QUASAR DISTRIBUTORS, LLC
000 XXXX XXXXXXXX XXXXXX
XXXXXXXXX, XX 00000
DEALER AGREEMENT
This Agreement is made and effective as of this ____ day of __________,
20__, between Quasar Distributors, LLC ("Quasar"), a Delaware limited liability
company, and __________________________("Dealer"), a __________________________.
WHEREAS, First American Strategy Funds, Inc., First American Funds,
Inc. and First American Investment Funds, Inc. (collectively, the "Fund
Companies") are registered under the Investment Company Act of 1940, as amended
("1940 Act"), as open-end investment companies and currently offer for public
sale shares of common stock or beneficial interest ("Shares") in the separate
series of the Fund Companies listed on Schedule A, as may be amended from time
to time (each, a "Fund");
WHEREAS, Quasar serves as principal underwriter in connection with the
offering and sale of the Shares of each Fund pursuant to a Distribution
Agreement, and
WHEREAS, Dealer desires to serve as a selected dealer for the Shares of
the Funds.
NOW, THEREFORE, in consideration of the promises and the mutual
covenants contained herein, Quasar and Dealer agree as follows:
1. OFFERS AND SALES OF SHARES.
(a) Dealer agrees to offer and sell Shares only at the public offering
price currently in effect, in accordance with the terms of the then-current
prospectus(es), including any supplements or amendments thereto, of each Fund
("Prospectus"). The Dealer agrees to act only as agent on behalf of its
customers ("Customers") in such transactions and shall not have authority to act
as agent for the Funds, for Quasar, or for any other dealer in any respect. All
purchase orders are subject to acceptance by Quasar and the relevant Fund and
become effective only upon confirmation by Quasar or an agent of the Fund. In
its sole discretion, either the Fund or Quasar may reject any purchase order and
may, provided notice is given to Dealer, suspend sales or withdraw the offering
of Shares entirely.
(b) Dealer understands and acknowledges that each Fund offers its
Shares in multiple classes, each subject to differing sales charges and
financing structiures. Dealer hereby represents and warrants that it has
established compliance procedures designed to ensure that customers are made
aware of the terms of each available class of the applicable Fund's Shares, to
ensure that each customer is offered only Shares that are suitable investments
of that customer and to ensure proper supervision of Dealer's registered
representatives in recommending and offering multiple classes of Shares to it
customers.
(c) Dealer understands and acknowledges that certain Shares may be
subject to a contingent deferred sales charge when such Shares are redeemed. As
to such Shares which are not networked, Dealer agrees either (i) to refrain from
issuing such Shares in street name, or (ii) to monitor the time period during
which the applicable contingent deferred sales charge remains in effect, to
deduct from any redemption proceeds the applicable contingent deferred sales
charge and to promptly remit to Quasar any such contingent deferred sales
charge.
(d) Dealer agrees that, if requested by Quasar, it will undertake from
time to time certain shareholder servicing activities ("shareholder services")
as requested by Quasar, for Customers who have purchased Shares. Dealer may
perform these duties itself or subcontract them to a third party of its choice.
These shareholder services may include, but are not limited to, one or more of
the following services as determined by Quasar: (i) maintaining accounts
relating to Customers that invest in Shares; (ii) providing information
periodically to Customers showing their positions in Shares; (iii) arranging for
bank wires; (iv) responding to Customer inquiries relating to the services
performed by Dealer; (v) responding to routine inquiries from Customers
concerning their investments in Shares; (vi) forwarding shareholder
communications from the Funds (such as proxies, shareholder reports, annual and
semi-annual financial statements and dividend, distribution and tax notices) to
Customers; (vii) processing purchase, exchange and redemption requests from
Customers and placing such orders with the Funds' service providers; (viii)
assisting Customers in changing dividend options, account designations, and
addresses; (ix) providing subaccounting with respect to Shares beneficially
owned by Customers; (x) processing dividend payments from the Funds on behalf of
Customers; and (xi) providing such other similar services as Quasar may
reasonably request to the extent Dealer is permitted to do so under applicable
laws or regulations.
2. PROCEDURES FOR PURCHASES. The procedures relating to all orders and
the handling of them shall be made in accordance with the procedures set forth
in each Fund's Prospectus, and to the extent consistent with the Prospectus,
written instructions forwarded to Dealer by Quasar from time to time.
Dealer shall be permitted to accept orders for the purchase, exchange
or redemption of Shares of the Funds on each business day that the New York
Stock Exchange is open for business and a Fund's net asset value is determined
("Business Day"). Dealer shall not be required to accept orders on any Business
Day on which Dealer is not open for business. If orders are accepted by Dealer
prior to the latest time at which a Fund's net asset value is to be calculated
as determined by its Board of Directors/Trustees, which is typically as of the
close of the New York Stock Exchange on that Business Day ("Close of Trading"),
such orders shall be treated as having been received on that Business Day. If
such orders are received after Close of Trading on a Business Day, they shall
not be treated as having been accepted by Dealer on such Business Day.
All purchase orders shall be placed at, and in accordance with the applicable
discount schedules set forth in the Fund's Prospectus.
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3. SETTLEMENT AND DELIVERY FOR PURCHASES. Transactions shall be settled
by Dealer by payment in federal funds of the full purchase price to the Fund's
transfer agent in accordance with applicable procedures. Payment for Shares
shall be received by the Fund's transfer agent by the later of (a) the end of
the third business day following Dealer's receipt of the Customer's order to
purchase such Shares or (b) the end of one business day following Dealer's
receipt of the Customer's payment for such Shares, but in no event later than
the end of the sixth business day following Dealer's receipt of the Customer's
order. If such payment is not received within the time specified, the sale may
be canceled forthwith without any responsibility or liability on Quasar's part
or on the part of the Funds to Dealer or its Customers. In addition, Dealer will
be responsible to the Fund and/or Quasar for any losses suffered on the
transaction.
4. PROCEDURES FOR REDEMPTION, REPURCHASE AND EXCHANGE. Redemption or
repurchases of Shares as well as exchange requests shall be made in accordance
with the procedures set forth in each Fund's Prospectus, and to the extent
consistent with the Prospectus, written instructions forwarded to Dealer by
Quasar from time to time.
5. COMPENSATION. On each purchase of Shares by Dealer from Quasar,
Dealer shall be entitled to receive such dealer allowances, concessions,
finder's fees, sales charges, discounts and other compensation, if any, as
described and set forth in each Fund's Prospectus. Sales charges and discounts
to dealers, if any, may be subject to reductions under a variety of
circumstances if described in each Fund's Prospectus. To obtain any such
reductions, Quasar must be notified when a sale takes place that would qualify
for the reduced charge. If any Shares sold by Dealer under the terms of this
Agreement are redeemed by a Fund or tendered for redemption or repurchased by a
Fund or by Quasar as agent within seven business days after the date Dealer
purchased such Shares, Dealer shall notify Quasar in writing and shall forfeit
its right to any discount or commission received by or allowed to Dealer from
the original sale. Dealer shall not be entitled to any compensation for its
services under any 12b-1 plan in effect for a Fund unless Dealer has signed a
related agreement.
6. EXPENSES. The Dealer agrees that it will bear all expenses incurred
in connection with its performance of this Agreement.
7. DEALER REGISTRATION.
(a) The Dealer represents and warrants that it (i) is registered as a
broker-dealer under the Securities Exchange Act of 1934 (the "1934 Act") or is
exempt from registration as a broker-dealer under the 1934 Act, (ii) is
qualified as a broker-dealer in all states or other jurisdictions in which it
sells Fund Shares or is exempt from registration as a broker-dealer in all
states or other jurisdictions in which it sells Fund Shares, and, (iii) if it
sells shares in additional states or jurisdictions in the future, will become
qualified to act as a dealer in each such state or jurisdiction prior to selling
any Fund shares or will confirm an exemption from registration as a
broker-dealer in each such state or jurisdiction prior to selling any Fund
shares.
(b) The Dealer shall maintain any filings and licenses required by
federal and state laws to conduct the business contemplated under this
Agreement. The Dealer agrees to notify Quasar
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immediately in the event of any finding that it violated any applicable federal
or state law, rule or regulation arising out of its activities as a
broker-dealer or in connection with this Agreement, or which may otherwise
affect in any material way its ability to act in accordance with the terms of
this Agreement.
(c) If Dealer is registered as a "bank," as such term is defined in
Section 3(a)(6) of the 1934 Act, Dealer further represents and warrants that it
is a member of the Federal Deposit Insurance Corporation ("FDIC") in good
standing and agrees to notify Quasar immediately of any changes in Dealer's
status with the FDIC.
(d) If Dealer is registered as a broker-dealer under the 1934 Act,
Dealer represents and warrants that it is a member in good standing of the
National Association of Securities Dealers, Inc. ("NASD") and that it agrees to
abide by the Conduct Rules of the NASD. Dealer agrees to notify Quasar
immediately in the event of its expulsion or suspension from the NASD.
(e) If Dealer is registered as a broker-dealer under the 1934 Act,
Dealer further represents and warrants that it is a member of the Securities
Investor Protection Corporation ("SIPC") in good standing and agrees to notify
Quasar immediately of any changes in Dealer's status with SIPC.
8. COMPLIANCE WITH FEDERAL AND STATE LAWS.
(a) Dealer will not sell any of the Shares except in compliance with
all applicable federal and state securities and banking laws. In connection with
sales and offers to sell Shares, Dealer will furnish or cause to be furnished to
each person to whom any such sale or offer is made, at or prior to the time of
offering or sale, a copy of the Prospectus and, if requested, the related
Statement of Additional Information ("SAI"). Quasar shall be under no liability
to Dealer except for lack of good faith and for obligations expressly assumed by
Quasar herein. Nothing herein contained, however, shall be deemed to be a
condition, stipulation or provision binding any persons acquiring any security
to waive compliance with, or to relieve the parties hereto from any liability
arising under, the federal securities laws.
(b) Quasar shall, from time to time, inform Dealer as to the states and
jurisdictions in which Quasar believes the Shares have been qualified for sale
under, or are exempt from the requirements of, the respective securities laws of
such states and jurisdictions. Dealer agrees that it will not knowingly offer or
sell Shares in any state or jurisdiction in which such Shares are not qualified,
unless any such offer or sale is made in a transaction that qualifies for an
exemption from registration.
(c) Quasar assumes no responsibility in connection with the
registration of Dealer under the laws of the various states or under federal law
or Dealer's qualification under any such law to offer or sell Shares.
9. UNAUTHORIZED REPRESENTATIONS. No person is authorized to make any
representations concerning Shares of the Funds except those contained in the
Prospectus, SAI and printed
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information issued by each Fund or by Quasar as information supplemental to each
Prospectus. Quasar shall, upon request, supply Dealer with reasonable quantities
of Prospectuses and SAIs. Dealer agrees not to use other advertising or sales
material relating to the Funds unless approved by Quasar in advance of such use.
Neither party shall use the name of the other party in any manner without the
other party's written consent, except as required by any applicable federal or
state law, rule or regulation, and except pursuant to any mutually agreed upon
promotional programs.
10. CONFIRMATIONS. Dealer agrees to send confirmations of orders to its
Customers as required by Rule 10b-10 of the 1934 Act and applicable banking laws
and regulations. In the event the Customers of Dealer place orders directly with
the Fund or any of its agents, confirmations will be sent to such Customers, as
required, by the Fund's transfer agent.
11. RECORDS. Dealer agrees to maintain all records required by
applicable state and federal laws and regulations relating to the offer and sale
of Shares to its Customers, and upon the reasonable request of Quasar, or of the
Funds, to make these records available to Quasar or the Fund's administrator as
reasonably requested. On orders placed directly with the Fund or its agents, the
Fund's transfer agent will maintain all records required by state and federal
laws and regulations relating to the offer and sale of Shares.
12. TAXPAYER IDENTIFICATION NUMBERS. Dealer agrees to obtain any
taxpayer identification number certification from its Customers required under
the Internal Revenue Code and any applicable Treasury regulations, and to
provide Quasar or its designee with timely written notice of any failure to
obtain such taxpayer identification number certification in order to enable the
implementation of any required backup withholding.
13. INDEMNIFICATION.
(a) Dealer shall indemnify and hold harmless Quasar, each Fund, the
transfer agent and administrator of the Funds, and their respective affiliates,
officers, directors, agents, employees and controlling persons from all direct
or indirect liabilities, losses or costs (including reasonable attorneys' fees)
arising from, related to or otherwise connected with any breach by Dealer of any
provision of this Agreement.
(b) Quasar shall indemnify and hold harmless Dealer and its affiliates,
officers, directors, agents, employees and controlling persons from and against
any and all direct or indirect liabilities, losses or costs (including
reasonable attorneys' fees) arising from, related to or otherwise connected with
any breach by Quasar of any provision of this Agreement.
(c) The Agreement of the parties in this Paragraph to indemnify each
other is conditioned upon the party entitled to indemnification (the
"Indemnified Party") notifying the other party (the "Indemnifying Party")
promptly after the summons or other first legal process for any claim as to
which indemnity may be sought is served on the Indemnified Party, unless failure
to give such notice does not prejudice the Indemnifying Party. The Indemnified
Party shall permit the Indemnifying Party to assume the defense of any such
claim or any litigation resulting from it,
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provided that counsel for the Indemnifying Party who shall conduct the defense
of such claim or litigation shall be approved by the Indemnified Party (which
approval shall not unreasonably be withheld), and that the Indemnified Party may
participate in such defense at its expense. The failure of the Indemnified Party
to give notice as provided in this subparagraph (c) shall not relieve the
Indemnifying Party from any liability other than its indemnity obligation under
this Paragraph. No Indemnifying Party, in the defense of any such claim or
litigation, shall, without the written consent of the Indemnified Party, consent
to entry of any judgment or enter into any settlement that does not include as
an unconditional term the giving by the claimant or plaintiff to the Indemnified
Party of a release from all liability in respect to such claim or litigation.
14. NO AGENCY CREATED. Nothing in this Agreement shall be deemed or
construed to make Dealer an employee, agent, representative or partner of any of
the Funds or of Quasar, and Dealer is not authorized to act for Quasar or for
any Fund or to make any representations on Quasar's or the Funds' behalf. Dealer
acknowledges that this Agreement is not exclusive and that Quasar may enter into
similar arrangements with other institutions.
15. TERM, TERMINATION, ASSIGNMENT AND AMENDMENT.
(a) This Agreement shall commence on the date first set forth above and
shall continue in effect with respect to a Fund for more than one year only so
long as such continuance is specifically approved by such Fund at least annually
in conformity with the requirements of the 1940 Act.
(b) Either party to this Agreement may terminate this Agreement by
giving ten days' written notice to the other.
(c) This Agreement shall terminate automatically with respect to any
Fund if (i) any bankruptcy, insolvency or receivership proceedings, or an
assignment for the benefit of creditors, is brought under any federal or state
law by or against Dealer, (ii) Dealer's registration, if any, as a broker-dealer
with the Securities and Exchange Commission is suspended or revoked, (iii)
Dealer's NASD membership, if any, is suspended or revoked, (iv) Dealer is not
registered as a broker-dealer under the 1934 Act or in a state or other
jurisdiction in which it sells Fund Shares and there is not an applicable
exemption from registration as a broker-dealer under the 1934 Act or in the
state or other jurisdiction in which it sells Fund Shares, (v) an application
for a protective decree under the provisions of the Securities Investor
Protection Act of 1970 is filed against Dealer, or (vi) the Distribution
Agreement between Quasar and a Fund is terminated (including as a result of an
assignment). This Agreement also shall terminate automatically in the event of
its "assignment," within the meaning of the 1940 Act.
(d) Termination of this Agreement by operation of this Paragraph 15
shall not affect any unpaid obligations under Paragraphs 3, 5 or 6 of this
Agreement or the liability, legal and indemnity obligations set forth under
Paragraphs 7, 8, 9 or 13 of this Agreement.
(e) This Agreement may be amended by Quasar upon written notice to
Dealer, and Dealer shall be deemed to have consented to such amendment upon
effecting any purchases of Shares for its own account or on behalf of any
Customer's accounts following Dealer's receipt of such notice.
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16. NOTICES. Except as otherwise specifically provided in this
Agreement, 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 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 Quasar shall be sent to:
Quasar Distributors, LLC
Attn: Dealer Agreement Department
000 Xxxx Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
notice to Dealer shall be sent to:
__________________________
__________________________
__________________________
17. 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. 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. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors.
18. GOVERNING LAW. This Agreement shall be construed in accordance with
the laws (without regard, however, to conflicts of law principles) of the State
of Wisconsin, provided that no provision shall be construed in a manner not
consistent with the 1940 Act or any rule or regulation thereunder.
19. ARBITRATION. Any controversy or claim arising out of or relating to
this Agreement, or any breach thereof, shall be settled by arbitration in
acordance with the then existing NASD Code of Arbitration Procedure. Any
arbitration shall be conducted in Milwaukee, Wisconsin, and each arbitrator
shall be from the securities industry. Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof.
20. CONFIDENTIALITY. Quasar and Dealer agree to preserve the
confidentiality of any and all materials and information furnished by either
party in connection with this Agreement. The provisions of this Paragraph shall
not apply to any information which is: (a) independently developed by the
receiving party, provided the receiving party can satisfactorily demonstrate
such independent development with appropriate documentation; (b) known to the
receiving party prior
7
to disclosure by the disclosing party; (c) lawfully disclosed to the receiving
party by a third party not under a separate duty of confidentiality with respect
thereto to the disclosing party; or (d) otherwise publicly available through no
fault or breach by the receiving party.
In accordance with Regulation S-P, the parties hereto will not disclose
any non-public personal information, as defined in Regulation S-P, regarding any
Customer; provided, however, that Dealer or Quasar 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 Dealer or Quasar, or as may
be required by law. Both parties agrees to use reasonable precautions to protect
and prevent the unintentional disclosure of such non-public personal
information.
21. ANTI-MONEY LAUNDERING PROGRAM. Dealer represents and warrants that
it has adopted an anti-money laundering program ("AML Program") that complies
with the Bank Secrecy Act, as amended by the USA PATRIOT Act, and any future
amendments (the "PATRIOT Act," and together with the Bank Secrecy Act, the
"Act"), the rules and regulations under the Act, and the rules, regulations and
regulatory guidance of the SEC, the NASD or any other applicable self-regulatory
organization (collectively, "AML Rules and Regulations"). Dealer further
represents that its AML Program, at a minimum, (1) designates a compliance
officer to administer and oversee the AML Program, (2) provides ongoing employee
training, (3) includes an independent audit function to test the effectiveness
of the AML Program, (4) establishes internal policies, procedures, and controls
that are tailored to its particular business, (5) will include a customer
identification program consistent with the rules under section 326 of the Act,
(6) provides for the filing of all necessary anti-money laundering reports
including, but not limited to, currency transaction reports and suspicious
activity reports, (7) provides for screening all new and existing customers
against the Office of Foreign Asset Control ("OFAC") list and any other
government list that is or becomes required under the Act, and (8) allows for
appropriate regulators to examine Dealer's AML books and records.
22. MARKET TIMING. Dealer represents that it has and will maintain
policies and procedures to detect and prevent any market timing transaction that
contravenes the restrictions or prohibitions on market timing, if any, as found
in the Funds' Prospectus and/or SAI. Dealer acknowledges that it is responsible
for the sales activities of its licensed representatives including, among other
things, improper trading activity in violation of the terms and conditions of
the Fund's Prospectus.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers designated as of the day and year first written
above.
QUASAR DISTRIBUTORS, LLC
By:
---------------------------------
Type Name: Xxxxx Xxxxxxxxx, President
DEALER
By:
---------------------------------
Type Name:
--------------------------
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Schedule A
Names of Funds
FIRST AMERICAN INVESTMENT FUNDS, INC. (available Classes)
Equity Index Fund (A, B C & R) Mid Cap Index Fund (A, B, C & R)
Small Cap Index Fund (A, B, C & R) Small Cap Growth Opportunities Fund (A, B, C & R)
International Fund (A, B, C & R) Small Cap Value Fund (A, B, C & R)
Real Estate Securities Fund (A, B, C & R) Mid Cap Growth Opportunities Fund (A, B, C & R)
Technology Fund (A, B, C) Large Cap Select Fund (A, B, C & R)
Small Cap Select Fund (A, B, C & R) Large Cap Value (A, B, C & R)
Mid Cap Value Fund (A, B, C & R) Equity Income Fund (A, B, C & R)
Large Cap Growth Opportunities Fund (A, B, C & R) U.S. Government Mortgage Fund (A, B, C & R)
Balanced Fund (A, B, C & R) Total Return Bond Fund (A, B, C & R)
High Income Bond Fund (A, B, C & R) Short Term Bond Fund (A)
Core Bond Fund (A, B, C & R) Arizona Tax Free Fund (A & C)
Intermediate Term Bond Fund (A) Colorado Tax Free Fund (A & C)
Tax Free Fund (A & C ) Nebraska Tax Free Fund (A & C)
California Tax Free Fund (A & C ) California Intermediate Tax Free Fund (A)
Minnesota Tax Free Fund (A & C ) Intermediate Tax Free Fund (A)
Missouri Tax Free Bond Fund (A & C) Oregon Intermediate Tax Free Fund (A)
Ohio Tax Free Fund (A & C) Intermediate Government Bond Fund (A)
Colorado Intermediate Tax Free Fund (A) Short Tax Free Fund (A)
Minnesota Intermediate Tax Free Fund (A) Inflation Protected Securities Fund (A, C & R)
FIRST AMERICAN FUNDS, INC. (available Classes)
Prime Obligations Fund (A, B & C) Government Obligations Fund (A)
Treasury Obligations Fund (A) Tax Free Obligations Fund (A)
Treasury Reserve Fund (A)
FIRST AMERICAN STRATEGY FUNDS, INC. (available Classes)
Strategy Income Fund (A, B, C & R) Strategy Growth and Income Fund (A, B, C & R)
Xxxxxxxx Xxxxxx Xxxx (X, X, X & X) Xxxxxxxx Aggressive Growth Fund (A, B, C & R)
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