ASSUMPTION AGREEMENT


	AGREEMENT made as of May 1, 2017 between Principal
Management Corporation ("PMC") and Spectrum Asset
Management, Inc. (the "Sub-Advisor").

	WHEREAS, Principal Variable Contracts Funds, Inc. is
registered as an open-end management investment company under
the Investment Company Act of 1940, as amended (the "1940
Act");

	WHEREAS, PMC has been appointed as investment
advisor to every series of Principal Variable Contracts Funds, Inc.
(each a "Fund" and together, the "Funds") pursuant to an Amended
and Restated Management Agreement dated March 30, 2017, as
amended (the "Investment Advisory Agreement");

	WHEREAS, PMC has entered into a Sub-Advisory
Agreement with the Sub-Advisor dated October 31, 2013, as
amended (the "Sub-Advisory Agreement"), pursuant to which the
Sub-Advisor serves as investment sub-advisor to certain of the
Funds;

	WHEREAS, PMC will merge with and into Principal
Global Investors, LLC ("PGI") on or about May 1, 2017 (the
foregoing referred to as the "Merger");

	WHEREAS, in connection with the Merger, PGI has agreed
to assume PMC's responsibilities with respect to the Funds
pursuant to the Investment Advisory Agreement;

	WHEREAS, in conjunction with its assumption of PMC's
rights and responsibilities under the Investment Advisor
Agreement, PGI desires to assume PMC's rights and
responsibilities under the Sub-Advisory Agreement;

	NOW, THEREFORE, the parties hereto, intending to be
legally bound, agree as follows:

      1.	PGI shall assume all rights and responsibilities of
PMC under the Sub-Advisory Agreement upon the completion of
the Merger.
      2.	The parties hereby agree that this Assumption
Agreement shall be attached to and made a part of the Sub-
Advisory Agreement.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed by their officers designated below as of
the day and year first above written.


PRINCIPAL MANAGEMENT CORPORATION




By:
/s/ Adam Shaikh




Name: Adam Shaikh



Title: Counsel







By:
/s/ Jennifer Block




Name: Jennifer Block



Title: Counsel


SPECTRUM ASSET MANAGEMENT, INC.




By:
/s/ Joseph Hanczor


(Authorized Officer)




Name: Joseph Hanczor



Title:  Managing Director & Chief Compliance
Officer