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This EMPLOYMENT AGREEMENT (the " Agreement ") dated as of June 1, 2006 (" Agreement Date ") by and between
Principal Financial Group, Inc., a Delaware corporation, (together with all successors thereto " PFGI "), Principal Financial
Services, Inc., an Iowa corporation, and Principal Life Insurance Company, an Iowa corporation (together with all successors
thereto, " Life ") (each of the foregoing referred to individually as a " Company " or collectively as " Companies ", and Larry D.
Zimpleman (" Executive "), a resident of Iowa. The parties desire to enter into this Agreement, which is intended to more fully
embody the agreement among the parties as to Executive's employment. In consideration of the mutual agreements contained
herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Company and
Executive agree as follows:
The terms set forth below have the following meanings (such meanings to be applicable to both the singular and plural
forms, except where otherwise expressly indicated):
1.1 " Accrued Annual Bonus " means the amount of any Annual Bonus earned but not yet paid with respect to any Fiscal
Year ended prior to the Date of Termination.
1.2 " Accrued Base Salary " means the amount of Executive's Base Salary, which is accrued but not yet paid as of the
Date of Termination.
1.3 " Affiliate " means any Person that directly or indirectly controls, is controlled by, is under common control with, a
Company. For the purposes of this definition, the term "control" when used with respect to any Person, means (a) the power to
direct or cause the direction of management or policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise, or (b) for purposes of Section 1.11 and Article VII, the powe