The Principal Financial Group Princor Financial Registered Representative's
Xxx Xxxxxx, XX 00000-0000 Services Corporation Agreement
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This agreement by and between Princor Financial Services Corporation
(herein referred to as "Princor" and ___________________________________,
registered representative (herein referred to as "RR", of the City of
___________________________, State of ___________________, for the sale of
registered products is effective on the ______ day of __________________, 19____
and is subject to the following terms and conditions.
Definitions
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a. Throughout this Agreement, the terms "we", "us" and "our" mean Princor. The
terms "you" and "your" mean the RR executing this agreement.
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. Application means application or order for the purchase of registered
products.
d. Registered products means investment company shares underwritten by us,
investment company shares and units sold through us, limited partnership
interest, variable life insurance policies, variable annuity contracts, and
such other security products that we are or become qualified to sell.
e. "Advertising", "sales literature" and "sales material" shall have the
meanings given by the applicable securities laws.
Relationship
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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
and to service accounts.
d. We reserve the right to reject any applications, orders or payments
remitted by you and to refund to investors payments made by them.
Duties and Responsibilities
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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 acts and regulations of the Securities and
Exchange Commission (SEC), and all statutes and regulations of the states
and of the United States.
d. Follow our Field Representative OSJ Procedures (MM 66) and all other rules,
policies and directives concerning sales practices and conduct established
by us. Said procedures are incorporated herein by reference.
e. Obtain NASD registration and state licenses appropriate for your activities
as RR.
f. Acquire licenses, bonds and professional liability insurance coverage as
required by us or by the law. 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 receiving written
authorization from us.
h. Upon notification from us, pay promptly all registration 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.
j. Upon our demand or termination of this agreement, return all monies,
prospectuses, application forms, manuals, and other materials or supplies
furnished to you by us, or by anyone on our behalf.
Limitations
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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 given you written,
pre-approval to sell.
i. Solicit or sell any security, exempt or otherwise, that we have not given
you written, pre-approval to sell.
j. Send applications, or otherwise place orders, directly to a sponsor or
issuer other than Princor.
k. Call yourself a "financial planner", imply that you provide financial
planning services or charge fees for financial planning services unless
you first register as an investment advisor. We must review applications
for registration. You must comply with applicable federal and state
regulations.
Commissions
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a. We will pay you commissions on commissionable transactions which have been
approved and accepted by us.
b. The commission rate will be determined by the commission schedules in
effect at the time of the sale.
c. Commission schedules may be changed at any time by us.
d. We may reduce the amount we pay you by an amount you owe us or our
affiliate(s).
Prior Contract
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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
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a. This agreement is not assignable.
b. Other than as provided in Commissions (d) above, no commission payable
under this agreement may be transferred, assigned or made payable to other
than you without our prior written approval.
Disciplinary Action and Termination
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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 giving 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 statutes of the federal or state
government, SEC, or NASD, or failed or refused to comply with our
supervisory procedures or other instructions.
c. If your NASD registration is terminated for any reason, this agreement will
terminate concurrently.
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Princor Financial Services Corp. Registered Representative Signature
