Document:

exv4w1

 

Exhibit 4.1

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program
Documents contained herein, each such document dated as of this 18th day of
June, 2004, relating to the issuance by Principal Life Income Fundings Trust
2004-21 (the “Trust”) of Notes to investors under Principal Life’s secured
notes program;

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

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

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

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

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

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

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

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

[Remainder of Page Left Intentionally Blank.]

 

 

SECTION A

TRUST AGREEMENT

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

W I T N E S S E T H:

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

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

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

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

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

ARTICLE 1

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

A-1

 

ARTICLE 2

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

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

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

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

     Section 2.05 Additional Terms.

     None

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

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

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

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

A-2

 

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

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

[Remainder of Page Left Intentionally Blank.]

A-3

 

SECTION B

LICENSE AGREEMENT

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

W I T N E S S E T H:

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

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

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

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

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

ARTICLE 1

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

ARTICLE 2

     Section 2.01 Additional Terms.

     None

B-1

 

     Section 2.02 Omnibus Instrument; Execution and Incorporation of Terms.

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

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

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

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

[Remainder of Page Left Intentionally Blank.]

B-2

 

SECTION C

INDENTURE

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

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

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

W I T N E S S E T H:

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

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

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

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

ARTICLE 1

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

C-1

 

ARTICLE 2

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

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

     Section 2.03 Additional Terms.

     None

     Section 2.04 Omnibus Instrument; Execution and Incorporation of Terms.

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

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

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

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

[Remainder of Page Left Intentionally Blank.]

C-2

 

SECTION D

TERMS AGREEMENT

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

W I T N E S S E T H:

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

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

ARTICLE 1

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

ARTICLE 2

     Section 2.01 Addition of Trust as Party to Distribution Agreement.

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

     Section 2.02 Purchase of Notes as Principal.

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

D-1

 

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

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

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

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

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

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

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

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

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

[Remainder of Page Left Intentionally Blank.]

D-2

 

SECTION E

COORDINATION AGREEMENT

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

W I T N E S S E T H

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

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

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

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

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

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

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

ARTICLE 1

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

E-1

 

     Section 1.02 Issuance and Purchase of the Notes.

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

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

ARTICLE 2

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

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

ARTICLE 3

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

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

ARTICLE 4

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

E-2

 

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

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

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

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

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

	 	 	 
	To the Trust:
	 	 
	 
	

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

	 	c/o U.S. Bank Trust National Association
	

	 	100 Wall Street, 16th Floor
	

	 	New York, New York 10005
	

	 	Attention: Corporate Trust Administration
	

	 	Telephone: (212) 361-2458
	

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

	 	Citibank, N.A.
	

	 	Citibank Agency & Trust
	

	 	111 Wall Street, 14th Floor, Zone 3
	

	 	New York, New York 10005
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 657-4703
	

	 	Facsimile: (212) 657-3862

E-3

 

	 	 	 
	To Principal Life:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

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

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To PFG:

	 
	

	 	Principal Financial Group, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

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

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

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

	 	Principal Financial Services, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011

E-4

 

	 	 	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

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

	 	Bankers Trust Company, N.A.
	

	 	665 Locust Street
	

	 	Des Moines, Iowa 50309-3702
	

	 	Attention: Angela C. Brick
	

	 	Telephone: (515) 245-2820
	

	 	Facsimile: (515) 247-2101

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

ARTICLE 5

     Section 5.01 Omnibus Instrument; Execution and Incorporation of Terms.

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

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

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

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

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

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

[Remainder of Page Left Intentionally Blank.]

E-5

 

SECTION F

MISCELLANEOUS AND EXECUTION PAGES

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

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

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

	 	 	 	 	 
	 	PRINCIPAL LIFE INSURANCE COMPANY (in
executing below agrees and becomes a party
to (i) the Terms Agreement set forth in
Section D herein and (ii) the Coordination
Agreement set forth in Section E herein)  

 	 
	 	By:  	/s/ Christopher P. Freese
 	 
	 	 	Name:  	Christopher P. Freese 	 
	 	 	Title:  	Officer 	 
	 
	 	PRINCIPAL FINANCIAL GROUP, INC. (in
executing below agrees and becomes a party
to (i) the Terms Agreement set forth in
Section D herein and (ii) the Coordination
Agreement set forth in Section E herein) 

 	 
	 	By:  	/s/ Elizabeth D. Swanson
 	 
	 	 	Name:  	Elizabeth D. Swanson 	 
	 	 	Title:  	Counsel 	 
	 
	 	PRINCIPAL FINANCIAL SERVICES, INC. (in
executing below agrees and becomes a party
to (i) the License Agreement set forth in
Section B herein and (ii) the Coordination
Agreement set forth in Section E herein) 

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

[Execution Page 1 of 3]

 

 

	 	 	 
	

	THE PRINCIPAL LIFE INCOME FUNDINGS TRUST
DESIGNATED IN THIS OMNIBUS INSTRUMENT (in
executing below agrees and becomes a party
to (i) the License Agreement set forth in
Section B herein, (ii) the Indenture set
forth in Section C herein, (iii) the Terms
Agreement set forth in Section D herein and
(iv) the Coordination Agreement set forth in
Section E herein)
	 
	 
	By: U.S. Bank Trust National Association,
not in its individual capacity but solely in
its capacity as trustee of the Trust
	 
	 	By:
	  /s/ Ward A. Spooner
	 	 	

	

	 	Name: Ward A. Spooner
	

	 	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/ Ward A. Spooner
	 	 	

	

	 	Name: Ward A. Spooner
	

	 	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/ Angela C. Brick
 	 
	 	 	Name:  	Angela C. Brick 	 
	 	 	Title:  	Vice President 	 
	 
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED (in executing below agrees and
becomes a party to the Terms Agreement set
forth in Section D herein)

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

[Execution Page 3 of 3]

 

 

INDEX OF EXHIBITS AND SCHEDULES TO THE OMNIBUS INSTRUMENT

	 	 	 
	Exhibit A

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

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

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

	 	Pricing Supplement – Incorporated herein by reference to the
Pricing Supplement with respect to Principal Life Income Fundings
Trust 2004-21, filed on June 21, 2004, with the Securities and
Exchange Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended.
	 
	 	 
	Exhibit E

	 	Principal Life Insurance Company Officer’s Certificate
	 
	 	 
	Exhibit F

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

	 	Terms Agreement Specifications

 

 

EXHIBIT E

Principal Life Insurance Company

Officer’s Certificate

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

	 	 	 
	1.

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

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

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

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

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

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

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

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

E-1

 

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

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

	 	 	 
	

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

	

	 	Name:
	

	 	Title:

	 	 	 	 	 

E-2

 

EXHIBIT F

Principal Life Income Fundings Trusts

Trustee Officer’s Certificate

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

	 	 	 
	1.

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

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

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

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

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

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

F-1

 

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

	 	 	 
	

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

	

	 	Name:
	

	 	Title:

F-2

 

SCHEDULE I

Terms Agreement Specifications

     In connection with Section 3(a)(iv) of the Distribution Agreement, the
Program under which the Notes are issued is rated Aa3 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 Aa3 by Moody’s. The Company’s financial
strength rating is Aa3 by Moody’s and AA by S&P.

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

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

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

I-1exv4w2

 

[Specimen certificate of the Common Shares]

Exhibit 4.2

Título Provisional No. [•]

Ampara: [•] Acciones de la Serie Única

De la [•] a la [•], representativas del capital.

Íntegramente suscritas y pagadas,

sin expresión de valor nominal.

DESARROLLADORA HOMEX, S.A. de C.V.

	 	 	 
	Domicilio:

Duración:

	 	Culiacán, Sinaloa

Indefinida

El presente título ampara [•] acciones de las [___]
([___]) acciones ordinarias, nominativas, de la serie única, sin
expresión de valor nominal representativas del total del capital sin derecho a
retiro que integran el capital social de DESARROLLADORA HOMEX, S.A. DE C.V. (la
“Sociedad”).

Este título de acciones se emite de conformidad con lo previsto en el artículo
74 de la Ley del Mercado de Valores y para los efectos de esa disposición
estará depositado en la S. D. Indeval, S.A. de C. V., Institución para el
Depósito de Valores.

El capital social es variable. El capital mínimo fijo sin derecho a retiro
asciende a la cantidad de $[___] ([___] pesos 00/100 Moneda
Nacional) y está representado por [___] acciones ordinarias, nominativas,
sin expresión del valor nominal, totalmente suscritas y pagadas, de una sola
serie (“Serie Única”). La parte variable del capital social es ilimitada y
estará representada por acciones ordinarias, nominativas, sin expresión del
valor nominal, de la Serie Única. Salvo por el derecho de retiro del que son
titulares los tenedores de acciones representativas de la parte variable del
capital social, todas las acciones del capital social confieren los mismos
derechos y obligaciones.

La Sociedad se constituyó bajo la denominación de Grupo Picsa, S.A. de C.V.
mediante escritura pública número 2,387 de fecha 30 de marzo de 1998, otorgada
ante la fe del licenciado Gerardo Gaxiola Díaz, notario público número 167 en
el Estado de Sinaloa cuyo primer testimonio quedó inscrito en el Registro
Público de la Propiedad y del Comercio del Culiacán, Sinaloa el 23 de abril de
1998 bajo la inscripción número 191 del libro número 36 primero de comercio.

La Sociedad cambió su denominación social de Grupo Picsa, S.A. de C.V. por
Desarrolladora Homex, S.A. de C.V., según consta en en la escritura pública
número 3,155 de fecha 19 de noviembre de 1999, otorgada ante el Lic. Oscar
Guillermo Corrales López, titular de la notaría pública número 54 del Culiacán,
Sinaloa, cuyo primer testimonio quedó inscrito en el Registro Público de la
Propiedad y Comercio de Culiacán, Sinaloa el 6 de diciembre de 1999 bajo la
inscripción número 22 del libro número 54 primero de comercio.

La Sociedad es de nacionalidad mexicana. Todo extranjero que adquiera un
interés o participación social en la Sociedad se obliga a considerarse como
nacional respecto de uno y otra, así como de los bienes, derechos, concesiones,
participaciones o intereses de que sea titular la Sociedad o bien de los
derechos y obligaciones que deriven de los convenios en los que sea parte la
Sociedad con autoridades mexicanas, y a no invocar por lo mismo la protección
de su gobierno, bajo la pena, en caso contrario, de perder dicho interés o
participación social en beneficio de la Nación.

Culiacán, Sinaloa a 29 de junio de 2004

	 	 	 
	Eustaquio Tomás De Nicolás Gutiérrez

Consejero
	 	Luis Harvey McKissack

Consejero

 

 

Principales Derechos y Obligaciones de los Accionistas

ARTICULO SEXTO. El capital social es variable. El capital fijo sin derecho a
retiro asciende a la cantidad de $[___] (___pesos 00/100 Moneda
Nacional) y estará representado por [___] acciones ordinarias,
nominativas, sin expresión del valor nominal, totalmente suscritas y pagadas,
de una sola serie (“Serie Única”). La parte variable del capital social es
ilimitada y estará representada por acciones ordinarias, nominativas, sin
expresión del valor nominal, de la Serie Única. Salvo por el derecho de retiro
del que son titulares los tenedores de acciones representativas de la parte
variable del capital social, todas las acciones del capital social confieren
los mismos derechos y obligaciones.

Según lo establecido por el artículo 14 Bis 3, fracción II de la Ley del
Mercado de Valores, previa autorización de la Comisión Nacional Bancaria y de
Valores, la Sociedad podrá emitir acciones sin derecho a voto, al igual que con
la limitante de otros derechos corporativos, así como acciones de voto
restringido distintas a las que prevé el artículo 113 de la Ley General de
Sociedades Mercantiles, con las limitaciones y requisitos establecidas en dicho
artículo. Al momento de emisión de dichas acciones, la asamblea de accionistas
que acuerde su emisión determinará los derechos que les correspondan a las
acciones motivo de la emisión. En su caso, las acciones que se emitan al amparo
de este párrafo, serán de una serie distinta a las demás acciones que
representen el capital social de la Sociedad.

ARTICULO SÉPTIMO. La Sociedad podrá emitir acciones no suscritas, las cuales se
conservarán en la tesorería de la Sociedad para ser entregadas en la medida que
se realice su suscripción y pago.

Asimismo, previa autorización expresa de la Comisión Nacional Bancaria y de
Valores, la Sociedad podrá emitir acciones no suscritas para su colocación en
el público, siempre que se mantengan en custodia en una institución para el
depósito de valores y se cumplan las condiciones previstas al efecto por el
artículo 81 de la Ley del Mercado de Valores.

ARTICULO NOVENO. La Sociedad llevará un libro de registro de acciones
nominativas, de acuerdo con los artículos 128 y 129 de la Ley General de
Sociedades Mercantiles y, en su caso, en términos del artículo 78 de la Ley
del Mercado de Valores. El libro de registro de acciones deberá ser llevado,
por el Secretario del Consejo de Administración de la Sociedad, a menos que
los accionistas o el Consejo de Administración designen a una persona
diferente para llevar dicho registro. La Sociedad podrá en los términos
legales correspondientes, encomendar a instituciones para el depósito de
valores, el registro de acciones y la realización de las inscripciones
respectivas en el registro de acciones.

La Sociedad considerará como tenedor legítimo a quien aparezca inscrito en el
libro de registro de acciones nominativas.

ARTICULO DÉCIMO PRIMERO. Con excepción de los aumentos del capital social
resultantes de la colocación de acciones propias a que se refiere el artículo
Octavo de los estatutos sociales, los aumentos del capital social se
efectuarán por resolución de la asamblea general ordinaria o extraordinaria de
accionistas, según sea el caso, conforme a lo previsto en la Ley General de
Sociedades Mercantiles y las reglas previstas en este Artículo.

En los aumentos de capital social podrá acordarse la emisión de acciones.
Los aumentos del capital social en su parte fija se harán por resolución de la
asamblea general extraordinaria de accionistas de conformidad con los
estatutos sociales. En este caso, se requerirá además de la reforma de estos
estatutos sociales.

Los aumentos del capital social en su parte variable, salvo que resulten de la
colocación de acciones propias adquiridas en los términos del artículo Octavo
de los estatutos sociales, se harán por resolución de la asamblea general
ordinaria de accionistas de conformidad con los estatutos sociales, con la
única formalidad de que el acta correspondiente sea protocolizada ante notario
público, sin necesidad de inscribir la escritura respectiva en el Registro
Público de Comercio.

Al tomarse los acuerdos respectivos a aumentos del capital social, la asamblea
de accionistas que decrete el aumento, o cualquier asamblea de accionistas
posterior, fijará los términos y condiciones en los que deba de llevarse a
cabo dicho aumento, quien a su vez podrá delegar esa facultad al Consejo de
Administración.

Las acciones que por resolución de la asamblea que decrete su emisión deban
entregarse a medida que se realice su suscripción, podrán ser ofrecidas para
suscripción y pago por el Consejo de Administración o por el delegado o los
delegados especiales, de acuerdo con las facultades que a éstos hubiese
otorgado la asamblea de accionistas, respetando en todo caso los derechos de
preferencia que se establecen en el artículo Décimo Segundo de los estatutos
sociales.

Los aumentos de capital podrán efectuarse mediante capitalización de cuentas
del capital contable a que se refiere el artículo 116 de la Ley General de
Sociedades Mercantiles o mediante pago en efectivo o en especie, o por
capitalización de pasivos. En los aumentos por capitalización de cuentas del
capital contable, todas las acciones tendrán derecho a la parte proporcional
que les corresponda del aumento, sin que sea necesario emitir nuevas acciones
que lo representen.

Salvo por los aumentos del capital social resultantes de la colocación de
acciones propias adquiridas por la Sociedad en los términos del artículo
Octavo de los estatutos sociales, todo aumento del capital social deberá
inscribirse en el registro que a tal efecto llevará la Sociedad, a través de
la persona designada conforme al artículo Noveno de losestatutos sociales.

ARTICULO DÉCIMO SEXTO. Los títulos definitivos o los certificados
provisionales que representen a las acciones serán nominativos y podrán
amparar una o más acciones, contendrán las menciones a que se refiere el
artículo 125 de la Ley General de Sociedades Mercantiles y la indicación de la
serie o subserie, llevarán inserto el texto del artículo Quinto de los
estatutos sociales, y serán suscritos por dos miembros propietarios del
Consejo de Administración.

Cuando se trate de títulos de acciones que se depositen en una institución para
el depósito de valores o cuando dicha institución reciba directamente de la
Sociedad valores provenientes del ejercicio de derechos patrimoniales que haga
efectivos por cuenta de sus depositantes, la Sociedad podrá, previa aprobación
de la institución para el depósito de valores, entregarle títulos múltiples o
un solo título que amparen las acciones

 

 

materia de la emisión y del depósito, debiendo la propia institución hacer los
asientos necesarios para que queden determinados los derechos de los
respectivos depositantes. En tal caso, los títulos que las representen serán
emitidos con la mención de estar depositados en la institución para el depósito
de valores de que se trate, sin que se requiera expresar en el documento el
nombre, el domicilio, ni la nacionalidad del titular. Cuando así lo convengan
la Sociedad y la institución para el depósito de valores, podrán emitirse
títulos que no lleven cupones adheridos. En este caso, las constancias que
expida la institución para el depósito de valores de que se trate harán las
veces de dichos títulos accesorios para todos los efectos legales, en los
términos de la Ley del Mercado de Valores.

ARTICULO DÉCIMO OCTAVO. Las convocatorias para asambleas de accionistas
deberán ser hechas por el Consejo de Administración, por su Presidente o por
el o los Comisarios. Los accionistas con acciones con derecho a voto, incluso
en forma limitada o restringida, que representen cuando menos el 10% (diez por
ciento) del capital social podrán solicitar se convoque a una asamblea general
de accionistas en los términos señalados en el artículo 184 de la Ley General
de Sociedades Mercantiles.

Cualquier accionista tendrá el mismo derecho en cualquiera de los casos a que
se refiere el artículo 185 de la Ley General de Sociedades Mercantiles. Si no
se hiciese la convocatoria dentro de los 15 (quince) días siguientes a la
fecha de solicitud, un Juez de lo Civil o de Distrito del domicilio de la
Sociedad, lo hará a petición de cualquier accionista interesado, quien deberá
acreditar la titularidad de sus acciones para este objeto.

Las convocatorias para las asambleas generales ordinarias, extraordinarias o
especiales deberán publicarse en el periódico oficial del domicilio social de
la Sociedad o en uno de los diarios de mayor circulación en dicho domicilio,
por lo menos con 15 (quince) días de anticipación a la fecha fijada para la
asamblea. Las convocatorias contendrán el orden del día y deberán estar
firmadas por la persona o las personas que las hagan.

Desde el momento en que se publique la convocatoria para las asambleas de
accionistas, deberán estar a disposición de los mismos, de forma inmediata y
gratuita, la información y los documentos relacionados con cada uno de los
puntos del orden del día a tratarse en la asamblea a la cual se convocó.

De conformidad con lo establecido en el segundo párrafo del artículo 178 de la
Ley General de Sociedades Mercantiles, las resoluciones tomadas fuera de
asamblea, por unanimidad de los accionistas que representen todas las acciones
con derecho a voto o de la serie especial de acciones de que se trate, en su
caso, tendrán para todos los efectos legales la misma validez que si hubieren
sido adoptadas reunidos en asamblea general o especial, respectivamente,
siempre que los accionistas las confirmen por escrito.

ARTICULO DÉCIMO NOVENO. Sólo las personas inscritas como accionistas en el
Libro de Registro de Acciones, así como las que presenten las constancias
emitidas por el S.D. Indeval, S.A. de C.V., Institución para el Depósito de
Valores, tendrán derecho de comparecer o de ser representadas en las asambleas
de accionistas, para lo cual será aplicable lo dispuesto en la Ley del Mercado
de Valores. Los accionistas podrán ser representados en las asambleas por la
persona o las personas que para ello designen mediante poder otorgado en
formulario elaborado por la Sociedad, el cual deberá reunir los requisitos
señalados en el artículo 14 bis tres fracción VI, inciso c) de la Ley del
Mercado de Valores. La Sociedad deberá mantener a disposición de los
intermediarios del mercado de valores que acrediten contar con la
representación de los accionistas de la propia Sociedad, por lo menos quince
(15) días naturales antes de la fecha de la asamblea respectiva, los referidos
formularios de poderes, de lo cual se cerciorará el Secretario de la Sociedad,
haciéndolo constar en el acta de la Asamblea.

El Secretario del Consejo de Administración estará obligado a cerciorarse de
la observancia de lo dispuesto en el párrafo anterior, e informar sobre ello a
la asamblea de accionistas, lo que se hará constar en el acta respectiva.

Cada accionista o su representante tendrá derecho a un voto por cada acción.
Los miembros del Consejo de Administración, funcionarios y Comisarios de la
Sociedad no podrán representar a ningún accionista en las asambleas de
accionistas de la Sociedad.

ARTICULO VIGÉSIMO SÉPTIMO. La dirección y administración de los negocios y
bienes de la Sociedad estará confiada a un Consejo de Administración que
estará compuesto por un mínimo de 5 (cinco) y un máximo de 20 (veinte)
miembros conforme lo resuelva la asamblea de accionistas correspondiente, de
los cuales por lo menos el 25% (veinticinco por ciento) deberán ser
independientes, en términos de lo previsto en el artículo 14 Bis de la Ley del
Mercado de Valores. Por cada Consejero Propietario deberá designarse su
respectivo suplente. Los consejeros serán designados de la siguiente forma:

	1.	 	Todo accionista o grupo de accionistas que represente cuando menos el 10%
(diez por ciento) de las acciones con derecho a voto, tendrá derecho a
designar a un consejero y su respectivo suplente, para el caso de ausencia
del primero, por resolución de la asamblea general ordinaria convocada
para tal efecto.
	 
	2.	 	Toda minoría de acciones de voto restringido distintas a las que prevé el
artículo 113 de la Ley General de Sociedades Mercantiles o de voto
limitado a que alude dicho precepto, que represente cuando menos el 10%
(diez por ciento) del capital social en una o ambas series de acciones,
tendrá el derecho a designar por lo menos a un consejero y su respectivo
suplente; a falta de esta designación de minorías, el conjunto de los
tenedores de dicha clase de acciones gozarán el derecho de nombrar a por
lo menos dos consejeros y sus suplentes. En el segundo caso, las
designaciones, así como la sustitución y revocación de consejeros, serán
acordados en asamblea especial. Sólo podrán revocarse los nombramientos
de estos consejeros, cuando se revoque el de todos los demás.

La designación o elección de los miembros del Consejo de Administración será
hecha por la asamblea general ordinaria o especial de accionistas, según sea el
caso, por el voto favorable de la mayoría de los tenedores de las acciones
representativas del capital social que se encuentren presentes en la asamblea
correspondiente.

ARTICULO CUADRAGÉSIMO OCTAVO. Todos los conflictos, disputas, diferencias o
desacuerdos insuperables que surjan entre dos o más accionistas o entre dos o
más grupos de accionistas o entre cualquiera de ellos y la Sociedad, que
deriven de los presentes estatutos o que guarden relación con los

 

 

mismos, serán resueltos definitivamente mediante arbitraje, de acuerdo con el
Reglamento de Arbitraje de la Cámara Internacional de Comercio, que se
conducirá en la Ciudad de México, D.F., por un tribunal integrado por tres
árbitros mexicanos, peritos en derecho. Cada uno de los involucrados designará
a un árbitro y el tercero, quien presidirá, será designado por los árbitros
designados por las partes involucradas. Si una de las partes no designara al
árbitro que le corresponde dentro de los 10 (diez) días hábiles siguientes a la
fecha de notificación en que se demande el inicio del procedimiento arbitral
por la otra parte, o si los dos árbitros no llegarán a un acuerdo sobre la
designación del tercero dentro de los 10 (diez) días hábiles siguientes a su
designación, la Cámara Internacional de Comercio hará la designación del
árbitro no designado por la parte remisa, o del árbitro tercero, según sea el
caso.

El laudo definitivo será inapelable y obligatorio para la partes y podrá ser
presentado por cualquiera de ellas ante un tribunal competente de la Ciudad de
México, Distrito Federal para su ejecución, y las partes expresamente se
someten a la jurisdicción de dicho tribunal con el único objeto de la ejecución
del laudo que se emita conforme a este Artículo.

 

 

[English Translation for Informational Purposes Only]

	 	 	 
	Provisional Certificate No. [•]
	 	 
	 
	 	 
	

	 	Covers: [•] Single-series
shares of stock

From [•] to [•],
representing share capital

Fully subscribed and paid
for, without par value

DESARROLLADORA HOMEX, S.A. de C.V.

	 	 	 
	Place of Business:

	 	Culiacán, Sinaloa
	Duration:

	 	Indefinite

This certificate covers [•] shares of stock out of the [   ]
([   ]) common, registered, single-series shares without par value
and representing the total share capital, which cannot be withdrawn, that make
up the share capital of DESARROLLADORA HOMEX, S.A. DE C.V. (hereinafter
referred to as the “Company”).

This stock certificate is issued pursuant to the provisions of Section 74 of
the Securities Market Act and for the purposes thereof will be deposited with
S.D. Indeval, S.A. de C. V., a Securities Deposit Institution.

The share capital is variable. The minimum fixed capital that cannot be
withdrawn amounts to Ps.[   ] and is represented by [   ] common,
registered shares, without par value, fully subscribed and paid for, belonging
to only one series (hereinafter “Single Series”). The variable portion of the
share capital is unlimited and will be represented by common, registered,
Single Series shares without par value. Except for the right of withdrawal
vested in the holders of the shares representing the variable portion of the
share capital, all shares of stock will confer the same rights and obligations.

The Company was established under the name Grupo Picsa, S.A. de C.V. by means
of Public Deed No. 2,387 dated March 30, 1998, granted before Mr. Gerardo
Gaxiola Díaz, Notary Public No. 167 of the State of Sinaloa, the first
certified copy of which was recorded in the Public Registry of Property and
Commerce of Culiacán, Sinaloa on April 23, 1998 under Entry No. 191 of Book No.
36, in Section one of Commerce.

The Company then changed its corporate name from Grupo Picsa, S.A. de C.V. to
Desarrolladora Homex, S.A. de C.V., as it appears in Public Deed No. 3,155
dated November 19, 1999, granted before Mr. Oscar Guillermo Corrales López, a
notary public holding Commission No. 54 of Culiacán, Sinaloa, the first
certified copy of which was recorded in the Public Registry of Property and
Commerce of Culiacán, Sinaloa on December 6, 1999 under Entry No. 22 of Book
No. 54, in Section one of Commerce.

The Company is a Mexican legal entity. Any foreigner who purchases an interest
or holds shares in the Company will be considered Mexican in regard to both, as
well as in regard to the assets, rights, concessions, shares or interests that
the Company holds or in regard to the rights and obligations arising from the
agreements that the Company may have entered into with Mexican authorities.
Further any such individual will agree not to invoke the protection of his/her
own government subject to the penalty of forfeiting such interest or share to
the nation of Mexico.

Culiacán, Sinaloa, June 29, 2004

	 	 	 
	Eustaquio Tomás De Nicolás Gutiérrez

Director
	 	Luis Harvey McKissack

Director

 

 

Main Rights and
Obligations of Shareholders

ARTICLE SIX. The share capital is variable. Fixed capital, which cannot be
withdrawn, amounts to Ps.[   ] and will be represented by [   ]
common, registered shares, without par value, fully subscribed and paid for,
belonging to one series exclusively (“Single Series”). The variable portion of
share capital will be unlimited and represented by common, registered, Single
Series shares, without par value. Except for the right of withdrawal vested in
the holders of shares representing the variable portion of share capital, all
shares of stock will confer the same rights and obligations.

As provided for in Section 14.3, Part II of the Securities Market Act, prior to
authorization by the National Banking and Securities Commission the Company
will have the right to issue shares without voting right, or with a
limitation on other corporate rights, and will further have the
right to issue shares with restricted voting rights different from the
ones established in Section 113 of the General Business Corporations Act,
subject to the limitations and requirements set forth in said section. Upon
stock issuance the rights attaching to the shares issued will be
determined at the shareholders’ meeting where said shares are agreed to be
issued. If such should prove to be the case, the shares issued pursuant to this
paragraph will belong to a series other than that of the other shares
representing the share capital of the Company.

ARTICLE SEVEN. The Company will have the right to issue non-subscribed shares,
which will be kept in the Company’s treasury to be delivered as they are
subscribed and paid for.

Furthermore, subject to the express authorization by the National Banking and
Securities Commission, the Company will have the right to issue non-subscribed
shares to be offered to the public, provided that they are kept in escrow by a
securities-deposit institution and that the conditions foreseen for that
purpose in Section 81 of the Securities Market Act are duly met.

ARTICLE NINE. The Company will keep a registered share registry in accordance
with articles 128 and 129 of the Mexican General Business Corporations Act and,
if applicable, in accordance with Article 78 of the Mexican Securities Market
Act. The share registry will be maintained by the Secretary of the Company’s
Board of Directors, unless the shareholders or the Board of Directors appoint a
different person to take charge of said registration. The Company may entrust
to other institutions the deposit of the shares, their registration, and the
adoption of the pertinent steps for share registration pursuant to law.
The Company will consider those who are listed in share registries as
legitimate holders of the shares.

ARTICLE ELEVEN. Except for share capital increases resulting from the placement
of Company’s own shares under Article 8 of the bylaws, increases in share
capital will take place pursuant to a resolution adopted at an ordinary or
extraordinary shareholders’ meeting, in accordance with the Mexican General
Business Corporations Act and the rules set forth in this article.

Increases in share capital may take place through the issuance of shares.

Increases in fixed-share capital will take place pursuant to a resolution
adopted at an extraordinary shareholders’ meeting in accordance with these
bylaws. In this case, an amendment of the bylaws will become necessary.

Increases in variable-share capital, aside from those resulting from the
placement of the Company’s own shares acquired as per Article 8 of the bylaws,
will take place pursuant to a resolution adopted at an ordinary shareholders’
meeting pursuant to the bylaws, subject to the single requirement that the
pertinent minutes be attested to by a notary public, without the necessity of
registering the pertinent deed with the Public Commercial Registry.

After reaching the pertinent agreements to increase share capital, the
shareholders’ meeting that approves the increase, or any subsequent
shareholders’ meeting, will fix the terms and conditions for the increase, but
may also delegate this duty to the Board of Directors.

The shares are to be delivered as they are subscribed for in accordance
with the resolution adopted at the shareholders’ meeting that
approves their
issuance and may be offered for subscription and payment by the Board of Directors
or by the special delegate or delegates in accordance with the powers granted
to them by the shareholders’ meeting, taking into account at all times the
preemptive rights listed in Article Twelve of the bylaws.

Increases in capital may be effected through a capitalization of shareholders’
equity accounts as referred to under Section 116 of the Mexican General
Business Corporations Act or through a payment in cash or in kind or through
the capitalization of liabilities. In the case of an increase through the
capitalization of shareholders’ equity accounts, all shares will entitle their
holders to their proportional part of the increase, without the necessity of
issuing new shares to represent the increase.

Except for the share capital increases resulting from a placement of Company’s
own shares in accordance with Article Eight of the bylaws, all share capital
increases will be recorded by the person appointed as per Article Nine of the
bylaws in the book kept by the Company to that end.

ARTICLE SIXTEEN. The final titles or provisional certificates that represent
the shares will be registered and may represent one or more shares, will
include the wording mentioned in Section 125 of the Mexican General Business
Corporations Act, will indicate the corresponding series or sub-series, will
contain the text of Article Five of these bylaws, and will be signed by two
shareholding members of the Board of Directors.
In the case of shares deposited in a securities deposit institution or when
said institution receives directly from the Company securities resulting from
the institution’s exercise of property rights on behalf of its depositors,
after approval by the securities deposit institution the Company may deliver to
such institution multiple certificates or a single certificate representing the
shares issued and deposited. The institution will make the necessary entries in
the registration book to set out the rights of the respective depositors. In
this

 

 

case, titles will be issued including the statement that they are deposited in
a securities deposit institution and it will not be necessary to state the
name, domicile or nationality of the title holder. When so agreed upon by the
Company and the securities deposit institution, titles may be issued without
attached coupons. In this case, the certificates issued by the securities
deposit institution in question will replace said titles for all legal effects,
in accordance with the Mexican Securities Market Act.

ARTICLE EIGHTEEN. Shareholders’ meetings may be called by the Chairman or the
Statutory Auditor or Auditors of the Board of Directors. Shareholders holding
voting shares, including those granting limited or restricted rights, such
shares representing at least 10% (ten percent) of share capital, may request
that a general shareholders’ meeting be called, pursuant to Section 184 of the
Mexican General Business Corporations Act.

Any shareholder will have the same right in any of the cases described in
Section 185 of the Mexican General Business Corporations Act. If a
shareholders’ meeting is not called within 15 (fifteen) days following the date
of request, a Civil or District Judge having jurisdiction over the domicile of
the Company will call a shareholders’ meeting upon the petition of any
interested shareholder, who will need to prove title to the shares for that
purpose.

The notice of ordinary, extraordinary or special shareholders’ meetings will be
published in the official gazette in the place where the Company is domiciled
or in a newspaper of general circulation in the place of said domicile, at
least 15 (fifteen) days prior to the date established for the shareholders’
meeting. The summons for the shareholders’ meeting will contain the agenda and
will be signed by the person or the persons calling the shareholders’ meeting.

From the moment the summons for the shareholders’ meeting is published, the
information and documents related to each item on the agenda to be discussed in
the shareholders’ meeting should be available at the Company’s offices,
immediately and at no charge.

Pursuant to the second paragraph of Article 178 of the Mexican General Business
Corporations Act, resolutions made outside a shareholders’ meeting by the
unanimous vote of the shareholders that represent all voting shares or all the
shares of the special series of shares involved will have, for all legal
purposes, the same validity as if they had been adopted within a general or
special shareholders’ meeting, respectively, provided that the shareholders
confirm their decision in writing.

ARTICLE NINETEEN. Only the persons who are registered as shareholders in the
Share Registry, as well as those that submit the evidence required by S.D.
Indeval, S.A. de C.V., a Securities Deposit Institution, will be entitled to
attend or to be represented in shareholders’ meetings, subject to the
provisions of the Mexican Securities Market Act. Shareholders may be
represented in the shareholders’ meeting by a person or by persons appointed
through a power of attorney granted according to the model drafted by the
Company, which will meet the requirements listed in Section 14.3 Part VI,
Subsection C of the Mexican Securities Market Act. The Company will keep at the
disposal of stock exchange agents in order to demonstrate the proxy
representation of Company Shareholders the power of attorney at least fifteen
(15) calendar days prior to the date of the respective shareholders’ meeting,
which will be attested to by the Secretary of the Company and recorded in the
minutes of the shareholders’ meeting.

The Secretary of the Board of Directors will check compliance with the
requirements as per the paragraph above and will inform the shareholders’
meeting about it, which will be duly recorded in the pertinent minutes.

Each shareholder or his/her proxy will be entitled to one vote per share.

The members of the Board of Directors, officers and Statutory Auditors of the
Company may not represent any shareholder in corporate shareholders’ meetings.

ARTICLE TWENTY-SEVEN. The management and administration of Company business and
assets will be entrusted to a Board of Directors composed by at least 5 (five)
and at most 20 (twenty) members as decided at the corresponding shareholders’
meeting, out of whom at least 25% (twenty-five percent) will be independent as
per Section 14 of the Mexican Securities Market Act. An alternate director will
be appointed for each regular Shareholding Director. Directors will be
appointed as follows:

	 	1.	 	All shareholders or groups of shareholders representing at least 10% (ten
percent) of the shares with voting rights will be entitled to appoint a
director and the corresponding alternate director, in the event the
regular director is absent, as per the resolution adopted at an ordinary
shareholders’ meeting held to that end.
	 
	 	2.	 	All minority shares with restricted voting rights other than those set
forth in Section 113 of the Mexican General Business Corporations Act or
all limited vote shares described therein representing at least 10% (ten
percent) of share capital of one or both series of shares will grant the
right to appoint at least one director and the corresponding alternate
director; if this appointment by minority shareholders does not take
place, all of the holders of said class of shares will enjoy the right to
name at least two directors and the corresponding alternate directors. In
the second case, appointments, substitutions and revocations of directors,
will be decided at a special shareholders’ meeting. The appointment of
these directors may only be revoked if the appointment of all other
directors is revoked.

Members of the Board of Directors will be appointed or elected at an ordinary
or special shareholders’ meeting, as the case may be, through the favorable
vote of a majority of the holders of the shares representing the share capital
that are present at the corresponding shareholders’ meeting.

ARTICLE FORTY-EIGHT. All conflicts, disputes, differences or insurmountable
disagreements arising among two or more shareholders or among two or more
groups of shareholders or between any shareholder and the Company as a result
of these bylaws or in relation thereto will be finally settled through
arbitration in accordance with the Arbitration Rules of the International
Chamber of Commerce, which will be conducted

 

 

in Mexico, Federal District, by a court of three Mexican arbitrators skilled in
law. Each one of the parties involved will appoint an arbitrator and the third
one, who will preside over the court, will be appointed by the party
arbitrators. If one of the parties fails to appoint an arbitrator within 10
(ten) business days following the date of notice of the commencement of the
arbitration proceeding or if the two arbitrators cannot agree on the
appointment of the third one within 10 (ten) business days following their
appointment, the International Chamber of Commerce will appoint the arbitrator
that has not been designated by the remiss party, or the third arbitrator, as
the case may be.

The final decision cannot be appealed and will be binding on the parties and
can be filed by either party with a competent court within Mexico City, Federal
District, to be enforced accordingly; the parties expressly submit themselves
to the jurisdiction of said court with the only aim of enforcing the decision
reached in accordance with this Article.

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