Document:

Form of Restricted Stock Unit Grant Notice & Agreement

 Exhibit 10.2 
 ENCORE CAPITAL GROUP, INC. 
 RESTRICTED STOCK UNIT GRANT NOTICE 
 (2005
STOCK INCENTIVE PLAN, AS AMENDED) 
 Encore Capital Group, Inc. (the
“Company”), pursuant to its 2005 Stock Incentive Plan, as amended (the “Plan”), hereby awards to Participant a Restricted Stock Unit award for the number of shares of the Company’s Stock set forth
below (the “Award”). The Award is subject to all of the terms and conditions as set forth herein and in the Plan and the Restricted Stock Unit Agreement, both of which are attached hereto and incorporated herein in their
entirety. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Plan or the Restricted Stock Unit Agreement. In the event of any conflict between the terms in the Award and the Plan, the terms of the Plan shall
control. 
  

			
	 Participant:
	 	  

	Date of Grant:	 	  

	 Vesting Commencement Date:
	 	See Vesting Schedule below
	 Number of Shares Subject to Award:
	 	  

	Consideration:	 	 Participant’s Past Services

  

	Vesting Schedule:	                                      
                                         
                                         
                . [In addition, the vesting of the shares shall accelerate upon the occurrence of the following events:
                                         
               .] Notwithstanding the foregoing, vesting shall terminate upon the Participant’s termination of Continuous Service. 

 Additional Terms/Acknowledgements: The undersigned Participant acknowledges receipt of, and understands and agrees to, this Restricted Stock Unit Grant Notice,
the Restricted Stock Unit Agreement and the Plan. Participant further acknowledges that as of the Date of Grant, this Restricted Stock Unit Grant Notice, the Restricted Stock Unit Agreement and the Plan set forth the entire understanding between
Participant and the Company regarding the Award and supersedes all prior oral and written agreements on that subject. 
  

									
	 ENCORE CAPITAL GROUP, INC.:
	 		 	PARTICIPANT:
				
	 By:
	 	  
	 		 	  

		 	J. Brandon Black	 		 	  

					
	 Title:
	 	 President and Chief Executive Officer
	 		 	 Date:
	 	  

					
	 Date:
	 	  
	 		 		 	

 ATTACHMENTS: Restricted Stock Unit Agreement, 2005 Stock Incentive Plan, as
Amended 

 ATTACHMENT I 
 ENCORE CAPITAL GROUP, INC. 
 2005 STOCK INCENTIVE PLAN, AS AMENDED 
 RESTRICTED STOCK UNIT AGREEMENT – EXECUTIVE 
 Pursuant to the Restricted Stock Unit Grant Notice (“Grant Notice”) and this Restricted Stock Unit Agreement and in consideration of your past services, Encore Capital Group, Inc. (the
“Company”) has awarded you a deferred issuance restricted stock award (the “Award”) under its 2005 Stock Incentive Plan, as amended (the “Plan”) for the number of shares of the
Company’s Stock as indicated in the Grant Notice. Your Award is granted to you effective as of the Date of Grant set forth in the Grant Notice for this Award. Defined terms not explicitly defined in this Restricted Stock Unit Agreement shall
have the same meanings given to them in the Plan. In the event of any conflict between the terms in this Restricted Stock Unit Agreement and the Plan, the terms of the Plan shall control. 
 RECITALS 
 WHEREAS, Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”) provides that deferred compensation arrangements (including, in this case, the Award) that do not comply with, among other things, the distribution requirements of Code Section 409A, are subject to
an additional 20% tax, plus interest, on the distribution. 
 WHEREAS, Code Section 409A provides that the payment of the deferred
compensation must not occur prior to: (i) termination of Continuous Service (as defined below), but “key employees” of publicly traded companies must wait an additional six months, (ii) Disability (as defined below),
(iii) death, (iv) a fixed date (or dates) specified at the time of deferral, (v) a change in control, or (vi) the occurrence of an unforeseeable emergency. 
 WHEREAS, at the time the shares subject to your Award would otherwise be issued to you in connection with your termination of Continuous Service, you may
be subject to the distribution limitations contained in Code Section 409A applicable to a “key employee” as defined in Code Section 416(i). 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree that the details of
your Award are as follows: 
 1. VESTING. 
 (a) In General. Subject to the limitations contained herein, your Award will vest in accordance with the vesting schedule provided in the Grant Notice, provided that vesting will cease upon the termination of
your Continuous Service. For purposes of this Award, “Continuous Service” means that your service with the Company or an Affiliate, whether as an employee, director or consultant, is not interrupted or terminated. A change in
the capacity in 
 1 

 
which you render service to the Company or an Affiliate as an employee, consultant or director or a change in the entity for which you render such service,
provided that there is no interruption or termination of your service with the Company or an Affiliate, shall not terminate your Continuous Service. For example, a change in status from an employee of the Company to a consultant to an Affiliate or
to a director shall not constitute an interruption of Continuous Service. To the extent permitted by law, the Board or its compensation committee or any officer designated by the Board or its compensation committee, in that party’s sole
discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. Notwithstanding the foregoing, a leave
of absence shall be treated as Continuous Service for purposes of vesting to such extent as may be provided in the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to you, or as
otherwise required by law. 
 (b) Vesting Acceleration. Notwithstanding the foregoing, upon a Change of Control during your Continuous
Service, or in the event that your Continuous Service is terminated due to your death or Disability, then your Award will immediately vest in full. 
 2. NUMBER OF SHARES. The number of shares subject to your Award may be adjusted from time to time for capitalization adjustments, as provided in the Plan. 
 3. SECURITIES LAW COMPLIANCE. You may not be issued any shares under your Award unless the shares are
either: (i) then registered under the Securities Act; or (ii) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act. Your Award also must comply with other applicable laws
and regulations governing the Award, and you will not receive such shares if the Company determines that such receipt would not be in material compliance with such laws and regulations. 
 4. LIMITATIONS ON TRANSFER. Your Award is not transferable, except by will or by the laws of descent
and distribution. In addition to any other limitation on transfer created by applicable securities laws, you agree not to assign, hypothecate, donate, encumber or otherwise dispose of any interest in any of the shares of Stock held by you under the
Award until the shares are issued to you in accordance with Section 6 of this Restricted Stock Unit Agreement. After the shares have been issued to you, you are free to assign, hypothecate, donate, encumber or otherwise dispose of any interest
in such shares provided that any such actions are in compliance with the provisions herein and applicable securities laws. 
 5.
DIVIDENDS. You shall be entitled to receive payments equal to any cash dividends and other distributions paid with respect to a corresponding number of shares covered by your Award, provided that if any such dividends or
distributions are paid in shares, the Fair Market Value of such shares shall be converted into additional shares covered by the Award, and further provided that such additional shares shall be subject to the same forfeiture restrictions and
restrictions on transferability as apply to the shares subject to the Award with respect to which they relate. 
 2 

 6. DATE OF ISSUANCE. 
 (a) The Company will deliver to you a number of shares of the Company’s Stock equal to the number of vested shares subject to your Award,
including any additional shares received pursuant to Section 5 above that relate to those vested shares on the vesting date or dates provided in your Grant Notice; provided, however, that if the Company determines that you are subject to its
policy regarding insider trading of the Company’s stock or you are otherwise prohibited from selling shares of the Company’s stock in the public market and any shares of Common Stock subject to your Award are scheduled to be delivered on a
day (the “Original Distribution Date”) that does not occur during an open “window period” applicable to you, as determined by the Company in accordance with such policy, or a day when you are prohibited from selling shares of the
Company’s stock in the public market and the Company elects not to satisfy its tax withholding obligations by withholding shares from your distribution, then such shares shall not be delivered on such Original Distribution Date and
shall instead be delivered as soon as practicable within the next open “window period” applicable to you pursuant to such policy or the next day when you are not prohibited from selling shares of the Company’s stock in the public
market; provided, however, that unless the delay until the next open window period or the next day when you are not prohibited from selling shares of the Company’s stock in the public market would not result in the imposition of any
additional taxes under the Code (including section 409A of the Code), the delivery of the shares shall not be delayed pursuant to this provision beyond the later of: (a) December 31st of the same calendar year of the Original Distribution
Date, or (b) the 15th day of the third calendar month following the Original Distribution Date. 
 (b) Notwithstanding the
foregoing: 
 (i) If, within the 30-day period following the Date of Grant indicated on your Grant Notice, you elect to defer delivery
of such shares of Common Stock beyond the vesting date, then the Company will not deliver such shares on the vesting date or dates provided in your Grant Notice, but will instead deliver such shares to you on the date or dates that you so elect (the
“Settlement Date”); provided, however, that in the event of your “separation from service” (as such term is defined in Section 409A(a)(2)(A)(i) and applicable guidance thereunder) prior to the Settlement Date,
such vested shares of Common Stock shall instead be delivered to you on the date of your termination of Continuous Service. If such deferral election is made, the Committee shall, in its sole discretion, establish the rules and procedures for such
election which shall be evidenced by a Restricted Stock Unit Election Agreement. 
 (ii) If at the time the shares would otherwise be
issued to you as a result of your termination of Continuous Service, you are subject to the distribution limitations contained in Code Section 409A applicable to “key employees” as defined in Code Section 416(i), share issuances
to you as a result of your termination of Continuous Service shall not be made before the date which is six (6) months following the date of your termination of Continuous Service, or, if earlier, the date of your death that occurs within such
six (6) month period. 
 7. RESTRICTIVE LEGENDS. The shares issued under your Award shall be
endorsed with appropriate legends determined by the Company. 
 3 

 8. AWARD NOT A SERVICE
CONTRACT. 
 (a) Your Continuous Service with the Company or an Affiliate is not for any specified term and may be
terminated by you or by the Company or an Affiliate at any time, for any reason, with or without cause and with or without notice. Nothing in this Restricted Stock Unit Agreement (including, but not limited to, the vesting of your Award
pursuant to the schedule set forth in Section 2 herein), the Plan or any covenant of good faith and fair dealing that may be found implicit in this Restricted Stock Unit Agreement or the Plan shall: (i) confer upon you any right to
continue in the employ of, or affiliation with, the Company or an Affiliate; (ii) constitute any promise or commitment by the Company or an Affiliate regarding the fact or nature of future positions, future work assignments, future compensation
or any other term or condition of employment or affiliation; (iii) confer any right or benefit under this Restricted Stock Unit Agreement or the Plan unless such right or benefit has specifically accrued under the terms of this Restricted Stock
Unit Agreement or Plan; or (iv) deprive the Company of the right to terminate you at will and without regard to any future vesting opportunity that you may have. 
 (b) By accepting this Award, you acknowledge and agree that the right to continue vesting in the Award pursuant to the schedule set forth in Section 2 is earned only by continuing as an employee, director
or consultant at the will of the Company (not through the act of being hired, being granted this Award or any other award or benefit) and that the Company has the right to reorganize, sell, spin-out or otherwise restructure one or more of its
businesses or Affiliates at any time or from time to time, as it deems appropriate (a “reorganization”). You further acknowledge and agree that such a reorganization could result in the termination of your Continuous Service, or the
termination of Affiliate status of your employer and the loss of benefits available to you under this Restricted Stock Unit Agreement, including but not limited to, the termination of the right to continue vesting in the Award. You further
acknowledge and agree that this Restricted Stock Unit Agreement, the Plan, the transactions contemplated hereunder and the vesting schedule set forth herein or any covenant of good faith and fair dealing that may be found implicit in any of them do
not constitute an express or implied promise of continued engagement as an employee or consultant for the term of this Restricted Stock Unit Agreement, for any period, or at all, and shall not interfere in any way with your right or the
Company’s right to terminate your Continuous Service at any time, with or without cause and with or without notice. 
 9.
WITHHOLDING OBLIGATIONS. 
 (a) On or before the time you receive a distribution of shares pursuant
to your Award, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and/or any other amounts payable to you, provided that any such withholding will not be in excess of the minimum statutory
withholding requirement, and otherwise agree to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in connection with your
Award. 
 (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied, the Company shall have no
obligation to issue the shares of Stock subject to your Award. 
 4 

 10. UNSECURED OBLIGATION. Your Award is unfunded, and as a holder of
a vested Award, you shall be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue shares pursuant to this Restricted Stock Unit Agreement. You shall not have voting or any other rights as a
stockholder of the Company with respect to the shares to be issued pursuant to this Restricted Stock Unit Agreement until such shares are issued to you pursuant to Section 6 of this Restricted Stock Unit Agreement. Upon such issuance, you will
obtain full voting and other rights as a stockholder of the Company. Nothing contained in this Restricted Stock Unit Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary
relationship between you and the Company or any other person. 
 11. NOTICES. Any notices provided for in your Award or
the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the
last address you provided to the Company. 
 12. MISCELLANEOUS. 
 (a) The rights and obligations of the Company under your Award shall be transferable to any one or more persons or entities, and all covenants and
agreements hereunder shall inure to the benefit of, and be enforceable by the Company’s successors and assigns. Your rights and obligations under your Award may only be assigned with the prior written consent of the Company. 
 (b) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry
out the purposes or intent of your Award. 
 (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had
an opportunity to obtain the advice of counsel prior to executing and accepting your Award, and fully understand all provisions of your Award. 
 13. GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the Plan shall
control. 
 14. SEVERABILITY. If all or any part of this Restricted Stock Unit Agreement or the Plan is declared by any
court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Restricted Stock Unit Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Restricted
Stock Unit Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while
remaining lawful and valid. 
 5 

 15. EFFECT ON OTHER EMPLOYEE
BENEFIT PLANS. The value of the Award subject to this Restricted Stock Unit Agreement shall not be included as compensation, earnings, salaries, or other similar terms used when calculating the Employee’s
benefits under any employee benefit plan sponsored by the Company or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any
Affiliate’s employee benefit plans. 
 16. AMENDMENT. This Restricted Stock Unit Agreement may not be
modified, amended or terminated except by an instrument in writing, signed by you and by a duly authorized representative of the Company. Notwithstanding the foregoing, this Restricted Stock Unit Agreement may be amended solely by the Board by a
writing which specifically states that it is amending this Restricted Stock Unit Agreement, so long as a copy of such amendment is delivered to you, and provided that no such amendment adversely affecting your rights hereunder may be made without
your written consent. Without limiting the foregoing, the Board reserves the right to change, by written notice to you, the provisions of this Restricted Stock Unit Agreement in any way it may deem necessary or advisable to carry out the purpose of
the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, provided that any such change shall be applicable only to rights relating to that portion of the Award which is then
subject to restrictions as provided herein. 
 6Note Deed, dated as of October 22, 2008

			
		 	Exhibit 10.1

 Note Deed 
 Date 
 Parties 
  

	 	1.	QBE Insurance Group Limited of Level 2, 82 Pitt Street, Sydney, NSW, 2000, Australia (the Note Issuer). 

  

	 	2.	PMI Mortgage Insurance Co. of 3003 Oak Road, Walnut Creek, CA 94597, United States (the Noteholder). 

 Recitals 
  

	 	A	The Note Issuer, QBE Holdings (AAP) Pty Limited (the Purchaser) and the Noteholder are parties to a Share Sale Agreement dated 14 August 2008, pursuant to which
the Purchaser has agreed to purchase all of the shares in PMI Mortgage Insurance Australia (Holdings) Pty Limited ABN 98 087 483 958 (the Share Sale Agreement). 

  

	 	B	Pursuant to the Share Sale Agreement, the Note Issuer agrees to issue the Note (as defined below) to the Noteholder in relation to that part of the purchase price payable by the
Purchaser under the Share Sale Agreement, on the following terms and conditions. 

 It is agreed as follows. 
  

	1.	Definitions and Interpretation 

  

	1.1	Definitions 

 The following definitions apply unless
the context requires otherwise: 
 Business Day means any day other than Saturday, Sunday or any other day on which banks in the
city of New York, USA or Sydney, Australia are required to close. 
 Governmental Entity means any government or representative
of a government or any governmental, semi-governmental, administrative, fiscal, regulatory or judicial body, department, commission, authority, agency, instrumentality, board or tribunal, whether federal, state, territorial or local and whether
Australian or foreign. It includes the Australian Securities and Investments Commission, the Australian Competition and Consumer Commission, the Australian Prudential Regulation Authority and the Australian Securities Exchange (and any other
securities exchange). 
 HK Note means the note deed issued pursuant to and in accordance with the HK Sale Agreement between the
Note Issuer and The PMI Group, Inc. 
 HK Sale Agreement means the share sale deed dated on or around 29 August 2008
between The PMI Group, Inc., QBE Holdings (AAP) Pty Limited and QBE Insurance Group Limited in relation to the sale of the shares in PMI Mortgage Insurance Asia Limited. 

 Note Deed 
  
 Insolvency Event in relation to a party, means any of the following: 
  

	 	(a)	a petition is presented, or a meeting is convened for the purpose of considering a resolution or other steps are taken by any person with a view to the appointment of an
administrator (whether out of court or otherwise) against or for the winding up of the other party or an administration order or a winding up order is made against or a provisional liquidator appointed with respect to the other party;

  

	 	(b)	an encumbrancer takes possession of, or a trustee or administrative receiver or similar officer is appointed in respect of, all or any part of the business or assets of the other
party, or distress or any form of execution is levied or enforced upon or sued out against any of those assets and is not discharged within seven days of being levied, enforced or sued out; 

  

	 	(c)	the other party is unable to pay its debts as they fall due or the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective
liabilities, or it suspends or threatens to suspend making payments with respect to all or any class of its debts; 

  

	 	(d)	the other party proposes or makes any composition or arrangement or composition with, or any assignment for the benefit of, its creditors; 

  

	 	(e)	anything analogous to any of the events described in paragraphs (a) – (d), inclusive, occurs under the laws of any applicable jurisdiction including insurance laws; or

  

	 	(f)	the other party ceases to carry on the whole or any material part of its business and that cessation, in the reasonable opinion of the first party, would be reasonably likely to
affect adversely the other party’s ability to observe and perform properly and punctually any of its obligations under this Deed. 

 Interest Period means: 
  

	 	(a)	in relation to each such period other than the last, the 6 month period commencing on the date of this Deed and each 6 month period thereafter; 

  

	 	(b)	in relation to the last such period, the period commencing on the first day of such period and ending on the Repayment Date. 

 Interest Rate means 3.7875%, being 3 month US LIBOR plus 1% per annum as at 1 July 2008. 
 Issue Date means the date of this Deed. 
 Note means the debt obligation of the Note Issuer representing the right of the Noteholder to receive the Principal under the terms and conditions of, and as evidenced by, this Deed. 
 Principal means the amount specified in clause 2, as adjusted in accordance with clauses 5.1 and 7. 
 Repayment Date means: 
  

	 	(a)	the date elected by the Note Issuer for repayment of the Principal under clause 6.2; and 

  

	 	(b)	the date on which the Principal must be repaid under clause 12; and 

  

	 	(c)	the expiry of the Term. 

 Tax includes any
tax, levy, impost, deduction, charge, rate, duty, GST or withholding which is levied or imposed by the Commonwealth of Australia or any political subdivision or taxing authority in it, and any related interest, penalty, charge, fee or other amount.

 Term has the meaning given to that term in clause 3. 
  

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 Note Deed 
  

	1.2	Interpretation 

 Headings are for convenience only
and do not affect interpretation. The following rules apply unless the context requires otherwise. 
  

	 	(a)	The singular includes the plural and conversely. 

  

	 	(b)	A gender includes all genders. 

  

	 	(c)	If a word or phrase is defined, its other grammatical forms have a corresponding meaning. 

  

	 	(d)	A reference to a person, corporation, trust, partnership, unincorporated body or other entity includes any of them. 

  

	 	(e)	A reference to a clause or schedule is a reference to a clause of, or a schedule to, this Deed. 

  

	 	(f)	A reference to an agreement or document (including a reference to this Deed) is to the agreement or document as amended, varied, supplemented, novated or replaced, except to the
extent prohibited by this Deed or that other agreement or document. 

  

	 	(g)	A reference to a party to this Deed or another agreement or document includes the party’s successors and permitted substitutes and permitted assigns (and, where applicable, the
party’s legal personal representatives). 

  

	 	(h)	A reference to legislation or to a provision of legislation includes a modification or re-enactment of it, a legislative provision substituted for it and a regulation or statutory
instrument issued under it. 

  

	 	(i)	A reference to dollars or $ or US$ is to United States currency. 

  

	 	(j)	A reference to conduct includes an omission, statement or undertaking, whether or not in writing. 

  

	 	(k)	Mentioning anything after includes, including, for example, or similar expression does not limit what else might be included. 

  

	2.	Creation of Note 

 By this Deed, the Note Issuer
creates the Note on the date of this Deed in favour of the Noteholder with an initial principal amount outstanding on the date of this Deed of US$186,505,850. The principal outstanding and interest payable under the Note may be adjusted in
accordance with the terms and conditions of this Deed and the Share Sale Agreement. 
  

	3.	Term 

 The Note will continue on the following terms
during the period until its redemption in full on 30 September 2011 (the Term), subject to the terms and conditions of this Deed. 
  

	4.	Purpose 

 The purpose of the Note is to satisfy the
relevant part of the purchase price payable by the Purchaser under the Share Sale Agreement. 
  

 Page 3 

 Note Deed 
  

	5.	Interest 

  

	5.1	Calculation of Interest 

  

	 	(a)	The Note Issuer shall pay interest on the Principal at the Interest Rate calculated in accordance with clause 5.1(b). 

  

	 	(b)	Interest shall be calculated on the Repayment Date on the daily Principal balance outstanding on the basis of the actual number of days elapsed in each Interest Period and a year of
360 days (including the first day of the Interest Period but excluding the last). 

  

	 	(c)	Interest, which is payable on the Repayment Date, will be calculated on the basis of each Interest Period, then, for the purpose of the calculation, added to, and so form part of
the Principal at the end of each Interest Period (on a compounding basis). 

  

	5.2	Overdue Payments 

 Interest on overdue amounts shall
accrue from the due date up to but excluding the date of actual payment, before and (as a separate and independent obligation) after judgment at the Interest Rate above plus 1% per annum unless otherwise agreed between the parties. The basis of
calculation of interest as set out in clause 5.1 will also apply to any calculation under this clause. 
  

	6.	Payment Obligations 

  

	6.1	Repayment at end of Term 

 Subject to clause 6.2 and
clause 12, the Note Issuer must repay the Principal (including Interest accrued) on the Repayment Date. 
  

	6.2	Voluntary prepayment 

 The Note Issuer may only
prepay all or some of the Principal with prior written notice to the Noteholder. 
  

	6.3	Method of payment 

 The Note Issuer must make all
payments to the account specified in writing by the Noteholder. Payments must be in cleared funds and free of any set-off or deduction, except for taxes where required by law or adjustment to Principal and Interest in accordance with clause 7 of
this Deed. 
  

	7.	Adjustments to Principal and Interest 

  

	 	(a)	The parties agree that: 

  

	 	(i)	to the extent there are losses which exceed the Performance Metric as defined in the Share Sale Agreement, then the Principal and Interest will be reduced to the extent and in
accordance with the mechanism provided for in Schedule 6 of the Share Sale Agreement; 

  

	 	(ii)	subject to completion of the transaction under the HK Sale Agreement in accordance with and subject to its terms (including without limitation the issuing of the HK Note), and to
the extent that there is an Australian Note Shortfall as defined in the Share Sale Agreement, then the Principal and Interest will be reduced to the extent and in accordance with the mechanism provided for in Schedule 11 of the Share Sale Agreement;
and 

  

 Page 4 

 Note Deed 
  

	 	(iii)	to the extent the Noteholder either agrees or is required to satisfy any claims for any breach of Warranties under the Share Sale Agreement, then the Principal and Interest will be
reduced to the extent and in accordance with the mechanism provided for in clauses 16.1(b) and 16.16 of the Share Sale Agreement. 

  

	 	(b)	The Noteholder acknowledges that in acting under clause 6(b) of the Share Sale Agreement, the Noteholder will bring the substance of this clause 7 to the attention of potential
investors. 

  

	8.	Taxation 

  

	8.1	Payments made free and clear 

 Payments in respect
of the Note are subject in all cases to applicable provisions of fiscal and other laws and regulations. All payments under the Note must be made free and clear of, and without deduction for, or by reference to, any present or future taxes of any
Governmental Entity of any jurisdiction or any political subdivision or taxing authority in it unless required by law. 
  

	8.2	Additional payments 

 If the Note Issuer is obliged
to make a deduction in respect of Tax from any payment (including the capitalisation of interest under clause 5.1(c)): 
  

	 	(a)	it shall promptly pay the amount deducted to the appropriate Governmental Entity; and 

  

	 	(b)	within 30 days of the end of the month in which the deduction is made, it shall deliver to the Noteholder, for collection, official receipts or other evidence of payment of that
amount. 

  

	9.	Representations and Warranties 

 Each party makes
the following representations and warranties to the other party as at the date of this Deed as follows: 
  

	 	(a)	(Incorporation) It is duly incorporated and validly existing under the laws of its place of incorporation, with full power and authority to own its properties and to conduct
its business as currently conducted. 

  

	 	(b)	(Power of authority) It has the power and authority to execute and exchange this Deed and perform and observe all its terms. This Deed has been duly executed by it and is a
legal, valid and binding Deed of it enforceable against it. 

  

	 	(c)	(Solvency) No step has been taken in relation to it to wind it up, appoint a controller or administrator, seize or take possession of any of its assets or make an
arrangement, compromise or composition with any of its creditors. It is able to pay all its debts as and when they become due and payable. 

  

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 Note Deed 
  

	10.	Notices 

 Unless otherwise agreed between the
parties, any notice, demand, consent or other communication (a Notice) given or made under this Deed: 
  

	 	(a)	must be in writing and signed by a person duly authorised by the sender; 

  

	 	(b)	must either be delivered to the intended recipient by prepaid post (if posted to an address in another country, by registered airmail) or by hand or fax to the address or fax number
below or the address or fax number last notified by the intended recipient to the sender: 

  

			
	 (i)     to Noteholder:
	  	 3003 Oak Road
 Walnut Creek, CA 94597
 United States
  
 Attention: General Counsel
  
 Fax No: +1-925-658-6175

		
	 (ii)    to the Note Issuer:
	  	 Level 2, 82 Pitt Street
 Sydney NSW 2000
 Australia
  
 Attention: Company Secretary
  
 Fax No: +61 2 9231 6104

  

	 	(c)	will be taken to be duly given or made: 

  

	 	(i)	in the case of delivery in person, when delivered; 

  

	 	(ii)	in the case of delivery by post two business days after the date of posting (if posted to an address in the same country) or seven business days after the date of posting (if posted
to an address in another country); and 

  

	 	(iii)	in the case of fax, on receipt by the sender of a transmission control report from the despatching machine showing the relevant number of pages and the correct destination fax
machine number or name of recipient and indicating that the transmission has been made without error, 

 but if the result is
that a Notice would be taken to be given or made on a day which is not a business day in the place to which the Notice is sent or is later than 4pm (local time) it will be taken to have been duly given or made at the commencement of business on the
next business day in that place. 
  

	11.	Conditions 

 The Note is being issued on the
condition that the liability of the Note Issuer under this Deed ranks and will rank at least equally and ratably (pari passu) in point and security with all its other respective unsecured and unsubordinated liabilities (both actual and contingent)
other than liabilities mandatorily preferred by law. 
  

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 Note Deed 
  

	12.	Events of Default 

 The Note may be cancelled at any
time by the Noteholder if: 
  

	 	(a)	the Note Issuer fails to pay any amount when due under this Deed and that amount remains unpaid for a period of five Business Days from the date of notice of that non-payment by the
Noteholder to the Note Issuer; 

  

	 	(b)	the Note Issuer fails duly to perform any of its other obligations under this Deed within 20 Business Days of the Noteholder notifying the Note Issuer of such failure or is
otherwise in breach of any representation or warranty which it has given under this Deed; 

  

	 	(c)	the Note Issuer ceases to be a member or comprise members of the QBE Group; or 

  

	 	(d)	an Insolvency Event occurs in respect of the Note Issuer, 

 whereupon, all monies owing under this Deed shall be deemed to be due and payable and the Note Issuer shall immediately repay all monies owing to the Noteholder under the Note. 
  

	13.	Entire Agreement 

 This Deed and the Share Sale
Agreement contain the entire agreement of the parties with respect to the Note. They set out the only conduct relied on by the parties and supersede all earlier conduct by the parties with respect to the Note. 
  

	14.	Amendment 

 This Deed may be amended only by another
Deed executed by all parties. 
  

	15.	Assignment 

  

	 	(a)	The Note Issuer may only assign or transfer any of its rights or obligations under this Deed with the prior written consent of the Noteholder. 

  

	 	(b)	The Noteholder may transfer, assign, novate, sub-participate or otherwise deal with all or any of its rights or obligations under this Deed for any reason at any time.

  

	16.	Set-off 

  

	 	(a)	If the Note Issuer is in default of its obligations under this Deed, the Note Issuer authorises the Noteholder to apply any amounts payable by the Noteholder to the Note Issuer in
or towards satisfaction of the amount (including Principal) payable by the Note Issuer to the Noteholder. 

  

	 	(b)	If more than one of the circumstances contemplated by clause 7 of this Deed occurs, at the Note Issuer’s option, it may choose to apply the adjustment under clause 7 in full or
in part, first under either clause 7(a)(i) or 7(a)(ii) and secondly under clause 7(a)(iii). 

  

 Page 7 

 Note Deed 
  

	17.	Further actions 

 Each party shall execute and
deliver such certificates and other documents and take such other actions as may reasonably be required pursuant to this Deed or as requested by the other party in order to carry out the provisions of this Deed. 
  

	18.	Counterparts 

 This Deed may be executed in any
number of counterparts. All counterparts taken together will be taken to constitute one Deed. 
  

	19.	Confidentiality 

  

	 	(a)	Subject to paragraph (b) below, each party must keep the terms of this Deed confidential. 

  

	 	(b)	A party may make any disclosures in relation to this Deed as it thinks necessary to: 

  

	 	(i)	its professional advisers, insurers, bankers, financial advisers and financiers, if those persons undertake to keep information disclosed confidential; 

  

	 	(ii)	comply with any applicable law or requirement of any Governmental Entity; or 

  

	 	(iii)	any of its directors or employees to whom it is necessary to disclose the information if that person undertakes to keep the information confidential. 

  

	20.	Governing Law 

 This Deed is governed by the laws of
New South Wales, Australia. The parties submit to the non-exclusive jurisdiction of courts exercising jurisdiction there. 
  

 Page 8 

 Note Deed 
  
 Executed and delivered as a Deed in 
 NOTE ISSUER 

 

					
	Executed as a deed in accordance with section 127 of the Corporations Act 2001 by QBE Insurance Group Limited:	 		 	
			
	/s/ Frank M. O’Halloran	 		 	/s/ Duncan Ramsay
	Director Signature	 		 	Director/Secretary Signature
			
	Frank M. O’Halloran	 		 	Duncan Ramsay
	Print Name	 		 	Print Name

 NOTEHOLDER 
  

					
	Executed as a deed by PMI Mortgage Insurance Co.:	 		 	
			
	/s/ L. Stephen Smith	 		 	/s/ Donald P. Lofe, Jr.
	Director Signature	 		 	Director/Secretary Signature
			
	L. Stephen Smith	 		 	Donald P. Lofe, Jr.
	Print Name	 		 	Print Name

  

 Page 9

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