AAL CAPITAL MANAGEMENT CORPORATION
REGISTERED REPRESENTATIVE'S AGREEMENT
This Registered Representative's Agreement (Agreement) is between AAL Capital
Management Corporation (the Company), 000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxx, XX
00000-0000 and (Representative), Social Security Number
jointly referred to as the "parties."
1. The Company is a broker-dealer, registered with the United States
Securities and Exchange Commission (SEC), is a member of the National
Association of Securities Dealer, Inc. (NASD) and is licensed to do
business as a broker--dealer in all states.
2. The Company is a distributor for The AAL Mutual Funds and the AAL Variable
Annuity, and may, in the future, offer additional products. Herein after,
all approved products are referred to as "Securities."
3. All securities distributed by the Company are registered, as required with
the SEC and any states in which the securities are authorized for sale.
4. Representative is employed by Aid Association for Lutherans (AAL),
Appleton, Wisconsin, pursuant to an employment agreement and is licensed to
sell AAL insurance and annuity products.
5. Representative wishes to be licensed as an associated person with the
Company to offer and sell the securities which may be offered through the
Company and the Company wishes to have Representative offer and sell Such
securities pursuant to the terms of this Agreement.
6. Representative has passed the NASD Series 6 or 7 examination and the Series
63 if required. The Representative will also be properly licensed with all
states in which the Representative will offer the securities.
AGREEMENT
1. Licensing
a. Representative agrees to cooperate with the Company and all regulators
to maintain securities licenses with the NASD and all states in which
the Representative will offer or sell securities. Representative
agrees to offer or sell securities only when the Representative is
promptly licensed with the NASD, licensed with the state in which the
offer or sale is made and only if the securities are registered for
sale in which state. Representative agrees not to offer or sell
securities in any state(s) unless the Representative: (1) has an
effective Registered Representative's Agreement with the Company and
(2) has been notified in writing by the Company of the effectiveness
of the Representative's securities license(s) in the state(s) in which
offers and sales will be made.
b. Representative agrees not to be licensed with any other broker-dealer
while the Representative is licensed with the Company.
c. Representative agrees to pay all costs of licensing and registration
with the NASD and any states or other regulatory authorities. Costs
include: initial license fees, administration fees, examination fees,
study courses, study materials, continuing education, subsequent
renewals, termination fees and any state or local taxes.
Representative consents to the payment of renewal fees through
deductions from commissions payable by the Company or through the AAL
payroll deduction system.
d. Representative will not engage in any activity which would require
registration as an investment adviser with the SEC or any state.
e. Representative will notify the Company within 20 days of any changes
or amendments to the information contained in the Representative's
NASD Form U4 by filing an amended Form U4. The Representative will use
this amended U4 procedure to give notice to the Company of change of
home or branch office address, and/or compensation or employment from
outside business activities (except passive investments).
f. Representative will comply with NASD or state branch office
requirements, including the payment of necessary fees, when
applicable.
g. Representative agrees to comply with all continuing education
requirements.
h. Representative authorizes, to the extent permitted by law, the Company
and/or AAL to at anytime investigate the Representative's financial
and credit record through any consumer reporting agency or bureau of
the Company's choice, and further to make an investigation of
Representative's personal history including character, general
reputation and record of law enforcement activity, if any.
2. Sales Territory
Representative will conduct securities sales activities in accordance with such
policies established by AAL as it pertains to the territory or district in which
the Representative conducts AAL customer sales activities.
3. Sales Activities
a. Representative agrees to sell only securities products authorized for
sale by the Company under this Agreement and will not offer or sell
other securities or other products that may be construed as
securities.
b. Representative agrees to make only representations concerning the
securities with the then current prospectus and sales literature
approved for use by the Company Representative agrees to offer or sell
the securities only in compliance with applicable federal and state
securities and insurance laws. Representative will furnish each person
to whom any such sale or offer is made a copy of the then Current
prospectus, as it may be amended or supplemented. Representative
agrees not to furnish to any person any information related to the
securities offered through the Company which is inconsistent in any
respect with the information contained in a current prospectus. The
Representative will not use any sales literature or cause my
advertisement to be published in any newspaper, posted in any public
place or distributed in any way without the prior consent of the
Company.
c. All securities sales are subject to acceptance in writing by a
designated principal of the Company. The Company reserves the right to
reject any amounts, applications, orders or payments remitted by
Representative and refund to any Customers any payments made by them.
4. Rules and Procedures
a. Representatives shall perform all securities activities through the
Company and in the name of the Company. Representative shall act in
accordance with the rules and regulations of the SEC, the NASD,
applicable state and insurance laws and any rules, regulations and
procedures established by the Company pursuant to those requirements.
Representative is required to be familiar with and understand the
securities laws and regulations of the state(s) in which the
Representative offers or sells securities. This responsibility is in
addition to any requirement to pass any NASD or state securities
examination.
b. Representative must be familiar with and follow all of the procedures
of the Company, which have been developed to comply with the SEC, NASD
and applicable state securities laws. Specifically, but not limited to
the following, Representative agrees to:
i. Transmit to the Company, or its designated fiduciary, within 24
hours of receipt, all monies, orders, applications and
instructions received from all sales and all customers.
Never under any circumstances accept cash or securities from a customer.
The Representative will never commingle any checks or funds received from
customers with any other monies and will not deposit customer funds in
personal, business or trust bank accounts of the Representative.
iii. Advise the Company of any securities trading account over witch
the Representative has discretionary trading authority or in
which the Representative has a financial interest. Representative
will notify the Company's Compliance Department of any existing
securities accounts at the time of the execution of this
Agreement and at the time of the opening of any new account the.
Representative will provide the account number, name and address
of the broker and information as to the type of account.
Representative shall request the broker to notify the Company
directly as to any such accounts and to provide the Company with
duplicate confirmations of all trades upon the Company's request.
iv. Keep all necessary records, for the necessary period of time, as
may be required by the Company, the NASD or other regulatory
body. All such records are considered to be the property of the
Company and shall be subject to the Company upon termination of
this Agreement. Failure to obtain or deliver records is a
violation which may result in disciplinary action.
v. Adhere to all regulatory requirements with respect to the use of
stationery, business cards, telephone numbers, business
advertising and sales literature and correspondence to
shareholders.
vi. Read understand and comply with the specific Compliance rules and
procedures set forth in the Registered Representative Desktop
Answer Book and any other procedural manuals maintained by the
Company.
vii. Maintain the following files and records on a current basis:
A Registered Representative File containing this Agreement, an NASD form
U4, NASD Status Reports confirmations licensing status, correspondence
between the Company and the Representative and any other documents
relating to Representative status as an associated person of the Company.
A Complaint File containing any written or oral complaints received from
clients in connection with the solicitation of a purchase order of
authorized securities products of the Company. Representative understands
any written or oral complaints must be immediately forwarded to the
Compliance Department of the Company.
A Daily Blotter File containing a chronological fist of all securities
transactions.
A separate Customer File for each customer, Mutual Fund and Variable
Annuity, containing, as a minimum, copies of the new account information
form, application, confirmations or customer's statements and other
matters relating to the customer to assist Representative in determining
suitability of customer transactions. Some documents may be stored to
computer disk pursuant to company policy.
A Correspondence File with copies of all correspondence and the name
and address of each person receiving such correspondence.
Representative understands that only correspondence which has been
approved by a principal of the Company may be used.
An Advertising and Sales Literature File containing copies of any of
the Company's pre-approved sales literature or advertising material by
the Representative and the name and address of each person to whom
such material is given. Representative understands not to use any
sales-s literature, advertising materials or correspondence except
sales literature, advertising and correspondence pre-approved and
furnished shed by the Company.
A Commission Statement File containing chronological statements of
commissions paid to the Representative by the Company and must include
the most recent 12b-1 quarterly commission statement showing all
customers assigned to the Representative.
A Compliance Procedures and Memos File containing written compliance
memoranda and related procedures.
5. Commissions
a. The Company will compensate Representi6ve in accordance with the
current Company Schedule Of Commissions which is in effect at the time
of this Agreement, or as thereafter amended. The Company may, it its
option, and with prior notice, change the Schedule of Commissions is
it applies to the business sold by Representative after Such change.
Representative waives any right to receive commissions until such time
as the company receives the commission from the securities
transaction. Commissions and other fees shall be paid it the times set
forth in the Schedule of Commissions.
b. In the event of the termination of Representative's association with
the Company, commissions will be paid for business received in good
form through the date of termination.
c. The Company shall hive the fight to deduct any monies owed to the
Company from the Representative. Such amounts will be deducted from
the Representative's commissions or other fees until such amount, due
to the Company are fully paid.
d. In the event of a loss to a shareholder which is due to an error or
delay attributable to Representative, such loss will be borne by
Representative and may be collected directly from the Representative
or be offset against future commissions or other fees. If
Representative has no commissions or other fees, the Representative
will reimburse the company directly and within 30 days of a request
for payment.
e. If Representative violates this Agreement the company may retain, to
the extent it deems necessary, any commissions or fees Representative
otherwise would be entitled to receive-
f. If Representative fails to surrender the records referred to in
Section 4.biv. immediately following request by the Company or its
authorized representative, the Representative shall not receive any
commissions or other fees and other payments which are, or likely be,
due to the Representative until such records have been delivered.
g. The Company is authorized to make decisions relative to commissions or
other fees or any other credits and debits to Representative's account
as it believes consistent with the terms of this contract provided
that a Representative aggrieved by such a decision can submit any
dispute to arbitration.
h. Representative consents to the payment of marketing materials ordered
by Representative through deduction from commissions or other fees.
6. Independent Contractor
Representative represents to be an independent contractor with respect to the
relationship with the Company, and this Agreement shall not be construed to
create the relationship of employee and employer between Representative and the
Company. Representative shall pay the expenses in connection with all securities
sales activities. The Company shall not be liable for any financial obligations
incurred by Representative in the conduct of securities .activities.
Representative's contract and relationship with the Company are unique and
separate from any agreement the Company may have with any other person. The
Representative fights and obligations with respect to the Company are entirely
dependent upon this Agreement and this Agreement supersedes any and all prior
Agreements between the parties.
7. Indemnification
Representative shall indemnify and hold the Company harmless from any and all
expenses, costs, causes of action or damages resulting from any violation of the
terms of this Agreement including any unauthorized acts or securities
transactions by Representative.
8. No Assignment
This Agreement is personal to Representative, and neither this Agreement nor any
of the benefits to accrue hereunder shall be assigned or transferred in any way,
in whole or in part, without the written consent of the Company.
9. Amendments
No verbal statement made by any party, or any Representative of a party, shall
affect or change this Agreement in any respect. Any modification or amendment to
this Agreement except as to changes in commissions in accordance with Section
5.a., must be made in writing and signed by the parties before it shall become
effective. Any change in commissions will be determined by the Company, as set
forth in Section 5.a. of this Agreement with prior notice of such changes given
to the Representative.
10. Notices
AU notices, requests, consents and other communications hereunder shall be in
writing and shall be deemed duly given if delivered personally or sent by
first-class mail (notice sent by mail shall be deemed to be given on the date
mailed) to the business address of the Company. All notices to the
Representative shall be considered made if personally delivered, or if sent to
the last designated home address of the Representative shown on the Company's
records by first-class mail or through the AAL internal distribution system.
Representative is responsible for maintaining records regarding the current home
address and branch office address (where applicable) by written notification to
the Company.
11. Wisconsin Law
This Agreement shall be interpreted under and in accordance with laws of the
State of Wisconsin.
12. Arbitration
Any dispute between Representative and the Company must be arbitrated and will
be subject to the provisions of the NASD Code of Arbitration Procedure.
13. Termination of Agreement
This Agreement shall be continuous, but may be terminated by either party, with
or without cause, by giving written notice to the other party. Representative
will be furnished a copy of NASD Form U-5 (Uniform Termination Notice) after
termination, which should be retained by Representative and must be provided to
any broker-dealer with whom the Representative subsequently becomes affiliated.
14. Effective Date
The effective date of this Agreement shall be the date on which it is signed by
an authorized agent of the Company.
15. Severability
If any term, provision covenant or condition of this Agreement is held by a
court of competent jurisdiction to be invalid, void or unenforceable, the rest
of this Agreement will remain in full force and effect and shall in no way be
affected impaired or invalidated
Executed on the dates hereinafter set forth.
REGISTERED REPRESENTATIVE
Signature Date
Print Name
AAL CAPITAL MANAGEMENT CORPORATION
By
Signature Date
AAL CAPITAL MANAGEMENT CORPORATION
000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxx, XX 00000-0000
000-000-0000
