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     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=5>SECURITIES AND EXCHANGE COMMISSION</FONT></B>&nbsp;</TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Washington, D.C. 20549</FONT></B></TD></TR>
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     <TD align=center>_________________________</TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=5>FORM 8-K</FONT></B></TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">CURRENT REPORT</FONT></B></TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Pursuant to Section 13 or 15(d) of the</FONT></B></TD></TR>
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     <TD align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">Securities Exchange Act of 1934</FONT></B></TD></TR>
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     <TD align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif">Date of Report: </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif">May 18, 2010</FONT></B></TD></TR>
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     <TD align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif">(Date of earliest event reported)</FONT></TD></TR>
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     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=5>PRINCIPAL FINANCIAL GROUP, INC.</FONT></B>&nbsp;</TD></TR>
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     <TD align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif">(Exact name of registrant as specified in its charter)</FONT></TD></TR></TABLE><BR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Delaware</FONT></B>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>1-16725</FONT></B>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42-1520346</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (State or other jurisdiction</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Commission file number)</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I.R.S. Employer</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of incorporation)</FONT>&nbsp;</TD>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Identification Number)</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD align=center colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>711 High Street, Des Moines, Iowa 50392</FONT></B></TD></TR>
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     <TD align=center colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(Address of principal executive offices)</FONT></TD></TR>
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     <TD align=center colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>(515) 247-5111</FONT></B></TD></TR>
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     <TD align=center colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(Registrant&#146;s telephone number, including area code)</FONT></TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the registrant under any of the following provisions:</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; [</FONT>&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp; </FONT>&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [&nbsp;&nbsp; </FONT>&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp; 240.14d-2(b))</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [</FONT>&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>]</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp; 240.13e-4(c))</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Item 5.02</FONT></B>&nbsp;</TD>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(e)</FONT>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>On May 18, 2010, the shareholders of Principal Financial Group, Inc. (the &#147;Company&#148;) approved the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>adoption of the Principal Financial Group, Inc. 2010 Stock Incentive Plan. The Company&#146;s board of directors had</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>previously adopted the plan subject to shareholder approval. A summary of the plan as well as its complete text is</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>included in the Company&#146;s proxy statement filed with the Securities and Exchange Commission on April 6, 2010.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Item 5.07</FONT></B>&nbsp;&nbsp;&nbsp; <B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Submission of Matters to a Vote of Security Holders</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>At our annual meeting of shareholders on May 18, 2010, the shareholders elected four Class III directors</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>each for a term expiring at our 2013 annual meeting. Abstentions and broker non-votes were treated as being</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>present at the meeting for the purpose of determining a quorum but were not counted as votes. The voting results</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>were as follows:</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left>&nbsp;</TD>
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     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>SHARES</FONT></B>&nbsp;</TD>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>SHARES</FONT></B>&nbsp;</TD>
     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>VOTED</FONT></B>&nbsp;</TD>
     <TD noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>SHARES</FONT></B>&nbsp;</TD></TR>
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     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>VOTED FOR</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>AGAINST</FONT></B>&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1px solid" noWrap align=center><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>ABSTAINING</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Michael T. Dan</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>176,729,519</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>9,246,537</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1,274,088</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>C. Daniel Gelatt</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>176,781,276</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>9,190,706</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1,278,162</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Sandra L. Helton</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>184,183,307</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1,812,021</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1,254,816</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Larry D. Zimpleman</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>178,531,442</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>7,469,783</FONT>&nbsp;</TD>
     <TD noWrap align=center><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1,248,919</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The directors whose terms of office continued and the years their terms expire are as follows:</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left colSpan=5><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Class I Directors Continuing in Office Whose Term Expires in 2011</U></FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Betsy J. Bernard</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Jocelyn Carter-Miller</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Gary E. Costley</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=5><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Class II Directors Continuing in Office Whose Term Expires in 2012</U></FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Richard L. Keyser</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Arjun K. Mathrani</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Elizabeth E. Tallett</FONT>&nbsp;</TD>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=4>&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>In addition, the shareholders approved and adopted the Principal Financial Group, Inc. 2010 Stock</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=5><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Incentive Plan, more fully described above in Item 5.02(e). The voting results were as follows:</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=5><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></B><U>&nbsp;</U><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>AGAINST</U></FONT></B><U>&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>ABSTAIN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></B><U>&nbsp;</U></TD></TR>
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     <TD noWrap align=left colSpan=5><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 178,040,995</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>7,091,341</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>2,117,808</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=4>&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>In the last agenda item, the shareholders ratified the appointment of Ernst &amp; Young LLP as our</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=5><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>independent auditors for 2010. The voting results were as follows:</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=5><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FOR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;</U><U>AGAINST</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </U><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>ABSTAIN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></B><U>&nbsp;</U></FONT></B></TD></TR>
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     <TD noWrap align=left colSpan=5><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;201,620,679&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>2,129,733&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1,270,397</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=4><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B>&nbsp;<B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Financial Statements and Exhibits</FONT></B>&nbsp;</TD>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(c)</FONT>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Exhibits</FONT>&nbsp;</TD>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>99.1</FONT>&nbsp;</TD>
     <TD noWrap align=left colSpan=4>&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Form of Performance Based Restricted Stock Unit Award Agreement</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>99.2</FONT>&nbsp;</TD>
     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Form of Nonqualified Stock Option Award Agreement</FONT>&nbsp;</TD>
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     <TD align=center colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>SIGNATURE</FONT></B></TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>report to be signed on its behalf by the undersigned thereunto duly authorized.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>PRINCIPAL FINANCIAL GROUP, INC.</FONT></B>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>By:</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>/s/ Joyce N. Hoffman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT><U>&nbsp;</U></TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Name:</FONT>&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Joyce N. Hoffman</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Title:&nbsp;&nbsp; </FONT>&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Senior Vice President and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Corporate Secretary</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Date:</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;May <FONT face="Times New Roman" size=2>21</FONT>, 2010</FONT>&nbsp;</TD>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 99.1</FONT>&nbsp;</TD></TR>
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     <TD align=left colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2010 Stock Incentive Plan</FONT></B></TD></TR>
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     <TD align=left colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance Based Restricted Stock Unit Award Agreement</FONT></B></TD></TR>
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     <TD noWrap align=left colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>PERFORMANCE BASED RESTRICTED STOCK UNIT AGREEMENT </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(&#147;Agreement&#148;), evidencing the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>restricted stock unit award described below under the Principal Financial Group, Inc. 2010 Stock Incentive Plan (the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&#147;Plan&#148;) by Principal Financial Group, Inc., a Delaware corporation (the &#147;Company&#148;), to you, (the &#147;Employee&#148;).</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Capitalized terms not defined in this Agreement shall have the meanings given to such terms in the Plan.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Type of Grant: </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Performance Based Restricted Stock Unit</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Performance Period:</FONT></B> ______________________________ <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(the &#147;Performance Period&#148;)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Confirmation of Grant</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>.&nbsp; </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The Company hereby evidences and confirms its grant to the Employee, effective on</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the date reflected on your online award acceptance screen (the &#147;Grant Date&#148;) and subject to and upon the terms and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>conditions set forth in this Agreement, of a restricted stock unit award (the &#147;Award&#148;) in respect of the number of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>performance based restricted stock units listed on your online award acceptance screen (the &#147;Restricted Stock</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Units&#148;). Each Restricted Stock Unit represents a contractual right to receive one share of the Company&#146;s common</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>stock (the &#147;Common Stock&#148;), subject to the terms and conditions of this Agreement. Employee&#146;s right to receive</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Common Stock in respect of Restricted Stock Units is generally contingent upon (</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>i</FONT><FONT face="Times New &#13;&#10;Roman,Arial,Helvetica,sans-serif" size=2>) the achievement of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>performance objective outlined in Section 2 below (the &#147;Performance Objective&#148;) and (</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>ii</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>) the Employee&#146;s continued</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>employment through the end of the Performance Period. This Agreement is subordinate to, and the terms and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>conditions of this Award, are subject to, the terms and conditions of the Plan.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>2. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Performance Objective</U></FONT></B><B><FONT face="Times New &#13;&#10;Roman,Bold,Arial,Helvetica,sans-serif" size=2>.</FONT></B>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a) No Performance Based Restricted Stock Units shall become vested and payable hereunder unless and until</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Committee shall have certified that the Threshold ROE Objective or the Operating Income Objective (as</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>defined below) has been satisfied. If the Threshold ROE Objective or Operating Income Objective is satisfied,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and subject to the Committee&#146;s authority to exercise negative discretion to reduce the number of Performance</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Based Restricted Stock Units as described in Section 2(b) below, the maximum award that may be payable</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>hereunder shall be equal to one and one-half the number of Performance Based Restricted Stock Units specified</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>above.</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(b) Notwithstanding the provisions of Section 2(a), if the Committee determines not to exercise its discretion to</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>reduce the maximum award payable hereunder:</FONT>&nbsp;</TD>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(i)</FONT>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the number of Performance Based Restricted Stock Units that will be earned and payable</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>hereunder shall be zero if the Threshold ROE Objective or Operating Income Objective, as defined</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>below, is not satisfied; and</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(ii) except as provided in Sections 3 and 4, if the Threshold ROE Objective or Operating Income</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Objective is satisfied, the number of Performance Based Restricted Stock Units earned and payable</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shall be determined by adding the results of (a) multiplying (</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>i</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>) 50% of the number of Performance</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based Restricted Stock Units by (</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>ii</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>) the ROE Multiplier (as defined below) and (b) multiplying (i) 50%</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of the number of Performance Based Restricted Stock Units by (ii) the Book Value Per Share Multiplier</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(as defined below).</FONT>&nbsp;</TD>
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     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(c) The &#147;ROE Objective&#148; is Average return on equity (&#147;ROE&#148;) for the Performance Period established by the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Committee as the Threshold ROE Objective for this Award, which is listed on Annex I hereto. &#147;Average ROE&#148;</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shall mean a simple average of the ROE for each of the calendar years ended during the Performance Period</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>based on the audited financial statements for each such calendar year as prepared in accordance with U.S.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>generally accepted accounting principles (&#147;GAAP&#148;). &#147;ROE&#148; with respect to any calendar year shall mean (i)</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>income from continuing operations before income taxes per the audited Consolidated Statements of Operations</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>less (A) net realized/unrealized capital gains (losses) and (B) preferred stock dividends declared during such</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>calendar year divided by (ii) the average equity excluding other comprehensive income available to common</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>stockholders.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(d) The &#147;Operating Income Objective&#148; is the cumulative Operating Income for the Performance Period</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>established by the Committee as the Threshold Operating Income Objective for this Award, which is listed on</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Annex I hereto. &#147;Operating Income&#148; with respect to any calendar year shall mean annual income from the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Company&#146;s continuing operations, minus net realized and unrealized gains and losses.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(e) The &#147;ROE Multiplier&#148; is</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(i) 50%, if Average ROE for the Performance Period is equal to the &#147;Minimum ROE Objective&#148; for this</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Award, which is listed on Annex I hereto;</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(ii) 100%, if Average ROE for the Performance Period is equal to such level for the Performance Period</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>specified by the Committee as the &#147;Target ROE Objective&#148; for this Award, which is listed on Annex I</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>hereto; and</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(iii) 150%, if Average ROE for the Performance Period is equal to or in excess of the level of Average</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>ROE for such Performance Period specified by the Committee as the &#147;Maximum ROE Objective&#148; for</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>this Award, which is listed on Annex I hereto.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>If Average ROE for the Performance Period is above the Minimum ROE Objective but below the Target</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>ROE Objective, or above the Target ROE Objective but below the Maximum ROE Objective, the ROE</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Multiplier shall be determined by mathematical interpolation between the relevant stated ROE Objectives.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(f) Average Book Value Per Share shall mean a simple average of the Book Value Per Share for each of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>calendar years ended during the Performance Period. &#147;Book Value Per Share&#148; with respect to any calendar year</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>is defined as total ending common equity excluding other comprehensive income divided by number of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>common shares outstanding end of year. The &#147;Book Value Per Share Multiplier&#148; is</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(i) 50%, if Average Book Value Per Share for the Performance Period is equal to the &#147;Minimum Book</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Value Per Share Objective&#148; for this Award, which is listed on Annex I hereto;</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(ii) 100%, if Average Book Value Per Share for the Performance Period is equal to such level for the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Performance Period specified by the Committee as the &#147;Target Book Value Per Share Objective&#148; for</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>this Award, which is listed on Annex I hereto; and</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(iii) 150%, if Average Book Value Per Share for the Performance Period is equal to or in excess of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>level of Average Book Value Per Share for such Performance Period specified by the Committee as the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&#147;Maximum Book Value Per Share Objective&#148; for this Award, which is listed on Annex I hereto.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>If Average Book Value Per Share for the Performance Period is above the Minimum Book Value Per Share</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Objective but below the Target Book Value Per Share Objective, or above the Target Book Value Per</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Share Objective but below the Maximum Book Value Per Share Objective, the Book Value Per Share</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Multiplier shall be determined by mathematical interpolation between the relevant stated Book Value Per</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Share Objectives.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(g) Payment in respect of Earned Performance Based Restricted Stock Units shall be made not later than the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>first March 15 following the calendar year in which the Performance Period ends. Except to the extent</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>expressly provided under the applicable provisions of the Code and regulations thereunder, payment under this</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>agreement shall not be made unless the Human Resources Committee of the Company&#146;s Board of Directors</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>certifies the performance results for 2010. Unless otherwise determined by the Committee, all payments in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>respect of Earned Performance Based Restricted Stock Units shall be made in an equivalent number of shares of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Common Stock, rounded down to the nearest whole number of shares.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>3.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Termination of Employment</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>.</FONT></B>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a) </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Death, Disability or Approved Retirement</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Except as provided in Section 4(e) or to the extent that the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Committee may provide for more favorable treatment at or after grant, in the event that the Employee&#146;s</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>employment with the Company or a Subsidiary terminates due to the Employee&#146;s (</FONT><FONT face="Times New &#13;&#10;Roman,Arial,Helvetica,sans-serif" size=2>i</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>) <FONT face="Times New Roman">death, (</FONT></FONT><FONT face="Times New Roman" size=2>ii</FONT><FONT face="Times New Roman" size=2>) Disability or</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>(</FONT><FONT face="Times New Roman" size=2>iii</FONT><FONT face="Times New Roman" size=2>) Approved Retirement prior to the last day of the first year in the Performance Period, the Employee shall</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>be deemed to have earned, as of the end of the Performance Period, a number of Restricted Stock Units equal</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>to the product of (</FONT><FONT face="Times New Roman" size=2>i</FONT><FONT face="Times New Roman" size=2>) the number of Earned Restricted Stock Units to which the Employee would have become</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>entitled pursuant to Section 2 had the Employee remained employed through the end of the Performance</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Period, multiplied by (</FONT><FONT face="Times New Roman" size=2>ii</FONT><FONT face="Times New Roman" size=2>) a fraction not greater than one (the &#147;Pro-Ration Fraction&#148;), the numerator of which is</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>(</FONT><FONT face="Times New Roman" size=2>A</FONT><FONT face="Times New Roman" size=2>) the number of days during the Performance Period during which the Employee was employed and (</FONT><FONT face="Times New Roman" size=2>B</FONT><FONT face="Times New Roman" size=2>) the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>denominator of which is 365. In the event that an Employee&#146;s employment with the Company or a Subsidiary</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>terminates due to the Employee&#146;s (</FONT><FONT face="Times New Roman" size=2>i</FONT><FONT face="Times New Roman" size=2>) death, (</FONT><FONT face="Times New Roman" size=2>ii</FONT><FONT face="Times New Roman" size=2>) Disability or (</FONT><FONT face="Times New Roman" size=2>iii</FONT><FONT face="Times New Roman" size=2>) Approved Retirement on or after the last day</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>of the first year in the Performance Period, the Employee shall be deemed to have earned, as of the end of the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Performance Period, the same number of Earned Restricted Stock Units to which the Employee would have</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>become entitled pursuant to Section 2 had the Employee remained employed through the end of the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Performance Period. Any portion of the Restricted Stock Units that cannot become vested and payable in</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>accordance with the second preceding sentence shall terminate and automatically be cancelled as of the date of</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>the Employee&#146;s termination of employment. Any portion of the Employee&#146;s Restricted Stock Units that could</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>have vested pursuant to the third and second preceding sentences, but do not vest as of the end of the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Performance Period, shall terminate and be canceled upon the expiration of such Performance Period.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>(b) </FONT><FONT face="Times New Roman" size=2><U>Other Termination of Employment</U></FONT><FONT face="Times New Roman" size=2>. Unless otherwise determined by the Committee at or after grant, in the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>event that the Employee&#146;s employment with the Company or a Subsidiary terminates prior to the end of the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Performance Period for any reason other than those listed in Section 3(a), all of the Employee&#146;s Restricted</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Stock Units shall terminate and automatically be canceled upon such termination of employment.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>(c) </FONT><FONT face="Times New Roman" size=2><U>No Guarantee of Employment</U></FONT><FONT face="Times New Roman" size=2>. Nothing in this Agreement shall interfere with or limit in any way the right</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>of the Company or a Subsidiary to terminate the Employee&#146;s employment at any time, or confer upon the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Employee any right to continue in the employ of the Company or Subsidiary.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>4. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Change of Control</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>.&nbsp; </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Notwithstanding the provisions of Section 2 and 3 hereof, in the event of a Change of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Control, the Restricted Stock Units subject to this Agreement shall be converted into a number of shares of Common</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Stock or, if the Change of Control is a Reorganization Transaction, shares of the common stock of the Surviving</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Corporation, as provided in (and subject to the terms and conditions of) this Section 4. If the Employee has been</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>continuously employed from the Grant Date until the date of the Change of Control, the Employee&#146;s rights in respect</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of the Restricted Stock Units shall be determined as provided in Section 4(a) or 4(b), depending on the period of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>time that has passed since the commencement of the Performance Period. If the Employee&#146;s employment shall have</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>terminated prior to the date of the Change of Control, but at least some of the Employee&#146;s Restricted Stock Units</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>remain outstanding pursuant to Section 3(a) (or by reason of the Committee&#146;s exercise of its discretionary authority</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>pursuant to Section 3(b)), the Employee&#146;s rights in respect of the Employee&#146;s outstanding Restricted Stock Units</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shall be determined as provided in Section 4(e).</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a) If the Change of Control occurs within one year of the commencement of the Performance Period, the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee will be granted a contractual right to receive a number of shares of Common Stock equal to the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>number of the Employee&#146;s Restricted Stock Units.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(b) If the Change of Control occurs on or after the first anniversary of the commencement of the Performance</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Period, the Employee will be granted a contractual right to receive a number of shares of Common Stock equal</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to the number of restricted stock units that would have become Earned Restricted Stock Units, assuming that</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(i) the Performance Period ended on the date on which the Change of Control occurs (the &#147;Change of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Control Date&#148;) and</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(ii) the determination of whether, and to what extent, the Performance Objective is achieved, is based on</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>actual performance against the stated performance criteria through the Change of Control Date,</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>projected out for the remainder of the originally stated Performance Period, but without adjustment due</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to the fact that the Change of Control Date occurs prior to the end of the stated Performance Period.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Any shares of Common Stock subject to the contractual rights granted pursuant to Section 4(a) or 4(b) shall</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>vest in full (without regard to any performance condition related to the period following the Change of Control</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Date) on the last day of the Performance Period so long as the Employee is continuously employed through</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>such date. These rights shall also vest in full upon any earlier termination of Employee&#146;s employment due to</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(1) Approved Retirement, (2) death, (3) Disability, (4) a termination by the Company without Cause or (5) the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>constructive termination of the Employee&#146;s employment.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For this purpose, a constructive termination shall mean a termination of employment by the (x) within 120</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; days following (1) a material reduction in the Employee&#146;s base salary or incentive compensation opportunity,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) a material reduction in the Employee&#146;s responsibilities, or (3) relocation of the Employee&#146;s principal place</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of employment to a location 50 miles away or more from Employee&#146;s prior place of employment or (y)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; following the occurrence of any other event or circumstance that entitles Employee to terminate his or her</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; employment with the Company and receive severance benefits under any agreement between Employee and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Company. Any shares of Common Stock issuable in respect of the rights granted under this Section 4 shall</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; be issued the day following the last day of the Performance Period An Employee who is granted the right to</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; receive shares under this Section 4(c) shall also have the right to receive dividend equivalents in respect of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such shares, at the same time and in the same amounts as though the shares that would be delivered had been</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B>outstanding shares. Any dividend equivalents payable shall be deemed re-invested in additional shares of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;underlying stock based on the fair market value thereof on the payment date of the corresponding dividend or</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;distribution, and such additional shares shall vest and be distributed at the same time and subject to the same</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conditions as apply to the underlying shares.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) If, prior to the occurrence of a Change of Control, Employee has timely elected pursuant to Section 10</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hereof to defer receipt of the Common Stock that would have been deliverable in respect of any Earned</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted Stock Units, then in lieu of issuing shares of Common Stock at the time specified in Section 4(c) the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Common Stock shall be issued at the time or times specified in, and subject to the terms of, the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee&#146;s deferral election. An Employee who is granted the right to receive shares under this Section 4(d)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall also have the right to receive dividend equivalents in respect of such shares, at the same time and in the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; same amounts as though the shares that would be delivered had been outstanding shares. Any dividend</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equivalents payable shall be deemed re-invested in additional shares of the underlying stock based on the fair</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;market value thereof on the payment date of the corresponding dividend or distribution, and such additional</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares shall vest and be distributed at the same time and subject to the same conditions as apply to the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;underlying shares.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) If Employee&#146;s employment terminated prior to the Change of Control Date, but some or all of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee&#146;s Restricted Stock Units are still outstanding on such Date pursuant to either Section 3(a) or 3(b)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; hereof, then, unless otherwise specified by the Committee at the time of any exercise of its discretionary</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; authority under Section 3, the Employee shall receive, immediately following (and not later than 15 days after)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Change of Control Date, a number of shares of Common Stock equal to</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(i) if the Change of Control Date occurs prior to the first anniversary of the commencement of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Performance Period, the product of (A) the number of Restricted Stock Units initially awarded to the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee hereunder times (B) the Pro-Ration Fraction; or</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(ii) if the Change of Control Date occurs on or after the first anniversary of the commencement of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Performance Period (A) the number of shares of Common Stock that would have been issued to the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee based on the number of Restricted Stock Units initially awarded to the Employee had Section</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>4(b) been applicable to the Employee times (B) the Pro-Ration Fraction.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as may otherwise have been provided by the Committee at the time of its exercise of its discretionary</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authority under Section 3, any shares of Common Share (or the Surviving Corporation&#146;s common stock)</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issuable pursuant to this Section 4(e) shall be fully vested and freely transferable as of the date of the Change</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of Control.</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(f) Notwithstanding the preceding subsections of this Section 4, if a Change of Control is also a Reorganization</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Transaction, in lieu of contractual rights to receive shares of Common Stock (including any such shares</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>deliverable in respect of any contractual right described in Section 4(d)), the Employee shall receive the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>contractual right to receive the number of shares of the Surviving Corporation&#146;s common stock into which the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>number of shares of Common Stock that would otherwise have been subject to the contractual rights granted</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>under this Section 4 would convert, based on the exchange ratio in the Reorganization Transaction applicable</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to outstanding shares of Common Stock or, in any case where the Committee can not reasonably discern such</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>an exchange ratio (such as where the Company&#146;s shareholders receive cash instead of Surviving Corporation</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>common stock), the relative Fair Market Values of a share of Common Stock and such Surviving Corporation</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>common stock on the Change of Control Date.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(g) Notwithstanding anything else contained in this Section 4 to the contrary, the Committee may elect, at its</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>sole discretion by resolution adopted prior to the Change of Control Date, to satisfy the Employee&#146;s rights in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>respect of the Restricted Stock Units, in whole or in part, by making a cash payment to the Employee within 5</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>business days of the Change of Control Date in respect of all such Restricted Stock Units or such portion of</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>such Restricted Stock Units as the Committee shall determine. Any cash payment for any Restricted Stock</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Unit shall be equal to the Fair Market Value of the applicable Common Stock on the Change of Control Date.</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(h) Upon conversion into either shares of Common Stock or a right to receive shares of Common Stock (or, in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>either case, Surviving Corporation common stock) pursuant to this Section 4, a cash settlement of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee&#146;s rights pursuant to Section 4(e) or a combination of the issuance of stock and the payment of cash</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>in accordance with the applicable provisions of this Section, all of the Employee&#146;s Restricted Stock Units</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>subject to the Award shall be cancelled and terminated.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>5. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Non-Solicitation</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. For a period of twelve months after the termination of Employee&#146;s employment, Employee</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shall not, directly or indirectly:</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a) encourage any employee or agent of the Company or a Subsidiary to terminate his or her relationship with</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Company;</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(b) employ, engage as a consultant or adviser, or solicit the employment or engagement as a consultant or</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>adviser, of any employee or agent of the Company or a Subsidiary (other than by the Company or a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Subsidiary), or cause or encourage any Person to do any of the foregoing;</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(c) establish (or take preliminary steps to establish) a business with, or encourage others to establish (or take</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>preliminary steps to establish) a business with, any employee or agent of the Company or a Subsidiary; or</FONT>&nbsp;</TD></TR>
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     <TD>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(d) interfere with the relationship of the Company or a Subsidiary with, or endeavor to entice away from the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Company, any Person who or which at any time during the period commencing one year prior to the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>termination of the Employee&#146;s employment was or is a material customer or material supplier of, or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>maintained a material business relationship with, the Company.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>6. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Nontransferability of Awards</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The Restricted Stock Units granted hereunder may not be sold, transferred,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and distribution. Following the Employee&#146;s death, any shares distributable (or cash payable) in respect of Restricted</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Stock Units pursuant to Section 3 or 4 will be delivered or paid, at the time specified in Section 2(g) or, if</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>applicable, Section 4(e), to the Employee&#146;s designated beneficiary or to the Employee&#146;s estate in accordance with,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and subject to, the terms and conditions hereof and of the Plan.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>7. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Beneficiary Designation</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The Employee may from time to time name any beneficiary or beneficiaries (who</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>may be named contingently or successively) to whom shall be delivered or paid under this Agreement following the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee&#146;s death any shares that are distributable (or cash payable) hereunder in respect of Employee&#146;s Restricted</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Stock Units pursuant to Section 3 or Section 4 at the time specified in Section 2(g) or, if applicable, Section 4(a) or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>4(e); provided that, if the Employee shall not have designated any beneficiary under this Plan, the Employee&#146;s</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>beneficiary shall be deemed to be the person designated by the Employee under the group life insurance plan of the</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD noWrap align=left><FONT face="Times New Roman" size=2>Company or a Subsidiary in which such Employee participates (unless such designated beneficiary is not a Family</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Member). Each designation will revoke all prior designations, shall be in a form prescribed by the Committee, and</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>will be effective only when filed in writing with the Committee during the Employee&#146;s lifetime. In the absence of</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>any such effective designation, shares issuable in connection with the Employee&#146;s death shall be paid by the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Employee&#146;s surviving spouse, if any, or otherwise to the Employee&#146;s estate.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>8. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U><FONT face="Times New Roman">Tax Withholding</FONT></U></FONT></B><FONT face="Times New Roman" size=2>. Whenever Common Stock is to be issued in settlement of Earned Restricted Stock Units</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>under this Agreement or unrestricted stock is to be delivered pursuant to Section 2, the Company shall have the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>power to withhold, or require the Employee to remit, an amount sufficient to satisfy Federal, state and local</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>withholding tax requirements relating to such transaction, and the Company may defer payment of cash or the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>issuance of Common Stock until such requirements are satisfied. The Committee may permit the Employee to elect,</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>subject to such conditions as the Committee may impose:</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>(a) to have shares of Common Stock otherwise issuable upon the exercise under this Award withheld by the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>Company; or</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>(b) to deliver to the Company cash equal to all or part of the Employee&#146;s Federal, state or local tax obligation</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>associated with the transaction.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>9. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U><FONT face="Times New Roman">Adjustment of the Number of Restricted Stock Units</FONT></U></FONT></B><FONT face="Times New Roman" size=2>. In the event of any Common Stock dividend or</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Common Stock split, recapitalization (including, but not limited to, the payment of an extraordinary dividend),</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>merger, consolidation, combination, spin-off, distribution of assets to stockholders (other than ordinary cash</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>dividends), exchange of shares, or other similar corporate change, the aggregate number of Restricted Stock Units</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>subject to this Award shall be appropriately adjusted by the Committee and the Committee&#146;s determination shall be</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>conclusive; provided, however, that any fractional shares resulting from any such adjustment shall be disregarded.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>10. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U><FONT face="Times New Roman">Deferral of Distribution in Respect of Restricted Stock Units</FONT></U></FONT></B><FONT face="Times New Roman" size=2>. An Employee may elect, by written notice to</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>the Company delivered not later than December 31 of the second year in the Performance Period, to defer delivery</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>of the shares of Common Stock (or any other distribution payable hereunder) in respect of Earned Restricted Stock</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Units. Any such election shall specify the date on which such shares of Common Stock shall be delivered in a</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>single distribution; provided, however, that regardless of the date selected by the Employee all of the shares will be</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>delivered 5 business days after Employee&#146;s termination of employment (or, if Employee is a key employee of the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Company within the meaning of Section 416(i) of the Code for the year in which his or her employment terminates,</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>six (6) months following such termination of employment unless such termination of employment is due to</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Employee&#146;s death or disability (as defined in Section 409A of the Code). The Employee may, in addition to electing</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>a date for payment, elect to have delivery of the shares be made within a fixed number of days following a change of</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>control of the Company (as defined for purposes of Section 409A of the Code). The Company or the Committee</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>may impose any such other or additional conditions on the terms of, or the timing of, any deferral election pursuant</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>to this Section 10, to the extent deemed necessary or appropriate to satisfy the applicable provisions of Section</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>409A. Notwithstanding anything else contained in this Section 10 to the contrary, any election to defer delivery of</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>any amount otherwise payable under this Agreement that would fail to comply with the conditions set forth in such</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Section 409A shall be deemed void and without effect.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>11. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U><FONT face="Times New Roman">Compensation Recovery Policy</FONT></U></FONT></B><FONT face="Times New Roman" size=2>. The restricted stock unit award described in this Agreement is subject to the</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>Principal Financial Group, Inc. Executive Compensation Recovery Policy, effective February 23, 2010, as may be</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>amended from time to time, which is incorporated by this reference.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>12. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U><FONT face="Times New Roman">Requirements of Law</FONT></U></FONT></B><FONT face="Times New Roman" size=2>. The issuance of shares of Common Stock pursuant to this Agreement shall be subject to</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>exchanges as may be required. No shares of Common Stock shall be issued pursuant to this Agreement if such</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>issuance or exercise would result in a violation of applicable law, including the federal securities laws and any</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>applicable state or foreign securities laws.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>13. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U><FONT face="Times New Roman">Governing Law</FONT></U></FONT></B><FONT face="Times New Roman" size=2>. This Agreement shall be construed in accordance with and governed by the laws of the State</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman" size=2>of Delaware, regardless of the law that might be applied under principles of conflict of laws.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR></TABLE><BR>
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<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>14. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Interpretation; Construction</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Any determination or interpretation by the Committee under or pursuant to this</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Agreement shall be final and conclusive on all persons affected hereby. In the event of a conflict between any term</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of this Agreement and the terms of the Plan, the terms of the Plan shall control.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>15. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Electronic Delivery</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The Company may, in its sole discretion, decide to deliver any documents related to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>current or future participation in the Plan by electronic means. The Employee hereby consents to receive such</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>established and maintained by the Company or a third party designated by the Company.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>16. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Severability</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The provisions of this Agreement are severable and if any one or more provisions are determined</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and enforceable.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>17. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Amendments</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The Committee shall have the exclusive right to amend this Agreement, from time to time,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>provided that no such amendment shall impair the rights of the Employee under this Agreement without the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee&#146;s consent. Upon its adoption by the Committee, any alteration or amendment of this Agreement shall</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>become binding and conclusive on all persons affected thereby without any need for consent or other action by any</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>such person. The Company shall give written notice to the Employee of any such amendment as promptly as</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>practicable after the adoption thereof.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute, and the Employee has</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>executed, this Agreement, each as of the Grant Date.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>By electronically signing this Agreement, I, the Employee, acknowledge that I have read the Plan, and that I fully</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>understand all of my rights under the Plan, as well as all of the terms and conditions of this Award. Without limiting</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the generality of the preceding sentence, I understand that, in most instances, my right to receive any Common Stock</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>or other benefit pursuant to this Award is conditioned upon my continued employment with the Company and the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>achievement of the Performance Objectives specified herein. The terms and conditions set forth in this Agreement</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and in the Plan are binding upon me, my person representative or the person or persons to whom my rights under</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>this Agreement pass by will or by the applicable laws of descent and distribution. I shall not have any rights of a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shareholder with respect to the Common Stock corresponding to the Restricted Stock Units awarded hereby until</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shares of such Common Stock have been issued to me, if at all, in accordance with the terms and conditions of this</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Agreement.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>I acknowledge that the covenants contained in Section 5 are reasonable in the scope of the activities restricted and</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the duration of the restrictions, and that such covenants are reasonably necessary to protect the Company&#146;s</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>legitimate interests in its relationships with its employees, customers and suppliers. I further acknowledge such</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>covenants are essential elements of this Agreement and that, but for such covenants, the Company would not have</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>entered into this Agreement.</FONT>&nbsp;</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRINCIPAL FINANCIAL GROUP, INC.</FONT></B>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; _______________________________</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name:&nbsp; Ralph Eucher &#150; SVP Human Resources</FONT>&nbsp;</TD></TR></TABLE><BR>
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<TR vAlign=bottom>
     <TD noWrap align=left width="99%"><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annex I</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Threshold ROE Objective</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Threshold Operating Income Objective</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Minimum ROE Objective</U>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Target ROE Objective</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Maximum ROE Objective</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Minimum Book Value Per Share Objective</U>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Target Book Value Per Share Objective</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>:</FONT>&nbsp;</TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR height=20>
     <TD noWrap align=left></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Maximum Book Value Per Share Objective</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>:</FONT>&nbsp;</TD></TR></TABLE><BR>
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<TABLE cellSpacing=0 cellPadding=0 width="85%" border=0>
<TR>
     <TD width="19%"></TD>
     <TD width="80%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibit 99.2</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=2><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock Incentive Plan Award Agreement</FONT></B></TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; STOCK OPTION AGREEMENT </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(&#147;Agreement&#148;), evidencing the grant of the stock option described</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>below under the Principal Financial Group, Inc. 2010 Stock Incentive Plan (the &#147;Plan&#148;) by Principal Financial</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Group, Inc., a Delaware corporation (the &#147;Company&#148;) to you, (the &#147;Employee&#148;). Capitalized terms not defined in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>this Agreement shall have the meanings given to such terms in the Plan.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>Type of Grant:&nbsp;&nbsp;</FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Nonqualified Stock Options</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>1. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Confirmation of Grant; Option Exercise Price</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The Company hereby evidences and confirms its grant</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to the Employee, effective on the date of grant reflected on your online award acceptance screen (the &#147;Grant Date&#148;)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and subject to and upon the terms and conditions set forth in this Agreement, of an option (the &#147;Option&#148;) to purchase</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the number of shares of the Company&#146;s common stock (the &#147;Common Stock&#148;), set forth on your online award</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>acceptance screen (the &#147;Shares&#148;) at an option exercise price set forth on your online award acceptance screen (the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&#147;Exercise Price&#148;). The Option is not intended to be an incentive stock option under Internal Revenue Code of 1986,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>as amended. This Agreement is subordinate to, and the terms and conditions of the Option granted hereunder are</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>subject to, the terms and conditions of the Plan.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>2. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Exercise of Option</U></FONT></B><B><FONT face="Times New &#13;&#10;Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Options shall vest and become exercisable as described on your online award</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>acceptance screen, subject in each case to the Employee&#146;s continued employment with the Company or a Subsidiary</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>until such vesting date, and provided that 100% of such Option shall be exercisable to the extent provided in</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Sections 5(a) and 6(a) of this Agreement. Shares eligible for purchase may thereafter be purchased, subject to the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>provisions hereof, at any time and from time to time on or after the date they first become available for purchase</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>hereunder until the date on which the Option terminates.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>3. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Expiration of Option</U></FONT></B><B><FONT face="Times New &#13;&#10;Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Unless an earlier expiration date applies pursuant to Section 5, the Option shall</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>expire ten years from the date of grant.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>4. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Method of Exercise and Payment</U></FONT></B><B><FONT face="Times &#13;&#10;New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The Employee may exercise any portion of the Option that has</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>become exercisable by (i) written or verbal notice to the Company&#146;s broker specifying the number of Shares the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee wants to purchase and (ii) payment in full at the time of exercise. Payment of the exercise price may be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>made (i) in cash or its equivalent, (ii) by exchanging shares of Common Stock owned by the optionee (which are not</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the subject of any pledge or other security interest), (iii) through an arrangement with a broker approved by the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Company whereby payment of the exercise price is accomplished with the proceeds of the sale of Common Stock or</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(iv) by any combination of the foregoing; provided that the combined value of all cash and cash equivalents paid and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Fair Market Value of any such Common Stock so tendered to the Company, valued as of the date such tender, is</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>at least equal to such Exercise Price required to be paid for the Shares being exercised.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>5. </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Termination of Employment</U></FONT></B><B><FONT face="Times New &#13;&#10;Roman,Bold,Arial,Helvetica,sans-serif" size=2>.</FONT></B>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Death or Disability </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>In the event that the Employee&#146;s employment with the Company or a</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Subsidiary terminates due to (i) the Employee&#146;s death, or (ii) the Employee&#146;s Disability, then 100%</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of the Option shall be exercisable as of the date of such termination and thereafter may be exercised</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>by the Employee or the Employee&#146;s beneficiary as designated in accordance herewith at any time</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>prior to the earlier of (i) the third anniversary of the Employee&#146;s termination or (ii) the expiration of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the term of the Option.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Approved Retirement</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. In the event that the Employee&#146;s employment with the Company</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>or a Subsidiary terminates due to the Employee&#146;s Approved Retirement the Participant shall be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>entitled to exercise (i) the number of Options (the &#147;Last Year Options&#148;) granted during the year in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>which the Participant&#146;s employment or service terminates by reason of Approved Retirement (the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&#147;Retirement Year&#148;) equal to the product of (x) the Last Year Options, multiplied by (y) a fraction not</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>greater than one, the numerator of which is (A) the number of days during the Retirement Year</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD width="2%"></TD>
     <TD width="13%"></TD>
     <TD width="83%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>during which the Participant was employed and (B) the denominator of which is 365 (the &#147;Pro-</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Ration Factor&#148;), and (ii) any Options granted to such Participant prior to the Retirement Year. Any</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Options that are exercisable in accordance with the preceding sentence may be exercised by the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Participant at any time prior to the expiration date of the term of the Options. Any of the Last Year</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Options that are not exercisable at the date of a Participant&#146;s Approved Retirement shall be cancelled</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>on such date.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Resignation</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. In the event of voluntary termination by the Employee, other than on</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>account of Approved Retirement (a &#147;Resignation&#148;), any of the Participant&#146;s then outstanding</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Options that are exercisable on the date of such Resignation may be exercised by the Participant</FONT>&nbsp;</TD></TR>
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     <TD align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;until the later of (i) the thirtieth (30th) day following the Participant&#146;s Resignation, or (ii) if,</FONT></TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>immediately prior to such Resignation, the Participant was subject to the Company&#146;s policies</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>restricting sales of its securities (a &#147;Restricted Participant&#148;), the thirtieth (30</FONT><SUP><FONT face="Times New &#13;&#10;Roman,Arial,Helvetica,sans-serif" size=2>th </FONT></SUP><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>) day from the date the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>first Trading Window commences following the Participant&#146;s Resignation, but in no event following</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the expiration of the term of such Options. Any outstanding Options that are not exercisable at the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>time of a Participant&#146;s Resignation shall expire at the time of such Resignation and shall not be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>exercisable thereafter.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Termination for Cause</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. In the event of voluntarily termination of employment by the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee or the Employee&#146;s employment with the Company or a Subsidiary is terminated for</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Cause, 100% of the Option (regardless of the extent to which the Option would otherwise be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>exercisable under Section 2 of this Agreement) shall terminate and be canceled immediately upon</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>such termination of employment.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Other Termination of Employment</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Unless otherwise determined by the Committee, in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the event that the Employee&#146;s employment with the Company or a Subsidiary terminates for any</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>reason other than those listed in paragraphs (a), (b), (c) or (d) of this Section, the portion of the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee&#146;s Option that is exercisable as of the date of such termination may be exercised by the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Participant until the later of (i) the ninetieth (90th) day following the Participant&#146;s termination, or (ii)</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>if, immediately prior to such termination, the Participant was subject to the Company&#146;s policies</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>restricting sales of its securities (a &#147;Restricted Participant&#148;), the thirtieth (30</FONT><SUP><FONT face="Times New &#13;&#10;Roman,Arial,Helvetica,sans-serif" size=2>th </FONT></SUP><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>) day from the date the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>first Trading Window commences following the Participant&#146;s termination, but in no event following</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the expiration of the term of such Options. Any outstanding Options that are not exercisable at the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>time of a Participant&#146;s termination shall expire and be cancelled immediately at the time of such</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>termination as will any exercisable portion of the Option that is not exercised within the period</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>described above.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>No Guarantee of Employment</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Nothing in this Agreement shall interfere with or limit in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>any way the right of the Company or a Subsidiary to terminate the Employee&#146;s employment at any</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; time, or confer upon the Employee any right to continue in the employ of the Company or a</FONT></TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Subsidiary.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>6.</FONT>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Change of Control</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>.</FONT></B>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Accelerated Exercisability and Payment</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Except as otherwise provided in paragraph</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>6(b), in the event of a Change of Control, 100% of the Option shall become exercisable (whether or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>not then exercisable) and may, if the Committee so determines, be canceled in exchange for a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>payment in cash of an amount equal to the product of (x) the excess, if any, of the Change of Control</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Price over the Exercise Price multiplied by (y) the number of shares then covered by the Option.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><U>Alternative Award</U></FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Notwithstanding Section 6(a), no cancellation, acceleration of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>exercisability, vesting, cash settlement or other payment shall occur with respect to any portion of</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Option if the Committee reasonably determines in good faith, prior to the occurrence of a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Change of Control, that such portion of the Option shall be honored or assumed, or new rights</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>substituted therefore (such honored, assumed or substituted Option being hereinafter referred to as</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>an &#147;Alternative Award&#148;) by the Employee&#146;s employer (or an affiliate thereof) immediately after the</FONT>&nbsp;</TD></TR></TABLE><BR>
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<TR>
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     <TD width="15%"></TD>
     <TD width="73%"></TD></TR>
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     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Change of Control, provided that any such Alternative Award must:</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>be based on stock which is traded on an established securities market;</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>provide the Employee with rights and entitlements substantially equivalent to or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>better than the rights, terms and conditions applicable under such portion of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Option, including, but not limited to, an identical or better exercise and vesting</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>schedule, and identical or better timing and methods of payment;</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>have substantially equivalent economic value to such portion of the Option</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(determined at the time of the Change of Control and using valuation principles</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;permitted under Treas. Reg. &#167;1.424-1); and</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>provide that, in the event that such Employee&#146;s employment is involuntary</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;terminated or constructively terminated, any conditions on such Employee&#146;s rights</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; under, or any restrictions on transfer or exercisability applicable to, each such</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alternative Award shall be waived or shall lapse, as the case may be.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For this purpose, a constructive termination shall mean a termination of employment by the Employee within</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>120 days following a material reduction in the Employee&#146;s base salary or an Employee&#146;s incentive compensation</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>opportunity, a material reduction in the Employee&#146;s responsibilities, or relocation of the Employee&#146;s principal place</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of employment is a location 50 miles away or more from Employee&#146;s prior place of employment.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>7.&nbsp; </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Non-Solicitation</U></FONT></B><B><FONT face="Times New &#13;&#10;Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>For a period of twelve months after the termination of Employee&#146;s employment,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee shall not, directly or indirectly:</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;encourage any employee or agent of the Company or a Subsidiary to terminate his or her</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>relationship with the Company;</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>employ, engage as a consultant or adviser, or solicit the employment or engagement as a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>consultant or adviser, of any employee or agent of the Company or a Subsidiary (other than by the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Company or a Subsidiary), or cause or encourage any Person to do any of the foregoing;</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp; establish (or take preliminary steps to establish) a business with, or encourage others to establish</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(or take preliminary steps to establish) a business with, any employee or agent of the Company or a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Subsidiary; or</FONT>&nbsp;</TD>
     <TD noWrap align=left>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>interfere with the relationship of the Company or a Subsidiary with, or endeavor to entice away</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>from the Company, any Person who or which at any time during the period commencing one year prior to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the termination of the Employee&#146;s employment was or is a material customer or material supplier of, or</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>maintained a material business relationship with, the Company.</FONT>&nbsp;</TD></TR>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>8.&nbsp; </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Nontransferability of Awards</U></FONT></B><B><FONT face="Times New &#13;&#10;Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The Option granted hereunder may not be sold, transferred, pledged,</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>distribution. Following the Employee&#146;s death, all rights with respect to any Option that was exercisable at the time</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of such Employee&#146;s death and has not expired may be exercised by his designated beneficiary or by his estate in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>accordance with, and subject to, the terms and conditions hereof and of the Plan.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>9.&nbsp; </FONT><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Beneficiary Designation</U></FONT></B><FONT face="Times New &#13;&#10;Roman,Arial,Helvetica,sans-serif" size=2>. <FONT face="Times New Roman">Each Participant under the Plan may from time to time name any beneficiary or</FONT></FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid or</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>by whom any right under the Plan is to be exercised in case of the Participant&#146;s death; </FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>provided that</FONT><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>, if the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Participant shall not have designated any beneficiary under this Plan, the Participant&#146;s beneficiary shall be deemed</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to be the person designated by the Participant under the group life insurance plan of the Company or a Subsidiary in</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>which such Participant participates (unless such designated beneficiary is not a Family Member). Each designation</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>made hereunder will revoke all prior designations by the same Participant with respect to all Awards previously</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=3><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>granted (including, solely for purposes of this Plan, any deemed designation), shall be in a form prescribed by the</FONT>&nbsp;</TD></TR></TABLE><BR>
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     <TD width="92%"></TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Committee, and will be effective only when received by the Committee in writing during the Participant&#146;s lifetime.</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>In the absence of any such effective designation (including a deemed designation), benefits remaining unpaid at the</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Participant&#146;s death shall be paid to or exercised by the Participant&#146;s surviving spouse, if any, or otherwise to or by</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Participant&#146;s estate. Except as otherwise expressly provided herein, nothing in this Plan is intended or may be</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>construed to give any person other than Participants any rights or remedies under this Plan.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>10.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Tax Withholding</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. Whenever Common Stock is to be issued or cash paid pursuant to the exercise of an</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Option under this Agreement, the Company shall have the power to withhold, or require the Employee to remit, an</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>amount sufficient to satisfy Federal, state and local withholding tax requirements relating to such transaction, and</FONT>&nbsp;</TD></TR>
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     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Company may defer payment of cash or the issuance of Common Stock until such requirements are satisfied.</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The Committee may permit the Employee to elect, subject to such conditions as the Committee may impose:</FONT>&nbsp;</TD></TR>
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     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>a)</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to have Shares otherwise issuable upon the exercise of an Option withheld by the Company, or</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>b)</FONT>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>to deliver to the Company cash equal to all or part of the Employee&#146;s Federal, state or local tax obligation</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;</TD>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>associated with the transaction.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>11.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Adjustment of the Number of Option Shares</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman" size=2>In the event of any Common Stock dividend or Common</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman" size=2>Stock split, recapitalization (including, but not limited to, the payment of an extraordinary dividend), merger,</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2><FONT face="Times New Roman">consolidation, combination, spin-off, distribution of assets to stockholders (other </FONT>than ordinary cash dividends),</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>exchange of shares, or other similar corporate change, the aggregate number of shares of Common Stock subject to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>this Option and the exercise price applicable to this Option shall be appropriately adjusted by the Committee and the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Committee&#146;s determination shall be conclusive; provided, however, that any fractional shares resulting from any</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>such adjustment shall be disregarded.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>12.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Compensation Recovery Policy</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The restricted stock unit award described in this Agreement is subject to</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the Principal Financial Group, Inc. Executive Compensation Recovery Policy, effective February 23, 2010, as may</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>be amended from time to time, which is incorporated by this reference.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>13.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Requirements of Law</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman" size=2>The issuance of shares of Common Stock pursuant to any Option shall be subject</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman" size=2>to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>securities exchanges as may be required. No shares of Common Stock shall be issued upon exercise of any portion</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>of the Option granted hereunder if such issuance or exercise would result in a violation of applicable law, including</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the federal securities laws and any applicable state or foreign securities laws. The Option granted hereunder shall be</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>offered pursuant to an applicable federal securities law exemption from registration.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>14.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Governing Law</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>This Agreement shall be construed in accordance with and governed by the laws of the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>State of Delaware, regardless of the law that might be applied under principles of conflict of laws.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>15.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Interpretation; Construction</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman" size=2>Any determination or interpretation by the Committee under or pursuant to</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman" size=2>this Agreement shall be final and conclusive on all persons affected hereby. In the event of a conflict between any</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman" size=2>term of this Agreement and the terms of the Plan, the terms of the Plan shall control.</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD colSpan=2><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</FONT><FONT face="Times New Roman" size=2>16. </FONT><B><FONT face="Times New Roman" size=2><U>Electronic Delivery</U></FONT></B><FONT face="Times New Roman" size=2>. The Company may, in its sole discretion, decide to deliver any documents related to</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman" size=2>current or future participation in the Plan by electronic means. The Employee hereby consents to receive such</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>established and maintained by the Company or a third party designated by the Company.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>17.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Severability</U></FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>. The provisions of this Agreement are severable and if any one or more provisions are</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>be binding and enforceable.</FONT>&nbsp;</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>18.</FONT>&nbsp;</TD>
     <TD noWrap align=left><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2><U>Amendments</U></FONT></B><B><FONT face="Times New Roman,Bold,Arial,Helvetica,sans-serif" size=2>. </FONT></B><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>The Committee shall have the exclusive right to amend this Agreement, from time to time,</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>provided that no such amendment shall impair the rights of the Employee under this Agreement without the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee&#146;s consent. Upon its adoption by the Committee, any alteration or amendment of this Agreement shall</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left colSpan=2><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>become binding and conclusive on all persons affected thereby without any need for consent or other action by any</FONT>&nbsp;</TD></TR></TABLE><BR>
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<TR>
     <TD width="100%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>such person. The Company shall give written notice to the Employee of any such amendment as promptly as</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>practicable after the adoption thereof.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute, and the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Employee has executed, this Agreement, each as of the Grant Date.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>By electronically signing this Agreement, I, the Employee, acknowledge that I have read the Plan, and that</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>I fully understand all of my rights under the Plan, as well as all of the terms and conditions which may limit my</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>eligibility to exercise this Option Award and/or transfer Shares acquired under this Option Award. Without limiting</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>the generality of the preceding sentence, I understand that my right to exercise this Option Award is conditioned</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>upon my continued employment with the Company. The terms and conditions set forth in this Agreement and in the</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Plan will be binding upon me, my person representative or the person or persons to whom my rights under this</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>Agreement pass by will or by the applicable laws of descent and distribution. I shall not have any rights of a</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>shareholder with respect to the shares subject to the Option until such shares have been issued to me upon proper</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>exercise of the Option.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I acknowledge that the covenants contained in Section 7 are reasonable in the scope of the activities restricted</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>and the duration of the restrictions, and that such covenants are reasonably necessary to protect the Company&#146;s</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>legitimate interests in its relationships with its employees, customers and suppliers. Employee further acknowledges</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>such covenants are essential elements of this Agreement and that, but for such covenants, the Company would not</FONT>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left><FONT face="Times New Roman,Arial,Helvetica,sans-serif" size=2>have entered into this Agreement.</FONT>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="Times New Roman" size=2>PRINCIPAL FINANCIAL GROUP, INC.</FONT></B><FONT face="Times New Roman">&nbsp;</FONT></TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman">&nbsp;&nbsp;&nbsp;</FONT><FONT face="Times New Roman" size=2>By:</FONT><FONT face="Times New Roman">&nbsp;______________________________</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman">&nbsp;&nbsp;</FONT><FONT face="Times New Roman" size=2>Name:&nbsp; Ralph Eucher, SVP Human Resources</FONT><FONT face="Times New Roman">&nbsp;</FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
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</HTML>
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stockplanadoption8k1.htm - Generated by SEC Publisher for SEC Filing
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:
May 18, 2010
(Date of earliest event reported)
PRINCIPAL FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware
1-16725
42-1520346
(State or other jurisdiction
(Commission file number)
(I.R.S. Employer
of incorporation)
Identification Number)
711 High Street, Des Moines, Iowa 50392
(Address of principal executive offices)
(515) 247-5111
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
_______________________
Item 5.02
(e)
On May 18, 2010, the shareholders of Principal Financial Group, Inc. (the "Company") approved the
adoption of the Principal Financial Group, Inc. 2010 Stock Incentive Plan. The Company's board of directors had
previously adopted the plan subject to shareholder approval. A summary of the plan as well as its complete text is
included in the Company's proxy statement filed with the Securities and Exchange Commission on April 6, 2010.
Item 5.07
Submission of Matters to a Vote of Security Holders
At our annual meeting of shareholders on May 18, 2010, the shareholders elected four Class III directors
each for a term expiring at our 2013 annual meeting. Abstentions and broker non-votes were treated as being
present at the meeting for the purpose of determining a quorum but were not counted as votes. The voting results
were as follows:
SHARES
SHARES
VOTED
SHARES
VOTED FOR
AGAINST
ABSTAINING
Michael T. Dan
176,729,519
9,246,537
1,274,088
C. Daniel Gelatt
176,781,276
9,190,706
1,278,162
Sandra L. Helton
184,183,307
1,812,021
1,254,816
Larry D. Zimpleman
178,531,442
7,469,783
1,248,919
The directors whose terms of office continued and the years their terms expire are as follows:
Class I Directors Continuing in Office Whose Term Expires in 2011
Betsy J. Bernard
Jocelyn Carter-Miller
Gary E. Costley
Class II Directors Continuing in Office Whose Term Expires in 2012
Richard L. Keyser
Arjun K. Mathrani
Elizabeth E. Tallett
In addition, the shareholders approved and adopted the Principal Financial Group, Inc. 2010 Stock
Incentive Plan, more fully described above in Item 5.02(e). The voting results were as follows:
FOR
AGAINST
ABSTAIN
178,040,995
7,091,341
2,117,808
In the last agenda item, the shareholders ratified the appointment of Ernst & Young LLP as our
independent auditors for 2010. The voting results were as follows:
FOR
AGAINST
ABSTAIN
201,620,679
2,129,733
1,270,397
Item 9.01
Financial Statements and Exhibits
(c)
Exhibits
99.1
Form of Performance Based Restricted Stock Unit Award Agreement
99.2
Form of Nonqualified Stock Option Award Agreement
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
PRINCIPAL FINANCIAL GROUP, INC.
By:
/s/ Joyce N. Hoffman
Name:
Joyce N. Hoffman
Title:
Senior Vice President and
Corporate Secretary
Date:
May
21
, 2010
Exhibit 99.1
2010 Stock Incentive Plan
Performance Based Restricted Stock Unit Award Agreement
PERFORMANCE BASED RESTRICTED STOCK UNIT AGREEMENT
("Agreement"), evidencing the
restricted stock unit award described below under the Principal Financial Group, Inc. 2010 Stock Incentive Plan (the
"Plan") by Principal Financial Group, Inc., a Delaware corporation (the "Company"), to you, (the "Employee").
Capitalized terms not defined in this Agreement shall have the meanings given to such terms in the Plan.
Type of Grant:
Performance Based Restricted Stock Unit
Performance Period:
______________________________
(the "Performance Period")
1.
Confirmation of Grant
.
The Company hereby evidences and confirms its grant to the Employee, effective on
the date reflected on your online award acceptance screen (the "Grant Date") and subject to and upon the terms and
conditions set forth in this Agreement, of a restricted stock unit award (the "Award") in respect of the number of
performance based restricted stock units listed on your online award acceptance screen (the "Restricted Stock
Units"). Each Restricted Stock Unit represents a contractual right to receive one share of the Company's common
stock (the "Common Stock"), subject to the terms and conditions of this Agreement. Employee's right to receive
Common Stock in respect of Restricted Stock Units is generally contingent upon (
i
) the achievement of the
performance objective outlined in Section 2 below (the "Performance Objective") and (
ii
) the Employee's continued
employment through the end of the Performance Period. This Agreement is subordinate to, and the terms and
conditions of this Award, are subject to, the terms and conditions of the Plan.
2.
Performance Objective
.
(a) No Performance Based Restricted Stock Units shall become vested and payable hereunder unless and until
the Committee shall have certified that the Threshold ROE Objective or the Operating Income Objective (as
defined below) has been satisfied. If the Threshold ROE Objective or Operating Income Objective is satisfied,
and subject to the Committee's authority to exercise negative discretion to reduce the number of Performance
Based Restricted Stock Units as described in Section 2(b) below, the maximum award that may be payable
hereunder shall be equal to one and one-half the number of Performance Based Restricted Stock Units specified
above.
(b) Notwithstanding the provisions of Section 2(a), if the Committee determines not to exercise its discretion to
reduce the maximum award payable hereunder:
(i)
the number of Performance Based Restricted Stock Units that will be earned and payable
hereunder shall be zero if the Threshold ROE Objective or Operating Income Objective, as defined
below, is not satisfied; and
(ii) except as provided in Sections 3 and 4, if the Threshold ROE Objective or Operating Income
Objective is satisfied, the number of Performance Based Restricted Stock Units earned and payable
shall be determined by adding the results of (a) multiplying (
i
) 50% of the number of Performance
Based Restricted Stock Units by (
ii
) the ROE Multiplier (as defined below) and (b) multiplying (i) 50%
of the number of Performance Based Restricted Stock Units by (ii) the Book Value Per Share Multiplier
(as defined below).
(c) The "ROE Objective" is Average return on equity ("ROE") for the Performance Period established by the
Committee as the Threshold ROE Objective for this Award, which is listed on Annex I hereto. "Average ROE"
shall mean a simple average of the ROE for each of the calendar years ended during the Performance Period
based on the audited financial statements for each such calendar year as prepared in accordance with U.S.
generally accepted accounting principles ("GAAP"). "ROE" with respect to any calendar year shall mean (i)
income from continuing operations before income taxes per the audited Consolidated Statements of Operations
less (A) net realized/unrealized capital gains (losses) and (B) preferred stock dividends declared during such
calendar year divided by (ii) the average equity excluding other comprehensive income available to common
stockholders.
(d) The "Operating Income Objective" is the cumulative Operating Income for the Performance Period
established by the Committee as the Threshold Operating Income Objective for this Award, which is listed on
Annex I hereto. "Operating Income" with respect to any calendar year shall mean annual income from the
Company's continuing operations, minus net realized and unrealized gains and losses.
(e) The "ROE Multiplier" is
(i) 50%, if Average ROE for the Performance Period is equal to the "Minimum ROE Objective" for this
Award, which is listed on Annex I hereto;
(ii) 100%, if Average ROE for the Performance Period is equal to such level for the Performance Period
specified by the Committee as the "Target ROE Objective" for this Award, which is listed on Annex I
hereto; and
(iii) 150%, if Average ROE for the Performance Period is equal to or in excess of the level of Average
ROE for such Performance Period specified by the Committee as the "Maximum ROE Objective" for
this Award, which is listed on Annex I hereto.
If Average ROE for the Performance Period is above the Minimum ROE Objective but below the Target
ROE Objective, or above the Target ROE Objective but below the Maximum ROE Objective, the ROE
Multiplier shall be determined by mathematical interpolation between the relevant stated ROE Objectives.
(f) Average Book Value Per Share shall mean a simple average of the Book Value Per Share for each of the
calendar years ended during the Performance Period. "Book Value Per Share" with respect to any calendar year
is defined as total ending common equity excluding other comprehensive income divided by number of
common shares outstanding end of year. The "Book Value Per Share Multiplier" is
(i) 50%, if Average Book Value Per Share for the Performance Period is equal to the "Minimum Book
Value Per Share Objective" for this Award, which is listed on Annex I hereto;
(ii) 100%, if Average Book Value Per Share for the Performance Period is equal to such level for the
Performance Period specified by the Committee as the "Target Book Value Per Share Objective" for
this Award, which is listed on Annex I hereto; and
(iii) 150%, if Average Book Value Per Share for the Performance Period is equal to or in excess of the
level of Average Book Value Per Share for such Performance Period specified by the Committee as the
"Maximum Book Value Per Share Objective" for this Award, which is listed on Annex I hereto.
If Average Book Value Per Share for the Performance Period is above the Minimum Book Value Per Share
Objective but below the Target Book Value Per Share Objective, or above the Target Book Value Per
Share Objective but below the Maximum Book Value Per Share Objective, the Book Value Per Share
Multiplier shall be determined by mathematical interpolation between the relevant stated Book Value Per
Share Objectives.
(g) Payment in respect of Earned Performance Based Restricted Stock Units shall be made not later than the
first March 15 following the calendar year in which the Performance Period ends. Except to the extent
expressly provided under the applicable provisions of the Code and regulations thereunder, payment under this
agreement shall not be made unless the Human Resources Committee of the Company's Board of Directors
certifies the performance results for 2010. Unless otherwise determined by the Committee, all payments in
respect of Earned Performance Based Restricted Stock Units shall be made in an equivalent number of shares of
Common Stock, rounded down to the nearest whole number of shares.
3.
Termination of Employment
.
(a)
Death, Disability or Approved Retirement
. Except as provided in Section 4(e) or to the extent that the
Committee may provide for more favorable treatment at or after grant, in the event that the Employee's
employment with the Company or a Subsidiary terminates due to the Employee's (
i
)
death, (
ii
) Disability or
(
iii
) Approved Retirement prior to the last day of the first year in the Performance Period, the Employee shall
be deemed to have earned, as of the end of the Performance Period, a number of Restricted Stock Units equal
to the product of (
i
) the number of Earned Restricted Stock Units to which the Employee would have become
entitled pursuant to Section 2 had the Employee remained employed through the end of the Performance
Period, multiplied by (
ii
) a fraction not greater than one (the "Pro-Ration Fraction"), the numerator of which is
(
A
) the number of days during the Performance Period during which the Employee was employed and (
B
) the
denominator of which is 365. In the event that an Employee's employment with the Company or a Subsidiary
terminates due to the Employee's (
i
) death, (
ii
) Disability or (
iii
) Approved Retirement on or after the last day
of the first year in the Performance Period, the Employee shall be deemed to have earned, as of the end of the
Performance Period, the same number of Earned Restricted Stock Units to which the Employee would have
become entitled pursuant to Section 2 had the Employee remained employed through the end of the
Performance Period. Any portion of the Restricted Stock Units that cannot become vested and payable in
accordance with the second preceding sentence shall terminate and automatically be cancelled as of the date of
the Employee's termination of employment. Any portion of the Employee's Restricted Stock Units that could
have vested pursuant to the third and second preceding sentences, but do not vest as of the end of the
Performance Period, shall terminate and be canceled upon the expiration of such Performance Period.
(b)
Other Termination of Employment
. Unless otherwise determined by the Committee at or after grant, in the
event that the Employee's employment with the Company or a Subsidiary terminates prior to the end of the
Performance Period for any reason other than those listed in Section 3(a), all of the Employee's Restricted
Stock Units shall terminate and automatically be canceled upon such termination of employment.
(c)
No Guarantee of Employment
. Nothing in this Agreement shall interfere with or limit in any way the right
of the Company or a Subsidiary to terminate the Employee's employment at any time, or confer upon the
Employee any right to continue in the employ of the Company or Subsidiary.
4.
Change of Control
.
Notwithstanding the provisions of Section 2 and 3 hereof, in the event of a Change of
Control, the Restricted Stock Units subject to this Agreement shall be converted into a number of shares of Common
Stock or, if the Change of Control is a Reorganization Transaction, shares of the common stock of the Surviving
Corporation, as provided in (and subject to the terms and conditions of) this Section 4. If the Employee has been
continuously employed from the Grant Date until the date of the Change of Control, the Employee's rights in respect
of the Restricted Stock Units shall be determined as provided in Section 4(a) or 4(b), depending on the period of
time that has passed since the commencement of the Performance Period. If the Employee's employment shall have
terminated prior to the date of the Change of Control, but at least some of the Employee's Restricted Stock Units
remain outstanding pursuant to Section 3(a) (or by reason of the Committee's exercise of its discretionary authority
pursuant to Section 3(b)), the Employee's rights in respect of the Employee's outstanding Restricted Stock Units
shall be determined as provided in Section 4(e).
(a) If the Change of Control occurs within one year of the commencement of the Performance Period, the
Employee will be granted a contractual right to receive a number of shares of Common Stock equal to the
number of the Employee's Restricted Stock Units.
(b) If the Change of Control occurs on or after the first anniversary of the commencement of the Performance
Period, the Employee will be granted a contractual right to receive a number of shares of Common Stock equal
to the number of restricted stock units that would have become Earned Restricted Stock Units, assuming that
(i) the Performance Period ended on the date on which the Change of Control occurs (the "Change of
Control Date") and
(ii) the determination of whether, and to what extent, the Performance Objective is achieved, is based on
actual performance against the stated performance criteria through the Change of Control Date,
projected out for the remainder of the originally stated Performance Period, but without adjustment due
to the fact that the Change of Control Date occurs prior to the end of the stated Performance Period.
(c) Any shares of Common Stock subject to the contractual rights granted pursuant to Section 4(a) or 4(b) shall
vest in full (without regard to any performance condition related to the period following the Change of Control
Date) on the last day of the Performance Period so long as the Employee is continuously employed through
such date. These rights shall also vest in full upon any earlier termination of Employee's employment due to
(1) Approved Retirement, (2) death, (3) Disability, (4) a termination by the Company without Cause or (5) the
constructive termination of the Employee's employment.
For this purpose, a constructive termination shall mean a termination of employment by the (x) within 120
days following (1) a material reduction in the Employee's base salary or incentive compensation opportunity,
(2) a material reduction in the Employee's responsibilities, or (3) relocation of the Employee's principal place
of employment to a location 50 miles away or more from Employee's prior place of employment or (y)
following the occurrence of any other event or circumstance that entitles Employee to terminate his or her
employment with the Company and receive severance benefits under any agreement between Employee and
the Company. Any shares of Common Stock issuable in respect of the rights granted under this Section 4 shall
be issued the day following the last day of the Performance Period An Employee who is granted the right to
receive shares under this Section 4(c) shall also have the right to receive dividend equivalents in respect of
such shares, at the same time and in the same amounts as though the shares that would be delivered had been
outstanding shares. Any dividend equivalents payable shall be deemed re-invested in additional shares of the
underlying stock based on the fair market value thereof on the payment date of the corresponding dividend or
distribution, and such additional shares shall vest and be distributed at the same time and subject to the same
conditions as apply to the underlying shares.
(d) If, prior to the occurrence of a Change of Control, Employee has timely elected pursuant to Section 10
hereof to defer receipt of the Common Stock that would have been deliverable in respect of any Earned
Restricted Stock Units, then in lieu of issuing shares of Common Stock at the time specified in Section 4(c) the
shares of Common Stock shall be issued at the time or times specified in, and subject to the terms of, the
Employee's deferral election. An Employee who is granted the right to receive shares under this Section 4(d)
shall also have the right to receive dividend equivalents in respect of such shares, at the same time and in the
same amounts as though the shares that would be delivered had been outstanding shares. Any dividend
equivalents payable shall be deemed re-invested in additional shares of the underlying stock based on the fair
market value thereof on the payment date of the corresponding dividend or distribution, and such additional
shares shall vest and be distributed at the same time and subject to the same conditions as apply to the
underlying shares.
(e) If Employee's employment terminated prior to the Change of Control Date, but some or all of the
Employee's Restricted Stock Units are still outstanding on such Date pursuant to either Section 3(a) or 3(b)
hereof, then, unless otherwise specified by the Committee at the time of any exercise of its discretionary
authority under Section 3, the Employee shall receive, immediately following (and not later than 15 days after)
the Change of Control Date, a number of shares of Common Stock equal to
(i) if the Change of Control Date occurs prior to the first anniversary of the commencement of the
Performance Period, the product of (A) the number of Restricted Stock Units initially awarded to the
Employee hereunder times (B) the Pro-Ration Fraction; or
(ii) if the Change of Control Date occurs on or after the first anniversary of the commencement of the
Performance Period (A) the number of shares of Common Stock that would have been issued to the
Employee based on the number of Restricted Stock Units initially awarded to the Employee had Section
4(b) been applicable to the Employee times (B) the Pro-Ration Fraction.
Except as may otherwise have been provided by the Committee at the time of its exercise of its discretionary
authority under Section 3, any shares of Common Share (or the Surviving Corporation's common stock)
issuable pursuant to this Section 4(e) shall be fully vested and freely transferable as of the date of the Change
of Control.
(f) Notwithstanding the preceding subsections of this Section 4, if a Change of Control is also a Reorganization
Transaction, in lieu of contractual rights to receive shares of Common Stock (including any such shares
deliverable in respect of any contractual right described in Section 4(d)), the Employee shall receive the
contractual right to receive the number of shares of the Surviving Corporation's common stock into which the
number of shares of Common Stock that would otherwise have been subject to the contractual rights granted
under this Section 4 would convert, based on the exchange ratio in the Reorganization Transaction applicable
to outstanding shares of Common Stock or, in any case where the Committee can not reasonably discern such
an exchange ratio (such as where the Company's shareholders receive cash instead of Surviving Corporation
common stock), the relative Fair Market Values of a share of Common Stock and such Surviving Corporation
common stock on the Change of Control Date.
(g) Notwithstanding anything else contained in this Section 4 to the contrary, the Committee may elect, at its
sole discretion by resolution adopted prior to the Change of Control Date, to satisfy the Employee's rights in
respect of the Restricted Stock Units, in whole or in part, by making a cash payment to the Employee within 5
business days of the Change of Control Date in respect of all such Restricted Stock Units or such portion of
such Restricted Stock Units as the Committee shall determine. Any cash payment for any Restricted Stock
Unit shall be equal to the Fair Market Value of the applicable Common Stock on the Change of Control Date.
(h) Upon conversion into either shares of Common Stock or a right to receive shares of Common Stock (or, in
either case, Surviving Corporation common stock) pursuant to this Section 4, a cash settlement of the
Employee's rights pursuant to Section 4(e) or a combination of the issuance of stock and the payment of cash
in accordance with the applicable provisions of this Section, all of the Employee's Restricted Stock Units
subject to the Award shall be cancelled and terminated.
5.
Non-Solicitation
. For a period of twelve months after the termination of Employee's employment, Employee
shall not, directly or indirectly:
(a) encourage any employee or agent of the Company or a Subsidiary to terminate his or her relationship with
the Company;
(b) employ, engage as a consultant or adviser, or solicit the employment or engagement as a consultant or
adviser, of any employee or agent of the Company or a Subsidiary (other than by the Company or a
Subsidiary), or cause or encourage any Person to do any of the foregoing;
(c) establish (or take preliminary steps to establish) a business with, or encourage others to establish (or take
preliminary steps to establish) a business with, any employee or agent of the Company or a Subsidiary; or
(d) interfere with the relationship of the Company or a Subsidiary with, or endeavor to entice away from the
Company, any Person who or which at any time during the period commencing one year prior to the
termination of the Employee's employment was or is a material customer or material supplier of, or
maintained a material business relationship with, the Company.
6.
Nontransferability of Awards
. The Restricted Stock Units granted hereunder may not be sold, transferred,
pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent
and distribution. Following the Employee's death, any shares distributable (or cash payable) in respect of Restricted
Stock Units pursuant to Section 3 or 4 will be delivered or paid, at the time specified in Section 2(g) or, if
applicable, Section 4(e), to the Employee's designated beneficiary or to the Employee's estate in accordance with,
and subject to, the terms and conditions hereof and of the Plan.
7.
Beneficiary Designation
. The Employee may from time to time name any beneficiary or beneficiaries (who
may be named contingently or successively) to whom shall be delivered or paid under this Agreement following the
Employee's death any shares that are distributable (or cash payable) hereunder in respect of Employee's Restricted
Stock Units pursuant to Section 3 or Section 4 at the time specified in Section 2(g) or, if applicable, Section 4(a) or
4(e); provided that, if the Employee shall not have designated any beneficiary under this Plan, the Employee's
beneficiary shall be deemed to be the person designated by the Employee under the group life insurance plan of the
Company or a Subsidiary in which such Employee participates (unless such designated beneficiary is not a Family
Member). Each designation will revoke all prior designations, shall be in a form prescribed by the Committee, and
will be effective only when filed in writing with the Committee during the Employee's lifetime. In the absence of
any such effective designation, shares issuable in connection with the Employee's death shall be paid by the
Employee's surviving spouse, if any, or otherwise to the Employee's estate.
8.
Tax Withholding
. Whenever Common Stock is to be issued in settlement of Earned Restricted Stock Units
under this Agreement or unrestricted stock is to be delivered pursuant to Section 2, the Company shall have the
power to withhold, or require the Employee to remit, an amount sufficient to satisfy Federal, state and local
withholding tax requirements relating to such transaction, and the Company may defer payment of cash or the
issuance of Common Stock until such requirements are satisfied. The Committee may permit the Employee to elect,
subject to such conditions as the Committee may impose:
(a) to have shares of Common Stock otherwise issuable upon the exercise under this Award withheld by the
Company; or
(b) to deliver to the Company cash equal to all or part of the Employee's Federal, state or local tax obligation
associated with the transaction.
9.
Adjustment of the Number of Restricted Stock Units
. In the event of any Common Stock dividend or
Common Stock split, recapitalization (including, but not limited to, the payment of an extraordinary dividend),
merger, consolidation, combination, spin-off, distribution of assets to stockholders (other than ordinary cash
dividends), exchange of shares, or other similar corporate change, the aggregate number of Restricted Stock Units
subject to this Award shall be appropriately adjusted by the Committee and the Committee's determination shall be
conclusive; provided, however, that any fractional shares resulting from any such adjustment shall be disregarded.
10.
Deferral of Distribution in Respect of Restricted Stock Units
. An Employee may elect, by written notice to
the Company delivered not later than December 31 of the second year in the Performance Period, to defer delivery
of the shares of Common Stock (or any other distribution payable hereunder) in respect of Earned Restricted Stock
Units. Any such election shall specify the date on which such shares of Common Stock shall be delivered in a
single distribution; provided, however, that regardless of the date selected by the Employee all of the shares will be
delivered 5 business days after Employee's termination of employment (or, if Employee is a key employee of the
Company within the meaning of Section 416(i) of the Code for the year in which his or her employment terminates,
six (6) months following such termination of employment unless such termination of employment is due to
Employee's death or disability (as defined in Section 409A of the Code). The Employee may, in addition to electing
a date for payment, elect to have delivery of the shares be made within a fixed number of days following a change of
control of the Company (as defined for purposes of Section 409A of the Code). The Company or the Committee
may impose any such other or additional conditions on the terms of, or the timing of, any deferral election pursuant
to this Section 10, to the extent deemed necessary or appropriate to satisfy the applicable provisions of Section
409A. Notwithstanding anything else contained in this Section 10 to the contrary, any election to defer delivery of
any amount otherwise payable under this Agreement that would fail to comply with the conditions set forth in such
Section 409A shall be deemed void and without effect.
11.
Compensation Recovery Policy
. The restricted stock unit award described in this Agreement is subject to the
Principal Financial Group, Inc. Executive Compensation Recovery Policy, effective February 23, 2010, as may be
amended from time to time, which is incorporated by this reference.
12.
Requirements of Law
. The issuance of shares of Common Stock pursuant to this Agreement shall be subject to
all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities
exchanges as may be required. No shares of Common Stock shall be issued pursuant to this Agreement if such
issuance or exercise would result in a violation of applicable law, including the federal securities laws and any
applicable state or foreign securities laws.
13.
Governing Law
. This Agreement shall be construed in accordance with and governed by the laws of the State
of Delaware, regardless of the law that might be applied under principles of conflict of laws.
14.
Interpretation; Construction
. Any determination or interpretation by the Committee under or pursuant to this
Agreement shall be final and conclusive on all persons affected hereby. In the event of a conflict between any term
of this Agreement and the terms of the Plan, the terms of the Plan shall control.
15.
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to
current or future participation in the Plan by electronic means. The Employee hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system
established and maintained by the Company or a third party designated by the Company.
16.
Severability
. The provisions of this Agreement are severable and if any one or more provisions are determined
to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding
and enforceable.
17.
Amendments
. The Committee shall have the exclusive right to amend this Agreement, from time to time,
provided that no such amendment shall impair the rights of the Employee under this Agreement without the
Employee's consent. Upon its adoption by the Committee, any alteration or amendment of this Agreement shall
become binding and conclusive on all persons affected thereby without any need for consent or other action by any
such person. The Company shall give written notice to the Employee of any such amendment as promptly as
practicable after the adoption thereof.
IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute, and the Employee has
executed, this Agreement, each as of the Grant Date.
By electronically signing this Agreement, I, the Employee, acknowledge that I have read the Plan, and that I fully
understand all of my rights under the Plan, as well as all of the terms and conditions of this Award. Without limiting
the generality of the preceding sentence, I understand that, in most instances, my right to receive any Common Stock
or other benefit pursuant to this Award is conditioned upon my continued employment with the Company and the
achievement of the Performance Objectives specified herein. The terms and conditions set forth in this Agreement
and in the Plan are binding upon me, my person representative or the person or persons to whom my rights under
this Agreement pass by will or by the applicable laws of descent and distribution. I shall not have any rights of a
shareholder with respect to the Common Stock corresponding to the Restricted Stock Units awarded hereby until
shares of such Common Stock have been issued to me, if at all, in accordance with the terms and conditions of this
Agreement.
I acknowledge that the covenants contained in Section 5 are reasonable in the scope of the activities restricted and
the duration of the restrictions, and that such covenants are reasonably necessary to protect the Company's
legitimate interests in its relationships with its employees, customers and suppliers. I further acknowledge such
covenants are essential elements of this Agreement and that, but for such covenants, the Company would not have
entered into this Agreement.
PRINCIPAL FINANCIAL GROUP, INC.
By:
_______________________________
Name:  Ralph Eucher – SVP Human Resources
Annex I
Threshold ROE Objective
:
Threshold Operating Income Objective
:
Minimum ROE Objective
:
Target ROE Objective
:
Maximum ROE Objective
:
Minimum Book Value Per Share Objective
:
Target Book Value Per Share Objective
:
Maximum Book Value Per Share Objective
:
Exhibit 99.2
Stock Incentive Plan Award Agreement
STOCK OPTION AGREEMENT
("Agreement"), evidencing the grant of the stock option described
below under the Principal Financial Group, Inc. 2010 Stock Incentive Plan (the "Plan") by Principal Financial
Group, Inc., a Delaware corporation (the "Company") to you, (the "Employee"). Capitalized terms not defined in
this Agreement shall have the meanings given to such terms in the Plan.
Type of Grant:
Nonqualified Stock Options
1.
Confirmation of Grant; Option Exercise Price
.
The Company hereby evidences and confirms its grant
to the Employee, effective on the date of grant reflected on your online award acceptance screen (the "Grant Date")
and subject to and upon the terms and conditions set forth in this Agreement, of an option (the "Option") to purchase
the number of shares of the Company's common stock (the "Common Stock"), set forth on your online award
acceptance screen (the "Shares") at an option exercise price set forth on your online award acceptance screen (the
"Exercise Price"). The Option is not intended to be an incentive stock option under Internal Revenue Code of 1986,
as amended. This Agreement is subordinate to, and the terms and conditions of the Option granted hereunder are
subject to, the terms and conditions of the Plan.
2.
Exercise of Option
.
Options shall vest and become exercisable as described on your online award
acceptance screen, subject in each case to the Employee's continued employment with the Company or a Subsidiary
until such vesting date, and provided that 100% of such Option shall be exercisable to the extent provided in
Sections 5(a) and 6(a) of this Agreement. Shares eligible for purchase may thereafter be purchased, subject to the
provisions hereof, at any time and from time to time on or after the date they first become available for purchase
hereunder until the date on which the Option terminates.
3.
Expiration of Option
.
Unless an earlier expiration date applies pursuant to Section 5, the Option shall
expire ten years from the date of grant.
4.
Method of Exercise and Payment
.
The Employee may exercise any portion of the Option that has
become exercisable by (i) written or verbal notice to the Company's broker specifying the number of Shares the
Employee wants to purchase and (ii) payment in full at the time of exercise. Payment of the exercise price may be
made (i) in cash or its equivalent, (ii) by exchanging shares of Common Stock owned by the optionee (which are not
the subject of any pledge or other security interest), (iii) through an arrangement with a broker approved by the
Company whereby payment of the exercise price is accomplished with the proceeds of the sale of Common Stock or
(iv) by any combination of the foregoing; provided that the combined value of all cash and cash equivalents paid and
the Fair Market Value of any such Common Stock so tendered to the Company, valued as of the date such tender, is
at least equal to such Exercise Price required to be paid for the Shares being exercised.
5.
Termination of Employment
.
(a)
Death or Disability
In the event that the Employee's employment with the Company or a
Subsidiary terminates due to (i) the Employee's death, or (ii) the Employee's Disability, then 100%
of the Option shall be exercisable as of the date of such termination and thereafter may be exercised
by the Employee or the Employee's beneficiary as designated in accordance herewith at any time
prior to the earlier of (i) the third anniversary of the Employee's termination or (ii) the expiration of
the term of the Option.
(b)
Approved Retirement
. In the event that the Employee's employment with the Company
or a Subsidiary terminates due to the Employee's Approved Retirement the Participant shall be
entitled to exercise (i) the number of Options (the "Last Year Options") granted during the year in
which the Participant's employment or service terminates by reason of Approved Retirement (the
"Retirement Year") equal to the product of (x) the Last Year Options, multiplied by (y) a fraction not
greater than one, the numerator of which is (A) the number of days during the Retirement Year
during which the Participant was employed and (B) the denominator of which is 365 (the "Pro-
Ration Factor"), and (ii) any Options granted to such Participant prior to the Retirement Year. Any
Options that are exercisable in accordance with the preceding sentence may be exercised by the
Participant at any time prior to the expiration date of the term of the Options. Any of the Last Year
Options that are not exercisable at the date of a Participant's Approved Retirement shall be cancelled
on such date.
(c)
Resignation
. In the event of voluntary termination by the Employee, other than on
account of Approved Retirement (a "Resignation"), any of the Participant's then outstanding
Options that are exercisable on the date of such Resignation may be exercised by the Participant
until the later of (i) the thirtieth (30th) day following the Participant's Resignation, or (ii) if,
immediately prior to such Resignation, the Participant was subject to the Company's policies
restricting sales of its securities (a "Restricted Participant"), the thirtieth (30
th
) day from the date the
first Trading Window commences following the Participant's Resignation, but in no event following
the expiration of the term of such Options. Any outstanding Options that are not exercisable at the
time of a Participant's Resignation shall expire at the time of such Resignation and shall not be
exercisable thereafter.
(d)
Termination for Cause
. In the event of voluntarily termination of employment by the
Employee or the Employee's employment with the Company or a Subsidiary is terminated for
Cause, 100% of the Option (regardless of the extent to which the Option would otherwise be
exercisable under Section 2 of this Agreement) shall terminate and be canceled immediately upon
such termination of employment.
(e)
Other Termination of Employment
. Unless otherwise determined by the Committee, in
the event that the Employee's employment with the Company or a Subsidiary terminates for any
reason other than those listed in paragraphs (a), (b), (c) or (d) of this Section, the portion of the
Employee's Option that is exercisable as of the date of such termination may be exercised by the
Participant until the later of (i) the ninetieth (90th) day following the Participant's termination, or (ii)
if, immediately prior to such termination, the Participant was subject to the Company's policies
restricting sales of its securities (a "Restricted Participant"), the thirtieth (30
th
) day from the date the
first Trading Window commences following the Participant's termination, but in no event following
the expiration of the term of such Options. Any outstanding Options that are not exercisable at the
time of a Participant's termination shall expire and be cancelled immediately at the time of such
termination as will any exercisable portion of the Option that is not exercised within the period
described above.
(f)
No Guarantee of Employment
. Nothing in this Agreement shall interfere with or limit in
any way the right of the Company or a Subsidiary to terminate the Employee's employment at any
time, or confer upon the Employee any right to continue in the employ of the Company or a
Subsidiary.
6.
Change of Control
.
(a)
Accelerated Exercisability and Payment
. Except as otherwise provided in paragraph
6(b), in the event of a Change of Control, 100% of the Option shall become exercisable (whether or
not then exercisable) and may, if the Committee so determines, be canceled in exchange for a
payment in cash of an amount equal to the product of (x) the excess, if any, of the Change of Control
Price over the Exercise Price multiplied by (y) the number of shares then covered by the Option.
(b)
Alternative Award
. Notwithstanding Section 6(a), no cancellation, acceleration of
exercisability, vesting, cash settlement or other payment shall occur with respect to any portion of
the Option if the Committee reasonably determines in good faith, prior to the occurrence of a
Change of Control, that such portion of the Option shall be honored or assumed, or new rights
substituted therefore (such honored, assumed or substituted Option being hereinafter referred to as
an "Alternative Award") by the Employee's employer (or an affiliate thereof) immediately after the
Change of Control, provided that any such Alternative Award must:
(1)
be based on stock which is traded on an established securities market;
(2)
provide the Employee with rights and entitlements substantially equivalent to or
better than the rights, terms and conditions applicable under such portion of the
Option, including, but not limited to, an identical or better exercise and vesting
schedule, and identical or better timing and methods of payment;
(3)
have substantially equivalent economic value to such portion of the Option
(determined at the time of the Change of Control and using valuation principles
permitted under Treas. Reg. §1.424-1); and
(4)
provide that, in the event that such Employee's employment is involuntary
terminated or constructively terminated, any conditions on such Employee's rights
under, or any restrictions on transfer or exercisability applicable to, each such
Alternative Award shall be waived or shall lapse, as the case may be.
For this purpose, a constructive termination shall mean a termination of employment by the Employee within
120 days following a material reduction in the Employee's base salary or an Employee's incentive compensation
opportunity, a material reduction in the Employee's responsibilities, or relocation of the Employee's principal place
of employment is a location 50 miles away or more from Employee's prior place of employment.
7.
Non-Solicitation
.
For a period of twelve months after the termination of Employee's employment,
Employee shall not, directly or indirectly:
(a)     encourage any employee or agent of the Company or a Subsidiary to terminate his or her
relationship with the Company;
(b)
employ, engage as a consultant or adviser, or solicit the employment or engagement as a
consultant or adviser, of any employee or agent of the Company or a Subsidiary (other than by the
Company or a Subsidiary), or cause or encourage any Person to do any of the foregoing;
(c)     establish (or take preliminary steps to establish) a business with, or encourage others to establish
(or take preliminary steps to establish) a business with, any employee or agent of the Company or a
Subsidiary; or
(d)
interfere with the relationship of the Company or a Subsidiary with, or endeavor to entice away
from the Company, any Person who or which at any time during the period commencing one year prior to
the termination of the Employee's employment was or is a material customer or material supplier of, or
maintained a material business relationship with, the Company.
8.
Nontransferability of Awards
.
The Option granted hereunder may not be sold, transferred, pledged,
assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution. Following the Employee's death, all rights with respect to any Option that was exercisable at the time
of such Employee's death and has not expired may be exercised by his designated beneficiary or by his estate in
accordance with, and subject to, the terms and conditions hereof and of the Plan.
9.
Beneficiary Designation
.
Each Participant under the Plan may from time to time name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid or
by whom any right under the Plan is to be exercised in case of the Participant's death;
provided that
, if the
Participant shall not have designated any beneficiary under this Plan, the Participant's beneficiary shall be deemed
to be the person designated by the Participant under the group life insurance plan of the Company or a Subsidiary in
which such Participant participates (unless such designated beneficiary is not a Family Member). Each designation
made hereunder will revoke all prior designations by the same Participant with respect to all Awards previously
granted (including, solely for purposes of this Plan, any deemed designation), shall be in a form prescribed by the
Committee, and will be effective only when received by the Committee in writing during the Participant's lifetime.
In the absence of any such effective designation (including a deemed designation), benefits remaining unpaid at the
Participant's death shall be paid to or exercised by the Participant's surviving spouse, if any, or otherwise to or by
the Participant's estate. Except as otherwise expressly provided herein, nothing in this Plan is intended or may be
construed to give any person other than Participants any rights or remedies under this Plan.
10.
Tax Withholding
. Whenever Common Stock is to be issued or cash paid pursuant to the exercise of an
Option under this Agreement, the Company shall have the power to withhold, or require the Employee to remit, an
amount sufficient to satisfy Federal, state and local withholding tax requirements relating to such transaction, and
the Company may defer payment of cash or the issuance of Common Stock until such requirements are satisfied.
The Committee may permit the Employee to elect, subject to such conditions as the Committee may impose:
a)
to have Shares otherwise issuable upon the exercise of an Option withheld by the Company, or
b)
to deliver to the Company cash equal to all or part of the Employee's Federal, state or local tax obligation
associated with the transaction.
11.
Adjustment of the Number of Option Shares
.
In the event of any Common Stock dividend or Common
Stock split, recapitalization (including, but not limited to, the payment of an extraordinary dividend), merger,
consolidation, combination, spin-off, distribution of assets to stockholders (other
than ordinary cash dividends),
exchange of shares, or other similar corporate change, the aggregate number of shares of Common Stock subject to
this Option and the exercise price applicable to this Option shall be appropriately adjusted by the Committee and the
Committee's determination shall be conclusive; provided, however, that any fractional shares resulting from any
such adjustment shall be disregarded.
12.
Compensation Recovery Policy
. The restricted stock unit award described in this Agreement is subject to
the Principal Financial Group, Inc. Executive Compensation Recovery Policy, effective February 23, 2010, as may
be amended from time to time, which is incorporated by this reference.
13.
Requirements of Law
.
The issuance of shares of Common Stock pursuant to any Option shall be subject
to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required. No shares of Common Stock shall be issued upon exercise of any portion
of the Option granted hereunder if such issuance or exercise would result in a violation of applicable law, including
the federal securities laws and any applicable state or foreign securities laws. The Option granted hereunder shall be
offered pursuant to an applicable federal securities law exemption from registration.
14.
Governing Law
.
This Agreement shall be construed in accordance with and governed by the laws of the
State of Delaware, regardless of the law that might be applied under principles of conflict of laws.
15.
Interpretation; Construction
.
Any determination or interpretation by the Committee under or pursuant to
this Agreement shall be final and conclusive on all persons affected hereby. In the event of a conflict between any
term of this Agreement and the terms of the Plan, the terms of the Plan shall control.
16.
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to
current or future participation in the Plan by electronic means. The Employee hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system
established and maintained by the Company or a third party designated by the Company.
17.
Severability
. The provisions of this Agreement are severable and if any one or more provisions are
determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless
be binding and enforceable.
18.
Amendments
.
The Committee shall have the exclusive right to amend this Agreement, from time to time,
provided that no such amendment shall impair the rights of the Employee under this Agreement without the
Employee's consent. Upon its adoption by the Committee, any alteration or amendment of this Agreement shall
become binding and conclusive on all persons affected thereby without any need for consent or other action by any
such person. The Company shall give written notice to the Employee of any such amendment as promptly as
practicable after the adoption thereof.
IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute, and the
Employee has executed, this Agreement, each as of the Grant Date.
By electronically signing this Agreement, I, the Employee, acknowledge that I have read the Plan, and that
I fully understand all of my rights under the Plan, as well as all of the terms and conditions which may limit my
eligibility to exercise this Option Award and/or transfer Shares acquired under this Option Award. Without limiting
the generality of the preceding sentence, I understand that my right to exercise this Option Award is conditioned
upon my continued employment with the Company. The terms and conditions set forth in this Agreement and in the
Plan will be binding upon me, my person representative or the person or persons to whom my rights under this
Agreement pass by will or by the applicable laws of descent and distribution. I shall not have any rights of a
shareholder with respect to the shares subject to the Option until such shares have been issued to me upon proper
exercise of the Option.
I acknowledge that the covenants contained in Section 7 are reasonable in the scope of the activities restricted
and the duration of the restrictions, and that such covenants are reasonably necessary to protect the Company's
legitimate interests in its relationships with its employees, customers and suppliers. Employee further acknowledges
such covenants are essential elements of this Agreement and that, but for such covenants, the Company would not
have entered into this Agreement.
PRINCIPAL FINANCIAL GROUP, INC.
By:
______________________________
Name:  Ralph Eucher, SVP Human Resources