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EXHIBIT 8(a)
PLACEMENT AGENT AGREEMENT
AGREEMENT made as of the ______ day of ____________ 1998, between MERCURY
ASSET MANAGEMENT MASTER TRUST, a Delaware business trust (the "Trust"), on
behalf of itself and each of its series listed on Exhibit A (each, a
"Portfolio") and MERCURY FUNDS DISTRIBUTOR, a division of PRINCETON FUNDS
DISTRIBUTOR, INC., a Delaware corporation (the "Placement Agent").
W I T N E S S E T H :
WHEREAS, the Trust has filed a registration statement (the "Registration
Statement") pursuant to Section 8(b) of the Investment Company Act of 1940, as
amended (the "Investment Company Act"); and
WHEREAS, the Trustees (the "Trustees") are authorized to establish
separate series relating to separate portfolios of securities, each of which may
offer beneficial interests in its specific series of the Trust; and
WHEREAS, the Trustees have established and designated the Portfolios as
series of the Trust, and authorized them to offer shares of beneficial interests
(the "Shares"); and
WHEREAS, the Trust and the Placement Agent wish to enter into an
agreement with each other with respect to the distribution of Shares (the
"Agreement").
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NOW, THEREFORE, the parties agree as follows:
Section 1. Appointment of the Placement Agent; Private Offering.
(a) The Trust hereby appoints the Placement Agent as placement agent
in connection with the distribution of the Shares.
(b) The Placement Agent understands that: (i) The Shares are not being
registered under the Securities Act of 1933, as amended (the "Securities Act");
(ii) Such Shares are to be issued solely in private placement transactions that
do not involve any "public offering" within the meaning of Section 4(2) of the
Securities Act; (iii) Investments in the Portfolios may be made only by a
limited number of institutional investors, including investment companies,
common or commingled trust funds, group trusts and certain other "accredited
investors" within the meaning of Regulation D under the Securities Act; (iv) The
Registration Statement is not intended to constitute an offer to sell, or the
solicitation of an offer to buy, the Shares.
(c) In carrying out its duties hereunder, the Placement Agent agrees
that it will act in a manner consistent with the foregoing and, unless otherwise
instructed by the Trust in writing, will not take any actions that would cause
the Trust to make a "public offering" within the meaning of Section 4(2) of the
Securities Act.
Section 2. Exclusive Nature of Duties. The Placement Agent shall be the
exclusive representative of the Portfolios to act as placement agent in respect
of the distribution of the Shares, except that:
(a) The Trust may, with respect to any Portfolio, upon written notice to
the Placement Agent, from time to time designate other placement agents with
respect to areas other than the United States as to which the Placement Agent
may have expressly waived in writing its right to
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act as such. If such designation is deemed exclusive, the right of the Placement
Agent under this Agreement in respect of such areas so designated shall
terminate, but this Agreement shall remain otherwise in full effect until
terminated in accordance with the other provisions hereof.
(b) The exclusive right granted to the Placement Agent hereunder shall
not apply to Shares issued in connection with the merger or consolidation of any
other investment company or personal holding company with a Portfolio or the
acquisition by purchase or otherwise of all (or substantially all) the assets or
the outstanding shares of any such company by a Portfolio.
(c) Such exclusive right also shall not apply to Shares issued by a
Portfolio pursuant to reinvestment of dividends or capital gains distributions.
(d) Such exclusive right also shall not apply to Shares issued by a
Portfolio pursuant to any conversion, exchange or reinstatement privilege
afforded redeeming shareholders or to any other Shares as shall be agreed
between the Trust and the Placement Agent from time to time.
Section 3. Duties of the Trust.
(a) The Trust shall furnish to the Placement Agent copies of all
information, financial statements and other papers that the Placement Agent may
reasonably request for use in connection with its duties hereunder, and this
shall include, upon request by the Placement Agent, one certified copy of all
financial statements prepared for the Trust by independent public accountants.
(b) Consistent with Section 1 hereof, the Trust shall use its best
efforts to qualify and maintain the qualification of the Shares for sale under
the securities laws of such jurisdictions as the Placement Agent and the Trust
may approve. Any such qualification may be withheld, terminated or withdrawn by
the Trust at any time in its discretion. The expense of qualification
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and maintenance of qualification shall be borne by the Trust. The Placement
Agent shall furnish such information and other material relating to its affairs
and activities as may be required by the Trust in connection with such
qualification.
(c) The Trust will furnish, in reasonable quantities upon request by the
Placement Agent, copies of annual and interim reports of the Portfolios.
Section 4. Duties of the Placement Agent.
(a) The Placement Agent shall devote reasonable time and effort to its
duties hereunder. The services of the Placement Agent to the Trust hereunder are
not to be deemed exclusive and nothing herein contained shall prevent the
Placement Agent from entering into like arrangements with other investment
companies so long as the performance of its obligations hereunder is not
impaired thereby.
(b) In performing its duties hereunder, the Placement Agent shall use its
best efforts in all respects duly to conform with the requirements of all
applicable laws relating to the sale of securities. Neither the Placement Agent
nor any other person is authorized by the Trust to give any information or to
make any representations, other than those contained in the Trust's registration
statement or any sales literature specifically approved by the Trust.
Section 5. Payment of Expenses.
(a) The Trust shall bear all costs and expenses of the Portfolios,
including fees and disbursements of its counsel and auditors, in connection with
the preparation and filing of any required registration statements under the
Investment Company Act, and all amendments and supplements thereto, and
preparing and mailing annual and interim reports and proxy materials to
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shareholders (including but not limited to the expense of setting in type any
such registration statements, or interim reports or proxy materials).
(b) The Trust shall bear any cost and expenses of qualification of the
Shares for sale pursuant to this Agreement and, if necessary or advisable in
connection therewith, of qualifying the Trust as a broker or dealer in such
states of the United States or other jurisdictions as shall be selected by the
Trust and the Placement Agent pursuant to Section 3 hereof and the cost and
expenses payable to each such state for continuing qualification therein until
the Trust decides to discontinue such qualification pursuant to Section 3
hereof.
Section 6. Indemnification.
(a) Each Portfolio, severally and not jointly, shall indemnify and hold
harmless the Placement Agent and each person, if any, who controls the Placement
Agent against any loss, liability, claim, damage or expense (including the
reasonable cost of investigating or defending any alleged loss, liability,
claim, damage or expense and reasonable counsel fees incurred in connection
therewith), as incurred, arising by reason of any person acquiring any Shares of
the respective Portfolio, which may be based upon the Securities Act, or on any
other statute or at common law, on the ground that any registration statement or
other offering materials, as from time to time amended and supplemented, or an
annual or interim report to the shareholders of such Portfolio, includes an
untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary in order to make the statements therein not
misleading, unless such statement or omission was made in reliance upon, and in
conformity with, information furnished to the Trust in connection therewith by
or on behalf of the Placement Agent; provided, however, that in no case (i) is
the indemnity of a Portfolio in favor of the
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Placement Agent and any such controlling persons to be deemed to protect such
Placement Agent or any such controlling persons thereof against any liability to
such Portfolio or its shareholders to which the Placement Agent or any such
controlling persons would otherwise be subject by reason of willful misfeasance,
bad faith or gross negligence in the performance of their duties or by reason of
the reckless disregard of their obligations and duties under this Agreement; or
(ii) is a Portfolio to be liable under its indemnity agreement contained in this
paragraph with respect to any claim made against the Placement Agent or any such
controlling persons, unless the Placement Agent or such controlling persons, as
the case may be, shall have notified such Portfolio in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon the Placement
Agent or such controlling persons (or after the Placement Agent or such
controlling persons shall have received notice of such service on any designated
agent), but failure to notify such Portfolio of any such claim shall not relieve
it from any liability that it may have to the person against whom such action is
brought otherwise than on account of its indemnity agreement contained in this
paragraph. Each Portfolio will be entitled to participate at its own expense in
the defense or, if it so elects, to assume the defense of any suit brought to
enforce any such liability, but if a Portfolio elects to assume the defense,
such defense shall be conducted by counsel chosen by it and satisfactory to the
Placement Agent or such controlling person or persons, defendant or defendants
in the suit. In the event a Portfolio elects to assume the defense of any such
suit and retain such counsel, the Placement Agent or such controlling person or
persons, defendant or defendants in the suit shall bear the fees and expenses,
as incurred, of any additional counsel retained by them, but in case a Portfolio
does not elect to assume the defense of any such suit,
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such Portfolio will reimburse the Placement Agent or such controlling person or
persons, defendant or defendants in the suit, for the reasonable fees and
expenses, as incurred, of any counsel retained by them. Each Portfolio shall
promptly notify the Placement Agent of the commencement of any litigation or
proceedings against it or any of the Trust's officers or Directors in connection
with the issuance or sale of any of the Shares of such Portfolio.
(b) The Placement Agent shall indemnify and hold harmless the Trust, each
Portfolio and each of the Trust's Trustees and officers and each person, if any,
who controls the Trust or a Portfolio against any loss, liability, claim, damage
or expense, as incurred, described in the foregoing indemnity contained in
subsection (a) of this Section, but only with respect to statements or omissions
made in reliance upon, and in conformity with, information furnished to the
Trust or such Portfolio in writing by or on behalf of the Placement Agent for
use in connection with its registration statement or related prospectus and
statement of additional information, as from time to time amended, or the annual
or interim reports to shareholders. In case any action shall be brought against
the Trust or any person so indemnified, in respect of which indemnity may be
sought against the Placement Agent, the Placement Agent shall have the rights
and duties given to the Trust, and the Trust and each person so indemnified
shall have the rights and duties given to the Placement Agent by the provisions
of subsection (a) of this Section 6.
Section 7. Duration and Termination of this Agreement. This Agreement
shall become effective as of the date first above written and shall remain in
force for two years thereafter and thereafter, but only for so long as such
continuance is specifically approved at least annually by (i) the Trustees or by
the vote of a majority of the outstanding voting securities of the Trust and
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(ii) by the vote of a majority of those Trustees who are not parties to this
Agreement or interested persons of any such party cast in person at a meeting
called for the purpose of voting on such approval.
This Agreement may be terminated at any time, without the payment of any
penalty, by the Trustees or by vote of a majority of the outstanding voting
securities of the Trust, or by the Placement Agent, on sixty days' written
notice to the other party. This Agreement shall automatically terminate in the
event of its assignment.
The terms "vote of a majority of the outstanding voting securities",
"assignment", "affiliated person" and "interested person", when used in this
Agreement, shall have the respective meanings specified in the Investment
Company Act.
Section 8. Amendments of this Agreement. This Agreement may be amended by
the parties only if such amendment is specifically approved by (i) the Trustees
or by the vote of a majority of outstanding voting securities of the Trust and
(ii) by the vote of a majority of those Trustees who are not parties to this
Agreement or interested persons of any such party cast in person at a meeting
called for the purpose of voting on such approval.
Section 9. Governing Law. The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of New York
as at the time in effect and the applicable provisions of the Investment Company
Act. To the extent that the applicable law of the State of New York, or any of
the provisions herein, conflict with the applicable provisions of the Investment
Company Act, the latter shall control.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.
MERCURY ASSET MANAGEMENT MASTER TRUST
By
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Title:
MERCURY FUNDS DISTRIBUTOR, a division of
PRINCETON FUNDS DISTRIBUTOR, INC.
By
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Title:
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Exhibit A
Individual Series of MERCURY ASSET MANAGEMENT MASTER TRUST
MERCURY MASTER CORE U.S. GROWTH PORTFOLIO
MERCURY MASTER EMERGING ECONOMIES PORTFOLIO
MERCURY MASTER GOLD AND MINING PORTFOLIO
MERCURY MASTER JAPAN CAPITAL PORTFOLIO
MERCURY MASTER INTERNATIONAL PORTFOLIO
MERCURY MASTER PAN-EUROPEAN GROWTH PORTFOLIO
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