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Shareholder Service Agreement
This agreement is between IDS Special Tax-Exempt Series Trust (the "Trust), on
behalf of its underlying series funds and American Express Financial Advisors
Inc., the principal underwriter of the Trust, for services to be provided to
shareholders by personal financial advisors and other servicing agents. It is
effective on the first day the Trust offers multiple classes of shares.
American Express Financial Advisors represents that shareholders consider their
financial advisor or servicing agent a significant factor in their satisfaction
with their investment and, to help retain financial advisors or servicing
agents, it is necessary for the Trust to pay annual servicing fees to financial
advisors and other servicing agents.
American Express Financial Advisors represents that fees paid to financial
advisors will be used by financial advisors to help shareholders thoughtfully
consider their investment goals and objectively monitor how well the goals are
being achieved. As principal underwriter, American Express Financial Advisors
will use its best efforts to assure that other distributors provide comparable
services to shareholders for the servicing fees received.
American Express Financial Advisors agrees to monitor the services provided by
financial advisors and servicing agents, to measure the level and quality of
services provided, to provide training and support to financial advisors and
servicing agents and to devise methods for rewarding financial advisors and
servicing agents who achieve an exemplary level and quality of services.
The Trust agrees to pay American Express financial advisors and other servicing
agents 0.15 percent of the net asset value for each shareholder account assigned
to a financial advisor or servicing agent that holds either Class A or Class B
shares. In addition, the Trust agrees to pay American Express Financial
Advisors' costs to monitor, measure, train and support services provided by
financial advisors or servicing agents up to 0.025 percent of the net asset
value for each shareholder account assigned to a financial advisor or servicing
agent that holds either Class A or Class B shares. The Trust agrees to pay
American Express Financial Advisors in cash within five (5) business days after
the last day of each month.
American Express Financial Advisors agrees to provide the Trust, prior to the
beginning of the calendar year, a budget covering its expected costs to monitor,
measure, train and support services and a quarterly report of its actual
expenditures. American Express Financial Advisors agrees to meet with
representatives of the Trust at their request to provide information as may be
reasonably necessary to evaluate its performance under the terms of this
agreement.
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American Express Financial Advisors agrees that if, at the end of any month, the
expenses of the Trust, including fees under this agreement and any other
agreement between the Trust and American Express Financial Advisors or American
Express Financial Corporation, but excluding taxes, brokerage commissions and
charges in connection with the purchase and sale of assets exceed the most
restrictive applicable state expense limitation for the Trust's current fiscal
year, the Trust shall not pay fees and expenses under this agreement to the
extent necessary to keep the Trust's expenses from exceeding the limitation, it
being understood that American Express Financial Advisors will assume all unpaid
expenses and xxxx the Trust for them in subsequent months but in no event can
the accumulation of unpaid expenses or billing be carried past the end of the
Trust's fiscal year.
This agreement shall continue in effect for a period of more than one year so
long as it is reapproved at least annually at a meeting called for the purpose
of voting on the agreement by a vote, in person, of the members of the Board who
are not interested persons of the Trust and have no financial interest in the
operation of the agreement, and of all the members of the Board.
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 Trust and have no financial interest in the operation of the agreement or by
American Express Financial Advisors. The agreement will terminate automatically
in the event of its assignment as that term is defined in the Investment Company
Act of 1940. This agreement may be amended at any time provided the amendment is
approved in the same manner the agreement was initially approved and the
amendment is agreed to by American Express Financial Advisors.
Approved this 20th day of March, 1995.
IDS SPECIAL TAX-EXEMPT SERIES TRUST IDS Insured Tax-Exempt Fund IDS
Massachusetts Tax-Exempt Fund IDS Michigan Tax-Exempt Fund IDS Minnesota
Tax-Exempt Fund IDS New York Tax-Exempt Fund IDS Ohio Tax-Exempt Fund
/s/Xxxxxx X. Xxx
Xxxxxx X. Xxx
Vice President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
Xxxxx X. Xxxxxx
Vice President
