EXPENSE REIMBURSEMENT AGREEMENT
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AGREEMENT made this 14th day of January, 2000, by and between LIBERTY-XXXXX XXX
ADVISOR FLOATING RATE ADVANTAGE FUND, a Massachusetts business trust (the
"Fund"), and XXXXX XXX & FARNHAM INCORPORATED, a Delaware corporation (the
"Advisor").
WHEREAS, the Fund and the Advisor have separately entered into a
Management Agreement of even date herewith (the "Management Agreement");
In consideration of the mutual covenants hereinafter contained, and in
connection with the establishment and commencement of operations of the Fund, it
is hereby agreed by and between the parties hereto as follows:
1. For the period from the commencement of the Fund's operations through
December 31, 2000, the Advisor agrees to reimburse the Fund for expenses (other
than Management Fees payable pursuant to the terms of the Management Agreement,
administrative fees payable pursuant to the terms of the Administration
Agreement, distribution or service fees, and interest and fees on borrowings)
incurred by the Fund in excess of an annual rate of 0.15% of the average daily
net assets of the Fund.
2. This Agreement, and the Advisor's obligation to so waive expenses hereunder,
shall terminate on the earlier of (a) December 31, 2000 or (b) termination of
the Management Agreement.
3. Except as provided in paragraph 2 above, this Agreement may be terminated
only by the vote of (a) the Board of Trustees of the Fund, including the vote of
the members of the Board who are not "interested persons" within the meaning of
the Investment Company Act of 1940, and (b) a majority of the outstanding voting
securities of the Fund.
4. If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule, or otherwise, the remainder shall not be thereby
affected.
5. The Fund's Declaration of Trust is on file with the Secretary of the
Commonwealth of Massachusetts. This Agreement is executed on behalf of the Fund
by the Fund's officers as officers and not individually and the obligations
imposed upon the Fund by this Agreement are not binding upon any of the Fund's
Trustees, officers or shareholders individually but are binding only upon the
assets and property of the Fund.
IN WITNESS WHEREOF, the Fund and the Advisor have caused this Agreement to be
executed on the day and year above written.
LIBERTY-XXXXX XXX ADVISOR FLOATING RATE ADVANTAGE FUND
By: J. Xxxxx Xxxxxxxxxxx, Controller
XXXXX XXX & XXXXXXX INCORPORATED
By: Xxxxxx X. Xxxxxxx, Executive Vice President
