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FULFILLMENT SERVICING AGREEMENT
THIS AGREEMENT is made and entered into as of January 1, 1998, by and
between Light Index Fund, Inc., a Maryland corporation (hereinafter referred to
as the "Company"), Firstar Trust Company, a corporation organized under the laws
of the State of Wisconsin (hereinafter referred to as "FTC"), Light Index
Investment Company, a Washington corporation (hereinafter referred to as the
"Adviser"), and First Data Distributors, Inc., a Massachusetts corporation
(hereinafter referred to as the "Distributor").
WHEREAS, the Adviser is a registered investment adviser under the
Investment Advisers Act of 1940, as amended;
WHEREAS, the Adviser serves as investment adviser to the Company, a
registered investment company under the Investment Company Act of 1940, as
amended, which is authorized to create separate series of funds;
WHEREAS, the Distributor is a registered broker-dealer under the
Securities Exchange Act of 1934, as amended, and serves as principal distributor
of Company shares;
WHEREAS, FTC provides fulfillment services to mutual funds;
WHEREAS, the Adviser, the Distributor, and the Company desire to retain
FTC to provide fulfillment services for the Light Index Fund (the "Fund") and
each additional series of the Company listed on Exhibit A attached hereto, as
may be amended from time to time.
NOW, THEREFORE, the parties agree as follows:
1. DUTIES AND RESPONSIBILITIES OF FTC
1. Answer all prospective shareholder calls concerning the Fund.
2. Send all available Fund material requested by the prospect within 24
hours from time of call.
3. Receive and update all Fund fulfillment literature so that the most
current information is sent and quoted.
4. Provide 24 hour answering service to record prospect calls made
after hours (7 p.m. to 8 a.m. CT).
5. Maintain and store Fund fulfillment inventory.
6. Send periodic fulfillment reports to the Company as agreed upon
between the parties.
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2. DUTIES AND RESPONSIBILITIES OF THE COMPANY
1. Provide Fund fulfillment literature updates to FTC as necessary.
2. File with the NASD, SEC and State Regulatory Agencies, as
appropriate, all fulfillment literature that the Fund requests FTC send to
prospective shareholders.
3. Supply FTC with sufficient inventory of fulfillment materials as
requested from time to time by FTC.
4. Provide FTC with any sundry information about the Fund in order to
answer prospect questions.
3. INDEMNIFICATION
The Company agrees to indemnify FTC from any liability arising out of the
distribution of fulfillment literature which has not been approved by the
appropriate Federal and State Regulatory Agencies. FTC agrees to indemnify the
Company from any liability arising from the improper use of fulfillment
literature during the performance of duties and responsibilities identified in
this agreement.
4. COMPENSATION
The Company, if permissible under any Rule 12b-1 plan in effect from time to
time for the benefit of the Fund and only to the extent consistent with the
terms of such plan, or the Adviser, or the Distributor, agrees to compensate FTC
for the services performed under this Agreement in accordance with the attached
Exhibit A. All invoices shall be paid within ten days of receipt.
5. PROPRIETARY AND CONFIDENTIAL INFORMATION
FTC agrees on behalf of itself and its directors, officers, and employees to
treat confidentially and as proprietary information of the Company all records
and other information relative to the Company and prior, present, or potential
shareholders of the Company (and clients of said shareholders), and not to use
such records and information for any purpose other than the performance of its
responsibilities and duties hereunder, except after prior notification to and
approval in writing by the Company, which approval shall not be unreasonably
withheld and may not be withheld where FTC may be exposed to civil or criminal
contempt proceedings for failure to comply, when requested to divulge such
information by duly constituted authorities, or when so requested by the
Company.
6. TERMINATION
This Agreement may be terminated by either party upon 30 days written notice.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by a duly authorized officer or one or more counterparts as of the day and year
first written above.
LIGHT INDEX FUND, INC. FIRSTAR TRUST COMPANY
By:______________________________ By: ________________________________
Attest: __________________________ Attest:______________________________
LIGHT INDEX INVESTMENT COMPANY FIRST DATA DISTRIBUTORS, INC.
By:______________________________ By: ________________________________
Attest: __________________________ Attest:______________________________
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LITERATURE FULFILLMENT SERVICES
ANNUAL FEE SCHEDULE
EXHIBIT A
Separate Series of Light Index Fund, Inc.
NAME OF SERIES ADDED AS OF
Light Index Fund January 1, 1998
Customer Service
State registration compliance edits
Literature database
Record prospect request and profile
Prospect servicing 8:00 am to 7:00 pm CT
Recording and transcription of requests received off-hours
Periodic reporting of leads to client
Service Fee: $.99 / minute
$100 / month minimum
$780 one-time setup
Assembly and Distribution of Literature Requests
Generate customized prospect letters
Assembly and insertion of literature items
Inventory tracking
Inventory storage, reporting
Periodic reporting of leads by state, items requested, market source
Service Fee: $.45 / lead - insertion of up to 4 items/lead
$.15 / additional inserts
Fees and out-of-pocket expenses are billed to the fund monthly.
