EXHIBIT 99(h)(4)
TRANSFER AGENT AND SHAREHOLDER SERVICING AGREEMENT
THIS AGREEMENT is made and entered into as of July 1, 2006, by and among
First American Strategy Funds, Inc., a Minnesota corporation (the "Fund"), and
U.S. Bancorp Fund Services, LLC, a Wisconsin limited liability company
("USBFS").
WHEREAS, the Fund is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open-end management investment company
consisting of several series of shares of Common Stock;
WHEREAS, USBFS is, among other things, in the business of administering
transfer and dividend disbursing agent functions for the benefit of its
customers; and
WHEREAS, the Fund desires to retain USBFS to provide transfer and dividend
disbursing agent services to all portfolios of the Fund now and hereafter
created ("Portfolios"), 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 USBFS AS TRANSFER AGENT
The Fund hereby appoints USBFS as transfer agent of the Fund on the terms
and conditions set forth in this Agreement, and USBFS hereby accepts such
appointment and agrees to perform the services and duties set forth in
this Agreement. The Fund hereby also authorizes USBFS to contract with
qualifying financial institutions for the establishment and maintenance of
omnibus accounts and for the provision of customary services related to
such omnibus accounts.
2. SERVICES AND DUTIES OF USBFS
A. USBFS shall perform all of the customary services of a transfer
agent and dividend disbursing agent for the Fund, and as relevant,
agent in connection with accumulation, open account or similar plans
(including without limitation any periodic investment plan or
periodic withdrawal program), including but not limited to:
1) Receive and process all orders for the purchase, exchange,
and/or redemption of shares in accordance with Rule 22c-1 of
the 1940 Act, including the calculation and collection of any
applicable sales charges.
2) Process purchase orders with prompt delivery, where
appropriate, of payment and supporting documentation to the
Fund's custodian, and issue the appropriate number of
uncertificated shares with such uncertificated shares being
held in the appropriate shareholder account.
3) Arrange for issuance of shares obtained through transfers of
funds from Fund shareholders' accounts at financial
institutions and arrange for the exchange of shares for shares
of other eligible investment companies, when permitted by the
Fund's current prospectuses ("Prospectuses").
4) Process redemption requests received in good order and, where
relevant, deliver appropriate documentation to the Fund's
custodian.
5) Pay monies upon receipt from the Fund's custodian, where
relevant, in accordance with the instructions of redeeming
shareholders.
6) Process transfers of shares in accordance with the
shareholder's instructions.
7) Process exchanges between Portfolios and/or classes of shares
of Portfolios and between a Portfolio and any other investment
company or series thereof for which FAF Advisors, Inc. ("FAF
Advisors") acts as investment adviser.
8) Prepare and transmit payments for dividends and distributions
declared by the Fund, after deducting any amount required to
be withheld by any applicable laws, rules and regulations and
in accordance with shareholder instructions.
9) Serve as agent of the Fund in connection with accumulation,
open account or similar plans (e.g., periodic investment plans
and periodic withdrawal plans.
10) Make changes to shareholder records, including, but not
limited to, address changes in plans (e.g., systematic
withdrawal, automatic investment, dividend reinvestment).
11) Handle load and multi-class processing, including rights of
accumulation and purchases by letters of intent.
12) Record the issuance of shares of the Fund and maintain,
pursuant to
Rule 17Ad-10(e) promulgated under the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), a record of the
total number of shares of the Fund which are authorized,
issued and outstanding.
13) Prepare shareholder meeting lists and, if applicable, mail,
receive and tabulate proxies.
14) Mail shareholder reports and Prospectuses to current
shareholders.
15) Prepare and file U.S. Treasury Department Forms 1099 and other
appropriate information returns required with respect to
dividends and distributions for shareholders.
16) Provide shareholder account information upon request and
prepare and mail confirmations and statements of account to
shareholders for purchases, redemptions and other confirmable
transactions as agreed upon with the Fund.
17) Mail requests for shareholders' certifications under penalties
of perjury and pay on a timely basis to the appropriate
federal authorities any taxes to be withheld on dividends and
distributions paid by the Fund, all as required by applicable
federal tax laws and regulations.
18) Provide a Blue Sky system that will enable the Fund to monitor
the total number of shares of the Fund sold in each state. In
addition, the Fund or its agent shall identify to USBFS in
writing those classes of shares or transactions to be treated
as exempt from the Blue Sky reporting for each state.
19) Answer correspondence from shareholders, securities brokers
and others relating to USBFS's duties hereunder and such other
correspondence as may from time to time be mutually agreed
upon between USBFS and the Fund.
20) Reimburse the Fund each month for all material losses
resulting from "as of" processing errors for which USBFS is
responsible in accordance with the "as of" processing
guidelines agreed to by USBFS and FAF Advisors.
3. REPRESENTATIONS OF USBFS
USBFS represents and warrants to the Fund, which representations and
warranties shall be deemed to be continuing throughout the term of this
Agreement, that:
A. It is a limited liability corporation duly organized, existing and
in good standing under the laws of Wisconsin;
B. It is a registered transfer agent under the Exchange Act.
C. It is duly qualified to carry on its business in the State of
Wisconsin;
D. It is empowered under applicable laws and by its charter and bylaws
to enter into and perform this Agreement;
E. All requisite corporate proceedings have been taken to authorize it
to enter and perform this Agreement;
F. It has and will continue to have access to the necessary facilities,
equipment and personnel to perform its duties and obligations under
this Agreement; and
G. 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 or any contract binding it or affecting its property which
would prohibit its execution or performance of this Agreement.
H. This Agreement has been duly authorized, executed and delivered by
USBFS in accordance with all requisite action and constitutes a
valid and legally binding obligation of USBFS, 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.
4. REPRESENTATIONS OF THE FUND
The Fund represents and warrants to USBFS, which representations and
warranties shall be deemed to be continuing throughout the term of this
Agreement, that:
A. The Fund is an open-end investment company under the 1940 Act;
B. The Fund is a corporation organized, existing, and in good standing
under the laws of the State of Maryland;
C. The Fund is empowered under applicable laws and by its Articles of
Incorporation and Bylaws to enter into and perform this Agreement;
D. The Fund will comply with all applicable requirements of the
Securities Act
of 1933, as amended, the Exchange Act, the 1940 Act, and any laws,
rules and regulations of governmental authorities having
jurisdiction;
E. The Fund 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 or any contract binding it or affecting its property
which would prohibit its execution or performance of this Agreement;
F. A registration statement under the 1940 Act and the Securities Act
of 1933, as amended, is made effective and will remain effective,
and appropriate state securities law filings have been made and will
continue to be made, with respect to all shares of the Fund being
offered for sale; and
G. This Agreement has been duly authorized, executed and delivered by
the Fund in accordance with all requisite action and constitutes a
valid and legally binding obligation of the Fund, 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.
5. SERVICE STANDARDS
On a monthly basis, USBFS shall submit a written report to FAF Advisors
concerning the performance of its obligations under this Agreement,
including the accuracy and timeliness of the various services provided
pursuant to this Agreement (the "Service Standards Report"). The Service
Standards Report shall include such measures as are agreed to by the
parties from time to time. In addition, USBFS agrees to make such reports
and presentations to the Board of Directors as may be reasonably requested
from time to time.
6. COMPENSATION
USBFS shall be compensated for providing the services set forth in this
Agreement and for such out-of-pocket expenses as are reasonably incurred
by USBFS in performing its duties hereunder in accordance with the fee
schedule set forth on Exhibit A hereto (as amended from time to time).
The Fund shall pay all fees and reimbursable expenses within thirty (30)
calendar days following receipt of the billing notice, except for any fee
or expense subject to a good faith dispute. The Fund shall notify USBFS in
writing within thirty (30) calendar days following receipt of each invoice
if the Fund is disputing any amounts in good faith. The Fund shall settle
such disputed amounts within ten
(10) calendar days of the day on which the parties agree to the amount to
be paid. Notwithstanding anything to the contrary, amounts owed by the
Fund to USBFS shall only be paid out of assets and property of the Fund.
7. STANDARD OF CARE; INDEMNIFICATION; LIMITATION OF LIABILITY
The duties of the USBFS shall be confined to those expressly set forth
herein, and no implied duties are assumed by or may be asserted against
USBFS hereunder. USBFS shall not be liable for any error of judgment or
mistake of law or for any loss arising out of any act or omission in
carrying out its duties hereunder, except a loss resulting from willful
misfeasance, bad faith or negligence in the performance of its duties, or
by reason of reckless disregard of its obligations and duties hereunder,
except as may otherwise be provided under provisions of applicable law
which cannot be waived or modified hereby. (As used in this Section 7, the
term "USBFS" shall include directors, officers, employees and other
corporate agents of USBFS as well as that corporation itself.)
So long as USBFS acts in good faith and with due diligence and without
negligence, the Fund assumes full responsibility and shall indemnify USBFS
and hold it harmless from and against any and all actions, suits and
claims, whether groundless or otherwise, and from and against any and all
losses, damages, costs, charges, reasonable counsel fees and
disbursements, payments, expenses and liabilities (including reasonable
investigation expenses) arising directly or indirectly out of USBFS'
relationship with the Fund, including USBFS' actions taken or nonactions
with respect to the performance of services hereunder. The indemnity and
defense provisions set forth herein shall survive the termination of this
Agreement.
The rights hereunder shall include the right to reasonable advances of
defense expenses in the event of any pending or threatened litigation with
respect to which indemnification hereunder may ultimately be merited;
provided, however, that in the event that it is ultimately determined that
indemnification is not warranted, any such amounts advanced hereunder
shall be repaid. In order that the indemnification provision contained
herein shall apply, however, it is understood that if in any case the Fund
may be asked to indemnify or hold USBFS harmless, the Fund shall be fully
and promptly advised of all pertinent facts concerning the situation in
question, and it is further understood that USBFS will use all reasonable
care to identify and notify the Fund promptly concerning any situation
which presents or appears likely to present the probability of such a
claim for indemnification against the Fund.
The Fund shall be entitled to participate at its own expense or, if it so
elects, to assume the defense of any suit brought to enforce any claims
subject to this indemnity provision. If the Fund elects to assume the
defense of any such claim, the defense shall be conducted by counsel
chosen by the Fund and satisfactory to USBFS, whose approval shall not be
unreasonably withheld. In the event that the
Fund elects to assume the defense of any suit and retain counsel, USBFS
shall bear the fees and expenses of any additional counsel retained by it.
If the Fund does not elect to assume the defense of a suit, it will
reimburse USBFS for the reasonable fees and expenses of any counsel
retained by USBFS.
USBFS may apply to the Fund at any time for instructions and may consult
outside counsel for the Fund or its own counsel and with accountants and
other experts with respect to any matter arising in connection with USBFS'
duties, and, except for such actions or omissions constituting negligence,
USBFS shall not be liable or accountable for any action taken or omitted
by it in good faith and in accordance with such instruction or with the
opinion of such counsel, accountants or other experts.
8. PROPRIETARY AND CONFIDENTIAL INFORMATION
USBFS agrees on behalf of itself and its directors, officers, and
employees to treat confidentially and as proprietary information of the
Fund all records and other information relative to the Fund and prior,
present, or potential shareholders (and clients of said shareholders) and
not to use such records and information for any purpose other than the
performance of its responsibilities and duties hereunder, except after
prior notification to and approval in writing by the Fund, which approval
shall not be unreasonably withheld and may not be withheld where USBFS may
be exposed to civil or criminal contempt proceedings for failure to comply
after being requested to divulge such information by duly constituted
authorities, or when so requested by the Fund.
Further, USBFS will adhere to the privacy policies adopted by the Fund
pursuant to Title V of the Xxxxx-Xxxxx-Xxxxxx Act, as may be modified from
time to time (the "Act"). Notwithstanding the foregoing, USBFS will not
share any nonpublic personal information concerning any of the Fund's
shareholders with any third party unless specifically directed by the Fund
or allowed under one of the exceptions noted under the Act. USBFS 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 the Fund or its shareholders.
9. ANTI-MONEY LAUNDERING PROGRAM
USBFS, as named transfer agent for the Fund, has established and
implemented an anti-money laundering program reasonably designed to
prevent the Fund from being used to launder money.
A. Policies and Procedures. USBFS has implemented policies, procedures,
and internal controls that achieve compliance with the applicable
provisions of the Bank Secrecy Act ("BSA") and are reasonably
designed to detect activities
indicative of money laundering, including but not limited to
detection of the following transactions:
1) An investment in a fund by check or checks drawn on the
account of a third party or parties unrelated to the investor;
2) An investment in a fund by one or more wire transfers from an
account of a third party or parties unrelated to the investor;
3) Frequent wire transfer activity to and from a cash reserve
account, coming from or sent to the same bank;
4) Payments that indicate structuring occurring at another
financial institution, such as large amounts of sequentially
numbered money orders or travelers checks or cashiers checks
in amounts under the $10,000 currency reporting threshold;
5) Large deposits with relatively small fund investments;
6) Frequent purchases of Fund shares followed by large
redemptions; and
7) Transfers to accounts in countries where drugs are known to be
produced or other high-risk countries.
USBFS will file all reports that are required by law or regulation
in order to report certain types of transactions. USBFS will also
analyze the money laundering risks posed by particular omnibus
accounts based on a risk-based evaluation of relevant factors. In
addition, USBFS will follow its procedures to prohibit transactions
with individuals, entities or jurisdictions identified on any list
of known or suspected terrorists or on the Treasury's Office of
Foreign Assets Control ("OFAC") List.
USBFS agrees that federal examiners will have access to information
and records relating to its anti-money laundering program and
consents to any inspection authorized by law or regulation in
connection thereof.
USBFS will amend its anti-money laundering program as necessary to
reflect future implementing regulations applicable to the Fund.
B. Customer Identification Program ("CIP"). USBFS has implemented
risk-based procedures designed to ensure that the Fund verifies the
identity of new customers to the extent reasonable and practicable,
including but not limited to:
1) Procedures for opening an account that specify the identifying
information that will be obtained with respect to each
customer prior to opening an account;
2) Procedures for verifying the identity of the customer within a
reasonable time after the account is opened;
3) Procedures for making and maintaining certain records relating
to the identification and verification of customers;
4) Procedures for determining whether the customer appears on
certain lists of known or suspected terrorists or terrorist
organizations; and
5) Procedures for providing mutual fund customers with adequate
notice that the mutual fund is requesting information to
verify their identities.
USBFS will certify annually to the Fund that it has implemented an
anti-money laundering program and will perform the specified
requirements of the Fund's CIP.
C. Training. USBFS will provide ongoing training to employees that is
relevant to their functions, including but not limited to BSA
requirements. The level, frequency, and focus of the training will
be determined according to the responsibilities of the employees.
Training will be provided whenever employees, including new
employees, assume duties that bring them in contact with BSA
requirements or potential money laundering activities. The ongoing
training program will include periodic updates and refresher courses
regarding the anti-money laundering program.
D. Quarterly Reports. USBFS will report to the Fund Board of Directors,
at least quarterly, any anti-money laundering compliance exceptions,
including the resolution of such exceptions. Summary reports will
include but not be limited to "OFAC hits" and any Suspicious
Activity Report filings.
E. Inspection. USBFS agrees that federal, state and other
self-regulatory organization examiners will have access to
information and records relating to any anti-money laundering
activities performed by USBFS for the Fund, and USBFS consents to
any inspection authorized by law or regulation in connection
thereof.
F. Annual Audit. USBFS agrees to an annual independent audit of its
anti-money laundering program. Any recommendation resulting from
such review will be promptly implemented or submitted to the Fund's
Board of Directors for consideration.
10. TERM OF AGREEMENT; AMENDMENT
This Agreement shall become effective as of the date first written above
and will continue in effect for a period of one year. This Agreement shall
continue in effect from year to year thereafter, but only so long as such
continuance is specifically approved at least annually by the Fund's Board
of Directors, including the specific approval of a majority of the
directors who are not interested persons of the Fund. Subsequent to the
initial one-year term, this
Agreement may be terminated by the Fund or USBFS upon giving ninety (90)
days' prior written notice to the other party or such shorter period as is
mutually agreed upon by the parties. Nothwithstanding the foregoing, this
Agreement may be terminated by any party upon a material breach of this
Agreement by the other party if such breach is not cured within 15 days of
notice of such material breach to the breaching party. This Agreement may
not be amended or modified in any manner except by written agreement
executed by USBFS and the Fund, and authorized or approved by the Board of
Directors.
11. DUTIES IN THE EVENT OF TERMINATION
In the event that, in connection with termination, a successor to any of
USBFS's duties or responsibilities hereunder is designated by the Fund by
written notice to USBFS, USBFS will promptly, upon such termination and at
the expense of the Fund, transfer to such successor all relevant books,
records, correspondence, and other data established or maintained by USBFS
under this Agreement in a form reasonably acceptable to the Fund (if such
form differs from the form in which USBFS has maintained, the Fund shall
pay any expenses associated with transferring the data to such form), and
will cooperate in the transfer of such duties and responsibilities,
including provision for assistance from USBFS's personnel in the
establishment of books, records, and other data by such successor. If no
successor is designated, such books, records, and other data will be
returned to the Fund.
12. RECORDS
USBFS shall keep records relating to the services to be performed
hereunder in the form and manner, and for such period, as it may deem
advisable and is agreeable to the Fund, but not inconsistent with the
rules and regulations of appropriate government authorities, in
particular, Section 31 of the 1940 Act and the rules thereunder. USBFS
agrees that all such records prepared or maintained by USBFS relating to
the services to be performed by USBFS hereunder are the property of the
Fund and will be preserved, maintained, and made available in accordance
with such applicable sections and rules of the 1940 Act and will be
promptly surrendered to the Fund on and in accordance with its request.
Further, federal examiners shall have access to information and records
relating to anti-money laundering activities performed by USBFS hereunder
and USBFS consents to any inspection authorized by law or regulation in
connection thereof.
13. GOVERNING LAW
This Agreement shall be construed in accordance with the laws of the State
of Minnesota, without regard to conflicts of law principles. To the extent
that the applicable laws of the State of Minnesota, or any of the
provisions herein, conflict
with the applicable provisions of the 1940 Act, the latter shall control,
and nothing herein shall be construed in a manner inconsistent with the
1940 Act or any rule or order of the Securities and Exchange Commission
thereunder.
14. DATA NECESSARY TO PERFORM SERVICES
The Fund or its agent shall furnish to USBFS the data necessary to perform
the services described herein at such times and in such form as mutually
agreed upon.
15. ASSIGNMENT
This Agreement may not be assigned by the Fund without the written consent
of USBFS, or by USBFS without the written consent of the Fund accompanied
by the authorization or approval of the Board of Directors.
16. SERVICES NOT EXCLUSIVE
Nothing in this Agreement shall limit or restrict USBFS from providing
services to other parties that are similar or identical to some or all of
the services provided hereunder.
17. INVALIDITY
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. In such case, the parties shall in good faith modify or
substitute such provision consistent with the original intent of the
parties.
18. NOTICES
Any notice required or permitted to be given by either party to the other
shall be in writing and shall be deemed to have been given on the date
delivered personally or by courier service, or three (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 set forth below: Notice to USBFS
shall be sent to:
U.S. Bancorp Fund Services, LLC
000 Xxxx Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
and notice to the Fund shall be sent to:
Xxxxx Xxxxxxxxx, Fund Treasurer
First American Funds, US Bancorp Center
000 Xxxxxxxx Xxxx
XX-XX-X00X
Xxxxxxxxxxx, XX 00000
19. MULTIPLE ORIGINALS
This Agreement may be executed on two or more counterparts, each of which
when so executed shall be deemed to be an original, but such counterparts
shall together constitute but one and the same instrument.
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.
FIRST AMERICAN STRATEGY FUNDS, INC.
By /s/ Xxxxxxx X. Xxxxxx
-------------------------------------
Xxxxxxx X. Xxxxxx
Its Vice President - Administration
U.S. BANCORP FUND SERVICES, LLC.
By /s/ Xxx X. Xxxxxxx
-------------------------------------
Xxx X. Xxxxxxx
Its President
