FEE WAIVER AGREEMENT
American Express Financial Corporation ("AEFC") and American Express Client
Service Corporation ("AECSC") agree to waive fees and reimburse certain expenses
and AXP Mid Cap Value Fund (the "Fund"), a series of AXP Investment Series,
Inc., agrees to accept those waivers and reimbursements, as described below:
1. Applicable Agreements. To the extent that the 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 Fund and AEFC
dated December 1, 2002.
o Administrative Services Agreement between the Fund and AEFC dated
January 10, 2002.
o Transfer Agency Services Agreement between the Fund and AECSC dated
[insert date of current agreement].
AEFC also agrees to pay certain non-advisory expenses of the Fund 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:
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Fund Class A Class B Class C Class I Class Y
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AXP Mid Cap Value 1.40% 2.16% 2.16% 0.77% 1.22%
Fund
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3. Termination. This agreement will terminate on September 30, 2004 unless
extended by written agreement of that Fund and AEFC.
This agreement is dated as of the 1st day of October, 2003.
AXP Investment Series, Inc.
AXP Mid Cap Value Fund
By: /s/ Xxxxxx X. Xxx
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Xxxxxx X. Xxx
Vice President
AMERICAN EXPRESS FINANCIAL CORPORATION
By: /s/ Xxxxx X. Xxxxx
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Xxxxx X. Xxxxx
Senior Vice President and General Manager- Mutual Funds
AMERICAN EXPRESS CLIENT SERVICE CORPORATION
By: /s/ Xxxxxxx Xxxxx
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Xxxxxxx Xxxxx
Senior Vice President
