EXHIBIT 13(c)
FORM OF AMENDED AND RESTATED
CLASS D DISTRIBUTION PLAN
PURSUANT TO RULE 12b-1
DISTRIBUTION PLAN made as of the day of , 2000, by and between each of the
Funds listed on Exhibit A, as such Exhibit may be amended from time to time
(each a "Fund," and collectively, the "Funds"), severally and not jointly, and
FAM Distributors, Inc., a Delaware corporation (the "Distributor").
W I T N E S S E T H:
WHEREAS, each Fund 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 or Trustees (referenced to herein as the
"Directors") of certain Funds are authorized to establish separate series
relating to separate portfolios of securities, and the Directors have
established and designated multiple series of certain Funds; and
WHEREAS, the Distributor is a securities firm engaged in the business of
selling shares of investment companies either directly to purchasers or through
financial intermediaries, including without limitation, brokers, dealers,
retirement plans, financial consultants, registered investment advisers and
mutual fund supermarkets ("financial intermediaries"); and
WHEREAS, each Fund proposes to enter into an Amended and Restated
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 shares of common stock or beneficial interest, par value $0.10
per share of each Fund, including the Class D shares (the "Class D Shares") of
each Fund, to the public; and
WHEREAS, each Fund desires to adopt this Amended and Restated Class D
Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Investment
Company Act pursuant to which each Fund will pay an account maintenance fee to
the Distributor with respect to the Fund's Class D Shares; and
WHEREAS, the Directors of each Fund have determined that there is a
reasonable likelihood that adoption of the Plan will benefit each Fund and its
Class D shareholders.
NOW, THEREFORE, 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 Fund shall pay the Distributor with respect to the Class D
Shares of each Fund an account maintenance fee under the Plan at the end of each
month at the annual rate of average daily net assets of such Fund specified in
Exhibit B, to compensate the Distributor for providing, or arranging for the
provision of, account maintenance activities with respect to Class
<PAGE>
D shareholders of the Fund. Expenditures under the Plan may consist of payments
to financial intermediaries for maintaining accounts in connection with Class D
Shares and payment of expenses incurred in connection with such account
maintenance activities including the costs of making services available to
shareholders including assistance in connection with inquiries related to
shareholder accounts.
2. The Distributor shall provide the Fund 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 regarding the disbursement of the
account maintenance fee during such period.
3. This Plan shall not take effect with respect to a Fund until it has
been approved by votes of a majority of both (a) the Directors of the Fund and
(b) those Directors of the Fund who are not "interested persons" of the Fund, 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.
4. 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 3.
5. The Plan may be terminated at any time with respect to any Fund by vote
of a majority of the Rule 12b-1 Directors, or by vote of a majority of the
outstanding Class D voting securities of the applicable Fund.
6. The Plan may not be amended to increase materially the rate of payments
provided for in Paragraph 1 hereof with respect to any Fund unless such
amendment is approved by at least a majority, as defined in the Investment
Company Act, of the outstanding Class D voting securities of the applicable
Fund, and by the Directors of the Fund in the manner provided for in Paragraph 3
hereof, and no material amendment to the Plan shall be made unless approved in
the manner provided for approval and annual renewal in Paragraph 3 hereof.
7. While the Plan is in effect with respect to any Fund, the selection and
nomination of Directors who are not interested persons, as defined in the
Investment Company Act, of the Fund shall be committed to the discretion of the
Directors who are not interested persons.
8. The Fund shall preserve copies of the Plan and any related agreements
and all reports made pursuant to Paragraph 2 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.
9. The Declaration of Trust establishing each Fund that is organized as a
Massachusetts business trust together with all amendments thereto (the
"Declaration"), which is on file in the office of the Secretary of the
Commonwealth of Massachusetts, provides that the name of the Fund refers to the
Trustees under the Declaration collectively as Trustees, but not as individuals
or personally; and no Trustee, shareholder, officer, employee or agent of a Fund
shall be held to any personal liability, nor shall resort be had to their
private property for the satisfaction of any obligation or claim or otherwise in
connection with the affairs of a Fund, but the trust property only shall be
liable.
2
<PAGE>
IN WITNESS WHEREOF, the parties hereto have executed this Plan as of the
date first above written.
EACH OF THE INVESTMENT COMPANIES LISTED ON
EXHIBIT A ATTACHED HERETO
By:________________________________________
Title:
FAM DISTRIBUTORS, INC.
By:________________________________________
Title:
3
<PAGE>
Exhibit A
Merrill Lynch Short Term U.S. Government Fund, Inc.
Merrill Lynch Mid Cap Value Fund of The Asset Program, Inc.
Mercury Growth Opportunity Fund of The Asset Program, Inc.
Mercury U.S. Government Securities Fund of The Asset Program, Inc.
Merrill Lynch U.S. Government Mortgage Fund
Merrill Lynch Fundamental Growth Fund, Inc.
Merrill Lynch Focus Value Fund, Inc.
Merrill Lynch Real Estate Fund, Inc.
Summit Cash Reserves Fund of Financial Institution Series Trust
Merrill Lynch Retirement Reserves Money Fund of Merrill Lynch Retirement Series
Trust
A-1
<PAGE>
Exhibit B
Class D Distribution Fees
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Account
Name of Fund Maintenance Fee Distribution Fee
----------------------------------------------------------------------------------------------
<S> <C> <C>
Merrill Lynch Short Term U.S. Government Fund, Inc. 0.10% none
----------------------------------------------------------------------------------------------
Merrill Lynch U.S. Government Mortgage Fund 0.25% none
----------------------------------------------------------------------------------------------
Merrill Lynch Fundamental Growth Fund, Inc. 0.25% none
----------------------------------------------------------------------------------------------
Merrill Lynch Focus Value Fund, Inc. 0.25% none
----------------------------------------------------------------------------------------------
Merrill Lynch Real Estate Fund, Inc. 0.25% none
----------------------------------------------------------------------------------------------
Merrill Lynch Mid Cap Value Fund 0.25% none
of The Asset Program, Inc.
----------------------------------------------------------------------------------------------
Mercury Growth Opportunity Fund 0.25% 0.75%
of The Asset Program, Inc.
----------------------------------------------------------------------------------------------
Mercury U.S. Government Securities Fund 0.25% 0.55%
of The Asset Program, Inc.
----------------------------------------------------------------------------------------------
</TABLE>
B-1
