LIBERTY NEWPORT JAPAN OPPORTUNITIES FUND, VARIABLE SERIES
NEWPORT FUND MANAGEMENT, INC. SUB-ADVISORY AGREEMENT
AGREEMENT dated May 30, 2000 among LIBERTY VARIABLE INVESTMENT TRUST, a
Massachusetts business trust (the "Trust"), with respect to LIBERTY NEWPORT
JAPAN OPPORTUNITIES FUND, VARIABLE SERIES (the "Fund"), LIBERTY ADVISORY
SERVICES CORP., a Massachusetts corporation ("Advisor"), and NEWPORT FUND
MANAGEMENT, INC., a Virginia corporation (the "Sub-Advisor").
In consideration of the promises and covenants herein, the parties agree
as follows:
1. The Sub-Advisor 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 Advisor and the Board of Trustees of the Trust.
2. In carrying out its investment management obligations, the
Sub-Advisor 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 Advisor and to the Board of
Trustees.
3. The Sub-Advisor shall be free to render similar services to others
so long as its services hereunder are not impaired thereby.
4. The Advisor shall pay the Sub-Advisor a monthly fee at the annual
rate of 1.00% 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.
5. This Agreement shall become effective on the date first written
above, an (a) unless otherwise terminated, shall continue until the
second anniversary of the date hereof, 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-Advisor 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-Advisor on sixty day's written notice to the Trust.
6. This Agreement may be amended in accordance with the 1940 Act.
7. For the purpose of the Agreement, the terms "vote of a majority of
the outstanding shares," 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.
8. In the absence of willful misfeasance, bad faith or gross negligence
on the part of the Sub-Advisor, or reckless disregard of its
obligations and duties hereunder, the Sub-Advisor 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.
9. The Fund may use the name "Newport," or any other name derived from
the name "Newport," 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 "Newport," any name
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similar thereto, or any other name indicating that it is advised by
or otherwise connected with the Sub-Advisor, or with any
organization which shall have succeeded to the Sub-Advisor's
business as an investment advisor.
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10. The Sub-Advisor 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-Advisor 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.
LIBERTY NEWPORT JAPAN OPPORTUNITIES FUND, VARIABLE SERIES
By: LIBERTY VARIABLE INVESTMENT TRUST
By:/s/Stephen E. Gibson
Stephen E. Gibson, President
NEWPORT FUND MANAGEMENT, INC.
By:/s/Thomas R. Tuttle
Thomas R. Tuttle, President
LIBERTY ADVISORY SERVICES CORP.
By:/s/Philip K. Polkinghorn
Philip K. Polkinghorn, President
