MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into as of the Effective Date on
Exhibit "A" and "B" (the "Exhibits"), between AIM Combination Stock & Bond
Funds, AIM Counselor Series Trust, AIM Equity Funds, AIM Funds Group, AIM Growth
Series, AIM International Mutual Funds, AIM Investment Funds, AIM Investment
Securities Funds, AIM Sector Funds and AIM Stock Funds (each a "Trust" or,
collectively, the "Trusts"), on behalf of the funds listed on the Exhibits to
this Memorandum of Agreement (the "Funds"), and A I M Advisors, Inc. ("AIM").
This Memorandum of Agreement restates the Memoranda of Agreement dated November
1, 2004 between AIM Equity Funds, AIM International Mutual Funds and AIM
Investment Funds and A I M Advisors, Inc. and dated January 1, 2005 between AIM
Combination Stock & Bond Funds, AIM Counselor Series Trust, AIM Equity Funds,
AIM Funds Group, AIM Growth Series, AIM International Mutual Funds, AIM
Investment Funds, AIM Investment Securities Funds, AIM Sector Funds and AIM
Stock Funds. AIM shall and hereby agrees to waive fees or reimburse expenses of
each Fund, on behalf of its respective classes as applicable, severally and not
jointly, as indicated in the attached Exhibits.
For and in consideration of the mutual terms and agreements set forth
herein and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Trusts and AIM agree as follows:
The Trusts and AIM agree until the date set forth on the attached Exhibits
(the "Expiration Date") that AIM will waive its fees or reimburse expenses to
the extent that expenses (excluding (i) interest; (ii) taxes; (iii) dividend
expense on short sales; (iv) extraordinary items (these are expenses that are
not anticipated to arise from each Fund's day-to-day operations), or items
designated as such by the Funds' Board of Trustees; (v) expenses related to a
merger or reorganization, as approved by the Funds' Board of Trustees; and (vi)
expenses that each Fund has incurred but did not actually pay because of an
expense offset arrangement, if applicable) of a class of a Fund exceed the rate,
on an annualized basis, set forth on the Exhibits of the average daily net
assets allocable to such class. The Board of Trustees and AIM may terminate or
modify this Memorandum of Agreement prior to the Expiration Date only by mutual
written consent. AIM will not have any right to reimbursement of any amount so
waived or reimbursed.
Each of the Trusts and AIM agree to review the then-current waivers or
expense limitations for each class of each Fund listed on the Exhibits on a date
prior to the Expiration Date to determine whether such waivers or limitations
should be amended, continued or terminated. The waivers or expense limitations
will expire upon the Expiration Date unless the Trust and AIM have agreed to
continue them. The Exhibits will be amended to reflect any such agreement.
It is expressly agreed that the obligations of each Trust hereunder
shall not be binding upon any of the Trustees, shareholders, nominees, officers,
agents or employees of the Trusts personally, but shall only bind the assets and
property of each Fund, as provided in each Trust's Agreement and Declaration of
Trust. The execution and delivery of this Memorandum of Agreement have been
authorized by the Trustees of the Trusts, and this Memorandum of Agreement has
been executed and delivered by an authorized officer of the Trusts acting as
such; neither such authorization by such Trustees nor such execution and
delivery by such officer shall be deemed to have been made by any of them
individually or to impose any liability on any of them personally, but shall
bind only the assets and property of the Funds, as provided in each Trust's
Agreement and Declaration of Trust.
IN WITNESS WHEREOF, each of the Trusts and AIM have entered into this
Memorandum of Agreement as of the date first above written.
AIM COMBINATION STOCK & BOND FUNDS
AIM COUNSELOR SERIES TRUST
AIM EQUITY FUNDS
AIM FUNDS GROUP
AIM GROWTH SERIES
AIM INTERNATIONAL MUTUAL FUNDS
AIM INVESTMENT FUNDS
AIM INVESTMENT SECURITIES FUNDS
AIM SECTOR FUNDS
AIM STOCK FUNDS
on behalf of the Funds listed in
Exhibit "A" to this Memorandum of
Agreement
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------
Title: President
A I M Advisors, Inc.
By: /s/ Xxxx X. Xxxxxxxxxx
-----------------------------------
Title: President
EXHIBIT "A"
FUNDS WITH FISCAL YEAR END OF MARCH 31
AIM SECTOR FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ -------------- ---------------
AIM Energy Fund/1/
Class A Shares 2.00% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Class K Shares 2.10% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
AIM Financial Services Fund/1/
Class A Shares 2.00% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Class K Shares 2.10% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
AIM Gold & Precious Metals Fund/1/
Class A Shares 2.00% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
AIM Health Sciences Fund/1/
Class A Shares 2.00% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Class K Shares 2.10% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
AIM Leisure Fund/1/
Class A Shares 2.00% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Class K Shares 2.10% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
/1/ The total operating expenses of any class of shares established after the
date of this Memorandum of Agreement will be limited to the amount
established for Class A Shares plus the difference between the new class
12b-1 rate and the Class A 12b-1 rate.
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ -------------- ---------------
AIM Technology Fund/1/
Class A Shares 2.00% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Class K Shares 2.10% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
Institutional Class Shares 1.30% March 31, 2006
AIM Utilities Fund/1/
Class A Shares 1.90% April 1, 2005 March 31, 2006
Class B Shares 2.65% March 31, 2006
Class C Shares 2.65% March 31, 2006
Investor Class Shares 1.90% March 31, 2006
FUNDS WITH FISCAL YEAR END OF JULY 31
AIM INVESTMENT SECURITIES FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ -------------- ---------------
AIM Short Term Bond Fund/1/
Class A Shares 0.85%/2/ August 1, 2004 July 31, 2005
Class C Shares 1.20%/2/ July 31, 2005
Class R Shares 1.10% July 31, 2005
Institutional Class Shares 0.60% July 31, 2005
AIM Total Return Bond Fund/1/
Class A Shares 1.25% August 1, 2004 July 31, 2005
Class B Shares 1.90% July 31, 2005
Class C Shares 1.90% July 31, 2005
Class R Shares 1.40% July 31, 2005
Institutional Class Shares 0.90% July 31, 2005
/1/ The total operating expenses of any class of shares established after the
date of this Memorandum of Agreement will be limited to the amount
established for Class A Shares plus the difference between the new class
12b-1 rate and the Class A 12b-1 rate.
/2/ The expense limit shown is the expense limit after Rule 12b-1 fee waivers
by ADI.
AIM STOCK FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ -------------- ---------------
AIM Dynamics Fund/1/
Class A Shares 2.00% August 1, 2004 July 31, 2005
Class B Shares 2.65% July 31, 2005
Class C Shares 2.65% July 31, 2005
Class K Shares 2.10% July 31, 2005
Investor Class Shares 1.90% July 31, 2005
Institutional Class Shares 1.65% July 31, 2005
AIM Mid Cap Stock Fund/1/
Class A Shares 2.00% August 1, 2004 July 31, 2005
Class B Shares 2.65% July 31, 2005
Class C Shares 2.65% July 31, 2005
Class K Shares 2.10% July 31, 2005
Investor Class Shares 1.90% July 31, 2005
Institutional Class Shares 1.65% July 31, 2005
AIM Small Company Growth Fund/1/
Class A Shares 2.00% August 1, 2004 July 31, 2005
Class B Shares 2.65% July 31, 2005
Class C Shares 2.65% July 31, 2005
Class K Shares 2.10% July 31, 2005
Investor Class Shares 1.90% July 31, 2005
FUNDS WITH FISCAL YEAR END OF AUGUST 31
AIM COMBINATION STOCK & BOND FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ ----------------- ---------------
AIM Core Stock Fund/1/
Class A Shares 2.00% September 1, 2004 August 31, 2005
Class B Shares 2.65% August 31, 2005
Class C Shares 2.65% August 31, 2005
Class K Shares 2.10% August 31, 2005
Investor Class Shares 1.90% August 31, 2005
/1/ The total operating expenses of any class of shares established after the
date of this Memorandum of Agreement will be limited to the amount
established for Class A Shares plus the difference between the new class
12b-1 rate and the Class A 12b-1 rate.
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ ----------------- ---------------
AIM Total Return Fund/1/
Class A Shares 2.00% September 1, 2004 August 31, 2005
Class B Shares 2.65% August 31, 2005
Class C Shares 2.65% August 31, 2005
Class K Shares 2.10% August 31, 2005
Investor Class Shares 1.90% August 31, 2005
Institutional Class Shares 1.65% August 31, 2005
AIM COUNSELOR SERIES TRUST
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ ----------------- ---------------
AIM Multi-Sector Fund/1/
Class A Shares 2.00% September 1, 2004 August 31, 2005
Class B Shares 2.65% August 31, 2005
Class C Shares 2.65% August 31, 2005
Institutional Class Shares 1.65% August 31, 2005
FUNDS WITH FISCAL YEAR END OF OCTOBER 31
AIM EQUITY FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ ----------------- ----------------
AIM Diversified Dividend Fund/1/
Class A Shares 1.50% November 1, 2004 October 31, 2005
Class B Shares 2.15% October 31, 2005
Class C Shares 2.15% October 31, 2005
/1/ The total operating expenses of any class of shares established after the
date of this Memorandum of Agreement will be limited to the amount
established for Class A Shares plus the difference between the new class
12b-1 rate and the Class A 12b-1 rate.
AIM INTERNATIONAL MUTUAL FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ ----------------- ----------------
AIM International Core Equity Fund/1/
Class A Shares 2.10% September 1, 2004 October 31, 2005
Class B Shares 2.75% October 31, 2005
Class C Shares 2.75% October 31, 2005
Class R Shares 2.25% October 31, 2005
Investor Class Shares 2.00% October 31, 2005
Institutional Class Shares 1.75% October 31, 2005
AIM INVESTMENT FUNDS
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ ----------------- ----------------
AIM Developing Markets Fund/1/
Class A Shares 2.00% September 1, 2004 October 31, 2005
Class B Shares 2.50% October 31, 2005
Class C Shares 2.50% October 31, 2005
AIM Trimark Endeavor Fund/1/
Class A Shares 2.00% September 1, 2004 October 31, 2005
Class B Shares 2.65% October 31, 2005
Class C Shares 2.65% October 31, 2005
Class R Shares 2.15% October 31, 2005
Institutional Class Shares 1.65% October 31, 2005
AIM Trimark Fund/1/
Class A Shares 2.25% September 1, 2004 October 31, 2005
Class B Shares 2.90% October 31, 2005
Class C Shares 2.90% October 31, 2005
Class R Shares 2.40% October 31, 2005
Institutional Class Shares 1.90% October 31, 2005
AIM Trimark Small Companies Fund/1/
Class A Shares 2.00% September 1, 2004 October 31, 2005
Class B Shares 2.65% October 31, 2005
Class C Shares 2.65% October 31, 2005
Class R Shares 2.15% October 31, 2005
Institutional Class Shares 1.65% October 31, 2005
/1/ The total operating expenses of any class of shares established after the
date of this Memorandum of Agreement will be limited to the amount
established for Class A Shares plus the difference between the new class
12b-1 rate and the Class A 12b-1 rate.
FUNDS WITH FISCAL YEAR END OF DECEMBER 31
AIM FUNDS GROUP
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ --------------- -----------------
AIM European Small Company Fund/1/
Class A 2.00% January 1, 2005 December 31, 2005
Class B 2.65% December 31, 2005
Class C 2.65% December 31, 2005
AIM Global Value Fund/1/
Class A 2.00% January 1, 2005 December 31, 2005
Class B 2.65% December 31, 2005
Class C 2.65% December 31, 2005
AIM International Small Company
Fund/1/
Class A 2.00% January 1, 2005 December 31, 2005
Class B 2.65% December 31, 2005
Class C 2.65% December 31, 2005
AIM GROWTH SERIES
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ------------------ --------------- -----------------
AIM Global Equity Fund/1/
Class A Shares 2.00% January 1, 2005 December 31, 2005
Class B Shares 2.50% December 31, 2005
Class C Shares 2.50% December 31, 2005
Institutional Class Shares 1.50% December 31, 2005
/1/ The total operating expenses of any class of shares established after the
date of this Memorandum of Agreement will be limited to the amount
established for Class A Shares plus the difference between the new class
12b-1 rate and the Class A 12b-1 rate.
EXHIBIT "B"
AIM GROWTH SERIES
FUND EXPENSE LIMITATION EFFECTIVE DATE EXPIRATION DATE
---- ---------------------------------------------- --------------- -----------------
AIM Aggressive Allocation Fund
Class A Limit Other Expenses to 0.17% of average daily January 1, 2005 December 31, 2005
Class B net assets December 31, 2005
Class C Limit Other Expenses to 0.17% of average daily December 31, 2005
Class R net assets December 31, 2005
Institutional Class Limit Other Expenses to 0.17% of average daily December 31, 2005
net assets
Limit Other Expenses to 0.17% of average daily
net assets
Limit Other Expenses to 0.17% of average daily
net assets
AIM Conservative Allocation Fund
Class A Limit Other Expenses to 0.20% of average daily January 1, 2005 December 31, 2005
Class B net assets December 31, 2005
Class C Limit Other Expenses to 0.20% of average daily December 31, 2005
Class R net assets December 31, 2005
Institutional Class Limit Other Expenses to 0.20% of average daily December 31, 2005
net assets
Limit Other Expenses to 0.20% of average daily
net assets
Limit Other Expenses to 0.20% of average daily
net assets
AIM Moderate Allocation Fund
Class A Limit Other Expenses to 0.05% of average daily January 1, 2005 December 31, 2005
Class B net assets December 31, 2005
Class C Limit Other Expenses to 0.05% of average daily December 31, 2005
Class R net assets December 31, 2005
Institutional Class Limit Other Expenses to 0.05% of average daily December 31, 2005
net assets
Limit Other Expenses to 0.05% of average daily
net assets
Limit Other Expenses to 0.05% of average daily
net assets
Other Expenses are defined as all normal operating expenses of the fund,
excluding management fees and 12b-1 expenses. The expense limitation is subject
to the exclusions as listed in the Memorandum of Agreement.
