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 2nd day of December, 2005, relating to the
issuance by Principal Life Income Fundings Trust 2005-120 (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/ Diana L. Cook
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Diana L. Cook
	 

	 	 	 	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 2005-120, filed on December 5, 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

I-1

 

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.exv4w1

 

Exhibit 4.1

ACCENTURE LTD

2001 SHARE INCENTIVE PLAN

RESTRICTED SHARE UNIT AGREEMENT

(Key Executive Performance-Based Award)

     Accenture Ltd, an exempted company registered in Bermuda (the “Company”), hereby grants, as of
[DATE], to [___Name___] (the “Participant”), a total number of [___number___] Restricted Share
Units (“RSUs”), on the terms and conditions set forth herein. This grant is made pursuant to the
terms of the Accenture Ltd 2001 Share Incentive Plan (the “Plan”), which Plan, as amended from time
to time, is incorporated herein by reference and made a part of this Restricted Share Unit
Agreement (this “Agreement”).

     Capitalized terms not otherwise defined in this Agreement shall have the same meaning ascribed
to them in the Plan. The terms and conditions of the RSUs granted hereunder, to the extent not
controlled by the terms and conditions contained in the Plan, are as follows:

     1. Performance-Based Vesting.

          (a) Performance Period. The RSUs shall vest, if at all, based upon the attainment of
specific pre-established financial performance objectives (the “Performance Objectives”) by the
Company for the period commencing on [DATE] and ending on [DATE] (the “Performance Period”), as set
forth in this Section 1.

          (b) Service Relationship. Except as provided in Section 2(a), RSUs that are unvested
as of the termination of the Participant’s full-time employment status with the Company or any of
its Subsidiaries (collectively, the “Constituent Companies”) shall be immediately forfeited as of
such termination and the Company shall have no further obligations with respect thereto. Such
employment status shall hereinafter be referred to in this Agreement as “Qualified Status.”

          (c) Total Shareholder Return.

          (i) Up to twenty-five percent (25%) of the RSUs granted to the Participant pursuant to this
Agreement shall vest, if at all, based upon the Total Shareholder Return for the Company, as
compared to the Comparison Companies, for the Performance Period in the manner set forth on Exhibit
1-A hereto.

          (ii) For purposes of this Agreement, Total Shareholder Return with respect to the Company and
each of the Comparison Companies shall mean the quotient of (A) the Fair Value of the stock of the
particular company or index on [DATE], divided by (B) the Fair Value of the stock of such company
or index on [DATE]. For purposes of calculating a company’s Total Shareholder Return, the Fair
Value of the stock of any company on [DATE] shall be adjusted to reflect any and all cash, stock or
in-kind dividends paid on the stock of such company during the Performance Period as follows: the
Fair Value of the stock of the company on [DATE] shall be multiplied by the sum of (Y) one (1) plus
(Z) the number of whole and fractional shares of the stock of the company that (i) were actually
received in respect of one share (or such greater number of shares that are deemed to have been
held at such time pursuant to this clause (c)(ii)) by way of a stock dividend and (ii) would
otherwise result assuming each cash dividend paid on the stock (or fair market value of any in-kind
dividend, as determined by the Committee) of the company during the Performance Period was used to
purchase additional whole and/or fractional shares of stock of the company on the record date of
such dividend based on the fair market value of the stock of the company (as determined by the
Committee), or with respect to the Company, the Fair Market Value of a Share, on the record date of
such dividend.

          (iii) If at any time prior to the completion of the Performance Period, a Comparison Company ceases
to be a publicly-traded company, merges or consolidates with another company, is acquired or
disposes of a significant portion of its businesses as they exist on the date of this Agreement or
experiences any other extraordinary event as determined by the Committee in its sole discretion,
the Committee, in its sole discretion, may remove such Comparison Company.

          (iv) For purposes of this Agreement: (i) “Comparison Companies” shall mean
Affiliated Computer Services, Inc. (ACS), BearingPoint, Inc. (BE),
Cap Gemini S.A., Computer Sciences Corporation (CSC), Electronic
Data Systems Corporation (EDS), EMC Corporation (EMC), First Data
Corporation (FDC), Hewitt Associates, Inc. (HEW), Hewlett-Packard
Company (HPQ), International Business Machines Corporation (IBM),
Keane, Inc. (KEA), Oracle Corporation (ORCL), Sapient Corporation
(SAPE), Sun Microsystems, Inc. (SUNW), Unisys Corporation (UIS) and
the S&P 500 Index (SPX); and (ii) the “Fair Value” of (A) a share of
stock of a company on a given date shall mean the average of the high and low trading price of

1

 

the stock of the company, as reported on the principal exchange on which the stock of such company
is traded (or, if the stock is not traded on an exchange but is quoted on Nasdaq or a successor
quotation system, the average of the mean between the closing representative bid and asked prices
for the stock) and (B) for the S&P 500 Index on a given date shall mean the average of the high and
low values for such index as reported in the Wall Street Journal (or, if the S&P 500 Index is not
reported in the Wall Street Journal, in such other reliable source as the Company may determine),
in each case for the ten (10) consecutive trading days immediately preceding such date.

          (d) Operating Income Growth Rate. Up to 75% of the RSUs granted to the Participant
pursuant to this Agreement shall vest, if at all, based upon the achievement of Operating Income
Growth Rate targets by the Company for the Performance Period, as set forth on Exhibit 1-B
hereto. For purposes of this Agreement:

          “Operating Income Growth Rate” for any fiscal year during the Performance Period shall be the
percentage change, positive or negative, of the consolidated operating income of the Company for
such fiscal year, as set forth on the Company’s audited financial statements for such fiscal year,
over the consolidated operating income of the Company for the immediately preceding fiscal year, as
set forth in the Company’s audited financial statements for such preceding fiscal year.

          “Target Operating Income Growth Rate” for any fiscal year during the Performance Period shall
be the percentage change of the “operating income plan” for such fiscal year set forth in the
Company’s budget process and, for purposes of this agreement, presented to and approved by the
Committee, over the consolidated operating income of the Company for the immediately preceding
fiscal year, as set forth in the Company’s audited financial statements for such preceding fiscal
year.

          “Cumulative Target Operating Income Growth” shall mean the simple average of the annual Target
Operating Income Growth Rates for the Company’s [NUMBER] fiscal years during the Performance
Period, as approved for purposes of this Agreement by the Committee.

          “Cumulative Operating Income Growth Rate” shall mean the simple average of the annual
Operating Income Growth Rates for the Company’s [NUMBER] fiscal years during the Performance
Period, as determined by reference to the Company’s audited financial statements for such fiscal
years.

          In the event that, as determined in the sole discretion of the Committee and due to a required
change in generally accepted accounting practices, a change in the accounting methods of the
Company or an extraordinary and material event in the Company’s business (each of the foregoing
events being referred to herein as a “Material Event”), the Operating Income Growth Rate determined
after the occurrence of a Material Event would be materially different as a result of the
occurrence thereof, the Committee may instruct the Company to determine Operating Income Growth
Rate for such period, solely for purposes of this Agreement, as if the Material Event had not
happened or was not effective. Such instruction may be limited to apply to fiscal periods in which
the Target Operating Income Growth Rate did not account for the occurrence of the Material Event.

          (e) Certification. No RSUs granted to the Participant hereunder shall vest in
accordance with Sections 1(c) or (d) unless and until the Committee makes a certification in
writing with respect to the achievement of the Performance Objectives for the Performance Period.
The Committee shall review and determine whether the Performance Objectives have been met within a
reasonable period following the availability of all data necessary to determine whether the
Performance Objectives have been achieved, and shall certify such finding to the Company and to the
Participant.

     2. Termination of Employment.

          (a) Termination as a result of death, Disability, or Involuntary Termination; Age-Based
Contingent Vesting. Notwithstanding anything in Section 1 to the contrary, the RSUs granted
hereunder shall vest upon the termination of the Participant’s Qualified Status as a result of
death, Disability, Involuntary Termination or if, at the end of the Performance Period,
Participant’s Qualified Status has terminated and Participant has attained a certain age, all as
follows:

          (i) Termination as a result of death or Disability. In the event the Participant’s
Qualified Status is terminated during the Performance Period as a result of death or Disability,
the RSUs granted to the Participant hereunder shall remain outstanding throughout the Performance
Period and shall vest, if at all, in accordance with Sections 1(c) or (d) upon completion of the
Performance Period.

2

 

          (ii) Involuntary Termination. In the event the Participant’s Qualified Status is
terminated during the Performance Period due to an Involuntary Termination, the RSUs granted to the
Participant hereunder shall remain outstanding throughout the Performance Period. Upon completion
of the Performance Period, the Participant shall vest in the number of RSUs granted hereunder equal
to the product of (i) the aggregate number of RSUs that would otherwise vest upon completion of the
Performance Period in accordance with Sections 1(c) or (d), multiplied by (ii) a fraction, the
numerator of which is the whole number of months that have elapsed from the commencement of the
Performance Period through the effective date of the Participant’s Involuntary Termination and the
denominator of which is [NUMBER].

          (iii) Age-Based Contingent Vesting. (A) Unless paragraph (B) or (C) below is also
applicable, in the event that, as of the end of the Performance Period, the Participant is not in
compliance with the provisions of Section 1(b) for any reason other than death, Disability,
Involuntary Termination or termination for Cause and the Participant has attained the age of 52
prior to the commencement of or during the Performance Period, one-third of the RSUs granted to the
Participant hereunder shall be deemed to remain outstanding throughout the Performance Period and
shall vest, if at all, in accordance with Sections 1(c) and (d); provided, that, the foregoing
shall not be applicable if the participant had not attained the age of 50 on or prior to the
commencement of the Performance Period.

               (B) Unless paragraph (C) below is also applicable, in the event that, as of the end of the
Performance Period, the Participant is not in compliance with the provisions of Section 1(b) for
any reason other than death, Disability, Involuntary Termination or termination for Cause and the
Participant has attained the age of 54 prior to the commencement of or during the Performance
Period, two-thirds of the RSUs granted to the Participant hereunder shall be deemed to remain
outstanding throughout the Performance Period and shall vest, if at all, in accordance with
Sections 1(c) and (d).

               (C) In the event that, as of the end of the Performance Period, the Participant is not in
compliance with the provisions of Section 1(b) for any reason other than death, Disability,
Involuntary Termination or termination for Cause and the Participant has attained the age of 56
prior to the commencement of or during the Performance Period 100% of the RSUs granted to the
Participant hereunder shall be deemed to remain outstanding throughout the Performance Period and
shall vest, if at all, in accordance with Sections 1(c) and (d).

          (b) Termination for reasons other than death, Disability, Involuntary Termination or
Specified Age Attainment. In the event the Participant’s Qualified Status is terminated during
the Performance Period for any reason other than death, Disability, Involuntary Termination, except
as set forth in Section 2(a)(iii) above, the RSUs granted hereunder shall be immediately forfeited
as of such termination and the Company shall have no further obligation with respect thereto.

          (c) Definitions. For purposes of this Agreement, the following terms shall have the
meaning specified below:

          (i) “Cause” shall mean “cause” as defined in any employment or consultancy agreement (or
similar agreement) or in any letter of appointment then in effect between the Participant and the
Company or any Affiliate or if not defined therein (it being the intent that the definition
of “Cause” shall include, at a minimum, the acts set forth below), or if there shall be no such
agreement, to the extent legally permissible, (a) the Participant’s embezzlement, misappropriation
of corporate funds, or other material acts of dishonesty, (b) the Participant’s commission or
conviction of any felony, or of any misdemeanor involving moral turpitude, or entry of a plea of
guilty or nolo contendere to any felony or misdemeanor, (c) engagement in any activity that the
Participant knows or should know could harm the business or reputation of the Company or an
Affiliate, (d) the Participant’s material failure to adhere to the Company’s or an Affiliate’s
corporate codes, policies or procedures as in effect from time to time, (e) the Participant’s
continued failure to meet minimum performance standards as determined by the Company or an
Affiliate, (f) the Participant’s violation of any statutory, contractual, or common law duty or
obligation to the Company or an Affiliate, including, without limitation, the duty of loyalty, or
(g) the Participant’s material breach of any confidentiality or non-competition covenant entered
into between the Participant and the Company or an Affiliate, including, without limitation, the
covenants contained in this Agreement. The determination of the existence of Cause shall be made by
the Company in good faith, which determination shall be conclusive for purposes of this Agreement.

          (ii) “Disability” shall mean “disability” (A) as defined in any employment or consultancy
agreement (or similar agreement) or in any letter of appointment then in effect between the
Participant and the Company or any Affiliate or (B) if not defined therein, or if there shall be no
such agreement, as defined in the long-term disability plan maintained by the Constituent Company
by which the Participant is employed or for which the Participant serves as a consultant or by
appointment, as in effect from time to time, or (C) if there shall be no plan, the inability of the
Participant to perform in all material respects his or her duties and responsibilities to the
Constituent Companies for a period of six (6) consecutive

3

 

months or for an aggregate period of nine (9) months in any twenty-four (24) consecutive month
period by reason of a physical or mental incapacity.

          (iii) “Involuntary Termination” shall mean termination of Qualified Status, as applicable,
with the Constituent Companies (other than for Cause) which is not voluntary and which is
acknowledged as being “involuntary” in writing by an authorized officer of the Company.

     3. Form and Timing of Issuance or Transfer.

          (a) Vested RSUs. Distribution of RSUs shall be made hereunder only in respect of
vested RSUs, and shall be made in Shares on a one-for-one basis; provided, however,
that in lieu of Shares, fractional vested RSUs shall be distributed to the Participant in cash
based upon the Fair Market Value of a Share at the time of distribution.

          (b) Distribution Date. Unless the Committee permits the Participant to elect to defer
the issuance or transfer of Shares under this Agreement pursuant to the terms and conditions
established by the Committee (or its designee) in its sole discretion, vested RSUs, if any, shall
be distributed to the Participant in the manner set forth in Section 3(a) on the date the Committee
makes a certification in writing with respect to the achievement of the Performance Objectives for
the Performance Period.

     4. Dividends. If on any date while RSUs are outstanding hereunder the Company shall
pay any dividend on the Shares (other than a dividend payable in Shares), the number of RSUs
granted to the Participant shall, as of such dividend payment date, be increased by a number of
RSUs equal to: (a) the product of (i) the number of RSUs held by the Participant as of the related
dividend record date, multiplied by (ii) the per Share amount of any cash dividend (or, in the case
of any dividend payable in whole or in part other than in cash, the per Share value of such
dividend, as determined in good faith by the Committee), divided by (b) the Fair Market Value of a
Share on the payment date of such dividend. In the case of any dividend declared on Shares that is
payable in the form of Shares, the number of RSUs granted to the Participant shall be increased by
a number equal to the product of (x) the aggregate number of RSUs held by the Participant through
the related dividend record date, multiplied by (y) the number of Shares (including any fraction
thereof) payable as a dividend on a Share. Any additional RSUs granted to the Participant pursuant
to this Section 4 during the Performance Period shall also be subject to the vesting requirements
of Sections 1(c) and (d).

     5. Adjustments Upon Certain Events.

          (a) The grant of the RSUs shall not in any way affect the right or power of the Company to
make adjustments, reclassification, or changes in its capital or business structure, or to merge,
consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets.

          (b) In the event of any dividend or other distribution other than a cash dividend (whether in
the form of Shares, other securities or other property), recapitalization, reclassification, stock
split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, liquidation, dissolution, or sale, transfer, exchange or other disposition of all or
substantially all of the assets of the Company, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other securities of the
Company, or other similar corporate transaction or event (collectively, an “Adjustment Event”), the
Committee may, in its sole discretion, (i) adjust the Shares or RSUs subject to this Agreement and
(ii) adjust the methodology for calculating Total Shareholder Return and Operating Income Growth
Rate in accordance with Sections 1(c) and (d) to reflect such Adjustment Event.

     6. Compliance, Cancellation and Rescission of Shares.

          (a) Upon any transfer or issuance of Shares underlying RSUs, the Participant shall certify in
a manner acceptable to the Company that the Participant is in compliance with the terms and
conditions of this Agreement and the Plan.

          (b) In the event the Participant’s Qualified Status with the Constituent Companies is
terminated for Cause, or Participant otherwise takes such action that would constitute Cause, or if
the Participant breaches any of the provisions of Section 7 of this Agreement, the Participant
shall, to the extent legally permitted, transfer to the Company the Shares that have been issued or
transferred under this Agreement (without regard to whether the Participant continues to own or
control such previously delivered Shares) and the Participant shall bear all costs of issuance or
transfer, including any transfer taxes that may be payable in connection with any transfer.

4

 

     7. Restrictive Covenants.

          (a) The Participant shall not, for a period of eighteen months following the termination of
the Participant’s Qualified Status with the Constituent Companies:

          (i) associate (including, but not limited to, association as a sole proprietor, owner,
employer, partner, principal, investor, joint venturer, shareholder, associate, employee, member,
consultant, contractor or otherwise) with any Competitive Enterprise or any of the affiliates,
related entities, successors, or assigns of any Competitive Enterprise and in connection with such
association engage in Consulting Services; provided, however, that with respect to
the equity of any Competitive Enterprise which is or becomes publicly traded, the Participant’s
ownership as a passive investor of less than 1% of the outstanding publicly traded stock of a
Competitive Enterprise shall not be deemed a violation of this Section 7(a)(i);

          (ii) directly or indirectly (A) solicit, or assist any other individual, person, firm or other
entity in soliciting, any Client or Prospective Client for the purpose of performing or providing
any Consulting Services; (B) perform or provide, or assist any other individual, person, firm or
other entity in performing or providing, Consulting Services for any Client or Prospective Client;
(C) interfere with or damage (or attempt to interfere with or damage) any relationship and/or
agreement between the Company or any Affiliates and a Client or Prospective Client; or

          (iii) directly or indirectly, solicit, employ or retain, or assist any other individual,
person, firm or other entity in soliciting, employing or retaining, any employee or other agent of
the Company or an Affiliate, including, without limitation, any former employee or other agent of
the Company, its Affiliates and/or their predecessors who ceased working for the Company, its
Affiliates and/or their predecessors within an eighteen-month period before or after the date on
which the Participant’s Qualified Status with the Constituent Companies terminated, in connection
with or for the purpose of performing or providing Consulting Services.

          (b) For purposes of this Agreement:

          (i) “Client” shall mean any person, firm, corporation or other organization whatsoever for
whom the Company, its Affiliates and/or their predecessors provided services within an
eighteen-month period before or after the date on which the Participant’s Qualified Status with the
Constituent Companies terminated.

          (ii) “Competitive Enterprise” shall mean a business enterprise that engages in, or owns or
controls a significant interest in any entity that engages in, the performance of services of the
type provided by the Company, its Affiliates and/or their predecessors at any time, past, present
or future.

          (iii) “Consulting Services” shall mean the performance of any services of the type provided by
the Company, its Affiliates and/or their predecessors at any time, past, present or future.

          (iv) “Prospective Client” shall mean any person, firm, corporation, or other organization
whatsoever with whom the Company, its Affiliates and/or their predecessors have had any
negotiations or discussions regarding the possible performance of services within the eighteen
months preceding the termination of the Participant’s Qualified Status with the Constituent
Companies.

          (v) “solicit” shall mean to have any direct or indirect communication of any kind whatsoever,
regardless of by whom initiated, inviting, advising, encouraging or requesting any person or
entity, in any manner, to take or refrain from taking any action.

     8. No Acquired Rights. By participating in the Plan, and accepting the grant of RSUs
under this Agreement, the Participant agrees and acknowledges that:

          (a) the Plan is discretionary in nature and that the Company can amend, cancel or terminate
the Plan at any time;

          (b) the grant of the RSU under the Plan is voluntary and occasional, and does not create any
contractual or other right to receive future grants of any RSUs or benefits in lieu of any RSUs,
even if RSUs have been granted repeatedly in the past;

          (c) the value of the RSUs is an extraordinary item of compensation, which is outside the scope
of the Participant’s Qualified Status contract, if any;

5

 

          (d) the RSUs are not part of normal or expected compensation or salary for any purpose,
including, but not limited to, calculating any termination, severance, resignation, redundancy, end
of service payments, bonuses, long-service awards, pension or retirement benefits or similar
payments;

          (e) the future value of the shares subject to the RSUs is unknown and cannot be predicted with
any certainty;

          (f) the Participant shall not make any claim or have any entitlement to compensation or
damages in connection with the termination of the RSUs or diminution in value of the RSUs under the
Plan, and Participant hereby irrevocably releases the Company and all of its Affiliates from any
such claim or entitlement; and

          (g) the Participant’s participation in the Plan shall not create a right to employment or
further employment with or to provide services as a director, consultant or advisor to the Company
or any of its Affiliates, and shall not interfere with or limit the ability of the Company to
terminate the Participant’s employment relationship or other services at any time, with or without
cause.

          (h) no terms of any contract of employment or consultancy (or similar agreement) of the
Participant shall be affected in any way by the Plan, this Agreement or related instruments, except
as otherwise expressly provided herein.

     9. No Rights of a Shareholder. The Participant shall not have any rights as a
shareholder of the Company until the Shares in question have been registered in the Company’s
register of shareholders.

     10. Unfunded Obligation; Unsecured Creditor. The RSUs granted hereunder are an
unfunded obligation of the Company and no assets or shares of the Company shall be set segregated
or earmarked by the Company in respect of any RSUs awarded hereunder. The RSUs granted hereunder
shall be an unsecured obligation of the Company and the rights and interests of the Participant
herein shall make him only a general, unsecured creditor of the Company.

     11. Legend on Certificates. Any Shares issued or transferred to the Participant
pursuant to Section 3 of this Agreement shall be subject to such stop transfer orders and other
restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and
other requirements of the Securities and Exchange Commission, any stock exchange upon which such
Shares are listed, any applicable Federal or state laws or relevant securities laws of the
jurisdiction of the domicile of the Participant or to ensure compliance with any additional
transfer restrictions that may be in effect from time to time, and the Committee may cause a legend
or legends to be put on any certificates representing such Shares to make appropriate reference to
such restrictions.

     12. Transferability Restrictions — RSUs/Underlying Shares. RSUs may not be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant
otherwise than by will or by the laws of descent and distribution, and any purported assignment,
alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 12
shall be void and unenforceable against any Constituent Company. Any Shares issued or transferred
to the Participant shall be subject to compliance by the Participant with such policies as the
Committee or the Company may deem advisable from time to time, including, without limitation,
policies relating to minimum executive employee share ownership requirements. Such policies shall
be binding upon the permitted respective legatees, legal representatives, successors and assigns of
the Participant. The Company shall give notice of any such additional or modified terms and
restrictions applicable to Common Shares delivered or deliverable under the Agreement to the holder
of the RSUs and/or the Common Shares so delivered, as appropriate, pursuant to the provisions of
Section 13 or, if a valid address does not appear to exist in the personnel records, to the last
address known by the Company of such holder. Notice of any such changes may be provided
electronically, including, without limitation, by publication of such changes to a central website
to which any holder of the RSUs or Common Shares issued therefrom has access.

     13. Notices. Any notice to be given under this Agreement shall be delivered
personally, or sent by certified, registered or express mail, postage prepaid, addressed to the
Company in care of its General Counsel at:

Accenture Ltd

1661 Page Mill Road

Palo Alto, CA 94304

Telecopy: (650) 213-2956

Attn: General Counsel

6

 

(or, if different, the then current principal business address of the duly appointed General
Counsel of the Company) and to the Participant at the address appearing in the personnel records of
the Company for the Participant or to either party at such other address as either party hereto may
hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt
thereof by the addressee.

     14. Withholding. The Participant may be required to pay to the Company or any
Affiliate and the Company or any Affiliate shall have the right and is hereby authorized to
withhold from any issuance or transfer due under this Agreement or under the Plan or from any
compensation or other amount owing to the Participant, applicable withholding taxes with respect to
this Agreement or any issuance or transfer under this Agreement or under the Plan and to take such
action as may be necessary in the opinion of the Company to satisfy all obligations for the payment
of such taxes. Notwithstanding the foregoing, if the Participant’s Qualified Status with the
Company terminates due to death, Disability or Involuntary Termination, the payment of any
applicable withholding taxes with respect to any further issuance or transfer of Shares under this
Agreement or the Plan shall be made solely through the sale of Shares equal to the statutory
minimum withholding liability.

     15. Choice of Law and Jurisdiction. THE INTERPRETATION, PERFORMANCE AND ENFORCEMENT OF
THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW AND SHALL BE SUBJECT TO THE EXCLUSIVE JURISDICTION OF THE NEW YORK COURTS.

     16. RSUs Subject to Plan. By entering into this Agreement, the Participant agrees and
acknowledges that the Participant has received and read a copy of the Plan. All RSUs are subject to
the Plan. In the event of a conflict between any term or provision contained herein and a term or
provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail.

     17. Rule 16b-3. The grant of the RSUs to the Participant hereunder is intended to be
exempt from the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended from
time to time (the “Exchange Act”) pursuant to Rule 16b-3 promulgated under the Exchange Act.

     18. Signature in Counterparts. This Agreement may be signed in counterparts, each of
which shall be deemed an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument.

     19. Entire Agreement. This Agreement and the Plan constitute the entire agreement of
the parties and supersede in their entirety all prior undertakings and agreements of the parties
with respect to the subject matter hereof.

     20. Severability of Agreement. In the event that any provision in this Agreement shall
be held invalid or unenforceable, such provision shall be severable from, and such invalidity or
unenforceability shall not be construed to have any effect on, the remaining provisions of this
Agreement.

     21. Administration; Consent. In order to manage compliance with the terms of this
Agreement, Common Shares delivered pursuant to the Agreement may, at the sole discretion of the
Company, be registered in the name of the nominee for the holder of the Common Shares and/or held
in the custody of a custodian until otherwise determined by the Company. To that end, by acceptance
of this Agreement, the holder hereby appoints the Company, with full power of substitution and
resubstitution, his or her true and lawful attorney-in-fact to assign, endorse and register for
transfer into such nominee’s name or deliver to such custodian any such Common Shares, granting to
such attorneys, and each of them, full power and authority to do and perform each and every act and
thing whatsoever that such attorney or attorneys may deem necessary, advisable or appropriate to
carry out fully the intent of this paragraph as such person might or could do personally. It is
understood and agreed by each holder of the Common Shares delivered under the Agreement that this
appointment, empowerment and authorization may be exercised by the aforementioned persons with
respect to all Common Shares delivered pursuant to the Agreement of such holder, and held of record
by another person or entity, for the period beginning on the date hereof and ending on the later of
the date the Agreement is terminated and the date that is ten years following the last date Common
Shares are delivered pursuant to this Agreement. The form of the custody agreement and the identity
of the custodian and/or nominee shall be as determined from time to time by the Company in its sole
discretion. A holder of Common Shares delivered pursuant to the Agreement acknowledges and agrees
that the Company may refuse to register the transfer of and enter stop transfer orders against the
transfer of such Common Shares except for transfers deemed by it in its sole discretion to be in
compliance with the terms of this Agreement. Each holder of Common Shares delivered pursuant to the
Agreement agrees to execute such additional documents and take such other actions as may be deemed
reasonably necessary or desirable

7

 

by the Company to effect the provisions of the Agreement, as in effect from time to time. Each
holder of Common Shares delivered pursuant to the Agreement acknowledges and agrees that the
Company may impose a legend on any document relating to or Common Shares issued or issuable
pursuant to this Agreement conspicuously referencing the restrictions applicable to such Common
Shares.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date
set forth above.

	 	 	 	 	 	 	 
	 	ACCENTURE LTD

 	 
	 	By:  	 	 
	 	 	Name:  	Douglas G. Scrivner 	 
	 	 	Title:  	General Counsel and Secretary 	 
	 
	 
	 	PARTICIPANT

 	 
	 	By:  	 	 
	 	 	Name:	 
	 	 	Address:	 

8

 

	 	 	 	 	 

EXHIBIT 1-A

Determination of RSU Vesting pursuant to Section 1(c) of the Agreement

	1.	 	Determine Percentile Rank (PR) for each of the Comparison Companies in accordance with the following formula:

PR = (PB/N)(100)

Where:

     PB = ordinal position from the lowest TSR among the Comparison Companies. The Comparison Company with the
lowest TSR is the first position from the bottom.

     N = number of Comparison Companies in the computation.

	2.	 	After determining and ordering the PR for each Comparison Company, if the TSR of the
Company is equal to the TSR of any other Comparison Company (rounded to the nearest
0.01), then the Company’s PR shall equal the PR of such Comparison Company. If the
Company’s TSR is not equal to the TSR of any other Comparison Company, then the
Company’s PR shall be determined by interpolation, using the TSRs and PRs of
the Comparison Companies having the next highest and next lowest TSRs in comparison
to the Company’s TSR. If there is no Comparison Company with a TSR that is higher
than the Company’s TSR, then the Company’s PR shall be 100. If there is no
Comparison Company with a TSR that is lower than the Company’s TSR, then the
Company’s PR shall be equal to the PR of the lowest ranked Comparison Company.
	 
	3.	 	Upon determining the PR of the Company, the percentage of maximum RSUs granted
under the Agreement that vest shall be determined as follows:

	 	 	 	 	 
	 	 	Company PR	 	Percentage of maximum RSUs granted
	Performance level	 	(measured as a percentile)	 	under the Agreement that vest
	 
	 	 	 	 
	Maximum

	 	The Company is ranked at
or above the 75th
percentile.
	 	25%
	 
	 	 	 	 
	Target

	 	The Company is ranked at
the 60th
percentile.
	 	16.67%
	 
	 	 	 	 
	Threshold

	 	The Company is ranked at
the 50th
percentile.
	 	8.33%
	 
	 	 	 	 
	 

	 	The Company is ranked
below the 50th
percentile.
	 	0%

     Performance Between Threshold and Target. If the Company’s Percentile Rank
is between “Threshold” and “Target,” the percentage of the maximum RSUs granted to the Participant
under the Agreement that shall vest pursuant to Section 1(c) of the Agreement shall equal (a) 8.33%
of the RSUs granted under the Agreement plus (b) an additional percentage of the maximum RSUs
granted to the Participant under the Agreement, which percentage shall be determined in accordance
with the following formula:

(PR — 50) x 8.34

10

	 	 	where, PR equals the Percentile Rank of the Company, as determined above.

9

 

     Performance Between Target and Maximum. If the Company’s Percentile Rank is between
“Target” and “Maximum,” the percentage of the RSUs granted to the Participant under the Agreement
that shall vest pursuant to Section 1(c) of the Agreement shall equal (a) 16.67% of the RSUs
granted under the Agreement plus (b) an additional percentage, not to exceed 8.33%, of the maximum
RSUs granted to the Participant under the Agreement, which percentage shall be determined in
accordance with the following formula:

(PR — 60) x 8.33

15

where, PR equals the Percentile Rank of the Company, as determined above.

10

 

EXHIBIT 1-B

Determination of RSU Vesting pursuant to Section 1(d) of the Agreement

	1.	 	Determine the extent that the Company met the Cumulative Target
Operating Income Growth Rate by dividing the Company’s
Cumulative Operating Income Growth Rate by the Cumulative
Target Operating Income Growth Rate and expressing the result
as a percentage (the resulting percentage being referred to as
the “Performance Rate”).
	 
	2.	 	Upon determining the Company’s Performance Rate, the percentage
of maximum RSUs granted under the Agreement that vest shall be
determined as follows:

	 	 	 	 	 
	 	 	 	 	Percentage of RSUs
	 	 	 	 	granted under the
	Performance level	 	Company's Performance Rate	 	Agreement that vest
	 
	 	 	 	 
	Maximum
	 	125% or greater	 	75%
	 
	 	 	 	 
	Target
	 	100%	 	50%
	 
	 	 	 	 
	Threshold
	 	50%	 	25%
	 
	 	 	 	 
	 
	 	Less than 50%	 	0%

     Performance Between Threshold and Target. If the Company’s Performance Rate
is between “Threshold” and “Target,” the percentage of the maximum RSUs granted to the Participant
under the Agreement that shall vest pursuant to Section 1(d) of the Agreement shall equal (a) 25%
of the maximum RSUs granted under the Agreement, plus (b) an additional percentage of the maximum
RSUs granted to the Participant under the Agreement, which percentage shall be determined in
accordance with the following formula:

(PR — 50)

2

where, PR equals the Company’s Performance Rate, as determined above.

     Performance Between Target and Maximum. If the Company’s Performance Rate is between
“Target” and “Maximum,” the percentage of the maximum RSUs granted to the Participant under the
Agreement that shall vest pursuant to Section 1(d) of the Agreement shall equal (a) 50% of the
maximum RSUs granted under the Agreement, plus (b) an additional percentage, not to exceed 25%, of
the maximum RSUs granted to the Participant under the Agreement, which percentage shall be
determined in accordance with the following formula:

(PR — 100)

where, PR equals the Company’s Performance Rate, as determined above.

11

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