MEMORANDUM OF AGREEMENT
(ADVISORY FEE WAIVERS)
This Memorandum of Agreement is entered into as of the effective date on
the attached Exhibit (the "Exhibit"), between AIM Equity Funds, AIM Funds Group,
AIM Investment Funds, AIM Sector Funds, AIM Treasurer's Series Trust and AIM
Variable Insurance Funds (each a "Trust" or, collectively, the "Trusts"), on
behalf of the funds listed on the Exhibit to this Memorandum of Agreement (the
"Funds"), and Invesco Aim Advisors, Inc. ("Invesco Aim"). Invesco Aim shall and
hereby agrees to waive fees of the Funds, on behalf of their respective classes
as applicable, severally and not jointly, as indicated in the Exhibit.
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 that until at least the
expiration date set forth on the Exhibit (the "Expiration Date") and with
respect to those Funds listed on the Exhibit. Invesco Aim will waive its
advisory fees at the rate set forth on the Exhibit.
The Boards of Trustees and Invesco Aim may terminate or modify this
Memorandum of Agreement prior to the Expiration Date only by mutual written
consent. Invesco Aim will not have any right to reimbursement of any amount so
waived or reimbursed.
Subject to the foregoing paragraphs, each of the Trusts and Invesco Aim
agree to review the then-current waivers for each class of the Funds listed on
the Exhibit on a date prior to the Expiration Date to determine whether such
waivers should be amended, continued or terminated. The waivers will expire upon
the Expiration Date unless the Trusts and Invesco Aim have agreed to continue
them. The Exhibit will be amended to reflect any such agreement.
It is expressly agreed that the obligations of the Trusts 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 the Funds, 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 each Trust, and this Memorandum of Agreement has
been executed and delivered by an authorized officer of each 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 each Trust's
Agreement and Declaration of Trust.
1
IN WITNESS WHEREOF, each of the Trusts and Invesco Aim have entered into this
Memorandum of Agreement as of the Effective Date on the attached Exhibit.
AIM EQUITY FUNDS
AIM FUNDS GROUP
AIM INVESTMENT FUNDS
AIM SECTOR FUNDS
AIM TREASURER'S SERIES TRUST
AIM VARIABLE INSURANCE FUNDS
on behalf of the Funds listed in the
Exhibit to this Memorandum of Agreement
By: /s/ Xxxx X. Xxxx
------------------------------------
Title: Senior Vice President
INVESCO AIM ADVISORS, INC.
By: /s/ Xxxx X. Xxxx
------------------------------------
Title: Senior Vice President
2
EXHIBIT TO ADVISORY FEE MOA
AIM EQUITY FUNDS WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
---------------- ----------------------------------------------- -------------- ---------------
AIM Charter Fund Invesco Aim will waive advisory fees to the 1/1/2005 12/31/2012
extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.75% of the first $150M
0.615% of the next $4.85B
0.57% of the next $2.5B
0.545% of the next $2.5B
0.52% of the excess over $10B
AIM Constellation Fund Invesco Aim will waive advisory fees to the 3/27/2006 12/31/2012
extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.695% of the first $250M
0.615% of the next $4B
0.595% of the next $750M
0.57% of the next $2.5B
0.545% of the next $2.5B
0.52% of the excess over $10B
AIM FUNDS GROUP WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
---------------- ----------------------------------------------- -------------- ---------------
AIM Basic Balanced Fund Invesco Aim will waive advisory fees to the 1/1/2005 12/31/2012
extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.62% of the first $250M
0.605% of the next $250M
0.59% of the next $500M
0.575% of the next $1.5B
0.56% of the next $2.5B
0.545% of the next $2.5B
0.53% of the next $2.5B
0.515% of the excess over $10B
3
AIM INVESTMENT FUNDS WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
-------------------- ----------------------------------------------- -------------- ---------------
AIM Global Health Care Fund Invesco Aim will waive advisory fees to the 1/1/2005 12/31/2009
extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.75% of the first $250M
0.74% of the next $250M
0.73% of the next $500M
0.72% of the next $1.5B
0.71% of the next $2.5B
0.70% of the next $2.5B
0.69% of the next $2.5B
0.68% of the excess over $10B
AIM SECTOR FUNDS WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
---------------- ----------------------------------------------- -------------- ---------------
AIM Gold & Precious Metals Invesco Aim will waive advisory fees to the 1/1/2005 6/30/2009
Fund extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.75% of the first $250M
0.74% of the next $250M
0.73% of the next $500M
0.72% of the next $1.5B
0.71% of the next $2.5B
0.70% of the next $2.5B
0.69% of the next $2.5B
0.68% of the excess over $10B
4
AIM TREASURER'S SERIES TRUST WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
---------------------------- ----------------------------------------------- -------------- ---------------
Premier Portfolio Invesco Aim will waive advisory fees in the 2/25/2005 6/30/2009
amount of 0.08% of the Fund's average daily net
assets
Premier U.S. Government Money Invesco Aim will waive advisory fees in the 2/25/2005 6/30/2009
Portfolio amount of 0.08% of the Fund's average daily net
assets
AIM VARIABLE INSURANCE FUNDS WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
---------------------------- ----------------------------------------------- -------------- ---------------
AIM V. I. Basic Balanced Fund Invesco Aim will waive advisory fees to the 1/1/2005 12/31/2009
extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.62% of the first $150M
0.50% of the next $4.85B
0.475% of the next $5B
0.45% of the excess over $10B
AIM V. I. Capital Appreciation Invesco Aim will waive advisory fees to the 5/1/2006 12/31/2009
Fund extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.695% of the first $250M
0.625% of the next $750M
0.62% of the next $1.5B
0.595% of the next $2.5B
0.57% of the next $2.5B
0.545% of the next $2.5B
0.52% of the excess over $10B
5
AIM VARIABLE INSURANCE
FUNDS - CONTINUED WAIVER DESCRIPTION EFFECTIVE DATE EXPIRATION DATE
---------------------- ----------------------------------------------- -------------- ---------------
AIM V. I. Capital Development Invesco Aim will waive advisory fees to the 1/1/2005 4/30/2010
Fund extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.745% of the first $250M
0.73% of the next $250M
0.715% of the next $500M
0.70% of the next $1.5B
0.685% of the next $2.5B
0.67% of the next $2.5B
0.655% of the next $2.5B
0.64% of the excess over $10B
AIM V. I. Core Equity Fund Invesco Aim will waive advisory fees to the 1/1/2005 12/31/2009
extent necessary so that advisory fees Invesco
Aim receives do not exceed the annualized rates
listed below.
0.695% of the first $250M
0.67% of the next $250M
0.645% of the next $500M
0.62% of the next $1.5B
0.595% of the next $2.5B
0.57% of the next $2.5B
0.545% of the next $2.5B
0.52% of the excess over $10B
6
