Document:

exv10w2

 

GUARANTEE

     FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in connection with
that certain funding agreement (the “Funding Agreement”), entered into by and between Principal
Life Insurance Company, an Iowa insurance company (“Principal Life”), and Principal Life Income
Fundings Trust 2007-49, a New York common law trust (the “Trust”), relating to the notes (the
“Notes”) issued by the Trust, Principal Financial Group, Inc., a Delaware corporation and the
indirect parent company of Principal Life (the “Guarantor”), hereby furnishes to the Trust its full
and unconditional guarantee of the Guaranteed Amounts (as hereinafter defined) as follows:

     1. Guarantee.

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

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

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

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

1

 

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

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

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

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

If to the Guarantor:

Principal Financial Group, Inc.

711 High Street

Des Moines, Iowa 50392

Attention: General Counsel

Telephone: (515) 247-5111

Facsimile: (515) 248-3011

With a copy to:

Principal Life Insurance Company

711 High Street

Des Moines, Iowa 50392

Attention: Jim Fifield

Telephone: (515) 248-9196

Facsimile: (866) 496-6527

If to the Trust:

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

2

 

c/o U.S. Bank Trust National Association

100 Wall Street, 16th Floor

New York, New York 10005

Attention: Thomas E. Tabor

Telephone: (212) 361-6184

Facsimile: (212) 809-5459

With a copy to:

Citibank, N.A.

Citibank Agency and Trust

388 Greenwich Street, 14th Floor

New York, New York 10013

Attention: Nancy Forte

Telephone: (212) 816-5685

Facsimile: (212) 816-5527

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

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

3

 

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

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

	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL GROUP, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Elizabeth D. Swanson
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:
	 	Elizabeth D. Swanson
	 
	 	 	 	 
	 

	 	Title:
	 	Counsel
	 
	 	 	 	 
	 

	 	Date:
	 	The Effective Date (as defined in the Funding Agreement)

Acknowledged and Agreed:

THE PRINCIPAL LIFE INCOME FUNDINGS

TRUST DESIGNATED IN THIS GUARANTEE

	 	 	 	 	 
	By:	 	U.S. Bank Trust National Association,
	 	 	not in its individual capacity, but solely in its
	 	 	capacity as trustee
	 
	 	 	 	 
	By:	 	Bankers Trust Company, N.A.,
	 	 	under Limited Power of Attorney, dated March 2, 2007
	 
	 	 	 	 
	By:

	 	/s/ Diana L. Cook	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Name:

	 	Diana L. Cook	 	 
	 
	 	 	 	 
	Title:

	 	Vice President
	 	 
	 
	 	 	 	 
	Date:

	 	The Effective Date (as defined in the Funding Agreement)	 	 

4exv10w1

 

EXHIBIT 10.1

Mindspeed Technologies, Inc.

Directors Stock Plan

as amended and restated

 

	1.	 	PURPOSE OF THE PLAN.
	 
	 	 	The purpose of the Directors Stock Plan (as amended and restated, the Plan) is to link the
compensation of non-employee directors of Mindspeed Technologies, Inc. (Mindspeed) directly
with the interests of the Mindspeed shareholders.
	 
	2.	 	PARTICIPANTS.
	 
	 	 	Participants in the Plan shall consist of directors of Mindspeed who are not employees of
Mindspeed or any of its subsidiaries (Non-Employee Director). The term “subsidiary” as used
in the Plan means a corporation more than 50% of the voting stock of which, or an
unincorporated business entity more than 50% of the equity interest in which, shall at the
time be owned directly or indirectly by Mindspeed.
	 
	3.	 	SHARES RESERVED UNDER THE PLAN.
	 
	 	 	Subject to the provisions of Section 11 of the Plan, there shall be reserved for delivery
under the Plan, from the date of inception of the Plan, an aggregate of 1,440,000 shares of
common stock, par value $.01 per share, of Mindspeed (Shares). Shares to be delivered under
the Plan may be authorized and unissued Shares, Shares held in treasury or any combination
thereof. Shares delivered under the Plan which are forfeited or otherwise terminated shall
be available for subsequent grant under the Plan.

 

 

	4.	 	ADMINISTRATION OF THE PLAN.
	 
	 	 	The Plan shall be administered by the Compensation and Management Development Committee (the
Committee) of the Board, subject to the right of the Board, in its sole discretion, to
exercise or authorize another committee or person to exercise some or all of the
responsibilities, powers and authority vested in the Committee under the Plan. The Committee
(or the Board or any other committee or person authorized by the Board) shall have authority
to interpret the Plan, and to prescribe, amend and rescind rules and regulations relating to
the administration of the Plan, and all such interpretations, rules and regulations shall be
conclusive and binding on all persons.
	 
	5.	 	EFFECTIVE DATE OF THE PLAN.
	 
	 	 	The Plan has been approved by the Board and shall be submitted to Conexant Systems, Inc.
(Conexant), the sole shareholder of Mindspeed, for approval and, if approved, shall become
effective on the date on which Conexant completes the pro rata distribution of all
outstanding Shares to Conexant’s shareowners (the Distribution).
	 
	6.	 	STOCK OPTIONS.
	 
	 	 	Each Non-Employee Director in office at the time of the Distribution shall be granted, on the
first trading day following the Distribution or on such later date within 60 days thereafter
as the Board may designate, an option to purchase 40,000 Shares. Each other Non-Employee
Director shall be granted an option to purchase 40,000 Shares at the meeting of the Board at
which, or following the Annual Meeting of Shareholders at which, the Non-Employee Director is
first elected a director of Mindspeed. Following the Annual Meeting of Shareholders held in
the year 2004 and each Annual Meeting of Shareholders

2

 

	 	 	thereafter, each Non-Employee Director who is elected a director at, or who was previously
elected and continues as a director after, that Annual Meeting shall be granted an option to
purchase 20,000 Shares, provided that the Board may, by action taken on or before the day
following the date of any such Annual Meeting, defer the option grants in respect of such
Annual Meeting for up to 60 days following such Annual Meeting to a date coinciding with the
date of grant of options or other incentive compensation by Mindspeed to some or all of the
officers of Mindspeed.
	 
	 	 	The exercise price per share for each option granted under the Plan shall be the closing
price per share (the Fair Market Value) of Shares on the date of grant as reported on the
Nasdaq Stock Market or such other national securities exchange or automated inter-dealer
quotation system on which the Shares have been duly listed and approved for quotation and
trading (or on the next preceding day such stock was traded if it was not traded on the date
of grant). The purchase price of the Shares with respect to which an option or portion
thereof is exercised shall be payable in full in cash, Shares valued at their Fair Market
Value on the date of exercise, or a combination thereof. Each option may be exercised in
whole or in part at any time after it becomes exercisable; and each option shall become
exercisable in four approximately equal installments on each of the first, second, third and
fourth anniversaries of the date the option is granted. No option shall be exercisable prior
to one year nor after ten years from the date of the grant thereof; provided, however, that
if the holder of an option dies, the option may be exercised from and after the date of the
optionee’s death for a period of three years (or until the expiration date specified in the
option if earlier) even if it was not exercisable at the date of death. Moreover, if an
optionee retires after attaining age 55 and completing at least five years service as a

3

 

	 	 	director, all options then held by such optionee shall be exercisable even if they were not
exercisable at such retirement date; provided, however, that each such option shall expire at
the earlier of five years from the date of the optionee’s retirement or the expiration date
specified in the option.
	 
	 	 	Options granted under the Plan are not transferable other than (i) by will or by the laws of
descent and distribution; or (ii) by gift to the grantee’s spouse or natural, adopted or
step- children or grandchildren (Immediate Family Members) or to a trust for the benefit of
one or more of the grantee’s Immediate Family Members or to a family charitable trust
established by the grantee or a member of the grantee’s family. If an optionee ceases to be
a director while holding unexercised options, such options are then void, except in the case
of (i) death, (ii) disability, (iii) retirement after attaining age 55 and completing at
least five years service as a director, or (iv) resignation from the Board for reasons of the
antitrust laws, compliance with Mindspeed’s conflict of interest policies or other
circumstances that the Committee may determine as serving the best interests of Mindspeed.
	 
	7.	 	RESTRICTED STOCK UNITS.
	 
	 	 	Following the Annual Meeting of Shareholders held in the year 2008 and each Annual Meeting of
Shareholders thereafter, each Non-Employee Director who is elected a director at, or who was
previously elected and continues as a director after, that Annual Meeting shall be granted
restricted stock units (Restricted Stock Units) in an amount equal to the lesser of (a)
15,000 Restricted Stock Units or (b) the number of Restricted Stock Units (rounded to the
nearest whole unit) equaling $45,000 divided by the closing price of Shares on the date of
grant as reported on the Nasdaq Stock Market or such other national

4

 

	 	 	securities exchange or automated inter-dealer quotation system on which the Shares have been
duly listed and approved for quotation and trading (or on the next preceding day such stock
was traded if it was not traded on the date of grant). For the purpose of the calculation in
the previous sentence, one Restricted Stock Unit shall equal one Share.
	 
	 	 	The recipient shall not have the rights of a shareholder until such time as the Shares
underlying the Restricted Stock Units are settled by the issuance of such Shares to the
Non-Employee Director. However, the recipient will receive dividends in respect of the
Shares underlying the Restricted Stock Units, which will be paid if and when such dividends
are normally paid to Mindspeed shareholders. Upon receipt of the Shares underlying the
Restricted Stock Units, the recipient shall have the right to vote the Shares. One Share
shall be issuable for each Restricted Stock Unit awarded.
	 
	 	 	Restricted Stock Units issued under this Section 7 shall not be settled, and such Shares
shall not be issued, until ten days after (i) the recipient retires from the Board after
attaining age 55 and completing at least five years service as a director or (ii) the
recipient resigns from the Board or ceases to be a director by reason of the antitrust laws,
compliance with Mindspeed’s conflict of interest policies, death, disability or other
circumstances, and the Board has not determined (prior to the expiration of such ten day
period) that such resignation or cessation of service as a director is adverse to the best
interests of Mindspeed.
	 
	 	 	The settlement of the Restricted Stock Units as described above shall be delayed in the event
Mindspeed reasonably determines that the issuance of the Shares would constitute a violation
of federal securities laws or other applicable law. If the settlement of the

5

 

	 	 	Restricted Stock Units is delayed by the provisions of this paragraph, the settlement of the
Restricted Stock Units shall occur at the earliest date at which Mindspeed reasonably
determines that issuing the Shares will not cause a violation of federal securities laws or
other applicable law. For purposes of this paragraph, the issuance of Shares that would
cause inclusion in gross income or the application of any penalty provision or other
provision of the Internal Revenue Code of 1986, as amended (the Code), is not considered a
violation of applicable law.
	 
	8.	 	SHARES OR RESTRICTED STOCK UNITS IN LIEU OF CASH COMPENSATION.
	 
	 	 	Each Non-Employee Director may elect each year, not later than December 31 of the year
preceding the year as to which an election is to be applicable, to receive all or any portion
of the cash retainer to be paid for board, committee or other service in the following
calendar year through the issuance or transfer of Shares, valued at the closing price as
reported on the Nasdaq Stock Market or such other national securities exchange or automated
inter-dealer quotation system on which the Shares have been duly listed and approved for
quotation and trading, on the date when each payment of such retainer amount would otherwise
be made in cash (or on the next preceding day such stock was traded if it was not traded on
that date). Each Non-Employee Director making such an election may also elect at the same
time to receive the value of those Shares in the form of Restricted Stock Units. The
recipient shall not have the rights of a shareholder until such time as the Shares underlying
the Restricted Stock Units are settled by the issuance of such Shares to the Non-Employee
Director. However, the recipient will receive dividends in respect of the Shares underlying
the Restricted Stock Units, which will be paid if and when such dividends are normally paid
to Mindspeed shareholders. Upon receipt of the Shares

6

 

	 	 	underlying the Restricted Stock Units, the recipient shall have the right to vote the Shares.
One Share shall be issuable for each Restricted Stock Unit awarded.
	 
	 	 	Restricted Stock Units issued under this Section 8 shall not be settled, and such Shares
shall not be issued, until ten days after (i) the recipient retires from the Board after
attaining age 55 and completing at least five years service as a director or (ii) the
recipient resigns from the Board or ceases to be a director by reason of the antitrust laws,
compliance with Mindspeed’s conflict of interest policies, death, disability or other
circumstances, and the Board has not determined (prior to the expiration of such ten day
period) that such resignation or cessation of service as a director is adverse to the best
interests of Mindspeed.
	 
	 	 	The settlement of the Restricted Stock Units as described above shall be delayed in the event
Mindspeed reasonably determines that the issuance of the Shares would constitute a violation
of federal securities laws or other applicable law. If the settlement of the Restricted
Stock Units is delayed by the provisions of this paragraph, the settlement of the Restricted
Stock Units shall occur at the earliest date at which Mindspeed reasonably determines that
issuing the Shares will not cause a violation of federal securities laws or other applicable
law. For purposes of this paragraph, the issuance of Shares that would cause inclusion in
gross income or the application of any penalty provision or other provision of the Code is
not considered a violation of applicable law.
	 
	9.	 	RESTRICTED STOCK.
	 
	 	 	The Board or the Committee may, from time to time, as and when either thereof deems it
appropriate, provide one or more Non-Employee Directors with a grant of Restricted

7

 

	 	 	Stock, subject to the terms, conditions and restrictions established by the Board or the
Committee at the time of grant.
	 
	10.	 	ADDITIONAL COMPENSATION.
	 
	 	 	The Board or the Committee may, from time to time, as and when either thereof deems it
appropriate, provide one or more Non-Employee Directors with additional compensation under
the Plan. Such additional compensation may be in the form of a grant of Shares, Restricted
Stock, Restricted Stock Units, options to purchase Shares or a combination thereof, subject
to the terms, conditions and restrictions established by the Board or the Committee at the
time of grant.
	 
	11.	 	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.
	 
	 	 	If there shall be any change in or affecting Shares on account of any merger, consolidation,
reorganization, recapitalization, reclassification, stock dividend, stock split or
combination, or other distribution to holders of Shares (other than a cash dividend), there
shall be made or taken such amendments to the Plan and such adjustments and actions
thereunder as the Board may deem appropriate under the circumstances.
	 
	12.	 	GOVERNMENT AND OTHER REGULATIONS.
	 
	 	 	The obligations of Mindspeed to deliver Shares upon exercise of options granted under Section
6 of the Plan, upon vesting and settlement of Restricted Stock Units pursuant to Section 7 or
an election made under Section 8 or the delivery of Shares pursuant to an election made under
Section 8 of the Plan or grants made under Section 9 or Section 10 of the Plan, shall be
subject to (i) all applicable laws, rules and regulations and such approvals by any
governmental agencies as may be required, including, without limitation,

8

 

	 	 	compliance with the Securities Act of 1933, as amended, and (ii) the condition that such
Shares shall have been duly listed and approved for quotation and trading on the Nasdaq Stock
Market, or such other national securities exchange or automated inter-dealer quotation system
as shall be approved by the Board.
	 
	13.	 	AMENDMENT AND TERMINATION OF THE PLAN.
	 
	 	 	The Plan may be amended by the Board in any respect, provided that, without shareholder
approval, no amendment shall (i) materially increase the maximum number of Shares available
for delivery under the Plan (other than adjustments pursuant to Section 11 hereof), (ii)
materially increase the benefits accruing to participants under the Plan, or (iii) materially
modify the requirements as to eligibility for participation in the Plan. The Plan may also
be terminated at any time by the Board.
	 
	14.	 	MISCELLANEOUS.
	 
		 	(a) If a Change of Control as defined in Article III, Section 14(I)(1) of Mindspeed’s Bylaws
shall occur, all options then outstanding pursuant to the Plan shall forthwith become fully
exercisable whether or not then exercisable, all Restricted Stock Units shall become fully
vested and settled by the issuance of Shares, and the restrictions on all Shares granted as
Restricted Stock under the Plan shall forthwith lapse; provided, however, that each such
option shall expire at the earlier of five years from the date of the Change of Control or
the expiration date specified in the option.
	 
		 	(b) Nothing contained in the Plan shall be deemed to confer upon any person any right to
continue as a director of or to be associated in any other way with Mindspeed.
	 
		 	(c) To the extent that Federal laws do not otherwise control, the Plan and all determinations
made and actions taken pursuant hereto shall be governed by the law of the State of Delaware.

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]