Document:

exv4w1

 

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program Documents contained
herein, each such document dated as of this 16th day of September, 2005, relating to the
issuance by Principal Life Income Fundings Trust 2005-95 (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 Intentionally Left 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 Intentionally Left 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 Intentionally Left 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 Intentionally Left 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
	

	 	388 Greenwich Street, 14th Floor
	

	 	New York, New York 10013
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 816-5685
	

	 	Facsimile: (212) 816-5527

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 Intentionally Left 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)

 	 
	 	By: U.S. Bank Trust National Association, not in its individual capacity
but solely in its capacity as trustee of the Trust

 	 
	 	By:  	                                            /s/ Thomas E. Tabor
 	 
	 	 	Name:  	Thomas E. Tabor 	 
	 	 	Title:  	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/ Thomas E. Tabor
 	 
	 	 	Name:  	Thomas E. Tabor 	 
	 	 	Title:  	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/ Debra Williams
 	 
	 	 	Name:  	Debra Williams 	 
	 	 	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/ Diane Kenna
 	 
	 	 	Name:  	Diane Kenna 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[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 2005-95, filed on Monday, September 19, 2005, 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. All capitalized terms used herein and not otherwise defined herein
will have the meanings set forth in the Distribution Agreement.exv10w1

 

Exhibit 10.1

Form of Executive Retention Letter Agreement

September __, 2005

[Name]

[Title]

7600 France Avenue South

Edina, MN 55435

Dear [Name]:

     1. Introduction. As you are well aware, on September 1, 2005, Ron Marshall, the Chief
Executive Officer of Nash Finch Company, announced his intention to resign, effective March 2,
2006. The Company recognizes that this announcement, and the uncertainty and questions which it may
raise for you, as the Company’s [Title], and other members of the Company’s management, could lead
to the departure or distraction of management personnel to the detriment of the Company and its
stockholders. Therefore the Compensation Committee of the Company’s Board of Directors (the
“Committee”) has determined that appropriate steps should be taken to minimize the risk that
Company management will depart in anticipation or in the wake of this change in leadership, thereby
leaving the Company without adequate management personnel during a critical period. The Committee
recognizes that your continued employment with the Company involves a substantial personal and
professional commitment on your part, and the possibility of foregoing present and future career
opportunities, all of which results in substantial benefits to the Company. Therefore, to induce
you to remain in the employ of the Company, this Executive Retention Letter Agreement (“Agreement”)
including the Appendix, which has been approved by the Committee, sets forth the benefits which the
Company agrees will be provided to you in the event your employment with the Company is terminated
under certain circumstances described below during a proscribed period of time related to Ron’s
departure and the appointment of a new Chief Executive Officer.

     2. Term of Agreement. This Agreement will become effective immediately upon
execution, and will continue in full force and effect until the end of the Transition Period, at
which time this Agreement shall automatically terminate.

     3. Benefits upon Termination During Transition Period. For purposes of this
Agreement, “Commencement Date” means the date Ron Marshall ceases serving as the Company’s Chief
Executive Officer, and “Transition Period” means the period of time beginning on the Commencement
Date and ending on the date on which any successor to Ron Marshall (excluding any interim
appointee) has served as the Company’s Chief Executive Officer for a period of twelve (12)
consecutive months. If your employment by the Company is terminated during the Transition Period
for any reason other than death, Cause, Disability or Retirement, or if you terminate your
employment by the Company during the Transition Period for Good Reason, and such termination
constitutes a “separation from service” within the meaning of Code Section 409A, then the following
will apply:

 

 

     (i) Cash Payment. Commencing with the first payroll period following the Date
of Termination, the Company will commence payments to you at a rate equal to your Highest
Monthly Compensation, annualized and adjusted for the number of payroll periods in a year,
and will continue such payments until the aggregate payments equal (A) your Highest Monthly
Compensation multiplied by (B) the lesser of (I) the number of full or partial calendar
months remaining until your Retirement or (II) [twelve (12)] [twenty-four (24)].
Notwithstanding the foregoing, if the payments to you are subject to the requirements of
Section 409A(a)(2)(B)(i) of the Code and if you are determined to be a “key” employee of the
Company within the meaning of Section 409A of the Code, then such payments will be suspended
and not made until the first pay period following the six-month anniversary of the Date of
Termination (or, if earlier, upon the date of your death). Any payments that were otherwise
payable during the six-month suspension period referred to in the preceding sentence will be
paid as soon as administratively practicable following the six-month anniversary of your
Date of Termination.

     (ii) Welfare Plans. The Company will maintain in full force and effect, for
the continued benefit of you and your dependents for a period terminating on the earlier of
(A) [twelve (12] [twenty-four (24)] calendar months after the Date of Termination or (B)
your Retirement, all insured and self-insured employee welfare benefit Plans (including,
without limitation, health, life, dental and disability plans) in which you were entitled to
participate at any time during the ninety (90)-calendar-day period immediately preceding the
Commencement Date, provided that your continued participation is possible under the general
terms and provisions of such Plans and any applicable funding media and without regard to
any discretionary amendments to such Plans by the Company following the Commencement Date
and provided that you continue to pay an amount equal to your regular contribution under
such Plans for such participation (based upon your level of benefits and employment status
most favorable to you at any time during the ninety (90)-calendar-day period immediately
preceding the Commencement Date). If the [twelve (12)] [twenty-four (24)] month-period ends
before you have reached Retirement and you have not previously received or are not then
receiving equivalent benefits from a new employer (including coverage for any pre-existing
conditions), the Company will arrange, at its sole cost and expense, to enable you to
convert your and your dependents’ coverage under such plans to individual policies or
programs under the same terms as executives of the Company may apply for such conversions.
In the event that, either before or after the [twelve (12)][twenty-four (24)] month period
ends, you or your dependents’ participation in any such Plan is barred or not eligible for
tax-favored treatment, the Company, at its sole cost and expense, will arrange to have
issued for the benefit of you and your dependents individual policies of insurance providing
benefits substantially similar (on a federal, state and local income and employment
after-tax basis) to those which you otherwise would have been entitled to receive under such
Plans pursuant to this clause (ii) or, if such insurance is not available at a reasonable
cost to the Company, the Company will otherwise provide you and your dependents equivalent
benefits (on a federal, state and local income and employment after-tax basis). You will not
be required to pay any premiums or other charges in an amount greater than that which you
would have paid in order to participate in such Plans.

 

 

     (iii) Non-Competition Obligations. As consideration for the payments provided
in this Agreement (which are hereby acknowledged by you as providing you with additional and
sufficient benefit to support the following covenant), you agree that in the event your
employment with the Company is terminated upon conditions entitling you to the payments and
benefits provided for under clauses (i) and (ii), above, you will not, without the prior
written consent of the Company, alone or in any capacity (other than by way of holding
            shares of a publicly traded company in an amount not exceeding five percent (5%) of the
outstanding class or series so traded) with any other person or entity, directly or
indirectly engage in competition with the Company or any Subsidiary, in association with or
as an officer, director, employee, principal, agent or consultant of or to SuperValu, Inc.
or Spartan Stores, Inc. for a period ending one (1) year after your Date of Termination.

For the avoidance of doubt, no benefit under this Section 3 shall be payable in connection with any
termination outside of the Transition Period, irrespective of the circumstances.

     4. Confidentiality. You will not use, other than in connection with your employment
with the Company, or disclose, any Confidential Information to any person not employed by the
Company or not authorized by the Company to receive such Confidential Information, without the
prior written consent of the Company; and you will use reasonable and prudent care to safeguard and
protect and prevent the unauthorized disclosure of Confidential Information. Nothing in this
Agreement will prevent you from using, disclosing or authorizing the disclosure of any Confidential
Information: (a) which is or hereafter becomes part of the public domain or otherwise becomes
generally available to the public through no fault of yours; (b) to the extent and upon the terms
and conditions that the Company may have previously made the Confidential Information available to
certain persons; or (c) to the extent that you are required to disclose such Confidential
Information by law or judicial or administrative process.

     5. Fees and Expenses. The Company, upon demand, will pay or reimburse you for all
reasonable legal fees, court costs, experts’ fees and related costs and expenses incurred by you in
connection with any actual, threatened or contemplated litigation or legal, administrative,
arbitration or other proceeding relating to this Agreement to which you are or reasonably expect to
become a party, whether or not initiated by you, including, without limitation, your seeking to
obtain or enforce any right or benefit provided by this Agreement; provided, however, you will be
required to repay (without interest) any such amounts to the Company to the extent that a court
issues a final and non-appealable order setting forth the determination that the position taken by
you was frivolous or advanced by you in bad faith.

     6. Binding Agreement. This Agreement inures to the benefit of, and is enforceable by,
you, your personal and legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If you die while any amount would still be payable to you
under this Agreement if you had continued to live, all such amounts, unless otherwise provided in
this Agreement, will be paid in accordance with the terms of this Agreement to your devisee,
legatee or other designee or, if there be no such designee, to your estate.

 

 

     7. No Mitigation. You will not be required to mitigate the amount of any payments or
benefits the Company becomes obligated to make or provide to you in connection with this Agreement
by seeking other employment or otherwise. The payments or benefits to be made or provided to you
in connection with this Agreement may not be reduced, offset or subject to recovery by the Company
by any payments or benefits you may receive from other employment or otherwise.

     8. No Setoff. The Company will have no right to setoff payments or benefits owed to
you under this Agreement against amounts owed or claimed to be owed by you to the Company under
this Agreement or otherwise.

     9. Taxes. All payments and benefits to be made or provided to you in connection with
this Agreement will be subject to required withholding of federal, state and local income, excise
and employment-related taxes.

     10. Notices. For the purposes of this Agreement, notices and all other communications
provided for in, or required under, this Agreement must be in writing and will be deemed to have
been duly given when personally delivered or when mailed by United States registered or certified
mail, return receipt requested, postage prepaid and addressed to each party’s respective address
set forth on the first page of this Agreement (provided that all notices to the Company must be
directed to the attention of the chair of the Board), or to such other address as either party may
have furnished to the other in writing in accordance with these provisions, except that notice of
change of address will be effective only upon receipt.

     11. Disputes. Any dispute, controversy or claim for damages rising under or in
connection with this Agreement may, in your sole discretion, be settled exclusively by such
judicial remedies that you may seek to pursue or by arbitration in Minneapolis, Minnesota by three
(3) arbitrators in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrators’ award in any court having jurisdiction. The
Company will be entitled to seek an injunction or restraining order in a court of competent
jurisdiction (within or without the State of Minnesota) to enforce the provisions of Section 4 of
this Agreement.

     12. Jurisdiction. Except as specifically provided otherwise in this Agreement, the
parties agree that any action or proceeding arising under or in connection with this Agreement must
be brought in a court of competent jurisdiction in the State of Minnesota, and hereby consent to
the exclusive jurisdiction of said courts for this purpose and agree not to assert that such courts
are an inconvenient forum.

     13. Related Agreements. To the extent that any provision of any other Plan or
agreement between the Company and you shall limit, qualify or be inconsistent with any provision of
this Agreement, then for purposes of this Agreement, while such other Plan or agreement remains in
force, the provision of this Agreement will control and such provision of such other Plan or
agreement will be deemed to have been superseded, and to be of no force or effect, as if such other
agreement had been formally amended to the extent necessary to accomplish such purpose; provided,
however, that notwithstanding the foregoing, in the event of

 

 

your termination following any “Change in Control” of the Company, as defined in that certain
letter agreement between you and the Company, dated _______________, the terms of such other letter
agreement will control and govern, and no additional payment of benefit will be owed hereunder.
Nothing in this Agreement prevents or limits your continuing or future participation in any Plan
provided by the Company and for which you may qualify, and nothing in this Agreement limits or
otherwise affects the rights you may have under any Plans or other agreements with the Company.
Amounts which are vested benefits or which you are otherwise entitled to receive under any Plan or
other agreement with the Company at or subsequent to the Date of Termination will be payable in
accordance with such Plan or other agreement.

     14. No Employment or Service Contract. Nothing in this Agreement is intended to
provide you with any right to continue in the employ of the Company for any period of specific
duration or interfere with or otherwise restrict in any way your rights or the rights of the
Company, which rights are hereby expressly reserved by each, to terminate your employment at any
time for any reason or no reason whatsoever, with or without cause.

     15. Survival. The respective obligations of, and benefits afforded to, the Company
and you which by their express terms or clear intent survive termination of your employment with
the Company or termination of this Agreement (other than at the expiration of the Transition Period
without your earlier termination of employment), as the case may be, including, without limitation,
the provisions of Sections 3, 4, 5, 7, 8, 9, 10 and 11 of this Agreement, will survive termination
of your employment with the Company or termination of this Agreement (other than at the expiration
of the Transition Period without your earlier termination of employment), as the case may be, and
will remain in full force and effect according to their terms.

     16. Miscellaneous; Amendment; Compliance with Section 409A. No provision of this
Agreement may be modified, waived or discharged unless such modification, waiver or discharge is
agreed to in a writing signed by you and the chair of the Committee; provided, however, that the
Committee may make such amendments and modifications as it may deem reasonably necessary to cause
this Agreement to qualify for an exception from or to comply with Section 409A of the Code. No
waiver by any party to this Agreement at any time of any breach by another party to this Agreement
of, or of compliance with, any condition or provision of this Agreement to be performed by such
party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter to this Agreement have been made by any parties which
are not expressly set forth in this Agreement.

This Agreement and related Appendix the legal relations among the parties as to all matters,
including, without limitation, matters of validity, interpretation, construction, performance and
remedies, will be governed by and construed exclusively in accordance with the internal laws of the
State of Minnesota (without regard to the conflict of laws provisions of any jurisdiction), except
to the extent that the provisions of the corporate law of Delaware may apply to the internal
affairs of the Company. Headings are for purposes of convenience only and do not constitute a part
of this Agreement. Capitalized terms used in this Agreement will have the meaning given herein or
in the attached Appendix. The parties to this Agreement agree to

 

 

perform, or cause to be performed, such further acts and deeds and to execute and deliver, or cause
to be executed and delivered, such additional or supplemental documents or instruments as may be
reasonably required by the other party to carry into effect the intent and purpose of this
Agreement. The invalidity or unenforceability of all or any part of any provision of this
Agreement will not affect the validity or enforceability of the remainder of such provision or of
any other provision of this Agreement, which will remain in full force and effect. This Agreement
may be executed in several counterparts, each of which will be deemed to be an original, but all of
which together will constitute one and the same instrument.

     If this letter correctly sets forth our agreement on the subject matter discussed above, kindly
sign and return to the Company the enclosed copy of this letter which will then constitute our
agreement on this subject.

Sincerely,

NASH FINCH COMPANY.

By: ____________________________

Ron Marshall, Chief Executive Officer

Agreed to this ___day of ____________, 2005

________________________________

[Recipient]

 

 

Appendix

Definitions of Terms Used in the Executive Retention Letter Agreement.

The following terms will have the meaning set forth below unless the context clearly requires
otherwise. Terms defined elsewhere in the Executive Retention Letter Agreement will have the same
meaning throughout that Agreement.

     (a) “Agreement” means the Executive Retention Letter Agreement as amended, extended or
renewed from time to time in accordance with its terms.

     (b) “Board” means the board of directors of the Company duly qualified and acting at
the time in question.

     (c) “Cause” means: (i) your willful and continued failure to substantially perform
your duties with the Company (other than any such failure resulting from your Disability or
incapacity due to bodily injury or physical or mental illness) after a demand for substantial
performance is delivered to you by the chair of the Board which specifically identifies the manner
in which such executive believes that you have not substantially performed your duties; or (ii)
your conviction (including a plea of nolo contendere) of willfully engaging in illegal conduct
constituting a felony or gross misdemeanor under federal or state law which is materially and
demonstrably injurious to the Company. For purposes of this definition, no act, or failure to act,
on your part will be considered “willful” unless done, or omitted to be done, by you in bad faith
and without reasonable belief that your action or omission was in, or not opposed to, the best
interests of the Company. Any act, or failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board (or a committee thereof) or based upon the advice of counsel
for the Company will be conclusively presumed to be done, or omitted to be done, by you in good
faith and in the best interests of the Company. It is also expressly understood that your
attention to matters not directly related to the business of the Company will not provide a basis
for termination for Cause so long as the Board does not expressly disapprove in writing of your
engagement on such activities either before or within a reasonable period of time after the Board
knew or could reasonably have known that you engaged in those activities. Notwithstanding the
foregoing, you will not be deemed to have been terminated for Cause unless and until there has been
delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than a
majority of the entire membership of the Board at a meeting of the Board called and held for the
purpose (after reasonable notice to you and an opportunity for you, together with your counsel, to
be heard before the Board), finding that in the good faith opinion of the Board you were guilty of
the conduct set forth above in clause (i) or (ii) of this definition and specifying the particulars
thereof in detail.

     (d) “Code” means the Internal Revenue Code of 1986, as amended.

     (e) “Company” means Nash Finch Company and any Subsidiary.

     (f) “Confidential Information” means information which is proprietary to the Company
or proprietary to others and entrusted to the Company, whether or not trade secrets. It includes
information relating to business plans and to business as conducted or anticipated to be

 

 

conducted, and to past or current or anticipated products or services. It also includes,
without limitation, information concerning research, development, purchasing, accounting, marketing
and selling. All information which you have a reasonable basis to consider confidential is
Confidential Information, whether or not originated by you and without regard to the manner in
which you obtain access to that and any other proprietary information.

     (g) “Date of Termination” means: (i) if your employment is to be terminated for
Disability, thirty (30) calendar days after Notice of Termination is given (provided that you have
not returned to the performance of your duties on a full-time basis during such thirty
(30)-calendar-day period); (ii) if your employment is to be terminated by the Company for Cause or
by you for Good Reason, the date specified in the Notice of Termination; (iii) if your employment
is to be terminated by the Company for any reason other than Cause, Disability, death or
Retirement, the date specified in the Notice of Termination, which in no event may be a date
earlier than ninety (90) calendar days after the date on which a Notice of Termination is given,
unless an earlier date has been expressly agreed to by you in writing either in advance of, or
after, receiving such Notice of Termination; or (iv) if your employment is terminated by reason of
death or Retirement, the date of death or Retirement, respectively. In the case of termination by
the Company of your employment for Cause, if you have not previously expressly agreed in writing to
the termination, then within thirty (30) calendar days after receipt by you of the Notice of
Termination with respect thereto, you may notify the Company that a dispute exists concerning the
termination, in which event the Date of Termination will be the date set either by mutual written
agreement of the parties or by the judge or arbitrators in a proceeding as provided in Section 11
of this Agreement. During the pendency of any such dispute, the Company will continue to pay you
your full compensation and benefits in effect just prior to the time the Notice of Termination is
given and until the dispute is resolved in accordance with Section 11 of this Agreement.

     (h) “Disability” means a disability as defined in the Company’s long-term disability
plan as in effect immediately prior to the Commencement Date or, in the absence of such a plan,
means permanent and total disability as defined in Section 22(e)(3) of the Code.

     (i) “Good Reason” means:

     (i) an adverse change in your status or position(s) as an executive of the Company as
in effect immediately prior to the Commencement Date, including, without limitation, any
adverse change in your status or position(s) as a result of a material diminution in your
duties or responsibilities or the assignment to you of any duties or responsibilities which,
in your reasonable judgment, are inconsistent with such status or position(s), or any
removal of you from or any failure to reappoint or reelect you to such position(s) (except
in connection with the termination of your employment for Cause, Disability or Retirement or
as a result of your death or by you other than for Good Reason);

     (ii) a reduction by the Company in your rate of total compensation (including, without
limitation, salary and bonuses) (or an adverse change in the form or timing of the payment
thereof) as in effect immediately prior to the Commencement Date;

 

 

     (iii) the failure by the Company to continue in effect any Plan in which you (and/or
your family) are participating at any time during the ninety (90)-calendar-day period
immediately preceding the Commencement Date (or Plans providing you (and/or your family)
with at least substantially similar benefits) other than as a result of the normal
expiration of any such Plan in accordance with its terms as in effect immediately prior to
the ninety (90)-calendar-day period immediately preceding the Commencement Date, or the
taking of any action, or the failure to act, by the Company which would adversely affect
your (and/or your family’s) continued participation in any of such Plans on at least as
favorable a basis to you (and/or your family) as is the case on the Commencement Date or
which would materially reduce your (and/or your family’s) benefits in the future under any
of such Plans or deprive you (and/or your family) of any material benefit enjoyed by you
(and/or your family) at the Commencement Date;

     (iv) any purported termination by the Company of your employment which is not properly
effected pursuant to a Notice of Termination and pursuant to any other requirements of this
Agreement, and for purposes of this Agreement, no such purported termination will be
effective; or

     (v) any refusal by the Company to continue to allow you to attend to matters or engage
in activities not directly related to the business of the Company which, at any time prior
to the Commencement Date, you were not expressly prohibited in writing by the Board from
attending to or engaging in.

     (j) “Highest Monthly Compensation” means one-twelfth (1/12) of the highest amount of
your compensation for any twelve (12) consecutive calendar-month period during the thirty-six (36)
consecutive calendar-month period prior to the month that includes the Date of Termination. For
purposes of this definition, “compensation” means the amount reportable by the Company, for federal
income tax purposes, as wages paid to you by the Company, increased by the amount of contributions
made by the Company with respect to you under any qualified cash or deferred arrangement or
cafeteria plan that is not then includable in your income by reason of the operation of Section
402(a)(8) or Section 125 of the Code, and increased further by any other compensation deferred for
any reason, including, without limitation, amounts deferred (whether vested or nonvested) pursuant
to the Company’s Executive Incentive Bonus and Deferred Compensation Plan, Income Deferral Plan,
and Deferred Compensation Plan.

     (k) “Notice of Termination” means a written notice which indicates the specific
termination provision in this Agreement pursuant to which the notice is given. Any purported
termination by the Company or by you during the Transition Period must be communicated by written
Notice of Termination.

     (l) “Plan” means any compensation plan (such as a stock option, restricted stock plan
or other equity-based plan), or any employee benefit plan (such as a thrift, pension, profit
sharing, medical, dental, disability, accident, life insurance, relocation, salary continuation,
expense reimbursements, vacation, fringe benefits, office and support staff plan or policy) or any
other plan, program, policy or agreement of the Company intended to benefit employees (and/or their
families) generally, management employees (and/or their families) as a group or you (and/or your
family) in particular (including, without limitation the Company’s 1994 Stock

 

 

Incentive Plan, 2000 Stock Incentive Plan, Profit Sharing Plan, Deferred Compensation Plan,
Income Deferral Plan, and Executive Incentive Bonus and Deferred Compensation Plan).

     (m) “Retirement” means the day on which you attain the age of sixty-five (65).

     (n) “Subsidiary” means any corporation at least a majority of whose securities having
ordinary voting power for the election of directors is at the time owned by the Company and/or one
(1) or more Subsidiaries.

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