Exhibit 99.77Q(1)
LORD XXXXXX [LOGO]
Expense Reimbursement Agreement
This Expense Reimbursement Agreement (this "Agreement") is made and entered into
this 1st day of October 2006 between Lord, Xxxxxx & Co. LLC ("Lord Xxxxxx") and
Lord Xxxxxx Municipal Income Trust with respect to the Florida Series, Georgia
Series, Michigan Series, Pennsylvania Series and Lord Xxxxxx Insured
Intermediate Tax-Free Fund (each a "Fund").
In consideration of good and valuable consideration, receipt of which is hereby
acknowledged, it is agreed as follows:
1. With respect to each of the Georgia Series, Michigan Series, and
Pennsylvania Series, Lord Xxxxxx agrees to bear directly and/or reimburse
each Fund for expenses if and to the extent that Total Operating Expenses
(excluding interest and related expenses associated with the Fund's
investments in residual interest bonds) exceed or would otherwise exceed
an annual rate, based on the Fund's average daily net assets, of (a)
ninety-five basis points (0.95%) for Class A shares of each Fund, and (b)
one hundred five basis points (1.05%) for Class P shares of the Fund for
the time period set forth in paragraph 4 below.
2. With respect to the Florida Series, Lord Xxxxxx agrees to bear directly
and/or reimburse the Fund for expenses if and to the extent that Total
Operating Expenses (excluding interest and related expenses associated
with the Fund's investments in residual interest bonds) exceed or would
otherwise exceed an annual rate, based on the Fund's average daily net
assets, of (a) ninety-five basis points (0.95%) for Class A shares of the
Fund, (b) one hundred sixty basis points (1.60%) for Class C shares of the
Fund, and (c) one hundred five basis points (1.05%) for Class P shares of
the Fund for the time period set forth in paragraph 4 below.
3. With respect to the Lord Xxxxxx Insured Intermediate Tax-Free Fund, Lord
Xxxxxx agrees to bear directly and/or reimburse the Fund for expenses if
and to the extent that Total Operating Expenses (excluding interest and
related expenses associated with the Fund's investments in residual
interest bonds) exceed or would otherwise exceed an annual rate, based on
the Fund's average daily net assets, of (a) twenty-five basis points
(0.25%) for Class A shares of the Fund, (b) one hundred basis points
(1.00%) for Class B shares of the Fund, (c) one hundred basis points
(1.00%) for Class C shares of the Fund, and (d) forty-five basis points
(0.45%) for Class P shares of the Fund for the time period set forth in
paragraph 4 below.
4. Lord Xxxxxx'x commitments described in paragraphs 1, 2 and 3 will be
effective from October 1, 2006 through January 31, 2008.
IN WITNESS WHEREOF, Lord Xxxxxx and Lord Xxxxxx Municipal Income Trust have
caused this Agreement to be executed by a duly authorized member and officer,
respectively, on the day and year first above written.
LORD XXXXXX MUNICIPAL INCOME TRUST
By: /s/ Xxxxxxxxx X. Xxxxxxx
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Xxxxxxxxx X. Xxxxxxx
Vice President and Assistant Secretary
LORD, XXXXXX & CO. LLC
By: /s/ Xxxxxxxx X. Xxxxxx
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Xxxxxxxx X. Xxxxxx
Member and General Counsel
