COLONIAL HIGH YIELD SECURITIES FUND, VARIABLE SERIES
COLONIAL MANAGEMENT SUB-ADVISORY AGREEMENT
AGREEMENT dated 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 may delegate its investment responsibilities under
paragraph 2(b) with respect to the Fund to one or more persons or
companies registered as investment advisers under the Investment
Adviser's Act of 1940, as amended, or qualifying as a "bank" within
the meaning of such Act and thereby exempted from the requirement to
be so registered ("Second-Tier Sub-Advisers"), pursuant to an
agreement among the Trust, such Fund, the Adviser, the Sub-Adviser
and such Second-Tier Sub-Adviser ("Second-Tier Sub-Advisory
Agreement"). Each Second-Tier Sub-Advisory Agreement may provide
that the Second-Tier Sub-Adviser, subject to the control and
supervision of the Trustees, the Adviser and the Sub-Adviser, shall
have full investment discretion for the Fund and the Fund's assets
or any portion thereof specified by the Sub-Adviser. Any selection
of duties pursuant to this paragraph shall comply with any
applicable provisions of Section 15 of the Investment Company Act of
1940, as amended ("the "1940 Act"), except to the extent permitted
by any applicable exemptive order of the Securities and Exchange
Commission or similar relief. The Sub-Adviser shall be solely
responsible for paying the fees of each Second-Tier Sub-Adviser from
the fees it collects as provided in paragraph 5 below.
4. The Sub-Adviser shall be free to render similar services to others
so long as its services hereunder are not impaired thereby.
5. The Advisor shall pay the Sub-Adviser a monthly fee at the annual
rate of 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.
6. This Agreement shall become effective on the date first written
above, an (a) unless otherwise terminated, shall continue until 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.
7. This Agreement may be amended in accordance with the 1940 Act.
8. For the purpose of the Agreement, the terms "vote of a majority of
the outstanding shares," "affiliated person" 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.
9. 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.
10. 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-Advisor. 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.
11. 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:
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Its
COLONIAL MANAGEMENT ASSOCIATES, INC.
By:
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Its
LIBERTY ADVISORY SERVICES CORP.
By:
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Its
