COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES
COLONIAL MANAGEMENT SUB-ADVISORY AGREEMENT
AGREEMENT dated May 19, 1998 among LIBERTY VARIABLE INVESTMENT TRUST, a
Massachusetts business trust (the "Trust"), with respect to COLONIAL HIGH YIELD
SECURITIES FUND, VARIABLE SERIES (the "Fund"), LIBERTY ADVISORY SERVICES CORP.,
a Massachusetts corporation ("Adviser"), and COLONIAL MANAGEMENT ASSOCIATES,
INC., a Massachusetts corporation (the "Sub-Adviser").
In consideration of the promises and covenants herein, the parties agree as
follows:
1. The Sub-Adviser will manage the investment of the assets of the Fund in
accordance with its investment objective, policies and limitations set
forth in the Trust's prospectus and statement of additional
information, as amended from time to time, and will perform the other
services herein set forth, subject to the supervision of the Adviser
and the Board of Trustees of the Trust.
2. In carrying out its investment management obligations, the Sub-Adviser
shall:
(a) evaluate such economic, statistical and financial
information and undertake such investment research as it shall believe
advisable;
(b) purchase and sell securities and other investments for the
Fund in accordance with the procedures described in the Trust's
prospectus and statement of additional information; and
(c) report results to the Adviser and to the Board of Trustees.
3. The Sub-Adviser shall be free to render similar services to others so
long as its services hereunder are not impaired thereby.
4. The Adviser shall pay the Sub-Adviser a monthly fee at the annual rate
of 0.40% of the average daily net assets of the Fund for managing the
investment of the assets of the Fund provided in paragraph 1 above.
Such fee shall be paid in arrears on or before the 10th day of the next
following calendar month.
5. This Agreement shall become effective on the date first written above,
an (a) unless otherwise terminated, shall continue until the second
anniversary of the date hereof, and from year to year thereafter so
long as approved annually in accordance with the 1940 Act; (b) may be
terminated without penalty on sixty days' written notice to the
Sub-Adviser either by vote of the Board of Trustees of the Trust or by
vote of a majority of the outstanding voting securities of the Fund;
(c) shall automatically terminate in the even of its assignment; and
(d) may be terminated without penalty by the Sub-Adviser on sixty day's
written notice to the Trust.
6. This Agreement may be amended in accordance with the 1940 Act.
7. For the purpose of the Agreement, the terms "vote of a majority of the
outstanding shares," and "assignment" shall have their respective
meanings defined in the 1940 Act and exemptions and interpretations
issued by the Securities and Exchange Commission under the 1940 Act.
8. In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Sub-Adviser, or reckless disregard of its obligations
and duties hereunder, the Sub-Adviser shall not be subject to any
liability to the Trust or the Fund, to any shareholder of the Trust or
the Fund or to any person, firm or organization, for any act or
omission in the course of or connection with rendering services
hereunder.
9. The Fund may use the name "Colonial," or any other name derived from
the name "Colonial," only for so long as this Agreement or any
extension, renewal, or amendment hereof remains in effect, including
any similar agreement with any organization that shall have succeeded
to the business of the Sub-Adviser. At such time as this Agreement or
any extension, renewal or amendment hereof, or each such other similar
successor organization agreement shall no longer be in effect, the Fund
will cease to use any name derived from the name "Colonial," any name
similar thereto, or any other name indicating that it is advised by or
otherwise connected with the Sub-Adviser, or with any organization
which shall have succeeded to the Sub-Adviser's business as an
investment adviser.
10. The Sub-Adviser is hereby expressly put on notice of the limitation of
shareholder liability as set forth in the Declaration of Trust of the
Trust and agrees that obligations assumed by the Trust pursuant to this
Agreement shall be limited in all cases to the assets of the Fund. The
Sub-Adviser further agrees that it shall not seek satisfaction of any
such obligation from the shareholders of the Fund, nor from the
Trustees or any individual Trustee of the Trust.
COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES
By: LIBERTY VARIABLE INVESTMENT TRUST
By: Xxxxxxx X. Xxxxxxxxxxx, President
COLONIAL MANAGEMENT ASSOCIATES, INC.
By: Xxxxxxx X. Xxxxxx, President
LIBERTY ADVISORY SERVICES CORP.
By:
Title:
