PLAN AND AGREEMENT OF DISTRIBUTION
(Class C)
The Plan of Distribution ("Plan") and Agreement of Distribution ("Agreement"),
dated as of October 1, 2005 (together "Plan and Agreement"), is by and between
Ameriprise Financial Services, Inc. ("Ameriprise Financial Services"), a
Delaware corporation and the principal underwriter of the Funds, for
distribution services to the Funds, and the Corporations ("Registrants") listed
in Schedule A, each on behalf of its underlying series. The terms "Fund" or
"Funds" are used to refer to either the Registrants or the underlying series as
context requires.
The Plan and Agreement are separate and each has been approved by members of the
Board of Directors (the "Board") of the Funds who are not interested persons of
the Funds and have no direct or indirect financial interest in the operation of
the Plan and Agreement, or any related agreement, and all of the members of the
Board, in person, at a meeting called for the purpose of voting on the Plan and
Agreement.
The Plan and Agreement provide that:
1. The Funds will reimburse Ameriprise Financial Services for expenses
incurred in connection with distributing the Funds' shares and providing
personal service to shareholders. These expenses include sales commissions;
business, employee and financial advisor expenses charged to distribution
of Class C shares; and overhead appropriately allocated to the sale of
Class C shares.
2. A portion of the fee under the Agreement will be used to compensate
Ameriprise Financial Services, financial advisors and other servicing
agents for personal service to shareholders. Fees paid will be used to help
shareholders thoughtfully consider their investment goals and objectively
monitor how well the goals are being achieved.
3. Ameriprise Financial Services agrees to monitor the services it provides,
to measure the level and quality of services and to provide training and
support to financial advisors and servicing agents. Ameriprise Financial
Services will use its best efforts to assure that other distributors
provide comparable services to shareholders.
4. The fee under this Agreement will be equal on an annual basis to 1.00% of
the average daily net assets of the Funds attributable to Class C shares.
Of that amount, 0.75% shall be reimbursed for distribution expenses. The
amount so determined shall be paid to Ameriprise Financial Services in cash
within five (5) business days after the last day of each month. The
additional 0.25% shall be paid to Ameriprise Financial Services to
compensate Ameriprise Financial Services, financial advisors and servicing
agents for personal service to shareholders and maintenance of shareholder
accounts. The amount so determined shall be paid to Ameriprise Financial
Services in cash within five (5) business days after the last day of each
quarter.
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5. The Funds understand that if a shareholder redeems Class C shares in the
first year of ownership, Ameriprise Financial Services will impose a sales
charge directly on the redemption proceeds to cover those expenses it has
previously incurred on the sale of those shares.
6. Ameriprise Financial Services agrees to provide at least quarterly an
analysis of expenses under this Agreement and to meet with representatives
of the Funds as reasonably requested to provide additional information.
7. Each of the Plan and Agreement shall continue in effect for a period of
more than one year provided it is reapproved at least annually in the same
manner in which it was initially approved.
8. Neither, the Plan nor the Agreement may not be amended to increase
materially the amount that may be paid by the Funds without the approval of
a least a majority of the outstanding shares of the relevant class. Any
other amendment to the Plan or the Agreement must be approved in the manner
in which the Plan or Agreement was initially approved.
9. This Agreement may be terminated at any time without payment of any penalty
by a vote of a majority of the members of the Board who are not interested
persons of the Funds and have no financial interest in the operation of the
Plan and Agreement, or by vote of a majority of the outstanding shares of
the relevant class, or by Ameriprise Financial Services. The Plan shall
continue until terminated by action of the members of the Funds' Board who
are not interested persons of the Funds and have no direct or indirect
financial interest in the operations of the Plan, and the related Agreement
will terminate automatically in the event of its assignment as that term is
defined in the Investment Company Act of 1940.
10. This Plan and Agreement shall be governed by the laws of the State of
Minnesota.
AXP CALIFORNIA TAX-EXEMPT TRUST
AXP DIMENSIONS SERIES, INC.
AXP DISCOVERY SERIES, INC.
AXP EQUITY SERIES, INC.
AXP FIXED INCOME SERIES, INC.
AXP GLOBAL SERIES, INC.
AXP GOVERNMENT INCOME SERIES, INC.
AXP GROWTH SERIES, INC.
AXP HIGH YIELD INCOME SERIES, INC.
AXP HIGH YIELD TAX-EXEMPT SERIES, INC.
AXP INCOME SERIES, INC.
AXP INTERNATIONAL SERIES, INC.
AXP INVESTMENT SERIES, INC.
AXP MANAGED SERIES, INC.
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AXP MONEY MARKET SERIES, INC.
AXP PARTNERS INTERNATIONAL SERIES, INC.
AXP PARTNERS SERIES, INC.
AXP SECTOR SERIES, INC.
AXP SELECTED SERIES, INC.
AXP SPECIAL TAX-EXEMPT SERIES TRUST
AXP STOCK SERIES, INC.
AXP STRATEGY SERIES, INC.
AXP TAX-EXEMPT SERIES, INC.
/s/ Xxxxxx X. Xxx
---------------------------
Xxxxxx X. Xxx
Vice President
AMERIPRISE FINANCIAL SERVICES, INC.
/s/ Xxxxx X. Xxxxx
--------------------------
Xxxxx X. Xxxxx
Senior Vice President and General Manager - Mutual Funds
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Schedule A
Funds
Each a Minnesota corporation, except California Tax-Exempt Trust and Special
Tax-Exempt Series Trust, which are Massachusetts business trusts:
AXP CALIFORNIA TAX-EXEMPT TRUST AXP MANAGED SERIES, INC.
RiverSource California Tax-Exempt Fund RiverSource Strategic Allocation Fund
AXP DIMENSIONS SERIES, INC. AXP MONEY MARKET SERIES, INC.
RiverSource New Dimensions Fund RiverSource Cash Management Fund
AXP DISCOVERY SERIES, INC. AXP PARTNERS INTERNATIONAL SERIES, INC.
RiverSource Discovery Fund RiverSource International Aggressive Growth Fund
AXP EQUITY SERIES, INC. RiverSource International Equity Fund
RiverSource Mid Cap Growth Fund RiverSource International Select Value Fund
AXP FIXED INCOME SERIES, INC. RiverSource International Small Cap Fund
RiverSource Diversified Bond Fund AXP PARTNERS SERIES, INC.
AXP GLOBAL SERIES, INC. RiverSource Aggressive Growth Fund
RiverSource Emerging Markets Fund RiverSource Fundamental Growth Fund
RiverSource Global Balanced Fund RiverSource Fundamental Value Fund
RiverSource Global Bond Fund RiverSource Select Value Fund
RiverSource Global Equity Fund RiverSource Small Cap Equity Fund
RiverSource Global Technology Fund RiverSource Small Cap Value Fund
AXP GOVERNMENT INCOME SERIES, INC. RiverSource Value Fund
RiverSource Short Duration U.S. Government Fund AXP SECTOR SERIES, INC.
RiverSource U.S. Government Mortgage Fund RiverSource Dividend Opportunity Fund
AXP GROWTH SERIES, INC. AXP SELECTED SERIES, INC.
RiverSource Disciplined Equity Fund RiverSource Precious Metals Fund
RiverSource Growth Fund AXP SPECIAL TAX-EXEMPT SERIES TRUST
RiverSource Large Cap Equity Fund RiverSource Insured Tax-Exempt Fund
RiverSource Large Cap Value Fund RiverSource Massachusetts Tax-Exempt Fund
AXP HIGH YIELD INCOME SERIES, INC. RiverSource Michigan Tax-Exempt Fund
RiverSource High Yield Bond Fund RiverSource Minnesota Tax-Exempt Fund
AXP HIGH YIELD TAX-EXEMPT SERIES, INC. RiverSource New York Tax-Exempt Fund
RiverSource Tax-Exempt High Income Fund RiverSource Ohio Tax-Exempt Fund
AXP INCOME SERIES, INC. AXP STOCK SERIES, INC.
RiverSource Selective Fund RiverSource Stock Fund
AXP INTERNATIONAL SERIES, INC. AXP STRATEGY SERIES INC.
RiverSource European Equity Fund RiverSource Equity Value Fund
RiverSource International Opportunity Fund RiverSource Small Cap Advantage Fund
AXP INVESTMENT SERIES, INC. RiverSource Small Cap Growth Fund
RiverSource Balanced Fund RiverSource Strategy Aggressive Fund
RiverSource Diversified Equity Income Fund AXP TAX-EXEMPT SERIES, INC.
RiverSource Mid Cap Value Fund RiverSource Intermediate Tax-Exempt Fund
RiverSource Tax-Exempt Bond Fund
