Common use of ANNEX Clause in Contracts

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 Net Deposit: The Net Deposit is $9,639,210. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series of Notes: Principal Life Income Fundings Trust 2007-129 5.85% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notes. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 32 Net Deposit: The Net Deposit is $9,639,2105,302,255.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0155,383,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8532 6.05% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 32 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 69 Net Deposit: The Net Deposit is $9,639,2103,866,940.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,906,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8569 5.25% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 69 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 18 Net Deposit: The Net Deposit is $9,639,2102,086,230.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0152,118,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8518 5.50% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 18 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 54 Net Deposit: The Net Deposit is $9,639,2103,310,788.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,351,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8554 5.55% Principal® Life CoreNotes® Due 2017 2013 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 54 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 32 Net Deposit: The Net Deposit is $9,639,2101,897,660.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,912,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8532 5.00% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 32 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 12 Net Deposit: The Net Deposit is $9,639,2101,074,944.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,088,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8512 5.40% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 12 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 12 Net Deposit: The Net Deposit is $9,639,210672,828.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015681,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8512 5.40% Principal® Life CoreNotes® Due 2017 2013 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 12 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 89 Net Deposit: The Net Deposit is $9,639,210799,680.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015816,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8589 5.900% Principal® Life CoreNotes® Due 2017 2022 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 89 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 88 Net Deposit: The Net Deposit is $9,639,2107,032,900.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0157,140,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8588 5.50% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 88 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 25 Net Deposit: The Net Deposit is $9,639,2108,998,960.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0159,136,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8525 6.00% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 25 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 30 Net Deposit: The Net Deposit is $9,639,210464,520.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015474,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8530 6.00% Principal® Life CoreNotes® Due 2017 2021 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 30 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 86 Net Deposit: The Net Deposit is $9,639,2103,363,750.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,450,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8586 5.75% Principal® Life CoreNotes® Due 2017 2026 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 86 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 86 Net Deposit: The Net Deposit is $9,639,2101,539,555.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,563,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8586 5.750% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 86 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 38 Net Deposit: The Net Deposit is $9,639,2101,629,685.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,642,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8538 5.100% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 38 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 49 Net Deposit: The Net Deposit is $9,639,2104,792,200.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0154,890,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8549 5.700% Principal® Life CoreNotes® Due 2017 2022 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 49 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 77 Net Deposit: The Net Deposit is $9,639,2107,943,040.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0158,064,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8577 5.80% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 77 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 81 Net Deposit: The Net Deposit is $9,639,2105,881,590.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0155,941,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8581 5.30% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 81 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 56 Net Deposit: The Net Deposit is $9,639,21010,458,360.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,01510,564,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8556 5.40% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 56 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 73 Net Deposit: The Net Deposit is $9,639,2102,855,320.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0152,890,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8573 5.50% Principal® Life CoreNotes® Due 2017 2013 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 73 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 42 Net Deposit: The Net Deposit is $9,639,2105,167,932.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0155,236,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8542 6.10% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 42 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 34 Net Deposit: The Net Deposit is $9,639,2107,791,350.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0157,910,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8534 6.00% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 34 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 38 Net Deposit: The Net Deposit is $9,639,210. 2,388,870.00 Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015. 2,413,015.00 Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8538 5.75% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 38 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 65 Net Deposit: The Net Deposit is $9,639,2103,967,740.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0154,020,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8565 5.75% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 65 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 111 Net Deposit: The Net Deposit is $9,639,2103,806,320.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,884,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85111 5.750% Principal® Life CoreNotes® Due 2017 2022 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 111 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 88 Net Deposit: The Net Deposit is $9,639,2101,719,120.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,740,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8588 5.500% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 88 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 63 Net Deposit: The Net Deposit is $9,639,2101,408,888.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,426,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8563 5.750% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 63 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 31 Net Deposit: The Net Deposit is $9,639,210824,670.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015833,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series 0000901239 Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8531 5.55% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 31 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 53 Net Deposit: The Net Deposit is $9,639,21026,792,000.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,01527,200,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8553 6.00% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 53 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 54 Net Deposit: The Net Deposit is $9,639,2101,106,427.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,121,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8554 5.500% Principal® Life CoreNotes® Due 2017 2015 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 54 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 51 Net Deposit: The Net Deposit is $9,639,2102,346,270.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0152,382,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8551 5.650% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 51 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 84 Net Deposit: The Net Deposit is $9,639,2106,162,828.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0156,244,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8584 5.45% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 84 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 63 Net Deposit: The Net Deposit is $9,639,2103,951,820.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0154,012,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8563 5.80% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 63 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 105 Net Deposit: The Net Deposit is $9,639,2102,842,476.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0152,877,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85105 5.550% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 105 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 17 Net Deposit: The Net Deposit is $9,639,210799,955.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015806,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8517 5.30% Principal® Life CoreNotes® Due 2017 2010 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 17 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 84 Net Deposit: The Net Deposit is $9,639,2104,608,940.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0154,703,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8584 6.000% Principal® Life CoreNotes® Due 2017 2022 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 84 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 73 Net Deposit: The Net Deposit is $9,639,2109,108,120.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0159,294,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8573 6.150% Principal® Life CoreNotes® Due 2017 2022 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 73 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 18 Net Deposit: The Net Deposit is $9,639,2101,899,975.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,925,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8518 5.75% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 18 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 29 Net Deposit: The Net Deposit is $9,639,2103,188,997.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,231,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX 100000000 For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8529 5.80% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 29 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 119 Net Deposit: The Net Deposit is $9,639,2101,800,395. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,814,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85119 4.65% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 119 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 51 Net Deposit: The Net Deposit is $9,639,21015,472,380.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,01515,708,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8551 6.00% Principal® Life CoreNotes® Due 2017 2016 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 51 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 53 Net Deposit: The Net Deposit is $9,639,2101,087,020.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,098,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8553 5.200% Principal® Life CoreNotes® Due 2017 2012 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 53 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 14 Net Deposit: The Net Deposit is $9,639,2101,644,573.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,657,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8514 5.25% Principal® Life CoreNotes® Due 2017 2010 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 14 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 123 Net Deposit: The Net Deposit is $9,639,21017,034,278. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,01517,163,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series of Notes: Principal Life Income Fundings Trust 2007-129 5.85123 5.0% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notes. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 123 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 50 Net Deposit: The Net Deposit is $9,639,2101,977,011.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,999,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8550 5.50% Principal® Life CoreNotes® Due 2017 2012 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 50 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 59 Net Deposit: The Net Deposit is $9,639,2101,161,888.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,176,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8559 5.55% Principal® Life CoreNotes® Due 2017 2013 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 59 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 31 Net Deposit: The Net Deposit is $9,639,2102,454,620.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0152,492,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8531 5.40% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY ByBy : /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx TitleTitle : Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 31 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. ByBy : /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 127 Net Deposit: The Net Deposit is $9,639,2105,630,453. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0155,673,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series of Notes: Principal Life Income Fundings Trust 2007-129 5.85127 5.00% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notes. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 127 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 89 Net Deposit: The Net Deposit is $9,639,2103,900,600.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,940,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. Account: ABA No.: XXXXXXXXX XXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8589 5.00% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 89 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 19 Net Deposit: The Net Deposit is $9,639,210998,868.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,011,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8519 5.25% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 19 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 128 Net Deposit: The Net Deposit is $9,639,2107,033,572. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0157,119,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series of Notes: Principal Life Income Fundings Trust 2007-129 5.85128 5.50% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notes. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 128 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx Name: Dxxxx Xxxxxxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 121 Net Deposit: The Net Deposit is $9,639,2103,071,230. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,118,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85121 5.4% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 121 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 42 Net Deposit: The Net Deposit is $9,639,2101,492,275.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,515,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8542 5.450% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 42 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 124 Net Deposit: The Net Deposit is $9,639,2109,490,728. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0159,606,015. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series of Notes: Principal Life Income Fundings Trust 2007-129 5.85124 5.5% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notes. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 124 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 34 Net Deposit: The Net Deposit is $9,639,2102,197,535.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0152,231,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8534 5.50% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 34 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 19 Net Deposit: The Net Deposit is $9,639,210300,000,000.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015300,000,015.00. Bank and Account: Bank: Wxxxx Fargo Bank IowaBank, N.A. N.A ABA No.: XXXXXXXXX XXXXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and 19 Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Due November 15, 2007 • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Rxxxx X. Xxx Name: Mxxxxxx Xxxxxx Rxxxx X. Xxx Title: Associate Actuary Director PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 19 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 2007. 2006 By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 108 Net Deposit: The Net Deposit is $9,639,2107,207,245.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0157,317,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85108 5.600% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 108 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx Cxxxx X. Dxxx Name: Dxxxx Xxxxxxxx Cxxxx X. Dxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 120 Net Deposit: The Net Deposit is $9,639,2103,391,804 . Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0153,433,015 . Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.85120 5.05% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar year: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Xxxxxx Name: Mxxxxxx Xxxxxx Title: Associate Actuary PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 120 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 17 Net Deposit: The Net Deposit is $9,639,2101,334,788.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,351,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8517 5.25% Principal® Life CoreNotes® Due 2017 2014 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 17 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 25 Net Deposit: The Net Deposit is $9,639,2101,905,975.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,935,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8525 5.40% Principal® Life CoreNotes® Due 2017 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 25 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 43 Net Deposit: The Net Deposit is $9,639,2101,170,120.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,194,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8543 5.650% Principal® Life CoreNotes® Due 2017 2022 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 43 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 41 Net Deposit: The Net Deposit is $9,639,210470,445.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015474,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8541 5.000% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 41 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 20072006-129 41 Net Deposit: The Net Deposit is $9,639,2101,087,020.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,098,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series XXXXXXXXX Title of Notes: Principal Life Income Fundings Trust 20072006-129 5.8541 5.80% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 20072006-129 41 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 29 Net Deposit: The Net Deposit is $9,639,2101,881,780.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,0151,896,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8529 5.00% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 29 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21February 16, 20072006. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President

ANNEX. This Annex will become effective as of the Effective Date, subject to the requirements of Section 1. Trust: Principal Life Income Fundings Trust 2007-129 56 Net Deposit: The Net Deposit is $9,639,210930,965.00. Deposit: Regardless of the amount of the Net Deposit, the Deposit is deemed to be $9,786,015938,015.00. Bank and Account: Wxxxx Fargo Bank Iowa, N.A. ABA No.: XXXXXXXXX For credit to Principal Life Insurance Company Account #XXXXXXXXXX Series Title of Notes: Principal Life Income Fundings Trust 2007-129 5.8556 5.250% Principal® Life CoreNotes® Due 2017 2011 Survivor’s Option: Unless this Agreement has been declared due and payable prior to the Maturity Date of the related Notes by reason of any Event of Default, or has been previously redeemed or otherwise repaid, the Agreement Holder may request repayment of this Agreement upon the valid exercise of the Survivor’s Option in the Notes by the Representative (defined in the Notes) of the deceased Beneficial Owner of such Notes (a “Survivor’s Option”). Except as provided below, upon the tender to and acceptance by Principal Life of this Agreement (or portion thereof) securing the Notes as to which the Survivor’s Option has been exercised, Principal Life shall repay to the Agreement Holder the amount of the Fund equal to (i) 100% of the principal amount of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued and unpaid interest on such amount to the date of repayment, or (ii) in the case of Discount Notes, the Issue Price of the Notes as to which the Survivor’s Option has been validly exercised and accepted, plus accrued discount and any accrued and unpaid interest on such amount to the date of repayment. However, Principal Life shall not be obligated to repay in any calendar yearrepay: • more than the greater of $2,000,000 or 2% of the aggregate deposit for all funding agreement contracts securing all outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program as of the end of the most recent calendar year; Program and Secured Medium-Term Notes Retail Program CoreNotessm program as of the end of the most recent calendar year; • more than $250,000 in aggregate deposit of funding agreement contracts securing outstanding notes issued under the Principal® Life CoreNotes® Program and Secured Medium-Term Notes Retail Program CoreNotesSM program as to which the Survivor’s Option has been exercised on behalf of any single beneficial owner in any calendar year; or • more than 2% of the Deposit under this Agreement which secures the related Notes, as of the later of the end of the most recent calendar year or the issuance date of such Series of Notesyear. Principal Life shall not make repayments pursuant to the Agreement Holder’s request for repayment upon exercise of the Survivor’s Option in amounts that are less than $1,000, and, in the event that the limitations described in the preceding sentence would result in the partial repayment of this Agreement, the principal amount of this Agreement remaining outstanding after repayment must be at least $1,000 (the minimum authorized denomination of this Agreement). A request for repayment by the Agreement Holder upon an otherwise valid election to exercise the Survivor’s Option may not be withdrawn. This Agreement (or portion thereof) accepted for repayment shall be repaid on the first Interest Payment Date for the related Series of Notes that occurs 20 or more calendar days after the date of such acceptance. In order to obtain repayment of this Agreement (or portion thereof) upon exercise of the Survivor’s Option, the Agreement Holder must provide to Principal Life (i) a written request for repayment signed by the Agreement Holder, and (ii) any additional information Principal Life requires to evidence satisfaction of any conditions to the repayment of this Agreement (or portion thereof). PRINCIPAL LIFE INSURANCE COMPANY By: /s/ Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Name: Mxxxxxx Cxxxxxxxxxx X. Xxxxxx Title: Associate Actuary Officer PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-129 56 By: U.S. Bank Trust National Association, not in its individual capacity, but solely in its capacity as trustee By: Bankers Trust Company, N.A., under Limited Power of Attorney, dated November 21March 2, 2007. By: /s/ Dxxxx Xxxxxxxx X. Xxxx Name: Dxxxx Xxxxxxxx X. Xxxx Title: Vice President