EX-99.H OTH MAT CONT 10 service-subagrmt.txt SERVICE SUBAGREEMENT AMENDED AND RESTATED SERVICE SUB-AGREEMENT AGREEMENT to be effective September 30, 2005, by and between PRINCIPAL MANAGEMENT CORPORATION (the "Manager") and Executive Benefit Services, Inc. ("EBS"). In consideration of the premises and mutual agreements herein contained, the Manager hereby appoints EBS to provide personal services to shareholders and beneficial owners as described herein and EBS agrees to act, perform or assume the responsibility therefore in the manner and subject to the conditions hereinafter set forth. 1. SERVICES FURNISHED BY EBS EBS will provide personal services to shareholders and beneficial owners of Advisors Preferred Class, Preferred Class and Select Class (the "Plan Classes") shares of each Series of Principal Investors Fund, Inc. ("Fund") that currently exists or hereafter is created and that offers the Plan Classes. Personal services include: (a) responding to plan sponsor and plan member inquiries; (b) providing information regarding plan sponsor and plan member investments; (c) other similar personal services or services related to the maintenance of shareholder accounts as contemplated by NASD Rule 2830, or any successor thereto. In the carrying out of this function, EBS may contract with others, including companies affiliated with EBS, for data systems, processing services and other administrative services. EBS may at any time or times in its discretion appoint (and may at any time remove) other parties, including companies affiliated with EBS, as its agent to carry out such provisions of the Agreement as EBS may from time to time direct; provided, however, that the appointment of any such agent shall not relieve EBS of any of its responsibilities or liabilities hereunder. 2. COMPENSATION FOR SERVICES The Manager will pay EBS service fees as described in Appendix A hereto for services provided pursuant to this agreement. Service fees under this Agreement will be calculated and accrued daily and paid monthly to EBS, or at such other intervals as the Manager and EBS may agree. For purpose of this Agreement, "service fees" shall mean payments in connection with the provision of personal, continuing services to investors in the Fund and/or the maintenance of shareholder accounts, excluding (i) transfer agent and sub-transfer agent services for beneficial owners of the Fund's shares, (ii) aggregating and processing purchase and redemption orders, (iii) providing beneficial owners with account statements, processing dividend payments, (iv) providing sub-accounting services for shares held beneficially, (v) forwarding shareholder communications to beneficial owners, and (vi) receiving, tabulating and transmitting proxies executed by beneficial owners; provided, however, that if the NASD adopts a definition of "service fees" for purposes of NASD Rule 2830 (or any successor to such rule) that differs from the definition of "service activities" hereunder, or if the NASD adopts a related definition intended to define the same concept, the definition of "service fees" in this Section shall be automatically amended, without further action of the parties, to conform to such NASD definition. 3. LIMITATION OF LIABILITY OF EBS EBS shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Manager in connection with the matters to which this Agreement relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on EBS' part in the performance of its duties or from reckless disregard by it of its obligations and duties under this Agreement. 4. TERMINATION OF THIS AGREEMENT This Agreement may, on sixty days written notice, be terminated at any time without the payment of any penalty, by the Manager or by EBS. 5. AMENDMENT OF THIS AGREEMENT No provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought. 6. ADDRESS FOR PURPOSE OF NOTICE Any notice under this Agreement shall be in writing, addressed and delivered or mailed, postage prepaid, to the other party at such address as such other party may designate for the receipt of such notices. Until further notice to the other party, it is agreed that the address of the Manager and EBS for this purpose shall be the Principal Financial Group, Des Moines, Iowa 50392. 7. MISCELLANEOUS The captions in this Agreement are included for convenience of reference only, and in no way define or limit any of the provisions hereof or otherwise affect their construction or effect. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized. Principal Management Corporation /s/Ernest H. Gillum By _____________________________________________ Ernest H. Gillum, Vice President Executive Benefit Services, Inc. /s/Andrew P. Dalgliesh By ________________________________________________ Andrew P. Dalgliesh, Chief Financial Officer PRINCIPAL INVESTORS FUND, INC. SCHEDULE A
Annualized Fee as a Percentage Of Average Daily Net Assets Series Share Class Bond & Mortgage Securities Advisors Preferred 0.112% Disciplined LargeCap Blend Advisors Preferred 0.112% Diversified International Fund Advisors Preferred 0.252% Government & High Quality Bond Advisors Preferred 0.112% High Quality Int Term Bond Advisors Preferred 0.056% Inflation Protection Advisors Preferred 0.056% International Emerging Markets Advisors Preferred 0.252% International Growth Fund Advisors Preferred 0.252% LargeCap Growth Advisors Preferred 0.112% LargeCap S&P 500 Index Advisors Preferred 0.056% LargeCap Value Advisors Preferred 0.112% MidCap Blend Advisors Preferred 0.112% MidCap Growth Advisors Preferred 0.112% MidCap S&P 400 Index Advisors Preferred 0.056% MidCap Value Advisors Preferred 0.112% Money Market Advisors Preferred 0.112% Partners Global Equity Advisors Preferred 0.112% Partners Large Cap Growth Advisors Preferred 0.112% Partners LargeCap Blend Advisors Preferred 0.112% Partners LargeCap Blend I Advisors Preferred 0.112% Partners LargeCap Growth I Advisors Preferred 0.112% Partners LargeCap Growth II Advisors Preferred 0.112% Partners LargeCap Value Advisors Preferred 0.112% Partners LargeCap Value I Advisors Preferred 0.112% Partners LargeCap Value II Advisors Preferred 0.112% Partners MidCap Growth Advisors Preferred 0.112% Partners MidCap Growth II Advisors Preferred 0.112% Partners MidCap Value Advisors Preferred 0.112% Partners SmallCap Blend Advisors Preferred 0.112% Partners SmallCap Growth I Advisors Preferred 0.112% Partners SmallCap Growth II Advisors Preferred 0.112% Partners SmallCap Growth III Advisors Preferred 0.112% Partners SmallCap Value Advisors Preferred 0.112% Partners SmallCap Value I Advisors Preferred 0.112% Partners SmallCap Value II Advisors Preferred 0.112% Real Estate Securities Advisors Preferred 0.056% Short-Term Bond Advisors Preferred 0.056% SmallCap Blend Advisors Preferred 0.112% SmallCap Growth Advisors Preferred 0.112% SmallCap S&P 600 Index Advisors Preferred 0.056% SmallCap Value Advisors Preferred 0.112% Ultra Short Term Fund Advisors Preferred 0.112% Bond & Mortgage Securities Preferred 0.116% Disciplined LargeCap Blend Preferred 0.116% Diversified International Fund Preferred 0.261% Government & High Quality Bond Preferred 0.116% High Quality Int Term Bond Preferred 0.058% Inflation Protection Preferred 0.058% International Emerging Markets Preferred 0.261% International Growth Fund Preferred 0.261% LargeCap Growth Preferred 0.116% LargeCap S&P 500 Index Preferred 0.058% LargeCap Value Preferred 0.116% MidCap Blend Preferred 0.116% MidCap Growth Preferred 0.116% MidCap S&P 400 Index Preferred 0.058% MidCap Value Preferred 0.116% Money Market Preferred 0.116% Partners Global Equity Preferred 0.116% Partners LargeCap Blend Preferred 0.116% Partners LargeCap Blend I Preferred 0.116% Partners LargeCap Growth Preferred 0.116% Partners LargeCap Growth I Preferred 0.116% Partners LargeCap Growth II Preferred 0.116% Partners LargeCap Value Preferred 0.116% Partners LargeCap Value I Preferred 0.116% Partners LargeCap Value II Preferred 0.116% Partners MidCap Growth Preferred 0.116% Partners MidCap Growth II Preferred 0.116% Partners MidCap Value Preferred 0.116% Partners SmallCap Blend Preferred 0.116% Partners SmallCap Growth I Preferred 0.116% Partners SmallCap Growth II Preferred 0.116% Partners SmallCap Growth III Preferred 0.116% Partners SmallCap Value Preferred 0.116% Partners SmallCap Value I Preferred 0.116% Partners SmallCap Value II Preferred 0.116% Real Estate Securities Preferred 0.058% Short-Term Bond Preferred 0.058% SmallCap Blend Preferred 0.116% SmallCap Growth Preferred 0.116% SmallCap S&P 600 Index Preferred 0.058% SmallCap Value Preferred 0.116% Ultra Short Term Fund Preferred 0.116% Bond & Mortgage Securities Select 0.108% Disciplined LargeCap Blend Select 0.108% Diversified International Fund Select 0.243% Government & High Quality Bond Select 0.108% High Quality Int Term Bond Select 0.054% Inflation Protection Select 0.054% International Emerging Markets Select 0.243% International Growth Fund Select 0.243% LargeCap Growth Select 0.108% LargeCap S&P 500 Index Select 0.054% LargeCap Value Select 0.108% MidCap Blend Select 0.108% MidCap Growth Select 0.108% MidCap S&P 400 Index Select 0.054% MidCap Value Select 0.108% Money Market Select 0.108% Partners Global Equity Select 0.108% Partners LargeCap Blend Select 0.108% Partners LargeCap Blend I Select 0.108% Partners LargeCap Growth Select 0.108% Partners LargeCap Growth I Select 0.108% Partners LargeCap Growth II Select 0.108% Partners LargeCap Value Select 0.108% Partners LargeCap Value I Select 0.108% Partners LargeCap Value II Select 0.108% Partners MidCap Growth Select 0.108% Partners MidCap Growth II Select 0.108% Partners MidCap Value Select 0.108% Partners SmallCap Blend Select 0.108% Partners SmallCap Growth I Select 0.108% Partners SmallCap Growth II Select 0.108% Partners SmallCap Growth III Select 0.108% Partners SmallCap Value Select 0.108% Partners SmallCap Value I Select 0.108% Partners SmallCap Value II Select 0.108% Real Estate Securities Select 0.054% Short-Term Bond Select 0.054% SmallCap Blend Select 0.108% SmallCap Growth Select 0.108% SmallCap S&P 600 Index Select 0.054% SmallCap Value Select 0.108% Ultra Short Term Fund Select 0.108%