Expense Limit and Reimbursement Agreement
Expense Limit and Reimbursement Agreement made as of August 3, 2004,
between Pioneer Investment Management, Inc. (PIM) and the investment companies
and series thereof listed on Annex A (each a "Fund").
Whereas PIM wishes to reduce the expenses of the Investor Class shares
or Class I shares of each Fund until the end of the month of the second
anniversary of the reorganization relating to the initial issuance of Investor
Class shares or Class I shares of such Fund; and
Whereas each Fund wishes to have PIM enter into such an agreement;
Now therefore the parties agree as follows:
Section 1. PIM agrees, until the end of the month of the second
anniversary of the reorganization relating to the initial issuance of Investor
Class shares or Class I shares of a Fund, to limit such Fund's ordinary
operating expenses (other than extraordinary expenses, such as litigation,
taxes, brokerage commissions, etc.) attributable to the Investor Class shares or
Class I shares (the "Expense Limitation") to the percentage listed for such Fund
on Annex A. Such limitation shall be made by waiving transfer agency fees and/or
reimbursing expenses attributable to Investor Class shares or Class I shares. In
the event that the waiver of transfer agency fees and expenses is not
sufficient, PIM shall waive other fees and/or reimburse the Fund for the Fund's
other ordinary operating expenses (other than extraordinary expenses, such as
litigation, taxes, brokerage commissions, etc) so that the Expense Limitation is
satisfied with respect to Investor Class shares or Class I shares, as the case
may be.
Section 2. PIM may not terminate or modify the duration or amount of
this Expense Limitation Agreement. PIM may otherwise modify this Agreement with
the approval of the Board of Trustees of each Fund.
Section 3. PIM shall keep a record of the amount of expenses that it
waived or reimbursed pursuant to Section 1 hereof ("Prior Expenses"). If at any
future date the total expenses of a Fund attributable to Investor Class shares
or Class I shares, as the case may be, are less than the Expense Limitation, PIM
shall be entitled to be reimbursed for such Prior Expenses attributable to
Investor Class shares or Class I shares, provided that such reimbursement does
not cause the Fund's Investor Class or Class I share expenses to exceed the
Expense Limitation. PIM shall also be entitled to reimbursement of the
corresponding Prior Expenses attributable to any other authorized class of
shares. If the Fund's Investor Class or Class I expenses subsequently exceed the
Expense Limitation, the reimbursement of Prior Expenses shall be suspended and,
if subsequent reimbursement of Prior Expenses shall be resumed to the extent
that Investor Class or Class I expenses do not exceed the Expense Limitation,
the Expense Limitation shall be applied. Notwithstanding anything in this
Section 3 to the contrary, the Fund shall not reimburse PIM for any Prior
Expense pursuant to this Section 3 more than three (3) years after the expense
was incurred.
Section 4. It is not intended by PIM or the Fund that the reimbursement
agreement in Section 3 shall be an obligation of a Fund unless and until the
total expenses of such Fund
-1-
attributable to the Investor Class shares or Class I shares, as the case may be,
are less than the Expense Limitation. PIM understands that such total expenses
may never be reduced to such level and there is no assurance that the Prior
Expenses shall be reimbursed. In addition, each Fund shall have the right to
terminate this Agreement, including its obligation to reimburse Prior Expenses,
at any time upon notice to PIM. This Agreement automatically terminates without
obligation by the Fund upon termination of the Management Contract between PIM
and the Fund.
Section 5. This Agreement shall be governed by the laws of the State of
Delaware.
In witness whereof, the parties hereto have caused this Agreement to be
signed as of the 3rd day of August, 2004.
Each Fund listed on Annex A PIONEER INVESTMENT MANAGEMENT, INC.
By: /s/ Xxxxxx X. Xxxx By: /s/ Xxxxxxx X. Xxxxxxxx
--------------------------------------- --------------------------------
Xxxxxx X. Xxxx Xxxxxxx X. Xxxxxxxx
Executive Vice President Secretary
-2-
Annex A
---------------------------------------------------------------------
Acquiring Fund Class of Expense Limitation
Shares (Investor class) for
initial two years
---------------------------------------------------------------------
Pioneer International Investor Class 1.40%
Equity Fund
---------------------------------------------------------------------
Pioneer Balanced Fund Investor Class 1.10%
---------------------------------------------------------------------
Pioneer Fund Investor Class 1.02%
---------------------------------------------------------------------
Pioneer Growth Shares Investor Class 1.15%
---------------------------------------------------------------------
Pioneer Value Fund Investor Class 1.10%
---------------------------------------------------------------------
Pioneer Small Cap Value Investor Class 1.15%
Fund
---------------------------------------------------------------------
Pioneer Bond Fund Investor Class 0.74%
---------------------------------------------------------------------
Pioneer Tax Free Income Investor Class 0.70%
Fund
---------------------------------------------------------------------
Pioneer America Income Investor Class 0.74%
Trust
---------------------------------------------------------------------
Pioneer High Yield Fund Investor Class 0.90%
---------------------------------------------------------------------
Pioneer Cash Reserves Investor Class 0.71%
Fund
---------------------------------------------------------------------
Pioneer Tax Free Money Investor Class 0.65%
Market Fund
---------------------------------------------------------------------
Pioneer Growth Investor Class 1.05%
Opportunities Fund
---------------------------------------------------------------------
Pioneer Mid Cap Value Investor Class 1.10%
Fund
---------------------------------------------------------------------
Pioneer California Tax Investor Class 0.63%
Free Income Fund
---------------------------------------------------------------------
Pioneer Municipal Bond Investor Class 0.62%
Fund
---------------------------------------------------------------------
-3-
Acquiring Fund Class of Expense limitation
Shares for initial two years
--------------------------------------------------------------------------------
Pioneer Fund VCT Class I 0.80%
Portfolio
--------------------------------------------------------------------------------
Pioneer Small Cap Value Class I 1.01%
II VCT Portfolio
--------------------------------------------------------------------------------
Pioneer Bond VCT Class I 0.89%
Portfolio
--------------------------------------------------------------------------------
Pioneer Money Market Class I 0.90%
VCT Portfolio
--------------------------------------------------------------------------------
Pioneer Mid Cap VCT Class I 0.88%
Portfolio
--------------------------------------------------------------------------------
Pioneer Growth Class I 0.79%
Opportunities VCT
Portfolio
--------------------------------------------------------------------------------
-4-
