SUB-SUB-ADVISORY AGREEMENT FOR PRINCIPAL FUNDS, INC. --INTERNATIONAL FUND I
| SUB-SUB-ADVISORY AGREEMENT FOR | |
| PRINCIPAL FUNDS, INC. --INTERNATIONAL FUND I | |
| THIS SUB-SUB-ADVISORY AGREEMENT is made as of this 11th day of January, | |
| 2010, among ▇▇▇▇▇▇▇▇ INVESTMENT MANAGEMENT NORTH AMERICA INC., | |
| (“SIMNA”) a corporation organized under the laws of the State of Delaware with its principal | |
| place of business at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, and ▇▇▇▇▇▇▇▇ | |
| INVESTMENT MANAGEMENT NORTH AMERICA LIMITED (“SIMNA Limited”) a UK | |
| corporation with its principal office and place of business at ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇ | |
| ▇▇▇▇ ▇▇▇, and agreed and approved by PRINCIPAL MANAGEMENT CORPORATION | |
| (“PMC”) a corporation organized under the laws of the State of Iowa. | |
| W I T N E S S E T H | |
| WHEREAS, PMC has retained SIMNA as its sub-adviser to render investment advisory | |
| services to the International Fund I (the “Fund”), a series of Principal Funds, Inc., a Maryland | |
| Corporation (the “Corporation”) registered as an investment company under the Investment | |
| Company Act of 1940, as amended (the "1940 Act") pursuant to a Sub-Advisory Agreement | |
| dated as of the date hereof (the “Principal Advisory Agreement”); and | |
| WHEREAS, SIMNA desires to employ SIMNA Limited as its investment sub-adviser, | |
| and SIMNA Limited is willing to render investment sub-advisory services to SIMNA, subject to | |
| and in accordance with the terms and conditions of this Agreement. | |
| NOW THEREFORE, in consideration of the mutual promises and undertakings set forth | |
| in this Agreement, PMC, SIMNA and SIMNA Limited hereby agree as follows: | |
| 1. | Appointment of SIMNA Limited. SIMNA hereby employs SIMNA Limited as |
| investment sub-adviser for the assets of the Fund, and PMC hereby agrees to such appointment, | |
| on the terms and conditions set forth herein, and subject to the direction of SIMNA. SIMNA | |
| Limited accepts such employment and agrees to render the services herein set forth, for the | |
| compensation herein provided. | |
| 2. | Duties of SIMNA Limited. |
| (a) | SIMNA employs SIMNA Limited to act as its sub-advisor in managing the |
| investment and reinvestment of the assets of the Fund in accordance with the Principal Advisory | |
| Agreement; to continuously review, supervise, and administer an investment program for the | |
| Fund; to determine in its discretion the securities to be purchased or sold and the portion of such | |
| assets to be held uninvested; to provide the Corporation (either directly or through SIMNA) with | |
| all records concerning the activities of SIMNA Limited that the Corporation is required to | |
| maintain; and to render or assist SIMNA in rendering regular reports to the Corporation’s | |
| officers and the Board of Directors concerning the discharge of SIMNA Limited’s | |
| responsibilities hereunder. SIMNA Limited will discharge the foregoing responsibilities subject | |
| to the supervision and oversight of SIMNA, the Corporation’s officers and the Board of | |
| Directors and in compliance with the objective, policies, and limitations set forth in the Fund’s | |
| prospectus and Statement of Additional Information, any additional operating policies or | |
| procedures that the Fund communicates to SIMNA Limited in writing (either directly or through | |
#90947, 1 1/22/2010
