MM 539-7
Princor
Financial
Services
Corporation
Logo
Mailing Address: Princor Financial Registered Representatives
Xxx Xxxxxx, XX 00000-0000 Services Corporation Agreement
This agreement by and between Princor Financial Services Corporation
("Princor")and ____________________,registered representative ("RR"),of the City
of ______________________,State of ____________,for the sale of registered
products is effective on the __________day of ___________________,________and is
subject to the following terms and conditions.
Definitions
a."Application"means application or order for the purchase of registered
products.
b. "Commissions"mean payments made pursuant to the commission schedules for
registered products which are in effect at the time of sale.Those
commission schedules are incorporated into this agreement by reference.
c. "Registered products"means investment company shares underwritten by
us,investment company shares and units sold through us, limited partnership
interests,variable life insurance policies,variable annuity contracts,and
such other security products that we are or become qualified to sell.
d. "We","us"and "our"mean Princor.The terms "you"and "your"mean the RR
executing this agreement.
Relationship
a. To the extent permitted by applicable securities laws,your relationship
with us is that of an independent contractor.Nothing contained herein or
elsewhere shall be construed to create an employer/employee relationship.
b. Subject to any applicable regulatory and licensing requirements,you are
responsible for developing your own sales prospects and determining when
and where you will solicit business.
c. You are not required to spend a certain portion of your time as
RR.However,you will be expected to solicit new applications if
appropriate,to service accounts and maintain minimum production
requirements which are hereby incorporated by reference.
d. We reserve the right to reject any applications,orders or payments remitted
by you and to refund to investors all payments made by them.
Duties and Responsibilities You are agreeing to:
a. Solicit sales of products on our behalf.
b. Provide service to our clients.
c. Adhere strictly to the rules of the National Association of Securities
Dealers,Inc.(NASD),the rules and regulations of the Securities and Exchange
Commission (SEC),and all statutes and regulations of the states and of the
United States.
d. Abide by the compliance procedures outlined in the Princor Registered
Representative Manual and all other rules,policies and directives
concerning sales practices and conduct established by us.Said procedures
are incorporated herein by reference and may be amended by us from time to
time.
e. Obtain and maintain NASD registration,SEC registration (if applicable),and
state licenses appropriate for your activities as a RR or other
representative capacity approved by us.
f. Acquire and maintain licenses,bonds and professional liability insurance
coverage for every activity you engage in and every product you sell as
required by us or by the xxx.Xxx must provide us with evidence of such and
of any changes thereto.
g. Limit solicitations of applications to the state(s)in which you are
licensed.Solicitations shall be made only after receivin written
authorization from us.
h. Upon notification from us,pay promptly all re istration and state license
renewal fees and such other costs as may be directed by us.
i. Immediately upon receipt,forward all applications and all payments to
Princor.
j. Upon our demand or termination of this agreement,return all
monies,prospectuses,application forms,client files,manuals,and other
materials or supplies furnished to you by us,or by anyone on our behalf.
k. Allow us immediate access to your books and records which pertain to the
activities contemplated herein.This right of access by Princor shall
survive any termination of this a reement.
l. Allow us to monitor and print all information which has been placed on an
Internet website that belongs to or is associated with you.
Limitations
You may not:
a. Incur any liability or debt against us.
b. Make contracts,promise reinstatement of contracts,or attempt to bind us.
c. Allow more time for payment of any amount by a client,applicant,shareholder
or other third party.
d. Extend credit to any person or entity in connection with a securities
account.
e. Accept payments or deposits from any client,applicant,shareholder or third
party except as expressly authorized by us.
f. Initiate legal proceedings in our name.
g. Make any representations concerning applications or products except as
contained in the current prospectus and supplementary sales materials or
sales literature approved by us.
h. Solicit in any manner in any state for which we have not iven you
pre-approval to sell.
i. Solicit or sell any security,exem t or otherwise,that we have not iven you
written,pre-approval to sell.
j. Send applications,or otherwise place orders,directly to a sponsor or issuer
other than Princor or it's affiliate(s).
Limitation on Investment Advisory Activities
Without our prior written consent,you may not:
a. Apply for registration or become registered as an Investment Advisor or
Investment Advisor Representative.
b. Call yourself a "financial planner",imply that you provide financial
planning services or charge fees for financial planning.
c. Call yourself an "investment advisor","investment counselor"or any other
similar title.
d. Sponsor or engage in any securities related seminars regardless of whether
a fee is charged.
e. Charge a fee for (1)your time or (2)the creation of any document that is in
any way connected with the solicitation and/or sale of a registered
product.
f. Act in an advisory capacity with any client.
Indebtedness
a. Indebtedness means any debt,liability,or debit balance resulting from our
reversal of commissions incurred under any contract or agreement you have
or have had with us.
b. It also means any amount paid by us to settle a complaint or satisfy any
judgment entered by any court,administrative agency or arbitrator related
to any products sold by you,or to a breach of your duties and
responsibilities contained in this agreement whether or not the liability
for settlement or satisfaction of judgment arose after the termination of
this a reement.
c. We may offset any amounts you owe us,or any of our subsidiaries or
affiliates,against any amount we owe you.
d. We will also take actions necessary to collect any Indebtedness you owe us.
Indemnification
You shall indemnify and hold Princor harmless against all
losses,claims,damages,liabilities,actions,cost or expenses insofar as such may
arise or be attributed to activities unrelated to any action by Princor,or
involve non-securities issues arising in disputes unrelated to any action by
Princor.
Arbitration
RR and Princor agree to arbitrate any dispute,claim or controversy that may
arise between RR and Princor,or a customer,or any other person,that is required
to be arbitrated under the statutes,regulations,rules,articles of
incorporation,bylaws of the NASD,SEC,federal or state government authority,or
other self-regulatory organization.Any arbitration award rendered against RR or
Princor may be entered as a judgment in any court of competent jurisdiction.
Commissions
a. We will pay you commissions on commissionable transactions which have been
approved and accepted by us in accordance with the Commission schedule in
effect at the time of sale.
b. Commission schedules may be changed at any time by us.
c. If you received commissions on payments refunded to investors or Princor is
otherwise charged back on commissions it has paid you, you shall repay such
commissions to Princor and Princor is hereby authorized to deduct any
unpaid amounts thereof from commissions payable to you.
Prior Contract
This agreement supersedes all other contracts or agreements between you and
Princor.Your right to receive commissions pursuant to prior contracts is not
affected by this agreement.
Assignment
a. This a reement is not assignable.
b. Other than as provided in Commissions (d)and (e)above,no commission payable
under this agreement may be transferred,xxxx xxx or made payable to anyone
other than you without our prior written approval.
Disciplinary Action and Termination
a.This agreement may be terminated by
either party at any time upon three days written notice sent to the last
known address of the other party.
b.We may censure or fine you,or terminate
your contract without iving prior notice if we determine that you have
committed any fraudulent,dishonest or illegal acts,violated any provision
of this agreement,failed or refused to comply with the rules,regulations
and statues of the federal or state government,SEC,or NASD,or failed or
refused to comply with our supervisory procedures or other instructions.
c. Anyinformation provided to Princor regarding a customer complaint or
obtained by Princor through the exercise of its supervisory
responsibilities may be shared with our affiliate(s).
d. If your NASD registration is terminated for any reason,this a reement will
terminate concurrently.
e. If termination occurs after our annual renewal deadline,you will be
required to pay any NASD and state renewal fees.
Miscellaneous
This agreement shall be governed by the laws of the State of Iowa.
__________________________________ _______________________________________
Officer's Signature Registered Representative Signature
Princor Financial Services Corp.
