DEALER AGREEMENT
STRONG INVESTMENTS INC.
Strong Investments, Inc. ("Distributor") and _________________ ("Dealer") have
agreed that Dealer will participate in the distribution of shares ("Shares") of
all the mutual funds or series or portfolios thereof (as they may exist from
time to time) comprising each of the mutual funds, including any classes
thereof, in the Strong family of funds (each a "Fund" and collectively the
"Funds") for which Distributor now or in the future serves as distributor,
subject to the terms of this Dealer Agreement ("Agreement"). Any such
additional Funds will be included in this Agreement upon Distributor's written
notification to Dealer. Nothing in this Agreement shall limit Dealer's right
to engage one or more subcontractors or agents, but no such engagement shall
relieve Dealer of its duties, responsibilities, obligations, agreements or
liabilities under this Agreement.
1. LICENSING
a. Dealer represents and warrants that it is: (i) a broker-dealer
registered with the Securities and Exchange Commission ("SEC"); (ii) a member
in good standing of the National Association of Securities Dealers, Inc.
("NASD"); and (iii) licensed by the appropriate regulatory agency of each state
or other jurisdiction in which Dealer will offer and sell Shares of the Funds,
to the extent necessary to perform the duties and activities contemplated by
this Agreement.
b. Dealer represents and warrants that each of its partners, directors,
officers, employees, and agents who will be utilized by Dealer with respect to
its duties and activities under this Agreement is either appropriately licensed
or exempt from such licensing requirements by the appropriate regulatory agency
of each state or other jurisdiction in which Dealer will offer and sell Shares
of the Funds.
c. Dealer agrees that, (i) termination or suspension of its registration
with the SEC, (ii) termination or suspension of its membership with the NASD,
or (iii) termination or suspension of its license to do business by any state
or other jurisdiction or federal regulatory agency, shall immediately cause the
automatic termination of this Agreement. Dealer further agrees to immediately
notify Distributor in writing of any such action or event.
d. Dealer agrees that this Agreement is in all respects subject to the
Conduct Rules of the NASD and such Conduct Rules shall control any provision to
the contrary in this Agreement.
e. Dealer agrees to be bound by and to comply with all applicable state and
federal laws and all rules and regulations promulgated thereunder generally
affecting the sale or distribution of mutual fund shares or classes of such
shares.
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2. ORDERS
a. Dealer agrees to offer and sell Shares of the Funds (including those of
each of its classes) only at the regular public offering price applicable to
such Shares and in effect at the time of each transaction. The procedures
relating to all orders and the handling of each order (including the manner of
computing the net asset value of Shares and the effective time of orders
received from Dealer) are subject to: (i) the terms of the then current
prospectus and statement of additional information (including any supplements,
stickers or amendments thereto) relating to each Fund (or, as appropriate,
class thereof), as filed with the SEC ("Prospectus"); (ii) the new account
application, or appropriate substitute, for each Fund as supplemented or
amended from time to time; (iii) Distributor's written instructions and
multiple class pricing procedures and guidelines, as provided to Dealer from
time to time; and when applicable (iv) the terms and conditions set forth in
the Operating Agreement between Dealer and Distributor ("Operating Agreement"),
attached as Schedule A, as may be amended from time to time, the terms and
conditions of which shall set forth procedures governing, among other things,
the establishment of Dealer's accounts, pricing and distribution information,
and the placement and settlement of orders, including all orders placed and/or
settled outside of the NSCC Fund/Serv Networking program. To the extent that
the Prospectus contains provisions that are inconsistent with this Agreement or
any other document, the terms of the Prospectus shall be controlling.
b. Distributor reserves the right at any time, and without notice to
Dealer, to suspend the sale of Shares or to withdraw or limit the offering of
Shares. Distributor reserves the unqualified right not to accept any specific
order for the purchase or sale of Shares.
c. In all offers and sales of the Shares to the public, Dealer is not
authorized to act as broker or agent for, or employee of, Distributor, any Fund
or any other dealer, and Dealer shall not in any manner represent to any third
party that Dealer has such authority or is acting in such capacity, unless
expressly provided for elsewhere in this Agreement. Rather, Dealer agrees that
it is acting as principal for Dealer's own account or as agent on behalf of
Dealer's customers in all transactions in Shares, except as provided in Section
3.i. hereof. Dealer acknowledges that it is solely responsible for all
suitability determinations with respect to sales of Shares of the Funds to
Dealer's customers and that Distributor has no responsibility for the manner of
Dealer's performance of, or for Dealer's acts or omissions in connection with,
the duties and activities Dealer provides under this Agreement.
Notwithstanding the previous sentence, Dealer represents and warrants that each
customer of Dealer has received the Prospectus for each Fund to be purchased by
such customer.
d. All orders are subject to acceptance by Distributor in its sole
discretion and become effective only upon confirmation by Distributor.
e. Distributor agrees that it will accept from Dealer orders placed through
a remote terminal or otherwise electronically transmitted via the National
Securities Clearing Corporation ("NSCC") Fund/Serv Networking program,
provided, however, that appropriate documentation thereof and agreements
relating thereto are executed by both parties to this Agreement, including in
particular the standard NSCC Networking Agreement and any other related
agreements between Distributor and Dealer deemed appropriate by Distributor,
and that
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all accounts opened or maintained pursuant to that program will be governed by
applicable NSCC rules and procedures. Both parties further agree that, if the
NSCC Fund/Serv Networking program is used to place orders, the standard NSCC
Networking Agreement will control insofar as there is any conflict between any
provision of the Dealer Agreement and the standard NSCC Networking Agreement.
3. DUTIES OF DEALER
a. Dealer agrees to purchase Shares only from Distributor or from Dealer's
customers.
b. Dealer agrees to enter orders for the purchase of Shares only from
Distributor and only for the purpose of covering purchase orders Dealer has
already received from its customers or for Dealer's own bona fide investment.
c. Dealer agrees to date and time stamp all orders received by Dealer and
promptly, upon receipt of any and all orders, to transmit to Distributor all
orders received prior to the time described in the Prospectus, and in
accordance with any schedules attached to this Agreement, for the calculation
of each Fund's net asset value so as to permit Distributor to process all
orders at the price next determined after receipt by Dealer, in accordance with
the Prospectus. Dealer agrees not to withhold placing orders for Shares with
Distributor so as to profit itself as a result of such inaction.
d. Dealer agrees to maintain records of all purchases and sales of Shares
made through Dealer and to furnish Distributor or regulatory authorities with
copies of such records upon request. In that regard, Dealer agrees that,
unless Dealer holds Shares as nominee for its customers or participates in the
NSCC Fund/Serv Networking program, at certain matrix levels, it will provide
Distributor with all necessary information to comply properly with all federal,
state and local reporting requirements and backup and nonresident alien
withholding requirements for its customer accounts including, without
limitation, those requirements that apply by treating Shares issued by the
Funds as readily tradable instruments. Dealer represents and agrees that all
Taxpayer Identification Numbers ("TINs") provided are certified, and that no
account that requires a certified TIN will be established without such
certified TIN. With respect to all other accounts, including Shares held by
Dealer in omnibus accounts and Shares purchased or sold through the NSCC
Fund/Serv Networking program, at certain matrix levels, Dealer agrees to
perform all federal, state and local tax reporting with respect to such
accounts, including without limitation redemptions and exchanges.
e. Dealer agrees to distribute or cause to be delivered to its customers
Prospectuses, proxy solicitation materials and related information and proxy
cards, semi-annual and annual shareholder reports and any other materials in
compliance with applicable legal requirements, except to the extent that
Distributor expressly undertakes in writing to do so.
f. Dealer agrees that if any Share is repurchased by any Fund or is
tendered for redemption within seven (7) business days after confirmation by
Distributor of the original purchase order from Dealer, Dealer shall forfeit
its right to any compensation received by Dealer with respect to such Share and
shall forthwith refund to Distributor the full compensation, if any, paid to
Dealer on the original sale. Distributor agrees to notify Dealer of such
repurchase or
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redemption within a reasonable time after settlement. Termination or
cancellation of this Agreement shall not relieve Dealer from its obligation
under this provision.
g. Dealer agrees that payment for Shares ordered from Distributor shall be
in Fed Funds, New York clearinghouse or other immediately available funds and
that such funds shall be received by Distributor by the earlier of: (i) the
end of the third (3rd) business day following Dealer's receipt of the
customer's order to purchase such Shares; (ii) the settlement date established
in accordance with Rule 15c6-1 under the Securities Exchange Act of 1934, as
amended or (iii) as set forth in a schedule attached to this Agreement. If
such payment is not received by Distributor by such date, Dealer shall forfeit
its right to any compensation with respect to such order, and Distributor
reserves the right, without notice, forthwith to cancel the sale, or, at its
option, to sell the Shares ordered back to the Fund, in which case Distributor
may hold Dealer responsible for any loss, including loss of profit, suffered by
Distributor resulting from Dealer's failure to make payment as aforesaid. If a
purchase is made by check, the purchase is deemed made upon conversion of the
purchase instrument into Fed Funds, New York clearinghouse or other immediately
available funds.
h. Dealer agrees that it: (i) shall assume responsibility for any loss to
the Fund caused by a correction to any order placed by Dealer that is made
subsequent to the trade date for the order, provided such order correction was
not based on any negligence on Distributor's part; and (ii) will immediately
pay such loss to the Fund upon notification.
i. Dealer agrees that in connection with orders for the purchase of Shares
on behalf of any individual retirement accounts ("IRAs"), 401(k) plans or other
retirement plan (collectively, "Retirement Plans") accounts, by mail,
telephone, or wire, Dealer shall act as agent for the custodian or trustee of
such plans (solely with respect to the time of receipt of the application and
payments), and Dealer shall not place such an order with Distributor until it
has received from its customer payment for such purchase and, if such purchase
represents the first contribution to such a Retirement Plan account, the
completed documents necessary to establish the Retirement Plan. Dealer agrees
to indemnify Distributor and its affiliates for any claim, loss, or liability
resulting from incorrect investment instructions received by Distributor from
Dealer. Dealer represents and warrants to Distributor that Dealer is informed
and knowledgeable as to the requirements imposed under the Internal Revenue
Code of 1986, as amended (the "Code"), and the rules, regulations and rulings
adopted pursuant thereto, on and in respect to IRAs, as defined under the Code.
Dealer further represents and warrants that for all XXX orders placed by Dealer
under this Agreement, Dealer: (i) shall deliver to the customer the appropriate
trust and disclosure statement before placing such order; and (ii) shall ensure
that the contribution from the customer is properly designated as to the year
of contribution. Distributor shall not be responsible for monitoring orders
placed by Dealer with regard to compliance with Internal Revenue Service and
other rules and regulations, including, but not limited to, those related to
over-contributions, eligibility, income restrictions, timeliness of
contribution, or any other matters related to the status of any XXX order, nor
for Dealer's compliance with Distributor's procedures with respect to such XXX
orders.
j. Dealer agrees that it will not make any conditional orders for the
purchase or redemption of Shares and acknowledges that Distributor will not
accept conditional orders for Shares.
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k. Dealer agrees that all out-of-pocket expenses incurred by it in
connection with its activities under this Agreement will be borne by Dealer.
l. Dealer agrees that it will keep in force appropriate broker's blanket
bond insurance policies covering any and all acts of Dealer's partners,
directors, officers, employees, and agents adequate to reasonably protect and
indemnify the Distributor and the Funds against any loss which any party may
suffer or incur, directly or indirectly, as a result of any action by Dealer or
Dealer's partners, directors, officers, employees, and agents.
m. Dealer agrees that it will maintain the required net capital as
specified by the rules and regulations of the SEC, NASD and other regulatory
authorities.
4. DEALER COMPENSATION
a. With respect to purchases of Shares by Dealer from Distributor with
respect to any Fund or class thereof that are authorized to make payments of
asset-based sales charges (I.E., payments of fees and expenses made in
accordance with a distribution or service plan adopted by certain Funds or
classes thereof pursuant to Rule 12b-1 ("Rule 12b-1 Plan") under the Investment
Company Act of 1940, as amended ("1940 Act")), all payments to Dealer shall be
in accordance with the Rule 12b-1 Plan adopted by that Fund or classes thereof
as specified in each applicable then current Prospectus for each Fund or class
thereof. With respect to any Fund or class thereof that offers Shares for
which Rule 12b-1 Plan have been adopted, Distributor is authorized to pay the
Dealer continuing distribution and/or service fees, as specified in the
relevant Prospectus to the extent that Dealer provides distribution, marketing,
administrative and other services and activities regarding the promotion of
such Shares and the servicing or maintenance of related shareholder accounts.
The Fund or the Distributor reserves the right, without prior notice, to
suspend or eliminate the payment of such Rule 12b-1 Plan payments or other
dealer compensation by amendment, sticker or supplement to the then current
Prospectus for each Fund.
b. In accordance with the Funds' Prospectuses, Distributor or any affiliate
of the Distributor may, but is not obligated to, make payments to dealers from
Distributor's or such affiliate's own resources as compensation for certain
sales that are made at net asset value or as payment to dealers that otherwise
would not be fully compensated under any Rule 12b-1 Plan ("Qualifying Sales").
If Dealer notifies Distributor of a Qualifying Sale, Distributor may make a
contingent advance payment up to the maximum amount available for payment on
the sale. If any of the Shares purchased in a Qualifying Sale are redeemed
within twelve (12) months of the end of the month of purchase, Distributor
shall be entitled to recover any advance payment attributable to the redeemed
Shares by reducing any account payable or other monetary obligation Distributor
may owe to Dealer or by making demand upon Dealer for repayment in cash.
Distributor reserves the right to withhold advances to Dealer, if for any
reason Distributor believes that it may not be able to recover unearned
advances from Dealer.
c. In connection with the receipt of distribution fees and/or service fees
under Rule 12b-1 Plans applicable to Shares purchased by Dealer's customers,
Distributor directs Dealer to provide enhanced shareholder services such as:
processing purchase and redemption transactions; establishing shareholder
accounts; and providing certain information and assistance with respect to the
Funds. (Redemption levels of shareholder accounts assigned to Dealer will be
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considered in evaluating Dealer's continued ability to receive payments of
distribution and/or service fees.) In addition, Dealer agrees to support
Distributor's marketing efforts by, among other things, (i) granting reasonable
requests for visits to Dealer's office by Distributor's wholesalers and/or
marketing representatives, (ii) including all Funds covered by a Rule 12b-1
Plan on Dealer's "approved," "preferred" or other similar product lists, if
applicable, and (iii) otherwise providing satisfactory product, marketing and
sales support. Further, Dealer agrees to provide Distributor with supporting
documentation concerning the shareholder services provided, as Distributor may
reasonably request from time to time.
d. All Rule 12b-1 Plan distribution and/or servicing fees shall be based on
the value of Shares attributable to Dealer's customers and eligible for such
payment under a Rule 12b-1 Plan, and shall be calculated on the basis of and at
the rates set forth in the then current Prospectus for each Fund or class
thereof. Dealer represents and warrants that Distributor has made no
representations with respect to the Rule 12b-1 Plans of such Funds in addition
to, or conflicting with, the description set forth in their respective
Prospectuses. Without prior approval by a majority of the outstanding shares
of a Fund, the aggregate annual fees paid to Dealer pursuant to any Rule 12b-1
Plan shall not exceed the amounts stated as the "annual maximums" in each
Fund's Prospectus, which amount shall be a specified percent of the value of
the Fund's net assets held in Dealer's customers' accounts that are eligible
for payment pursuant to the Rule 12b-1 Plans (determined in the same manner as
each Fund uses to compute its net assets as set forth in its then current
Prospectus).
e. The provisions of any Rule 12b-1 Plan and distribution agreement between
the Funds and the Distributor shall control over this Agreement in the event of
any inconsistency. Each Rule 12b-1 Plan in effect on the date of this
Agreement is described in the relevant Fund's statement of additional
information. Dealer hereby acknowledges that all payments under Rule 12b-1
Plans are subject to limitations contained in such Rule 12b-1 Plans and
distribution agreements and may be varied or discontinued at any time; in
particular, Dealer acknowledges that the Rule 12b-1 Plan may be terminated at
any time by a vote of a majority of the independent directors of the Fund, or
by a vote of a majority of the outstanding voting securities of a Fund.
5. REDEMPTIONS, REPURCHASES AND EXCHANGES
a. The Prospectus for each Fund describes the provisions whereby the Fund,
under all ordinary circumstances, will redeem Shares held by shareholders on
demand. Dealer agrees that it will not make any representations to
shareholders relating to the redemption of their Shares other than the
statements contained in the Prospectus and the underlying organizational
documents of the Fund, to which it refers, and that Dealer will pay as
redemption proceeds to shareholders the net asset value, minus any applicable
redemption fee, determined after receipt of the order as discussed in the
Prospectus.
b. Dealer agrees not to repurchase any Shares from its customers at a price
below that next quoted by the Fund for redemption or repurchase, I.E., at the
net asset value of such Shares, less any applicable redemption fee, in
accordance with the Fund's Prospectus. Dealer shall, however, be permitted to
sell Shares for the account of the customer or record owner to the Funds at the
repurchase price then currently in effect for such Shares and may
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charge the customer or record owner a fair service fee or commission for
handling the transaction, provided Dealer discloses the fee or commission to
the customer or record owner. Nevertheless, Dealer agrees that it shall not
under any circumstances maintain a secondary market in such repurchased Shares.
c. Dealer agrees that, with respect to a redemption order it has made, if
instructions in proper form, including any outstanding certificates, are not
received by Distributor within the time customary or the time required by law,
the redemption may be canceled forthwith without any responsibility or
liability on Distributor's part or on the part of any Fund, or Distributor, at
its option, may buy the shares redeemed on behalf of the Fund, in which latter
case Distributor may hold Dealer responsible for any loss, including loss of
profit, suffered by Distributor resulting from Distributor's failure to settle
the redemption.
d. Dealer agrees that it will comply with any restrictions and limitations
on transactions described in each Fund's Prospectus, including any restrictions
or prohibitions relating to frequent purchases and redemptions (I.E., market
timing).
6. MULTIPLE CLASSES OF SHARES
Distributor may, from time to time, provide Dealer with written guidelines or
standards relating to the sale, distribution or servicing of Funds offering
multiple classes of Shares having different Rule 12b-1 Plan fees and expenses
and other operating expenses.
7. FUND INFORMATION
a. Dealer agrees that neither it nor any of its partners, directors,
officers, employees, and agents is authorized to give any information or make
any representations concerning Shares of any Fund except those contained in the
Fund's then current Prospectus or in materials provided by Distributor.
b. Distributor will supply to Dealer Prospectuses, reasonable quantities of
sales literature, sales bulletins, and additional sales information. If so
requested by Dealer, Distributor shall use its best efforts to review sales
literature and other marketing materials prepared by Dealer which relate to the
Funds or Distributor for factual accuracy as to these entities, provided that
Distributor is provided at least five business days to review the materials.
In no event, however, shall Distributor review the materials for compliance
with applicable laws. Notwithstanding the foregoing, Dealer shall provide
Distributor with copies of all sales literature and other marketing materials
which refer to the Funds or the Distributor within five Business Days after
their first use, regardless of whether Distributor has previously reviewed the
materials. If so requested by Distributor, Dealer shall cease to use any sales
literature or marketing materials which refer to the Funds or Distributor that
Distributor determines to be inaccurate, misleading or otherwise unacceptable.
8. SHARES
a. Distributor acts solely as agent for the Fund and Distributor shall have
no obligation or responsibility with respect to Dealer's right to purchase or
sell Shares in any state or jurisdiction.
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b. Distributor shall periodically furnish Dealer with information
identifying the states or jurisdictions in which it is believed that all
necessary notice, registration or exemptive filings for Shares have been made
under applicable securities laws such that offers and sales of Shares may be
made in such states or jurisdictions. Distributor shall have no obligation to
make such notice, registration or exemptive filings with respect to Shares in
any state or jurisdiction.
c. Dealer agrees not to transact orders for Shares in states or
jurisdictions in which it has been informed that Shares may not be sold or in
which it and its personnel are not authorized to sell Shares.
d. Distributor shall have no responsibility, under the laws regulating the
sale of securities in the United States or any foreign jurisdiction, with
respect to the qualification or status of Dealer or Dealer's personnel selling
Fund Shares. Distributor shall not, in any event, be liable or responsible for
the issue, form, validity, enforceability and value of such Shares or for any
matter in connection therewith.
e. Dealer agrees that it will make no offers or sales of Shares in any
foreign jurisdiction, except with the express written consent of Distributor.
9. INDEMNIFICATION
a. Dealer agrees to indemnify, defend and hold harmless Distributor and the
Funds and their predecessors, successors, and affiliates, each current or
former director, officer, employee, shareholder or agent and each person who
controls or is controlled by Distributor from any and all losses, claims,
liabilities, costs, and expenses, including reasonable attorney fees, that may
be assessed against or suffered or incurred by any of them howsoever they
arise, and as they are incurred, which relate in any way to: (i) any alleged
violation of any statute or regulation (including without limitation the
securities laws and regulations of the United States or any state or foreign
country) or any alleged tort or breach of contract, related to the offer or
sale by Dealer of Shares of the Funds pursuant to this Agreement (except to the
extent that Distributor's gross negligence or failure to follow correct
instructions received from Dealer is the cause of such loss, claim, liability,
cost or expense); (ii) any redemption or exchange pursuant to instructions
received from Dealer or its directors, partners, affiliates, officers,
employees or agents; or (iii) the breach by Dealer of any of its
representations and warranties specified herein or the Dealer's failure to
comply with the terms and conditions of this Agreement, whether or not such
action, failure, error, omission, misconduct or breach is committed by Dealer
or its predecessor, successor, or affiliate, each current or former partner,
officer, director, employee or agent and each person who controls or is
controlled by Dealer. This indemnity agreement is in addition to any other
liability which Dealer may otherwise have.
b. Distributor agrees to indemnify, defend and hold harmless Dealer and its
predecessors, successors and affiliates, each current or former partner,
officer, director, employee or agent, and each person who controls or is
controlled by Dealer from any and all losses, claims, liabilities, costs and
expenses, including reasonable attorney fees, that may be assessed against or
suffered or incurred by any of them which arise, and which relate to any untrue
statement of or omission to state a material fact contained in the Prospectus
or any written sales literature or other marketing materials provided by the
Distributor to the Dealer, required to be stated therein
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or necessary to make the statements therein not misleading. This indemnity
agreement is in addition to any other liability which Distributor may otherwise
have.
(c) Promptly after receipt by a party entitled to indemnification
under this Section 9 (an "Indemnified Party") of notice of the commencement of
an investigation, action, claim or proceeding, such Indemnified Party shall, if
a claim in respect thereof is to be made against the indemnifying party under
this Section 9 (the "Indemnifying Party"), notify the Indemnifying Party of the
commencement thereof; but the omission so to notify the Indemnifying Party
shall not relieve it from any liability which it may have to any Indemnified
Party otherwise than under this Section 9. In case any such action is brought
against any Indemnified Party, and it notified the Indemnifying Party of the
commencement thereof, the Indemnifying Party shall be entitled to participate
therein and, to the extent that it may wish, assume the defense thereof, with
counsel satisfactory to such Indemnified Party. After notice from the
Indemnifying Party of its intention to assume the defense of an action, the
Indemnified Party shall bear the expenses of any additional counsel obtained by
it, and the Indemnifying Party shall not be liable to such Indemnified Party
under this Section 9 for any legal or other expenses subsequently incurred by
such Indemnified Party in connection with the defense thereof other than
reasonable costs of investigation. The Indemnified Party may not settle any
action without the written consent of the Indemnifying Party. The Indemnifying
Party may not settle any action without the written consent of the Indemnified
Party unless such settlement completely and finally releases the Indemnified
Party from any and all liability. In either event, consent shall not be
unreasonably withheld.
d. Dealer further agrees promptly to send Distributor copies of (i) any
report filed pursuant to NASD Conduct Rule 3070, including, without limitation
quarterly reports filed pursuant to Rule 3070(c), (ii) reports filed with any
other self-regulatory organization in lieu of Rule 3070 reports pursuant to
Rule 3070(e) and (iii) amendments to Dealer's Form BD.
e. Each party's obligations under these indemnification provisions shall
survive any termination of this Agreement.
10. TERMINATION; AMENDMENT
a. In addition to the automatic termination of this Agreement specified in
Section 1.c. of this Agreement, each party to this Agreement may unilaterally
cancel its participation in this Agreement by giving sixty (60) days prior
written notice to the other party. In addition, each party to this Agreement
may terminate this Agreement immediately by giving written notice to the other
party of that other party's material breach of this Agreement. Such notice
shall be deemed to have been given and to be effective on the date on which it
was either delivered personally to the other party or any officer or member
thereof, or was mailed postpaid or delivered to a telegraph office for
transmission to the other party's designated person at the addresses shown
herein or in the most recent NASD Manual.
b. This Agreement shall terminate immediately upon the appointment of a
Trustee under the Securities Investor Protection Act or any other act of
insolvency by Dealer.
c. The termination of this Agreement by any of the foregoing
means shall have no effect upon transactions entered into prior to the
effective date of termination and shall
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not relieve Dealer of its obligations, duties and indemnities specified in this
Agreement; provided, however, that Distributor's obligation to pay fees to
Dealer shall survive for a period no longer than one year from the date of
termination (unless termination is the result of an event described in Section
1.c., in which case Distributor's obligation to pay such fees shall end as of
the date of such termination). A trade placed by Dealer subsequent to its
voluntary termination of this Agreement will not serve to reinstate the
Agreement. Reinstatement, except in the case of a temporary suspension of
Dealer, will only be effective upon written notification by Distributor.
d. This Agreement is not assignable or transferable and will terminate
automatically in the event of its "assignment," as defined in the Investment
Company Act of 1940, as amended and the rules, regulations and interpretations
thereunder. The Distributor may, however, transfer any of its duties under
this Agreement to any entity that controls or is under common control with
Distributor.
e. This Agreement may be amended by Distributor at any time by written
notice to Dealer. Dealer's placing of an order or accepting payment of any
kind after the effective date and receipt of notice of such amendment shall
constitute Dealer's acceptance of such amendment.
11. DISTRIBUTOR'S REPRESENTATIONS AND WARRANTIES
Distributor represents and warrants that:
a. It is a corporation duly organized and existing and in good standing
under the laws of the state of Wisconsin and is duly registered or exempt from
registration as a broker-dealer in all states and jurisdictions in which it
provides services as a non-exclusive distributor for the Funds.
b. It is a member in good standing of the NASD.
c. It is empowered under applicable laws and by Distributor's
organizational documents to enter into this Agreement and perform all
activities and services of the Distributor provided for herein and that there
are no impediments, prior or existing, regulatory, self-regulatory,
administrative, civil or criminal matters affecting Distributor's ability to
perform under this Agreement.
d. All requisite actions have been taken to authorize Distributor to enter
into and perform this Agreement.
12. ADDITIONAL DEALER REPRESENTATIONS AND WARRANTIES
In addition to the representations and warranties found elsewhere in this
Agreement, Dealer represents and warrants that:
a. It is duly organized and existing and in good standing under the laws of
the state, commonwealth or other jurisdiction in which Dealer is organized and
that Dealer will not offer Shares of any Fund for sale in any state or
jurisdiction where such Shares may not be legally sold or where Dealer is not
qualified to act as a broker-dealer.
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b. It is empowered under applicable laws and by Dealer's organizational
documents to enter into this Agreement and perform all activities and services
of the Dealer provided for herein and that there are no impediments, prior or
existing, regulatory, self-regulatory, administrative, civil or criminal
matters affecting Dealer's ability to perform under this Agreement.
c. All requisite actions have been taken to authorize Dealer to enter into
and perform this Agreement.
d. It is not, at the time of the execution of this Agreement, subject to
any enforcement or other proceeding with respect to its activities under state
or federal securities laws, rules or regulations.
e. This Agreement constitutes the legal, valid and binding obligation of
Dealer and is enforceable against Dealer in accordance with its terms.
13. SETOFF; DISPUTE RESOLUTION; GOVERNING LAW
a. Should any of Dealer's compensation accounts with Distributor have a
debit balance, Distributor shall be permitted to offset and recover the amount
owed from any other account Dealer has with Distributor, without notice or
demand to Dealer.
b. In the event of a dispute concerning any provision of this Agreement,
either party may require the dispute to be submitted to binding arbitration
under the commercial arbitration rules and procedures of the NASD. The parties
agree that, to the extent permitted under such arbitration rules and
procedures, the arbitrators selected shall be from the securities industry.
Judgment upon any arbitration award may be entered by any state or federal
court having jurisdiction.
c. This Agreement shall be governed and construed in accordance with the
laws of the state of Wisconsin, not including any provision which would require
the general application of the law of another jurisdiction.
14. INVESTIGATIONS AND PROCEEDINGS
The parties to this Agreement agree to cooperate fully in any securities
regulatory investigation or proceeding or judicial proceeding with respect to
each party's activities under this Agreement and promptly to notify the other
party of any such investigation or proceeding.
15. CAPTIONS
All captions used in this Agreement are for convenience only, are not a part
hereof, and are not to be used in construing or interpreting any aspect hereof.
16. ENTIRE UNDERSTANDING
This Agreement contains the entire understanding of the parties hereto with
respect to the subject matter contained herein and supersedes all previous
agreements. This
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Agreement shall be binding upon the parties hereto when signed by Dealer and
accepted by Distributor.
17. SEVERABILITY
Whenever possible, each provision of this Agreement shall be interpreted in
such manner as to be effective and valid under applicable law. If, however,
any provision of this Agreement is held under applicable law to be invalid,
illegal, or unenforceable in any respect, such provision shall be ineffective
only to the extent of such invalidity, and the validity, legality and
enforceability of the remaining provisions of this Agreement shall not be
affected or impaired in any way.
18. RELATIONSHIP OF PARTIES
Unless expressly provided for elsewhere in this Agreement, all
services performed under this Agreement by Dealer shall be as an independent
contractor and not as an employee or agent of Distributor or the Funds, and
none of the parties shall hold itself out as an agent of any other party with
the authority to bind such party. Neither the execution nor performance of
this Agreement shall be deemed to create a partnership or joint venture by and
among any of the parties.
19. NOTICES
All notices under this Agreement shall be given in writing (and shall
be deemed to have been duly given upon receipt) by delivery in person, by
facsimile, by registered or certified mail or by overnight delivery (postage
prepaid, return receipt requested) to the respective parties as follows:
if to Dealer:
___________________________________
___________________________________
___________________________________
Attention: __________________________
Facsimile No.: (____) ______
if to Distributor:
Strong Investments, Inc.
000 Xxxxxxxx Xxxxxxx
Xxxxxxxxx, XX 00000
Attention: General Counsel
Facsimile No.: (000) 000-0000
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19. ENTIRE AGREEMENT
This Agreement, along with any attached schedules, and the NSCC Networking
Agreement, if approved, contains the entire understanding of the parties hereto
with respect to the subject matter contained herein and supersedes all previous
agreements and/or understandings of the parties. This Agreement shall be
binding upon the parties hereto when signed by Dealer and accepted by
Distributor.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the day and year set forth below.
STRONG INVESTMENTS, INC.
By: ________________________________
Name:_________________________________
Title:__________________________________
Date:__________________________________
DEALER: _____________________________
By: _________________________________
(Signature)
Name: _________________________________
Title: _________________________________
Address:________________________________
________________________________
________________________________
Telephone: _____________________________
NASD CRD # __________________________
Strong Dealer # _______________________
(Internal Use Only)
Date: _________________________________________
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SCHEDULE A
[INSERT OPERATING AGREEMENT, WHEN APPLICABLE, HERE]
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