INVESTMENT MANAGEMENT SERVICES AGREEMENT
This Agreement dated as of May 1, 2006, is by and between RiverSource
Investments, LLC (the "Investment Manager"), a Minnesota limited liability
company and RiverSource Retirement Series Trust (the "Registrant"), a
Massachusetts business trust, on behalf of its underlying series listed in
Schedule A (the term "Fund" or "Funds" is used to refer to either the
Registrant or its underlying series, as context requires).
PART ONE: INVESTMENT MANAGEMENT AND OTHER SERVICES
(1) The Fund hereby retains the Investment Manager, and the Investment
Manager hereby agrees, for the period of this Agreement and under the
terms and conditions hereinafter set forth, to furnish the Fund
continuously with investment advice; to determine, consistent with the
Fund's investment objectives and policies, which securities in the
Investment Manager's discretion shall be purchased, held or sold, and to
execute or cause the execution of purchase or sell orders; to prepare
and make available to the Fund all necessary research and statistical
data in connection therewith; to furnish all other services of whatever
nature required in connection with the management of the Fund as
provided under this Agreement; and to pay such expenses as may be
provided for in Part Three; subject always to the direction and control
of the Board of Trustees (the "Board") and the authorized officers of
the Fund. The Investment Manager agrees to maintain an adequate
organization of competent persons to provide the services and to perform
the functions herein mentioned and to maintain adequate oversight over
any service providers including subadvisers hired to provide services
and to perform the functions herein mentioned. The Investment Manager
agrees to meet with any persons at such times as the Board deems
appropriate for the purpose of reviewing the Investment Manager's
performance under this Agreement. The Fund agrees that the Investment
Manager may subcontract for certain of the services described under this
Agreement with the understanding that there shall be no diminution in
the quality or level of services and also with the understanding, that
the Investment Manager shall obtain such approval from the Fund's Board
and/or its shareholders as is required by law, rules and regulations
promulgated thereunder, terms of the Agreement, resolutions of the Board
and commitments of the Investment Manager.
(2) The Investment Manager agrees that the investment advice and investment
decisions will be in accordance with general investment policies of the
Fund as disclosed to the Investment Manager from time to time by the
Fund and as set forth in the prospectus and registration statement filed
with the United States Securities and Exchange Commission (the "SEC").
(3) The Investment Manager agrees to provide such support as required or
requested by the Board in conjunction with voting proxies solicited by
or with respect to the issuers of securities in which the Fund's assets
may be invested from time to time, it being understood that the Board
has sole voting power with respect to all such proxies.
(4) The Investment Manager agrees that it will maintain all required
records, memoranda, instructions or authorizations relating to the
management of the assets for the Fund including the acquisition or
disposition of securities, proxy voting and safekeeping of assets.
(5) The Fund agrees that it will furnish to the Investment Manager any
information that the latter may reasonably request with respect to the
services performed or to be performed by the Investment Manager under
this Agreement.
(6) In selecting broker-dealers for execution, the Investment Manager will
seek to obtain best execution for securities transactions on behalf of
the Fund, except where otherwise directed by the Board. In selecting
broker-dealers to execute transactions, the Investment Manager will
consider not only available prices (including commissions or xxxx-up),
but also other relevant factors such as, without limitation, the
characteristics of the security being traded, the size and difficulty of
the transaction, the execution, clearance and settlement capabilities as
well as the reputation, reliability, and financial soundness of the
broker-dealer selected, the broker-dealer's risk in positioning a block
of securities, the broker-dealer's execution service rendered on a
continuing basis and in other transactions, the broker-dealer's
expertise in particular markets, and the broker-dealer's ability to
provide research services. To the extent permitted by law, and
consistent with its obligation to seek best execution, the Investment
Manager may execute transactions or pay a broker-dealer a commission or
markup in excess of that which another broker-dealer might have charged
for executing a transaction provided that the Investment Manager
determines, in good faith, that the execution is appropriate or the
commission or markup is reasonable in relation to the value of the
brokerage and/or research services provided, viewed in terms of either
that particular transaction or the Investment Manager's overall
responsibilities with respect to the Fund and other clients for which it
acts as investment adviser. The Investment Manager shall not consider
the sale or promotion of shares of the Fund, or other affiliated
products, as a factor in the selection of broker-dealers through which
transactions are executed.
(7) Except for bad faith, intentional misconduct or negligence in regard to
the performance of its duties under this Agreement, neither the
Investment Manager, nor any of its respective directors, officers,
partners, principals, employees, or agents shall be liable for any acts
or omissions or for any loss suffered by the Fund or its shareholders or
creditors. Each of the Investment Manager, and its respective directors,
officers, partners, principals, employees and agents, shall be entitled
to rely, and shall be protected from liability in reasonably relying,
upon any information or instructions furnished to it (or any of them as
individuals) by the Fund or its agents which is believed in good faith
to be accurate and reliable. The Fund understands and acknowledges that
the Investment Manager does not warrant any rate of return, market value
or performance of any assets in the Fund. Notwithstanding the foregoing,
the federal securities laws impose liabilities under
certain circumstances on persons who act in good faith and, therefore,
nothing herein shall constitute a waiver of any right which the Fund may
have under such laws or regulations.
PART TWO: COMPENSATION TO THE INVESTMENT MANAGER
(1) The Fund shall not pay the Investment Manager a direct fee for services
rendered hereunder.
PART THREE: ALLOCATION OF EXPENSES
(1) The Fund agrees to pay:
(a) Taxes.
(b) Brokerage commissions and charges in connection with the purchase
and sale of assets.
(c) Custodian fees and charges.
(d) Premium on the bond required by Rule 17g-1 under the Investment
Company Act of 1940.
(e) Fees and expenses of attorneys (i) it employs in matters not
involving the assertion of a claim by a third party against the
Fund, its Board members and officers, (ii) it employs in conjunction
with a claim asserted by the Board against the Investment Manager,
except that the Investment Manager shall reimburse the Fund for such
fees and expenses if it is ultimately determined by a court of
competent jurisdiction, or the Investment Manager agrees, that it is
liable in whole or in part to the Fund, (iii) it employs to assert a
claim against a third party, and (iv) it or the Investment Manager
employs, with the approval of the Board, to assist in the evaluation
of certain investments or other matters related to the management of
the Fund.
(f) Fees paid for the qualification and registration for public sale of
the securities of the Fund under the laws of the United States and
of the several states in which such securities shall be offered for
sale.
(g) Fees of consultants employed by the Fund.
(h) Board member, officer and employee expenses which shall include
fees, salaries, memberships, dues, travel, seminars, pension, profit
sharing, and all other benefits paid to or provided for Board
members, officers and employees, directors and officers liability
insurance, errors and omissions liability insurance, worker's
compensation insurance and other expenses applicable to the Board
members, officers and employees, except the Fund will not pay any
fees or
expenses of any person who is an officer or employee of the
Investment Manager or its affiliates.
(i) Filing fees and charges incurred by the Fund in connection with
filing any amendment to its organizational documents, or incurred in
filing any other document with the state where the Fund is organized
or its political subdivisions.
(j) Organizational expenses of the Fund.
(k) Expenses incurred in connection with lending portfolio securities of
the Fund.
(l) Expenses properly payable by the Fund, approved by the Board.
(m) Other expenses payable by the Fund pursuant to separate agreement of
the Fund and any of its service providers.
(2) Unless the Fund is obligated to pay an expense pursuant to Part Three,
Section I, above, the Investment Manager agrees to pay all expenses
associated with the services it provides under the terms of this
Agreement.
PART FOUR: MISCELLANEOUS
(1) The Investment Manager shall be deemed to be an independent contractor
and, except as expressly provided or authorized in this Agreement, shall
have no authority to act for or represent the Fund.
(2) A "full business day" shall be as defined in the By-laws of the Fund.
(3) The Fund acknowledges that the Investment Manager and its affiliates may
perform investment advisory services for other clients, so long as the
Investment Manager's services to the Fund under this Agreement are not
impaired thereby. The Investment Manager and its affiliates may give
advice or take action in the performance of duties to other clients that
may differ from advice given, or the timing and nature of action taken,
with respect to the Fund, and that the Investment Manager and its
affiliates may trade and have positions in securities of issuers where
the Fund may own equivalent or related securities, and where action may
or may not be taken or recommended for the Fund. Nothing in this
Agreement shall be deemed to impose upon the Investment Manager or any
of its affiliates any obligation to purchase or sell, or recommend for
purchase or sale for the Fund, any security or any other property that
the Investment Manager or any of its affiliates may purchase, sell or
hold for its own account or the account of any other client.
Notwithstanding any of the foregoing, the Investment Manager shall
allocate investment opportunities among its clients, including the Fund,
in an equitable manner, consistent with its fiduciary obligations. By
reason of their various activities, the Investment Manager and its
affiliates may from time to time acquire information about various
corporations and their securities. The Fund recognizes that the
Investment Manager
and its affiliates may not always be free to divulge such information,
or to act upon it.
(4) Neither this Agreement nor any transaction pursuant hereto shall be
invalidated or in any way affected by the fact that Board members,
officers, agents and/or shareholders of the Fund are or may be
interested in the Investment Manager or any successor or assignee
thereof, as directors, officers, stockholders or otherwise; that
directors, officers, stockholders or agents of the Investment Manager
are or may be interested in the Fund as Board members, officers,
shareholders, or otherwise; or that the Investment Manager or any
successor or assignee, is or may be interested in the Fund as
shareholder or otherwise, provided, however, that neither the Investment
Manager, nor any officer, Board member or employee thereof or of the
Fund, shall sell to or buy from the Fund any property or security other
than shares issued by the Fund, except in accordance with applicable
regulations or orders of the SEC.
(5) Any notice under this Agreement shall be given in writing, addressed,
and delivered, or mailed postpaid, to the party to this Agreement
entitled to receive such, at such party's principal place of business in
Minneapolis, Minnesota, or to such other address as either party may
designate in writing mailed to the other.
(6) The Investment Manager agrees that no officer, director or employee of
the Investment Manager will deal for or on behalf of the Fund with
himself as principal or agent, or with any corporation or partnership in
which he may have a financial interest, except that this shall not
prohibit:
(a) Officers, directors or employees of the Investment Manager from
having a financial interest in the Fund or in the Investment
Manager.
(b) The purchase of securities for the Fund, or the sale of securities
owned by the Fund, through a security broker or dealer, one or more
of whose partners, officers, directors or employees is an officer,
director or employee of the Investment Manager, provided such
transactions are handled in the capacity of broker only and provided
commissions charged do not exceed customary brokerage charges for
such services.
(c) Transactions with the Fund by a broker-dealer affiliate of the
Investment Manager as may be allowed by rule or order of the U.S.
Securities and Exchange Commission and if made pursuant to
procedures adopted by the Board.
(7) The Investment Manager agrees that, except as herein otherwise expressly
provided or as may be permitted consistent with the use of a
broker-dealer affiliate of the Investment Manager under applicable
provisions of the federal securities laws, neither it nor any of its
officers, directors or employees shall at any time during the period of
this Agreement, make, accept or receive, directly or indirectly, any
fees, profits or emoluments of any character in connection with the
purchase or sale of securities (except shares issued by the Fund) or
other assets by or for the Fund.
(8) All information and advice furnished by the Investment Manager to the
Fund under this Agreement shall be confidential and shall not be
disclosed to third parties, except as required by law, order, judgment,
decree, or pursuant to any rule, regulation or request of or by any
government, court, administrative or regulatory agency or commission,
other governmental or regulatory authority or any self-regulatory
organization. All information furnished by the Fund to the Investment
Manager under this Agreement shall be confidential and shall not be
disclosed to any unaffiliated third party, except as permitted or
required by the foregoing, where it is necessary to effect transactions
or provide other services to the Fund, or where the Fund requests or
authorizes the Investment Manager to do so. The Investment Manager may
share information with its affiliates in accordance with its privacy
policies in effect from time to time.
(9) This Agreement shall be governed by the laws of the State of Minnesota.
(10) For Funds that are organized as a Massachusetts business trust, a copy
of the Declaration of Trust, together with all amendments, is on file in
the office of the Secretary of State of the Commonwealth of
Massachusetts. The execution and delivery of this Agreement has been
authorized by the Trustees and the Agreement has been signed by an
authorized officer of the Fund. It is expressly agreed that the
obligations of the Fund under this Agreement shall not be binding upon
any of the Trustees, shareholders, nominees, officers, agents or
employees of the Fund personally, but bind only the assets and property
of the Fund, as provided in the Declaration of Trust.
PART FIVE: RENEWAL AND TERMINATION
(1) This Agreement shall continue in effect until April 30, 2008 or until a
new agreement is approved by a vote of the majority of the outstanding
shares of the Fund and by vote of the Board, including the vote required
by (b) of this paragraph, and if no new agreement is so approved, this
Agreement shall continue from year to year thereafter unless and until
terminated by either party as hereinafter provided, except that such
continuance shall be specifically approved at least annually (a) by the
Board or by a vote of the majority of the outstanding shares of the Fund
and (b) by the vote of a majority of the Board members who are not
parties to this Agreement or interested persons of any such party, cast
in person at a meeting called for the purpose of voting on such
approval. As used in this paragraph, the term "interested person" shall
have the same meaning as set forth in the Investment Company Act of
1940, as amended, and the rules promulgated thereunder (the "1940 Act").
As used in this agreement, the term "majority of the outstanding shares
of the Fund" shall have the same meaning as set forth in the 1940 Act.
(2) This Agreement may be terminated, with respect to each underlying series
of the Fund, by either the Fund or the Investment Manager at any time by
giving the other party 60 days' written notice of such intention to
terminate, provided that any
termination shall be made without the payment of any penalty, and
provided further that termination may be effected either by the Board or
by a vote of the majority of the outstanding voting shares of the Fund.
(3) This Agreement shall terminate in the event of its assignment, the term
"assignment" for this purpose having the same meaning as set forth in
the 1940 Act.
(4) Non-material amendments or modifications to this Agreement as may be
permitted by the 1940 Act will only be made effective upon written
agreement executed by the Investment Manager and the Board.
IN WITNESS THEREOF, the parties hereto have executed the foregoing Agreement
as of the day and year first above written.
RIVERSOURCE RETIREMENT SERIES TRUST
By: /s/ Xxxxxx X. Xxx
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Xxxxxx X. Xxx
Vice President
RIVERSOURCE INVESTMENTS, LLC
By: /s/ Xxxxx X. Xxxxx
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Xxxxx X. Xxxxx
Senior Vice President
SCHEDULE A
RIVERSOURCE RETIREMENT SERIES TRUST
RiverSource Retirement Plus 2010 Fund
RiverSource Retirement Plus 2015 Fund
RiverSource Retirement Plus 2020 Fund
RiverSource Retirement Plus 2025 Fund
RiverSource Retirement Plus 2030 Fund
RiverSource Retirement Plus 2035 Fund
RiverSource Retirement Plus 2040 Fund
RiverSource Retirement Plus 2045 Fund
