ADMINISTRATIVE AGREEMENT
BETWEEN
COLUMBIA FUNDS TRUST IX
AND
COLUMBIA MANAGEMENT ADVISORS, INC.
COLUMBIA FUNDS TRUST IX, a Massachusetts business trust registered
under the Securities Act of 1933 ("1933 Act") and the Investment Company Act of
1940 ("1940 Act") (the "Trust"), hereby appoints COLUMBIA MANAGEMENT ADVISORS,
INC., an Oregon corporation ("Administrator"), to furnish certain administrative
services with respect to the Trust and the series of the Trust listed in
Schedule A hereto, as such schedule may be amended from time to time (each such
series hereinafter referred to as "Fund").
The Trust and Administrator hereby agree that:
1. ADMINISTRATIVE SERVICES. Subject to the terms of this
Agreement and the supervision and control of the Trust's Board of Trustees
("Trustees"), Administrator shall provide the following services with respect to
the Trust:
(a) Preparation and maintenance of the Trust's registration statement with
the Securities and Exchange Commission ("SEC");
(b) Preparation and periodic updating of the prospectus and statement of
additional information for the Fund ("Prospectus");
(c) Preparation, filing with appropriate regulatory authorities, and
dissemination of various reports for the Fund, including but not
limited to semiannual reports to shareholders under Section 30(d) of
the 1940 Act, annual and semiannual reports on Form N-SAR, and notices
pursuant to Rule 24f-2;
(d) Arrangement for all meetings of shareholders, including the collection
of all information required for preparation of proxy statements, the
preparation and filing with appropriate regulatory agencies of such
proxy statements, the supervision of solicitation of shareholders and
shareholder nominees in connection therewith, tabulation (or
supervision of the tabulation) of votes, response to all inquiries
regarding such meetings from shareholders, the public and the media,
and preparation and retention of all minutes and all other records
required to be kept in connection with such meetings;
(e) Maintenance and retention of all Trust charter documents and the filing
of all documents required to maintain the Trust's status as a
Massachusetts business trust and as a registered open-end investment
company;
(f) Arrangement and preparation and dissemination of all materials for
meetings of the Board of Trustees and committees thereof and
preparation and retention of all minutes and other records thereof;
(g) Preparation and filing of the Trust's Federal, state, and local income
tax returns and calculation of any tax required to be paid in
connection therewith;
(h) Calculation of all Trust and Fund expenses and arrangement for the
payment thereof;
(i) Calculation of and arrangement for payment of all income, capital gain,
and other distributions to shareholders of each Fund;
(j) Determination, after consultation with the officers of the Trust, of
the jurisdictions in which shares of beneficial interest of each Fund
("Shares") shall be registered or qualified for sale, or may be sold
pursuant to an exemption from such registration or qualification, and
preparation and maintenance of the registration or qualification of the
Shares for sale under the securities laws of each such jurisdiction;
(k) Provision of the services of persons who may be appointed as officers
of the Trust by the Board of Trustees (it is agreed that some person or
persons may be officers of both the Trust and the Administrator, and
that the existence of any such dual interest shall not affect the
validity of this Agreement except as otherwise provided by specific
provision of applicable law);
(l) Preparation and, subject to approval of the Trust's Chief Financial
Officer, dissemination of the Trust's and each Fund's quarterly
financial information to the Board of Trustees and preparation of such
other reports relating to the business and affairs of the Trust and
each Fund as the officers and Board of Trustees may from time to time
reasonably request;
(m) Administration of the Trust's Code of Ethics and periodic reporting to
the Board of Trustees of Trustee and officer compliance therewith;
(n) Provision of internal legal, accounting, compliance, audit, and risk
management services and periodic reporting to the Board of Trustees
with respect to such services;
(o) Negotiation, administration, and oversight of third party services to
the Trust including, but not limited to, custody, tax, transfer agency,
disaster recovery, audit, and legal services;
(p) Negotiation and arrangement for insurance desired or required of the
Trust and administering all claims thereunder;
(q) Response to all inquiries by regulatory agencies, the press, and the
general public concerning the business and affairs of the Trust,
including the oversight of all periodic inspections of the operations
of the Trust and its agents by regulatory authorities and responses to
subpoenas and tax levies;
(r) Handling and resolution of any complaints registered with the Trust by
shareholders, regulatory authorities, and the general public;
(s) Monitoring legal, tax, regulatory, and industry developments related to
the business affairs of the Trust and communicating such developments
to the officers and Board of Trustees as they may reasonably request or
as the Administrator believes appropriate;
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(t) Administration of operating policies of the Trust and recommendation to
the officers and the Board of Trustees of the Trust of modifications to
such policies to facilitate the protection of shareholders or market
competitiveness of the Trust and Fund and to the extent necessary to
comply with new legal or regulatory requirements;
(u) Responding to surveys conducted by third parties and reporting of Fund
performance and other portfolio information; and
(v) Filing of claims, class actions involving portfolio securities, and
handling administrative matters in connection with the litigation or
settlement of such claims.
2. USE OF AFFILIATED COMPANIES AND SUBCONTRACTORS. In connection
with the services to be provided by Administrator under this Agreement,
Administrator may, to the extent it deems appropriate, and subject to compliance
with the requirements of applicable laws and regulations and upon receipt of
approval of the Trustees, make use of (i) its affiliated companies and their
directors, trustees, officers, and employees and (ii) subcontractors selected by
Administrator, provided that Administrator shall supervise and remain fully
responsible for the services of all such third parties in accordance with and to
the extent provided by this Agreement. All costs and expenses associated with
services provided by any such third parties shall be borne by Administrator or
such parties.
3. INSTRUCTIONS, OPINIONS OF COUNSEL, AND SIGNATURES. At any time
Administrator may apply to a duly authorized agent of Trust for instructions
regarding the Trust, and may consult counsel for the Trust or its own counsel,
in respect of any matter arising in connection with this Agreement, and it shall
not be liable for any action taken or omitted by it in good faith in accordance
with such instructions or with the advice or opinion of such counsel.
Administrator shall be protected in acting upon any such instruction, advice, or
opinion and upon any other paper or document delivered by the Trust or such
counsel believed by Administrator to be genuine and to have been signed by the
proper person or persons and shall not be held to have notice of any change of
authority of any officer or agent of the Trust, until receipt of written notice
thereof from the Trust.
4. EXPENSES BORNE BY TRUST. Except to the extent expressly
assumed by Administrator herein or under a separate agreement between the Trust
and Administrator and except to the extent required by law to be paid by
Administrator, the Trust shall pay all costs and expenses incidental to its
organization, operations and business. Without limitation, such costs and
expenses shall include but not be limited to:
(a) All charges of depositories, custodians and other agencies for the
safekeeping and servicing of its cash, securities, and other property;
(b) All charges for equipment or services used for obtaining price
quotations or for communication between Administrator or the Trust and
the custodian, transfer agent or any other agent selected by the Trust;
(c) All charges for investment advisory, portfolio management, and
accounting services provided to the Trust by the Administrator, or any
other provider of such services;
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(d) All charges for services of the Trust's independent auditors and for
services to the Trust by legal counsel;
(e) All compensation of Trustees, other than those affiliated with
Administrator, all expenses incurred in connection with their services
to the Trust, and all expenses of meetings of the Trustees or
committees thereof;
(f) All expenses incidental to holding meetings of shareholders, including
printing and of supplying each record-date shareholder with notice and
proxy solicitation material, and all other proxy solicitation expenses;
(g) All expenses of printing of annual or more frequent revisions of the
Trust's prospectus(es) and of supplying each then-existing shareholder
with a copy of a revised prospectus;
(h) All expenses related to preparing and transmitting certificates
representing the Trust's shares;
(i) All expenses of bond and insurance coverage required by law or deemed
advisable by the Board of Trustees;
(j) All brokers' commissions and other normal charges incident to the
purchase, sale, or lending of Fund securities;
(k) All taxes and governmental fees payable to Federal, state or other
governmental agencies, domestic or foreign, including all stamp or
other transfer taxes;
(l) All expenses of registering and maintaining the registration of the
Trust under the 1940 Act and, to the extent no exemption is available,
expenses of registering the Trust's shares under the 1933 Act, of
qualifying and maintaining qualification of the Trust and of the
Trust's shares for sale under securities laws of various states or
other jurisdictions and of registration and qualification of the Trust
under all other laws applicable to the Trust or its business
activities;
(m) All interest on indebtedness, if any, incurred by the Trust or a Fund;
and
(n) All fees, dues and other expenses incurred by the Trust in connection
with membership of the Trust in any trade association or other
investment company organization.
5. ALLOCATION OF EXPENSES BORNE BY TRUST. Any expenses borne by
the Trust that are attributable solely to the organization, operation or
business of a Fund shall be paid solely out of Fund assets. Any expense borne by
the Trust which is not solely attributable to a Fund, nor solely to any other
series of shares of the Trust, shall be apportioned in such manner as
Administrator determines is fair and appropriate, or as otherwise specified by
the Board of Trustees.
6. EXPENSES BORNE BY ADMINISTRATOR. Administrator at its own
expense shall furnish all executive and other personnel, office space, and
office facilities required to render the services set forth in this Agreement.
However, Administrator shall not be required to pay or provide any credit for
services provided by the Trust's custodian or other agents without additional
cost to the Trust.
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In the event that Administrator pays or assumes any expenses of the
Trust or a Fund not required to be paid or assumed by Administrator under this
Agreement, Administrator shall not be obligated hereby to pay or assume the same
or similar expense in the future; provided that nothing contained herein shall
be deemed to relieve Administrator of any obligation to the Trust or a Fund
under any separate agreement or arrangement between the parties.
7. ADMINISTRATION FEE. For the services rendered, facilities
provided, and charges assumed and paid by Administrator hereunder, the Trust
shall pay to Administrator out of the assets of each Fund fees at the annual
rate for such Fund as set forth in Schedule B to this Agreement. For each Fund,
the administrative fee shall accrue on each calendar day, and shall be payable
monthly on the first business day of the next succeeding calendar month. The
daily fee accrual shall be computed by multiplying the fraction of one divided
by the number of days in the calendar year by the applicable annual rate of fee,
and multiplying this product by the net assets of the Fund, determined in the
manner established by the Board of Trustees, as of the close of business on the
last preceding business day on which the Fund's net asset value was determined.
8. STATE EXPENSE LIMITATION. If for any fiscal year of a Fund,
its aggregate operating expenses ("Aggregate Operating Expenses") exceed the
applicable percentage expense limit imposed under the securities law and
regulations of any state in which Shares of the Fund are qualified for sale (the
"State Expense Limit"), the Administrator shall pay such Fund the amount of such
excess. For purposes of this State Expense Limit, Aggregate Operating Expenses
shall (a) include (i) any fees or expense reimbursements payable to
Administrator pursuant to this Agreement and (ii) to the extent the Fund invests
all or a portion of its assets in another investment company registered under
the 1940 Act, the pro rata portion of that company's operating expenses
allocated to the Fund, and (iii) any compensation payable to Administrator
pursuant to any separate agreement relating to the Fund's investment operations
and portfolio management, but (b) exclude any interest, taxes, brokerage
commissions, and other normal charges incident to the purchase, sale or loan of
securities, commodity interests or other investments held by the Fund,
litigation and indemnification expense, and other extraordinary expenses not
incurred in the ordinary course of business. Except as otherwise agreed to by
the parties or unless otherwise required by the law or regulation of any state,
any reimbursement by Administrator to a Fund under this section shall not exceed
the administrative fee payable to Administrator by the Fund under this
Agreement.
Any payment to a Fund by Administrator hereunder shall be made monthly,
by annualizing the Aggregate Operating Expenses for each month as of the last
day of the month. An adjustment for payments made during any fiscal year of the
Fund shall be made on or before the last day of the first month following such
fiscal year of the Fund if the Annual Operating Expenses for such fiscal year
(i) do not exceed the State Expense Limitation or (ii) for such fiscal year
there is no applicable State Expense Limit.
9. NON-EXCLUSIVITY. The services of Administrator to the Trust
hereunder are not to be deemed exclusive and Administrator shall be free to
render similar services to others.
10. STANDARD OF CARE. Neither Administrator, nor any of its
directors, officers or stockholders, agents or employees shall be liable to the
Trust, any Fund, or its shareholders for any action taken or thing done by it or
its subcontractors or agents on behalf of the Trust or the Fund in
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carrying out the terms and provisions of this Agreement if done in good faith
and without negligence or misconduct on the part of Administrator, its
subcontractors, or agents.
11. INDEMNIFICATION. The Trust shall indemnify and hold
Administrator and its controlling persons, if any, harmless from any and all
claims, actions, suits, losses, costs, damages, and expenses, including
reasonable expenses for counsel, incurred by it in connection with its
acceptance of this Agreement, in connection with any action or omission by it or
its agents or subcontractors in the performance of its duties hereunder to the
Trust, or as a result of acting upon any instruction believed by it to have been
executed by a duly authorized agent of the Trust or as a result of acting upon
information provided by the Trust in form and under policies agreed to by
Administrator and the Trust, provided that: (i) to the extent such claims,
actions, suits, losses, costs, damages, or expenses relate solely to a
particular Fund or group of Funds, such indemnification shall be only out of the
assets of that Fund or group of Funds; (ii) this indemnification shall not apply
to actions or omissions constituting negligence or misconduct of Administrator
or its agents or subcontractors, including but not limited to willful
misfeasance, bad faith, or gross negligence in the performance of their duties,
or reckless disregard of their obligations and duties under this Agreement; and
(iii) Administrator shall give the Trust prompt notice and reasonable
opportunity to defend against any such claim or action in its own name or in the
name of Administrator.
Administrator shall indemnify and hold harmless the Trust from and
against any and all claims, demands, expenses and liabilities which such Trust
may sustain or incur arising out of, or incurred because of, the negligence or
misconduct of Administrator or its agents or subcontractors, provided that such
Trust shall give Administrator prompt notice and reasonable opportunity to
defend against any such claim or action in its own name or in the name of such
Trust.
12. EFFECTIVE DATE, AMENDMENT, AND TERMINATION. This Agreement
shall become effective as to any Fund as of the effective date for that Fund
specified in Schedule A hereto and, unless terminated as hereinafter provided,
shall remain in effect with respect to such Fund thereafter from year to year so
long as such continuance is specifically approved with respect to that Fund at
least annually by a majority of the Trustees who are not interested persons of
Trust or Administrator.
As to any Trust or Fund of that Trust, this Agreement may be modified
or amended from time to time by mutual agreement between the Administrator and
the Trust and may be terminated by Administrator or Trust by at least sixty (60)
days' written notice given by the terminating party to the other party. Upon
termination as to any Fund, the Trust shall pay to Administrator such
compensation as may be due under this Agreement as of the date of such
termination and shall reimburse Administrator for its costs, expenses, and
disbursements payable under this Agreement to such date. In the event that, in
connection with a termination, a successor to any of the duties or
responsibilities of Administrator hereunder is designated by the Trust by
written notice to Administrator, upon such termination Administrator shall
promptly, and at the expense of the Trust or Fund with respect to which this
Agreement is terminated, transfer to such successor all relevant books, records,
and data established or maintained by Administrator under this Agreement and
shall cooperate in the transfer of such duties and responsibilities, including
provision, at the expense of such Fund, for assistance from Administrator
personnel in the establishment of books, records, and other data by such
successor.
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13. ASSIGNMENT. Any interest of Administrator under this Agreement
shall not be assigned either voluntarily or involuntarily, by operation of law
or otherwise, without the prior written consent of Trust.
14. BOOKS AND RECORDS. Administrator shall maintain, or oversee
the maintenance by such other persons as may from time to time be approved by
the Board of Trustees to maintain, the books, documents, records, and data
required to be kept by the Trust under the 1940 Act, the laws of the
Commonwealth of Massachusetts or such other authorities having jurisdiction over
the Trust or the Fund or as may otherwise be required for the proper operation
of the business and affairs of the Trust or the Fund (other than those required
to be maintained by any investment adviser retained by the Trust on behalf of a
Fund in accordance with Section 15 of the 1940 Act).
Administrator will periodically send to the Trust all books, documents,
records, and data of the Trust and each of its Funds listed in Schedule A that
are no longer needed for current purposes or required to be retained as set
forth herein. Administrator shall have no liability for loss or destruction of
said books, documents, records, or data after they are returned to such Trust.
Administrator agrees that all such books, documents, records, and data
which it maintains shall be maintained in accordance with Rule 31a-3 of the 1940
Act and that any such items maintained by it shall be the property of the Trust.
Administrator further agrees to surrender promptly to the Trust any such items
it maintains upon request, provided that the Administrator shall be permitted to
retain a copy of all such items. Administrator agrees to preserve all such items
maintained under Rule 31a-1 for the period prescribed under Rule 31a-2 of the
1940 Act.
Trust shall furnish or otherwise make available to Administrator such
copies of the financial statements, proxy statements, reports, and other
information relating to the business and affairs of each Fund of the Trust as
Administrator may, at any time or from time to time, reasonably require in order
to discharge its obligations under this Agreement.
15. NON-LIABILITY OF TRUSTEES AND SHAREHOLDERS. Any obligation of
Trust hereunder shall be binding only upon the assets of Trust (or the
applicable Fund thereof) and shall not be binding upon any Trustee, officer,
employee, agent or shareholder of Trust. Neither the authorization of any action
by the Trustees or shareholders of Trust nor the execution of this Agreement on
behalf of Trust shall impose any liability upon any Trustee or any shareholder.
16. USE OF ADMINISTRATOR'S NAME. The Trust may use its name and
the names of its Funds listed in Schedule A or any other name derived from the
name "Columbia Management Advisors " only for so long as this Agreement or any
extension, renewal, or amendment hereof remains in effect, including any similar
agreement with any organization which shall have succeeded to the business of
Administrator as it relates to the services it has agreed to furnish under this
Agreement. At such time as this Agreement or any extension, renewal or amendment
hereof, or such other similar agreement shall no longer be in effect, Trust will
cease to use any name derived from the name "Columbia Management Advisors " or
otherwise connected with Administrator, or with any organization which shall
have succeeded to Administrator's business herein described.
17. REFERENCES AND HEADINGS. In this Agreement and in any such
amendment, references to this Agreement and all expressions such as "herein,"
"hereof," and "hereunder" shall be
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deemed to refer to this Agreement as amended or affected by any such amendments.
Headings are placed herein for convenience of reference only and shall not be
taken as a part hereof or control or affect the meaning, construction or effect
of this Agreement. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original.
Dated: November 1, 2003
COLUMBIA FUNDS TRUST IX
By: _____________________________
Xxxxxx X. Xxxxxxx
President
Attest:
_________________________
Name:
Title:
COLUMBIA MANAGEMENT ADVISORS, INC.
By: ______________________________
Xxxxxx X. Xxxxxxx
Executive Vice President and
Chief Operating Officer
Attest:
___________________________
Name:
Title:
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COLUMBIA FUNDS TRUST IX
ADMINISTRATIVE AGREEMENT
SCHEDULE A
The Funds of the Trust currently subject to this Agreement are as
follows:
Effective Date
--------------
Columbia High Yield Municipal Fund July 1, 1996
Columbia Managed Municipals Fund July 1, 1996
Dated: November 1, 2003
COLUMBIA FUNDS TRUST IX
By: _____________________________
Xxxxxx X. Xxxxxxx
President
Attest:
___________________________
Name:
Title:
COLUMBIA MANAGEMENT ADVISORS, INC.
By: ______________________________
Xxxxxx X. Xxxxxxx
Executive Vice President and
Chief Operating Officer
Attest:
____________________________
Name:
Title:
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COLUMBIA FUNDS TRUST IX
ADMINISTRATIVE AGREEMENT
SCHEDULE B
Compensation pursuant to Section 7 of this Agreement shall be
calculated with respect to each Fund in accordance with the following schedule
applicable to average daily net assets of the Fund:
Fund Administrative Fee Schedule
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Columbia High Yield Municipal Fund 0.150% of first $100 million,
0.125% of next $100 million,
0.100% thereafter
Columbia Managed Municipals Fund 0.150% of first $100 million,
0.125% of next $100 million,
0.100% of next $800 million,
0.075% thereafter
Dated: November 1, 2003
COLUMBIA FUNDS TRUST IX
By: ______________________________
Xxxxxx X. Xxxxxxx
President
Attest:
_____________________________
Name:
Title:
COLUMBIA MANAGEMENT ADVISORS, INC.
By: ______________________________
Xxxxxx X. Xxxxxxx
Executive Vice President and
Chief Operating Officer
Attest:
_______________________________
Name:
Title:
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