SUBADVISORY AGREEMENT
Agreement made as of the 14th day of July, 2006 by and between
RiverSource Investments, LLC, a Minnesota limited liability company
("Investment Manager"), and MDTA LLC, a Delaware limited liability company
("Subadviser") and an indirect wholly-owned subsidiary of Federated Investors,
Inc. ("Federated").
WHEREAS, the Fund listed in Schedule A is a series of an investment
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act").
WHEREAS, Investment Manager entered into an Investment Management
Services Agreement (the "Advisory Agreement") with the Fund pursuant to which
Investment Manager provides investment advisory services to the Fund.
WHEREAS, Investment Manager and the Fund each desire to retain
Subadviser to provide investment advisory services to the Fund as a
growth-style investment manager, and Subadviser is willing to render such
investment advisory services.
WHEREAS, the Investment Manager and Subadviser are parties to that
certain Subadvisory Agreeement dated September 23, 2005 ("Prior Subadvisory
Agreement").
WHEREAS, as of the date of this Agreement, Subadviser was aquired by
Federated and has undergone a "change of control" constituting an "assignment"
as those terms are defined in the 1940 Act, resulting in the automatic
termination of the Prior Subadvisory Agreement, and the Subadviser will change
its name to "Federated MDTA LLC" promptly after the date hereof.
WHEREAS, it is the parties intention that the Subadviser continue to
furnish investment advisory services to the Fund pursuant to this Agreement.
WHEREAS, this Agreement has been approved by the Board of Directors
of the Fund in accordance with that certain Exemptive Order dated July 16,
2002 (Release No. IC-25664, File No. 812-12580).
NOW, THEREFORE, the parties, intending to be legally bound, agree as follows:
1. Subadviser's Duties.
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(a) Portfolio Management. Subject to supervision by Investment Manager
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and the Fund's Board of Directors (the "Board"), Subadviser shall
manage the investment operations and the composition of that
portion of assets of the Fund which is allocated to Subadviser
from time to time by Investment Manager (which portion may include
any or all of the Fund's assets), including the purchase,
retention, and disposition thereof, in accordance with the Fund's
investment objectives, policies, and restrictions, and subject to
the following understandings:
(i) Investment Decisions. Subadviser shall determine from time
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to time what investments and securities will be purchased,
retained, or sold with respect to that portion of the Fund
allocated to it by Investment Manager, and what portion of
such assets will be invested or held uninvested as cash.
Subadviser is prohibited from consulting with any other
subadviser of the Fund concerning transactions of the Fund
in securities or other assets, other than for purposes of
complying with the conditions of Rule 12d3-1(a) or (b) of
the 1940 Act. Subadviser will not be responsible for voting
proxies issued by companies held in the Fund. Subadviser
will not be responsible for filing claims in class action
settlements related to securities currently or previously
held by that portion of the Fund allocated to it by
Investment Manager.
(ii) Investment Limits. In the performance of its duties and
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obligations under this Agreement, Subadviser shall act in
conformity with applicable limits and requirements, as
amended from time to time, as set forth in the (A) Fund's
Prospectus and Statement of Additional Information ("SAI");
(B) instructions and directions of Investment Manager and of
the Board; (C) requirements of the 1940 Act, the Internal
Revenue Code of 1986, as amended, as applicable to the Fund,
and all other applicable federal and state laws and
regulations; and (D) the procedures and standards set forth
in, or established in accordance with, the Advisory
Agreement to the extent communicated to Subadviser.
(iii) Portfolio Transactions.
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(A) Trading. With respect to the securities and other
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investments to be purchased or sold for the Fund,
Subadviser shall place orders with or through such
persons, brokers, dealers, or futures commission
merchants (including, but not limited to,
broker-dealers that are affiliated with Investment
Manager or Subadviser) selected by Subadviser;
provided, however, that such orders shall be
consistent with the brokerage policy set forth in the
Fund's Prospectus and SAI, or approved by the Board;
conform with federal securities laws; and be
consistent with seeking best execution. Within the
framework of this policy, Subadviser may consider the
research, investment information, and other services
provided by, and the financial responsibility of,
brokers, dealers, or futures commission merchants who
may effect, or be a party to, any such transaction or
other transactions to which Subadviser's other clients
may be a party.
(B) Aggregation of Trades. On occasions when Subadviser
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deems the purchase or sale of a security or futures
contract to be in the best interest of the Fund as
well as other clients of Subadviser, Subadviser, to
the extent permitted by applicable laws and
regulations, may, but shall be under no obligation to,
aggregate the
securities or futures contracts to be sold or
purchased in order to seek best execution. In such
event, allocation of the securities or futures
contracts so purchased or sold, as well as the
expenses incurred in the transaction, will be made by
Subadviser in the manner Subadviser considers to be
the most equitable and consistent with its fiduciary
obligations to the Fund and to such other clients.
(iv) Records and Reports. Subadviser (A) shall maintain such
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books and records as are required based on the services
provided by Subadviser pursuant to this Agreement under the
1940 Act and as are necessary for Subadviser to meet its
record keeping obligations generally set forth under Section
31 and related rules thereunder, (B) shall render to the
Board such periodic and special reports as the Board or
Investment Manager may reasonably request in writing, and
(C) shall meet with any persons at the request of Investment
Manager or the Board for the purpose of reviewing
Subadviser's performance under this Agreement at reasonable
times and upon reasonable advance written notice.
(v) Transaction Reports. Subadviser shall provide the Fund's
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custodian on each business day with information relating to
all transactions concerning the Fund's assets and shall
provide Investment Manager with such information upon
Investment Manager's request.
(b) Compliance Program and Ongoing Certification(s). As requested,
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Subadviser shall timely provide to Investment Manager (i)
information and commentary for the Fund's annual and semi-annual
reports, in a format approved by Investment Manager, and shall (A)
certify that such information and commentary does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the information and commentary not
misleading, in a format reasonably requested by Investment
Manager, as it may be amended from time to time, and (B) provide
(i) additional certifications related to Subadviser's management
of the Fund in order to support the Fund's filings on Form N-CSR
and Form N-Q, and the Fund's Principal Executive Officer's and
Principal Financial Officer's certifications under Rule 30a-2 of
the 1940 Act, thereon; in a format reasonably requested by
Investment Manager, as it may be amended from time to time, (ii) a
quarterly sub-certification with respect to compliance matters
related to Subadviser and the Subadviser's management of the Fund,
in a format reasonably requested by Investment Manager, as it may
be amended from time to time; and (iii) an annual certification
from the Subadviser's Chief Compliance Officer, appointed under
Rule 206(4)-7 of the Investment Advisers Act of 1940 (the
"Advisers Act"), or his or her designee with respect to the design
and operation of Subadviser's compliance program, in a format
reasonably requested by Investment Manager, as it may be amended
from time to time.
(c) Maintenance of Records. Subadviser shall timely furnish to
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Investment Manager all information relating to Subadviser's
services hereunder which are needed by
Investment Manager to maintain the books and records of the Fund
required under the 1940 Act. Subadviser shall maintain for the
Fund the records required by paragraphs (b)(5), (b)(6), (b)(7),
(b)(9), (b)(10) and (f) of Rule 31a-1 under the 1940 Act and any
additional records as agreed upon by Subadviser and Investment
Manager. Subadviser agrees that all records which it maintains for
the Fund are the property of the Fund and Subadviser will
surrender promptly to the Fund any of such records upon the Fund's
request; provided, however, that Subadviser may retain a copy of
such records. Subadviser further agrees to preserve for the
periods prescribed under the 1940 Act any such records as are
required to be maintained by it pursuant to paragraph 1(a) hereof.
(d) Fidelity Bond and Code of Ethics. Subadviser will provide the Fund
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with reasonable evidence that, with respect to its activities on
behalf of the Fund, Subadviser is maintaining (i) adequate
fidelity bond insurance and (ii) an appropriate Code of Ethics and
related reporting procedures.
(e) Confidentiality. Subadviser agrees that it shall exercise the same
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standard of care that it uses to protect its own confidential and
proprietary information, but no less than reasonable care, to
protect the confidentiality of the Portfolio Information. As used
herein "Portfolio Information" means confidential and proprietary
information with regard to the portfolio holdings and
characteristics of the portion of the Fund allocated to
Subadviser, that Subadviser manages under the terms of this
Agreement. Subadviser will restrict access to the Portfolio
Information to those employees of Subadviser who will use it only
for the purpose of managing its portion of the Fund. The foregoing
shall not prevent Subadviser from disclosing Portfolio Information
that is (1) publicly known or becomes publicly known through no
unauthorized act, (2) rightfully received from a third party
without obligation of confidentiality, (3) approved in writing by
Investment Manager for disclosure, or (4) required to be disclosed
pursuant to a requirement of a governmental agency or law so long
as Subadviser provides (to the extent permitted under applicable
law) Investment Manager with prompt written notice of such
requirement prior to any such disclosure.
2. Investment Manager's Duties. Investment Manager shall continue to have
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responsibility for all other services to be provided to the Fund
pursuant to the Advisory Agreement and shall oversee and review
Subadviser's performance of its duties under this Agreement. Investment
Manager shall also retain direct portfolio management responsibility
with respect to any assets of the Fund which are not allocated by it to
the portfolio management of Subadviser as provided in paragraph 1(a)
hereof or to any other subadviser. Investment Manager will periodically
provide to Subadviser a list of the affiliates of Investment Manager or
the Fund to which investment restrictions apply, and will specifically
identify in writing (a) all publicly traded companies in which the Fund
may not invest, together with ticker symbols for all such companies
(Subadviser will assume that any company name not accompanied by a
ticker symbol is not a publicly traded company), and (b) any affiliated
brokers and any restrictions that apply to the use of those brokers by
the Fund. The Investment Manager shall provide file transfer
software to the Subadviser. The purpose of this software is to
facilitate the transfer of electronic files of transaction and holdings
data from the Subadviser to the Fund's custodian. The cost of this
software will be borne by the Investment Manager. In addition, the
Investment Manager will provide notice to the Subadviser on a daily
basis of the reconciliation of the securities positions sent to the
Investment Manager via the file transfer software and the related
positions on the records of the Investment Manager.
3. Documents Provided to Subadviser. Investment Manager has delivered or
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will deliver to Subadviser current copies and supplements thereto of
each of the Prospectus and SAI pertaining to the Fund, and will promptly
deliver to it all future amendments and supplements, if any.
4. Compensation of Subadviser. For the services provided and the expenses
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assumed pursuant to this Agreement, Investment Manager will pay to
Subadviser, effective from the date of this Agreement, a fee which shall
be accrued daily and paid monthly, on or before the last business day of
the next succeeding calendar month, from the Fund's assets at the annual
rates as a percentage of the Fund's average daily net assets set forth
in the attached Schedule A which Schedule can be modified from time to
time upon mutual agreement of the parties to reflect changes in annual
rates, subject to appropriate approvals required by the 1940 Act, if
any. If this Agreement becomes effective or terminates before the end of
any month, the fee for the period from the effective date to the end of
the month or from the beginning of such month to the date of
termination, as the case may be, shall be prorated according to the
proportion that such month bears to the full month in which such
effectiveness or termination occurs.
5. Liability of Subadviser. Subadviser agrees to perform faithfully the
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services required to be rendered to the Fund under this Agreement, but
nothing herein contained shall make Subadviser or any of its officers,
partners, or employees liable for any loss sustained by the Fund or its
officers, directors, or shareholders, Investment Manager, or any other
person on account of the services which Subadviser may render or fail to
render under this Agreement; provided, however, that nothing herein
shall protect Subadviser against liability to the Fund or to any of its
shareholders, to which Subadviser would otherwise be subject, by reason
of its willful misfeasance, bad faith, or gross negligence in the
performance of its duties, or by reason of its reckless disregard of its
obligations and duties under this Agreement. Nothing in this Agreement
shall protect Subadviser from any liabilities, which it may have under
the Securities Act of 1933, as amended, (the "1933 Act") or the 1940
Act. Subadviser does not warrant that the portion of the assets of the
Fund managed by Subadviser will achieve any particular rate of return or
that its performance will match any benchmark index or other standard or
objective.
6. Representations of Subadviser. Subadviser represents and warrants as
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follows:
(a) Subadviser (i) is registered as an investment adviser under the
Advisers Act and will continue to be so registered for so long as
this Agreement remains in effect; (ii) is not prohibited by the
1940 Act or the Advisers Act from performing the services
contemplated by this Agreement; (iii) has appointed a Chief
Compliance
Officer under Rule 206(4)-7 of the Advisers Act; (iv) as of
October 5, 2004, has adopted written policies and procedures that
are reasonably designed to prevent violations of the Advisers Act
from occurring, detect violations that have occurred, correct
promptly any violations that have occurred, and will provide
promptly notice of any material violations relating to the Fund to
Investment Manager; (v) has met and will seek to continue to meet
for so long as this Agreement remains in effect, any other
applicable federal or state requirements, or the applicable
requirements of any regulatory or industry self-regulatory agency
necessary to be met in order to perform the services contemplated
by this Agreement; (vi) has the authority to enter into and
perform the services contemplated by this Agreement; and (vii)
will promptly notify Investment Manager of the occurrence of any
event that would disqualify Subadviser from serving as an
investment adviser of an investment company pursuant to Section
9(a) of the 1940 Act or otherwise.
(b) Subadviser has adopted a written code of ethics complying with the
requirements of Rule 17j-1 under the 1940 Act and will provide
Investment Manager with a copy of the code of ethics. Within 60
days of the end of the last calendar quarter of each year that
this Agreement is in effect, a duly authorized officer of
Subadviser shall certify to Investment Manager that Subadviser has
complied with the requirements of Rule 17j-1 during the previous
year and that there has been no material violation of Subadviser's
code of ethics or, if such a violation has occurred, that
appropriate action was taken in response to such violation.
(c) Subadviser has provided Investment Manager with a copy of its Form
ADV Part II, which as of the date of this Agreement is its Form
ADV Part II as most recently deemed to be filed with the
Securities and Exchange Commission ("SEC"), and promptly will
furnish a copy of all amendments to Investment Manager at least
annually.
(d) Subadviser will promptly notify Investment Manager of any changes
in the Controlling Shareholders/Managing Partners or in the key
personnel who are either the portfolio manager(s) responsible for
the Fund or the Subadviser's Chief Executive Officer or President,
or if there is otherwise an actual or expected change in control
or management of Subadviser.
(e) Subadviser agrees that neither it nor any of its affiliates will
in any way refer directly or indirectly to its relationship with
the Fund or Investment Manager, or any of their respective
affiliates in offering, marketing, or other promotional materials
without the prior written consent of Investment Manager; provided
that Subadviser shall not be required to obtain Investement
Manager's prior written consent to make factual statements
regarding the fact that it serves as subadviser to the Fund in
responding to requests for information, in required disclosures or
in responding to regulatory inquiries.
7. Representations of Investment Manager. Investment Manager represents and
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warrants as follows:
(a) Investment Manager (i) is registered as an investment adviser
under the Advisers Act and will continue to be so registered for
so long as this Agreement remains in effect; (ii) is not
prohibited by the 1940 Act or the Advisers Act from performing the
services contemplated by this Agreement, (iii) has met and will
seek to continue to meet for so long as this Agreement remains in
effect, any other applicable federal or state requirements, or the
applicable requirements of any regulatory or industry
self-regulatory agency necessary to be met in order to perform the
services contemplated by this Agreement; (iv) has the authority to
enter into and perform the services contemplated by this
Agreement; and (v) will promptly notify Subadviser of the
occurrence of any event that would disqualify Investment Manager
from serving as an investment adviser of an investment company
pursuant to Section 9(a) of the 1940 Act or otherwise.
(b) Investment Manager agrees that neither it nor any of its
affiliates will in any way refer directly or indirectly to its
relationship with Subadviser, or any of its affiliates in
offering, marketing, or other promotional materials without the
prior written consent of Subadviser; provided that Investment
Manager shall not be required to obtain Subadviser's prior written
consent to make factual statements regarding the fact that
Subadviser serves as subadviser to the Fund in responding to
requests for information, in required disclosures or in responding
to regulatory inquiries.
8. Liability and Indemnification.
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(a) Except as may otherwise be provided by the 1940 Act or any other
federal securities law, Subadviser, any of its affiliates and any
of the officers, partners, employees, consultants, or agents
thereof shall not be liable for any losses, claims, damages,
liabilities, or litigation (including legal and other expenses)
incurred or suffered by the Fund, Investment Manager, or any of
its affiliated persons thereof (within the meaning of Section
2(a)(3) of the 0000 Xxx) or controlling persons thereof (as
described in Section 15 of the 1933 Act) (collectively, "Fund and
Investment Manager Indemnitees") as a result of any error of
judgment or mistake of law by Subadviser with respect to the Fund,
except that nothing in this Agreement shall operate or purport to
operate in any way to exculpate, waive, or limit the liability of
Subadviser for, and Subadviser shall indemnify and hold harmless
the Investment Manager Indemnitees against any and all losses,
claims, damages, liabilities, or litigation (including reasonable
legal and other expenses) to which any of the Investment Manager
Indemnitees may become subject under the 1933 Act, the 1940 Act,
the Advisers Act, or under any other statute, at common law, or
otherwise arising out of or based on (i) any willful misconduct,
bad faith, reckless disregard, or gross negligence of Subadviser
in the performance of any of its duties or obligations hereunder;
(ii) any untrue statement of a material fact regarding the
Subadviser contained in the Prospectus and SAI, proxy materials,
reports, advertisements, sales literature, or other materials
pertaining to the Fund or the omission to state therein a material
fact
regarding the Subadviser known to Subadviser which was required to
be stated therein or necessary to make the statements therein not
misleading, if such statement or omission was made in reliance
upon written information furnished to Investment Manager or the
Fund by the Subadviser Indemnitees (as defined below) for use
therein; or (iii) any violation of federal or state statutes or
regulations by Subadviser. It is further understood and agreed
that Subadviser may rely upon information furnished to it by
Investment Manager that it reasonably believes to be accurate and
reliable. The federal securities laws impose liabilities in
certain circumstances on persons who act in good faith, and
therefore nothing herein shall in any way constitute a waiver of
limitation of any rights which Investment Manager may have under
any securities laws.
(b) Except as may otherwise be provided by the 1940 Act or any other
federal securities law, Investment Manager and the Fund shall not
be liable for any losses, claims, damages, liabilities, or
litigation (including legal and other expenses) incurred or
suffered by Subadviser or any of its affiliated persons thereof
(within the meaning of Section 2(a)(3) of the 0000 Xxx) or
controlling persons (as described in Section 15 of the 1933 Act)
(collectively, "Subadviser Indemnitees") as a result of any error
of judgment or mistake of law by Investment Manager with respect
to the Fund, except that nothing in this Agreement shall operate
or purport to operate in any way to exculpate, waive, or limit the
liability of Investment Manager for, and Investment Manager shall
indemnify and hold harmless the Subadviser Indemnitees against any
and all losses, claims, damages, liabilities, or litigation
(including reasonable legal and other expenses) to which any of
the Subadviser Indemnitees may become subject under the 1933 Act,
the 1940 Act, the Advisers Act, or under any other statute, at
common law, or otherwise arising out of or based on (i) any
willful misconduct, bad faith, reckless disregard, or gross
negligence of Investment Manager in the performance of any of its
duties or obligations hereunder; (ii) any untrue statement of a
material fact contained in the Prospectus and SAI, proxy
materials, reports, advertisements, sales literature, or other
materials pertaining to the Fund or the omission to state therein
a material fact known to Investment Manager which was required to
be stated therein or necessary to make the statements therein not
misleading, unless such statement or omission concerned the
subadviser and was made in reliance upon written information
furnished to Investment Manager or the Fund by a Subadviser
Indemnitee for use therein, or (iii) any violation of federal or
state statutes or regulations by Investment Manager or the Fund.
(c) After receipt by Investment Manager or Subadviser, its affiliates,
or any officer, director, employee, or agent of any of the
foregoing, entitled to indemnification as stated in (a) or (b)
above ("Indemnified Party") of notice of the commencement of any
action, if a claim in respect thereof is to be made against any
person obligated to provide indemnification under this section
("Indemnifying Party"), such Indemnified Party shall notify the
Indemnifying Party in writing of the commencement thereof as soon
as practicable after the summons or other first
written notification giving information of the nature of the claim
that has been served upon the Indemnified Party; provided that the
failure to so notify the Indemnifying Party will not relieve the
Indemnifying Party from any liability under this section, except
to the extent that the omission results in a failure of actual
notice to the Indemnifying Party and such Indemnifying Party is
damaged solely as a result of the failure to give such notice. The
Indemnifying Party, upon the request of the Indemnified Party,
shall retain counsel satisfactory to the Indemnified Party to
represent the Indemnified Party in the proceeding, and shall pay
the fees and disbursements of such counsel related to such
proceeding. In any such proceeding, any Indemnified Party shall
have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such
Indemnified Party unless (1) the Indemnifying Party and the
Indemnified Party shall have mutually agreed to the retention of
such counsel, or (2) the named parties to any such proceeding
(including any impleaded parties) include both the Indemnifying
Party and the Indemnified Party and representation by both parties
by the same counsel would be inappropriate due to actual or
potential differing interests between them. The Indemnifying Party
shall not be liable for any settlement of any proceeding effected
without its written consent, which consent shall not be
unreasonably withheld, but if settled with such consent or if
there be a final judgment for the plaintiff, the Indemnifying
Party agrees to indemnify the Indemnified Party from and against
any loss or liability by reason of such settlement or judgment.
9. Duration and Termination.
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(a) Unless sooner terminated as provided herein, this Agreement shall
continue in effect for a period of more than two years from the
date written above only so long as such continuance is
specifically approved at least annually in conformity with the
requirements of the 1940 Act. Thereafter, if not terminated, this
Agreement shall continue automatically for successive periods of
12 months each, provided that such continuance is specifically
approved at least annually (i) by a vote of a majority of the
Board members who are not parties to this Agreement or interested
persons (as defined in the 0000 Xxx) of any such party, and (ii)
by the Board or by a vote of the holders of a majority of the
outstanding voting securities (as defined in the 1940 Act) of the
Fund.
(b) Notwithstanding the foregoing, this Agreement may be terminated at
any time, without the payment of any penalty, by the Board or by
vote of a majority of the outstanding voting securities (as
defined in the 0000 Xxx) of the Fund on 60 days' written notice to
Subadviser. This Agreement may also be terminated, without the
payment of any penalty, by Investment Manager (i) upon 60 days'
written notice to Subadviser; (ii) upon material breach by
Subadviser of any representations and warranties set forth in this
Agreement, if such breach has not been cured within 20 days after
written notice of such breach; or (iii) immediately if, in the
reasonable judgment of Investment Manager, Subadviser becomes
unable to discharge its duties and obligations under this
Agreement, including
circumstances such as the insolvency of Subadviser or other
circumstances that could adversely affect the Fund. Subadviser may
terminate this Agreement at any time, without payment of any
penalty, (1) upon 60 days' written notice to Investment Manager;
or (2) upon material breach by Investment Manager of any
representations and warranties set forth in the Agreement, if such
breach has not been cured within 20 days after written notice of
such breach. This Agreement shall terminate automatically in the
event of its assignment (as defined in the 0000 Xxx) or upon the
termination of the Advisory Agreement.
(c) In the event of termination of the Agreement, those paragraphs of
the Agreement which govern conduct of the parties' future
interactions with respect to the Subadviser having provided
investment management services to the Fund(s) for the duration of
the Agreement, including, but not limited to, paragraphs
1(a)(iv)(A), 1(d), 1(e), 5, 8(a), 8(b), 8(c), 15, 17, and 18,
shall survive such termination of the Agreement.
10. Subadviser's Services Are Not Exclusive. Nothing in this Agreement shall
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limit or restrict the right of Subadviser or any of its partners,
officers, or employees to engage in any other business or to devote his
or her time and attention in part to the management or other aspects of
any business, whether of a similar or a dissimilar nature, or limit or
restrict Subadviser's right to engage in any other business or to render
services of any kind to any other mutual fund, corporation, firm,
individual, or association.
11. References to Subadviser. During the term of this Agreement, Investment
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Manager agrees to furnish to Subadviser at its principal office all
prospectuses, proxy statements, reports to shareholders, sales
literature, or other material prepared for distribution to sales
personnel, shareholders of the Fund or the public, which refer to
Subadviser or its clients in any way, prior to use thereof and not to
use such material if Subadviser reasonably objects in writing five
business days (or such other time as may be mutually agreed upon) after
receipt thereof. Sales literature may be furnished to Subadviser
hereunder by first-class or overnight mail, electronic or facsimile
transmission, or hand delivery.
12. Notices. Any notice under this Agreement must be given in writing as
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provided below or to another address as either party may designate in
writing to the other.
Subadviser:
Xxxx X. Xxxxx
Director of Operations
MDTA LLC
000 Xxxxxxxxx Xxxx Xxxxx
Xxxxxxxxx, XX 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
Investment Manager:
Xxx X. Xxxxxxx
Vice President, Funds Operations and Compliance
Ameriprise Financial
0000 Xxxxxxxxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Fax: (000) 000-0000
with a copy to:
Xxxxxxxxxxx X. Xxxxxxxx
Vice President and Group Counsel
Ameriprise Financial
00000 Xxxxxxxxxx Xxxxxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
13. Amendments. This Agreement may be amended by mutual consent, subject to
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approval by the Board and the Fund's shareholders to the extent required
by the 1940 Act.
14. Assignment. No assignment of this Agreement (as defined in the 0000 Xxx)
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shall be made by Investment Manager or Subadviser without the prior
written consent of the Fund and Investment Manager or Subadviser (as
applicable). Notwithstanding the foregoing, no assignment shall be
deemed to result from any changes in the directors, officers, or
employees of Investment Manager or Subadviser except as may be provided
to the contrary in the 1940 Act or the rules and regulations thereunder.
15. Governing Law. This Agreement, and, in the event of termination of the
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Agreement, those paragraphs that survive such termination of the
Agreement under paragraph 9, shall be governed by the laws of the State
of Minnesota, without giving effect to the conflicts of laws principles
thereof, or any applicable provisions of the 1940 Act. To the extent
that the laws of the State of Minnesota, or any of the provision of this
Agreement, conflict with applicable provisions of the 1940 Act, the
latter shall control.
16. Entire Agreement. This Agreement embodies the entire agreement and
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understanding among the parties hereto, and supersedes all prior
agreements and understandings relating to the subject matter hereof.
17. Severability. Should any part of this Agreement be held invalid by a
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court decision, statute, rule, or otherwise, the remainder of this
Agreement shall not be affected thereby. This Agreement and, in the
event of termination of the Agreement, those paragraphs that survive
such termination of the Agreement under paragraph 9, shall be binding
upon and shall inure to the benefit of the parties hereto and their
respective successors.
18. Interpretation. Any questions of interpretation of any term or provision
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of this Agreement having a counterpart in or otherwise derived from a
term or provision of the 1940 Act shall be resolved by reference to such
term or provision in the 1940 Act and to interpretation thereof, if any,
by the federal courts or, in the absence of any controlling decision of
any such court, by rules, regulations, or orders of the SEC validly
issued pursuant to the 1940 Act. Where the effect of a requirement of
the 1940 Act reflected in any provision of this Agreement is altered by
a rule, regulation, or order of the SEC, whether of special or general
application, such provision shall be deemed to incorporate the effect of
such rule, regulation, or order.
19. Headings. The headings in this Agreement are intended solely as a
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convenience and are not intended to modify any other provision herein.
20. Authorization. Each of the parties represents and warrants that the
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execution and delivery of this Agreement and the consummation of the
transactions contemplated by this Agreement have been duly authorized by
all necessary corporate action by such party and when so executed and
delivered, this Agreement will be the valid and binding obligation of
such party in accordance with its terms.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below as of the day and year first above
written.
RIVERSOURCE INVESTMENTS, LLC MDTA LLC
By: /s/ Xxxxx X. Xxxxx By: /s/ Xxxxxx X. Xxxxxxxx
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Signature Signature
Name: Xxxxx X. Xxxxx Name: Xxxxxx X. Xxxxxxxx
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Printed Printed
Title: Senior Vice President Title: President & CEO
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SUBADVISORY AGREEMENT
SCHEDULE A
Compensation pursuant to Paragraph 4 of Subadvisory Agreement shall be
calculated in accordance with the following schedule:
Average Daily Net Assets Rate
------------------------ ----
All Assets 60 basis points
It is the expectation of the parties that the assets subject to the
Subadivser's investment discretion will not normally exceed $100 million.
The rates set forth above apply to average daily net assets that are subject
to the Subadviser's investment discretion in the following fund:
RiverSource Small Cap Growth Fund, a series of RiverSource Strategy
Series, Inc.
Date: July 14, 2006
