EXHIBIT h(5)
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into as of this 1st day of
July, 2003 between AIM Investment Securities Funds (the "Trust"), on behalf of
the fund listed on Exhibit "A" to this Memorandum of Agreement (the "Funds"),
and A I M Distributors, Inc. ("Distributors").
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 Distributors agree as follows:
The Trust and Distributors agree until the date set forth on the
attached Exhibit "A" that Distributors will waive Rule 12b-1 distribution plan
payments at the rates, 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. Distributors will not have any
right to reimbursement of any amount so waived.
The Trust and Distributors agree to review the then-current waivers 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 should be amended, continued
or terminated. Unless the Trust, by vote of its Board of Trustees, or
Distributors terminates the waivers, or the Trust and Distributors are unable to
reach an agreement on the amount of the waivers to which the Trust and
Distributors desire to be bound, the waivers will continue for additional
one-year terms at the rate to which the Trust and Distributors mutually agree.
Exhibit "A" will be amended to reflect that rate and the new date through which
the Trust and Distributors 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 Distributors 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 Distributors, Inc.
By: /s/ Xxxx X. Xxxxxxxxxx
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Title: President
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EXHIBIT "A"
AIM INVESTMENT SECURITIES FUNDS
FUND WAIVER COMMITTED UNTIL
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AIM Short Term Bond Fund
Class C 0.40% of Rule 12b-1 distribution plan July 31, 2004
payments on average net assets
AIM Total Return Bond Fund
Class A Up to 0.10% of Rule 12b-1 July 31, 2004
distribution plan payments on average
net assets
