Document:

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                                                                    EXHIBIT 10.4

                                 March 15, 2000

PennCorp Financial Group, Inc.
717 North Harwood Street
Dallas, Texas 75201
Attention: The Board of Directors

Gentleman:

                  In connection with the proposed recapitalization (the
"Recapitalization") of PennCorp Financial Group, Inc. (the "Company") on the
terms set forth in Exhibit A attached hereto (the "Terms Summary"), the Company
will offer the undersigned the opportunity to purchase 240,000 shares of New
Common (as defined in the Term Summary) for a purchase price of $12.50 per share
and an aggregate purchase price of $3,000,000, in each case payable in
immediately available funds. The undersigned, subject to the terms and
conditions set forth herein and in Exhibit A, hereby agrees that at the closing
of the Recapitalization he will purchase such shares of New Common. Capitalized
terms not otherwise defined in this letter shall have the meanings ascribed to
them in the Terms Summary. In connection therewith, the undersigned has agreed
to deposit such $3,000,000 into an escrow account pursuant to the terms and
conditions set forth in an Escrow Agreement, dated as of the date hereof, among
the Company, the undersigned, Inverness/Phoenix Capital, LLC ("Inverness"),
Vicuna Advisors, L.L.C., in its capacity as investment manager to certain
Delaware entities ("Vicuna") and Bernard Rapoport (the "Escrow Agreement"). The
funds deposited by the undersigned pursuant to the Escrow Agreement will be
credited toward the purchase price for the New Common to be acquired by the
undersigned hereunder upon delivery of such funds to the Company.

                  Such purchase of New Common is subject the following
conditions: (i) the New Senior Facility shall have been funded and the
Reinsurance Transaction shall have been consummated; (ii) all conditions imposed
by the Texas Department of Insurance with respect to the payment by SW Life and
SLT of the Extraordinary Dividend shall have been satisfied; (iii) the approval
of the Texas Department of Insurance shall have been received and the expiration
or early termination of the applicable waiting periods under the Hart Scott
Rodino Anti-Trust Improvements Act of 1976, as amended, shall have occurred;
(iv) the board of directors of PFG shall have approved the Recapitalization and
shall not have terminated it in response to a superior proposal; (v) with
respect to the Bankruptcy, an order confirming the plan of reorganization that
incorporates the Recapitalization shall have been entered by the Bankruptcy
Court and such order shall be unstayed and in full force and effect; and (vi)
the closing of the Recapitalization occurring not later than December 31, 2000.
Upon satisfaction of each of the conditions set forth above, the undersigned
shall deliver a written notice to the Escrow Agent under the Escrow Agreement
authorizing the release of the Escrow Funds (as defined therein) to the Company
pursuant to the terms thereof.

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                  The undersigned may assign his rights and obligations under
this letter to his affiliates; provided however, in the event of such assignment
the undersigned shall not be relieved of his obligations hereunder in the event
of a breach by any such assignee. This letter shall be governed by and construed
under the laws of the State of New York, without regard to the conflict of law
principles thereof except to the extent pre-empted by the United States
Bankruptcy Code. Any judicial proceeding brought against the undersigned
relating to a dispute arising out of this letter will be brought exclusively in
the Bankruptcy Court and by its execution and delivery of this letter, the
undersigned accepts the exclusive jurisdiction of the Bankruptcy Court.

                  This letter shall terminate, and the undersigned shall have no
further obligations hereunder, (i) if an order approving the sale of SW Life and
SLT has been entered by the Bankruptcy Court, and such order has become final or
(ii) in the event the Recapitalization has not been consummated on or prior to
December 31, 2000.

                                         Very truly yours,

                                         /s/ JOHN SHARPE

                                         John Sharpe<PAGE>   1
                                                                    EXHIBIT 10.5

                                 March 22, 2000

PennCorp Financial Group, Inc.
717 North Harwood Street
Dallas, Texas 75201
Attention: The Board of Directors

Gentleman:

                  In connection with a proposed recapitalization (the
"Recapitalization") of PennCorp Financial Group, Inc. (the "Company") on the
terms set forth in Exhibit A attached hereto (the "Terms Summary"), the Company
will grant rights (the "Rights Offering") to purchase 1,960,000 shares of New
Common (as defined in the Terms Summary) to all of the holders of Preferred
Stock (as defined in the Terms Summary) (the "Offerees") for $12.50 per share
and an aggregate purchase price of $24,500,000, in each case, payable in
immediately available funds. Capitalized terms not otherwise defined in this
letter shall have the meanings ascribed to them in the Terms Summary. At the
closing of the Rights Offering, (i) Inverness / Phoenix Capital, LLC and its
affiliates ("Inverness") hereby agree to purchase up to 1,680,000 shares of New
Common not otherwise subscribed for by the Offerees (the "Inverness Standby
Commitment") for a purchase price per share of $12.50 up to an aggregate
purchase price of $21,000,000 and (ii) Vicuna Advisors, L.L.C., in its capacity
as investment manager to certain Delaware entities ("Vicuna" and together with
Inverness, the "Standby Underwriters") hereby agree to purchase up to 280,000
shares of New Common not otherwise subscribed for by the Offerees for a purchase
price per unit of $12.50 up to an aggregate purchase price of $3,500,000 (the
"Vicuna Standby Commitment"). In connection therewith, the Company agrees, at
the closing of the Rights Offering, to pay the Standby Underwriters an
underwriting commitment fee of $1,375,000 in cash. To the extent that shares of
New Common are purchased by the Offerees pursuant to the exercise of Rights, the
obligation of each Standby Underwriter to purchase New Common hereunder shall be
reduced pro rata in accordance with its Standby Percentage. For purposes hereof,
the "Standby Percentage" for Inverness is 85.7% and for Vicuna is 14.3%.

                  In connection with their obligations hereunder, Inverness has
deposited $5,000,000, and has agreed to deposit an additional $16,000,000, into
an escrow account, and Vicuna has agreed to deposit $3,500,000 into such escrow
account, in each case pursuant to the terms of an Escrow Agreement, dated as of
the date hereof, among the Company, Inverness, Vicuna, Bernard Rapoport and John
Sharpe (the "Escrow Agreement"). The funds deposited by the Standby Underwriters
pursuant to the Escrow Agreement will be credited toward the purchase price for
the New Common to be acquired by them hereunder upon delivery of such funds to
the Company.

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PennCorp Financial Group, Inc.
March 22, 2000
Page 2

                  The obligations of Inverness under the Inverness Standby
Commitment and Vicuna under the Vicuna Standby Commitment are subject to the
following conditions: (i) the New Senior Facility shall have been funded and the
Reinsurance Transaction shall have been consummated; (ii) all conditions imposed
by the Texas Department of Insurance with respect to the payment by SW Life and
SLT of the Extraordinary Dividend shall have been satisfied; (iii) the approval
of the Texas Department of Insurance shall have been received and the expiration
or early termination of all applicable waiting periods under the Hart Scott
Rodino Anti-Trust Improvements Act of 1976, as amended shall have occurred; (iv)
the board of directors of PFG shall have approved the Recapitalization and shall
not have terminated it in response to a superior proposal; (v) with respect to
the Bankruptcy, an order confirming the plan of reorganization that incorporates
the Recapitalization shall have been entered by the Bankruptcy Court and such
order shall be unstayed and in full force and effect; and (vi) the closing of
the Recapitalization occurring not later than December 31, 2000. Upon
satisfaction of each of the conditions set forth above, each of the undersigned
shall deliver a written notice to the Escrow Agent under the Escrow Agreement
authorizing the release of the Escrow Funds (as defined therein) to the Company
pursuant to the terms thereof.

                  In the event that the Company selects the Recapitalization as
the Final Accepted Offer (as such term is defined in the Order of the United
States Bankruptcy Court, District of Delaware, dated February 28, 2000, with
respect to the Bankruptcy), provided that the Recapitalization is consummated,
the Company agrees to indemnify and hold the undersigned, its affiliates, and
the directors, officers, employees, managers and representatives of any of them,
harmless from and against all claims, expenses (including, but not limited to,
attorneys' fees), damages, and liabilities ("Claims") of any kind which may be
incurred by, or asserted against, any such person in connection with, or arising
out of, this letter, the Recapitalization, or any related investigation,
litigation or proceeding (other than Claims arising out of the undersigneds'
intentional misconduct or bad faith). Under no circumstances shall the
undersigned or any of its affiliates be liable for any punitive, exemplary,
consequential or indirect damages which may be alleged to result in connection
with this letter or the Recapitalization. Any such indemnification under this
letter shall be subject to the approval by the Bankruptcy Court of this
provision with respect to indemnification and the Company agrees to use its
reasonable efforts to obtain such approval as soon as practicable after its
selection of the Recapitalization as the Final Accepted Offer; it being
understood that such Bankruptcy Court approval shall not be a condition
precedent to the Standby Underwriters' obligations hereunder. Any such
indemnification claim shall be subordinate to general unsecured claims in the
Bankruptcy.

                  The parties to this letter agreement hereby agree that each of
Inverness and Vicuna may assign its respective rights and obligations under this
letter agreement to its affiliates; provided however, in the event of such
assignment neither Inverness nor Vicuna shall be relieved of its obligations
hereunder. This letter shall terminate, and the Standby Underwriters shall have
no further obligations hereunder, (i) if an order approving the sale of SW Life
and SLT has been entered by the Bankruptcy Court, and such order has become
final or (ii) in the event the Recapitalization has not been consummated on or
prior to December 31, 2000.

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PennCorp Financial Group, Inc.
March 22, 2000
Page 3

                  This letter shall be governed by and construed under the laws
of the State of New York, without regard to the conflict of law principles
thereof except to the extent pre-empted by the United States Bankruptcy Code.
Any judicial proceeding brought against any of the parties to this letter
relating to a dispute arising out of this letter will be brought exclusively in
the Bankruptcy Court and by its execution and delivery of this letter, each
party hereto accepts the exclusive jurisdiction of the Bankruptcy Court.

                  This letter hereby amends and restates that certain standby
underwriting commitment letter of the Standby Underwriters, dated March 15,
2000, in its entirety.

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                  If you are in agreement with the foregoing, please execute
this letter in the space provided below.

                                        Very truly yours,

                                        Inverness/Phoenix Capital,  LLC

                                        By: /s/ JAMES C. COMIS
                                           ----------------------
                                        Its: Managing Director
                                            ---------------------

                                        Vicuna Advisors, LLC, as
                                        investment advisor

                                        By: /s/ JOSH WELCH
                                           ----------------------
                                        Its: Managing Member
                                            ---------------------

Agreed and Accepted:
-------------------

PENNCORP FINANCIAL GROUP, INC.

By: /s/ KEITH A. MAIB
   ----------------------
Its: President and Chief
     Executive Officer
    ---------------------

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