Document:

exv10w2

 

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 2007-115, a New York common law trust (the “Trust”), relating to the notes (the
“Notes”) issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the
indirect parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full
and unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

     1. Guarantee.

          (a) The Guarantor hereby fully, irrevocably, absolutely and unconditionally guarantees, as a
guarantee of payment and not merely as a guarantee of collection, immediate payment when due to the
Trust any payments required to be made by Principal Life to the Trust under the Funding Agreement
which shall become due and payable regardless of whether such payment is due at maturity, on an
interest payment date or as a result of redemption or otherwise (the “Scheduled Payments”) but
shall be unpaid by Principal Life (the “Guaranteed Amounts”). Notwithstanding anything to the
contrary contained herein, in no event shall the Guaranteed Amounts exceed the Deposit (as defined
in the Funding Agreement) of the Funding Agreement, plus accrued but unpaid interest and any other
amounts due and owing under the Funding Agreement, less any amounts paid by Principal Life to the
Trust.

          (b) In the event that Principal Life fails to make a Scheduled Payment in full when due (the
“Payment Notice Date”), then the Trust or Citibank, N.A., as indenture trustee for the benefit of
the holders of the Notes (the “Indenture Trustee”), pursuant to the indenture (the “Indenture”)
between the Trust and the Indenture Trustee, may present the Guarantor with notice (each, a
“Payment Notice”) of such failure in writing on or after the Payment Notice Date. The Payment
Notice shall identify (1) the Funding Agreement, (2) the Trust, (3) the Payment Notice Date and (4)
the amount of the Scheduled Payments not paid by Principal Life to the Trust as of the Payment
Notice Date. Upon receipt of such Payment Notice, the Guarantor will immediately pay the
Guaranteed Amounts pursuant to Section 7.

          (c) In the event that, after receipt of a Payment Notice from the Trust, the Guarantor fails
to make immediate payment to the Trust or the Indenture Trustee of the Guaranteed Amounts, then
the Trust and the Indenture Trustee may enforce the obligations of the Guarantor under this
Guarantee, including by immediately bringing suit directly against the Guarantor (without first
bringing suit against Principal Life) for the Guaranteed Amounts not paid to the Trust as of the
Payment Notice Date.

          (d) This Guarantee is an unsecured, unsubordinated and contingent obligation of the Guarantor
and ranks equally with all other unsecured and unsubordinated obligations of the Guarantor.

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     2. Termination. This Guarantee is a continuing and irrevocable guarantee of the
Guaranteed Amounts now or hereafter existing and shall terminate and be of no further force and
effect with respect to the Funding Agreement and the Notes upon the full payment of the Scheduled
Payments or upon the earlier extinguishment of the obligations of Principal Life under the Funding
Agreement.

     3. Amendments. Subject to the trust agreement relating to the Trust and the Indenture, no
provision of this Guarantee may be waived, amended, supplemented or modified, except by a written
instrument executed by the Trust and the Guarantor.

     4. Assignment; Governing Law. This Guarantee shall inure to the benefit of the Trust and its
successors, assigns and pledgees. This Guarantee shall be governed by, and construed in accordance
with, the laws of the State of New York without regard to conflict of law principles.

     5. Notices. All notices given pursuant to this Guarantee shall be in writing, and shall
either be delivered, mailed or telecopied to the locations listed below or at such other address or
to the attention of such other persons as such party shall have designated for such purpose in a
written notice complying as to delivery with the terms of this Section 5. Each such notice shall
be effective (i) if given by telecopy, when transmitted to the applicable number so specified in
this Section 5 (such notice shall also be sent by mail, with first class postage prepaid), (ii) if
given by mail, three days after deposit in the mails with first class postage prepaid, or (iii) if
given by any other means, when actually delivered at such address.

If to the Guarantor:

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: (866) 496-6527

If to the Trust:

Principal Life Income Fundings Trust (followed by the number of the Trust specified in this Guarantee)

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c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Thomas E. Tabor

Telephone: (212) 361-6184

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Citibank Agency and Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Telephone: (212) 816-5685

Facsimile: (212) 816-5527

     6. Representations and Warranties. The Guarantor represents and warrants that: (i) it is duly
organized and in good standing under the laws of the jurisdiction of its organization and has full
capacity and right to make and perform this Guarantee, and all necessary authority has been
obtained; (ii) this Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights and general principles of equity, regardless of whether
enforcement is sought in a proceeding in equity or at law; (iii) the making and performance of this
Guarantee does not and will not violate the provisions of any applicable law, regulation or order,
and does not and will not result in the breach of, or constitute a default under, any material
agreement, instrument or document to which it is a party or by which it or any of its property may
be bound or affected, except to the extent disclosed in the registration statement registering the
issuance of this Guarantee and the Funding Agreement, as amended, supplemented or modified from
time to time (the “Registration Statement”), and to the extent that any such violation, breach or
default does not result in a material adverse effect on the Guarantor; and (iv) all consents,
approvals, licenses and authorizations of, and filings and registrations with, any governmental
authority required under applicable law and regulations for the making and performance of this
Guarantee have been obtained or made and are in full force and effect, except to the extent
disclosed in the Registration Statement and to the extent that the failure to acquire any such
consent, approval, license, authorization, filing or registration does not result in a material
adverse effect on the Guarantor.

     7. Notice of, and Consent to, Security Interest. The Trust hereby notifies the Guarantor that
it has granted to the Indenture Trustee, on behalf of the holders of the Notes, a security interest
in the Collateral (as defined in the Indenture), including, but not limited to, any and all payment
to be made by the Guarantor to the Trust under this Guarantee. The Trust hereby notifies the
Guarantor that it has collaterally assigned to the Indenture Trustee, for the benefit of the
holders of the Notes, this Guarantee. The Guarantor, by executing this Guarantee, hereby (i)
affirms that it has made or simultaneously will make changes to its books and records to reflect
such security interest and collateral assignment, (ii) consents to the security interest

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granted, and collateral assignment made, by the Trust to the Indenture Trustee of this Guarantee,
(iii) agrees to make all payments due under this Guarantee to the Collection Account (as defined in
the Indenture) or any other account designated in writing to the Guarantor by the Indenture Trustee
and (iv) agrees to comply with all orders of the Indenture Trustee with respect to this Guarantee
without any further consent from the Trust.

     8. WAIVER OF JURY TRIAL; FINAL AGREEMENT. TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE
GUARANTOR WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING
OUT OF THIS GUARANTEE. THIS GUARANTEE REPRESENTS THE FINAL AGREEMENT BETWEEN THE GUARANTOR AND THE
TRUST AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS AMONG SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.

	 	 	 	 	 
	 	PRINCIPAL FINANCIAL GROUP, INC.

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 
	 	Name:  	Elizabeth D. Swanson 	 
	 
	 	Title:  	Counsel 	 
	 
	 	Date:  	The Effective Date (as defined in the Funding
Agreement) 	 
	 

Acknowledged and Agreed:

THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

	 	 	 
	By:

	 	U.S. Bank Trust National Association,
	 

	 	not in its individual capacity, but solely in its
	 

	 	capacity as trustee
	 
	 	 
	By:

	 	Bankers Trust Company, N.A.,
	 

	 	under Limited Power of Attorney, dated March 2, 2007

	 	 	 	 	 
	By:

	 	/s/ Diana L. Cook
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	Diana L. Cook	 	 
	 
	 	 	 	 
	Title:

	 	Vice President	 	 
	 
	 	 	 	 
	Date:	 	The Effective Date (as defined in the Funding
	 

	 	Agreement)	 	 

4exv10w8

 

Exhibit 10.8

AMENDMENT 2006-I

IGT PROFIT SHARING PLAN

     WHEREAS, International Game Technology, a Nevada corporation (the “Company”), maintains the IGT
Profit Sharing Plan, as amended (the “Plan”); and

     WHEREAS, the Company has the right to amend the Plan, has approved the Plan amendments set forth
below, and has instructed the undersigned duly authorized officer of the Company to execute this
document to conclusively evidence the approval and adoption of such amendment.

     NOW, THEREFORE, effective as of January 1, 2006 or as otherwise noted, the Plan is hereby amended
in the following manner:

     1. The definition of “Related Company” in Section 1.2 is hereby amended by revising the last
sentence to read as follows:

     “Notwithstanding the foregoing, except as provided in the following sentences, an
organization shall not be considered a Related Company for any purpose under the Plan prior
to the date it is considered affiliated under clauses (a) through (d) above. With respect
to each Eligible Employee who was employed by WagerWorks, Inc. (“WagerWorks”) or any of its
subsidiaries as of August 25, 2005 (the date of acquisition of WagerWorks by the Company),
WagerWorks or any of its subsidiaries shall be treated as a Related Company prior to such
acquisition but only for purposes of determining such Eligible Employees’ Years of Vesting
Service. With respect to each Eligible Employee who was employed by Venture Catalyst Inc.
(“VCAT”) or any of its subsidiaries as of the date of the acquisition of VCAT by the
Company, VCAT or any of its subsidiaries shall be treated as a Related Company prior to such
acquisition but only for purposes of determining such Eligible Employees’ Years of Vesting
Service.”

     2. Section 3.6(d)(1) of the Plan is hereby amended in its entirety to read as follows:

     “(1) Excess Compensation Deferrals, and any earnings attributable thereto (determined under one of
the methods permitted by applicable Treasury Regulations), may be distributed to the Participant
(as set forth in subsection (e)) within the 2-1/2 month period following the close of the Plan Year
to which the excess Compensation Deferrals relate to the extent feasible, but in all events no
later than 12 months after the close of such Plan Year. Any such excess Compensation Deferrals
distributed from the Plan with respect to a Participant for a Plan Year shall be reduced by any
amount previously distributed to such Participant under Section 3.5(b) for the Participant’s
taxable year ending with or within such Plan Year.”

 

 

     3. Section 3.6(d)(4) of the Plan is hereby amended in its entirety to read as follows:

     “(4) The Company, in its discretion, may make a contribution to the Plan, which will be
allocated among the Accounts of all Participants, or only those who are non-Highly
Compensated Employees (as determined by the Company) who have met the requirements of
Section 2.1 or 2.3, as applicable. Such contributions will be allocated by using a ratio
method where each Participant receives an amount in a ratio represented by his or her
Compensation for the Plan Year as it bears to the total Compensation of all such
Participants for the Plan Year, as required to satisfy the tests. Such contributions shall
be fully (100%) vested at all times, and shall be subject to the withdrawal restrictions
which are applicable to Compensation Deferrals. Such contributions shall be considered
‘Qualified Non-Elective Contributions’ under applicable Treasury Regulations.
Notwithstanding the foregoing, in the event that the Company makes Qualified Non-Elective
Contributions to the Plan for any given Plan Year, the Company, in its discretion, may elect
to allocate such contributions to any or all Participants for that Plan Year by any other
method allowed under applicable Treasury Regulations.”

     4. Section 3.7(d) of the Plan is hereby amended in its entirety to read as follows:

     “(d) If, at the end of a Plan Year, the contribution percentage for Highly Compensated
Employees exceeds the limits established in (c), then the Committee may elect, at its
discretion, to pursue any of the following courses of action or any combination thereof:

          (1) Excess Employer Matching Contributions (and any earnings attributable thereto
(determined under one of the methods permitted by applicable Treasury Regulations)) may be
forfeited.

          (2) Excess Employer Matching Contributions (and any earnings attributable thereto
(determined under one of the methods permitted by applicable Treasury Regulations)) may be
distributed to the Participant within the 2-1/2 month period following the close of the Plan
Year to the extent feasible, and in all events no later than 12 months after the close of
the Plan Year.”

     5. Section 5.2 of the Plan is hereby amended by adding the following new subsection (e),
effective as of January 1, 2007, to read as follows:

     “(e) Notwithstanding anything to the contrary in the preceding subsections of
this Section 5.2, any Participant who is employed by the Company or a Related
Company on or after January 1, 2007 shall become vested in his Company Contribution
Account as follows:

     (1) 100% if, while an Employee, he attains his Normal Retirement Age, incurs a
Disability, or dies; or

     (2) in accordance with the following schedule:

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	Years of
	 	 
	Vesting Service	 	Percentage Vested
	Less than 1
	 	 	0	%
	1
	 	 	10	%
	2
	 	 	20	%
	3
	 	 	40	%
	4
	 	 	60	%
	5
	 	 	80	%
	6 or more
	 	 	100	%

     6. Section 6.2(a) of the Plan is hereby amended in its entirety to read as follows:

     “(a) Subject to the approval of the Committee and guidelines promulgated by the
Committee, withdrawals from the Participant’s Compensation Deferral Account and Rollover
Account may be permitted, provided the withdrawal is required to meet an immediate and heavy
financial need. The determination that the distribution is on account of an immediate and
heavy financial need of a Participant shall be made in accordance with uniform principles
consistently applied and with pertinent Code Sections and corresponding regulations. A
financial need shall not fail to qualify as immediate and heavy merely because the need was
reasonably foreseeable or voluntarily incurred by the Participant.

A distribution will be deemed to be made on account of an immediate and heavy financial need
of the Participant if the distribution is on account of:

     (1) Expenses for (or necessary to obtain) medical care that would be deductible
under Code Section 213(d) (determined without regard to whether the expenses exceed
7.5% of adjusted gross income);

     (2) Costs directly related to the purchase (excluding mortgage payments) of a
principal residence for the Participant;

     (3) Payment of tuition and related educational fees, and room and board
expenses, for up to the next 12 months of post-secondary education for the
Participant, the Participant’s spouse, children, or dependents (as defined in Code
Section 152, without regard to subsections (b)(1), (b)(2) and (d)(1)(B));

     (4) Payments necessary to prevent the eviction of the Participant from the
Participant’s principal residence, or foreclosure on the mortgage on that residence;

     (5) Payments for burial or funeral expenses for the Participant’s deceased
parent, spouse, children or dependents (as defined in Code Section 152, without
regard to Code Section 152(d)(1)(B));

A-3

 

 

     (6) Expenses for the repair of damage to the Participant’s principal residence that
would qualify for the casualty deduction under Code Section 165, determined without
regard to whether the loss exceeds 10% of adjusted gross income; or

     (7) Any other circumstance which the Department of the Treasury determines to
be a deemed immediate and heavy financial need and is approved by the Committee as a
reason for permitting distribution under this Section 6.4.

     The Committee shall determine, in a non-discriminatory manner, whether a Participant
has a financial hardship. A distribution may be made under this Section 6.2 only if such
distribution does not exceed the amount required to meet the immediate financial need
created by the hardship (including taxes or penalties reasonably anticipated from the
distribution) and is not reasonably available from other resources of the Participant.”

     IN WITNESS WHEREOF, the undersigned duly authorized officer of the Company has executed this
Amendment 2006-I on
this                     
day of                     , 2006.

	 	 	 	 	 
	 	INTERNATIONAL GAME TECHNOLOGY

 	 
	 	By:  	 	 
	 
	 	Print Name: 	Tami Corbin 	 
	 
	 	Title:	Vice President, Human Resources 	 
	 

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