ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement ("Agreement"), effective as of October 1,
2005 is by and between Ameriprise Financial, Inc. ("Administrator"), a Delaware
corporation, and the Corporations and Trusts listed in Schedule A, each on
behalf of its underlying series. The terms "Fund" or "Funds" are used to refer
to the Corporation or Trust and the underlying series as context requires.
Part One: SERVICES
(1) The Fund hereby retains Administrator, and Administrator hereby agrees,
for the period of this Agreement and under the terms and conditions set
forth in this Agreement, to furnish the Fund continuously with all
administrative, accounting, treasury, and other services, as set forth in
more detail, below:
(a) Administration services necessary and appropriate for the business
of the Fund, including but not limited to:
(i) Preparing all general or routine shareholder communications
including notices of dividends and capital gains
distributions;
(ii) Preparing and filing of shareholder reports and other
required regulatory reports and communications;
(iii) Preparing and filing of tax reports, including the Fund's
income tax returns;
(iv) Monitoring the Fund's compliance with Subchapter M of the
Internal Revenue Code, and other applicable tax laws and
regulations;
(v) Executing the pricing process and monitoring the
reliability of the valuation information received from the
independent third-party pricing services and brokers;
(vi) Coordinating and supervising relations with, and monitoring
the performance of, custodians, depositories, transfer and
pricing agents, accountants, underwriters, brokers and
dealers, insurers, printers, Fund auditors, and other
persons serving the Fund, deemed to be necessary or
desirable;
(vii) Maintaining Fund registration statement updates, and
maintaining registration in the jurisdictions in which
shares of the Fund are offered for sale;
(viii) Preparing reports, information, surveys, or other analyses
to third parties as deemed necessary or desirable by the
Fund; and
Page 2
(ix) Preparing reports, evaluations, information, surveys,
statistical analysis or other analysis of the Fund as the
Boards of Directors/Trustees of the Fund ("Board") may
request from time to time.
(x) Providing support for the Board in connection with the
Board's efforts to vote proxies on behalf of the Fund.
(b) Accounting and recordkeeping services necessary and appropriate
for the business of the Fund, including but not limited to:
(i) Calculating and supervising publication of the Fund's daily
net asset value quotations, pricing, performance and yield
information, periodic earnings reports, and other financial
data, consistent with federal securities laws and the
Fund's current prospectus; and
(ii) Monitoring the Fund's compliance with accounting operations
control processes.
(c) Treasury services necessary and appropriate for the business of
the Fund, including but not limited to:
(i) Monitoring daily cash and transaction statements and
reports from the Fund's transfer agent and custodian; and
(ii) Completing daily cash reconciliations, notifying Fund's
custodian of such reconciliations, and reporting investable
cash to the Fund's investment manager and subadvisers, as
directed by the Fund's investment manager or subadviser, if
applicable.
(d) Other services necessary and appropriate for the operations of the
Fund, not listed above, including but not limited to:
(i) Providing compliance services, as directed by the Fund's
Chief Compliance Officer, which may include monitoring the
Fund's compliance with applicable federal, state and
foreign securities laws, and the rules and regulations
thereunder, as applicable, including, without limitation,
the Investment Company Act of 1940, the Securities and
Exchange Act of 1934 and the Securities Act of 1933, each
as amended from time to time, and the rules promulgated
under each of the foregoing;
(ii) Providing legal support of all administration services
provided by Administrator under this Agreement;
(iii) Maintaining the Fund's books and records in accordance with
all applicable federal and state securities laws and
regulations; and
Page 3
(iv) Maintaining, together with affiliated companies,
maintenance of a business continuation and recovery program
for the Funds.
(2) Administrator agrees to pay on behalf of the Fund such expenses as may be
provided for in Part Three; subject always to the direction and control
of the Board, the Executive Committee and the authorized officers of the
Fund and to maintain an adequate organization of competent persons,.
Administrator agrees to meet with any persons at such times as the Board
deems appropriate for the purpose of reviewing Administrator's
performance under this Agreement.
(3) The Fund agrees that it will furnish to Administrator any information
that the latter may reasonably request with respect to the services
performed or to be performed by Administrator under this Agreement.
(4) It is understood and agreed that in furnishing the Fund with services
under this Agreement, neither Administrator, nor any officer, director or
agent thereof shall be held liable to shareholders of the Fund, the Fund
or its creditors for errors of judgment or for anything except willful
misfeasance, bad faith, or negligence in the performance of its duties,
or reckless disregard of its obligations and duties under the terms of
this Agreement. It is further understood and agreed that Administrator
may rely upon information furnished to it reasonably believed to be
accurate and reliable.
Part Two: COMPENSATION FOR SERVICES
(1) The Fund agrees to pay to Administrator, and Administrator covenants and
agrees to accept from the Fund in full payment for the services
furnished, a fee as described in Schedule B. The fee for each calendar
day of each year shall be equal to 1/365th (1/366th in each leap year) of
the total amount computed. The computation shall be made for each day on
the basis of net assets as of the close of the preceding business day. In
the case of the suspension of the computation of net asset value, the
administrative fee for each day during the suspension shall be computed
as of the close of business on the last full business day on which the
net assets were computed. As used in this Agreement "net assets" as of
the close of a full business day includes all transactions in shares of
the Fund recorded on the books of the Fund for that day.
(2) The administrative fee shall be paid on a monthly basis and, in the event
of the termination of this Agreement, in whole or in part with respect to
any Fund, the administrative fee accrued shall be prorated on the basis
of the number of days that this Agreement is in effect during the month
with respect to which such payment is made.
(3) The administrative fee shall be paid in cash by the Fund to Administrator
within five (5) business days after the last day of each month.
Page 4
Part Three: ALLOCATION OF EXPENSES
(1) The Fund agrees to pay:
(a) Administrative fees payable to Administrator for its services
under the terms of this Agreement.
(b) Taxes.
(c) Fees and charges of its independent certified public accountants
for services the Fund requests.
(d) Commitment fees on lines of credit.
(e) Fees and expenses of attorneys (i) it employs in matters not
involving the assertion of a claim by a third party against the
Fund, its Board members and officers, (ii) it employs in
conjunction with a claim asserted by the Board against
Administrator, except that Administrator shall reimburse the Fund
for such fees and expenses if it is ultimately determined by a
court of competent jurisdiction, or Administrator agrees, that it
is liable in whole or in part to the Fund, (iii) it employs to
assert a claim against a third party, and (iv) it or Administrator
employs, with the approval of the Board, to assist in the
evaluation of certain investments or other matters related to the
administration of the Fund.
(f) Fees paid for the qualification and registration for public sale
of the securities of the Fund under the laws of the United States
and of the several states in which such securities shall be
offered for sale.
(g) Fees of consultants employed by the Fund.
(h) Board member, officer and employee expenses which shall include
fees, salaries, memberships, dues, travel, seminars, pension,
profit sharing, and all other benefits paid to or provided for
Board members, officers and employees, directors and officers
liability insurance, errors and omissions liability insurance,
worker's compensation insurance and other expenses applicable to
the Board members, officers and employees, except the Fund will
not pay any fees or expenses of any person who is an officer or
employee of Administrator or its affiliates.
(i) Filing fees and charges incurred by the Fund in connection with
filing any amendment to its organizational documents, or incurred
in filing any other document with the state where the Fund is
organized or its political subdivisions.
Page 5
(j) Organizational expenses of the Fund.
(k) Fund Board and Fund office expenses, separate from Administrator
or affiliates of Administrator, which shall include a charge for
occupancy, insurance on the premises, furniture and equipment,
telephone, telegraph, electronic information services, books,
periodicals, published services, and office supplies used by the
Fund.
(l) Other expenses properly payable by the Fund, approved by the
Board.
(2) Administrator agrees to pay all expenses associated with the services it
provides under the terms of this Agreement
Part Four: MISCELLANEOUS
(1) Administrator shall be deemed to be an independent contractor and, except
as expressly provided or authorized in this Agreement, shall have no
authority to act for or represent the Fund.
(2) A "full business day" shall be as defined in the By-laws of the Fund.
(3) The Fund recognizes that Administrator and its affiliates, pursuant to
separate agreements, now render and may continue to render services to
other investment companies and persons which may or may not have policies
similar to those of the Fund and that Administrator provides services for
its own investments and/or those of its affiliates. Administrator shall
be free to provide such services and the Fund hereby consents thereto.
(4) Neither this Agreement nor any transaction had pursuant hereto shall be
invalidated or in any way affected by the fact that Board members,
officers, agents and/or shareholders of the Fund are or may be interested
in Administrator or any successor or assignee thereof, as directors,
officers, stockholders or otherwise; that directors, officers,
stockholders or agents of Administrator are or may be interested in the
Fund as Board members, officers, shareholders, or otherwise; or that
Administrator or any successor or assignee, is or may be interested in
the Fund as shareholder or otherwise, provided, however, that neither
Administrator, nor any officer, Board member or employee thereof or of
the Fund, shall sell to or buy from the Fund any property or security
other than shares issued by the Fund, except in accordance with
applicable regulations or orders of the United States Securities and
Exchange Commission.
(5) Any notice under this Agreement shall be given in writing, addressed, and
delivered, or mailed postpaid, to the party to this Agreement entitled to
receive such, at such party's principal place of business in Minneapolis,
Minnesota, or to such other address as either party may designate in
writing mailed to the other.
Page 6
(6) Administrator agrees that no officer, director or employee of
Administrator will deal for or on behalf of the Fund with himself as
principal or agent, or with any corporation or partnership in which he
may have a financial interest, except that this shall not prohibit
officers, directors or employees of the Administrator's affiliated
companies from having a financial interest in the Fund or in
Administrator.
(7) The Fund agrees that Administrator may subcontract for certain of the
services described under this Agreement with the understanding that there
shall be no diminution in the quality or level of the services and that
Administrator remains fully responsible for the services.
(8) This Agreement shall extend to and shall be binding upon the parties
hereto, and their respective successors and assigns; provided, however,
that this Agreement shall not be assignable without the written consent
of the other party. This Agreement shall be governed by the laws of the
State of Minnesota.
(9) For each Fund that is organized as a Massachusetts business trust, a copy
of the Declaration of Trust, together with all amendments, is on file in
the office of the Secretary of State of the Commonwealth of
Massachusetts. The execution and delivery of this Agreement has been
authorized by the Trustees and the Agreement has been signed by an
authorized officer of the Fund. It is expressly agreed that the
obligations of the Fund under this Agreement shall not be binding upon
any of the Trustees, shareholders, nominees, officers, agents or
employees of the Fund, personally, but bind only the assets and property
of the Fund, as provided in the Declaration of Trust.
Part Five: RENEWAL AND TERMINATION
(1) This Agreement shall continue in effect until April 30, 2007 and,
thereafter, from year to year as the parties may mutually agree, provided
that either party may terminate this Agreement by giving the other party
notice in writing specifying the date of such termination, which shall be
not less than 60 days after the date of receipt of such notice.
(2) Non-material amendments or modifications to this Agreement will only be
made effective upon written agreement executed by the Administrator and
the Fund.
Page 7
IN WITNESS THEREOF, the parties hereto have executed the foregoing Agreement as
of the day and year first above written.
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.
AXP Market Advantage Series, Inc.
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.
AXP Tax-Free Money Series, Inc.
AXP Variable Portfolio Income Series, Inc.
AXP Variable Portfolio Investment Series, Inc.
AXP Variable Portfolio Managed Series, Inc.
AXP Variable Portfolio Money Market Series, Inc.
AXP Variable Portfolio Partners Series, Inc.
By: /s/ Xxxxxx X. Xxx
---------------------
Xxxxxx X. Xxx
Vice President
AMERIPRISE FINANICAL, INC.
By: /s/ Xxxxx X. Xxxxx
---------------------
Xxxxx X. Xxxxx
Senior Vice President
Schedule A
Funds
Each a Minnesota corporation, except AXP California Tax-Exempt Trust
and AXP Special Tax-Exempt Series Trust, which are Massachusetts business
trusts:
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 Growth Series, Inc.
AXP Government Income 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.
AXP Market Advantage Series, Inc.
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.
AXP Tax-Free Money Series, Inc.
AXP Variable Portfolio Income Series, Inc.
AXP Variable Portfolio Investment Series, Inc
AXP Variable Portfolio Managed Series, Inc.
AXP Variable Portfolio Money Market Series, Inc.
AXP Variable Portfolio Partners Series, Inc.
Schedule B
Fee Schedule
The fee is based on the net assets of the Fund as set forth in the following
table:
ASSET LEVELS AND BREAKPOINTS IN APPLICABLE FEES
FUNDS
0 - 500,000,000 500,000,001 - 1,000,000,001 3,000,000,001 - 12,000,000,001 +
1,000,000,000 - 3,000,000,000 12,000,000,000
Schedule I 0.080% 0.075% 0.070% 0.060% 0.050%
Discovery 0.080% 0.075% 0.070% 0.060% 0.050%
Emerging Markets 0.080% 0.075% 0.070% 0.060% 0.050%
European Equity 0.080% 0.075% 0.070% 0.060% 0.050%
Global Balanced 0.080% 0.075% 0.070% 0.060% 0.050%
Global Bond 0.080% 0.075% 0.070% 0.060% 0.050%
Global Equity 0.080% 0.075% 0.070% 0.060% 0.050%
International Aggressive Growth 0.080% 0.075% 0.070% 0.060% 0.050%
International Equity 0.080% 0.075% 0.070% 0.060% 0.050%
International Opportunity 0.080% 0.075% 0.070% 0.060% 0.050%
International Select Value 0.080% 0.075% 0.070% 0.060% 0.050%
International Small Cap 0.080% 0.075% 0.070% 0.060% 0.050%
Partners Small Cap Value 0.080% 0.075% 0.070% 0.060% 0.050%
Small Cap Advantage 0.080% 0.075% 0.070% 0.060% 0.050%
Small Cap Equity 0.080% 0.075% 0.070% 0.060% 0.050%
Small Cap Growth 0.080% 0.075% 0.070% 0.060% 0.050%
Small Company Index 0.080% 0.075% 0.070% 0.060% 0.050%
Strategic Allocation 0.080% 0.075% 0.070% 0.060% 0.050%
Variable Portfolio Emerging Markets 0.080% 0.075% 0.070% 0.060% 0.050%
Variable Portfolio Global Bond 0.080% 0.075% 0.070% 0.060% 0.050%
Variable Portfolio International 0.080% 0.075% 0.070% 0.060% 0.050%
Opportunity
Variable Portfolio Small Cap Advantage 0.080% 0.075% 0.070% 0.060% 0.050%
Variable Portfolio Small Cap Equity 0.080% 0.075% 0.070% 0.060% 0.050%
Variable Portfolio Small Cap Value 0.080% 0.075% 0.070% 0.060% 0.050%
Schedule II 0.070% 0.065% 0.060% 0.050% 0.040%
California Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Core Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Diversified Bond 0.070% 0.065% 0.060% 0.050% 0.040%
High-Yield Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Income Opportunities 0.070% 0.065% 0.060% 0.050% 0.040%
Inflation Protected 0.070% 0.065% 0.060% 0.050% 0.040%
Insured Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Intermediate Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Limited Duration Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Massachusetts Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Michigan Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Minnesota Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
New York Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Ohio Tax-Exempt 0.070% 0.065% 0.060% 0.050% 0.040%
Selective 0.070% 0.065% 0.060% 0.050% 0.040%
Short Duration U.S. Government 0.070% 0.065% 0.060% 0.050% 0.040%
Tax-Exempt Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Tax-Exempt High Income 0.070% 0.065% 0.060% 0.050% 0.040%
U.S. Government Mortgage 0.070% 0.065% 0.060% 0.050% 0.040%
Variable Portfolio Core Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Variable Portfolio Diversified Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Variable Portfolio Global Inflation 0.070% 0.065% 0.060% 0.050% 0.040%
Protected
Variable Portfolio High Yield Bond 0.070% 0.065% 0.060% 0.050% 0.040%
Variable Portfolio Income 0.070% 0.065% 0.060% 0.050% 0.040%
Opportunities
Variable Portfolio Short Duration 0.070% 0.065% 0.060% 0.050% 0.040%
U.S. Government
Schedule III 0.060% 0.055% 0.050% 0.040% 0.030%
Aggressive Growth 0.060% 0.055% 0.050% 0.040% 0.030%
Balanced 0.060% 0.055% 0.050% 0.040% 0.030%
Cash Management 0.060% 0.055% 0.050% 0.040% 0.030%
Disciplined Equity 0.060% 0.055% 0.050% 0.040% 0.030%
Diversified Equity 0.060% 0.055% 0.050% 0.040% 0.030%
Dividend Opportunity 0.060% 0.055% 0.050% 0.040% 0.030%
Equity Value 0.060% 0.055% 0.050% 0.040% 0.030%
Fundamental Growth 0.060% 0.055% 0.050% 0.040% 0.030%
Fundamental Value 0.060% 0.055% 0.050% 0.040% 0.030%
Global Technology 0.060% 0.055% 0.050% 0.040% 0.030%
Growth 0.060% 0.055% 0.050% 0.040% 0.030%
Large Cap Equity 0.060% 0.055% 0.050% 0.040% 0.030%
Large Cap Value 0.060% 0.055% 0.050% 0.040% 0.030%
Mid Cap Growth 0.060% 0.055% 0.050% 0.040% 0.030%
Mid Cap Value 0.060% 0.055% 0.050% 0.040% 0.030%
New Dimensions 0.060% 0.055% 0.050% 0.040% 0.030%
Precious Metals 0.060% 0.055% 0.050% 0.040% 0.030%
Real Estate 0.060% 0.055% 0.050% 0.040% 0.030%
S&P 500 Index 0.060% 0.055% 0.050% 0.040% 0.030%
Select Value 0.060% 0.055% 0.050% 0.040% 0.030%
Stock 0.060% 0.055% 0.050% 0.040% 0.030%
Strategy Aggressive 0.060% 0.055% 0.050% 0.040% 0.030%
Tax-Exempt Money Market 0.060% 0.055% 0.050% 0.040% 0.030%
Value 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Balanced 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Cash Management 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Diversified Equity 0.060% 0.055% 0.050% 0.040% 0.030%
Income
Variable Portfolio Growth 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Large Cap Equity 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Large Cap Value 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Mid Cap Growth 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Mid Cap Value 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio New Dimensions 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio S&P 500 Index 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Select Value 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Strategy Aggressive 0.060% 0.055% 0.050% 0.040% 0.030%
Variable Portfolio Value 0.060% 0.055% 0.050% 0.040% 0.030%
Schedule IV 0.020% 0.020% 0.020% 0.020% 0.020%
Portfolio Builder Aggressive 0.020% 0.020% 0.020% 0.020% 0.020%
Portfolio Builder Conservative 0.020% 0.020% 0.020% 0.020% 0.020%
Portfolio Builder Moderate 0.020% 0.020% 0.020% 0.020% 0.020%
Portfolio Builder Moderate Aggressive 0.020% 0.020% 0.020% 0.020% 0.020%
Portfolio Builder Moderate 0.020% 0.020% 0.020% 0.020% 0.020%
Conservative
Portfolio Builder Total Equity 0.020% 0.020% 0.020% 0.020% 0.020%
