SUB-ITEM 77Q1(e)
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into as of this 30th day of
April 2004 between AIM Investment Securities Funds (the "Trust"), on behalf of
the funds listed on Exhibit "A" to this Memorandum of Agreement (the "Funds"),
and A I M Advisors, Inc. ("AIM").
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 Trust and AIM agree as follows:
The Trust and AIM agree until the date set forth on the attached
Exhibit "A" that AIM will waive its fees or reimburse expenses to the extent
that expenses (excluding interest, taxes, dividends on short sales, fund merger
and reorganization expenses, extraordinary items, including other items
designated as such by the Board of Trustees, and increases in expenses due to
expense offset arrangements, if any) of a class of a Fund exceed the rate, on
an annualized basis, set forth on Exhibit "A" 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 date set forth on Exhibit "A" only by
mutual written consent. AIM will not have any right to reimbursement of any
amount so waived or reimbursed.
The Trust and AIM agree to review the then-current waivers or expense
limitations 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 waivers or
limitations should be amended, continued or terminated. Unless the Trust, by
vote of its Board of Trustees, or AIM terminates the waivers or limitations, or
the Trust and AIM are unable to reach an agreement on the amount of the waivers
or limitations to which the Trust and AIM desire to be bound, the waivers or
limitations will continue for additional one-year terms at the rate to which
the Trust and AIM mutually agree. Exhibit "A" will be amended to reflect that
rate and the new date through which the Trust and AIM agree to be bound.
It is expressly agreed that the obligations of the Trust hereunder
shall not be binding upon any of the Trustees, shareholders, nominees,
officers, agents or employees of the Trust personally, but shall only bind the
assets and property of the Funds, as provided in the Trust's Agreement and
Declaration of Trust. The execution and delivery of this Memorandum of
Agreement have been authorized by the Trustees of the Trust, and this
Memorandum of Agreement has been executed and delivered by an authorized
officer of the Trust 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 the Trust's Agreement and Declaration of Trust.
IN WITNESS WHEREOF, the Trust and AIM have entered into this
Memorandum of Agreement as of the date first above written.
AIM Investment Securities Funds,
on behalf of each Fund 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
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Title: President
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EXHIBIT "A"
AIM INVESTMENT SECURITIES FUNDS
FUND EXPENSE LIMITATION COMMITTED UNTIL
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AIM Short Term Bond Fund
Class A 0.95% July 31, 2004
Class R 1.10% July 31, 2004
Institutional Class 0.60% July 31, 2004
AIM Total Return Bond Fund
Class R (See Note 1 below) July 31, 2004
Institutional Class (See Note 1 below) July 31, 2004
NOTE 1: The amount equal to Total Annual Fund Operating Expenses
(as calculated in the Fund's financial statements less
expense exclusions listed in the Memorandum of Agreement)
less the basis point amounts necessary to limit Class A
shares' Total Annual Fund Operating Expenses to 1.25%.
