Document:

Exhibit 4(c)

                        INVESTMENT SUB-ADVISORY AGREEMENT
                               ALPHA SELECT FUNDS

      AGREEMENT made this __ day of ________,  2000, by and between Concentrated
Capital  Management,  LP (the "Adviser") and Fund Asset  Management,  L.P. doing
business as Mercury Advisors ("Mercury Advisors") (the "Sub-Adviser").

      WHEREAS,  Alpha Select Funds,  a Delaware  business trust (the "Trust") is
registered as an open-end  management  investment  company under the  Investment
Company Act of 1940, as amended (the "1940 Act"); and

      WHEREAS,  the Adviser has entered into an  Investment  Advisory  Agreement
dated _________ __, 2000 (the "Advisory  Agreement") with the Trust, pursuant to
which the Adviser will act as investment adviser to each series of the Trust set
forth on Schedule A (each a "Fund" and, together, the "Funds"); and

      WHEREAS,  the Adviser,  with the approval of the Trust,  desires to retain
the  Sub-Adviser  to provide  investment  advisory  services  to the  Adviser in
connection  with its management of the Funds,  and the Sub-Adviser is willing to
render such investment advisory services.

      NOW, THEREFORE, the parties hereto agree as follows:

1.    Duties of the  Sub-Adviser.  Subject to supervision by the Adviser and the
      Trust's  Board  of  Trustees,  the  Sub-Adviser  shall  manage  all of the
      securities  and other  assets of the Fund  entrusted  to it by the Adviser
      hereunder   (the   "Assets"),   including  the  purchase,   retention  and
      disposition  of the Assets,  in  accordance  with each  Fund's  investment
      objectives,  policies and restrictions as stated in the Fund's  prospectus
      and  statement of  additional  information,  as currently in effect and as
      amended or supplemented from time to time (referred to collectively as the
      "Prospectus"), and subject to the following:

      (a)   The  Sub-Adviser  shall,  subject to the  direction  of the Adviser,
            determine from time to time what Assets will be purchased,  retained
            or sold by the Fund, and what portion of the Assets will be invested
            or held uninvested in cash.

      (b)   In  the  performance  of  its  duties  and  obligations  under  this
            Agreement,  the Sub-Adviser shall act in conformity with the Trust's
            Declaration of Trust (as defined herein) and the Prospectus and with
            the  instructions  and directions of the Adviser and of the Board of
            Trustees  of the  Trust  and will  conform  to and  comply  with the
            requirements of the 1940 Act, the Internal Revenue Code of 1986, and
            all other applicable federal and state laws and regulations, as each
            is amended from time to time.

      (c)   The  Sub-Adviser  shall determine the Assets to be purchased or sold
            by the Fund as provided in  subparagraph  (a) and will place  orders
            with or through  such  persons,  brokers or dealers to carry out the
            policy with respect to brokerage set forth in each Fund's Prospectus
            or as the Board of  Trustees  or the Adviser may direct from time to
            time, in conformity with federal  securities laws. In executing Fund
            transactions and selecting brokers or dealers,  the Sub-Adviser will
            use its best efforts to seek on behalf of each Fund the best overall
            terms  available.  In assessing the best overall terms available for
            any transaction,  the Sub-Adviser shall consider all factors that it
            deems relevant, including the breadth of the market in the security,
            the price of the  security,  the  financial  condition and execution
            capability of the broker or dealer,  and the  reasonableness  of the
            commission,  if any,  both  for the  specific  transaction  and on a
            continuing basis.

<PAGE>

            In evaluating the best overall terms available, and in selecting the
            broker-dealer to execute a particular  transaction,  the Sub-Adviser
            may also consider the brokerage and research  services  provided (as
            those terms are defined in Section 28(e) of the Securities  Exchange
            Act of 1934).  Consistent  with any  guidelines  established  by the
            Board of Trustees of the Trust,  the  Sub-Adviser  is  authorized to
            negotiate and pay to a broker or dealer who provides such  brokerage
            and research services a commission for executing a transaction for a
            Fund which is in excess of the amount of commission  another  broker
            or dealer would have charged for effecting that  transaction if, but
            only  if,  the  Sub-Adviser  determines  in  good  faith  that  such
            commission  was reasonable in relation to the value of the brokerage
            and research  services  provided by such broker or dealer  viewed in
            terms of that  particular  transaction  or in  terms of the  overall
            responsibilities  of the  Sub-Adviser to the Fund. In addition,  the
            Sub-Adviser  is authorized to allocate  purchase and sale orders for
            securities to brokers or dealers (including brokers and dealers that
            are  affiliated  with  the  Adviser,   Sub-Adviser  or  the  Trust's
            principal  underwriter)  to take into  account the sale of shares of
            the  Fund  if the  Sub-Adviser  believes  that  the  quality  of the
            transaction  and the commission are comparable to what they would be
            with other qualified firms. In no instance,  however,  will a Fund's
            Assets be purchased  from or sold to the Adviser,  Sub-Adviser,  the
            Trust's  principal  underwriter,  or any affiliated person of either
            the Trust,  Adviser,  the Sub-Adviser or the principal  underwriter,
            acting  as  principal  in the  transaction,  except  to  the  extent
            permitted by the Securities and Exchange  Commission ("SEC") and the
            1940 Act.

      (d)   The Sub-Adviser shall maintain all books and records with respect to
            transactions  involving the Assets required by subparagraphs (b)(5),
            (6),  (7),  (9), (10) and (11) and paragraph (f) of Rule 31a-1 under
            the 1940 Act. The  Sub-Adviser  shall  provide to the Adviser or the
            Board of Trustees such periodic and special reports,  balance sheets
            or financial information,  and such other information with regard to
            its  affairs as the  Adviser  or Board of  Trustees  may  reasonably
            request.

            The  Sub-Adviser  shall keep the books and  records  relating to the
            Assets  required  to be  maintained  by the  Sub-Adviser  under this
            Agreement  and shall timely  furnish to the Adviser all  information
            relating to the  Sub-Adviser's  services under this Agreement needed
            by the  Adviser  to keep  the  other  books  and  records  of a Fund
            required by Rule 31a-1  under the 1940 Act.  The  Sub-Adviser  shall
            also  furnish to the Adviser any other  information  relating to the
            Assets that is required to be filed by the Adviser or the Trust with
            the SEC or sent to  shareholders  under the 1940 Act  (including the
            rules adopted  thereunder) or any exemptive or other relief that the
            Adviser or the Trust  obtains from the SEC. The  Sub-Adviser  agrees
            that all records  that it maintains on behalf of a Fund are property
            of the Fund and the Sub-Adviser will surrender  promptly to the Fund
            any of such records upon the Fund's request; provided, however, that
            the Sub-Adviser may retain a copy of such records. In addition,  for
            the duration of this Agreement,  the Sub-Adviser  shall preserve for
            the  periods  prescribed  by Rule 31a-2  under the 1940 Act any such
            records as are  required  to be  maintained  by it  pursuant to this
            Agreement,   and  shall  transfer  said  records  to  any  successor
            sub-adviser  upon the termination of this Agreement (or, if there is
            no successor sub-adviser, to the Adviser).

      (e)   The Sub-Adviser shall provide each Fund's custodian on each business
            day with  information  relating to all  transactions  concerning the
            Fund's  Assets and shall  provide the Adviser with such  information
            upon request of the Adviser.

                                       2
<PAGE>

      (f)   The investment management services provided by the Sub-Adviser under
            this  Agreement are not to be deemed  exclusive and the  Sub-Adviser
            shall be free to render similar services to others,  as long as such
            services do not impair the  services  rendered to the Adviser or the
            Trust.

      (g)   The  Sub-Adviser  shall promptly notify the Adviser of any financial
            condition  that is likely to impair  the  Sub-Adviser's  ability  to
            fulfill its commitment under this Agreement.

      (h)   The Sub-Adviser shall review all proxy solicitation materials and be
            responsible  for voting and  handling all proxies in relation to the
            Assets.  The Adviser shall  instruct the custodian and other parties
            providing  services to the Fund to promptly  forward  proxies to the
            Sub-Adviser.

      Services to be furnished by the  Sub-Adviser  under this  Agreement may be
      furnished  through  the  medium  of  any of  the  Sub-Adviser's  partners,
      officers or employees.

2.    Duties of the Adviser.  The Adviser shall continue to have  responsibility
      for all  services  to be provided  to each Fund  pursuant to the  Advisory
      Agreement and shall oversee and review the  Sub-Adviser's  performance  of
      its duties under this  Agreement;  provided,  however,  that in connection
      with its  management of the Assets,  nothing  herein shall be construed to
      relieve the Sub-Adviser of responsibility  for compliance with the Trust's
      Declaration of Trust (as defined herein), the Prospectus, the instructions
      and directions of the Board of Trustees of the Trust,  the requirements of
      the 1940 Act, the Internal  Revenue Code of 1986, and all other applicable
      federal and state laws and  regulations,  as each is amended  from time to
      time.

3.    Delivery of  Documents.  The Adviser has furnished  the  Sub-Adviser  with
      copies of each of the following documents:

      (a)   The Trust's  Agreement and  Declaration of Trust,  as filed with the
            Secretary  of State of the State of  Delaware  (such  Agreement  and
            Declaration of Trust, as in effect on the date of this Agreement and
            as amended  from time to time,  herein  called the  "Declaration  of
            Trust");

      (b)   By-Laws of the Trust (such By-Laws, as in effect on the date of this
            Agreement  and as amended from time to time,  are herein  called the
            "By-Laws");

      (c)   Prospectus(es)  of each Fund,  including any relevant  Statements of
            Additional Information of each such Fund.

4.    Compensation  to the  Sub-Adviser.  For the services to be provided by the
      Sub-Adviser  pursuant  to  this  Agreement,   the  Adviser  will  pay  the
      Sub-Adviser,  and the  Sub-Adviser  agrees to accept as full  compensation
      therefore,  a  sub-advisory  fee at the rate  specified  in the Schedule A
      which is attached hereto and made part of this Agreement.  The fee will be
      calculated  based on the average  monthly market value of the Assets under
      the  Sub-Adviser's   management  and  will  be  paid  to  the  Sub-Adviser
      quarterly.  Except as may  otherwise be  prohibited  by law or  regulation
      (including  any then current SEC staff  interpretation),  the  Sub-Adviser
      may, in its discretion and from time to time,  waive a portion of its fee.
      The Sub-Adviser  may also be eligible to share in additional  compensation
      as described in Schedule B, which is attached hereto and made part of this
      Agreement.

                                       3
<PAGE>

5.    Indemnification.  The  Sub-Adviser  shall  indemnify and hold harmless the
      Adviser  from and  against  any and all  claims,  losses,  liabilities  or
      damages (including  reasonable attorney's fees and other related expenses)
      howsoever  arising  from or in  connection  with  the  performance  of the
      Sub-Adviser's  obligations under this Agreement;  provided,  however, that
      the Sub-Adviser's  obligation under this Section 5 shall be reduced to the
      extent  that  the  claim  against,  or  the  loss,   liability  or  damage
      experienced by the Adviser,  is caused by or is otherwise directly related
      to the Adviser's own willful misfeasance,  bad faith or negligence,  or to
      the reckless disregard of its duties under this Agreement.

      The Adviser shall  indemnify and hold  harmless the  Sub-Adviser  from and
      against  any and all claims,  losses,  liabilities  or damages  (including
      reasonable  attorney's fees and other related expenses)  howsoever arising
      from or in connection  with the  performance of the Adviser's  obligations
      under this Agreement;  provided,  however,  that the Adviser's  obligation
      under  this  Section  5 shall be  reduced  to the  extent  that the  claim
      against, or the loss,  liability or damage experienced by the Sub-Adviser,
      is caused by or is otherwise  directly  related to the  Sub-Adviser's  own
      willful misfeasance, bad faith or negligence, or to the reckless disregard
      of its duties under this Agreement.

6.    Duration and Termination. This Agreement shall become effective as to each
      and every Fund upon its  approval by the Trust's  Board of Trustees and by
      the vote of a majority of the outstanding  voting securities of each Fund.
      This  Agreement  shall  continue in effect as to each and every Fund for a
      period of more than two years  from the date  hereof  only so long as such
      continuance is specifically approved at least annually in conformance with
      the 1940 Act;  provided,  however,  that this  Agreement may be terminated
      with respect to a Fund (a) by the Fund at any time, without the payment of
      any penalty,  by the vote of a majority of Trustees of the Trust or by the
      vote of a majority of the outstanding  voting  securities of the Fund, (b)
      by the  Adviser at any time,  without the  payment of any  penalty,  on 60
      days' written notice to the Sub-Adviser,  or (c) by the Sub-Adviser at any
      time,  without the payment of any penalty,  on 60 days' written  notice to
      the Adviser. This Agreement shall terminate  automatically and immediately
      in the  event  of its  assignment,  or as to any  Fund in the  event  of a
      termination  of the advisory  Agreement  relating to that Fund. As used in
      this  Section 6, the terms  "assignment"  and "vote of a  majority  of the
      outstanding  voting  securities"  shall have the  respective  meanings set
      forth in the 1940 Act and the rules and regulations thereunder, subject to
      such exceptions as may be granted by the SEC under the 1940 Act.

7.    Governing  Law. This  Agreement  shall be governed by the internal laws of
      the  Commonwealth  of  Pennsylvania,  without  regard to  conflict  of law
      principles;  provided,  however, that nothing herein shall be construed as
      being inconsistent with the 1940 Act.

8.    Severability. Should any part of this Agreement be held invalid by a court
      decision,  statute,  rule or otherwise,  the  remainder of this  Agreement
      shall not be affected  thereby.  This Agreement  shall be binding upon and
      shall  inure to the  benefit of the  parties  hereto and their  respective
      successors.

9.    Notice.  Any  notice,  advice  or  report  to be  given  pursuant  to this
      Agreement shall be deemed sufficient if delivered or mailed by registered,
      certified or overnight mail, postage prepaid addressed by the party giving
      notice  to the  other  party at the last  address  furnished  by the other
      party:

                                       4
<PAGE>

         To the Adviser at:             Concentrated Capital Management, LP
                                        1150 First Avenue
                                        Park View Tower, Suite 600
                                        King of Prussia, PA 19406-2816

         To the Sub-Adviser at:         Mercury Advisors
                                        800 Scudders Mill Road
                                        Plainsboro, New Jersey 08536

10.   Entire  Agreement.  This  Agreement  embodies  the  entire  agreement  and
      understanding  between  the  parties  hereto,  and  supersedes  all  prior
      agreements and understandings relating to this Agreement's subject matter.
      This  Agreement  may be  executed in any number of  counterparts,  each of
      which  shall be deemed to be an  original,  but such  counterparts  shall,
      together, constitute only one instrument.

      A copy of the  Declaration of Trust is on file with the Secretary of State
of the State of  Delaware,  and notice is hereby given that the  obligations  of
this  instrument  are  not  binding  upon  any  of  the  Trustees,  officers  or
shareholders of any Fund or the Trust.

      Where  the  effect  of a  requirement  of the  1940 Act  reflected  in any
provision  of this  Agreement is altered by a rule,  regulation  or order of the
SEC, whether of special or general  application,  such provision shall be deemed
to incorporate the effect of such rule, regulation or order.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
executed by their officers designated below as of the day and year first written
above.

Concentrated Capital                        Fund Asset Management, L.P. is
Management, LP                              doing business as Mercury Advisors

By:                                         By:
----------------------                      ---------------------

Name:                                       Name:
--------------------                        -------------------

Title:                                      Title:
---------------------                       --------------------

                                       5
<PAGE>

                                   Schedule A
                                     to the
                             Sub-Advisory Agreement
                                     between
                       Concentrated Capital Management, LP
                                       and
                                Mercury Advisors

Pursuant to Article 4, the Adviser shall pay the Sub-Adviser  compensation at an
annual rate as follows:

Target Select Equity Fund

For the Global Small Cap mandate:      1.00%

For the Value mandate:                  .75%

The  Sub-Adviser  agrees to waive these fees until the assets in the Fund exceed
$50 million.

<PAGE>

                                   Schedule B
                                     to the
                             Sub-Advisory Agreement
                                     between
                         Concentrated Capital Management
                                       and
                                Mercury Advisors

Pursuant to Article 4, the Adviser shall pay the Sub-Adviser, if eligible, a
portion of any performance based fee received by the Advisor from the Fund. The
Adviser only earns a performance based fee when the Fund outperforms the
applicable index by more than 3%. The performance based fee, when earned,
accrues daily based on a trailing 12 month period of performance. The Adviser
will place all performance based fees in a performance pool (the "Pool") to be
divided among eligible sub-advisers at the end of each calendar quarter.

This Schedule B shall become effective and enforceable only upon the Adviser's
demonstration, by delivery of a written opinion of reputable counsel acceptable
to the Sub-Adviser or by such other manner deemed acceptable to the Sub-Adviser,
that the payment of fees to the Sub-Adviser as described in this Schedule B is
in accordance with all applicable legal requirements, including those of the
Investment Company Act of 1940, as amended, and the Investment Advisers Act of
1940, as amended. Upon the failure of the Adviser's counsel to provide such
evidence, the Adviser agrees to negotiate with the Sub-Adviser in good faith a
new fee structure that provides to the Sub-Adviser additional compensation in an
amount at no less advantage than the Sub-Adviser would have received under the
arrangement described herein.

In order to be deemed eligible to share in the Pool, sub-advisers must have
outperformed their respective benchmarks by 3% annually, on a net of
sub-advisory fee basis, as of the calendar quarter end. For the purpose of
eligibility, Sub-Adviser shall have the following benchmarks:

         Sub-Adviser Mandate                         Benchmark
         -------------------                         ---------
         Value                                       Russell 2500 Value Index
         Global Small Cap                            MSCI World Small Cap Index

The Pool will then be split proportionately among eligible sub-advisers based on
the following calculation:

      1.    Each eligible sub-adviser's average daily balance of Fund assets
            under management will be calculated. The sum of these will determine
            the denominator of the fractional percentage to be used.

      2.    The numerator for the fractional percentage of each eligible
            sub-adviser's share of the Pool will be the average daily balance of
            Fund assets under management by that sub-adviser.

      3.    The amount paid to eligible sub-advisers will be the balance of the
            Pool at the end of the calendar quarter multiplied by a fraction
            whose numerator and denominator is described in (1) and (2),
            respectively.

For the purpose of this agreement, each investment mandate that the Sub-Adviser
manages in the Fund will be deemed to be a separate and distinct sub-advisory
relationship.

                                       2
<PAGE>

Since the Pool is based on 12 month returns, there will be no Pool available
until 12 months from the date the Fund commences operations.

                                        3
<PAGE>

                          Performance Base Fee Example
                             Sub-Advisory Agreement
                                     Between
                         Concentrated Capital Management
                                       And
                                Mercury Advisors

Assume 4 sub-advisers  managing average daily balances of $32, $30, $20 and $18.
Let's further assume that the first 3 sub-advisers,  respectively,  are eligible
to  share  in  the  Pool.  The  denominator  of the  fraction  would  equal  $82
(32+30+20).  The first  sub-adviser  would then earn 39.02% of the Pool (32/82).
The  second  sub-adviser  would  earn  36.59%  of the Pool  (30/82).  The  third
sub-adviser would earn 24.39% of the Pool (20/82). The fourth sub-adviser is not
eligible and therefore, receives nothing from the Pool.Exhibit 4(e)

                          INVESTMENT ADVISORY AGREEMENT

      AGREEMENT  made as of  November 1, 2000,  by and  between  MERCURY  TARGET
SELECT EQUITY FUND,  INC. (the "Fund") and FUND ASSET  MANAGEMENT,  L.P.,  doing
business  as  MERCURY  ADVISORS  (hereinafter  referred  to as  the  "Investment
Adviser"), a Delaware limited partnership.

                              W I T N E S S E T H:

      WHEREAS,  the  Fund is  engaged  in  business  as an  open-end  management
investment  company  registered  under the  Investment  Company Act of 1940,  as
amended (hereinafter referred to as the "Investment Company Act");

      WHEREAS,  the Directors of the Fund (the "Directors") have determined that
the Fund will  operate as a feeder  fund that seeks to  achieve  its  investment
objectives  by  investing  all of its assets in shares of a master fund or other
pooled  investment  vehicle with the same investment  objectives and policies as
the Fund, and the Directors intend such arrangement to continue indefinitely;

      WHEREAS,  the  Directors  may,  at some  future  time,  direct the Fund to
withdraw  all of its  assets  from the shares of a master  fund or other  pooled
investment  vehicle and invest  directly in portfolio  securities  in accordance
with its investment objectives and policies;

      WHEREAS,  the  Investment  Adviser is  engaged  principally  in  rendering
management and investment  advisory  services and is registered as an investment
adviser under the Investment Advisers Act of 1940;

      WHEREAS,  the Fund  desires  to retain the  Investment  Adviser to provide
management and investment advisory services to the Fund in the manner and on the
terms hereinafter set forth; and

      WHEREAS,  the  Investment  Adviser is willing  to provide  management  and
investment  advisory services to the Fund on the terms and conditions  hereafter
set forth.

      NOW,  THEREFORE,  in  consideration  of the  premises  and  the  covenants
hereinafter  contained,  the Fund and the  Investment  Adviser  hereby  agree as
follows:

                                    ARTICLE I
                        DUTIES OF THE INVESTMENT ADVISER

      The Fund  hereby  employs the  Investment  Adviser to act as a manager and
investment  adviser of the Fund and to furnish,  or arrange for other persons or
entities (including,  without limitation,  affiliates of the Investment Adviser)
to furnish, the management and investment advisory services

<PAGE>

described  below,  subject to the policies of, review by and overall  control of
the Directors,  for the period and on the terms and conditions set forth in this
Agreement.  The Investment  Adviser  hereby  accepts such  employment and agrees
during such period, at its own expense,  to render, or arrange for the rendering
of,  such  services  and to  assume  the  obligations  herein  set forth for the
compensation  provided for herein.  The  Investment  Adviser and its  affiliates
shall for all purposes herein be deemed to be independent contractors and shall,
unless otherwise expressly provided or authorized,  have no authority to act for
or represent the Fund in any way or otherwise be deemed agents of the Fund.

            (a) Management  Services.  The Investment  Adviser shall perform (or
      arrange for the performance of) the management and administrative services
      necessary  for the  operation of the Fund, to the extent such services are
      not  otherwise  provided  for pursuant to an  Administration  Agreement to
      which the Fund is a party.  The Investment  Adviser shall provide the Fund
      with office space, facilities,  equipment and necessary personnel and such
      other  services  as the  Investment  Adviser,  subject  to  review  by the
      Directors,  shall from time to time determine to be necessary or useful to
      perform its obligations under this Agreement. The Investment Adviser shall
      also, on behalf of the Fund, conduct relations (or arrange for the conduct
      of  such  relations)  with  custodians,   depositories,  transfer  agents,
      dividend   disbursing   agents,   other   shareholder   servicing  agents,
      accountants,  attorneys,  underwriters,  brokers  and  dealers,  corporate
      fiduciaries,  insurers,  banks and such  other  persons  in any such other
      capacity deemed to be necessary or desirable. The Investment Adviser shall
      generally monitor (or arrange for the monitoring of) the Fund's compliance
      with investment policies and restrictions as set forth in the Registration
      Statement of the Fund filed with the  Securities  and Exchange  Commission
      under  the  Investment  Company  Act,  as  amended  from time to time (the
      "Registration  Statement").  The Investment Adviser shall make reports (or
      arrange  for  the  making  of  such  reports)  to  the  Directors  of  its
      performance   of   obligations    hereunder   and   furnish   advice   and
      recommendations  with  respect to such other  aspects of the  business and
      affairs of the Fund as it shall determine to be desirable.

            (b)  Investment  Advisory  Services.  The  Investment  Adviser shall
      provide (or arrange for the  provision  of) the Fund with such  investment
      research,  advice  and  supervision  as the  latter  may from time to time
      consider  necessary for the proper  supervision of the assets of the Fund,
      shall  furnish  (or  arrange  for  the  furnishing  of)   continuously  an
      investment  program for the Fund and shall  determine  (or arrange for the
      determination  of) from time to time which  securities shall be purchased,
      sold or exchanged and what portion of the assets of the Fund shall be held
      in the various  securities  and other  financial  instruments in which the
      Fund invests or cash,  subject always to the  restrictions of the Articles
      of  Incorporation  and By-Laws of the Fund,  as amended from time to time,
      the provisions of the Investment  Company Act and the statements  relating
      to the Fund's investment  objectives,  investment  policies and investment
      restrictions as the same are set forth in the Fund's current  Registration
      Statement. The Investment Adviser shall make decisions (or arrange for the
      making of such  decisions)  for the Fund as to the manner in which  voting
      rights,  rights to  consent  to  corporate  action  and any  other  rights
      pertaining to the Fund's portfolio securities

                                        2
<PAGE>

      shall be exercised.  Should the Directors at any time,  however,  make any
      definite  determination as to investment  policy and notify the Investment
      Adviser thereof in writing,  the Investment Adviser shall be bound by such
      determination  for the period,  if any,  specified in such notice or until
      similarly  notified  that  such   determination  has  been  revoked.   The
      Investment  Adviser  shall  take,  on behalf of the Fund,  all actions (or
      arrange for the taking of all such  actions)  which it deems  necessary to
      implement the investment  policies  determined as provided  above,  and in
      particular  to place all  orders  for the  purchase  or sale of  portfolio
      securities for the Fund's account with brokers or dealers  selected by it,
      and to that end, the Investment  Adviser is authorized as the agent of the
      Fund to give instructions to the custodian of the Fund as to deliveries of
      securities and payments of cash for the account of the Fund. In connection
      with the  selection  of such  brokers or dealers  and the  placing of such
      orders  with  respect  to assets of the Fund,  the  Investment  Adviser is
      directed  at all times to seek to obtain  execution  and price  within the
      policy  guidelines  determined  by the Directors and set forth in the then
      current  Registration  Statement.  Subject  to  this  requirement  and the
      provisions of the Investment  Company Act, the Securities  Exchange Act of
      1934, as amended,  and other applicable  provisions of law, the Investment
      Adviser  may  select  brokers  or  dealers  with  which  it or the Fund is
      affiliated.

            (c) Sub-Advisers.  In carrying out its  responsibilities  hereunder,
      the Investment Adviser may employ, retain or otherwise avail itself of the
      services  of other  persons or  entities  (including  without  limitation,
      affiliates of the  Investment  Adviser),  on such terms as the  Investment
      Adviser  shall  determine  to  be  necessary,  desirable  or  appropriate.
      However,  if the Investment  Adviser  chooses to retain or avail itself of
      the services of another  person or entity to manage assets of the Fund, or
      any portion  thereof as  determined by the  Investment  Adviser such other
      person or entity must be (i) retained at the Investment Adviser's own cost
      and expense and (ii) retained subject to the requirements of Section 15 of
      the Investment Company Act. Retention of one or more sub-advisers,  or the
      employment or retention of other persons or entities to perform  services,
      shall  in no  way  reduce  the  responsibilities  or  obligations  of  the
      Investment  Adviser under this Agreement and the Investment  Adviser shall
      be responsible for all acts and omissions of such  sub-advisers,  or other
      persons or entities,  in connection with the performance of the Investment
      Adviser's duties hereunder.

            (d) Notice Upon Change in Partners of the  Investment  Adviser.  The
      Investment  Adviser is a limited  partnership  and its limited  partner is
      Merrill Lynch & Co., Inc. and its general  partner is Princeton  Services,
      Inc.  The  Investment  Adviser  will  notify the Fund of any change in the
      membership of the partnership within a reasonable time after such change.

            (e) The  Investment  Adviser  shall  have no  obligation  to perform
      pursuant to this Article I unless and until the Directors  direct the Fund
      to withdraw all of its assets from shares of a master fund or other pooled
      investment  vehicle and direct the Investment  Adviser to directly  manage
      the  Fund's  assets  in the  manner  and on the  terms  set  forth in this
      Agreement.

                                        3
<PAGE>

                                   ARTICLE II
                       ALLOCATION OF CHARGES AND EXPENSES

            (a) The Investment Adviser.  The Investment Adviser shall assume and
      shall pay, or cause its  affiliate to pay, for  maintaining  the staff and
      personnel  necessary to perform its obligations under this Agreement,  and
      shall,  at its own  expense,  provide  the office  space,  facilities  and
      necessary  personnel  which it is  obligated  to provide  under  Article I
      hereof.  The Investment  Adviser shall pay, or cause its affiliate to pay,
      compensation  of all  Officers  and  all  Directors  of the  Fund  who are
      affiliated persons of the Investment Adviser or any sub-adviser,  or of an
      affiliate of the Investment Adviser or any sub-adviser.

            (b) The Fund.  The Fund  shall  assume  and shall pay or cause to be
      paid all other  expenses of the Fund (except for the expenses  paid by FAM
      Distributors,  Inc. (the "Distributor")),  including,  without limitation:
      taxes,  expenses  for  legal  and  auditing  services,  costs of  printing
      proxies,  shareholder  reports,  copies  of  the  Registration  Statement,
      charges of the custodian,  any sub-custodian and transfer agent,  expenses
      of portfolio  transactions,  expenses of redemption of shares,  Securities
      and Exchange  Commission  fees,  expenses of registering  the shares under
      Federal, state and foreign laws, fees and actual out-of-pocket expenses of
      Directors who are not affiliated  persons of the Investment Adviser or any
      sub-adviser,  or  of  an  affiliate  of  the  Investment  Adviser  or  any
      sub-adviser, accounting and pricing costs (including the daily calculation
      of the net asset value), insurance,  interest, brokerage costs, litigation
      and other  extraordinary  or  non-recurring  expenses,  and other expenses
      properly  payable by the Fund. It is also  understood  that the Fund shall
      reimburse the Investment Adviser or an affiliate of the Investment Adviser
      for  its  costs  in  providing   accounting  services  to  the  Fund.  The
      Distributor  will pay  certain of the  expenses  of the Fund  incurred  in
      connection with the continuous  offering of shares of beneficial  interest
      of the Fund.

            (c) No payment or  reimbursement  of charges and  expenses  shall be
      accrued  or  payable  under  this  Article  II by  either  the Fund or the
      Investment  Adviser  unless and until the  Directors  direct that the Fund
      withdraw  all of its assets from  shares of a master fund or other  pooled
      investment  vehicle and direct the Investment  Adviser to directly  manage
      the  Fund's  assets  in the  manner  and on the  terms  set  forth in this
      Agreement.

                                   ARTICLE III
                     COMPENSATION OF THE INVESTMENT ADVISER

      (a) Management and Investment Advisory Fee. For the services rendered, the
facilities  furnished and expenses assumed by the Investment  Adviser,  the Fund
shall pay to the  Investment  Adviser  at the end of each  calendar  month a fee
based upon the average  daily value of the net assets of the Fund, as determined
and computed in accordance  with the  description  of the  determination  of net
asset  value  contained  in the  Registration  Statement,  at the annual rate of
1.0625%  of the  average  daily net  assets of the Fund,  commencing  on the day
following effectiveness hereof. If this

                                        4
<PAGE>

Agreement  becomes  effective  subsequent  to the  first day of a month or shall
terminate  before  the last day of a month,  compensation  for that  part of the
month this Agreement is in effect shall be prorated in a manner  consistent with
the  calculation  of the  fee as set  forth  above.  Payment  of the  Investment
Adviser's  compensation  for the  preceding  month  shall be made as promptly as
possible after completion of the  computations  contemplated  above.  During any
period when the  determination of net asset value is suspended by the Directors,
the net  asset  value  of a share  as of the  last  business  day  prior to such
suspension  shall for this  purpose  be deemed to be the net asset  value at the
close of each succeeding business day until it is again determined.

      (b) The Fund shall have no obligation to perform  pursuant to this Article
III unless and until the  Directors  direct  that the Fund  withdraw  all of its
assets  from  shares of a master  fund or other  pooled  investment  vehicle and
direct the Investment Adviser to directly manage the Fund's assets in the manner
and on the  terms  set  forth  in  this  Agreement.  Upon  such  direction,  the
obligation of the Fund to compensate  the  Investment  Adviser in the manner set
forth in this Article III shall accrue upon an effective  date to be  determined
by the Directors.

                                   ARTICLE IV
                LIMITATION OF LIABILITY OF THE INVESTMENT ADVISER

      The  Investment  Adviser  shall not be liable for any error of judgment or
mistake of law or for any loss arising out of any  investment  or for any act or
omission in the  management  of the Fund,  except for willful  misfeasance,  bad
faith or gross  negligence  in the  performance  of its duties,  or by reason of
reckless  disregard of its  obligations  and duties  hereunder.  As used in this
Article IV, the term  "Investment  Adviser"  shall include any affiliates of the
Investment  Adviser  performing  services for the Fund  contemplated  hereby and
partners,  directors,  officers and employees of the Investment Adviser and such
affiliates.

                                    ARTICLE V
                      ACTIVITIES OF THE INVESTMENT ADVISER

      The services of the Investment Adviser to the Fund are not to be deemed to
be exclusive,  and the Investment Adviser and each affiliate and subadviser,  if
any, is free to render  services to others.  It is  understood  that  Directors,
officers, employees and shareholders of the Fund are or may become interested in
the Investment Adviser and its affiliates,  as directors,  officers,  employees,
partners and  shareholders  or otherwise,  and that the  Investment  Adviser and
directors,  officers,  employees,  partners and  shareholders  of the Investment
Adviser and its affiliates are or may become similarly interested in the Fund as
shareholders or otherwise.

                                        5
<PAGE>

                                   ARTICLE VI
                   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 continue from
year to year, but only so long as such  continuance is specifically  approved at
least  annually  by (i)  the  Directors,  or by the  vote of a  majority  of the
outstanding  voting  securities  of the  Fund,  and  (ii) a  majority  of  those
Directors  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 Directors or by the vote of a majority of the outstanding voting
securities of the Fund,  or by the  Investment  Adviser,  on sixty days' written
notice to the other party. This Agreement shall  automatically  terminate in the
event of its assignment.

                                   ARTICLE VII
                          AMENDMENTS OF THIS AGREEMENT

      This  Agreement  may be amended by the parties  only if such  amendment is
specifically  approved  by (i) the  vote of a  majority  of  outstanding  voting
securities  of the Fund,  and (ii) a  majority  of those  Directors  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.

                                  ARTICLE VIII
                          DEFINITIONS OF CERTAIN TERMS

      The  terms  "vote  of  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 and the Rules and Regulations thereunder,  subject, however, to such
exemptions as may be granted by the  Securities  and Exchange  Commission  under
said Act.

                                   ARTICLE IX
                                  GOVERNING LAW

      This Agreement  shall be construed in accordance with laws of the State of
New York and the  applicable  provisions of the  Investment  Company Act. To the
extent  that  the  applicable  laws  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.

                                        6
<PAGE>

      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 together shall
constitute one and the same instrument.

                              MERCURY TARGET SELECT EQUITY FUND, INC.

                              By:  Terry K. Glenn
                                 ------------------------------------
                              Title: Executive Vice President

                              FUND ASSET MANAGEMENT, L.P., doing business
                              as MERCURY ADVISORS

                              By:  PRINCETON SERVICES, INC.,
                                   GENERAL PARTNER

                              By:  Terry K. Glenn
                                 ------------------------------------
                              Title:  Executive Vice President

                                        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00018-of-00352.parquet"}]]