PRICING AND BOOKKEEPING AGREEMENT
AGREEMENT dated as of January , 1999 between Colonial Trust IV, a
Massachusetts Business Trust (Trust), on behalf of each of Liberty [XYZ] Income
Fund, Liberty [XYZ] Balanced Fund and Liberty [XYZ] Growth Fund (collectively
the "Funds"), and Colonial Management Associates, Inc. (Colonial), a
Massachusetts corporation.
The Trust and Colonial agree as follows:
1. Appointment. The Trust on behalf of each of the Funds appoint
Colonial as agent to perform the services described below, effective on the date
hereof.
2. Services. Colonial shall (i) determine and timely communicate to
persons designated by the Trust each Fund's net asset values and offering prices
per Share in accordance with the applicable provisions of the Trust's
Registration Statement on Form N-1A; and (ii) maintain and preserve in a secure
manner the accounting records of the Funds, including all such accounting
records as the Funds are obligated to maintain and preserve under the Investment
Company Act of 1940 and the rules thereunder, applicable federal and state tax
laws and any other applicable laws, rules and regulations. All records shall be
the property of the Trust. Colonial will provide disaster planning to minimize
possible service interruption.
3. Audit, Use and Inspection. Colonial shall make available on its
premises during regular business hours all records of the Funds for reasonable
audit, use and inspection by the Trust, its agents and any regulatory agency
having authority over the Funds.
4. Compensation. The Trust on behalf of each of the Funds will pay
Colonial a monthly fee of $3,000 per Fund, plus a monthly percentage fee on the
average daily net assets of the Fund for the month in excess of $50 million at
the following annual rates: 0.035% on the next $950 million; 0.025% on the next
$1 billion; 0.015% on the next $1 billion; and 0.001% on the excess over $3
billion.
5. Compliance. Colonial shall comply with applicable provisions
relating to pricing and bookkeeping of the prospectus and statement of
additional information of the Trust relating to the Funds and applicable laws
and rules in the provision of services under this Agreement.
6. Limitation of Liability. In the absence of willful misfeasance, bad
faith or gross negligence on the part of Colonial, or reckless disregard of its
obligations and duties hereunder, Colonial shall not be subject to any liability
to the Trust or any of the Funds, to any shareholder of the Trust or the Funds
or to any other person, firm or organization, for any act or omission in the
course of, or connected with, rendering services hereunder.
7. Amendments. The Trust shall submit to Colonial a reasonable time in
advance of filing with the Securities and Exchange Commission copies of any
changes in the Trust's Registration Statement relating to the Funds. If a change
in documents or procedures materially increases the cost to Colonial of
performing its obligations, Colonial shall be entitled to receive reasonable
additional compensation.
8. Duration and Termination, etc. This Agreement may be changed only by
writing executed by each party. This Agreement: (a) shall continue in effect
from year to year so long as approved annually by vote of a majority of the
Trustees of the Trust who are not affiliated with Colonial; (b) may be
terminated at any time without penalty by sixty days' written notice to either
party; and (c) may be terminated at any time for cause by either party if such
cause remains unremedied for a reasonable period not to exceed ninety days after
receipt of written specification of such cause. Paragraph 6 of this Agreement
shall survive termination. If the Trust designates a successor to any of
Colonial's obligations, Colonial shall, at the expense and direction of the
Trust, transfer to the successor all Trust records maintained by Colonial.
9. Miscellaneous. This Agreement shall be governed by the laws of The
Commonwealth of Massachusetts.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the day and year first above.
COLONIAL TRUST IV on behalf of
LIBERTY [XYZ] INCOME FUND
LIBERTY [XYZ] BALANCED FUND
LIBERTY [XYZ] GROWTH FUND
BY:_________________________________
Title:
COLONIAL MANAGEMENT ASSOCIATES, INC.
BY:_________________________________
Title:
A copy of the document establishing the Trust is filed with the
Secretary of The Commonwealth of Massachusetts. This Agreement is executed by
officers not as individuals and is not binding upon any of the Trustees,
officers or shareholders of the Trust individually but only upon the assets of
the Fund.
