INVESTMENT SUB-ADVISORY AGREEMENT
This AGREEMENT made this 14th day of November, 2011, by and between
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY, hereinafter
referred to as ?VALIC,? and COLUMBIA MANAGEMENT INVESTMENT
ADVISERS, LLC, hereinafter referred to as the ?SUB-ADVISER.?
VALIC and the SUB-ADVISER recognize the following:
(a) VALIC is a life insurance company organized under
Chapter 3 of the Texas Insurance Code and an
investment adviser registered under the Investment
Advisers Act of 1940, as amended (?Advisers
Act?).
(b) VALIC is engaged as the investment adviser of
VALIC Company I (?VC I?), pursuant to an
Investment Advisory Agreement between VALIC
and VC I, an investment company organized under
the general corporate laws of Maryland as a series
type of investment company issuing separate classes
(or series) of shares of common stock. VC I is
registered as an open-end, management investment
company under the Investment Company Act of
1940, as amended (?1940 Act?). The 1940 Act
prohibits any person from acting as an investment
adviser of a registered investment company except
pursuant to a written contract.
(c) VC I currently consists of thirty-three portfolios
(?Funds?):
Asset Allocation
Fund
Blue Chip Growth
Fund
Broad Cap Value
Income Fund
Capital
Conservation Fund
Core Equity Fund
Dividend Value
Fund
Emerging
Economies Fund
Foreign Value
Fund
Global Real Estate
Fund
Global Social
Awareness Fund
Global Strategy
Fund
Government
Securities Fund
Growth & Income
Fund
Growth Fund
Health Sciences
Fund
Inflation Protected
Fund
International
Equities Fund
International
Government Bond Fund
International
Growth I Fund
Large Cap Core Fund
Large Capital Growth Fund
Mid Cap Index Fund
Mid Cap Strategic Growth Fund
Money Market I Fund
Nasdaq-100? Index Fund
Science & Technology Fund
Small Cap Aggressive Growth Fund
Small Cap Fund
Small Cap Index Fund
Small Cap Special Values Fund
Small-Mid Growth Fund
Stock Index Fund
Value Fund
In accordance with VC I?s Articles of Incorporation
(the ?Articles?), new Funds may be added to VC I
upon approval of VC I?s Board of Directors without
the approval of Fund shareholders. This Agreement
will apply only to Funds set forth on the attached
Schedule A, and any other Funds as may be added
or deleted by amendment to the attached Schedule
A (?Covered Fund(s)?).
(d) The SUB-ADVISER is engaged principally in the
business of rendering investment advisory services
and is registered as an investment adviser under the
Advisers Act.
(e) VALIC desires to enter into an Investment Sub-
Advisory Agreement with the SUB-ADVISER for
all or a portion of the assets of the Covered Fund(s)
which VALIC determines from time to time to
assign to the SUB-ADVISER.
VALIC and the SUB-ADVISER agree as follows:
1. Services Rendered and Expenses Paid by the SUB-ADVISER
The SUB-ADVISER, subject to the control and supervision of VALIC
and VC I?s Board of Directors and in material conformity with the
1940 Act, all applicable laws and regulations thereunder, all other
applicable federal and state laws and regulations, including section
817(h) and Subchapter M of the Internal Revenue Code of 1986, as
amended (the ?Code?), VC I?s Articles, Bylaws, registration
statements, prospectus and stated investment objectives, policies and
restrictions of any Covered Fund(s) and any applicable procedures
adopted by VC I?s Board of Directors and provided to the SUB-
ADVISER, shall:
(a) manage the investment and reinvestment of the
assets of the Covered Fund(s) including, for
example, the evaluation of pertinent economic,
statistical, financial, and other data, the
determination, in its discretion without prior
consultation with VALIC or the VC I Board of
Directors, of the industries, securities and other
investments to be represented in each Covered
Fund?s portfolio, and the formulation and
implementation of investment programs.
(b) maintain a trading desk and place orders for the
purchase and sale of portfolio investments
(including futures contracts or other derivatives) for
each Covered Fund?s account with brokers or
dealers (including futures commission merchants)
selected by the SUB-ADVISER, or arrange for any
other entity to provide a trading desk and to place
orders with brokers and dealers (including futures
commission merchants) selected by the SUB-
ADVISER, subject to the SUB-ADVISER?s
control, direction, and supervision, which brokers or
dealers may include brokers or dealers (including
futures commission merchants) affiliated with the
SUB-ADVISER, subject to applicable law.
(c) In performing its obligations under this Agreement,
the SUB-ADVISER may, at its own discretion,
delegate any or all of its discretionary investment,
advisory and other rights, powers and functions
hereunder to any advisory affiliate, without further
written consent of VALIC provided that the SUB-
ADVISER shall always remain liable for its
obligations hereunder.
VALIC agrees that, to the extent SUB-ADVISER is responsible for
managing only a portion of the assets of a Covered Fund, SUB-
ADVISER shall manage the portion of the assets of a Covered Fund
allocated to it as if it was a separate operating fund, unless instructed
otherwise in writing from VALIC, and shall comply with the
investment objectives, policies and restrictions applicable to a Covered
Fund and qualifications of a Covered Fund as a regulated investment
company under the Code with respect to the portion of assets of a
Covered Fund allocated to SUB-ADVISER.
The SUB-ADVISER will assist the Covered Fund(s) and its agents in
determining whether prices obtained by the Covered Fund(s) and its
agents for valuation purposes are consistent with the prices on the
SUB-ADVISER?s portfolio records relating to the assets of the
Covered Fund(s) for which the SUB-ADVISER has responsibility at
such times as VALIC shall reasonably request; provided, however, that
the parties acknowledge that the SUB-ADVISER is not the fund
accounting agent for the Covered Fund(s) and is not responsible for
pricing determinations or calculations and any information provided
pursuant to this position by SUB-ADVISER will be provided for
information purposes only.
In performing the services described in paragraph (b) above, the SUB-
ADVISER shall use its best efforts to obtain for the Covered Fund(s)
the best execution of portfolio transactions, under the circumstances of
each trade and on the basis of all relevant factors and considerations.
Subject to policies and procedures that may be adopted by VC I?s
Board of Directors and Section 28(e) of the Securities Exchange Act
of 1934, as amended, the SUB-ADVISER may cause the Covered
Fund(s) to pay to a broker a commission, for effecting a portfolio
transaction, in excess of the commission another broker would have
charged for effecting the same transaction, if the first broker provided
brokerage and/or research products or services, including statistical
data, to the SUB-ADVISER. The SUB-ADVISER shall not be deemed
to have acted unlawfully, or to have breached any duty created by this
Agreement, or otherwise, solely by reason of acting in accordance with
such authorization. In accordance with Section 11(a) of the 1934 Act
and Rule 11a2-2(T) thereunder, and subject to any other applicable
laws and regulations including Section 17(e) of the 1940 Act and Rule
17e-1 thereunder, the SUB-ADVISER may engage its affiliates, the
VALIC and its affiliates or any other subadviser to VC I and its
respective affiliates, as broker-dealers or futures commission
merchants to effect Covered Fund transactions in securities and other
investments for a Covered Fund.
Furthermore, on occasions when the SUB-ADVISER deems the
purchase or sale of a security to be in the best interest of one or more
of the Covered Fund(s) as well as other clients of the SUB-ADVISER,
it may allocate such transactions in the manner it considers to be the
most equitable and consistent with its fiduciary obligation to the
Covered Fund(s) and to such other clients. The SUB-ADVISER shall
not be deemed to have acted unlawfully, or to have breached any duty
created by this Agreement, or otherwise, solely by reason of acting
according to such authorization.
The SUB-ADVISER may aggregate sales and purchase orders of
securities held by the Covered Fund(s) with similar orders being made
simultaneously for other accounts managed by the SUB-ADVISER or
with accounts of the affiliates of the SUB-ADVISER, if in the SUB-
ADVISER?s reasonable judgment such aggregation is fair and
reasonable and consistent with the SUB-ADVISER?S fiduciary
obligations to the Covered Fund(s) and its other clients, considering
factors such as the advantageous selling or purchase price, brokerage
commission and other expenses. In accounting for such aggregated
order price, commission and other expenses shall be averaged on a per
bond or share basis daily. VALIC acknowledges that the determination
whether such aggregation is fair and reasonable by the SUB-
ADVISER is subjective and that such aggregation of orders may not
result in more favorable pricing or lower brokerage commissions in all
instances.
VALIC authorizes and empowers the SUB-ADVISER to direct the
Covered Fund?s Custodian to open and maintain brokerage accounts
for securities and other property, including financial and commodity
futures and commodities and options thereon (all such accounts
hereinafter called ?brokerage accounts?) for and in the name of the
Covered Fund(s) and to execute for the Covered Fund(s) as its agent
and attorney-in-fact standard customer agreements with such broker or
brokers as the SUB-ADVISER shall select as provided above. With
respect to brokerage accounts for financial and commodity futures and
commodities and options thereon, the SUB-ADVISER shall select
such brokers, as approved by VALIC, prior to the establishment of
such brokerage account. The SUB-ADVISER may, using such of the
securities and other property in the Covered Fund as the SUB-
ADVISER deems necessary or desirable, direct the Covered Fund?s
Custodian to deposit for the Covered Fund original and maintenance
brokerage and margin deposits and otherwise direct payments of cash,
cash equivalents and securities and other property into such brokerage
accounts and to such brokers as the SUB-ADVISER deems desirable
or appropriate.
The SUB-ADVISER shall maintain records adequately demonstrating
compliance with its obligations under this Agreement and report
periodically to VALIC and VC I?s Board of Directors regarding the
performance of its services under this Agreement. The SUB-
ADVISER will make available to VALIC and VC I promptly upon
their reasonable written request all of the Covered Fund(s)? investment
records and ledgers to assist VALIC and VC I in compliance with
respect to each Covered Fund?s securities transactions as required by
the 1940 Act and the Advisers Act, as well as other applicable laws.
The SUB-ADVISER will furnish VC I?s Board of Directors such
periodic and special reports as VALIC and VC I?s Board of Directors
may reasonably request. The SUB-ADVISER will furnish to
regulatory authorities any information or reports in connection with
such services which may be requested in order to ascertain whether the
operations of the Covered Fund(s) are being conducted in a manner
consistent with applicable laws and regulations.
Should VALIC at any time make any definite determination as to any
investment policy and notify the SUB-ADVISER in writing of such
determination, within a reasonable time after receipt of such notice as
agreed to by the SUBADVISER and VALIC the SUB-ADVISER shall
be bound by such determination for the period, if any, specified in such
notice or until similarly notified that such determination has been
revoked, provided such determination will permit SUB-ADVISER to
comply with the first paragraph of this Section.
The SUB-ADVISER will not hold money or investments on behalf of
VC I. The money and investments will be held by the Custodian of VC
I. The SUB-ADVISER will arrange for the transmission to the
Custodian for VC I, on a daily basis, such confirmation, trade tickets
and other documents as may be necessary to enable the Custodian
perform its administrative responsibilities with respect to the Covered
Fund(s). The SUB-ADVISER further shall have the authority to
instruct the Custodian of VC I (i) to pay cash for securities and other
property delivered, or to be delivered, to the Custodian for the
Covered Fund(s), (ii) to deliver securities and other property against
payment for the Covered Fund(s), and (iii) to transfer assets and funds
to such brokerage accounts as the SUB-ADVISER may designate, all
consistent with the powers, authorities and limitations set forth herein.
The SUB-ADVISER shall not have the authority to cause the
Custodian to deliver securities and other property except as expressly
provided for in this Agreement or as provided by VALIC in writing to
the Custodian.
VALIC will vote proxies relating to securities held by the Covered
Fund(s). VALIC will vote all such proxies in accordance with such
proxy voting guidelines and procedures adopted by the Board of
Directors. VALIC may, on certain non-routine matters, consult with
the SUB-ADVISER before voting proxies relating to securities held by
the Covered Fund(s). VALIC will instruct the Custodian and other
parties providing services to VC I promptly to forward to the proxy
voting service copies of all proxies and shareholder communications
relating to securities held by each Covered Fund(s). The SUB-
ADVISER shall not be responsible for taking any action on behalf of
the Covered Funds in connection with any claim or potential claim in
any bankruptcy proceedings, class action securities litigation, or other
litigation or proceeding affecting securities held at any time in the
Covered Fund(s) including, without limitation, to file proofs of claim
or other documents related to such proceedings (the ?Litigation?) or to
investigate, initiate, supervise, or monitor the Litigation involving the
Covered Funds? assets.
The SUB-ADVISER shall for all purposes herein be deemed to be an
independent contractor and shall, unless otherwise provided or
authorized, have no authority to act or represent VALIC or VC I other
than in furtherance of the SUB-ADVISER?s duties and responsibilities
as set forth in this Agreement.
Except as otherwise agreed, or as otherwise provided herein, the SUB-
ADVISER shall bear the expense of discharging its responsibilities
hereunder and VALIC shall pay, or arrange for others to pay, all
VALIC?s expenses, except that VALIC shall in all events pay the
compensation described in Section 3 of this Agreement.
VALIC and the SUB-ADVISER acknowledge that VC I will be
ultimately responsible for all brokerage commissions, taxes, custodian
fees and other transaction-related fees incurred on behalf of the
Covered Funds(s).
The SUB-ADVISER is hereby prohibited from consulting with any
other sub-adviser of the Covered Fund(s) (or a portion thereof) or any
other sub-adviser to a fund under common control with the Covered
Fund(s) (or a portion thereof) concerning securities transactions of the
Covered Fund(s) (or a portion thereof) in securities or other assets,
except as otherwise permitted by the 1940 Act or any rules thereunder.
2. Confidentiality
The SUB-ADVISER will not disclose or use any records or
information obtained pursuant to this Agreement in any manner
whatsoever except as expressly authorized in this Agreement or as
reasonably required to execute transactions on behalf of the Covered
Fund(s), and will keep confidential any non-public information
obtained directly as a result of this service relationship, and disclose
such non-public information only if VALIC or the VC I Board of
Directors has authorized such disclosure, or if such information is or
hereafter becomes ascertainable from public or published information
or trade sources, or if such information is or hereafter otherwise is
know by the SUB-ADVISER, or if such disclosure is expressly
required or requested by applicable federal or state authorities
(including the SUB-ADVISER?S regulatory examiners) or court of law
of competent jurisdiction or to the extent such disclosure is reasonably
required by auditors or attorneys of the SUB-ADVISER in connection
with the performance of their professional services or as may otherwise
be contemplated by this Agreement. Notwithstanding the foregoing,
the SUB-ADVISER may disclose the total return earned by the
Covered Fund(s) and may include such total return in the calculation
of composite performance information.
VALIC will not disclose or use any records or information belonging
to the SUB-ADVISER obtained pursuant to this Agreement in any
manner whatsoever except as expressly authorized in this Agreement
or as reasonably required in performance of its advisory services to the
Covered Funds, and will keep confidential any information obtained
pursuant to this service relationship, and disclose such information
only if the SUB-ADVISER has authorized such disclosure, or if such
information is or hereafter becomes ascertainable from public or
published information or trade sources, or if such information is
expressly required or requested by applicable federal or state
authorities (including VALIC?s regulatory examiners) or court of law
of competent jurisdiction or to the extent such disclosure is reasonably
required by auditors or attorneys of VALIC in connection with the
performance of their professional services or as may otherwise be
contemplated by this Agreement.
3. Compensation of the SUB-ADVISER
VALIC shall pay to the SUB-ADVISER, as compensation for the
services rendered and expenses paid by the SUB-ADVISER, a
monthly fee or fees based on each Covered Fund?s average daily net
asset value computed for each Covered Fund as provided for herein
and in the fee schedule attached hereto as Schedule A. Schedule A may
be amended from time to time by written agreement executed by
VALIC and the SUB-ADVISER, provided that amendments are made
in conformity with applicable laws and regulations and the Articles and
Bylaws of VC I. Any change in Schedule A pertaining to any new or
existing Covered Fund shall not be deemed to affect the interest of any
other Covered Fund and shall not require the approval of shareholders
of any other Covered Fund.
The average daily net asset value shall be determined by taking the
average of all of the determinations of net asset value, made in the
manner provided in VC I?s constitutive documents, for each business
day during a given calendar month. VALIC shall pay this fee for each
calendar month as soon as practicable after the end of that month, but
in any event no later than fifteen (15) days following the end of the
month.
If the SUB-ADVISER serves for less than a whole month, the
foregoing compensation shall be prorated.
The payment of advisory fees related to the services of the SUB-
ADVISER under this Agreement shall be the sole responsibility of
VALIC and shall not be the responsibility of VC I.
4. Scope of the SUB-ADVISER?s Activities
VALIC understands that the SUB-ADVISER and its affiliates now act,
will continue to act and may act in the future as investment adviser to
fiduciary and other managed accounts and as investment adviser to
other investment companies, and VALIC has no objection to the SUB-
ADVISER so acting, provided that whenever a Covered Fund(s) and
one or more other accounts or investment companies advised by the
SUB-ADVISER have available funds for investment, investments
suitable and appropriate for each will be allocated in accordance with a
methodology believed by the SUB-ADVISER to be equitable to each
entity. The SUB-ADVISER similarly agrees to allocate opportunities
to sell securities on an equitable basis. VALIC recognizes that, in
some cases, this procedure may limit the size of the position that may
be acquired or sold for a Covered Fund(s). In addition, VALIC
understands that the persons employed by the SUB-ADVISER to assist
in the performance of the SUB-ADVISER?s duties hereunder will not
devote their full time to such service and nothing contained herein
shall be deemed to limit or restrict the right of the SUB-ADVISER or
any affiliate of the SUB-ADVISER to engage in and devote time and
attention to other business or to render services of whatever kind or
nature.
Except as otherwise required by the 1940 Act, any of the shareholders,
directors, officers and employees of VALIC may be a shareholder,
director, officer or employee of, or be otherwise interested in, the
SUB-ADVISER, and in any person controlling, controlled by or under
common control with the SUB-ADVISER; and the SUB-ADVISER,
and any person controlling, controlled by or under common control
with the SUB-ADVISER, may have an interest in VALIC.
The SUB-ADVISER shall not be liable to VALIC, VC I, the Covered
Funds, or to any shareholder in the Covered Fund(s), and VALIC shall
indemnify the SUB-ADVISER, for any act or omission in rendering
services under this Agreement, or for any losses sustained in
connection with the matters to which this agreement relates, so long as
there has been no willful misfeasance, bad faith, gross negligence, or
reckless disregard of obligations or duties on the part of the SUB-
ADVISER in performing its duties under this Agreement. The
provisions of this paragraph shall survive the termination of the
Agreement.
VALIC shall perform quarterly and annual tax compliance tests and
promptly furnish reports of such tests to the SUB-ADVISER after each
quarter end to ensure that the Covered Fund(s) is in compliance with
Subchapter M of the Code and Section 817(h) of the Code. VALIC
shall apprise the SUB-ADVISER promptly after each quarter end of
any potential non-compliance with the diversification requirements in
such Code provisions. If so advised, the SUB-ADVISER shall take
prompt action so that the Covered Fund complies with such Code
diversification provisions, as directed by VALIC. VALIC
acknowledges that the SUB-ADVISER shall rely completely upon
VALIC?s determination of whether and to what extent each Covered
Fund(s) is in compliance with Subchapter M and Section 817(h) of the
Code and that the SUB-ADVISER has no separate and independent
responsibility to test for such compliance.
The SUB-ADVISER does not guarantee the future performance of the
Covered Fund(s) or any specific level of performance, the success of
any investment decision or strategy that SUB-ADVISER may use, or
the success of SUB-ADVISER's overall management of the Covered
Fund(s). VALIC and VC I understand that investment decisions made
for the Covered Fund(s) by the SUB-ADVISER are subject to various
market, currency, economic, political and business risks and that those
investment decisions will not always be profitable. The SUB-
ADVISER will manage only the assets of the Covered Fund(s)
allocated to its management by VALIC and in making investment
decisions for the Covered Fund(s).
5. Representations of the SUB-ADVISER and VALIC
The SUB-ADVISER represents, warrants, and agrees as follows:
(a) The SUB-ADVISER (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 continue to meet
for so long as this Agreement remains in effect, any
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 immediately notify VALIC
of the occurrence of any event that would disqualify
the SUB-ADVISER from serving as an investment
adviser of an investment company pursuant to
Section 9(a) of the 1940 Act or otherwise.
(b) The SUB-ADVISER has adopted a written code of
ethics complying with the requirements of Rule 17j-
1 under the 1940 Act and if it has not already done
so, will provide VALIC and VC I with a copy of
such code of ethics together with evidence of its
adoption.
(c) The SUB-ADVISER has provided VALIC and VC
I with a copy of its Form ADV as most recently
filed with the SEC and will promptly after filing its
annual update to its Form ADV with the SEC,
furnish a copy of such amendment to VALIC.
VALIC represents, warrants, and agrees as follows:
(a) VALIC: (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 continue to meet for so long as this Agreement
remains in effect, any 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
immediately notify the SUB-ADVISER of the
occurrence of any event that would disqualify
VALIC from serving as an investment adviser of an
investment company pursuant to Section 9(a) of the
1940 Act or otherwise.
(b) VALIC has the authority under the Investment
Advisory Agreement between VALIC and VC I to
delegate some or all of its responsibilities to one or
more sub-advisers and the delegation to the SUB-
ADVISER under this Agreement is authorized by
and consistent with the grant of authority in that
Investment Advisory Agreement.
6. Term of Agreement
This Agreement shall become effective as to the Covered Fund(s) set
forth on Schedule A on the date hereof and as to any other Fund on the
date of the Amendment to Schedule A adding such Fund in accordance
with this Agreement. Unless sooner terminated as provided herein, this
Agreement shall continue in effect for two years from its effective
date. Thereafter, this Agreement shall continue in effect, but with
respect to any Covered Fund, subject to the termination provisions and
all other terms and conditions hereof, only so long as such continuance
is approved at least annually by the vote of a majority of VC I?s
Directors who are not parties to this Agreement or interested persons
of any such parties, cast in person at a meeting called for the purpose
of voting on such approval, and by a vote of a majority of VC I?s
Board of Directors or a majority of that Covered Fund?s outstanding
voting securities (as defined in the 1940 Act).
This Agreement shall automatically terminate in the event of its
assignment as that term is defined in the 1940 Act, or in the event of
the termination of the Investment Advisory Agreement between
VALIC and VC I as it relates to any Covered Fund(s). The Agreement
may be terminated as to any Covered Fund at any time, without the
payment of any penalty, by vote of VC I?s Board of Directors or by
vote of a majority of that Covered Fund?s outstanding voting securities
on not more than 60 days? nor less than 30 days? prior written notice to
the SUB-ADVISER, or upon such shorter notice as may be mutually
agreed upon by the parties. This Agreement may also be terminated by
VALIC: (i) on not more than 60 days? nor less than 30 days? prior
written notice to the SUB-ADVISER, or upon such shorter notice as
may be mutually agreed upon by the parties, without the payment of
any penalty; or (ii) if the SUB-ADVISER becomes unable to discharge
its duties and obligations under this Agreement. The SUB-ADVISER
may terminate this Agreement at any time, or preclude its renewal
without the payment of any penalty, on not more than 60 days? nor less
than 30 days? prior written notice to VALIC, or upon such shorter or
longer notice as may be mutually agreed upon by the parties.
7. Indemnification
VALIC agrees to indemnify the SUB-ADVISER for losses, costs, fees,
expenses and claims which arise directly or indirectly (i) as a result of
a failure by VALIC to provide the services or furnish materials
required under the terms of this Agreement, or (ii) as the result of any
untrue statement of a material fact or any omission to state a material
fact required to be stated or necessary to make the statements, in light
of the circumstances under which they were made, not misleading in
any registration statements, proxy materials, reports, advertisements,
sales literature, or other materials pertaining to VC I or a Covered
Fund, except insofar as any such statement or omission was
specifically made in reliance on written information provided by the
SUB-ADVISER to VALIC. The provisions of this paragraph shall
survive the termination of this Agreement.
The SUB-ADVISER agrees to indemnify VALIC for losses and claims
which arise (i) as a result of the willful misfeasance, bad faith, gross
negligence or reckless disregard of obligations or duties by the SUB-
ADVISER; or (ii) as the result of any untrue statement of a material
fact or any omission to state a material fact required to be stated or
necessary to make the statements, in light of the circumstances under
which they were made, not misleading in any registration statements,
proxy materials, reports, advertisements, sales literature, or other
materials pertaining to VC I or a Covered Fund to the extent any such
statement or omission was made in reliance on written information
provided by the SUB-ADVISER. The provisions of this paragraph
shall survive the termination of this Agreement.
Promptly after receipt by either VALIC or SUB-ADVISER (an
?Indemnified Party?) under this Section 7 of the commencement of an
action, such Indemnified Party will, if a claim in respect thereof is to
be made against the other party (the ?Indemnifying Party?) under this
section, notify Indemnifying Party of the commencement thereof; but
the omission so to notify Indemnifying Party will not relieve it from
any liability that it may have to any Indemnified Party otherwise than
under this section. In case any such action is brought against any
Indemnified Party, and it notified Indemnifying Party of the
commencement thereof, Indemnifying Party will be entitled to
participate therein and, to the extent that it may wish, assume the
defense thereof, with counsel satisfactory to such Indemnified Party.
After notice from Indemnifying Party of its intention to assume the
defense of an action, the Indemnified Party shall bear the expenses of
any additional counsel obtained by it, and Indemnifying Party shall not
be liable to such Indemnified Party under this section for any legal or
other expenses subsequently incurred by such Indemnified Party in
connection with the defense thereof other than reasonable costs of
investigation.
8. Other Matters
The SUB-ADVISER may from time to time employ or associate with
itself any person or persons believed to be particularly fit to assist in its
performance of services under this Agreement, provided no such
person serves or acts as an investment adviser separate from the SUB-
ADVISER so as to require a new written contract pursuant to the 1940
Act. The compensation of any such persons will be paid by the SUB-
ADVISER, and no obligation will be incurred by, or on behalf of,
VALIC or VC I with respect to them.
The SUB-ADVISER agrees that all books and records which it
maintains for the Covered Fund(s) are the Covered Fund?s property.
The SUB-ADVISER also agrees upon request of VALIC or VC I, to
promptly surrender the books and records in accordance with the 1940
Act and rules thereunder; provided, however, that the SUB-ADVISER
may retain copies of such books and records to the extent necessary to
comply with applicable law or regulation. The SUB-ADVISER
further agrees to preserve for the periods prescribed by Rule 31a-2
under the 1940 Act the records required to be maintained by
subparagraphs (b)(5), (6), (7), (9), (10), (11) and paragraph (f) of Rule
31a-1 under the 1940 Act.
VALIC has herewith furnished the SUB-ADVISER copies of VC I?s
Prospectus, Statement of Additional Information, investment
objectives, policies and restrictions, and any applicable procedures
adopted by VC I?s Board of Directors, as currently in effect for the
Covered Fund(s) and agrees during the continuance of this Agreement
to furnish the SUB-ADVISER copies of any amendments or
supplements thereto before or at the time the amendments or
supplements become effective. Until VALIC delivers any amendments
or supplements to the SUB-ADVISER, the SUB-ADVISER shall be
fully protected in relying on the documents previously furnished to it.
The SUB-ADVISER is authorized to honor and act on any notice,
instruction or confirmation given by VALIC on behalf of VC I or the
Covered Fund(s) in writing signed or sent by any of the persons who
the SUB-ADVISER has reason to believe are acting in good authority.
The SUB-ADVISER shall not be liable for so acting in good faith
upon such instructions, confirmation or authority.
VALIC agrees to furnish the SUB-ADVISER at its principal office
prior to use thereof, copies of all prospectuses, proxy statements,
reports to shareholders, sales literature, or other material prepared for
distribution to shareholders of the Covered Fund(s) or the public that
refer in any way to the SUB-ADVISER, and not to use such material if
the SUB-ADVISER reasonably objects in writing within ten (10)
business days (or such other time as may be mutually agreed) after
receipt thereof. In the event of termination of this agreement, VALIC
will continue to furnish to the SUB-ADVISER copies of any of the
above-mentioned materials that refer in any way to the SUB-
ADVISER and shall cease to use the SUB-ADVISER name and/or
logo as soon as is reasonable. VALIC shall furnish or otherwise make
available to the SUB-ADVISER such other information relating to the
business affairs of VALIC and the Covered Fund as the SUB-
ADVISER at any time, or from time to time, may reasonably request in
order to discharge obligations hereunder. The provisions of this
paragraph shall survive the termination of this Agreement.
A successor by law of the parties to this Agreement shall be entitled to
the benefits of the indemnification contained herein. The
indemnification provisions contained herein shall survive any
termination of this Agreement.
VALIC agrees that the SUB-ADVISER may use the name of VALIC
or VC I in any material that merely refers in accurate terms to the
appointment of the SUB-ADVISER hereunder.
9. Applicability of Federal Securities Laws
This Agreement shall be interpreted in accordance with the laws of the
State of New York and applicable federal securities laws and
regulations, including definitions therein and such exemptions as may
be granted to VALIC or the SUB-ADVISER by the Securities and
Exchange Commission or such interpretive positions as may be taken
by the Commission or its staff. To the extent that the applicable law of
the State of New York, or any of the provisions herein, conflict with
applicable provisions of the federal securities laws, the latter shall
control.
10. Amendment and Waiver
The Agreement may be amended by mutual written consent of the
parties, subject to the requirements of the 1940 Act and the rules and
regulations promulgated and orders granted thereunder.
11. Notices
All notices hereunder shall be given in writing (and shall be deemed to
have been duly given upon receipt) by delivery in person, by facsimile,
by registered or certified mail or by overnight delivery (postage
prepaid, return receipt requested) to VALIC and to SUB-ADVISER at
the address of each set forth below:
If to VALIC: With a copy to:
Attn: Xxxx Xxxxxxxx Attn: Xxx Xxxx
2929 Xxxxx Parkway, L13 0000 Xxxxx
Xxxxxxx, X00-00
Xxxxxxx, Xxxxx 00000 Xxxxxxx, Xxxxx
00000
Tel: (000) 000-0000 Tel: (713) 831-
5399
Fax: (000) 000-0000 Fax: (713) 831-
4124
If to SUB-ADVISER: With a copy to:
Attn: Xxxx Xxxxx Attn: Xxxxx
XxXxxxxxxx
000 Xxxxxxxx Xxxxxx 000 Xxxxxxxx
Xxxxxx
Xxxxxx, XX 00000 Xxxxxx, XX
00000
Tel: (000) 000-0000 Tel: 617 912-
2267
Fax: (000) 000-0000 Fax: 877 399-
1658
The parties hereto have each caused this Agreement to be signed in
duplicate on its behalf by its duly authorized officer on the above date.
THE VARIABLE ANNUITY
LIFE INSURANCE COMPANY
By: /s/ Xxxx X. Xxxxxxxx
Name: Xxxx X. Xxxxxxxx
Title: Senior Vice President
ATTEST:
Attest: /s/ Xxxxx X. Xxxxxx
Name: Xxxxx X. Xxxxxx
Title: Paralegal
COLUMBIA MANAGEMENT
INVESTMENT ADVISERS, LLC
By: /s/ Xxxx Xxxxx
Name: Xxxx Xxxxx
Title: Senior Vice President
ATTEST:
Attest:
Name:
Title:
SCHEDULE A
COVERED FUND(S)
Effective November 14, 2011
Annual Fee computed at the following annual rate, based on average daily net
asset value for each month on that portion of the assets managed by SUB-
ADVISER, and payable monthly:
Covered Fund Fee
Large Cap Core Fund 0.400% on
the first $100 million;
0.325% on
the next $150 million; and
0.250% on
assets over $250 million
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