Document:

Form of Pledge Agreement

 Exhibit 4.7 
  

THE PMI GROUP, INC. 
  
 and 
  
 The
Bank of New York, as Collateral Agent, Custodial Agent and 
 Securities Intermediary 
  
 and 
  
 The Bank of New York, as Purchase Contract Agent 
  
 PLEDGE AGREEMENT 
  
 Dated as of [            ], 2003 

 TABLE OF CONTENTS 
  

	 	  	Page

	 ARTICLE 1
 DEFINITIONS
	  	 
		
	 Section 1.01.    Definitions
	  	2
		
	 ARTICLE 2
 PLEDGE
	  	 
		
	 Section 2.01.    Pledge
	  	6
	 Section 2.02.    Control
	  	6
	 Section 2.03.    Termination
	  	6
		
	 ARTICLE 3
 DISTRIBUTIONS ON PLEDGED COLLATERAL
	  	 
		
	 Section 3.01.    Income and Distributions
	  	7
	 Section 3.02.    Principal Payments Following Termination Event
	  	7
	 Section 3.03.    Principal Payments Prior to or on Purchase Contract Settlement Date
	  	7
	 Section 3.04.    Payments to Purchase Contract Agent
	  	8
	 Section 3.05.    Assets Not Properly Released
	  	8
		
	 ARTICLE 4
 CONTROL
	  	 
		
	 Section 4.01.    Establishment of Collateral Account
	  	8
	 Section 4.02.    Treatment as Financial Assets
	  	9
	 Section 4.03.    Sole Control by Collateral Agent
	  	9
	 Section 4.04.    Securities Intermediary’s Location
	  	9
	 Section 4.05.    No Other Claims
	  	10
	 Section 4.06.    Investment and Release
	  	10
	 Section 4.07.    Statements and Confirmations
	  	10
	 Section 4.08.    Tax Allocations
	  	10
	 Section 4.09.    No Other Agreements
	  	10
	 Section 4.10.    Powers Coupled with an Interest
	  	10
	 Section 4.11.    Waiver Of Lien; Waiver Of Set-off
	  	10

  

 i 

	 ARTICLE 5
 INITIAL DEPOSIT; CREATION OF TREASURY UNITS AND RECREATION OF
 CORPORATE UNITS
	  	 
		
	 Section 5.01.    Initial Deposit of Senior Notes
	  	11
	 Section 5.02.    Creation of Treasury Units.
	  	11
	 Section 5.03.    Recreation of Corporate Units.
	  	13
	 Section 5.04.    Termination Event.
	  	14
	 Section 5.05.    Cash Settlement.
	  	15
	 Section 5.06.    Early Settlement and Cash Merger Early Settlement
	  	17
	 Section 5.07.    Application of Proceeds in Settlement of Purchase Contracts.
	  	18
		
	 ARTICLE 6
 VOTING RIGHTS — PLEDGED SENIOR NOTES
	  	 
		
	 Section 6.01.    Voting Rights
	  	20
		
	 ARTICLE 7
 RIGHTS AND REMEDIES
	  	 
		
	 Section 7.01.    Rights and Remedies of the Collateral Agent.
	  	21
	 Section 7.02.    Special Event Redemption
	  	22
	 Section 7.03.    Successful Initial Remarketing
	  	22
	 Section 7.04.    Substitutions
	  	23
		
	 ARTICLE 8
 REPRESENTATIONS AND WARRANTIES; COVENANTS
	  	 
		
	 Section 8.01.    Representations and Warranties
	  	23
	 Section 8.02.    Covenants
	  	24
		
	 ARTICLE 9
 THE COLLATERAL AGENT, THE CUSTODIAL AGENT AND THE SECURITIES
 INTERMEDIARY
	  	 
		
	 Section 9.01.    Appointment, Powers and Immunities
	  	24
	 Section 9.02.    Instructions of the Company
	  	25
	 Section 9.03.    Reliance by Collateral Agent, Custodial Agent and Securities
Intermediary
	  	26
	 Section 9.04.    Certain Rights
	  	26
	 Section 9.05.    Merger, Conversion, Consolidation or Succession to Business
	  	27
	 Section 9.06.    Rights in Other Capacities
	  	27
	 Section 9.07.    Non-reliance on Collateral Agent, the Custodial Agent and Securities
Intermediary
	  	27
	 Section 9.08.    Compensation and Indemnity
	  	28

  

 ii 

	 Section 9.09.    Failure to Act
	  	28
	 Section 9.10.    Resignation of Collateral Agent, the Custodial Agent and Securities
Intermediary
	  	29
	 Section 9.11.    Right to Appoint Agent or Advisor
	  	31
	 Section 9.12.    Survival
	  	31
	 Section 9.13.    Exculpation
	  	31
		
	 ARTICLE 10
 AMENDMENT
	  	 
		
	 Section 10.01.    Amendment Without Consent of Holders
	  	31
	 Section 10.02.    Amendment with Consent of Holders
	  	32
	 Section 10.03.    Execution of Amendments
	  	33
	 Section 10.04.    Effect of Amendments
	  	33
	 Section 10.05.    Reference of Amendments
	  	33
		
	 ARTICLE 11
 MISCELLANEOUS
	  	 
		
	 Section 11.01.    No Waiver
	  	34
	 Section 11.02.    Governing Law; Submission to Jurisdiction
	  	34
	 Section 11.03.    Notices
	  	34
	 Section 11.04.    Successors and Assigns
	  	35
	 Section 11.05.    Counterparts
	  	35
	 Section 11.06.    Severability
	  	35
	 Section 11.07.    Expenses, Etc
	  	35
	 Section 11.08.    Security Interest Absolute
	  	36
	 Section 11.09.    Notice of Special Event, Special Event Redemption and Termination
Event
	  	36

  
 EXHIBITS 
  
 Exhibit A – Instruction from Purchase Contract Agent to Collateral Agent 
 (Creation of Treasury Units) 
  
 Exhibit B – Instruction from Collateral Agent to Securities Intermediary (Creation 
 of Treasury Units) 
  
 Exhibit C –
Instruction from Purchase Contract Agent to Collateral Agent 
 (Recreation of Corporate Units) 
  
 Exhibit D – Instruction from Collateral Agent to Securities Intermediary 
 (Recreation of Corporate Units) 
  
 Exhibit E – Notice of Cash Settlement from Collateral Agent to Purchase Contract 
 Agent 
  
 Exhibit F – Instruction to
Custodial Agent Regarding Remarketing 
  

 iii 

 Exhibit G – Instruction to Custodial Agent Regarding Withdrawal From 
 Remarketing 
  
  

 iv 

 PLEDGE AGREEMENT 
  
 PLEDGE AGREEMENT dated as of [            ], 2003 among THE PMI
GROUP, INC., a Delaware corporation (the “Company”), The Bank of New York, as collateral agent (in such capacity, together with its successors in such capacity, the “Collateral Agent”), as custodial agent (in such
capacity, together with its successors in such capacity, the “Custodial Agent”), and as securities intermediary (as defined in Section 8-102(a)(14) of the UCC) with respect to the Collateral Account (in such capacity, together with
its successors in such capacity, the “Securities Intermediary”), and The Bank of New York, as purchase contract agent and as attorney-in-fact of the Holders from time to time of the Units (in such capacity, together with its
successors in such capacity, the “Purchase Contract Agent”) under the Purchase Contract Agreement. 
  
 RECITALS 
  
 WHEREAS, the Company and the Purchase Contract Agent are parties to the Purchase Contract Agreement dated as of the date hereof (as modified and supplemented and in effect from time to time, the “Purchase Contract
Agreement”), pursuant to which [            ] Corporate Units will be issued. 
  
 WHEREAS, each Corporate Unit, at issuance, consists of a unit comprised of (a) a stock purchase contract (a “Purchase Contract”) pursuant
to which the Holder will purchase from the Company on the Purchase Contract Settlement Date, for an amount equal to $25 (the “Stated Amount”), a number of shares of the Company’s common stock, par value $0.01 per share,
together with the Rights evidenced by such common stock to the extent provided in the Rights Agreement (“Common Stock”), equal to the Settlement Rate and (b) either a Senior Note or an Applicable Ownership Interest in the Treasury
Portfolio. 
  
 WHEREAS, pursuant to the terms of the Purchase
Contract Agreement and the Purchase Contracts, the Holders of the Units have irrevocably authorized the Purchase Contract Agent, as attorney-in-fact of such Holders, among other things, to execute and deliver this Agreement on behalf of such Holders
and to grant the pledge provided herein of the Collateral to secure the Obligations. 
  
 NOW, THEREFORE, the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract Agent agree as follows: 

 ARTICLE 1 
 DEFINITIONS 
  
 Section 1.01.  Definitions.  For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: 
  
 (a)    the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision; 
  
 (b)    the following terms which are defined in the UCC shall have the meanings set forth therein: “certificated
security,” “control,” “financial asset,” “entitlement order,” “securities account” and “security entitlement”; 
  
 (c)    capitalized terms used herein and not defined
herein have the meanings assigned to them in the Purchase Contract Agreement; and 
  
 (d)    the following terms have the meanings given to them in this Section 1.01(d): 
  
 “Agreement” means this Pledge Agreement, as the same may be amended, modified or supplemented from time to time. 
  
 “Cash” means any coin or currency of the United States as at
the time shall be legal tender for payment of public and private debts. 
  
 “Collateral” means the collective reference to: 
  
 (i)    the Collateral Account and all investment property and other financial assets from time to time credited to the Collateral Account and all security entitlements with respect thereto,
including, without limitation, (A) the Senior Notes and security entitlements relating thereto that are a component of the Corporate Units from time to time, (B) the Applicable Ownership Interests (as specified in clause (i) of the definition of
such term) in the Treasury Portfolio that are a component of the Corporate Units from time to time, (C) any Treasury Securities and security entitlements relating thereto delivered from time to time upon creation of Treasury Units in accordance with
Section 5.02 hereof and (D) payments made by Holders pursuant to Section 5.05 hereof; 
  
 (ii)    all Proceeds of any of the foregoing (whether such Proceeds arise before or after the commencement of any
proceeding under any applicable bankruptcy, insolvency or other similar law, by or against the pledgor or with respect to the pledgor); and 
  

 2 

 (iii)    all powers and rights now owned or hereafter acquired under
or with respect to the Collateral. 
  
 “Collateral
Account” means the securities account of The Bank of New York, as Collateral Agent, maintained by the Securities Intermediary and designated “The Bank of New York, as Collateral Agent of The PMI Group, Inc., as pledgee of The Bank of
New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for the Holders”. 
  
 “Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor shall have become
such pursuant to the applicable provisions of the Purchase Contract Agreement, and thereafter “Company” shall mean such successor. 
  
 “Obligations” means, with respect to each Holder, all obligations and liabilities of such Holder under such Holder’s Purchase
Contract, the Purchase Contract Agreement and this Agreement or any other document made, delivered or given in connection herewith or therewith, in each case whether on account of principal, interest (including, without limitation, interest accruing
before and after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to such Holder, whether or not a claim for post-filing or post-petition interest is allowed in such
proceeding), fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements of counsel to the Company or the Collateral Agent or the Securities Intermediary that are required to be paid by the Holder
pursuant to the terms of any of the foregoing agreements). 
  
 “Permitted Investments” means any one of the following, in each case maturing on the Business Day following the date of acquisition: 
  

(1)    any evidence of indebtedness with an original maturity of 365 days or less issued, or directly and fully
guaranteed or insured, by the United States of America or any agency or instrumentality thereof 
  

 3 

 
(provided that the full faith and credit of the United States of America is pledged in support of the timely payment thereof or such indebtedness
constitutes a general obligation of it); 
  
 (2)    deposits, certificates of deposit or acceptances with an original maturity of 365 days or less of any institution which is a member of the Federal Reserve System having combined capital and surplus and undivided
profits of not less than $500 million at the time of deposit (and which may include the Collateral Agent); 
  
 (3)    investments with an original maturity of 365 days or less of any Person that are fully and unconditionally
guaranteed by a bank referred to in clause (2); 
  
 (4)    repurchase agreements and reverse repurchase agreements relating to marketable direct obligations issued or unconditionally guaranteed by the United States of America or issued by any agency thereof and backed as
to timely payment by the full faith and credit of the United States of America; 
  
 (5)    investments in commercial paper, other than commercial paper issued by the Company or its Affiliates, of any
corporation incorporated under the laws of the United States or any State thereof, which commercial paper has a rating at the time of purchase at least equal to “A-1” by Standard & Poor’s Ratings Services
(“S&P”) or at least equal to “P-1” by Moody’s Investors Service, Inc. (“Moody’s”); and 
  
 (6)    investments in money market funds (including, but not limited to, money market funds managed by the Collateral
Agent or an affiliate of the Collateral Agent) registered under the Investment Company Act of 1940, as amended, rated in the highest applicable rating category by S&P or Moody’s. 
  
 “Pledge” means the lien and security interest created by this Agreement. 
  
 “Pledged Applicable Ownership Interests” means the
Holder’s Applicable Ownership Interests (as specified in clause (i) of the definition thereof) in the Treasury Portfolio and security entitlements with respect thereto from time to time credited to the Collateral Account and not then released
from the Pledge. 
  

 4 

 “Pledged Senior Notes” means Senior Notes and security entitlements with respect thereto
from time to time credited to the Collateral Account and not then released from the Pledge. 
  
 “Pledged Securities” means the Pledged Senior Notes, the Pledged Applicable Ownership Interests and the Pledged Treasury Securities, collectively. 
  
 “Pledged Treasury Securities” means Treasury Securities and
security entitlements with respect thereto from time to time credited to the Collateral Account and not then released from the Pledge. 
  
 “Proceeds” has the meaning ascribed thereto in the UCC and includes, without limitation, all interest, dividends, cash, instruments,
securities, financial assets and other property received, receivable or otherwise distributed upon the sale (including, without limitation, the Remarketing), exchange, collection or disposition of any financial assets from time to time held in the
Collateral Account. 
  
 “Purchase Contract Agent”
has the meaning specified in the paragraph preceding the recitals of this Agreement. 
  
 “TRADES” means the Treasury/Reserve Automated Debt Entry System maintained by the Federal Reserve Bank of New York pursuant to the TRADES Regulations. 
  
 “TRADES Regulations” means the regulations of the United
States Department of the Treasury, published at 31 C.F.R. Part 357, as amended from time to time. Unless otherwise defined herein, all terms defined in the TRADES Regulations are used herein as therein defined. 
  
 “Transfer” means (i) in the case of certificated securities
in registered form, delivery as provided in ‘8-301(a) of the UCC, endorsed to the transferee or in blank by an effective endorsement, (ii) in the case of Treasury Securities, registration of the transferee as the owner of such Treasury
Securities on TRADES and (iii) in the case of security entitlements, including, without limitation, security entitlements with respect to Treasury Securities, a securities intermediary indicating by book entry that such security entitlement has been
credited to the transferee’s securities account. 
  
 “Treasury Securities” means zero-coupon U.S. treasury securities that mature on [            ] (CUSIP No.
[            ]). 
  

 5 

 “UCC” means the Uniform Commercial Code as in effect in the State of New York from time
to time. 
  
 “Value” means, with respect to any
item of Collateral on any date, as to (1) Cash, the face amount thereof, (2) Treasury Securities or Senior Notes, the aggregate principal amount thereof at maturity and (3) Applicable Ownership Interests (as specified in clause (i) of the definition
of such term), the appropriate percentage of the aggregate principal amount at maturity of the Treasury Portfolio. 
  
 ARTICLE 2 
 PLEDGE 
  
 Section 2.01.    Pledge.  Each Holder,
acting through the Purchase Contract Agent as such Holder’s attorney-in-fact, and the Purchase Contract Agent, acting solely as such attorney-in-fact, hereby pledges and grants to the Collateral Agent, as agent of and for the benefit of the
Company, a continuing first priority security interest in and to, and a lien upon and right of set-off against, all of such Person’s right, title and interest in and to the Collateral to secure the prompt and complete payment and performance
when due (whether at stated maturity, by acceleration or otherwise) of the Obligations. The Collateral Agent shall have all of the rights, remedies and recourses with respect to the Collateral afforded a secured party by the UCC, in addition to, and
not in limitation of, the other rights, remedies and recourses afforded to the Collateral Agent by this Agreement. 
  
 Section 2.02.    Control.  The Collateral Agent shall have control of the Collateral Account pursuant to the
provisions of Article 4 of this Agreement. 
  
 Section
2.03.    Termination.  As to each Holder, this Agreement and the Pledge created hereby shall terminate upon the satisfaction of such Holder’s Obligations. Upon such termination, the Collateral Agent shall,
except as otherwise provided herein, instruct the Securities Intermediary to Transfer such Holder’s portion of the Collateral to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby.

  

 6 

 ARTICLE 3 
 DISTRIBUTIONS ON PLEDGED COLLATERAL 
  
 Section 3.01.    Income and Distributions.  The Collateral Agent shall transfer all income and distributions received
by the Collateral Agent on account of the Pledged Senior Notes, the Pledged Applicable Ownership Interests or Permitted Investments from time to time held in the Collateral Account (ABA No.
[            ], A/C No. [            ], Re: The PMI Group, Inc.) to the Purchase Contract Agent for distribution to the
applicable Holders as provided in the Purchase Contracts or Purchase Contract Agreement. 
  
 Section 3.02.    Principal Payments Following Termination Event.  Following a Termination Event, the Collateral Agent shall transfer all principal payments it receives, if any, in
respect of (1) the Pledged Senior Notes, (2) the Pledged Applicable Ownership Interests and (3) the Pledged Treasury Securities, to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance
with their respective interests, free and clear of the Pledge created hereby. 
  
 Section 3.03.    Principal Payments Prior to or on Purchase Contract Settlement Date.  
  
 (a)    Subject to the provisions of Section 5.06, and except as provided in Section 3.03(b) below, if no Termination Event shall have
occurred, all principal payments received by the Securities Intermediary in respect of (1) the Pledged Senior Notes, (2) the Pledged Applicable Ownership Interests and (3) the Pledged Treasury Securities, shall be held and invested in Permitted
Investments until the Purchase Contract Settlement Date, and transferred to the Company on the Purchase Contract Settlement Date as provided in Section 5.07 hereof. Any balance remaining in the Collateral Account shall be released from the Pledge
and transferred to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with their respective interests, free and clear of the Pledge created thereby. The Company shall instruct the
Collateral Agent in writing as to the type of Permitted Investments in which any payments made under this Section 3.03(a) shall be invested. The Collateral Agent shall have no liability in respect of losses incurred as a result of the failure of the
Company to provide timely written investment direction. 
  

 7 

 (b)    All principal payments received by the Securities Intermediary in respect of
(1) the Pledged Senior Notes, (2) the Applicable Ownership Interests (as specified in clause (i) of the definition thereof) in the Treasury Portfolio and (3) the Treasury Securities or security entitlements thereto, that, in each case, have been
released from the Pledge pursuant hereto shall be transferred to the Purchase Contract Agent for the benefit of the applicable Holders for distribution to such Holders in accordance with their respective interests. 
  
 Section 3.04.    Payments to Purchase Contract
Agent.  The Securities Intermediary shall use commercially reasonable efforts to deliver payments to the Purchase Contract Agent hereunder to the account designated by the Purchase Contract Agent for such purpose not later than 12:00
p.m. (New York City time) on the Business Day such payment is received by the Securities Intermediary; provided, however, that if such payment is received on a day that is not a Business Day or after 11:00 a.m. (New York City time) on
a Business Day, then the Securities Intermediary shall use commercially reasonable efforts to deliver such payment to the Purchase Contract Agent no later than 10:30 a.m. (New York City time) on the next succeeding Business Day. 
  
 Section 3.05.    Assets Not Properly
Released.  If the Purchase Contract Agent or any Holder shall receive any principal payments on account of financial assets credited to the Collateral Account and not released therefrom in accordance with this Agreement, the Purchase
Contract Agent or such Holder shall hold the same as trustee of an express trust for the benefit of the Company and, upon receipt of an Officers’ Certificate of the Company so directing, promptly deliver the same to the Securities Intermediary
for credit to the Collateral Account or to the Company for application to the Obligations of the Holders, and the Purchase Contract Agent and Holders shall acquire no right, title or interest in any such payments of principal amounts so received.
The Purchase Contract Agent shall have no liability under this Section 3.05 unless and until it has been notified in writing that such payment was delivered to it erroneously and shall have no liability for any action taken, suffered or omitted to
be taken prior to its receipt of such notice. 
  
 ARTICLE 4

 CONTROL 
  
 Section 4.01.    Establishment of Collateral Account.  The Securities Intermediary hereby confirms that: 

 
 (a)    the Securities Intermediary has established the
Collateral Account; 
  
 (b)    the Collateral
Account is a securities account; 
  

 8 

 (c)    subject to the terms of this Agreement, the Securities Intermediary shall
identify in its records the Collateral Agent as the entitlement holder entitled to exercise the rights that comprise any financial asset credited to the Collateral Account; 
  
 (d)    all property delivered to the Securities Intermediary pursuant to this Agreement or the Purchase
Contract Agreement, including any Applicable Ownership Interests (as specified in clause (i) of such definition) in the Treasury Portfolio and any Permitted Investments, will be credited promptly to the Collateral Account; and 
  
 (e)    all securities or other property underlying any
financial assets credited to the Collateral Account shall be (i) registered in the name of the Purchase Contract Agent and endorsed to the Securities Intermediary or in blank, (ii) registered in the name of the Securities Intermediary or (iii)
credited to another securities account maintained in the name of the Securities Intermediary. In no case will any financial asset credited to the Collateral Account be registered in the name of the Purchase Contract Agent or any Holder or specially
endorsed to the Purchase Contract Agent or any Holder unless such financial asset has been further endorsed to the Securities Intermediary or in blank. 
  
 Section 4.02.    Treatment as Financial Assets.  Each item of property (whether investment property, financial asset,
security, instrument or cash) credited to the Collateral Account shall be treated as a financial asset. 
  
 Section 4.03.    Sole Control by Collateral Agent.  Except as provided in Section 6.01, at all times prior to the
termination of the Pledge, the Collateral Agent shall have sole control of the Collateral Account, and the Securities Intermediary shall take instructions and directions with respect to the Collateral Account solely from the Collateral Agent. If at
any time the Securities Intermediary shall receive an entitlement order issued by the Collateral Agent and relating to the Collateral Account, the Securities Intermediary shall comply with such entitlement order without further consent by the
Purchase Contract Agent or any Holder or any other Person. Except as otherwise permitted under this Agreement, until termination of the Pledge, the Securities Intermediary will not comply with any entitlement orders issued by the Purchase Contract
Agent or any Holder. 
  
 Section
4.04.    Securities Intermediary’s Location.  The Collateral Account, and the rights and obligations of the Securities   Intermediary, the Collateral Agent, the Purchase Contract Agent and the
Holders with respect thereto, shall be governed by the laws of the State of New York. Regardless of any provision in any other agreement, for purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction.

  

 9 

 Section 4.05.    No Other Claims.  Except for the claims and
interest of the Collateral Agent and of the Purchase Contract Agent and the Holders in the Collateral Account, the Securities Intermediary (without having conducted any investigation) does not know of any claim to, or interest in, the Collateral
Account or in any financial asset credited thereto. If any Person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Collateral Account or in
any financial asset carried therein, the Securities Intermediary will promptly notify the Collateral Agent and the Purchase Contract Agent. 
  
 Section 4.06.    Investment and Release.  All proceeds of financial assets from time to time deposited in the
Collateral Account shall be invested and reinvested as provided in this Agreement. At no time prior to termination of the Pledge with respect to any particular property shall such property be released from the Collateral Account except in accordance
with this Agreement or upon written instructions of the Collateral Agent. 
  
 Section 4.07.    Statements and Confirmations.  The Securities Intermediary will promptly send copies of all statements, confirmations and other correspondence concerning the
Collateral Account and any financial assets credited thereto simultaneously to each of the Purchase Contract Agent and the Collateral Agent at their addresses for notices under this Agreement. 
  
 Section 4.08.    Tax Allocations.  The
Purchase Contract Agent shall report all items of income, gain, expense and loss recognized in the Collateral Account, to the extent such reporting is required by law, to the Internal Revenue Service authorities in the manner required by law.
Neither the Securities Intermediary nor the Collateral Agent shall have any tax reporting duties hereunder. 
  
 Section 4.09.    No Other Agreements.  The Securities Intermediary has not entered into, and prior to the termination
of the Pledge will not enter into, any agreement with any other Person relating to the Collateral Account or any financial assets credited thereto, including, without limitation, any agreement to comply with entitlement orders of any Person other
than the Collateral Agent. 
  
 Section
4.10.    Powers Coupled with an Interest.  The rights and powers granted in this Article 4 to the Collateral Agent have been granted in order to perfect its security interests in the Collateral Account, are
powers coupled with an interest and will be affected neither by the bankruptcy of the Purchase Contract Agent or any Holder nor by the lapse of time. The obligations of the Securities Intermediary under this Article 4 shall continue in effect until
the termination of the Pledge with respect to any and all Collateral. 
  
 Section 4.11.    Waiver of Lien; Waiver of Set-off.  The Securities Intermediary waives any security interest, lien or right to make deductions or set- 
  
 - 
  

 10 

 
offs that it may now have or hereafter acquire in or with respect to the Collateral Account, any financial asset credited thereto or any security entitlement
in respect thereof. Neither the financial assets credited to the Collateral Account nor the security entitlements in respect thereof will be subject to deduction, set-off, banker’s lien or any other right in favor of any person other than the
Company. 
  
 ARTICLE 5 
 INITIAL DEPOSIT; CREATION OF TREASURY UNITS AND
RECREATION OF CORPORATE UNITS 
  
 Section 5.01.    Initial Deposit of Senior Notes.  
  
 (a)    Prior to or concurrently with the execution and delivery of this Agreement, the Purchase Contract Agent, on behalf of the
initial Holders of the Corporate Units, shall Transfer to the Securities Intermediary, for credit to the Collateral Account, the Senior Notes or security entitlements relating thereto, and, in the case of security entitlements, the Securities
Intermediary shall indicate by book-entry that a securities entitlement to such Senior Notes has been credited to the Collateral Account. 
  
 (b)    The Collateral Agent may, at any time or from time to time, in its sole discretion, cause any or all securities or other
property underlying any financial assets credited to the Collateral Account to be registered in the name of the Securities Intermediary, the Collateral Agent or their respective nominees; provided, however, that unless any Event of Default
(as defined in the Indenture) shall have occurred and be continuing, the Collateral Agent agrees not to cause any Senior Notes to be so re-registered. 
  
 Section 5.02.    Creation of Treasury Units.  
  
 (a)    Unless the Treasury Portfolio has replaced the Senior Notes as a component of the Corporate
Units, a Holder of Corporate Units shall have the right, at any time on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date, to create Treasury Units by substitution of
Treasury Securities or security entitlements with respect thereto for the Pledged Senior Notes comprising a part of all or a portion of such Holder’s Corporate Units, in integral multiples of 40 Corporate Units by: 
  
 (i)    transferring to the Purchase
Contract Agent, for credit to the Collateral Account, Treasury Securities or security entitlements with respect thereto having a Value equal to the aggregate principal amount of the Pledged Senior Notes to be released, accompanied by a notice,
substantially in the form of Exhibit C to the Purchase Contract Agreement, 
  

 11 

 
whereupon the Purchase Contract Agent shall deliver to the Collateral Agent a notice, substantially in the form of Exhibit A hereto, (A) stating that such
Holder has notified the Purchase Contract Agent that such Holder has Transferred Treasury Securities or security entitlements with respect thereto to the Collateral Agent for credit to the Collateral Account, (B) stating the Value of the Treasury
Securities or security entitlements with respect thereto Transferred by such Holder and (C) requesting that the Collateral Agent release from the Pledge the Pledged Senior Notes that are a component of such Corporate Units; and 
  
 (ii)    delivering the related Corporate
Units to the Purchase Contract Agent. 
  
 Upon receipt of such
notice and confirmation that Treasury Securities or security entitlements with respect thereto have been credited to the Collateral Account as described in such notice, the Collateral Agent shall instruct the Securities Intermediary by a notice,
substantially in the form of Exhibit B hereto, to release such Pledged Senior Notes from the Pledge by Transfer to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
  
 If the Treasury Portfolio has replaced the Senior Notes as a component of the
Corporate Units and subject to the conditions of the Purchase Contract Agreement, a Holder of Corporate Units may, at any time on or prior to the second Business Day immediately preceding the Purchase Contract Settlement Date, substitute Treasury
Securities for the Applicable Ownership Interests in the Treasury Portfolio with respect to such Corporate Units, but only in multiples of 40 Corporate Units. In such an event, the Holder shall transfer the required amount of Treasury Securities to
the Securities Intermediary, for credit to the Collateral Account, and the Purchase Contract Agent shall request the Collateral Agent to instruct the Securities Intermediary to release the Pledge of and transfer to the Holder the appropriate
Applicable Ownership Interests in the Treasury Portfolio in the manner set forth above. 
  
 (b)    Upon credit to the Collateral Account of Treasury Securities or security entitlements with respect thereto delivered by a Holder of Corporate Units and receipt of the related instruction
from the Collateral Agent, the Securities Intermediary shall release such Pledged Senior Notes or Applicable Ownership Interest in the Treasury Portfolio, as the case may be, and shall promptly Transfer the same to the Purchase Contract Agent for
distribution to such Holder, free and clear of the Pledge created hereby. 
  

 12 

 Section 5.03.  Recreation of Corporate Units.  
  
 (a)    Unless the Treasury Portfolio has replaced the
Senior Notes as a component of the Corporate Units, at any time on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Purchase Contract Settlement Date, a Holder of Treasury Units shall have the right to
recreate Corporate Units by substitution of Senior Notes or security entitlements with respect thereto for Pledged Treasury Securities in integral multiples of 40 Treasury Units by: 
  
 (i)    transferring to the Securities Intermediary, for credit to the Collateral
Account, Senior Notes or security entitlements with respect thereto having a principal amount equal to the Value of the Pledged Treasury Securities to be released, accompanied by a notice, substantially in the form of Exhibit C to the Purchase
Contract Agreement, whereupon the Purchase Contract Agent shall deliver to the Collateral Agent a notice, substantially in the form of Exhibit C hereto, stating that such Holder has Transferred the Senior Notes or security entitlements with respect
thereto to the Collateral Account for credit to the Collateral Account and requesting that the Collateral Agent release from the Pledge the Pledged Treasury Securities related to such Treasury Units; and 
  
 (ii)    delivering the related Treasury
Units to the Purchase Contract Agent. 
  
 Upon receipt of such
notice and confirmation that Senior Notes or security entitlements with respect thereto have been credited to the Collateral Account as described in such notice, the Collateral Agent shall instruct the Securities Intermediary by a notice
substantially in the form of Exhibit D hereto to release such Pledged Treasury Securities from the Pledge by Transfer to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
  
 If the Treasury Portfolio has replaced the Senior Notes as a component of the
Corporate Units, a Holder of Treasury Units may, at any time on or prior to the second Business Day immediately preceding the Purchase Contract Settlement Date, substitute the Applicable Ownership Interests in the Treasury Portfolio for the Pledged
Treasury Securities with respect to such Treasury Units, but only in multiples of 40 Treasury Units. In such an event, the Holder shall Transfer the required Applicable Ownership Interests in the Treasury Portfolio to the Securities Intermediary,
for credit to the Collateral Account, and the Purchase Contract Agent shall request the Collateral Agent to instruct the Securities Intermediary to release and Transfer to the Holder the Pledged Treasury Securities in the manner set forth above.

  

 13 

 (b)    Upon credit to the Collateral Account of Senior Notes or security entitlements
with respect thereto or Applicable Ownership Interests in the Treasury Portfolio delivered by a Holder of Treasury Units and receipt of the related instruction from the Collateral Agent, the Securities Intermediary shall release such Pledged
Treasury Securities and shall promptly Transfer the same to the Purchase Contract Agent for distribution to such Holder, free and clear of the Pledge created hereby. 
  
 Section 5.04.    Termination Event. 
  
 (a)    Upon receipt by the Collateral Agent of written notice from the Company or the Purchase Contract
Agent that a Termination Event has occurred, the Collateral Agent shall release all Collateral from the Pledge and shall promptly instruct the Securities Intermediary to Transfer: 
  
 (i)    any Pledged Senior Notes or security entitlements with respect thereto or Pledged
Applicable Ownership Interests; 
  
 (ii)    any Pledged Treasury Securities; and 
  
 (iii)    any payments by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 hereof, 
  
 to the Purchase Contract Agent for the benefit of the Holders for distribution to such Holders, in accordance with their respective
interests, free and clear of the Pledge created hereby; provided, however, if any Holder shall be entitled to receive less than $1,000 with respect to its interest in the Applicable Ownership Interests (as specified in clause (i) of
the definition of such term) in the Treasury Portfolio, the Purchase Contract Agent shall have the right (but not the obligation) to dispose of such interest for cash and deliver to such Holder cash in lieu of delivering the Applicable Ownership
Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio. 
  
 (b)    If such Termination Event shall result from the Company’s becoming a debtor under the Bankruptcy Code, and if the
Collateral Agent shall for any reason fail promptly to effectuate the release and Transfer of all Pledged Senior Notes, Pledged Applicable Ownership Interests, Pledged Treasury Securities and payments by Holders (or the Permitted Investments of such
payments) pursuant to Section 5.05 and Proceeds of any of the foregoing, as the case may be, as provided by this Section 5.04, the Purchase Contract Agent shall: 
  
 (i)    use its best efforts to obtain an opinion of a nationally recognized law firm to
the effect that, notwithstanding the Company’s being the debtor in such a bankruptcy case, the Collateral Agent will not be prohibited from releasing or Transferring the Collateral as provided in 

  

 14 

 
this Section 5.04 and shall deliver or cause to be delivered such opinion to the Collateral Agent within ten days after the occurrence of such Termination
Event, and if (A) the Purchase Contract Agent shall be unable to obtain such opinion within ten days after the occurrence of such Termination Event or (B) the Collateral Agent shall continue, after delivery of such opinion, to refuse to effectuate
the release and Transfer of all Pledged Senior Notes, Pledged Applicable Ownership Interests, Pledged Treasury Securities and the payments by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 hereof and Proceeds of any
of the foregoing, as the case may be, as provided in this Section 5.04, then the Purchase Contract Agent shall within fifteen days after the occurrence of such Termination Event commence an action or proceeding in the court having jurisdiction of
the Company’s case under the Bankruptcy Code seeking an order requiring the Collateral Agent to effectuate the release and transfer of all Pledged Senior Notes, Pledged Applicable Ownership Interests, Pledged Treasury Securities and the
payments by Holders (or the Permitted Investments of such payments) pursuant to Section 5.05 hereof and Proceeds of any of the foregoing, or as the case may be, as provided by this Section 5.04; or 
  
 (ii)    commence an action or proceeding
like that described in Section 5.04(b)(i) hereof within ten days after the occurrence of such Termination Event. 
  
 Section 5.05.    Cash Settlement.  
  
 (a)    Upon receipt by the Collateral Agent of (1) a notice from the Purchase Contract Agent promptly after the receipt by the
Purchase Contract Agent of a notice from a Holder of Corporate Units or Treasury Units that such Holder has elected, in accordance with the procedures specified in Section 5.02(b)(i) of the Purchase Contract Agreement, to effect a Cash Settlement
and (2) payment by such Holder by deposit in the Collateral Account on or prior to 5:00 p.m. (New York City time) on the fourth Business Day immediately preceding the Purchase Contract Settlement Date of the Purchase Price in lawful money of the
United States by certified or cashier’s check or wire transfer of immediately available funds payable to or upon the order of the Securities Intermediary, then the Collateral Agent shall: 
  
 (i)    instruct the Securities
Intermediary promptly to invest any such Cash in Permitted Investments; 
  
 (ii)    instruct the Securities Intermediary to release from the Pledge such Holder’s related Pledged Senior Notes, Pledged Applicable Ownership Interests or Pledged Treasury Securities, as
applicable, as to 

  

 15 

 
which such Holder has effected a Cash Settlement pursuant to this Section 5.05(a); and 
  
 (iii)    instruct the Securities Intermediary to Transfer all such Pledged Senior Notes,
Pledged Applicable Ownership Interests or the Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent for distribution to such Holder, in each case free and clear of the Pledge created hereby. 
  
 The Company shall instruct the Collateral Agent in writing as to the type of
Permitted Investments in which any such Cash shall be invested. In no event shall the Collateral Agent or Securities Intermediary be liable for the selection of Permitted Investments or for investment losses incurred thereon. The Collateral Agent
and Securities Intermediary shall have no liability in respect of losses incurred as a result of the failure of the Company to provide timely written investment direction. 
  
 Upon receipt of Proceeds upon the maturity of the Permitted Investments on the Purchase Contract Settlement Date, the
Collateral Agent shall (A) instruct the Securities Intermediary to pay the portion of such Proceeds and deliver any certified or cashier’s checks received, in an aggregate amount equal to the Purchase Price, to the Company on the Purchase
Contract Settlement Date, and (B) release any amounts in excess of the Purchase Price earned from such Permitted Investments to the Purchase Contract Agent for distribution to such Holder in accordance with the Purchase Contract Agreement.

  
 (b)    If a Holder of Corporate Units
(unless the Treasury Portfolio has replaced the Senior Notes as a component of such Corporate Units) (i) fails to notify the Purchase Contract Agent of its intention to make a Cash Settlement as provided in Section 5.02(b)(i) of the Purchase
Contract Agreement or (ii) does notify the Purchase Contract Agent of its intention to pay the Purchase Price in cash, but fails to make such payment as required by Section 5.02(b)(ii) of the Purchase Contract Agreement, such Holder shall be deemed
to have consented to the disposition of such Holder’s Pledged Senior Notes in accordance with Section 5.02(b)(iii) of the Purchase Contract Agreement. 
  
 (c)    As soon as practicable after 5:00 p.m. (New York City time) on the fourth Business Day immediately preceding the Purchase
Contract Settlement Date, the Collateral Agent shall deliver to the Purchase Contract Agent a notice, substantially in the form of Exhibit E hereto, stating (i) the amount of Cash that it 

  

 16 

 
has received with respect to the Cash Settlement of Corporate Units, (ii) the amount of Cash that it has received with respect to the Cash Settlement of
Treasury Units and (iii) the amount of Pledged Senior Notes to be remarketed in the Final Remarketing pursuant to Section 5.02(c) of the Purchase Contract Agreement. 
  
 (d)    If there has been a Failed Final Remarketing, as soon as practicable after 5:00 p.m. (New
York City time) on the Business Day immediately preceding the Purchase Contract Settlement Date, the Collateral Agent shall deliver to the Purchase Contract Agent a notice, stating (i) the amount of Cash that it has received with respect to the Cash
Settlement of Corporate Units, (ii) the amount of Cash that it has received with respect to the Cash Settlement of Treasury Units and (iii) the amount of Pledged Senior Notes with respect to which an automatic deemed exercise of the Put Right has
occurred pursuant to Section 5.02(c) of the Purchase Contract Agreement. 
  
 Section 5.06.    Early Settlement and Cash Merger Early Settlement.  Upon receipt by the Collateral Agent of a notice from the Purchase Contract Agent that a Holder of Units has
elected to effect either (i) Early Settlement of its obligations under the Purchase Contracts forming a part of such Units in accordance with the terms of the Purchase Contracts and Section 5.07 of the Purchase Contract Agreement or (ii) Cash Merger
Early Settlement of its obligations under the Purchase Contracts forming a part of such Units in accordance with the terms of the Purchase Contracts and Section 5.04(b)(ii) of the Purchase Contract Agreement (which notice shall set forth the number
of such Purchase Contracts as to which such Holder has elected to effect Early Settlement or Cash Merger Early Settlement), and that the Purchase Contract Agent has received from such Holder, and paid to the Company as confirmed in writing by the
Company, the related Purchase Price pursuant to the terms of the Purchase Contracts and the Purchase Contract Agreement and that all conditions to such Early Settlement or Cash Merger Early Settlement, as the case may be, have been satisfied, then
the Collateral Agent shall release from the Pledge, (1) Pledged Senior Notes or the Pledged Applicable Ownership Interests in the case of a Holder of Corporate Units or (2) Pledged Treasury Securities, in the case of a Holder of Treasury Units, in
each case with a Value equal to the product of (x) the Stated Amount times (y) the number of Purchase Contracts as to which such Holder has elected to effect Early Settlement or Cash Merger Early Settlement, and shall instruct the Securities
Intermediary to Transfer all such Pledged Applicable Ownership Interests or Pledged Senior Notes or Pledged Treasury Securities, as the case may be, to the Purchase Contract Agent for distribution to such Holder, in each case free and clear of the
Pledge created hereby. A holder of Treasury Units may settle early only in integral multiples of 40 Treasury Units, and a Holder of Corporate Units, if the Treasury Portfolio has replaced the Senior Notes as a component of such Corporate Units, may
settle early only in integral multiples of [            ] Corporate Units. 
  

 17 

 Section 5.07.    Application of Proceeds in Settlement of Purchase Contracts. 

  
 (a)    If a Holder of Corporate Units
(unless the Treasury Portfolio has replaced the Senior Notes as a component of such Corporate Units) has not elected to make an effective Cash Settlement by notifying the Purchase Contract Agent in the manner provided for in Section 5.02(b)(i) of
the Purchase Contract Agreement or does notify the Purchase Contract Agent as provided in paragraph 5.02(b)(i) of the Purchase Contract Agreement of its intention to pay the Purchase Price in cash, but fails to make such payment as required by
paragraph 5.02(b)(ii) of the Purchase Contract Agreement, such Holder shall be deemed to have elected to pay for the shares of Common Stock to be issued under such Purchase Contracts from the Proceeds of the Final Remarketing of the related Pledged
Senior Notes. In the event of a Successful Final Remarketing, the Collateral Agent shall instruct the Securities Intermediary to Transfer the related Pledged Senior Notes to the Remarketing Agent, upon confirmation of deposit by the Remarketing
Agent of the Proceeds of such Final Remarketing (less, to the extent permitted by the Remarketing Agreement, the Remarketing Fee) in the Collateral Account. The Collateral Agent shall instruct the Securities Intermediary to invest the Proceeds of
the Final Remarketing in Permitted Investments set forth in clause (6) of the definition of Permitted Investments. On the Purchase Contract Settlement Date, the Collateral Agent shall, in consultation with the Purchase Contract Agent, instruct the
Securities Intermediary to remit a portion of the Proceeds from such Final Remarketing equal to the aggregate principal amount of such Pledged Senior Notes to satisfy in full such Holder’s obligations to pay the Purchase Price to purchase the
shares of Common Stock under the related Purchase Contracts and to remit the balance of the Proceeds from the Final Remarketing, if any, to the Purchase Contract Agent for distribution to such Holder. 
  
 Upon a Failed Final Remarketing, each Holder of Corporate Units (unless the
Treasury Portfolio has replaced the Senior Notes represented by such Corporate Units) that has not elected to make an effective Cash Settlement by notifying the Purchase Contract Agent in the manner provided for in Section 5.02(e)(i) of the Purchase
Contract Agreement or does notify the Purchase Contract Agent as provided in paragraph 5.02(e)(i) of the Purchase Contract Agreement of its intention to pay the Purchase Price in cash, but fails to make such payment as required by paragraph
5.02(e)(ii) of the Purchase Contract Agreement, shall be deemed to have exercised such Holder’s Put Right with respect to the Senior Notes that are a component of Corporate Units. Upon exercise of the Put Right with respect to such Senior
Notes, the Company shall on the Purchase Contract Settlement Date cause the aggregate Put Price with respect to such Senior Notes to be deposited in the Collateral Account and the Collateral Agent shall cause the Securities Intermediary to remit the
Purchase Price for the shares of Common Stock to be issued under the related Purchase Contract from a portion of the Proceeds of the Put Right to the Company in full satisfaction of the Holder’s obligations under the related Purchase Contract;
provided that if the Company shall fail to pay the Put Price when due, the Company shall be deemed to have netted the Holders’ obligations to pay the aggregate Purchase Price under such Purchase Contracts against the Company’s
obligation to pay the Put Price in full satisfaction of the Holders’ obligations under the Purchase Contracts. Following such payment or netting of the Put Price, the Holders’ obligations to pay the Purchase Price under the Purchase
Contracts will be deemed to be satisfied in full, and the Collateral Agent shall cause the Securities Intermediary to release the Pledged Senior Notes from the Collateral Account and shall promptly deliver the Pledged Senior Notes to the Company.
Thereafter, the Collateral Agent shall promptly remit the remaining portion, if any, of the Put Price in excess of the aggregate Purchase Price under such Purchase Contracts to the Purchase Contract Agent for payment to the Holder of the Corporate
Units to which such Senior Notes relate. 
  

 18 

 (b)    A Holder of a Treasury Unit or a Corporate Unit (if the Treasury Portfolio has
replaced the Senior Notes as a component of such Corporate Unit) shall be deemed to have elected to pay for the shares of Common Stock to be issued under such Purchase Contracts from the Proceeds of the related Pledged Treasury Securities or Pledged
Applicable Ownership Interests, as the case may be. Promptly, after 11:00 a.m. (New York City time) on the Business Day immediately prior to the Purchase Contract Settlement Date, the Company shall instruct the Collateral Agent in writing as to the
type of Permitted Investments in which any Proceeds shall be invested. In no event shall the Collateral Agent be liable for the selection of Permitted Investments or for investment losses incurred thereon. The Collateral Agent shall have no
liability in respect of losses incurred as a result of the failure of the Company to provide timely written investment direction. Without receiving any instruction from any Holder, the Collateral Agent shall instruct the Securities Intermediary to
remit the Proceeds of the related Pledged Treasury Securities or Pledged Applicable Ownership Interests, as the case may be, to the Company in settlement of such Purchase Contracts on the Purchase Contract Settlement Date. In the event the sum of
the Proceeds from the related Pledged Treasury Securities or Pledged Applicable Ownership Interests, as the case may be, and the investment earnings from the investment in Permitted Investments exceeds the aggregate Purchase Price of the Purchase
Contracts being settled thereby, the Collateral Agent shall instruct the Securities Intermediary to transfer such excess, when received, to the Purchase Contract Agent for distribution to Holders. 
  
 (c)    On or prior to 5:00 p.m. (New York City time) on
the fifth Business Day immediately preceding the applicable Remarketing Date, but no earlier than the Payment Date immediately preceding such date, Holders of Separate Senior Notes may elect to have their Separate Senior Notes remarketed under the
Remarketing Agreement, by delivering their Separate Senior Notes along with a notice of such election, substantially in the form of Exhibit F hereto, to the Collateral Agent. The Collateral Agent, acting as Custodial Agent, shall hold Separate
Senior Notes in an account separate from the Collateral Account in which the Pledged Securities shall be held. Holders of Separate Senior Notes electing to have their Separate Senior Notes remarketed will also have the right to withdraw that
election by written notice to the Collateral Agent, substantially in the form of Exhibit G hereto, on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the applicable Remarketing Date, 

  

 19 

 
upon which notice the Custodial Agent shall return such Separate Senior Notes to such Holder. After such time, such election shall become an irrevocable
election to have such Separate Senior Notes remarketed in such Remarketing. 
  
 By 11:00 a.m. (New York City time) on the Business Day immediately preceding the applicable Remarketing Date, the Custodial Agent shall notify the Remarketing Agent of the aggregate principal amount of the Separate
Senior Notes to be remarketed and deliver to the Remarketing Agent for remarketing all Separate Senior Notes delivered to the Custodial Agent pursuant to this Section 5.07(c) and not validly withdrawn prior to such date. In the event of a Successful
Remarketing, after deducting the Remarketing Fee, the Remarketing Agent will remit to the Custodial Agent the remaining portion of the proceeds of such Remarketing for payment to the Holders of the remarketed Separate Senior Notes, in accordance
with their respective interests. In the event of a Failed Remarketing, the Remarketing Agent will promptly return such Separate Senior Notes to the Custodial Agent for distribution to the appropriate Holders. 
  
 ARTICLE 6 
 VOTING RIGHTS—PLEDGED SENIOR NOTES 
  
 Section 6.01.    Voting Rights.  Subject to the terms of Section 4.02 of the Purchase
Contract Agreement, the Purchase Contract Agent may exercise, or refrain from exercising, any and all voting and other consensual rights pertaining to the Pledged Senior Notes or any part thereof for any purpose not inconsistent with the terms of
this Agreement and in accordance with the terms of the Purchase Contract Agreement; provided, that the Purchase Contract Agent shall not exercise or shall not refrain from exercising such right, as the case may be, if, in the reasonable
judgment of the Purchase Contract Agent, such action would impair or otherwise have a material adverse effect on the value of all or any of the Pledged Senior Notes; and provided, further, that the Purchase Contract Agent shall give
the Company and the Collateral Agent at least five Business Days’ prior written notice of the manner in which it intends to exercise, or its reasons for refraining from exercising, any such right. Upon receipt of any notices and other
communications in respect of any Pledged Senior Notes, including notice of any meeting at which holders of the Senior Notes are entitled to vote or solicitation of consents, waivers or proxies of holders of the Senior Notes, the Collateral Agent
shall use reasonable efforts to send promptly to the Purchase Contract Agent such notice or communication, and as soon as reasonably practicable after receipt of a written request therefor from the Purchase Contract Agent, execute and deliver to the
Purchase Contract Agent such proxies and other instruments in respect of such Pledged Senior Notes (in form and substance satisfactory to the Collateral Agent) as are prepared by the Company and delivered to the Purchase Contract Agent with respect
to the Pledged Senior Notes. 
  

 20 

 ARTICLE 7 
 RIGHTS AND REMEDIES 
  
 Section 7.01.    Rights and Remedies of the Collateral Agent.  
  
 (a)    In addition to the rights and remedies specified in Section 5.07 hereof or otherwise available at
law or in equity, after an event of default (as specified in Section 7.01(b) below) hereunder, the Collateral Agent shall have all of the rights and remedies with respect to the Collateral of a secured party under the UCC (whether or not the UCC is
in effect in the jurisdiction where the rights and remedies are asserted) and the TRADES Regulations and such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction where any rights and
remedies hereunder may be asserted. Without limiting the generality of the foregoing, such remedies may include, to the extent permitted by applicable law, (1) retention of the Pledged Senior Notes, Pledged Treasury Securities or the applicable
Pledged Applicable Ownership Interests in full satisfaction of the Holders’ obligations under the Purchase Contracts and the Purchase Contract Agreement or (2) sale of the Pledged Senior Notes, Pledged Treasury Securities or the applicable
Pledged Applicable Ownership Interests in one or more public or private sales. 
  
 (b)    Without limiting any rights or powers otherwise granted by this Agreement to the Collateral Agent, in the event the Collateral Agent is unable to make payments to the Company on account of
the applicable Pledged Applicable Ownership Interests, or on account of principal payments of any Pledged Treasury Securities as provided in Article 3 hereof, in satisfaction of the Obligations of the Holder of the Units of which such applicable
Pledged Applicable Ownership Interests or such Pledged Treasury Securities, as applicable, are a part under the related Purchase Contracts, the inability to make such payments shall constitute an event of default hereunder and the Collateral Agent
shall have and may exercise, with reference to such Pledged Treasury Securities or Pledged Applicable Ownership Interests, as applicable, any and all of the rights and remedies available to a secured party under the UCC and the TRADES Regulations
after default by a debtor, and as otherwise granted herein or under any other law. 
  
 (c)    Without limiting any rights or powers otherwise granted by this Agreement to the Collateral Agent, the Collateral Agent is hereby irrevocably authorized to receive and collect all payments
of (i) the principal amount of the Pledged Senior Notes, (ii) the principal amount of the Pledged Treasury Securities and (iii) the principal amount of the Pledged Applicable Ownership Interests, subject, in each case, to the provisions of Article 3
hereof, and as otherwise granted herein. 
  

 21 

 (d)    The Purchase Contract Agent and each Holder of Units agrees that, from time to
time, upon the written request of the Collateral Agent or the Purchase Contract Agent, such Holder shall execute and deliver such further documents and do such other acts and things as the Collateral Agent may reasonably request in order to maintain
the Pledge, and the perfection and priority thereof, and to confirm the rights of the Collateral Agent hereunder. The Purchase Contract Agent shall have no liability to any Holder for executing any documents or taking any such acts requested by the
Collateral Agent hereunder, except for liability for its own grossly negligent acts, its own grossly negligent failure to act or its own willful misconduct. 
  
 Section 7.02.    Special Event Redemption.  Upon the occurrence of a Special Event Redemption while Senior Notes are
still credited to the Collateral Account, the Collateral Agent is hereby authorized to present the Pledged Senior Notes for payment as may be required by their respective terms and to direct the Indenture Trustee to remit the Redemption Price to the
Securities Intermediary for credit to the Collateral Account on or prior to 12:30 p.m., New York City time on such Special Event Redemption Date, by federal funds check or wire transfer of immediately available funds. Upon receipt of such funds, the
Pledged Senior Notes shall be released from the Collateral Account and promptly transferred to the Company. Upon the crediting of such funds to the Collateral Account, the Collateral Agent, at the written direction of the Company, shall instruct the
Securities Intermediary to (a) apply an amount of such funds equal to the Redemption Amount to purchase the Treasury Portfolio from the Quotation Agent, (b) credit to the Collateral Account the Applicable Ownership Interests (specified in clause (i)
of the definition of such term) in the Treasury Portfolio and (c) promptly remit the remaining portion of such funds, if any, to the Purchase Contract Agent for payment to the Holders of Corporate Units, in accordance with their respective
interests and the Purchase Contract Agreement. 
  
 Section
7.03.    Successful Initial Remarketing.  In the event of a Successful Initial Remarketing prior to the Final Remarketing Date, the Collateral Agent shall, at the direction of the Company, instruct the Securities
Intermediary to (i) Transfer the Pledged Senior Notes to the Remarketing Agent upon confirmation of deposit by the Remarketing Agent of the Proceeds of such Successful Initial Remarketing (after deducting any Remarketing Fee in accordance with the
Remarketing Agreement) in the Collateral Account, (ii) apply an amount equal to the Treasury Portfolio Purchase Price to purchase from the Quotation Agent the Treasury Portfolio, (iii) credit the Applicable Ownership Interests (specified in
clause (i) of the definition of such term) in the Treasury Portfolio to the Collateral Account, and (iv) promptly remit the remaining portion of such Proceeds to the Purchase Contract Agent for payment to the Holders of Corporate Units, in
accordance with their respective interests and the Purchase Contract Agreement. With respect to Separate Senior Notes, any Proceeds of such Initial Remarketing (after deducting any Remarketing Fee in accordance with the Remarketing Agreement)
attributable to the Separate Senior Notes will be remitted to the Custodial Agent for payment to the holders of Separate Senior Notes. The Pledged Applicable Ownership Interests thus credited to the Collateral Account will secure the 

  

 22 

 
obligation of all Holders of Corporate Units to purchase Common Stock of the Company under the Purchase Contracts constituting a part of such Corporate
Units, in substitution for the Pledged Senior Notes, which shall be released from the Collateral Account. In the event of a Failed Final Remarketing, the Pledged Senior Notes shall remain credited to the Collateral Account and Section 5.07 shall
apply. 
  
 Section
7.04.    Substitutions.  Whenever a Holder has the right to substitute Treasury Securities, Senior Notes or security entitlements for any of them or the appropriate Applicable Ownership Interest (as defined in
clause (i) of the definition of such term) in the Treasury Portfolio, as the case may be, for financial assets held in the Collateral Account, such substitution shall not constitute a novation of the security interest created hereby. 
  
 ARTICLE 8 
 REPRESENTATIONS AND WARRANTIES; COVENANTS 
  
 Section 8.01.    Representations and Warranties.  Each Holder from time to time, acting through the Purchase Contract
Agent as attorney-in-fact (it being understood that the Purchase Contract Agent shall not be liable for any representation or warranty made by or on behalf of a Holder), hereby represents and warrants to the Collateral Agent (with respect to such
Holder’s interest in the Collateral), which representations and warranties shall be deemed repeated on each day a Holder Transfers Collateral, that: 
  
 (a)    such Holder has the power to grant a security interest in and lien on the Collateral; 
  
 (b)    such Holder is the sole beneficial owner of the
Collateral and, in the case of Collateral delivered in physical form, is the sole holder of such Collateral and is the sole beneficial owner of, or has the right to Transfer, the Collateral it Transfers to the Collateral Agent for credit to the
Collateral Account, free and clear of any security interest, lien, encumbrance, call, liability to pay money or other restriction other than the security interest and lien granted under Article 2 hereof; 
  
 (c)    upon the Transfer of the Collateral to the
Collateral Agent for credit to the Collateral Account, the Collateral Agent, for the benefit of the Company, will have a valid and perfected first priority security interest therein (assuming that any central clearing operation or any securities
intermediary or other entity not within the control of the Holder involved in the Transfer of the Collateral, including the Collateral Agent and the Securities Intermediary, gives the notices and takes the action required of it hereunder and under
applicable law for 

  

 23 

 
perfection of that interest and assuming the establishment and exercise of control pursuant to Article 4 hereof); and 
  
 (d)    the execution and performance by the Holder of its
obligations under this Agreement will not result in the creation of any security interest, lien or other encumbrance on the Collateral other than the security interest and lien granted under Article 2 hereof or violate any provision of any existing
law or regulation applicable to it or of any mortgage, charge, pledge, indenture, contract or undertaking to which it is a party or which is binding on it or any of its assets. 
  
 Section 8.02.    Covenants.  The Holders from time to time, acting through the Purchase
Contract Agent as their attorney-in-fact (it being understood that the Purchase Contract Agent shall not be liable for any covenant made by or on behalf of a Holder), hereby covenant to the Collateral Agent that for so long as the Collateral remains
subject to the Pledge: 
  
 (a)    neither the
Purchase Contract Agent nor such Holders will create or purport to create or allow to subsist any mortgage, charge, lien, pledge or any other security interest whatsoever over the Collateral or any part of it other than pursuant to this Agreement;
and 
  
 (b)    neither the Purchase Contract
Agent nor such Holders will sell or otherwise dispose (or attempt to dispose) of the Collateral or any part of it except for the beneficial interest therein, subject to the Pledge hereunder, transferred in connection with the Transfer of the Units.

  
 ARTICLE 9 
 THE COLLATERAL AGENT, THE CUSTODIAL AGENT AND
THE SECURITIES INTERMEDIARY 
  
 It is hereby agreed as follows: 
  
 Section 9.01.    Appointment, Powers and Immunities.  The Collateral Agent, the Custodial Agent or Securities Intermediary shall act as agent for the Company hereunder with such powers as are
specifically vested in the Collateral Agent, the Custodial Agent or Securities Intermediary, as the case may be, by the terms of this Agreement. The Collateral Agent, the Custodial Agent and Securities Intermediary shall: 
  
 (a)    have no duties or responsibilities except those
expressly set forth in this Agreement and no implied covenants or obligations shall be inferred from this Agreement against the Collateral Agent, the Custodial Agent and Securities Intermediary, nor shall the Collateral Agent, the Custodial Agent
and Securities 

  

 24 

 
Intermediary be bound by the provisions of any agreement by any party hereto beyond the specific terms hereof; 
  
 (b)    not be responsible for any recitals contained in
this Agreement, or in any certificate or other document referred to or provided for in, or received by it under, this Agreement, the Units or the Purchase Contract Agreement, or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement (other than as against the Collateral Agent, the Custodial Agent or Securities Intermediary, as the case may be), the Units, any Collateral or the Purchase Contract Agreement or any other document referred to or
provided for herein or therein or for any failure by the Company or any other Person (except the Collateral Agent, the Custodial Agent or Securities Intermediary, as the case may be) to perform any of its obligations hereunder or thereunder or for
the perfection, priority or, except as expressly required hereby, maintenance of any security interest created hereunder; 
  
 (c)    not be required to initiate or conduct any litigation or collection proceedings hereunder (except pursuant to directions
furnished under Section 9.02 hereof, subject to Section 9.08 hereof); 
  
 (d)    not be responsible for any action taken or omitted to be taken by it hereunder or under any other document or instrument referred to or provided for herein or in connection herewith or therewith, except for its
own gross negligence or willful misconduct; and 
  
 (e)    not be required to advise any party as to selling or retaining, or taking or refraining from taking any action with respect to, any securities or other property deposited hereunder. 
  
 Subject to the foregoing, during the term of this Agreement, the Collateral
Agent, the Custodial Agent and the Securities Intermediary shall take all reasonable action in connection with the safekeeping and preservation of the Collateral hereunder as determined by industry standards. 
  
 No provision of this Agreement shall require the Collateral Agent, Custodial
Agent or Securities Intermediary to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. In no event shall the Collateral Agent, Custodial Agent or Securities Intermediary be
liable for any amount in excess of the Value of the Collateral. 
  
 Section 9.02.    Instructions of the Company.  The Company shall have the right, by one or more written instruments executed and delivered to the Collateral Agent, to direct the time, method and place of
conducting any proceeding for the realization of any right or remedy available to the Collateral Agent, or of exercising any power conferred on the Collateral Agent, or to direct the taking or 

  

 25 

 
refraining from taking of any action authorized by this Agreement; provided, however, that (i) such direction shall not conflict with the
provisions of any law or of this Agreement or involve the Collateral Agent in personal liability and (ii) the Collateral Agent shall be indemnified to its satisfaction as provided herein. Nothing contained in this Section 9.02 shall impair the right
of the Collateral Agent in its discretion to take any action or omit to take any action which it deems proper and which is not inconsistent with such direction. None of the Collateral Agent, the Custodial Agent or the Securities Intermediary has any
obligation or responsibility to file UCC financing statements. 
  
 Section 9.03.    Reliance by Collateral Agent, Custodial Agent and Securities Intermediary.  Each of the Collateral Agent, the Custodial Agent and the Securities Intermediary shall be entitled, in the
absence of bad faith, to rely conclusively upon any certification, order, judgment, opinion, notice or other written communication (including, without limitation, any thereof by e-mail or similar electronic means, telecopy, telex or facsimile)
believed by it to be genuine and correct and to have been signed or sent by or on behalf of the proper Person or Persons (without being required to determine the correctness of any fact stated therein) and consult with and conclusively rely upon
advice, opinions and statements of legal counsel and other experts selected by the Collateral Agent, the Custodial Agent or the Securities Intermediary, as the case may be. As to any matters not expressly provided for by this Agreement, the
Collateral Agent, the Custodial Agent and the Securities Intermediary shall in all cases be fully protected in acting, or in refraining from acting, hereunder in accordance with instructions given by the Company in accordance with this Agreement.

  
 Section 9.04.    Certain
Rights.  (a) Whenever in the administration of the provisions of this Agreement the Collateral Agent, the Custodial Agent or the Securities Intermediary shall deem it necessary or desirable that a matter be proved or established prior
to taking or suffering any action to be taken hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of gross negligence or bad faith on the part of the Collateral Agent, the Custodial
Agent or the Securities Intermediary, be deemed to be conclusively proved and established by a certificate signed by one of the Company’s officers, and delivered to the Collateral Agent, the Custodial Agent or the Securities Intermediary and
such certificate, in the absence of gross negligence or bad faith on the part of the Collateral Agent, the Custodial Agent or the Securities Intermediary, shall be full warrant to the Collateral Agent, the Custodial Agent or the Securities
Intermediary for any action taken, suffered or omitted by it under the provisions of this Agreement upon the faith thereof. 
  
 (b)    The Collateral Agent, the Custodial Agent or the Securities Intermediary shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or other paper or document. 
  

 26 

 Section 9.05.    Merger, Conversion, Consolidation or Succession to
Business.  Any corporation into which the Collateral Agent, the Custodial Agent or the Securities Intermediary may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Collateral Agent, the Custodial Agent or the Securities Intermediary shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Collateral Agent, the Custodial Agent
or the Securities Intermediary shall be the successor of the Collateral Agent, the Custodial Agent or the Securities Intermediary hereunder without the execution or filing of any paper with any party hereto or any further act on the part of any of
the parties hereto except where an instrument of transfer or assignment is required by law to effect such succession, anything herein to the contrary notwithstanding. 
  
 Section 9.06.    Rights in Other Capacities.  The Collateral Agent, the Custodial Agent
and the Securities Intermediary and their Affiliates may (without having to account therefor to the Company) accept deposits from, lend money to, make their investments in and generally engage in any kind of banking, trust or other business with the
Purchase Contract Agent, any other Person interested herein and any Holder of Units (and any of their respective subsidiaries or affiliates) as if it were not acting as the Collateral Agent, the Custodial Agent or the Securities Intermediary, as the
case may be, and the Collateral Agent, the Custodial Agent, the Securities Intermediary and their affiliates may accept fees and other consideration from the Purchase Contract Agent and any Holder of Units without having to account for the same to
the Company; provided that each of the Securities Intermediary, the Custodial Agent and the Collateral Agent covenants and agrees with the Company that it shall not accept, receive or permit there to be created in favor of itself and shall
take no affirmative action to permit there to be created in favor of any other Person, any security interest, lien or other encumbrance of any kind in or upon the Collateral other than the lien created by the Pledge. 
  
 Section 9.07.    Non-reliance on Collateral Agent, the
Custodial Agent and Securities Intermediary.  None of the Securities Intermediary, the Custodial Agent or the Collateral Agent shall be required to keep itself informed as to the performance or observance by the Purchase Contract Agent
or any Holder of Units of this Agreement, the Purchase Contract Agreement, the Units or any other document referred to or provided for herein or therein or to inspect the properties or books of the Purchase Contract Agent or any Holder of Units.
None of the Collateral Agent, the Custodial Agent or the Securities Intermediary shall have any duty or responsibility to provide the Company with any credit or other information concerning the affairs, financial condition or business of the
Purchase Contract Agent or any Holder of Units (or any of their respective affiliates) that may come into the possession of the Collateral Agent, the Custodial Agent or the Securities Intermediary or any of their respective affiliates. 

 

 27 

 Section 9.08.    Compensation and Indemnity.  The Company agrees to:

  
 (a)    pay the Collateral Agent, the
Custodial Agent and the Securities Intermediary from time to time such compensation as shall be agreed in writing between the Company and the Collateral Agent, the Custodial Agent or the Securities Intermediary, as the case may be, for all services
rendered by them hereunder; 
  
 (b)    indemnify and hold harmless the Collateral Agent, the Custodial Agent, the Securities Intermediary and each of their respective directors, officers, agents and employees (collectively, the
“Indemnitees”), from and against any and all claims, liabilities, losses, damages, fines, penalties and expenses (including reasonable fees and expenses of counsel) and taxes (other than those based upon, determined by or measured
by the income of the Collateral Agent, the Custodial Agent and Securities Intermediary) (collectively, “Losses” and individually, a “Loss”) that may be imposed on, incurred by, or asserted against, the Indemnitees
or any of them for following any instructions or other directions upon which either the Collateral Agent, the Custodial Agent or the Securities Intermediary is entitled to rely pursuant to the terms of this Agreement, provided that the
Collateral Agent, the Custodial Agent or the Securities Intermediary has not acted with gross negligence or engaged in willful misconduct or bad faith with respect to the specific Loss against which indemnification is sought; and 
  
 (c)    in addition to and not in limitation of paragraph
(b) immediately above, indemnify and hold the Indemnitees and each of them harmless from and against any and all Losses that may be imposed on, incurred by or asserted against, the Indemnitees or any of them in connection with or arising out of the
Collateral Agent’s, the Custodial Agent’s or the Securities Intermediary’s acceptance or performance of its powers and duties under this Agreement, provided that the Collateral Agent, the Custodial Agent or the Securities
Intermediary has not acted with gross negligence or engaged in willful misconduct or bad faith with respect to the specific Loss against which indemnification is sought. 
  
 The provisions of this Section and Section 11.07 shall survive the resignation or removal of the Collateral Agent, Custodial
Agent or Securities Intermediary and the termination of this Agreement. 
  
 Section 9.09.    Failure to Act.  In the event of any ambiguity in the provisions of this Agreement or any dispute between or conflicting claims by or among the parties hereto or any other Person with
respect to any funds or property deposited hereunder, then at its sole option, each of the Collateral Agent, the Custodial Agent and the Securities Intermediary shall be entitled, after prompt notice to the Company and the Purchase Contract Agent,
to refuse to comply with any and all claims, demands or instructions with respect to such property or funds so long as such dispute or conflict shall continue, and the Collateral Agent, the Custodial Agent and the Securities Intermediary shall not
be or become liable in 

  

 28 

 
any way to any of the parties hereto for its failure or refusal to comply with such conflicting claims, demands or instructions. The Collateral Agent, the
Custodial Agent and the Securities Intermediary shall be entitled to refuse to act until either: 
  
 (a)    such conflicting or adverse claims or demands shall have been finally determined by a court of competent jurisdiction or
settled by agreement between the conflicting parties as evidenced in a writing satisfactory to the Collateral Agent, the Custodial Agent or the Securities Intermediary; or 
  
 (b)    the Collateral Agent, the Custodial Agent or the Securities Intermediary shall have received
security or an indemnity satisfactory to it sufficient to save it harmless from and against any and all loss, liability or reasonable out-of-pocket expense which it may incur by reason of its acting. 
  
 The Collateral Agent, the Custodial Agent and the Securities Intermediary may
in addition elect to commence an interpleader action or seek other judicial relief or orders as the Collateral Agent, the Custodial Agent or the Securities Intermediary may deem necessary. Notwithstanding anything contained herein to the contrary,
none of the Collateral Agent, the Custodial Agent or the Securities Intermediary shall be required to take any action that is in its opinion contrary to law or to the terms of this Agreement, or which would in its opinion subject it or any of its
officers, employees or directors to liability. 
  
 Section
9.10.    Resignation of Collateral Agent, the Custodial Agent and Securities Intermediary.  
  
 (a)    Subject to the appointment and acceptance of a successor Collateral Agent, Custodial Agent or Securities Intermediary as
provided below: 
  
 (i)    the
Collateral Agent, the Custodial Agent and the Securities Intermediary may resign at any time by giving notice thereof to the Company and the Purchase Contract Agent as attorney-in-fact for the Holders of Units; 
  
 (ii)    the Collateral Agent, the
Custodial Agent and the Securities Intermediary may be removed at any time by the Company; and 
  
 (iii)    if the Collateral Agent, the Custodial Agent or the Securities Intermediary fails to perform any of its
material obligations hereunder in any material respect for a period of not less than 20 days after receiving written notice of such failure by the Purchase Contract Agent and such failure shall be continuing, the Collateral Agent, the Custodial
Agent and the Securities Intermediary may be removed by the Purchase Contract Agent, acting at the direction of the Holders of Units. 
  

 29 

 The Purchase Contract Agent shall promptly notify the Company of any removal of the Collateral Agent, the
Custodial Agent or the Securities Intermediary pursuant to clause (iii) of this Section 9.10. Upon any such resignation or removal, the Company shall have the right to appoint a successor Collateral Agent, Custodial Agent or Securities Intermediary,
as the case may be, which shall not be an Affiliate of the Purchase Contract Agent. If no successor Collateral Agent, Custodial Agent or Securities Intermediary shall have been so appointed and shall have accepted such appointment within 30 days
after the retiring Collateral Agent’s, Custodial Agent’s or Securities Intermediary’s giving of notice of resignation or the Company’s or the Purchase Contract Agent’s giving notice of such removal, then the retiring or
removed Collateral Agent, Custodial Agent or Securities Intermediary may petition any court of competent jurisdiction, at the expense of the Company, for the appointment of a successor Collateral Agent, Custodial Agent or Securities Intermediary.
The Collateral Agent, the Custodial Agent and the Securities Intermediary shall each be a bank or a national banking association which has an office (or an agency office) in New York City with a combined capital and surplus of at least $50,000,000.
Upon the acceptance of any appointment as Collateral Agent, Custodial Agent or Securities Intermediary hereunder by a successor Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, such successor Collateral Agent,
Custodial Agent or Securities Intermediary, as the case may be, shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the case
may be, and the retiring Collateral Agent, Custodial Agent or Securities Intermediary, as the case may be, shall take all appropriate action, subject to payment of any amounts then due and payable to it hereunder, to transfer any money and property
held by it hereunder (including the Collateral) to such successor. The retiring Collateral Agent, Custodial Agent or Securities Intermediary shall, upon such succession, be discharged from its duties and obligations as Collateral Agent, Custodial
Agent or Securities Intermediary hereunder. After any retiring Collateral Agent’s, Custodial Agent’s or Securities Intermediary’s resignation hereunder as Collateral Agent, Custodial Agent or Securities Intermediary, the provisions of
this Article 9 shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Collateral Agent, Custodial Agent or Securities Intermediary. Any resignation or removal of the
Collateral Agent, Custodial Agent or Securities Intermediary hereunder, at a time when such Person is acting as the Collateral Agent, Custodial Agent or Securities Intermediary, shall be deemed for all purposes of this Agreement as the simultaneous
resignation or removal of the Collateral Agent, Securities Intermediary or Custodial Agent, as the case may be. 
  
 (b)    Because The Bank of New York is serving as the Collateral Agent hereunder and the Purchase Contract Agent under the Purchase
Contract Agreement, if an event of default occurs hereunder or under the Purchase 
  

 30 

 Contract Agreement, The Bank of New York will resign as the Collateral Agent, but continue to act as the
Purchase Contract Agent. A successor Collateral Agent will be appointed in accordance with the terms hereof. If any such event of default is cured or waived prior to the appointment of a successors Collateral Agent, the duty of The Bank of New York
to resign in respect of such event of default shall cease. 
  
 Section 9.11.    Right to Appoint Agent or Advisor.  The Collateral Agent shall have the right to appoint agents or advisors in connection with any of its duties hereunder, and the Collateral Agent shall
not be liable for any action taken or omitted by, or in reliance upon the advice of, such agents or advisors selected in good faith. 
  
 Section 9.12.    Survival.  The provisions of this Article 9 shall survive termination of this Agreement and the
resignation or removal of the Collateral Agent, the Custodial Agent or the Securities Intermediary. 
  
 Section 9.13.    Exculpation.  Anything contained in this Agreement to the contrary notwithstanding, in no event
shall the Collateral Agent, the Custodial Agent or the Securities Intermediary or their officers, directors, employees or agents be liable under this Agreement to any third party for indirect, special, punitive, or consequential loss or damage of
any kind whatsoever, including, but not limited to, lost profits, whether or not the likelihood of such loss or damage was known to the Collateral Agent, the Custodial Agent or the Securities Intermediary, or any of them and regardless of the form
of action. 
  
 ARTICLE 10 
 AMENDMENT 
  
 Section 10.01.    Amendment Without Consent of Holders.  Without the consent of any Holders, the Company, when duly
authorized, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract Agent, at any time and from time to time, may amend this Agreement, in form satisfactory to the Company, the Collateral Agent, the Custodial
Agent, the Securities Intermediary and the Purchase Contract Agent, to: 
  
 (a)    evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company; 
  
 (b)    evidence and provide for the acceptance of appointment hereunder by a successor Collateral Agent,
Custodial Agent, Securities Intermediary or Purchase Contract Agent; 
  

 31 

 (c)    add to the covenants of the Company for the benefit of the Holders, or
surrender any right or power herein conferred upon the Company, provided that such covenants or such surrender do not adversely affect the validity, perfection or priority of the Pledge created hereunder; 
  
 (d)    cure any ambiguity (or formal defect), correct or
supplement any provisions herein which may be inconsistent with any other such provisions herein; or 
  
 (e)    make any other provisions with respect to such matters or questions arising under this Agreement, provided that such
action shall not adversely affect the interests of the Holders in any material respect. 
  
 Section 10.02.    Amendment with Consent of Holders.  With the consent of the Holders of not less than a majority of the Purchase Contracts at the time outstanding, including
without limitation the consent of the Holders obtained in connection with a tender or an exchange offer, by Act of such Holders delivered to the Company, the Purchase Contract Agent, the Custodial Agent, the Securities Intermediary and the
Collateral Agent, as the case may be, the Company, when duly authorized by a Board Resolution, the Purchase Contract Agent, the Collateral Agent, the Securities Intermediary and the Collateral Agent may amend this Agreement for the purpose of
modifying in any manner the provisions of this Agreement or the rights of the Holders in respect of the Units; provided, however, that no such supplemental agreement shall, without the unanimous consent of the Holders of each Outstanding Unit
adversely affected thereby in any material respect: 
  
 (a)    change the amount or type of Collateral underlying a Unit (except for the rights of holders of Corporate Units to substitute the Treasury Securities for the Pledged Senior Notes or the Pledged Applicable Ownership
Interests, as the case may be, or the rights of Holders of Treasury Units to substitute Senior Notes or the Applicable Ownership Interests (as specified in clause (i) of the definition of such term) in the Treasury Portfolio, as applicable, for the
Pledged Treasury Securities), unless such change is not adverse to the Holders, impair the right of the Holder of any Unit to receive distributions on the underlying Collateral or otherwise adversely affect the Holder’s rights in or to such
Collateral; or 
  
 (b)    otherwise effect any
action that would require the consent of the Holder of each Outstanding Unit affected thereby pursuant to the Purchase Contract Agreement if such action were effected by a modification or amendment of the provisions of the Purchase Contract
Agreement; or 
  

 32 

 (c)    reduce the percentage of Purchase Contracts the consent of whose Holders is
required for the modification or amendment of the provisions of this Agreement; 
  
 provided that if any amendment or proposal referred to above would adversely affect only the Corporate Units or only the Treasury Units, then only the affected class of Holders as of the record date for the Holders entitled to vote
thereon will be entitled to vote on such amendment or proposal, and such amendment or proposal shall not be effective except with the consent of Holders of not less than a majority of such class; provided, further, that the unanimous consent
of the Holders of each outstanding Purchase Contract of such class affected thereby shall be required to approve any amendment or proposal specified in clauses (a) through (c) above. 
  
 It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed
amendment, but it shall be sufficient if such Act shall approve the substance thereof. 
  
 Section 10.03.    Execution of Amendments.  In executing any amendment permitted by this Article, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the
Purchase Contract Agent shall be entitled to receive and (subject to Section 7.01 of the Purchase Contract Agreement with respect to the Purchase Contract Agent) shall be fully authorized and protected in relying upon, an Opinion of Counsel and an
officers’ certificate stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent, if any, to the execution and delivery of such amendment have been satisfied. The Collateral
Agent, Custodial Agent, Securities Intermediary and Purchase Contract Agent may, but shall not be obligated to, enter into any such amendment which affects their own respective rights, duties or immunities under this Agreement or otherwise.

  
 Section 10.04.    Effect of
Amendments.  Upon the execution of any amendment under this Article, this Agreement shall be modified in accordance therewith, and such amendment shall form a part of this Agreement for all purposes; and every Holder of Certificates
theretofore or thereafter authenticated, executed on behalf of the Holders and delivered under the Purchase Contract Agreement shall be bound thereby. 
  
 Section 10.05.    Reference of Amendments.  Certificates authenticated, executed on behalf of the Holders and
delivered after the execution of any amendment pursuant to this Section may, and shall if required by the Collateral Agent or the Purchase Contract Agent, bear a notation in form approved by the Purchase Contract Agent and the Collateral Agent as to
any matter provided for in such amendment. If the Company shall so determine, new Certificates so modified as to conform, in the opinion of the Collateral Agent, the Purchase 

  

 33 

 Contract Agent and the Company, to any such amendment may be prepared and executed by the Company and authenticated,
executed on behalf of the Holders and delivered by the Purchase Contract Agent in accordance with the Purchase Contract Agreement in exchange for Certificates representing Outstanding Units. 
  
 ARTICLE 11 
 MISCELLANEOUS 
  
 Section 11.01.    No Waiver.  No failure on the part of the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary or any of their respective agents to
exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Company, the Collateral Agent, the Custodial
Agent, the Securities Intermediary or any of their respective agents of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and
are not exclusive of any remedies provided by law. 
  
 Section
11.02.    Governing Law; Submission to Jurisdiction.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. The Company, the Collateral Agent, the Custodial
Agent, the Securities Intermediary and the Holders from time to time of the Units, acting through the Purchase Contract Agent as their attorney-in-fact, hereby submit to the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby. The Company, the Collateral Agent,
the Custodial Agent, the Securities Intermediary and the Holders from time to time of the Units, acting through the Purchase Contract Agent as their attorney-in-fact, irrevocably waive, to the fullest extent permitted by applicable law, any
objection that they may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. 
  
 Section 11.03.    Notices.  All notices,
requests, consents and other communications provided for herein (including, without limitation, any modifications of, or waivers or consents under, this Agreement) shall be given or made in writing (including, without limitation, by telecopy)
delivered to the intended recipient at the “Address for Notices” specified below its name on the signature pages hereof or, as to any party, at such other address as shall be designated by such party in a notice to the other
parties. Except as otherwise provided in this Agreement, all such communications shall be deemed to have 

  

 34 

 
been duly given when transmitted by telecopier or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as
aforesaid. 
  
 Section 11.04.    Successors
and Assigns.  This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the Company, the Collateral Agent, the Custodial Agent, the Securities Intermediary and the Purchase Contract
Agent, and the Holders from time to time of the Units, by their acceptance of the same, shall be deemed to have agreed to be bound by the provisions hereof and to have ratified the agreements of, and the grant of the Pledge hereunder by, the
Purchase Contract Agent. 
  
 Section
11.05.    Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this
Agreement by signing any such counterpart. 
  
 Section
11.06.    Severability.  If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof shall remain in full force and
effect in such jurisdiction and shall be liberally construed in order to carry out the intentions of the parties hereto as nearly as may be possible and (ii) the invalidity or unenforceability of any provision hereof in any jurisdiction shall not
affect the validity or enforceability of such provision in any other jurisdiction. 
  
 Section 11.07.    Expenses, Etc.  The Company agrees to reimburse the Collateral Agent, the Custodial Agent and the Securities Intermediary for: 
  
 (a)    all reasonable costs and expenses of the
Collateral Agent, the Custodial Agent and the Securities Intermediary (including, without limitation, the reasonable fees and expenses of counsel to the Collateral Agent, the Custodial Agent and the Securities Intermediary), in connection with (i)
the negotiation, preparation, execution and delivery or performance of this Agreement and (ii) any modification, supplement or waiver of any of the terms of this Agreement; 
  
 (b)    all reasonable costs and expenses of the Collateral Agent, the Custodial Agent and the Securities
Intermediary (including, without limitation, reasonable fees and expenses of counsel) in connection with (i) any enforcement or proceedings resulting or incurred in connection with causing any Holder of Units to satisfy its obligations under the
Purchase Contracts forming a part of the Units and (ii) the enforcement of this Section 11.07; 
  
 (c)    all transfer, stamp, documentary or other similar taxes, assessments or charges levied by any governmental or revenue authority in respect of this Agreement or any other document referred to
herein and all costs, expenses, 
  

 35 

 
taxes, assessments and other charges incurred in connection with any filing, registration, recording or perfection of any security interest contemplated
hereby; 
  
 (d)    all reasonable fees and
expenses of any agent or advisor appointed by the Collateral Agent and consented to by the Company under Section 9.11 of this Agreement; and 
  
 (e)    any other out-of-pocket costs and expenses reasonably incurred by the Collateral Agent, the Custodial Agent and the Securities
Intermediary in connection with the performance of their duties hereunder. 
  
 Section 11.08.    Security Interest Absolute.  All rights of the Collateral Agent and security interests hereunder, and all obligations of the Holders from time to time hereunder,
shall be absolute and unconditional irrespective of: 
  
 (a)    any lack of validity or enforceability of any provision of the Purchase Contracts or the Units or any other agreement or instrument relating thereto; 
  
 (b)    any change in the time, manner or place of payment of, or any other term of, or any increase in
the amount of, all or any of the obligations of Holders of the Units under the related Purchase Contracts, or any other amendment or waiver of any term of, or any consent to any departure from any requirement of, the Purchase Contract Agreement or
any Purchase Contract or any other agreement or instrument relating thereto; or 
  
 (c)    any other circumstance which might otherwise constitute a defense available to, or discharge of, a borrower, a guarantor or a pledgor. 
  
 Section 11.09.    Notice of Special Event, Special
Event Redemption and Termination Event.  Upon the occurrence of a Special Event, a Special Event Redemption or a Termination Event, the Company shall deliver written notice to the Purchase Contract Agent, the Collateral Agent and the
Securities Intermediary. Upon the written request of the Collateral Agent or the Securities Intermediary, the Company shall inform such party whether or not a Special Event, a Special Event Redemption or a Termination Event has occurred. 

 
 [SIGNATURES ON THE FOLLOWING PAGE] 
  
  

 36 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and
year first above written. 
  

	 THE PMI GROUP, INC.
	 	 The Bank of New York,
 as Purchase
Contract Agent and as
 attorney-in-fact of the Holders from time
 to time of the Units

  

					
	By:	 	  

	 	 	 	By:	 	  

	 	 	 Name:
 Title:
	 	 	 	 	 	 Name:
 Title:

  

	 Address for Notices:
	 	Address for Notices:
		
	 The PMI Group, Inc.
 303 Oak Road
 Walnut Creek, California 94597
 Telecopier No.:
[                     ]
 Attention: General Counsel
	 	 The Bank of New York
 101 Barclay Street
Floor 8W
 New York, NY 10286
 Telecopier No.:
212-815-5707
 Attention: Corporate Trust Administration

  
  

	 The Bank of New York,
 as
Collateral Agent, Custodial Agent
 and Securities Intermediary

		
	 By:
	 	  

	 	 	 Name:
 Title:

  
 Address for Notices: 
  
 The Bank of New York 
 101 Barclay Street Floor 8W 
 New York, NY 10286 
 Telecopier No.: 212-815-5707 
 Attention: Corporate Trust Administration 

 EXHIBIT A 
  

INSTRUCTION 
 FROM PURCHASE
CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Creation of Treasury Units) 
  
 The Bank of New
York 
 The Purchase Contract Agent 
 101 Barclay Street, Floor 8W

 New York, NY 10286 
 Telecopier No.: 212-815-5707 

Attention: Corporate Trust Administration 
  
 Re:                Corporate Units of The PMI Group, Inc. (the
“Company”) 
  
 The securities
account of The Bank of New York, as Collateral Agent, maintained by the Securities Intermediary and designated “The Bank of New York, as Collateral Agent of The PMI Group, Inc., as pledgee of The Bank of New York, as the Purchase Contract Agent
on behalf of and as attorney-in-fact for the Holders” (the “Collateral Account”) 
  
 Please refer to the Pledge Agreement, dated as of
[                    ], 2003 (the “Pledge Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary and
as Custodial Agent and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time. Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge Agreement.

  
 We hereby notify you in accordance with Section 5.02 of the
Pledge Agreement that the holder of securities named below (the “Holder”) has elected to substitute $            Value of Treasury Securities or security entitlements with
respect thereto in exchange for an equal Value of Pledged Senior Notes relating to            Corporate Units and has delivered to the undersigned a notice stating that the Holder has
Transferred such Treasury Securities or security entitlements with respect thereto to the Securities Intermediary, for credit to the Collateral Account. 
  
 We hereby request that you instruct the Securities Intermediary, upon confirmation that such Treasury Securities or security entitlements thereto have
been credited to the Collateral Account, to release to the undersigned an equal Value of Pledged Senior Notes in accordance with Section 5.02 of the Pledge Agreement. 
  

 A-1 

 Date: 

	The Bank of New York, as Purchase Contract Agent and as attorney-in-fact of the Holders from time to time of the Units
		
	 By:
	 	

	 	 	 Name:
 Title:

  
  

 A-2 

 Please print name and address of Holder electing to substitute Treasury Securities or security
entitlements with respect thereto for the Pledged Senior Notes: 
  

	 	 	 	 	 
					
	 	 	
	 	 	 	 	 	

	 	 	Name	 	 	 	 	 	Social Security or other Taxpayer Identification Number, if any
	 	 	
	 	 	 	 	 	 
	 	 	Address	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 

  
  

 A-3 

 EXHIBIT B 
  

INSTRUCTION 
 FROM COLLATERAL AGENT

 TO SECURITIES INTERMEDIARY 
 (Creation of Treasury Units) 
  
 The Bank of New York

 as Securities Intermediary 
 101 Barclay Street, Floor 8W 
 New York, NY 10286 
 Telecopier No.: 212-815-5707 
 Attention: Corporate Trust Administration 
  
 Re:                 Corporate Units of The PMI Group, Inc. (the “Company”) 
  
 The securities account of The Bank of New York, as Collateral Agent, maintained by the Securities Intermediary and
designated “The Bank of New York, as Collateral Agent of The PMI Group, Inc. as pledgee of The Bank of New York, as the Purchase Contract Agent on behalf of and as attorney-in-fact for the Holders” (the “Collateral
Account”) 
  
 Please refer to the Pledge Agreement, dated
as of [                    ], 2003 (the “Pledge Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary
and as Custodial Agent and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time. Capitalized terms used herein but not defined shall have the meanings set forth in the Pledge
Agreement. 
  
 When you have confirmed that
$            Value of Treasury Securities or security entitlements thereto has been credited to the Collateral Account by or for the benefit
of            , as Holder of Corporate Units (the “Holder”), you are hereby instructed to release from the Collateral Account an equal Value of Pledged Senior Notes or
security entitlements with respect thereto relating to Corporate Units of the Holder by Transfer to the Purchase Contract Agent. 
  

 B-1 

	 	 	 	 	 
					
	Dated:	 	
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 The Bank of New York, as
 Collateral
Agent

  

	 	 	 	 	 
					
	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Name:
 Title:

  

 B-2 

	Please print name and address of Holder:	 	 	 	 
					
	 	 	
	 	 	 	 	 	

	 	 	Name	 	 	 	 	 	Social Security or other Taxpayer Identification Number, if any
	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	 	 	Address	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 

  
  
  

 B-3 

 EXHIBIT C 
  

INSTRUCTION 
 FROM PURCHASE
CONTRACT AGENT 
 TO COLLATERAL AGENT 
 (Recreation of Corporate Units) 
  
 The Bank of
New York 
 The Purchase Contract Agent 
 101 Barclay Street,
Floor 8W 
 New York, NY 10286 
 Telecopier No.: 212-815-5707

 Attention: Corporate Trust Administration 
  

	Re:                            	 	Treasury Units of The PMI Group, Inc. (the “Company”) 

  
 Please refer to the Pledge Agreement dated as of [            ], 2003 (the “Pledge
Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary, as Custodial Agent and the undersigned, as Purchase Contract Agent and as attorney-in-fact for the holders of Treasury Units from time to time.
Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge Agreement. 
  
 We hereby notify you in accordance with Section 5.03 of the Pledge Agreement that the holder of securities named below (the “Holder”) has
elected to substitute $                  Value of Senior Notes or security entitlements with respect thereto in exchange for
$                 Value of Pledged Treasury Securities and has delivered to the undersigned a notice stating that the holder has Transferred such Senior Notes or
security entitlements with respect thereto to the Securities Intermediary, for credit to the Collateral Account. 
  

 C-1 

 We hereby request that you instruct the Securities Intermediary, upon confirmation that such Senior Notes
or security entitlements with respect thereto have been credited to the Collateral Account, to release to the undersigned $            Value of Treasury Securities or security
entitlements with respect thereto related to                          Treasury Units of such Holder in accordance with
Section 5.03 of the Pledge Agreement. 
  

	 	 	 	 	 The Bank of New York, as
 Purchase Contract Agent
  

	 	 	 Dated:                                     
                                        
                             
	 	 	 	By:	 	                                      
                                        
                                        
 
	 	 	 	 	 	 	 	 	 Name:
 Title:

  

 C-2 

 Please print name and address of Holder electing to substitute Senior Notes or security entitlements with respect thereto
for Pledged Treasury Securities: 
  

	
 Name
	  	
 Social Security or other Taxpayer
 Identification Number, if any

	
 Address
  

	  	 
	  

	  	 

  
  

 C-3 

 EXHIBIT D 
  

INSTRUCTION 
 FROM COLLATERAL AGENT

 TO SECURITIES INTERMEDIARY 
 (Recreation of Corporate Units) 
  
 The Bank of New York 
 as Securities Intermediary 
 101 Barclay Street, Floor 8W 
 New York, NY 10286 
 Telecopier No.: 212-815-5707 
  
 Attention: Corporate Trust Administration 
  
 Re:        The Bank of New York Treasury Units
of The PMI Group, Inc. (the “Company”) 
  
 The
securities account of The Bank of New York, as Collateral Agent, maintained by the Securities Intermediary and designated “The Bank of New York, as Collateral Agent of The PMI Group, Inc., as pledgee of The Bank of New York, as the Purchase
Contract Agent on behalf of and as attorney-in-fact for the Holders” (the “Collateral Account”) 
  
 Please refer to the Pledge Agreement dated as of [                ], 2003
(the “Pledge Agreement”), among the Company, you, as Securities Intermediary, Custodial Agent and Collateral Agent and [                ], as Purchase
Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time, and the undersigned, as Collateral Agent. Capitalized terms used herein but not defined shall have the meaning set forth in the Pledge Agreement.

  
 When you have confirmed that $
                         Value of Senior Notes or security entitlements with respect thereto has been credited to the
Collateral Account by or for the benefit of                     , as Holder of Treasury Units (the “Holder”), you are hereby
instructed to release from the Collateral Account $                              Value of Treasury
Securities or security entitlements thereto by Transfer to the Purchase Contract Agent. 
  

 D-1 

	 	  	 The Bank of New York, as
 Collateral Agent
  

	 Dated:                                     
                                        
                                   
	  	By:	  	                                      
                                        
                                        
  
	 	  	 	  	Name:
	 	  	 	  	Title:

  
 Please print name and address of
Holder: 
  

	                                       
                                        
                                        
      
 Name
	  	                                       
                                        
                                    
 Social Security or other Taxpayer
 Identification Number, if any

	                                       
                                        
                                        
      
 Address
  
                                       
                                        
                                        
      
	  	 
	  
                                       
                                        
                                        
      
	  	 

  
  

 D-2 

 EXHIBIT E 
  

NOTICE OF CASH SETTLEMENT FROM COLLATERAL 
 AGENT TO PURCHASE CONTRACT AGENT 
 (Cash Settlement Amounts) 
  
 The Bank of New York 
 The Purchase Contract
Agent 
 101 Barclay Street, Floor 8W 
 New York, NY 10286

 Telecopier No.: 212-815-5707 
 Attention: Corporate Trust
Administration 
  
 Re:                         Corporate Units of The PMI Group, Inc. (the “Company”) 

                               Treasury Units of the Company

  
 Please refer to the Pledge Agreement dated as of
[                ], 2003 (the “Pledge Agreement”), by and among you, the Company, and
[                    ], as Collateral Agent, Custodial Agent and Securities Intermediary. Unless otherwise defined herein, terms defined in the
Pledge Agreement are used herein as defined therein. 
  
 In
accordance with Section 5.05(c) of the Pledge Agreement, we hereby notify you that as of 5:00 p.m. (New York City time) on the fourth Business Day immediately preceding
[                    ] (the “Purchase Contract Settlement Date”), we have received (i)
$                     in immediately available funds paid in an aggregate amount equal to the Purchase Price due to the Company on the
Purchase Contract Settlement Date with respect to                          Corporate Units, (ii) $
                             in immediately available funds paid in an aggregate amount equal to the
Purchase Price due to the Company on the Purchase Contract Settlement Date with respect to                     Treasury Units and (iii) based
on the funds received set forth in clause (i) above, an aggregate principal amount of $                    of Pledged Senior Notes are to be
tendered for purchase in the Final Remarketing. 
  

	 	  	 The Bank of New York, as
 Collateral Agent
  

	 Dated:                                     
                                        
                                   
	  	By:	  	                                      
                                        
                                        
  
	 	  	 	  	Name:
	 	  	 	  	Title:

  
  

 E-1 

 EXHIBIT F 
  

INSTRUCTION TO CUSTODIAL AGENT REGARDING 
 REMARKETING 
  
 The Bank of New York 
 The Custodial Agent 
 101 Barclay Street, Floor 8W 
 New York, NY 10286 
 Telecopier No.: 212-815-5707 
 Attention: Corporate Trust Administration 
  

	Re:	 	Senior Notes Due [                    ] of The PMI Group, Inc. (the
“Company”) 

  
 The undersigned
hereby notifies you in accordance with Section 5.07(c) of the Pledge Agreement, dated as of [                ], 2003 (the “Pledge Agreement”), among the
Company, you, as Collateral Agent, Custodial Agent and Securities Intermediary and The Bank of New York, as the Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time, that the undersigned elects to
deliver $                        aggregate principal amount of Separate Senior Notes for delivery to the Remarketing Agent
on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the Initial Remarketing Date for remarketing pursuant to Section 5.07(c) of the Pledge Agreement. The undersigned will, upon request of the Remarketing
Agent, execute and deliver any additional documents deemed by the Remarketing Agent or by the Company to be necessary or desirable to complete the sale, assignment and transfer of the Separate Senior Notes tendered hereby. Capitalized terms used
herein but not defined shall have the meaning set forth in the Pledge Agreement. 
  
 The undersigned hereby instructs you, upon receipt of the Proceeds of such remarketing from the Remarketing Agent, to deliver such Proceeds to the undersigned in accordance with the instructions indicated herein under
“A. Payment Instructions.” The undersigned hereby instructs you, in the event of a Failed Final Remarketing, upon receipt of the Separate Senior Notes tendered herewith from the Remarketing Agent, to deliver such Separate Senior Notes to
the person(s) and the address(es) indicated herein under “B. Delivery Instructions.” 
  
 With this notice, the undersigned hereby (i) represents and warrants that the undersigned has full power and authority to tender, sell, assign and transfer the Separate Senior Notes tendered hereby and that the
undersigned is the record owner of any Senior Notes tendered herewith in physical form or a participant in 

  

 F-1 

 The Depository Trust Company (“DTC”) and the beneficial owner of any Senior Notes
tendered herewith by book-entry transfer to your account at DTC, (ii) agrees to be bound by the terms and conditions of Section 5.07(c) of the Pledge Agreement and (iii) acknowledges and agrees that after 5:00 p.m. (New York City time) on the fifth
Business Day immediately preceding the [Initial] [Second] [Third] [Final] Remarketing Date, such election shall become an irrevocable election to have such Separate Senior Notes remarketed in the Remarketing. In the case of a Failed Remarketing,
such Separate Senior Notes shall be returned to the undersigned. 
  

	 	 	 	 	 
					
	Dated:	 	
	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Name:
 Title:
 Signature Guarantee:  

	 	 	 	 	 
				
	
	 	 	 	 	 	

	Name	 	 	 	 	 	 Social Security or other Taxpayer
 Identification Number, if any

	 	 	 	 	 
	
	 	 	 	 	 	 
	Address	 	 	 	 	 	 
	 	 	 	 	 	 	 
				
	
	 	 	 	 	 	 

  

 F-2 

	A.	 	PAYMENT INSTRUCTIONS 

  
 Proceeds of the remarketing should be paid by check in the name of the person(s) set forth below and mailed to the address set forth below. 
  
 Name(s) 
  
 (Please Print) 
 Address 
  
 (Please Print) 
  
 (Zip Code) 
  
 (Taxpayer Identification or Social Security Number) 
  

	B.	 	DELIVERY INSTRUCTIONS 

  
 In the event of a Failed Final Remarketing, Senior Notes that are in physical form should be delivered to the person(s) set forth below and mailed to the address set forth below. 
  
 Name(s) 
  
 (Please Print) 
 Address 
  
 (Please Print) 
  
 (Zip Code) 
  

 F-3 

 (Tax Identification or Social Security Number) 
  
 In the event of a failed final remarketing, Senior Notes that are in book-entry form should be credited to the account at The Depository
Trust Company set forth below. 
  

 DTC Account Number 
  
 Name of Account
Party:                                       
                                        
             
  
  

 F-4 

 EXHIBIT G 
  

INSTRUCTION TO CUSTODIAL AGENT REGARDING 
 WITHDRAWAL FROM REMARKETING 
  
 The Bank of New York 

The Custodial Agent 
 101 Barclay Street, Floor 8W 
 New York, NY 10286 
 Telecopier No.: 212-815-5707 
 Attention: Corporate Trust Administration 
  

	Re:	 	Senior Notes due
[                            ] of The PMI Group, Inc. (the “Company”)

  
 The undersigned hereby notifies you in
accordance with Section 5.07(c) of the Pledge Agreement, dated as of [                        ], 2003 (the “Pledge
Agreement”), among the Company and you, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of New York, as Purchase Contract Agent and as attorney-in-fact for the holders of Corporate Units from time to time,
that the undersigned elects to withdraw the $            aggregate principal amount of Separate Senior Notes delivered to the Collateral Agent
on            , 200_ for remarketing pursuant to Section 5.07(c) of the Pledge Agreement. The undersigned hereby instructs you to return such Senior Notes to the undersigned in accordance
with the undersigned’s instructions. With this notice, the Undersigned hereby agrees to be bound by the terms and conditions of Section 5.07(c) of the Pledge Agreement. Capitalized terms used herein but not defined shall have the meaning set
forth in the Pledge Agreement. 
  

	 	 	 	 	 
					
	Date:	 	
	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Name:
 Title:
 Signature Guarantee:  

	 	 	 	 	 
				
	
	 	 	 	 	 	

	Name	 	 	 	 	 	 Social Security or other Taxpayer
 Identification Number, if any

	 	 	 	 	 
	
	 	 	 	 	 	 
	Address	 	 	 	 	 	 
	 	 	 	 	 	 	 
				
	
	 	 	 	 	 	 

  

 G-1Form of Supplemental Indenture

 Exhibit 4.9 
  

THE PMI GROUP, INC. 
  
 AND 
  
 The Bank of New York, 
  
 as Trustee 
  

  
 SUPPLEMENTAL INDENTURE NO. [1] 
  
 Dated as of [            ], 2003 
  
  

 THIS SUPPLEMENTAL INDENTURE No. [1] (this “Supplemental Indenture”), dated as of
[             ], 2003, is between THE PMI GROUP, INC., a Delaware corporation (the “Company”), and The Bank of New York, as Trustee (the “Trustee”).

  
 R E C I T A L S 
  
 WHEREAS, the Company has heretofore executed and delivered to the Trustee an
Indenture dated as of [                             ] (the “Base Indenture” and
together with this Supplemental Indenture, the “Indenture”), providing for the issuance from time to time of series of the Company’s Securities (as defined in the Base Indenture); 
  
 WHEREAS, Section 901(7) of the Base Indenture provides for the Company and
the Trustee to enter into an indenture supplemental to the Base Indenture to establish the form or terms of Securities of any series as permitted by Sections 201 or 301 of the Base Indenture; 
  
 WHEREAS, pursuant to Section 301 of the Base Indenture, the Company wishes to
provide for the issuance of a new series of Securities to be known as its [    ]% Senior Notes due                     , 2008
(the “Senior Notes”), the form and terms of such Senior Notes and the terms, provisions and conditions thereof to be set forth as provided in this Supplemental Indenture; 
  
 WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture and all requirements
necessary to make this Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms, and to make the Senior Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid, binding and
enforceable obligations of the Company, have been done and performed, and the execution and delivery of this Supplemental Indenture has been duly authorized in all respects. 
  
 NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
  
 ARTICLE 1 
 DEFINITIONS 
  
 Section 1.01    Relation to Base Indenture.  This Supplemental Indenture constitutes an integral part of the Base Indenture. 
  

 1 

 Section 1.02.    Definition Of Terms.  For all purposes of
this Supplemental Indenture: 
  
 (a)    Capitalized terms used herein without definition shall have the meanings specified in the Base Indenture, or, if not defined in the Base Indenture, in the Purchase Contract Agreement, the Pledge Agreement or the
Remarketing Agreement, as applicable; 
  
 (b)    a term defined anywhere in this Supplemental Indenture has the same meaning throughout; 
  
 (c)    the singular includes the plural and vice versa; 
  
 (d)    headings are for convenience of reference only and do not affect interpretation;

  
 (e)    the following
terms have the meanings given to them in this Article 1: 
  
 “Accounting Event” means the receipt by the audit committee of the board of directors of the Company of a written report in accordance with Statement on Auditing Standards (“SAS”) No. 97, “Amendment to
SAS No. 50—Reports on the Application of Accounting Principles”, from the Company’s independent auditors, provided at the request of the management of the Company, to the effect that, as a result of a change in accounting rules after
the date hereof, the Company must either (i) account for all or any portion of the Purchase Contracts as derivatives under SFAS 133 (or otherwise mark-to-market or measure at fair value all or any portion of the Purchase Contracts, with changes
appearing in the Company’s income statement) or (ii) account for the Units using the if-converted method under SFAS 128, and that such accounting treatment will cease to apply upon redemption of the Senior Notes. 
  
 “Applicable Principal Amount” means the aggregate principal
amount of the Senior Notes that are part of Corporate Units on the Special Event Redemption Date. 
  
 “Business Day” shall have the meaning specified in the Purchase Contract Agreement. 
  
 “Corporate Units” shall have the meaning specified in the
Purchase Contract Agreement. 
  
 “Coupon Rate”
shall have the meaning set forth in Section 2.05(a). 
  

 2 

 “Depositary” means a clearing agency registered under Section 17A of the Securities
Exchange Act of 1934, as amended, that is designated to act as Depositary for the Corporate Units pursuant to the Purchase Contract Agreement. 
  
 “Depositary Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time the
Depositary effects book entry transfers and pledges of securities deposited with the Depositary. 
  
 “Final Remarketing Price” shall have the meaning set forth in Section 8.02(b). 
  
 “Global Senior Notes” shall have the meaning set forth in
Section 2.04. 
  
 “Interest Payment Date” shall
have the meaning set forth in Section 2.05(b). 
  
 “Maturity Date” shall have the meaning specified in Section 2.02. 
  
 “Pledge Agreement” means the Pledge Agreement, dated as of the date hereof, among the Company, The Bank of New York, as Collateral Agent, Custodial Agent and Securities Intermediary, and The Bank of
New York, as Purchase Contract Agent and attorney-in-fact for the Holders of the Purchase Contracts, as amended from time to time. 
  
 “Purchase Contract Agreement” means the Purchase Contract Agreement, dated as of the date hereof, between the Company and The Bank of New
York, as purchase contract agent, as amended from time to time. 
  
 “Purchase Contracts” and “Purchase Contract” shall have their respective meanings specified in the Purchase Contract Agreement. 
  
 “Purchase Contract Settlement Date” means
[                        ], 2006. 
  
 “Put Price” shall have the meaning set forth in Section 8.05(a). 
  
 “Put Right” shall have the meaning set forth in Section 8.05(a). 
  
 “Quotation Agent” means any primary U.S. government
securities dealer selected by the Company. 
  
 “Record
Date” means, with respect to any Interest Payment Date for the Senior Notes, the first Business Day of the calendar month in which such Interest Payment Date falls; provided that the Company may, at its option, select any other day
as the Record Date for any Interest Payment Date so long as such 
  

 3 

 Record Date selected is more than one Business Day but less than sixty Business Days prior to such Interest Payment Date.

  
 “Redemption Amount” means, for each Senior
Note, the product of the principal amount of such Senior Note and a fraction, the numerator of which is the Treasury Portfolio Purchase Price and the denominator of which is the Applicable Principal Amount. 
  
 “Redemption Price” with respect to such Senior Note shall
mean, for each Senior Note, the Redemption Amount plus any accrued and unpaid interest on such Senior Note to but excluding the Special Event Redemption Date. 
  

“Remarketed Senior Notes” shall have the meaning set forth in Section 8.01(c). 
  
 “Remarketing Agent” shall have the meaning set forth in the
Remarketing Agreement. 
  
 “Remarketing
Agreement” means the Remarketing Agreement, dated as of [            ], 2003, among the Company, Banc of America Securities LLC, [
                    ] and [                    
], each as a potential Remarketing Agent, and The Bank of New York, as Purchase Contract Agent, as amended from time to time. 
  
 “Remarketing Price” shall have the meaning set forth in Section 8.02(a). 
  
 “Reset Effective Date” means the date three Business Days following the date of a Successful Remarketing
pursuant to which the Coupon Rate is reset to a Reset Rate. 
  
 “Reset Rate” means the interest rate per annum on the Senior Notes (i) in the case of a Successful Remarketing prior to the Final Remarketing Date, as determined by the Remarketing Agent as necessary to remarket the
Remarketed Senior Notes at a price per Remarketed Senior Note such that the aggregate price for the Remarketed Senior Notes is equal to approximately 100.25% of the sum of the Treasury Portfolio Purchase Price and the Separate Senior Notes Purchase
Price, and (ii) in the case of a Successful Remarketing on the Final Remarketing Date, as the rate necessary to remarket the Remarketed Senior Notes at a price per Remarketed Senior Note such that the aggregate price for the Remarketed Senior Notes
is equal to approximately 100.25% of the aggregate principal amount of the Remarketed Senior Notes; provided that if there are no Corporate Units outstanding and none of the Holders elect to have Separate Senior Notes held by them remarketed,
or in the case of a Failed Remarketing, the interest rate payable on the Senior Notes will not be reset and the interest rate payable on the Senior 
  

 4 

 Notes shall continue to be the Coupon Rate. 
  
 “Special Event” shall mean either a Tax Event or an Accounting Event. 
  
 “Special Event Redemption” means the redemption of the
Senior Notes pursuant to the terms hereof following the occurrence of a Special Event. 
  
 “Special Event Redemption Date” shall have the meaning set forth in Section 3.01. 
  
 “Tax Event” means the receipt by the Company of an opinion of counsel, rendered by a law firm having a recognized national tax practice,
to the effect that, as a result of any amendment to, change in or announced proposed change in the laws (or any regulations thereunder) of the United States or any political subdivision or taxing authority thereof or therein, or as a result of any
official administrative decision, pronouncement, judicial decision or action interpreting or applying such laws or regulations, which amendment or change is effective or which proposed change, pronouncement, action or decision is announced on or
after the date hereof, there is more than an insubstantial increase in the risk that interest payable by the Company on the Senior Notes is not, or within 90 days of the date of such opinion, will not be, deductible by the Company, in whole or in
part, for United States federal income tax purposes. 
  
 “Treasury Portfolio” means a portfolio of (1) U.S. treasury securities (or principal or interest strips thereof) that mature on or prior to
[                        ] in an aggregate amount at maturity equal to the Applicable Principal Amount, and (2) (x) in the case
of a Successful Remarketing prior to the Final Remarketing Date, for the scheduled Interest Payment Date on the Purchase Contract Settlement Date, U.S. treasury securities (or principal or interest strips thereof) that mature on or prior to
[                        ] in an aggregate amount at maturity equal to the aggregate interest payment (assuming no reset of the
interest rate) that would have been due on the Purchase Contract Settlement Date on the Applicable Principal Amount, and (y) in the case of a Special Event Redemption, for each scheduled Interest Payment Date that occurs after the Special Event
Redemption Date to and including the Purchase Contract Settlement Date, U.S. treasury securities (or principal or interest strips thereof) that mature on or prior to the business day immediately preceding such scheduled Interest Payment Date in an
aggregate amount equal to the aggregate interest payment (assuming no reset of the interest rate) that would have been due on such scheduled Interest Payment Date on the Applicable Principal Amount. 
  

 5 

 “Treasury Portfolio Purchase Price” means the lowest aggregate ask-side price quoted by
a Primary Treasury Dealer to the Quotation Agent between 9:00 a.m. and 11:00 a.m., New York City time, (i) in the case of a Special Event Redemption, on the third Business Day immediately preceding the Special Event Redemption Date for the purchase
of the applicable Treasury Portfolio for settlement on the Special Event Redemption Date, and (ii) in the case of a Successful Remarketing prior to the Final Remarketing Date, on the date of such Successful Remarketing for the purchase of the
applicable Treasury Portfolio for settlement on the third Business Day immediately following the date of such Successful Remarketing. 
  
 The terms “Company,” “Trustee,” “Indenture,” “Base Indenture” and “Senior
Notes” shall have the respective meanings set forth in the recitals to this Supplemental Indenture and the paragraph preceding such recitals. 
  
  
 ARTICLE 2 
 GENERAL TERMS AND CONDITIONS OF THE SENIOR NOTES 
  
 Section 2.01.    Designation and Principal
Amount.  There is hereby authorized a series of Securities designated as [    ]% Senior Notes due
                    , 2008 limited in aggregate principal amount to $[        ] (or up to
$[        ] to the extent that the Underwriters’ over-allotment option is exercised). The Senior Notes may be issued from time to time upon written order of the Company for the authentication and delivery
of Senior Notes pursuant to Section 303 of the Base Indenture. 
  
 Section 2.02.    Maturity.  Unless a Special Event Redemption occurs prior to the Maturity Date (defined below), the date upon which the Senior Notes shall become due and payable at final maturity,
together with any accrued and unpaid interest, is                 , 2008 (the “Maturity Date”). 
  
 Section 2.03.    Form, Payment and
Appointment.  Except as provided in Section 2.04, the Senior Notes shall be issued in fully registered, certificated form, bearing identical terms. Principal of and interest on the Senior Notes will be payable, the transfer of such
Senior Notes will be registrable, and such Senior Notes will be exchangeable for Senior Notes of a like aggregate principal amount bearing identical terms and provisions, at the office or agency of the Company maintained for such purpose in the
Borough of Manhattan, the City of New York, which shall initially be the Corporate Trust Office of the Trustee; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Holder at such
address as shall appear in the Security Register 
  

 6 

 or by wire transfer to an account appropriately designated by the Holder entitled to payment. 
  
 No service charge shall be made for any registration of transfer or exchange
of the Senior Notes, but the Company may require payment from the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
  
 The Security Registrar and Paying Agent for the Senior Notes shall initially be the Trustee. 
  
 The Senior Notes shall be issuable in denominations of $25 and integral
multiples of $25 in excess thereof. 
  
 Section
2.04.    Global Senior Notes.  Senior Notes that are no longer a component of the Corporate Units and are released from the Collateral Account (as defined in the Pledge Agreement) will be issued in permanent
global form (a “Global Senior Note”), and if issued as one or more Global Senior Notes, the Depositary shall be The Depository Trust Company or such other depositary as any officer of the Company may from time to time designate.
Upon the creation of Treasury Units or the recreation of Corporate Units, an appropriate annotation shall be made on the Schedule of Increases and Decreases on the Global Senior Notes held by the Depositary. Unless and until such Global Senior Note
is exchanged for Senior Notes in certificated form, Global Senior Notes may be transferred, in whole but not in part, and any payments on the Senior Notes shall be made, only to the Depositary or a nominee of the Depositary, or to a successor
Depositary selected or approved by the Company or to a nominee of such successor Depositary. 
  
 Section 2.05.    Interest.  (a) The Senior Notes will bear interest initially at the rate of [    ]% per year (the “Coupon Rate”) from the
original date of issuance through and including the earlier of (i) the Maturity Date and (ii) the day immediately preceding any Reset Effective Date. In the event of a Successful Remarketing of the Senior Notes, the Coupon Rate will be reset by the
Remarketing Agent at the appropriate Reset Rate with effect from the related Reset Effective Date, as set forth under Section 8.03. If the Coupon Rate is so reset, the Senior Notes will bear interest at the Reset Rate from the related Reset
Effective Date until the principal thereof and interest thereon is paid or duly made available for payment and shall bear interest, to the extent permitted by law, compounded quarterly, on any overdue principal and payment of interest at the Coupon
Rate through and including the day immediately preceding the Reset Effective Date and at the Reset Rate thereafter. 
  

 7 

 (b)    Interest on the Senior Notes shall be payable quarterly in arrears on
[                ] 16, [                ] 16,
[                ] 16 and [                ] 16 of each year (each, an “Interest
Payment Date”), commencing [            ], 2003, to the Person in whose name such Senior Note, or any predecessor Senior Note, is registered at the close of business on the Record
Date for such Interest Payment Date. Interest on the Senior Notes shall accrue from [            ], 2004. 
  
 (c)    The amount of interest payable for any full quarterly period will be computed on the basis of a
360-day year consisting of twelve 30-day months. The amount of interest payable for any period shorter than a full quarterly period for which interest is computed will be computed on the basis of a 30-day month and, for any period less than a month,
on the basis of the actual number of days elapsed per 30-day month. In the event that any scheduled Interest Payment Date falls on a day that is not a Business Day, then payment of interest payable on such Interest Payment Date will be made on the
next succeeding day which is a Business Day (and without any interest or other payment in respect of any such delay), except that, if such Business Day is in the next calendar year, then such payment will be made on the preceding Business Day.

  
 Section 2.06.    No
Defeasance.  The provisions of Section 1302 and Section 1303 of the Base Indenture shall not apply to the Senior Notes. 
  
 Section 2.07.    No Sinking Fund.  The Senior Notes are not entitled to the benefit of any sinking fund. 

 
 Section 2.08.    No
Subordination.  The Senior Notes are not Subordinate Securities and are not subject to the Subordination Provisions of Article 15 of the Subordinated Indenture, dated as of
[            ], between the Company and the Trustee. 
  
  
 ARTICLE 3 
 REDEMPTION OF THE SENIOR NOTES 
  

Section 3.01.    Special Event Redemption.  If a Special Event shall occur and be continuing, the Company may, at
its option, redeem the Senior Notes in whole, but not in part, on any Interest Payment Date prior to the earlier of the date of a Successful Remarketing or the Purchase Contract Settlement Date, at a price per Senior Note equal to the Redemption
Price, payable on the date of redemption (the “Special Event Redemption Date”) to the Holders of the Senior Notes registered at the close of business on the Record Date for such Interest Payment Date. If the Company so elects to
redeem the Senior Notes, the Company shall appoint the Quotation Agent to assist the Company in determining the Treasury Portfolio Purchase Price. Notice of any Special Event Redemption will be mailed 
  

 8 

 by the Company (with a copy to the Trustee) at least 30 days but not more than 60 days before the Special Event
Redemption Date to each registered Holder of the Senior Notes at its registered address. In addition, the Company shall notify the Collateral Agent in writing that a Special Event has occurred and that the Company intends to redeem the Senior Notes
on the Special Event Redemption Date. Unless the Company defaults in the payment of the Redemption Price, on and after the Special Event Redemption Date, (a) interest shall cease to accrue on the Senior Notes, (b) the Senior Notes shall become due
and payable at the Redemption Price, and (c) the Senior Notes shall be void and all rights of the Holders in respect of the Senior Notes shall terminate and lapse (other than the right to receive the Redemption Price upon surrender of such Senior
Notes but without interest on such Redemption Price). Following the notice of a Special Event Redemption, neither the Company nor the Trustee shall be required to register the transfer of or exchange the Senior Notes to be redeemed. 
  
 Section 3.02.    Redemption
Procedures.  On or prior to 10:00 a.m. New York City time on the Special Event Redemption Date, the Company shall deposit with the Trustee immediately available funds in an amount sufficient to pay, on the Special Event Redemption
Date, the aggregate Redemption Price for all outstanding Senior Notes. In exchange for any Senior Notes surrendered for redemption on or after the Special Event Redemption Date, the Trustee shall pay an amount equal to the Redemption Price (a) to
the Collateral Agent, in the case of Senior Notes that are included in Corporate Units, which amount shall be applied by the Collateral Agent in accordance with the terms of the Pledge Agreement, and (b) to the holders of the Separate Senior Notes,
in the case of Separate Senior Notes. 
  
  
 ARTICLE 4 
 FORM OF SENIOR
NOTE 
  
 Section
4.01.    Form of Senior Note.  The Senior Notes and the Trustee’s Certificate of Authentication to be endorsed thereon are to be substantially in the forms attached as Exhibit A hereto, with such changes
therein as the officers of the Company executing the Senior Notes (by manual or facsimile signature) may approve, such approval to be conclusively evidenced by their execution thereof. 
  
  
 ARTICLE 5 
 ORIGINAL ISSUE OF SENIOR NOTES 
  
 Section 5.01.    Original Issue of Senior
Notes.  Senior Notes in the aggregate principal amount of $[        ] (or up to $[        ] to the extent that the Underwriters’ over-allotment option
is exercised) may from time to 
  

 9 

 time, upon execution of this Supplemental Indenture, be executed by the Company and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver said Senior Notes to or upon the written order of the Company pursuant to Section 303 of the Base Indenture without any further action by the Company (other than as required by
the Base Indenture). 
  
  
 ARTICLE 6 
 ORIGINAL ISSUE DISCOUNT

  
 Section 6.01.    Original Issue
Discount.  The Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Senior Notes that
are Outstanding as of the end of the year and (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time. 
  
  
 ARTICLE 7 
 MISCELLANEOUS 
  
 Section 7.01.    Ratification of Indenture.  The Indenture, as supplemented by this Supplemental Indenture, is in all
respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein and therein provided. 
  
 Section 7.02.    Trustee not Responsible for Recitals.  The recitals herein contained
are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. 
  
 Section 7.03.    New York Law to
Govern.  THIS SUPPLEMENTAL INDENTURE AND EACH SENIOR NOTE SHALL BE DEEMED TO BE CONTRACTS MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 
  
 Section
7.04.    Separability.  In case any one or more of the provisions contained in this Supplemental Indenture or in the Senior Notes shall for any reason be held to be invalid, illegal or unenforceable in any
respect, then, to the extent permitted by law, such invalidity, illegality or unenforceability shall not 
  

 10 

 affect any other provisions of this Supplemental Indenture or of the Senior Notes, but this Supplemental Indenture and
the Senior Notes shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein. 
  
 Section 7.05.    Counterparts.  This Supplemental Indenture may be executed in any number of counterparts each of
which shall be an original, but such counterparts shall together constitute but one and the same instrument. 
  
  
 ARTICLE 8 
 REMARKETING 
  
 Section
8.01.    Remarketing Procedures.  (a) Unless a Special Event Redemption or a Successful Remarketing has occurred prior to the applicable Remarketing Date, the Company shall engage the Remarketing Agent pursuant
to the Remarketing Agreement for the Remarketing of the Senior Notes. The Company will request, not later than seven nor more than 15 calendar days prior to the applicable Remarketing Date, that the Depositary or its nominee notify the Beneficial
Owners or Depositary Participants holding Separate Senior Notes, Corporate Units and Treasury Units of the procedures to be followed in the applicable Remarketing. 
  
 (b)    Each Holder of Separate Senior Notes may elect to have Separate Senior Notes held by such Holder
remarketed in any Remarketing. A Holder making such an election must, pursuant to the Pledge Agreement, notify the Custodial Agent and deliver such Separate Senior Notes to the Custodial Agent on or prior to 5:00 p.m. (New York City time) on or
prior to the fifth Business Day immediately preceding the applicable Remarketing Date (but no earlier than the Interest Payment Date immediately preceding the applicable Remarketing Date). Any such notice and delivery may not be conditioned upon the
level at which the Reset Rate is established in the Remarketing. Any such notice and delivery may be withdrawn on or prior to 5:00 p.m. (New York City time) on the fifth Business Day immediately preceding the applicable Remarketing Date in
accordance with the provisions set forth in the Pledge Agreement. Any such notice and delivery not withdrawn by such time will be irrevocable with respect to such Remarketing. Pursuant to Section 5.07(c) of the Pledge Agreement, promptly after 11:00
a.m., New York City time, on the Business Day immediately preceding the applicable Remarketing Date, the Custodial Agent, based on the notices and deliveries received by it prior to such time, shall notify the Remarketing Agent of the principal
amount of Separate Senior Notes to be tendered for remarketing and shall cause such Separate Senior Notes to be presented to the Remarketing Agent. Under Section 5.02 of the Purchase Contract Agreement, Senior Notes that are 
  

 11 

 components of Corporate Units will be deemed tendered for Remarketing and will be remarketed in accordance with the terms
of the Remarketing Agreement. 
  
 (c)    The
right of each Holder of Senior Notes that are included in Corporate Units to have such Senior Notes, and each Holder of Separate Senior Notes to have any Separate Senior Notes (together, the “Remarketed Senior Notes”), remarketed
and sold on any Remarketing Date shall be limited to the extent that (i) the Remarketing Agent conducts a Remarketing pursuant to the terms of the Remarketing Agreement, (ii) a Special Event Redemption has not occurred prior to such Remarketing
Date, (iii) the Remarketing Agent is able to find a purchaser or purchasers for Remarketed Senior Notes at the Remarketing Price [or the Final Remarketing Price, as the case may be,] and (iv) the purchaser or purchasers deliver the purchase price
therefor to the Remarketing Agent as and when required. 
  
 (d)    Neither the Trustee, the Company nor the Remarketing Agent shall be obligated in any case to provide funds to make payment upon tender of Senior Notes for remarketing. 
  
 Section
8.02.    Remarketing.    (a) Unless a Special Event Redemption has occurred prior to the Initial Remarketing Date, on the Initial Remarketing Date, the Remarketing Agent shall, pursuant and subject to
the terms of the Remarketing Agreement, use commercially reasonable efforts to remarket the Remarketed Senior Notes at a price (the “Remarketing Price”) equal to approximately 100.25% of the sum of the Treasury Portfolio Purchase
Price and the Separate Senior Note Purchase Price. 
  
 (b)    In the case of a Failed Initial Remarketing and unless a Special Event Redemption has occurred prior to the Final Remarketing Date, on the Final Remarketing Date, the Remarketing Agent shall use commercially
reasonable efforts to remarket the Remarketed Senior Notes at a price (the “Final Remarketing Price”) equal to approximately 100.25% of the aggregate principal amount of the Remarketed Senior Notes. It is understood and agreed that
Remarketing on any Remarketing Date will be considered successful and no further attempts will be made if the resulting proceeds are at least 100% of the sum of the Treasury Portfolio Purchase Price and the Separate Senior Note Purchase Price, and
100% of the aggregate principal amount of the Remarketed Senior Notes in the case of the Final Remarketing. 
  
 Section 8.03.    Reset Rate.  (a) In connection with each Remarketing, the Remarketing Agent shall determine, in
consultation with the Company, the Reset Rate (rounded to the nearest one-thousandth (0.001) of one percent per annum) that the Remarketed Senior Notes should bear in order to have an aggregate market value equal to the Remarketing Price or the
Final Remarketing Price, as 
  

 12 

 the case may be, and that in the sole discretion of the Remarketing Agent will enable it to remarket all of the
Remarketed Senior Notes at the Remarketing Price or Final Remarketing Price, as the case may be, in such Remarketing. 
  
 (b)    Anything herein to the contrary notwithstanding, the Remarketing Agent shall have no obligation to determine whether there is
any limitation under applicable law on the Reset Rate or, if there is any such limitation, the maximum permissible Reset Rate on the Senior Notes and shall rely solely upon written notice from the Company (which the Company agrees to provide prior
to the eighth Business Day before the Initial Remarketing Date) as to whether or not there is any such limitation in any applicable jurisdiction. 
  
 (c)    In the event of a Failed Remarketing or if no Senior Notes are included in Corporate Units and none of the holders of the
Separate Senior Notes elect to have their Senior Notes remarketed in any Remarketing, the applicable interest rate on the Senior Notes will not be reset and will continue to be the Coupon Rate. 
  
 (d)    In the event of a Successful Remarketing, the
Coupon Rate shall be reset at the Reset Rate as determined by the Remarketing Agent under the Remarketing Agreement. 
  
 Section 8.04.    Failed Remarketing.  (a) If, by 4:00 p.m. (New York City time) on any Remarketing Date, the
Remarketing Agent is unable to remarket all of the Remarketed Senior Notes at the Remarketing Price or the Final Remarketing Price, as the case may be, pursuant to the terms and conditions hereof, a Failed Remarketing shall be deemed to have
occurred, and the Remarketing Agent shall so advise by telephone the Depositary, the Purchase Contract Agent and the Company. Whether or not there has been a Failed Remarketing will be determined in the sole reasonable discretion of the Remarketing
Agent. Promptly following any Failed Remarketing, the Remarketing Agent shall return Separate Senior Notes submitted for remarketing, if any, to the Custodial Agent for distribution to the appropriate Holders. 
  
 (b)    The Company shall cause a notice of such Failed
Remarketing to be published in a daily newspaper in the English language of general circulation in the City of New York, which is expected to be The Wall Street Journal. 
  
 Section 8.05.    Put Right.  (a) If there has not been a Successful Remarketing
prior to the Purchase Contract Settlement Date, Holders of Separate Senior Notes and Holders of Senior Notes that are a component of Corporate Units will, subject to this Section 8.05, have the right (the “Put Right”) to require

  

 13 

 the Company to purchase their Senior Notes, on the Purchase Contract Settlement Date, at a price per Senior Note equal to
$25.00 plus accrued and unpaid interest to but excluding the Purchase Contract Settlement Date (the “Put Price”); provided, however, that as of the Purchase Contract Settlement Date, Holders of Senior Notes that are part of a
Corporate Unit with respect to which a Put Right has been automatically exercised under clause (b) below shall be deemed to have elected to pay the Purchase Price for the shares of Common Stock to be issued under the related Purchase Contract from a
portion of the Proceeds of the Put Right of such Senior Notes equal to the Purchase Price in full satisfaction of such Holders’ obligations under the Purchase Contracts, and any remaining amount of the Put Price following satisfaction of the
related Purchase Contract will be paid to such Holder. 
  
 (b)    The Put Right of Holders of Senior Notes that are part of Corporate Units will be automatically exercised unless such Holders (1) prior to 11:00 a.m., New York City time, on the second Business Day immediately
preceding the Purchase Contract Settlement Date, provide written notice to the Purchase Contract Agent of their intention to settle the related Purchase Contract with separate cash, and (2) on or prior to 5:00 P.M., New York City time, on or prior
to the Business Day immediately preceding the Purchase Contract Settlement Date, deliver to the Collateral Agent $25 in cash per Purchase Contract, in each case pursuant to the Purchase Contract Agreement. The Put Price for such Holders of Senior
Notes shall be applied in accordance with Section 8.05(a) above. 
  
 (c)    The Put Right of a Holder of a Separate Senior Note shall only be exercisable upon delivery of a notice to the Trustee by such Holder on or prior to the second Business Day prior to the Purchase Contract
Settlement Date. On or prior to the Purchase Contract Settlement Date, the Company shall deposit with the Trustee immediately available funds in an amount sufficient to pay, on the Purchase Contract Settlement Date, the aggregate Put Price of all
Separate Senior Notes with respect to which a Holder has exercised a Put Right. In exchange for any Separate Senior Notes surrendered pursuant to the Put Right, the Trustee shall then distribute such amount to the Holders of such Separate Senior
Notes. 
  
 Section 8.06.  Additional Event of
Default.  In addition to the events listed as Events of Default in Section 501 of the Base Indenture, it shall be an additional Event of Default with respect to the Senior Notes, if the Company shall not have satisfied its obligation
to pay the Put Price when due with respect to any Separate Senior Note following exercise of the Put Right in accordance with Section 8.05. 
  

 14 

 ARTICLE 9 
 TAX TREATMENT 
  
 Section 9.01.    Tax Treatment.  The Company agrees, and by acceptance of a Corporate Unit, each holder of a Corporate Unit will be deemed to have agreed (1) for United States
federal, state and local income and franchise tax purposes to treat the acquisition of a Corporate Unit as the acquisition of the Senior Note and the Purchase Contract constituting the Corporate Unit and (2) to treat the Senior Note as indebtedness
for United States federal, state and local income and franchise tax purposes. A Holder of Senior Notes may obtain the comparable yield and projected payment schedule for the Senior Notes, determined by the Company pursuant to Treas. Reg. Sec.
1.1275-4, by submitting a written request for such information to the Company at the following address: The PMI Group, Inc., 3003 Oak Road, Walnut Creek, California 94597, Attention: Treasurer. 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, as of
the day and year first written above. 
  

	THE PMI GROUP, INC.
		
	 By:
	 	  

	 	 	 Name:
 Title:

  
 Attest: 
  
  

	
	

	 Name:
 Title:

  

	The Bank of New York, as Trustee
		
	 By:
	 	  

	 	 	 Name:
 Title:

 EXHIBIT A 
  
 [IF THIS SENIOR NOTE IS TO BE A GLOBAL SECURITY, INSERT:] THIS SENIOR NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE OF THE DEPOSITORY TRUST COMPANY. THIS SENIOR NOTE IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR ITS NOMINEE ONLY IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY TO A NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITORY TRUST
COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY TRUST COMPANY. 
  
 UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
  
 THE PMI GROUP, INC. 
  

	[    ]% Senior Notes due [                    ]	 	No.            
	$                            	 	 CUSIP No. [            ]

  
  
 THE PMI GROUP, INC., a corporation organized and existing under the laws of Delaware (hereinafter called the “Company”, which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to                 , or registered assigns, the
principal sum of up to                    
($                    ), as set forth in the Schedule of Increases or Decreases In Senior Note attached hereto, on
[                ] (such date is hereinafter referred to as the “Maturity Date”), and to pay interest thereon from [ 
  

 A-1 

 ], 2003 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, quarterly in
arrears on [                 16], [                 16],
[                 16] and [                 16] of each year, commencing
[                ], 2004, at the rate of [    ]% per annum through and including the day immediately preceding the Reset Effective Date, if any, and
thereafter at the Reset Rate, if any, on the basis of a 360-day year consisting of twelve 30-day months, until the principal hereof is paid or duly provided for or made available for payment, and (to the extent that the payment of such interest
shall be legally enforceable) to pay interest, compounded quarterly, at the rate of [        ]% per annum on any overdue principal and payment of interest through and including the day immediately preceding
the Reset Effective Date, if any, and thereafter at the Reset Rate, if any. The amount of interest payable for any period shorter than a full quarterly period for which interest is computed will be computed on the basis of a 30-day month and, for
any period less than a month, on the basis of the actual number of days elapsed per 30-day month. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Senior Note (or one or more Predecessor Senior Notes) is registered at the close of business on the Record Date for such Interest Payment Date. 
  
 Payment of the principal of and interest on this Senior Note will be made at the office or agency of the Company maintained for that purpose
in the Borough of Manhattan, the City of New York, which shall initially be the Corporate Trust Office of the Trustee, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the Holder at such address as shall appear in the Security Register or by wire transfer to an account appropriately
designated by the Holder entitled to payment. 
  
 Reference is hereby made to the
further provisions of this Senior Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this
Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  
 This Supplemental Indenture shall be governed by the laws of New York. 
  

 A-2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
  
 Dated: 
  

	 THE PMI GROUP, INC.
  

		
	 By:
	 	  

	 	 	 Name:
 Title:

  

	 Attest:.
  

		
	 By:
	 	  

	 	 	 Name:
 Title:

  
  
 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
  
 This is one of the Senior Notes referred to in the within mentioned Indenture. 
  
 Dated:                                 

 

	 The Bank of New York,
 as
Trustee

		
	 By:
	 	  

	 	 	Authorized Signatory

  

 A-3 

 FORM OF REVERSE OF SENIOR NOTE 
  
 This Senior Note is one of a duly authorized issue of securities of the Company (herein called the “Senior
Notes”), issued and to be issued in one or more series under an Indenture, dated as of [                ], between the Company and The Bank of New York, as
Trustee, (herein called the “Trustee”, which term includes any successor trustee)(the “Base Indenture”), as supplemented by the Supplemental Indenture No. 1 between the Company and the Trustee (the
“Supplemental Indenture” and together with the Base Indenture, the “Indenture”), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and are to be, authenticated and delivered. This Senior Note is one of the series designated on the face hereof, limited in
aggregate principal amount to $[                ]. 
  
 If a Special Event shall occur and be continuing, the Company may, at its option, redeem the Senior Notes of this series in whole, but not in part, on any
Interest Payment Date prior to the earlier of the date of a Successful Remarketing and the Purchase Contract Settlement Date, at a price per Senior Note equal to the Redemption Price as set forth in the Indenture. 
  
 If there has not been a Successful Remarketing prior to the Purchase Contract
Settlement Date, the holders of Senior Notes will have the right to require the Company to purchase their Senior Notes on the Purchase Contract Settlement Date, all as more fully described in the Supplemental Indenture. 
  
 The Senior Notes are not entitled to the benefit of any sinking fund and will
not be subject to defeasance. 
  
 If an Event of Default with
respect to Senior Notes of this series shall occur and be continuing, the principal of the Senior Notes of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
  
 The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Senior Notes at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Senior Notes at the time Outstanding. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Senior Notes at the time Outstanding, on behalf of the Holders of all Senior Notes, to waive
compliance by the Company with certain provisions of 
  

 R-1 

 the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Senior Note shall be conclusive and binding upon such Holder and upon all future Holders of this Senior Note and of any Senior Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or
not notation of such consent or waiver is made upon this Senior Note. 
  
 No reference herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Senior Note
at the times, place and rate, and in the coin or currency, herein prescribed. 
  
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Senior Note is registrable in the Securities Register, upon surrender of this Senior Note for registration of
transfer at the office or agency of the Company in any place where the principal of and interest on this Senior Note are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the
Securities Registrar duly executed by the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Senior Notes of this series, of authorized denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees. 
  
 The Senior Notes of
this series are issuable only in registered form without coupons in denominations of $25 and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Senior Notes of this series are
exchangeable for a like aggregate principal amount of Senior Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same. 
  
 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
  
 Prior to due presentment of this Senior Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Senior Note is registered as the
owner hereof for all purposes, whether or not this Senior Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
  
 All terms used in this Senior Note which are defined in the Indenture shall have the meanings assigned to them in the
Indenture. 
  

 R-2 

 This Supplemental Indenture shall be governed by the laws of New York. 
  
 The Company agrees, and by acceptance of a Corporate Unit, each holder of a
Corporate Unit will be deemed to have agreed (1) for United States federal, state and local income and franchise tax purposes to treat the acquisition of a Corporate Unit as the acquisition of the Senior Note and the Purchase Contract constituting
the Corporate Unit and (2) to treat the Senior Note as indebtedness for United States federal, state and local income and franchise tax purposes. A Holder of Senior Notes may obtain the comparable yield and projected payment schedule for the Senior
Notes, determined by the Company pursuant to Treas. Reg. Sec. 1.1275-4, by submitting a written request for it to the Company at the following address: The PMI Group, Inc., 303 Oak Road, Walnut Creek, California 94527; Attention: Treasurer.

  

 R-3 

 ASSIGNMENT 
  
 FOR VALUE RECEIVED, the undersigned assigns and transfers this Senior Note to: 
  

  

  
 (Insert assignee’s social security or taxpayer identification number) 
  

  

  

  
 (Insert address and zip code of assignee) 
  
 and irrevocably appoints 
  

  

  

  
 agent to transfer this Senior Note on the books of the Company. The agent
may substitute another to act for him or her. 
  
 Date:                         
  
 Signature: 
  

	 	

  
  
 Signature
Guarantee:                                      
   
  
 (Sign exactly as your name appears on the other side of this
Senior Note) 

 SIGNATURE GUARANTEE 
  
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements
include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 
  

		
	 By:
	 	  

	 	 	 Name
 Title:

 SCHEDULE OF INCREASES OR DECREASES IN SENIOR NOTE 
  
 The following increases or decreases in a part of this Senior Note have been
made: 
  

	Date	 	 Amount of
 decrease in
 principal
 amount of this
 Senior Note
	 	 Amount of
 increase in
 principal
 amount of this
 Senior Note
	  	 Principal
 amount of this
Senior Note
following such
decrease (or
increase)
	  	 Signature of
authorized
 officer of
 Trustee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}]]