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                                  EXHIBIT 10.2

                            INDEMNIFICATION AGREEMENT
                  TAKEOUTMUSIC.COM HOLDINGS CORP. (WASHINGTON)

     AGREEMENT, effective as of April ___, 2000 between takeoutmusic.com
Holdings Corp., a Washington corporation (the "Company"), and _______________
(the "Indemnitee").

     WHEREAS, it is essential to the Company to retain and attract as directors
and officers the most capable persons available; and

     WHEREAS, Indemnitee is a director or officer of the Company; and

     WHEREAS, both the Company and Indemnitee recognize the increased risk of
litigation and other claims being asserted against directors and officers of
public companies in today's environment; and

     WHEREAS, the By-Laws of the Company provide: "The corporation shall
indemnify and hold harmless any person who is or was a director of this
corporation, and pay expenses in advance of final disposition of a proceeding,
to the full extent to which the corporation is empowered." In addition, "[t]he
corporation may, by action of its Board of Directors from time to time,
indemnify and hold harmless any person who is or was an officer, employee or
agent of the corporation, and pay expenses in advance of final disposition of a
proceeding, to the full extent to which the corporation is empowered, or to any
lesser extent which the Board of Directors may determine."

     WHEREAS, this Agreement satisfies the provisions of RCW 23B.08.560 of the
Washington Business Corporation Act (the "BCA"); and

     WHEREAS, in recognition of the fact that the Indemnitee continues to serve
as a director or officer of the Company in part in reliance on the aforesaid
By-Laws and Indemnitee's need for substantial protection against personal
liability in order to enhance Indemnitee's continued service to the Company in
an effective manner, and in part to provide Indemnitee with specific contractual
assurance that the protection promised by such By-Laws will be available to
Indemnitee (regardless of, among other things, any amendment to or revocation of
such By-Laws or any change in the composition of the Company's Board of
Directors or any acquisition transaction relating to the Company), and due to
the potential inadequacy of the Company's directors' and officers' liability
insurance coverage, the Company wishes to provide in this Agreement for the
indemnification of, and the advancing of expenses to, Indemnitee to the fullest
extent (whether partial or complete) permitted by law and as set forth in this
Agreement, and, to the extent insurance is maintained, for the continued
coverage of Indemnitee under the Company's directors' and officers' liability
insurance policies;

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     NOW, THEREFORE, in consideration of the premises and of Indemnitee
continuing to serve the Company directly or, at its request, with another
enterprise, and intending to be legally bound hereby, the parties hereto agree
as follows:

1.   Certain Definitions.

     (a)  Approved Law Firm: shall mean any law firm (i) located in New York
          City and (ii) rated "av" by Martindale-Hubbell Law Directory.

     (b)  Board of Directors: shall mean the Board of Directors of the Company.

     (c)  Change in Control: shall be deemed to have occurred if (i) any
          "person" (as such term is used in Sections 13(d) and 14(d) of the
          Securities Exchange Act of 1934, as amended), other than any
          stockholder (and/or affiliate of such stockholder) on the date of this
          Agreement or a trustee or other fiduciary holding securities under an
          employee benefit plan of the Company in substantially the same
          proportions as their ownership of stock of the Company, is or becomes
          the "beneficial owner" (as defined in Rule 13d-3 under said Act),
          directly or indirectly of securities of the Company representing 15
          percent or more of the total voting power represented by the Company's
          then outstanding Voting Securities (such person being hereinafter
          referred to as an "Acquiring Person"), or (ii) during any
          24-consecutive-month period, individuals who at the beginning of such
          period constitute the Board of Directors of the Company and any new
          director whose election by the Board of Directors or nomination for
          election by the Company's shareholders was approved by a vote of at
          least two-thirds (2/3) of the directors then still in office who
          either were directors at the beginning of the period or whose election
          or nomination for election was previously so approved, cease for any
          reason to constitute a majority thereof, or (iii) the shareholders of
          the Company approve a merger or consolidation of the Company with any
          other corporation, other than a merger or consolidation which would
          result in the Voting Securities of the Company outstanding immediately
          prior thereto continuing to represent (either by remaining outstanding
          or by being converted into Voting Securities of the surviving entry)
          at least 80 percent of the total voting power represented by the
          Voting Securities of the Company or such surviving entity outstanding
          immediately after such merger or consolidation, or (iv) the
          shareholders of the Company approve a plan of complete liquidation of
          the Company or an agreement for the sale or disposition by the Company
          of all or substantially all the Company's assets.

     (d)  Claim: shall mean any threatened, pending or completed action, suit or
          proceeding, or any inquiry or investigation, whether conducted by the
          Company or any other party, that Indemnitee in good faith believes
          might lead to the institution of any such action, suit or proceeding,
          whether civil, criminal, administrative, investigative or other.

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     (e)  Expenses: shall include attorneys' fees and all other costs, expenses
          and obligations paid or incurred in connection with investigating,
          defending, being a witness in or participating in (including on
          appeal), or preparing to defend, be a witness in or participate in,
          any Claim relating to any Indemnifiable Event, together with interest,
          computed at the Company's average cost of funds for short-term
          borrowings, accrued from the date of incurrence of such expense to the
          date Indemnitee receives reimbursement therefor.

     (f)  Indemnifiable Event: shall mean any event or occurrence related to the
          fact that Indemnitee is or was a director, officer, employee, agent or
          fiduciary of the Company, or is or was serving at the request of the
          Company as a director, officer, employee, trustee, agent or fiduciary
          of another corporation of any type or kind, domestic or foreign,
          partnership, joint venture, trust, employee benefit plan or other
          enterprise, or by reason of anything done or not done by Indemnitee in
          such capacity. Without limitation of any indemnification provided
          hereunder, an Indemnitee serving (i) another corporation, partnership,
          joint venture or trust of which 10 percent or more of the voting power
          or residual economic interest is held, directly or indirectly, by the
          Company, or (ii) any employee benefit plan of the Company or any
          entity referred to in clause (i), in any capacity shall be deemed to
          be doing so at the request of the Company.

     (g)  Reviewing Party: shall be (i) the Board of Directors acting by quorum
          consisting of directors who are not parties to the particular Claim
          with respect to which Indemnitee is seeking indemnification, or (ii),
          if such a quorum is not obtainable or, even if obtainable, if a quorum
          of disinterested directors so directs, (A) the Board of Directors upon
          the opinion in writing of independent legal counsel that
          indemnification is proper in the circumstances because the applicable
          standard of conduct set forth in Section 2 of this Agreement and in
          RCW 23B.08.510 of the BCA has been met by the Indemnitee or (B) the
          shareholders upon a finding that the Indemnitee has met the applicable
          standard of conduct referred to in clause (ii)(A) of this definition.

     (h)  Voting Securities: shall mean any securities of the Company which vote
          generally in the election of directors.

2.   Basic Indemnification Arrangement. If Indemnitee was, is or becomes at any
     time a party to, or witness or other participant in, or is threatened to be
     made a party to, or witness or other participant in, a Claim by reason of
     (or arising in part out of) an Indemnifiable Event, the Company shall
     indemnify Indemnitee to the fullest extent permitted by law as soon as
     practicable but in any event no later than 30 days after written demand is
     presented to the Company, against any and all Expenses, judgments, fines
     (including excise taxes assessed on an Indemnitee with respect to an
     employee benefit plan), penalties and amounts paid in settlement (including
     all interest, assessments and other charges paid or payable in connection
     with, or in respect of, such Expenses, judgments, fines, penalties or
     amounts paid in settlement) of such Claim. If so requested by Indemnitee,
     the Company shall advance (within two business days of such request)

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     any and all Expenses to Indemnitee (an "Expense Advance"), in accordance
     with the provisions of RCW 23B.08.530 of the BCA, upon the written
     affirmation of the Indemnitee's good faith belief that he has acted in
     conformance with the standard of conduct set forth in this Section 2 and in
     RCW 23B.08.510 of the BCA. The Indemnitee shall further furnish and execute
     a written undertaking, which states that he will repay the Expense Advance
     if it is ultimately determined that the Indemnitee did not meet the
     applicable standard of conduct. Notwithstanding anything in this Agreement
     to the contrary, (i) Indemnitee shall not be entitled to indemnification
     pursuant to this Agreement if a judgment or other final adjudication
     adverse to the Indemnitee establishes that Indemnitee's acts were committed
     in bad faith or were the result of active and deliberate dishonesty and, in
     either case, were material to the cause of action so adjudicated, or that
     Indemnitee personally gained in fact a financial profit or other advantage
     to which Indemnitee was not legally entitled and (ii) prior to a Change in
     Control Indemnitee shall not be entitled to indemnification pursuant to
     this Agreement in connection with any Claim initiated by Indemnitee against
     the Company or any director or officer of the Company unless the Company
     has joined in or consented to the initiation of such Claim.

3.   Payment. Notwithstanding the provisions of Section 2, the obligations of
     the Company under Section 2 (which shall in no event be deemed to preclude
     any right to indemnification to which Indemnitee may be entitled under RCW
     23B.08.520 of the BCA) shall be subject to the condition that the Reviewing
     Party shall have authorized such indemnification in the specific case by
     having determined that Indemnitee is permitted to be indemnified under the
     applicable standard of conduct set forth in Section 2 and applicable law.
     The Company shall promptly call a meeting of the Board of Directors with
     respect to a Claim and agrees to use its best efforts to facilitate a
     prompt determination by the Reviewing Party with respect to the Claim.
     Indemnitee shall be afforded the opportunity to make submissions to the
     Reviewing Party with respect to the Claim. The obligation of the Company to
     make an Expense Advance pursuant to Section 2 shall be subject to the
     condition that, if, when and to the extent that the Reviewing Party
     determines that Indemnitee would not be permitted to be so indemnified
     under Section 2 and applicable law, the Company shall be entitled to be
     reimbursed by Indemnitee (who hereby agrees and undertakes to reimburse the
     Company to the full extent required by RCW 23B.08.530(1)(b) of the BCA if
     it is determined that the Indemnitee did not meet the required standard of
     conduct) for all such amounts theretofore paid; provided, however, that if
     Indemnitee has commenced legal proceedings in a court of competent
     jurisdiction to secure a determination that Indemnitee should be
     indemnified under applicable law, any determination made by the Reviewing
     Party that Indemnitee would not be permitted to be indemnified under
     applicable law shall not be binding and Indemnitee shall not be required to
     reimburse the Company for any Expense Advance until a final judicial
     determination is made with respect thereto (as to which all rights of
     appeal therefrom have been exhausted or lapsed). If there has been no
     determination by the Reviewing Party or if the Reviewing Party determines
     that Indemnitee substantively would not be permitted to be indemnified in
     whole or in part under applicable law, Indemnitee shall have the right to
     commence litigation in any court in the State of New York having subject
     matter jurisdiction thereof and in which venue is proper seeking an initial

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     determination by the court or challenging any such determination by the
     Reviewing Party or any aspect thereof, and the Company hereby consents to
     service of process and to appear in any such proceeding. Any determination
     by the Reviewing Party otherwise shall be conclusive and binding on the
     Company and Indemnitee.

4.   Change in Control. If there is a Change in Control of the Company (other
     than a Change in Control which has been approved by a majority of the Board
     of Directors who were directors immediately prior to such Change in
     Control) then (i) all determinations by the Company pursuant to the first
     sentence of Section 3 hereof and RCW 23B.08.550(2) of the BCA shall be made
     pursuant to subparagraphs (a), (b) or (c) of such RCW 23B.08.550(2) and
     (ii) with respect to all matters thereafter arising concerning the rights
     of Indemnitee to indemnity payments and Expense Advances under this
     Agreement or any other agreement or By-law of the Company now or
     hereinafter in effect relating to Claims for Indemnifiable Events
     (including, but not limited to, any opinion to be rendered pursuant to
     subparagraph (2)(c) of RCW 23B.08.550 of the BCA) the Company (including
     the Board of Directors) shall seek legal advice from (and only from)
     special, independent counsel selected by Indemnitee and approved by the
     Company (which approval shall not be unreasonably withheld), and who has
     not otherwise performed services for the Company (or any subsidiary of the
     Company) or the Acquiring Person (or any affiliate or associate of such
     Acquiring Person) within the last five years (other than in connection with
     such matters) or Indemnitee. Unless Indemnitee has theretofore selected
     counsel pursuant to this Section 4 and such counsel has been approved by
     the Company, any Approved Law Firm shall be deemed to satisfy the
     requirements set forth above. Such counsel, among other things, shall
     render its written opinion to the Company, the Board of Directors and
     Indemnitee as to whether and to what extent the Indemnitee would be
     permitted to be indemnified under applicable law. The Company agrees to pay
     the reasonable fees of the special, independent counsel referred to above
     and to fully indemnify such counsel against any and all expenses (including
     attorneys' fees), claims, liabilities and damages arising out of or
     relating to this Agreement or its engagement pursuant hereto. As used in
     this Section 4, the terms "affiliate" and "associate" shall have the
     respective meanings ascribed to such terms in Rule 12b-2 of the General
     Rules and Regulations under the Securities Exchange Act of 1934, as amended
     and in effect on the date of this Agreement.

5.   Indemnification for Additional Expenses. The Company shall indemnify
     Indemnitee against any and all expenses (including attorneys' fees) and, if
     requested by Indemnitee, shall (within two business days of such request)
     advance such expenses to Indemnitee, which are incurred by Indemnitee in
     connection with any claim asserted or action brought by Indemnitee for (i)
     indemnification or advance payment of Expenses by the Company under this
     Agreement or any other agreement or By-law of the Company now or hereafter
     in effect relating to Claims for Indemnifiable Events and/or (ii) recovery
     under any directors' and officers' liability insurance policies maintained
     by the Company, regardless of whether Indemnitee ultimately is determined
     to be entitled to such indemnification, advance expenses payment or
     insurance recovery, as the case may be.

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6.   Partial Indemnity, Etc. If Indemnitee is entitled under any provision of
     this Agreement to indemnification by the Company for some or a portion of
     the Expenses, judgments, fines, penalties and amounts paid in settlement of
     a Claim but not, however, for all of the total amount thereof, the Company
     shall nevertheless indemnify Indemnitee for the portion thereof to which
     Indemnitee is entitled. Moreover, notwithstanding any other provision of
     this Agreement, to the extent that Indemnitee has been successful on the
     merits or otherwise in defense of any or all Claims relating in whole or in
     part to an Indemnifiable Event or in defense of any issue or matter
     therein, including dismissal without prejudice, Indemnitee shall be
     indemnified, to the extent permitted by law, against all Expenses incurred
     in connection with such Indemnifiable Event. In connection with any
     determination by the Reviewing Party or otherwise as to whether Indemnitee
     is entitled to be indemnified hereunder, the burden of proof shall, to the
     extent permitted by law, be on the Company to establish that Indemnitee is
     not so entitled.

7.   No Presumption. For purposes of this Agreement, the termination of any
     claim, action, suit or proceeding, whether civil or criminal, by judgment,
     order, settlement (whether with or without court approval) or conviction,
     or upon a plea of nolo contendere or its equivalent, shall not create a
     presumption that Indemnitee did not meet any particular standard of conduct
     or have any particular belief or that a court has determined that
     indemnification is not permitted by applicable law.

8.   Nonexclusivity, Etc. The rights of the Indemnitee hereunder shall be in
     addition to any other rights Indemnitee may have under the By-laws of the
     Company, the BCA or otherwise. To the extent that a change in the BCA
     (whether by statue or judicial decision) permits greater indemnification by
     agreement than would be afforded currently under the By-laws of the Company
     and this Agreement, it is the intent of the parties hereto that Indemnitee
     shall enjoy by this Agreement the greater benefits so afforded by such
     change.

9.   Liability Insurance. To the extent the Company maintains an insurance
     policy or policies providing directors' and officers' liability insurance,
     Indemnitee shall be covered by such policy or policies, in accordance with
     its or their terms, to the maximum extent of the coverage available for any
     director or officer of the Company.

10.  Period of Limitations. No legal action shall be brought and no cause of
     action shall be asserted by or on behalf of the Company or any affiliate of
     the Company against Indemnitee, Indemnitee's spouse, heirs, executors or
     personal or legal representatives after the expiration of two years from
     the date of accrual of such cause of action, and any claim or cause of
     action of the Company or its affiliate shall be extinguished and deemed
     released unless asserted by the timely filing of a legal action within such
     two-year period; provided, however, that if any shorter period of
     limitations is otherwise applicable to any such cause of action, such
     shorter period shall govern.

11.  Amendments, Etc. No supplement, modification or amendment of this Agreement
     shall be binding unless executed in writing by both of the parties hereto.
     No waiver of any of the provisions of this Agreement shall be deemed or
     shall constitute a waiver of any other

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     provisions hereof (whether or not similar) nor shall such waiver constitute
     a continuing waiver.

12.  Subrogation. In the event of payment under this Agreement, the Company
     shall be subrogated to the extent of such payment to all of the rights of
     recovery of Indemnitee, who shall execute all papers required and shall do
     everything that may be necessary to secure such rights, including the
     execution of such documents necessary to enable the Company effectively to
     bring suit to enforce such rights.

13.  No Duplication of Payments. The Company shall not be liable under this
     Agreement to make any payment in connection with any claim made against
     Indemnitee to the extent Indemnitee has otherwise actually received payment
     (under any insurance policy, By-law or otherwise) of the amounts otherwise
     indemnifiable hereunder.

14.  Specific Performance. The parties recognize that if any provision of this
     Agreement is violated by the Company, Indemnitee may be without an adequate
     remedy at law. Accordingly, in the event of any such violation, the
     Indemnitee shall be entitled, if Indemnitee so elects, to institute
     proceedings, either at law or in equity, to obtain damages, to enforce
     specific performance, to enjoin such violation, or to obtain any relief or
     any combination of the foregoing as Indemnitee may elect to pursue.

15.  Binding Effect, Etc. This Agreement shall be binding upon, inure to the
     benefit of, and be enforceable by, the parties hereto and their respective
     successors (including any direct or indirect successor by purchase, merger,
     consolidation or otherwise to all or substantially all of the business
     and/or assets of the Company), assigns, spouses, heirs, and personal and
     legal representatives. This Agreement shall continue in effect regardless
     of whether Indemnitee continues to serve as an officer or director of the
     Company or of any other enterprise at the Company's request.

16.  Severability. The provisions of this Agreement shall be severable if any of
     the provisions hereof (including any provision within a single section,
     paragraph or sentence) are held by a court of competent jurisdiction to be
     invalid, void or otherwise unenforceable, and the remaining provisions
     shall remain enforceable to the fullest extent permitted by law.

17.  Governing Law. This Agreement shall be governed by, and be construed and
     enforced in accordance with, the laws of the State of New York applicable
     to contracts made and to be performed in such state without giving effect
     to the principles of conflicts of laws.

Executed this     day of                   .
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                        TAKEOUTMUSTIC.COM HOLDINGS CORP.

                            By:
                               ---------------------------------
                            Name:
                                 -------------------------------
                            Title:
                                  ------------------------------

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

                                       7EXECUTION COPY

                               AMENDMENT NO. 11

                          Dated as of November 26, 1999

                                       to

                                CREDIT AGREEMENT

                           Dated as of March 12, 1997

      PENNCORP  FINANCIAL GROUP,  INC., a Delaware  corporation (the "Company"),
the lenders  signatory to the Credit Agreement  referred to below (the "Banks"),
the Managing  Agents and the Co-Agents named therein (the "Agents") and THE BANK
OF NEW YORK, as administrative agent for the Banks (the "Administrative Agent"),
hereby agree as follows:

                                       I.

                                CREDIT AGREEMENT

     1. Credit Agreement.  (a) Reference is hereby made to the Credit Agreement,
dated as of March 12,  1997,  among the Company,  the Banks,  the Agents and the
Administrative  Agent (as amended,  modified or waived prior to the date hereof,
the "Credit Agreement").  Terms used in this Amendment No. 11 (this "Amendment")
that are defined in the Credit  Agreement and are not otherwise  defined  herein
are used herein with the meanings therein ascribed to them.

     (b) The Credit Agreement as amended by this Amendment is and shall continue
to be in full force and effect and is hereby in all respects confirmed, approved
and ratified.

     2. Amendments to the Credit Agreement.  Upon and after the Amendment No. 11
Effective  Date (as defined  below),  the Credit  Agreement  shall be amended as
follows:

     (a) Section 1.01 is hereby amended (i) to add, in alphabetical  order,  the
following new definitions:

     "Amendment  No. 11" shall mean  Amendment  No. 11, dated as of November __,
1999, to the Agreement.

     "Amendment No. 11 Effective  Date" shall have the meaning  ascribed to that
term in Amendment No. 11.

     "American Amicable Holdings  Corporation  Management  Contracts" shall mean
each of the  following:  (i)  Service  Agreement  dated  April 1,  1999  between
American Amicable Holdings  Corporation and Pennsylvania Life Insurance Company,
(ii) Service Agreement dated

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April  1,  1999  between  the  American   Amicable   Holdings   Corporation  and
American-Amicable Life Insurance Company of Texas, (iii) Service Agreement dated
April 1, 1999 between the American  Amicable  Holdings  Corporation  and Pioneer
American Life Insurance Company,  and (iv) Service Agreement dated April 1, 1999
between the American  Amicable  Holdings  Corporation and Pioneer  Security Life
Insurance Company.

     "American  Amicable  Holdings  Corporation  Operating  Expenses" shall mean
expenses incurred by American  Amicable Holdings  Corporation in the performance
of its obligations under the American Amicable Holdings  Corporation  Management
Contracts.

     "Executive  Director  Escrow  Amount" shall mean the $994,879 to be paid by
the  Company to fund the escrow  account  established  pursuant to ss.3.3 of the
Release and  Indemnity  Agreement  dated  December  24, 1998 among the  Company,
Pennsylvania  Life Insurance  Company,  PennCorp Life Insurance  Company and the
individual set forth on the signature pages thereto (the  "Executive  Director")
and attached  hereto as Exhibit A, as such  agreement may be amended or modified
from time to time after the Amendment No. 11 Effective Date,  provided that that
any such amendment or  modification  was, in the sound business  judgment of the
Company and its Board of Directors,  in the best  interests of the Company,  and
was consented to in writing by the Majority Banks.

     "KB  Investment"  shall  mean KB  Investment  L.L.C.,  a New  York  limited
liability company.

     "KB Management  Service  Contracts"  shall mean each of the following:  (i)
Amended and Restated  Investment  Agreement  dated  January 1, 1997,  between KB
Management L.L.C. and Southwestern Life Insurance  Company,  (ii) the Investment
Management  Agreements  dated January 1, 1998 between KB Management  L.L.C.  and
American-Amicable   Life  Insurance  Company  of  Texas,  (iii)  the  Investment
Management  Agreements  dated January 1, 1998 between KB Management  L.L.C.  and
Integon  Life  Insurance  Corporation  (now  known as  Security  Life and  Trust
Insurance Company),  (iv) the Investment  Management Agreements dated January 1,
1998  between KB  Management  L.L.C.  and Pacific  Life and  Accident  Insurance
Company, (v) the Investment  Management Agreements dated January 1, 1998 between
KB Management  L.L.C.  and Occidental Life Insurance  Company of North Carolina,
(vi) the  Investment  Management  Agreements  dated  January 1, 1998  between KB
Management  L.L.C.  and Pioneer  American  Insurance  Company,  (vii) Investment
Management  Agreement  dated  January 1, 1998 between KB Management  L.L.C.  and
Pioneer Security Life Insurance Company, (viii) Advisory and Management Services
Agreement  effective as of January 1, 1998 by and among KB Management L.L.C. and
American-Amicable  Life  Insurance  Company  of Texas,  Integon  Life  Insurance
Corporation  (now known as Security Life and Trust Insurance  Company),  Pacific
Life and Accident Insurance Company, Pioneer American Insurance Company, Pioneer
Security  Life  Insurance  Company,  Southwestern  Life  Insurance  Company  and
Occidental Life Insurance  Company,  and (ix) Employee  Benefit Cost Sharing and
Service  Agreement  effective as of September 1, 1998 by and among KB Management
L.L.C.,  Southwestern  Financial Services  Corporation,  American-Amicable  Life
Insurance  Company of Texas,  Marketing  One,  Inc.,  Occidental  Life Insurance
Company of North Carolina, PennCorp Financial Group, Inc. and PennCorp Financial
Services, Inc.

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     "KB Management  Operating  Expenses" shall mean operating expenses incurred
by KB Management  L.L.C.  in the  performance  of its  obligations  under the KB
Management Service Contracts.

     "Shareholder  Litigation Settlement Amount" shall mean the $1,500,000 to be
paid by the Company to settle In re PennCorp  Financial Group,  Inc.  Securities
Litigation,  Master File No. 98 Civ.  5998 (LAP) (the  "Shareholder  Litigation"
pursuant to the Memorandum of  Understanding  dated November 11, 1999, a copy of
which is attached as Exhibit B to Amendment  No. 11, as such form may be amended
or  modified  from  time to time or as such may be more  fully  documented  in a
settlement  agreement after the Amendment No. 11 Effective  Date,  provided that
that any such  amendment,  modification.  or  documentation  was,  in the  sound
business  judgment  of the  Company  and its  Board  of  Directors,  in the best
interests of the Company, and was consented to in writing by the Majority Banks.

     (ii) to amend the following existing definitions to read as follows:

     "Commitment" shall mean (i) the amount set opposite each Bank's name on the
signature pages of Amendment No. 11 under the caption "Reduced Commitment",  or,
in the case of a Bank that becomes a Bank pursuant to an assignment,  the amount
of the assignor's  Commitment  assigned to such Bank (in either case as the same
may be  terminated  or  reduced  at any time or from  time to time  pursuant  to
Section 2.04, canceled pursuant to Section 9 or increased or reduced at any time
or from time to time pursuant to  assignments  made in  accordance  with Section
11.06) or (ii) as the context may require,  the  obligation of each Bank to make
RC Loans in an aggregate unpaid principal amount not exceeding such amount.

     "Commitment Stepdown Date" shall mean the Amendment No. 11 Effective Date.

     "Operating  Bank  Account"  shall mean a Bank Account of an Operating  Bank
Account  Subsidiary that is listed on Amended  Schedule 8.29(a) to Amendment No.
11.

     "Permitted  Operating  Account  Withdrawal" shall mean a withdrawal from an
Operating Bank Account to make a payment listed or described on Amended Schedule
8.29(b) to Amendment No. 11, subject to any limitations there set forth.

     "Reduced  Commitment"  shall mean,  as applied to any Bank,  the amount set
forth  opposite such Bank's name under the caption  "Reduced  Commitment" on the
signature pages of Amendment No. 11.

     (b)  Section  2.04(b)(iv)  of the Credit  Agreement  shall be  amended  and
restated as follows:

            "on the Commitment Stepdown Date, the Commitments
            shall be reduced to the amounts set forth under the
            caption "Reduced Commitment," on the signature pages
            attached to Amendment No. 11 (the aggregate of the
            reduction totaling $2,000,000);"

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     (c) Section 8.19(b) shall be amended by

          (i)  changing  "(vi)" to "(viii)"  and by adding the  following  after
     subclause (v):

          ", (vi)  withdrawing  the  Shareholder  Litigation  Settlement  Amount
     provided that such payment shall not exceed $1,500,000 and provided further
     that, pursuant to this Section 8.19(b),  should the Company become entitled
     to and receive any portion of the Shareholder  Litigation Settlement Amount
     such amount shall be immediately deposited in the Collateral Account, (vii)
     withdrawing the Executive Director Escrow Amount provided that such payment
     shall not exceed $994,875,  and,  provided  further that,  pursuant to this
     Section  8.19(b),  should the  Company  become  entitled to and receive any
     portion of the  Executive  Director  Escrow  Amount  such  amount  shall be
     immediately deposited in the Collateral Account,"

          (ii) by adding the following sentence at the end thereof:

          "The fact that a  particular  current or future  expenditure  has been
     identified  to the  Administrative  Agent,  the  Banks  or  their  advisors
     pursuant to information  furnished by the Company under this Agreement does
     not mean that the Banks have approved of such expenditure or that funds may
     be withdrawn from the Collateral Account for such expenditure."

          (d) Section 8.29 shall be amended by

          (i) amending Section  8.29(b)(i)(C) by inserting "(1)" after "(C)" and
     by deleting  the "." at the end of that  Section and  replacing it with the
     following:

          "; and (2)  Operating  Bank  Account  Subsidiary  Indebtedness  may be
     repaid by the Company only to permit the Operating Bank Account  Subsidiary
     to which such Indebtedness is owed to fund Permitted Operating Bank Account
     Withdrawals,  and then only to the extent such  payments have not otherwise
     been funded, including a funding with funds that constitute Excluded Funds.
     Any withdrawal by the Company from the  Collateral  Account for the payment
     of  Operating  Bank  Account  Subsidiary  Indebtedness  shall  be  deemed a
     representation  and  warranty  by the  Company  made  at the  time  of such
     withdrawal  that such  withdrawal  is in  accordance  with the  immediately
     preceding sentence."

          (ii) amending Section 8.29(b)(ii)(A) to read as follows:

          "(A) Funds  determined  to be Excluded  Funds by the  Majority  Banks,
     pursuant to Section 8.29(b)(i)(D) hereof, are set forth on Amended Schedule
     8.29(b)(ii)(A).  Funds  referred  to in the  proviso to the  definition  of
     "Excluded  Funds"  shall  constitute  "Excluded  Funds",   whether  or  not
     specified in such Schedule.

                                       4
<PAGE>

                                       II.

                                     GENERAL

      1.    Representations and Warranties.

      In order to induce the Banks to execute and deliver this Amendment No. 11,
the Company hereby represents and warrants as follows:

      (a) The  Company  has  the  power,  and has  taken  all  necessary  action
(including any necessary stockholder action) to authorize,  to execute,  deliver
and perform in accordance with their  respective  terms,  this Amendment and the
Credit  Agreement.  This  Amendment  has been duly executed and delivered by the
duly  authorized  officers of the Company and is, as amended by this  Amendment,
the legal, valid and binding obligation of the Company enforceable in accordance
with its  terms,  except as  enforceability  may be  limited  by any  applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement  of  creditors'  rights  generally.  The  execution,   delivery  and
performance  in accordance  with their  respective  terms by the Company of this
Amendment  and the Credit  Agreement,  as amended by this  Amendment  do not and
(absent any change in any  Applicable  Law or applicable  Contract) will not (A)
require any Governmental  Approval (hereinafter defined) or any other consent or
approval,  including any consent or approval of the  stockholders of the Company
or of any Subsidiary,  to have been obtained,  or any Governmental  Registration
(hereinafter  defined) to have been made, other than Governmental  Approvals and
other  consents and  approvals  and  Governmental  Registrations  that have been
obtained or made, are final and not subject to review on appeal or to collateral
attack, are in full force and effect, or (B) violate, conflict with, result in a
breach of,  constitute a default under,  or result in or require the creation of
any Lien (other than the Security  Interests)  upon any assets of the Company or
any Subsidiary under (1) any Contract to which the Company, or any Subsidiary is
a party or by which the Company,  or any  Subsidiary or any of their  respective
properties  may  be  bound,   or  (2)  any  Applicable   Law.  As  used  herein,
"Governmental Approval" shall mean any authority, consent, approval, license (or
the like) or exemption  (or the like) of any  governmental  unit;  "Governmental
Registration"  shall  mean any  registration  or filing (or the like)  with,  or
report or notice (or the like) to, any governmental unit.

      (b) The  payment  of the  Executive  Director  Escrow  Amount  is the only
remaining  specific cash Liability of the Company in connection with the Release
and Indemnity Agreement that is attached hereto as Exhibit A.

      2.    Conditions to Effectiveness; Amendment No. 11 Effective Date.
This Amendment No. 11 shall be effective as of the date first written above,
but shall not become effective as of such date until the time (such time, the
"Amendment No. 11 Effective Date") as:

      (a)   this Amendment No. 11 has been executed and delivered by the
Company, each of the Banks and the Administrative Agent; and

      (b) all amounts payable  pursuant to Section 11.03 of the Credit Agreement
for which  invoices have been delivered to the Company on or prior to such date,
have been paid in full.

                                       5
<PAGE>

     3. Governing  Law. The rights and duties of the Company,  the Agent and the
Banks under this Amendment shall,  pursuant to New York General  Obligations Law
Section 5-1401, be governed by the law of the State of New York.

     4.   Counterparts.   This   Amendment  may  be  signed  in  any  number  of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto were upon the same instrument.

     5. Headings.  Section  headings in this  Amendment are included  herein for
convenience and reference only and shall not constitute a part of this Amendment
for any other purpose.

                                        6
<PAGE>

      IN WITNESS  WHEREOF,  the parties hereto have caused this Amendment No. 11
to be duly executed as of the day and year first above written.

                                      PENNCORP FINANCIAL GROUP, INC.

                                      By: /s/Scott D. Silverman
                                          -------------------------------------
                                          Name:   Scott D. Silverman
                                          Title:  Executive Vice President

                                      THE BANK OF NEW YORK, as  Administrative
                                      Agent,  Collateral Agent and as a Bank
                                      $17,233,333.38 Reduced Commitment

                                      By: /s/Peter W. Helt
                                          -------------------------------------
                                          Name:   Peter W. Helt
                                          Title:  Vice President

                                      THE CHASE MANHATTAN BANK, as a Managing
                                      Agent and as a Bank
                                      $15,399,999.99 Reduced Commitment

                                      By: /s/Elizabeth A. Kelley
                                          -------------------------------------
                                          Name:   Elizabeth A. Kelley
                                          Title:  Managing Director

                                      FIRST NATIONAL BANK OF CHICAGO, as a
                                      Managing Agent and as a Bank
                                      $15,399,999.99 Reduced Commitment

                                      By:
                                          -------------------------------------
                                          Name:
                                          Title:

                                      BANK OF AMERICA, N.A., formerly known as
                                      Nations Bank, N.A., as a Managing
                                      Agent and as a Bank
                                      $15,399,999.99 Reduced Commitment

                                      By: /s/William E. Livingstone IV
                                          -------------------------------------
                                          Name:   William E. Livingston IV
                                          Title:  Managing Director

                                      FLEET NATIONAL BANK, as a
                                      Co-Agent  and as a Bank
                                      $16,866,666.67 Reduced Commitment

                                      By: /s/Donald R. Nicholson
                                          -------------------------------------
                                          Name:   Donald R. Nicholson
                                          Title:  Senior Vice President

                                      MELLON BANK, N.A., as a Co-Agent
                                      and as a Bank
                                      $13,200,000.00 Reduced Commitment

                                      By: /s/Gary A. Saul
                                          -------------------------------------
                                          Name:   Gary A. Saul
                                          Title:  First Vice President

                                       BANK OF MONTREAL, as a Co-Agent
                                       and as a Bank
                                       $11,000,000.01 Reduced Commitment

                                       By: /s/Thomas E. McGraw
                                          -------------------------------------
                                          Name:   Thomas E. McGraw
                                          Title:  Director

                                      CIBC INC., as a Co-Agent and as a Bank
                                      $11,000,000.01 Reduced Commitment

                                      By: /s/Gerald Girardi
                                          -------------------------------------
                                          Name:   Gerald Girardi
                                          Title:  Execuitve Director
                                                  CIBC World Markets Corp,
                                                  As Agent

                                       7
<PAGE>

                                      DRESDNER BANK AG, NEW YORK AND
                                      GRAND CAYMAN BRANCHES, as a Co-Agent
                                      and as a Bank
                                      $11,000,000.01 Reduced Commitment

                                      By: /s/Lloyd C. Stevens
                                          -------------------------------------
                                          Name:   Lloyd C. Stevens
                                          Title:  Vice President

                                      By: /s/Anthony C. Valencourt
                                          -------------------------------------
                                          Name:   Anthony C. Valencourt
                                          Title:  Senior Vice President

                                      SUNTRUST BANK, CENTRAL FLORIDA NATIONAL
                                      ASSOCIATION
                                      $7,333,333.32 Reduced Commitment

                                      By: /s/T. Michael Logan
                                          -------------------------------------
                                          Name:   T. Michael Logan
                                          Title:  Managing Director

                                      FIRST UNION NATIONAL BANK
                                      $7,333,333.33 Reduced Commitment

                                      By: /s/Thomas L. Stitchberry
                                          -------------------------------------
                                          Name:   Thomas L. Stitchberry
                                          Title:  Senior Vice President

                                      BANK ONE TEXAS, NA
                                      $7,333,333.32 Reduced Commitment

                                      By:
                                          -------------------------------------
                                          Name:
                                          Title:

                                      BEAR STEARNS & CO., INC.
                                      $12,833,333.31 Reduced Commitment

                                      By: /s/Gregory A. Hanley
                                          -------------------------------------
                                          Name:   Gregory A. Hanley
                                          Title:  Senior Managing Director

                                      SG COWEN SECURITIES CORPORATION
                                      $1,833,333.34 Reduced Commitment

                                      By:
                                          -------------------------------------
                                          Name:
                                          Title:

                                       8
<PAGE>

                                      ING (U.S.) CAPITAL CORPORATION
                                      $1,833,333.33 Reduced Commitment

                                       By:
                                          -------------------------------------
                                          Name:
                                          Title:

                                       9
<PAGE>

<TABLE>
<CAPTION>

                                                      Amended Schedule 8.29(a)

                             OPERATING BANK ACCOUNTS

Operating Bank                Operating Bank
Account Subsidiary            Accounts               Depositary Bank
------------------            ---------------        ---------------
<S>                           <C>                    <C>
KB Management LLC             890-0324-708           Bank of New York,
                              (ZBA Disb)             NY, NY

                              890-0168-935           Bank of New York,
                              (DDA)                  NY, NY

                              1574898050 (DDA)       Bank One Texas,
                              (DDA)                  Dallas, Texas

KB Investment LLC             890-0169-060           Bank of New York,
                              (DDA)                  NY, NY

American Amicable Holdings    15606                  Provident Inst.,
Corp.                         (Money Market)         Wilmington, DE

                              890-0168-897           Bank of New York,
                              (DDA)                  NY, NY

Southwestern Financial        890-0169-192           Bank of New York,
Corporation                   (DDA)                  NY, NY

</TABLE>

                                       10
<PAGE>

<TABLE>
<CAPTION>

                                                      Amended Schedule 8.29(b)

                   PERMITTED OPERATING ACCOUNT WITHDRAWALS
           (Capitalized terms used in this Amended Schedule 8.29(b)
               that are not defined in the Credit Agreement are
                         defined on Annex A hereto.)

Operating Bank          Operating Bank
Account Subsidiary      Accounts               Payments Permitted to be Funded
------------------      ---------------        -------------------------------

<S>                     <C>                    <C>
KB Management LLC       890-0168-935           (DDA) KB Management
                                               Operating  Expenses,  to (BNY)
                                               the extent not otherwise Funded.

American-Amicable       890-0168-897           American-Amicable Holdings
Holdings Corporation    (DDA)                  Corporation Operating Expenses,
                        (BNY)                  to the extent not otherwise
                                               Funded.

                        15606                  Payments, to the extent not otherwise
                        (Money Market)         funded, required to pay dividends to
                        (Provident Inst.)      the Company, as described in the Weil
                                               Letter, provided, that such dividend
                                               is, in fact, paid on the date of such
                                               withdrawal.

Southwestern Financial    890-0169-192         Southwestern Financial Corporation
Corporation               (DDA)                Operating Expenses, to the extent not
                          (BNY)                otherwise Funded.

</TABLE>

                                       11
<PAGE>

<TABLE>
<CAPTION>

                                               Amended Schedule 8.29(b)(ii)(A)

                           SCHEDULE OF EXCLUDED FUNDS

          (Numbered Footnote references are to the attached Footnote
         Appendix. Such Footnote Appendix and the Footnotes there set
                forth are an integral part of this Schedule.)

Operating Bank          Operating Bank
Account Subsidiary      Accounts             Depositary Bank               Excluded Funds
------------------      --------             ---------------               --------------
<S>                     <C>                  <C>                           <C>
KB Management  LLC      890-0324-708         Bank of New York,  NY, NY          100%(1)
                        (ZBA Disb)

                        890-0168-935         Bank of New York, NY, NY           0%(3)
                        (DDA)

                        1574898050 (DDA)     Bank One Texas, Dallas,            100%(2)
                                             Texas

KB Investment LLC       890-0169-060         Bank of New York, NY, NY           0%(3)
                        (DDA)

American Amicable       15606                Provident Inst.,                   100%(4)
Holdings Corp.          (Money Market)       Wilmington, DE

                        890-0168-897         Bank of New York, NY, NY           0%(3)
                        (DDA)

Southwestern Financial  890-0169-192         Bank of New York, NY, NY           0%(1)
Corporation             (DDA)

</TABLE>

                                       12
<PAGE>

                                FOOTNOTE APPENDIX

                          TO SCHEDULE OF EXCLUDED FUNDS

1.    Balances in this account shall  constitute  Excluded Funds only if, to the
      extent, and so long as, deposits in this account are used for the purposes
      specified  in the letter  dated,  November  24, from Angela L.  Fontana to
      Charles Vejvoda (the "Weil Letter") attached hereto as Exhibit C.

2.    Balances  in this  account  shall  constitute  Excluded  Funds  until this
      account is closed,  provided  that this  account is closed  promptly  upon
      finalization of the necessary paperwork referenced in the Weil Letter, but
      in any event no later than  January  31,  2000,  or such later date as the
      Administrative Agent may agree to.

3.    Balances shall constitute Excluded Funds only to the extent they represent
      amounts  required for gross payroll and employee  benefits,  provided that
      such amounts are deposited in the applicable  payroll and benefit accounts
      on the day  received.  For this  purpose,  "gross"  payroll  shall include
      withholding taxes, and "employee  benefits" shall include medical,  dental
      and the like employee benefits.

4.    Balances in this account shall  constitute  Excluded Funds only if, and to
      the  extent,  and so long as  balances  in this  account  are  required to
      demonstrate  liquidity in an amount necessary to maintain the intercompany
      notes  referred  to in the Weil  Letter  as  admitted  assets  ("Liquidity
      Balances").

      Balances in excess of such amounts shall not  constitute  Excluded  Funds,
      but the Operating Bank Account Indebtedness resulting from the transfer of
      such  balances to the Company,  pursuant to Section  8.29(b) of the Credit
      Agreement, may be repaid on each date that a dividend in the amount of the
      repayment is paid to the Company, provided that such dividend is, in fact,
      paid on such date.

      If, for  regulatory  purposes,  it is necessary to maintain the  Liquidity
      Balances in a separate  account,  this account  should be divided into two
      accounts,  one containing Liquidity Balances, and the other containing all
      other balances.

                                       13

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