EXPENSE LIMIT AND REIMBURSEMENT AGREEMENT
Expense Limit and Reimbursement Agreement made as of March 12, 2004,
between Pioneer Investment Management, Inc. ("PIM") and Pioneer Variable
Contracts Trust (the "Trust") with respect to the Trust's series of shares of
beneficial interest listed on APPENDIX I hereto (each a "Portfolio").
Whereas PIM wishes to reduce the expenses of each Portfolio until the
Portfolio achieves a certain level of assets; and
Whereas the Trust wishes to have PIM enter into such an agreement and
is prepared to repay such expenses if the Portfolio subsequently achieves a
sufficient level of assets.
Now therefore the parties agree as follows:
SECTION 1. PIM agrees to limit each Portfolio's expenses (the "Expense
Limitation") by waiving PIM's fees and/or reimbursing the Portfolio for the
Portfolio's ordinary operating expenses so that the total expenses of the
Portfolio (other than extraordinary expenses, such as litigation, taxes,
brokerage commissions, etc.) with respect to Class I or Class II shares, as
designated in APPENDIX I, do not exceed the percentage of average daily net
assets attributable to Class I or Class II shares, as specified in APPENDIX I,
on an annual basis. PIM also agrees to waive its fees and/or reimburse the
fund-wide expenses attributable to any other authorized class of a Portfolio's
shares to the same extent that such expenses are reduced for that Portfolio's
Class I or Class II shares, as the case may be. In no event, shall Pioneer Funds
Distributor, Inc. be required to waive or PIM reimburse any fees payable under
the Trust's Rule 12b-1 Plan.
SECTION 2. PIM may terminate or modify the Expense Limitation only in
accordance with this Agreement. PIM agrees that the Expense Limitation shall not
be modified or terminated during the remainder of the fiscal year in which this
Agreement or any predecessor Agreement is executed. PIM shall be entitled to
modify or terminate the Expense Limitation with respect to any fiscal year that
commences subsequent to the date this Agreement is executed if, but only if, PIM
elects to modify or terminate the Expense Limitation with respect to such
subsequent fiscal year and such election is made prior to the effective date of
the Trust's post-effective amendment to its Registration Statement on Form N-1A
to incorporate the Portfolios' financial statements; provided that this
Agreement shall remain in effect at all times with respect to a Portfolio until
the Portfolio's then current prospectus is amended or supplemented to reflect
the termination or modification of this Agreement. The election by PIM referred
to in the preceding sentence shall not be subject to the approval of the Trust
or its Board of Trustees, but PIM shall notify the Board of Trustees in advance
of the termination or modification of the Expense Limitation.
SECTION 3. If the Portfolio is designated as a "Reimbursement
Portfolio" in APPENDIX I, PIM shall keep a record of the amount of expenses for
each class of shares that it waived or reimbursed pursuant to Section 1 hereof
("Prior Expenses"). If at any future date the total expenses of the
Reimbursement Portfolio attributable to Class I or Class II shares, as the case
may be, are less than the Expense Limitation, PIM shall be entitled to be
reimbursed for such Prior Expenses attributable to Class I or Class II shares,
as the case may be, provided that such reimbursement does not cause the
Portfolio's Class I or Class II expenses to exceed the Expense Limitation. PIM
shall also be entitled to reimbursement of the corresponding Prior Expenses
attributable to any other authorized class of the Reimbursement Portfolio's
shares. If the Reimbursement Portfolio's Class I or Class II expenses, as the
case may be, subsequently exceed the Expense Limitation, the reimbursement of
Prior Expenses shall be suspended and, if subsequent reimbursement of Prior
Expenses shall be resumed to the extent that Class I or Class II expenses do not
exceed the Expense Limitation (unless previously terminated by PIM), the Expense
Limitation shall be applied. Notwithstanding anything in this Section 3 to the
contrary, the Reimbursement Portfolio shall not reimburse PIM for any Prior
Expense pursuant to this Section 3 more than three (3) years after the expense
was incurred.
SECTION 4. It is not intended by PIM or the Trust that the
reimbursement agreement in Section 3 shall be an obligation of the Reimbursement
Portfolio unless and until the total expenses of the Reimbursement Portfolio
attributable to Class I or Class II shares, as the case may be, are less than
the Expense Limitation. PIM understands that such total expenses may never be
reduced to such level and there is no assurance that the Prior Expenses shall be
reimbursed. In addition, the Trust shall have the right to terminate this
Agreement with respect to a Reimbursement Portfolio, including the Reimbursement
Portfolio's obligation to reimburse Prior Expenses, at any time upon notice to
PIM. This Agreement automatically terminates without obligation by the Trust
upon termination of the Portfolio's Management Contract between PIM and the
Trust.
SECTION 5. This Agreement shall be governed by the laws of the State of
Delaware.
In witness whereof, the parties hereto have caused this Agreement to be signed
as of the 12th day of March, 2004.
PIONEER VARIABLE CONTRACTS
TRUST
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: Executive Vice President
PIONEER INVESTMENT MANAGEMENT, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇
Title: President
APPENDIX I
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PORTFOLIO REIMBURSEMENT PORTFOLIO CLASS EXPENSE LIMITATION
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Pioneer Emerging Markets VCT No Class I 1.75%
Portfolio
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Pioneer Europe VCT Portfolio No Class I 1.50%
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Pioneer Oak Ridge Large Cap Yes Class II 0.95%
Growth VCT Portfolio
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Pioneer ▇▇▇▇ America-Pacific Yes Class II 0.95%
Rim VCT Portfolio
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Pioneer ▇▇▇▇ Small and Mid Yes Class II 1.00%
Cap Growth VCT
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Pioneer Small Cap Value VCT Yes Class I 1.25%
Portfolio
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Pioneer Small Company VCT Yes Class I 1.25%
Portfolio
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Pioneer Strategic Income VCT No Class I 1.25%
Portfolio
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Pioneer Value VCT Portfolio Yes Class II 1.50%
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