Exhibit (h)(7)
ADMINISTRATION AGREEMENT
AGREEMENT dated as of November 25, 2002, between LIBERTY FUNDS TRUST III, a
Massachusetts business trust (the "Trust"), with respect to Liberty Intermediate
Government Income Fund (the "Fund"), and COLONIAL MANAGEMENT ASSOCIATES, INC., a
Massachusetts 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 Fund 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 Fund 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 Fund 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
Fund's other third-party service providers; and (f) maintaining books and
records of the Fund (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 Fund.
2. The Administrator shall be free to render similar services to others so long
as its services hereunder are not impaired thereby.
3. The Fund shall pay the Administrator monthly a fee at the annual rate of
0.0668% of the average daily net assets of the Fund.
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 or 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:
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J. Xxxxx Xxxxxxxxxxx
Treasurer
COLONIAL MANAGEMENT ASSOCIATES, INC.
By:
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Xxxx X. Xxxxxxxxxx
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.
