Sub Item 77Q1(e)
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into as of this 1st day of
January, 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 (each a "Trust" or, collectively, the "Trusts"), on
behalf of the funds listed on Exhibit "A" and "B" (the "Exhibits") to this
Memorandum of Agreement (the "Funds"), and A I M Advisors, Inc. ("AIM"). This
Memorandum of Agreement restates the Memorandum of Agreement dated November 1,
2004 between AIM Equity Funds, AIM International Mutual Funds and AIM
Investment Funds and A I M Advisors, Inc. 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;
(vi) expenses that each Fund has incurred but did not actually pay because of
an expense offset arrangement) and (vii) excluding Rule 12b-1 fees, 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
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Title: President
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A I M Advisors, Inc.
By: /s/ Xxxx X. Xxxxxxxxxx
-------------------------------------------
Title: President
-------------------------------------------
2
EXHIBIT "A"
FUNDS WITH FISCAL YEAR END OF MARCH 31
--------------------------------------
AIM SECTOR FUNDS
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Energy Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Class K Shares 2.10% March 31, 2005
Investor Class Shares 1.90% March 31, 2005
AIM Financial Services Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Class K Shares 2.10% March 31, 2005
Investor Class Shares 1.90% March 31, 2005
AIM Gold & Precious Metals Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Investor Class Shares 1.90% March 31, 2005
AIM Health Sciences Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Class K Shares 2.10% March 31, 2005
Investor Class Shares 1.90% March 31, 2005
AIM Leisure Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Class K Shares 2.10% March 31, 2005
Investor Class Shares 1.90% March 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.
3
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Technology Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Class K Shares 2.10%* March 31, 2005
Investor Class Shares 1.90%* March 31, 2005
AIM Utilities Fund(1)
Class A Shares 2.00% March 31, 2005
Class B Shares 2.65% March 31, 2005
Class C Shares 2.65% March 31, 2005
Investor Class Shares 1.90% March 31, 2005
* Due to previously established arrangements, A I M Advisors, Inc. has
committed through November 23, 2004 to limit the expenses of Class K
and Investor Class shares to 1.95% and 1.77%, respectively. The
expense limitations noted above for Class K and Investor Class shares
will commence effective November 24, 2004.
FUNDS WITH FISCAL YEAR END OF JULY 31
-------------------------------------
AIM INVESTMENT SECURITIES FUNDS
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Short Term Bond Fund(1)
Class A Shares 0.85% July 31, 2005
Class C Shares 1.20% 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% 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.
4
AIM STOCK FUNDS
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Dynamics Fund(1)
Class A Shares 2.00% 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% 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% 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 EXPIRATION DATE
---- ------------------ ---------------
AIM Core Stock Fund(1)
Class A Shares 2.00% 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.
5
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Total Return Fund(1)
Class A Shares 2.00% 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 EXPIRATION DATE
---- ------------------ ---------------
AIM Multi-Sector Fund(1)
Class A Shares 2.00% 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 EXPIRATION DATE
---- ------------------ ---------------
AIM Diversified Dividend Fund(1)
Class A Shares 1.50% 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.
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AIM INTERNATIONAL MUTUAL FUNDS
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM International Core Equity Fund(1)
Class A Shares 2.10% 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 EXPIRATION DATE
---- ------------------ ---------------
AIM Developing Markets Fund(1)
Class A Shares 2.00% 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% 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% 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% 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.
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FUNDS WITH FISCAL YEAR END OF DECEMBER 31
-----------------------------------------
AIM FUNDS GROUP
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM European Small Company Fund(1)
Class A 2.00% 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% 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% December 31, 2005
Class B 2.65% December 31, 2005
Class C 2.65% December 31, 2005
AIM GROWTH SERIES
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Global Equity Fund(1)
Class A Shares 2.00% 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.
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EXHIBIT "B"
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AIM GROWTH SERIES
FUND EXPENSE LIMITATION EXPIRATION DATE
---- ------------------ ---------------
AIM Aggressive Allocation Fund
Class A Limit Other Expenses to 0.17% of average daily net assets December 31, 2005
Class B Limit Other Expenses to 0.17% of average daily net assets December 31, 2005
Class C Limit Other Expenses to 0.17% of average daily net assets December 31, 2005
Class R Limit Other Expenses to 0.17% of average daily net assets December 31, 2005
Institutional Class Limit Other Expenses to 0.17% of average daily net assets December 31, 2005
AIM Conservative Allocation Fund
Class A Limit Other Expenses to 0.20% of average daily net assets December 31, 2005
Class B Limit Other Expenses to 0.20% of average daily net assets December 31, 2005
Class C Limit Other Expenses to 0.20% of average daily net assets December 31, 2005
Class R Limit Other Expenses to 0.20% of average daily net assets December 31, 2005
Institutional Class Limit Other Expenses to 0.20% of average daily net assets December 31, 2005
AIM Moderate Allocation Fund
Class A Limit Other Expenses to 0.05% of average daily net assets December 31, 2005
Class B Limit Other Expenses to 0.05% of average daily net assets December 31, 2005
Class C Limit Other Expenses to 0.05% of average daily net assets December 31, 2005
Class R Limit Other Expenses to 0.05% of average daily net assets December 31, 2005
Institutional Class Limit Other Expenses to 0.05% of average daily net assets December 31, 2005
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.
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