Exhibit (k)(2)
ADMINISTRATION AGREEMENT
AGREEMENT dated as of November 1, 2003, between COLUMBIA FLOATING RATE ADVANTAGE
FUND, a Massachusetts business trust (the "Trust") and COLUMBIA MANAGEMENT
ADVISORS, INC., an Oregon corporation (the "Administrator").
In consideration of the promises and covenants herein, the parties agree as
follows:
1. Subject to the general direction and control of the Board of Trustees
of the Trust, the Administrator shall perform such administrative
services as may from time to time be reasonably requested by the Trust,
which shall include without limitation: (a) providing office space,
equipment and clerical personnel necessary for maintaining the
organization of the Trust and for performing the administrative
functions herein set forth; (b) arranging, if desired by the Trust, for
Directors, officers and employees of the Administrator to serve as
Trustees, officers or agents of the Trust if duly elected or appointed
to such positions and subject to their individual consent and to any
limitations imposed by law; (c) preparing and, if applicable, filing
all documents required for compliance by the Trust with applicable laws
and regulations, including registration statements, registration fee
filings, semi-annual and annual reports to shareholders, proxy
statements and tax returns; (d) preparation of agendas and supporting
documents for and minutes of meetings of Trustees, committees of
Trustees and shareholders; (e) coordinating and overseeing the
activities of the Trust's other third-party service providers; and (f)
maintaining books and records of the Trust (exclusive of records
required by Section 31(a) of the 1940 Act). Notwithstanding the
foregoing, the Administrator shall not be deemed to have assumed or
have any responsibility with respect to functions specifically assumed
by any transfer agent or custodian of the Trust.
2. The Administrator shall be free to render similar services to others so
long as its services hereunder are not impaired thereby.
3. The Trust shall pay the Administrator monthly a fee at the annual rate
of 0.20% of the Average Daily Managed Assets of the Trust. "Average
Daily Managed Assets of the Trust" shall mean the average daily value
of the total assets of the Trust less all accrued liabilities of the
Trust (other than the aggregate amount of any outstanding borrowings
constituting financial leverage).
4. This Agreement shall become effective as of the date of its execution,
and may be terminated without penalty by the Board of Trustees of the
Trust or by the Administrator, in each case on sixty days written
notice to the other party.
5. This Agreement may be amended only by a writing signed by both parties.
6. In the absence of willful misfeasance, bad faith or gross negligence on
the part of the Administrator, or reckless disregard of its obligations
and duties hereunder, the Administrator shall not be subject to any
liability to the Trust, to any shareholder of the Trust or to any other
person, firm or organization, for any act or omission in the course of,
or connected with, rendering services hereunder.
COLUMBIA FLOATING RATE ADVANTAGE FUND
By:
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
President
COLUMBIA MANAGEMENT ADVISORS, INC.
By:
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Executive Vice President and
Chief Operating Officer
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 Trust.
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