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Exhibit (8)(d)
September 29, 1995
Mercantile Bank of St. Louis National Association
One Mercantile Center
St. Louis, Missouri 63101
RE: Custody Fees for the ARCH Tax-Exempt Money Market and
Missouri Tax-Exempt Bond Portfolios
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Gentlemen:
This letter constitutes our agreement with respect to
compensation to be paid to Mercantile Bank of St. Louis National Association
("Mercantile") with respect to The ARCH Tax-Exempt Money Market Portfolio
(comprised of Class J and Class J - Special Series 1) and The ARCH Missouri
Tax-Exempt Bond Portfolio (comprised of Class K, Class K - Special Series 1 and
Class K - Special Series 2 shares) (each class a "Series") under the terms of
the Custodian Agreement dated as of April 1, 1992 (the "Custodian Agreement")
between The ARCH Fund, Inc. (the "Fund") and Mercantile. Pursuant to
Paragraph 23 of the Custodian Agreement, and in consideration of the services
to be provided by you, we will pay Mercantile the following:
1. An annual custody fee (exclusive of any transaction charges),
which shall be calculated daily and paid monthly (in arrears) for each Series
as follows:
- The ARCH Tax-Exempt Money Market Portfolio - $.125 for each
$1000 of the Series' average daily net assets; and
- The ARCH Missouri Tax-Exempt Bond Portfolio - the greater of
$6,000 or $.30 for each $1,000 of the Series' average daily
net assets.
2. For the Tax-Exempt Money Market Portfolio a transaction charge
of $50.00 for each interest collection or claim item;
3. For the Missouri Tax-Exempt Bond Portfolio a transaction
charge of $15.00 for each purchase, sale or delivery of a security upon its
maturity date, $50.00 for each interest collection or claim item, $20.00 for
each transaction involving
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Mercantile Bank of St. Louis, N.A.
September 29, 1995
Page Two
GNMA, tax-free or other non-depository registered items with monthly dividends
or interest, $30.00 for each purchase, sale or expiration of an option
contract, $50.00 for each purchase, sale or expiration of a futures contract,
and $15.00 for each repurchase trade with an institution other than Mercantile;
4. Mercantile's incremental costs in providing foreign custody
services for foreign denominated and held securities; and
5. Mercantile's out-of-pocket expenses, including but not limited
to postage, telephone, telex, Federal Express and Federal Reserve wire fees, on
behalf of the Series.
The fee and expenses attributable to each Series shall be the
obligation of that Series and not of any other portfolio of the Trust. The fee
for the period from the day of the year this agreement is entered into until
the end of that fiscal year of the Series, or for any portion of a fiscal year
immediately prior to its termination, shall be pro-rated according to the
proportion which such period bears to the full annual period.
If the foregoing accurately sets forth our agreement and you
intend to be legally bound thereby, please execute a copy of this letter and
return it to us.
Very truly yours,
THE ARCH FUND, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx, President
ACCEPTED: MERCANTILE BANK OF ST. LOUIS
NATIONAL ASSOCIATION
By: /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx, Senior Vice President
Dated as of: September 29, 1995
