Common use of PERFORMANCE INCENTIVE ADJUSTMENT Clause in Contracts

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT FUND LIPPER INDEX CATEGORY ---- ------------ ---------- RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Variable Portfolio - Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.50% 0 0.00%-0.50% 0 0.50%-1.00% 6 basis points times the performance 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.00% 3 basis points, plus 3 basis points 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over times the performance difference over 1.00%, times 100 (maximum 6 basis points 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.00% 6 basis points, plus 2 basis points 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over times the performance difference over 2.00%, times 100 (maximum 10 basis 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT FUND LIPPER INDEX CATEGORY ---- ------------ ---------------------------------------------------------------- ----------------------------------------------- ---------- RiverSource Partners Variable Portfolio - Fundamental Value Fund Lipper Large-Cap Core Funds Index Equity RiverSource Partners Variable Portfolio - Select Value Fund Lipper Mid-Cap Value Funds Index Equity RiverSource Partners Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity INVESTMENT FUND LIPPER INDEX CATEGORY ---------------------------------------------------------------- ----------------------------------------------- ---------- Xxxxxxxx Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Variable Portfolio - Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ ------------------------------------------------------------------------ --------------------------------------------------------- PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- -------------------------------------------------------- ------------- -------------------------------------- 0.00%-0.50----------------------------------------- 0.00% - 0.50% 0 0.00%-0.500.00% - 0.50% 0 0.50%-1.000.50% 6 basis points times the performance 0.50%-1.00- 1.00% 6 basis points times the performance difference over 0.50%, % - 1.00% 6 basis points times 100 difference over the performance 0.50%, times 100 (maximum of 3 basis points if a 1% difference over 0.50%, times 100 performance difference) (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.001.00% 3 basis points, plus 3 basis points 1.00%-2.00- 2.00% 3 basis points, plus 3 basis points times the performance difference over times the 1.00% - 2.00% 3 basis points, plus 3 basis points performance difference over 1.00%, times 100 (maximum 6 times the performance difference over basis points if a 2% performance difference) 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.002.00% 6 basis points, plus 2 basis points 2.00%-3.00- 4.00% 6 basis points, plus 2 basis points times the performance difference over times the 2.00% - 3.00% 6 basis points, plus 2 basis points performance difference over 2.00%, times 100 (maximum 10 times the performance difference over basis points if a 4% performance difference) 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT FUND LIPPER INDEX CATEGORY ---- ------------ ---------------------------------------------------------------- ----------------------------------------------- ---------- RiverSource Partners Variable Portfolio - Fundamental Value Fund Lipper Large-Cap Core Funds Index Equity RiverSource Partners Variable Portfolio - Select Value Fund Lipper Mid-Cap Value Funds Index Equity RiverSource Partners Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity INVESTMENT FUND LIPPER INDEX CATEGORY ---------------------------------------------------------------- ----------------------------------------------- ---------- RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Variable Portfolio - Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ -------------------------------- --------------------------------------------- PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.50-------------------------------- -------------- ---------------------------- 0.00% - 0.50% 0 0.00%-0.500.00% - 0.50% 0 0.50%-1.000.50% - 1.00% 6 basis points times the performance 0.50%-1.000.50% - 1.00% 6 basis points times the performance difference performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance points if a 1% perform difference) performance ance difference) 1.00%-2.001.00% - 2.00% 3 basis points, plus 3 basis points 1.00%-2.001.00% - 2.00% 3 basis points, plus 3 basis points times the performance difference over points times the performance difference over 1.00%, difference over 1.00%, times 100 (maximum 6 basis points 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) basis points if a 2% performance difference) 2.00%-4.00performance difference) 2.00% - 4.00% 6 basis points, plus 2 basis points 2.00%-3.002.00% - 3.00% 6 basis points, plus 2 basis points times the performance points times the difference over times the 2.00%, performance difference times 100 (maximum 10 over 2.00%, times 100 (maximum 10 basis 2.00%, times 100 (maximum 8 basis points if a 4% (maximum 8 basis performance difference) points if a 3% performance difference) 4.00%-6.004.00% - 6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points point times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT . FUND LIPPER INDEX CATEGORY ---- ------------ ---------- ----------------------------------------------- RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Emerging Markets Fund Lipper Emerging Markets Funds Index RiverSource Variable Portfolio - Fundamental Value Fund Lipper Large-Cap Core Funds Index RiverSource Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index RiverSource Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index RiverSource Variable Portfolio - Large Cap Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - Large Cap Value Fund Lipper Large-Cap Value Funds Index RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx RiverSource Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Mid Cap Select Value Fund Lipper Mid-Cap Value Funds Index Equity RiverSource Variable Portfolio - Partners Small Cap Advantage Fund Lipper Small-Cap Core Funds Index RiverSource Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.50% 0 0.00%-0.50% 0 0.50%-1.00% 6 basis points times the performance 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.00% 3 basis points, plus 3 basis points 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over times the performance difference over 1.00%, times 100 (maximum 6 basis points 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.00% 6 basis points, plus 2 basis points 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over times the performance difference over 2.00%, times 100 (maximum 10 basis 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT FUND LIPPER INDEX CATEGORY ---- ------------ ----------------------------------------------- ---------- RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Sachs Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Variable Portfolio - Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.50% 0 0.00%-0.50% 0 0.50%-1.00% 6 basis points times the performance 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.00% 3 basis points, plus 3 basis points 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over times the performance difference over 1.00%, times 100 (maximum 6 basis points 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.00% 6 basis points, plus 2 basis points 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over times the performance difference over 2.00%, times 100 (maximum 10 basis 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference)

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, as noted in the chart below, shall include a performance incentive adjustment. adjustment (“PIA”) The performance incentive adjustment shall be based on the Fund's ’s Class 3 performance compared to an index of similar funds (the "“PIA Index"”). Current PIA Indexes are shown below. These PIA Indexes may change as set forth below: INVESTMENT FUND LIPPER INDEX CATEGORY ---- ------------ ---------- Investment Fund PIA Index Category RiverSource Variable Portfolio - — Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - — Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - — Dynamic Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - — Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - — Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - — Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - — Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - — International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - — Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - — Xxxxxxx Xxxxx Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Variable Portfolio - — Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A 3 share of the Fund and the change in performance of the PIA Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.50Equity Funds Balanced Funds Performance Performance Difference Adjustment Rate Difference Adjustment Rate 0.00%—0.50% 0 0.00%-0.500.00%—0.50% 0 0.50%-1.000.50%—1.00% 6 basis points times the performance 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) 0.50%—1.00% 6 basis points times the performance difference over 0.50%, times 100 (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.001.00%—2.00% 3 basis points, plus 3 basis points 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over times the performance difference over 1.00%, times 100 (maximum 6 basis points if a 2% performance difference) 1.00%—2.00% 3 basis points, plus 3 basis points times the performance difference over 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.00% 6 basis points, plus 2 basis points 2.00%-3.002.00%—4.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 10 basis points if a 4% performance difference) 2.00%—3.00% 6 basis points, plus 2 basis points times the performance difference over 2.00%, times 100 (maximum 10 basis 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.004.00%—6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) 3.00% or more 8 basis points 6.00% or more 12 basis points For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund’s Class 3 performance exceeds that of the PIA Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the PIA Index exceeds the performance of the Fund’s Class 3 shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance perfomance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT FUND LIPPER INDEX CATEGORY ---- --------------------------------------------------------------- ------------------------------------ ------------ ---------- RiverSource Partners Variable Portfolio - Fundamental Value Lipper Large-Cap Core Funds Index Equity Fund RiverSource Partners Variable Portfolio - Fundamental Value Lipper Large-Cap Core Funds Index Equity Fund RiverSource Partners Variable Portfolio - Select Value Fund Lipper Mid-Cap Value Funds Index Equity RiverSource Partners Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Growth Fund Lipper Large-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Large Cap Equity Fund Lipper Large-Cap Core Funds Index Equity INVESTMENT FUND LIPPER INDEX CATEGORY --------------------------------------------------------------- ----------------------------------------------- ------------ RiverSource Variable Portfolio - Large Cap Value Fund Lipper Large-Cap Value Funds Index Equity RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx RiverSource Variable Portfolio - Growth Fund Lipper Large-Small Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Advantage Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Variable Portfolio - Partners Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ ------------------------------------------------------------ --------------------------------------------------------- PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- -------------- ------------------------------------------ -------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.500.00% - 0.50% 0 0.00%-0.500.00% - 0.50% 0 0.50%-1.000.50% - 1.00% 6 basis points times the performance 0.50%-1.000.50% - 1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.001.00% - 2.00% 3 basis points, plus 3 basis points 1.00%-2.00times 1.00% - 2.00% 3 basis points, plus 3 basis points times the performance difference over times 1.00%, the performance difference over times 100 (maximum 6 basis points if a 1.00%, times 100 (maximum 6 basis points 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.002.00% - 4.00% 6 basis points, plus 2 basis points 2.00%-3.00times 2.00% - 3.00% 6 basis points, plus 2 basis points times the performance difference over times 2.00%, the performance difference over 2.00%, times 100 (maximum 10 basis points if a 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.004.00% - 6.00% 10 basis points, plus 1 basis point times 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) 6.00% or more 12 basis points For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed.

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for certain of the funds, noted in the chart below, shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's Class 3 performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below: INVESTMENT . FUND LIPPER INDEX CATEGORY ---- ------------ ---------- ---------------------------------------------------------------------------------------------------------------- RiverSource Variable Portfolio - Balanced Fund Lipper Balanced Funds Index Balanced RiverSource Variable Portfolio - Diversified Equity Income Lipper Equity Income Funds Index Equity RiverSource Variable Portfolio - Dynamic Emerging Markets Fund Lipper Emerging Markets Funds Index RiverSource Variable Portfolio - Fundamental Value Fund Lipper Large-Cap Core Funds Index RiverSource Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index RiverSource Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index RiverSource Variable Portfolio - Large Cap Equity Fund Lipper Large-Cap Core Funds Index Equity RiverSource Variable Portfolio - Large Cap Value Fund Lipper Large-Cap Value Funds Index RiverSource Variable Portfolio - Mid Cap Growth Fund Lipper Mid-Cap Growth Funds Index Equity RiverSource Variable Portfolio - Mid Cap Value Fund Lipper Mid-Cap Value Funds Index Equity Xxxxxxxx RiverSource Variable Portfolio - Growth Fund Lipper Large-Cap Growth Funds Index Equity Xxxxxxxx Variable Portfolio - Larger - Cap Value Fund Lipper Large-Cap Value Funds Index Equity Xxxxxxxx Variable Portfolio - Smaller - Cap Value Fund Lipper Small-Cap Core Funds Index Equity Threadneedle Variable Portfolio - Emerging Markets Fund Lipper Emerging Markets Funds Index Equity Threadneedle Variable Portfolio - International Opportunity Fund Lipper International Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxx New York Venture Fund Lipper Large-Cap Core Funds Index Equity Variable Portfolio - Xxxxxxx Xxxxx Mid Cap Select Value Fund Lipper Mid-Cap Value Funds Index Equity RiverSource Variable Portfolio - Partners Small Cap Advantage Fund Lipper Small-Cap Core Funds Index RiverSource Variable Portfolio - Small Cap Value Fund Lipper Small-Cap Value Funds Index Equity The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A share of the Fund and the change in performance of the Index. The performance difference will then be used to determine the adjustment rate. The adjustment rate, computed to five decimal places, is determined in accordance with the table below, and is applied against average daily net assets for the applicable rolling 12-month period. EQUITY FUNDS BALANCED FUNDS -------------------------------------------------------- ------------------------------------------------------ PERFORMANCE PERFORMANCE DIFFERENCE ADJUSTMENT RATE DIFFERENCE ADJUSTMENT RATE ------------- ---------------------------------------- ------------- -------------------------------------- 0.00%-0.50% 0 0.00%-0.50% 0 0.50%-1.00% 6 basis points times the performance 0.50%-1.00% 6 basis points times the performance difference over 0.50%, times 100 difference over 0.50%, times 100 (maximum of 3 basis points if a 1% (maximum of 3 basis points if a 1% performance difference) performance difference) 1.00%-2.00% 3 basis points, plus 3 basis points 1.00%-2.00% 3 basis points, plus 3 basis points times the performance difference over times the performance difference over 1.00%, times 100 (maximum 6 basis points 1.00%, times 100 (maximum 6 basis if a 2% performance difference) points if a 2% performance difference) 2.00%-4.00% 6 basis points, plus 2 basis points 2.00%-3.00% 6 basis points, plus 2 basis points times the performance difference over times the performance difference over 2.00%, times 100 (maximum 10 basis 2.00%, times 100 (maximum 8 basis points if a 4% performance difference) points if a 3% performance difference) 4.00%-6.00% 10 basis points, plus 1 basis point 3.00% or more 8 basis points times the performance difference over 4.00%, times 100 (maximum 12 basis points if a 6% performance difference) 6.00% or more 12 basis points For example, if the performance difference is 2.38%, the adjustment rate is 0.000676 (0.0006 [6 basis points] plus 0.0038 [the 0.38% performance difference over 2.00%] x 0.0002 [2 basis points] x 100 (0.000076)). Rounded to five decimal places, the adjustment rate is 0.00068. Where the Fund's Class A performance exceeds that of the Index, the fee paid to the Investment Manager will increase by the adjustment rate. Where the performance of the Index exceeds the performance of the Fund's Class A shares, the fee paid to the Investment Manager will decrease by the adjustment rate. The 12-month comparison period rolls over with each succeeding month, so that it always equals 12 months, ending with the month for which the performance adjustment is being computed.