PLAN AND AGREEMENT OF DISTRIBUTION
This Plan and Agreement of Distribution ("Plan") is between AXP(R) Variable
Portfolio - Income Series, Inc., on behalf of its series of capital stock,
AXP(R) Variable Portfolio - Core Bond Fund, a registered management investment
company, (the "Fund"), and IDS Life Insurance Company ("IDS Life"). It is
effective July 10, 2003.
The Plan provides that:
1. IDS Life will purchase the Fund's shares on behalf of its separate
accounts and the separate accounts of its affiliated life insurance
companies established for the purpose of funding variable life
insurance, annuity contracts or both (collectively referred to as
"Variable Contracts"). Additionally, IDS Life may offer the Fund's
shares to one or more unaffiliated life insurance companies
("Unaffiliated Life Companies") for purchase on behalf of certain of
their separate accounts established for the purpose of funding Variable
Contracts.
2. The Fund will reimburse IDS Life up to 0.125% of its daily net assets
for various costs paid and accrued in connection with the distribution
of the Fund's shares and for services provided to existing and
prospective Variable Contract owners. Payments under the Plan are based
on budgeted expenses and shall be made within five (5) business days
after the last day of each month. At the end of each calendar year, IDS
Life shall furnish a declaration setting out the actual expenses it has
paid and accrued. Any money that has been paid in excess of the amount
of these expenses shall be returned to the Fund.
3. IDS Life represents that the money paid by the Fund will benefit the
Variable Contract owners and not the separate accounts that legally own
the shares and be for the following:
(a) Printing and mailing prospectuses, Statements of Additional
Information, supplements, and reports to existing and prospective
Variable Contract owners;
(b) Preparation and distribution of advertisement, sales literature,
brokers' materials and promotional materials relating to the
Fund;
(c) Presentation of seminars and sales meetings describing or
relating to the Fund;
(d) Training sales personnel regarding the Fund;
(e) Compensation of sales personnel for sale of the Fund's shares;
(f) Compensation of sales personnel for assisting Variable Contract
owners with respect to the Fund shares;
(g) Overhead of IDS Life and its affiliates appropriately allocated
to the promotion of sale of the Fund's shares; and
(h) Any activity primarily intended to result in the sale of the
Fund's shares,
including payments to Unaffiliated Life Companies.
4. IDS Life shall provide all information relevant and necessary for the
Board to make informed determinations about whether the Plan should be
continued and shall:
(a) Submit quarterly a report that sets out the expenses paid or
accrued by it, the names of the Unaffiliated Life Companies to
whom the Fund's shares are sold, and the payments made to each
Unaffiliated Life Company that has been reimbursed;
(b) monitor the level and quality of services provided by it and all
affiliated companies and will use its best efforts to assure that
in each case legitimate services are rendered in return for the
reimbursement pursuant to the Plan; and
(c) meet with the Fund's representatives, as reasonably requested, to
provide additional information.
5. IDS Life represents that it and all affiliated insurance company
sponsors will provide full disclosure of the Fund's 12b-1 Plan in the
prospectus for any separate account investing in the Fund and will
clearly communicate the combined effect of all fees and costs,
including the reimbursement under the 12b-1 Plan, imposed by the
separate account and the Fund in accordance with applicable laws.
6. All payments by IDS Life to Unaffiliated Life Companies shall be made
pursuant to a written agreement (Related Agreement). All such written
agreements will be in a form approved by a majority of the Fund's
independent members of the board and the board as a whole before it
shall be used. The Related Agreement shall:
(a) Require full disclosure of the combined effect of all fees and
charges in accordance with applicable laws;
(b) provide for termination at any time without penalty as required
by Rule 12b-1; and
(c) continue so long as its continuance is done in accordance with
the requirements of Rule 12b-1.
7. The Fund represents that the Plan has been approved as required by Rule
12b-1 and may continue for more than one year so long as it is
continued as required by Rule 12b-1 and shall terminate automatically
in the event of an assignment.
8. The Plan may not be amended to materially increase the amount of the
payments without the approval of the outstanding voting securities.
AXP(R) VARIABLE PORTFOLIO - INCOME SERIES, INC.
AXP(R) Variable Portfolio - Core Bond Fund
/s/ Xxxxxx X. Xxx
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Xxxxxx X. Xxx
Vice President
IDS LIFE INSURANCE COMPANY
/s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
Director and Executive Vice President - Annuities
