Exhibit (d)(1)
LIBERTY INTERMEDIATE GOVERNMENT INCOME FUND
MANAGEMENT AGREEMENT
AGREEMENT dated as of November 25, 2002, between LIBERTY FUNDS TRUST III, a
Massachusetts business trust ("Trust"), with respect to LIBERTY INTERMEDIATE
GOVERNMENT INCOME FUND ("Fund"), and FLEET INVESTMENT ADVISORS INC., a New York
corporation ("Advisor").
In consideration of the promises and covenants herein, the parties agree as
follows:
1. The Advisor will manage the investment of the assets of the Fund in
accordance with its prospectus and statement of additional information and
will perform the other services herein set forth, subject to the supervision
of the Board of Trustees of the Trust. The Advisor may delegate its
investment responsibilities to a sub-advisor.
2. In carrying out its investment management obligations, the 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 its prospectus and statement of
additional information; and (c) report results to the Board of Trustees of
the Trust.
3. The Advisor shall be free to render similar services to others so long as
its services hereunder are not impaired thereby.
4. The Fund shall pay the Advisor monthly a fee at the annual rate of 0.75% of
the average daily net assets of the Fund.
5. The Advisor may waive its compensation (and bear expenses of the Fund) to
the extent that expenses of the Fund exceed any expense limitation the
Advisor declares to be effective.
6. This Agreement shall become effective as of the date of its execution, and
(a) unless otherwise terminated, shall continue until July 31, 2003 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 Advisor either by vote of the Board of Trustees of the Trust
or by vote of a majority of the outstanding shares of the Fund; (c) shall
automatically terminate in the event of its assignment; and (d) may be
terminated without penalty by the Advisor on sixty days' written notice to
the Trust.
7. This Agreement may be amended in accordance with the 1940 Act.
8. For the purpose of the Agreement, the terms "vote of a majority of the
outstanding shares", "affiliated person" 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.
9. The Advisor shall maintain, keep current and preserve on behalf of the Fund,
in the manner required by the 1940 Act, records identified by the Trust from
time to time. Advisor agrees to make such records available upon request to
the Trust and its auditors during regular business hours at the Advisor's
offices. Advisor further agrees that such records are the property of the
Trust and will be surrendered to the Trust promptly upon request.
10. In the absence of willful misfeasance, bad faith or gross negligence on the
part of the Advisor, or reckless disregard of its obligations and duties
hereunder, the 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 other
person, firm or organization, for any act or omission in the course of, or
connected with, rendering services hereunder.
LIBERTY FUNDS TRUST III
ON BEHALF OF LIBERTY INTERMEDIATE GOVERNMENT INCOME FUND
By: ________________________________________________
Xxxx X. Xxxxxxxxxx
Secretary
FLEET INVESTMENT ADVISORS INC.
By: _________________________________________________
Xxxxxx X. Xxxx
Assistant Secretary
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.
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