FORM OF
AMENDMENT TO
PORTFOLIO MANAGEMENT AGREEMENT
August 1, 1997
[Name and address of Portfolio Manager]
Re: Portfolio Management Agreement
Gentlemen:
Reference is made to the Portfolio Management Agreement (the "Agreement")
dated ____ 1, 1996 among you, Liberty All-Star Equity Fund (the "Fund") and
Liberty Asset Management Company (the "Fund Manager") pursuant to which you are
providing portfolio management services with respect to those assets of the Fund
assigned to you from time to time by the Fund Manager as provided in the
Agreement (such assets being referred to as the "Fund Account") and pursuant to
which the Fund Manager pays you fees calculated and paid in accordance with
Schedule C to the Agreement based on the net asset value of the Fund Account.
Upon your execution of the enclosed copy of this letter at the place
indicated below, this letter will constitute the agreement of you, the Fund and
the Fund Manager to amend Schedule C to the Agreement so as to read in its
entirety as set forth on the attached, effective August 1, 1997 (the Agreement,
as so amended, to remain in full force and effect in accordance with its terms).
Very truly yours,
LIBERTY ALL-STAR EQUITY FUND
By:
-----------------------------
LIBERTY ASSET MANAGEMENT COMPANY
By:-----------------------------
ACCEPTED AND AGREED TO
AS OF AUGUST 1, 1997
[Name of Portfolio Manger]
By: _________________________
LIBERTY ALL-STAR EQUITY FUND
Portfolio Management Agreement
SCHEDULE C
(as amended effective August 1, 1997)
PORTFOLIO MANAGER FEE
For services provided to the Fund Account, the Fund Manager will pay to the
Portfolio Manager, on or before the 10th day of each calendar month, a monthly
fee for the previous calendar month in the amount of 1/12th of: 0.40% of the
amount obtained by multiplying the Portfolio Manager's Percentage (as
hereinafter defined) times the Average Total Fund Net Assets (as hereinafter
defined) up to $400 million; 0.36% of the amount obtained by multiplying the
Portfolio Manager's Percentage times the Average Total Fund Net Assets exceeding
$400 million up to and including $800 million; 0.324% of the amount obtained by
multiplying the Portfolio Manager's Percentage times the Average Total Fund Net
Assets exceeding $800 million up to and including $1.2 billion; and 0.292% of
the amount obtained by multiplying the Portfolio Manager's Percentage times the
Average Total Fund Net Assets exceeding $1.2 billion.
"Portfolio Manager's Percentage" means the percentage obtained by dividing
(i) the average of the net asset values of the Fund Account as of the close of
the last business day of the New York Stock Exchange in each calendar week
during the preceding calendar month, by (ii) the Average Total Fund Net Assets.
"Average Total Fund Net Assets" means the average of the net asset values
of the Fund as a whole as of the close of the last business day of the New York
Stock Exchange in each calendar week during the preceding calendar
month.
The fee shall be pro-rated for any month during which this
Agreement is in
effect for only a portion of the month.
