FEE WAIVER AGREEMENT
American Express Financial Corporation ("AEFC") and American Express Client
Service Corporation ("AECSC") agree to waive fees and reimburse certain expenses
for AXP International Equity Index Fund, AXP Mid Cap Index Fund, AXP Nasdaq 100
Index Fund, AXP S&P 500 Index Fund and AXP Total Stock Market Index Fund, each a
series of AXP Market Advantage Series, Inc., (individually a "Fund" and
collectively the "Funds") as described below.
1. Applicable Agreements. To the extent that a Fund's total expenses exceed
the expense ratios set out in paragraph 2, AEFC and AECSC agree to waive
fees and reimburse certain expenses under the following agreements:
o Investment Management Services Agreement between the Funds and
AEFC dated September 9, 1999
o Administrative Services Agreement between the Funds and AEFC
dated September 9, 1999
o Transfer Agency Services Agreement between the Funds and AECSC
dated September 9, 1999
AEFC also agrees to pay certain non-advisory expenses of the Funds if
necessary to meet the expense ratio limits set out in paragraph 2. AEFC
will determine the allocation of fee waivers and expense reimbursements
among the applicable agreements.
2. Fee Caps. AEFC and AECSC agree to waive fees and reimburse certain expenses
to the extent that total expenses exceed the following expense ratios:
Fund Class D Cap Class E Cap
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AXP International Equity Index Fund 0.89% 0.64%
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AXP Mid Cap Index Fund 0.70% 0.45%
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AXP Nasdaq 100 Index Fund 0.79% 0.54%
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AXP S&P 500 Index Fund 0.64% 0.39%
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AXP Total Stock Market Index Fund 0.74% 0.49%
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3. Termination. This agreement will terminate on January 31, 2001 unless
extended as to any Fund by written agreement of that Fund and AEFC.
This agreement is dated as of the 9th day of September, 1999.
AXP Market Advantage Series, Inc.
AXP International Equity Index Fund
AXP Mid Cap Index Fund
AXP Nasdaq 100 Index Fund
AXP S&P 500 Index Fund
AXP Total Stock Market Index Fund
By: /s/ Xxxxxx X. Xxx
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Xxxxxx X. Xxx
Vice President
AMERICAN EXPRESS FINANCIAL CORPORATION
By: /s/ Xxxxxx X. Xxxxx
--------------------
Xxxxxx X. Xxxxx
Vice President
AMERICAN EXPRESS CLIENT SERVICE CORPORATION
By: /s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
President
