12B-1 PLAN INTER-DISTRIBUTOR AGREEMENT
Liberty Funds Distributor, Inc., a Massachusetts corporation ("LFDI"), and
Keyport Financial Services Corp., a Massachusetts corporation ("KFSC"), make
this agreement as of May 30, 2000.
RECITALS
WHEREAS, LFDI is the Distributor of shares of the Funds within Liberty
Variable Investment Trust (the "Trust"), an open-end investment company that
sells shares to separate accounts of Keyport Life Insurance Company and Keyport
Benefit Life Insurance Company (together, "Keyport") as funding vehicles for
variable annuity contracts issued by Keyport (the "Contracts"); and
WHEREAS, KFSC is the Distributor of the Contracts and has selling agreements
with dealers that sell the Contracts; and
WHEREAS, the Trust, on behalf of its Funds, has adopted a so-called "Rule
12b-1 Plan" (the "Plan") pursuant to SEC Rule 12b-1 (the "Rule") under the
Investment Company Act of 1940 (the "Act") under which a Fund or a class of
shares of a Fund may, pursuant to the Plan, pay LFDI a specified portion of its
assets to be used for the purposes specified in the Plan ("12b-1 Fees"), and an
Implementing Agreement with LFDI dated June 1, 1999 under which LFDI agrees to
receive the 12b-1 Fees, to use such 12b-1 Fees consistently with the Plan, and
to report on its expenditure of such 12b-1 Fees to the Trustees of the Trust as
required by the Rule; and
WHEREAS, LFDI wishes to pay KFSC, as Distributor of the Contracts, the
amounts it receives from the Trust as 12b-1 Fees; and
WHEREAS, KFSC, as Distributor of the contracts, is willing to receive 12b-1
Fees from LFDI, to use such fees for purposes consistent with the Plan, and to
cooperate with LFDI in making all reports required by the Act, the Rule or the
Plan,
NOW THEREFORE, intending to be legally bound, LFDI and KFSC hereby agree as
follows:
1. PAYMENTS, EXPENDITURES AND REPORTS.
A. LFDI expects to receive from each Fund 12b-1 Fees payable under the Plan
on the 20th day of each month, or, if such day is not a business day, the next
business day thereafter, during the term of this Agreement. LFDI will pay KFSC
the amounts it receives in 12b-1 Fees within three business days from its
receipt of such fees.
B. KFSC shall expend the amounts of 12b-1 Fees it receives from LFDI in its
discretion, so long as such expenditures are consistent with the Rule, the Plan,
and any instructions LFDI or KFSC may receive from the Trustees of the Trust.
C. KFSC shall use its best efforts to cooperate with LFDI in preparing and
submitting all reports required under the Act, the Rule or the Plan to the
Trustees of the Trusts, both as provided in the Act, the Rule and the Plan and
as requested by the Trustees.
2. CONTINUATION; AMENDMENT; TERMINATION; NOTICE.
A. This Agreement (i) supersedes and replaces any contract or agreement
relating to the subject matter hereof in effect prior to the date hereof, (ii)
shall continue in effect as to the Trust or any Fund only so long as the Plan is
specifically approved for that Fund at least annually by the Trustees or
shareholders of the Trust or Fund; (iii) may be amended at any time by written
agreement of the parties, each in accordance with the Act and the Rule; (iv)
shall terminate with respect to a Fund at any time as provided in the Rule
without payment of any penalty.
B. This Agreement (i) shall terminate immediately upon the effective date
of any later dated agreement relating to the subject matter hereof, and (ii) may
be terminated either upon 60 days' notice without penalty, upon written notice
to both parties that the Trustees of the Trust have determined that it is in the
best interests of the Trust that it shall terminate, or by either party or
otherwise in accordance with the Act, and (iii) will terminate immediately in
the event of its assignment (as defined in the Act). Upon termination the
obligations of the parties under this Agreement shall cease except for
unfulfilled obligations and liabilities arising prior to termination.
C. All notices required under this Agreement shall be in writing and
delivered to the office of the other party.
Executed under seal as a Massachusetts contract as of the date set forth above.
LIBERTY FUNDS DISTRIBUTOR, INC.
By: /s/Xxxxx Xxxxxxx
Xxxxx Xxxxxxx, Co-President
KEYPORT FINANCIAL SERVICES CORP.
By: /s/Xxxxx Xxxxxxx
Xxxxx Xxxxxxx, President
