THE AAL MUTUAL FUNDS
                           SUB-ADVISORY AGREEMENT FOR
                           THE AAL INTERNATIONAL FUND
                                      WITH
                       OECHSLE INTERNATIONAL ADVISORS, LLC


AGREEMENT made this 30th day of October, 1998, by and among THE AAL MUTUAL FUNDS
(the "Fund"), a Massachusetts Business Trust, AAL Capital Management Corporation
(the "Adviser"),  a Delaware Corporation and OECHSLE INTERNATIONAL ADVISORS, LLC
(the "Sub-Adviser"), a Delaware Limited Liability Corporation.

WITNESSETH:

In  consideration  of the mutual  promises and agreements  herein  contained and
other  good  and  valuable  consideration,   the  receipt  of  which  is  hereby
acknowledged, it is hereby agreed by and among the parties hereto as follows:

1.   In General

The Sub-Adviser agrees, as more fully set forth herein, to act as Sub-Adviser to
the Fund with respect to the  investment and  reinvestment  of the assets of the
Fund's  series  of  shares  described  as  The  AAL  International  Fund.  It is
understood that the Fund may create one or more additional Fund series from time
to time and that this Agreement may be amended by the mutual  written  agreement
of the  parties  to  include  such  additional  funds  under  the  terms to this
Agreement.

2.   Duties and  Obligations  of the  Sub-Adviser  with Respect to Investment of
     Assets of The AAL International Fund

     (a)  Subject to the  succeeding  provisions  of this section and subject to
          the  oversight and review of the Adviser and the direction and control
          of the Board of Trustees ("Trustees") of the Fund, the Sub-Adviser, as
          agent and attorney-in-fact with respect to the Fund, is authorized, in
          its discretion and with prior consultation with the Fund to:

          (i)  Buy, sell,  exchange,  convert,  lend and otherwise  trade in any
               stocks, bonds, currencies, and any other securities or assets;

          (ii) Place  orders  and  negotiate  the  commissions  (if any) for the
               execution of  transactions  in securities or other assets with or
               through such  brokers,  dealers,  underwriters  or issuers as the
               Sub-Adviser may select; including brokers and dealers that may be
               affiliates of the Sub-Adviser, and

          (iii)Enter  into  and  execute  agreements  on  behalf  of  the  Fund,
               relating to the  acquisition or disposition of investment  assets
               and the execution of portfolio  transactions,  including  foreign
               exchange contracts and other  transactional  agreements.  Nothing
               contained  herein,  however,  shall be  deemed to  authorize  the
               Sub-Adviser to take or receive physical possession of any cash or
               securities  held  for the  Fund,  it  being  intended  that  sole
               responsibility  for safekeeping  thereof and the  consummation of
               all such  purchases,  sales,  deliveries,  and  investments  made
               pursuant  to the  Sub-Adviser's  direction  shall  rest  upon the
               Fund's Custodian.

          (iv) Provide  the Adviser and the  Trustees  with such  reports as may
               reasonably be requested in  connection  with the discharge of the
               foregoing  responsibilities  and the  discharge of the  Adviser's
               responsibilities under the Investment Advisory Agreement with the
               Fund and those of AAL Capital  Management  Corporation  under the
               Primary Underwriting Agreement with the Fund.

Written procedures with respect to (i), (ii) and (iii) above may be set forth as
agreed to among the Fund, the Adviser and Sub-Adviser.

     (b)  Any investment  purchases or sales made by the Sub-Adviser  under this
          section shall at all times conform to, and be in accordance  with, any
          requirements  imposed by: (1) the provisions of the Investment Company
          Act of 1940  (the  "Act")  and of any  rules or  regulations  in force
          thereunder;  (2) any  other  applicable  provisions  of  law;  (3) the
          provisions of the Articles of Incorporation and By-Laws of the Fund as
          amended from time to time; (4) any policies and  determinations of the
          Board of Trustees of the Fund; and (5) the fundamental policies of the
          Fund, as reflected in its Registration  Statement under the Act, or as
          amended by the  shareholders of the Fund;  provided that copies of the
          items  referred  to in  clauses  (3),  (4) and  (5)  shall  have  been
          furnished to the Sub-Adviser.

     (c)  The  Sub-Adviser  shall give the Fund the benefit of its best judgment
          and effort in rendering services hereunder.  In the absence of willful
          misfeasance,  bad faith, gross negligence or reckless disregard of its
          obligations and duties ("disabling  conduct") hereunder on the part of
          the  Sub-Adviser  (and its  officers,  directors,  agents,  employees,
          controlling  persons,  shareholders  and any  other  person  or entity
          affiliated with the Sub-Adviser) the Sub-Adviser  shall not be subject
          to liability to the Fund or to any shareholder of the Fund for any act
          or omission in the course of, or  connected  with  rendering  services
          hereunder,  including  without  limitation,  any error of  judgment or
          mistake of law or for any loss  suffered by any of them in  connection
          with the matters to which this Agreement relates, except to the extent
          specified in Section 36 (b) of the Act concerning  loss resulting from
          a breach of fiduciary duty with respect to the receipt of compensation
          for  services.  Except  for such  disabling  conduct,  the Fund  shall
          indemnify  the  Sub-Adviser  (and  its  officers,  directors,  agents,
          employees,  controlling persons,  shareholders and any other person or
          entity affiliated with the Sub-Adviser)  against any liability arising
          from the  Sub-Adviser's  conduct  under this  Agreement  to the extent
          permitted by the Articles of Incorporation and applicable law.

     (d)  Nothing  in  this  Agreement  shall  prevent  the  Sub-Adviser  or any
          "affiliated  person" (as defined in the Act) of the  Sub-Adviser  from
          acting as investment adviser or manager for any other person,  firm or
          corporation and shall not in any way limit or restrict the Sub-Adviser
          or any such  affiliated  person  from  buying,  selling or trading any
          securities for its or their own accounts or for the accounts of others
          for  whom  it or they  may be  acting,  provided,  however,  that  the
          Sub-Adviser  expressly represents that it will undertake no activities
          which, in its judgment,  will adversely  affect the performance of its
          obligations  to the Fund under this  Agreement.  It is agreed that the
          Sub-Adviser shall have no responsibility or liability for the accuracy
          or completeness of the Fund's Registration Statement under the Act and
          the  Securities  Act of 1933  except for  information  supplied by the
          Sub-Adviser for inclusion therein.  The Sub-Adviser shall be deemed to
          be an independent  contractor and, unless otherwise expressly provided
          or  authorized,  have no authority to act or represent the Fund in any
          way or otherwise be deemed an agent of the Fund.

     (e)  In connection  with its duties to arrange for the purchase and sale of
          The  AAL  International   Fund's  securities  and  other  assets,  the
          Sub-Adviser  shall follow the  principles  set forth in any investment
          advisory  agreement  in effect from time to time  between the Fund and
          the Adviser,  provided  that a copy of any such  agreement  shall have
          been  provided  to the  Sub-Adviser.  The  Sub-Adviser  will  promptly
          communicate to the Adviser and to the officers and the Trustees of the
          Fund such information  relating to portfolio  transactions as they may
          reasonably request.

     (f)  The  Sub-Adviser  may place  orders both as to sales and  purchases of
          assets  directly  through any broker or dealer it chooses.  Brokers or
          dealers may be selected who provide brokerage and/or research services
          to the Fund and/or other  accounts over which the  Sub-Adviser  or its
          affiliates  exercise  investment  discretion.  Brokers or dealers  who
          execute  portfolio  transactions  on  behalf  of the Fund may  receive
          commissions  which are in excess of the  amount of  commissions  which
          other  brokers  or dealers  would  have  charged  for  effecting  such
          transactions.   In  order  to  cause  the  Fund  to  pay  such  higher
          commissions,  the  Sub-Adviser  must determine in good faith that such
          commissions  are  reasonable in relation to the value of the brokerage
          and/or research services provided by such executing brokers or dealers
          viewed  in  terms of a  particular  transaction  or the  Sub-Adviser's
          overall responsibilities to the Fund or its other discretionary client
          accounts.

     (g)  On  occasions  when the  Sub-Adviser  deems the  purchase or sale of a
          security  to be in the  best  interest  of the  Fund as well as  other
          clients,  the Sub-Adviser,  to the extent permitted by applicable laws
          and regulations,  may aggregate the securities to be sold or purchased
          in order to obtain the best execution and lower brokerage commissions,
          if any. In such event,  allocation  of the  securities so purchased or
          sold,  as well as the expenses  incurred in the  transaction,  will be
          made  by the  Sub-Adviser  in  the  manner  it  considers  to be  most
          equitable and  consistent  with its fiduciary  obligations to the Fund
          and to such clients.

The Sub-Adviser  may purchase or sell for the Fund,  pursuant to the Fund's Rule
10f-3 Procedures,  any security (including securities of the same class as those
underwritten  or other  securities of the same or related  issuer) for which any
affiliate  of the  Sub-Adviser  acts  as  (1) an  underwriter  (either  as  lead
underwriter or syndicate  member),  both during the pendency of any underwriting
or selling syndicate and thereafter,  or (2) a market maker,  provided that such
security is purchased from a non-affiliated party.

     (h)  The  Sub-Adviser  shall  be  responsible  for  13F  reporting  for the
          securities held by The AAL International Fund.

3.   Allocation of Expenses

During  the  term of this  Agreement,  the  Sub-Adviser  will  pay all  expenses
incurred by it in connection with its activities under this Agreement other than
the cost of securities,  commodities, and other investments (including brokerage
commissions and other transaction  charges,  if any) purchased for the Fund. The
Sub-Adviser agrees that it will furnish the Fund, at the Sub-Adviser's  expense,
with all office space,  facilities,  equipment, and clerical personnel necessary
for carrying out its duties under this Agreement.

4.   Certain Records

Any records  required to be maintained and preserved  pursuant to the provisions
of Rule 31a-1 and Rule 31a-2 under the Act that are  prepared or  maintained  by
the  Sub-Adviser  on behalf of the Fund are the property of the Fund and will be
surrendered promptly to the Fund or Adviser on request.

5.   Reference to the Sub-Adviser

Neither  the Fund,  the Adviser or any  affiliate  or agent  thereof  shall make
reference to or use the name of the  Sub-Adviser or any of its affiliates in any
advertising  or  promotional   materials  without  the  prior  approval  of  the
Sub-Adviser, which approval shall not be unreasonably withheld.



<PAGE>


6.   Compensation of the Sub-Adviser

The Adviser agrees to pay the Sub-Adviser  and the Sub-Adviser  agrees to accept
as full  compensation  for all services  rendered by the  Sub-Adviser as such, a
management fee,  payable  quarterly in arrears and computed on the average daily
net  asset  value of The AAL  International  Fund at rates  shown on  Exhibit  A
attached hereto.

7.   Duration and Termination

     (a)  This Agreement shall go into effect for The AAL International  Fund on
          November  1, 1998 or as soon  thereafter  as it  receives  shareholder
          approval,  and  shall,  unless  terminated  as  hereinafter  provided,
          continue in effect  thereafter  from year to year, but only so long as
          such  continuance  is  specifically  approved  at least  annually by a
          majority  of the  Fund's  Board  of  Trustees,  or by the  vote of the
          holders of a  "majority"  (as  defined in the Act) of the  outstanding
          voting  securities of the Fund, with respect to The AAL  International
          Fund,  and, in either  case,  a majority of the  Trustees  who are not
          parties to this Agreement or  "interested  persons" (as defined in the
          Act) of any such  party  cast in person at a  meeting  called  for the
          purpose of voting on such approval.

     (b)  This  Agreement  may be  terminated  by the  Sub-Adviser  at any  time
          without  penalty upon giving the Fund and the Adviser sixty (60) days'
          written  notice  (which  notice may be waived by the Fund and Adviser)
          and may be  terminated  by the Fund or the Adviser at any time without
          penalty upon giving the  Sub-Adviser  sixty (60) days' written  notice
          (which  notice may be waived by the  Sub-Adviser),  provided that such
          termination by the Fund shall be directed or approved by the vote of a
          majority  of all of the  Trustees in office at the time or by the vote
          of the  holders  of a majority  (as  defined in the Act) of the voting
          securities of the Fund, with respect to The AAL International Fund, or
          with respect to any Fund by the vote of a majority of the  outstanding
          shares of such Fund. This Agreement shall  automatically  terminate in
          the event of its  "assignment" (as defined in the Act). This Agreement
          will  also  terminate  in  the  event  that  the  Investment  Advisory
          Agreement is terminated.

8.   Agreement Binding Only On Fund Property

The  Sub-Adviser  understands  that the  obligations  of this  Agreement are not
binding upon any  shareholder of the Fund  personally,  but bind only the Fund's
property; the Sub-Adviser represents that it has notice of the provisions of the
Fund's Articles of Incorporation  disclaiming  shareholder liability for acts or
obligations of the Fund.



<PAGE>


9.   Action By An Individual Fund

The  provisions of this  Agreement and any  amendments  hereto with respect to a
Series may be approved by the  shareholders of that Series and become  effective
with  respect to the assets of that  Series  without the  necessity  of approval
thereof by  shareholders  of any other Series.  The Adviser  represents that the
holders of a majority (as defined in the "Act") of The AAL  International  Fund,
will vote on approval of the entry into this Agreement on behalf of said fund.

10.  Notices

The  Sub-Adviser  agrees to promptly notify the Adviser of the occurrence of any
of the following events:

     (a)  any change in any of the Sub-Adviser's members or portfolio managers;

     (b)  the Sub-Adviser fails to be registered as an investment  adviser under
          the  Advisers Act or under the laws of any  jurisdiction  in which the
          Sub-Adviser  is required to be registered as an investment  adviser in
          order to perform its obligations under this Agreement;

     (c)  the  Sub-Adviser  is the  subject  of any  action,  suit,  proceeding,
          inquiry or investigation at law or in equity, before any court, public
          board or body, involving the affairs of The AAL International Fund, or

     (d)  any change in ownership or control, or membership of the Sub-Adviser.

11.  Manner of Notice

Any notice given  hereunder  shall be in writing and may be served by being sent
by telex, facsimile or other electronic transmission, or sent by registered mail
or by  courier  to the  address  set  forth  below for the party for which it is
intended.  A notice  served by mail  shall be deemed  served  seven  days  after
mailing and in the case of telex,  facsimile or other  electronic  transmission,
twelve  hours  after  confirmed  receipt  thereof.  Addresses  for notice may be
changed by written notice to the other party.



<PAGE>


The Adviser

Ronald G. Anderson, President and Chief Executive Officer
AAL Capital Management Corporation
222 West College Ave.
Appleton, WI 54919-0007



The Sub-Adviser

Stephen Langer
Oechsle International Advisors, LLC
One International Place
Boston, MA 02110
Fax (617) 330-8620


No provisions of this Agreement may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by both parties.

The Adviser acknowledges receipt of the Sub-Adviser's Part II, Form ADV at least
48 hours in advance of signing this Agreement.

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 governed by the laws of the State of Wisconsin.

IN WITNESS WHEREOF,  the parties hereto have caused the foregoing  instrument to
be executed  by their duly  authorized  officers  and their seals to be hereunto
affixed, all as of the day and year first above written.



<PAGE>


THE AAL MUTUAL FUNDS


/s/ Ronald. G. Anderson                               
--------------------------------------------
Ronald G. Anderson, President



ATTEST:


/s/ Joseph F. Wreschnig                               
--------------------------------------------
Joseph F. Wreschnig, Assistant Secretary



AAL Capital Management Corporation


/s/ Ronald G. Anderson                                
--------------------------------------------
Ronald G. Anderson, President



ATTEST:


/s/ Joseph F. Wreschnig                               
--------------------------------------------
Joseph F. Wreschnig, Secretary



OECHSLE INTERNATIONAL ADVISORS, LLC by its Member Manager, 
OECHSLE GROUP, LLC


/s/ L. Sean Roche                                     
--------------------------------------------
L. Sean Roche, Managing Principal



ATTEST


/s/ Rachel P. Gutierrez                               
--------------------------------------------
Rachel P. Gutierrez


<PAGE>


                                    EXHIBIT A
                                       TO
                              THE AAL Mutual Funds
                             SUB-ADVISORY AGREEMENT
                            (Dated October 30, 1998)


1.   The AAL International Fund

The management fee for The AAL International Fund, payable to the Sub-Adviser by
the Adviser,  calculated in accordance  with paragraph 6 of The AAL Mutual Funds
Sub-Advisory Agreement, shall be at the annual rate of:


     0.40 of 1% of the average daily net assets of $50 million or less;

     0.35 of 1% of the average daily net assets over $50 million.