Document:

exv4w1

 

EXHIBIT 4.1

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program
Documents contained herein, each such document dated as of this 8th day of
October, 2004, relating to the issuance by Principal Life Income Fundings Trust
2004-58 (the “Trust”) of Notes to investors under Principal Life’s secured
notes program;

     WHEREAS, the Trust is a trust and will be organized under and its
activities will be governed by the provisions of the Trust Agreement (set forth
in Section A of this Omnibus Instrument), dated as of the date of the Pricing
Supplement (attached to this Omnibus Instrument as Exhibit D) (the “Pricing
Supplement”), by and between the parties thereto indicated in Section F herein;

     WHEREAS, certain expense and indemnification arrangements between
Principal Life and the Trustee, on behalf of itself and on behalf of the Trust,
are governed pursuant to the provisions of the Expense and Indemnity Agreement
dated as of March 5, 2004, by and between Principal Life and the Trustee;

     WHEREAS, certain licensing arrangements between the Trust and Principal
Financial Services, Inc. will be governed pursuant to the provisions of the
License Agreement (set forth in Section B of this Omnibus Instrument), dated as
of the date of the Pricing Supplement, by and between the parties thereto
indicated in Section F herein;

     WHEREAS, certain custodial arrangements of the Funding Agreement and the
Guarantee will be governed pursuant to the provisions of the Custodial
Agreement (the “Custodial Agreement”) dated as of March 5, 2004 by and among
Bankers Trust Company, N.A., acting as custodian (the “Custodian”), the
Indenture Trustee and the Trustee, on behalf of the Trust;

     WHEREAS, the Notes will be issued pursuant to the Indenture (set forth in
Section C of this Omnibus Instrument), dated as of the Original Issue Date, by
and between the parties thereto indicated in Section F herein;

     WHEREAS, the sale of the Notes will be governed by the Terms Agreement
(set forth in Section D of this Omnibus Instrument), dated the date of the
Pricing Supplement, by and among the parties thereto indicated in Section F
herein; and

     WHEREAS, certain agreements relating to the Notes, the Funding Agreement
and the Guarantee are set forth in the Coordination Agreement (set forth in
Section E of this Omnibus Instrument), dated as of the date of the Pricing
Supplement, by and among the parties thereto indicated in Section F herein.

     All capitalized terms used herein and not otherwise defined will have the
meanings set forth in the Indenture.

[Remainder of Page Left Intentionally Blank.]

 

 

SECTION A

TRUST AGREEMENT

     This TRUST AGREEMENT (this “Trust Agreement”), dated as of the date of the
Pricing Supplement, is entered into by and between GSS Holdings II, Inc., a
Delaware corporation, as trust beneficial owner (the “Trust Beneficial Owner”),
and U.S. Bank Trust National Association, a national banking association, as
Trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Trust Beneficial Owner and the Trustee desire to authorize
the issuance of a Trust Beneficial Interest and a series of Notes in connection
with the entry into this Trust Agreement;

     WHEREAS, all things necessary to make this Trust Agreement a valid and
legally binding agreement of the Trustee and the Trust Beneficial Owner,
enforceable in accordance with its terms, have been done;

     WHEREAS, the parties intend to provide for, among other things, (i) the
issuance and sale of the Notes (pursuant to the Indenture, the Distribution
Agreement and the related Terms Agreement) and the Trust Beneficial Interest,
(ii) the use of the proceeds of the sale of the Notes and Trust Beneficial
Interest to acquire the Funding Agreement, the payment obligations of which
will be fully and unconditionally guaranteed by the Guarantee, and (iii) all
other actions deemed necessary or desirable in connection with the transactions
contemplated by this Trust Agreement; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Trust Terms, dated as of March 5, 2004, and attached to the
Omnibus Instrument as Exhibit A (the “Standard Trust Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Trust Terms (the Standard
Trust Terms and this Trust Agreement, collectively, the “Trust Agreement”).

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Trust Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference with the
same force and effect as though fully set forth herein. To the extent that the
terms set forth in Article 2 of this Trust Agreement are inconsistent with the
terms of the Standard Trust Terms, the terms set forth in Article 2 herein
shall apply.

A-1

 

ARTICLE 2

     Section 2.01 Name. The Trust created and governed by the Trust Agreement
shall be the trust specified in the Omnibus Instrument. The name of the Trust
shall be the name specified in the first paragraph of the Omnibus Instrument,
as such name may be modified from time to time by the Trustee following written
notice to the Trust Beneficial Owner.

     Section 2.02 Jurisdiction. The Trust is hereby organized in, and formed
under and pursuant to, the laws of the State of New York.

     Section 2.03 Initial Capital Contribution and Ownership. The Trust
Beneficial Owner has paid or has caused to be paid to, or to an account at the
direction of, the Trustee, on the date hereof, the sum of $15 (or, in the case
of Notes issued with original issue discount, such amount multiplied by the
issue price of the Notes). The Trustee hereby acknowledges receipt in trust
from the Trust Beneficial Owner, as of the date hereof, of the foregoing
contribution, which shall be used along with the proceeds from the sale of the
series of Notes to purchase the Funding Agreement. Upon the creation of the
Trust and the registration of the Trust Beneficial Interest in the Securities
Register (as defined in the Trust Agreement) by the Registrar in the name of
the Trust Beneficial Owner, the Trust Beneficial Owner shall be the sole
beneficial owner of the Trust.

     Section 2.04 Acknowledgment. The Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in the Standard
Trust Terms incorporated herein.

     Section 2.05 Additional Terms.

     None

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Trust Agreement will enter into the Trust Agreement by
executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Trustee and the Trust Beneficial
Owner hereby agree that the Trust Agreement will constitute a legal, valid and
binding agreement between the Trustee and the Trust Beneficial Owner.

     All terms relating to the Trust or the series of Notes not otherwise
included in the Trust Agreement will be as specified in the Omnibus Instrument
or Pricing Supplement, as indicated herein.

A-2

 

     Section 2.07 Governing Law. The Trust Agreement will be governed by, and
construed in accordance with, the laws of the State of New York.

     Section 2.08 Counterparts. The Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

A-3

 

SECTION B

LICENSE AGREEMENT

     This LICENSE AGREEMENT (this “License Agreement”), dated as of the date of
the Pricing Supplement, is entered into by and between Principal Financial
Services, Inc., an Iowa corporation with its principal place of business at 711
High Street, Des Moines, Iowa 50392 (the “Licensor”), and the Principal Life
Income Fundings Trust specified in the Omnibus Instrument (the “Licensee”).

W I T N E S S E T H:

     WHEREAS, the Licensor is the owner of certain trademarks and service marks
and registrations and pending applications therefor, and may acquire additional
trademarks and service marks in the future, all as described more fully below;

     WHEREAS, the Licensee desires to use certain of the Licensor’s trademarks
and service marks in connection with the Licensee’s activities, as described
more fully below;

     WHEREAS, the Licensor and the Licensee wish to formalize the agreement
between them regarding the Licensee’s use of the Licensor’s marks; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard License Agreement Terms, dated March 5, 2004, and attached to
the Omnibus Instrument as Exhibit B (the “Standard License Agreement Terms”)
and all capitalized terms not otherwise defined herein (including the recitals
hereof) shall have the meanings set forth in the Standard License Agreement
Terms (the Standard License Agreement Terms and this License Agreement,
collectively, the “License Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and for other good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard License Agreement Terms (except to the
extent expressly modified herein) are hereby incorporated herein by reference
with the same force and effect as though fully set forth herein. To the extent
that the terms set forth in Article 2 of this License Agreement are
inconsistent with the terms of the Standard License Agreement Terms, the terms
set forth in Article 2 herein shall apply.

ARTICLE 2

     Section 2.01 Additional Terms.

     None

B-1

 

     Section 2.02 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the License Agreement will enter into the License Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Licensor and the Licensee hereby
agree that the License Agreement will constitute a legal, valid and binding
agreement between the Licensor and the Licensee.

     All terms relating to the Trust or the Notes not otherwise included in the
License Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.03 Counterparts. The License Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

B-2

 

SECTION C

INDENTURE

     This INDENTURE (this “Indenture”) is entered into as of the Original Issue
Date by and between the Principal Life Income Fundings Trust specified in the
Omnibus Instrument (the “Trust”) and Citibank, N.A., as indenture trustee (the
“Indenture Trustee”).

     Citibank, N.A., in its capacity as indenture trustee, hereby accepts its
role as Registrar, Paying Agent, Transfer Agent and Calculation Agent
hereunder.

     References herein to “Indenture Trustee,” “Registrar,” “Transfer Agent,”
“Paying Agent” or “Calculation Agent” shall include the permitted successors
and assigns of any such entity from time to time.

W I T N E S S E T H:

     WHEREAS, the Trust has duly authorized the execution and delivery of this
Indenture to provide for the issuance of Notes;

     WHEREAS, all things necessary to make this Indenture a valid and legally
binding agreement of the Trust and the other parties to this Indenture,
enforceable in accordance with its terms, have been done, and the Trust
proposes to do all things necessary to make the Notes, when executed by the
Trust and authenticated and delivered pursuant hereto, valid and legally
binding obligations of the Trust as hereinafter provided; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Indenture Terms, dated as of March 5, 2004, and attached to
the Omnibus Instrument as Exhibit C (the “Standard Indenture Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Indenture Terms (the Standard
Indenture Terms and this Indenture, collectively, the “Indenture”).

     NOW, THEREFORE, for and in consideration of the premises and the purchase
of the Notes by the Holders thereof, it is mutually covenanted and agreed by
each of the parties hereto as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Indenture Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference (with
the same force and effect as though fully set forth herein). To the extent
that the terms set forth in Article 2 of this Indenture are inconsistent with
the terms of the Standard Indenture Terms, the terms set forth in Article 2
herein shall apply.

C-1

 

ARTICLE 2

     Section 2.01 Agreement to be Bound. Each of the Trust, the Indenture
Trustee, the Registrar, the Transfer Agent, the Paying Agent and the
Calculation Agent hereby agrees to be bound by all of the terms, provisions and
agreements set forth in the Indenture, with respect to all matters contemplated
in the Indenture, including, without limitation, those relating to the issuance
of the below-referenced Notes.

     Section 2.02 Designation of the Trust, the Notes, the Funding Agreement
and the Guarantee. The Trust created by the Trust Agreement and referred to in
the Indenture is the Principal Life Income Fundings Trust specified in the
Omnibus Instrument. The Notes issued by the Trust and governed by the
Indenture shall be the Notes specified in the Pricing Supplement. The Funding
Agreement designated hereby is the Funding Agreement designated in the Pricing
Supplement dated as of the Original Issue Date between the Trust and Principal
Life. The Guarantee designated hereby is the Guarantee dated as of the Original
Issue Date of PFG.

     Section 2.03 Additional Terms.

     None

     Section 2.04 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Indenture will enter into the Indenture by executing
the Omnibus Instrument.

     By executing the Omnibus Instrument, the Indenture Trustee, the Registrar,
the Transfer Agent, the Paying Agent, the Calculation Agent and the Trust
hereby agree that the Indenture will constitute a legal, valid and binding
agreement between the Indenture Trustee, the Registrar, the Transfer Agent, the
Paying Agent, the Calculation Agent and the Trust.

     All terms relating to the Trust or the Notes not otherwise included in the
Indenture will be as specified in the Omnibus Instrument or Pricing Supplement,
as indicated herein.

     Section 2.05 Counterparts. The Indenture, through the Omnibus Instrument,
may be executed in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute one
and the same instrument.

[Remainder of Page Left Intentionally Blank.]

C-2

 

SECTION D

TERMS AGREEMENT

     This TERMS AGREEMENT (this “Terms Agreement”) is entered into as of the
Original Issue Date by and among Principal Life Insurance Company (“Principal
Life”), Principal Financial Group, Inc. (“PFG”), the Principal Life Income
Fundings Trust specified in the Omnibus Instrument (the “Trust”) and the
Purchasing Agent specified in the Pricing Supplement (the “Purchasing Agent”).

W I T N E S S E T H:

     WHEREAS, Principal Life, PFG and the agents named therein, including the
Purchasing Agent have entered into that certain Distribution Agreement dated
March 5, 2004 (the “Distribution Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, each of the parties hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. The provisions of the
Distribution Agreement and the related definitions (unless otherwise specified
herein) are incorporated by reference herein and shall be deemed to have the
same force and effect as if set forth in full herein.

ARTICLE 2

     Section 2.01 Addition of Trust as Party to Distribution Agreement.

     Pursuant to Section 1 of the Distribution Agreement, each of the
undersigned parties hereby acknowledges and agrees that the Trust, upon
execution hereof by the Trust and the other parties to the Distribution
Agreement (other than any other trusts organized in connection with the
Registration Statement that are party thereto as of the date hereof), shall
become a Trust for purposes of the Distribution Agreement in accordance with
the terms thereof, in respect of the Notes, with all the authority, rights,
powers, duties and obligations of a Trust under the Distribution Agreement.
The Trust confirms that any agreement, covenant, acknowledgment, representation
or warranty under the Distribution Agreement applicable to the Trust is made by
the Trust at the date hereof, unless another time or times are specified in the
Distribution Agreement, in which case such agreement, covenant, acknowledgment,
representation or warranty shall be deemed to be confirmed by the Trust at such
specified time or times.

     Section 2.02 Purchase of Notes as Principal.

     (a) Subject in all respects to the terms and conditions of the
Distribution Agreement, the Trust hereby agrees to sell to the Purchasing Agent
and the Purchasing Agent hereby agrees to purchase the Notes having the terms
specified in the Pricing Supplement relating to such Notes.

D-1

 

     (b) In connection with any purchase of Notes from the Trust by the
Purchasing Agent as principal, the parties agrees that the items specified on
Schedule I of the Omnibus Instrument will be delivered as of the Settlement
Date.

     Section 2.03 Termination. Upon the termination of this Terms Agreement
pursuant to Section 13(b) of the Distribution Agreement the undersigned parties
hereby agree to that the expenses reasonably incurred prior to or in connection
with such termination will be borne by Principal Life and PFG.

     Section 2.04 Governing Law. This Terms Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof.

     Section 2.05 Notices. For purposes of Section 14 of the Distribution
Agreement, the Trust’s communications details are as set forth in Section E of
the Omnibus Instrument.

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Terms Agreement will enter into this Terms Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Terms Agreement will constitute a legal, valid and binding agreement by and
among such parties.

     All terms relating to the Trust or the Notes not otherwise included in
this Terms Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.07 Counterparts. This Terms Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Left Intentionally Blank.]

D-2

 

SECTION E

COORDINATION AGREEMENT

     This COORDINATION AGREEMENT (this “Coordination Agreement”), dated as of
the date of the Pricing Supplement, is entered into by and among Principal Life
Insurance Company (“Principal Life”), Principal Financial Group, Inc. (“PFG”),
the Principal Life Income Fundings Trust specified in the Omnibus Instrument
(the “Trust”), Principal Financial Services, Inc. (“PFSI”), Bankers Trust
Company, N.A. and Citibank, N.A., as indenture trustee (the “Indenture
Trustee”).

W I T N E S S E T H

     WHEREAS, the Trust will enter into the Funding Agreement with Principal
Life dated as of the Original Issue Date specified in the Pricing Supplement;

     WHEREAS, PFG will issue a Guarantee to the Trust as of the Original Issue
Date specified in the Pricing Supplement, which will fully and unconditionally
guarantee the payment obligations of Principal Life under the Funding
Agreement;

     WHEREAS, the Purchasing Agent (as defined in the Distribution Agreement)
have agreed to sell the Notes in accordance with the Registration Statement;

     WHEREAS, the Trust intends to issue the Notes in accordance with the
Indenture, to collaterally assign to, and grant a security interest in, the
Funding Agreement and the Guarantee to and in favor of the Indenture Trustee in
accordance with the Indenture to secure payment of the Notes;

     WHEREAS, the Custodian will hold the Funding Agreement and the Guarantee
on behalf of the Indenture Trustee pursuant to the terms of the Custodial
Agreement; and

     WHEREAS, certain licensing arrangements between the Trust and PFSI will be
governed pursuant to the provisions of the License Agreement.

     NOW, THEREFORE, to give effect to the agreements and arrangements
established under the Terms Agreement included in the Omnibus Instrument, as
applicable, the Trust Agreement, the Indenture and the Notes, and in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the sufficiency of which are hereby
acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Delivery of the Funding Agreement and the Guarantee. The
Trust hereby authorizes the Custodian, on behalf of the Indenture Trustee, to
receive the Funding Agreement from Principal Life and the Guarantee from PFG
pursuant to the assignment of the Funding Agreement and Guarantee (the
“Assignment”), to be entered into on the Original Issue Date, included in the
closing instrument dated as of the Original Issue Date (the “Closing
Instrument”).

E-1

 

     Section 1.02 Issuance and Purchase of the Notes.

     (a) Delivery of the Funding Agreement and the Guarantee to the Custodian,
on behalf of the Indenture Trustee, pursuant to the Assignment or execution of
the cross receipt contained in the Closing Instrument shall be confirmation of
payment by the Trust for the Funding Agreement.

     (b) The Trust hereby directs the Indenture Trustee, upon receipt by the
Custodian, on behalf of the Indenture Trustee, of the Funding Agreement
pursuant to the Assignment and upon receipt by the Custodian, on behalf of the
Indenture Trustee, of the Guarantee, (i) to authenticate the certificates
representing the Notes (the “Notes Certificates”) in accordance with the
Indenture and (ii) to (A) deliver each relevant Notes Certificate to the
clearing system or systems identified in each such Notes Certificate, or to the
nominee of such clearing system, or the custodian thereof, for credit to such
accounts as the Purchasing Agent may direct, or (B) deliver each relevant Notes
Certificate to the purchasers thereof as identified by the Purchasing Agent.

ARTICLE 2

     Section 2.01 Directions Regarding Periodic Payments. As registered owner
of the Funding Agreement and the Guarantee as collateral securing payments on
the Notes, the Indenture Trustee will receive payments on the Funding Agreement
and the Guarantee on behalf of the Trust. The Trust hereby directs the
Indenture Trustee to use such funds to make payments on behalf of the Trust
pursuant to the Trust Agreement and the Indenture.

     Section 2.02 Maturity of the Funding Agreement. Upon the maturity of the
Funding Agreement and the return of funds thereunder, the Trust hereby directs
the Indenture Trustee to set aside from such funds an amount sufficient for the
repayment of the outstanding principal on the Notes and Trust Beneficial
Interest when due.

ARTICLE 3

     Section 3.01 Certificates. Principal Life hereby agrees to deliver an
Officer’s Certificate, a copy of which is attached hereto as Exhibit E, on a
quarterly basis to any rating agency currently rating the Program. The Trust
hereby agrees to deliver an Officer’s Certificate, a copy of which is attached
hereto as Exhibit F, on a quarterly basis to any rating agency currently rating
the Program.

     Section 3.02 Filings. Principal Life hereby covenants to file, or cause
to be filed, in a timely manner on behalf of the Trust all reports,
certifications or similar filings required under the Securities Exchange Act of
1934, as amended.

ARTICLE 4

     Section 4.01 No Additional Liability. Nothing in this Coordination
Agreement shall impose any liability or obligation on the part of any party to
this Coordination Agreement to make any payment or disbursement in addition to
any liability or obligation such party has under the Program Documents, except
to the extent that a party has actually received funds which it is obligated to
disburse pursuant to this Coordination Agreement.

E-2

 

     Section 4.02 No Conflict. This Coordination Agreement is intended to be
in furtherance of the agreements reflected in the documents related to the
Program Documents, and not in conflict. To the extent that a provision of this
Coordination Agreement conflicts with the provisions of one or more Program
Documents, the provisions of such Program Documents shall govern.

     Section 4.03 Governing Law. This Coordination Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to the principles of conflicts of laws thereof.

     Section 4.04 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.05 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.06 Notices. All demands, notices and communications under this
Coordination Agreement shall be in writing and shall be deemed to have been
duly given upon receipt at the addresses set forth below:

	 	 	 
	To the Trust:
	 	 
	 
	

	 	Principal Life Income Fundings
Trust (followed by the number set forth in the Omnibus Instrument)
	

	 	c/o U.S. Bank Trust National Association
	

	 	100 Wall Street, 16th Floor
	

	 	New York, New York 10005
	

	 	Attention: Corporate Trust Administration
	

	 	Telephone: (212) 361-2458
	

	 	Facsimile: (212) 809-5459 and (212) 509-3384
	 
	To the Indenture Trustee:
	 	 
	 
	

	 	Citibank, N.A.
	

	 	Citibank Agency & Trust
	

	 	111 Wall Street, 14th Floor, Zone 3
	

	 	New York, New York 10005
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 657-4703
	

	 	Facsimile: (212) 657-3862

E-3

 

	 	 	 
	To Principal Life:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To PFG:

	 
	

	 	Principal Financial Group, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Principal Financial
Services, Inc.:
	 	 
	 
	

	 	Principal Financial Services, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011

E-4

 

	 	 	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Bankers Trust Company, N.A:
	 	 
	 
	

	 	Bankers Trust Company, N.A.
	

	 	665 Locust Street
	

	 	Des Moines, Iowa 50309-3702
	

	 	Attention: Angela C. Brick
	

	 	Telephone: (515) 245-2820
	

	 	Facsimile: (515) 247-2101

or at such other address as shall be designated by any such party in a written
notice to the other parties.

ARTICLE 5

     Section 5.01 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Coordination Agreement will enter into this
Coordination Agreement by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Coordination Agreement will constitute a legal, valid and binding agreement by
and among the Trust, Principal Life, PFG, PFSI, the Custodian and the Indenture
Trustee.

     All terms relating to the Trust or the Notes not otherwise included in
this Coordination Agreement will be as specified in the Omnibus Instrument or
Pricing Supplement, as indicated herein.

     Section 5.02 Acknowledgment. Principal Life hereby acknowledges Section
2.10 of the Indenture and Section 6.1 of the Custodial Agreement. The Trust
hereby acknowledges and agrees to the terms of the Custodial Agreement.

     Section 5.03 Counterparts. This Coordination Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

     Section 5.04 Capitalized Terms. All capitalized terms used herein and not
otherwise defined in this Coordination Agreement will have the meanings set
forth in the Indenture.

[Remainder of Page Left Intentionally Blank.]

E-5

 

SECTION F

MISCELLANEOUS AND EXECUTION PAGES

     This Omnibus Instrument may be executed by each of the parties hereto in
any number of counterparts, and by each of the parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Each signatory, by its execution hereof, does hereby become a party to
each of the agreements or indenture identified for such party as of the date
specified in such agreements or indenture.

     IN WITNESS WHEREOF, the undersigned have executed this Omnibus Instrument
with respect to the Notes as of the date first written above.

	 	 	 	 	 
	 	PRINCIPAL LIFE INSURANCE COMPANY (in

executing below agrees and becomes a party

to (i) the Terms Agreement set forth in

Section D herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Christopher P. Freese
 	 
	 	 	Name:  	Christopher P. Freese 	 
	 	 	Title:  	Officer 	 
	 
	 	PRINCIPAL FINANCIAL GROUP, INC. (in

executing below agrees and becomes a party

to (i) the Terms Agreement set forth in

Section D herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 
	 	PRINCIPAL FINANCIAL SERVICES, INC. (in

executing below agrees and becomes a party

to (i) the License Agreement set forth in

Section B herein and (ii) the Coordination

Agreement set forth in Section E herein)

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 

[Execution Page 1 of 3]

 

 

	 	 	 	 	 
	 	THE PRINCIPAL LIFE INCOME FUNDINGS TRUST

DESIGNATED IN THIS OMNIBUS INSTRUMENT (in

executing below agrees and becomes a party

to (i) the License Agreement set forth in

Section B herein, (ii) the Indenture set

forth in Section C herein, (iii) the Terms

Agreement set forth in Section D herein and

(iv) the Coordination Agreement set forth in

Section E herein)

U.S. Bank Trust National Association,

not in its individual capacity but solely in

its capacity as trustee of the Trust

 	 
	 	By:  	/s/ Jean Clarke
 	 
	 	 	Name:  	Jean Clarke 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	U.S. BANK TRUST NATIONAL ASSOCIATION (in

executing below agrees and becomes a party

to the Trust Agreement set forth in Section

A herein), as Trustee

 	 
	 	By:  	/s/ Jean Clarke
 	 
	 	 	Name:  	Jean Clarke 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	GSS HOLDINGS II, INC. (in executing below

agrees and becomes a party to the Trust

Agreement set forth in Section A herein), as

Trust Beneficial Owner

 	 
	 	By:  	/s/ Andrew L. Stidd
 	 
	 	 	Name:  	Andrew L. Stidd 	 
	 	 	Title:  	President 	 
	 
	 	CITIBANK, N.A. (in executing below agrees

and becomes a party to (i) the Indenture set

forth in Section C herein, as Indenture

Trustee, Registrar, Transfer Agent, Paying

Agent and Calculation Agent and (ii) the

Coordination Agreement set forth in Section

E herein), as Indenture Trustee, Registrar,

Transfer Agent, Paying Agent and Calculation

Agent

 	 
	 	By:  	/s/ Nancy Forte
 	 
	 	 	Name:  	Nancy Forte 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Execution Page 2 of 3]

 

 

	 	 	 	 	 
	 	BANKERS TRUST COMPANY, N.A. (in executing

below agrees and becomes a party to the

Coordination Agreement set forth in Section

E herein)

 	 
	 	By:  	/s/ Patty Ashbaugh
 	 
	 	 	Name:  	Patty Ashbaugh 	 
	 	 	Title:  	Vice President 	 
	 
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH

INCORPORATED (in executing below agrees and

becomes a party to the Terms Agreement set

forth in Section D herein)

 	 
	 	By:  	/s/ Sabina Ceddia
 	 
	 	 	Name:  	Sabina Ceddia 	 
	 	 	Title:  	Duly Authorized Attorney 	 
	 

[Execution Page 3 of 3]

 

 

INDEX OF EXHIBITS AND SCHEDULES TO THE OMNIBUS INSTRUMENT

	 	 	 
	Exhibit A

	 	Standard Trust Terms — Incorporated herein by reference to Exhibit
4.6 to Principal Life Insurance Company’s and Principal Financial
Group, Inc.’s Registration Statement on Form S-3 (Registration
Nos. 333-110499 and 333-110499-01.
	 
	 	 
	Exhibit B

	 	Standard License Agreement Terms — Incorporated herein by
reference to Exhibit 99.1 to Principal Life Insurance Company’s
Current Report on Form 8-K, filed on March 29, 2004.
	 
	 	 
	Exhibit C

	 	Standard Indenture Terms — Incorporated herein by reference to
Exhibit 4.1 to Principal Life Insurance Company’s and Principal
Financial Group, Inc.’s Registration Statement on Form S-3
(Registration Nos. 333-110499 and 333-110499-01.
	 
	 	 
	Exhibit D

	 	Pricing Supplement — Incorporated herein by reference to the
Pricing Supplement with respect to Principal Life Income Fundings
Trust 2004-58, filed on October 12, 2004, with the Securities and
Exchange Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended.
	 
	 	 
	Exhibit E

	 	Principal Life Insurance Company Officer’s Certificate
	 
	 	 
	Exhibit F

	 	Principal Life Income Fundings Trusts Trustee Officer’s Certificate
	 
	 	 
	Schedule I

	 	Terms Agreement Specifications

 

 

EXHIBIT E

Principal Life Insurance Company

Officer’s Certificate

     The undersigned, an officer of Principal Life Insurance Company, an Iowa
stock life insurance company (“Principal Life”), does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of Principal Life, to the knowledge of the
undersigned and after reasonable inquiry, that:

	 	 	 
	1.

	 	each of the representations and warranties of Principal Life
contained in each Expense and Indemnity Agreement entered into in
connection with the Registration Statement (defined below), and each
Funding Agreement issued in connection with the Program (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	Principal Life has performed and complied with, respectively,
in all material respects, all of the agreements, covenants,
obligations and conditions applicable to Principal Life required by
the Specified Agreements to be performed or complied with by
Principal Life on or before the date hereof;
	 
	4.

	 	the Registration Statement filed on Form S-3 (File Nos.
333-110499 and 333-110499-01) (the “Registration Statement”) by
Principal Life and Principal Financial Group, Inc. has been declared
effective by the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the
“Act”) and no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been commenced by or are pending before or contemplated
by the Commission;
	 
	5.

	 	all filings, if any, required by Rule 424 and Rule 430A under
the Act have been made in a timely manner;
	 
	6.

	 	since
     , the Trusts organized in connection with the
program contemplated by the Registration Statement have issued the
following series of Notes:
	 
	

	 	[List each series of Notes.] [(collectively, the “Designated Notes”)]; and
	 
	7.

	 	the Funding Agreements issued in connection with the Designated
Notes have been executed and delivered by Principal Life in accordance
with the terms and conditions of the Program Documents.

E-1

 

          Capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Standard Indenture Terms attached as Exhibit 4.1 to the
Registration Statement.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	[Name], [in his/her] capacity as an
authorized officer of Principal Life
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

	 	 	 	 	 

E-2

 

EXHIBIT F

Principal Life Income Fundings Trusts

Trustee Officer’s Certificate

     U.S. Bank Trust National Association, not in its individual capacity but
solely in its capacity as trustee acting on behalf of each common law trust
organized under the laws of the State of New York (in such capacity, the
“Trustee,” and each such common law trust being referred to herein as, a
“Trust”) in connection with the program contemplated by Registration Statement
Nos. 333-110499 and 333-110499-01 filed on Form S-3 (the “Registration
Statement”) by Principal Life Insurance Company and Principal Financial Group,
Inc. with the Securities and Exchange Commission, does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of each Trust, to the knowledge of the
Trustee, that:

	 	 	 
	1.

	 	each of the representations and warranties of each Trust
contained in the Notes issued in connection with the Program, each
Indenture entered into in connection with the Registration Statement
and the Expense and Indemnity Agreement concerning the Trusts (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	each Trust has performed and complied with, respectively, in
all material respects, all of the agreements, covenants, obligations
and conditions applicable to such Trust required by the Specified
Agreements to be performed or complied with by such Trust on or
before the date hereof;
	 
	4.

	 	the Notes issued in connection with the Program, have been
issued, in all material respects, in accordance with the terms and
conditions of the Program Documents; and
	 
	5.

	 	each Funding Agreement has been executed and delivered by the
related Trust in accordance with the terms and conditions of the
Program Documents.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Standard Indenture Terms attached as Exhibit 4.1
to the Registration Statement. In no event shall U.S. Bank Trust National
Association in its personal corporate capacity have any liability for any of
the certifications or statements contained in this Trustee Officer’s
Certificate, such liability being solely that of each Trust.

F-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	 	U.S. Bank Trust National Association, not
in its capacity but solely in its capacity
as Trustee acting on behalf of each Trust
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

F-2

 

SCHEDULE I

Terms Agreement Specifications

     In connection with Section 3(a)(iv) of the Distribution Agreement, the
Program under which the Notes are issued is rated Aa2 by Moody’s Investors
Service, Inc. (“Moody’s”) and AA by Standard & Poor’s Rating Services, a
division of The McGraw-Hill Companies, Inc. (“S&P”). Principal Life and PFG
expect that the Notes will be rated Aa2 by Moody’s. The Company’s financial
strength rating is Aa2 by Moody’s and AA by S&P.

     In accordance with Section 2.02(b) of the Terms Agreement and in
connection with the purchase of Notes from the Trust by the Purchasing Agent as
principal, the following items will be delivered on the Settlement Date:

	 	•	 	Opinion of Sidley Austin Brown & Wood LLP regarding the
enforceability of the Guarantee and the Notes.

     All capitalized terms used herein and not otherwise defined herein will
have the meanings set forth in the Distribution Agreement.

I-1<PAGE>
                                                                    EXHIBIT 10.1

                            INDEMNIFICATION AGREEMENT

This Indemnification Agreement ("Agreement") is effective as of October 12,
2004, by and between Brightpoint, Inc., an Indiana corporation (the "Company"),
and Lisa M. Kelley ("Indemnitee").

                                    RECITALS

The Company and Indemnitee recognize the increasing difficulty in obtaining
directors' and officers' liability insurance, the increases in the cost of such
insurance and the general reductions in the coverage of such insurance.

The Company and Indemnitee further recognize the substantial increase in
corporate litigation in general, subjecting officers and directors to expensive
litigation risks at the same time as the availability and coverage of liability
insurance has been severely limited. Indemnitee does not regard the current
protection available as adequate under the present circumstances, and Indemnitee
and other officers and directors of the Company may not be willing to continue
to serve as officers and directors without additional protection.

The Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve as officers and directors of the
Company and to indemnify its officers and directors so as to provide them with
the maximum protection permitted by law.

The Company previously entered into an Indemnification Agreement with the
Indemnitee but has subsequently changed its state of incorporation from Delaware
to Indiana and; therefore, the Company and the Indemnitee desire to enter into a
new Indemnification Agreement subject to Indiana law.

                                    AGREEMENT

In consideration of the mutual promises made in this Agreement, and for other
good and valuable consideration, receipt of which is hereby acknowledged, the
Company and Indemnitee hereby agree as follows:

1.   INDEMNIFICATION.

(a)  GENERAL AGREEMENT. The Company shall indemnify Indemnitee if Indemnitee is
     or was a party to or witness or other participant in, or is threatened to
     be made a party to or witness or other participant to any threatened,
     pending or completed action, suit or proceeding, whether civil, criminal,
     administrative or investigative (including an action by or in the right of
     the Company) by reason of the fact that Indemnitee is or was a director,
     officer, employee or agent of the Company, or any subsidiary of the
     Company, by reason of any action or inaction on the part of Indemnitee
     while an officer or director or by reason of the fact that Indemnitee is or
     was serving at the request of the Company as a director, officer, employee
     or agent of another corporation, partnership, joint venture, trust or other
     enterprise, against expenses (including attorneys' fees and costs),
     judgments, fines, any interest, assessments, and other charges and amounts
     paid in settlement (if such settlement is approved in advance by the
     Company, which approval shall not be unreasonably withheld) actually and
     reasonably incurred by Indemnitee in connection with such action,

<PAGE>

     suit or proceeding if Indemnitee acted in good faith and in a manner
     Indemnitee reasonably believed (i) in the case of conduct in the
     Indemnitee's official capacity with the Company, that the Indemnitee's
     conduct was in the Company's best interest and (ii) in all other cases,
     that the Indemnitee's conduct was at least not opposed to the Company's
     best interests, and, with respect to any criminal action or proceeding, had
     no reasonable cause to believe Indemnitee's conduct was unlawful. The
     termination of any action, suit or proceeding by judgment, order,
     settlement, conviction, or upon a plea of nolo contendere or its
     equivalent, shall not, of itself, create a presumption that Indemnitee did
     not act in good faith and in a manner which Indemnitee reasonably believed
     to be in or not opposed to the best interests of the Company, and, with
     respect to any criminal action or proceeding, had reasonable cause to
     believe that Indemnitee's conduct was unlawful.

(b)  MANDATORY PAYMENT OF EXPENSES. To the extent that Indemnitee has been
     successful on the merits or otherwise in defense of any action, suit or
     proceeding referred to in Subsection (a) of this Section 1 or the defense
     of any claim, issue or matter therein, Indemnitee shall be indemnified
     against expenses (including reasonable attorneys' fees) actually and
     reasonably incurred by Indemnitee in connection therewith.

2.   NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is intended to
     create in Indemnitee any right to continued employment.

3.   EXPENSES; INDEMNIFICATION PROCEDURE.

(a)  ADVANCEMENT OF EXPENSES. Subject to the terms and conditions of this
     Agreement, the Company shall advance all expenses incurred by Indemnitee in
     connection with the investigation, defense, settlement or appeal of any
     civil or criminal action, suit or proceeding referenced in Section 1(a)
     hereof (including amounts actually paid in settlement of any such action,
     suit or proceeding). Indemnitee hereby undertakes to repay such amounts
     advanced only if, and to the extent that, it shall ultimately be determined
     that Indemnitee is not entitled to be indemnified by the Company as
     authorized hereby. Any advances made hereunder shall be paid by the Company
     to Indemnitee within twenty (20) days following delivery of a written
     request therefor by Indemnitee to the Company.

(b)  NOTICE/COOPERATION BY INDEMNITEE. Indemnitee shall, as a condition
     precedent to his or her right to be indemnified under this Agreement, give
     the Company notice in writing as soon as practicable of any claim made
     against Indemnitee for which indemnification will or could be sought under
     this Agreement. Notice to the Company shall be directed to the Chief
     Executive Officer of the Company at the address shown on the signature page
     of this Agreement (or such other address as the Company shall designate in
     writing to Indemnitee). Notice shall be deemed received three (3) business
     days after the date postmarked if sent by domestic certified or registered
     mail, properly addressed, otherwise notice shall be deemed received when
     such notice shall actually be received by the Company. In addition,
     Indemnitee shall give the Company such information and cooperation as it
     may reasonably require and as shall be within Indemnitee's power.

(c)  PROCEDURE. Any indemnification and advances provided for in Section 1 shall
     be made no later than forty-five (45) days after receipt of the written
     request of Indemnitee. If a claim under this Agreement, under any statute,
     or under any provision of the Company's Restated Articles of Incorporation
     or Bylaws providing for indemnification, is not paid in

                                       2

<PAGE>

     full by the Company within forty-five (45) days after a written request for
     payment thereof has first been received by the Company, Indemnitee may, but
     need not, at any time thereafter bring an action against the Company to
     recover the unpaid amount of the claim and, subject to Section 13 of this
     Agreement, Indemnitee shall also be entitled to be paid for the expenses
     (including attorneys' fees and interest, at the Bank One, Indiana, National
     Association, prime rate in effect on the date of Indemnitee's written
     request, on the unpaid amount of the claim) of bringing such action. It
     shall be a defense to any such action (other than an action brought to
     enforce a claim for expenses incurred in connection with any action, suit
     or proceeding in advance of its final disposition) that Indemnitee has not
     met the standards of conduct which make it permissible under applicable law
     for the Company to indemnify Indemnitee for the amount claimed. Indemnitee
     shall be entitled to receive interim payments of expenses pursuant to
     Subsection 3(a) unless and until such defense may be finally adjudicated by
     court order or judgment from which no further right of appeal exists. It is
     the parties' intention that if the Company contests Indemnitee's right to
     indemnification, the question of Indemnitee's right to indemnification
     shall be for the court to decide, and neither the failure of the Company
     (including its Board of Directors, any committee or subgroup of the Board
     of Directors, independent legal counsel, or its shareholders) to have made
     a determination that indemnification of Indemnitee is proper in the
     circumstances because Indemnitee has met the applicable standard of conduct
     required by applicable law, nor an actual determination by the Company
     (including its Board of Directors, any committee or subgroup of the Board
     of Directors, independent legal counsel, or its shareholders) that
     Indemnitee has not met such applicable standard of conduct, shall create a
     presumption that Indemnitee has or has not met the applicable standard of
     conduct.

(d)  NOTICE TO INSURERS. If, at the time of the receipt of a notice of a claim
     pursuant to Section 3(b) hereof, the Company has director and officer
     liability insurance in effect, the Company shall give prompt notice of the
     commencement of such proceeding to the insurers in accordance with the
     procedures set forth in the respective policies. The Company shall
     thereafter take all necessary or desirable action to cause such insurers to
     pay, on behalf of the Indemnitee, all amounts payable as a result of such
     proceeding in accordance with the terms of such policies.

(e)  SELECTION OF COUNSEL. In the event the Company shall be obligated under
     Section 3(a) hereof to pay the expenses of any proceeding against
     Indemnitee, the Company, if appropriate, shall be entitled to assume the
     defense of such proceeding, with counsel approved by Indemnitee, upon the
     delivery to Indemnitee of written notice of its election so to do. After
     delivery of such notice, approval of such counsel by Indemnitee and the
     retention of such counsel by the Company, the Company will not be liable to
     Indemnitee under this Agreement for any fees of counsel subsequently
     incurred by Indemnitee with respect to the same proceeding, provided that
     (i) Indemnitee shall have the right to employ his or her counsel in any
     such proceeding at Indemnitee's expense; and (ii) if (A) the employment of
     counsel by Indemnitee has been previously authorized by the Company, (B)
     Indemnitee shall have reasonably concluded that there may be a conflict of
     interest between the Company and Indemnitee in the conduct of any such
     defense, or (C) the Company shall not, in fact, have employed counsel to
     assume the defense of such proceeding, then the fees and expenses of
     Indemnitee's counsel shall be at the expense of the Company.

                                       3

<PAGE>

(f)  CHANGE OF CONTROL. (i) For purposes of this Agreement, a "Change of
     Control" shall be deemed to occur, unless previously consented to in
     writing by the Indemnitee, upon (a) individuals who, as of the date hereof,
     constitute the Board of Directors of the Company (the "Incumbent Board")
     ceasing for any reason to constitute at least a majority of the Board of
     Directors of the Company (the "Board"); provided, however, that any
     individual becoming a director subsequent to the date hereof whose
     election, or nomination for election by the Company's shareholders, was
     approved by a vote of at least a majority of the directors then comprising
     the Incumbent Board shall be considered as though such individual were a
     member of the Incumbent Board, but excluding, for this purpose, any such
     individual whose initial assumption of office occurs in connection with a
     Combination, as defined below, or as a result of either an actual or
     threatened election contest (as such terms are used in Rule 14a-11 of
     Regulation 14A promulgated under the Securities Exchange Act of 1934, as
     amended (the "Exchange Act")) or other actual or threatened solicitation of
     proxies or consents by or on behalf of a person other than the Board; (b)
     the acquisition of beneficial ownership (as determined pursuant to Rule
     13d-3 promulgated under the Exchange Act) of 15% or more of the voting
     securities of the Company by any person, entity or group (within the
     meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) not affiliated
     with the Indemnitee or the Company; provided, however, that no Change of
     Control shall be deemed to have occurred for purposes of this Agreement if
     such person, entity or group acquires beneficial ownership of 15% or more
     of the voting securities of the Company (i) as a result of a combination of
     the Company or a wholly-owned subsidiary of the Company with such person,
     entity or group or another entity owned or controlled by such person,
     entity or group (whether effected by a merger, consolidation, sale of
     assets or exchange of stock or otherwise) (a "Combination") and (ii) (x)
     executive officers of the Company (as designated by the Board for purposes
     of Section 16 of the Exchange Act) immediately prior to the Combination
     constitute not less than 50% of the executive officers of the Company for a
     period of not less than six (6) months after the Combination (for purposes
     of calculating the executive officers of the Company after the Combination,
     those executive officers who are terminated by the Company for Cause or who
     terminate their employment without Good Reason shall be excluded from the
     calculation entirely), and (y) the members of the Incumbent Board
     immediately prior to the Combination constitute not less than 50% of the
     membership of the Board after the Combination and (z) after the
     Combination, more than 35% of the voting securities of the Company is then
     beneficially owned, directly or indirectly, by all or substantially all of
     the individuals and entities who were the beneficial owners of the
     outstanding voting securities of the Company immediately prior to the
     Combination, it being understood that while the existence of a Change in
     Control pursuant to this Section 6.4.2(b) may not be ascertainable for six
     (6) months after the Combination, if it is ultimately determined that such
     Combination constituted a Change in Control, the date of the Change of
     Control shall be the effective date of the Combination; (c) the
     commencement of a proxy contest against the management for the election of
     a majority of the Board of the Company if the group conducting the proxy
     contest owns, has or gains the power to vote at least 15% of the voting
     securities of the Company; (d) the consummation of a reorganization, merger
     or consolidation, or the sale, transfer or conveyance of all or
     substantially all of the assets of the Company to any person or entity not
     affiliated with the Indemnitee or the Company unless, following such
     reorganization, merger, consolidation, sale, transfer or conveyance, the
     conditions set forth in clause (b)(ii) above are present; or (e) the
     complete liquidation or dissolution of the Company. (ii) With respect to
     all matters arising after a Change in Control (other than a Change in
     Control approved by a

                                       4

<PAGE>

     majority of the directors on the Board who were directors immediately prior
     to such Change in Control) concerning the rights of Indemnitee to indemnity
     payments and advancement of expenses under this Agreement, the Company
     shall seek legal advice only from independent counsel selected by
     Indemnitee and approved by the Company (which approval shall not be
     unreasonably withheld) (the "Independent Counsel"), and who has not
     otherwise performed services for the Company or the Indemnitee (other than
     in connection with indemnification matters) within the last five years. The
     Independent Counsel shall not include any person who, under the applicable
     standards of professional conduct then prevailing, would have a conflict of
     interest in representing either the Company or Indemnitee in an action to
     determine Indemnitee's rights under this Agreement. Such counsel, among
     other things, shall render its written opinion to the Company and
     Indemnitee as to whether and to what extent the Indemnitee should be
     permitted to be indemnified under applicable law. The Company agrees to pay
     the reasonable fees of the Independent Counsel and to indemnify fully such
     counsel against any and all expenses (including attorneys' fees), claims,
     liabilities, loss, and damages arising out of or relating to this Agreement
     or the engagement of Independent Counsel pursuant hereto.

(g)  ESTABLISHMENT OF TRUST. In the event of a Change in Control (other than a
     Change in Control approved by a majority of the directors on the Board who
     were directors immediately prior to such Change in Control) the Company
     shall, upon written request by Indemnitee, create a trust for the benefit
     of the Indemnitee and from time to time upon written request of Indemnitee
     shall fund the trust in an amount sufficient to satisfy any and all
     expenses reasonably anticipated at the time of each such request to be
     incurred in connection with investigating, preparing for, participating in,
     and/or defending any proceeding relating to any indemnifiable event covered
     herein. The amount or amounts to be deposited in the trust pursuant to the
     foregoing funding obligation shall be determined by the Independent
     Counsel. The terms of the trust shall provide that (i) the trust shall not
     be revoked or the principal thereof invaded without the written consent of
     the Indemnitee, (ii) the trustee shall advance, within ten business days of
     a request by the Indemnitee, any and all expenses to the Indemnitee (and
     the Indemnitee hereby agrees to reimburse the trust under the same
     circumstances for which the Indemnitee would be required to reimburse the
     Company under Section 3(a) of this Agreement), (iii) the trust shall
     continue to be funded by the Company in accordance with the funding
     obligation set forth above, (iv) the trustee shall promptly pay to the
     Indemnitee all amounts for which the Indemnitee shall be entitled to
     indemnification pursuant to this Agreement or otherwise, and (v) all
     unexpended funds in the trust shall revert to the Company upon a final
     determination by the Independent Counsel or a court of competent
     jurisdiction, as the case may be, that the Indemnitee has been fully
     indemnified under the terms of this Agreement. The trustee shall be chosen
     by the Indemnitee. Nothing in this Section 3(g) shall relieve the Company
     of any of its obligations under this Agreement. All income earned on the
     assets held in the trust shall be reported as income by the Company for
     federal, state, local, and foreign tax purposes. The Company shall pay all
     costs of establishing and maintaining the trust and shall indemnify the
     trustee against any and all expenses (including attorneys' fees), claims,
     liabilities, loss, and damages arising out of or relating to this Agreement
     or the establishment and maintenance of the trust.

                                       5
<PAGE>

4    ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

(a)  SCOPE. Notwithstanding any other provision of this Agreement, the Company
     hereby agrees to indemnify the Indemnitee to the fullest extent permitted
     by law, notwithstanding that such indemnification is not specifically
     authorized by the other provisions of this Agreement, the Company's
     Restated Articles of Incorporation, the Company's Bylaws or by statute. In
     the event of any change in any applicable law, statute or rule which
     narrows the right of an Indiana corporation to indemnify a member of its
     board of directors or an officer, such changes, to the extent not otherwise
     required by such law, statute or rule to be applied to this Agreement shall
     have no effect on this Agreement or the parties' rights and obligations
     hereunder.

(b)  NONEXCLUSIVITY. The indemnification provided by this Agreement shall not be
     deemed exclusive of any rights to which Indemnitee may be entitled under
     the Company's Restated Articles of Incorporation, its Bylaws, any
     agreement, any vote of shareholders or disinterested members of the
     Company's Board of Directors, the Business Corporation Law of the State of
     Indiana, or otherwise, both as to action in Indemnitee's official capacity
     and as to action in another capacity while holding such office. The
     indemnification provided under this Agreement shall continue as to
     Indemnitee for any action taken or not taken while serving in an
     indemnified capacity even though he or she may have ceased to serve in such
     capacity at the time of any action, suit or other covered proceeding.

5.   PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any provision of
     this Agreement to indemnification by the Company for some or a portion of
     the expenses, judgments, fines or penalties actually or reasonably incurred
     by him or her in the investigation, defense, appeal or settlement of any
     civil or criminal action, suit or proceeding, but not, however, for the
     total amount thereof, the Company shall nevertheless indemnify Indemnitee
     for the portion of such expenses, judgments, fines or penalties to which
     Indemnitee is entitled.

6.   MUTUAL ACKNOWLEDGMENT. Both the Company and Indemnitee acknowledge that in
     certain instances, Federal law or applicable public policy may prohibit the
     Company from indemnifying its directors and officers under this Agreement
     or otherwise. Indemnitee understands and acknowledges that the Company has
     undertaken or may be required in the future to undertake with the
     Securities and Exchange Commission to submit the question of
     indemnification to a court in certain circumstances for a determination of
     the Company's right under public policy to indemnify Indemnitee.

7.   OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company shall, from time to
     time, make the good faith determination whether or not it is practicable
     for the Company to obtain and maintain a policy or policies of insurance
     with reputable insurance companies providing the officers and directors of
     the Company with coverage for losses from wrongful acts, or to ensure the
     Company's performance of its indemnification obligations under this
     Agreement. Among other considerations, the Company will weigh the costs of
     obtaining such insurance coverage against the protection afforded by such
     coverage. Notwithstanding the foregoing, the Company shall have no
     obligation to obtain or maintain such insurance if the Company determines
     in good faith that such insurance is not necessary or is not reasonably
     available, if the premium costs for such insurance are

                                       6
<PAGE>
     disproportionate to the amount of coverage provided, if the coverage
     provided by such insurance is limited by exclusions so as to provide an
     insufficient benefit, or if Indemnitee is covered by similar insurance
     maintained by a subsidiary or parent of the Company. However, the Company's
     decision whether or not to adopt and maintain such insurance shall not
     affect in any way its obligations to indemnify its officers and directors
     under this Agreement or otherwise. In all policies of director and officer
     liability insurance, Indemnitee shall be named as an insured in such a
     manner as to provide Indemnitee the same rights and benefits as are
     accorded to the most favorably insured of the Company's directors, if
     Indemnitee is a director; or of the Company's officers, if Indemnitee is
     not a director of the Company, but is an officer; or of the Company's key
     employees, if Indemnitee is not an officer or director, but is a key
     employee.

8.   SEVERABILITY. Nothing in this Agreement is intended to require or shall be
     construed as requiring the Company to do or fail to do any act in violation
     of applicable law. The Company's inability, pursuant to court order, to
     perform its obligations under this Agreement shall not constitute a breach
     of this Agreement. The provisions of this Agreement shall be severable as
     provided in this Section 8. If this Agreement or any portion hereof shall
     be invalidated on any ground by any court of competent jurisdiction, then
     the Company shall nevertheless indemnify Indemnitee to the full extent
     permitted by any applicable portion of this Agreement that shall not have
     been invalidated, and the balance of this Agreement not so invalidated
     shall be enforceable in accordance with its terms.

9.   EXCEPTIONS. Any other provision herein to the contrary notwithstanding, the
     Company shall not be obligated pursuant to the terms of this Agreement:

(a)  CLAIMS INITIATED BY INDEMNITEE. To indemnify or advance expenses to
     Indemnitee with respect to proceedings or claims initiated or brought
     voluntarily by Indemnitee and not by way of defense, except with respect to
     proceedings brought to establish or enforce a right to indemnification
     under this Agreement or any other statute or law or otherwise as required
     under Section 23-1-37 of the Indiana Business Corporation Law, but such
     indemnification or advancement of expenses may be provided by the Company
     in specific cases if the Board of Directors has approved the initiation or
     bringing of such suit.

(b)  LACK OF GOOD FAITH. To indemnify Indemnitee for any expenses incurred by
     the Indemnitee with respect to any proceeding instituted by Indemnitee to
     enforce or interpret this Agreement, if a court of competent jurisdiction
     determines that each of the material assertions made by the Indemnitee in
     such proceeding was not made in good faith or was frivolous.

(c)  INSURED CLAIMS. To indemnify Indemnitee for expenses or liabilities of any
     type whatsoever (including, but not limited to, judgments, fines, ERISA
     excise taxes or penalties, and amounts paid in settlement) to the extent
     such expenses or liabilities have been paid directly to Indemnitee by an
     insurance carrier under a policy of officers' and directors' liability
     insurance maintained by the Company.

                                       7
<PAGE>
(d)  CLAIMS UNDER SECTION 16(b). To indemnify Indemnitee for expenses and the
     payment of profits arising from the purchase and sale by Indemnitee of
     securities in violation of Section 16(b) of the Securities Exchange Act of
     1934, as amended, or any similar successor statute.

10.  CONSTRUCTION OF CERTAIN PHRASES.

(a)  For purposes of this Agreement, references to the "COMPANY" shall include
     any constituent corporation (including any constituent of a constituent)
     absorbed in a consolidation or merger which, if its separate existence had
     continued, would have had power and authority to indemnify its directors,
     officers, and employees or agents, so that if Indemnitee is or was a
     director, officer, employee or agent of such constituent corporation, or is
     or was serving at the request of such constituent corporation as a
     director, officer, employee or agent of another corporation, partnership,
     joint venture, trust or other enterprise, Indemnitee shall stand in the
     same position under the provisions of this Agreement with respect to the
     resulting or surviving corporation as Indemnitee would have with respect to
     such constituent corporation if its separate existence had continued.

(b)  For purposes of this Agreement, references to "OTHER ENTERPRISES", shall
     include employee benefit plans; references to "FINES" shall include any
     excise taxes assessed on Indemnitee with respect to an employee benefit
     plan; and references to "SERVING AT THE REQUEST OF THE COMPANY" shall
     include any service as a director, officer, employee or agent of the
     Company which imposes duties on, or involves services by, such director,
     officer, employee or agent with respect to an employee benefit plan, its
     participants, or beneficiaries; and if Indemnitee acted in good faith and
     in a manner Indemnitee reasonably believed to be in the interest of the
     participants and beneficiaries of an employee benefit plan, Indemnitee
     shall be deemed to have acted in a manner "NOT OPPOSED TO THE BEST
     INTERESTS OF THE COMPANY" as referred to in this Agreement.

11.  SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the Company
     and its successors and assigns, and shall inure to the benefit of
     Indemnitee and Indemnitee's estate, heirs, legal representatives and
     assigns.

12.  ATTORNEYS' FEES. In the event that any action is instituted by Indemnitee
     under this Agreement to enforce or interpret any of the terms hereof,
     Indemnitee shall be entitled to be paid all court costs and expense,
     including reasonable attorneys' fees, incurred by Indemnitee with respect
     to such action. The Company hereby consents to service of process and to
     appear in any such action. In the event of an action instituted by or in
     the name of the Company under this Agreement or to enforce or interpret any
     of the terms of this Agreement, Indemnitee shall be entitled to be paid all
     court costs and expenses, including attorneys' fees and costs, incurred by
     Indemnitee in defense of such action (including with respect to
     Indemnitee's counterclaims and cross-claims made in such action).

13.  NOTICE. All notices, requests, demands and other communications under this
     Agreement shall be in writing and shall be deemed duly given (i) if
     delivered by hand and receipted for by the party addressee, on the date of
     such receipt, or (ii) if mailed by domestic certified or

                                       8
<PAGE>
     registered mail with postage prepaid, on the third business day after the
     date postmarked. Addresses for notice to either party are as shown on the
     signature page of this Agreement, or as subsequently modified by written
     notice.

14.  CONSENT TO JURISDICTION. The Company and Indemnitee each hereby irrevocably
     consent to the jurisdiction of the courts of the State of Indiana for all
     purposes in connection with any action or proceeding which arises out of or
     relates to this Agreement and agree that any action instituted under this
     Agreement shall be brought only in the state courts of the State of
     Indiana.

15.  CHOICE OF LAW. This Agreement shall be governed by and its provisions
     construed in accordance with the laws of the State of Indiana, as applied
     to contracts between Indiana residents entered into and to be performed
     entirely within Indiana.

16.  MODIFICATION. This Agreement constitutes the entire agreement between the
     parties hereto with respect to the subject matter hereof. All prior
     negotiations, agreements and understandings between parties with respect
     thereto are superseded hereby. This Agreement may not be modified or
     amended except by an instrument in writing signed by or on behalf of the
     parties hereto.

The parties hereto have executed this Agreement as of the day and year set forth
on the first page of this Agreement.

BRIGHTPOINT, INC.

By: /s/ Robert J. Laikin
    --------------------------------------
Name:  Robert Laikin
      ------------------------------------
Title:  CEO
       -----------------------------------
Date:  10/12/04
      ------------------------------------

AGREED TO AND ACCEPTED:

INDEMNITEE

/s/ Lisa M. Kelley
------------------------------------------
Printed Name: Lisa M. Kelley

Date:      10/12/04
           -------------------------------
Address:
           -------------------------------

           -------------------------------

                                       9

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