Common use of PERFORMANCE INCENTIVE ADJUSTMENT Clause in Contracts

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is shown below. The Index may change as set forth below. ------------------------------------------------------------------------------ FUND LIPPER INDEX ------------------------------------------------------------------------------ RiverSource Strategic Allocation Fund Lipper Flexible Portfolio Funds ------------------------------------------------------------------------------ The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED FUNDS ------------------------------------------------------------------------------------------------------ PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 basis points if a 3% performance difference) ------------------------------------------------------------------------------------------------------ 3.00% or more 8 basis points ------------------------------------------------------------------------------------------------------ For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource Strategic Allocation Disciplined Equity Fund Lipper Flexible Portfolio Large-Cap Core Funds ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource Growth Fund Lipper Large-Cap Growth Funds -------------------------------------------------------------------------------- RiverSource Large Cap Equity Fund Lipper Large-Cap Core Funds -------------------------------------------------------------------------------- RiverSource Large Cap Value Fund Lipper Large-Cap Value Funds -------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED -------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00-------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) -------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ RiverSource Strategic Allocation ----------------------------------------------------------------------------------------- Disciplined Small and Mid Cap Equity Fund Lipper Flexible Portfolio Mid-Cap Core Funds ------------------------------------------------------------------------------ Index ----------------------------------------------------------------------------------------- Disciplined Small Cap Value Lipper Small-Cap Value Funds Index ----------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED ------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is shown below. The Index may change as set forth below. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ FUND LIPPER INDEX ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ RiverSource Strategic Allocation Mid Cap Growth Fund Lipper Flexible Portfolio Mid-Cap Growth Funds ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED --------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00--------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00--------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) --------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Disciplined International Equity Fund Lipper Flexible Portfolio International Large-Cap Core Funds ------------------------------------------------------------------------------ Index ----------------------------------------------------------------------------------------------------------- RiverSource European Equity Fund Lipper European Funds Index ----------------------------------------------------------------------------------------------------------- RiverSource International Opportunity Lipper International Large-Cap Core Funds Index ----------------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED --------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00--------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00--------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) --------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the RiverSource Variable Portfolio - Growth Fund, RiverSource Variable - International Opportunity Fund, RiverSource Variable Portfolio - Large Cap Equity Fund, RiverSource Variable Portfolio - Large Cap Value Fund, and RiverSource Variable Portfolio - Small Cap Advantage Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Variable Portfolio - Emerging Markets Fund Lipper Flexible Emerging Markets Funds Index ----------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds ------------------------------------------------------------------------------ Index ----------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - International Opportunity Fund Lipper International Funds Index ----------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Large Cap Equity Fund Lipper Large-Cap Core Funds Index ----------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Large Cap Value Fund Lipper Large-Cap Value Funds Index ----------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Small Cap Advantage Fund Lipper Small-Cap Core Funds Index ----------------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED -------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ 0.50%-1.00% -------------------------------------------------------------------------------------------------------- 6 basis points times the performance difference over 0.50%, times 100 0.50%-1.00% (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ 1.00%-2.00% -------------------------------------------------------------------------------------------------------- 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance 1.00%-2.00% difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00% -------------------------------------------------------------------------------------------------------- 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance 2.00%-4.00% difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------------------------------------------------------------------------------- 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance 4.00%-6.00% difference) -------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is shown below. The Index may change as set forth below. ------------------------------------------------------------------------------ ------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ ------------------------------------------------------------------------- RiverSource Strategic Allocation Precious Metals Fund Lipper Flexible Portfolio Gold Funds ------------------------------------------------------------------------------ ------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED ------------------------------------------------------------------------------------------------------------ EQUITY FUNDS ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00------------------------------------------------------------------------------------------------------------ 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00------------------------------------------------------------------------------------------------------------ 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ------------------------------------------------------------------------------------------------------------ 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ FUND LIPPER INDEX ------------------------------------------------------------------------------ RiverSource Strategic Allocation ---------------------------------------------------------------------------- Fund Lipper Flexible Portfolio Index ---------------------------------------------------------------------------- RiverSource Aggressive Growth Fund Lipper Mid-Cap Growth Funds ------------------------------------------------------------------------------ ---------------------------------------------------------------------------- RiverSource Fundamental Growth Fund Lipper Large-Cap Growth Funds ---------------------------------------------------------------------------- RiverSource Fundamental Value Fund Lipper Large-Cap Value Funds ---------------------------------------------------------------------------- RiverSource Select Value Fund Lipper Multi-Cap Value Funds ---------------------------------------------------------------------------- RiverSource Small Cap Equity Fund Lipper Small-Cap Core Funds ---------------------------------------------------------------------------- RiverSource Small Cap Value Fund Lipper Small-Cap Value Funds ---------------------------------------------------------------------------- RiverSource Value Fund Lipper Large-Cap Value Funds ---------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED FUNDS ------------------------------------------------------------------------------------------------------ PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------- Equity Funds ----------------------------------------------------------------------------------------------------- Performance Difference Adjustment Rate ----------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00----------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00----------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ----------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------------------- INVESTMENT FUND LIPPER INDEX ------------------------------------------------------------------------------ CATEGORY ----------------------------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Variable Portfolio - Diversified Equity Income Fund Lipper Flexible Equity Income Funds Index Equity ----------------------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds ------------------------------------------------------------------------------ Index Balanced ----------------------------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ EQUITY FUNDS BALANCED FUNDS ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------------------------------ 0.50%-1.00% 6 basis points times the performance 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ performance difference) ------------------------------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis points times 1.00%-2.00% 3 basis points, plus 3 basic points times the performance difference over 1.00%, the performance difference over times 100 (maximum 6 basis points if a 1.00%, times 100 (maximum 6 basis 2% performance difference) points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00------------------------------------------------------------------------------------------------------------------------------ 2.00%-4.00% 6 basis points, plus 2 basis points times 2.00%-3.00% 6 basis points, plus 2 basic points times the performance difference over 2.00%, the performance difference over times 100 (maximum 10 basis points if a 2.00%, times 100 (maximum 8 basis 4% performance difference) points if a 3% performance difference) ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ 4.00%-6.00% 10 basis points, plus 1 basis point times 3.00% or more 8 basis points ------------------------------------------------------------------------------------------------------ the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ------------------------------------------------------------------------------------------------------------------------------ 6.00% or more 12 basis points ------------------------------------------------------------------------------------------------------------------------------ For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ FUND LIPPER INDEX ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ RiverSource Strategic Allocation International Aggressive Growth Fund Lipper Flexible Portfolio International Multi-Cap Growth Funds ------------------------------------------------------------------------------ Index ------------------------------------------------------------------------------------------------------------ RiverSource International Equity Fund Lipper International Funds Index ------------------------------------------------------------------------------------------------------------ RiverSource International Select Value Fund Lipper International Multi-Cap Value Funds Index ------------------------------------------------------------------------------------------------------------ RiverSource International Small Cap Fund Lipper International Small-Cap Funds Index ------------------------------------------------------------------------------------------------------------ The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED ---------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ 0.50%-1.00% ---------------------------------------------------------------------------------------------------------- 6 basis points times the performance difference over 0.50%, times 100 0.50%-1.00% (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ 1.00%-2.00% ---------------------------------------------------------------------------------------------------------- 3 basis points, plus 3 basis points times the performance difference over 1.00%-2.00% 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00% ---------------------------------------------------------------------------------------------------------- 6 basis points, plus 2 basis points times the performance difference over 2.00%-4.00% 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00---------------------------------------------------------------------------------------------------------- 10 basis points, plus 1 basis point times the performance difference over 4.00%-6.00% 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ---------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Variable Portfolio - Select Value Fund Lipper Flexible Multi-Cap Value Funds Index -------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds ------------------------------------------------------------------------------ Index -------------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED -------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 % (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 basis points if a 3% performance difference) ------------------------------------------------------------------------------------------------------ 3.00% or more 8 basis points ------------------------------------------------------------------------------------------------------ For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEX--------------------------------------------------------------------------------------------------------

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource Strategic Allocation Equity Value Fund Lipper Flexible Portfolio Large-Cap Value Funds ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource Small Cap Advantage Fund Lipper Small-Cap Core Funds -------------------------------------------------------------------------------- RiverSource Small Cap Growth Fund Lipper Small-Cap Growth Funds -------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED ----------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00----------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00----------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ----------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ ----------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Variable Portfolio - Fundamental Value Fund Lipper Flexible Large-Cap Value Funds Index -------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Select Value Fund Lipper Multi-Cap Value Funds ------------------------------------------------------------------------------ Index -------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index -------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED -------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00-------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) -------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ INVESTMENT CATEGORY --------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Balanced Fund Lipper Flexible Portfolio Balanced Funds ------------------------------------------------------------------------------ Balanced --------------------------------------------------------------------------------------------------- RiverSource Diversified Equity Income Fund Lipper Equity Income Funds Equity --------------------------------------------------------------------------------------------------- RiverSource Mid Cap Value Fund Lipper Mid Cap Value Funds Equity --------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ EQUITY FUNDS BALANCED FUNDS ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ PERFORMANCE ADJUSTMENT RATE DIFFERENCE DIFFERENCE ------------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------------ 0.50%-1.00% 6 basis points times the 0.50%-1.00% 6 basis points times the performance difference over performance difference over 0.50%, 0.50%, times 100 (maximum of 3 times 100 (maximum of 3 basis basis points if a 1% performance points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ difference) ------------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis 1.00%-2.00% 3 basis points, plus 3 basis points times the performance points times the performance difference over 1.00%, times 100 difference over 1.00%, times 100 (maximum 6 basis points if a 2% (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ performance difference) ------------------------------------------------------------------------------------------------------------ 2.00%-4.00% 6 basis points, plus 2 basis 2.00%-3.00% 6 basis points, plus 2 basis points times the performance points times the performance difference over 2.00%, times 100 difference over 2.00%, times 100 (maximum 10 basis points if a 4% (maximum 8 basis points if a 3% performance difference) ------------------------------------------------------------------------------------------------------ performance difference) ------------------------------------------------------------------------------------------------------------ 4.00%-6.00% 10 basis points, plus 1 basis 3.00% or more 8 basis points ------------------------------------------------------------------------------------------------------ point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ------------------------------------------------------------------------------------------------------------ 6.00% or more 12 basis points ------------------------------------------------------------------------------------------------------------ For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ RiverSource Strategic Allocation -------------------------------------------------------------------------------- Disciplined Small and Mid Cap Equity Fund Lipper Flexible Portfolio Mid-Cap Core Funds ------------------------------------------------------------------------------ Index -------------------------------------------------------------------------------- Disciplined Small Cap Value Lipper Small-Cap Value Funds Index -------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED ------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ -------------------------------- ---------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ -------------------------------- ---------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 % (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ -------------------------------- ---------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 % (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00-------------------------------- ---------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 % (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------- ---------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00% (maximum 12 basis points if a 6% performance difference) -------------------------------- ---------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------- ---------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource Strategic Allocation European Equity Fund Lipper Flexible Portfolio European Funds ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource International Opportunity Lipper International Large-Cap Core Funds -------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED -------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 % (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 % (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00-------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 % (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00% (maximum 12 basis points if a 6% performance difference) -------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset chargeAfter calculating the Base Fee, the fee for the Fund shall include a performance incentive adjustmentadjustment ("Performance Adjustment") shall be calculated separately for each Fund on a monthly basis, subject to the Transition Rules set forth in Paragraph 3. The performance incentive adjustment Performance Adjustment shall be based on the Fund's performance compared to the performance of the index identified below (each, an index of similar funds (the "Index"). The current Index is shown ) multiplied by an adjustment rate, discussed below. The Index applicable to each Fund may change as in accordance with the "Change in Index" rules set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ -------------------------------------------------------------------------------- RiverSource Strategic Allocation Small Cap Advantage Fund Lipper Flexible Portfolio Funds ------------------------------------------------------------------------------ Xxxxxxx 2000 Index -------------------------------------------------------------------------------- RiverSource VP Small Cap Advantage Fund Xxxxxxx 2000 Index -------------------------------------------------------------------------------- The performance incentive adjustment Performance Adjustment is determined by first measuring the percentage difference over a rolling 12-month period between the performance of one the Allocated Portion of each Fund (net of expenses equal to the expense ratio reflected in the performance of Class A share shares of the Fund entire Small Cap Advantage Fund, before any Fund-level performance incentive adjustment, or net of VP fund expenses equal to the expense ratio for the VP Small Cap Advantage Fund, before any Fund-level performance incentive adjustment) and the change in performance of the IndexIndex applicable to that Fund ("Performance Difference"). The performance difference Performance Difference will then be used to determine in the calculation with the adjustment raterate in accordance with the table set forth below ("Adjustment Rate"). The adjustment rateAdjustment Rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month periodperiod to provide the Performance Adjustment. ------------------------------------------------------------------------------------------------------ BALANCED FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ 0.00%-0.50(CALCULATION) -------------------------------------------------------------------------------- 0.00%-4.00% 0 ------------------------------------------------------------------------------------------------------ 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%difference, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 basis points if a 3% performance difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------------------------------------------------------- 4.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------- For example, if the performance difference Performance Difference is 2.38%% for the applicable period, the adjustment rate is 0.000676 calculation equals 0.000714 (0.0006 0.0003 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 3 basis points] x 100 (0.0000762.38% x 100)). Rounded to five decimal places, the adjustment rate Adjustment Rate is 0.000680.00071, which is then applied against average daily net assets of the Allocated Portion for the applicable period to determine an annualized Performance Adjustment. The actual Performance Adjustment will then be pro-rated to the number of days in the month for which the fee is calculated. Where the Fund's Class A performance of the Allocated Portion of a Fund (less expenses) exceeds that of the Index, the fee paid to the Investment Manager Kenwood will increase by an amount equal to the adjustment ratePerformance Adjustment. Where the performance of the Index exceeds the performance of the Fund's Class A sharesAllocated Portion of a Fund (less expenses), the fee paid to the Investment Manager Kenwood will decrease by the adjustment ratePerformance Adjustment. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXChange in Index If the Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Boards of Directors ("Board") in consultation with RiverSource Investments, LLC, is no longer appropriate to use for purposes of a Performance Adjustment, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the Performance Adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Disciplined Lipper International Large-Cap Core Funds Index International Equity Fund ------------------------------------------------------------------------------------------------- RiverSource European Equity Fund Lipper Flexible Portfolio European Funds ------------------------------------------------------------------------------ Index ------------------------------------------------------------------------------------------------- RiverSource International Opportunity Lipper International Large-Cap Core Funds Index ------------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED --------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ ------------------------------ -------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ ------------------------------ -------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 % (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ ------------------------------ -------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 % (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00------------------------------ -------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 % (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00------------------------------ -------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00% (maximum 12 basis points if a 6% performance difference) ------------------------------ -------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ ------------------------------ -------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ -------------------------------------------------------------- --------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ -------------------------------------------------------------- --------------------------------------------- RiverSource Strategic Allocation Variable Portfolio - Fundamental Value Fund Lipper Flexible Large-Cap Value Funds Index -------------------------------------------------------------- --------------------------------------------- RiverSource Variable Portfolio - Select Value Fund Lipper Multi-Cap Value Funds ------------------------------------------------------------------------------ Index -------------------------------------------------------------- --------------------------------------------- RiverSource Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index -------------------------------------------------------------- --------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED -------------------------------------------------------------------------------------------------------- EQUITY FUNDS ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------------------- 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 % (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 % (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.00-------------------------------------------------------------------------------------------------------- 2.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 % (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.00-------------------------------------------------------------------------------------------------------- 4.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00% (maximum 12 basis points if a 6% performance difference) -------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ -------------------------------------------------------------------------------------------------------- For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). The current Index is Current Indexes are shown below. The Index These Indexes may change as set forth below. ------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------- FUND LIPPER INDEX ------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------- RiverSource Strategic Allocation Dividend Opportunity Fund Lipper Flexible Portfolio Equity Income Funds ------------------------------------------------------------------------------ ---------------------------------------------------------------------------------------------- RiverSource Real Estate Fund Lipper Real Estate Funds ----------------------------------------------------------------------------------------------- The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. ------------------------------------------------------------------------------------------------------ BALANCED EQUITY FUNDS ------------------------------------------------------------------------------------------------------ PERFORMANCE DIFFERENCE ADJUSTMENT RATE ------------------------------------------------------------------------------------------------------ 0.00%-0.50% 0 ------------------------------------------------------------------------------------------------------ 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) ------------------------------------------------------------------------------------------------------ 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) ------------------------------------------------------------------------------------------------------ 2.00%-3.002.00%-4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 8 10 basis points if a 34% performance difference) ------------------------------------------------------------------------------------------------------ 3.004.00%-6.00% 10 basis points, plus 1 basis point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) ------------------------------------------------------------------------------------------------------- 6.00% or more 8 12 basis points ------------------------------------------------------------------------------------------------------ For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed. CHANGE IN INDEXINDEX If an Index ceases to be published for a period of more than 90 days, changes in any material respect, otherwise becomes impracticable or, at the discretion of the Board, is no longer appropriate to use for purposes of a performance incentive adjustment, for example, if Lipper reclassifies the Fund from one peer group to another, the Board may take action it deems appropriate and in the best interests of shareholders, including: (1) discontinuance of the performance incentive adjustment until such time as it approves a substitute index, or (2) adoption of a methodology to transition to a substitute index it has approved.