PLACEMENT AGENCY AGREEMENT
COLUMBIA FUNDS MASTER INVESTMENT TRUST
THIS AGREEMENT is made as of September 26, 2005, by and between COLUMBIA
FUNDS MASTER INVESTMENT TRUST, a Delaware statutory trust (the "Trust") on
behalf of each series of the Trust now or hereafter identified on Schedule I
(each, a "Master Portfolio" and collectively, the "Master Portfolios"), and
COLUMBIA MANAGEMENT DISTRIBUTORS, INC., a Massachusetts corporation (the
"Placement Agent"). Absent written notification to the contrary by either the
Trust or the Placement Agent, each new investment portfolio established in the
future shall automatically become a "Master Portfolio" for all purposes
hereunder and shares of beneficial interest established in the future shall
automatically become "Shares" for all purposes hereunder as if set forth on
Schedule I.
WHEREAS, the Trust is registered with the Securities and Exchange
Commission (the "SEC") as an open-end management investment company under the
Investment Company Act of 1940, as amended (the "1940 Act");
WHEREAS, the Trust desires to retain the Placement Agent as the exclusive
Placement Agent of the units of beneficial interest ("Shares") of the Master
Portfolios, and the Placement Agent is willing to render such services; and
WHEREAS, the Placement Agent is registered as a broker-dealer under the
Securities Exchange Act of 1934, as amended (the "1934 Act") and is a member of
the National Association of Securities Dealers, Inc. (the "NASD").
NOW THEREFORE, in consideration of the promises and mutual covenants herein
contained, it is agreed between the parties hereto as follows:
1. SERVICES AS PLACEMENT AGENT.
1.1. The Placement Agent will act as agent for the private placement
of Shares in accordance with any instructions of the Trust's Board of Trustees
and with the Trust's registration statement then in effect under the 1940 Act,
and will transmit promptly any orders properly received by it for the purchase
or redemption of Shares to the Trust or the transfer and dividend disbursing
agent for the Master Trust of which the Master Trust has notified the Placement
Agent in writing, or their designated agents. As used in this Agreement, the
term "registration statement" shall mean any registration statement,
specifically including, among other items, any then-current prospectus together
with any related then-current statement of additional information, filed with
the SEC with respect to Shares, and any amendments and supplements thereto which
at any time shall have been filed.
1.2. The Placement Agent agrees to use appropriate efforts to solicit
orders for the sale of Shares and will undertake such advertising and promotion,
as it believes appropriate in connection with such solicitation. The Placement
Agent agrees to offer and sell Shares at the applicable offering price which is
the net asset value next determined after an order is received. The Trust
understands that the Placement Agent is and may in the future be the Placement
Agent
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of shares of other investment company portfolios including portfolios having
investment objectives similar to those of the Master Portfolios. The Trust
further understands that existing and future investors in the Master Portfolios
may invest in shares of such other portfolios. The Trust agrees that the
Placement Agent's duties to such portfolios shall not be deemed in conflict with
its duties to the Trust under this paragraph 1.2.
1.3. The Placement Agent shall, at its own expense, finance such
activities as it deems reasonable and which are primarily intended to result in
the sale of Shares, including, but not limited to, advertising, compensation of
underwriters, dealers and sales personnel, the printing and mailing of
prospectuses to other than current interestholders, and the printing and mailing
of sales literature. The Placement Agent shall be responsible for reviewing and
providing advice on all sales literature (e.g., advertisements, brochures and
interestholder communications) with respect to each of the Master Portfolios,
and shall file with the NASD or the appropriate regulators all such materials as
are required to be filed under applicable laws and regulations in compliance
with such laws and regulations. In addition, the Placement Agent will provide
sufficient personnel, during normal business hours, reasonably necessary to
respond to telephone questions with respect to the Master Portfolios.
1.4. In connection with all matters relating to this Agreement, the
Placement Agent agrees to comply with all applicable laws, rules and
regulations, including, without limitation, all rules and regulations made or
adopted pursuant to the Securities Act of 1933, as amended (the "1933 Act"), the
1934 Act, the 1940 Act, the regulations of the NASD and all other applicable
federal and state laws, rules and regulations.
1.5. Whenever in their judgment such action is warranted by unusual
market, economic or political conditions, or by other circumstances of any kind,
the Trust's officers may decline to accept any orders for, or make any sales of
Shares until such time as those officers deem it advisable to accept such orders
and to make such sales.
1.6. The Trust shall furnish from time to time, for use in connection
with the sale of Shares, such information with respect to the Master Portfolios
and Shares as the Placement Agent may reasonably request and the Trust warrants
that the statements contained in any such information shall fairly show or
represent what they purport to show or represent. The Trust shall also furnish
the Placement Agent upon request with: (a) audited annual and unaudited
semi-annual statements of the Trust's books and accounts with respect to each
Master Portfolio, and (b) from time to time such additional information
regarding the Master Portfolios' financial condition as the Placement Agent may
reasonably request.
1.7. The Placement Agent shall prepare reports for the Board of
Trustees of the Trust regarding its activities under this Agreement as from time
to time shall be reasonably requested by the Board, including reports regarding
the use of Rule 12b-1 payments received by the Placement Agent, if any.
1.8. The Placement Agent may, at its own cost and expense, appoint or
employ agents to assist in carrying out its obligations under this Agreement,
but no such appointment or
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employment shall relieve the Placement Agent of its responsibilities or
obligations to the Master Trust under this Agreement.
2. REPRESENTATIONS; INDEMNIFICATION.
2.1. The Trust represents to the Placement Agent that all registration
statements filed by the Trust with the SEC under the 1940 Act, with respect to
Shares have been prepared in conformity with the requirements of the 1940 Act
and rules and regulations of the SEC thereunder.
The Trust represents and warrants to the Placement Agent that any
registration statement, when such registration statement becomes effective, will
contain all statements required to be stated therein in conformity with the 1940
Act and the rules and regulations of the SEC; that all statements of fact
contained in any such registration statement will be true and correct when such
registration statement becomes effective; and that no registration statement,
when such registration statement becomes effective, will include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading to a
purchaser of Shares. The Trust authorizes the Placement Agent to use any
prospectus or statement of additional information in the form furnished from
time to time in connection with the sale of Shares and represented by the Trust
as being the then-current form of prospectus or then-current form of statement
of additional information.
2.2. The Trust agrees to indemnify, defend and hold the Placement
Agent, its several officers and directors, and any person who controls the
Placement Agent within the meaning of Section 15 of the 1933 Act free and
harmless from and against any and all claims, demands, liabilities and expenses
(including the cost of investigating or defending such claims, demands or
liabilities and any counsel fees incurred in connection therewith) which the
Placement Agent, its officers and directors, or any such controlling person, may
incur under the 1933 Act or under common law or otherwise, arising out of or
based upon any untrue statement, or alleged untrue statement, of a material fact
contained in any registration statement or arising out of or based upon any
omission, or alleged omission, to state a material fact required to be stated in
any registration statement or necessary to make any statement in such documents
not misleading; provided, however, that the Trust's agreement to indemnify the
Placement Agent, its officers and directors, and any such controlling person
shall not be deemed to cover any claims, demands, liabilities or expenses
arising out of any untrue statement or alleged untrue statement or omission or
alleged omission made in any registration statement or in any financial or other
statements in reliance upon and in conformity with any information furnished to
the Trust by the Placement Agent or any affiliate thereof and used in the
preparation thereof; and further provided that the Trust's agreement to
indemnify the Placement Agent, its officers and directors, and any such
controlling person shall not be deemed to cover any liability to the Trust or
its interestholders to which the Placement Agent, its officers and directors, or
any such controlling person would otherwise be subject by reason of willful
misfeasance, bad faith or gross negligence in the performance of the Placement
Agent's, its officer's or director's, or any such controlling person's duties,
or by reason of the Placement Agent's, its officer's or director's, or any such
controlling person's reckless disregard of its obligations and duties under this
Agreement.
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Notwithstanding the foregoing, this indemnity agreement, to the extent
that it might require indemnity of any person who is an officer or director of
the Placement Agent or any person who controls the Placement Agent and who is
also an officer or Trustee of the Trust, shall not inure to the benefit of such
officer, director or controlling person unless a court of competent jurisdiction
shall determine, or it shall have been determined by controlling precedent, that
such result would not be against public policy as expressed in the 1933 Act or
the 1940 Act.
The Trust's agreement to indemnify the Placement Agent, its officers
and directors, and any such controlling person, as aforesaid, is expressly
conditioned upon the Trust's being notified of any action brought against the
Placement Agent, its officers or directors, or any such controlling person, such
notification to be given in writing and to be transmitted by personal delivery,
first class mail, overnight courier, facsimile or other electronic means to the
address or facsimile number contained in paragraph 9 of this Agreement, or to
such other addresses or facsimile numbers as the parties hereto may specify from
time to time in writing and such notification to be sent to the Trust within a
reasonable period of time after the summons or other first legal process shall
have been served. The failure to so notify the Trust of any such action shall
not relieve the Trust from any liability which the Trust may have to the person
against whom such action is brought by reason of any such untrue, or allegedly
untrue, statement or omission, or alleged omission, otherwise than on account of
the Trust's indemnity agreement contained in this paragraph 2.2. The Trust will
be entitled to assume the defense of any suit brought to enforce any such claim,
demand or liability, but, in such case, such defense shall be conducted by
counsel of good standing chosen by the Trust and approved by the Placement
Agent, which approval shall not unreasonably be withheld. In the event the Trust
elects to assume the defense of any such suit and retain counsel of good
standing approved by the Placement Agent, the defendant or defendants in such
suit shall bear the fees and expenses of any additional counsel retained by any
of them; but in case the Trust does not elect to assume the defense of any such
suit, or in case the Placement Agent reasonably does not approve of counsel
chosen by the Trust, the Trust will reimburse the Placement Agent, its officers
and directors, or the controlling person or persons named as defendant or
defendants in such suit, for the fees and expenses of any counsel retained by
the Placement Agent or them.
The Trust's indemnification agreement contained in this paragraph 2.2
and the Trust's representations and warranties in this Agreement shall remain
operative and in full force and effect regardless of any investigation made by
or on behalf of the Placement Agent, its officers or directors, or any
controlling person, and shall survive the delivery of any Shares. This agreement
of indemnity will inure exclusively to the Placement Agent's benefit, to the
benefit of its several officers and directors, and their respective estates, and
to the benefit of the controlling persons and their successors. The Trust agrees
promptly to notify the Placement Agent of the commencement of any litigation or
proceedings against the Trust or any of its officers or Trustees in connection
with the issue and sale of any Shares.
2.3. The Placement Agent agrees to indemnify, defend and hold the
Trust, its several officers and Trustees, and any person who controls the Trust
within the meaning of Section 15 of the 1933 Act free and harmless from and
against any and all claims, demands, liabilities and expenses (including the
costs of investigation or defending such claims, demands or liabilities and any
counsel fees incurred in connection therewith) which the Trust, its officers
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or Trustees or any such controlling person, may incur under the 1933 Act or
under common law or otherwise, but only to the extent that such liability or
expense incurred by the Trust, its officers or Trustees, or such controlling
person resulting from such claims or demands, shall arise out of or be based
upon (a) any untrue, or alleged untrue, statement of a material fact contained
in information furnished by the Placement Agent or any affiliate thereof to the
Trust or its counsel and used in the Trust's registration statement, or shall
arise out of or be based upon any omission, or alleged omission, to state a
material fact in connection with such information furnished by the Placement
Agent or any affiliate thereof to the Trust or its counsel required to be stated
in such answers or necessary to make such information not misleading or (b) any
alleged willful misfeasance, bad faith or gross negligence in the performance of
the Placement Agent's obligations and duties under the Agreement or by reason of
its alleged reckless disregard thereof. The Placement Agent's agreement to
indemnify the Trust, its officers and Trustees, and any such controlling person,
as aforesaid, is expressly conditioned upon the Placement Agent's being notified
of any action brought against the Trust, its officers or Trustees, or any such
controlling person, such notification to be given in writing and to be
transmitted by personal delivery, first class mail, overnight courier, facsimile
or other electronic means to the address or facsimile number contained in
paragraph 9 of this Agreement, or to such other addresses or facsimile numbers
as the parties hereto may specify from time to time in writing and such
notification to be sent to the Placement Agent by the person against whom such
action is brought, within a reasonable period of time after the summons or other
first legal process shall have been served. The Placement Agent shall have the
right to control the defense of such action, with counsel of good standing of
its own choosing, approved by the Board of Trustees of the Trust, if such action
is based solely upon such alleged misstatement or omission on the Placement
Agent's part or any affiliate thereof, and in any other event the Trust, its
officers or Trustees or such controlling person shall each have the right to
participate in the defense or preparation of the defense of any such action. The
failure to so notify the Placement Agent of any such action shall not relieve
the Placement Agent or any affiliate thereof from any liability which the
Placement Agent or any affiliate thereof may have to the Trust, its officers or
Trustees, or to such controlling person by reason of any such untrue or alleged
untrue statement, or omission or alleged omission, or other conduct covered by
this indemnity agreement, otherwise than on account of the Placement Agent's
indemnity agreement contained in this paragraph 2.3.
2.4. No Shares shall be offered by either the Placement Agent or the
Trust under any of the provisions of this Agreement and no orders for the
purchase or sale of Shares hereunder shall be accepted by the Trust if and so
long as the effectiveness of the registration statement then in effect or any
necessary amendments thereto shall be suspended under any of the provisions of
the 1940 Act; provided, however, that nothing contained in this paragraph 2.4
shall in any way restrict or have any application to or bearing upon the Trust's
obligation to repurchase Shares from any interestholder in accordance with the
provisions of the Trust's prospectus or Declaration of Trust.
2.5. The Trust agrees to advise the Placement Agent as soon as
reasonably practicable of the issuance by the SEC of any stop order suspending
the effectiveness of the registration statement then in effect or of the
initiation of any proceeding for that purpose.
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3. CONFIDENTIALITY.
The Placement Agent agrees on behalf of itself and its employees to
treat confidentially and as proprietary information of the Trust all records and
other information relative to the Master Portfolios and/or the Trust and its
prior, present or potential interestholders, and not to use such records and
information for any purpose other than performance of its responsibilities and
duties hereunder, except when so requested by the Trust or after prior
notification to and approval in writing by the Trust, which approval shall not
be unreasonably withheld and may not be withheld where the Placement Agent may
be exposed to civil or criminal contempt proceedings for failure to comply, when
requested to divulge such information by duly constituted authorities.
In accordance with Regulation S-P, the Placement Agent and its
affiliates will not disclose any non-public personal information, as defined in
Regulation S-P, received from the Trust or any Master Portfolio regarding any
interestholder; provided, however, that the Placement Agent and its affiliates
may disclose such information to any party as necessary in the ordinary course
of business to carry out the purposes for which such information was disclosed
to the Placement Agent and its affiliates, or as may be permitted by law. The
Placement Agent agrees to use reasonable precautions to protect and prevent the
unintentional disclosure of such non-public personal information.
4. ANTI-MONEY LAUNDERING PROGRAM.
The Placement Agent represents and warrants that it (a) has adopted an
anti-money laundering compliance program ("AML Program") that satisfies the
requirements of all applicable laws and regulations; and (b) will notify the
Trust promptly if an inspection by the appropriate regulatory authorities of its
AML Program identifies any material deficiency, and will promptly remedy any
material deficiency of which it learns.
5. LIMITATIONS OF LIABILITY.
Except as provided in paragraph 2.3, the Placement Agent shall not be
liable for any error of judgment or mistake of law or for any loss suffered by
the Trust or any Master Portfolio in connection with matters to which this
Agreement relates, except a loss resulting from willful misfeasance, bad faith
or gross negligence on its part in the performance of its duties or from
reckless disregard of its obligations and duties under this Agreement.
6. TERM.
This Agreement shall become effective on the date of its execution
and, unless sooner terminated as provided herein, shall continue in effect for a
period of two years from the date written above. This Agreement shall thereafter
continue from year to year, provided such continuance is specifically approved
at least annually by (i) the Trust's Board of Trustees, or (ii) a vote of a
majority (as defined in the 0000 Xxx) of the outstanding voting securities of
the Master Portfolio, provided that in either event the continuance is also
approved by the majority of the Trust's Trustees who are not parties to this
Agreement or interested persons (as defined in the
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1940 Act) of any such party, by vote cast in person at a meeting called for the
purpose of voting on such approval. This Agreement is not assignable and is
terminable with respect to a Master Portfolio, without penalty, on not less than
sixty (60) days' written notice, by the Trust's Board of Trustees, by vote of a
majority (as defined in the 0000 Xxx) of the outstanding voting securities of
such Master Portfolio, or by the Placement Agent. This Agreement will also
terminate automatically in the event of its assignment (as defined in the 1940
Act).
7. RELEASE
The names "Columbia Funds Master Investment Trust" and "Trustees of
Columbia Funds Master Investment Trust" refer respectively to the Trust created
by the Declaration of Trust and the Trustees as Trustees but not individually or
personally. All parties hereto acknowledge and agree that any and all
liabilities of the Trust arising, directly or indirectly, under this Agreement
will be satisfied solely out of the assets of the Trust and that no Trustee,
officer or interestholder shall be personally liable for any such liabilities.
All persons dealing with any Master Portfolio of the Trust must look solely to
the property belonging to such Master Portfolio for the enforcement of any
claims against the Trust.
8. MISCELLANEOUS.
8.1. No provision of this Agreement may be changed, waived, discharged
or terminated orally, but only by an instrument in writing signed by the party
against which an enforcement of the change, waiver, discharge or termination is
sought.
8.2 This Agreement shall be governed by the laws of the State of
Delaware.
9. NOTICES.
Any notices under this Agreement shall be in writing, addressed and
delivered or mailed postage paid to such address as may be designated for the
receipt of such notice. Until further notice, it is agreed that the address of
the Trust shall be Xxx Xxxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx, 00000,
Attention: Secretary, and that of the Placement Agent shall be Xxx Xxxxxxxxx
Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx, 00000, Attention: President.
10. COUNTERPARTS.
10.1 This Agreement may be executed in any manner of counterparts,
each of which shall be deemed an original.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their officers designated below as of the day and year first above
written.
COLUMBIA FUNDS MASTER INVESTMENT TRUST
on behalf of the Master Portfolios
By: /s/ Xxxxxxxxxxx X. Xxxxxx
------------------------------------
Xxxxxxxxxxx X. Xxxxxx
President
COLUMBIA MANAGEMENT DISTRIBUTORS, INC.
By: /s/ Xxxxxx X. Xxxxxx
------------------------------------
Xxxxxx X. Xxxxxx
President, Intermediary Distribution
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SCHEDULE I
COLUMBIA FUNDS MASTER INVESTMENT TRUST
1. Columbia High Income Master Portfolio
2. Columbia Intermediate Core Bond Master Portfolio
3. Columbia International Value Master Portfolio
4. Columbia Large Cap Core Master Portfolio
5. Columbia Xxxxxxx Focused Equities Master Portfolio
6. Columbia Xxxxxxx Growth Master Portfolio
7. Columbia Xxxxxxx International Opportunities Master Portfolio
8. Columbia Xxxxxxx 21st Century Master Portfolio
9. Columbia Multi-Advisor International Equity Master Portfolio
10. Columbia Small Cap Growth Master Portfolio
11. Columbia Small Cap Value Master Portfolio
Approved: October 8, 2002
Last Amended: September 26, 2005
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