Document:

Form of 2010 Stock Option Agreement under the 2008 Equity Compensation Plan

 Exhibit 10.4 

PERSONAL AND CONFIDENTIAL 

RADIAN GROUP INC. 

2008 EQUITY COMPENSATION PLAN 

STOCK OPTION AGREEMENT 

This STOCK OPTION AGREEMENT, dated as of [DATE] (the “Date of Grant”), is delivered by Radian Group Inc., a
Delaware corporation (the “Company”), to [NAME], 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
stock options to employees, officers, directors, consultants and advisors of the Company to purchase shares of Common Stock, in accordance with the terms and provisions of the Plan. 

WHEREAS, the Committee, appointed by the Board of Directors of the Company to administer the Plan, has determined that it would be
to the advantage and in the best interest of the Company to make the grant provided for herein as an inducement for the Grantee to continue as an employee of the Company and to promote the best interests of the Company and its stockholders.

 WHEREAS, the applicable provisions of the Plan are incorporated in this Stock Option Agreement 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 Option. Subject to the terms and conditions set
forth in this Stock Option Agreement, the Company, with the approval and at the direction of the Committee, hereby grants to the Grantee a Nonqualified Stock Option to purchase [NUMBER] shares of Common Stock at an exercise price of $10.42 per share
(the “Option”) under the Plan. The Grantee hereby accepts the Option and agrees to be bound by the terms and conditions of this Stock Option Agreement and the Plan with respect to the award. 

2. Vesting. Provided the Grantee remains employed by the Company or a Subsidiary through the applicable vesting date and meets any applicable
vesting requirements set forth in this Stock Option Agreement, except as set forth in Sections 3 and 4 below, the Option awarded under this Stock Option Agreement shall vest as follows: 

 

			
	 Vesting Date
	 	 Vested Shares subject to the Option

	May 12, 2013	 	50% of the shares
	May 12, 2014	 	Remaining 50% of the shares

 If the vesting
schedule above would produce a fractional share, the portion of the Option that is exercisable shall be rounded down to the nearest whole share. 

 Except as specifically provided in this Stock Option Agreement, no portion of the Option will vest after the
Grantee’s employment with the Company or a Subsidiary has terminated for any reason and, in the event of such termination, the Grantee will forfeit the unvested Option. 

3. Retirement, Disability and Death. If the Grantee terminates employment because of (i) the Grantee’s Retirement or (ii) the
Grantee’s death or Disability, the Grantee’s Option will automatically vest in full on the date of the occurrence of the event. For purposes of this Stock Option Agreement, the term “Retirement” shall mean the
Grantee’s (A) separation from service following the Grantee’s attainment of age 65 and completion of five years of service with the Company or a Subsidiary, or (B) separation from service following the Grantee’s attainment
of age 55 and completion of 10 years of service with the Company or a Subsidiary. 
 4. Change of Control. If a Change of Control occurs
and the Grantee’s employment with the Company or a Subsidiary is terminated by the Company or a Subsidiary without Cause or the Grantee terminates employment for Good Reason (as defined herein), and the Grantee’s date of termination occurs
(or in the event of the Grantee’s termination for Good Reason, the event giving rise to Good Reason occurs), in each case, 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 Option will automatically vest in full on the Grantee’s date of termination (or, if later, on the date of the Change of Control). However, in no event may the Option be exercised after seven years from
the Date of Grant. 
 For purposes of this Stock Option Agreement, “Good Reason” shall mean: 

(a) a material diminution of the Grantee’s authority, duties or responsibilities; or 

(b) a material reduction in the Grantee’s base salary, which, for purposes of this Stock Option Agreement, means a reduction in base
salary of 10% or more that does not apply generally to all similarly situated employees of the Company. 
 In order to terminate
employment for Good Reason, 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. 

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 and 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 (collectively, “TARP”). 
 5.
Exercise of the Option. 
 (a) When the Option becomes vested in accordance with Sections 2, 3, or 4 above, the Grantee
may exercise part or all of the exercisable Option by delivering a duly completed notice of intent to exercise to the Company, specifying the number of shares as to which the Option is to be exercised and the method of payment. Payment of the
exercise price shall be made in accordance with procedures in effect from time to time based on the type of payment being made but, in any event, prior to issuance of the shares of Common Stock. The Grantee shall pay the exercise price (i) in
cash, (ii) with the approval of the Committee, by delivering shares of Common Stock, which shall be valued at their fair market value on the date of exercise, or by attestation (on a form prescribed by the Committee) to ownership of shares
Common Stock having a fair market value on the date of exercise equal to the exercise price, (iii) by payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board or (iv) by any combination
of the foregoing. The Company’s obligation to deliver shares of Common Stock upon exercise of the Option shall be subject to all applicable laws, rules and regulations and also to such approvals by governmental agencies as may be deemed
appropriate by the Committee. Upon exercise of the Option (or portion thereof), the Option (or portion thereof) will terminate and cease to be outstanding. 
  

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 (b) During the Grantee’s lifetime, except as set forth in Section 6 below,
exercise of the Option shall be solely by the Grantee (or his or her legal guardian or legal representative) and, after the Grantee’s death, the Option shall be exercisable (subject to the limitations specified in the Plan) solely by the legal
representatives of the Grantee, or by the person or persons who acquire the right to exercise such Option by will or by the laws of descent and distribution, to the extent that the Option was outstanding as of the date of the Grantee’s death.

 6. Transferability. 

(a) During the Grantee’s lifetime, the Option shall be exercisable only by the Grantee (or his or her guardian or legal
representative), and neither any Option nor any right hereunder shall be assignable or otherwise transferable except by will or by the laws of descent and distribution or except as otherwise permitted by the Plan, nor shall any Option be subject to
attachment, execution or other similar process. In the event of any attempt by the Grantee to alienate, assign, pledge, hypothecate or otherwise dispose of any Option or any right hereunder, except as provided for herein, or in the event of the levy
of any attachment, execution or similar process upon the rights or interest hereby conferred, the Company may terminate any Option by notice to the Grantee and the Option and all rights hereunder shall thereupon become null and void. 

(b) Notwithstanding the foregoing, the Committee may provide that a Grantee may transfer this Option to family members, one or more
trusts for the benefit of family members, or one or more partnerships of which family members are the only partners, according to such terms as the Committee may determine; provided that the Grantee receives no consideration for the transfer of an
Option and the transferred Option shall continue to be subject to the same terms and conditions as were applicable to the Option immediately before the transfer. 

7. Termination of the Option. 

(a) The Option shall have a term of seven years from the Date of Grant and shall terminate at the expiration of that period (on
May 12, 2017), unless the Option is terminated at an earlier date pursuant to the provisions of this Stock Option Agreement or the Plan. 

(b) The Option granted and subsequently vested hereunder (including pursuant to Section 4 hereof) shall terminate immediately after
the first to occur of: (i) one year after the termination of the Grantee’s employment with the Company or a Subsidiary due to an involuntary termination by the Company or a Subsidiary without Cause, (ii) one year after the termination
of the Grantee’s employment with the Company or a Subsidiary by the Grantee for Good Reason during the Change of Control period described in Section 4 hereof (except as provided in subsection (c) below), (iii) 90 days after the
Grantee’s voluntary termination of employment with the Company or a Subsidiary (except as provided in subsection (c) below), or (iv) seven years from the Date of Grant. 

 

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 (c) In the event of the termination of the Grantee’s employment on account of
Retirement, Disability or death of a Grantee, the Option held by the Grantee may be exercised, pursuant to the terms of the Plan, by the Grantee (or the Grantee’s personal representative) at any time prior to the expiration of the seven-year
term of the Option. 
 (d) Notwithstanding the foregoing, in no event may the Option be exercised after the date that is the
seventh anniversary of the Date of Grant (May 12, 2017). Any portion of the Option that is not vested at the time the Grantee ceases to be employed by the Company or a Subsidiary shall immediately terminate (except as provided in Section 4). In
the event a Grantee’s employment is terminated by the Company or a Subsidiary for Cause, the Option (including the vested portion, if any) held by such Grantee shall immediately terminate and be of no further force or effect. 

8. 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 the Option,
the Committee shall adjust, in an equitable manner and as provided in the Plan, the number and class of shares subject to the Option held by the Grantee and/or the exercise price of such Option 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 Option. Any adjustment that occurs under the terms of this Section 8 or the Plan will not change the timing or form of payment with respect to any exercised Option
or portion thereof. 
 9. Grant Subject to Plan Provisions. This Stock Option Agreement 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 Option
awarded under this Stock Option Agreement constitutes such Grantee’s acknowledgment that all decisions and determinations of the Committee with respect to the Plan, this Stock Option Agreement, and/or the Option shall be final and binding on
the Grantee, his or her beneficiaries and any other person having or claiming an interest in such Option. The settlement of any award with respect to Option 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. 
 10. No Employment or Other Rights.
Neither the granting of the Option, nor any other action taken with respect to such Option, shall confer upon the Grantee any right to continue in the employ of the Company or a Subsidiary or shall interfere in any way with the right of the Company
or a Subsidiary to terminate Grantee’s employment at any time. The right of the Company or a Subsidiary to terminate at will the Grantee’s employment or service at any time for any reason is specifically reserved. 

11. No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the Grantee’s
death or in accordance with the terms of this Stock Option Agreement, shall have any of the rights and privileges of a stockholder with respect to the shares subject to the Option, except to the extent that certificates for such shares shall have
been issued upon the exercise of the Option as provided for herein (or an appropriate book entry has been made). Except as described in the Plan or in this Stock Option Agreement, no adjustments are made for dividends or other right if the
applicable record date occurs before Grantee’s shares are issued (or an appropriate book entry has been made). 
  

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 12. Assignment and Transfers. The rights and interests of the Grantee under this Stock Option
Agreement may not be sold, assigned, encumbered or otherwise transferred except, in the event of the death of the Grantee, by will or by the laws of descent and distribution. The rights and protections of the Company hereunder shall extend to any
successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates. This Stock Option Agreement may be assigned by the Company without the Grantee’s consent. 

13. Income Taxes; Withholding Taxes. All obligations of the Company under this Stock Option Agreement shall be subject to the rights of the
Company as set forth in the Plan to withhold amounts required to be withheld for any taxes, if applicable. At the time of exercise, the Company shall have the right to deduct from other compensation, or to withhold shares of Common Stock, in 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 exercise of the Option, provided that any share withholding shall not exceed the
Grantee’s minimum applicable withholding tax rate for federal (including FICA), state, local and foreign tax liabilities. 
 14.
Applicable 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. In addition, this Stock Option Agreement shall be subject to any required approvals by any governmental or regulatory agencies. Notwithstanding anything in this Stock Option Agreement to the contrary, the Plan, this Stock
Option Agreement, and the Option 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 TARP, and
the Committee reserves the right to modify this Stock Option Agreement and the Option as necessary to conform to any restrictions imposed under TARP. As a condition of participating in the Plan, and by the Grantee’s acceptance of the Option,
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 TARP restrictions applicable
to the Option granted to the Grantee under this Stock Option Agreement. 
 15. Notice. Any notice to the Company provided for in this
Stock Option Agreement 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 of the Company, or to such other address as the Grantee may designate to the Company in writing in accordance with this Section. Except as otherwise provided by this Section, 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 the Option granted hereunder, 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, the Option via the Company’s electronic mail system or other electronic delivery system. 
  

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 IN WITNESS WHEREOF, the parties have executed this Stock Option Agreement
as of the Date of Grant. 
  

	
	Radian Group Inc.
	
	 Suzann C. Boylan

	Chief Human Resources Officer

 I hereby accept the
award of the Option described in this Stock Option Agreement, and I agree to be bound by the terms of the Plan and this Stock Option Agreement. I hereby agree that all decisions and determinations of the Committee with respect to the Option shall be
final and binding. 
 Acknowledged and Agreed by Award Recipient: 

 

			
	 Signature:
	 	  

		
	 Print Name:
	 	  

		
	 Date:
	 	  

 

 6Form of 2010 Executive Long-Term Incentive Cash Plan Award

 Exhibit 10.5 

PERSONAL AND CONFIDENTIAL 

FORM OF 2010 EXECUTIVE LONG TERM INCENTIVE CASH PLAN AWARD 

RADIAN GROUP INC. 

2008 EXECUTIVE LONG TERM INCENTIVE CASH PLAN 

AWARD LETTER 

[DATE] 
  

									
		 	Award Recipient:	  		  	[Award Recipient]	  	
					
		 	Target Award:	  		  	$[Amount]	  	
					
		 	Award Terms:	  		  	 May 30, 2010 to May 30, 2013 for 50% of the Target Award

 
 May 30, 2010 to May 30, 2014 for 50% of the Target Award
	  	

 Dear [Award Recipient]: 

In recognition of your long-term commitment to Radian Group Inc. (the “Company”) and of your expected future
contributions to our business objectives, you have been granted an opportunity to earn a long term cash incentive award for the Award Terms set forth above, under the 2008 Executive Long Term Incentive Cash Plan, as amended (the
“Plan”). 
 1. Grant of Award. The Company hereby grants to you, as the “Award
Recipient” a cash bonus opportunity (the “Performance Award”) based upon the Target Award listed above, on the terms and conditions hereinafter set forth. This grant is made pursuant to the terms of the Plan, which Plan, as
amended from time to time, is incorporated herein by reference and made a part of this Award Letter. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan. 50% of your Target Award may be earned with respect to a
three-year Award Term, which began May 30, 2010 and ends May 30, 2013. The remaining 50% of your Target Award may be earned with respect to a four-year Award Term, which began May 30, 2010 and ends May 30, 2014. 

2. Performance Goals. Subject to Section 6 of this Award Letter, you are eligible to earn a discretionary cash
Performance Award contingent on (i) achievement of the Performance Goals set forth on Exhibit A hereto over the applicable Award Term, and (ii) the Administrator’s assessment of your performance and the performance of the
Company over the applicable Award Term, in each case as determined by the Administrator in its sole discretion. For purposes of determining the Performance Award to be paid upon the achievement of such Performance Goals, the Administrator may weight
the individual metrics set forth on Exhibit A as it deems appropriate in its sole discretion. In the event of a Change of Control, the Performance Goals may be adjusted by the Administrator as it deems appropriate in its sole discretion, to
the extent provided by the Plan. 
 3. Definitions. For purposes of this Award Letter: 

“Administrator” shall mean the Company’s Compensation and Human Resources Committee. 

 “Award Term” shall mean each period of time (set forth above) over which
performance shall be measured for purposes of determining the amount to be paid to you under your Performance Award. Each period (the three-year period and the four-year period) shall be considered to be a separate Award Term. 

“Change of Control” shall have the definition given that term in the Plan. 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 and 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 (collectively, “TARP”). 

“Cause” shall mean your (1) indictment for, conviction of, or pleading nolo contendere to, a felony or a
crime involving fraud, misrepresentation or moral turpitude (excluding traffic offenses other than traffic offenses involving use of alcohol or illegal substances); (2) fraud, dishonesty, theft or misappropriation of funds in connection with
your duties with the Company or any of its subsidiaries; (3) material violation of the Company’s Code of Conduct or employment policies, as in effect from time to time; or (4) gross negligence or willful misconduct in the performance
of your duties with the Company or any of its subsidiaries, in each case as determined in the sole discretion of the Administrator. 

“Good Reason” shall mean: 

(a) a material diminution of your authority, duties or responsibilities; or 

(b) a material reduction in your base salary, which, for purposes of this Award Letter, means a reduction in base salary of 10% or more
that does not apply generally to all similarly situated employees of the Company. 
 In order to terminate your employment for
Good Reason, you must provide a written notice of termination with respect to your 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 your notice of termination. If the Company does not correct the act, or the failure to act, you 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. 
 4.
Calculation of Performance Award. The Administrator, in its sole discretion, shall determine the amount, if any, of the Performance Award to be earned and paid upon the conclusion of each Award Term. Performance will be measured over each of
the three-year Award Term and the four-year Award Term. Following the conclusion of each Award Term, the Performance Award, if any, to be paid to you will be calculated as a percentage, between 0% and 300%, of 50% of your Target Award, as determined
by the Administrator in its sole discretion after taking into consideration its assessment of the achievement of the Performance Goals, the Company‘s performance, and your overall performance. 

5. Timing of Payment. Except as provided in Section 6, the amount of the Performance Award, if any, determined by the
Administrator to be payable for each Award Term shall be promptly paid to you following the last day of the applicable Award Term, but in no event later than 45 days following the last day of the applicable Award Term. Except as provided in
Section 6, you must be employed by the Company or an affiliate through the last day of the Award Term in order to be eligible to earn a Performance Award for the Award Term. 

 6. Termination of Employment. If your employment with the Company and its
subsidiaries terminates during the Award Term, depending upon the reason for such termination, this Award Letter may continue in force or may terminate, as provided in the applicable subsection of Section 5(a) through (c) of
the Plan. Notwithstanding the provisions of Section 5(d) of the Plan, Performance Awards shall not vest and be payable upon a Change of Control. Instead, if the Company or any subsidiary terminates your employment without Cause or you
terminate for Good Reason, and your date of termination occurs (or in the event of your termination for Good Reason, the event giving rise to Good Reason occurs), in each case, during the period beginning on the date that is 90 days before a Change
of Control and ending on the date that is one year following the Change of Control, you will earn a Performance Award with respect to each Award Term that has not yet ended as of your termination date. The Performance Award earned for each such
outstanding Award Term shall be 50% of the total Target Award (calculated without regard to performance) and shall be paid on your termination date (or, if later, on the date of the Change of Control). 

7. No Right to Continued Employment. Neither the Plan nor this Award Letter shall be construed or held as giving you the right to
be retained in the employ of the Company or any affiliate. 
 8. Transferability. The Performance Award may not be
commuted, sold, assigned, pledged, attached, mortgaged, alienated or otherwise transferred or encumbered by you otherwise than by will or by the laws of descent and distribution, and any purported commutation, sale, assignment, pledge, attachment,
mortgage, alienation, or encumbrance shall be void and unenforceable against the Company or any affiliate. 
 9. Withholding.
The Company shall have the right and is hereby authorized to withhold from any payment due under this Award Letter any federal, state, or local taxes as it shall determine. 

10. Choice of Law. This Award Letter shall be construed, administered and governed in all respects under and by the applicable
laws of the State of Delaware, excluding any conflicts or choice of law rule or principle. 
 11. Grant Subject to
Applicable Laws. This Award Letter and the Performance Awards granted herein shall be subject to any required approvals by any governmental or regulatory agencies. Performance Awards are intended to comply with the short-term deferral exception
to section 409A of the Internal Revenue Code and shall be paid in accordance with such exception. Notwithstanding anything in this Award Letter to the contrary, the Plan, this Award Letter, and the Performance Awards awarded hereunder shall be
subject to all applicable laws, including all applicable regulations, restrictions or governmental guidance that becomes applicable in the event of the Company’s participation in TARP, and the Administrator reserves the right to modify this
Award Letter and Performance Awards as necessary to conform to any restrictions imposed under TARP. As a condition of participating in the Plan, and by your acceptance of the Performance Award, you agree to any such modifications that may be imposed
by the Administrator, and you agree to sign such waivers or acknowledgments as the Administrator may deem necessary or appropriate with respect to TARP restrictions applicable to the Performance Award granted to you under this Award Letter. 

 12. Performance Award Subject to Plan. In the event of a conflict between any term or provision contained in this
Award Letter and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and prevail. 

	
	Radian Group Inc.
	
	 Suzann C. Boylan

	Chief Human Resources Officer

 I hereby accept the
Performance Award described in this Award Letter, and I agree to be bound by the terms of the Plan and this Award Letter. I hereby agree that all decisions and determinations of the Administrator with respect to the Performance Award and Award
Letter shall be final and binding. 
  

			
	Acknowledged and Agreed by Award Recipient:
		
	Signature:	 	  

		
	Print Name:	 	  

		
	Date:	 	  

 Exhibit A 

PERFORMANCE GOALS 

Market Share 
 Credit Quality 

Capital Management 
 Expense Management

 Operating Profitability

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