EXHIBIT h(4)
MEMORANDUM OF AGREEMENT
This Memorandum of Agreement is entered into as of this 1st day of
July, 2003, between AIM Investment 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 the expenses (excluding interest, taxes, dividend expense 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 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 limitations should be amended,
continued or terminated. Unless the Trust, by vote of its Board of Trustees, or
AIM terminates the limitations, or the Trust and AIM are unable to reach an
agreement on the amount of the limitations to which the Trust and AIM desire to
be bound, the 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 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 FUNDS
FUND EXPENSE LIMITATION COMMITTED UNTIL
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AIM Developing Markets Fund
Class A 2.00% October 31, 2004
Class B (See Note 1 below) October 31, 2004
Class C (See Note 1 below) October 31, 2004
AIM Global Energy Fund
Class A 2.00% October 31, 2004
Class B 2.50% October 31, 2004
Class C 2.50% October 31, 2004
AIM Global Science and Technology Fund
Class A 2.00% October 31, 2004
Class B 2.50% October 31, 2004
Class C 2.50% October 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 2.00%.
