CLASS K SHARES
ADMINISTRATION AGREEMENT
THIS AGREEMENT is entered into as of this __st day of ________, _______
between __________________________, Inc., a Wisconsin corporation (the
"Corporation"), and Strong Investor Services, Inc., a Wisconsin corporation
("SIS"), with respect to the Class K shares of the Fund. All capitalized terms
not defined herein shall have the same meaning as in the Fund's current
prospectus.
WITNESSETH
WHEREAS, the Corporation is an open-end management investment company
registered under the Investment Company Act of 1940 (the "1940 Act");
WHEREAS, the Corporation is authorized to create separate series, each with
its own separate investment portfolio, and the beneficial interest in each such
series will be represented by a separate series of shares (each series is
hereinafter individually referred to as a "Fund" and collectively, the "Funds");
WHEREAS, it is in the interest of the Corporation to make administrative
services available to shareholders of the Funds;
WHEREAS, SIS wishes to act as the administrator for the Funds to perform
certain administrative functions in connection with purchases and redemptions of
various classes of shares of the Funds ("Shares") and to provide related
services to shareholders holding those classes of shares in connection with
their investments in the Funds; and
NOW, THEREFORE, the Corporation and SIS do mutually agree and promise as
follows:
1. APPOINTMENT. SIS hereby agrees to perform certain administrative
services for the Corporation with respect to the classes listed on Schedule A
hereto, as such Schedule A may be amended from time to time, as hereinafter set
forth.
2. SERVICES TO BE PERFORMED.
2.1 SHAREHOLDER SERVICES. SIS shall be responsible for performing or
designating to a third party ative and servicing functions, which shall include
without limitation:
(i) authorizing expenditures and approving bills for payment on behalf of
the Funds and the Shares; (ii) supervising preparation of the periodic updating
of the Funds' registration statements with respect to the Shares, including
prospectuses and statements of additional information, for the purpose of
filings with the Securities and Exchange Commission ("SEC") and state securities
administrators and monitoring and maintaining the effectiveness of such filings,
as appropriate; (iii) supervising preparation of shareholder reports, notices of
dividends, capital gains distributions and tax credits for the Funds'
shareholders, and attending to routine correspondence and other communications
with individual shareholders; (iv) supervising the daily pricing of the Funds'
investment portfolios and the publication of the respective net asset values of
the Shares of each Fund, earnings reports and other financial data; (v)
monitoring relationships with organizations providing services to the Funds,
with respect to the Shares, including the Custodian, DST and printers; (vi)
supervising compliance by the Funds with recordkeeping requirements under the
1940 Act and regulations thereunder, maintaining books and records for the Funds
(other than those maintained by the Custodian and the Funds' transfer agent) and
preparing and filing of tax reports other than the Funds' income tax returns;
(vii) providing necessary personnel and facilities to coordinate the
establishment and maintenance of shareholder accounts and records with the
Funds' transfer agent; (viii) transmitting shareholders' purchase and redemption
orders to the Funds' transfer agent; (ix) arranging for the wiring or other
transfer of funds to and from shareholder accounts in connection with
shareholder orders to purchase or redeem Shares; (x) verifying purchase and
redemption orders, transfers among and changes in shareholder-designated
accounts; (xi) informing the distributor of the gross amount of purchase and
redemption orders for Shares; and (xii) providing such other related services as
the Funds or a shareholder may reasonably request, to the extent permitted by
applicable law. SIS shall provide all personnel and facilities necessary in
order for it to perform the functions contemplated by this paragraph with
respect to shareholders.
2.2 STANDARD OF SERVICES. All services to be rendered by SIS hereunder
shall be performed in a professional, competent and timely manner subject to the
supervision of the Board of Directors of the Corporation on behalf of the Funds.
The details of the operating standards and procedures to be followed by SIS in
the performance of the services described above shall be determined from time to
time by agreement between SIS and the Corporation.
3. FEES. As full compensation for the services described in Section 2
hereof and expenses incurred by SIS, the Funds shall pay SIS a fee at an annual
rate, as specified for each class of shares on Schedule A, of each Fund's daily
net asset value attributable to a particular class of Shares. This fee will be
computed daily and will be payable daily, or as otherwise agreed by the
Corporation and SIS. All rights of compensation for services performed up to the
termination of this Agreement in accordance with Section 13 hereof, shall
survive the termination of this Agreement.
4. INFORMATION PERTAINING TO THE SHARES. SIS and its officers, employees
and agents are not authorized to make any representations concerning the Funds
or the Shares except to communicate accurately to shareholders factual
information contained in the Funds' Prospectus and Statement of Additional
Information and objective historical performance information. SIS shall act as
agent for shareholders only in furnishing information regarding the Funds and
shall have no other authority to act as agent for the Funds.
During the term of this Agreement, the Funds agree to furnish SIS all
prospectuses, statements of additional information, proxy statements, reports to
shareholders, sales literature, or other material the Funds will distribute to
shareholders of the Funds or the public, which refer in any way to SIS as the
administrator of the Funds, and SIS agrees to furnish the Funds all material
prepared for shareholders, in each case prior to use thereof. The Funds shall
furnish or otherwise make available to SIS such other information relating to
the business affairs of the Funds as SIS may, from time to time, reasonably
request in order to discharge its obligations hereunder.
Nothing in this Section 4 shall be construed to make the Funds liable for
the use of any information about the Funds which is disseminated by SIS.
5. USE OF SIS' NAME. The Funds shall not use the name of SIS in any
prospectus, sales literature or other material relating to the Funds in a manner
not approved by SIS prior thereto; PROVIDED, HOWEVER, that the approval of SIS
shall not be required for any use of its name which merely refers in accurate
and factual terms to its appointment hereunder or which is required by the SEC
or any state securities authority or any other appropriate regulatory,
governmental or judicial authority; PROVIDED, FURTHER, that in no event shall
such approval be unreasonably withheld or delayed.
6. USE OF THE FUNDS' NAME. SIS shall not use the name of the Funds on any
checks, bank drafts, bank statements or forms for other than internal use in a
manner not approved by the Funds prior thereto; PROVIDED, HOWEVER, that the
approval of the Funds shall not be required for the use of the Funds' names in
connection with communications permitted by Sections 2 and 4 hereof or for any
use of the Funds' names which merely refer in accurate and factual terms to SIS'
role hereunder or which is required by the SEC or any state securities authority
or any other appropriate regulatory, governmental or judicial authority;
PROVIDED, FURTHER, that in no event shall such approval be unreasonably withheld
or delayed.
7. SECURITY. SIS represents and warrants that the various procedures and
systems which it has implemented with regard to safeguarding from loss or damage
attributable to fire, theft or any other cause any Fund's records and other data
and SIS' records, data, equipment, facilities and other property used in the
performance of its obligations hereunder are adequate and that it will make such
changes therein from time to time as in its judgment are required for the secure
performance of its obligations hereunder. The parties shall review such systems
and procedures on a periodic basis, and the Funds shall from time to time
specify the types of records and other data of the Funds to be safeguarded in
accordance with this Section 7.
8. COMPLIANCE WITH LAWS. SIS assumes no responsibilities under this
Agreement other than to render the services called for hereunder, on the terms
and conditions provided herein. SIS shall comply with all applicable federal and
state laws and regulations. SIS represents and warrants to the Funds that the
performance of all its obligations hereunder will comply with all applicable
laws and regulations, the provisions of its articles of incorporation and
by-laws and all material contractual obligations binding upon SIS. SIS
furthermore undertakes that it will promptly inform the Funds of any change in
applicable laws or regulations (or interpretations thereof) which would prevent
or impair full performance of any of its obligations hereunder.
9. FORCE MAJEURE. SIS shall not be liable or responsible for delays or
errors by reason of circumstances beyond its control, including, but not limited
to, acts of civil or military authority, national emergencies, labor
difficulties, fire, mechanical breakdown, flood or catastrophe, acts of God,
insurrection, war, riots or failure of communication or power supply.
10. INDEMNIFICATION.
10.1 INDEMNIFICATION OF SIS. SIS, its directors, officers, employees and
agents shall not be liable for any error of judgment or mistake of law or any
loss suffered by the Funds in connection with the performance of its obligations
and duties under this Agreement, except a loss resulting from willful
misfeasance, bad faith, or gross negligence in the performance of such
obligations or duties or by reason of the reckless disregard thereof by SIS, its
directors, officers, employees and agents. The Funds will indemnify and hold
SIS, its directors, officers, employees and agents harmless, from all losses,
claims, damages, liabilities or expenses (including reasonable fees and
disbursements of counsel) from any losses, liabilities, damages, or expenses
(collectively, "Losses") resulting from any and all claims, demands, actions or
suits (collectively, "Claims") arising out of or in connection with actions or
omissions in the Funds including, but not limited to, any misstatements or
omissions in a prospectus, actions or inactions by the Funds or any of its
agents or contractors or the performance of SIS' obligations hereunder or
otherwise not resulting from the willful misfeasance, bad faith, or gross
negligence of SIS, its directors, officers, employees or agents, in the
performance of SIS' duties or from reckless disregard by SIS, its directors,
officers, employees or agents of SIS' obligations and duties under this
Agreement.
Notwithstanding anything herein to the contrary, the Funds will indemnify
and hold SIS harmless from any and all Losses (including reasonable counsel fees
and expenses) resulting from any Claims as a result of SIS' acting in accordance
with any received instructions from the Funds.
10.2 INDEMNIFICATION OF THE FUNDS. Without limiting the rights of the Funds
under applicable law, SIS will indemnify and hold the Funds harmless from any
and all Losses (including reasonable fees and disbursements of counsel) from any
Claims resulting from the willful misfeasance, bad faith, or gross negligence of
SIS, its directors, officers, employees or agents, in the performance of SIS'
duties or from reckless disregard by SIS, its directors, officers, employees or
agents of SIS' obligations and duties under this Agreement.
10.3 SURVIVAL OF INDEMNITIES. The indemnities granted by the parties in
this Section 10 shall survive the termination of this Agreement.
11. INSURANCE. SIS shall maintain such reasonable insurance coverage as is
appropriate against any and all liabilities which may arise in connection with
the performance of its duties hereunder.
12. FURTHER ASSURANCES. Each party agrees to perform such further acts and
execute further documents as are necessary to effectuate the purposes hereof.
13. TERMINATION. This Agreement shall continue in force and effect until
terminated or amended to such an extent that a new Agreement is deemed advisable
by either party. Notwithstanding anything herein to the contrary, this Agreement
may be terminated at any time, without payment of any penalty, by either party
upon ninety (90) days written notice to the other party.
14. NON-EXCLUSIVITY. Nothing in this Agreement shall limit or restrict the
right of SIS to engage in any other business or to render services of any kind
to any other corporation, firm, individual or association.
15. AMENDMENTS. This Agreement may be amended only by mutual written
consent.
16. NOTICE. Any notice that is required to be given by the parties to each
other under the terms of this Agreement shall be in writing, addressed and
delivered, or mailed post paid to the other party at the principal place of
business of such party.
17. CERTAIN RECORDS. Any records required to be maintained and preserved
pursuant to provisions of Rule 31a-1 and Rule 31a-2 promulgated under the 1940
Act which are prepared or maintained by SIS on behalf of the Corporation are the
property of the Corporation and will be surrendered promptly to the Corporation
on request.
18. SEVERABILITY. If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule or otherwise, the remainder of this
Agreement shall not be affected thereby.
17. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed as of the day and year first stated above.
Attest: Strong Investor Services, Inc.
------------------------ --------------------------------------
[NAME] [NAME, TITLE]
Attest: ________________________, Inc.
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[NAME] [NAME, TITLE]
SCHEDULE A
The Funds and their respective classes currently subject to this Agreement are
as follows:
Date of Addition
PORTFOLIO(S) CLASS(ES) ANNUAL RATE TO THIS AGREEMENT
Attest: Strong Investor Services, Inc.
-------------------------- ------------------------------------
[NAME] [NAME, TITLE]
Attest: _____________________________, Inc.
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[NAME] [NAME, TITLE]
