EXPENSE REIMBURSEMENT AGREEMENT
AGREEMENT made this 30th day of May, 2000, by and between LIBERTY VARIABLE
INVESTMENT TRUST, a Massachusetts business trust (the "Trust"), on its own
behalf and on behalf of Liberty Value Fund, Variable Series; Colonial U.S.
Growth & Income Fund, Variable Series; Colonial Strategic Income Fund, Variable
Series; Newport Tiger Fund, Variable Series; Liberty All-Star Equity Fund,
Variable Series; Colonial Small Cap Value Fund, Variable Series; Colonial High
Yield Securities Fund, Variable Series; Liberty Newport Japan Opportunities
Fund, Variable Series; Liberty Select Value Fund, Variable Series; Rydex
Financial Services Fund, Variable Series; Rydex Health Care Fund, Variable
Series; and Liberty S&P 500 Index Fund, Variable Series (each a "Fund," and
collectively, the "Funds"), and LIBERTY ADVISORY SERVICES CORP., a corporation
organized under the laws of The Commonwealth of Massachusetts (the "Advisor")
and LIBERTY FUNDS DISTRIBUTOR, INC., a corporation organized under the laws of
The Commonwealth of Massachusetts (the "Distributor").
WHEREAS, the Funds and the Advisor have separately entered into a Management
Agreement of even date herewith (the "Management Agreement") and the Trust and
the Distributor have entered into a 12b-1 Implementing Agreement and
Underwriting Agreement of even date herewith (the "Distribution Agreement");
In consideration of the mutual covenants hereinafter contained it is hereby
agreed by and between the parties hereto as follows:
1. For the period from May 30, 2000 through April 30, 2001, the Advisor and the
Distributor agree to reimburse the Fund for all expenses, including management
fees, but excluding interest, taxes, brokerage and extraordinary expenses,
incurred by each Fund in excess of the following percentages of average daily
net asset value per annum:
Value Fund: 1.00%
U.S. Growth Fund: 1.00%
Strategic Income Fund: 1.00%
Tiger Fund: 1.75%
All-Star Equity Fund: 1.00%
Small Cap Fund: 1.10%
High Yield Fund: 0.95%
Japan Opportunities Fund 1.85%
Select Value Fund 1.10%
Financial Services Fund 1.45%
Health Care Fund 1.60%
500 Index Fund 0.75%
The Distributor will first reimburse the distribution fee of up to 0.25% to
reach the above stated limits on expenses. If additional reimbursement is needed
to meet the limits, the Advisor will then reimburse other expenses to the extent
necessary to reach the above stated limits. If additional reimbursement is still
needed to reach the expense limits, the Advisor will then waive a portion of its
management fee to reach the above stated limits.
2. This Agreement, and the Advisor's and Distributor's obligation to so waive
expenses hereunder, shall terminate on the earlier of (a) April 30, 2001 or (b)
termination of the Management Agreement and Distribution Agreement.
3. Except as provided in paragraph 2 above, this Agreement may be terminated
only by the vote of (a) the Board of Trustees of the Funds, including the vote
of the members of the Board who are not "interested persons" within the meaning
of the Investment Company Act of 1940, and (b) a majority of the outstanding
voting securities of each Fund.
4. If any provision of this Agreement shall be held or made invalid by a court
decision, statute, rule, or otherwise, the remainder shall not be thereby
affected.
5. The Trust's Declaration of Trust is on file with the Secretary of the
Commonwealth of Massachusetts. This Agreement is executed on behalf of the Funds
by the Funds' officers as officers and not individually and the obligations
imposed upon the Funds by this Agreement are not binding upon any of the Funds'
Trustees, officers or shareholders individually but are binding only upon the
assets and property of each Fund.
IN WITNESS WHEREOF, the Funds, the Advisor and the Distributor have caused this
Agreement to be executed on the day and year above written.
LIBERTY VARIABLE INVESTMENT TRUST on its own behalf and on behalf of
Liberty Value Fund, Variable Series; Colonial U.S.
Growth & Income Fund, Variable Series; Colonial
Strategic Income Fund, Variable Series; Newport Tiger
Fund, Variable Series; Liberty All-Star Equity Fund,
Variable Series; Colonial Small Cap Value Fund,
Variable Series; Colonial High Yield Securities Fund,
Variable Series; Liberty Newport Japan Opportunities
Fund, Variable Series; Liberty Select Value Fund,
Variable Series; Rydex Financial Services Fund,
Variable Series; Rydex Health Care Fund, Variable
Series; Liberty S&P 500 Index Fund, Variable Series
By: /s/Xxxxxxx X. Xxxxxx
LIBERTY ADVISORY SERVICES CORP.
By: /s/Xxxxxx X. Xxxxxxxxxxx
LIBERTY FUNDS DISTRIBUTOR, INC.
By: /s/Xxxxx Xxxxxxx
