Document:

10.1 - At-Will Employment, Confidential Information, Non--Solicitationand Invention Assignment Agreement by and between Registrant and  Lindon Shiao dated June 11, 2012*

16

GRIDSENSE INC.
AT-WILL EMPLOYMENT, CONFIDENTIAL INFORMATION, NON-SOLICITATION AND INVENTION ASSIGNMENT AGREEMENT

In consideration of, and as a condition of, my employment with GridSense Inc. ("GridSense" or the “Company”) and in further consideration of my receipt of the compensation now and hereafter paid to me by the Company, I, the undersigned, agree as follows. 

		
	1.
	At-Will Employment.

A.I UNDERSTAND AND ACKNOWLEDGE THAT MY FULL-TIME EMPLOYMENT WITH THE COMPANY IS FOR AN UNSPECIFIED DURATION AND CONSTITUTES "AT-WILL" EMPLOYMENT.  I ALSO UNDERSTAND THAT ANY REPRESENTATION TO THE CONTRARY IS UNAUTHORIZED AND NOT VALID UNLESS IN A WRITING ENTITLED "MODIFICATION OF AT-WILL EMPLOYMENT" AND SIGNED BY AN OFFICER OF THE COMPANY AND AGREED TO BY ACORN ENERGY, INC. IN A SIGNED WRITING ENTITLED “MODIFICATION OF AT-WILL EMPLOYMENT.” ACCORDINGLY, I ACKNOWLEDGE THAT MY EMPLOYMENT RELATIONSHIP MAY BE TERMINATED AT ANY TIME, WITH OR WITHOUT GOOD CAUSE OR FOR ANY OR NO CAUSE, AT MY OPTION OR AT THE OPTION OF THE COMPANY, WITH OR WITHOUT NOTICE.
B.Compensation.  I understand that I will receive such base compensation and benefits as the Board of Directors of the Company (the “Board”) shall establish from time to time, payable in accordance with the Company's normal payroll practices and subject to required withholdings.  In addition, I will be entitled to receive a cash bonus in addition to my annual base salary based on the Company's financial performance during each full calendar year period (the “Determination Period”) while I am employed by the Company (the “Bonus Payment”) if I am employed by the Company on the date such Bonus Payment is otherwise payable as provided in the next sentence; provided that if my employment terminates after the close of the Determination Period and before the payment date, I shall nonetheless be paid such Bonus Payment so long as my employment was not terminated for “Cause” by the Company in addition to any other amounts due pursuant to Section 7 below. The Bonus Payment, if any, shall be earned and paid by the Company on March 15 of the year following each Determination Period in accordance with the Company's normal payroll practices and subject to required withholdings.  The Bonus Payment for 2012 shall equal 4% of the amount, if any, by which the actual gross profit of the Company and its Australian affiliates (collectively, the “GridSense Business”), as determined for financial reporting purposes, for the 2012 calendar year exceeds 105% of the GridSense Business's gross profit earned in 2011.  Unless otherwise determined by the Board, the financial measurement for each future Determination Period will equal 4% of the amount, if any, by which the GridSense Business's actual gross profit, as determined for financial reporting purposes, exceeds 105% of the GridSense Business's gross profit earned in the year immediately prior to the applicable Determination Period.

		
	2.
	Confidential Information.

a.Company Information.  I agree at all times during my employment with the Company and thereafter, to hold in the strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm, or corporation without written authorization of the Board, any Company 

Confidential Information.  I understand that my unauthorized use or disclosure of Company Confidential Information during my employment may lead to disciplinary action, up to and including immediate termination.  I understand that "Company Confidential Information" includes any non-public information that relates to the actual or anticipated business, research, or development of the Company, or to the Company's technical data, trade secrets, or know-how, including, but not limited to formulas, research, product plans, or other information regarding the Company's products or services and markets therefor, customer lists and customers (including, but not limited to, customers of the Company on which I called or with which I may become acquainted during the term of my employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances and other business information; provided, however Company Confidential Information does not include any of the foregoing items to the extent the same have become publicly known and made generally available through no wrongful act of mine or of others, or were known to me prior to my employment or other association with the Company or its affiliates and about which I had at such time no obligation of confidentiality.
b.Former Employer Information.  I agree that during my employment with the Company, I will not improperly use, disclose, or induce the Company to use any proprietary information or trade secrets of any former employer or other person or entity.  I further agree that I will not bring onto the premises of the Company or transfer onto the Company's technology systems any unpublished document, proprietary information, or trade secrets belonging to any such employer, person, or entity unless consented to in writing by both Company and such employer, person, or entity.
c.Third Party Information.  I recognize that the Company may have received and in the future may receive from third parties associated with the Company, e.g., the Company's affiliates, customers, suppliers, licensors, licensees, partners, or collaborators ("Associated Third Parties") their confidential or proprietary information ("Associated Third Party Confidential Information").  By way of example, Associated Third Party Confidential Information may include the habits or practices of Associated Third Parties, the technology of Associated Third Parties, requirements of Associated Third Parties, and information related to the business conducted between the Company and such Associated Third Parties.  I agree at all times during my employment with the Company and thereafter, to hold in the strictest confidence, and not to use or to disclose to any person, firm, or corporation any Associated Third Party Confidential Information, except as necessary in carrying out my work for the Company consistent with the Company's agreement with such Associated Third Parties.  I understand that my unauthorized use or disclosure of Associated Third Party Confidential Information during my employment will lead to disciplinary action, up to and including immediate termination.

		
	3.
	Inventions.

a.Inventions Retained and Licensed.  I have attached hereto as Exhibit A, a list describing all inventions, discoveries, original works of authorship, developments, improvements, and trade secrets, which were conceived in whole or in part by me prior to my employment with the Company to which I have any right, title or interest, which are subject to California Labor Code Section 2870, and which relate to the Company's proposed business, products, or research and development ("Prior Inventions"); or, if no such list is attached, I represent and warrant that there are no such Prior Inventions.  Furthermore, I represent and warrant that the inclusion of any Prior Inventions in Exhibit A of this At-Will Employment, Confidential Information, Non-Solicitation and Invention Assignment Agreement (the "Agreement") will not materially affect my ability to perform all obligations under this Agreement.  If, in the course of my employment with the Company, I incorporate into or use in connection with any product, process, service, technology, or other work by or on behalf of Company any Prior Invention, I hereby grant, or will cause to be granted, to the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, perpetual, worldwide license, with the right to grant and authorize sublicenses, to make, have made, modify, use, import, offer for sale, and sell 

such Prior Invention as part of or in connection with such product, process, service, technology, or other work and to practice any method related thereto.
b.Assignment of Inventions.  I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and benefit of the Company, and hereby assign to the Company, or its designee, all my right, title, and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks, or trade secrets, whether or not patentable or registrable under patent, copyright, or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the employ of the Company (including during my off-duty hours), or with the use of Company's equipment, supplies, facilities, or Company Confidential Information, except as provided in Section 3.E below (collectively referred to as "Inventions").  I further acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of and during the period of my employment with the Company and which are protectable by copyright are "works made for hire," as that term is defined in the United States Copyright Act.  I understand and agree that the decision whether or not to commercialize or market any Inventions is within the Company's sole discretion and for the Company's sole benefit and that no royalty or other consideration will be due to me as a result of the Company's efforts to commercialize or market any such Inventions.
c.Maintenance of Records.  I agree to keep and maintain adequate, current, accurate, and authentic written records of all Inventions made by me (solely or jointly with others) during the term of my employment with the Company.  The records will be in the form of notes, sketches, drawings, electronic files, reports, or any other format that may be specified by the Company. The records are and will be available to and remain the sole property of the Company at all times.
d.Patent and Copyright Registrations.  I agree to assist the Company, or its designee, at the Company's expense, in every proper way to secure the Company's rights in the Inventions and any rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem proper or necessary in order to apply for, register, obtain, maintain, defend, and enforce such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Inventions and any rights relating thereto, and testifying in a suit or other proceeding relating to such Inventions and any rights relating thereto.  I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of this Agreement.  If the Company is unable because of my mental or physical incapacity or for any other reason to secure my signature with respect to any Inventions including, without limitation, to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering such Inventions, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any papers, oaths and to do all other lawfully permitted acts with respect to such Inventions with the same legal force and effect as if executed by me.
e.Exception to Assignments.  I understand that the provisions of this Agreement requiring assignment of Inventions to the Company do not apply to any invention which qualifies fully under the provisions of California Labor Code Section 2870(a) (attached hereto as Exhibit B).  I will advise the Company promptly in writing of any inventions that I believe meet the criteria in California Labor Code Section 2870(a) and which are not otherwise disclosed on Exhibit A.
		
	4.
	Conflicting Employment.

This employment agreement requires my full time services on behalf of the Company. I represent that I have no other agreements, relationships, or commitments to any other person or entity that conflict with my obligations to the Company under this Agreement or my ability to become employed and perform the services for which I am being hired by the Company.  I further agree that if I have signed a confidentiality agreement or similar type of agreement with any former employer or other entity, I will comply with the 

terms of any such agreement to the extent that its terms are lawful under applicable law.  I represent and warrant that after undertaking a careful search (including searches of my computers, cell phones, electronic devices and documents), I have returned all property and confidential information belonging to all prior employers.  Moreover, I agree to fully indemnity the Company, its directors, officers, agents, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns for all verdicts, judgments, settlements, and other losses incurred by any of them resulting from my breach of my obligations under any agreement to which I am a party or obligation to which I am bound, as well as any reasonable attorneys' fees and costs if the plaintiff is the prevailing party in such an action.
		
	5.
	Returning Company Documents.

Upon separation from employment with the Company or on demand by the Company during my employment, I will immediately deliver to the Company, and will not keep in my possession, recreate or deliver to anyone else, any and all Company property, including, but not limited to, Company Confidential Information, Associated Third Party Confidential Information, as well as all devices and equipment belonging to the Company (including computers, handheld electronic devices, telephone equipment, and other electronic devices), Company credit cards, records, data, notes, notebooks, reports, files, proposals, lists, correspondence, specifications, drawings blueprints, sketches, materials, photographs, charts, all documents and property, and reproductions of any of the aforementioned items that were developed by me pursuant to my employment with the Company, obtained by me in connection with my employment with the Company, or otherwise belonging to the Company, its successors, or assigns, including, without limitation, those records maintained pursuant to Section 3.C. I also consent to an exit interview to confirm my compliance with this Section 5.
		
	6.
	Non-Solicitation.

a.Employee's Covenants.  In consideration of the Company hiring me, during the term of my employment and for eighteen (18) months thereafter, I will not, directly or indirectly: (a) encourage any employee, consultant, or person who is then employed by the Company (or any of its affiliates) to leave the Company (or any of its affiliates) for any reason, nor will I solicit their services; or (b) assist any other person or entity in such encouragement or solicitation.  As part of this restriction, I will not interview, or provide any input to any third party regarding, any such person during the period in question. 
b.Consideration.  I acknowledge and understand that my employment is conditioned upon me agreeing to the terms of this Section 6 and other terms of this Agreement and me complying with all covenants set forth in this Section 6 and this Agreement, and I am willingly entering into the covenants set forth in this Section 6 and this Agreement in consideration of the Company hiring me.
c.Understanding of Covenants.  I represent and agree that I (i) am familiar with the foregoing covenants not to  solicit and (ii) am fully aware of my obligations hereunder, including, without limitation, the reasonableness of the length of time and scope of these covenants.  I acknowledge and agree that the provisions of this Section are reasonable and that the restrictions are necessary to protect Company Confidential Information and the Company's legitimate business interests.
d.Survival of Restrictions.  In the event that any provision of this Section 6 relating to the time period of the non-solicitation, the breadth of restricted activities or other related matters, is declared by a court of competent jurisdiction to exceed the maximum restrictiveness such court deems reasonable and enforceable, then such aspects of this Section 6 as would be deemed reasonable and enforceable by the court will become and thereafter be the maximum restriction in such regard, and such restriction will remain enforceable to the fullest extent deemed reasonable by such court.  The restrictions set forth in this Section 6 shall survive the termination of this Agreement or Employee's termination of employment.
e.Inadequacy of Monetary Damages.  I acknowledge and agree that monetary damages alone would not adequately compensate the Company in the event of a breach by me of any of the provisions of 

this Section 6 or Sections 2, 3 or 5 of this Agreement. In the event of a breach or threatened breach by the me of any of the provisions of this Section 6 or Sections 2, 3 or 5 of this Agreement, the Company will have the right to seek both monetary damages for any past breach and equitable relief, including specific performance by means of an injunction or other action against me or against my partners, agents, representatives, servants, employers, employees, associates or any and all other persons acting directly or indirectly by or with me, to prevent or restrain any breach.

		
	7.
	Termination.

a.General.  My employment shall end immediately upon my death, or upon termination by the Company for Cause (after expiration of the cure period described below) or Disability or by me for Good Reason, each as defined in Section 8.  Upon termination of my employment due to my death, or my Disability, all compensation due me under this Agreement will cease.  In all other cases, (i) the Company may terminate this Agreement upon thirty (30) days prior written notice, and (ii) I may terminate this Agreement upon thirty (30) days written notice.  
 
b.Notice of Termination - Generally.  Any termination by the Company of my employment hereunder shall be in writing and delivered to me at the address set forth herein or at such address kept in the records of the Company and shall specify the reasons for such termination.

c.Termination by the Company for Cause; Termination by me without Good Reason.  Any written notice of termination of employment by the Company of me for Cause shall, to the extent the Cause is curable, allow me the opportunity to cure, but in any event for a period of no more than twenty (20) calendar days.  Such notice of termination shall also state in reasonable detail the Board's understanding of the facts leading to the determination of Cause.  Upon the Company's final termination of my employment for Cause or upon my final termination of my employment without Good Reason (pursuant to the notice provisions of Section 7.A hereof), all compensation due to me under this Agreement shall cease, except that I shall receive the following:
(i) all accrued but unpaid base salary up to the date of termination (payable in accordance with the Company's payroll practices); and

(ii) reimbursement of all previously unreimbursed business expenses pursuant to Company policy; 

d.Termination by the Company upon a Change of Control or Termination by me for Good Reason following a Change of Control.  In the event that within three (3) months prior to or one year following a “Change of Control”, as defined in Section 8.C, either (i) the Company terminates my employment, other than for Cause (pursuant to the notice provisions of Section 7.A hereof), or (ii) I terminate my employment for Good Reason (pursuant to the notice provisions of Section 7.A hereof), I shall receive the following (except as otherwise provided in Section 7.F):
 (i) an amount equal to (A) twelve (12) months of then-current base salary (which is in addition to the base salary paid to me after the Company's delivery of notice of termination pursuant to Section 7.A and the actual date of termination) and (B) the amount of my most recent annual bonus, such amount to be payable as provided in Section 9; and

(ii) reimbursement of all previously unreimbursed business expenses pursuant to Company policy.

For the avoidance of doubt, I shall be entitled to the foregoing benefits once notice of termination is given by the Company or by me pursuant to this Section 7.D and my employment has terminated, regardless of my subsequent Death or Disability.

 
e.Termination by the Company other than upon Change of Control, Death, Disability or Cause or Termination by me for Good Reason.  In the event that the Company terminates my employment, other than upon a Change of Control, Death, Disability or Cause, or if I resign from the Company with Good Reason (in either case pursuant to the notice provisions of Section 7.A hereof), I shall receive the following (except as otherwise provided in Section 7.F):
(i) an amount equal to (A) six (6) months of then-current base salary (which is in addition to the base salary paid to me after the Company's delivery of notice of termination pursuant to Section 7.A and the actual date of termination) and (B) one-half the amount of my most recent annual bonus, such amount to be payable as provided in Section 9; and

(ii) reimbursement of all previously unreimbursed business expenses pursuant to Company policy.

For the avoidance of doubt, I shall be entitled to the foregoing benefits once notice of termination is given by the Company or by me pursuant to this Section 7.E and my employment has terminated, regardless of my subsequent Death or Disability.

f.Excess Parachute Payments.  If the amounts payable by the Company pursuant to Section 7.D or Section 7.E in connection with a termination of my employment would constitute to any extent an “excess parachute payment” as defined in Section 280G(b) of the Internal Revenue Code of 1986, as amended (the “Code”), then the amount payable by the Company to me under those provisions of this Agreement shall be an amount equal to the lesser of: (A) the amounts payable pursuant to Section 7.D or Section 7.E, as applicable; or (B) the amounts described in clause (A) as reduced to the extent necessary to cause the aggregate of all amounts paid to me in connection with (x) a change in ownership or effective control of the Company or (y) a change in the ownership of a substantial portion of the assets of the Company (if any of the foregoing constitutes an event described in clause (b)(2)(A)(i) of Code Section 280G) not to exceed two hundred ninety-nine percent (299%) of the “base amount” paid to me as such term is defined in Section 280G(b)(3) (or any successor provision).  The reduction described in clause (B) of the preceding sentence shall not be made, however, if the effect of the reduction would be to cause me to retain, from the sum of all "parachute payments" as defined in Code Section 280G(b) payable to me or for my benefit, on an after-tax basis (that is, after payment of all applicable income taxes and of any tax imposed by Section 4999 of the Code by reason of the receipt of such payments) and taking into account such reduction, an aggregate amount that is less than what I would retain, on an after-tax basis, if the reduction described in clause (B) of the preceding sentence were not made.    For the avoidance of doubt, this Section 7.F shall be applied by taking into account any “parachute payment” (as defined in Code Section 280G(b)) payable to me in connection with the change in ownership or effective control of the Company or change in the ownership of a substantial portion of its assets.
g.Release.  The obligation of the Company to make any payments or provide any benefits to me under this Section 7 shall be subject to me signing and not revoking a release of all claims in reasonable form provided to me by the Company.
h.No Other Payments.  Other than the payments described in Sections 7.D and 7.E above, I shall not be entitled to any other payments upon my termination of employment except any unpaid salary accrued to the date of my termination.
		
	8.
	Definitions.

a."Cause" Defined.  “Cause” means (i) the failure by me to perform my duties hereunder after written notice thereof and time to cure; (ii) my failure to follow the written legal directions of the Board after written notice thereof; (iii) my conviction of, or pleading guilty or nolo contendere, to a felony or a crime 

involving moral turpitude, fraud or embezzlement; (iv) willful misconduct with regard to the Company (including violations of securities or other laws) having a material adverse impact on the Company; or (v) an uncured material breach by me of this Agreement or material breach by me of my fiduciary duties; in each case, unless cured within twenty (20) calendar days' of my receipt of written notice by the Board of its determination to terminate me with Cause, to the extent curable.
b.“Disability” Defined.  “Disability” shall mean my incapacity due to physical or mental illness, as determined by a qualified independent physician, that results in me being unable to substantially perform my duties hereunder for three consecutive months (or for three months out of any six-month period) (in either event, the “Disability Period”).  Upon termination of employment, after the end of the Disability Period, all compensation due me under this Agreement shall cease.
c.“Change of Control” Defined.  “Change of Control” shall mean the occurrence of any one or more of the following events:
(i) An acquisition (whether directly from the Company or otherwise) of any voting securities of the Company (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act of 1934, as amended (the “1934 Act”)), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of more than fifty percent (50%) of the combined voting power of the Company's then outstanding Voting Securities;

(ii) A majority of the members of the Board of Directors of the Company is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company's Board of Directors before the date of the appointment or election, other than any change in the composition of the Board of Directors made by Acorn Energy, Inc.; or

(iii)  An acquisition by any Person, at any time during the 12-month period ending on the date of the most recent acquisition by such Person or Persons, of assets from the Company that have a total Gross Fair Market Value equal to or more than eighty percent (80%) of the total Gross Fair Market Value of all of the assets of the Company immediately before such acquisition; provided, however, that the Gross Fair Market Value of any assets of the Company acquired by a Person that is controlling, controlled by or under common control with the Company or any of its stockholders shall not be taken into account in determining whether a Change of Control has occurred.

Notwithstanding anything in this Section 8.C to the contrary, a “Change of Control” shall not include a reorganization of Acorn Energy, Inc., any spin-off or similar transaction from Acorn Energy or any of (i), (ii) or (iii) above if such “Person” is an affiliate of the Company or Acorn Energy.

d.“Good Reason” Defined.  “Good Reason” shall mean the occurrence of any of the conditions described below, provided that such condition arises without my consent.
(i) a material diminution in my authority, duties, or responsibilities;

(ii) a material diminution in the authority, duties, or responsibilities of the supervisor or corporate body to whom I am required to report, including a requirement that I report to a corporate officer or employee instead of reporting directly to the board of directors of the Company (or similar governing body with respect to an entity other than the Company).

(iii) a material diminution in my base compensation; 

(iv) any material breach by the Company of any provision of this Agreement; or

(v) a material change in the geographic location at which I must perform my services 

that arises without my consent.

Notwithstanding the above, a termination of employment shall not be considered to have occurred for “Good Reason” unless: I provide notice of the condition within 30 days after the initial existence of the condition; the Company fails to cure such condition within 30 days after such notice; and the termination of employment occurs within two years following the initial existence of the condition.

e.“Gross Fair Market Value” Defined.  “Gross Fair Market Value” shall mean the fair market value without regard to liabilities associated with the assets valued.
		
	9.
	Payment Terms. 

Payment of any amounts to which I shall be entitled pursuant to the provisions of Section 7 shall be made in 12 equal installments commencing no later than thirty (30) days following the six month anniversary of the date of termination of employment. 

		
	10.
	Post-Termination Benefits. 

Upon termination of my employment hereunder for any reason, in addition to any payments to which I may be entitled upon termination of my employment pursuant to any Company policy or plan or any provision of this Agreement, I shall be entitled to any benefits under any Company policy or plan in which I was participating on the date of any such termination as provided in such policy or plan.

		
	11.
	Termination Certification.

Upon separation from employment with the Company, I agree to immediately sign and deliver to the Company the "Termination Certification" attached hereto as Exhibit C.  I also agree to keep the Company advised of my home and business address for a period of one (1) year after termination of my employment with the Company, so that the Company can contact me regarding my continuing obligations provided by this Agreement.
		
	12.
	Notification of New Employer.

In the event that I leave the employ of the Company, I hereby grant consent to notification by the Company to my new employer about my obligations under this Agreement.
		
	13.
	Code of Conduct and Ethics.

I agree to diligently adhere to all policies of the Company including, but not limited to, its Code of Conduct and Ethics, all of which may be revised from time to time during my employment.
		
	14.
	Representations.

I agree to execute any proper oath or verify any proper document required to carry out the terms of this Agreement.  I represent that my performance of all the terms of this Agreement will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Company.  I hereby represent and warrant that I have not entered into, and I will not enter into, any oral or written agreement in conflict herewith.
		
	15.
	Company Access to All data on Its Property, Equipment, Media or Domains

I acknowledge that I have no reasonable expectation of privacy in any communication, whether oral, written or electronic, that is broadcasted, transmitted, recorded, archived or otherwise located within any equipment, computer, technology system, software, handheld device, telephone or other asset or property owned or licensed by the Company, or any documents or emails that are used in the conduct the business of the Company, ;I grant to the Company all rights to access any communication listed above.  As such, the Company has the right to audit and search all such equipment, items and systems, without further notice to me, to ensure that the Company is licensed to use the software on the Company's devices in compliance with 

the Company's software licensing policies, to ensure compliance with the Company's policies, and for any other business-related purposes in the Company's sole discretion.  I understand that I am not permitted to add any unlicensed, unauthorized, or non-compliant applications to the Company's technology systems and that I shall refrain from copying unlicensed software onto the Company's technology systems or using non-licensed software or web sites.  I understand that it is my responsibility to comply with the Company's policies governing use of the Company's documents and the internet, email, telephone, and technology systems to which I will have access in connection with my employment.
		
	16.
	General Provisions.

a.Governing Law; Consent to Personal Jurisdiction.  This Agreement will be governed by the laws of the State of California without giving effect to any choice-of-law rules or principles that may result in the application of the laws of any jurisdiction other than California.  To the extent that any lawsuit is permitted under this Agreement, I hereby expressly consent to the personal jurisdiction of the state and federal courts located in California for any lawsuit filed against me by the Company.
b.Entire Agreement.  This Agreement, together with the Exhibits herein, set forth the entire agreement and understanding between the Company and me and/or Prime Energy Partners Ltd. relating to the subject matter herein and supersede all prior discussions or representations between us including, but not limited to, any representations made during my interview(s) or relocation negotiations (if any), whether written or oral.  Notwithstanding the foregoing, to the extent the Company, its affiliates and/or Acorn Energy, Inc. had rights under such former agreement(s) with respect to confidentiality, then such rights will be cumulative with those provided hereunder and to the extent of any conflict, they shall be entitled to the maximum protection afforded hereby or thereby. Subject to the more restrictive terms contained in Paragraph 1 above, no modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by an officer of the Company and me, and agreed to by Acorn Energy, Inc.  Any subsequent change or changes in my duties, salary, or compensation will not affect the validity or scope of this Agreement.
c.Severability.  If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will continue in full force and effect.
d.Successors and Assigns.  This Agreement will be binding upon my heirs, executors, assigns, administrators, and other legal representatives and will be for the benefit of the Company, its successors, and its assigns.  There are no intended third-party beneficiaries to this Agreement except as expressly stated.  The terms of this Agreement shall inure to the benefit of GridSense and its successors and assigns, and to GridSense Pty. Ltd. and its affiliates to the extent provided in any secundment or similar agreement to which I am party.
e.Waiver.  Waiver by the Company of a breach of any provision of this Agreement will not operate as a waiver of any other or subsequent breach.
f.Survivorship.  The rights and obligations of the parties to this Agreement will survive termination of my employment with the Company.
g.Signatures.  This Agreement may be signed in two counterparts, each of which shall be deemed an original, with the same force and effectiveness as though executed in a single document.

[Signature pages follow]

AGREED AND ACCEPTED:

	
							
	Date:  ____________, 2012
	 
	 
	 

	 
	 
	LINDON SHIAO
	 

	
							
	 
	 
	 
	 

	Witness:
	 
	Address:
	 

	 
	 
	 
	 

	 
	 
	 
	 

	Signature
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	Typed or Printed Name

Agreed as to Sections 1, 7, 8, 9 and 16 above as of _______, 2012.

GRIDSENSE INC.

By:_________________________________
  ___________________________________
Typed or Printed Name and Title

	 
	 
	 

	 
	 
	 
	 

	Agreed as to Sections 7, 8, 9 and 16 above as of ______, 2012.
	 

	 
	 
	 
	 

	 
	 
	ACORN ENERGY, INC.
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	John A. Moore
President & CEO
	 

	 
	 

	 
	 
	 
	 

	
							
	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

Exhibit A

LIST OF PRIOR INVENTIONS
AND ORIGINAL WORKS OF AUTHORSHIP

	
			
	Title
	Date
	Identifying Number of Brief Description

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

_____ No inventions or improvements                                
LINDON SHIAO
_____ Additional sheets attached

Date: ________, 2012

Exhibit B

California Labor Code Section 2870: Assignment of Rights

This exhibit notifies you, pursuant to Section 2872 of the California Labor Code, that the foregoing At-Will Employment, Confidential Information, Non-Solicitation and Invention Assignment Agreement between you and Company is in accordance with Section 2870 of the California Labor Code, which states that:

(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer's equipment, supplies, facilities, or trade secret information except for those inventions that either:

(1) Relate at the time of conception or reduction to practice of the invention to the employer's business, or actual or demonstrably anticipated research or development of the employer; or

(2) Result from any work performed by the employee for the employer.

(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

Exhibit C
GridSense Inc.
TERMINATION CERTIFICATION

This is to certify that I do not have in my possession, nor have I failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents, or property, or reproductions of any aforementioned items belonging to GridSense, Inc., its subsidiaries, parents, affiliates, successors, or assigns (together, the "Company").
I further certify that I have complied with all the terms of the Company's At-Will Employment, Confidential Information, Non-Solicitation and Invention Assignment Agreement signed by me, including the reporting of any inventions and original works of authorship (as defined therein), conceived or made by me (solely or jointly with others) covered by that agreement.
I further agree that, in compliance with the At-Will Employment, Confidential Information, Non-Solicitation and Invention Assignment Agreement, I will preserve as confidential all Company Confidential Information and Associated Third-Party Confidential Information, including trade secrets, confidential knowledge, data, or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information, or other subject matter pertaining to any 

business of the Company or any of its employees, clients, consultants, or licensees.
After leaving the Company's employment, I will be employed by ___________________ _________________________ in the position of _____________________________________.

__________________________________________
Signature of employee

__________________________________________
Print name
__________________________________________
Date

Address for Notifications:            __________________________________________

__________________________________________RDN-EX10.1_2012.6.30-Q2

EXHIBIT  10.1
RADIAN GROUP INC.
2008 EQUITY COMPENSATION PLAN
PERFORMANCE-BASED RESTRICTED STOCK UNIT GRANT LETTER
THIS PERFORMANCE-BASED RESTRICTED STOCK UNIT GRANT LETTER (the “Grant Letter”), dated as of June 6, 2012 (the “Grant Date”), is delivered by Radian Group Inc., a Delaware corporation (the “Company”), to S.A. Ibrahim, an employee of the Company or one of its Subsidiaries (the “Grantee”).
RECITALS
WHEREAS, the Radian Group Inc. 2008 Equity Compensation Plan, as amended (the “Plan”) permits the grant of Restricted Stock Units to employees, officers, non-employee directors, consultants and advisors of the Company and its Subsidiaries, in accordance with the terms and provisions of the Plan;
WHEREAS, the Company desires to grant Restricted Stock Units to the Grantee, and the Grantee desires to accept such Restricted Stock Units, on the terms and conditions set forth herein and in the Plan; 
WHEREAS, the Restricted Stock Units granted pursuant to this Grant Letter shall vest based on the attainment of performance goals related to total shareholder return (“TSR”) and continued employment; and  
WHEREAS, the applicable provisions of the Plan are incorporated into this Grant Letter by reference, including the definitions of terms contained in the Plan (unless such terms are otherwise defined herein).
NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as follows:
		
	1.
	Grant of Performance-Based Restricted Stock Units.

Subject to the terms and vesting conditions hereinafter set forth, the Company hereby awards to the Grantee a target award of 581,870 Restricted Stock Units (hereinafter, the “Target Award”) under the Plan.    
		
	2.
	Vesting.

(a)General Vesting Terms.  Except as set forth in Sections 2(c) and 2(d) below, the Grantee shall vest in a number of Restricted Stock Units based on the attainment of the TSR performance goals described on Schedule A as of the end of the Performance Period (as defined below), provided that the Grantee remains employed by the Company or a Subsidiary through June 5, 2015 (the “Vesting Date”).   The Performance Period is the period beginning on June 6, 2012 and ending on June 5, 2015.  Except as specifically provided below in this Section 2, no Restricted Stock Units will vest for any reason prior to the Vesting Date, and in the event of a termination of the Grantee’s employment prior to the Vesting Date, the Grantee will forfeit to the Company all Restricted Stock Units that have not yet vested as of the termination date.  Except as provided in Sections 2(c) and 2(d) below, if the TSR performance goals are not attained at the end of the Performance Period, the Restricted Stock Units will be immediately forfeited. 
(b)Retirement.  
(i)If the Grantee’s employment terminates during the Performance Period on account of Retirement, the Grantee will not forfeit the Restricted Stock Units upon Retirement, and the Restricted Stock Units will continue to vest based on the attainment of the TSR performance goals described on Schedule A, except as provided in Sections 2(c) and 2(d) below.  
(ii)For purposes of this Grant Letter, “Retirement” shall mean the Grantee’s separation from service without Cause, other than on account of death or Disability, following the Grantee’s attainment of age 55 and completion of 5 years of service with the Company or a Subsidiary.
(iii)For purposes of this Grant Letter, “Cause” shall have the meaning given that term in the Grantee’s Employment Agreement with the Company dated as of April 5, 2011 (the “Employment Agreement”).  

(c)Death or Disability.  In the event of the Grantee’s death or Disability (as defined below) during the Performance Period while employed by the Company or a Subsidiary, the Grantee’s Restricted Stock Units will automatically vest at the Target Award level on the date of the Grantee’s death or Disability, as applicable.  If, following the Grantee’s termination of employment due to Retirement, the Grantee dies during the Performance Period, the Grantee’s Restricted Stock Units will automatically vest at the Target Award level on the date of the Grantee’s death.  For purposes of this Grant Letter, the term “Disability” shall mean the Grantee is determined to have a medically determinable physical or mental disability that entitles the Grantee to receive long-term disability benefits under the Company’s long-term disability plan, provided that such disability meets the conditions of Section 409A(a)(2)(C) of the Code.   
(d)Change of Control. 
(i)If a Change of Control occurs during the Performance Period, the Restricted Stock Units will vest at the Target Award level on the Vesting Date, provided that, except as set forth in subsections (ii), (iv) and (v) below, the Grantee remains employed by the Company or a Subsidiary through the Vesting Date.  In no event shall vesting occur after the end of the Performance Period.   
(ii)Notwithstanding the foregoing, if, during the Performance Period, a Change of Control occurs and the Grantee’s employment with the Company and its Subsidiaries is terminated by the Company or a Subsidiary without Cause, or the Grantee terminates employment for Good Reason (as defined in the Employment Agreement), and the Grantee’s date of termination of employment (or in the event of the Grantee’s termination for Good Reason, the event giving rise to Good Reason) occurs during the period beginning on the date that is 90 days before the Change of Control and ending on the date that is one year following the Change of Control, the unvested Restricted Stock Units will automatically vest at the Target Award level as of the Grantee’s date of termination of employment (or, if later, on the date of the Change of Control).  In order to terminate employment for Good Reason under this Grant Letter, the Grantee must provide a written notice of termination with respect to termination for Good Reason to the Company within 90 days after the event constituting Good Reason has occurred.  The Company shall have a period of 30 days in which it may correct the act, or the failure to act, that gave rise to the Good Reason event as set forth in the notice of termination.  If the Company does not correct the act, or the failure to act, the Grantee must terminate employment for Good Reason within 30 days after the end of the cure period, in order for the termination to be considered a Good Reason termination.  Notwithstanding the foregoing, in no event will the Grantee have Good Reason for termination if a material diminution of the Grantee’s authority, duties, or responsibilities occurs in connection with the Grantee’s inability to perform his duties on account of illness or short-term or long-term disability.  
(iii)Notwithstanding the foregoing, if the Grantee’s employment terminates on account of Retirement before a Change of Control, and a Change of Control subsequently occurs during the Performance Period, the outstanding Restricted Stock Units will vest at the Target Award level on the Vesting Date (or on the Grantee’s date of death, if earlier).   
(iv)Notwithstanding the foregoing, if the Grantee’s employment terminates on account of Retirement on or after a Change of Control, the Restricted Stock Units will vest at the Target Award level on the Grantee’s Retirement date.
(v)For the avoidance of doubt, in no event shall a Change of Control occur as a result of the Company’s participation in the Troubled Asset Relief Program under the Emergency Economic Stabilization Act of 2008, the American Recovery and Reinvestment Act of 2009, or any similar program of the United States, any of its states, or any of their respective political subdivisions, departments, agencies or instrumentalities. 
3.Restricted Stock Units Account.
The Company shall establish a bookkeeping account on its records for the Grantee and shall credit the Grantee’s Restricted Stock Units to the bookkeeping account.
		
	4.
	Conversion of Restricted Stock Units.  

(a)Except as otherwise provided in this Section 4, if the Restricted Stock Units vest in accordance with this Grant Letter, the Grantee shall be entitled to receive payment of the vested Restricted Stock Units within 90 days after the Vesting Date.  
(b)The vested Restricted Stock Units shall be paid earlier than the Vesting Date in the following circumstances:
(i)If the Restricted Stock Units vest in accordance with Section 2(c) (the Grantee’s death or Disability), the vested Restricted Stock Units shall be paid within 90 days after the date of the Grantee’s death or Disability, as applicable.  
(ii)If a Change of Control occurs and the Grantee’s employment terminates upon or within one year after the Change of Control in accordance with Section 2(d)(ii), the vested Restricted Stock Units shall be paid within 90 days after the Grantee’s termination of employment.  

(iii)If a Change of Control occurs and the Grantee’s employment terminates within 90 days prior to the Change of Control in accordance with Section 2(d)(ii), and the Grantee subsequently dies during the Performance Period, the vested Restricted Stock Units shall be paid within 90 days after the date of the Grantee’s death.
(iv)If the Restricted Stock Units vest in accordance with Section 2(d)(v) (Retirement on or after a Change of Control), the vested Restricted Stock Units shall be paid within 90 days after the Grantee’s Retirement date; provided that, if the Retirement date does not occur within one year after the Change of Control, payment will be made within 90 days after the Vesting Date.
(v)Notwithstanding subsections (ii) and (iv), if the Change of Control is not a “change in control event” under section 409A of the Code, and if required by section 409A of the Code, payment will not be made on the dates described in subsections (ii) and (iv) and, instead, will be made within 90 days after the Vesting Date. 
(c)On the applicable payment date, each vested Restricted Stock Unit credited to the Grantee’s account shall be settled in cash, subject to compliance with the six-month delay described in Section 16 below, if applicable.  The cash payment shall be equal to the closing price of a share of the Company’s Common Stock on the Vesting Date, termination date,  date of Disability or date of death, whichever is the applicable distribution date under this Section 4, subject to payment of any federal, state, local or foreign withholding taxes as described in Section 12 below.
5.Certain Corporate Changes. 
If any change is made to the Common Stock (whether by reason of merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination of shares, or exchange of shares or any other change in capital structure made without receipt of consideration), then unless such event or change results in the termination of all the Restricted Stock Units granted under this Grant Letter, the Committee shall adjust, in an equitable manner and as provided in the Plan, the number and class of shares underlying the Restricted Stock Units, the maximum number of shares for which the Restricted Stock Units may vest, and the share price or class of Common Stock for purposes of the TSR performance goals, as appropriate, to reflect the effect of such event or change in the Company’s capital structure in such a way as to preserve the value of the Restricted Stock Units.  Any adjustment that occurs under the terms of this Section 5 or the Plan will not change the timing or form of payment with respect to any Restricted Stock Units except in accordance with section 409A of the Code.
		
	6.
	Restrictive Covenants.

(a)During the Grantee’s employment with the Company and its Affiliates, and during the period beginning on the date on which the Grantee’s employment with the Company and its Affiliates terminates for any reason and ending on the later of (i) 12 months after the employment termination date or (ii) the end of the Consulting Period (as defined in the Employment Agreement), if applicable (the “Restricted Period”), the Grantee hereby agrees that he will not, without the Company’s express written consent, engage (directly or indirectly) in any employment or business activity whose primary business involves a business in which the Company is then materially and actively engaged (for purposes of clarity, as of April 5, 2011, this would consist of providing mortgage insurance or financial guaranty insurance) (“Company Business”) within the United States of America; provided, however, that this restriction shall not apply if the Company is no longer engaged in writing new business with respect to such Company Business, unless (x) the Company has taken material steps to actively pursue opportunities for writing new business with respect to the Company Business and (y) the Board determines in reasonable good faith that it expects the Company, during the Restricted Period, in fact to actively pursue such opportunities.  The Board shall make such determination within 10 business days of notification by the Grantee that he proposes to engage in activity that would violate this Section 6(a) but for the proviso in the preceding sentence, it being understood that the Grantee shall be obligated to provide such notification.  The Grantee further agrees that, given the nature of the Company Business, a nationwide geographic scope is appropriate and reasonable.
(b)For purposes of this Grant Letter, the Grantee acknowledges and agrees that the terms “Confidential Information” and “Trade Secrets” shall mean information that the Company or any of its Affiliates owns or possesses, that the Company or its Affiliates have developed at significant expense and effort, that they use or that is potentially useful in the business of the Company or its Affiliates, that the Company or its Affiliates treat as proprietary, private or confidential, and that is not generally known to the public.  The Grantee further acknowledges that the Grantee’s relationship with the Company is one of confidence and trust such that the Grantee has in the past been, and may in the future be, privy to Confidential Information and Trade Secrets of the Company or any of its Affiliates.

(c)During the Grantee’s employment with the Company and its Affiliates, the Consulting Period, and the 12-month period following the later of the Grantee’s employment termination date or the end of the Consulting Period, if applicable, the Grantee covenants and agrees that the Grantee shall not, directly or indirectly through others, (i) hire or attempt to hire any employee of the Company or any of its Affiliates, (ii) solicit or attempt to solicit any employee of the Company or its Affiliates to become an employee, consultant or independent contractor to, for or of any other person or business entity, or (iii) solicit or attempt to solicit any employee, or any consultant or independent contractor of the Company or any of its Affiliates to change or terminate his or her relationship with the Company or any of its Affiliates, unless, in each case of (i) through (iii), more than three months shall have elapsed between the last day of such person’s employment or service with the Company or any of its Affiliates and the first date of such solicitation or hiring or attempt to solicit or hire.  If any employee, consultant or independent contractor is hired or solicited by any entity that has hired or agreed to hire the Grantee, such hiring or solicitation shall be conclusively presumed to be a violation of this Grant Letter; provided, however, that any hiring or solicitation pursuant to a general solicitation conducted by an entity that has hired or agreed to hire the Grantee, or by a headhunter employed by such entity, which does not involve the Grantee, shall not be a violation of this Section 6(c).
(d)During the Grantee’s employment with the Company and its Affiliates and the Restricted Period, the Grantee covenants and agrees that the Grantee shall not, either directly or indirectly through others:
(i)solicit, divert, appropriate or do business with, or attempt to solicit, divert, appropriate or do business with, any customer for whom the Company or any of its Affiliates provided goods or services within 12 months prior to the later of the Grantee’s employment termination date or the end of the Consulting Period (the “Termination Date”) or any actively sought prospective customer of the Company or any of its Affiliates for the purpose of providing such customer or actively sought prospective customer with services or products competitive with those offered by the Company or any of its Affiliates during the Grantee’s employment or service with the Company or any of its Affiliates, or 
(ii)encourage any customer for whom the Company or any of its Affiliates provided goods or services within 12 months prior to the Termination Date to reduce the level or amount of business such customer conducts with the Company or any of its Affiliates.
(e)The Grantee acknowledges and agrees that the business of the Company and its Affiliates is highly competitive, that the Confidential Information and Trade Secrets have been developed by the Company at significant expense and effort, and that the restrictions contained in this Section 6 are reasonable and necessary to protect the legitimate business interests of the Company and its Affiliates.
(f)Because the Grantee’s services are personal and unique and the Grantee has had and will continue to have access to and has become and will continue to become acquainted with Confidential Information and Trade Secrets, the parties to this Grant Letter acknowledge and agree that any breach by the Grantee of any of the covenants or agreements contained in Section 6 will result in irreparable injury to the Company or any of its Affiliates, as the case may be, for which money damages could not adequately compensate such entity.  Therefore, the Company or any of its Affiliates shall have the right (in addition to any other rights and remedies which it may have at law or in equity and in addition to the forfeiture requirements set forth in Section 6(g) below) to seek to enforce Section 6 and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company or any of its Affiliates may have for a breach, or threatened breach, of the restrictive covenants set forth in Section 6.  The Grantee agrees that in any action in which the Company or any of its Affiliates seeks injunction, specific performance or other equitable relief, the Grantee will not assert or contend that any of the provisions of Section 6 are unreasonable or otherwise unenforceable.  The Grantee irrevocably and unconditionally (i) agrees that any legal proceeding arising out of this paragraph may be brought in the United States District Court for the Eastern District of Pennsylvania, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general jurisdiction in Philadelphia County, Pennsylvania, (ii) consents to the non-exclusive jurisdiction of such court in any such proceeding, and (iii) waives any objection to the laying of venue of any such proceeding in any such court.  The Grantee also irrevocably and unconditionally consents to the service of any process, pleadings, notices or other papers.    
(g)The Grantee acknowledges and agrees that in the event the Grantee breaches any of the covenants or agreements contained in this Section 6:
(i)The Committee may in its discretion determine that the Grantee shall forfeit the outstanding Restricted Stock Units (without regard to whether the Restricted Stock Units have vested), and the outstanding Restricted Stock Units shall immediately terminate, and
(ii)The Committee may in its discretion require the Grantee to return to the Company any cash received upon conversion of the Restricted Stock Units under Section 4.  The Committee shall exercise the right of recoupment provided in this Section 6(g)(ii) within 180 days after the Committee’s discovery of the Grantee’s breach of any of the covenants or agreements contained in this Section 6.

(h)If any portion of the covenants or agreements contained in this Section 6, or the application hereof, is construed to be invalid or unenforceable, the other portions of such covenants or agreements or the application thereof shall not be affected and shall be given full force and effect without regard to the invalid or unenforceable portions to the fullest extent possible.  If any covenant or agreement in this Section 6 is held to be unenforceable because of the duration thereof or the scope thereof, then the court making such determination shall have the power to reduce the duration and limit the scope thereof, and the covenant or agreement shall then be enforceable in its reduced form.  The covenants and agreements contained in this Section 6 shall survive the termination of this Grant Letter.
7.No Stockholder Rights.  
The Grantee has no voting rights, no rights to receive dividends or dividend equivalents or other ownership rights and privileges of a stockholder with respect to the shares of Common Stock subject to the Restricted Stock Units.  
		
	8.
	Retention Rights.

Neither the award of Restricted Stock Units, nor any other action taken with respect to the Restricted Stock Units, shall confer upon the Grantee any right to continue in the employ or service of the Company or an Affiliate or shall interfere in any way with the right of the Company or an Affiliate to terminate Grantee’s employment or service at any time. 
		
	9.
	Cancellation or Amendment.  

This award may be terminated or amended by the Committee, in whole or in part, in accordance with the applicable terms of the Plan.
		
	10.
	Notice.  

Any notice to the Company provided for in this Grant Letter shall be addressed to it in care of the Corporate Secretary of the Company, 1601 Market Street, Philadelphia, Pennsylvania 19103-2197, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll system of the Company or an Affiliate thereof, or to such other address as the Grantee may designate to the Company in writing.  Any notice provided for hereunder shall be delivered by hand, sent by telecopy or electronic mail or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage and registry fee prepaid in the United States mail or other mail delivery service.  Notice to the Company shall be deemed effective upon receipt.  By receipt of this Grant Letter, the Grantee hereby consents to the delivery of information (including without limitation, information required to be delivered to the Grantee pursuant to the applicable securities laws) regarding the Company, the Plan, and the Restricted Stock Units via the Company’s electronic mail system or other electronic delivery system.
		
	11.
	Incorporation of Plan by Reference.  

This Grant Letter is made pursuant to the terms of the Plan, the terms of which are incorporated herein by reference, and shall in all respects be interpreted in accordance therewith. The decisions of the Committee shall be conclusive upon any question arising hereunder.  The Grantee’s receipt of the Restricted Stock Units awarded under this Grant Letter constitutes such Grantee’s acknowledgment that all decisions and determinations of the Committee with respect to the Plan, this Grant Letter, and/or the Restricted Stock Units shall be final and binding on the Grantee, his or her beneficiaries and any other person having or claiming an interest in such Restricted Stock Units.  The settlement of any award with respect to Restricted Stock Units is subject to the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan as established from time to time by the Committee in accordance with the provisions of the Plan.  A copy of the Plan will be furnished to each Grantee upon request. Additional copies may be obtained from the Corporate Secretary of the Company, 1601 Market Street, Philadelphia, Pennsylvania 19103-2197.
		
	12.
	Income Taxes; Withholding Taxes.  

The Grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the Restricted Stock Units pursuant to this Grant Letter.  At the time of taxation, the Company shall have the right to deduct from amounts payable with respect to the Restricted Stock Units or other compensation an amount equal to the federal (including FICA), state, local and foreign income taxes and other amounts as may be required by law to be withheld with respect to the Restricted Stock Units.

		
	13.
	Governing Law.  

The validity, construction, interpretation and effect of this instrument shall exclusively be governed by, and determined in accordance with, the applicable laws of the State of Delaware, excluding any conflicts or choice of law rule or principle.  
		
	14.
	Grant Subject to Applicable Laws and Company Policies.  

This Grant shall be subject to any required approvals by any governmental or regulatory agencies.  This Grant shall also be subject to any applicable clawback or recoupment policies, share trading policies and other policies that may be implemented by the Board from time to time.  Notwithstanding anything in this Grant Letter to the contrary, the Plan, this Grant Letter, and the Restricted Stock Units awarded hereunder shall be subject to all applicable laws, including any laws, regulations, restrictions or governmental guidance that becomes applicable in the event of the Company’s participation in any governmental programs, and the Committee reserves the right to modify this Grant Letter and the Restricted Stock Units as necessary to conform to any restrictions imposed by any such laws, regulations, restrictions or governmental guidance or to conform to any applicable clawback or recoupment policies, share trading policies and other policies that may be implemented by the Board from time to time.  As a condition of participating in the Plan, and by the Grantee’s acceptance of the Restricted Stock Units, the Grantee is deemed to have agreed to any such modifications that may be imposed by the Committee, and agrees to sign such waivers or acknowledgments as the Committee may deem necessary or appropriate with respect to such modifications.
		
	15.
	Assignment.  

This Grant Letter shall bind and inure to the benefit of the successors and assignees of the Company.  The Grantee may not sell, assign, transfer, pledge or otherwise dispose of the Restricted Stock Units, except to a Successor Grantee in the event of the Grantee’s death.
		
	16.
	Section 409A.  

This Grant is intended to comply with the applicable requirements of section 409A of the Code and shall be administered in accordance with section 409A of the Code.  Notwithstanding anything in this Grant Letter to the contrary, if the Restricted Stock Units constitute “deferred compensation” under section 409A of the Code and any Restricted Stock Units become vested and settled upon the Grantee’s termination of employment, settlement of the Restricted Stock Units shall be delayed for a period of six months after the Grantee’s termination of employment if the Grantee is a “specified employee” as defined under section 409A of the Code and if required pursuant to section 409A of the Code.  If settlement of the Restricted Stock Units is delayed, the Restricted Stock Units shall be settled within 30 days of the date that is the six-month anniversary of the Grantee’s termination of employment.  If the Grantee dies during the six-month delay, the Restricted Stock Units shall be settled in accordance with the Grantee’s will or under the applicable laws of descent and distribution.  Notwithstanding any provision to the contrary herein, distributions made with respect to this Grant may only be made in a manner and upon an event permitted by section 409A of the Code, and all payments to be made upon a termination of employment hereunder may only be made upon a “separation from service” as defined under section 409A of the Code.  To the extent that any provision of the Grant Letter would cause a conflict with the requirements of section 409A of the Code, or would cause the administration of the Restricted Stock Units to fail to satisfy the requirements of section 409A of the Code, such provision shall be deemed null and void to the extent permitted by applicable law.  In no event shall a Grantee, directly or indirectly, designate the calendar year of payment.

IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute and attest this instrument, and the Grantee has placed his or her signature hereon, effective as of the date of the grant set forth above.

RADIAN GROUP INC.

/s/ Anita Scott                                   

Anita Scott
Vice President, HR Business Partner

I hereby accept the award of the Restricted Stock Units described in this Grant Letter, and I agree to be bound by the terms of the Plan and this Grant Letter, including without limitation the restrictive covenants set forth in Section 6, by either signing this Grant Letter below or by electronically acknowledging and accepting this Grant Letter following the date of the Company’s electronic notification to me.  I hereby agree that all decisions and determinations of the Committee with respect to the Restricted Stock Units shall be final and binding. 

Agreed to and Accepted By Award Recipient:

Signature: /s/ Sanford A. Ibrahim____________

Print Name: _Sanford A. Ibrahim____________

Date: July 19, 2012

Schedule A
Performance Goals
1.Calculation of TSR.  Vesting of the Restricted Stock Units will be based on the following performance results: (i) the Company’s total shareholder return (“TSR”) for the Performance Period, and (ii) relative TSR, which means the Company’s TSR relative to the median TSR of the Peer Group (as defined in Section 3(c) below).  At the end of the Performance Period, the TSR for the Company, and for each company in the Peer Group, shall be calculated by dividing the Closing Average Share Value (as defined below) by the Opening Average Share Value (as defined below).
(a)The term “Closing Average Share Value” means the average value of the common stock, including Accumulated Shares, for the 20 trading days ending on the last day of the Performance Period (i.e., the 20 trading days ending on June 5, 2015), which shall be calculated as follows: (i) determine the closing price of the common stock on each trading date during the 20-day period, (ii) multiply each closing price by the Accumulated Shares as of that trading date, and (iii) average the amounts so determined for the 20-day period.
(b)The term “Opening Average Share Value” means the average value of the common stock, including Accumulated Shares, for the 20 trading days ending on the first day of the Performance Period (i.e., the 20 trading days ending on June 6, 2012), which shall be calculated as follows: (i) determine the closing price of the common stock on each trading day during the 20-day period, (ii) multiply each closing price by the Accumulated Shares as of that trading date, and (ii) average the amounts so determined for the 20-day period.
(c)The term “Accumulated Shares” means, for a given trading day, the sum of (i) one share and (ii) a cumulative number of shares of the company’s common stock purchased with dividends declared on a company’s common stock, assuming same day reinvestment of the dividends in the common stock of a company at the closing price on the ex-dividend date.  The calculations under this Schedule A shall include ex-dividend dates between May 9, 2012 and the trading day.  
2.Vesting of Restricted Stock Units.  If the Company TSR for the Performance Period is negative, none of the Restricted Stock Units will vest under this Schedule A.   If the Company TSR for the Performance Period is positive, the Restricted Stock Unit vesting will be determined based on an analysis of both the relative TSR and the Company TSR.  In that event, the number of Restricted Stock Units that will vest for the Performance Period shall be determined by multiplying the Target Award by the lesser of (i) the relative TSR vesting percentage, as determined under Section 3 below, or (ii) the Company TSR vesting percentage, as determined under Section 4 below, provided that the number of Restricted Stock Units that vest shall not exceed the limit set forth in Section 6 below.  For example:
		
	•
	If the relative TSR vesting percentage is 102% and the Company TSR vesting percentage is 67%, the vesting percentage for the Restricted Stock Units will be 67%.  

		
	•
	If the relative TSR vesting percentage is 102% and the Company TSR vesting percentage is 133%, the vesting percentage for the Restricted Stock Units will be 102%.

		
	•
	If the relative TSR vesting percentage is 102% and the Company TSR vesting percentage is 0%, no Restricted Stock Units will vest.

		
	3.
	Relative TSR Vesting Percentage.  

(a)The vesting percentage based on relative TSR will be determined based on the Company’s TSR as compared to the median TSR of the companies in the Peer Group for the Performance Period (the “Median Peer Group TSR”) as follows: 
	
		
	Performance
(increments of +/- point differential)
	Relative TSR Vesting Percentage

	Maximum at 50% above Median
	200%

	+1% Company TSR above Median
	102%

	Median Peer Group TSR
	100%

	-1% Company TSR below Median
	97%

	Threshold at -34% below Median
	0%

(i)If the Company’s TSR exceeds the Median Peer Group TSR, the relative TSR vesting percentage will increase by 2% above 100% (but not in excess of 200%) for every 1% by which the Company’s TSR exceeds the Median Peer Group TSR.  

(ii)If the Company’s TSR is less than the Median Peer Group TSR, the relative TSR vesting percentage will be below 100%, in an amount such that there is a 3% reduction for every 1% by which the Company’s TSR is less than the Median Peer Group TSR.  There is no vesting if the Company’s TSR is less than 34% of the Median Peer Group TSR.  
(iii)If the Company’s TSR rank falls between the measuring points, the Company’s TSR rank will be rounded to the nearest whole percentage point.
(b)The companies in the Peer Group will be determined on the first day of the Performance Period for purposes of the TSR calculation and will be changed only in accordance with Section 3(c) below.  No company shall be added to the Peer Group during the Performance Period for purposes of the TSR calculation. 
(c)The term “Peer Group ” means MGIC Investment Corporation and the companies listed on the NASDAQ Financial Index as of the first day of the Performance Period (i.e., June 6, 2012) and will be subject to change as follows:
(i)In the event of a merger, acquisition or business combination transaction of a company in the Peer Group in which the company in the Peer Group is the surviving entity and remains publicly traded, the surviving entity shall remain a company in the Peer Group.  Any entity involved in the transaction that is not the surviving company shall no longer be a company in the Peer Group.
(ii)In the event of a merger, acquisition or business combination transaction of a company in the Peer Group, a “going private” transaction or other event involving a company in the Peer Group or the liquidation of a company in the Peer Group, in each case where the company in the Peer Group is not the surviving entity or is no longer publicly traded, the company shall no longer be a company in the Peer Group.
(iii)Notwithstanding the foregoing, in the event of a bankruptcy of a company in the Peer Group where the company in the Peer Group is not publicly traded at the end of the Performance Period, such company shall remain a company in the Peer Group but shall be deemed to have a TSR of negative 100% (-100%).
4.Company TSR Vesting Percentage.  After the relative TSR vesting percentage is determined as described in Section 3 above, the Company TSR for the Performance Period will be evaluated to determine the maximum number of Restricted Stock Units that may vest, as follows:
	
		
	Company TSR
	Company TSR Vesting Percentage  (Maximum Vesting)

	225% or Greater
	200%

	200%
	167%

	175%
	133%

	150%
	100%

	125%
	67%

	100%
	33%

	75%
	0%

	Less than 75%
	0%

If the Company TSR falls between measuring points, the Company TSR vesting percentage will be determined by interpolation between the nearest measuring points.  
The Company TSR will establish the maximum number of RSUs that may vest, as described in Section 2 above. 
		
	5.
	General Vesting Terms.  Any fractional Restricted Stock Unit resulting from the vesting of the Restricted Stock Units in accordance with this Grant Letter shall be rounded down to the nearest whole number.  Any portion of the Restricted Stock Units that does not vest as of the end of the Performance Period shall be forfeited as of the end of the Performance Period.  

6.Limitation on Vesting.  Notwithstanding the foregoing, in no event shall the number of Restricted Stock Units that vest pursuant to this Grant Letter exceed 679,940 shares, subject to adjustment for certain corporate changes as described in Section 5 of the Grant Letter.   If the number of shares calculated according to TSR performance would exceed this limit, the maximum number of shares for which the Restricted Stock Units vest shall be reduced to 679,940 shares, subject to adjustment as described in Section 5 of the Grant Letter.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]