Document:

Pledge Agreement

 Exhibit 10.32 
  
 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 November 3, 2003 

 TABLE OF CONTENTS 
  

					
	 	  	PAGE

	ARTICLE 1	  	 
	DEFINITIONS	  	 
			
	 Section 1.01.
	 	 Definitions
	  	1
		
	ARTICLE 2	  	 
	PLEDGE	  	 
			
	 Section 2.01.
	 	 Pledge
	  	5
	 Section 2.02.
	 	 Control
	  	5
	 Section 2.03.
	 	 Termination
	  	5
		
	ARTICLE 3	  	 
	DISTRIBUTIONS ON PLEDGED COLLATERAL	  	 
			
	 Section 3.01.
	 	 Income and Distributions
	  	6
	 Section 3.02.
	 	 Principal Payments Following Termination Event
	  	6
	 Section 3.03.
	 	 Principal Payments Prior to or on Purchase Contract Settlement Date.
	  	6
	 Section 3.04.
	 	 Payments to Purchase Contract Agent
	  	7
	 Section 3.05.
	 	 Assets Not Properly Released
	  	7
		
	ARTICLE 4	  	 
	CONTROL	  	 
			
	 Section 4.01.
	 	 Establishment of Collateral Account
	  	7
	 Section 4.02.
	 	 Treatment as Financial Assets
	  	8
	 Section 4.03.
	 	 Sole Control by Collateral Agent
	  	8
	 Section 4.04.
	 	 Securities Intermediary’s Location
	  	8
	 Section 4.05.
	 	 No Other Claims
	  	8
	 Section 4.06.
	 	 Investment and Release
	  	8
	 Section 4.07.
	 	 Statements and Confirmations
	  	9
	 Section 4.08.
	 	 Tax Allocations
	  	9
	 Section 4.09.
	 	 No Other Agreements
	  	9
	 Section 4.10.
	 	 Powers Coupled with an Interest
	  	9
	 Section 4.11.
	 	 Waiver of Lien; Waiver of Set-off
	  	9

  

 i 

					
	ARTICLE 5	  	 
	 INITIAL DEPOSIT; CREATION OF
TREASURY UNITS AND RECREATION OF
 CORPORATE
UNITS
	  	 
	 Section 5.01.
	 	 Initial Deposit of Senior Notes.
	  	9
	 Section 5.02.
	 	 Creation of Treasury Units.
	  	10
	 Section 5.03.
	 	 Recreation of Corporate Units.
	  	11
	 Section 5.04.
	 	 Termination Event.
	  	12
	 Section 5.05.
	 	 Cash Settlement.
	  	14
	 Section 5.06.
	 	 Early Settlement and Cash Merger Early Settlement
	  	15
	 Section 5.07.
	 	 Application of Proceeds in Settlement of Purchase Contracts.
	  	16
		
	ARTICLE 6	  	 
	VOTING RIGHTS — PLEDGED SENIOR NOTES	  	 
			
	 Section 6.01.
	 	 Voting Rights
	  	18
		
	ARTICLE 7	  	 
	RIGHTS AND REMEDIES	  	 
	 Section 7.01.
	 	 Rights and Remedies of the Collateral Agent.
	  	19
	 Section 7.02.
	 	 Special Event Redemption
	  	20
	 Section 7.03.
	 	 Successful Initial Remarketing
	  	20
	 Section 7.04.
	 	 Substitutions
	  	21
		
	ARTICLE 8	  	 
	REPRESENTATIONS AND WARRANTIES; COVENANTS	  	 
			
	 Section 8.01.
	 	 Representations and Warranties
	  	21
	 Section 8.02.
	 	 Covenants
	  	22
		
	ARTICLE 9	  	 
	THE COLLATERAL AGENT, THE CUSTODIAL AGENT AND
THE SECURITIES INTERMEDIARY	  	 
			
	 Section 9.01.
	 	 Appointment, Powers and Immunities
	  	22
	 Section 9.02.
	 	 Instructions of the Company
	  	23
	 Section 9.03.
	 	 Reliance by Collateral Agent, Custodial Agent and Securities Intermediary
	  	24
	 Section 9.04.
	 	 Certain Rights
	  	24
	 Section 9.05.
	 	 Merger, Conversion, Consolidation or Succession to Business
	  	24
	 Section 9.06.
	 	 Rights in Other Capacities
	  	25
	 Section 9.07.
	 	 Non-reliance on Collateral Agent, the Custodial Agent and Securities Intermediary
	  	25
	 Section 9.08.
	 	 Compensation and Indemnity
	  	25
	 Section 9.09.
	 	 Failure to Act
	  	26

  

 ii 

					
	 Section 9.10.
	 	 Resignation of Collateral Agent, the Custodial Agent and Securities Intermediary.
	  	27
	 Section 9.11.
	 	 Right to Appoint Agent or Advisor
	  	28
	 Section 9.12.
	 	 Survival
	  	29
	 Section 9.13.
	 	 Exculpation
	  	29
		
	ARTICLE 10	  	 
	AMENDMENT	  	 
			
	 Section 10.01.
	 	 Amendment Without Consent of Holders
	  	29
	 Section 10.02.
	 	 Amendment with Consent of Holders
	  	29
	 Section 10.03.
	 	 Execution of Amendments
	  	30
	 Section 10.04.
	 	 Effect of Amendments
	  	31
	 Section 10.05.
	 	 Reference of Amendments
	  	31
		
	ARTICLE 11	  	 
	MISCELLANEOUS	  	 
			
	 Section 11.01.
	 	 No Waiver
	  	31
	 Section 11.02.
	 	 Governing Law; Submission to Jurisdiction
	  	31
	 Section 11.03.
	 	 Notices
	  	32
	 Section 11.04.
	 	 Successors and Assigns
	  	32
	 Section 11.05.
	 	 Counterparts
	  	32
	 Section 11.06.
	 	 Severability
	  	32
	 Section 11.07.
	 	 Expenses, Etc
	  	33
	 Section 11.08.
	 	 Security Interest Absolute
	  	33
	 Section 11.09.
	 	 Notice of Special Event, Special Event Redemption and Termination Event
	  	34

  
 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
	Exhibit G	 	–  Instruction to Custodial Agent Regarding Withdrawal From Remarketing

  

 iii 

 PLEDGE AGREEMENT 
  
 PLEDGE AGREEMENT dated as of November 3, 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
12,000,000 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 (“Common Stock”), equal to the Settlement Rate and (b) a Senior Note. 
  
 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 
  
 (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”. 
  

 2 

 “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 (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, 
  

 3 

 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. 
  
 “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. 
  

 4 

 “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 November 15, 2006 (CUSIP No. 912820GQ4). 
  
 “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. 
  

 5 

 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. 021000018, A/C No. 290453, 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. 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. 
  
 (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. 
  

 6 

 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; 
  
 (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 
  

 7 

 (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. 
  
 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 
  

 8 

 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-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 
  

 9 

 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 Securities
Intermediary, 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, 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, 
  

 10 

 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 16,000 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. 
  
 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 
  

 11 

 (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 16,000 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. 
  
 (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, 
  

 12 

 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 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 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. 
  

 13 

 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 that such Holder has elected, in accordance with the procedures specified in Section 5.02(b)(i) or 5.02(e)(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 or the first Business Day, as applicable, 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 or Pledged Applicable Ownership Interests, as applicable, as to 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 or Pledged Applicable Ownership Interests, 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 
  

 14 

 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 has received with respect to the Cash Settlement of
Corporate Units and (ii) the amount of Pledged Senior Notes to be remarketed in the Final Remarketing pursuant to Section 5.02(c)(i) 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 and (ii) 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)(iii) 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 
  

 15 

 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 16,000 Corporate Units. 
  
 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. 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 and to have elected to have a portion of the Proceeds of the Put Right set-off against such Holder’s obligation to pay the aggregate
Purchase Price for the shares of Common Stock to be issued under the Purchase Contracts underlying such Corporate Units in full satisfaction of such Holders’ obligations under the Purchase Contracts. Following such set-off, the Holder’s
obligations to pay the Purchase Price for the 
  

 16 

 shares of Common Stock 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 transfer the Pledged Senior Notes to the Company. Thereafter, the Collateral Agent shall promptly remit the remaining Proceeds of the Holder’s
exercise of the Put Right in excess of the aggregate Purchase Price for the shares of Common Stock to be issued under such Purchase Contracts to the Purchase Contract Agent for payment to the Holder of the Corporate Units to which such Senior Notes
relate. 
  
 (b) A Holder of a Treasury Unit or a Holder of 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, 
  

 17 

 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 as are prepared by the Company and delivered to the Purchase Contract Agent with respect to the Pledged Senior Notes. 
  

 18 

 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. 
  
 (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 
  

 19 

 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 obligation of all Holders of Corporate Units to purchase Common 
  

 20 

 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 perfection of that interest and assuming the establishment and exercise of control pursuant to Article 4 hereof); and 
  

 21 

 (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 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 
  

 22 

 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 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. 
  

 23 

 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. 
  
 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 
  

 24 

 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. 
  
 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, 
  

 25 

 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 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 
  

 26 

 (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. 
  
 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, 
  

 27 

 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 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. 
  

 28 

 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; 
  
 (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 
  

 29 

 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 
  
 (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 
  

 30 

 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
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 
  

 31 

 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 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. 
  

 32 

 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, 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 
  

 33 

 (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 

 

 34 

 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:
	 	 /s/ Donald P. Lofe, Jr.

	 	 By:
	 	 /s/ Michael Pitfick

	 	 	 Name:
	 	 Donald P. Lofe, Jr.
	 	 	 	 Name:
	 	 Michael Pitfick

	 	 	 Title:
	 	 Executive Vice President and
 Chief Financial Officer
	 	 	 	 Title:
	 	 Assistant Vice President

		
	 Address for Notices:
	 	 Address for Notices:

		
	 The PMI Group, Inc.
 303 Oak Road
 Walnut Creek, California 94597
 Telecopier No.: (925) 658-6175
 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:
	 	 /s/ Michael Pitfick

	 	 	 Name:
	 	 Michael Pitfick

	 	 	 Title:
	 	 Assistant Vice President

  

	
	 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 Collateral 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 November 3, 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. 
  
 Date: 
  

 A-1 

			
	 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 November 3, 2003 (the “Pledge Agreement”), among the Company, you, as Collateral Agent, as Securities Intermediary and as Custodial Agent 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. 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 Collateral 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 November 3, 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 an equal value of Value of Pledged Treasury Securities with respect to              Treasury Units 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 an equal Value of Treasury Securities in accordance with Section 5.03 of the Pledge Agreement. 
  

							
	 	 	 	 	The Bank of New York, as Purchase Contract Agent and as attorney-in-fact of the Holders from time to time of the Units
				
	 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:                 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 November 3, 2003 (the “Pledge Agreement”), among the Company, you, as Securities Intermediary, Custodial Agent and Collateral Agent 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. Capitalized terms used herein but not defined shall have the meanings 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 an equal Value of Treasury Securities or
security entitlements with respect thereto relating to              Treasury Units of the Holder 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 November 3, 2003 (the “Pledge Agreement”), by and among you, the Company, and The Bank
of New York, 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 November 15, 2006 (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 and
(ii) 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 November 15, 2008 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 November 3, 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 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 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) 
  

 F-1 

 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 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. 
  

							
	 Date:
	 	  

	 	 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) 
  
 (Tax Identification or Social Security Number) 
  

 F-3 

 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 November 15, 2008 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 November 3, 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-1Remarketing Agreement

 Exhibit 10.33 
  
 REMARKETING AGREEMENT 
  
 November 3, 2003 
  
 Banc of America Securities LLC 
 9 West 57th Street 
 New York, New York 10019 
  
 Ladies and Gentlemen: 
  
 This Agreement is dated as of November 3, 2003 (the “Agreement”) among The PMI Group, Inc., a Delaware
corporation (the “Company”), Banc of America Securities LLC (“Banc of America”) and The Bank of New York, a New York banking corporation, not individually but solely as Purchase Contract Agent (the “Purchase
Contract Agent”) and as attorney-in-fact of the holders of Purchase Contracts (as defined in the Purchase Contract Agreement referred to below). 
  
 Section 1. Definitions.  
  
 (a) Capitalized terms used and not defined in this Agreement shall have the meanings set forth in the Purchase Contract Agreement, dated as of November 3,
2003, between the Company and The Bank of New York, as Purchase Contract Agent, as amended from time to time (the “Purchase Contract Agreement”). 
  
 (b) As used in this Agreement, the following terms have the following meanings: 
  
 “Preliminary Prospectus” means any preliminary prospectus
relating to the Remarketed Senior Notes included in the Registration Statement or supplementing such Registration Statement pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by reference therein as of the date of
such Preliminary Prospectus; and any reference to any amendment or supplement to such Preliminary Prospectus shall be deemed to refer to and include any documents filed after the date of such Preliminary Prospectus under the Exchange Act, and
incorporated by reference in such Preliminary Prospectus. 
  
 “Prospectus” means the prospectus relating to the Remarketed Senior Notes included in the Registration Statement, in the form in which it was first used by the Remarketing Agent to confirm sales of the Remarketed Senior
Notes in the Remarketing, including the documents incorporated by reference therein as of the date of such Prospectus; and any reference to any amendment or supplement to such Prospectus shall be deemed to refer to and include any documents filed
after the date of such Prospectus under the Exchange Act, and incorporated by reference in such Prospectus. 
  
 “Registration Statement” means a registration statement under the Securities Act of 1933, as amended (the “Securities
Act”) prepared by the Company pursuant to Section 5 

 hereunder covering, inter alia, the Remarketing of the Remarketed Senior Notes, including all exhibits thereto and
the documents incorporated by reference in the prospectus contained in such registration statement, and any post-effective amendments thereto. 
  
 “Remarketed Senior Notes” means the Pledged Senior Notes and the Separate Senior Notes, if any, subject to Remarketing as identified to
the Remarketing Agent by the Purchase Contract Agent and the Custodial Agent, respectively, after 11:00 a.m., New York City time, on the Business Day immediately preceding the applicable Remarketing Date, and shall include: (a) (i) in the case of
the Initial Remarketing, the Pledged Senior Notes and (ii) in the case of the Final Remarketing, the Senior Notes of the Holders of Corporate Units who have not notified the Purchase Contract Agent on or prior to 5:00 p.m., New York Time, on the
fifth Business Day immediately preceding the Purchase Contract Settlement Date of their intention to effect a Cash Settlement of the related Purchase Contracts pursuant to the terms of the Purchase Contract Agreement or who have so notified the
Purchase Contract Agent but failed to make the required cash payment on the fourth Business Day immediately preceding the Purchase Contract Settlement Date pursuant to the terms of the Purchase Contract Agreement, and (b) the Separate Senior Notes
of the holders of Separate Senior Notes, if any, who have elected to have their Separate Senior Notes be remarketed in such Remarketing pursuant to the terms of the Purchase Contract Agreement. 
  
 “Remarketing” means the remarketing of the Remarketed Senior
Notes pursuant to this Remarketing Agreement. 
  
 “Remarketing Agent” means Banc of America or any successor remarketing agent appointed by the Company pursuant to Section 10 hereof. 
  

“Remarketing Date” means either the Initial Remarketing Date (as defined herein) or the Final Remarketing Date (as defined herein), as
context requires. 
  
 “Remarketing Materials”
means the Preliminary Prospectus, the Prospectus or any other information furnished by the Company to the Remarketing Agent for distribution to investors in connection with the Remarketing. 
  
 “Senior Notes” means the senior notes due November 15, 2008
of the Company. 
  
 “Transaction Documents” means
this Agreement, the Purchase Contract Agreement, the Pledge Agreement and the Indenture, in each case as amended or supplemented from time to time. 
  
 Section 2. Appointment and Obligations of the Remarketing Agent.  
  
 (a) The Company hereby appoints Banc of America as the exclusive Remarketing Agent, and, subject to the terms and conditions
set forth herein, Banc of America hereby accepts appointment as Remarketing Agent, for the purpose of (i) Remarketing the Remarketed Senior Notes on behalf of the holders thereof, (ii) determining, in consultation with the Company, in the manner
provided for herein and in the Purchase Contract Agreement and the Indenture, the Reset Rate for the Senior Notes, and (iii) performing such other duties as are assigned to the Remarketing Agent in the Transaction Documents. 
  

 2 

 (b) Unless a Special Event Redemption has occurred prior to such date, on the third Business Day
immediately preceding August 15, 2006 (the “Initial Remarketing Date”), the Remarketing Agent shall use commercially reasonable efforts to remarket (based on the Reset Rate) (the “Initial Remarketing”) the
Remarketed Senior Notes, at a price (the “Remarketing Price”) equal to approximately 100.25% (or, if the Remarketing Agent is unable to remarket the Remarketed Senior Notes at such a rate, at a rate below 100.25% in the discretion
of the Remarketing Agent, but in no event less than 100.00%) of the sum of the Treasury Portfolio Purchase Price and the Separate Senior Notes Purchase Price. 
  

(c) In the case of a Failed Initial Remarketing and unless a Special Event Redemption has occurred prior to such date, on the third Business Day
immediately preceding the Purchase Contract Settlement Date (the “Final Remarketing Date”), the Remarketing Agent shall use its commercially reasonable efforts to remarket (based on the Reset Rate) (the “Final
Remarketing”) the Remarketed Senior Notes at a price (the “Final Remarketing Price”) equal to approximately 100.25% (or, if the Remarketing Agent is unable to remarket the Remarketed Senior Notes at such a rate, at a
rate below 100.25% in the discretion of the Remarketing Agent, but in no event less than 100.00%)of the aggregate principal amount of the Remarketed Senior Notes being remarketed in such Final Remarketing. It is understood and agreed that the
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 Notes Purchase Price; in
the case of the Initial Remarketing, and at least 100% of the aggregate principal amount of the Remarketed Senior Notes, in the case of the Final Remarketing. 
  

(d) In connection with each Remarketing, the Remarketing Agent shall determine, in consultation with the Company, the rate per annum, rounded to the
nearest one-thousandth (0.001) of one percent per annum, that the Senior Notes should bear (the “Reset Rate”) in order for the Remarketed Senior Notes to have an aggregate market value equal to the Remarketing Price or the Final
Remarketing Price, as the case may be, and that in the sole reasonable 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. 
  
 (e) In the event of a Failed Remarketing or if no
Senior Notes are included in Corporate Units, and if none of the holders of the Separate Senior Notes elect to have Senior Notes be remarketed in such Remarketing, the applicable interest rate on the Senior Notes will not be reset and will continue
to be the Coupon Rate set forth in the Indenture, as supplemented from time to time. 
  
 (f) If, by 4:00 p.m. (New York City time) on the applicable 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. 
  

 3 

 (g) In the event of a Successful Remarketing, by approximately 4:30 p.m. (New York City time) on the
applicable Remarketing Date, the Remarketing Agent shall advise, by telephone: 
  
 (i) the Depositary, the Purchase Contract Agent and the Company of the Reset Rate determined by the Remarketing Agent in such Remarketing
and the number of Remarketed Senior Notes sold in such Remarketing; 
  
 (ii) each purchaser (or the Depositary Participant thereof) of Remarketed Senior Notes of the Reset Rate and the number of Remarketed Senior Notes such purchaser is to purchase; and 
  
 (iii) each such purchaser to give instructions to its
Depositary Participant to pay the purchase price on the third Business Day immediately following the date of such Successful Remarketing in same-day funds against delivery of the Remarketed Senior Notes purchased through the facilities of the
Depositary. 
  
 The Remarketing Agent shall also, if required by the Securities
Act or the rules and regulations promulgated thereunder, deliver to each purchaser a Prospectus in connection with the Remarketing. 
  
 (h) After deducting any fees specified in Section 4 below, the proceeds from a Successful Remarketing (i) with respect to the Senior Notes that are
components of the Corporate Units, shall be paid to the Collateral Agent in accordance with Sections 5.07 and 7.03 of the Pledge Agreement, as the case may be, and Section 5.02 of the Purchase Contract Agreement and (ii) with respect to the Separate
Senior Notes, shall be paid to the Custodial Agent for payment to the holders of such Separate Senior Notes in accordance with Section 5.02 of the Purchase Contract Agreement and Sections 5.07 and 7.03 of the Pledge Agreement. 
  
 (i) The right of each holder of Separate Senior Notes or Corporate Units to
have Remarketed Senior Notes remarketed and sold on any Remarketing Date shall be subject to the conditions that (i) the Remarketing Agent conducts a Remarketing pursuant to the terms of this 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, based on the Reset Rate, and (iv)
such purchaser or purchasers deliver the purchase price therefor to the Remarketing Agent as and when required. 
  
 (j) It is understood and agreed that the Remarketing Agent shall not have any obligation whatsoever to purchase any Remarketed Senior Notes, whether in
the Remarketing or otherwise, and shall in no way be obligated to provide funds to make payment upon tender of Senior Notes for Remarketing or to otherwise expend or risk its own funds or incur or to be exposed to financial liability in the
performance of its duties under this Agreement, and without limitation of the foregoing, the Remarketing Agent shall not be deemed an underwriter of the Remarketed Senior Notes. The Company shall similarly not be obligated in any case to provide
funds to make payment upon tender of the Senior Notes for Remarketing. 
  

 4 

 Section 3. Representations and Warranties of the Company. The Company represents and warrants (i)
on and as of the date any Remarketing Materials are first distributed in connection with the Remarketing (the “Commencement Date”) and (ii) on and as of the applicable Remarketing Date, in each case except as disclosed in writing to
the Remarketing Agent by the Company prior to the applicable date, that: 
  
 (a) Each of the representations and warranties of the Company as set forth in Section 1 (except for paragraphs (a) and (z) and the last sentence of paragraph (y) of such section) of the Underwriting Agreement dated as
of October 28, 2003 relating to the issuance of Units by the Company (the “Underwriting Agreement”) among the Company and the Underwriters identified in Schedule A thereto, is true and correct as if made on each of the dates
specified above; provided that for purposes of this Section 3(a), (i) any reference in such sections of the Underwriting Agreement to the “Underwriter” or “Underwriters” or the “Representative” or
“Representatives” shall be deemed to refer to the Remarketing Agent, (ii) the “Designated Securities” shall be deemed to refer to the Remarketed Senior Notes, (iii) the “Registration Statement”, the
“Prospectus” or the “Preliminary Prospectus” shall be deemed to refer to such terms as defined herein, (iv) the “First Closing Date” and “Optional Closing Date” shall be each deemed to refer to the settlement
date for the applicable Remarketing Date, (v) “this Agreement”, the “Underwriting Agreement”, “hereof”, “herein” and all references of similar import, shall be deemed to mean and refer to this Remarketing
Agreement and (vi) “the date hereof”, “the date of this Agreement” and all similar references shall be deemed to refer to the date of this Remarketing Agreement. 
  
 (b) The Registration Statement, if any, in the form delivered prior to the applicable date set forth in the first paragraph
of this Section 3 or to be delivered to the Remarketing Agent, has been declared effective by the Securities and Exchange Commission (the “Commission”) under the Securities Act. The Company has complied to the Commission’s
satisfaction with all requests of the Commission for additional or supplemental information. No stop order suspending the effectiveness of the Registration Statement is in effect and no proceedings for such purpose have been instituted or are
pending or, to the best knowledge of the Company, are contemplated or threatened by the Commission. 
  
 (c) The documents incorporated or deemed to be incorporated by reference in the Prospectus, if any, at the time they were or hereafter are filed with the
Commission, complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission thereunder, and, when read together with the other information in the Prospectus, at the time the Registration
Statement and any amendments thereto became effective, and at the Commencement Date, applicable Remarketing Date and applicable settlement date, will not contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to any statements
or omissions made in reliance upon and in conformity with information relating to the Remarketing Agent furnished in writing to the Company by the Remarketing Agent or its counsel expressly for use in the Prospectus. 
  

 5 

 (d) The Registration Statement, if any, complies, and any post-effective amendment thereto, any Rule
462(b) Registration Statement and any Remarketing Materials (and any amendment or supplement thereto) will comply in all material respects with the requirements of the Securities Act and the rules and regulations promulgated thereunder, and the
Trust Indenture Act, and the Registration Statement as amended and supplemented by the Prospectus, any post-effective amendment thereto and any Rule 462(b) Registration Statement do not and will not, as of the applicable effective date thereof,
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus, as amended or supplemented, as of its date, and any further
supplements to the Prospectus, as of the applicable filing date as to any such supplement and any Remarketing Materials (and any amendment or supplement thereto), as of the date of such Remarketing Materials and the Remarketing Date, do not and will
not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. No representation and warranty is
made as to any statement of eligibility on Form T-1 filed or incorporated by reference as part of the Registration Statement, the Prospectus or the Remarketing Materials, or as to statements in or omissions from the Registration Statement, the
Prospectus or the Remarketing Materials made in reliance upon and in conformity with written information furnished to the Company by the Remarketing Agent. 
  
 (e) This Agreement has been duly authorized, executed and delivered by the Company. 
  
 Section 4. Fees.  
  
 (a) In the event of a Successful Initial Remarketing of the Remarketed Senior Notes, the Remarketing Agent may retain as a remarketing fee an amount equal
to 25 basis points (.25%) of the sum of the Treasury Portfolio Purchase Price and the Separate Senior Note Purchase Price from any proceeds of the Successful Remarketing in excess of the Treasury Portfolio Purchase Price plus the Separate Senior
Notes Purchase Price. To the extent that such excess proceeds are less than 25 basis points of the Treasury Portfolio Price plus the Separate Senior Notes Purchase Price, the Company shall pay an amount, as an additional remarketing fee, to the
Remarketing Agent equal to such shortfall (such amount, together with the amount in the previous sentence, the “Remarketing Fee”). 
  
 (b) In the event of a Successful Final Remarketing of the Remarketed Senior Notes, the Remarketing Agent may retain as a remarketing fee an amount equal
to 25 basis points (.25%) of the aggregate principal amount of the remarketed Pledged Senior Notes and Separate Senior Notes (if any) from any proceeds of the Successful Final Remarketing in excess of the aggregate principal amount of the remarketed
Pledged Senior Notes and Separate Senior Notes. To the extent that such excess proceeds are less than 25 basis points of the aggregate principal amount of the remarketed Pledged Senior Notes and Separate Senior Notes, the Company shall pay an
amount, as an additional remarketing fee, to the Remarketing Agent equal to such shortfall (such amount, together with the amount in the previous sentence, the “Final Remarketing Fee”). 
  
 Section 5. Covenants of the Company. If and to the extent the
Remarketed Senior Notes are required, in connection with the Remarketing (in the view of counsel, which need not be in the form of a written opinion, for either the Remarketing Agent or the Company), to be registered under the Securities Act as in
effect at the time of the Remarketing, the Company covenants and agrees as follows: 
  
 (a) The Company shall prepare the Registration Statement and the Prospectus, in a form approved by the Remarketing Agent, which approval shall not be unreasonably withheld, shall file any such Prospectus pursuant to
the Securities Act within the period required by the Securities Act and the rules and regulations thereunder and shall use commercially reasonable efforts to cause the Registration Statement to be declared effective by the Commission prior to the
second Business Day immediately preceding the applicable Remarketing Date. 
  

 6 

 (b) The Company shall file promptly with the Commission any amendment to the Registration Statement or
the Prospectus or any supplement to the Prospectus that may, in the reasonable judgment of the Company or the Remarketing Agent, be required by the Securities Act or requested by the Commission. 
  
 (c) The Company shall advise the Remarketing Agent, promptly after it
receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any supplement to the Prospectus or any amended Prospectus has been filed and to furnish the Remarketing Agent with copies
thereof. 
  
 (d) The Company shall file promptly all reports and
any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for so long as the delivery of a
Prospectus is required in connection with the offering or sale of the Remarketed Senior Notes. 
  
 (e) The Company shall advise the Remarketing Agent, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of the Prospectus, of
the suspension of the qualification of any of the Remarketed Senior Notes for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or
supplementing of the Registration Statement or the Prospectus or for additional information, and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Prospectus or suspending any such qualification,
to use promptly commercially reasonable efforts to obtain its withdrawal. 
  
 (f) The Company shall furnish promptly to the Remarketing Agent such copies of the following documents as the Remarketing Agent shall reasonably request: (A) conformed copies of the Registration Statement as
originally filed with the Commission and each amendment thereto (in each case excluding exhibits); (B) the Preliminary Prospectus and any amended or supplemented Preliminary Prospectus; (C) the Prospectus and any amended or supplemented Prospectus;
and (D) any document incorporated by reference in the Prospectus (excluding exhibits thereto); and, if at any time when delivery of a prospectus is required in connection with the Remarketing, (i) any event shall have occurred as a result of which
the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made
when such Prospectus is delivered, not misleading, 
  

 7 

 or (ii) if in the opinion of the Remarketing Agent or counsel for the Remarketing Agent it shall otherwise be necessary
during such same period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order to comply with the Securities Act or the Exchange Act, to in the case of (i) notify the
Remarketing Agent and, upon its request in each case, to file such document and to prepare and furnish without charge to the Remarketing Agent and to any dealer in securities as many copies as the Remarketing Agent may from time to time reasonably
request of an amended or supplemented Prospectus that will correct such statement or omission or effect such compliance. 
  
 (g) Prior to filing with the Commission (A) any amendment to the Registration Statement or supplement to the Prospectus (other than any amendment or
supplement resulting solely from the incorporation by reference of any report under the Exchange Act) or (B) any Prospectus pursuant to Rule 424 under the Securities Act, the Company shall furnish a copy thereof to the Remarketing Agent and counsel
to the Remarketing Agent; and shall not file any such amendment or supplement that shall be reasonably disapproved by the Remarketing Agent promptly after reasonable notice. 
  
 (h) As soon as practicable, but in any event not later than eighteen months, after the effective date of the Registration
Statement, the Company shall make “generally available to its security holders” an “earnings statement” of the Company and its subsidiaries (which need not be audited) complying with Section 11(a) of the Securities Act and the
rules and regulations thereunder (including, at the option of the Company, Rule 158 under the Securities Act). The terms “generally available to its security holders” and “earnings statement” shall have the meanings set forth in
Rule 158 under the Securities Act. 
  
 (i) The Company shall take
such action as the Remarketing Agent may reasonably request in order to qualify the Remarketed Senior Notes for offer and sale under the securities or “blue sky” laws of such jurisdictions as the Remarketing Agent may reasonably request;
provided that in no event shall the Company be required to qualify as a foreign corporation or to file a general consent to service of process in any jurisdiction or to subject itself to taxation in any jurisdiction in which it is not
otherwise subject. 
  
 (j) The Company shall furnish the
Remarketing Agent with such information and documents as the Remarketing Agent may reasonably request in connection with the transactions contemplated hereby, and to make reasonably available to the Remarketing Agent and any accountant, attorney or
other advisor retained by the Remarketing Agent such information that parties would customarily require in connection with a due diligence investigation conducted in accordance with applicable securities laws and to cause the Company’s
officers, directors, employees and accountants to participate in all such discussions and to supply all such information reasonably requested by any such Person in connection with such investigation. 
  
 Section 6. Payment of Expenses. The Company agrees to pay (a) all
costs incident to the preparation and printing of the Registration Statement, if any, any Prospectus and any other Remarketing Materials and any amendments or supplements thereto, (b) all costs of distributing the Registration Statement, if any, any
Prospectus and any other Remarketing Materials and any amendments or supplements thereto, (c) any fees and expenses of qualifying the Remarketed Senior Notes under the securities laws of the several jurisdictions as provided in Section 5(i) and

  

 8 

 of preparing, printing and distributing a Blue Sky Memorandum, if any (including any related fees and expenses of counsel
to the Remarketing Agent), (d) all other costs and expenses incident to the performance of the obligations of the Company hereunder and the Remarketing Agent hereunder and (e) the reasonable fees and expenses of counsel to the Remarketing Agent in
connection with its duties hereunder. 
  
 Section 7. Conditions
to the Remarketing Agent’s Obligations. The obligations of the Remarketing Agent hereunder shall be subject to the following conditions: 
  
 (a) The representations and warranties of the Company contained herein shall be true and correct in all material respects on and as of the applicable
Remarketing Date and the settlement date for the applicable Remarketing Date, without giving effect to any disclosure by the Company contemplated by the preamble to Section 3, and the Company, the Purchase Contract Agent and the Collateral Agent
shall have performed in all material respects all covenants and agreements contained herein or in the Purchase Contract Agreement or Pledge Agreement to be performed on their part at or prior to such date. 
  
 (b) During the period commencing on a date prior to the Remarketing, chosen
by the Remarketing Agent in its reasonable discretion, until (and including) the Remarketing Date, there shall not have occurred any of the following: (i) Trading generally shall have been suspended or materially limited on the New York Stock
Exchange, (ii) trading of any securities of the Company shall have been materially suspended or limited on the New York Stock Exchange, (iii) a banking moratorium shall have been declared by either Federal or New York State authorities, or (iv)
there shall have occurred a material adverse change in the financial markets, any escalation of hostilities involving the United States or the declaration by the United States of a national emergency or war, if the effect of any such event specified
in this clause (b) in the judgment of the Remarketing Agent makes it impracticable or inadvisable to proceed with the Remarketing or the delivery of the Remarketed Senior Notes on the terms and in the manner contemplated in the Transaction
Documents. 
  
 (c) The Prospectus, if any, shall have been filed
with the Commission pursuant to Rule 424(b) in the manner and within the time period required by Rule 424(b) under the Securities Act; no stop order suspending the effectiveness of the Registration Statement, any Rule 462(b) Registration Statement,
or any post-effective amendment to the Registration Statement shall be in effect and no proceedings for such purpose shall have been instituted or threatened by the Commission and any request of the Commission for inclusion of additional information
in the Registration Statement or the Prospectus or otherwise shall have been complied with. 
  
 (d) The Company shall have furnished to the Remarketing Agent a certificate, dated the applicable Remarketing Date, of the Chief Executive Officer and the Treasurer satisfactory to the Remarketing Agent stating that:
(1) no order suspending the effectiveness of the Registration Statement, if any, or prohibiting the sale of the Remarketed Senior Notes is in effect, and no proceedings for such purpose are pending before or, to the knowledge of such officers,
threatened by the Commission; (2) the representations and warranties of the Company in Section 3 are true and correct on and as of the applicable Remarketing Date without giving effect to any disclosure by the Company contemplated by the preamble to
Section 3 and the Company has performed in all material respects all covenants and agreements contained herein to be performed 
  

 9 

 on its part at or prior to such Remarketing Date; and (3) the Registration Statement, if any, as of its effective date,
did not contain any untrue statement of a material fact and did not omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and the Prospectus or any other Remarketing Material did
not, as of the date of such Prospectus or such Remarketing Material, if any, contain any untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. 
  
 (e)
On the applicable Remarketing Date, the Remarketing Agent shall have received a letter addressed to the Remarketing Agent and dated such date, in form and substance satisfactory to the Remarketing Agent, from the Company’s independent
accountants reasonably acceptable to the Remarketing Agent, containing statements and information of the type ordinarily included in accountants’ “comfort letters” with respect to the financial statements and certain financial
information of the Company and its consolidated subsidiaries contained in the Remarketing Materials, if any. 
  
 (f) The General Counsel for the Company shall have furnished to the Remarketing Agent its opinion, addressed to the Remarketing Agent and dated the
Remarketing Date, in form and substance reasonably satisfactory to the Remarketing Agent addressing such matters as are set forth in such counsel’s opinion furnished pursuant to Section 5(e) of the Underwriting Agreement, adapted as necessary
to relate to the securities being remarketed hereunder and to the Remarketing Materials, if any, or to any changed circumstances or events occurring subsequent to the date of this Agreement, such adaptations being reasonably acceptable to counsel to
the Remarketing Agent. 
  
 (g) Sullivan & Cromwell LLP, or
such other counsel reasonably acceptable to the Remarketing Agent, shall have furnished to the Remarketing Agent its written opinion and letter, as special counsel to the Company, addressed to the Remarketing Agent and dated such Delivery Date, in
form and substance satisfactory to the Remarketing Agent in form and substance satisfactory to the Remarketing Agent as set forth in Exhibit A to the Underwriting Agreement. 
  
 (h) Davis Polk & Wardwell, or such other counsel reasonably acceptable to the Remarketing Agent, shall have furnished to
the Remarketing Agent its opinion, as counsel to the Remarketing Agent, addressed to the Remarketing Agent and dated the applicable Remarketing Date, in form and substance satisfactory to the Remarketing Agent. 
  
 (i) During the period commencing on a date prior to the Remarketing, chosen
by the Remarketing Agent in its reasonable discretion, until (and including) the Remarketing Date and prior to the applicable Remarketing Date, there shall not have occurred any downgrading, nor shall any notice have been given of any intended or
potential downgrading or of any review for a possible change that does not indicate an improvement, in the rating accorded any of the Company’s securities by any “nationally recognized statistical rating organization,” as such term is
defined for purposes of Rule 436(g)(2) under the Securities Act. 
  
 (j) The Senior Notes shall not have been called for redemption following the occurrence of a Special Event. 
  

 10 

 If any condition specified in this Section 7 is not satisfied when and as required to be satisfied, this
Agreement may be terminated by the Remarketing Agent by notice to the Company at any time on or prior to the applicable Remarketing Date, which termination shall be without liability on the part of any party to any other party, except that Section
6, Section 8 and Section 9 shall at all times be effective and shall survive such termination. 
  
 Section 8. Indemnification.  
  
 (a) The Company agrees to indemnify and hold harmless the Remarketing Agent, its affiliates, their respective officers, directors, employees, representatives and agents, and each person, if any, who controls the Remarketing Agent within the
meaning of the Securities Act or the Exchange Act, from and against any loss, claim, damage, liability, joint or several, or any action in respect thereof to which the Remarketing Agent or any such affiliate officer, employee, representative, agent
or controlling person may become subject, insofar as such loss, claim, damage, liability or action arises out of, or is based upon, (i) any untrue statement or alleged untrue statement of a material fact contained in (A) the Registration Statement,
any Preliminary Prospectus or the Prospectus, or in any amendment or supplement thereto, (B) any blue sky application or other document prepared or executed by the Company (or based upon any written information furnished by the Company) filed in any
jurisdiction specifically for the purpose of qualifying any or all of the Remarketed Senior Notes under the securities laws of any state or other jurisdiction (such application, document or information being hereinafter called “Blue Sky
Application”) or (C) in any materials or information provided to investors by, or with the approval in writing of, the Company in connection with the Remarketing (“Marketing Materials”), (ii) the omission or alleged
omission to state in the Registration Statement, any Preliminary Prospectus, the Prospectus or in any amendment or supplement thereto, in any Remarketing Materials or any amendment or supplement thereto, or in any Blue Sky Application, any material
fact necessary to make the statements therein not misleading, or (iii) any act or failure to act or any alleged act or failure to act by the Remarketing Agent in connection with, or relating in any manner to, the Remarketed Senior Notes or the
Remarketing contemplated hereby, and which is included as part of any loss, claim, damage, liability or action arising out of or based upon matters covered by clause (i) or (ii) above (provided that the Company shall not be liable under this
clause (iii) to the extent that it is determined in a judgment by a court of competent jurisdiction that such loss, claim, damage, liability or action resulted from any such acts or failure to act undertaken or omitted to be taken by the Remarketing
Agent through its negligence or willful misconduct or from a breach of the Remarketing Agent of its representations herein); and shall reimburse the Remarketing Agent and each such affiliate, officer, employee, representative, agent or controlling
person promptly upon demand for any legal or other expenses reasonably incurred by the Remarketing Agent or any such affiliate, officer, employee, representative agent or controlling person in damage, liability or action as such expenses are
incurred; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of, or is based upon, any untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration Statement, any Preliminary Prospectus or the Prospectus, or in any such amendment or supplement, or any other Remarketing Materials (or any amendment or supplement thereto), in reliance upon and
in conformity with the written information furnished to the Company by or on behalf of the Remarketing Agent concerning the Remarketing Agent 
  

 11 

 specifically for inclusion therein; and provided, further, that the Company shall not be liable to the Remarketing
Agent under the indemnity agreement in this subsection (a) with respect to any Preliminary Prospectus to the extent that such loss, claim, damaged, liability or action of the Remarketing Agent results from the fact that the Remarketing Agent sold
the Remarketed Senior Notes to a person as to whom it shall be established that such sale was an initial resale by the Remarketing Agent and there was not sent or given to such person, if required by law to have been so sent or given, at or prior to
the written confirmation of the sale to such person, a copy of the Prospectus, if the Company had previously furnished copies thereof in sufficient quantities to the Remarketing Agent on a timely basis and the loss, claim, damage or liability of the
Remarketing Agent results from an untrue statement or omission of a material fact contained in the Preliminary Prospectus which was (i) identified to the Remarketing Agent prior to the furnishing to the Remarketing Agent of the corrected Prospectus
and (ii) corrected in the Prospectus. The foregoing indemnity agreement is in addition to any liability which the Company may otherwise have to the Remarketing Agent or to any affiliate, officer, employee, representative, agent or controlling person
of the Remarketing Agent. 
  
 (b) The Remarketing Agent shall
indemnify and hold harmless the Company, its affiliates, their respective officers, directors, employees, representatives and agents, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act from
and against any loss, claim, damage, liability or any action in respect thereof, to which the Company, or any such affiliate, director, officer, employee, representative, agent or controlling person may become subject, insofar as such loss, claim,
damage, liability or action arises out of, or is based upon, (i) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Preliminary Prospectus, the Prospectus (or any amendment or supplement thereto),
any Blue Sky Application, or any other Remarketing Materials (or any amendment or supplement thereto), or (ii) the omission or alleged omission to state in the Registration Statement, any Preliminary Prospectus, the Prospectus (or any amendment or
supplement thereto), any Blue Sky Application, or any other Remarketing Materials (or any amendment or supplement thereto), any material fact necessary to make the statements therein not misleading, but in each case only to the extent that such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by the Remarketing Agent specifically for inclusion therein; and shall
reimburse the Company and any such director, officer or controlling person promptly upon demand for any legal and other expenses reasonably incurred by the Company or any such affiliate, director, officer, employee, representative, agent or
controlling person in connection with investigating, defending, or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The Company hereby acknowledges that the only information that the
Remarketing Agent has furnished to the Company expressly for use in the Registration Statement, any Preliminary Prospectus, the Prospectus, any Blue Sky Application or any other Remarketing Materials (or any amendment or supplement thereto) is the
information set forth in a certificate to be provided by the Remarketing Agent on or prior to the Remarketing Date. The foregoing indemnity agreement is in addition to any liabilities that each Underwriter may otherwise have. 
  
 (c) Promptly after receipt by an indemnified party under this Section 8 of
notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect 
  

 12 

 thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of
the claim or commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have had under this Section 8 except to the extent it has been materially
prejudiced by such failure and, provided, further, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 8. If any such claim or
action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified
indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party. After notice from the indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the
indemnifying party shall not be liable to the indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation;
provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that a conflict may arise between the positions of the
indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon
receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to
such indemnified party in connection with the defense thereof unless the indemnified party shall have employed separate counsel in accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party
shall not be liable for the expenses of more than one separate counsel (together with local counsel), approved by the indemnifying party (the Remarketing Agent in the case of Section 8(b), representing the indemnified parties who are parties to such
action). No indemnifying party shall, (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld) settle or compromise or consent to the entry of any judgment with respect to any pending or
threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding, or (ii) be liable for any settlement of any such action effected without its written consent
(which consent shall not be unreasonably withheld), but if settled with its written consent or if there be a final judgment of the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from
and against any loss of liability by reason of such settlement or judgment. 
  
 Section 9. Contribution. If the indemnification provided for in Section 8 is for any reason held to be unavailable or insufficient to hold harmless an indemnified party under Section 8(a) or 8(b) in respect of
any loss, claim, damage or liability, or any action in respect thereof, referred to therein, then each indemnifying party shall in lieu of indemnifying such indemnified 
  

 13 

 party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or
liability, or action in respect thereof, (i) in such proportion as shall be appropriate to reflect the relative benefits received by the Company, on the one hand, and the Remarketing Agent, on the other hand, from the Remarketing of the Remarketed
Senior Notes pursuant to this Agreement or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but
also the relative fault of the Company, on the one hand, and the Remarketing Agent, on the other hand, with respect to the statements or omissions or alleged statements or alleged omissions that resulted in such loss, claim, damage, or liability (or
action in respect thereof), as well as any other relevant equitable considerations. The relative benefits received by the Company, on the one hand, and the Remarketing Agent, on the other hand, with respect to the Remarketing of the Remarketed
Senior Notes pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the Remarketing of the Remarketed Senior Notes pursuant to this Agreement received by holders of the Remarketed Senior
Notes on the one hand, and the total Remarketing Fee received by the Remarketing Agent, on the other hand, bear to the aggregate Remarketing Price plus an additional Remarketing Fee paid by the Company which is not included in the Remarketing Price
of the Remarketed Senior Notes. The relative fault of the Company, on the one hand, and the Remarketing Agent, on the other hand, shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Remarketing Agent, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission. 
  
 The Company and
the Remarketing Agent agree that it would not be just and equitable if the amount of contributions pursuant to this Section 9 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to herein. 
  
 The amount paid or payable
by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to in this Section 9 shall be deemed to include, for purposes of this Section 9, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any action or claim. 
  
 Notwithstanding the provisions of this Section 9, the Remarketing Agent shall not be required to contribute any amount in excess of the amount by which the Remarketing Fee exceeds the amount of any damages which the
Remarketing Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 9, each officer and employee of the Remarketing Agent and each person, if any, who controls the Remarketing Agent
within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Remarketing Agent, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person,
if any, who controls the Company within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company. 
  

 14 

 Section 10. Resignation and Removal of the Remarketing Agent. The Remarketing Agent may resign and
be discharged from its duties and obligations hereunder, and the Company may remove the Remarketing Agent, by giving 30 days’ prior written notice, in the case of a resignation, to the Company, the Purchase Contract Agent and the Depositary
and, in the case of a removal, to the removed Remarketing Agent, the Purchase Contract Agent and the Depositary; provided, however, that no such resignation nor any such removal shall become effective until the Company shall have appointed at
least one nationally recognized broker-dealer as successor Remarketing Agent and such successor Remarketing Agent shall have entered into a remarketing agreement with the Company and the Purchase Contract Agent, in which it shall have agreed to
conduct the Remarketing in accordance with the Transaction Documents in all material respects. 
  
 In any such case, the Company will use commercially reasonable efforts to appoint a successor Remarketing Agent and enter into such a remarketing agreement with such person as soon as reasonably practicable.

  
 Section 11. Dealing in Securities. The Remarketing
Agent, when acting as a Remarketing Agent or in its individual or any other capacity, may, to the extent permitted by law, buy, sell, hold and deal in any of the Remarketed Senior Notes, Corporate Units, Treasury Units or any of the securities of
the Company (together, the “Securities”). The Remarketing Agent may exercise any vote or join in any action which any beneficial owner of such Securities may be entitled to exercise or take pursuant to the Indenture with like effect
as if it did not act in any capacity hereunder. The Remarketing Agent, in its individual capacity, either as principal or agent, may also engage in or have an interest in any financial or other transaction with the Company as freely as if it did not
act in any capacity hereunder. 
  
 Section 12. Remarketing
Agent’s Performance; Duty of Care. The duties and obligations of the Remarketing Agent shall be determined solely by the express provisions of this Agreement and the Transaction Documents. No implied covenants or obligations of or against
the Remarketing Agent shall be read into this Agreement or any of the Transaction Documents. In the absence of bad faith on the part of the Remarketing Agent, the Remarketing Agent may conclusively rely upon any document furnished to it, as to the
truth of the statements expressed in any of such documents. The Remarketing Agent shall be protected in acting upon any document or communication reasonably believed by it to have been signed, presented or made by the proper party or parties except
as otherwise set forth herein. The Remarketing Agent, acting under this Agreement, shall incur no liability to the Company or to any holder of Remarketed Senior Notes in its individual capacity or as Remarketing Agent for any action or failure to
act, on its part in connection with a Remarketing or otherwise, except if such liability is judicially determined to have resulted from its failure to comply with the material terms of this Agreement or the gross negligence or willful misconduct on
its part. The provisions of this Section 12 shall survive the termination of this Agreement and shall survive the resignation or removal of any Remarketing Agent pursuant to this Agreement. 
  
 Section 13. Termination. This Agreement shall automatically terminate
(i) as to the Remarketing Agent on the effective date of the resignation or removal of the Remarketing Agent pursuant to Section 10 and (ii) on the earlier of (x) any Special Event Redemption Date and (y) the Purchase Contract Settlement Date. If
this Agreement is terminated pursuant to any of the other provisions hereof, except as otherwise provided herein, the Company shall not be under 
  

 15 

 any liability to the Remarketing Agent and the Remarketing Agent shall not be under any liability to the Company, except
that if this Agreement is terminated by the Remarketing Agent because of any failure or refusal on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement, the Company will reimburse the Remarketing
Agent for all of its out-of-pocket expenses (including the fees and disbursements of its counsel) reasonably incurred by it. Section 8, Section 9 and Section 12 hereof shall survive the termination of this Agreement or the resignation or removal of
the Remarketing Agent. 
  
 Section 14. Notices. All
statements, requests, notices and agreements hereunder shall be in writing, and: 
  
 (a) if to the Remarketing Agent, shall be delivered or sent by mail, telex or facsimile transmission to: 
  
 Banc of America Securities LLC 
 9 West 57th Street 
 New York, NY 10019 
 Telecopier No.: 212-847-5124 
 Attention: Eric Hambleton 
  
 (b) if to the Company, shall be delivered or sent by mail, telex or facsimile
transmission to The PMI Group, Inc., 3003 Oak Road, Walnut Creek, California 94597, Telecopier No.: 925-658-6175; Attention: General Counsel; and 
  
 (c) if to the Purchase Contract Agent, shall be delivered or sent by mail, telex or facsimile transmission to The Bank of New York, Telecopier No.:
212-815-5707; Attention: Corporate Trust Administration. 
  
 Any
such statements, requests, notices or agreements shall take effect at the time of receipt thereof. 
  
 Section 15. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon each party hereto and its
respective successors. This Agreement and the terms and provisions hereof are for the sole benefit of only those persons, except that (x) the representations, warranties, indemnities and agreements of the Company contained in this Agreement shall
also be deemed to be for the benefit of the Remarketing Agent and the person or persons, if any, who control the Remarketing Agent within the meaning of Section 15 of the Securities Act and (y) the indemnity agreement of the Remarketing Agent
contained in Section 8 of this Agreement shall be deemed to be for the benefit of the Company’s directors and officers who sign the Registration Statement, if any, and any person controlling the Company within the meaning of Section 15 of the
Securities Act. Nothing contained in this Agreement is intended or shall be construed to give any person, other than the persons referred to herein, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision
contained herein. 
  

 16 

 Section 16. Survival. Notwithstanding Section 13, the respective indemnities, representations,
warranties and agreements of the Company and the Remarketing Agent contained in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall survive any Remarketing and shall remain in full force and effect,
regardless of any investigation made by or on behalf of any of them or any person controlling any of them. 
  
 Section 17. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of New York, without regard to conflicts
of laws principles. 
  
 Section 18. Counterparts. This
Agreement may be executed in one or more counterparts and, if executed in more than one counterpart, the executed counterparts shall each be deemed to be an original but all such counterparts shall together constitute one and the same instrument.

  
 Section 19. Headings. The headings herein are inserted
for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 
  
 Section 20. Severability. If any provision of this Agreement shall be held or deemed to be or shall, in fact, be invalid, inoperative or
unenforceable as applied in any particular case in any or all jurisdictions because it conflicts with any provisions of any constitution, statute, rule or public policy or for any other reason, then, to the extent permitted by law, such
circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case, circumstance or jurisdiction, or of rendering any other provision or provisions of this Agreement invalid,
inoperative or unenforceable to any extent whatsoever. 
  
 Section
21. Amendments. This Agreement may be amended by an instrument in writing signed by the parties hereto. The Company agrees that it will not enter into, cause or permit any amendment or modification of the Transaction Documents or any other
instruments or agreements relating to the Senior Notes or the Corporate Units that would in any way adversely affect the rights, duties or obligations of the Remarketing Agent, without the prior written consent of the Remarketing Agent. 

 
 Section 22. Successors and Assigns. The rights and obligations of
the Company hereunder may not be assigned or delegated to any other Person without the prior written consent of Banc of America. The rights and obligations of the Remarketing Agent hereunder may not be assigned or delegated to any other Person
(other than an affiliate of the Remarketing Agent) without the prior written consent of the Company. 
  
 If the foregoing correctly sets forth the agreement by and between the Company, the Remarketing Agent and the Purchase Contract Agent, please indicate
your acceptance in the space provided for that purpose below. 
  
 SIGNATURES ON THE FOLLOWING PAGE 
  

 17 

					
	 Very truly yours,

	
	 THE PMI GROUP, INC.

		
	 By:
	 	 /s/ Donald P. Lofe, Jr.

	 	 	 Name:
	 	 Donald P. Lofe, Jr.

	 	 	 Title:
	 	 Executive Vice President and
 Chief Financial Officer

  

					
	 CONFIRMED AND ACCEPTED:

	
	 BANC OF AMERICA SECURITIES LLC

		
	 By:
	 	 /s/ Trevor Ganshaw

	 	 	 Name:
	 	 Trevor Ganshaw

	 	 	 Title:
	 	 Managing Director

 THE BANK OF NEW YORK 
  
 not individually but solely as Purchase Contract Agent and as attorney-in-fact for the Holders of the Purchase Contracts 
  

					
	 By:
	 	 /s/ Michael Pitfick

	 	 	 Name:
	 	 Michael Pitfick

	 	 	 Title:
	 	 Assistant Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]