Document:

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                                                                   Exhibit 10.33

CONFIDENTIAL TREATMENT        **Confidential treatment has been requested with
HAS BEEN REQUESTED FOR        respect to the information contained within the
CERTAIN PORTIONS OF THIS      "[**]" markings. Such marked portions have been
DOCUMENT                      omitted from this filing and have been filed
                              separately with the Securities and Exchange
                              Commission.

                              eCommerce Agreement
                                    Between
                        Snowball.com and JobDirect.com

     This eCommerce and Content Agreement (this "Agreement") is made as of
February 29, 2000 (the "Effective Date"), by and between Snowball.com, Inc., a
Delaware corporation with principal offices at 250 Executive Park Boulevard,
Suite 4000, San Francisco, CA 94134 ("Snowball") and JobDirect.com, Inc., a
Delaware corporation with principal offices at 201 Summer Street, Stamford, CT
06901 ("JobDirect").

                                  Background

     Snowball owns and operates four networks of interrelated web sites: the
"IGN Network," featuring editorial content about games, movies, tv, science
fiction, and entertainment issues for young men (the hub site for which is
located at www.ign.com), the "ChickClick Network," featuring editorial content
targeted at young women (the hub site for which is located at
www.ChickClick.com), the "Power Students Network," and the "Inside Guide
Network," two networks featuring content targeted at college students (the hub
sites for which are located at www.Powerstudents.com and www.InsideGuide.com).
The IGN, ChickClick, Power Students, and Inside Guide Networks are collectively
referred to in this Agreement as the "Snowball Network(s)." The Snowball Network
sites offer links to a number of affiliated sites that provide related content
(the "Snowball Affiliate Sites").

     JobDirect provides content and services designed to help college students
and recent graduates find internships, part time jobs, and full time positions,
including a resume and job posting search engine that helps link job seekers
with JobDirect's list of hiring companies and organizations. JobDirect's content
and services are accessible through its World Wide Web site located at
www.JobDirect.com (the "JobDirect.com Site").

     JobDirect wishes to be the exclusive job search/listings partner on the
Snowball Networks and to have links established from the Snowball Network hub
sites to the JobDirect.com Site. Snowball has agreed to establish those links
and co-branded pages on the Snowball Network hub sites and to jointly develop
with JobDirect and implement a co-branded career section available from each of
the Snowball Network hub sites (the "Career Center").

     Now Therefore, the parties agree as follows:

1.   Exclusivity.  Subject to the terms and conditions of this Agreement,
     -----------
Snowball will identify JobDirect as Snowball's exclusive provider of job
search/listings on all of the Snowball Networks, provided, however, that (1)
Snowball may continue meeting any contractual obligations to advertisers,
sponsors, partners, and
<PAGE>

affiliates that it has undertaken prior to the Effective Date, including
obligations to any job listings affiliates, for the term of any such contracts,
provided that Snowball has disclosed the terms and effective dates of any such
contractual obligations in writing to JobDirect.com prior to the Effective Date
of this Agreement and (2) that nothing in this Agreement will prevent Snowball
from accepting additional career related affiliates so long as those affiliates
are not among the entities listed on Schedule A attached hereto, or from placing
banner and button advertisements and sponsorships from competing career and job
listings sites on the Snowball Networks so long as the total number of monthly
impressions from any one such competing career and job listing sites for such
banner and button advertisements and sponsorships does not exceed [**] of the
total number of monthly impressions delivered for JobDirect.com. Said total is
defined as the aggregate of monthly banner impressions, button impressions and
portal link impressions delivered under the Agreement. No such competing button
or banner advertisements will appear in the co-branded Career Center. The
exclusivity obligation set forth in this section will not apply to Snowball
Affiliate Sites.

2.   Promotion and eCommerce.  Subject to the terms and conditions of this
     -----------------------
Agreement, the parties will use commercially reasonable efforts to cooperate and
work together to bring each of the elements of the promotional program set forth
in this Section 2 on line on their respective web sites by March 15, 2000 (the
"Launch Date").  The parties acknowledge that despite their commercially
reasonable efforts, some elements of the program set forth in this Section 2 may
not be on line by the Launch Date, and agree that if both parties have used
commercially reasonable efforts to meet the Launch Date, it will not be a breach
of this Agreement that not every element is on line by the Launch Date.  The
parties further agree that after the Launch Date the parties will continue to
use commercially reasonably efforts to bring each remaining element on line as
soon as practicable thereafter.

     2.1  Registration.
          ------------

          (a)  New Registrations.  Snowball will make available to each user
               -----------------
who is no less than 20 years old registering with a Snowball Network the
simultaneous opportunity of an "opt out" registration for JobDirect.com. For
purposes of this paragraph, "opt out" registration means an automatic
functionality for dual registration of the user on both the Snowball Network and
on JobDirect.com unless the user opts, using an offered functional indicator,
not to register with JobDirect.com.

          (b)  Existing Registered Users.  Within the first month after the
               -------------------------
Career Section goes live on line, Snowball will send each Snowball Network user
who is no less than 20 years old and registered as of the Effective Date
(estimated at 900,000) an email message describing JobDirect.com's various
offers and services, as well as informing them of the relationship between
Snowball and JobDirect.com under this Agreement. Such email message will include
a link allowing users to add their email addresses to the JobDirect.com database
of Snowball Network users.

          (c)  Registrant: As used herein, a "Registrant" means any user of
               ----------
JobDirect.com who satisfies each of the following conditions: (i) user is not
less than 20 years of age, (ii) such user is not already a registered user with
JobDirect.com, (iii) such user accesses JobDirect.com through any link or
registration process on a Snowball Network site, as set forth in Section 2.1 (a)
and (b) above, and (iv) such user registers with JobDirect.com in a manner
consistent with JobDirect.com business practice, such registration to include
the user's name, address, email address, age, graduation date, school and
academic major.

**Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission.

<PAGE>

          (d)  Reporting.  Snowball will provide to JobDirect a monthly report
               ---------
of all registration data for each Snowball Network user who registers in that
month with JobDirect through the "opt out" registration described above.

     2.2  "My Page" Integration.
           --------------------

          (a)  New Users.  Snowball will integrate content and/or links, the
               ---------
extent and placement of which Snowball shall determine at its sole discretion,
from the Career Center into Snowball's customizable "My Page" sections developed
for new users.  Snowball will work with JobDirect to find ways to provide custom
content from JobDirect to Snowball Network users through their customized "My
Page" sections.

          (b)  Existing Users.  For existing registered Snowball Network users,
               --------------
Snowball will include a JobDirect.com listing in the "My Page" profile update
page, permitting users to choose to receive content and/or links from the Career
Center on their custom "My Page" sections within Snowball.com.

     2.3  Co-Branded Career Center.  Snowball and JobDirect will work together
          ------------------------
to develop a co-branded Career Center to be hosted and served by Snowball and
linked from each of the Snowball Networks. The Career Center will be promoted
throughout the Snowball Networks by navigational links placed prominently in
each Snowball Network site, enabling users to access the Career Center through
each such link. JobDirect's job search engine will be prominently linked to each
page within the Career Center. The Career Center will include content to be
provided by both Snowball and JobDirect.com, including descriptions of the
various career, resume, and job posting services offered by JobDirect.com, and
will include links out from the Career Center to the JobDirect.com Site, through
which users will be able to access additional JobDirect content and services.
Snowball Network users accessing JobDirect.com through links from the Snowball
Networks will be followed throughout each session by a co-branded navigation bar
and frame. The look and feel, as well as the specific functionalities of the
Career Center, will be developed jointly by the parties and subject to the
agreement of both parties, which agreement will not be unreasonably withheld.
Subject to the limitations set forth in Section 1, Snowball will have sole
control over all advertising, banners, and other promotional placements
appearing in the co-branded Career Center and anywhere within the Snowball
Networks, and will retain all revenue generated from any such advertising,
banners, and other promotional placements. JobDirect.com agrees to continue
working with Snowball throughout the term of this Agreement to develop and
provide new and updated content and services for the Career Center. Pursuant to
this Section, JobDirect.com shall only be obligated to use commercially
reasonable efforts to provide (i) the job search application currently present
in the Jobdirect.com site, (ii) content, and (iii) advisory services.
JobDirect.com shall not be obligated to provide for or reimburse Snowball for
any third-party expenses relating to such development. Snowball will provide
JobDirect.com with statistics pertaining to the use of the "Career Poll" feature
of the Career Center.

     2.4  Snowball Network Advertising, Links, and e-Mail Promotions.
          ----------------------------------------------------------

          (a)  Banner Impressions.  Snowball will guarantee [**] banner
               ------------------
impressions promoting JobDirect.com on Snowball Network pages each month during

**Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission.

<PAGE>

the term of this Agreement, with such impressions to have a configuration of 468
x 60 pixels.

          (b)  Button Impressions.  Snowball will guarantee [**] button
               ------------------
impressions promoting JobDirect.com on Snowball Network pages each month during
the term of this Agreement, with each such impression to have a configuration of
144 x 50 pixels or 120 x 60 pixels.

          (c)  Portal Link.  During the term of this Agreement, Snowball will
               -----------
provide a link to the Career Center on Snowball's "Affiliate Commerce Portal."
Snowball will use commercially reasonable efforts to encourage Snowball
affiliates to place on their Snowball Affiliate Sites (guaranteed to provide
[**] impressions per month).

          (d)  Navigation Bar Link Impressions.  Snowball will incorporate a
               -------------------------------
button or link promoting the Career Center into the navigation bar on Snowball
Network hub site pages (estimated to deliver [**] impressions per month).

          (e)  Snowball e-Mail Promotions.  JobDirect.com will receive a
               --------------------------
standard size (315 text based characters including the URL on ChickClick; 8
lines or less including the URL on PowerStudents; 30 to 50 words including the
URL on IGN.) advertisement in e-mails sent by Snowball each month to users
registered on the Snowball Network hub sites and Affiliates and through their
relationship with Hotmail, which Snowball will guarantee to deliver at least
[**] emails per month across all Snowball Network hub sites combined.

          (f)  Career Polls. Snowball will develop and promote a career-oriented
               ------------
opinion poll [**]. These career polls will focus on current events affecting
Snowball users. These career polls, which will be called "JobDirect.com Career
Polls," will appear within the Career Center. The polls will provide immediate
feedback after a vote has been submitted, allowing users to see where their
opinions fall within the greater community. The JobDirect.com logo will be
placed within the top area of each career poll.

          (g)  Sole Remedy for any Deficiency. For those impressions for which a
               ------------------------------
set number of impressions are guaranteed to be delivered each month ("Guaranteed
Impressions"), if in any given month that number of impressions is not
delivered, then Snowball's sole obligation and JobDirect.com's sole and
exclusive remedy will be for Snowball to deliver any deficiency by no later than
forty-five (45) days after this Agreement terminates in accordance with Section
9.1.

     2.5  JobDirect Links to Snowball.com.   JobDirect.com will include buttons
          -------------------------------
and or links on its pages accessed through the Snowball Network enabling
visitors to the JobDirect.com Site who accessed that site through a link from a
Snowball Network site to link back to the page on the Snowball Network site from
which they accessed the JobDirect.com Site.

**Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission.

<PAGE>

3.   Additional Marketing Opportunities.
     ----------------------------------

3.1  Snowball Promotions.  During the term of this agreement, with respect to
     -------------------
any proposed Snowball on-line and off-line career placement and job
search/listing related marketing programs and promotional events, Snowball will
provide JobDirect.com with a right of first negotiation such that (a)
JobDirect.com will be provided with reasonable advanced notice of its intent to
develop any such program or event (such notice not to be less than thirty (30)
days in advance of the introduction of such program or event and such notice to
be delivered to JobDirect.com prior to delivery of any such notice to any other
person or entity) and (b) Snowball will negotiate in good faith exclusively with
JobDirect.com for career placement and job search/listings participation in such
event for a period of 15 days following delivery of such notice to allow
JobDirect.com a reasonable opportunity to participate in such program or event
as the exclusive career placement and job search/listings service provider on
commercially reasonable terms.

     3.2  JobDirect Promotions.  During the term of this agreement, with respect
          --------------------
to any proposed JobDirect on-line and off-line career related marketing programs
and promotional events, JobDirect.com will provide Snowball with reasonable
advance notice of its intent to develop any such program or event and will
negotiate in good faith with Snowball to allow Snowball an opportunity to
participate in such program or event in the same manner of services as provided
herein on commercially reasonable terms.

     3.3  Snowball.com Press Releases.  Snowball agrees to submit to JobDirect
          ---------------------------
all press releases, disclosures, filings, notices and other matters ("Publicity
Matters") wherein JobDirect.com's name or proprietary marks are mentioned, or
where language is used from which the relationship between Snowball and
JobDirect.com could be inferred, and further agrees not to publish or use any
such Publicity Matter without JobDirect.com's prior written consent. Subject to
the foregoing, within thirty (30) days of the Effective Date, Snowball will
distribute a press release announcing the relationship between Snowball and
JobDirect and not any other Snowball activities.

     3.4  JobDirect.com Press Releases.  JobDirect.com agrees to submit to
          ----------------------------
Snowball all Publicity Matters wherein Snowball's name or proprietary marks are
mentioned, or where language is used from which the relationship between
JobDirect.com and Snowball could be inferred, and further agrees not to publish
or use any such publicity without Snowball's prior written consent. Subject to
the foregoing, within thirty (30) days of the Effective Date, JobDirect will
distribute a press release announcing the relationship between JobDirect.com and
Snowball.

4.  Organizational Support.  Snowball will allocate resources and use
    ----------------------
commercially reasonable efforts to provide competent and effective
administrative and technical support to encourage Snowball Network users to
receive JobDirect.com content and services.  Snowball will assign a dedicated
account team.
<PAGE>
Such account team will include at least one full time Snowball employee
(dedicated solely to the matters described herein), an account manager and
coordinator (one of which may be such full time employee). Such persons will (i)
monitor the viewing and use of JobDirect.com content and services through the
career center and links from Snowball Network Sites, and (ii) attend monthly
meetings and quarterly reviews, to be mutually scheduled by the parties, to
discuss the effectiveness of the relationship established by this Agreement.

5.   Compensation.
     ------------

     5.1  Participation Fee.  JobDirect.com will pay Snowball a one-time, non-
          -----------------
refundable participation fee of [**], which shall be due and payable as follows:
[**] after the Launch Date (as defined in Section 2), due and payable in [**]
installments payable on the dates and in the amounts set forth in the attached
Schedule B; and [**] period, due and payable in [**] monthly payments payable on
the dates and in the amounts set forth on the attached Schedule B. JobDirect.com
will not be obligated to pay the [**] fee for the [**] period if it properly
exercises its right to termination under Section 9.2. Payments will be made in
U.S. Dollars. Payments not made when due will bear interest at the rate of [**]
per month on the unpaid balance, or the highest rate permitted by applicable
laws, whichever is lower.

     5.2  Qualified Registrant Bounty Fee.  JobDirect.com will pay Snowball a
          -------------------------------
new qualified registrant bounty fee, due and payable within thirty (30) days of
the [**] of the Launch Date, which shall be calculated as set forth in Exhibit
A. Payments will be made in U.S. Dollars. Payments not made when due will bear
interest at the rate of [**] per month on the unpaid balance, or the highest
rate permitted by applicable laws, whichever is lower.

     5.3  Records and Audit Rights.  JobDirect.com will keep records of all new
          ------------------------
registrants who register with JobDirect.com upon linking through to
JobDirect.com from the Career Center or any Snowball Network site for a period
of three (3) years after such registration. At Snowball's expense, an
independent certified public accountant selected by Snowball and reasonably
acceptable to JobDirect.com may, no more than twice per year and upon at least
twenty-four (24) hours notice, inspect such records during normal business
hours.

     5.4  Reporting.  During the term of this Agreement, JobDirect.com will,
          ---------
within ten (10) days of the end of each month, provide monthly reports to
Snowball setting forth all relevant data regarding the number of visitors who
(1) access JobDirect.com through links in the Career Center or on any Snowball
Network site, and (2) who "register with" JobDirect.com either through the "opt
out" registration procedure described in Section 2.1 of this Agreement or after
accessing JobDirect.com through any such links. For

**  Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and exchange
Commission.

<PAGE>

purposes of this agreement, a visitor will be deemed to have "registered with"
JobDirect.com if that person completes a JobDirect.com user profile, either
through the "opt out" registration or after linking from a Snowball Network
site, and provides JobDirect.com accurate data in the following categories
(the "Registration Data"):

          Name:
          Address:
          e-mail:
          Age:
          Graduation Date:
          Major:
          School:

Snowball will provide JobDirect with monthly reports, verified, at
JobDirect.com's request, through an independent verification system mutually
acceptable to the parties (i.e., NetGravity), within ten (10) days of the end
of each month setting forth all relevant data regarding the number of visitors
to the Career Center, other data Snowball regularly collects concerning user
activity within the Career Center, and the number of users registering with
JobDirect.com through the "opt out" registration described in Section 2.1 of
this Agreement.

6.   Licenses, Other Proprietary Rights and Related Matters.  Subject to the
     ------------------------------------------------------
terms and conditions of this Agreement:

     6.1  JobDirect.com Content License.  JobDirect hereby grants to Snowball a
          -----------------------------
nonexclusive, nontransferable license (without the right to sublicense) to copy
and publicly display on the Snowball Networks content provided by
JobDirect.com ("JobDirect.com Content") solely to promote JobDirect.com and
its site and otherwise perform this Agreement. Snowball may reformat the
JobDirect.com Content for the purpose of incorporating it into the Snowball
Network sites (but will not acquire any ownership of such reformatted
JobDirect.com Content). Snowball will not modify, use, copy or distribute the
JobDirect.com Content, except as expressly provided in this Agreement.
Snowball will at all times use the JobDirect.com Content in a manner that is
of the quality and standards approved by JobDirect.com. Snowball agrees that
it will not use the JobDirect.com Content in any manner which reflects
negatively on or adversely affects JobDirect.com. Snowball shall notify
JobDirect.com in writing of any observed failure to maintain the quality
associated with the JobDirect.com Content.

     6.2  Snowball Trademark License.  Snowball hereby grants JobDirect a
          --------------------------
nonexclusive, revocable, worldwide license to use any Snowball trademarks,
service marks and logos that are provided to it by Snowball ("Snowball Marks")
solely in conjunction with the links, navigation bars, frames, and co-branded
environment described in this Agreement.  Any use of the Snowball Marks must
comply with Snowball's approvals, requirements and any trademark guidelines
communicated by Snowball.  Any such use will inure to Snowball's benefit.
Nothing contained in this Agreement gives JobDirect.com any right, title or
interest in the Snowball Marks or goodwill therein and thereto, except as
expressly provided in this section. JobDirect will not take any action
inconsistent with the Snowball's ownership rights. JobDirect will cease all
use and display of the Snowball Marks upon written notice from Snowball and,
in any event, upon termination of this Agreement.

     6.3  JobDirect.com Trademark License.  JobDirect hereby grants Snowball a
          -------------------------------
nonexclusive, revocable, worldwide license to use JobDirect's trademarks,
service marks and logos that are provided to it by Snowball ("JobDirect.com
Marks") solely in conjunction
<PAGE>

with the links, navigation bars, frames, and co-branded environment described in
this Agreement. Any use of the JobDirect.com Marks must comply with
JobDirect.com's approvals, requirements and any trademark guidelines
communicated by JobDirect.com. Any such use and will inure to JobDirect's
benefit. Nothing contained in this Agreement gives Snowball any right, title or
interest in the JobDirect.com Marks or goodwill therein and thereto, except as
expressly provided in this section. Snowball will not take any action
inconsistent with JobDirect.com's ownership rights. Snowball will cease all use
and display of the JobDirect.com Marks upon written notice from JobDirect.com
and, in any event, upon termination of this Agreement. Snowball agrees that it
will not use the JobDirect.com Marks in a manner which reflects negatively on or
adversely affects JobDirect.com. Snowball shall notify JobDirect.com in writing
of any observed failure to maintain the quality associated with the
JobDirect.com Marks.

     6.4  Ownership.  Subject to the rights expressly granted in this Agreement,
          ---------
Snowball will retain all right, title and interest in and to the Snowball
Networks and (and all related sites), the Snowball Marks and any content created
by Snowball for display in the Career Center ("Snowball Property").
JobDirect.com will retain all right title and interest in and to the
JobDirect.com Site, the JobDirect.com Marks and the JobDirect.com Content, any
content created by JobDirect.com for display in the Career Center and any Career
Center intellectual property (other than Snowball Property) stored on the
JobDirect.com server. Notwithstanding anything contained in this Section 6.4 to
the contrary, JobDirect.com shall be given unlimited access to all data
collected pursuant to the "JobDirect Career Survey" feature of the Career Center
(or any similar feature of the Career Center), JobDirect.com shall have an
unrestricted license to use such data in any manner, except as limited elsewhere
in this Agreement and JobDirect.com shall have an unrestricted right to provide
links from any JobDirect.com site to such data and such feature.

     6.5  Snowball Discretion.  Unless expressly provided in this Agreement, the
          -------------------
form, format and position of any JobDirect.com link or advertisement described
in this Agreement, and date of placement, will be determined by Snowball in its
discretion. Snowball may, upon written notice to JobDirect.com, reject any
content provided by JobDirect under this Agreement if it fails to comply with
Snowball's reasonable requirements or is otherwise inappropriate for the users
of the Snowball Network sites. Nothing in this Agreement will be construed to
limit Snowball's right to modify any of the content or any aspect of structure
of the Snowball Network sites, or to rename or reposition the Snowball Network
sites, in its discretion; provided that, in the event any such change affects
Snowball's ability to perform any obligation described in this Agreement,
Snowball will provide reasonable alternative performance. Within the co-branded
Career Center, all visual modifications will be mutually agreed to. Nothing
contained in this Section 6.5 shall limit or otherwise modify the obligations of
Snowball set forth in Section 2.

     6.6  JobDirect.com Site Information.  JobDirect will provide Snowball with
          ------------------------------
any information reasonably required to implement links from the Snowball
Networks to the JobDirect.com Site.  JobDirect.com will give Snowball reasonable
advance notice in the event JobDirect.com changes its universal record locator
(URL) for the JobDirect.com Site.

7.   Confidential Information.
     ------------------------

     7.1  Obligations.  Each party ("Receiving Party") agrees to treat as
          -----------
confidential all proprietary information disclosed to it by the other party
("Disclosing Party") including marketing information, customer data, any data
described herein and the terms of this Agreement ("Confidential Information").
Receiving Party agrees not to publish or disclose the Disclosing Party's
Confidential Information to others except to those employees and subcontractors
to whom disclosure is necessary in order to carry out the purposes of this
Agreement.  All tangible materials embodying such Confidential Information will
remain the sole property of Disclosing Party and will be delivered to Disclosing
Party by Receiving Party upon Disclosing Party's request.  Receiving Party
<PAGE>

will inform all its employees and subcontractors who receive Confidential
Information of the confidential nature of such Confidential information and of
their obligation to keep same confidential and not to use it other than as
permitted hereunder.

     7.2  Exceptions.  Neither party will have any obligation with respect to
          ----------
any Confidential Information which: (1) was rightfully known to Receiving Party
prior to receipt of such Confidential Information from Disclosing Party; (2) is
lawfully obtained by Receiving Party from a third party under no obligation of
confidentiality; (3) is or becomes generally known or available without any act
or failure to act by Receiving Party; (d) is developed independently by
Receiving Party.  Either party may disclose the Confidential Information of the
Disclosing Party if required by court order or legal requirement and the party
subject to the order has given the other party a reasonable opportunity (and has
cooperated fully) to contest or limit the scope of such required disclosure
(including application for a protective order).

8.   User Data.
     ---------

     8.1  Ownership.  Subject to the restrictions in this section and any rights
          ---------
to use the applicable data granted under this Agreement, Snowball will own
Snowball Network user registration data, and JobDirect.com will own
JobDirect.com user registration data.

     8.2  Treatment of Individually Identifiable User Data.  Neither party will
          ------------------------------------------------
sell, disclose, transfer, or rent any user data obtained by it from the other
party which data identifies, or can be used to identify, a specific individual
("Individually Identifiable User Data") to any third party or use any
Individually Identifiable User Data on behalf of any third party, without the
express permission of the applicable user specifically approving such use.
Snowball and JobDirect.com will only use Individually Identifiable User Data in
accordance with the Terms of Service and Privacy Policy posted on the Snowball
Network sites, as they may be amended from time to time by Snowball.  Snowball
acknowledges and agrees that any user collected by JobDirect.com or through
links from or activities related to the Career Center other than the Registrant
Data shall be the sole property of JobDirect.com and Snowball shall have no
rights with respect to such data. In those cases where permission for disclosure
of Individually Identifiable User Data has been obtained from the applicable
user, each party will use all reasonable efforts to implement an "opt out"
feature on its own behalf, and an include and enforce through its agreements
with third parties a requirement for the inclusion of an "opt out" feature in
all e-mail communications generated by, or on behalf of, third party users of
the Individually Identifiable User Data; provided, however, that nothing
contained in this section shall obligate JobDirect.com to provide or cause to be
provided to Snowball any Individually Identifiable User Data other than the
Registration Data.

     8.3  Aggregate Data.  Notwithstanding the restrictions above, the parties
          --------------
retain the right to use, sell, disclose, transfer, or rent any user data as long
as such user data is in an aggregate form that does not include any Individually
Identifiable User Data.

9.   Term and Termination.
     --------------------

     9.1  Term.  This Agreement will commence on the Effective Date and remain
          ----
in effect for a period of [**] after the Launch Date (as defined in Section 2)
(the "Initial Term"), unless terminated earlier under this Section 9. Commencing
[**] prior to the last day of the Initial Term, JobDirect.com shall have a
period of [**]

**  Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission
<PAGE>

in which it may give notice to Snowball of its desire to renew this Agreement
on new terms to be mutually agreed between the parties. In the event that during
that [**] notice period, JobDirect.com provides such notice, Snowball will enter
into good faith negotiations with JobDirect.com in an effort to reach agreement
on renewal terms, and for [**] after receipt of such notice, Snowball will not
negotiate with any other providers of career placement and job search/listings
to replace JobDirect upon termination of this Agreement. If during the [**]
notice period JobDirect.com does not provide notice of its desire to renew, or
if within the [**] negotiation period the parties are unable to reach agreement
on the renewal terms, Snowball's rights to negotiate with other such providers
will not be limited by this Agreement.

     9.2  Termination.  Upon written notice no fewer than [**] prior to the end
          -----------
of the [**] after the Launch Date, JobDirect.com may terminate this Agreement on
the last day of the [**] after the Launch Date at their sole discretion with no
further obligation to pay any fees other than those already due and payable
before the termination date. If by the end of the [**] after the later of the
Launch Date or the first date on which JobDirect.com obtains and implements the
technical capability to receive dual registration data from Snowball's
registration protocol, no more than [**] Registrants (as defined in Section
2.1(c)) have "registered with" JobDirect.com, as that term is defined in Section
5.4 of this Agreement, then JobDirect.com may terminate and, at JobDirect.com's
request (whether or not JobDirect.com so terminates), Snowball will continue to
deliver the monthly impressions specified in Section 2.4 and the registration
programs described in Sections 2.1 and 2.2 for a period of [**] after the [**]
of the Launch Date or until the [**] new Registrants are delivered, whichever
occurs first, for no additional fee or cost to JobDirect.com. Section 1,
"Exclusivity," will not apply during that additional [**] period.

    9.3  Effect of Termination.  Except as set forth in the preceding Section,
         ---------------------
JobDirect.com's payment obligations hereunder, as well as the provisions of this
Section and the following Sections will survive any termination of this
Agreement: Section 2.4(g) (remedy for insufficient impressions), Section 6
(Compensation), Section 6.5 (Ownership), Section 7 (Confidential Information),
Section 8 (User Data), Section 10 (Limitation of Liability), Section 11
(Indemnification) and Section 12 (General).

10.  Limitation of Liability.  EXCEPT WITH RESPECT TO ITS OBLIGATIONS UNDER
     -----------------------
SECTION 7 AND SECTION 8, NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY
INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, OR ANY LOSS OR REVENUE, PROFITS,
OR DATA, ARISING IN CONNECTION WITH THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

11.  Indemnification.
     ---------------

     11.1 Snowball Obligations.  Snowball.com hereby agrees to defend, indemnify
          --------------------
and hold harmless JobDirect.com, and its directors, officers and employees,
against any and all claims, actions, losses, damages, costs, and expenses
(including reasonable attorneys' fees, "Losses") arising out of or based on any
claim related to any Snowball Marks, the Snowball Networks or Snowball's
performance of its obligations herein other than those claims described in
Section 11.2 below. Snowball's obligations under this section are hereby
expressly conditioned on the following: (1) JobDirect.com provides Snowball.com
with prompt notice of any such claim; (2) JobDirect.com

**  Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission
<PAGE>

and (2) JobDirect.com provides Snowball with any information or assistance
requested by Snowball, at Snowball's expense.

     11.2 JobDirect.com's Obligations. JobDirect.com hereby agrees to defend,
          ---------------------------
indemnify and hold harmless Snowball, and its directors, officers and employees,
against any and all Losses arising out of or based on any claim related to
(1) the JobDirect.com Site and any products or services provided by
JobDirect.com (or omissions) with respect to any customer, or (2) any content,
information or other materials provided to Snowball under this Agreement.
JobDirect.com's obligations under this section are hereby expressly conditioned
on the following: (1) Snowball provides JobDirect.com with prompt notice of any
such claim; (2) Snowball permits JobDirect.com to assume and control the defense
of such action, with counsel chosen by JobDirect.com (who will be reasonably
acceptable to Snowball); and (3) Snowball provides JobDirect.com with any
information or assistance requested by JobDirect.com, at JobDirect.com's
expense.

12.  General.
     -------

     12.1 Waivers/Modifications.  Any waiver modification or amendment to any
          ---------------------
provision of this Agreement will be effective only if in writing and executed by
both parties.  The waiver by either party of any default or breach of this
Agreement will not constitute a waiver of any other or subsequent default or
breach.

     12.2 Notices.  All notices required to be given under this Agreement will
          -------
be deemed given when delivered personally or sent by confirmed facsimile or U.S.
certified mail, return receipt requested, to the address shown in the preamble
above, or as may otherwise be specified by either party to the other in writing.

     12.3 Severability.  If any provision of this Agreement is found illegal or
          ------------
unenforceable, it will be enforced to the maximum extent permissible, and the
legality and enforceability of the other provisions of this Agreement will
remain in full force and effect.

     12.4 Governing Law.  This Agreement will be governed by and construed in
          -------------
accordance with the laws of the State of California applicable to agreements
entered into, and to be performed entirely, within California between California
residents.

     12.5 No Partnership.  The relationship of the parties hereto is solely that
          --------------
of independent contractors, and not partners, joint venturers or agents.
Neither party has any authority to bind the other in connection with this
Agreement.

     12.6 Entire Agreement.  This Agreement, including any exhibits attached
          ----------------
hereto, is the complete and exclusive agreement between the parties with respect
to the subject matter hereof, and supersedes and replaces any and all prior or
contemporaneous agreements regarding such subject matter.  The parties agree
that the letter of intent, dated
<PAGE>

as of January 5, 2000, between the parties is hereby terminated and replaced
in its entirety by this Agreement.

     12.7 Force Majeure.  Neither party will be liable to the other party as a
          -------------
result of its failure to perform any obligation or duty under this Agreement,
other than the obligation to pay money, to the extent that such failure is cause
by flood, war, riot, civil insurrection, labor or material shortages, failure of
contractors to perform their obligations, or other events that are not
reasonably foreseeable or are beyond the reasonable control of the party.

     12.8 No Assignment.  Neither party may assign this Agreement without the
          -------------
other party's written consent except in the event of a reorganization, merger,
consolidation or sale of all or substantially all of its assets related to this
Agreement.  Such consent will not be unreasonably withheld.  Any assignment in
violation of this section will be null and void.

     12.9 Consolidated URL Listing. JobDirect.com hereby grants Snowball
          ------------------------
permission to include all of the URLs related to the pages served on the Career
Center through the Snowball Networks together with other Snowball-related URLs
in a consolidated listing assembled by third-party measurement companies,
including but not limited to Media Metrix, NetRatings or another similar
measuring service selected by Snowball; provided that Snowball provide
JobDirect.com with all results, compilations, analyses, data and reports
provided by such third-party in a reasonable time after receipt thereof.
JobDirect.com agrees that the rights granted under this section are exclusive to
Snowball and that JobDirect.com will not grant the same or similar rights to any
other party. Nothing contained in this Section shall limit JobDirect.com's right
to collect or analyze such data or to hire a third-party to collect or analyze
such data on JobDirect.com's behalf.

     12.10 Calculation of Periods.  With respect to the determination of any
           ----------------------
month, six month, twelve month, year or other period set forth herein and the
determination of the date of any event to occur at the end of any such period,
the anniversary of the Effective Date shall be used to determine the end of such
period. (For example, if the Effective Date is the 15th of the month, then the
end of a six-month period beginning on the Effective Date shall be the 15th of
the sixth month following the Effective Date.)

In Witness Whereof, the parties have entered into this Agreement as of the
Effective Date.

JobDirect.com, Inc.                Snowball.com, inc.

By:  /s/ Kevin E. Gage             By:  /s/ James R. Tolonen
   _________________________          ________________________

Name:    Kevin E. Gage             Name:    James R. Tolonen
     _______________________            ______________________

Title: Chairman and CEO            Title:   COO/CFO
      ______________________             _____________________
<PAGE>

                                  Schedule A
                                  ----------

                                     [**]

**Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission.

<PAGE>

                                   EXHIBIT A

                           NEW REGISTRANT BOUNTY FEE

Unless this Agreement has been terminated in accordance with its terms, at the
end of [**] after the Launch Date, JobDirect.com will pay Snowball a new
registrant bounty fee for each Qualified Registrant (as defined below) over the
Benchmark for that period (as defined below). A Qualified Registrant will be any
person who "registers with" JobDirect.com (as that term is defined in Section
5.4 of this Agreement) who has reached the age of twenty years or older.

The Benchmark for the first [**] period after the Launch Date will be [**] new
Qualified Registrants. In the event that, pursuant to the above calculation, the
number of new Qualified Registrants exceeds the Benchmark in the first [**]
after the Launch Date, the new registrant bounty fee will be as follows for each
Qualified Registrant:

First [**]

      [**]    [**]
      [**]    [**] (20+ years of age) for such number in excess of [**]
      [**]    [**] (20+ years of age) for such number in excess of [**]
      [**]    [**] (20+ years of age) for such number in excess of [**].

The Benchmark for the second [**] period after Launch Date will be [**] new
Qualified Registrants (such amount to include only those Qualified Registrants
delivered in such second [**] period and shall not include any Qualified
Registrants delivered prior to such period). In the event that, pursuant to the
above calculation, the number of new Qualified Registrants exceeds the Benchmark
for the second [**] after the Launch Date, the new registrant bounty fee will be
as follows for each Qualified Registrant:

Second [**]

       [**]    [**]
       [**]    [**] (20+ years of age) for such number in excess of [**]
       [**]    [**] (20+ years of age) for such number in excess of [**]
       [**]    [**] (20+ years of age) for such number in excess of [**].

**Confidential treatment has been requested with respect to the information
contained within "[**]" markings. Such marked portions have been omitted from
this filing and have been filed separately with the Securities and Exchange
Commission.
<PAGE>

                                  Schedule B

                                 PAYMENT TERMS

JobDirect.com will pay Snowball a total participation fee of [**]. The
participation fee will be payable in [**] installments, due and payable as set
forth below:

The parties acknowledge and agree that each date set forth below reflects a
Launch Date of March 1, 2000. In the event that the Launch Date is delayed for
any reason whatsoever, then each date set forth below shall similarly be
extended by such period of delay.

                                     [**]

**Confidential treatment has been requested with respect to the information
contained within the "[**]" markings. Such marked portions have been omitted
from this filing and have been filed separately with the Securities and Exchange
Commission.<PAGE>

                              THE PMI GROUP, INC.

                      OFFICER DEFERRED COMPENSATION PLAN

                           (Effective July 1, 1997)

                (Amended and Restated as of September 16, 1999)
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>
SECTION 1 DEFINITIONS..............................................................   1

    1.1   "Affiliate"..............................................................   1
    1.2   "Beneficiary"............................................................   1
    1.3   "Board of Directors".....................................................   1
    1.4   "Change of Control"......................................................   1
    1.5   "Code"...................................................................   3
    1.6   "Committee"..............................................................   3
    1.7   "Company Contributions"..................................................   3
    1.8   "Company"................................................................   3
    1.9   "Compensation"...........................................................   4
    1.10  "Compensation Deferrals".................................................   4
    1.11  "Disability" or "Disabled"...............................................   4
    1.12  "Eligible Employee"......................................................   4
    1.13  "Employers"..............................................................   4
    1.14  "ERISA"..................................................................   4
    1.15  "Financial Hardship".....................................................   4
    1.16  "Participant"............................................................   4
    1.17  "Participant's Account" or "Account".....................................   5
    1.18  "Plan"...................................................................   5
    1.19  "Plan Year"..............................................................   5
    1.20  "Qualified Institutional Investor".......................................   5
    1.21  "1934 Act"...............................................................   5

SECTION 2 PARTICIPATION............................................................   5

    2.1   Participation............................................................   5
    2.2   Suspension of Compensation Deferrals.....................................   6
    2.3   Termination of Participation.............................................   6

SECTION 3 COMPENSATION DEFERRAL ELECTIONS..........................................   7

    3.1   Compensation Deferrals...................................................   7
    3.2   Crediting of Compensation Deferrals......................................   7
    3.3   Company Contributions....................................................   7
    3.4   Deemed Investment Return on Accounts.....................................   7
    3.5   Form of Payment..........................................................   8
    3.6   Term of Deferral.........................................................   8
    3.7   Changes in Elections as to Term and Form for Payment.....................   8

SECTION 4 ACCOUNTING...............................................................   9

    4.1   Participants' Accounts...................................................   9
</TABLE>

                                      -i-
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>
    4.2   Participants Remain Unsecured Creditors..................................   9
    4.3   Accounting Methods.......................................................   9
    4.4   Reports..................................................................   9

SECTION 5 DISTRIBUTIONS............................................................   9

    5.1   Normal Time for Distribution.............................................   9
    5.2   Change of Control........................................................  10
    5.3   Special Rule for Death or Disability.....................................  10
    5.4   Special Rule re Deductibility............................................  10
    5.5   Latest Permissible Distribution Date.....................................  10
    5.6   Beneficiary Designations.................................................  10
    5.7   Financial Hardship.......................................................  11
    5.8   Payments to Incompetents.................................................  11
    5.9   Undistributable Accounts.................................................  11
    5.10  Committee Discretion.....................................................  12

SECTION 6 PARTICIPANT'S INTEREST IN ACCOUNT........................................  12

    6.1   Compensation Deferral Contributions......................................  12
    6.2   Vesting in Company Contributions.........................................  12

SECTION 7 ADMINISTRATION OF THE PLAN...............................................  13

    7.1   Plan Administrator.......................................................  13
    7.2   Committee................................................................  13
    7.3   Actions by Committee.....................................................  13
    7.4   Powers of Committee......................................................  13
    7.5   Decisions of Committee...................................................  14
    7.6   Administrative Expenses..................................................  14
    7.7   Eligibility to Participate...............................................  14
    7.8   Indemnification..........................................................  15

SECTION 8 FUNDING..................................................................  15

    8.1   Unfunded Plan............................................................  15

SECTION 9 MODIFICATION OR TERMINATION OF PLAN......................................  15

    9.1   Employers' Obligations Limited...........................................  15
    9.2   Right to Amend or Terminate..............................................  15
    9.3   Effect of Termination....................................................  15
</TABLE>

                                      -ii-
<PAGE>

                               TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>
SECTION 10 GENERAL.................................................................  16

    10.1  Participation by Affiliates..............................................  16
    10.2  Inalienability...........................................................  16
    10.3  Rights and Duties........................................................  16
    10.4  No Enlargement of Employment Rights......................................  16
    10.5  Apportionment of Costs and Duties........................................  16
    10.6  Compensation Deferrals Not Counted Under Other Employee Benefit Plans....  16
    10.7  Applicable Law...........................................................  17
    10.8  Severability.............................................................  17
    10.9  Captions.................................................................  17
</TABLE>

                                     -iii-
<PAGE>

                              THE PMI GROUP, INC.
                      OFFICER DEFERRED COMPENSATION PLAN

                           (Effective July 1, 1997)

     THE PMI GROUP, INC., a Delaware corporation, hereby establishes The PMI
Group, Inc. Officer Deferred Compensation Plan, effective July 1, 1997, for the
benefit of a select group of management and highly compensated employees of the
Company and its participating Affiliates, in order to provide such employees
with certain deferred compensation benefits. The Plan is an unfunded deferred
compensation plan that is intended to qualify for the exemptions provided in
sections 201, 301, and 401 of ERISA.

                                   SECTION 1

                                  DEFINITIONS
     The following words and phrases shall have the following meanings unless a
different meaning is plainly required by the context:

     1.1  "Affiliate" shall mean (a) the Company, and (b) each corporation,
trade or business which is, together with any Employer, a member of a controlled
group of corporations or an affiliated service group or under common control
(within the meaning of section 414(b), (c) or (m) of the Code), but only for the
period during which such other entity is so affiliated with any Employer.

     1.2  "Beneficiary" shall mean the person or persons entitled to receive the
balance credited to a Participant's Account under the Plan upon the death of a
Participant, as provided in Section 5.4.

     1.3  "Board of Directors" shall mean the Board of Directors of the Company,
as constituted from time to time.

     1.4  "Change of Control" shall mean:

               (a) The acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or
more of either (i) the then outstanding shares of common stock of the Company
(the "Outstanding Company Common Stock") or (ii) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the "Outstanding Company Voting Securities");
provided, however, that for purposes of
<PAGE>

this subsection (a), the following shall not constitute a Change of Control: (i)
any acquisition directly from the Company, (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company, (iv)
any beneficial ownership maintained by (but not additional acquisitions by), The
Allstate Corporation and its subsidiaries, and their respective successors
("Allstate"), pending such time that Allstate distributes or transfers its
current ownership interest in the Outstanding Company Common Stock and
Outstanding Company Voting Securities as contemplated by the Prospectus dated
April 10, 1995, relating to the initial public offering of the common stock of
the Company, or (v) any acquisition pursuant to a transaction which complies
with clauses (i), (ii) and (iii) of subsection (c) of this Section 1.4.
Notwithstanding the foregoing, in its sole discretion, the Board may increase
the 20% threshold set forth above in this subsection (a) prior to any
acquisition of 20% or more beneficial ownership of the Outstanding Company
Common Stock or the Outstanding Company Voting Securities; provided, that (i)
such increased threshold shall apply only to the acquisition and maintenance of
beneficial ownership by any Person eligible to report such beneficial ownership
at the time of such acquisition on Schedule 13G under the Exchange Act, and (ii)
in the event that any Person initially eligible to so report on Schedule 13G
thereafter ceases to be eligible to so report on Schedule 13G, the occurrence of
the event causing such Person no longer to be eligible to so report shall be
deemed an acquisition by such Person of all of the Outstanding Company Common
Stock and Outstanding Company Voting Securities beneficially owned by such
Person immediately prior to such occurrence; or

        (b) Individuals who, as of the date hereof, constitute the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

        (c) Consummation by the Company of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company or the acquisition of assets of another entity (a
"Business Combination"), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 60% of,
respectively, the then outstanding shares of common stock and the combined
voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company's assets either directly or

                                      -2-
<PAGE>

through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, as the case may
be, (ii) no Person (excluding any employee benefit plan (or related trust) of
the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Business Combination and (iii) at least a majority of the members
of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of
the initial agreement, or of the action of the Board, providing for such
Business Combination; or

        (d) Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

     Notwithstanding the foregoing, a Change of Control shall not be deemed to
occur solely because any Person acquires beneficial ownership of 20% or more of
the Outstanding Company Voting Securities or Outstanding Company Common Stock as
a result of the acquisition of such securities or stock by the Company, which
acquisition reduces the number of the Outstanding Company Voting Securities or
Outstanding Company Common Stock; provided, that if after such acquisition by
the Company such Person (while such Person remains the beneficial owner of 20%
or more of the Outstanding Company Voting Securities or Outstanding Company
Common Stock) becomes the beneficial owner of additional shares of such
Outstanding Company Voting Securities or Outstanding Company Common Stock (as
the case may be), a Change of Control shall then occur. Capitalized terms used
in this Section 1.4, not otherwise defined, shall have the meaning set forth in
the form of change of control employment agreement approved at the February 12,
1998 meeting of the Board of Directors.

     1.5  "Code" shall mean the Internal Revenue Code of 1986, as amended.
Reference to a specific section of the Code shall include such section, any
valid regulation promulgated thereunder, and any comparable provision of any
future legislation amending, supplementing or superseding such section.

     1.6  "Committee" shall mean the committee appointed by (and serving at the
pleasure of) the Chief Executive Officer of the Company (the "CEO") to
administer the Plan. As of the effective date of the Plan, the members of the
Committee shall be the CEO and the Company's senior human resources officer.

     1.7  "Company Contributions" shall mean the amounts credited to
Participants' Accounts under the Plan by the Company, in accordance with Section
3.3.

     1.8  "Company" shall mean The PMI Group, Inc., a Delaware corporation.

                                      -3-
<PAGE>

     1.9  "Compensation" shall mean the base salary and bonuses (if any) of a
Participant. The Committee, in its discretion, shall from time to time designate
the types of bonuses which shall be eligible for deferral under the Plan. A
Participant's Compensation shall not include any other type of remuneration.

     1.10 "Compensation Deferrals" shall mean the amounts credited to
Participants' Accounts under the Plan pursuant to their deferral elections made
in accordance with Section 2.1.

     1.11 "Disability" or "Disabled" shall mean the mental or physical inability
of a Participant to perform the regularly assigned duties of his or her
employment, provided that such inability (a) has continued or is expected to
continue for a period of at least 6 months and (b) is evidenced by the
certificate of a physician satisfactory to the Committee stating that such
inability exists and is likely to be permanent.

     1.12 "Eligible Employee" shall mean an employee of an Employer who holds
office at the level of Vice President or above, including any Assistant Vice
President or Field Vice President. Notwithstanding the preceding, the Board of
Directors, in its sole discretion, may (a) change the required title for
purposes of determining eligibility for the Plan, and (b) determine that one or
more otherwise eligible employees of an Employer shall not be Eligible
Employees.

     1.13 "Employers" shall mean the Company and each of its Affiliates that
adopts the Plan with the approval of the Board of Directors. With respect to an
individual Participant, "Employer" shall mean the Company or its Affiliate that
(a) directly employs such Participant, and (b) has adopted the Plan (with the
approval of the Board of Directors).

     1.14 "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended. Reference to a specific section of ERISA shall include such
section, any valid regulation promulgated thereunder, and any comparable
provision of any future legislation amending, supplementing or superseding such
section.

     1.15 "Financial Hardship" shall mean a severe financial emergency which is
caused by a sudden and unexpected accident, illness or other event beyond the
control of the Participant which, absent a suspension of deferrals under Section
2.2 or accelerated distribution under Section 5.5, would result in severe
financial burden to the Participant or a member of his or her immediate family.
A Financial Hardship does not exist to the extent that the hardship may be
relieved by (a) reimbursement or compensation by insurance, (b) by liquidation
of the Participant's other assets (to the extent such liquidation would not
itself cause severe financial hardship), or (c) any loan available to the
Participant (to the extent the payments on such loan would not themselves cause
severe financial hardship.

     1.16 "Participant" shall mean an Eligible Employee who (a) has become a
Participant in the Plan pursuant to Section 2.1 and (b) has not ceased to be a
Participant pursuant to Section 2.3.

                                      -4-
<PAGE>

     1.17 "Participant's Account" or "Account"shall mean, as to any Participant,
the separate account maintained on the books of the Company in order to reflect
his or her interest under the Plan.

     1.18 "Plan" shall mean The PMI Group, Inc. Officer Deferred Compensation
Plan, as set forth in this instrument and as hereafter amended from time to
time.

     1.19 "Plan Year" shall mean the calendar year. Notwithstanding the
preceding, the 1997 Plan Year shall be the period July 1, 1997 (the effective
date of the Plan), through December 31, 1997.

     1.20 "Qualified Institutional Investor" shall mean as of any time of
determination any Person (as defined in Section 1.4): (a) that is eligible to
file a Schedule 13G with respect to all securities of the Company beneficially
owned by such Person pursuant to Rule 13d-1(b)(1) promulgated under the 1934 Act
(as such Rule is in effect on the date hereof), (b) that is not required to file
a Schedule 13D under the 1934 Act (or any successor or comparable report) with
respect to any securities of the Company, and (c) that beneficially owns less
than 15% of the common stock of the Company, par value $.01 per share,
outstanding at the time of determination.

     1.21 "1934 Act" means the Securities and Exchange Act of 1934, as amended.

                                   SECTION 2

                                 PARTICIPATION

     2.1  Participation. Each Eligible Employee's decision to become a
Participant shall be entirely voluntary.

          2.1.1  Initial Elections by Current Employees. An Eligible Employee
may elect to become a Participant in the Plan by electing, no later than July
30, 1997, to make Compensation Deferrals under the Plan. An election under this
Section 2.1.1 to make Compensation Deferrals shall be effective only for the
remainder of the 1997 Plan Year.

          2.1.2  Initial Elections by Other Employees. Each individual who
becomes an Eligible Employee after July 1, 1997 (whether by hire or promotion)
may elect to become a Participant in the Plan by electing, within thirty days of
the date of his or her hire or promotion (as the case may be), to make
Compensation Deferrals under the Plan. An election under this Section 2.1.2 to
make Compensation Deferrals shall be effective only for the remainder of the
Plan Year with respect to which the election is made.

          2.1.3  Elections for Subsequent Plan Years.  An Eligible Employee
may elect to become a Participant (or to continue or reinstate his or her active
participation) in the Plan for any subsequent Plan Year by electing, no later
than December 31 of the preceding Plan Year, to make

                                      -5-
<PAGE>

Compensation Deferrals under the Plan. An election under this Section 2.1.3 to
make Compensation Deferrals shall be effective only for the Plan Year with
respect to which the election is made.

          2.1.4  Separate Election to Defer Bonuses.  Each Eligible Employee
shall make a separate Compensation Deferral election with respect to the bonus
portion(s) (if any) of his or her Compensation.  An Eligible Employee's
Compensation Deferral election with respect to his or her bonus(es) shall be
made no later than the deadline specified by the Committee for the particular
Plan Year during which the Eligible Employee will perform the services for which
a bonus may be paid, except to the limited extent provided in Section 2.1.2.

          2.1.5  No Election Changes During Plan Year.  After the beginning
of a Plan Year, a Participant shall not be permitted to change or revoke his or
her deferral election for such Plan Year, except to the limited extent provided
in Section 2.2.

          2.1.6  Specific Timing and Method of Election.  Notwithstanding any
contrary provision of this Section 2.1, the Committee, in its sole discretion,
shall determine the manner and deadlines for Participants to make Compensation
Deferral elections.  The deadlines prescribed by the Committee may be earlier
than the deadlines specified in this Section 2.1, but shall not be later than
such specified deadlines.

     2.2  Suspension of Compensation Deferrals.

          2.2.1  Automatic Suspension.  In the event that a Participant
receives a financial hardship withdrawal from The PMI Group, Inc. Savings and
Profit-Sharing Plan or any other plan (maintained by an Employer) which contains
a qualified cash or deferred arrangement under section 401(k) of the Code
(collectively, the "401(k) Plans"), the Participant's Compensation Deferrals
under the Plan (if any) shall be suspended for a period of twelve (12) months
from the date that the Participant received such hardship withdrawal.
Notwithstanding the preceding, the Participant's Compensation Deferrals shall be
not be so suspended if the Committee determines that such suspension is not
required in order to preserve the tax-qualification of the 401(k) Plans.

          2.2.2  Permissible Suspension.  In the event that a Participant
incurs a Financial Hardship, the Committee, in its sole discretion, may suspend
the Participant's Compensation Deferrals for the remainder of the Plan Year.
However, an election to make Compensation Deferrals under Section 2.1 shall be
irrevocable as to amounts deferred as of the effective date of any suspension in
accordance with this Section 2.2.2.

     2.3  Termination of Participation. An Eligible Employee who has become a
Participant shall remain a Participant until his or her entire vested Account
balance is distributed. However, an Eligible Employee who has become a
Participant may or may not be an active Participant making Compensation
Deferrals for a particular Plan Year, depending upon whether he or she has
elected to make Compensation Deferrals for such Plan Year.

                                      -6-
<PAGE>

                                   SECTION 3

                        COMPENSATION DEFERRAL ELECTIONS

     3.1  Compensation Deferrals. At the times and in the manner prescribed in
Section 2.1, each Eligible Employee may elect to defer portions of his or her
Compensation and to have the amounts of such deferrals credited to his or her
Account. For each Plan Year, an Eligible Employee may elect to defer an amount
equal to any percentage or any specific dollar amount of his or her
Compensation, provided that the percentage or dollar amount elected by the
Participant shall result in an expected deferral at least the lesser of (a)
$5,000, or (b) 5% of his or her Compensation. Notwithstanding any contrary
provision of the Plan, the Committee may reduce a Participant's Compensation
Deferrals to the extent necessary to satisfy any required deductions for welfare
plans or any deductions required by law.

     3.2  Crediting of Compensation Deferrals. The amounts deferred pursuant to
Section 3.1 shall reduce the Participant's Compensation for the Plan Year and
shall be credited to the Participant's Account as of the last day of the month
in which the amounts (but for the deferral) would have been paid to the
Participant. For each Plan Year, the exact dollar amount to be deferred from
each Compensation payment shall be determined by the Committee under such
formulae as it shall adopt from time to time.

     3.3  Company Contributions. A Company Contribution equal to 25% of the
amount a Participant elects to have deemed invested in the Company's Stock Fund
shall be credited to a Participant's Account, on such terms and conditions as
the Committee may specify in its sole discretion. The Company Contribution (if
any) made on behalf of a Participant shall be credited to the Participant's
Account as of the date specified by the Company.

     3.4  Deemed Investment Return on Accounts.  Although no assets will be
segregated or otherwise set aside with respect to a Participant's Account, the
amount that is ultimately payable to the Participant with respect to his or her
Account shall be determined as if such Account had been invested in such manner
as the Committee, in its discretion, may specify from time to time (including,
but not limited to, the equity return method. The Committee, in its sole
discretion, shall adopt (and may modify from time to time) such rules and
procedures as it deems necessary or appropriate to implement the deemed
investment of the Participants' Accounts. Such procedures shall (a) provide that
a Participant shall be entitled to make deemed investment elections as to the
deemed investment of his or her Account, and (b) permit a Participant to elect
(not less than once per calendar quarter) to have part or all of his or her
Account deemed to be invested in common stock of the Company (including
reinvestment of any deemed dividends). However, such procedures may differ among
Participants or classes of Participants, as determined by the Committee in its
discretion. Notwithstanding the foregoing, if any Company Contribution is
credited to a Participant's Account, such Contribution shall be deemed invested
in the Company Stock Fund.

                                      -7-
<PAGE>

     3.5  Form of Payment. Each Participant shall indicate on his or her
deferral election (made pursuant to Section 3.1) the form of payment for the
Compensation Deferrals made pursuant to such election. A Participant may elect
(a) a lump sum payment, or (b) a fixed number of annual installment payments
(not to exceed ten). A Participant's election as to the form of payment shall
apply to all amounts credited to the Participant's Account for the Plan Year
with respect to which the election is made, and except to the limited extent
provided in Section 3.7, shall be irrevocable. Any Company Contributions
credited to a Participant's Account shall be paid in the form of shares of
Company common stock, payable after the end of the term(s) of deferral elected
by the Participant for his or her Compensation Deferral with respect to which
such Company Contribution was made, provided that if the Participant receives
installment payments, the shares shall be paid with the first such installment.

     3.6  Term of Deferral. Each Participant shall indicate on his or her
deferral election made pursuant to Section 3.1 the time for payment for
Compensation Deferrals (and deemed investment returns, gains and losses thereon)
made pursuant to such election. A Participant may elect a term of deferral equal
to any whole number (not less than one) of calendar years specified in his or
her deferral election. In addition, pursuant to such procedures as the Committee
(in its discretion) may adopt from time to time, a Participant may elect a term
of deferral which ends upon the later (or earlier) of the expiration of a
specified period or the occurrence of a specific event (for example, the later
of ten years or termination of employment with the Company and all Affiliates).
A Participant's election as to the term of deferral shall apply to all amounts
credited to the Participant's Account for the Plan Year with respect to which
the election is made, and except to the limited extent provided in Section 3.7,
shall be irrevocable.

     3.7  Changes in Elections as to Term and Form for Payment.  A Participant
may change his or her election under Section 3.5 and/or Section 3.6 for amounts
credited to the Participant's Account for any Plan Year, provided that any such
election will be effective only if (a) such election is made at least twelve
months and one day prior to the date payment of such amounts is scheduled to
commence (without giving effect to such election), (b) the newly elected
scheduled payment commencement date is not earlier than the second Plan Year
after the Plan Year in which such election is made, and (c) payment of such
amounts has not actually commenced. For example, if a Participant initially
elected to receive his or her 1999 Plan Year deferrals in a lump sum to be paid
during on July 1, 2003, the Participant instead may elect to receive payment in
the form of ten annual installments commencing during the 2004 Plan Year,
provided that such election is made on or before June 30, 2002. (i.e., not less
                                                                 ----
twelve months and one day prior to the date which payment of such amounts
previously was scheduled to commence, and with a newly elected scheduled payment
commencement date which is not earlier than the second Plan Year after the Plan
Year in which such election is made).

                                      -8-
<PAGE>

                                   SECTION 4

                                   ACCOUNTING

     4.1  Participants' Accounts. For each Plan Year, at the direction of the
Committee, there shall be established and maintained on the books of the
Company, a separate Account or Accounts for each Participant to which shall be
credited all Compensation Deferrals made by the Participant during such Plan
Year, all Company Contributions made by the Company on behalf of the Participant
during the Plan Year, and deemed investment returns, gains and losses on such
Compensation Deferrals and Company Contributions.

     4.2  Participants Remain Unsecured Creditors.  All amounts credited to a
Participant's Account under the Plan shall continue for all purposes to be a
part of the general assets of the Company. Each Participant's interest in the
Plan shall make him or her only a general, unsecured creditor of the Company.

     4.3  Accounting Methods.  The accounting methods or formulae to be used
under the Plan for the purpose of maintaining the Participants' Accounts,
including the calculation and crediting (or debiting) of deemed returns, gains
and losses, shall be determined by the Committee, in its sole discretion. The
accounting methods or formulae selected by the Committee may be revised from
time to time.

     4.4  Reports.  Each Participant shall be furnished with periodic statements
of his or her Account, reflecting the status of his or her interest in the Plan,
at least annually.

                                   SECTION 5

                                 DISTRIBUTIONS

     5.1   Normal Time for Distribution.  Subject to Sections 5.2 through 5.5
and Section 5.10, distribution of the balance credited to a Participant's
Account shall commence as soon as administratively practicable after the end of
the term(s) of deferral elected by the Participant under Section 3.6, in
accordance with the following rules. If, pursuant to Section 3.5, the
Participant elected to receive annual installment payments, his or her first
installment shall be equal to the balance then credited to his or her Account,
divided by the number of installments to be made. Each subsequent annual
installment shall be paid to the Participant as near as administratively
practicable to each anniversary of the first installment payment. The amount of
each subsequent installment shall be equal to the balance then credited to the
Participant's Account, divided by the number of installments remaining to be
made. While a Participant's Account is in installment payout status, the unpaid
balance credited to the Participant's Account shall continue to be credited (or
debited) with deemed investment returns, gains and losses under Section 3.4.

                                      -9-
<PAGE>

     5.2  Change of Control.  If there is a Change of Control, the balance then
credited to a Participant's Account shall be distributed to him or her in a lump
sum as soon as administratively practicable after the date of the Change of
Control. Deemed investment returns, gains and losses shall be credited (or
debited) prior to any such accelerated distribution in accordance with Section
3.4. The amount of any such accelerated lump sum distribution shall also include
any amount that the Participant deferred but which has not yet been credited to
his or her Account.

     5.3  Special Rule for Death or Disability.  If a Participant dies or
becomes Disabled, the balance then credited to his or her Account shall be
distributed to the Participant (or his or her Beneficiary) at the time and in
the form elected by the Participant pursuant to Sections 3.5 and 3.6; provided,
however, that the Committee, in its sole discretion, may elect to distribute
such amount in a lump sum as soon as administratively practicable after the date
of death or Disability. In accordance with Section 3.4, deemed investment
returns, gains and losses shall be credited (or debited) prior to any such
accelerated distribution.

     5.4  Special Rule re Deductibility.  Notwithstanding any contrary provision
of Section 5.1, any payment scheduled for a particular Plan Year shall not be
made in such Plan Year to the extent necessary to avoid application of the
deductibility limitation of section 162(m) of the Code. (For this purpose,
deductibility shall be determined by adding such payment to all other
compensation paid by the Company and its Affiliates to the Participant during
the Plan Year.) If, pursuant to the foregoing sentences, any amounts are not
paid when originally scheduled, such amounts shall be paid in the first
subsequent taxable year in which such payments would not be subject to the
deductibility limitation of section 162(m) of the Code. During any such delay in
payment, unpaid amounts shall continue to be credited (or debited) with deemed
investment returns, gains and losses under Section 3.4. Notwithstanding the
foregoing, distribution of a Participant's Account shall be made without regard
to the deductibility limitation of section 162(m) of the Code if the time for
distribution is accelerated pursuant to Section 5.2 or Section 5.3.

     5.5  Latest Permissible Distribution Date. Notwithstanding any contrary
provision of this Section 5, any amount which is credited to a Participant's
Account on January 15 of the second calendar year following the year in which
the Participant terminates employment with the Company and all of its Affiliates
shall be distributed to the Participant (or his or her Beneficiary) in a single
lump sum as soon as administratively practicable after such January 15. Any such
amount shall continue to be credited (or debited) with deemed investment
returns, gains and losses until the date of payment. For example, if a
Participant terminates employment with the Company and all of its Affiliates
during July 2000, and an amount remains credited to his or her Account on
January 15, 2002 (after application of the other provisions of Section 5), then
such amount (as increased or decreased by deemed investment returns, gains and
losses) shall be distributed to the Participant (or his or her Beneficiary) in a
lump sum as soon as administratively practicable after January 15, 2002.

     5.6  Beneficiary Designations.  Each Participant may, pursuant to such
procedures as the Committee may specify, designate one or more Beneficiaries.

                                      -10-
<PAGE>

          5.6.1  Spousal Consent.  If a Participant designates a person other
than or in addition to his or her spouse as a primary Beneficiary, the
designation shall be ineffective unless the Participant's spouse consents to the
designation.  Any spousal consent required under this Section 5.6 shall be
ineffective unless it (a) is set forth in writing in a form specified in the
discretion of the Committee, (b) acknowledges the effect of the Participant's
designation of another person as his or her Beneficiary under the Plan, and (c)
is signed by the spouse and witnessed by an authorized agent of the Committee or
a notary public.  Notwithstanding this consent requirement, if the Participant
establishes to the satisfaction of the Committee that written spousal consent
may not be obtained because the spouse cannot be located, his or her designation
shall be effective without a spousal consent.  Any spousal consent required
under this Section 5.6 shall be valid only with respect to the spouse who signs
the consent.  A Participant may revoke his or her Beneficiary designation at any
time, provided that such revocation is in writing.

          5.6.2  Changes and Failed Designations. A Participant may designate
different Beneficiaries (or may revoke a prior Beneficiary designation) at any
time by delivering a new designation (or revocation of a prior designation) in
accordance with Section 5.6.1. Any designation or revocation shall be effective
only if it is received by the Committee. However, when so received, the
designation or revocation shall be effective as of the date the notice is
executed (whether or not the Participant still is living), but without prejudice
to the Committee on account of any payment made before the change is recorded.
The last effective designation received by the Committee shall supersede all
prior designations. If a Participant dies without having effectively designated
a Beneficiary, or if no Beneficiary survives the Participant, the Participant's
Account shall be payable to his or her surviving spouse, or, if the Participant
is not survived by his or her spouse, the Account shall be paid to his or her
estate.

     5.7  Financial Hardship.  In the event that a Participant incurs a
Financial Hardship, the Committee, in its sole discretion and notwithstanding
any contrary provision of the Plan, may determine that all or part of the
Participant's Account shall be paid to him or her immediately; provided,
however, that the amount paid to the Participant pursuant to this Section 5.7
shall be limited to the amount reasonably necessary to alleviate the
Participant's Financial Hardship. Also, payment under this Section 5.7 may not
be made to the extent that the hardship may be relieved by suspension of the
Participant's Compensation Deferrals in accordance with Section 2.2.

     5.8  Payments to Incompetents.  If any individual to whom a benefit is
payable under the Plan is a minor or legally incompetent, the Committee shall
determine whether payment shall be made directly to the individual, any person
acting as his or her custodian or legal guardian under the California Uniform
Transfers to Minors Act, his or her legal representative or a near relative, or
directly for his or her support, maintenance or education.

     5.9  Undistributable Accounts. Each Participant and (in the event of death)
his or her Beneficiary shall keep the Committee advised of his or her current
address. If the Committee is unable to locate the Participant or Beneficiary to
whom a Participant's Account is payable under this Section 5, the Participant's
Account shall continue to be credited (or debited) with deemed

                                      -11-
<PAGE>

investment returns, gains and losses in accordance with Section 3.3. Accounts
that, in accordance with the preceding sentence, have been undistributable for a
period of thirty-five months shall be forfeited as of the end of the thirty-
fifth month. If a Participant whose Account was forfeited under this Section 5.9
(or his or her Beneficiary) files a claim for distribution of the Account after
the date on which it was forfeited, and if the Committee determines that such
claim is valid, then the forfeited balance shall be paid by the Employer in a
lump sum cash payment as soon as practicable thereafter (without interest or any
deemed investment returns, gains or losses after the date of forfeiture).

     5.10 Committee Discretion.  Within the specific time periods described in
this Section 5, the Committee shall have sole discretion to determine the
specific timing of the payment of any Account balance under the Plan. In
addition and notwithstanding any contrary provision of the Plan, the Committee,
in its sole discretion, may cause the balance credited to a Participant's
Account to be paid to him or her in a lump sum at any time following the
Participant's termination of employment with all Employers and Affiliates.

                                   SECTION 6

                       PARTICIPANT'S INTEREST IN ACCOUNT

     6.1  Compensation Deferral Contributions. Subject to Sections 8.1 (relating
to creditor status) and 9.2 (relating to amendment and/or termination of the
Plan), a Participant's interest in the balance credited to his or her Account at
all times shall be 100% vested and nonforfeitable.

     6.2  Vesting in Company Contributions.  Except as provided in the following
sentence, a Participant's interest in his or her Company Contribution (if any)
shall become 100% vested and nonforfeitable on the earlier of (a) the date that
is three years after the date as of which such Company Contribution was made
(but only if the Participant does not terminate employment prior to the end of
such three year period), (b) the date on which a Change of Control occurs, or
(c) the date on which the Participant terminates employment due to death or
Disability. If a Participant transfers any Compensation Deferral out of the
Company Stock Fund prior to any Company Contribution associated with such
Compensation Deferral becoming vested in accordance with the preceding sentence,
such Company Contribution shall be immediately forfeited. For example, if a
Participant elects to have $10,000 of his or her Compensation Deferral deemed
invested in the Company Stock Fund and transfers 50% of such Compensation
Deferral (as adjusted for earnings or losses) out of the Company Stock Fund
prior to the Company Contribution on that Compensation Deferral becoming vested,
50% of the Company Contribution (i.e., $1,250, as adjusted for earnings of
losses) shall be immediately forfeited. The vested portion of a Participant's
Account shall be distributable to him or her in the manner and at the time set
forth in Section 5, and any unvested portion of such Account shall be
permanently forfeited.

                                      -12-
<PAGE>

                                   SECTION 7

                           ADMINISTRATION OF THE PLAN

     7.1  Plan Administrator. The Company is hereby designated as the
administrator of the Plan (within the meaning of section 3(16)(A) of ERISA).

     7.2  Committee.  The Plan shall be administered by the Committee. The
Committee shall have the authority to control and manage the operation and
administration of the Plan. Any member of the Committee may resign at any time
by notice in writing mailed or delivered to the Secretary of the Company.

     7.3  Actions by Committee. Each decision of a majority of the members of
the Committee then in office shall constitute the final and binding act of the
Committee. The Committee may act with or without a meeting being called or held
and shall keep minutes of all meetings held and a record of all actions taken by
written consent.

     7.4  Powers of Committee.  The Committee shall have all powers and
discretion necessary or appropriate to supervise the administration of the Plan
and to control its operation in accordance with its terms, including, but not by
way of limitation, the following powers:

               (a) To interpret and determine the meaning and validity of the
provisions of the Plan and to determine any question arising under, or in
connection with, the administration, operation or validity of the Plan or any
amendment thereto;

               (b) To determine the types of bonuses which shall be eligible for
deferral under the Plan;

               (c) To determine any and all considerations affecting the
eligibility of any employee to become a Participant or remain a Participant in
the Plan;

               (d) To cause one or more separate Accounts to be maintained for
each Participant;

               (e) To cause Compensation Deferrals and deemed returns, gains and
losses to be credited to Participants' Accounts;

               (f) To establish and revise a method or procedure for the deemed
investment of Participants' Accounts, as provided in Section 3.3;

               (g) To establish and revise an accounting method or formula for
the Plan, as provided in Section 4.3;

                                      -13-
<PAGE>

               (h) To determine the manner and form in which any distribution is
to be made under the Plan;

               (i) To determine the manner and form for making elections under
the Plan;

               (j) To determine the status and rights of Participants and their
spouses, Beneficiaries or estates;

               (k) To employ such counsel, agents and advisers, and to obtain
such legal, clerical and other services, as it may deem necessary or appropriate
in carrying out the provisions of the Plan;

               (l) To establish, from time to time, rules for the performance of
its powers and duties and for the administration of the Plan;

               (m) To arrange for annual distribution to each Participant of a
statement of benefits accrued under the Plan;

               (n) To publish a claims and appeal procedure satisfying the
minimum standards of section 503 of ERISA pursuant to which individuals or
estates may claim Plan benefits and appeal denials of such claims;

               (o) To delegate to any one or more of its members or to any other
person, severally or jointly, the authority to perform for and on behalf of the
Committee one or more of the functions of the Committee under the Plan;

               (p) To decide all issues regarding the conversion of
Participants' Accounts into stock options, the use of such Accounts to exercise
stock options or any related matter; and

               (q) To decide all issues and questions regarding Account
balances, and the time, form, manner and amount of distributions to
Participants.

     7.5  Decisions of Committee.  All actions, interpretations, and decisions
of the Committee shall be conclusive and binding on all persons, and shall be
given the maximum possible deference allowed by law.

     7.6  Administrative Expenses.  All expenses incurred in the administration
of the Plan by the Committee, or otherwise, including legal fees and expenses,
shall be paid and borne by the Employers.

     7.7  Eligibility to Participate.  No member of the Committee who is also an
employee of an Employer shall be excluded from participating in the Plan if
otherwise eligible, but he or she shall

                                      -14-
<PAGE>

not be entitled, as a member of the Committee, to act or pass upon any matters
pertaining specifically to his or her own Account under the Plan.

     7.8  Indemnification.  Each of the Employers shall, and hereby does,
indemnify and hold harmless the members of the Committee, from and against any
and all losses, claims, damages or liabilities (including attorneys' fees and
amounts paid, with the approval of the Board of Directors, in settlement of any
claim) arising out of or resulting from the implementation of a duty, act or
decision with respect to the Plan, so long as such duty, act or decision does
not involve gross negligence or willful misconduct on the part of any such
individual.

                                   SECTION 8

                                    FUNDING

     8.1  Unfunded Plan.  All amounts credited to a Participant's Account under
the Plan shall continue for all purposes to be a part of the general assets of
the Company. The interest of the Participant in his or her Account, including
his or her right to distribution thereof, shall be an unsecured claim against
the general assets of the Company. Nothing contained in the Plan shall (a) give
any Participant or beneficiary any interest in or claim against any specific
assets of the Company, nor (b) prevent the Company (with the consent of its
board of directors) from establishing a grantor trust (within the meaning of
subpart E, part I, subchapter J, chapter 1, subtitle A of the Code) to assist
the Company in fulfilling its obligations under the Plan.

                                   SECTION 9

                      MODIFICATION OR TERMINATION OF PLAN

     9.1  Employers' Obligations Limited.  The Employers intend to continue the
Plan indefinitely, and to maintain each Participant's Account until it is
scheduled to be paid to him or her in accordance with the provisions of the
Plan. However, the Plan is voluntary on the part of the Employers, and the
Employers do not guarantee to continue the Plan. The Company at any time may, by
amendment of the Plan, suspend Compensation Deferrals or may discontinue
Compensation Deferrals, with or without cause. Complete discontinuance of all
Compensation Deferrals shall be deemed a termination of the Plan.

     9.2  Right to Amend or Terminate.  The Board of Directors, in its sole
discretion, may amend or terminate the Plan, or any part thereof, at any time
and for any reason, provided that no amendment or termination of the Plan shall,
without the consent of the Participant, reduce the balance then credited to the
Participant's Account.

     9.3  Effect of Termination.  If the Plan is terminated pursuant to this
Section 9, the balances credited to the Accounts of the affected Participants
shall be distributed to them at the time

                                      -15-
<PAGE>

and in the manner set forth in Section 5; provided, however, that the Committee,
in its sole discretion, may authorize accelerated distribution of Participants'
Accounts as of any earlier date.

                                   SECTION 10

                                    GENERAL

     10.1 Participation by Affiliates.  One or more Affiliates of the Company
may become participating Employers by adopting the Plan and obtaining approval
for such adoption from the Board of Directors. By adopting the Plan, an
Affiliate is deemed to agree to all of its terms, including (but not limited to)
the provisions granting exclusive authority to the Board of Directors to amend
the Plan and the provisions granting exclusive authority to the Committee to
administer and interpret the Plan. Any Affiliate may terminate its participation
in the Plan at any time. A list of participating Employers, and the effective
dates of their participation, is attached hereto as Appendix A.

     10.2 Inalienability.  In no event may any Participant, Beneficiary, spouse
or estate sell, transfer, anticipate, assign, hypothecate, or otherwise dispose
of any right or interest under the Plan; and such rights and interests shall not
at any time be subject to the claims of creditors nor be liable to attachment,
execution or other legal process. Accordingly, for example, a Participant's
interest in the Plan is not transferable pursuant to a domestic relations order.

     10.3 Rights and Duties.  Neither the Employers nor the Committee shall be
subject to any liability or duty under the Plan except as expressly provided in
the Plan, or for any action taken, omitted or suffered in good faith.

     10.4 No Enlargement of Employment Rights.  Neither the establishment or
maintenance of the Plan, the making of any Compensation Deferrals nor any action
of any Employer or the Committee, shall be held or construed to confer upon any
individual any right to be continued as an employee of the Employer nor, upon
dismissal, any right or interest in any specific assets of the Employers other
than as provided in the Plan. Each Employer expressly reserves the right to
discharge any employee at any time.

     10.5 Apportionment of Costs and Duties.  All acts required of the Employers
under the Plan may be performed by the Company for itself and its Affiliates,
and the costs of the Plan shall be equitably apportioned by the Committee among
the Company and the other Employers. Whenever an Employer is permitted or
required under the terms of the Plan to do or perform any act, matter or thing,
it shall be done and performed by any officer or employee of the Employer who is
thereunto duly authorized by the board of directors of the Employer.

     10.6 Compensation Deferrals Not Counted Under Other Employee Benefit
Plans. Compensation Deferrals under the Plan will not be considered for purposes
of contributions or

                                      -16-
<PAGE>

benefits under any other employee benefit plan sponsored by the Employers,
except to the extent specifically provided in any such plan.

     10.7 Applicable Law. The provisions of the Plan shall be construed,
administered and enforced in accordance with ERISA, and to the extent not
preempted by ERISA, with the laws of the State of California (other than its
conflict of laws provisions).

     10.8 Severability.  If any provision of the Plan is held invalid or
unenforceable, its invalidity or unenforceability shall not affect any other
provisions of the Plan, and in lieu of each provision which is held invalid or
unenforceable, there shall be added as part of the Plan a provision that shall
be as similar in terms to such invalid or unenforceable provision as may be
possible and be valid, legal, and enforceable.

     10.9 Captions.  The captions contained in and the table of contents
prefixed to the Plan are inserted only as a matter of convenience and for
reference and in no way define, limit, enlarge or describe the scope or intent
of the Plan nor in any way shall affect the construction of any provision of the
Plan.

                                      -17-
<PAGE>

                                   EXECUTION

IN WITNESS WHEREOF, The PMI Group, Inc., by its duly authorized officer, has
executed this Plan on the date indicated below.

                                    THE PMI GROUP, INC.

                                    ________________________________________
Dated: September ___1999            By:

                                    Title:

                                      -18-
<PAGE>

                                   APPENDIX A

                        LIST OF PARTICIPATING EMPLOYERS

           Employer                   Effective Date of Participation

1.  The PMI Group, Inc.                         July 1, 1997

2.  PMI Mortgage Insurance Co.                  July 1, 1997

3.  Residential Guaranty Co.                    July 1, 1997

4.  PMI Mortgage Guaranty Co.                   July 1, 1997

5.  PMI Mortgage Services Inc.                  July 1, 1997

6.  PMI Securities Co.                          July 1, 1997

7.  American Pioneer Title Insurance Company    July 1, 1997

                                      -19-

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