EX-99.(M)(1) 8 c23364exv99wxmyx1y.txt PLAN AND AGREEMENT OF DISTRIBUTION Exhibit 99(m)(1) PLAN AND AGREEMENT OF DISTRIBUTION The Plan of Distribution ("Plan") and Agreement of Distribution ("Agreement"), dated November 8, 2007 (together "Plan and Agreement"), is by and between RiverSource Distributors, Inc. ("RiverSource Distributors"), a Delaware corporation, and RiverSource Variable Series Trust ("Registrant"), on behalf of its underlying series, listed in Schedule A (each a "fund" and collectively the "funds"). 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 approved by members of the Board of 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, and all of the members of the Board, in person, at a meeting called for the purpose of voting on the Plan and Agreement. The provisions in this Plan and Agreement relating to the Plan, restate the Plan, which was also approved by the Board effective November 8, 2007. 1. Reimbursement Plan 1.1 The Fund will reimburse RiverSource Distributors up to 0.125% of its daily net assets for various costs paid and accrued in connection with the distribution of the Funds' shares and the servicing of owners of the Funds through variable life insurance or annuity contracts. 1.2 Payments under the Plan shall be made within five (5) business days after the last day of each month. At the end of each calendar year, RiverSource Distributors shall furnish a declaration setting out the actual expenses it has paid and accrued. Any money that has been paid in excess of the amount of these expenses shall be returned to the Funds. 2. Services Provided and Expenses Borne by Distributor 2.1 RiverSource Distributors 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 RiverSource Distributors may offer the Funds' shares to one or more affiliated or unaffiliated life insurance companies ("Life Companies") for purchase on behalf of certain of their separate accounts for the purpose of funding variable life insurance contracts or variable annuity contracts or both (collectively referred to as "Variable Contracts") and may compensate such Life Companies for providing services to Variable Contract owners or in connection with the distribution of Fund shares. 3. Services 3.1 The Funds shall reimburse RiverSource Distributors at a rate not to exceed the rate set forth in Section 1 as partial consideration for the services it provides that are intended to benefit the Variable Contract owners and not the Life Companies' separate accounts that legally own the shares. Such services may include printing and mailing prospectuses, Statements of Additional Information, supplements, and reports to existing and prospective Variable Contract owners; preparation and distribution of advertisement, sales literature, brokers' materials and promotional materials relating to the Funds; presentation of seminars and sales meetings describing or relating to the Funds; training sales personnel regarding the Funds; compensation of sales personnel for sale of the Funds' shares; compensation of sales personnel for assisting Life Companies or Variable Contract owners with respect to the Funds' shares; overhead of RiverSource Distributors and its affiliates appropriately allocated to the promotion of sale of the Funds' shares; and any other activity primarily intended to result in the sale of the Funds' shares, including payments to Life Companies. 4. Reports 4.1 RiverSource Distributors shall provide all information relevant and necessary for the Board to make informed determinations about whether each of the Plan and Agreement should be continued and shall: submit quarterly a report that sets out the expenses paid or accrued by it, the names of the Life Companies to whom the Funds' shares are sold, and the payments made to each Life Company that has been reimbursed; use its best efforts to monitor the level and quality of services provided by it and each Life Company to which payment is made and to assure that in each case legitimate services are rendered in return for the reimbursement pursuant to the Plan and Agreement; and meet with the Funds' representatives, as reasonably requested, to provide additional information. 5. Miscellaneous 5.1 RiverSource Distributors represents that it will provide full disclosure of the Funds' 12b-1 Plan and Agreement in the Funds' prospectus. 5.2 All payments by RiverSource Distributors to Life Companies shall be made pursuant to a written agreement. The written agreement shall: require disclosure of the fees in accordance with applicable laws; provide for termination at any time without penalty as required by Rule 12b-1; and continue so long as its continuance is done in accordance with the requirements of Rule 12b-1. 5.3 The Funds represent that the Plan and the Agreement has been approved as required by Rule 12b-1 and may continue for more than one year so long as it is continued as required by Rule 12b-1. The Plan shall continue until terminated by action of the members of the Funds' Board who are not interested persons of the Funds and have no direct or indirect financial interest in the operations of the Plan, and the related Agreement will terminate automatically in the event of an assignment as that term is defined in the Investment Company Act of 1940. 5.4 Neither the Plan nor the Agreement may be amended to materially increase the amount of the payments without the approval of the outstanding voting securities. 5.5 This Plan and Agreement shall be governed by the laws of the State of Minnesota. 5.6 Each Fund 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. IN WITNESS WHEREOF, the parties hereto have executed the foregoing Agreement as of the day and year first above written. RIVERSOURCE VARIABLE SERIES TRUST /s/ Patrick T. Bannigan ------------------------------------- Patrick T. Bannigan President RIVERSOURCE DISTRIBUTORS, INC. /s/ William F. Truscott ------------------------------------- William F. Truscott Vice President SCHEDULE A FUNDS The Funds, each a Massachusetts business trust, to which this Agreement applies follow: RIVERSOURCE VARIABLE SERIES TRUST RiverSource Variable Portfolio-Balanced Fund RiverSource Variable Portfolio-Cash Management Fund RiverSource Variable Portfolio-Core Bond Fund RiverSource Variable Portfolio-Core Equity Fund RiverSource Variable Portfolio-Diversified Bond Fund RiverSource Variable Portfolio-Diversified Equity Income Fund RiverSource Variable Portfolio-Emerging Markets Fund RiverSource Variable Portfolio-Fundamental Value Fund RiverSource Variable Portfolio-Global Bond Fund RiverSource Variable Portfolio-Global Inflation Protected Securities Fund RiverSource Variable Portfolio-Growth Fund RiverSource Variable Portfolio-High Yield Bond Fund RiverSource Variable Portfolio-Income Opportunities Fund RiverSource Variable Portfolio-International Opportunity Fund RiverSource Variable Portfolio-Large Cap Equity Fund RiverSource Variable Portfolio-Large Cap Value Fund RiverSource Variable Portfolio-Mid Cap Growth Fund RiverSource Variable Portfolio-Mid Cap Value Fund RiverSource Variable Portfolio-S&P 500 Index Fund RiverSource Variable Portfolio-Select Value Fund RiverSource Variable Portfolio-Short Duration U.S. Government Fund RiverSource Variable Portfolio-Small Cap Advantage Fund RiverSource Variable Portfolio-Small Cap Value Fund