THIRD AMENDMENT TO THE
               PRINCIPAL INTERNATIONAL EMERGING MARKETS FUND, INC.
                             SUB-ADVISORY AGREEMENT

Agreement executed as of the 10th day of December 2001, to amend the
Sub-Advisory Agreement executed as of July 1, 1997 (and including any subsequent
amendments thereafter) by and between Princor Management Corporation (now known
as Principal Management Corporation) (hereinafter called the "Manager") and
Invista Capital Management, Inc., (now known as Invista Capital Management, LLC)
(hereinafter called "Invista").

WHEREAS, in the Sub-Advisory Agreement, Manager retained Invista to furnish it
with portfolio selection and related research and statistical services in
connection with the investment advisory services which the Manager has agreed to
provide to the Principal International Emerging Markets Fund, Inc. (hereinafter
called the "Fund"); and

WHEREAS, the Manager and Invista now wish to amend the Sub-Advisory Agreement;

NOW, THEREFORE, in consideration of the terms and conditions set forth
hereinafter, the parties agree that effective January 1, 2002 Schedule A will
read as follows:

                                   SCHEDULE A

For the services provided and the expenses assumed by Invista pursuant to the
Sub-Advisory Agreement, the Manager, not the Fund, shall pay Invista a
sub-advisory fee, computed daily and paid monthly, at an annual rate of 0.50% of
the Fund's average daily net assets.


                                                Principal Management Corporation

                                                        /s/ Ralph C. Eucher
                                                by:____________________________

                                                Invista Capital Management, LLC

                                                        /s/ Richard W. Hibbs
                                                by:____________________________