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Exhibit h (3)
EXPENSE CAP AGREEMENT
Agreement made this 23rd day of February, 1999, between Hotchkis and
Wiley, as investment advisor (the "Advisor"), and the Hotchkis and Wiley
Variable Trust regarding the Portfolios of the Trust (individually, a
"Portfolio" and collectively, the "Portfolios").
WHEREAS, the Advisor has been reimbursing the Portfolios for expenses
that exceed certain voluntary expense limits, and
WHEREAS, the Advisor wishes to change its voluntary agreement to limit
expenses of the Portfolios and commit to those limits for a period of time, and
WHEREAS, shareholders of the Portfolios benefit from any expense limits
agreed to by the Advisor.
NOW, THEREFORE, the Portfolios and the Advisor agree to expense limits
on the annual operating expenses of the Portfolios as follows:
Expense Limit
(as a percentage of
Portfolio average net assets)
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Equity Income VIP Portfolio 1.15%
International VIP Portfolio 1.35%
Total Return Bond VIP 0.65%
Portfolio
Low Duration VIP Portfolio 0.58%
The Advisor agrees to continue the foregoing expense limits through February 29,
2000 and thereafter may change any of them only upon 30 days' prior notice to
the applicable Portfolio shareholders.
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IN WITNESS WHEREOF, the parties have signed this agreement as of the day
and year first above written.
HOTCHKIS AND WILEY, a division of
Xxxxxxx Xxxxx Asset Management, L.P.
By /s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
Chief Administrative Officer
HOTCHKIS AND WILEY VARIABLE TRUST
By /s/ Xxxxx X. Xxxxxx
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Xxxxx X. Xxxxxx
President
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