PLAN AND AGREEMENT OF DISTRIBUTION
AMENDED AND RESTATED
The Plan of Distribution ("Plan") and the Agreement of Distribution
("Agreement"), effective December 1, 2006 (together "Plan and Agreement"), is
by and between RiverSource Distributors, Inc. (the "Distributor"), a principal
underwriter of the RiverSource Funds pursuant to a separate distribution
agreement ("Distribution Agreement"), for distribution services to the Funds,
and the Corporations and Trusts ("Registrants"), each acting separately on
behalf of its underlying series and share classes, listed in Schedule A. The
terms "Fund" or "Funds" are used to refer to either the Registrants or the
underlying series as context requires.
The Plan and Agreement are separate and each has been adopted or approved by
members of the Board of Directors or Trustees (the "Board") of the Funds who
are not interested persons of the Funds and have no direct or indirect
financial interest in the operation of the Plan and Agreement, or any related
agreement ("independent Board members"), and all of the members of the Board,
in person, at a meeting called for the purpose of voting on the Plan and
Agreement.
1. Reimbursement Plan
The Funds will reimburse the Distributor for expenses incurred in
connection with distributing the Funds' shares, providing personal
service to shareholders, and maintaining shareholder accounts.
2. Services Provided and Expenses Borne by Distributor
2.1. The Distributor shall provide distribution and underwriting services
and shall bear all distribution related expenses to the extent
specified in the Distribution Agreement.
2.2. Each Fund recognizes and agrees that the Distributor (or an
affiliate of the Distributor) may compensate financial
intermediaries, including brokers, dealers, banks, registered
investment advisers, financial advisors, retirement plan
administrators, third party administrators and any others having a
selling, administration or similar agreement with the Distributor (a
"financial intermediary") for providing services to record or
beneficial owners of Fund shares or otherwise in connection with the
distribution or servicing of Fund shares.
3. Distribution Fees and Service Fees
3.1 Service Fees. As partial consideration for the shareholder and
account maintenance services performed by the Distributor directly
or through a financial intermediary in the performance of its
obligations under an agreement with the Distributor, the Funds shall
reimburse the Distributor at a rate not to exceed the rates set
forth in Schedule A. These services include assisting in
establishing and maintaining shareholder accounts and records,
assisting with purchase, redemption and exchange requests, arranging
for bank wires, monitoring dividend payments from the Funds on
behalf of shareholders, forwarding certain shareholder
communications from Funds to shareholders, receiving and responding
to inquiries and answering questions regarding the Funds, and aiding
in maintaining the investment of shareholders in the Funds.
3.2. Distribution Fees. As partial consideration for the services
performed as specified in the Distribution Agreement and expenses
incurred in the performance of its obligations directly or, through
a financial intermediary, under the Distribution Agreement, the
Funds shall reimburse the Distributor at a rate not to exceed the
rates set forth in Exhibit A. Distribution fees reimburse the
Distributor for its expenses incurred in connection with any
activity that is principally intended to result in the sale of Fund
shares. These expenses include commissions to financial
intermediaries, printing prospectuses and reports used for sales
purposes, the
Page 2
preparation, printing and distribution of advertising and sales
literature, personnel, travel, office expense and equipment, and
other distribution-related expenses.
3.3 Notwithstanding any other provision of this Plan and Agreement, the
Funds are not obligated and are in no way liable to make any payment
to any person or entity other than directly to the Distributor.
4. Reports
4.1 The Distributor agrees to monitor implementation of the Plan and the
level and quality of services it provides.
4.2 The Distributor agrees to provide at least quarterly an analysis of
expenses under this Agreement, including any payments to financial
intermediaries, and to meet with representatives of the Funds as
reasonably requested to provide additional information.
5. Contingent Deferred Sales Charges
5.1. For Funds with Class B shares, for each purchase of Class B shares,
the Class B shares will be converted to Class A shares in the ninth
year of ownership.
5.2. For Funds with Class B shares, the Funds understand that if a
shareholder redeems Class B shares before they are converted to
Class A shares, the Distributor will impose a sales charge directly
on the redemption proceeds to cover those expenses it has previously
incurred on the sale of those shares.
5.3. For Funds with Class C shares, the Funds understand that if a
shareholder redeems Class C shares in the first year of ownership,
the Distributor will impose a sales charge directly on the
redemption proceeds to cover those expenses it has previously
incurred on the sale of those shares.
6. Duration of the Plan and Agreement
6.1. The Plan and Agreement shall continue in effect for a period of more
than one year provided it is approved at least annually in the
manner provided in the Investment Company Act of 1940 (the "1940
Act").
7. Amendments to the Plan and Agreement
7.1. Neither the Plan nor the Agreement may be amended to increase
materially the amount that may be paid by the Funds without the
approval of at least a majority of the outstanding shares of the
relevant class. Neither the Plan nor the Agreement may be amended in
any other material respect except with the approval of a majority of
independent Board members. Amendments required to conform the Plan
or the Agreement to changes in rule 12b-1 or to other changes in the
1940 Act or the rules and regulations under the 1940 Act are not
deemed to be material amendments.
8. Termination
8.1. This Agreement may be terminated as to any class of the Funds at any
time without payment of any penalty by a vote of a majority of the
independent Board members, or by vote of a majority of the
outstanding shares of the relevant class, or by the Distributor. The
Plan shall continue until terminated by action of the independent
Board members, and the related Agreement will terminate
automatically in the event of its assignment as that term is defined
in the 1940 Act.
Page 3
9. Severability
9.1. The provisions of this Plan are severable with respect to each class
of shares offered by a Fund and with respect to each Fund.
10. Massachusetts Business Trusts.
10.1.For each Fund that is 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.
11. Applicable Law
11.1.This Plan and Agreement shall be governed by the laws of the State
of Minnesota.
IN WITNESS THEREOF, the parties hereto have executed the foregoing Agreement
as of the day and year first above written.
RIVERSOURCE BOND SERIES, INC.
RIVERSOURCE CALIFORNIA TAX-EXEMPT TRUST
RIVERSOURCE DIMENSIONS SERIES, INC.
RIVERSOURCE DIVERSIFIED INCOME SERIES, INC.
RIVERSOURCE EQUITY SERIES, INC.
RIVERSOURCE GLOBAL SERIES, INC.
RIVERSOURCE GOVERNMENT INCOME SERIES, INC.
RIVERSOURCE HIGH YIELD INCOME SERIES, INC.
RIVERSOURCE INCOME SERIES, INC.
RIVERSOURCE INTERNATIONAL MANAGERS SERIES, INC.
RIVERSOURCE INTERNATIONAL SERIES, INC.
RIVERSOURCE INVESTMENT SERIES, INC.
RIVERSOURCE LARGE CAP SERIES, INC.
RIVERSOURCE MANAGERS SERIES, INC.
RIVERSOURCE MARKET ADVANTAGE SERIES, INC.
RIVERSOURCE MONEY MARKET SERIES, INC.
RIVERSOURCE RETIREMENT SERIES TRUST
RIVERSOURCE SECTOR SERIES, INC.
RIVERSOURCE SELECTED SERIES, INC.
RIVERSOURCE SPECIAL TAX-EXEMPT SERIES TRUST
RIVERSOURCE STRATEGIC ALLOCATION SERIES, INC.
RIVERSOURCE STRATEGY SERIES, INC.
RIVERSOURCE TAX-EXEMPT INCOME SERIES, INC.
RIVERSOURCE TAX-EXEMPT MONEY MARKET SERIES, INC.
RIVERSOURCE TAX-EXEMPT SERIES, INC.
/s/ Xxxxxxx X. Xxxxxxxx
---------------------------
Xxxxxxx X. Xxxxxxxx
President
RIVERSOURCE DISTRIBUTORS, INC.
/s/ Xxxxxxx X. Xxxxxxxx
--------------------------
Xxxxxxx X. Xxxxxxxx
Vice President
Page 4
SCHEDULE A
FOR FUNDS OTHER THAN MONEY MARKET FUNDS:
Each Registrant is a Minnesota corporation, except RiverSource California
Tax-Exempt Trust, RiverSource Special Tax-Exempt Series Trust, and RiverSource
Retirement Series Trust, which are Massachusetts business trusts:
--------------------------------------------------------------------------------------------------------------
FUNDS CLASSES
A B C D R2 R3 W
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
RiverSource Bond Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Core Bond A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Floating Rate A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Income Opportunities A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Inflation Protected Securities A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Limited Duration Bond A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt Trust
--------------------------------------------------------------------------------------------------------
RiverSource California Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Dimensions Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small and Mid Cap Equity A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Disciplined Small Cap Value A B C -- R2 R3 --
-------------------------------------------------------------------------------------------------------
RiverSource Diversified Income Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Diversified Bond A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Equity Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Growth A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Global Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Absolute Return Currency and Income A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Emerging Markets Bond A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Global Bond A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Global Equity A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Global Technology A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Government Income Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Short Duration U.S. Government A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource U.S. Government Mortgage A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource High Yield Income Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource High Yield Bond A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Income Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Income Builder - Basic Income A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Income Builder - Moderate Income A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Income Builder - Enhanced Income A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource International Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Disciplined International Equity A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource European Equity A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource International Opportunity A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource International Managers Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource International Aggressive Growth A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource International Equity A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource International Select Value A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource International Small Cap A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Investment Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Balanced A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Diversified Equity Income A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Mid Cap Value A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Large Cap Series, Inc.
--------------------------------------------------------------------------------------------------------
Page 5
--------------------------------------------------------------------------------------------------------------
FUNDS CLASSES
A B C D R2 R3 W
--------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
RiverSource Disciplined Equity A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Growth A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Large Cap Equity A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Large Cap Value A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Managers Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Aggressive Growth A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Fundamental Growth A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Fundamental Value A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Select Value A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Small Cap Equity A B C -- --
--------------------------------------------------------------------------------------------------------
RiverSource Small Cap Value A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Value A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Market Advantage Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder - Conservative A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder - Moderate
Conservative A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder - Moderate A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder - Moderate Aggressive A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder - Aggressive A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Portfolio Builder - Total Equity A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource S&P 500 Index -- -- -- D -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Small Company Index A B -- -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Series Trust
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2010 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2015 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2020 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2025 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2030 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2035 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2040 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Retirement Plus 2045 A -- -- -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Sector Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Dividend Opportunity A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Real Estate A B C -- -- -- W
--------------------------------------------------------------------------------------------------------
RiverSource Selected Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Precious Metals A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Special Tax-Exempt Series Trust
--------------------------------------------------------------------------------------------------------
RiverSource Massachusetts Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Michigan Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Minnesota Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource New York Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Ohio Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Strategy Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Equity Value A B C -- R2 R3 W
--------------------------------------------------------------------------------------------------------
RiverSource Small Cap Advantage A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Small Cap Growth A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Strategic Allocation A B C -- R2 R3 --
--------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Income Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt High Income A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Series, Inc.
--------------------------------------------------------------------------------------------------------
RiverSource Intermediate Tax-Exempt A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Bond A B C -- -- -- --
--------------------------------------------------------------------------------------------------------
Page 6
FEE SCHEDULE
The fee maximum for services under this Plan and Agreement is equal on an
annual basis to the following percentage of the average daily net assets of
the Fund attributable to the applicable class:
------------------------------------------------------------
CLASS FEE
------------------------------------------------------------
A 0.25%
------------------------------------------------------------
B 1.00%
------------------------------------------------------------
C 1.00%
------------------------------------------------------------
D 0.25%
------------------------------------------------------------
R2 0.50%
------------------------------------------------------------
R3 0.25%
------------------------------------------------------------
W 0.25%
------------------------------------------------------------
For Class A, Class D and Class W shares, the fee shall be paid to the
Distributor in cash within five (5) business days after the last day of each
quarter.
For Class B and Class C shares, the maximum fee under this Plan and Agreement
will be equal on an annual basis to 1.00% of the average daily net assets of
the Funds attributable to Class B shares and Class C share, respectively. Of
that amount, up to 0.75% shall be reimbursed for distribution expenses. The
fee shall be paid to the Distributor in cash within five (5) business days
after the last day of each month. Up to an additional 0.25% shall be
reimbursed for shareholder servicing expenses. The fee shall be paid to the
Distributor in cash within five (5) business days after the last day of each
quarter.
For Class R2 and Class R3, the maximum fee under this Plan and Agreement,
which shall be reimbursed for distribution expenses, will be equal on an
annual basis of 0.50% of the average daily net assets of the Funds
attributable to Class R2 shares and 0.25% of the average daily net assets of
the Funds attributable to Class R3 shares. Of that amount, for Class R2, up to
0.25% may be reimbursed for shareholder servicing expenses. The fee shall be
paid to the Distributor in cash within five (5) business days after the last
day of each quarter.
FOR MONEY MARKET FUNDS:
Each Registrant is a Minnesota Corporation:
--------------------------------------------------------------------------------------------------------------------
FUNDS CLASSES
--------------------------------------------------------------------------------------------------------------------
A B C W
--------------------------------------------------------------------------------------------------------------------
RiverSource Money Market Series, Inc.
--------------------------------------------------------------------------------------------------------------------
RiverSource Cash Management A B C W
--------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Money Market Series, Inc.
--------------------------------------------------------------------------------------------------------------------
RiverSource Tax-Exempt Money Market A -- -- --
--------------------------------------------------------------------------------------------------------------------
FEE SCHEDULE
The maximum fee for services under this Plan and Agreement is equal on an
annual basis to the following percentage of the average daily net assets of
the Fund attributable to the applicable class.
--------------------------------------------------------------------
CLASS FEE
--------------------------------------------------------------------
A 0.10%
--------------------------------------------------------------------
B 0.85%
--------------------------------------------------------------------
C 0.75%
--------------------------------------------------------------------
W 0.10%
--------------------------------------------------------------------
For Class A and Class W shares, the fee shall be paid to the Distributor in
cash within five (5) business days after the last day of each quarter.
For Class B shares, the maximum fee under this Plan and Agreement will be
equal on an annual basis to 0.85% of the average daily net assets of the Fund
attributable to Class B shares. Of that amount, up to 0.75% shall be
reimbursed for distribution expenses. The fee shall be paid to the Distributor
in cash within five (5) business days after the last day of each month. Up to
an additional 0.10% shall be reimbursed for shareholder servicing expenses.
The fee shall be paid to the Distributor in cash within five (5) business days
after the last day of each quarter.
For Class C shares, the maximum fee under this Agreement will be equal on an
annual basis to 0.75% of the average daily net assets of the Funds
attributable to Class C shares for distribution expenses. The fee shall be
paid to the Distributor in cash within five (5) business days after the last
day of each month.
