Exhibit (k.4)
FULFILLMENT SERVICING AGREEMENT
THIS AGREEMENT is made and entered into as of this
15th day of October, 1999, by and between LCM Internet
Growth Fund, Inc., a corporation organized under the
laws of the State of Maryland (hereinafter referred to
as the "Company"), LCM Capital Management, Inc., a
corporation organized under the laws of the State of
Illinois (hereinafter referred to as the "Adviser"),
LaSalle St. Securities, LLC., a limited liability
company organized under the laws of the State of
Illinois (hereinafter referred to as "LaSalle") and
Firstar Mutual Fund Services, LLC, a corporation
organized under the laws of the State of Wisconsin
(hereinafter referred to as "FMFS").
WHEREAS, the Company is a closed-end management
investment company which is registered under the
Investment Company Act of 1940, as amended;
WHERAS, 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;
WHEREAS, LaSalle is a registered broker-dealer
under the Securities Exchange Act of 1934, as amended,
and serves as principal underwriter of Company shares;
WHEREAS, FMFS provides fulfillment services to
mutual funds, and
WHEREAS, the Company, the Adviser and LaSalle
desire to retain FMFS to provide fulfillment services
to the Company.
NOW, THEREFORE, the parties agree as follows:
1. Duties and Responsibilities of FMFS
1. Answer all prospective shareholder calls
concerning the Company.
2. Send all available Company material requested by the
prospect within 24 hours from time of call.
3. Receive and update all Company 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 Company fulfillment inventory.
6. Send periodic fulfillment reports to the Company as
agreed upon between the parties.
2. Duties and Responsibilities of the Company
1. Provide Company fulfillment literature updates to FMFS as necessary.
2. Coordinate with LaSalle the filing with the NASD, SEC and
State Regulatory Agencies, as appropriate, all fulfillment literature
that the Company requests FMFS send to prospective shareholders.
3. Supply FMFS with sufficient inventory of fulfillment materials as
requested from time to time by FMFS.
4. Provide FMFS with any sundry information about the
Company in order to answer prospect questions.
3. Indemnification
The Company agrees to indemnify FMFS from any liability
arising out of the distribution of fulfillment
literature, which has not been approved by the
appropriate Federal and State Regulatory Agencies.
FMFS 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. FMFS will be liable for
bad faith, negligence or willful misconduct on its part
in its duties under this Agreement.
4. Compensation
The Adviser agrees to compensate FMFS 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
FMFS 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 FMFS 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
10 days written notice.
7. No Agency Relationship
Nothing herein contained shall be deemed to authorize
or empower FMFS to act as agent for the Company, or to
conduct business in the name of, or for the account of
the Company.
8. Data Necessary to Perform Services
The Company or its agent, which may be FMFS, shall
furnish to FMFS the data necessary to perform the
services described herein at such times and in such
form as mutually agreed upon. If FMFS is also acting
in another capacity for the Company, nothing herein
shall be deemed to relieve FMFS of any of its
obligations in such capacity.
9. Notification of Error
The Company will notify FMFS of any error caused by
FMFS the later of: within three (3) business days
after receipt of any reports rendered by FMFS to the
Company; within three (3) business days after discovery
of any error or omission not covered in the balancing
or control procedure; or within three (3) business days
of receiving notice from any shareholder.
10.Year 2000 Representation
FMFS hereby represents and warrants that it does not
anticipate that the "Year 2000 Problem" will have a
material impact on its ability to perform its duties
under this Agreement. The "Year 2000 Problem" refers
to the inability of computer systems to properly
process and calculate date-related information and data
from and after January 1, 2000.
IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by a duly authorized
officer on one or more counterparts as of the day and
year first written above.
LCM INTERNET GROWTH FUND, INC. FIRSTAR MUTUAL FUND SERVICES, LLC
By: /s/ Xxxxxxx X. Xxxxx, Xx. By: /s/ Xxxxxx Xxxxxxxxx
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Attest: /s/ Xxxxxxx X. Xxxxxx Attest: /s/ Xxxxxxxx X. Xxxxx
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LCM CAPITAL MANAGEMENT, INC. LA SALLE ST. SECURITIES, LLC
By: /s/ Xxxxxxx X. Xxxxx, Xx. By: /s/ Xxxxx Xxxxxx
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Attest: /s/ Xxxxxxx X. Xxxxxx Attest: /s/ Xxxxxxx X. Xxxxxx
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Literature Fulfillment Services
Annual Fee Schedule
Exhibit A
Base Service $100 per month
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
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 reasonable out-of-pocket expenses are billed
to Company monthly
