DISTRIBUTION AGREEMENT
THIS AGREEMENT is made and entered into as of this 31st day of March
2009, by and between Century Capital Management Trust, a Massachusetts business
trust (the "Client") and Foreside Fund Services, LLC, a Delaware limited
liability company (the "Distributor").
WHEREAS, the Client is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end management investment company,
and is authorized to issue shares of beneficial interest ("Shares") in separate
series, with each such series representing interests in a separate portfolio of
securities and other assets;
WHEREAS, the Client desires to retain the Distributor as principal
underwriter in connection with the offering and sale of the Shares of each
series listed on Exhibit A hereto (as amended from time to time) (each a "Fund"
and collectively the "Funds");
WHEREAS, the Distributor is registered as a broker-dealer under the
Securities Exchange Act of 1934, as amended (the "1934 Act"), and is a member of
the Financial Industry Regulatory Authority ("FINRA");
WHEREAS, this Agreement has been approved by a vote of the Client's
board of trustees (the "Board") and its disinterested directors in conformity
with Section 15(c) of the 1940 Act; and
WHEREAS, the Distributor is willing to act as principal underwriter for
the Client on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto, intending to be legally bound,
do hereby agree as follows:
1. APPOINTMENT OF DISTRIBUTOR. The Client hereby appoints the Distributor
as its exclusive agent for the sale and distribution of Shares of the Funds, on
the terms and conditions set forth in this Agreement, and the Distributor hereby
accepts such exclusive appointment and agrees to perform the services and duties
set forth in this Agreement.
2. SERVICES AND DUTIES OF THE DISTRIBUTOR.
A. The Distributor agrees to act as agent of the Client for
distribution of the Shares of the Funds, upon the terms and at the current
offering price (plus sales charge, if any) described in the Prospectus. As used
in this Agreement, the term "Prospectus" shall mean each current prospectus,
including the statement of additional information, as amended or supplemented,
relating to any of the Funds and included in the currently effective
registration statement(s) or post-effective amendment(s) thereto (the
"Registration Statement") of the Client under the Securities Act of 1933 (the
"1933 Act") and the 0000 Xxx.
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B. During the continuous public offering of Shares of the Funds, the
Distributor will hold itself available to receive orders, satisfactory to the
Distributor, for the purchase of Shares of the Funds and will promptly forward
all orders to the Client, or its designated agent. Such purchase orders shall be
deemed effective at the time and in the manner set forth in the Prospectus. The
Client or its designated agent will confirm orders and subscriptions upon
receipt, will make appropriate book entries and, upon receipt of payment
therefor, will issue the appropriate number of Shares in uncertificated form.
C. The Distributor shall maintain membership with the NSCC and any
other similar successor organization to sponsor a participant number for the
Funds so as to enable the Shares to be traded through FundSERV. The Distributor
shall not be responsible for any operational matters associated with FundSERV or
Networking transactions. The Client acknowledges that Foreside, as the
Distributor of the Client, will be authorized to offer and redeem shares on
behalf of the Client and that the Client will honor any instruction that
Foreside enters into Fund/SERV on its behalf.
D. The Distributor acknowledges and agrees that it is not authorized to
provide any information or make any representations regarding the Funds other
than as contained in the Prospectus and any sales literature and advertising
materials specifically approved by the Client.
E. The Distributor agrees to review all proposed advertising materials
and sales literature for compliance with applicable laws and regulations, and
shall file with appropriate regulators those advertising materials and sales
literature it believes are in compliance with such laws and regulations. The
Distributor agrees to furnish to the Client any comments provided by regulators
with respect to such materials.
F. The Client agrees to redeem or repurchase Shares tendered by
shareholders of the Funds in accordance with the Client's obligations in the
Prospectus and the Registration Statement. The Client reserves the right to
suspend such repurchase right upon written notice to the Distributor.
G. The Distributor may, in its discretion, and shall, at the request of
the Client, enter into agreements with such qualified broker-dealers and other
financial intermediaries as it may select, in order that such broker-dealers and
other intermediaries also may sell Shares of the Funds. The form of any dealer
agreement shall be approved by the Client. The Distributor shall not be
obligated to make any payments to any broker-dealers, other financial
intermediaries or other third parties, unless (i) Foreside has received a
corresponding payment from the applicable Fund's plan of distribution adopted
pursuant to Rule 12b-1 under the 1940 Act ("Plan") and (ii) such corresponding
payment has been approved by the Client's Board. The Distributor shall include
in the forms of agreement with selling broker-dealers a provision for the
forfeiture by them of any sales charge or discount with respect to Shares sold
by them and redeemed, repurchased or tendered for redemption within seven
business days after the date of confirmation of such purchases.
H. The Distributor shall devote its best efforts to effect sales of
Shares of the Funds but shall not be obligated to sell any certain number of
Shares.
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I. The Distributor shall prepare reports for the Board regarding its
activities under this Agreement as from time to time shall be reasonably
requested by the Board, including reports regarding the use of 12b-1 payments
received by the Distributor, if any.
J. The Distributor may enter into agreements ("Subcontracts") with
qualified third parties to carry out some or all of the Distributor's
obligations under this Agreement, with the prior written consent of the Client,
such consent not to be unreasonably withheld; provided that execution of a
Subcontract shall not relieve the Distributor of any of its responsibilities
hereunder.
K. The services furnished by the Distributor hereunder are not to be
deemed exclusive and the Distributor shall be free to furnish similar services
to others so long as its services under this Agreement are not impaired thereby.
L. Notwithstanding anything herein to the contrary, the Distributor
shall not be required to register as a broker or dealer in any specific
jurisdiction or to maintain its registration in any jurisdiction in which it is
now registered.
3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE CLIENT.
A. The Client hereby represents and warrants to the Distributor,
which representations and warranties shall be deemed to be
continuing throughout the term of this Agreement, that:
(i) it is duly organized and in good standing under the laws of
its jurisdiction of incorporation/organization and is
registered as an open-end management investment company under
the 1940 Act;
(ii) this Agreement has been duly authorized, executed and
delivered by the Client and, when executed and delivered, will
constitute a valid and legally binding obligation of the
Client, enforceable in accordance with its terms, subject to
bankruptcy, insolvency, reorganization, moratorium and other
laws of general application affecting the rights and remedies
of creditors and secured parties;
(iii) it is conducting its business in compliance in all material
respects with all applicable laws and regulations, both state
and federal, and has obtained all regulatory approvals
necessary to carry on its business as now conducted; there is
no statute, rule, regulation, order or judgment binding on it
and no provision of its charter, bylaws/operating agreement or
any contract binding it or affecting its property which would
prohibit its execution or performance of this Agreement;
(iv) the Shares are validly authorized and, when issued in
accordance with the description in the Prospectus, will be
fully paid and nonassessable;
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(v) the Registration Statement and Prospectus included therein
have been prepared in conformity with the requirements of the
1933 Act and the 1940 Act and the rules and regulations
thereunder; and
(vi) the Registration Statement and Prospectus and any advertising
materials and sales literature prepared by the Client or its
agent do not and shall not contain any untrue statement of
material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein
not misleading, and that all statements or information
furnished to the Distributor pursuant to this Agreement shall
be true and correct in all material respects.
B. The Client shall take, or cause to be taken, all necessary
action to register the Shares under the federal and all applicable state
securities laws and to maintain an effective Registration Statement for such
Shares in order to permit the sale of Shares as herein contemplated. The Client
authorizes the Distributor to use the Prospectus, in the form furnished to the
Distributor from time to time, in connection with the sale of Shares.
C. The Client agrees to advise the Distributor promptly in
writing:
(i) of any material correspondence or other communication by the
Securities and Exchange Commission ("SEC") or its staff
relating to the Funds, including requests by the SEC for
amendments to the Registration Statement or Prospectus;
(ii) in the event of the issuance by the SEC of any stop-order
suspending the effectiveness of the Registration Statement
then in effect or the initiation of any proceeding for that
purpose;
(iii) of the happening of any event which makes untrue any statement
of a material fact made in the Prospectus or which requires
the making of a change in such Prospectus in order to make the
statements therein not misleading;
(iv) of all actions taken by the SEC with respect to any amendments
to any Registration Statement or Prospectus which may from
time to time be filed with the SEC;
(v) in the event that it determines to suspend the sale of Shares
at any time in response to conditions in the securities
markets or otherwise or to suspend the redemption of Shares of
any Fund at any time as permitted by the 1940 Act or the rules
of the SEC; and
(vi) of the commencement of any litigation or proceedings against
the Client or any of its officers or directors in connection
with the issue and sale of any of the Shares.
D. The Client shall file such reports and other documents as may
be required under applicable federal and state laws and regulations, including
state blue sky laws, and shall notify the Distributor in writing of the states
in which the Shares may be sold and of any changes to such information.
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E. The Client agrees to file from time to time such amendments to
its Registration Statement and Prospectus as may be necessary in order that its
Registration Statement and Prospectus will not contain any untrue statement of
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading.
F. The Client shall fully cooperate in the efforts of the
Distributor to sell and arrange for the sale of Shares. In addition, the Client
shall keep the Distributor fully informed of its affairs and shall provide to
the Distributor from time to time copies of all information, financial
statements, and other papers that the Distributor may reasonably request for use
in connection with the distribution of Shares, including, without limitation,
certified copies of any financial statements prepared for the Client by its
independent public accountants and such reasonable number of copies of the most
current Prospectus, statement of additional information and annual and interim
reports to shareholders as the Distributor may request. The Client shall forward
a copy of any SEC filings, including the Registration Statement, to the
Distributor within one business day of any such filings. The Client represents
that it will not use or authorize the use of any advertising or sales material
unless and until such materials have been approved and authorized for use by the
Distributor.
G. The Client shall provide, and cause each other agent or
service provider to the Client, including the Client's transfer agent and
investment adviser, to provide, to Distributor in a timely and accurate manner
all such information (and in such reasonable medium) that the Distributor may
reasonably request that may be necessary for the Distributor to perform its
duties under this Agreement.
H. The Client shall not file any amendment to the Registration
Statement or Prospectus that amends any provision therein which pertains to
Distributor, the distribution of the Shares or the applicable sales loads or
public offering price without giving Distributor reasonable advance notice
thereof; provided, however, that nothing contained in this Agreement shall in
any way limit the Client's right to file at any time such amendments to the
Registration Statement or Prospectus, of whatever character, as the Client may
deem advisable, such right being in all respects absolute and unconditional.
I. The Client has adopted policies and procedures pursuant to
Title V of the Xxxxx-Xxxxx-Xxxxxx Act, as may be modified from time to time. In
this regard, the Client (and relevant agents) shall have in place and maintain
physical, electronic and procedural safeguards reasonably designed to protect
the security, confidentiality and integrity of, and to prevent the unauthorized
access to or use of, records and information relating to the Client and the
owners of the Shares.
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4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE DISTRIBUTOR.
A. The Distributor hereby represents and warrants to the Client,
which representations and warranties shall be deemed to be continuing throughout
the term of this Agreement, that:
(i) it is duly organized and existing under the laws of the
jurisdiction of its organization, with full power to carry on
its business as now conducted, to enter into this Agreement
and to perform its obligations hereunder;
(ii) this Agreement has been duly authorized, executed and
delivered by the Distributor and, when executed and delivered,
will constitute a valid and legally binding obligation of the
Distributor, enforceable in accordance with its terms, subject
to bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting the rights and
remedies of creditors and secured parties;
(iii) it is conducting its business in compliance in all material
respects with all applicable laws and regulations, both state
and federal, and has obtained all regulatory approvals
necessary to carry on its business as now conducted; there is
no statute, rule, regulation, order or judgment binding on it
and no provision of its charter, operating agreement or any
contract binding it or affecting its property which would
prohibit its execution or performance of this Agreement; and
(iv) it is registered as a broker-dealer under the 1934 Act and is
a member in good standing of FINRA.
B. In connection with all matters relating to this Agreement, the
Distributor will comply with the applicable requirements of the 1933 Act, the
1934 Act, the 1940 Act, the regulations of FINRA and all other applicable
federal or state laws and regulations.
C. The Distributor shall promptly notify the Client of the
commencement of any litigation or proceedings against the Distributor or any of
its managers, officers or directors in connection with the issue and sale of any
of the Shares.
5. COMPENSATION. As compensation for the services performed and the
expenses assumed by Distributor under this Agreement including, but not limited
to, any commissions paid for sales of Shares, Distributor shall be entitled to
the fees and expenses set forth in Exhibit B hereto (as amended from time to
time).
6. EXPENSES.
A. The Client shall bear all costs and expenses in connection with
registration of the Shares with the SEC and the applicable states, as well as
all costs and expenses in connection with the offering of the Shares and
communications with shareholders of its Funds, including but not limited to (i)
fees and disbursements of its counsel and independent public accountants; (ii)
costs and expenses of the preparation, filing, printing and mailing of
Registration Statements and
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Prospectuses and amendments thereto, as well as related advertising and sales
literature, (iii) costs and expenses of the preparation, printing and mailing of
annual and interim reports, proxy materials and other communications to
shareholders of the Funds; and (iv) fees required in connection with the offer
and sale of Shares in such jurisdictions as shall be selected by the Client
pursuant to Section 3(D) hereof.
B. The Distributor shall bear the expenses of registration or
qualification of the Distributor as a dealer or broker under federal or state
laws and the expenses of continuing such registration or qualification. The
Distributor does not assume responsibility for any expenses not expressly
assumed hereunder.
7. INDEMNIFICATION.
A. The Client shall indemnify, defend and hold the Distributor, its
affiliates and each of their respective members, managers, directors, officers,
employees, representatives and any person who controls or previously controlled
the Distributor within the meaning of Section 15 of the 1933 Act (collectively,
the "Distributor Indemnitees"), free and harmless from and against any and all
losses, claims, demands, liabilities, damages and expenses (including the costs
of investigating or defending any alleged losses, claims, demands, liabilities,
damages or expenses and any reasonable counsel fees incurred in connection
therewith) (collectively, "Losses") that any Distributor Indemnitee may incur
under the 1933 Act, the 1934 Act, the 1940 Act any other statute (including Blue
Sky laws) or any rule or regulation thereunder, or under common law or
otherwise, arising out of or relating to (i) the Distributor serving as
distributor of the Funds pursuant to this Agreement; (ii) the Client's breach of
any of its obligations, representations, warranties or covenants contained in
this Agreement; (iii) the Client's failure to comply with any applicable
securities laws or regulations; or (iv) any claim that the Registration
Statement, Prospectus, shareholder reports, sales literature and advertising
materials or other information filed or made public by the Client (as from time
to time amended) include or included an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading under the 1933 Act, or any
other statute or the common law any violation of any rule of FINRA or of the SEC
or any other jurisdiction wherein Shares of the Funds are sold, provided,
however, that the Client's obligation to indemnify any of the Distributor
Indemnitees shall not be deemed to cover any Losses arising out of any untrue
statement or alleged untrue statement or omission or alleged omission made in
the Registration Statement, Prospectus, annual or interim report, or any such
advertising materials or sales literature in reliance upon and in conformity
with information relating to the Distributor and furnished to the Client or its
counsel by the Distributor in writing and acknowledging the purpose of its use.
In no event shall anything contained herein be so construed as to protect the
Distributor against any liability to the Client or its shareholders to which the
Distributor would otherwise be subject by reason of willful misfeasance, bad
faith, or gross negligence in the performance of its duties under this Agreement
or by reason of its reckless disregard of its obligations under this Agreement.
The Client's agreement to indemnify the Distributor Indemnitees with
respect to any action is expressly conditioned upon the Client being notified of
such action or claim of loss brought against any Distributor Indemnitee, within
a reasonable time after the summons or other
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first legal process giving information of the nature of the claim shall have
been served upon such Distributor Indemnitee, unless the failure to give notice
does not prejudice the Client. Such notification shall be given by letter or by
telegram addressed to the Client's President, but the failure so to notify the
Client of any such action shall not relieve the Client from any liability which
the Client may have to the person against whom such action is brought by reason
of any such untrue, or alleged untrue, statement or omission, or alleged
omission, otherwise than on account of the Client's indemnity agreement
contained in this Section 7(A).
B. The Client shall be entitled to participate at its own expense in
the defense or, if it so elects, to assume the defense of any suit brought to
enforce any such Losses, but if the Client elects to assume the defense, such
defense shall be conducted by counsel chosen by the Client and approved by the
Distributor, which approval shall not be unreasonably withheld. In the event the
Client elects to assume the defense of any such suit and retain such counsel,
the Distributor Indemnitee(s) in such suit shall bear the fees and expenses of
any additional counsel retained by them. If the Client does not elect to assume
the defense of any such suit, or in case the Distributor does not, in the
exercise of reasonable judgment, approve of counsel chosen by the Client or, if
under prevailing law or legal codes of ethics, the same counsel cannot
effectively represent the interests of both the Client and the Distributor
Indemnitee(s), the Client will reimburse the Distributor Indemnitee(s) in such
suit, for the fees and expenses of any counsel retained by Distributor and them.
The Client's indemnification agreement contained in Sections 7(A) and 7(B) shall
remain operative and in full force and effect regardless of any investigation
made by or on behalf of the Distributor Indemnitee(s), and shall survive the
delivery of any Shares and the termination of this Agreement. This agreement of
indemnity will inure exclusively to the Distributor's benefit, to the benefit of
each Distributor Indemnitee.
C. The Client shall advance attorney's fees and other expenses incurred
by a Distributor Indemnitee in defending any claim, demand, action or suit which
is the subject of a claim for indemnification pursuant to this Section 7 to the
maximum extent permissible under applicable law.
D. The Distributor shall indemnify, defend and hold the Client, its
affiliates, and each of their respective directors, officers, employees,
representatives, and any person who controls or previously controlled the Client
within the meaning of Section 15 of the 1933 Act (collectively, the "Client
Indemnitees"), free and harmless from and against any and all Losses that any
Client Indemnitee may incur under the 1933 Act, the 1934 Act, the 1940 Act, any
other statute (including Blue Sky laws) or any rule or regulation thereunder, or
under common law or otherwise, arising out of or based upon (i) the
Distributor's breach of any of its obligations, representations, warranties or
covenants contained in this Agreement; (ii) the Distributor's failure to comply
with any applicable securities laws or regulations; or (iii) any claim that the
Registration Statement, Prospectus, sales literature and advertising materials
or other information filed or made public by the Client (as from time to time
amended) include or included an untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary in order to
make the statements not misleading, insofar as such statement or omission was
made in reliance upon, and in conformity with, information furnished to the
Client by the Distributor in writing. In no event shall anything contained
herein be so construed as to protect the Client against any liability to the
Distributor to which the Client would otherwise be subject
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by reason of willful misfeasance, bad faith, or gross negligence in the
performance of its duties under this Agreement or by reason of its reckless
disregard of its obligations under this Agreement.
The Distributor's agreement to indemnify the Client Indemnitees is
expressly conditioned upon the Distributor's being notified of any action or
claim of loss brought against a Client Indemnitee, such notification to be given
by letter or telegram addressed to the Distributor's President, within a
reasonable time after the summons or other first legal process giving
information of the nature of the claim shall have been served upon the Client
Indemnitee, unless the failure to give notice does not prejudice the
Distributor. The failure so to notify the Distributor of any such action shall
not relieve the Distributor from any liability which the Distributor may have to
the person against whom such action is brought by reason of any such untrue, or
alleged untrue, statement or omission, otherwise than on account of the
Distributor's indemnity agreement contained in this Section 7(D).
E. The Distributor shall be entitled to participate at its own expense
in the defense or, if it so elects, to assume the defense of any suit brought to
enforce any such Losses, but if the Distributor elects to assume the defense,
such defense shall be conducted by counsel chosen by the Distributor and
approved by the Client Indemnitee, which approval shall not be unreasonably
withheld. In the event the Distributor elects to assume the defense of any such
suit and retain such counsel, the Client Indemnitee(s) in such suit shall bear
the fees and expenses of any additional counsel retained by them. If the
Distributor does not elect to assume the defense of any such suit, or in case
the Client does not, in the exercise of reasonable judgment, approve of counsel
chosen by the Distributor or, if under prevailing law or legal codes of ethics,
the same counsel cannot effectively represent the interests of both the
Distributor and the Client Indemnitee(s), the Distributor will reimburse the
Client Indemnitee(s) in such suit, for the fees and expenses of any counsel
retained by the Client and them. The Distributor's indemnification agreement
contained in Sections 7(D) and (E) shall remain operative and in full force and
effect regardless of any investigation made by or on behalf of the Client
Indemnitee(s), and shall survive the delivery of any Shares and the termination
of this Agreement. This Agreement of indemnity will inure exclusively to the
Client's benefit, to the benefit of each Client Indemnitee.
F. No person shall be obligated to provide indemnification under this
Section 6 if such indemnification would be impermissible under the 1940 Act, the
1933 Act, the 1934 Act or the rules of the FINRA; provided, however, in such
event indemnification shall be provided under this Section 7 to the maximum
extent so permissible.
8. DEALER AGREEMENT INDEMNIFICATION.
A. Distributor acknowledges and agrees that certain large and
significant broker-dealers, such as (without limitation) Xxxxxxx Xxxxx, UBS and
Xxxxxx Xxxxxxx (all such brokers referred to herein as the "Brokers"), require
that Distributor enter into dealer agreements (the "Non-Standard Dealer
Agreements") that contain certain representations, undertakings and
indemnification that are not included in the Standard Dealer Agreement.
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B. To the extent that Distributor is requested or required by the
Client to enter into any Non-Standard Dealer Agreement, the Client shall
indemnify, defend and hold the Distributor Indemnitees free and harmless from
and against any and all Losses that any Distributor Indemnitee may incur arising
out of or relating to (a) Foreside's actions or failures to act pursuant to any
Non-Standard Dealer Agreement; (b) any representations made by Foreside in any
Non-Standard Dealer Agreement to the extent that Foreside is not required to
make such representations in the Standard Dealer Agreement; or (c) any
indemnification provided by Foreside under a Non-Standard Dealer Agreement to
the extent that such indemnification is beyond the indemnification Foreside
provides to intermediaries in the Standard Dealer Agreement. In no event shall
anything contained herein be so construed as to protect the Distributor
Indemnitees against any liability to the Client or its shareholders to which the
Distributor Indemnitees would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence in the performance of Distributor's
obligations or duties under the Non-Standard Dealer Agreement or by reason of
Distributor's reckless disregard of its obligations or duties under the
Non-Standard Dealer Agreement.
9. LIMITATIONS ON DAMAGES. Neither Party shall be liable for any
consequential, special or indirect losses or damages suffered by the other
Party, whether or not the likelihood of such losses or damages was known by the
Party.
10. FORCE MAJEURE. Neither Party shall be liable for losses, delays,
failure, errors, interruption or loss of data occurring directly or indirectly
by reason of circumstances beyond its reasonable control, including, without
limitation, Acts of Nature (including fire, flood, earthquake, storm, hurricane
or other natural disaster); action or inaction of civil or military authority;
acts of foreign enemies; war; terrorism; riot; insurrection; sabotage;
epidemics; labor disputes; civil commotion; or interruption, loss or malfunction
of utilities, transportation, computer or communications capabilities, and the
other Party shall have no right to terminate this Agreement in such
circumstances.
11. DURATION AND TERMINATION.
A. This Agreement shall become effective with respect to each Fund
listed on Exhibit A hereof as of the date hereof and, with respect to each Fund
not in existence on that date, on the date an amendment to Exhibit A to this
Agreement relating to that Fund is executed. Unless sooner terminated as
provided herein, this Agreement shall continue in effect for one year from the
date hereof. Thereafter, if not terminated, this Agreement shall continue
automatically in effect as to each Fund for successive one-year periods,
provided such continuance is specifically approved at least annually by (i) the
Client's Board or (ii) the vote of a majority of the outstanding voting
securities of a Fund, in accordance with Section 15 of the 1940 Act.
B. Notwithstanding the foregoing, this Agreement may be terminated,
without the payment of any penalty, with respect to a particular Fund (i)
through a failure to renew this Agreement at the end of a term or (ii) upon
mutual consent of the parties. Further, this Agreement may be terminated upon no
less than 60 days' written notice, by either the Client through a vote of a
majority of the members of the Board who are not interested persons, as that
term is defined in the 1940 Act, and have no direct or indirect financial
interest in the operation
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of this Agreement or by vote of a majority of the outstanding voting securities
of a Fund, or by the Distributor.
C. This Agreement will automatically terminate in the event of its
assignment.
12. ANTI-MONEY LAUNDERING COMPLIANCE.
A. Each of Distributor and Client acknowledges that it is a financial
institution subject to the USA Patriot Act of 2001 and the Bank Secrecy Act
(collectively, the "AML Acts"), which require, among other things, that
financial institutions adopt compliance programs to guard against money
laundering. Each represents and warrants to the other that it is in compliance
with and will continue to comply with the AML Acts and applicable regulations in
all relevant respects.
B. The Distributor shall include specific contractual provisions
regarding anti-money laundering compliance obligations in agreements entered
into by the Distributor with any broker-dealer or other financial intermediary
that is authorized to effect transactions in Shares of the Funds.
C. Each of Distributor and Client agrees that it will take such further
steps, and cooperate with the other as may be reasonably necessary, to
facilitate compliance with the AML Acts, including but not limited to the
provision of copies of its written procedures, policies and controls related
thereto ("AML Operations"). Distributor undertakes that it will grant to the
Client, the Client's anti-money laundering compliance officer and appropriate
regulatory agencies, reasonable access to copies of Distributor's AML
Operations, and related books and records to the extent they pertain to the
Distributor's services hereunder. It is expressly understood and agreed that the
Client and the Client's compliance officer shall have no access to any of
Distributor's AML Operations, books or records pertaining to other clients or
services of Distributor.
13. PRIVACY. In accordance with Regulation S-P, the Distributor will not
disclose any non-public personal information, as defined in Regulation S-P,
received from the Client or any Fund regarding any Fund shareholder; provided,
however, that the Distributor 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 Distributor. The Distributor shall have in
place and maintain physical, electronic and procedural safeguards reasonably
designed to protect the security, confidentiality and integrity of, and to
prevent unauthorized access to or use of, records and information relating to
consumers and customers of the Funds.
The Client represents to the Distributor that it has adopted a
Statement of its privacy policies and practices as required by Securities and
Exchange Commission Regulation S-P and agrees to provide to the Distributor a
copy of that statement annually. The Distributor agrees to use reasonable
precautions to protect, and prevent the unintentional disclosure of, such
non-public personal information.
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14. CONFIDENTIALITY. During the term of this Agreement, the Distributor and
the Client may have access to confidential information relating to such matters
as either party's business, trade secrets, systems, procedures, manuals,
products, contracts, personnel, and clients. As used in this Agreement,
"Confidential Information" means information belonging to the Distributor or the
Client which is of value to such party and the disclosure of which could result
in a competitive or other disadvantage to either party, including, without
limitation, financial information, business practices and policies, know-how,
trade secrets, market or sales information or plans, customer lists, business
plans, and all provisions of this Agreement. Confidential Information does not
include: (i) information that was known to the receiving Party before receipt
thereof from or on behalf of the Disclosing Party; (ii) information that is
disclosed to the Receiving Party by a third person who has a right to make such
disclosure without any obligation of confidentiality to the Party seeking to
enforce its rights under this Section; (iii) information that is or becomes
generally known in the trade without violation of this Agreement by the
Receiving Party; or (iv) information that is independently developed by the
Receiving Party or its employees or affiliates without reference to the
Disclosing Party's information.
Each party will protect the other's Confidential Information with at
least the same degree of care it uses with respect to its own Confidential
Information, and will not use the other party's Confidential Information other
than in connection with its obligations hereunder. Notwithstanding the
foregoing, a party may disclose the other's Confidential Information if (i)
required by law, regulation or legal process or if requested by any Agency; (ii)
it is advised by counsel that it may incur liability for failure to make such
disclosure; (iii) requested to by the other party; provided that in the event of
(i) or (ii) the disclosing party shall give the other party reasonable prior
notice of such disclosure to the extent reasonably practicable and cooperate
with the other party (at such other party's expense) in any efforts to prevent
such disclosure.
15. NOTICES. Any notice required or permitted to be given by any party to
the others shall be in writing and shall be deemed to have been given on the
date delivered personally or by courier service or 3 days after sent by
registered or certified mail, postage prepaid, return receipt requested or on
the date sent and confirmed received by facsimile transmission to the other
party's address as set forth below:
Notices to the Distributor shall be sent to:
Foreside Fund Services, LLC
Attn: Chief Compliance Officer
Three Xxxxx Xxxxx, Xxxxx 000
Xxxxxxxx, Xxxxx 00000
Fax: (000)000-0000
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notices to the Client shall be sent to:
Century Capital Management, LLC
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attn: General Counsel
Fax: 000-000-0000
16. MODIFICATIONS. The terms of this Agreement shall not be waived,
altered, modified, amended or supplemented in any manner whatsoever except by a
written instrument signed by the Distributor and the Client. If required under
the 1940 Act, any such amendment must be approved by the Client's Board,
including a majority of the Client's Board who are not interested persons, as
such term is defined in the 1940 Act, of any party to this Agreement, by vote
cast in person at a meeting for the purpose of voting on such amendment.
17. GOVERNING LAW. This Agreement shall be construed in accordance with the
laws of the State of Delaware, without regard to the conflicts of law principles
thereof.
18. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the Parties hereto and supersedes all prior communications,
understandings and agreements relating to the subject matter hereof, whether
oral or written.
19. SURVIVAL. The provisions of Sections 5, 6, 7, 8, 12 and 13 of this
Agreement shall survive any termination of this Agreement.
20. MISCELLANEOUS. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect. Any
provision of this Agreement which may be determined by competent authority to be
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors.
21. COUNTERPARTS. This Agreement may be executed by the Parties hereto in
any number of counterparts, and all of the counterparts taken together shall be
deemed to constitute one and the same document.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by a duly authorized officer on one or more counterparts as of the date
first above written.
FORESIDE FUND SERVICES, LLC
By: /s/ Xxxxxxx X. Xxxxxx
-------------------------------
Xxxxxxx X. Xxxxxx
Vice President
CENTURY CAPITAL MANAGEMENT TRUST
By: /s/ Xxxxxxxxx X. Xxxxxxxxx
-------------------------------
Name: Xxxxxxxxx X. Xxxxxxxxx
Title: Principal Executive Officer
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EXHIBIT A
Fund Names
Century Small Cap Select Fund
Century Shares Trust
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Exhibit B
Compensation
DISTRIBUTION SERVICES FEES
Each Fund shall pay an asset based fee of 0.00375% of the average daily net
assets for the prior month.
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OUT-OF-POCKET EXPENSES
Reasonable out-of-pocket expenses incurred by the Distributor in
connection with activities primarily intended to result in the sale of Shares,
including, without limitation: typesetting, printing and distribution of
Prospectuses and shareholder reports; production, printing, distribution and
placement of advertising and sales literature and materials; engagement of
designers, free-xxxxx writers and public relations firms; long-distance
telephone charges; postage; overnight delivery charges; record retention;
travel, lodging and meals.
12b-1 PAYMENTS:
Attached to this Exhibit B are all plans of distribution under Rule
12b-1 under the 1940 Act approved by the Funds and in effect (collectively, the
"Distribution Plan"). If the Funds have a Board approved Distribution Plan that
authorizes them to compensate and reimburse the Distributor for distribution
services, then the Funds shall be responsible for all compensation and
reimbursements pursuant to this Agreement, or such portions thereof as are
authorized under the Distribution Plan.
INVESTMENT ADVISER PAYMENTS
The Funds' investment adviser shall compensate and reimburse the
Distributor for its provision to the Funds of any distribution services for
which the Funds are not authorized to compensate and reimburse the Distributor.
Notes:
>> Fees will be calculated and payable monthly.
>> All fees are subject to a CPI adjustment based on each contract
anniversary.
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