Document:

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                                                                    EXHIBIT 10.4

                       THE PMI GROUP, INC. RETIREMENT PLAN

                           (July 30, 2002 Restatement)

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                                TABLE OF CONTENTS
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INTRODUCTION ................................................................................      1

ARTICLE 1 DEFINITIONS .......................................................................      2
   1.01   "Accrued Benefit" .................................................................      2
   1.02   "Active Participant" ..............................................................      2
   1.03   "Actuarial Equivalent" ............................................................      2
   1.04   "Actuary" .........................................................................      2
   1.05   "Adjustment Factor" ...............................................................      2
   1.06   "Affiliated Employer" .............................................................      2
   1.07   "Applicable Interest Rate" ........................................................      2
   1.08   "Beneficiary" .....................................................................      2
   1.09   "Benefit Accrual Service" .........................................................      2
   1.10   "Benefit Commencement Date" .......................................................      2
   1.11   "Board" or "Board of Directors" ...................................................      3
   1.12   "Break in Service" ................................................................      3
   1.13   "Code" ............................................................................      3
   1.14   "Committee" .......................................................................      3
   1.15   "Compensation" ....................................................................      3
   1.16   "Compensation Limit" ..............................................................      4
   1.17   "Covered Compensation" ............................................................      4
   1.18   "Deferred Vested Benefit" .........................................................      4
   1.19   "Early Retirement Benefit" ........................................................      4
   1.20   "Early Retirement Date" ...........................................................      4
   1.21   "Effective Date" ..................................................................      4
   1.22   "Eligible Employee" ...............................................................      4
   1.23   "Employee" ........................................................................      5
   1.24   "Employee's Age" ..................................................................      5
   1.25   "Employer" ........................................................................      5
   1.26   "Employment Commencement Date" ....................................................      5
   1.27   "ERISA" ...........................................................................      5
   1.28   "Final Average Compensation" ......................................................      5
   1.29   "Fund" ............................................................................      5
   1.30   "Funding Agent" ...................................................................      5
   1.31   "Highly Compensated Employee" and "Highly Compensated Former Employee" ............      5
   1.32   "Hour of Service" .................................................................      6
   1.33   "Joint Annuitant" .................................................................      6
   1.34   "Joint & Survivor Annuity" ........................................................      6
   1.35   "Leased Employee" .................................................................      6
   1.36   "Limitation Year" .................................................................      6
   1.37   "Maternity or Paternity Absence" ..................................................      6
   1.38   "Named Fiduciary" .................................................................      6
   1.39   "Normal Retirement Age" ...........................................................      6
   1.40   "Normal Retirement Benefit" .......................................................      6
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   1.41  "Normal Retirement Date" ..................................................     6
   1.42  "One-Year Break in Service" ...............................................     6
   1.43  "Participant" .............................................................     6
   1.44  "Participation" ...........................................................     6
   1.45  "Period of Benefit Accrual Service"........................................     7
   1.46  "Period of Service" .......................................................     7
   1.47  "PIN" .....................................................................     7
   1.48  "Plan" ....................................................................     7
   1.49  "Plan Sponsor" ............................................................     7
   1.50  "Plan Year" ...............................................................     7
   1.51  "Postponed Retirement Benefit" ............................................     7
   1.52  "Postponed Retirement Date" ...............................................     7
   1.53  "Predecessor Employer" ....................................................     7
   1.54  "Predecessor to this Plan" ................................................     7
   1.55  "Qualified Joint & Survivor Annuity" ......................................     7
   1.56  "Reemployment Date" .......................................................     8
   1.57  "Retirement Date" .........................................................     8
   1.58  "Severance Period" ........................................................     8
   1.59  "Spouse" ..................................................................     8
   1.60  "Termination" .............................................................     8
   1.61  "Termination Date" ........................................................     8
   1.62  "Trust" ...................................................................     8
   1.63  "Trustee" .................................................................     8
   1.64  "Year of Benefit Accrual Service" .........................................     8
   1.65  "Year of Vesting Service" .................................................     9

ARTICLE 2 SERVICE COUNTING RULES ...................................................    10

   2.01  Period of Service-- General Rule ..........................................    10
   2.02  Period of Service-- Computation ...........................................    10
   2.03  Benefit Accrual Service ...................................................    11
   2.04  Service-- General Rule ....................................................    11

ARTICLE 3 ELIGIBILITY FOR PARTICIPATION AND TRANSFERS ..............................    12

   3.01  Eligibility to Become a Participant .......................................    12
   3.02  Transfer to Another Plan ..................................................    12

ARTICLE 4 RETIREMENT ELIGIBILITY AND SUSPENSION OF BENEFITS ........................    13

   4.01  Retirement ................................................................    13
   4.02  Suspension of Benefits-- Postponed Retirement .............................    13
   4.03  Suspension of Benefits-- Rehires ..........................................    13
   4.04  Suspension of Benefit Notice ..............................................    13
   4.05  Section 203(a)(3)(B) Service ..............................................    13
   4.06  Recommencement of Benefits ................................................    14
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   4.07  Required Commencement at Age 70 1/2 .....................................   14
   4.08  Required Commencement -- Conditions .....................................   14
   4.09  Blocking ................................................................   14

ARTICLE 5 AMOUNT OF RETIREMENT BENEFIT ...........................................   15

   5.01  Normal Retirement Benefit ...............................................   15
   5.02  Postponed Retirement Benefit ............................................   17
   5.03  Early Retirement Benefit ................................................   17
   5.04  Accrued Benefit-- Participant Who Has Attained Retirement Age ...........   18
   5.05  Accrued Benefit-- Who has Not Attained Retirement Age shall be: .........   18
   5.06  Adjustment for Suspension of Benefits ...................................   19

ARTICLE 6 REQUIRED BENEFIT LIMITATIONS ...........................................   20

   6.01  Code Section 415 Limits .................................................   20
   6.02  Special Limitation for 25 Highest-Paid Employees ........................   21
   6.03  Exceptions to Special Limitation ........................................   21
   6.04  Distributions Allowed if Security Furnished .............................   22
   6.05  Plan Termination Limit ..................................................   22
   6.06  Highly Compensated Employee or Former Employee ..........................   22
   6.07  Definitions .............................................................   23

ARTICLE 7 VESTING.................................................................   24

   7.01  General Rule ............................................................   24
   7.02  Vesting at Normal Retirement Age ........................................   24
   7.03  Vesting Before Normal Retirement Age ....................................   24
   7.04  Vesting Upon Plan Termination ...........................................   24
   7.05  Vesting Service Disregarded .............................................   24
   7.06  Repayment of Cash-Out ...................................................   25
   7.07  Vesting Service .........................................................   25

ARTICLE 8 QUALIFIED PRERETIREMENT SURVIVOR ANNUITY ...............................   26

   8.01  Automatic Preretirement Spousal Death Benefit ...........................   26

ARTICLE 9 FORMS OF BENEFIT .......................................................   28

   9.01  Qualified Joint & Survivor Annuity ......................................   28
   9.02  Involuntary Lump Sum Payment ............................................   28
   9.03  Right to Elect ..........................................................   28
   9.04  Election of Forms .......................................................   28
   9.05  Optional Forms of Retirement Benefit ....................................   29
   9.06  Beneficiary .............................................................   30
   9.07  Eligible Rollover Distributions .........................................   31
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ARTICLE 10 FUNDING ..............................................................    32
   10.01  Funding Agreement .....................................................    32
   10.02  Non-Diversion of the Fund .............................................    32

ARTICLE 11 PLAN ADMINISTRATION ..................................................    33
   11.01  Appointment of Committee ..............................................    33
   11.02  Powers and Duties .....................................................    33
   11.03  Actions by the Committee ..............................................    34
   11.04  Interested Committee Members ..........................................    35
   11.05  Indemnification .......................................................    35
   11.06  Conclusiveness of Action ..............................................    35
   11.07  Payment of Expenses ...................................................    35

ARTICLE 12 FUNDING POLICY AND CONTRIBUTIONS .....................................    36
   12.01  Employer Contributions ................................................    36
   12.02  Participant Contributions .............................................    36
   12.03  Contingent Nature of Contributions ....................................    36

ARTICLE 13 AMENDMENT, TERMINATION AND MERGER OF THE PLAN ........................    37
   13.01  Right to Amend the Plan ...............................................    37
   13.02  Right to Terminate the Plan ...........................................    37
   13.03  Allocation of Assets and Surplus ......................................    37
   13.04  Plan Mergers, Consolidations, and Transfers ...........................    37
   13.05  Amendment of Vesting Schedule .........................................    38

ARTICLE 14 TOP-HEAVY PLAN PROVISIONS ............................................    39
   14.01  General Rule ..........................................................    39
   14.02  Vesting Provision .....................................................    39
   14.03  Minimum Benefit Provision .............................................    39
   14.04  Coordination With Other Plans .........................................    40
   14.05  Top-Heavy and Super Top-Heavy Plan Definition .........................    40
   14.06  Key Employee ..........................................................    42
   14.07  Non-Key Employee ......................................................    42
   14.08  Collective Bargaining Rules ...........................................    43

ARTICLE 15 MISCELLANEOUS.........................................................    44
   15.01  Limitation on Distributions ...........................................    44
   15.02  Limitation on Reversion of Contributions ..............................    44
   15.03  Voluntary Plan ........................................................    44
   15.04  Nonalienation of Benefits .............................................    44
   15.05  Inability to Receive Benefits .........................................    45
   15.06  Missing Persons .......................................................    45
   15.07  Military Service ......................................................    45
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    15.08    Limitation of Third-Party Rights.....................................   45
    15.09    Invalid Provisions...................................................   45
    15.10    One Plan.............................................................   45
    15.11    Use and Form of Words................................................   45
    15.12    Headings.............................................................   46
    15.13    Governing Law........................................................   46
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                                  INTRODUCTION

         The PMI Group, Inc., having established The PMI Group, Inc. Retirement
Plan (the "Plan") effective as of April 1, 1995, and having amended and/or
restated the Plan on several subsequent occasions, hereby again amends and
restates the Plan in its entirety, effective as of July 30, 2002 (except as
otherwise provided herein). This amended and restated Plan is intended as good
faith compliance with the requirements of the Economic Growth and Tax
Reconciliation Act of 2001 ("EGTRRA") and is to be construed in accordance with
EGTRRA and guidance issued thereunder. The Plan is intended to qualify under
Section 401(a) of the Internal Revenue Code of 1986, as amended.

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                                   ARTICLE 1

                                   DEFINITIONS

1.01     "Accrued Benefit". shall mean the amount of annual pension benefit,
         payable as a straight life annuity, commencing at Normal Retirement
         Age, as shall be considered accrued at any time for a Participant in
         accordance with the provisions of Article 5.

1.02     "Active Participant". shall mean a Participant who also is an Eligible
         Employee.

1.03     "Actuarial Equivalent". shall mean a benefit of equivalent current
         value to the benefit that would otherwise have been provided to the
         Participant, determined on the basis of appropriate actuarial
         assumptions and methods that may differ from those used in establishing
         Plan costs and liabilities. Interest shall be eight percent per annum
         and mortality shall be the "applicable mortality table" described in
         Section 417(e)(3) of the Code; provided, however, that the interest
         used for determining lump sums shall be the Applicable Interest Rate.

1.04     "Actuary". shall mean that individual who is an "enrolled actuary" as
         defined in Section 7701(a)(35) of the Code or that firm of actuaries
         that has on its staff such an actuary, appointed by the Committee.

1.05     "Adjustment Factor". shall mean the cost of living adjustment factor
         prescribed by the Secretary of the Treasury under Section 415(d) of the
         Code for years beginning after December 31, 1987, applied to such items
         and in such manner as the Secretary shall prescribe.

1.06     "Affiliated Employer". shall mean the Plan Sponsor and any corporation,
         trade, or business, which, together with the Plan Sponsor, is a member
         of a "controlled group of corporations," a group under "common
         control," or an "affiliated service group," all as determined under
         Sections 414(b), (c), (m), (o) of the Code, provided that solely for
         purposes of Section 6.01, the rule set forth in Section 415(h) of the
         Code also shall apply.

1.07     "Applicable Interest Rate". shall be the average daily interest rate on
         30-year Treasury securities for the fifth month preceding the start of
         the Plan Year.

1.08     "Beneficiary". shall mean that person or persons or entity or entities
         (including a trust) or estate that shall be entitled to receive
         benefits payable pursuant to the provisions of this Plan by virtue of a
         Participant's death, pursuant to the provisions of Article 9.

1.09     "Benefit Accrual Service". shall mean the period of service of a
         Participant that is used to calculate the amount of the Participant's
         Accrued Benefit, determined in accordance with Article 2.

1.10     "Benefit Commencement Date". shall mean the first day of the month
         coincident with or following the date of Termination or the date when
         the Participant first becomes eligible to

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         begin to receive benefits unless the Participant elects to postpone
         receiving benefits until a later date, even though the first payment
         may not actually have been made at that date.

1.11     "Board" or "Board of Directors". shall mean the Board of Directors of
         the Plan Sponsor, except that any action that could be taken by the
         Board may also be taken by a duly authorized Committee of the Board.

1.12     "Break in Service". shall mean a Termination followed by the completion
         of a One-Year Break in Service.

1.13     "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.

1.14     "Committee". shall mean the committee of individuals appointed by the
         Board to be responsible for the operations and administration of the
         Plan in accordance with the provisions of Article 11.

1.15     "Compensation". shall mean an Employee's wages, salaries, fees for
         professional services, and other amounts received (without regard to
         whether or not an amount is paid in cash) for services actually
         rendered in the course of employment with the Employer to the extent
         that amounts are includable in gross income. Compensation shall also
         include any remuneration that is currently excluded from the
         Participant's gross income by reason of the application of Sections
         125, 129, 401(k), 402(h)(1)(B) or 132(f)(4) of the Code.
         Notwithstanding the foregoing, Compensation with respect to any
         Employee shall exclude:

         (a)   Any compensation directly paid or payable as fringe benefits;

         (b)   Any contributions made by the Employer for or on account of the
               Employees under this Plan, or under any other employee benefit
               plan other than as specifically excepted herein;

         (c)   Any compensation paid or payable by reason of services performed
               prior to the date the Employee becomes a Participant;

         (d)   Any compensation paid or payable by reason of services performed
               after the date the Employee ceased to be a Participant;

         (e)   Any compensation paid as part of a severance agreement;

         (f)   Any compensation paid in lieu of vacation not taken;

         (g)   Amounts in excess of the Compensation Limit; and

         (h)   Any equity-based compensation (including, but not limited to,
               stock options, restricted or unrestricted stock and performance
               shares) under the Plan Sponsor's Equity Incentive Plan or any
               similar equity-based plan or arrangement sponsored by an
               Affiliated Employer, whether such compensation is paid in shares
               of stock or cash.

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1.16     "Compensation Limit". shall mean the dollar limit prescribed in Section
         401(a)(17) of the Code, as adjusted pursuant to Sections 401(a)(17)(B)
         and 415(d) of the Code (e.g., $200,000 for 2002). In determining
         benefit accruals in Plan Years beginning after December 31, 2001, the
         Compensation Limit for determination periods beginning before January
         1, 2002 shall be $200,000.

1.17     "Covered Compensation". shall mean, with respect to any Participant,
         the average of the contribution and benefit bases in effect under
         Section 230 of the Social Security Act for each year in the 35-year
         period ending with the year in which the Participant attains Social
         Security retirement age, as calculated under Section 401(l)(5)(e)(i) of
         the Code using the unrounded values.

1.18     "Deferred Vested Benefit". shall mean the benefit to which a vested
         Participant would be entitled after a Break in Service, as calculated
         in accordance with Article 5.

1.19     "Early Retirement Benefit". shall mean the benefit to which a
         Participant would be entitled in the event of his retirement at his or
         her Early Retirement Date, as calculated in accordance with Article 5.

1.20     "Early Retirement Date". shall mean the date on which a Participant
         becomes eligible and elects to retire with an early retirement benefit
         under the Plan, as determined in accordance with Section 5.03.

1.21     "Effective Date". shall mean July 30, 2002, except as otherwise
         provided herein; provided, however, that any provision of the Plan
         necessary or appropriate to comply with the Economic Growth and Tax
         Relief Reconciliation Act of 2001 or any other applicable legislation
         shall be effective as of the date specified in such legislation.

1.22     "Eligible Employee". shall mean every Employee of an Employer except an
         Employee:

         (a)   who is an individual included in a unit of Employees whose
               compensation and conditions of employment are established by the
               terms of a collective bargaining agreement between an Employer
               and employee representatives, as described in Section 7701(a)(46)
               of the Code, where retirement benefits were the subject of good
               faith bargaining, unless and until such collective bargaining
               agreement provides that the Plan will apply to such individual;
               or

         (b)   who is an individual included in a unit or class of Employees who
               are excluded from coverage by the Plan pursuant to the policies
               and records of the Plan Sponsor; or

         (c)   who, as to any period of time, is classified or treated by an
               Employer as an independent contractor, a consultant, a Leased
               Employee, or an employee of an employment agency or any entity
               other than an Employer, even if such individual is subsequently
               determined to have been a common-law employee of an Employer
               during such period.

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1.23     "Employee". shall mean an individual who is (a) employed by an Employer
         or Affiliated Employer as a common-law employee, or (b) a Leased
         Employee. However, if Leased Employees constitute less than 20% of the
         nonhighly compensated work force (within the meaning of Section
         414(n)(5)(c)(ii) of the Code), the term "Employee" shall not include
         those Leased Employees who are covered by a plan described in Section
         414(n)(5) of the Code.

1.24     "Employee's Age". shall mean, for the purposes of calculations
         involving the age of the Employee, the following. The Employee shall be
         assumed to have been born on the first day of the month coincident with
         or following the Employee's date of birth and shall be assumed to have
         lived through the last day of the month in which the date of the event
         for which the Employee's age is being calculated occurs. Using the
         above assumptions, the Employee's Age shall be defined to be the number
         of months divided by 12 and rounded to three decimal places. Linear
         interpolation shall be used, where necessary, in calculations involving
         the Employee's Age.

1.25     "Employer". shall mean the Plan Sponsor and any other Affiliated
         Employer that an officer of the Plan Sponsor designates in writing as
         an Employer under the Plan. "Employer" when used in this Plan shall
         refer to such designated entities either individually or collectively,
         as the context may require.

1.26     "Employment Commencement Date". shall mean the date on which the
         Employee first is credited with an Hour of Service.

1.27     "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.

1.28     "Final Average Compensation". shall mean the highest amount obtainable
         by averaging the annual Compensation of a Participant paid in any five
         consecutive calendar years out of the last ten calendar years. In
         calculating Final Average Compensation for a Participant who is being
         credited with Service under Section 2.01(d) of this Plan (relating to a
         Participant receiving benefits under a long-term disability plan), it
         shall be assumed that such Participant continued to earn at the rate
         equal to his Final Average Compensation as calculated under this
         Section on the date he first commenced to receive Service credit under
         Section 2.01(d).

1.29     "Fund". shall mean any fund provided for in a trust arrangement or an
         insurance contract or a combination of both, which is held by a Funding
         Agent, to which contributions under the Plan on and after the Effective
         Date will be made, and out of which benefits are paid to the
         Participants or otherwise provided for.

1.30     "Funding Agent". shall mean a Trustee or insurance company or any duly
         appointed successor or successors selected to hold a Fund.

1.31     "Highly Compensated Employee" and "Highly Compensated Former Employee".
         shall mean an Employee who is determined to be a Highly Compensated
         Employee or Highly Compensated Former Employee under the provisions of
         Article 6 of this Plan.

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1.32     "Hour of Service". shall mean each hour for which an Employee is
         directly or indirectly paid or entitled to payment by an Employer or
         Affiliated Employer for the performance of duties in accordance with
         Department of Labor Regulation Section 2530.200b-2(a)(1).

1.33     "Joint Annuitant". shall mean the Beneficiary who will receive
         retirement benefits after the death of the Participant on the basis of
         the provisions of a Joint & Survivor Annuity, as described in Article
         9.

1.34     "Joint & Survivor Annuity". shall mean a retirement benefit under which
         equal monthly installments are payable during the joint lifetimes of
         the retired Participant and the Joint Annuitant, and under which, upon
         the earlier death of the retired Participant, the same amount, or 50
         percent as elected by the Participant prior to his Benefit Commencement
         Date, continues to be paid to the Joint Annuitant for the Joint
         Annuitant's lifetime.

1.35     "Leased Employee". shall mean any individual who, pursuant to an
         agreement between an Affiliated Employer and any other individual, has
         performed services for the Affiliated Employer (or for such Employer
         and related individuals determined in accordance with Section 414(n)(6)
         of the Code) (the "Recipient Employer") on a substantially full-time
         basis for a period of at least one (1) year, and such services are
         performed under the primary direction of or control by the Recipient
         Employer.

1.36     "Limitation Year". shall mean the 12-month period ending on each
         December 31.

1.37     "Maternity or Paternity Absence". means an absence from employment by
         reason of the pregnancy of an Employee, the birth of a child of the
         Employee, the placement of a child in connection with the child's
         adoption by the Employee, or the caring for a child during the period
         immediately following the birth or adoption, which the Employee
         certifies to the Employee.

1.38     "Named Fiduciary". shall mean a fiduciary designated as such under the
         provisions of Article 11.

1.39     "Normal Retirement Age". shall mean the age at which the Employee
         reaches his Normal Retirement Date as defined in Section 1.41.

1.40     "Normal Retirement Benefit". shall mean the benefit to which a
         Participant would be entitled in the event of the Participant's
         retirement on the Participant's Normal Retirement Date, as calculated
         in accordance with Article 5.

1.41     "Normal Retirement Date". shall mean the first day of the month
         coincident with or following the Participant's 65th birthday.

1.42     "One-Year Break in Service". shall mean a Severance Period of 12
         consecutive months.

1.43     "Participant". shall mean any Eligible Employee who becomes a
         Participant in the Plan pursuant to Article 3 and shall include any
         individual who has separated from Service or ceased to be an Eligible
         Employee and for whom there is still a liability under the Plan.

1.44     "Participation". shall mean Service while an Active Participant.

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1.45     "Period of Benefit Accrual Service". shall mean as to each Participant,
         each period beginning on the date of his or her commencement as an
         Eligible Employee and ending on his or her next Termination Date.

1.46     "Period of Service". shall mean as to each Employee (a) each period
         beginning on his or her Employment Commencement Date or Reemployment
         Date and ending on his or her next Termination Date, and (b) to the
         extent not counted under (a), each absence of twelve (12) months or
         less from service with all Employers and Affiliated Employers, which
         began by reason of, or within which occurred, such Employee's
         resignation, retirement, discharge or death. For purposes of applying
         this Section 1.46, an Employee's Period of Service shall include
         periods of employment with any other employer which is a "predecessor
         employer" of an Affiliated Employer (within the meaning of Section
         414(a) of the Code).

1.47     "PIN" shall mean the number (if any) assigned to a Participant by the
         Committee (or its delegate) pursuant to Section 11. 02(a)(13) for
         purposes of identifying his or her Minimum Benefit (as defined in
         Section 5.01).

1.48     "Plan". shall mean The PMI Group, Inc. Retirement Plan, as set forth in
         this document and as heretofore or hereafter amended from time to time.

1.49     "Plan Sponsor". shall mean The PMI Group, Inc.

1.50     "Plan Year". shall mean the period beginning January 1 and ending
         December 31.

1.51     "Postponed Retirement Benefit". shall mean the benefit to which a
         Participant would be entitled in the event of his retirement after his
         Normal Retirement Date, as calculated in accordance with Article 5.

1.52     "Postponed Retirement Date". shall mean the first day of the calendar
         month coincident with or next following the Participant's Termination
         Date, if such date is later than the Participant's Normal Retirement
         Date.

1.53     "Predecessor Employer". shall mean, with respect to an Employee, one or
         more of the following organizations or units, if the Employee was
         previously employed by them: PMI Mortgage Insurance Company, American
         Pioneer Title Insurance Company, PMI Mortgage Services Company, and PMI
         Reinsurance Company.

1.54     "Predecessor to this Plan". shall mean any plan for which this Plan is
         a restatement, any plan that has been merged into this Plan or any
         Predecessor to this Plan, or any other plan sponsored by an entity that
         became an Affiliated Employer by acquisition or merger, and that
         adopted this Plan or a Predecessor to this Plan for any of its
         employees who had been participants in such other plan.

1.55     "Qualified Joint & Survivor Annuity". shall mean, for a married
         Participant, a Joint and Survivor Annuity with the Participant's Spouse
         as Joint Annuitant and a 50 percent survivor benefit. For a single
         Participant it shall mean a benefit payable in the form of an annuity
         for the life of the Participant. The Qualified Joint & Survivor Annuity
         for a married Participant

                                       -7-

<PAGE>

         shall be at least the Actuarial Equivalent, determined under the
         applicable factors of Article 9 of the Participant's Accrued Benefit
         or, if greater in Actuarial Equivalent value, any optional form of
         benefit then available to the Participant under the Plan.

1.56     "Reemployment Date". shall mean the date on which an Employee first
         completes an Hour of Service after a Termination Date.

1.57     "Retirement Date". shall mean a Participant's Normal, Early or
         Postponed Retirement Date.

1.58     "Severance Period" . shall mean each period beginning on an Employee's
         Termination Date and ending on his or her next Reemployment Date.

1.59     "Spouse". shall mean the person to whom the Participant is legally
         married on the date the Participant receives the Participant's benefit
         payment from the Plan, or the Participant's date of death, if earlier.

1.60     "Termination". shall mean the cessation of active employment with the
         Employer or an Affiliated Employer.

1.61     "Termination Date". shall mean the earlier of (a) the date on which an
         Employee dies, resigns, retires or is discharged from employment with
         all Employers and Affiliated Employers, or (b) the first anniversary of
         the first date of a period in which an Employee remains absent from
         service with all Employers and Affiliated Employers for any reason
         other than his or her death, resignation, retirement or discharge, or
         if the absence is on account of a Maternity or Paternity Absence, the
         second anniversary of the first date of the Employee's absence from
         service with all Employers and Affiliated Employers. In accordance with
         Treas. Reg. Section 1.410(a)-9, the period between the first and second
         anniversaries of absence from service as the result of Maternity or
         Paternity Absence (the "Second Year") is neither a Period of Service
         nor a Severance Period. Accordingly, an Employee shall receive no
         credit for a Year of Benefit Accrual Service or a Year of Vesting
         Service during the Employee's Second Year, but the Employee's Severance
         Period shall not commence until the end of the Second Year.

1.62     "Trust". shall mean any trust established under an agreement between
         the Employer and a Trustee under which any portion of the Fund is held,
         and shall include any and all amendments to the Trust agreement.

1.63     "Trustee". shall mean any trustee holding any portion of the Fund under
         a Trust agreement forming a part of the Plan.

1.64     "Year of Benefit Accrual Service". shall mean a 12-month Period of
         Benefit Accrual Service. Subject to Section 2.04, an Employee's total
         number of Years of Benefit Accrual Service shall be calculated by
         assuming that the Employee (a) was hired on the first day of the month
         coincident with or following the Employee's actual date of hire, and
         (b) incurred a Termination Date on the last day of the month in which
         the Employee's actual Termination Date occurs. Years of Benefit Accrual
         Service shall be calculated by dividing the number of months determined
         in the preceding sentence by 12, and rounding down to three decimal
         places. Linear interpolation shall be used where necessary.

                                       -8-

<PAGE>

1.65     "Year of Vesting Service". shall mean a 12-month Period of Service.
         Subject to Section 7.05, an Employee's total number of Years of Vesting
         Service shall be calculated by assuming that the Employee (a) was hired
         on the first day of the month coincident with or following the
         Employee's actual date of hire, and (b) incurred a Termination Date on
         the last day of the month in which the Employee's actual Termination
         Date occurs. Years of Vesting Service shall be calculated by dividing
         the number of months determined in the preceding sentence by 12, and
         rounding down to three decimal places. Linear interpolation shall be
         used where necessary.

                                       -9-

<PAGE>

                                    ARTICLE 2

                             SERVICE COUNTING RULES

2.01     Period of Service-- General Rule. An Employee shall be credited with a
         Period of Service for:

         (a)  Each period for which a person is directly or indirectly paid, or
              entitled to payment, by an Affiliated Employer or a Predecessor
              Employer for the performance of duties. This Service shall be
              credited to the person during the appropriate Computation Period
              in which the duties are performed;

         (b)  Each period for which a person is directly or indirectly paid, or
              entitled to payment, by an Affiliated Employer or a Predecessor
              Employer for reasons other than for the performance of duties
              (such as vacation, holiday, illness, incapacity including
              disability, jury duty, military duty, leave of absence, or a leave
              of absence pursuant to the Family Leave Act, or layoff). This
              Service shall be credited to the Employee during the Computation
              Period in which the nonperformance of duties occurs, but the total
              credit for any single continuous period during which the employee
              performs no duties (whether or not in a single Computation Period)
              of such Service shall not exceed 501 hours. The computation of
              non-work hours described in this subsection will be computed in
              accordance with the provisions of the Department of Labor
              Regulation Section 2530.200b-2;

         (c)  Each period for which back pay, irrespective of mitigation of
              damages, has been either awarded or agreed to by an Affiliated
              Employer or Predecessor Employer. This Service will be credited to
              the person for the Plan Year to which the award or agreement
              pertains;

         (d)  Each period for which an Employee is not paid or entitled to
              payment but during which he normally would have performed duties
              for an Affiliated Employer during any period for which he is
              eligible to receive benefits under the long-term disability plan
              of an Affiliated Employer; and

         (e)  Each period for which an Employee is not paid or entitled to pay
              but during which the Employee is absent for a period of military
              service for which reemployment rights are protected by law, but
              only if the Employee returns to employment within the time
              required by law.

2.02     Period of Service -- Computation. For the purpose of calculating
         Service under the Plan, an Employee shall be assumed to have been hired
         on the first day of the month coincident with or following the
         Employee's date of hire and shall be assumed to have been terminated on
         the last day of the month in which the Employee's date of termination
         or retirement occurs. Using the above assumptions, Service shall be
         defined to be the number of months of Service divided by 12 and rounded
         to three decimal places. Linear interpolation shall be used, where
         necessary, in calculations involving Service.

                                      -10-

<PAGE>

2.03     Benefit Accrual Service. Benefit Accrual Service shall include any
         Period of Service except in the case of an employee who was a
         participant in the Allstate Retirement Plan on April 1, 1995. Such
         prior Allstate Retirement Plan participant shall not receive any
         Benefit Accrual Service prior to May 1, 1995. Employees hired by the
         Employer between May 2, 1994 and April 30, 1995 shall begin receiving
         Benefit Accrual Service on their original hire date with the Employer
         and will participate in the Plan one year from their original hire date
         with the Employer.

2.04     Service -- General Rule. A Participant shall be credited with a Year of
         Service for purposes of this Plan if the Participant performs 12 months
         of Service during a Plan Year, except that a Year of Service shall not
         be credited for any Plan Years prior to a Break in Service in any of
         the following cases:

         (a)  Cash-Out Rule -- The Participant has previously received a
              distribution of the present value of his entire nonforfeitable
              benefit, following his Termination Date, unless the Participant
              has repaid in full the distribution, with interest in accordance
              with Section 7.06 of this Plan. For the purposes of this rule, a
              Participant who is not entitled to a Deferred Vested Benefit upon
              his Termination Date shall be considered to be cashed out upon his
              Termination Date, or

         (b)  Rule of Parity -- The Participant was not entitled to a Deferred
              Vested Benefit at his Termination Date and has incurred a number
              of consecutive One-Year Breaks in Service equal to the greater of
              five or the number of Years of Service credited to him prior to
              the first of such consecutive One-Year Breaks in Service.

                                      -11-

<PAGE>

                                    ARTICLE 3

                   ELIGIBILITY FOR PARTICIPATION AND TRANSFERS

3.01     Eligibility to Become a Participant. Each individual who was a
         Participant in the Plan on the day before the Effective Date and is an
         Eligible Employee on the Effective Date, shall automatically continue
         as a Participant on the Effective Date. Each other Eligible Employee
         shall become a Participant in the Plan on the first day of the calendar
         month that follows the first date on which he becomes an Eligible
         Employee.

3.02     Transfer to Another Plan. A Participant who ceases to be an Eligible
         Employee without incurring a Termination shall cease to accrue benefits
         under this Plan as of the date on which he ceased to be an Eligible
         Employee, and his Accrued Benefit will be frozen as of the close of the
         Plan Year in which he ceases to be an Eligible Employee, but he shall
         continue to be a Participant for other purposes under the Plan and, if
         he continues to remain in the employ of an Affiliated Employer, shall
         continue to earn Vesting Service.

                                      -12-

<PAGE>

                                    ARTICLE 4

                RETIREMENT ELIGIBILITY AND SUSPENSION OF BENEFITS

4.01     Retirement. A Participant who has reached his Retirement Date shall be
         entitled to retire from employment with all Employers and Affiliated
         Employers and receive benefits in accordance with Article 5.

4.02     Suspension of Benefits -- Postponed Retirement. If a Participant's
         Service continues after his Normal Retirement Age and such Service
         after his Normal Retirement Age constitutes Section 203(a)(3)(B)
         Service (as defined in Section 4.05), such Participant's benefits will
         be suspended, provided that the Committee notifies him that his
         benefits have been suspended in the manner provided by Section 4.04 of
         this Article.

4.03     Suspension of Benefits -- Rehires. If a person receiving benefits
         hereunder is rehired by the Employer, payment of those benefits will be
         suspended as long as the rehired Employee remains employed with the
         Employer, provided such Service constitutes Section 203(a)(3)(B)
         Service (as defined in Section 4.05) and provided that the Committee
         notifies him that benefits have been suspended, in the manner provided
         by Section 4.04 of this Article.

4.04     Suspension of Benefit Notice. The notice required under Sections 4.02
         or 4.03 of this Article shall contain:

         (a)  a description of the specific reasons for the suspension of
              benefit payments,

         (b)  a general description of the Plan's provisions relating to the
              suspension,

         (c)  a copy of such provisions,

         (d)  a statement to the effect that applicable Department of Labor
              regulations may be found in Section 2530.203-3 of the Code of
              Federal Regulations, and

         (e)  a description of the Plan's procedure for affording a review of
              such suspension.

         Such notice shall be furnished by personal delivery or first-class mail
         during the first calendar month in which payments are discontinued.

4.05     Section 203(a)(3)(B) Service. In accordance with Department of Labor
         Regulations Section 2530.203-3, "Section 203(a)(3)(B) Service" shall be
         determined on a monthly basis and an Employee shall be deemed to be in
         Section 203(a)(3)(B) Service in any month in which he shall perform 40
         or more Hours of Service as defined in Department of Labor Regulations
         Section 2530.200b-2(a)(1) and (2). An Employee shall have the right to
         contest the determination of his status in accordance with the Plan's
         Claims Procedures (as defined in Section 11.02(a)(11)).

                                      -13-

<PAGE>

4.06     Recommencement of Benefits. Benefits that are suspended in accordance
         with Section 4.02 or 4.03 of this Article shall be paid in any month in
         which the Participant is not considered to be in Section 203(a)(3)(B)
         Service. If an Employee whose benefits are suspended continues or
         recommences Participation in this Plan and thereafter again becomes
         entitled to benefits hereunder by virtue of a new Early, Normal, or
         Postponed Retirement, previously suspended benefits shall not be
         recommenced, and the Participant shall be entitled only to his Early,
         Normal, or Postponed Retirement Benefit, as of the Participant's new
         Early, Normal, or Postponed Retirement Date, adjusted as provided in
         Section 5.06.

4.07     Required Commencement at Age 70 1/2. A Participant not currently
         receiving benefits under this Plan who attains age 70 1/2 shall
         commence receiving benefits as if the Participant had retired on
         December 31 of the calendar year in which the Participant attains age
         70 1/2, and had a Benefit Commencement Date of April 1 of the following
         calendar year. Each December 31 thereafter, and upon the Participant's
         later actual Postponed Retirement Date, the Participant benefit payment
         shall be recalculated using the Participant's actual Benefit Accrual
         Service and actual Final Average Compensation.

4.08     Required Commencement -- Conditions. Notwithstanding any provision of
         this Plan to the contrary, all distributions under the Plan shall be
         made in accordance with the requirements of Section 401(a)(9) of the
         Code and the regulations thereunder, including the incidental death
         benefit requirements of Treasury Regulation Section 1.401(a)(9)-2. The
         provisions of this Section override any distribution options under the
         Plan if inconsistent with the requirements of Section 401(a)(9) of the
         Code. With respect to distributions under the Plan made for calendar
         years beginning on or after January 1, 2002, the Plan will apply the
         minimum distribution requirements of Section 401(a)(9) of the Code in
         accordance with the regulations under Section 401(a)(9) that were
         proposed on January 17, 2001, notwithstanding any provision of the Plan
         to the contrary. This amendment shall continue in effect until the end
         of the last calendar year beginning before the effective date of final
         regulations under Section 401(a)(9) of the Code or such other date as
         may be specified in guidance published by the Internal Revenue Service.

4.09     Blocking. In the event of a sale of a division or subsidiary of the
         Employer, a Participant shall not be considered to have attained his
         Early, Normal or Deferred Retirement Date until he shall have separated
         from service from the division or subsidiary that was sold by the
         Employer. In such event, Service with the division or subsidiary that
         was sold shall be considered Service with the Employer but shall not be
         Benefit Accrual Service, and all provisions of this Plan shall apply
         accordingly.

                                      -14-

<PAGE>

                                   ARTICLE 5

                          AMOUNT OF RETIREMENT BENEFIT

5.01     Normal Retirement Benefit.

         (a)  A Participant's Normal Retirement Benefit shall be an annual
              annuity for the life of the Participant, payable monthly,
              commencing upon the Participant's Normal Retirement Date. This
              annuity will be equal to the Participant's Base Benefit plus the
              Participant's Additional Benefit plus the Participant's Allstate
              Benefit (if any); provided, however, that such annuity will not be
              less than the Participant's Minimum Benefit, as described below:

              (1)  "Base Benefit" means an amount equal to 1.55 percent of a
                   Participant's Final Average Compensation multiplied by the
                   Participant's Years of Benefit Accrual Service.

              (2)  "Additional Benefit" means an amount equal to 0.65 percent of
                   the excess of the Final Average Compensation over the
                   Participant's Covered Compensation, multiplied by the
                   Participant's Years of Benefit Accrual Service up to a
                   maximum of 35 years.

              (3)  "Allstate Benefit" means, in the case of a Participant with a
                   frozen benefit from the Allstate Retirement Plan (the
                   "Allstate Plan"), an amount equal to the Participant's Final
                   Average Compensation under this Plan at the time of
                   termination divided by the Participant's Average Annual
                   Allstate Compensation, minus one, times the frozen Allstate
                   Plan benefit.

              (4)  "Minimum Benefit" means $1,200; provided, however, that in
                   the case of a Participant who has a PIN, "Minimum Benefit"
                   means the Participant's Minimum Base Benefit plus the
                   Participant's Minimum Additional Benefit plus the
                   Participant's Minimum Allstate Benefit (if any) as set forth
                   next to such Participant's PIN in Appendix A to the Plan.

         (b)  Beefed-Up Benefit. The potentially higher benefit described in
              this Section 5.01(b) is applicable to a Participant (if at all)
              only if the Participant is neither a Highly Compensated Employee
              nor a Highly Compensated Former Employee. A Participant who
              retires from employment with all Employers and Affiliated
              Employers both (1) before December 31, 1999, and (2) while at
              least age 55 but less than age 60, shall have his or her Base
              Benefit and Additional Benefit (as described in Section 5.01(a))
              recalculated as provided in this Section 5.01(b). If such
              recalculated Base Benefit and Additional Benefit exceeds the Base
              Benefit and Additional Benefit as originally calculated under
              Section 5.01(a), the Participant shall be entitled to the
              recalculated Base Benefit and Additional Benefit.

                                      -15-

<PAGE>

              (1)  The Participant's Final Average Compensation will be
                   calculated as if he or she had continued to work until the
                   earlier of December 31, 1999 or age 60 at his or her
                   Compensation in the last twelve months prior to retirement.

              (2)  For a Participant who was hired at Allstate before 1978, his
                   or her Base Benefit and Additional Benefit will be first
                   decreased by (i) and then increased by (ii):

                   (i)  The number of years from termination to the latter of
                        December 31, 1999 or age 60 divided by the number of
                        years of Allstate service prior to January 1, 1978 times
                        the pre-1978 benefit under the Allstate Retirement Plan.

                   (ii) The number of years from termination to the latter of
                        December 31, 1999 or age 60 divided by the number of
                        years of service from January 1, 1988 to April 1, 1995
                        times the post-1988 benefit under the Allstate
                        Retirement Plan.

         (c)  Bridge Benefit. The benefit described in this Section 5.01(c) is
              applicable to a Participant (if at all) only if the Participant is
              neither a Highly Compensated Employee nor a Highly Compensated
              Former Employee. If a Participant retires from employment with all
              Employers and Affiliated Employers after attaining at least age 55
              and 20 years of combined service with the Employers and Allstate,
              but did not have 20 years of service with Allstate on April 1,
              1995, the Participant shall be entitled to a temporary annuity
              equal to: (A) as reduced in (B) payable for the period described
              in (C) below:

              (A)  The monthly life annuity payable from the Allstate Retirement
                   Plan starting at the Participant's Normal Retirement Date
                   under the Allstate Retirement Plan. (This is the accrued
                   Allstate benefit on April 1, 1995, as communicated by
                   Allstate.)

              (B)  The monthly life annuity will be reduced by one half percent
                   per month (6% per year) for each month the Participant's
                   retirement precedes his or her Base Age under the Allstate
                   Retirement Plan.

              (C)  The monthly life annuity will be paid starting on the first
                   day of the month following retirement under the Plan until
                   the earlier of the Participant's death or the date on which
                   the Participant becomes eligible to receive his or her
                   benefit from the Allstate Retirement Plan. Alternatively, the
                   Participant may elect to have, in the event of his or her
                   death, the monthly life annuity continue to his or her
                   surviving Spouse but not beyond the date when the Participant
                   would have become eligible to receive his or her benefit from
                   the Allstate Retirement Plan. If the Participant elects to
                   have the full benefit continue to his or her Spouse, then the
                   benefit in (B) will be further reduced two percent. If the
                   Participant elects to have half of the benefit continue to
                   his or her Spouse, then the benefit in (B) will be further
                   reduced one percent.

                                      -16-

<PAGE>

5.02     Postponed Retirement Benefit. A Participant who retires on the
         Postponed Retirement Date shall receive a Postponed Retirement Benefit
         that, subject to the provisions of the optional retirement benefit and
         the Joint & Survivor Annuity, shall consist of a monthly payment on the
         first day of each calendar month commencing with the Participant's
         Postponed Retirement Benefit Date, and ending with the last such
         payment before the Participant's death, equal to the Participant's
         Normal Retirement Benefit but with Benefit Accrual Service,
         Compensation, and Final Average Compensation determined as of the
         Participant's Postponed Retirement Date.

5.03     Early Retirement Benefit. A Participant who retires from employment
         with all Employers and Affiliated Employers prior to the Participant's
         Normal Retirement Date but on or after attaining age 55, and who has
         completed at such time ten Years of Vesting Service, shall be entitled
         to an Early Retirement Benefit of an annual annuity for life, payable
         monthly, commencing at the date that would have been the Participant's
         Normal Retirement Date. At the election of the Participant, the
         Participant may receive the Participant's Early Retirement Benefit as
         an annuity commencing at the Participant's Early Retirement Date, or at
         any date thereafter, in a reduced amount calculated by multiplying the
         Normal Retirement Benefit (based upon the Participant's years of credit
         Service and Final Average Compensation as of the Participant's Early
         Retirement Date) calculated under Section 5.01 by the appropriate
         factor as defined below and using linear interpolation for partial
         years as necessary.

         The Base Benefit as described in Section 5.01 will be reduced by 4.8
         percent for each year before the Base Retirement Age as defined in the
         following table:

                                                  Base
                                               Retirement
                  Year of Birth                   Age

                  Before 1942                    Age 60
                  1942 - 1944                    Age 61
                  1945 - 1947                    Age 62
                  1948 - 1950                    Age 63
                  1951 - 1953                    Age 64
                  After 1953                     Age 65

         The Additional Benefit as described in Section 5.01 will be reduced by
         eight percent for each year of early retirement from age 62 to age 65
         and by four percent for each year of early retirement from age 55 to
         age 62.

         Notwithstanding the foregoing, Participants electing early retirement
         prior to December 31, 1999, and prior to their 60th birthday will be
         eligible for the "Beef Up" provision. Under this provision, a
         Participant is eligible for a "Beefed Up" benefit if the Participant's
         date of retirement is one or more calendar years earlier than the
         earlier of (a) the Participant's 60th

                                      -17-

<PAGE>

         birthday, or (b) December 31, 1999. Under the provision, the
         Participant's Final Average Compensation will be the greater of that
         which is calculated under Section 1.28 or that which would be
         calculated under Section 1.28 if the Participant continued to work
         until the earlier of his 60th birthday or December 31, 1999, and earned
         in each future year the same as that which he earned in his final full
         year of employment.

         Notwithstanding any contrary Plan provision, in the case of a
         Participant who elects early retirement on or after January 1, 2002,
         his or her Early Retirement Benefit will be determined as follows: he
         or she will receive the greater of (1) the sum of (a) the Base Benefit
         (accrued as of January 1, 2002) reduced by 4.8 percent for each year
         before the Base Retirement Age as defined in the table above (the "Base
         Benefit Reduction Factor"), (b) the Additional Benefit (accrued as of
         January 1, 2002) reduced by eight percent for each year of early
         retirement from age 62 to age 65 and by four percent for each year of
         early retirement from age 55 to age 62 (the "Additional Benefit
         Reduction Factor"), and (c) the Allstate Benefit (accrued as of January
         1, 2002) reduced by the Base Benefit Reduction Factor, or (2) the sum
         of (a) the Base Benefit reduced by the Base Benefit Reduction Factor,
         (b) the Additional Benefit reduced by the Additional Benefit Reduction
         Factor, and (c) the Allstate Benefit reduced by a blended factor equal
         to the benefit weighted average of the Base Benefit and Additional
         Benefit Reduction Factors (the "Blended Factor"). Notwithstanding the
         foregoing, (x) in the case of a Participant who has a PIN and who
         elects early retirement on or after July 30, 2002, his or her Early
         Retirement Benefit will not be less than the sum of (i) the Minimum
         Base Benefit reduced by the Base Benefit Reduction Factor, (ii) the
         Minimum Additional Benefit reduced by the Additional Benefit Reduction
         Factor, and (iii) the Minimum Allstate Benefit (if any) reduced by the
         Blended Factor, and (y) in the case of a Participant whose Minimum
         Benefit pursuant to Section 5.01(a)(4) is $1,200 and who elects early
         retirement on or after July 30, 2002, his or her Early Retirement
         Benefit will not be less than $1,200 reduced by the Based Benefit
         Reduction Factor.

5.04     Accrued Benefit -- Participant Who Has Attained Retirement Age. The
         Participant's Accrued Benefit shall be the Early, Normal, or Postponed
         Retirement Benefit to which the Participant would be entitled if he
         were to retire at such time, payable as an annuity for life commencing
         at Normal Retirement Age or, if the Participant has attained his Normal
         Retirement Age, as of the first of the calendar month coincident with
         or next following the date of calculation.

5.05     Accrued Benefit-- Who has Not Attained Retirement Age shall be:

         (a)  Deferred Vested Benefit. A Participant who has incurred a Break in
              Service shall be entitled to an annual pension benefit, payable as
              a straight life annuity commencing at Normal Retirement Date equal
              to the Participant's Accrued Benefit on his Termination Date,
              provided that the Participant is vested under the provisions of
              Article 7, unless such Participant has been cashed out pursuant to
              Section 9.02.

         (b)  Deferred Vested Benefit -- Early Commencement. A Participant
              entitled to a Deferred Vested Benefit who has satisfied the
              Service requirement for entitlement to an Early Retirement Benefit
              and who subsequently satisfies the age requirements for
              entitlement to an Early Retirement Benefit shall be entitled to
              elect to receive his Deferred Vested Benefit at a date prior to
              the date on which it otherwise would be

                                      -18-

<PAGE>

              payable, in an Actuarial Equivalent amount calculated in
              accordance with the factors defined below and using linear
              interpolation for partial years as necessary:

              The Base Benefit and Additional Benefit as described in Section
              5.01 will be reduced by eight percent for each year the benefit
              commences prior to age 65 but after age 60 and an additional four
              percent for each year the benefit commences prior to age 60.

5.06     Adjustment for Suspension of Benefits. The otherwise payable Early,
         Normal, or Postponed Retirement Benefit of any Participant who had
         previously become entitled to an Early, Normal, or Postponed Retirement
         Benefit, but whose benefit payments were suspended pursuant to the
         provisions of Article 4, shall be reduced by the Actuarial Equivalent
         of any payments previously made to him.

                                      -19-

<PAGE>

                                   ARTICLE 6

                          REQUIRED BENEFIT LIMITATIONS

6.01     Code Section 415 Limits. This Article 6 shall be effective for
         Limitation Years ending after December 31, 2001 (except as otherwise
         provided below). The benefits otherwise payable to a Participant, or a
         Beneficiary under this Plan and, where relevant, the Accrued Benefit of
         a Participant, shall be limited to the extent required, and only to the
         extent required, by the provisions of Section 415 of the Code and
         rulings, notices and regulations issued thereunder. To the extent
         applicable, Section 415 of the Code and rulings, notices, and
         regulations issued thereunder are hereby incorporated by reference into
         this Plan. Any benefit increases resulting from the increase in the
         limitations of Section 415(b) of the Code will be provided to all
         Employees participating in the Plan who have one Hour of Service on or
         after the first day of the first Limitation Year ending after December
         31, 2001. In calculating these limits, the following rules shall apply:

         (a)  Actuarial Equivalencies:

              (1)  For purposes of determining the actuarial equivalent of the
                   limitation described in Section 415(b)(2)(C) of the Code
                   (and, except as provided in subparagraph (a)(2) of this
                   Section 6.01, for purposes of determining the actuarial
                   equivalent of the benefit as described in Section
                   415(b)(2)(B) of the Code), the mortality assumption used
                   shall be the "applicable mortality table" described in
                   Section 417(e)(3) of the Code and the interest rate
                   assumption used shall be not less than the greater of 5% or
                   the interest rate specified in Section 1.03.

              (2)  For purposes of determining the actuarial equivalent of the
                   benefit described in Section 415(b)(2)(B) of the Code for any
                   form of benefit subject to Section 417(e)(3) of the Code, the
                   mortality assumption used shall be the "applicable mortality
                   table" described in Section 417(e)(3) of the Code and the
                   interest rate assumption used shall be not less than the
                   greater of the Applicable Interest Rate or the interest rate
                   specified in Section 1.03.

              (3)  For purposes of determining the actuarial equivalent of the
                   limitation described in Section 415(b)(2)(D) of the Code, the
                   mortality assumption used shall be the "applicable mortality
                   table" described in Section 417(e)(3) of the Code and the
                   interest rate assumption used shall be not greater than the
                   lesser of 5% or the interest rate specified in Section 1.03.

         (b)  Cost-of-Living Adjustments -- If the applicable Section 415 limits
              are increased after a benefit is in pay status by virtue of an
              adjustment to those limits reflecting a change in the
              cost-of-living index, benefit payments to a Participant or his
              Beneficiary shall be increased automatically to the maximum extent
              permitted under the revised limits. This increase shall occur only
              to the extent it would not cause the benefit to exceed

                                      -20-

<PAGE>

              the benefit to which the Participant or Beneficiary would have
              been entitled in the absence of the Section 415 limits.

         (c)  Surviving Spouse Payments-- If, upon the death of a Participant
              whose benefits were limited under this Section 6.01, the
              Participant's surviving Spouse shall be entitled to a benefit
              payment smaller than that which was payable while the Participant
              was alive, the benefit payments to the spouse shall equal the
              lesser of (1) and (2) below, where:

              (1)  is the benefit payment that would be payable to the surviving
                   Spouse if benefits under this Plan had not been limited by
                   this Section 6.01, and

              (2)  is the benefit payment that would be payable to the surviving
                   Spouse if the benefit provided under this plan had been a
                   Joint & Survivor Annuity with survivor benefits equal to 50
                   percent of the amount payable while the Participant was
                   alive, in an amount equal to the maximum limitations provided
                   under this Section 6.01.

         (d)  Reduction for Participation in Defined Benefit Plans -- If the
              Participant is entitled to a benefit under any defined benefit
              plan that is, or ever has been, maintained by the Employer or an
              Affiliated Employer, the limits under this Section 6.01 shall be
              applied to the combined benefits payable and the benefit payable
              hereunder shall be reduced to the extent necessary to make the
              combined benefits meet the limits under this Section 6.01.

         (e)  Average Compensation -- To calculate Average Compensation for an
              Employee's high three years of service, compensation shall be the
              Employee's Compensation as defined in Section 1.15, and the three
              years' average shall be calculated using consecutive calendar
              years.

         (f)  Definition of 415 Compensation -- Effective for Limitation Years
              beginning on and after January 1, 2001, for purposes of applying
              the limitations described in this Section, compensation paid or
              made available during such limitation years shall include elective
              amounts that are not includible in the gross income of the
              Participant by reason of Section 132(f)(4) of the Code.

6.02     Special Limitation for 25 Highest-Paid Employees. The provisions of
         this Section 6.02 shall apply to the 25 highest-paid Highly Compensated
         Employees or Highly Compensated Former Employees for a Plan Year.
         Subject to Section 6.03, if a benefit becomes or is payable for a Plan
         Year to such an Employee, it cannot exceed an amount equal to the
         payments that would be made during the Plan Year on behalf of the
         Employee under a single life annuity that is the Actuarial Equivalent
         of the sum of the Employee's Accrued Benefit and any other benefits
         under the Plan.

6.03     Exceptions to Special Limitation. The provisions of Section 6.02 shall
         not apply if: (a) the value of the benefits that would be payable to an
         Employee described in Section 6.02 are less than one percent of the
         value of current liabilities, or (b) the value of the assets held in
         the Fund equals or exceeds, immediately after payment of a benefit to
         an Employee described in

                                      -21-

<PAGE>

         Section 6.02, 110 percent of the value of current liabilities. For
         purposes of this Section, the value of current liabilities shall be as
         defined in Section 412(l)(7) of the Code.

6.04     Distributions Allowed if Security Furnished. A benefit that is
         otherwise restricted pursuant to Section 6.02 may be nevertheless
         distributed if, in the event of a termination of the Plan, the Employee
         is obligated to repay the Plan any amount necessary for the
         distribution of assets to satisfy the requirements of Section 401(a)(4)
         of the Cod. The amount the Employee shall be obligated to repay as of
         any measurement date shall not exceed the excess of the distributions
         the Employee has actually received over the amount that the Employee
         would have received had distributions commenced in a manner that would
         have not violated the provisions of Section 6.02 (the "Restricted
         Amount"), with both amounts increased by a reasonable rate of interest
         from the date payment was (or would have been) made to the measurement
         date. The Employee's obligation to repay must be secured by either: (a)
         an escrow account with an initial value at the date of distribution of
         at least 125% of the Restricted Amount, and at all times thereafter a
         value of at least 110% of the Restricted Amount, (b) a bond furnished
         by an insurance company, bonding company or other surety approved by
         the U.S. Treasury Department as an acceptable surety for federal bonds,
         of at least 100% of the Restricted Amount, or (c) a bank letter of
         credit in an amount equal to at least 100% of the Restricted Amount.

6.05     Plan Termination Limit. In the event of Plan termination the benefit of
         any Highly Compensated Employee or Highly Compensated Former Employee
         shall be limited to a benefit that is nondiscriminatory under Section
         401(a)(4) of the Code.

6.06     Highly Compensated Employee or Former Employee. The term "Highly
         Compensated Employee" shall mean an Employee who performs service
         during the Determination Year and is described in one or more of the
         following groups in accordance with IRS regulations:

         (a)  An Employee who is or was a 5-percent owner (within the meaning of
              Section 414(q)(2) of the Code), at any time during the
              Determination Year or the Look-Back Year; or

         (b)  An Employee who received Compensation during the Look-Back Year in
              excess of $80,000 (as adjusted for such Year pursuant to Sections
              414(q)(1) and 415(d) of the Code) and was a member of the Top-Paid
              Group for such Year.

         The term "Highly Compensated Former Employee" shall mean a former
         Employee who has a separation year prior to the Determination Year and
         was a Highly Compensated active Employee for either: (1) such
         Employee's separation year or (2) any Determination Year ending on or
         after the Employee's 55th birthday.

         A separation year is the Determination Year in which the Employee
         separates from Service. Notwithstanding the foregoing, an Employee who
         separated from Service before January 1, 1987, is a Highly Compensated
         Employee only if he was a five-percent owner or received Compensation
         in excess of $50,000 during (1) the Employee's separation year (or the
         year preceding such separation year), or (2) any year ending on or
         after such Employee's 55/th/ birthday (or the last year ending before
         such Employee's 55/th/ birthday).

                                      -22-

<PAGE>

         Notwithstanding anything to the contrary in this Plan, Sections 414(b),
         (c), (m), (n), and (o) of the Code are applied prior to determining
         whether an Employee is a Highly Compensated Employee.

6.07     Definitions. For purposes of this Section and Section 6.06,

         (a)  "Compensation" shall mean compensation as defined in Section
              414(q)(4) and the regulations thereunder. Effective for Plan Years
              beginning on and after January 1, 2001, such compensation shall
              include elective amounts that are not includible in the Employee's
              gross income by reason of Section 132(f)(4) of the Code.

         (b)  "Determination Year" shall mean the Plan Year for which the
              determination of who is Highly Compensated is being made.

         (c)  "Look-Back Year" shall mean the 12-month period preceding the
              Determination Year.

         (d)  "Top-Paid Group" shall mean the top twenty percent (20%) of all
              Employees when ranked on the basis of Compensation paid to such
              Employees during the year under consideration. The number and
              identity of Employees in the group will be determined in
              accordance with Section 414(q).

         (e)  The Employer shall have the right to elect to determine Highly
              Compensated Employees by reference to calendar-year Compensation,
              in accordance with IRS regulations. If the Employer so elects, the
              Employer must make such election with respect to all qualified
              plans it or any Affiliated Employer maintains.

                                      -23-

<PAGE>

                                   ARTICLE 7

                                     VESTING

7.01     General Rule. A Participant who incurs a Break in Service at a time
         when he is not entitled to an Early, Normal or Postponed Retirement
         Benefit under the provisions of Article 5 shall not be entitled to
         benefits under this Plan except as provided under the provisions of
         this Article.

7.02     Vesting at Normal Retirement Age. A Participant who has attained Normal
         Retirement Age shall be fully vested in his Accrued Benefit.

7.03     Vesting Before Normal Retirement Age. A Participant who incurs a
         Termination at a time when he is not entitled to an Early, Normal or
         Postponed Retirement Benefit under the provisions of Article 5 shall be
         entitled to a Deferred Vested Benefit, payable as provided under
         Article 5, provided the Participant has attained five Years of Vesting
         Service at the time of Termination.

         For each Participant who both (a) became an Eligible Employee after
         April 1, 1995, and (b) prior to April 1, 1995, was employed by PMI for
         at least twelve (12) months, his or her Period of Service for such
         employment also shall be counted for purposes of determining his or her
         Years of Vesting Service.

7.04     Vesting Upon Plan Termination. In the event of termination or partial
         termination of this Plan, each affected Participant shall be 100
         percent vested in his Accrued Benefit, but only to the extent funded.
         The foregoing sentence shall not apply to a former Participant who has
         been cashed out (including those deemed cashed out under Section
         7.05(c)) or who has incurred five consecutive One-Year Breaks in
         Service after his Termination Date. Such a former Participant shall not
         be entitled to any additional vested benefit upon Termination or
         partial Termination.

7.05     Vesting Service Disregarded. The Years of Vesting Service of a
         terminated Participant who is reemployed shall be determined in
         accordance with the following rules.

         (a)  Prior Service Disregarded. If a Participant incurs a One-Year
              Break in Service, and his or her vested percentage interest in his
              or her Accrued Benefit under the Plan was 0% when the One-Year
              Break in Service began, and the number of his or her consecutive
              One-Year Breaks in Service exceeds the greater of (1) the number
              of his or her Years of Vesting Service, or (2) five, then his or
              her Years of Vesting Service credited before the One-Year Break in
              Service shall be disregarded.

         (b)  Prior Service Counted. If a Participant does not incur a One-Year
              Break in Service, or incurs a One-Year Break in Service, and:

              (1)  his or her vested percentage interest in his or her Accrued
                   Benefit under the Plan was greater than 0% when the One-Year
                   Break in Service began, or

                                      -24-

<PAGE>

              (2)  the number of his or her consecutive One-Year Breaks in
                   Service does not exceed the greater of (A) the number of his
                   or her Years of Vesting Service, or (B) five,

         then the Years of Vesting Service credited before the Participant's
         termination shall be reinstated, effective as of his or her
         Reemployment Date.

         (c)  Future Service Disregarded. In determining a Participant's Accrued
              Benefit and Years of Vesting Service for purposes of the Plan, if
              the Participant incurs a Termination Date and the nonforfeitable
              percentage of his or her Accrued Benefit at that time is zero, he
              shall be deemed to have received a complete distribution of the
              nonforfeitable portion of his or her Accrued Benefit at the time
              of his or her Termination Date, and shall immediately forfeit his
              or her Accrued Benefit. However, such forfeited Accrued Benefit
              shall be restored if the Participant has a Reemployment Date
              within five consecutive One-Year Breaks in Service following such
              Termination Date. The portion of a Participant's Accrued Benefit
              and Years of Vesting Service previously disregarded by a prior
              application of this paragraph shall not be counted for the purpose
              of the preceding sentences.

7.06     Repayment of Cash-Out. If an Employee shall have received a full
         distribution of his nonforfeitable interest in this Plan following his
         Termination Date, he shall be entitled to repay the amount of that
         distribution to the Plan together with compound interest at the rate of
         five percent per annum for any period prior to the first day of the
         Plan Year beginning on or after January 1, 1988, and at the rate of 120
         percent of the applicable federal midterm rate as in effect for the
         first month of the Plan Year for any Plan Year or portion of a Plan
         Year that commences on or after January 1, 1988. Any such repayment
         shall be made prior to the earlier of:

         (a)  The fifth anniversary of the date on which the Employee was
              rehired by the Employer, or

         (b)  The close of the first period of five consecutive One-Year Breaks
              in Service following the Participant's Termination Date.

              A Participant who is deemed to have been cashed out under Section
              7.05(c) because he was not entitled to a Deferred Vested Benefit
              on his Termination Date shall be deemed to have properly made a
              repayment upon again becoming a Participant. Such a deemed
              repayment will not restore Years of Service which would not be
              counted under the provisions of Section 7.05(c) (the Rule of
              Parity).

7.07     Vesting Service. A Participant shall be credited with a Year of Vesting
         Service as provided in Sections 1.65, 7.05 and 7.06, except that
         Vesting Service shall not include any Year of Service completed prior
         to the date of establishment of this Plan or the Predecessor to this
         Plan other than a Participant's service completed with Allstate prior
         to April 1, 1995, if the Participant was employed by Allstate on March
         31, 1995 and by the Employer or an Affiliated Employer on April 1,
         1995.

                                      -25-

<PAGE>

                                   ARTICLE 8

                    QUALIFIED PRERETIREMENT SURVIVOR ANNUITY

8.01     Automatic Preretirement Spousal Death Benefit.

         (a)  Except as provided in subsection (b) below, in the event a
              Participant with a vested right to his Accrued Benefit under the
              Plan dies before his Benefit Commencement Date, a death benefit
              shall be provided to the Participant's Spouse as follows:

              (1)  If the Participant at the date of death was eligible to
                   retire and receive a benefit under the Plan at an Early,
                   Normal or Postponed Retirement Date, then his surviving
                   Spouse shall automatically receive a death benefit in an
                   amount equal to one-half of the amount of the retirement
                   benefit that would have been payable to the Spouse if the
                   Participant had retired on the day preceding his death,
                   receiving a benefit in the form of a Joint & Survivor Annuity
                   with a 50 percent survivor annuity to the Spouse.

              (2)  If the Participant at the date of death was not eligible to
                   retire under the Plan and receive a benefit under the Plan at
                   an Early, Normal, or Postponed Retirement Date, then the
                   Participant's surviving Spouse shall receive an Automatic
                   Preretirement Spousal Death Benefit in an amount equal to the
                   amount that would have been payable to the spouse under the
                   normal form of payment under Section 9.01, assuming:

                   (A)  the Participant had separated from service on the
                        earlier of his Termination Date or date of his death,

                   (B)  the Participant had survived to the earliest date he
                        could have retired and received a benefit under the Plan
                        pursuant to Article 5,

                   (C)  the Participant retired on such date with a benefit in
                        the form of a Joint & Survivor Annuity with a 50 percent
                        survivor annuity to the Spouse but calculated using only
                        actual Benefit Accrual Service as of the Participant's
                        date of death (and if the Participant was only partially
                        vested on his date of death, multiplied by the
                        Participant's vested percentage as determined under
                        Section 7.03 on the date of death), and

                   (D)  the Participant died on the day after his Benefit
                        Commencement Date.

              The Automatic Preretirement Spousal Death Benefit under this
              Section 8.01(a)(2) shall commence to be paid to the Spouse, unless
              the Spouse elects otherwise, as of the first day of the month
              coinciding with or next following the earliest date the
              Participant could have retired and received a benefit under the
              Plan pursuant to Article 4, had he not died, and shall be paid up
              to the first day of the month in which such spouse dies. The
              Spouse may not delay commencement of the Automatic

                                      -26-

<PAGE>
              Preretirement Spousal Death Benefit beyond the Participant's
              Normal Retirement Date.

         (b)  The Automatic Preretirement Spousal Death Benefit payable under
              this Article 8 shall be payable after the death of the Participant
              only if the Spouse had been married to the Participant throughout
              the one-year period ending on the date of the Participant's death.

                                      -27-

<PAGE>

                                   ARTICLE 9

                                FORMS OF BENEFIT

9.01     Qualified Joint & Survivor Annuity. At the earliest time a Participant
         could become entitled to commence receiving payments of an Early,
         Normal or Postponed Retirement Benefit or of a Deferred Vested Benefit,
         other than an involuntary lump sum payment under the provisions of
         Section 9.02, benefits shall commence in the form of a Qualified Joint
         & Survivor Annuity (which, for a Participant who has no Spouse,
         includes a single life annuity) unless the Participant, with the
         consent of his Spouse, if any, elects otherwise. Any consent of the
         Participant's Spouse shall be made within 90 days of the date the
         Qualified Joint & Survivor Annuity would otherwise commence, and shall
         be executed in accordance with the rules of Section 9.04.

9.02     Involuntary Lump Sum Payment. If at any time a Participant has incurred
         a Termination but has not begun to receive benefit payments, and is
         entitled to a benefit (whether Early, Normal, or Postponed) or to a
         Deferred Vested Benefit, or a Beneficiary is entitled to a death
         benefit hereunder, that has an Actuarial Equivalent value of less than
         $5,000, the Actuarial Equivalent value shall be paid to such
         Participant or Beneficiary in a lump sum in lieu of, and in full
         satisfaction of, his benefit under this Plan. Neither the consent of
         the Beneficiary, the Participant nor of his Spouse shall be necessary
         to make such payment. Upon the making of such payment, neither the
         Beneficiary, the Participant nor his Spouse shall have any further
         benefit under this Plan. Participants deemed to have a zero accrued
         account benefit at Termination shall be deemed to have been cashed out
         under this Section 9.02.

9.03     Right to Elect. In lieu of the benefits provided by Section 9.01, the
         Participant shall have the right to elect, prior to his Benefit
         Commencement Date, an alternate form of benefit provided under the
         terms of this Article 9. If the Participant is married, any such
         election may be made only with the consent of his Spouse, executed as
         provided under Section 9.04. Any alternative form of benefit shall be
         the Actuarial Equivalent of the Participant's Accrued Benefit.

9.04     Election of Forms. A Participant may make or revoke an election of any
         form of benefit to which the Participant is entitled under this Article
         9 in writing to the Committee, and such election or revocation shall be
         subject to the following conditions:

         (a)  The Committee shall furnish to each Participant a general written
              explanation in nontechnical terms of the availability of the
              various optional forms of payment under the Plan within a
              reasonable period of time prior to the earliest date the
              Participant could retire under the Plan. A Participant has a right
              to receive, within 30 days after filing a written request with the
              Committee, a written explanation of the terms and conditions of
              the Qualified Joint & Survivor Annuity, the Participant's right to
              make and the effect of an election to waive the Qualified Joint &
              Survivor Annuity, the rights of the Participant's Spouse (if any),
              the right to make, and the effect of, a revocation of a previous
              election to waive the Qualified Joint & Survivor Annuity, and the
              financial effect upon the Participant, given in terms of dollars
              per annuity

                                      -28-

<PAGE>

              payment. Requests for additional information may be made by the
              Participant at any time before the 90th day prior to the Benefit
              Commencement Date.

         (b)  An election to receive an optional form of benefit may be made at
              any time during the election period. The election period is a
              period of 90 days prior to the Participant's Benefit Commencement
              Date. Subject to subsection (c) below, a Participant may make an
              election not to receive the Qualified Joint & Survivor Annuity,
              revoke any previous election, and if the Participant so desires,
              make a new election, until the expiration of the election period.

         (c)  If a Participant is married, an election of a form of benefit
              other than the Qualified Joint & Survivor Annuity will require the
              written consent of the Spouse, and such written consent must be
              witnessed by a notary public (or a representative of the Plan).

         (d)  Any consent by a Spouse obtained under this Section 9.04 shall be
              effective only with respect to the specific form of benefit
              elected. Additionally, a married Participant's designation of a
              Beneficiary other than his or her Spouse shall not be effective
              unless the election designates a specific Beneficiary which may
              not be changed without spousal consent.

         (e)  Notwithstanding any provision of the Plan to the contrary, a
              Participant's Benefit Commencement Date may be less than 30 days
              after the written explanation described in subsection (a) above is
              furnished to the Participant, provided that: (1) the Participant
              has been provided with information that clearly indicates that the
              Participant has at least 30 days to consider whether to waive the
              Qualified Joint & Survivor Annuity and elect (with spousal
              consent, if applicable) a form of distribution other than a
              Qualified Joint & Survivor Annuity, (2) the Participant is
              permitted to revoke any affirmative distribution election at least
              until the Benefit Commencement Date or, if later, at any time
              prior to the expiration of the 7-day period that begins the day
              after the explanation of the Qualified Joint & Survivor Annuity is
              provided to the Participant, (3) the Benefit Commencement Date is
              a date after the date that the written explanation was provided to
              the Participant, but may be a date before the date that an
              affirmative distribution election is made by the Participant, and
              (4) the distribution must not actually commence before the
              expiration of the foregoing 7-day period.

9.05     Optional Forms of Retirement Benefit. The optional forms which a
         Participant may elect are any one of the following:

         (a)  50 Percent or 100 Percent Joint & Survivor Annuitant Option-- An
              Actuarial Equivalent monthly benefit payable to the Participant
              for life, and after his death in the amount of 50 percent or 100
              percent of such amount (as specified by the Participant prior to
              commencement of benefits) to the Joint Annuitant for life. Should
              the Joint Annuitant die prior to the Participant's Benefit
              Commencement Date, any election of this option shall be
              automatically canceled. If the Participant should die prior to the
              Benefit Commencement Date, no payments shall be made under this
              option to the Joint Annuitant, but if the Joint Annuitant is the
              Spouse of the Participant, such Spouse will be entitled to the
              death benefit provided under Article 8.

                                      -29-

<PAGE>

              The factor to convert the life annuity to the 50 percent Joint &
              Survivor Annuitant Option above is 94 percent plus 0.3 percent for
              each full year that the Joint Annuitant is more than five years
              older than the Participant not to exceed 99 percent or minus 0.3
              percent for each full year that the Joint Annuitant is more than
              five years younger than the Participant. The factor to convert the
              life annuity to the 100 percent Joint & Survivor Annuitant Option
              above is 89 percent plus 0.5 percent for each full year that the
              Joint Annuitant is more than five years older than the Participant
              not to exceed 99 percent or minus 0.5 percent for each full year
              that the Joint Annuitant is more than five years younger than the
              Participant.

         (b)  Ten-Year Certain and Life Income Option-- An Actuarial Equivalent
              monthly benefit that provides retirement benefit payments to the
              Participant for his lifetime with a guaranteed minimum period of
              at least ten. In the event of the death of the Participant after
              the Benefit Commencement Date, but prior to the Participant's
              receiving retirement benefit payments for the whole Ten-Year
              Certain period, the remaining payments for the minimum term of
              years will be paid to the Participant's Beneficiary. In the event
              of the death of the Participant prior to the Participant's Benefit
              Commencement Date, the election of this option shall be void and
              of no effect.

              The factor to convert the life annuity to the above option will be
              95 percent at age 65 plus 0.4 percent for each full year that the
              benefit commencement date precedes age 65 or minus 0.7 percent for
              each full year that the benefit commencement date is postponed
              past age 65.

         (c)  Straight Life Annuity Option -- A Participant who has a Spouse may
              elect to have the Participant's retirement benefit payable in
              equal, unreduced monthly payments during the Participant's
              lifetime, with no further payments to any other person after the
              Participant's death. If this option is elected, the retirement
              benefit payable to the Participant shall be the amount of
              retirement benefit determined under the applicable Section(s) of
              Article 5.

         (d)  Lump Sum Payment Option -- A single payment equal to the Actuarial
              Equivalent of the Participant's accrued retirement benefit.

9.06     Beneficiary. A Participant may name a Joint Annuitant who is an
         individual for a Joint & Survivor Annuity option. For a Ten-Year
         Certain and Life Income Option, the Participant may elect, in writing,
         an individual or individuals, or any entity or entities, including
         corporations, partnerships or trusts, provided that such individuals
         and entities are ascertainable, and the shares of each are clearly set
         forth. In the event any Beneficiary predeceases the Participant or is
         not in existence, not ascertainable, or cannot be located at the date
         benefits become payable to such beneficiary, benefits shall be paid to
         such contingent Beneficiary or Beneficiaries as shall have been named
         by the Participant on the Participant's original beneficiary election,
         and, if none, the contingent Beneficiary shall be the Participant's
         estate.

                                      -30-

<PAGE>

9.07     Eligible Rollover Distributions.

         (a)  The following provisions of this Section 9.07 shall apply to
              distributions made after December 31, 2001.

         (b)  Notwithstanding any provision of the Plan to the contrary that
              would otherwise limit a distributee's election under this Section,
              a distributee may elect, at the time and in the manner prescribed
              by the Committee, to have any portion of an eligible rollover
              distribution paid directly to an eligible retirement plan
              specified by the distributee in a direct rollover.

         (c)  Definitions.

              (1)  Eligible rollover distribution-- An eligible rollover
                   distribution is any distribution of all or any portion of the
                   balance to the credit of the distributee, except that an
                   eligible rollover distribution does not include: any
                   distribution that is one of a series of substantially equal
                   periodic payments (not less frequently than annually) made
                   for the life (or life expectancy) of the distributee or the
                   joint lives (or joint life expectancies) of the distributee
                   and the distributee's designated Beneficiary, or for a
                   specified period of ten years or more; any distribution to
                   the extent such distribution is required under Section
                   401(a)(9) of the Code; and the portion of any distribution
                   that is not includable in gross income (determined without
                   regard to the exclusion for net unrealized appreciation with
                   respect to Employer securities).

              (2)  Eligible retirement plan-- An eligible retirement plan is an
                   individual retirement account described in Section 408(a) of
                   the Code, an individual retirement annuity described in
                   Section 408(b) of the Code, an annuity plan described in
                   Section 403(a) of the Code, a qualified trust described in
                   Section 401(a) of the Code, that accepts the distributee's
                   eligible rollover distribution, an annuity contract described
                   in Section 403(b) of the Code and an eligible plan under
                   Section 457(b) of the Code which is maintained by a state,
                   political subdivision of a state, or any agency or
                   instrumentality of a state or political subdivision of a
                   state and which agrees to separately account for amounts
                   transferred into such plan from this Plan. The foregoing
                   definition of eligible retirement plan shall also apply in
                   the case of a distribution to a surviving spouse, or to a
                   spouse or former spouse who is the alternate payee under a
                   qualified domestic relation order as defined in Section
                   414(p) of the Code.

              (3)  Distributee -- A distributee includes an Employee or former
                   Employee. In addition, the Employee's or former Employee's
                   surviving Spouse and the Employee's or former Employee's
                   Spouse or former Spouse who is the alternate payee under a
                   qualified domestic relations order, as defined in Section
                   414(p) of the Code, are distributees with regard to the
                   interest of the Spouse or former Spouse.

              (4)  Direct rollover-- A direct rollover is a payment by the Plan
                   to the eligible retirement plan specified by the distributee.

                                      -31-

<PAGE>

                                   ARTICLE 10

                                     FUNDING

10.01    Funding Agreement. The Employer has entered into a funding arrangement
         with one or more Funding Agents providing for the administration of the
         Fund or Funds in which the assets of this Plan are held. The Employer
         may at any time or from time to time appoint one or more investment
         managers, as defined under Section 3(38) of ERISA, each of which shall
         direct the Funding Agent in the investment or reinvestment of all or
         part of the Fund.

10.02    Non-Diversion of the Fund. To the extent required by law, the principal
         or income of any Fund shall be used solely for the exclusive benefit of
         Participants or Beneficiaries, or to meet the necessary expenses of the
         Plan, except that upon termination of the Plan, after all the
         liabilities under the Plan have been satisfied, any property remaining
         in a Fund after satisfaction of all liabilities under this Plan shall
         be considered the result of erroneous actuarial computation and shall
         be distributed by the Funding Agent to the Employer.

                                      -32-

<PAGE>

                                   ARTICLE 11

                               PLAN ADMINISTRATION

11.01    Appointment of Committee. -- A Committee consisting of at least three
         members shall be appointed by the Board to administer the Plan on
         behalf of the Board. Vacancies in the Committee shall be filled from
         time to time by appointment of a new Committee member by the Board. A
         member of the Committee shall hold office until he gives written notice
         of his resignation to the Board, until death, or until removal by the
         Board.

11.02    Powers and Duties.

         (a)  The Committee shall have full power and discretion to administer
              the Plan and to construe and apply all of its provisions on behalf
              of the Employer. The Committee is the Named Fiduciary within the
              meaning of Section 402(a) of ERISA for purposes of Plan
              administration. The Committee's powers and duties, unless properly
              delegated, shall include, but shall not be limited to:

              (1)  Designating agents to carry out responsibilities relating to
                   the Plan, other than fiduciary responsibilities.

              (2)  Deciding questions relating to eligibility, continuity of
                   employment, and amounts of benefits.

              (3)  Deciding disputes that may arise with regard to the rights of
                   Employees, Participants and their legal representatives, or
                   Beneficiaries under the terms of the Plan. Decisions by the
                   Committee will be deemed final in each case.

              (4)  Obtaining information from the Employer with respect to its
                   Employees as necessary to determine the rights and benefits
                   of Participants under the Plan. The Committee may rely
                   conclusively on such information furnished by the Employer.

              (5)  Compiling and maintaining all records necessary for the Plan.

              (6)  Authorizing the Funding Agent to make payment of all benefits
                   as they become payable under the Plan.

              (7)  Engaging such legal, administrative, consulting, actuarial,
                   investment, accounting, and other professional services as
                   the Committee deems proper.

              (8)  Adopting rules and regulations for the administration of the
                   Plan that are not inconsistent with the Plan. The Committee
                   may, in a nondiscriminatory manner, waive the timing
                   requirements of any notice or other requirements described in
                   the Plan. Any such waiver will not obligate the Committee to
                   waive any subsequent timing or other requirements for other
                   Participants.

                                      -33-

<PAGE>

              (9)  Interpreting and approving qualified domestic relations
                   orders, as defined in Section 414(p) of the Code.

              (10) Making nonsubstantive amendments for the purpose of
                   maintaining the qualified status of the Plan only.

              (12) Establishing a claims and appeal procedure satisfying the
                   minimum standards of Section 503 of ERISA (the "Claims
                   Procedure") pursuant to which Participants or their Spouses,
                   Beneficiaries or estates may claim Plan benefits and appeal
                   denials of such claims.

              (13) Assigning PINs to those Participants who also are
                   participants in the Company's Supplemental Employee
                   Retirement Plan.

              (14) Making amendments to Appendix A to the Plan from time to time
                   to any extent that it may deem advisable, provided that any
                   such amendments shall comply with the requirements of Section
                   401(a)(4) of the Code.

              (15) Performing other actions provided for in other parts of this
                   Plan.

         (b)  The Plan Sponsor shall have responsibility for, and shall be the
              Named Fiduciary for, the following purposes:

              (1)  Selection of the funding media for the Plan, including the
                   power to direct investments and to appoint an investment
                   manager or managers pursuant to Section 402(c) of ERISA.

              (2)  Allocating fiduciary responsibilities, other than trustee
                   responsibilities as defined in Section 405(c) of ERISA, among
                   fiduciaries, and designation of additional fiduciaries.

              (3)  Selection of insurance contracts to provide benefits
                   hereunder, or, if all assets are not held under insurance
                   contracts, the Trustee.

         (c)  The Trustee, if any, shall have responsibility for, and shall be
              the Named Fiduciary for the care and custody of, and, to the
              extent investment managers are not appointed by the Plan Sponsor,
              management of Plan assets held by such Trustee other than
              insurance contracts.

11.03    Actions by the Committee. A majority of the members composing the
         Committee at any time will constitute a quorum. The Committee may act
         at a meeting, or in writing without a meeting, by the vote or assent of
         a majority of its members. The Committee will appoint a Committee
         Chairperson and a Secretary. The Secretary will record all action taken
         by the Committee. The Committee will have authority to designate in
         writing one of its members or any other person as the person authorized
         to execute papers and perform other ministerial duties on behalf of the
         Committee.

                                      -34-

<PAGE>

11.04    Interested Committee Members. No member of the Committee will
         participate in an action of the Committee on a matter that applies
         solely to that member. Such matters will be determined by a majority of
         the remainder of the Committee.

11.05    Indemnification. The Employers indemnify and hold the members of the
         Committee, jointly and severally, harmless from the effects and
         consequences of their acts, omissions, and conduct in their official
         capacities, except to the extent that the effects and consequences
         result from their own willful misconduct, breach of good faith, or
         gross negligence in the performance of their duties. The foregoing
         right of indemnification will not be exclusive of other rights to which
         each such member may be entitled by any contract or other instrument or
         as a matter of law.

11.06    Conclusiveness of Action. Any action on matters within the discretion
         of the Committee will be conclusive, final, and binding upon all
         Participants in the Plan and upon all persons claiming any rights,
         including Beneficiaries.

11.07    Payment of Expenses. The members of the Committee will serve without
         compensation for their services. The compensation or fees of
         consultants, actuaries, accountants, counsel and other specialists and
         any other costs of administering the Plan or Fund, including any
         premiums due to the Pension Benefit Guaranty Corporation (PBGC), will
         be paid by the Fund unless, at the discretion of the Employer, paid by
         the Employer.

                                      -35-

<PAGE>

                                   ARTICLE 12

                        FUNDING POLICY AND CONTRIBUTIONS

12.01    Employer Contributions. The Employer intends to make contributions to
         fund this Plan at such times and in such amounts as the Actuary shall
         certify to the Employer as being no less than the amounts required to
         be contributed under Section 412 of the Code. Any actuarial gains
         arising under the Plan shall be used to reduce future Employer
         contributions to the Plan and shall not be applied to increase
         retirement benefits with respect to remaining Participants.

12.02    Participant Contributions. Participant contributions to the Fund are
         not permitted.

12.03    Contingent Nature of Contributions. Unless the Employer notifies the
         Committee and the Funding Agent in writing to the contrary, all
         contributions made to this Plan are conditioned upon their
         deductibility under Section 404 of the Code.

                                      -36-

<PAGE>

                                   ARTICLE 13

                  AMENDMENT, TERMINATION AND MERGER OF THE PLAN

13.01    Right to Amend the Plan. The Board of Directors of the Plan Sponsor or
         its delegate reserves the right to modify, alter or amend this Plan
         from time to time to any extent that it may deem advisable including,
         but without limiting the generality of the foregoing, any amendment
         deemed necessary to ensure the continued qualification of the Plan
         under Section 401 of the Code or the appropriate provisions of any
         subsequent revenue law. No such amendment shall increase the duties or
         responsibilities of a Funding Agent without its consent thereto in
         writing. No such amendment(s) shall have the effect of reinvesting in
         the Employer the whole or any part of the principal or income of the
         Fund or to allow any portion of the principal or income of the Fund to
         be used for any purposes other than for the exclusive benefit of
         Participants or Beneficiaries at any time prior to the satisfaction of
         all the liabilities under the Plan with respect to such persons. No
         amendment shall (a) reduce a Participant's Accrued Benefit on the
         effective date of the Plan amendment, (b) eliminate or reduce an early
         retirement benefit, retirement-type subsidy or an optional form of
         benefit under the Plan with respect to the Participant's Accrued
         Benefit on the date of the amendment, or (c) reduce a retired
         Participant's retirement benefit as of the effective date of the
         amendment.

13.02    Right to Terminate the Plan. The Board of Directors of the Plan Sponsor
         or its delegate shall have the right to terminate this Plan at any
         time. In the event of such termination all affected Participants shall
         be vested as provided in Section 7.04.

13.03    Allocation of Assets and Surplus. In the event the Plan shall be
         terminated as provided in Section 13.02 above, the then present value
         of retirement benefits vested in each Participant shall be determined
         as of the discontinuance date, and the assets then held by the Funding
         Agents as reserves for benefits for Participants, Joint Annuitants or
         Beneficiaries under this Plan shall, subject to any necessary approval
         by the PBGC be allocated, to the extent that they shall be sufficient,
         after providing for expenses of administration, in the order of
         precedence provided for under Section 4044 of ERISA, as modified by the
         provisions of Treasury Regulation Section 1.414(l)-l(f) or (h) if a
         special schedule of benefits (as defined in such regulations) is in
         effect as a result of a plan merger within the five-year period prior
         to the date of termination. The retirement benefits for which funds
         have been allocated in accordance with Section 4044 of ERISA shall be
         provided through the continuance of the existing Fund arrangements or
         through a new instrument entered into for that purpose and shall be
         paid either in a lump sum or in equal monthly installments through the
         purchase of a nontransferable annuity contract(s). After all
         liabilities of the Plan have been satisfied with respect to all
         Participants so affected by the Plan's termination, the Employer shall
         be entitled to any balance of Plan assets that shall remain.

13.04    Plan Mergers, Consolidations, and Transfers. The Plan shall not be
         automatically terminated by the Employer's acquisition by or merger
         into any other company, trade or business, but the Plan shall be
         continued after such merger provided the successor employer agrees to
         continue the Plan with respect to affected Participants herein. All
         rights to amend, modify, suspend or terminate the Plan with respect to
         Participants of the Employer shall be

                                      -37-

<PAGE>

         transferred to the successor employer, effective as of the date of the
         merger or acquisition. The merger or consolidation with, or transfer of
         the allocable portion of the assets and liabilities of the Fund to any
         other qualified retirement plan trust shall be permitted only if the
         benefit each Plan Participant would receive, if the Plan were
         terminated immediately after such merger or consolidation, or transfer
         of the allocable portion of the assets and liabilities, would be at
         least as great as the benefit he would have received had this Plan been
         terminated immediately before the date of merger, consolidation, or
         transfer.

13.05    Amendment of Vesting Schedule. If the vesting provisions of this Plan
         are amended, including an amendment caused by the expiration of
         top-heavy status under the terms of Article 14, Participants with three
         or more Years of Service, or three or more years of employment, whether
         or not consecutive, at the later of the date the amendment is adopted
         or becomes effective, shall automatically be vested, from that point
         forward, in the greater of the amount vested under the vesting schedule
         as amended or the amount vested under the vesting schedule prior to
         amendment.

                                      -38-

<PAGE>

                                   ARTICLE 14

                            TOP-HEAVY PLAN PROVISIONS

14.01    General Rule. For any Plan Year beginning after December 31, 2001 for
         which this Plan is a "Top-Heavy Plan" as defined in Section 14.05
         below, this Plan shall be subject to the provisions of this Article 14.

14.02    Vesting Provision. Each Participant who has completed an Hour of
         Service during the Plan Year in which the Plan is a Top-Heavy Plan and
         has completed the number of Years of Vesting Service specified in the
         following table, shall have a vested right to the percentage of his
         Accrued Benefit under this Plan, correspondingly shown in the following
         table:

                          Years of                    Percentage of
                      Vesting Service                Accrued Benefit

                     Less than 2 years                      0%

                     2 years                               20%

                     3 years                               40%

                     4 years                               60%

                     5 years                               80%

                     6 or more                            100%

         Each Participant's Deferred Vested Benefit shall not be less than his
         vested Accrued Benefit determined as of the last day of the last Plan
         Year in which the Plan was not a Top-Heavy Plan. If the Plan ceases to
         be a Top-Heavy Plan, an Employee with three or more years of
         employment, whether or not consecutive, shall have his Deferred Vested
         Benefit determined either in accordance with this Section 14.02 or
         Section 7.03, as provided in Section 13.05. Each such Participant shall
         have the right to elect the applicable schedule within 60 days after
         the day he is issued written notice by the Committee, or as otherwise
         provided in accordance with regulations issued under the provisions of
         the Code relating to changes in the vesting schedule.

14.03    Minimum Benefit Provision. If the Plan is a Top-Heavy Plan in any Plan
         Year, each Participant who is a Non-Key Employee shall, as of the end
         of that Plan Year, be entitled to an Accrued Benefit that is at least
         equal to the Applicable Percentage of the Participant's Average
         Compensation for Years in the Testing Period. For purposes of this
         Section:

         (a)  "Applicable Percentage" shall mean the lesser of two percent
              multiplied by Years of Service of the Participant, or 20 percent;

         (b)  "Average Compensation for Years in the Testing Period" shall mean
              average annual compensation for that period of five consecutive
              years that produces the highest average. In determining
              consecutive years, any year not included as a Year of

                                      -39-

<PAGE>

              Service under the provisions of Article 2 shall be ignored. In
              calculating Average Compensation for Years in the Testing Period,
              the amount of compensation taken into account shall not exceed
              $200,000 times the Adjustment Factor applicable at the date such
              benefits are calculated.

         (c)  For purposes of satisfying the minimum benefit requirements of
              Section 416(c)(1) of the Code and the Plan, in determining Years
              of Service with an Affiliated Employer, any service with the
              Affiliated Employer shall be disregarded to the extent that such
              service occurs during a Plan Year when the Plan benefits (within
              the meaning of Section 410(b) of the Code) no Key Employee or
              former Key Employee.

14.04    Coordination With Other Plans. In the event that another defined
         contribution or defined benefit plan maintained by the Employer or an
         Affiliated Employer provides contributions or benefits on behalf of
         Participants in this Plan, such other plan shall be treated as part of
         this Plan pursuant to applicable principles (such as Rev. Rul. 81-202
         or any successor ruling) in determining whether this Plan satisfies the
         requirements of Section 14.02. Such determination shall be made upon
         the advice of counsel by the Committee.

14.05    Top-Heavy and Super Top-Heavy Plan Definition. This Plan shall be a
         "Top-Heavy Plan" for any Plan Year if, as of the determination date (as
         defined in subsection 14.05(a)) the present value of the cumulative
         Accrued Benefits under the Plan for Participants (including former
         Participants) who are Key Employees (as defined in Section 14.06)
         exceeds 60 percent of the present value of the cumulative Accrued
         Benefits under the Plan for all Participants, excluding former Key
         Employees, or if this Plan is required to be in an aggregation group
         (as defined in Section 14.05(c)) which for such Plan Year is a
         top-heavy group (as defined in Section 14.05(d)). This Plan shall be a
         "Super Top-Heavy Plan" for any Plan Year if it meets the above
         definition after substituting "90 percent" for "60 percent." For
         purposes of this Section:

         (a)  "Determination date" means for any Plan Year the last day of the
              immediately preceding Plan Year.

         (b)  The present value shall be determined as of the most recent
              valuation date that is within the 12-month period ending on the
              determination date and as described in the regulations under the
              Code. Present values for purposes of determining whether this Plan
              is a Top-Heavy Plan shall be based on the following interest and
              mortality rates:

              (1)  Interest Rate -- eight percent annually.

              (2)  Mortality Rate-- 1983 Group Annuity Mortality Table for
                   Males.

         (c)  "Aggregation group" means the group of plans, if any, that
              includes both the group of plans that are required to be
              aggregated and the group of plans that are permitted to be
              aggregated.

              (1)  The group of plans that are required to be aggregated (the
                   "required aggregation group") includes:

                                      -40-

<PAGE>

                   (A)  Each plan of an Affiliated Employer in which a Key
                        Employee is a participant, including collectively
                        bargained plans.

                   (B)  Each other plan, including collectively bargained plans
                        of an Affiliated Employer, which enables a plan in which
                        a Key Employee is a participant to meet the requirements
                        of the Code prohibiting discrimination as to
                        contributions or benefits in favor of Employees who are
                        officers, shareholders or the highly compensated or
                        prescribing the minimum participation standards.

              (2)  The group of plans that are permitted to be aggregated (the
                   "permissive aggregation group") includes the required
                   aggregation group plus one or more plans of an Affiliated
                   Employer that is not part of the required aggregation group
                   and that the Committee certifies as constituting a plan
                   within the permissive aggregation group. Such plan or plans
                   may be added to the permissive aggregation group only if,
                   after the addition, the aggregation group as a whole
                   continues not to discriminate as to contributions or benefits
                   in favor of officers, shareholders, or the highly-compensated
                   and to meet the minimum participation standards under the
                   Code.

         (d)  "Top-heavy group" means the aggregation group, if as of the
              applicable determination date, the sum of the present value of the
              cumulative accrued benefits for Key Employees under all defined
              benefit plans included in the aggregation group plus the aggregate
              of the accounts of Key Employees under all defined contribution
              plans included in the aggregation group exceeds 60 percent of the
              sum of the present value of the cumulative accrued benefits for
              all Employees, excluding former Key Employees, under all such
              defined benefit plans plus the aggregate accounts for all
              Employees, excluding former Key Employees, under such defined
              contribution plans. If the aggregation group that is a top-heavy
              group is a required aggregation group, each plan in the group will
              be top-heavy. If the aggregation group that is a top-heavy group
              is a permissive aggregation group, only those plans that are part
              of the required aggregation group will be treated as top-heavy. If
              the aggregation group is not a top-heavy group, no plan within
              such group will be top-heavy.

         (e)  In determining whether this Plan constitutes a Top-Heavy Plan, the
              Committee (or its agent) shall make the following adjustments in
              connection therewith:

              (1)  When more than one plan is aggregated, the Committee shall
                   determine separately for each plan as of each plan's
                   determination date the present value of the accrued benefits
                   or account balance. The results shall then be aggregated
                   adding the results of each plan as of the determination dates
                   for such plans that fall within the same calendar year.

              (2)  The present value of accrued benefits and the amounts of
                   account balances of an Employee as of the determination date
                   shall be increased by the distributions made with respect to
                   the Employee under the Plan and any Plan aggregated with the
                   Plan under Section 416(g)(2) of the Code during the one-year
                   period ending on the determination date. The preceding
                   sentence shall

                                      -41-

<PAGE>

                   also apply to distributions under a terminated plan which,
                   had it not been terminated, would have been aggregated with
                   the Plan under Section 416(g)(2)(A)(i) of the Code. In the
                   case of a distribution made for a reason other than
                   separation from service, death or Disability, this provision
                   shall be applied by substituting five-year period for
                   one-year period.

              (3)  The accrued benefits and accounts of any individual who has
                   not performed services for an Affiliated Employer during the
                   one-year period ending on the determination date shall not be
                   taken into account.

              (4)  Further, in making such determination, such present value or
                   such account shall include any rollover contribution (or
                   similar transfer), as follows:

                   (A)  If the rollover contribution (or similar transfer) is
                        initiated by the employee and made to or from a plan
                        maintained by another employer, the plan providing the
                        distribution shall include such distribution in the
                        present value or such account; the plan accepting the
                        distribution shall not include such distribution in the
                        present value or such account unless the plan accepted
                        it before December 31, 1983.

                   (B)  If the rollover contribution (or similar transfer) is
                        not initiated by the Employee or made from a plan
                        maintained by another employer, the plan accepting the
                        distribution shall include such distribution in the
                        present value or such account, whether the plan accepted
                        the distribution before or after December 31, 1983; the
                        plan making the distribution shall not include the
                        distribution in the present value or such account.

              (5)  Further, in making such determination, in any case where an
                   individual is a "Non-Key Employee," as defined in Section
                   14.07 with respect to an applicable plan, but was a Key
                   Employee with respect to such plan for any prior plan year,
                   any accrued benefit and any account of such Employee shall be
                   altogether disregarded.

14.06    Key Employee. The term "Key Employee" means any Employee or former
         Employee (including any deceased employee) who at any time during the
         Plan Year that includes the determination date was an officer of an
         Affiliated Employer having annual compensation greater than $130,000
         (as adjusted under Section 416(i)(1) of the Code for Plan Years
         beginning after December 31, 2002), a five-percent owner of an
         Affiliated Employer, or a one-percent owner of an Affiliated Employer
         having annual compensation of more than $150,000. For this purpose,
         annual compensation means compensation within the meaning of Section
         415(c)(3) of the Code. The determination of who is a Key Employee will
         be made in accordance with Section 416(i)(1) of the Code and the
         applicable regulations and other guidance of general applicability
         issued thereunder.

14.07    Non-Key Employee. The term "Non-Key Employee" means any Participant who
         is not a Key Employee.

                                      -42-

<PAGE>

14.08    Collective Bargaining Rules. The provisions of Sections 14.02 and 14.03
         do not apply with respect to any Employee included in a unit of
         Employees covered by a collective bargaining agreement unless the
         application of such Sections has been agreed upon with the collective
         bargaining agent.

                                      -43-

<PAGE>

                                   ARTICLE 15

                                  MISCELLANEOUS

15.01    Limitation on Distributions. Notwithstanding any provision of this Plan
         regarding payment to Beneficiaries or Participants, or any other
         person, the Committee may withhold payment to any person if the
         Committee determines that such payment may expose the Plan to
         conflicting claims for payment. As a condition for any payments, the
         Committee may require such consent, representations, releases, waivers
         or other information as it deems appropriate. The Committee may, in its
         discretion, comply with the terms of any judgment or other judicial
         decree, order, settlement or agreement including, but not limited to, a
         qualified domestic relations order as defined in Section 414(p) of the
         Code.

15.02    Limitation on Reversion of Contributions. Except as provided in
         subsections (a) or (b) below, Employer contributions made under the
         Plan will be held for the exclusive benefit of Participants, Joint
         Annuitants or Beneficiaries and may not revert to the Employer.

         (a)  A contribution made by the Employer under a mistake of fact may be
              returned to the Employer within one year after it is contributed
              to the Plan, to the extent that it exceeds the amount that would
              have been contributed, absent the mistake in fact.

         (b)  A contribution conditioned upon its deductibility under Section
              404 of the Code, may be returned, to the extent the deduction is
              disallowed, to the Employer within one year after the
              disallowance.

         Compensation attributable to amounts that may be returned to the
         Employer pursuant to this Section may not be distributed, but, in the
         event that there are losses attributable to such amounts, the amount
         returned to the Employer shall be reduced by the amount of such losses.

15.03    Voluntary Plan. The Plan is purely voluntary on the part of the
         Employer and neither the establishment of the Plan nor any Plan
         amendment nor the creation of any fund or account, nor the payment of
         any benefits will be construed as giving any Employee or any person
         legal or equitable right against the Employer, any trustee or other
         Funding Agent, or the Committee unless specifically provided for in
         this Plan or conferred by affirmative action of the Committee or the
         Employer according to the terms and provisions of this Plan. Such
         actions will not be construed as giving any Employee or Participant the
         right to be retained in the service of the Employer. All Employees
         and/or Participants will remain subject to discharge to the same extent
         as though this Plan had not been established.

15.04    Nonalienation of Benefits. Participants and Beneficiaries are entitled
         to all the benefits specifically set out under the terms of the Plan,
         but neither those benefits nor any of the property rights in the Plan
         are assignable or distributable to any creditor or other claimant of a
         Participant or Beneficiary. A Participant will not have the right to
         anticipate, assign, pledge, accelerate, or in any way dispose of or
         encumber any of the monies or benefits or other property that may be
         payable or become payable to such Participant or his Beneficiary

                                      -44-

<PAGE>

         provided, however, the Committee shall recognize and comply with a
         valid qualified domestic relations order as defined in Section 414(p)
         of the Code.

15.05    Inability to Receive Benefits. If the Committee receives evidence that
         a person entitled to receive any payment under the Plan is physically
         or mentally incompetent to receive payment and to give a valid release,
         and another person or any institution is maintaining or has custody of
         such person, and no guardian, committee, or other representative of the
         estate of such person has been duly appointed by a court of competent
         jurisdiction, then any distribution made under the Plan may be made to
         such other person or institution. The release of such other person or
         institution will be a valid and complete discharge for the payment of
         such distribution.

15.06    Missing Persons. If the Committee is unable, after reasonable and
         diligent effort, to locate a Participant, Joint Annuitant, or
         Beneficiary where no contingent beneficiary is provided under the Plan,
         who is entitled to a distribution under the Plan, the distribution due
         such person will be forfeited after five years. If, however, such a
         person later files a claim for such benefit, it will be reinstated
         without any interest earned thereon. In the event that a distribution
         is due to a Beneficiary where a contingent beneficiary is provided
         under the Plan (including the situation in which the contingent
         beneficiary is the Participant's estate), and the Committee is unable,
         after reasonable and diligent effort, to locate the Beneficiary, the
         benefit shall be payable to the contingent beneficiary, and such
         nonlocatable Beneficiary shall have no further claim or interest
         hereunder. Notification by certified or registered mail to the last
         known address of the Participant or Beneficiary will be deemed a
         reasonable and diligent effort to locate such person.

15.07    Military Service. Notwithstanding any provision of this Plan to the
         contrary, contributions, benefits and service credit with respect to
         qualified military service will be provided in accordance with Section
         414(u) of the Code.

15.08    Limitation of Third-Party Rights. Nothing expressed or implied in the
         Plan is intended or will be construed to confer upon or give to any
         person, firm, or association other than the Employer, the Participants
         or Beneficiaries, and their successors in interest, any right, remedy,
         or claim under or by reason of this Plan except pursuant to a qualified
         domestic relations order as defined in Section 414(p) of the Code.

15.09    Invalid Provisions. In case any provision of this Plan is held illegal
         or invalid for any reason, the illegality or invalidity will not affect
         the remaining parts of the Plan. The Plan will be construed and
         enforced as if the illegal and invalid provisions had never been
         included.

15.10    One Plan. This Plan may be executed in any number of counterparts, each
         of which will be deemed an original and the counterparts will
         constitute one and the same instrument and may be sufficiently
         evidenced by any one counterpart.

15.11    Use and Form of Words. Whenever any words are used herein in the
         masculine gender, they will be construed as though they were also used
         in the feminine gender in all cases where that gender would apply, and
         vice versa. Whenever any words are used herein in the singular form,
         they will be construed as though they were also used in the plural form
         in all cases where the plural form would apply, and vice versa.

                                      -45-

<PAGE>

15.12    Headings. Headings to Articles and Sections are inserted solely for
         convenience and reference, and in the case of any conflict, the text,
         rather than the headings, shall control.

15.13    Governing Law. The Plan will be governed by and construed according to
         the federal laws governing employee benefit plans qualified under the
         Code and according to the laws of the state of California where such
         laws are not in conflict with the federal laws.

                                      -46-

<PAGE>
                                    EXECUTION

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

                                    THE PMI GROUP, INC.

                                    By:    /s/ Charles Broom
                                           -------------------------------------
                                    Name:  Charles Broom
                                           -------------------------------------
                                    Title: SVP, HR
                                           -------------------------------------

                                    Dated: December 20, 2002

                                      -47-

<PAGE>

                                   APPENDIX A

                                      -48-

<PAGE>

  Identifier       Base Benefit      Additional Benefit    Allstate Benefit
              1             22,833                 5,874               24,687
              2             22,309                 5,935               14,919
              3             22,434                 5,661               14,206
              4             29,978                10,428                    -
              5             36,150                11,330               42,783
              6             19,363                 5,565               20,623
              7            114,909                45,210               39,881
              8             34,764                11,158               43,656
              9             21,238                 5,006               17,563
             10             16,963                 4,345                    -
             11             19,485                 5,028               22,701
             12             18,516                 4,457               13,028
             13             25,021                 7,305                    -
             14             24,307                 6,711               22,276
             15             17,115                 4,252                    -
             16             25,483                 7,624                5,592
             17             18,493                 3,888               19,108
             18             20,859                 5,685               10,176
             19             22,712                 6,104               23,974
             20             16,248                 3,670                3,609
             21             23,635                 7,118               17,299
             22             25,121                 7,829                    -
             23             19,117                 4,660                3,406
             24             33,141                11,857                    -
             25             21,114                 5,107                2,503
             26             18,455                     -                    -
             27             27,316                 8,376               42,766
             28             23,350                 6,207                    -
             29             28,501                 9,066               18,877
             30             25,467                 7,390               28,192
             31             13,590                 2,143                    -
             32             44,061                16,177               14,745
             33             25,621                 7,455               35,429
             34             31,281                 9,697               37,377
             35             15,123                 2,860               14,722
             36             58,343                21,528               69,674
             37             28,070                 8,175               26,855
             38             73,597                27,720               98,683
             39             20,302                 4,937                    -
             40             60,550                22,374              117,076
             41             25,794                 7,116                6,834
             42             34,001                11,196               43,142
             43             18,351                 3,866                5,640
             44             29,659                10,353                    -
             45             20,515                 4,614               16,055
             46             24,291                 7,301               25,962
             47             18,850                 4,588                    -
             48             26,867                 8,154                9,007
             49             27,647                 7,804               23,436
             50             16,274                 4,209                    -
             51             30,512                 9,375               41,040
             52             22,007                 6,530                6,273
             53             32,123                 9,820                9,058
             54             16,740                 3,784                    -
             55             46,704                16,222                    -
             56             43,185                14,549                    -
             57             26,236                 7,135               19,856
             58             31,782                 9,677               33,487
             59             12,674                 2,640                    -
             60             18,816                 3,588                    -
             61             21,105                 5,784                    -
             62             19,546                 4,907                9,207<PAGE>

                                                                   EXHIBIT 10.20

                                CHANGE OF CONTROL

                              EMPLOYMENT AGREEMENT

          AGREEMENT by and between The PMI Group, Inc., a Delaware corporation
(the "Company"), and ____________("Executive"), dated as of the ____day of
 ____________, 2003.

          The Board of Directors of the Company (the "Board"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company. The Board believes it is imperative to diminish
the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control and
to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of other
corporations. Therefore, in order to accomplish these objectives, the Board has
caused the Company to enter into this Agreement.

          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

          1.   Certain Definitions. (a) The "Effective Date" shall mean the
first date during the Change of Control Period (as defined in Section 1(b)) on
which a Change of Control (as defined in Section 2) occurs. Anything in this
Agreement to the contrary notwithstanding, if a Change of Control occurs and if
the Executive's employment with the Company is terminated prior to the date on
which the Change of Control occurs, and if it is reasonably demonstrated by the
Executive that such termination of employment (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change of Control or
(ii) otherwise arose in connection with or anticipation of a Change of Control,
then for all purposes of this Agreement the "Effective Date" shall mean the date
immediately prior to the date of such termination of employment.

<PAGE>

          (b)  The "Change of Control Period" shall mean the period commencing
on the date hereof and ending on the third anniversary of the date hereof;
provided, however, that commencing on the date one year after the date hereof,
and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate three years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

          2.   Change of Control. For the purpose of this Agreement, a "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 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 2. 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 owner-

                                       -2-

<PAGE>

ship 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

                                       -3-

<PAGE>

directly or 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.

          3.   Employment Period. The Company hereby agrees to continue the
Executive in its employ, and the Executive hereby agrees to remain in the employ
of the Company subject to the terms and conditions of this Agreement, for the
period commencing on the Effective Date and ending on the third anniversary of
such date (the "Employment Period").

                                       -4-

<PAGE>

          4.   Terms of Employment. (a) Position and Duties. (i) During the
Employment Period, (A) the Executive's position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall
be at least commensurate in all material respects with the most significant of
those held, exercised and assigned to the Executive at any time during the
90-day period immediately preceding the Effective Date and (B) the Executive's
services shall be performed at the location where the Executive was employed
immediately preceding the Effective Date or any office or location less than 50
miles from such location.

               (ii)    During the Employment Period, and excluding any periods
of vacation and sick leave to which the Executive is entitled, the Executive
agrees to devote reasonable attention and time during normal business hours to
the business and affairs of the Company and, to the extent necessary to
discharge the responsibilities assigned to the Executive hereunder, to use the
Executive's reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that to the extent that
any such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company.

          (b)  Compensation. (i) Base Salary. During the Employment Period, the
Executive shall receive an annual base salary ("Annual Base Salary"), which
shall be paid at a monthly rate, at least equal to twelve times the highest
monthly base salary paid or payable, including any base salary which has been
earned but deferred, to the Executive by the Company and its affiliated
companies in respect of the twelve-month period immediately preceding the month
in which the Effective Date occurs. During the Employment Period, the Annual
Base Salary shall be reviewed no more than 12 months after the last salary
increase awarded to the

                                       -5-

<PAGE>

Executive prior to the Effective Date and thereafter at least annually. Any
increase in Annual Base Salary shall not serve to limit or reduce any other
obligation to the Executive under this Agreement. Annual Base Salary shall not
be reduced after any such increase and the term Annual Base Salary as utilized
in this Agreement shall refer to Annual Base Salary as so increased. As used in
this Agreement, the term "affiliated companies" shall include any company
controlled by, controlling or under common control with the Company.

               (ii)    Annual Bonus. In addition to the Annual Base Salary, the
Executive shall be awarded, for each fiscal year ending during the Employment
Period, an annual bonus (the "Annual Bonus") in cash at least equal to the
Executive's highest bonus earned under the Company's annual incentive plans, or
any comparable bonus under any predecessor or successor plan, for the last three
full fiscal years prior to the Effective Date (or for such lesser number of full
fiscal years prior to the Effective Date for which the Executive was eligible to
earn such a bonus, and annualized in the case of any bonus earned for a partial
fiscal year) (the "Recent Annual Bonus"). If the Executive has not been eligible
to earn such a bonus for any period prior to the Effective Date, the Recent
Annual Bonus shall mean the Executive's target Annual Bonus for the year in
which the Effective Date occurs. Each such Annual Bonus shall be paid no later
than the end of the third month of the fiscal year next following the fiscal
year for which the Annual Bonus is awarded, unless the Executive shall elect to
defer the receipt of such Annual Bonus.

               (iii)   Incentive, Savings and Retirement Plans. During the
Employment Period, the Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
(other than equity-based incentives) provide the Executive with incentive
opportunities (measured with respect to both regular and special incentive
opportunities, to the extent, if any, that such distinction is applicable),
savings opportunities and retirement benefit opportunities, in each case, less
favorable, in the aggregate, than the most favorable of those provided by the
Company and its affiliated companies for the Executive under such plans,
practices, policies and programs as in effect at any time during the 90-day
period immediately preceding the Effective Date or if

                                       -6-

<PAGE>

more favorable to the Executive, those provided generally at any time after the
Effective Date to other peer executives of the Company and its affiliated
companies.

               (iv)    Welfare Benefit Plans. During the Employment Period, the
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and its affiliated
companies (including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, accidental death and
travel accident insurance plans and programs) to the extent applicable generally
to other peer executives of the Company and its affiliated companies, but in no
event shall such plans, practices, policies and programs provide the Executive
with benefits which are less favorable, in the aggregate, than the most
favorable of such plans, practices, policies and programs in effect for the
Executive at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company and
its affiliated companies.

               (v)     Expenses. During the Employment Period, the Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by the Executive in accordance with the most favorable policies,
practices and procedures of the Company and its affiliated companies in effect
for the Executive at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and its
affiliated companies.

               (vi)    Fringe Benefits. During the Employment Period, the
Executive shall be entitled to fringe benefits, including, without limitation,
tax and financial planning services, payment of club dues, and, if applicable,
use of an automobile and payment of related expenses, in accordance with the
most favorable plans, practices, programs and policies of the Company and its
affiliated companies in effect for the Executive at any time during the 90-day
period immediately preceding the Effective Date or, if more favorable to the
Executive, as in effect generally at any time thereafter with respect to other
peer executives of the Company and its affiliated companies.

                                       -7-

<PAGE>

               (vii)   Office and Support Staff. During the Employment Period,
the Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing provided
to the Executive by the Company and its affiliated companies at any time during
the 90-day period immediately preceding the Effective Date or, if more favorable
to the Executive, as provided generally at any time thereafter with respect to
other peer executives of the Company and its affiliated companies.

               (viii)  Vacation. During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company and its affiliated companies as
in effect for the Executive at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives of
the Company and its affiliated companies.

          5.   Termination of Employment. (a) Death or Disability. The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties. For
purposes of this Agreement, "Disability" shall mean the absence of the Executive
from the Executive's duties with the Company on a full-time basis for 180
consecutive business days as a result of incapacity due to mental or physical
illness which is determined to be total and permanent by a physician selected by
the Company or its insurers and acceptable to the Executive or the Executive's
legal representative.

          (b)  Cause. The Company may terminate the Executive's employment
during the Employment Period for Cause. For purposes of this Agreement, "Cause"
shall mean:

                                       -8-

<PAGE>

               (i)     the willful and continued failure of the Executive to
     perform substantially the Executive's duties with the Company or one of its
     affiliates (other than any such failure resulting from incapacity due to
     physical or mental illness), after a written demand for substantial
     performance is delivered to the Executive by the Board or the Chief
     Executive Officer of the Company which specifically identifies the manner
     in which the Board or Chief Executive Officer believes that the Executive
     has not substantially performed the Executive's duties, or

               (ii)    the willful engaging by the Executive in illegal conduct
     or gross misconduct which is materially and demonstrably injurious to the
     Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company. Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer or
a senior officer of the Company or based upon the advice of counsel for the
Company shall be conclusively presumed to be done, or omitted to be done, by the
Executive in good faith and in the best interests of the Company. The cessation
of employment of the Executive shall not be deemed to be for Cause unless and
until there shall have been delivered to the Executive a copy of a resolution
duly adopted by the affirmative vote of not less than three-quarters of the
entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the
Executive is given an opportunity, together with counsel, to be heard before the
Board), finding that, in the good faith opinion of the Board, the Executive is
guilty of the conduct described in subparagraph (i) or (ii) above, and
specifying the particulars thereof in detail.

          (c)  Good Reason. The Executive's employment may be terminated by the
Executive for Good Reason. For purposes of this Agreement, "Good Reason" shall
mean:

               (i)     the assignment to the Executive of any duties
     inconsistent in any substantial respect with the Executive's position
     (including status, offices, titles and re-

                                       -9-

<PAGE>

     porting requirements), authority, duties or responsibilities as
     contemplated by Section 4(a) of this Agreement, or any other action by the
     Company which results in a substantial diminution in such position,
     authority, duties or responsibilities, excluding for this purpose an
     isolated, insubstantial and inadvertent action not taken in bad faith and
     which is remedied by the Company promptly after receipt of notice thereof
     given by the Executive;

               (ii)    any failure by the Company to comply with any of the
     provisions of Section 4(b) of this Agreement, other than an isolated,
     insubstantial and inadvertent failure not occurring in bad faith and which
     is remedied by the Company promptly after receipt of notice thereof given
     by the Executive;

               (iii)   the Company's requiring the Executive to be based at any
     office or location other than as provided in Section 4(a)(i)(B) hereof or
     the Company's requiring the Executive to travel on Company business to a
     substantially greater extent than required immediately prior to the
     Effective Date;

               (iv)    any purported termination by the Company of the
     Executive's employment otherwise than as expressly permitted by this
     Agreement; or

               (v)     any failure by the Company to comply with and satisfy
     Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good Reason"
made by the Executive shall be conclusive. Anything in this Agreement to the
contrary notwithstanding, a termination by the Executive for any reason during
the 30-day period immediately following the first anniversary of the Effective
Date shall be deemed to be a termination for Good Reason for all purposes of
this Agreement.

          (d)  Notice of Termination. Any termination by the Company for Cause,
or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 12(b) of
this Agreement. For purposes of this Agreement, a "Notice of Termination" means
a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in

                                      -10-

<PAGE>

reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated and
(iii) if the Date of Termination (as defined below) is other than the date of
receipt of such notice, specifies the termination date (which date shall be not
more than thirty days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, hereunder or
preclude the Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

          (e)  Date of Termination. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if the Executive's employment is terminated by reason of death or Disability,
the date of death of the Executive or the Disability Effective Date, as the case
may be.

          6.   Obligations of the Company upon Termination. (a) Good Reason;
Other Than for Cause, Death or Disability. If, during the Employment Period, the
Company shall terminate the Executive's employment other than for Cause or
Disability or the Executive shall terminate employment for Good Reason:

               (i)     the Company shall pay to the Executive in a lump sum in
     cash within 30 days after the Date of Termination the aggregate of the
     following amounts:

                   A. the sum of (1) the Executive's Annual Base Salary through
          the Date of Termination to the extent not theretofore paid, (2) the
          product of (x) the higher of (i) the Recent Annual Bonus and (ii) the
          Annual Bonus paid or payable, including any bonus or portion thereof
          that has been earned but deferred (and annualized for any fiscal year
          consisting of less than 12 full months or during which the Executive
          was employed for less than 12 full months), for the most recently

                                      -11-

<PAGE>

          completed fiscal year during the Employment Period, if any (such
          higher amount, the "Highest Annual Bonus") and (y) a fraction, the
          numerator of which is the number of days in the current fiscal year
          through the Date of Termination, and the denominator of which is 365
          and (3) any compensation previously deferred by the Executive
          (together with any accrued interest or earnings thereon) and any
          accrued vacation pay, in each case to the extent not theretofore paid
          (the sum of the amounts described in clauses (1), (2), and (3) shall
          be hereinafter referred to as the "Accrued Obligations"); and

                   B. the amount equal to the product of (1)________ and (2) the
          sum of (x) the Executive's Annual Base Salary and (y) the Highest
          Annual Bonus; and

                   C. an amount equal to the difference between (a) the
          aggregate benefit under the Company's qualified defined benefit
          retirement plan (currently entitled The PMI Group, Inc. Retirement
          Plan) (the "Retirement Plan") and the Company's excess or supplemental
          defined benefit retirement plan(s) in which the Executive participates
          (currently entitled The PMI Group, Inc. Supplemental Employee
          Retirement Plan) (the "SERP") which the Executive would have accrued
          (whether or not vested) if the Executive's employment had continued
          for ________ years after the Date of Termination (for purposes of this
          clause (a) of Section 6(a)(i)(C), the Executive shall be treated as
          vested in, and eligible to receive, his accrued benefits under the
          Retirement Plan and SERP, based upon the Executive's credited service
          under such plans, plus the additional years of credited service under
          this Section) and (b) the actual vested benefit, if any, of the
          Executive under the Retirement Plan and the SERP, determined as of the
          Date of Termination (with the foregoing amounts to be computed on an
          actuarial present value basis, based on the assumption that the
          Executive's compensation in each of the ________ years following such
          termination would have been that required by Section 4(b)(i) and
          Section 4(b)(ii), and using actuarial assumptions no less favorable to
          the Executive than the most favorable of those in effect for purposes
          of

                                      -12-

<PAGE>

          computing benefit entitlements under the Retirement Plan and the SERP
          at any time from the day before the Effective Date) through the Date
          of Termination (no amendment to or termination of the Retirement plan
          or SERP on or after the Effective Date shall adversely effect the
          Executive's right to receive the benefits under this Section
          6(a)(i)(C), based upon the Executive's credited service through the
          date of such amendment or termination, plus the additional years of
          service credited under this Section);

               (ii)    for _________ years after the Executive's Date of
     Termination, or such longer period as may be provided by the terms of the
     appropriate plan, program, practice or policy, the Company shall continue
     benefits to the Executive and/or the Executive's family at least equal to
     those which would have been provided to them in accordance with the plans,
     programs, practices and policies described in Section 4(b)(iv) of this
     Agreement if the Executive's employment had not been terminated or, if more
     favorable to the Executive, as in effect generally at any time thereafter
     with respect to other peer executives of the Company and its affiliated
     companies and their families, provided, however, that if the Executive
     becomes reemployed with another employer and is eligible to receive medical
     or other welfare benefits under another employer-provided plan, the medical
     and other welfare benefits described herein shall be secondary to those
     provided under such other plan during such applicable period of
     eligibility, and for purposes of determining eligibility (but not the time
     of commencement of benefits) of the Executive for retiree benefits pursuant
     to such plans, practices, programs and policies, the Executive shall be
     considered to have remained employed until _______ years after the Date of
     Termination and to have retired on the last day of such period; provided
     however, that notwithstanding anything else contained in this Section
     6(a)(ii), if the Executive has reached the age of 50 on or prior to his
     Date of Termination, he shall be deemed fully eligible for retiree health
     benefits;

               (iii)   the Company shall, at its sole expense as incurred,
     provide the Executive with outplacement services the scope and provider of
     which shall be selected by the Executive in the Executive's sole
     discretion; and provided, however, that the cost of

                                      -13-

<PAGE>

     such outplacement shall not exceed 15% of Annual Base Salary as of the Date
     of Termination;

               (iv)    to the extent not theretofore paid or provided, the
     Company shall timely pay or provide to the Executive any other amounts or
     benefits required to be paid or provided or which the Executive is eligible
     to receive under any plan, program, policy or practice or contract or
     agreement of the Company and its affiliated companies (such other amounts
     and benefits shall be hereinafter referred to as the "Other Benefits").

          (b)  Death. If the Executive's employment is terminated by reason of
the Executive's death during the Employment Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than for payment of Accrued Obligations and the
timely payment or provision of Other Benefits. Accrued Obligations shall be paid
to the Executive's estate or beneficiary, as applicable, in a lump sum in cash
within 30 days of the Date of Termination. With respect to the provision of
Other Benefits, the term Other Benefits as utilized in this Section 6(b) shall
include, without limitation, and the Executive's estate and/or beneficiaries
shall be entitled to receive, benefits at least equal to the most favorable
benefits provided by the Company and affiliated companies to the estates and
beneficiaries of peer executives of the Company and such affiliated companies
under such plans, programs, practices and policies relating to death benefits,
if any, as in effect with respect to other peer executives and their
beneficiaries at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Executive's estate and/or the
Executive's beneficiaries, as in effect on the date of the Executive's death
with respect to other peer executives of the Company and its affiliated
companies and their beneficiaries.

          (c)  Disability. If the Executive's employment is terminated by reason
of the Executive's Disability during the Employment Period, this Agreement shall
terminate without further obligations to the Executive, other than for payment
of Accrued Obligations and the timely payment or provision of Other Benefits.
Accrued Obligations shall be paid to the Executive in a lump sum in cash within
30 days of the Date of Termination. With respect to the provision of Other
Benefits, the term Other Benefits as utilized in this Section 6(c) shall
include, and the Executive shall be entitled after the Disability Effective Date
to receive, disability and

                                      -14-

<PAGE>

other benefits at least equal to the most favorable of those generally provided
by the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 90-day period
immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive's family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and its affiliated
companies and their families.

          (d)  Cause; Other than for Good Reason. If the Executive's employment
shall be terminated for Cause during the Employment Period, this Agreement shall
terminate without further obligations to the Executive other than the obligation
to pay to the Executive (x) the Annual Base Salary through the Date of
Termination, (y) the amount of any compensation previously deferred by the
Executive, and (z) Other Benefits, in each case to the extent theretofore
unpaid. If the Executive voluntarily terminates employment during the Employment
Period, excluding a termination for Good Reason, this Agreement shall terminate
without further obligations to the Executive, other than for Accrued Obligations
and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days
of the Date of Termination.

          7.   Non-exclusivity of Rights. Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company or any of its affiliated
companies and for which the Executive may qualify, nor, subject to Section
12(f), shall anything herein limit or otherwise affect such rights as the
Executive may have under any contract or agreement with the Company or any of
its affiliated companies. Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

          8.   Full Settlement; Legal Fees. The Company's obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall

                                      -15-

<PAGE>

not be affected by any set-off, counterclaim, recoupment, defense or other
claim, right or action which the Company may have against the Executive or
others. In no event shall the Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement and except as
specifically provided in Section 6(a)(ii), such amounts shall not be reduced
whether or not the Executive obtains other employment. The Company agrees to pay
as incurred, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof) by the Company, the Executive or others of the validity
or enforceability of, or liability or entitlement under, any provision of this
Agreement or any guarantee of performance thereof (whether such contest is
between the Company and the Executive or between either of them and any third
party, and including as a result of any contest by the Executive about the
amount of any payment pursuant to this Agreement), plus in each case interest on
any delayed payment at the applicable Federal rate provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code").

          9.   Certain Additional Payments by the Company.

          (a)  Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment, award, benefit or
distribution by the Company (or any of its affiliated entities) or by any entity
which effectuates a Change of Control (or any of its affiliated entities) to or
for the benefit of the Executive (whether pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required under this Section 9) (a "Payment") would be subject to the excise tax
imposed by Section 4999 of the Code or any corresponding provisions of state or
local tax laws, or any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the "Excise Tax"), then
the Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax

                                      -16-

<PAGE>

imposed upon the Payments. The payment of a Gross-Up Payment under this Section
9(a) shall not be conditioned upon the Executive's termination of employment.
Notwithstanding the foregoing provisions of this Section 9(a), if it shall be
determined that the Executive is entitled to a Gross-Up Payment, but that the
portion of the Payments that would be treated as "parachute payments" under
Section 280G of the Code does not exceed 110% of the greatest amount (the "Safe
Harbor Amount") that could be paid to the Executive such that the receipt of
Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall
be made to the Executive and the amounts payable under this Agreement shall be
reduced so that the Payments, in the aggregate, are reduced to the Safe Harbor
Amount. The reduction of the amounts payable hereunder, if applicable, shall be
made by first reducing the payments under Section 6(a)(i)(B), unless an
alternative method of reduction is elected by the Executive. For purposes of
reducing the Payments to the Safe Harbor Amount, only amounts payable under this
Agreement (and no other Payments) shall be reduced. If the reduction of the
amounts payable under this Agreement would not result in a reduction of the
Payments to the Safe Harbor Amount, no amounts payable under this Agreement
shall be reduced pursuant to this Section 9(a).

          (b)  Subject to the provisions of Section 9(c), all determinations
required to be made under this Section 9, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by Deloitte &
Touche LLP or such other certified public accounting firm as may be designated
by the Executive (the "Accounting Firm"), which shall provide detailed
supporting calculations both to the Company and the Executive within 15 business
days of the receipt of notice from the Executive that there has been a Payment,
or such earlier time as is requested by the Company. In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change of Control, the Executive shall appoint another
nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 9, shall be paid by the Company to the Executive within five days of the
receipt of the Accounting Firm's determination. Any determination by the
Accounting Firm shall be binding upon the Company and the Executive. As a

                                      -17-

<PAGE>

result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made ("Underpayment"), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its
remedies pursuant to Section 9(c) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount
of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

          (c)  The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such
claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall:

               (i)     give the Company any information reasonably requested by
     the Company relating to such claim,

               (ii)    take such action in connection with contesting such claim
     as the Company shall reasonably request in writing from time to time,
     including, without limitation, accepting legal representation with respect
     to such claim by an attorney reasonably selected by the Company,

               (iii)   cooperate with the Company in good faith in order
     effectively to contest such claim, and

               (iv)    permit the Company to participate in any proceedings
     relating to such claim;

                                      -18-

<PAGE>

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 9(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
the Executive to pay the tax claimed and sue for a refund or contest the claim
in any permissible manner, and the Executive agrees to prosecute such contest to
a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and hold
the Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

          (d)  If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 9(c), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of Section 9(c)) promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 9(c), a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does

                                      -19-

<PAGE>

not notify the Executive in writing of its intent to contest such denial of
refund prior to the expiration of 30 days after such determination, then such
advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

          10.  Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Executive
during the Executive's employment by the Company or any of its affiliated
companies and which shall not be or become public knowledge (other than by acts
by the Executive or representatives of the Executive in violation of this
Agreement). After termination of the Executive's employment with the Company,
the Executive shall not, without the prior written consent of the Company or as
may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 10 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

          11.  Successors. (a) This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

          (b)  This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

          (c)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as

                                      -20-

<PAGE>

hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

          12.  Miscellaneous. (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of California, without
reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

          (b)  All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

          If to the Executive:

                              -----------------

          If to the Company:

                            The PMI Group, Inc.
                            3003 Oak Road
                            Walnut Creek, California 94597
                            Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

          (c)  The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

          (d)  The Company may withhold from any amounts payable under this
Agreement such Federal, state, local or foreign taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

                                      -21-

<PAGE>

          (e)  The Executive's or the Company's failure to insist upon strict
compliance with any provision hereof or any other provision of this Agreement or
the failure to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate
employment for Good Reason pursuant to Section 5(c)(i)-(v) of this Agreement,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

          (f)  The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is "at will"
and, prior to the Effective Date, the Executive's employment may be terminated
by either the Executive or the Company at any time prior to the Effective Date,
in which case the Executive shall have no further rights under this Agreement.
From and after the Effective Date this Agreement shall supersede any other
agreement between the parties with respect to the subject matter hereof,
including, without limitation, the right of the Executive to participate in any
severance plan of the Company or otherwise receive severance benefits from the
Company.

          IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Board of Directors, the Company
has caused this Agreement to be executed in its name on its behalf, all as of
the day and year first above written.

                                          --------------------------------

                                          THE PMI GROUP, INC.

                                          By:
                                             -----------------------------

                                      -22-

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