EX-99.(H3) 4 f93053exv99wxh3y.txt AMENDMENT NO. 1 TO FUND AGREEMENT AMENDMENT NUMBER 1 TO PRICING, BOOKKEEPING AND FUND ADMINISTRATION AGREEMENT This Amendment Number 1 to the Pricing, Bookkeeping and Fund Administration Agreement is entered into this 1st day of November, 2003 between each investment company listed on Appendix I hereto (as the same may from time to time be amended to add one or more additional investment companies advised by an affiliate of Columbia Management Group, Inc. ("CMG") or to delete one or more of such investment companies acting severally on its own behalf and not jointly with any such other investment companies (each of such investment companies being hereinafter referred to as the "Fund" and collectively as the "Funds"), and Columbia Management Advisors, Inc., successor by merger to Colonial Management Associates, Inc., an Oregon corporation ("CMA"). Each Fund may have multiple classes of shares. BACKGROUND 1. On July 1, 2002, Colonial Management Associates, Inc. ("Colonial") and the Funds entered into a Pricing, Bookkeeping and Fund Administration Agreement (the "Agreement"). 2. On April 1, 2003 Colonial was merged into Columbia Management Advisors, Inc. ("CMA") at which time CMA assumed all the rights and obligations of Colonial pursuant to the Agreement. 3. CMA and the Funds desire to amend the Agreement by revising the compensation schedule set forth in Appendix II of the Agreement by making payments under this Agreement equal to the amount that State Street charges CMA for fund accounting and financial reporting services provided by State Street relating to the Funds. In consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows: AGREEMENT 1. Appendix II to the Agreement is deleted and in its place shall be inserted the Appendix II as attached hereto to the Amendment. Notwithstanding Appendix II, no fees shall be paid by any of the CMG Funds to CMA for services provided pursuant to this Agreement. 2. The effective date of this Amendment shall be November 1, 2003. 3. In all other respects, the Agreement shall remain in full force and effect. In WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the date first above written. THE FUNDS LISTED ON APPENDIX I JOSEPH R. PALOMBO ------------------------------------ By: Joseph R. Palombo Title: President COLUMBIA MANAGEMENT ADVISORS, INC. KEITH T. BANKS ------------------------------------ By: Keith T. Banks Title: Chief Executive Officer APPENDIX I COLUMBIA FUNDS: EQUITY Columbia Common Stock Fund, Inc. Columbia Growth Fund, Inc. Columbia Mid Cap Growth Fund, Inc. Columbia Small Cap Growth Fund, Inc. Columbia Real Estate Equity Fund, Inc. Columbia International Fund, Inc. Columbia Technology Fund, Inc. Columbia Strategic Investor Fund, Inc. Columbia Balanced Fund, Inc. CMG Small Cap Fund CMG Small Cap Growth Fund CMG Small Cap Value Fund CMG Small/Mid Cap Fund CMG Mid Cap Growth Fund CMG Mid Cap Value Fund CMG Large Cap Growth Fund CMG Large Cap Value Fund CMG Enhanced S&P 500(R) Fund CMG Emerging Markets Equity Fund CMG International Stock Fund CMG Strategic Equity Fund MONEY MARKET Columbia Daily Income Company FIXED INCOME Columbia Fixed Income Company, Inc. Columbia Short Term Bond Fund, Inc. Columbia High Yield Fund, Inc. Columbia Oregon Municipal Bond Fund, Inc. Columbia National Municipal Bond Fund, Inc. CMG High Yield Fund CMG Fixed Income Securities Fund CMG Short Term Bond Fund CMG International Bond Fund CMG Core Plus Bond Fund CMG Mortgage and Asset-Backed Securities Fund CMG Corporate Bond Fund CMG Government Bond Fund APPENDIX II ANNUAL FEE
Type of Fee Annual charge billed and payable monthly ----------- ---------------------------------------- * Fund Accounting $25,000 per fund plus 2 Basis Points Financial Reporting $19,565 per fund Combined Maximum Fee $150,000 per fund Feeders $27,000 per feeder Multi Managed $6,000 per additional manager (for new managers after 8/1/2002) * Fund of Fund $25,000 per fund (custody and accounting)
VALUATION FEE For billing purposes, the monthly quote charge will be billed at cost if contracts are directly with State Street. If contracts are with vendors, CMG will pay directly. Source: Municipal Bonds via Kenny/IDC Corporate, Municipal, Convertible, Government Bonds and Adjustable Rate Preferred Stocks via IDC/Kenny Government, Corporate Bonds via Kenny/IDC Government, Corporate and Convertible Bonds via Foreign Bonds via IDC Options, Futures and Private Placements Listed Equities including International and OTC Equities via Reuters SPECIAL SERVICES Fees for activities of a non-recurring nature such as fund consolidations or reorganizations, extraordinary security shipments and the preparation of special reports will be subject to negotiation. OUT OF POCKET EXPENSES A billing for the recovery of applicable out-of-pocket expenses will be made as of the end of each month. Out-of-pocket expenses include, but are not limited to the following: o Communications costs (telephone, lease lines, etc.) o Postage and insurance o Courier service o Non-recurring legal fees o Third-party internal control review letter o SWIFT charges o 17f-5 review o Record Retention o Printing of shareholder reports and SEC filings