STATE STREET RESEARCH INVESTMENT SERVICES, INC.
One Financial Center
Boston, Massachusetts 02111-2690
Date: May 15, 2000
State Street Research Concentrated Growth Fund
a series of State Street Research Financial Trust
One Financial Center
Boston, Massachusetts 02111
Dear Sir or Madam:
State Street Research Investment Services, Inc. ("Distributor")
voluntarily undertakes to pay certain expenses of the Fund up to an amount which
will enable the Fund to maintain a level of actual total operating expenses of
approximately 1.20% of net assets or as otherwise mutually agreed from time to
time by the Distributor and Board of Trustees of the Trust on behalf of the
Fund. ("Expense Benchmark"). The following expenses are excluded from this
undertaking: Rule 12b-1 fees and any other class specific expenses, interest,
taxes, brokerage commissions, and extraordinary expenses such as litigation and
other expenses not incurred in the ordinary course of the Fund's business. The
Distributor may unilaterally cease to pay Fund expenses pursuant to this
undertaking at any time.
The Distributor is entitled to payment from the Fund for the amount of
expenses paid on behalf of the Fund when the Fund's actual total operating
expenses are less than the Expense Benchmark then in effect, provided that the
effect of such payment does not cause the Fund to exceed the lower of (a) the
Expense Benchmark then in effect or (b) the Expense Benchmark in effect in the
year that the expenses were originally paid. The Distributor will not be
entitled to such repayments from the Fund after the end of the fifth fiscal year
of the Fund following the year in which the expenses were originally paid.
Sincerely,
State Street Research Investment Services, Inc.
By: /s/ Kevin Wilkins
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Acknowledged and accepted:
State Street Research Concentrated Growth Fund
a series of State Street Research Financial trust
By: /s/ Douglas A. Romich
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