INVESTMENT SUB-ADVISORY AGREEMENT
This AGREEMENT made this 1st day of December, 2010, 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 II, an investment company organized under the laws of Delaware as
a business trust ("XX XX"), pursuant to an Investment Advisory Agreement
between VALIC and XX XX. XX XX is a series type of investment company
issuing separate classes (or series) of shares and 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) XX XX currently consists of fifteen portfolios ("Funds"):
Aggressive Growth Lifestyle Fund
Capital Appreciation Fund
Conservative Growth Lifestyle Fund
Core Bond Fund
High Yield Bond Fund
International Small Cap Equity Fund
Large Cap Value Fund
Mid Cap Growth Fund
Mid Cap Value Fund
Moderate Growth Lifestyle Fund
Money Market II Fund
Small Cap Growth Fund
Small Cap Value Fund
Socially Responsible Fund
Strategic Bond Fund
In accordance with VC II's Agreement and Declaration of Trust (the
"Declaration"), new Funds may be added to XX XX upon approval of the
Board of Trustees (the "Board") 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").
(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 will, subject to the supervision and review of VALIC and the
Board and in conformity with the 1940 Act, all applicable laws and regulations
thereunder, all other applicable federal and state laws and regulations,
including section 817(h) of the Internal Revenue Code of 1986, as amended
(the "Code"), the Declaration, VC II's Bylaws (the "Bylaws"), each Covered
Fund's registration statement, prospectus and stated investment objectives,
policies and restrictions and any applicable procedures adopted by the
Board, as most recently provided by VALIC to SUB-ADVISER:
(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 of the industries
and companies 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 and options thereon) 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.
Without limiting the foregoing, the SUB-ADVISER represents and warrants to
VALIC that all of, or to the extent applicable the portion of, the assets
which it manages of the Covered Fund(s) set forth in Schedule A will at all
times be operated and managed in compliance with (a) all applicable federal
and state laws, including securities, commodities and banking laws,
governing its operations and investments; (b) applicable provisions of
Subchapter M, chapter 1 of the Code ("Subchapter M") for each Covered Fund
to be treated as a "regulated investment company" under Subchapter M; (c)
the diversification requirements specified in the Internal Revenue Service's
regulations under Section 817(h) of the Code so as not to jeopardize the
treatment of the variable annuity contracts that offer the Covered Funds as
annuity contracts for purposes of the Code; (d) the distribution requirements
necessary to avoid payment of any excise tax pursuant to Section 4982 of
the Code; (e) the provisions of the 1940 Act and rules adopted thereunder;
(f) the objectives, policies, restrictions and limitations for the Covered
Funds as set forth in the Covered Funds' current prospectus and statement
of additional information as most recently provided by VALIC to the
SUB-ADVISER; and (g) the policies and procedures as adopted by the Board,
as most recently provided by VALIC to the SUB-ADVISER. The SUB-ADVISER
further represents and warrants that to the extent that any statements or
omissions made in any Registration Statement for shares of the
Covered Funds, or any amendment or supplement thereto, are made in reliance
upon and in conformity with information furnished by the SUB-ADVISER
expressly for use therein, such Registration Statement and any amendments
or supplements thereto will, when they become effective, conform in all
material respects to the requirements of the Securities Act of 1933 and the
rules and regulations of the Commission thereunder (the "1933 Act") and
the 1940 Act and will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading.
VALIC agrees that 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
representations and warranties stated in this Section (including, but not
limited to, 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 for valuation purposes accurately reflect 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 the
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 best execution for the Covered Fund(s).
Subject to policies and procedures that may be adopted by the Board and
consistent with 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. 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, to the extent permitted by law. In accounting for such
aggregated order price, commission and other expenses shall be averaged on
a per bond or share basis daily. In such event, allocation of the
securities so purchased or sold, as well as the expenses incurred in the
transaction, will be made by the SUB-ADVISER in the manner the SUB-ADVISER
determines to be equitable and consistent with its and its affiliates'
fiduciary obligations to the Covered Fund(s) and to such other clients.
VALIC hereby acknowledges that such aggregation of orders may not result in
more favorable pricing or lower brokerage commissions in all instances.
The SUB-ADVISER shall maintain records adequately demonstrating compliance
with its obligations under this Agreement and report periodically to VALIC
and the Board regarding the performance of services under this Agreement.
The SUB-ADVISER will make available to VALIC and XX XX promptly upon their
reasonable written request all of the Covered Fund(s) investment records
and ledgers to assist VALIC and XX XX 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-ADVISERwill furnish
the Board such periodic and special reports as VALIC and the
Board 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.
The SUB-ADVISER will not disclose or use any records or information belonging
to VALIC or XX XX obtained pursuant to this Agreement in any manner whatsoever
except as expressly authorized in this Agreement, and the SUB-ADVISER shall
disclose such non-public information only if VALIC or the Board have authorized
such disclosure, or if such information is or hereafter otherwise is known by
the SUB-ADVISER or has been disclosed, directly or indirectly, by VALIC or
XX XX to others or is or becomes ascertainable from public or published
information or trade sources, or if such disclosure is expressly required or
requested by applicable federal or state regulatory authorities 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.
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, 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 disclosure is expressly
required or requested by applicable federal or state authorities.
Should VALIC at any time make a determination as to an investment policy and
notify the SUB-ADVISER in writing of such determination, 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 the SUB-ADVISER shall be given a reasonable period of time
to consider such determination and implement any changes to its policies and
procedures as necessary and 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 the Covered
Fund(s). The money and investments will be held by the Custodian of the
Covered Fund(s). The SUB-ADVISER will arrange for the transmission to the
Custodian for the Covered Fund(s), on a daily basis, such confirmation, trade
tickets and other documents as may be necessary to enable it to perform its
administrative responsibilities with respect to the Covered Fund(s). The
SUB-ADVISER further shall have the authority to instruct the Custodian of the
Covered Fund(s) (i) to pay cash for securities and other property 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.
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 for or represent VALIC or XX XX 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 2 of this
Agreement. VALIC and the SUB-ADVISER acknowledge that XX XX will be ultimately
responsible for all brokerage commissions, taxes, custodian fees and other
transaction-related fees incurred on behalf of the Covered Fund(s).
The SUB-ADVISER also represents and warrants that in furnishing services
hereunder, the SUB-ADVISER will not consult with any other sub-adviser of the
Covered Fund(s) or other series of XX XX, to the extent any other sub-advisers
are engaged by VALIC, or any other sub-advisers to other investment companies
that are under common control with XX XX, concerning transactions of the
Covered Fund(s) in securities or other assets, other than for purposes of
complying with the conditions of paragraphs (a) and (b) of rule 12d3-1
under the 1940 Act.
2. 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.
The fee shall accrue daily and be paid monthly in arrears. Schedule A may be
amended from time to time, by written agreement executed by both Parties,
provided that amendments are made in conformity with applicable laws and
regulations and the Declaration. Any change in Schedule A pertaining to any
new or existing Fund shall not be deemed to affect the interest of any other
Fund and shall not require the approval of shareholders of any other 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 the Declaration, 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 thirty (30) 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 XX XX.
3. 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 the 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 to be equitable to each entity. The SUB-ADVISER
similarly agrees to allocate opportunities to sell securities. VALIC
recognizes that, in some cases, this procedure may limit the size of the
position that may be acquired or sold for the 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,
Trustees, 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.
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(s) complies with such Code
diversification provisions, as directed by VALIC.
4. 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 XX XX with a copy of such code of
ethics together with evidence of its adoption.
(c) The SUB-ADVISER has provided VALIC and XX XX with a copy of its
Form ADV Part II and will promptly after making any material amendment to its
Form ADV Part II, furnish a copy of such amendment to VALIC.
The SUB-ADVISER does not warrant that the portion of the assets of any Covered
Fund managed by SUB-ADVISER will achieve any particular rate of return or that
its performance will match that of any benchmark index or other standard or
objective.
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 XX XX 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.
5. Term of Agreement
This Agreement shall become effective as to the 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 II's
Trustees 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 II's Board of
Trustees or a majority of that Fund's outstanding voting securities.
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 XX XX 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 II's Board of
Trustees or by vote of a majority of that Covered Fund's outstanding voting
securities on at least 60 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 at least 60 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 at least
60 days' prior written notice to VALIC, or upon such shorter notice as may be
mutually agreed upon by the parties.
6. Other Matters
The SUB-ADVISER may from time to time employ, delegate or associate with
itself any affiliated or unaffiliated person or persons believed to be
particularly fitted 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
XX XX with respect to them.
The SUB-ADVISER agrees to preserve for the periods prescribed by Rule 31a-2
under the 1940 Act the records required to be maintained by Rule 31a-1 under
the 1940 Act. The SUB-ADVISER agrees that all books and records which it
maintains for the Covered Fund(s) are the Covered Fund(s)'s property and
will be surrendered promptly to the Covered Fund(s) or VALIC upon reasonable
written request. The SUB-ADVISER agrees that all accounts, books and other
records maintained and preserved by it as required hereby shall be subject
at any time, and from time to time, to such reasonable periodic, special and
other examinations by the Securities and Exchange Commission, the Covered
Fund(s)'s auditors, the Covered Fund(s) or any representative of the Covered
Fund(s), VALIC, or any governmental agency or other instrumentality having
regulatory authority over the Covered Fund(s).
VALIC has herewith furnished the SUB-ADVISER copies of VC II's Prospectus,
Statement of Additional Information, Agreement and Declaration of Trust as
currently in effect 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.
The SUB-ADVISER is authorized to honor and act on any notice, instruction or
confirmation given by VALIC on behalf of XX XX in writing signed or sent by any
of the persons whose names, addresses and specimen signatures will be provided
by VALIC from time to time. The SUB-ADVISER shall not be liable for so acting
in good faith upon such instructions, confirmation or authority,
notwithstanding that it shall subsequently be shown that the same was not
given or signed or sent by an authorized person.
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 interest holders of XX XX 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.
VALIC shall furnish or otherwise make available to the SUB-ADVISER such
other information relating to the business affairs of VALIC and XX XX 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.
VALIC agrees that the SUB-ADVISER may use the name of VALIC or XX XX in any
material that merely refers in accurate terms to the appointment of the
SUB-ADVISER hereunder.
7. Liability of the SUB-ADVISER
(a) In the absence of willful misfeasance, bad faith, gross negligence or
reckless disregard of obligations or duties ("disabling conduct") hereunder
on the part of the SUB-ADVISER (and its officers, directors, agents,
employees, controlling persons, shareholders and any other person or entity
affiliated with the SUB-ADVISER), the SUB-ADVISER shall not be subject to
liability to XX XX, the Covered Funds, or to any shareholder of the Covered
Funds for any act or omission in the course of, or connected with, rendering
services hereunder, including without limitation, any error of judgment or
mistake of law or for any loss suffered by any of them in connection
with the matters to which this Agreement relates, except to the extent
specified in Section 36(b) of the Act concerning loss resulting from a breach
of fiduciary duty with respect to the receipt of compensation for services.
Except for such disabling conduct, VALIC shall indemnify the SUB-ADVISER
(and its officers, directors, partners, agents, employees, controlling
persons, shareholders and any other person or entity affiliated with the
SUB-ADVISER) (collectively, the "Indemnified Parties") from any liability
arising from (i) the SUB-ADVISER's conduct under this Agreement, (ii).VALIC
being in material breach of any duty, warrant or obligation hereunder or
inaccuracy of any representation or (iii) VALIC's willful misfeasance,
bad faith or gross negligence in the performance of its obligations and
duties hereunder or its reckless disregard of its obligations and duties
under this Agreement
(b) The SUB-ADVISER agrees to indemnify and hold harmless VALIC and its
affiliates and each of its directors and officers and each person, if any,
who controls VALIC within the meaning of Section 15 of the 1933 Act against
any and all losses, claims, damages, liabilities or litigation (including
reasonable legal and other expenses), to which VALIC or its affiliates or
such directors, officers or controlling person may become subject under the
1933 Act, under other statutes, at common law or otherwise, arising out of
or resulting from any disabling conduct on the part of the SUB-ADVISER,
including but not limited to any material failure by the SUB-ADVISER to
comply with the provisions and representations and warranties set forth in
Section 1 of this Agreement which arise out of or result from the
SUB-ADVISER's disabling conduct; provided, however, that in no case is the
SUB-ADVISER's indemnity in favor of any person deemed to protect such other
persons against any liability to which such person would otherwise be subject
by reasons of willful misfeasance, bad faith, or gross negligence in the
performance of his, her or its duties or by reason of his, her or its
reckless disregard of obligations and duties under this Agreement.
(c) The SUB-ADVISER shall not be liable to VALIC for (i) any acts of VALIC
or any other subadviser to the Covered Fund(s) with respect to the portion
of the assets of the Covered Fund(s) not managed by SUB-ADVISER and (ii) acts
of the SUB-ADVISER which result from acts of VALIC, including, but not limited
to, a failure of VALIC to provide accurate and current information with respect
to any records maintained by VALIC or any other subadviser to a Covered Fund,
which records are not also maintained by or otherwise available to the
SUB-ADVISER upon reasonable request. VALIC shall indemnify the Indemnified
Parties from any liability arising from the conduct of VALIC and any other
subadviser with respect to the portion of a Covered Fund's assets not
allocated to SUB-ADVISER.
8. Applicability of Federal Securities Laws
This Agreement shall be interpreted in accordance with the laws of the State
of Texas 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 Texas, or any of the provisions herein,
conflict with applicable provisions of the federal securities laws, the latter
shall control.
9. Amendment and Waiver
Provisions of this Agreement may be amended, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement
of the change, waiver, discharge or termination is sought. 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.
10. Force Majuere
Neither party to this Agreement shall be liable for damages resulting from
delayed or defective performance when such delays arise out of causes beyond
the control and without the fault or negligence of the offending party and
could not have been reasonably prevented by the offending party through
back-up systems and other business continuation and disaster recovery
procedures commonly employed by other SEC-registered investment advisers
that meet reasonable commercial standards in the investment company industry.
Such causes may include, but are not restricted to, Acts of God or of the
public enemy, terrorism, acts of the State in its sovereign capacity, fires,
floods, earthquakes, power failure, disabling strikes, epidemics, quarantine
restrictions, and freight embargoes.
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:
Attn: Xxxx X. Xxxxxx, Esq.
0000 Xxxxx Xxxxxxx
Xxxxxxx, Xxxxx 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
If to SUB-ADVISER:
Attn: Xxxx Xxxxx, Director
Columbia Management
Xxx Xxxxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Tel: (000) 000-0000
Fax: (000) 000-0000
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:
By: /S/ XXXXX X. XXXXXX
Name: Xxxxx X. Xxxxxx
COLUMBIA MANAGEMENT INVESTMENT ADVISERS, LLC
By: /S/ XXXX XXXXX
Name: Xxxx Xxxxx
Title: Senior Vice President
ATTEST:
By:
Name:
SCHEDULE A
(Effective December 1, 2010)
SUB-ADVISER shall manage a portion of the Mid Cap Growth Fund assets
and shall be compensated as follows on that portion:
Covered Fund Fee
Mid Cap Growth Fund 0.50% of the first $50 million;
0.475% of the next $50 million;
0.44% of the next $150 million;
0.35% on the excess over $250 million.
