SECOND AMENDMENT OF THE
PRINCIPAL TAX-EXEMPT BOND FUND, INC.
INVESTMENT SERVICE AGREEMENT
Agreement executed as of the 10th day of December 2001 to amend the Investment
Service Agreement executed as of July 1, 1985 (and including any subsequent
amendments thereafter) by and between BLC Tax-Exempt Bond Fund, Inc. (now known
as Principal Tax-Exempt Bond Fund, Inc.) (hereinafter called "the Fund"), BLC
Equity Management Company (now known as Principal Management
Corporation)(hereinafter called "the Manager") and Bankers Life Company (now
known as Principal Life Insurance Company) hereinafter called "the Company").
WHEREAS, in the Investment Service Agreement, the Company agreed to make
available to the Manager such employees of the Company as the Manager might
reasonably need in the performance of its investment advisory services; and
WHEREAS, the Fund, the Manager and the Company now wish to amend the Investment
Service Agreement;
NOW, THEREFORE, in consideration of the terms and conditions set forth
hereinafter, the parties agree that effective January 1, 2002 Schedule A will
read as follows:
SCHEDULE A
For the services provided and the expenses incurred by Principal Life or its
subsidiaries pursuant to the Investment Service Agreement, the Manager, not the
Fund, shall pay Principal Life or its subsidiaries a fee, computed daily and
paid monthly, at an annual rate of 0.10% of the Fund's average daily net assets.
PRINCIPAL MANAGEMENT CORPORATION
By: /s/ Xxxxx X. Xxxxxx
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PRINCIPAL LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Beer
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PRINCIPAL TAX-EXEMPT BOND FUND, INC.
By: /s/ A. S. Filean
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