall bebinding upon your spouse unless superseded by anew HSA agreement.

If any person other than your surviving spouse isthe designated beneficiary or acquires yourinterest in the HSA on account of your death otherthan as your designated beneficiary, the HSA willcease to be a health savings account within themeaning of section 223 of the Tax Code as of thedate of your death. At this time, it is unclearwhether your surviving spouse will be treated asthe new owner of the HSA if he or she acquiresyour interest in the HSA other than as yourdesignated beneficiary. If the HSA ceases to be ahealth savings account on account of your death,we may take such actions, including requiringsuch documents or imposing such restrictions onthe account, as we may deem necessary in thecircumstances.

4. 2 Naming a BeneficiaryYou may name one or more beneficiaries of yourHSA, including individuals, your estate or a trust.Your designation may include contingentbeneficiaries and may restrict a spousebeneficiary from taking distributions in excess ofspecified amounts. Unless a prior beneficiarydesignation provides to the contrary, you or your

spouse beneficiary may designate andsubsequently change the designation of abeneficiary to receive any balance remaining inyour HSA following your death or the death of yourspouse beneficiary entitled to receive benefits.

Notwithstanding the preceding paragraph, allbeneficiary designations or changes of beneficiarymust be in writing, subject to any rules we mayestablish and are not effective until we receiveand accept them. We specifically reserve the rightnot to accept any beneficiary designation that isincompatible with our administrative andoperational capabilities, even if such designationis otherwise allowable. A proper writtendesignation or change of beneficiary, which you oryour spouse beneficiary executed prior to your oryour spouse beneficiary’s death and which wereceive following your or your spouse beneficiary’sdeath, will govern distributions from your HSAfollowing, but not prior to, our acceptance of thedesignation.

If your beneficiary is a trust or your estate,distributions will generally be made to the trusteeof the designated trust or the executor of yourestate. However, the trustee of the trust or theexecutor of your estate may, in writing, subject toany rules we may establish, direct us to makedistributions to the trust’s or estate’s beneficiariesof its interest in your HSA.

Aer your death, Merrill Lynch will makedistributions to the listed beneficiary of record,regardless of state community property law. If, asa result of state community property law,payments are to be made to the surviving spouserather than the named beneficiary, a writtenstatement authorizing such payment must besubmitted and signed by the spouse and thedesignated beneficiary.

Unless otherwise provided in your beneficiarydesignation, if a primary beneficiary predeceasesyou, his or her share will be distributed toremaining primary beneficiaries in proportion totheir payment percentages. If no primarybeneficiaries survive you, the balance will bedistributed to your contingent beneficiaries.

If you have not designated a beneficiary, or if nobeneficiary survives you, your HSA balance will bepaid to your surviving spouse, or, if you are notsurvived by your spouse, to your estate.

If we are notified that a beneficiary is legally aminor under the applicable state law, we can fulfill

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our responsibilities as custodian by paying eitherthe beneficiary’s parent or legal guardian.

If a decree of divorce or annulment is renderedaer you designate your spouse as a beneficiary,any designation in favor of your former spouse isnot effective unless the decree designates suchspouse as the beneficiary, you redesignate suchspouse as a beneficiary, or such spouse isdesignated to receive proceeds or benefits in trustfor, on behalf of, or for the benefit of your child ordependent.

If we cannot locate you or your beneficiary, wecan, with no responsibility for the consequences,sell any or all of the assets in your HSA and, if notinvested or deposited through the MoneyAccount, invest in a money market fund or depositthe proceeds in an interest-bearing account. Wewill do so only aer waiting at least two monthsfrom the date we attempt to locate you or yourbeneficiary by sending a written notice to the lastaddress shown for your or your beneficiary in ourrecords.

SeCTIoN 5: YoUR AND oUR RIGHTS ANDReSPoNSIBILITIeS

5. 1 Fees and other expensesYou agree to pay us fees for our services ascustodian of your HSA, according to our currentfee schedule, which we may change from time totime. If you enroll your HSA in a Merrill Lynchadvisory service, you may also have to pay MerrillLynch a fee in connection with such service. Youagree to reimburse us for any applicable taxeswith respect to your HSA, including transfer taxeson investments and any other expenses we incuras custodian or that may otherwise be properlycharged to your account.

We may deduct directly from your HSA any suchfees, tax reimbursements or expenses owed to us.If sufficient cash is not available in your HSA, wereserve the right to sell any assets in your HSA tocover amounts due us. We may also, at yourdirection, deduct fees and expenses of anyinvestment advisor you appoint, to the extent notpaid by you or otherwise prohibited.

5. 2 Records and ReportsWe will use commercially reasonable efforts tokeep accurate and detailed records of alltransactions concerning your HSA. We will submitsuch annual and other written reports to you andthe IRS as required of us by law. If you do not writeto us to object to a report within 60 days aer we

send it to you, you will be considered to haveapproved it and to have released us from allresponsibility for matters covered by the report.

You agree to provide us with any information wemay need to comply with our legal reportingrequirements. You will continue to be responsiblefor filing your federal tax return and any otherreports required of you by law. All distributionsfrom your HSA, including those resulting fromaccount revocations, are reported to you and theIRS on IRS Form 1099-SA.

5. 3 TaxesIf investments in your HSA generate “unrelatedbusiness taxable income” of more than $1,000during the year, we may have to calculate and payincome taxes on that amount. If so, we reservethe right to impose a fee for filing a tax return foryour HSA.

Dividends and earnings on investments in foreignsecurities or mutual funds with foreign securityholdings may be subject to foreign taxwithholding. You should note that, in contrast toholding these investments in a taxable portfolio,foreign taxes withheld on HSA income may beineligible for the U. S. foreign tax credit.Consequently, the effective yield on HSAinvestments in foreign securities and mutualfunds with foreign security holdings may be lowerthan the effective yield on investments in foreignsecurities and mutual funds with foreignsecurities in accounts other than an HSA.Individuals with both tax-favored accounts, suchas your HSA, and taxable portfolios may find itpreferable to hold foreign securities in theirtaxable investment portfolios.

5. 4 Limits on our Responsibility as CustodianWe do not assume liability for any losses incurredin your HSA as a consequence of the investmentsyou selected.

We have no duty to perform any actions otherthan those specified in this Agreement. We canaccept and rely conclusively on any instructions orother communications we reasonably believe tohave been given either by you or some otherauthorized person. We can assume that theauthority of any such person continues in effectuntil we receive written notice to the contrary.

We have no duty to determine or advise you or anyother person of the investment, tax or other

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consequences resulting from your or their actionsinvolving your HSA. Nor are we liable for theinvestment, tax or other consequences of your ortheir actions, or of our actions in following yourdirections, or of our failing to act in the absence ofyour or their directions, or of our failing to act inthe absence of your or their directions.

We will not make any investments or dispose ofany investments in your HSA without yourdirection or authorization, except as otherwiseprovided in this Agreement, such as to payamounts owed us or if the assets in your HSA areconsidered to be abandoned, in which case wewill pay the assets to the state of your last knownresidence. We are not responsible for reviewingthe assets in your HSA or for makingrecommendations on acquiring, retaining orselling any assets, except to the extent providedunder the terms and conditions of a Merrill Lynchadvisory agreement in which your HSA is enrolled.

5. 5 Termination of HSA Services and Resignation of Custodian

մեe Merrill Lynch Affiliated Banks, we or you mayterminate your subscription to any or all of theHSA Services, including the use of your Checksand Debit Cards, at any time. We can resign ascustodian of your HSA by giving you written notice.Our resignation will take effect 30 days aermailing the notice to your last known address inour records. If our notice of resignation does notcontain a designation of a qualified custodian toreplace us and you do not appoint a qualifiedsuccessor custodian to replace us, we candistribute the balance in your HSA to you in asingle payment. Upon termination of an HSA, wemay automatically liquidate your Money Accountand you must promptly return all Debit Cards andunused HSA Checks to us and discontinue usingany other means of access to the HSA. Your HSAshall remain responsible for authorized chargesthat arise before or aer termination.

You can direct us in writing to transfer the assetsin your HSA to some other custodian or trustee ofanother HSA you identify to us. You are required todirect us to transfer your account to some othertrustee or custodian in the unlikely event that theIRS notifies us that we do not qualify to act ascustodian. We will make a transfer aer receipt ofthe new custodian’s or trustee’s writtenacceptance of the appointment. Certaininvestments, such as limited partnerships,

generally can be transferred only annually,semiannually or at other specified intervals.Additionally, some investments, such as certaincertificates of deposit (CDs) cannot be deliveredand must be either liquidated or held with thecustodian until maturity.

SeCTIoN 6: oTHeR RULeS GoVeRNING YoUR HSA

6. 1 Your Right to Your HSA BalanceYour right to the balance in your HSA cannot beforfeited at any time.

6. 2 Restrictions on the Sale or Transfer of Your HSA

Your HSA is exclusively for the benefit of you andyour spouse beneficiary’s benefit. Aer yourdeath, your spouse beneficiary, except asspecifically provided to the contrary, will have allthe rights and all the obligations you had withrespect to your HSA. You cannot sell or assign anyinterest in your HSA. However, you may be able totransfer all or part of your HSA to a former spouseunder the terms of a divorce decree or writtenagreement made in connection with your divorce.Following your death, the trustee of a trust or thepersonal representative of an estate which is yourbeneficiary may be able to direct us to makedistributions directly to the beneficiaries of suchtrust or estate, as provided in “Naming aBeneficiary” above.

6. 3 Presumption of Receipt of CommunicationsYou agree that communications, includingmonthly statements and other notices, may besent to your address or to such other address asyou provide in writing. All communications so sentwill be considered to have been given to youpersonally upon such sending, whether or not youactually receive them.

6. 4 Credit InformationYou authorize Merrill Lynch and its affiliates(including the Merrill Lynch Affiliated Banks) torequest a consumer report about you from one ormore consumer reporting agencies for thepurposes of evaluating your subscription to theHSA Services, reviewing or collecting any accountopened for you, or for any other legitimatebusiness purpose. At your request, we will supplyyou with the name and address of each consumerreporting agency from which we obtained aconsumer report, if any, in connection with yoursubscription or accounts. You understand that

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Merrill Lynch shares information with its affiliates,UMB Bank, n.a., and the Merrill Lynch AffiliatedBanks in accordance with our privacy policies.UMB Bank, n.a. is not affiliated with Bank ofAmerica Corporation, but is under contract toprocess checks for Merrill Lynch accounts. Formore information, please read our “U.S.Consumer Privacy Notice” by visitingwww.ml.com/privacy.

6. 5 Indemnification and Lawsuits Involving Your HSA

You agree to hold us harmless from and indemnifyus against any liability, cost, or expense that mayarise in connection with the Documents or yourHSA, other than those arising out of our materialfailure to perform our specified duties hereunder.Without limiting the generality of the foregoing,you agree to repay us for any liabilities orexpenses we may incur as the result of thisAgreement, other than those arising out of ourmaterial failure to perform our specified dutieshereunder. We are not liable for any special,incidental, consequential, or punitive damagesunder any circumstance. Except as tocontroversies arising between us, we can apply toa court at any time for judicial settlement of anymatter involving your HSA. If we do so, we mustgive you the opportunity to participate in the courtproceeding, but we can also involve otherpersons. Any expenses we incur in legalproceedings involving your HSA, includingattorney’s fees, are chargeable to your HSA andpayable by you if not paid from your HSA.

6. 6 Account InquiriesYou understand that inquiries and errorallegations concerning your Debit Card/CheckAccount and your monthly statement should bedirected through Merrill Lynch.

6. 7 Applicable Rules and RegulationsAll transactions in your Securities Account shall besubject to the constitution, rules, regulations,customs and usages of the exchange or marketand its clearinghouse, if any, on which suchtransactions are executed by us or our agents,including our subsidiaries and affiliates.

6. 8 Agreement to Arbitrate Controversiesմեis Agreement contains a predisputearbitration clause. By signing an arbitrationagreement the parties agree as follows:

• All parties to this Agreement are giving upthe right to sue each other in court,including the right to a trial by jury, exceptas provided by the rules of the arbitrationforum in which a claim is filed.

• Arbitration awards are generally final andbinding; a party’s ability to have a courtreverse or modify an arbitration award isvery limited.

• մեe ability of the parties to obtaindocuments, witness statements and otherdiscovery is generally more limited inarbitration than in court proceedings.

• մեe arbitrators do not have to explain thereason(s) for their award unless, in aneligible case, a joint request for anexplained decision has been submitted byall parties to the panel at least 20 daysprior to the first scheduled hearing date.

• մեe panel of arbitrators may include aminority of arbitrators who were or areaffiliated with the securities industry.

• մեe rules of some arbitration forums mayimpose time limits for bringing a claim inarbitration. In some cases, a claim that isineligible for arbitration may be brought incourt.

• մեe rules of the arbitration forum in whichthe claim is filed, and any amendmentsthereto, shall be incorporated into thisagreement.

You agree that all controversies that may arisebetween us shall be determined by arbitration.Such controversies include, but are not limitedto, those involving any transaction in any ofyour accounts with Merrill Lynch, or theconstruction, performance or breach of anyagreement between us, whether entered into oroccurring prior, on or subsequent to the datehereof.

Any arbitration pursuant to this provision shallbe conducted only before the Financial IndustryRegulatory Authority, Inc. (FINRA) or anarbitration facility provided by any otherexchange of which Merrill Lynch is a member,and in accordance with the respectivearbitration rules then in effect in FINRA or suchother exchange.

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You may elect in the first instance whetherarbitration shall be conducted before FINRA oranother exchange of which Merrill Lynch is amember, but if you fail to make such election byregistered letter addressed to Merrill Lynch atthe office where you maintain your accountbefore the expiration of five days aer receiptof a written request from Merrill Lynch to makesuch election, then Merrill Lynch may makesuch election.

Judgment upon the award of arbitrators may beentered in any court, state or federal, havingjurisdiction.

No person shall bring a putative or certified Noperson shall bring a putative or certified classaction to arbitration, nor seek to enforce anypre-dispute arbitration agreement against anyperson who has initiated in court a putativeclass action or who is a member of a putativeclass who has not opted out of the class withrespect to any claims encompassed by theputative class action until: (i) the classcertification is denied; or (ii) the class isdecertified; or (iii) the customer is excludedfrom the class by the court. Such forbearanceto enforce an agreement to arbitrate shall notconstitute a waiver of any rights under thisAgreement except to the extent stated herein.

6. 9 Governing LawTHIS AGReeMeNT, AND ITS eNFoRCeMeNT,WITH ReSPeCT To ALL PoRTIoNS oF THe HSASeRVICeS, WILL Be GoVeRNeD BY THe LAWSoF THe STATe oF NeW YoRk AND FeDeRAL LAWAPPLICABLe To HSAs, WITHoUT ReGARD ToTHe CoMMUNITY- PRoPeRTY LAWS oF ANYSTATe. THe TeRMS oF YoUR AGReeMeNT WITHBANk oF AMeRICA, N. A. INCLUDING THoSeReLATING To ISSUANCe AND USe oF THe DeBITCARD, ARe GoVeRNeD BY FeDeRAL ANDNoRTH CARoLINA LAW. THe TeRMS oF THeAGReeMeNTS WITH BANk oF AMeRICACALIFoRNIA, N. A. ARe GoVeRNeD BY FeDeRALAND CALIFoRNIA LAW.

6. 10 Headings Are Descriptiveմեe heading of each provision of this Agreement isfor descriptive purposes only and shall not bedeemed to modify or qualify any of the rights orobligations set forth in each such provision.

6. 11 Separability and Right to AmendIf any provision of this Agreement is held to beinvalid, illegal, void or unenforceable by reason ofany law, rule, administrative order or judicial

decision, such determination will not affect thevalidity of the remaining provisions of thisAgreement.

Except as may otherwise be provided in anydocument incorporated into and made a part ofthis Agreement by reference, the rights, duties,and obligations of both you and us with regard toyour HSA are governed by the most currentversion of this Agreement. We may amend thisAgreement at any time and will generally send ormake available to you notice of any materialchanges. Any amendment will become effectiveon the date determined by us, and your continueduse of the account aer such date constitutesyour acceptance of the change. Further, thisAgreement will be amended automatically tocomply with any change in applicable law orregulation as of the effective date of such change.If any provision of this Agreement is found to be inconflict with a provision of applicable law orregulation, then such other law or regulation willsupersede that provision.

6. 12 extraordinary eventsYou agree that Merrill Lynch, its affiliates, UMBBank, n.a., and the Merrill Lynch Affiliated Bankswill not be liable for loss caused directly orindirectly by government restrictions, exchange ormarket rulings, suspension of trading, war, strikes,or other conditions beyond their control.

6. 13 Binding effect on SuccessorsYou and we agree that this Agreement will bebinding on and will inure to the benefit of thebeneficiaries, heirs, successors and personalrepresentatives of you, your beneficiaries andMerrill Lynch.

6. 14 Investment in non-US issued securitiesIf you trade and hold non-US issued securities,you acknowledge and agree that Merrill Lynch orits affiliates are, or may be required to discloseyour name and other identifying information,including but not limited to, Social Securitynumber or tax identification number, to regulators(including taxing authorities) and/or issuers tocomply with local law and/or customer orpractice. For example, we may be required toprovide personal information in order to meetlocal regulations that require the submission ofinvestor names to the local stock exchange, or anissuer may request residence and taxpayeridentification information in order to obtainfavorable tax treatment, such as lower withholdingrates, for shareholders.

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6. 15 Referral PolicyMerrill Lynch, Pierce, Fenner & Smith Incorporated(“MLPF&S”) is an affiliate of Bank of America, N.A.and other subsidiaries of Bank of AmericaCorporation (collectively, “Merrill Lynch”). MerrillLynch is one of the world’s largest financialinstitutions, serving individual consumers, small-and middle-market businesses, institutionalinvestors, large corporations and governmentswith a full range of banking, investing, assetmanagement and other financial and riskmanagement products and services. In the eventMerrill Lynch refers your business among itsaffiliates to provide you with certain products orservices, Merrill Lynch (or its employees orrepresentatives) may receive financial or otherbenefits for such referrals.

About the Merrill LynchBank Deposit Program

մեis section describes the manner in which freecredit balances of customers (“you,” “your” and“yours”) of the Merrill Lynch Health SavingsAccount, will be deposited in bank depositaccounts established in the name of Merrill Lynchas your agent at either Bank of America, N.A.(BANA) and/or Bank of America California, N.A.(“BA-CA”), by Merrill Lynch, Pierce, Fenner & SmithIncorporated (“Merrill Lynch”). մեis feature iscalled the Merrill Lynch Bank Deposit Program(“MLBDP”).

If you subscribe to the MLBDP for your HSAaccount, Merrill Lynch, as your agent, willestablish two bank deposit accounts on yourbehalf at BANA and BA-CA: (1) a bank transactionaccount (“BTA”); and (2) a money market depositaccount (“MMDA”). մեe BTAs and MMDAsestablished through the MLBDP are each a“Deposit Account.”

eLIGIBILITY

մեe MLBDP is available only to individuals,business entities, certain nonprofit organizationssuch as 501(c) (3) entities and certain fiduciariesand trusts, provided the beneficiaries areindividuals or otherwise eligible.

HoW THe PRoGRAM WoRkS

Deposits for single account holders

մեe timing of the deposit of available free creditbalances will be as set forth in the HSA accountagreement.

For HSA accounts, free credit balances of up to$246,000 are remitted automatically for depositby Merrill Lynch, acting as your agent, to yourDeposit Accounts established by Merrill Lynch atBANA. Merrill Lynch will make this deposit on yourbehalf without reference to any other amountsyou may have on deposit with BANA. If yourDeposit Account balances with BANA reach$246,000, then free credit balances are remittedfor deposit to your Deposit Accounts establishedby Merrill Lynch at BA-CA, until Deposit Accountbalances at BA-CA (from your HSA account) reach$246,000. If your Deposit Account balances atBA-CA (from your HSA account) reach $246,000,subsequent funds will be deposited in yourDeposit Accounts at BANA, even if the amountsthen deposited in BANA through the MLBDPexceed $250,000.

All deposits made to the Deposit Accounts will bemade to your MMDA accounts, except asdescribed under “Transfers and withdrawals” onthe following page.

Important deposit insurance considerationsAll funds on deposit in each Merrill Lynch AffiliatedBank are eligible for insurance by the FederalDeposit Insurance Corporation (“FDIC”). Depositsare insured up to the Standard Maximum DepositInsurance Amount (“SMDIA”), per ownershipcategory, per bank. For purposes of determiningdeposit insurance coverage, all accounts ordeposits (including certificates of deposit (“CDs”)you hold either directly or through any otheraccount at Merrill Lynch or any otherintermediary) in the same Merrill Lynch AffiliatedBank will be aggregated. Amounts on deposit atBANA or BA-CA in the same insurable capacity(including CDs and other deposits you may have)in excess of the applicable FDIC insurance limitwill not be covered by FDIC insurance. You areresponsible for monitoring the total amount of allMerrill Lynch Affiliated Bank deposits in order foryou to determine the extent of insurance coverageavailable to you on those deposits, including theDeposit Accounts and CDs.

If you have elected the MLBDP sweep feature inconnection with more than one Merrill Lynch

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Account in the same ownership category (such asa individual Cash Management Account (CMA)®and individual HSA Account), you should note thatremittances of funds from the HSA and CMA to theDeposit Accounts are made by Merrill Lynch, asyour agent, on an automated and independentbasis. Merrill Lynch will not monitor and adjustdeposits to the Deposit Accounts to achieve thegreatest deposit insurance coverage for youbetween or among your Merrill Lynch accounts.Persons with more than one Merrill Lynch accountwith the MLBDP should consider variousalternatives to lessen the amount of theiruninsured Deposit Accounts. մեese alternativesmay include selecting a different Money Account,if available, into which available cash balances intheir second (or additional) Merrill Lynch accountsare swept, and carefully monitoring andperiodically adjusting the amount of their depositswith BANA and BA-CA (whether in the DepositAccounts, CDs or other deposits).

As a result of the automated and independentnature of the deposit-making process for theMLBDP, it is possible, for example, that individualMerrill Lynch account holders with a both an HSAand CMA could have amounts on deposit withBANA in excess of the FDIC insurance maximumbefore any deposits are made, under the MLBDP,to the individual’s Deposit Accounts at BA-CA.

Merrill Lynch is not responsible for any insured oruninsured portion of the deposits made under theMLBDP, or any CDs or any other deposits you mayhave.

For more information on FDIC deposit insurance,refer to the “About Deposit Insurance” section onpage 38.

Transfers and withdrawalsWithdrawals will be made from your BTAs byMerrill Lynch as your agent as necessary to satisfydebits (securities purchases, Checks, Visa andother charges) in your respective HSA accountagreement. If you have Deposit Accounts only withBANA then withdrawals will be made from yourDeposit Accounts at BANA. In general, if you haveDeposit Accounts at both BANA and BA-CA,withdrawals will be made from your DepositAccounts in the reverse of the order in whichdeposits are made to the accounts.

If funds in a BTA are insufficient to satisfy a debit,funds in the MMDA at either BANA or BA-CA will betransferred to the BTA at BANA or BA-CA to satisfy

the pending withdrawal, plus a “cushion” to bedetermined from time to time by Merrill Lynch.Federal banking regulations generally limit thetransfers from an MMDA to a total of six (6) duringa monthly statement cycle and certainaggregation rules may apply to transfers from theMMDAs at BANA or BA-CA. At any point during amonth in which transfers from the MMDAs atBANA or BA-CA have reached the applicable limit,funds will be transferred from all MMDAs you haveat BANA or BA-CA to the related BTAs. For theremainder of the month, free credit balances inyour HSA will be deposited in your BTAs instead ofthe MMDAs as described above. At the beginningof each month, all funds in the BTAs (less $1) willbe transferred to the MMDAs. մեe limits on MMDAtransfers will not limit the number of withdrawalsyou can make from funds on deposit at BANA orBA-CA through the MLBDP.

As required by federal regulations, BANA and BA-CA reserve the right to require seven days’ priornotice before permitting a transfer out of the BTAsand MMDAs. BANA and BA-CA have not exercisedthis right in the past.

մեe BTAs and MMDAs are not transferable.

Interest rates, yields and tieringInterest rates paid on deposits in the MLBDP aredetermined at the discretion of BANA and BA-CAbased on economic and business conditions.Interest rates may change daily. մեe current yieldon any deposits held in the MLBDP is included onyour Merrill Lynch account statement. Recentyields may be accessed on MyMerrill.com (see the“Deposit Account & Money Fund Rates” link at thebottom of each page) or by contacting yourFinancial Advisor.

Balances in the BTAs and MMDAs at BANA andBA-CA will earn the same interest rate and rate ofreturn.

Interest rates paid on deposits in the MLBDP aretiered based on the assets in your HSA account.

մեe rates of return paid with respect to theaccounts may be higher or lower than the rates ofreturn available to direct depositors of eitherBANA or BA-CA for comparable accounts. Ofcourse, you should compare the terms, rates ofreturn, required minimum amounts, charges andother features of the deposits at either BANA orBA-CA with other accounts, sweep programs andalternative investments offered by Merrill Lynch orother institutions.

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Interest will accrue on Deposit Account balancesfrom the day they are deposited to either BANA orBA-CA to (but not including) the date ofwithdrawal, and will be compounded daily andcredited monthly. Both BANA and BA-CA use thedaily balance method to calculate interest on theaccounts. մեis method applies the applicable rateto the principal in the accounts each day.

Account statements and informationAll deposits to and withdrawals from your DepositAccounts will be confirmed and appear inchronological sequence on separate monthly HSAaccount agreement statements. In addition, thestatements will show the total of your opening andclosing deposit balances for the period at BANAand/or BA-CA. To determine your total deposits inBANA and/or BA-CA through the MLBDP, you willneed to add the balances shown on eachstatement. մեe statements will also includeinterest earned for the period at BANA and/or BA-CA.

You may obtain information about your accountswith either BANA and/or BA-CA, includingbalances, checking activity and the currentinterest rates, by calling your Financial Advisor or(800) MERRILL (637-7455).

Your relationship with Merrill LynchMerrill Lynch is acting as agent and messenger forits customers for the deposits at BANA and/ or BA-CA. մեe separate accounts established by MerrillLynch on your behalf will be evidenced by a bookentry on the account records of BANA and/or BA-CA and reflected on your periodic Merrill Lynchaccount statements. No evidence of ownership,such as a passbook or certificate, will be issued to you.

Checks clear through the check writing facilityprovided for your HSA, which results in debitsdirectly against your HSA account at Merrill Lynch.Your HSA is an investment and moneymanagement vehicle. մեe Visa Card and checkingfeatures are intended to provide you with easyaccess to assets in your account. An HSA accountis not a bank account. Checks are provided to youby Merrill Lynch and not by either BANA or BA-CA.In addition, all transactions are effected throughMerrill Lynch, as agent, and not directly betweenyou and either BANA or BA-CA.

Deposits with BANA are obligations of BANAonly and are not guaranteed by or obligations ofBank of America Corporation or any other

subsidiary thereof. Deposits with BA-CA areobligations of BA-CA only and are notguaranteed by or obligations of Bank ofAmerica Corporation or any other subsidiarythereof. Upon request, you will be provided withthe publicly available summary financialinformation that Merrill Lynch has relating tothe BANA and BA-CA. Merrill Lynch is not abank. Securities made available through MerrillLynch are not guaranteed by any bank, are notinsured by the FDIC, and may lose value.

Merrill Lynch may, in its sole discretion andwithout notice, terminate your use of the HSA.Either BANA or BA-CA may also terminate, in itssole discretion and without notice, your DepositAccounts. If Merrill Lynch does not wish tocontinue to act as your agent with respect to yourDeposit Accounts, you may deal directly witheither BANA or BA-CA, subject to its rules withrespect to maintaining direct bank accounts.Similarly, if you decide that you no longer wish tohave Merrill Lynch act as your agent andmessenger with respect to the Deposit Accountsestablished for you at either BANA or BA-CA, youmay establish a direct relationship with eitherBANA or BA-CA, subject to its rules with respect tomaintaining such accounts, by requesting to havethe accounts established in your name. մեis willresult in severance of the Deposit Accounts fromyour HSA account agreement.

As stated in the HSA Account Disclosures andAccount Agreement, Merrill Lynch may delaypayment from your account for a certain numberof days based upon factors including whether thesource of the funds placed in your HSA was anelectronic funds transfer, check, dra or similarinstrument.

Benefits to Merrill LynchDeposits held in BANA and BA-CA are financiallybeneficial to Merrill Lynch and its affiliates. BANAand BA-CA use bank deposits to fund current andnew lending, investment and other businessactivities. Like other depository institutions, theprofitability of BANA and BA-CA is determined inlarge part by the difference between the interestpaid and other costs incurred by them on bankdeposits and the interest or other income earnedon their loans, investments and other assets. մեedeposits provide a stable source of funding forBANA and BA-CA, and borrowing costs incurred tofund the business activities of BANA and BA-CA

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have been reduced by the use of deposits fromMerrill Lynch clients.

Merrill Lynch receives compensation from BANAand BA-CA of up to $100 per year for each HSAaccount that has uninvested cash balancesautomatically swept to BANA and/or BA-CA underthe MLBDP. մեe amount of this compensation issubject to change from time to time and MerrillLynch may waive all or part of it. Other than theregular annual Merrill Lynch account fees, therewill be no charge, fee or commission imposed withrespect to your deposits with BANA or BA-CA. OurFinancial Advisors are compensated based ontotal client deposits held in either BANA or BA-CA.

ABoUT DePoSIT INSURANCe

FDIC InsuranceFDIC insurance covers all deposit accounts at anFDIC insured bank, which includes MLBDPdeposits. Deposits maintained in differentcategories of legal ownership—such as individualaccounts, joint accounts, or Certain RetirementAccounts—are separately insured by the FDIC upto the applicable Standard Maximum DepositInsurance Amount (SMDIA) per depositoryinstitution. մեe SMDIA is $250,000 per depositor,per ownership category, per bank. Your FDICprotection takes effect as soon as BANA and/orBA-CA receives your deposits from Merrill Lynch.Amounts in excess of the applicable FDICinsurance limit may be deposited to the MerrillLynch Affiliated Banks from the same Merrill Lynchaccount. It is important to note that uninvestedcash held in more than one Merrill Lynch account(such as an HSA account and an HSA SubAccount)may be deposited to the same Merrill LynchAffiliated Banks. Any accounts or deposits (e.g.,CDs) maintained with a Merrill Lynch AffiliatedBank in the same legal ownership category,whether directly, through other Merrill Lynchaccounts or through any other intermediary,would be aggregated for FDIC insurance limitpurposes.

You are responsible for monitoring the totalamount of your deposits in order for you todetermine the extent of insurance coverageavailable to you on your deposits, including anyCDs. Merrill Lynch is not responsible for anyinsured or uninsured portion of MLBDPdeposits, CDs or any other deposits.

Merrill Lynch will not be obligated to you foramounts not covered by deposit insurance; norwill Merrill Lynch be obligated to make anypayments to you in satisfaction of a loss you mightincur as a result of a delay in insurance payoutsapplicable to your Deposit Accounts. Merrill Lynchwill not be obligated to credit your HSA with fundsin advance of their payment to Merrill Lynch bythe FDIC. Each Deposit Account constitutes adirect obligation of the issuing depositoryinstitution and is not directly or indirectly anobligation of Merrill Lynch.

Since deposit insurance coverage is based on acustomer’s funds on deposit in any one depositoryinstitution, coverage can change if two or moreinstitutions where you have funds on depositmerge or consolidate. Please note that if yourdeposits at a depository institution are assumedby another depository institution (“acquirer”)pursuant to a merger or consolidation, suchdeposits will continue to be separately insuredfrom the deposits that you might have establishedwith the acquirer until the expiration of a six-month period from the date of the acquisition.մեereaer, any assumed deposits will beaggregated with your existing deposits with theacquirer held in the same ownership category forpurposes of federal deposit insurance. Anydeposit opened at the acquired institution aerthe acquisition will be aggregated with depositsestablished with the acquirer for purposes offederal deposit insurance.

Health Savings AccountAn HSA is insured based on ownership of thefunds and whether there are namedbeneficiaries. If a customer opens an HSA withnamed beneficiaries in the HSA AdoptionAgreement or in the Bank records, the FDICwould insure the deposit under the RevocableTrust account ownership category. If there areno named beneficiaries, the FDIC would insurethe deposits under the Individual Customeraccount ownership category.

մեe application of the Standard Maximum DepositInsurance Amount (SMDIA) is illustrated byseveral common situations discussed below. Foradditional information, including FDIC rulesrelated to retirement accounts, visit www.fdic.gov

Individual customer accountsAn individual account is an account owned by oneperson. Individual accounts include accounts

39

established for the benefit of the owner by agents,nominees, guardians, custodians, orconservators, and accounts established by abusiness that is a sole proprietorship. Allindividual accounts established by, or for thebenefit of, the same owner at an FDIC insuredinstitution are added together, and the total isinsured up to $250,000.

For example, funds in accounts held by acustodian under the Uniform Gis to Minors Actare not treated as owned by the custodian, butare added to other deposits of the minor held inan individual capacity and insured up to$250,000.

Joint accountsA joint account is an account owned by two ormore people. Each co-owner’s interest in jointaccounts at an FDIC insured institution is addedtogether and the total is temporarily insured up to$250,000 through December 31, 2013. Forexample, a joint account owned by two personswould be eligible for insurance coverage of up to$500,000 ($250,000 for each person), throughDecember 31, 2013, subject to aggregation witheach co-owner’s interests in other joint accountsat the same depository institution. Joint accountsare separately insured from the co-owner’sdeposits maintained in other ownershipcategories at the depository institution (e. g.individual accounts) if each co-owner: is anindividual person, has signed an accountagreement with Merrill Lynch and has an equalright of withdrawal from the account.

Revocable trust accountsA revocable trust is an account that indicates anintention that funds will belong to namedbeneficiaries upon the owner’s death and that canbe revoked or terminated at the discretion of theowner (frequently referred to as a “transfer ondeath” account). մեe FDIC’s insurance regulationsdistinguish between two types of revocabletrusts—formal trusts and informal trusts.

A formal revocable trust is established through awritten trust document or agreement. մեebeneficiaries must be a natural living personand/or a charity/non-profit organizationrecognized by the IRS. Because Merrill Lynchaccount records do not specifically name thebeneficiaries of a formal revocable trust, it isnecessary for the account title to indicate that theaccount is held by a formal revocable trust in

order for each named beneficiary to qualify forFDIC insurance.

An informal revocable trust is created if all of thefollowing conditions are met: 1) the account titlemust include commonly accepted terms such as“transfer on death,” “in trust for” or similarlanguage to indicate the existence of a trustrelationship (the terms may be abbreviated); 2)the beneficiaries must be identified by name inthe deposit account records for the bank; 3) thebeneficiaries must be a natural living personand/or a charity/non-profit organizationrecognized by the IRS.

FDIC coverage is determined by the number ofbeneficiaries named by an owner and the amountof the deposit. For revocable trust accounts wherethe owner has a balance of $1,250,000 or less atan FDIC-insured institution and has named five orfewer beneficiaries, rather than evaluate theproportional interest of each beneficiary, themaximum coverage is determined by multiplyingthe number of beneficiaries by $250,000. Forrevocable trust accounts where the owner hasmore than $1,250,000 and has named six ormore unique beneficiaries, each with an equalinterest in the trust, the calculation is the same asfor revocable trusts that name five or fewerbeneficiaries. մեe maximum insurance coverageis up to $1,500,000. For revocable trust accountswhere the owner has more than $1,250,000 atan FDIC-insured institution and has named morethan five beneficiaries in the revocable trust withunequal interests, the maximum coverage is thegreater of (i) $1,250,000 or (ii) the aggregateamount of all the beneficiaries’ proportionalinterests in the revocable trusts, limited to$250,000 per beneficiary.

Properly established revocable trust accountdeposits, whether formal or informal, areseparately insured from the owner’s depositsmaintained in other ownership categories at thedepository institution. However, a revocable trustaccount established by a husband and wife thatnames the husband and wife as sole beneficiarieswill be treated as a joint account and will beaggregated with other joint accounts subject tothe rules described above under “Joint Accounts.”A living trust is a formal revocable trust over whichthe owner retains ownership and control of theassets and designation of beneficiaries during hisor her lifetime. Living trusts are subject to special

40

rules, which you should review carefully in order todetermine the available FDIC deposit insurancecoverage.

Irrevocable trust accountsAn irrevocable trust is an account in which thegrantor gives up all power to the trust. մեeirrevocable trust may be created through anirrevocable trust document or agreement, statuteor court order, or could spring from a revocabletrust. մեe deposit account records of thedepository institution must disclose the existenceof the trust relationship. մեe interests of thebeneficiaries must be non-contingent (i. e.capable of determination without evaluation ofcontingencies) and ascertainable from the depositaccount records of the depository institution orfrom the records of the trustee maintained ingood faith and in the regular course of business.մեe value of each beneficiary’s interest must becapable of determination in accordance with FDICregulations. մեe trust must be valid under statelaw. Irrevocable trust accounts are separatelyinsured from the owner’s deposits maintained inother ownership categories at the depositoryinstitution (e. g. revocable trust accounts).

մեe interests of a beneficiary in all depositaccounts under an irrevocable trust establishedby the same grantor, at the same FDIC-insuredinstitution, are added together and insured up to$250,000. If the owner retains an interest in thetrust, that interest is added to the owner’s singleaccounts, if any, and that total is insured up to$250,000.

other employee Benefit Plans մեe contingent interests of employees in anEmployee Benefit Plan and overfunded amountsattributed to any Employee Benefit Plan are notinsured on a pass-through basis. Any interests ofan employee in an Employee Benefit Plan depositwhich are not capable of evaluation in accordancewith FDIC rules (i. e. contingent) will be aggregatedand insured up to the SMDIA per employeebenefit plan. Similarly, overfunded amounts areinsured up to the SMDIA per employee benefitplan separately from the insurance provided forany other funds owned by or attributable to theemployer or an Employee Benefit Plan participant.

Treatment of accounts upon death of ownerUnder certain circumstances, if you become theowner of deposits at a depository institution

because another depositor dies, beginning sixmonths aer the death of the depositor, the FDICwill aggregate those deposits for purposes of theSMDIA with any other deposits that you own in thesame ownership category at the depositoryinstitution. Accounts that may be subject to thisFDIC policy include joint accounts, “payable ondeath” accounts and certain trust accounts. Forexample, in the event of the death of one of twoco-owners of a joint account, beginning sixmonths aer the death of the depositor, all thefunds would be treated as individually held by thesurviving co-owner and would, therefore, beaggregated with all other individually owneddeposits of such survivor at the same depositoryinstitution for insurance purposes, unless someother action is taken. մեe FDIC provides the sixmonth “grace period” to permit you to restructureyour deposits to obtain the maximum amount ofdeposit insurance for which you are eligible.

Payments under adverse circumstances In the event that federal deposit insurancepayments become necessary, the FDIC is requiredto pay principal plus unpaid and accrued interestup to the date of the closing of the relevantdepository institution as prescribed by law andapplicable regulations. Since there is no specifictime period during which the FDIC must makeavailable such insurance payments, you should beprepared for the possibility of an indeterminatedelay in obtaining insurance payments. Inaddition, you may be required to provide certaindocumentation to the FDIC and to Merrill Lynchbefore any insurance payments are released toyou. For example, if a deposit account is held byyou as trustee for the benefit of trust participants,you may be required to furnish an affidavit to thateffect; you may be required to furnish otheraffidavits and indemnities regarding the insurancepayments.

Additional information from the FDIC If you have questions about FDIC insurancecoverage, you may obtain information bycontacting the FDIC, by letter, FDIC, Attn: DepositInsurance Outreach, 550 17th Street, N. W. ,Washington, D. C. 20429; by phone, 1-877-ASK -FDIC (1-877-275-3342) or 1-800-925-4618(hearing impaired); or by visiting the FDIC Web siteat www.fdic.gov �

Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorpo-rated (“MLPF&S”) and other affiliates of Bank of America Corporation (“BofA”). MLPF&S is a regis-tered broker-dealer, memberSIPC and a wholly owned subsidiary of BofA.

Banking products are provided by Bank of America, N.A. and affiliated banks, members FDIC and wholly owned subsidiaries ofBofA.

Investment products:

Unless otherwise noted, all trademarks and registered trademarks are property of Bank of America Corporation.

Visa is a registered trademark of Visa International Service Association and is used by the issuer pursuant to licensefrom Visa U.S.A. Inc.

Neither Bank of America nor any of its affiliates provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

©2015 Bank of America Corporation. All rights reserved.

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

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