Common use of PERFORMANCE INCENTIVE ADJUSTMENT Clause in Contracts

PERFORMANCE INCENTIVE ADJUSTMENT. In addition to an asset charge, the fee for the Fund shall include a performance incentive adjustment. The performance incentive adjustment shall be based on the Fund's performance compared to an index of similar funds (the "Index"). Current Indexes are shown below. These Indexes may change as set forth below. FUND LIPPER INDEX ------------------------------------------------- ------------------------------------------------ RiverSource Disciplined International Equity Fund Lipper International Large-Cap Core Funds Index Threadneedle Asia Pacific Fund ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Capital International All Country Asia Pacific Ex-Japan Index Threadneedle European Equity Fund Lipper European Funds Index Threadneedle International Opportunity Lipper International Large-Cap Core Funds Index The performance incentive adjustment is determined by measuring the percentage difference over a rolling 12-month period between the performance of one Class A (Class R5 for Threadneedle Asia Pacific Fund) 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