Exhibit 13
FORM OF CLASS A ACCOUNT MAINTENANCE PLAN OF
MERCURY INDEX FUNDS, INC.
PURSUANT TO RULE 12b-1
ACCOUNT MAINTENANCE PLAN made as of the_______ day of ______________, by and
between Mercury Index Funds, Inc., a Maryland corporation (the "Corporation"),
on behalf of each of its series listed on Appendix A hereto, as it may be
amended from time to time (each, a "Fund," and together, the "Funds"), and
Mercury Funds Distributor, a division of Princeton Funds Distributor, Inc., a
Delaware corporation (the "Distributor").
WITNESSETH:
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WHEREAS, the Corporation intends to engage in business as an open-end
investment company registered under the Investment Company Act of 1940, as
amended (the "Investment Company Act"); and
WHEREAS, the Directors of the Corporation (the "Directors") are authorized
to establish separate series relating to separate portfolios of securities, each
of which may offer separate classes of shares; and
WHEREAS, the Directors have established each Fund as a series of the
Corporation; and
WHEREAS, the Distributor is a securities firm engaged in the business of
selling shares of investment companies either directly to purchasers or through
other securities dealers; and
WHEREAS, the Corporation on behalf of each Fund proposes to enter into a
Class A Shares Distribution Agreement with the Distributor, pursuant to which
the Distributor will act as the exclusive distributor and representative of each
Fund in the offer and sale of Class A shares of common stock, par value $0.0001
per share (the "Class A Shares"), of each Fund to the public; and
WHEREAS, the Corporation on behalf of each Fund desires to adopt this Class
A Account Maintenance Plan (the "Plan")pursuant to Rule 12b-1 under the
Investment Company Act pursuant to which the Corporation on behalf of each Fund
will pay an account maintenance fee to the Distributor with respect to such
Fund's Class A Shares; and
WHEREAS, the Directors of the Corporation have determined that there is a
reasonable likelihood that adoption of the Plan will benefit each Fund and its
Class A shareholders.
NOW, THEREFORE, the Corporation on behalf of each Fund hereby adopts, and
the Distributor hereby agrees to the terms of, the Plan in accordance with Rule
12b-1 under the Investment Company Act on the following terms and conditions:
1. The Corporation shall pay the Distributor with respect to each Fund's
Class A Shares an account maintenance fee under the Plan at the end of each
month at the annual rate of 0.25%of average daily net assets of such Fund
relating to the Class A Shares of such Fund to compensate the Distributor and
securities firms with which the Distributor enters into related agreements
pursuant to Paragraph 2 hereof ("Sub-Agreements") for providing account
maintenance activities with respect to Class A shareholders of such Fund.
Expenditures under the Plan may consist of payments to financial consultants for
maintaining accounts in connection with Class A Shares and payment of expenses
incurred in connection with such account maintenance activities including the
costs of making services available to Class A shareholders, including assistance
in connection with inquiries related to shareholder accounts.
2. The Corporation hereby authorizes the Distributor to enter into Sub-
Agreements with certain securities firms ("Securities Firms"), including
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, to provide compensation to
such Securities Firms for activities and services of the type referred to in
Paragraph 1 hereof. The Distributor may reallocate all or a portion of its
account maintenance fee to such Securities Firms as compensation for the
above-mentioned activities and services. Each such Sub-Agreement shall provide
that the Securities Firms shall provide the Distributor with such information as
is reasonably necessary to permit the Distributor to comply with the reporting
requirements set forth in Paragraph 3 hereof.
3. The Distributor shall provide the Corporation for review by the Board of
Directors, and the Directors shall review at least quarterly, a written report
complying with the requirements of Rule 12b-1 under the Investment Company Act
regarding the disbursement of the account maintenance fee during such period.
4. This Plan shall not take effect until it has been approved, together
with any related agreements, by votes of a majority of both (a) the Directors
and (b) those Directors who are not "interested persons" of the Corporation, as
defined in the Investment Company Act, and have no direct or indirect financial
interest in the operation of this Plan or any agreements related to it (the
"Rule 12b-1 Directors"), cast in person at a meeting or meetings called for the
purpose of voting on the Plan and such related agreements.
5. The Plan shall continue in effect for so long as such continuance is
specifically approved at least annually in the manner provided for approval of
the Plan in Paragraph 4.
6. The Plan may be terminated with respect to any or all of the Funds at
any time by vote of a majority of the Rule 12b-1 Directors, or by vote of a
majority of the outstanding Class A voting securities of the appropriate Fund or
Funds.
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7. The Plan may not be amended to increase materially the rate of payments
provided for in Paragraph 1 hereof unless such amendment is approved by at least
a majority, as defined in the Investment Company Act, of the outstanding Class A
voting securities of the Fund or Funds with respect to which the Plan is being
amended, and by the Directors in the manner provided for in Paragraph 4 hereof,
and no material amendment to the Plan shall be made unless approved in the
manner provided for approval and annual renewal in Paragraph 4 hereof.
8. While the Plan is in effect, the selection and nomination of Directors
who are not interested persons, as defined in the Investment Company Act, of the
Corporation shall be committed to the discretion of the Directors who are not
interested persons.
9. The Corporation shall preserve copies of the Plan and any related
agreements and all reports made pursuant to Paragraph 3 hereof, for a period of
not less than six years from the date of the Plan, or the date of such agreement
or report, as the case may be, the first two years in an easily accessible
place.
10. The provisions of the Plan are severable for each Fund and whenever Rule
12b-1 under the Investment Company Act provides for action to be taken with
respect to the Plan, such action shall be taken separately for each Fund
affected hereby.
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IN WITNESS WHEREOF, the parties hereto have executed this Plan as of the
date first above written. This Agreement may be executed by the parties hereto
on any number of counterparts, all of which shall constitute one and the same
instrument.
MERCURY INDEX FUNDS, INC.
on behalf of each Fund
BY
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Name:
Title:
MERCURY FUNDS DISTRIBUTOR, a division of
PRINCETON FUNDS DISTRIBUTOR, INC.
BY
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Name:
Title:
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APPENDIX A
NAME OF FUND
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Mercury S&P 500 Index Fund
Mercury Small Cap Index Fund
Mercury Aggregate Bond Index Fund
Mercury International Index Fund
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FORM OF CLASS A SHARES ACCOUNT MAINTENANCE PLAN SUB-AGREEMENT
AGREEMENT made as of the day ___ of ______________, by and between Mercury
Funds Distributor, a division of Princeton & Funds Distributor, Inc., a Delaware
corporation (the "Distributor"), and Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated, a Delaware corporation ("Securities Firm").
WITNESSETH:
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WHEREAS, the Distributor has entered into an agreement with Mercury Index
Funds, Inc., a Maryland corporation (the "Corporation"), on behalf of each of
its series listed in such Agreement (each, a "Fund," and together the "Funds"),
pursuant to which it acts as the exclusive distributor for the sale of Class A
shares of common stock, par value $0.0001 per share (the "Class A Shares") of
each Fund; and
WHEREAS, the Distributor and the Corporation have entered into a Class A
Shares Account Maintenance Plan (the "Plan") pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended (the "Act"), pursuant to which the
Distributor receives an account maintenance fee from the Corporation, on behalf
of each Fund, at the annual rate of 0.25% of average daily net assets of each
such Fund relating to such Fund's Class A Shares for providing account
maintenance activities and services with respect to such Class A Shares; and
WHEREAS, the Distributor desires the Securities Firm to perform certain
account maintenance activities and services, including assistance in connection
with inquiries related to shareholder accounts, for each Fund's Class A
shareholders and the Securities Firm is willing to perform such services;
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereby agree as follows:
1. The Securities Firm shall provide account maintenance activities and
services with respect to the Class A Shares of each Fund and incur expenditures
in connection with such activities and services, of the types referred to in
Paragraph 1 of the Plan.
2. As compensation for its services performed under this Agreement, the
Distributor shall pay the Securities Firm a fee at the end of each calendar
month in an amount agreed upon by the parties hereto.
3. The Securities Firm shall provide the Distributor, at least quarterly,
such information as reasonably requested by the Distributor to enable the
Distributor to comply with
the reporting requirements of Rule 12b-1 under the Act regarding the
disbursement of the fee during such period referred to in Paragraph 3 of the
Plan.
4. This Agreement shall not take effect until it has been approved by votes
of a majority of both (a)the Board of Directors of the Corporation (the
"Directors")and (b) those Directors who are not "interested persons" of the
Corporation, as defined in the Act, and have no direct or indirect financial
interest in the operation of the Plan, this Agreement or any agreements related
to the Plan or this Agreement, cast in person at a meeting or meetings called
for the purpose of voting on this Agreement.
5. This Agreement shall continue in effect for as long as such continuance
is specifically approved at least annually in the manner provided for approval
of the Plan in Paragraph 4.
6. This Agreement shall automatically terminate in the event of its
assignment or in the event of the termination of the Plan or any amendment to
the Plan that requires such termination.
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IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written. This Agreement may be executed by
the parties hereto on any number of counterparts, all of which shall constitute
one and the same instrument.
MERCURY FUNDS DISTRIBUTOR, a division of PRINCETON
FUNDS DISTRIBUTOR, INC.
BY
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Name:
Title:
XXXXXXX LYNCH, XXXXXX, XXXXXX & XXXXX INCORPORATED
BY
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Name:
Title:
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