1
Exhibit (8)(c)
July 10, 1995
Mercantile Bank of St. Louis National Association
One Mercantile Center
St. Louis, Missouri 63101
Re: Custody Fees for The ARCH Short-Intermediate
Municipal Portfolio
--------------------------------------------
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 Short- Intermediate Municipal Portfolio
(comprised of Class I and Class I - Special Series 1 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 for the
non-money market portfolios), which shall be calculated daily and paid monthly
(in arrears) for each Series as follows:
- The ARCH Short-Intermediate Municipal Portfolio - the greater
of $6,000 or $.30 for each $1,000 of the Series' average daily
net assets.
2. 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 GAMA, 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;
2
Mercantile Bank of St. Louis, N.A.
July 10, 1995
Page 2
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 Fund. 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
-----------------------
Xxxxx X. Xxxxxxx, President
ACCEPTED: MERCANTILE BANK OF ST. LOUIS NATIONAL ASSOCIATION
By:/s/ Xxxxxx X. Xxxxxx
--------------------------------------
Xxxxxx X. Xxxxxx, Senior Vice President
Dated as of: July 10, 1995
