EXHIBIT h(7)
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into as of this 17th day of
December, 1999 between Short-Term Investments Co. (the "Company"), on behalf of
the funds listed on Exhibit "A" to this Memorandum of Agreement (the "Funds"),
and Fund Management Company. ("FMC").
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 Company and FMC agree as follows:
The Company and FMC agree until the date set forth on the attached Exhibit
"A" that FMC will limit Rule 12b-1 distribution plan payments at the rates set
forth on Exhibit "A" of the average daily net assets allocable to such class.
Neither the Company nor FMC may remove or amend the limits to the Company's
detriment prior to the date set forth on Exhibit "A." FMC will not have any
right to reimbursement of any amount so limited.
The Company and FMC agree to review the then-current limits for each class
of each Fund listed on Exhibit "A" on a date prior to the date listed on that
Exhibit to determine whether such limits should be amended, continued or
terminated. Unless the Company, by vote of its Board of Directors, or FMC
terminates the limits, or the Company and FMC are unable to reach an agreement
on the amount of the limits to which the Company and FMC desire to be bound, the
limits will continue for additional one-year terms at the rate to which the
Company and FMC mutually agree. Exhibit "A" will be amended to reflect that
rate and the new date through which the Company and FMC agree to be bound.
IN WITNESS WHEREOF, the Company and FMC have entered into this Memorandum
of Agreement as of the date first above written.
Short-Term Investments Co.,
on behalf of each Fund listed in Exhibit "A"
to this Memorandum of Agreement
By:________________________________
Title:_______________________________
Fund Management Company
By: ______________________________
Title: ______________________________
EXHIBIT "A"
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SHORT-TERM INVESTMENTS CO.
FUND LIMITATION COMMITTED UNTIL
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Liquid Assets Portfolio
Cash Management Class 0.08% June 30, 2000
Resource Class 0.20% June 30, 2000
Private Investment Class 0.30% June 30, 2000
Personal Investment Class 0.50% June 30, 2000
Reserve Class 0.80% June 30, 2000
Prime Portfolio
Cash Management Class 0.08% June 30, 2000
Resource Class 0.16% June 30, 2000
Private Investment Class 0.30% June 30, 2000
Personal Investment Class 0.50% June 30, 2000
Reserve Class 0.80% June 30, 2000
