PLAN AND AGREEMENT OF DISTRIBUTION
This Plan and Agreement of Distribution ("Plan") is between AXP Variable
Portfolio - Partners Series, Inc. on behalf of its series of capital stock, AXP
Variable Portfolio - Partners Small Cap Value Fund a registered management
investment company, ("the Portfolio") and IDS Life Insurance Company ("IDS
Life"). It is effective May 9, 2001.
This Plan provides that:
1. IDS Life will purchase the Portfolio's shares on behalf of its separate
accounts and the separate accounts of its affiliated life insurance
companies established for the purpose of funding variable life insurance,
annuity contracts or both (collectively referred to as "Variable
Contracts"). Additionally, IDS Life may offer the Portfolio's shares to one
or more unaffiliated life insurance companies ("Unaffiliated Life
Companies") for purchase on behalf on certain of their separate accounts
established for the purpose of funding Variable Contracts.
2. The Portfolio will reimburse IDS Life up to 0.125% of its daily net assets
for various costs paid and accrued in connection with the distribution of
the Portfolio's shares and for services provided to existing and
prospective Variable Contract owners. Payments made under the Plan are
based on budgeted expenses and shall be made within five (5) business days
after each month. At the end of each calendar year, IDS Life shall furnish
a declaration setting out the actual expenses it has paid and accrued. Any
money that has been paid in excess of the amount of these expenses shall be
returned to the Portfolio.
3. IDS Life represents that the money paid by the Portfolio will benefit the
variable Contract owners and not the separate accounts that legally own the
shares and be for the following:
(a) printing and mailing prospectuses, Statements of Additional
Information, supplements, and reports to existing and prospective
Variable Contract owners;
(b) preparation and distribution of advertisement, sales literature,
brokers' materials and promotional materials relating to the Portfolio;
(c) presentation of seminars and sales meetings describing or relating to
the Portfolio;
(d) training sales personnel regarding the Portfolio;
(e) compensation of sales personnel for sale of the Portfolio's shares;
(f) compensation of sales personnel for assisting Variable Contract owners
with respect to the Portfolio shares;
(g) overhead of IDS Life and its affiliates appropriately allocated to the
promotion of sale of the Portfolio's shares; and
(h) any activity primarily intended to result in the sale of the
Portfolio's shares, including payments to Unaffiliated Life Companies.
4. IDS Life shall provide all information relevant and necessary for the Board
to make informed determinations about whether the Plan should be continued
and shall:
(a) submit quarterly a report that sets out the expenses paid or accrued by
it, the names of the Unaffiliated Life Companies to whom the
Portfolio's shares are sold, and the payments made to each Unaffiliated
Life Company that has been reimbursed;
(b) monitor the level and quality of services provided by it and all
affiliated companies and will use its best efforts to assure that in
each case legitimate services are rendered in return for the
reimbursement pursuant to the Plan; and
(c) meet with the Portfolio's representatives, as reasonably requested, to
provide additional information.
5. IDS Life represents that it and all affiliated insurance company sponsors
will provide full disclosure of the Portfolio's 12b-1 Plan in the
prospectus for any separate account investing in the Portfolio and will
clearly communicate the combined effect of all fees and costs, including
the reimbursement under the 12b-1 Plan, imposed by the separate account and
the Portfolio in accordance with applicable laws.
6. All payments by IDS Life to Unaffiliated Life Companies shall be made
pursuant to a written agreement (Related Agreement). All such written
agreements will be in a form approved by a majority of the Portfolio's
independent members of the board and the board as a whole before it shall
be used. The Related Agreement shall:
(a) require full disclosure of the combined effect of all fees and charges
in accordance with applicable laws;
(b) provide for the termination at any time without penalty as required by
Rule 12b-1; and
(c) continue so long as its continuance is done in accordance with the
requirements of Rule 12b-1.
7. The Portfolio represents that the Plan has been approved as required by
Rule 12b-1 and may continue for more than one year so long as it is
continued as required by Rule 12b-1 and shall terminate automatically in
the event of an assignment.
8. The Plan may not be amended to materially increase the amount of the
payments without the approval of the outstanding voting securities.
AXP VARIABLE PORTFOLIO - PARTNERS SERIES, INC.
AXP Variable Portfolio - Partners Small Cap Value Fund
/s/ Xxxxxx X. Xxx
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Xxxxxx X. Xxx
Vice President
IDS LIFE INSURANCE COMPANY
/s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
Director and Executive Vice President - Annuities
